News
TSMC maintains 46% profit margin as Morris Chang's founding philosophy supports NVIDIA's growth
Thursday, April 2, 2026 at 09:09 PM
TSMC maintains a high profit margin of 46% by following the founding philosophy of Morris Chang, which focuses on providing pure-play foundry services that enable partners like NVIDIA to scale efficiently without competition from their manufacturer.
Context
As of April 2026, TSMC continues to demonstrate the enduring strength of founder Morris Chang’s "pure-play" foundry model, reporting a robust net profit margin of 48.3% in its most recent fiscal results. This performance highlights the company's critical role as the manufacturing backbone for the AI industry, where it currently captures the vast majority of global orders for advanced AI accelerators. By adhering to a philosophy of never competing with its own clients, TSMC has fostered a unique symbiotic relationship with Nvidia, enabling the latter’s rapid ascent in the high-performance computing market.
Technological leadership remains the primary driver of these financial results, with advanced nodes like 3nm and 5nm now accounting for over 60% of total revenue. TSMC is leveraging this profitability to fund a massive $45 billion capital investment plan for 2026, focusing on expanding 2nm capacity and advanced CoWoS packaging. This aggressive expansion ensures that TSMC maintains its dominant market position as Nvidia and other fabless giants transition to next-generation AI architectures.
Sources (6)
Annual Reports - Taiwan Semiconductor Manufacturing Company LimitedTSMC and Nvidia ignite AI growth, Taiwan supply chain accelerates expansionTSMC Q4 2025 slides: Revenue exceeds guidance as advanced ...Morris Chang - by Kyle Westaway - Acquired BriefingTSMC Founder Morris Chang: The Complete History and StrategyStanford Engineering Hero Morris Chang honored for revolutionizing chip making | Stanford University School of Engineering
Related Companies
TSMC
2330
Nvidia
NVDA