Why Taiwan Semiconductor (TSM) Became Essential to the Chip Industry

What happened: St. James Investment Company's Q3 2026 investor letter discussed Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), noting how specialized chip manufacturing reshaped semiconductor competition. TSMC is a foundry making chips designed by other companies. Key numbers: One-month return 8.44%. 52-week range $266.82 to $487.47. Why it matters: The letter says TSMC's capabilities let fabless designers reach advanced production without building their own fabs. St. James remains cautious on the AI-driven market, favoring durable moats and discounted valuations. Market: +1.9% by next close ($605.53 on Oct 13), +155.4% YTD

St. James Investment Company's Q3 2026 investor letter discussed Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), noting how specialized chip manufacturing reshaped semiconductor competition. TSMC is a foundry making chips designed by other companies.

The letter says TSMC's capabilities let fabless designers reach advanced production without building their own fabs. St. James remains cautious on the AI-driven market, favoring durable moats and discounted valuations. Market: +1.9% by next close ($605.53 on Oct 13), +155.4% YTD