This company is Taiwan Semiconductor (TSM). It won’t surprise you to learn that it is in an emerging market is Asia. One company dominates the production of the higher performance chips critical to advanced technology, with a 56% world market share. Then comes the actual making of the chips in what is referred to as fabrication plants. The second are companies that make the equipment that makes the microchips. This is a competitive space with low capital requirements and huge margins. The first are the chip designers such as Nvidia ( NVDA).

Roughly speaking, there are three different types of firms in this key sector. Semiconductor chips sales in 2021 were roughly $555 billion. Over one trillion chips a year are made one electric vehicle has 3,000 microchips. You might think of these microchips as the brains inside all advanced technology. Semiconductors are crucial and the most strategically important technology because they are the materials and circuitry needed to produce microchips that are the key to everything from smartphones to advanced satellites. Right now, it is probably semiconductors. Perhaps a way to begin is to look at just what is at the heart of our technology-centered economy. So choosing which one company is the most important might be seem to be a fool’s errand. According to Refinitiv (formerly known as Thomson Reuters), there are more than 100,000 listed companies around the world.

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