Technology 4 min read By Arthur Ellington
TSMC's Dominance in Advanced Chips Unmatched, Says Tech Specialist Heydorn
Inge Heydorn, tech specialist and portfolio manager at Chelverton, tells Börsmorgon that TSMC is totally dominant in complex chips, as AI demand reshapes the semiconductor landscape and ASML prepares to ramp up production.
TSMC holds an unassailable lead in the most advanced semiconductor manufacturing, according to Inge Heydorn, a technology specialist and portfolio manager at Chelverton. Speaking on the Börsmorgon programme, Heydorn described the Taiwanese foundry as «totally dominant» in the production of complicated chips, the high-performance processors that underpin everything from smartphones to artificial intelligence systems.
Heydorn's assessment comes as the global chip industry finds itself at the centre of an AI-driven investment boom. The most sophisticated chips — those built on the smallest process nodes — are increasingly the foundation of data centre infrastructure, machine learning models and advanced consumer devices. TSMC's ability to manufacture these components at scale, and at yields rivals have struggled to match, has made it the default partner for the world's leading chip designers.
The discussion also turned to ASML, the Dutch supplier of the extreme ultraviolet lithography machines that are essential for making cutting-edge chips. Heydorn indicated that ASML is set to increase production, a signal that demand for advanced manufacturing capacity remains strong despite broader economic uncertainty. ASML's equipment is a critical bottleneck in the semiconductor supply chain: without its EUV systems, no company can produce the most advanced logic chips. The company's production plans are therefore watched closely as a barometer of the industry's health.
Heydorn's remarks highlight a structural feature of the semiconductor market: while competition exists at mature nodes, the most complex chips are effectively a one-horse race. TSMC's customers include the largest technology firms in the world, and its manufacturing prowess has become a strategic asset — one that governments increasingly view through the lens of national security and supply chain resilience.
The concentration of advanced chipmaking in Taiwan has prompted efforts in the United States, Europe and Japan to build domestic capacity. Yet replicating TSMC's combination of scale, expertise and customer trust is a multi-year, capital-intensive endeavour. For now, the company's lead in complicated chips appears secure, reinforcing its central role in the AI era.
ASML's planned production increase, meanwhile, suggests that the toolmaker expects sustained demand from foundries and memory manufacturers. The company's lithography systems are sold years in advance, and any change in output plans is read as a signal about future chip supply. Heydorn's comments on the Börsmorgon programme therefore offer a concise snapshot of an industry where technological leadership and geopolitical significance are tightly intertwined.
For investors and policymakers alike, the message is clear: the advanced semiconductor supply chain remains highly concentrated, and the companies that control the most complex manufacturing steps hold outsized influence over the pace of innovation in artificial intelligence and beyond.
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