According to a recent AI Investor Outlook Report, 67% of Gen Z respondents expressed confidence in AI’s long-term return potential—outpacing the 50% of baby boomer investors. As younger investors seek multidecade wealth-generation themes, Taiwan Semiconductor Manufacturing Company (TSMC) stands out: it commands a 72% share of the global chip foundry market and serves virtually every leading AI developer. This broad customer base and market dominance position TSMC as a core holding for investors looking to capture AI-driven growth over the next decade.

In Q4 2025, TSMC began volume production of its 2-nanometer (nm) process at Fab 22 in Kaohsiung, pioneering chips that deliver higher performance and better power efficiency than its prior 3 nm node. The company plans to follow up with an enhanced N2P variant in H2 2026. Meanwhile, its advanced packaging segment—CoWoS (Chip-on-Wafer-on-Substrate)—is ramping rapidly: Goldman Sachs projects TSMC will ship roughly 1.2 million CoWoS wafers in 2026 and about 2.2 million in 2027, reflecting surging demand for high-bandwidth memory integration in AI accelerators.

Following a shift in U.S. export policy, NVIDIA has reportedly received orders for more than 2 million H200 GPUs from approved Chinese customers—but has only 700,000 units available. NVIDIA has reached out to TSMC to help ramp production of these Hopper-architecture chips, which retail around $27,000 apiece. While final government approvals are still pending, gaining even a partial share of this demand could represent a multibillion-dollar annual revenue stream for TSMC, further cementing its role as the indispensable foundry partner for AI chipmakers.