TSMC's Shares Soar Due to Dominance in Semiconductor Market (38%), Advancements in AI Technology, and Commitment to Environmental Sustainability

In a significant move towards sustainability, TSMC (Taiwan Semiconductor Manufacturing Company) unveiled its "Supply Chain Carbon Reduction Action Strategy," encouraging suppliers to adopt low-carbon practices. This initiative is part of TSMC's broader commitment to reducing its carbon footprint.

TSMC has made significant strides in boosting its renewable energy use. In 2024, the company reached 3,610 GWh of renewable energy, securing 4.4 GW of renewable energy contracts. Notably, TSMC's Taiwan fabs used 1,450 GWh of renewable power in the same year, and its global offices ran entirely on renewable electricity.

The company's efforts towards sustainability are reflected in its energy consumption. Electricity usage (Scope 2) accounted for 52% of TSMC's emissions, while its supply chain (Scope 3) contributed 39%, and direct processes (Scope 1) accounted for 9%. TSMC has been actively working on reducing emissions, although there was an 8% increase compared to the previous year, and emissions per product unit rose by 19%.

TSMC's commitment to innovation is evident in its rapid 3nm process ramp-up and high utilization of its 4nm and 5nm nodes for AI-related chips. This positions TSMC at the forefront of innovation, reshaping the semiconductor industry alongside AI-driven expansion. The rising demand for sophisticated packaging solutions further confirms this trend.

TSMC's flagship CoWoS (Chip-on-Wafer-on-Substrate) packaging capacity is expected to reach between 65,000 and 75,000 wafers per month by the end of 2025, with further expansion to about 100,000 units by 2026.

TSMC's diverse client base, advanced manufacturing capabilities, and strategic expansion into AI markets strengthen its long-term outlook. The company accounted for nearly three-quarters of the revenue growth in the "foundry 2.0" market, which focuses on next-generation semiconductor production.

Investors strongly invest in TSMC due to its dominant market position in high-performance chips for AI and smartphones. In Q2 2025, TSMC reported a 12% revenue increase to $20.8 billion, with high profitability driven by the growing AI chip market expected to grow double-digit annually until 2030.

TSMC's sustainability initiatives extend beyond energy. Last year, the company installed or upgraded more than 3,400 scrubbers at manufacturing sites, cutting 390,000 metric tons of direct emissions. TSMC has also added nine new green factories certified by LEED Gold or higher, bringing its total to 51 eco-certified facilities.

TSMC's commitment to sustainability is not limited to its operations. The company has partnered with local beekeepers and Taiwan's Tunghai University to produce "Ji Mi," a branded honey cultivated in and around its factories.

Regarding wind energy expansion, there is no direct information from the sources about TSMC targeting a wind energy expansion in 2025. However, TSMC is actively improving sustainability by investing in projects like water recycling at its Arizona facilities, signaling ecological initiatives but no explicit plan for wind energy in 2025 is mentioned.

TSMC aims to source 40% of its electricity from renewables by 2030 and fast-tracked its goal to reach 100% renewable energy by 2040. This ambitious target underscores TSMC's commitment to a sustainable future, aligning with the global push towards carbon neutrality.

Meanwhile, TSMC's rivals are also making strides in the renewable energy field. MediaTek announced that its next flagship chip will use TSMC's 2nm process, underscoring the company's industry leadership. Advanced Semiconductor Engineering (ASE), a key player in outsourced assembly and test services, saw an 11% increase in revenue due to the growth in the semiconductor industry.

In conclusion, TSMC's commitment to sustainability, innovation, and industry leadership is evident in its various initiatives and achievements. The company's focus on renewable energy, emissions reduction, and eco-friendly facilities, along with its technological advancements in AI-related chips, positions TSMC at the forefront of the rapidly evolving semiconductor industry.