Broadcom Inc. (AVGO) vs Taiwan Semiconductor Manufacturing Company Limited (TSM)

Broadcom Inc. is one of the world’s largest semiconductor companies and has also built a significant presence in infrastructure software. Its chip business is mainly focused on computing and networking, with custom AI accelerators now representing the majority of operations. Broadcom primarily operates as a fabless chip designer, though it retains some in-house manufacturing, including its leading film bulk acoustic resonator filters used in Apple iPhones. On the software side, the company provides virtualization, infrastructure, and security solutions to large enterprises, financial institutions, and government customers. Broadcom has grown through consolidation, combining businesses from legacy Broadcom and Avago Technologies in semiconductors, along with VMware, Brocade, CA Technologies, and Symantec in software.

Taiwan Semiconductor Manufacturing Co. (TSMC) is the world’s largest pure-play semiconductor foundry, holding roughly 70% market share in 2025. Founded in 1987 as a joint venture between Philips, the Taiwan government, and private investors, the company listed in Taiwan in 1994 and later launched its US ADR in 1997. TSMC’s vast scale and advanced manufacturing capabilities support strong operating margins, even within the highly competitive foundry industry. The ongoing shift toward the fabless semiconductor model has also provided meaningful growth tailwinds. Its distinguished customer base includes Apple, AMD, and Nvidia, which rely on TSMC’s leading-edge process technologies for their chip designs. The company employs more than 83,000 people.