TSMC sits at the most concentrated single point in the global semiconductor supply chain. As of late 2024, approximately 92-95% of the world's leading-edge logic foundry capacity (the 7nm-class node and below) was manufactured at TSMC fabs located in Taiwan — Hsinchu Science Park, the Southern Taiwan Science Park near Tainan, and the Central Taiwan Science Park near Taichung. Apple's A18 Pro, Nvidia's H100 and B200, AMD's MI300X, and most other leading-edge chips powering the AI compute cycle were physically manufactured on Taiwanese soil at TSMC.

Taiwan is approximately 36,000 square kilometers — slightly smaller than the Netherlands — and sits 110 miles off the Chinese mainland. The geographic concentration of leading-edge logic in this single location is one of the most consequential facts in 21st-century industrial economics, and the question of how that concentration unwinds (or doesn't) over the next decade is the central geopolitical variable in semiconductor investment.