Taiwan Semiconductor Manufacturing's Foundry Market Share Is a Massive Moat Nobody Talks About
TSMC owns more than two-thirds of the chip foundry market.
Overview
Taiwan Semiconductor Manufacturing (NYSE: TSM) is well known for having a massive market share in the chip manufacturing world. It partners with nearly every artificial intelligence (AI) computing company and also with non-AI computing companies: Apple is historically its largest client (although that could shift this year).
The reality is that TSMC has built an unassailable moat, and that gives it protection against losing its competitive advantage.
Details
A moat is one of the investment characteristics that investing legends like Warren Buffett have advised investors to seek. I think TSMC's moat comes from its sheer size, and it has locked several clients into using its services as a result.
Source
Originally published at www.fool.com.