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All the technology revolves around this disruptor

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Silicon Valley is the cradle of American technology. Giants like Google and Apple have become the face of California’s center of disruption. But long before we hit Google searches on our iPhones, Silicon Valley got its name by creating the world’s largest industry – computer chips.

Silicon Valley is the cradle of American technology. Giants like Google and Apple have become the face of California’s center of disruption. But long before we hit Google searches on our iPhones, Silicon Valley got its name by creating the world’s largest industry – computer chips.

Computer chips, also known as semiconductors, are the “brains” of electronics. Nowadays, the whole world works with semiconductors. There wouldn’t be an iPhone, Amazon Webstore, or online messaging apps without them.

The temperature sensors in air conditioners are powered by tiny microchips. Rice cookers cook rice to perfection because the built-in semiconductors control the heat. The chip inside pacemakers sends electrical impulses to the heart to keep it beating regularly.

From flying across oceans to hailing a ride on our smartphones when we land; streaming movies to buy products online; from leaving the grocery store to paying for dinner with your credit card: every modern system runs on chips.

You can’t take a bunch of microchips off the shelves at Walmart. But the latest cameras, televisions, washing machines, ovens and refrigerators are all made “smart” by the semi-finished. In 2019, 300 billion computer chips were sold. That’s roughly 40 for every man, woman and child in the world. And the chip companies have raised $ 450 billion:

Almost all of human progress over the past 60 years has been driven by the increasing power of computer chips. Remember that chips are the brains of computers. And the more “brain cells” (transistors) a chip contains, the faster it is.

The NASA supercomputer that sent Neil Armstrong to the moon in 1969 had 2,000 transistors. But understand this: there is 11.8 billion brain cells packed on the chip inside the new iPhone! Keep in mind that modern bullets are no larger than your thumbnail:

All the technological advancements in our lives have come from chipmakers who have figured out how to cram more transistors onto these chips. This is how we can do things on our pocket smartphones that IBM mainframes larger than a double-decker bus ever could.

In short, semiconductors are the most important products the world has ever known. They are the “fuel” that powers all modern technology. And they’re also essential for any future disruptions you can think of.

Autonomous cars, artificial intelligence, computer vision, space tourism, genomic medicine. You name it, these disturbances that change the world EVERYTHING need faster chips.

All the technology revolves around this disruptor

You may already know the flea giant Nvidia (NVDA). Nvidia, Qualcomm, and AMD are often referred to as “chipmakers,” but that’s a misnomer. These companies do not actually manufacture semiconductors. They are more like architects, drawing up intricate plans and designs for the chips.

When it comes to physically manufacturing the chips, they hand over the reins to Taiwan Semiconductor Manufacturing Company (TSM). TSMC is the world’s largest semiconductor manufacturer. Today, around 70% of high-end chips pass through its factories. And his client list reads like a “who’s who” in the tech world.

It has made the chips inside every Apple iPhone and Mac since 2014. It has produced the chips for Nvidia since the ’90s. Giants like Qualcomm, Google and AMD pay TSMC billions of dollars a year.

Most investors have never heard of TSMC, possibly because it doesn’t make its own chips. It is a dedicated manufacturer, only producing chips for the tech giants. Most TSMC factories are located on the island of Taiwan. My contact John told me that his factory in Hsinchu is the most incredible building he has ever set foot in.

Once you have passed security, you need to put on a protective suit with masks and gloves. Then you step into an “air shower”. It is a special chamber that blows you with filtered air to remove all particles, like dust or hair.

Semiconductors manufactured by TSMC are so thin that a single grain of dust can ruin them. Its so-called “clean room” must be thousands of times more purified than outside. John said the air is so sterile that you have to drink gallons of water to stay hydrated.

What stands out most is how he describes TSMC’s factory robots:

“A monorail-shaped rail bolted to the ceiling loops around the plant. Shuttles that spin above your head carry partially finished shavings, some of which are worth more than solid diamonds.

These robots travel 400,000 km per day, combined. It’s the equivalent of running around planet Earth… 10 times! “

How TSMC became the world’s leading chipmaker

TSMC recently stole the crown from Intel as the world’s leading chipmaker. Remember that all advancements in technology have been fueled by chipmakers who have crammed more transistors onto these tiny silicon wafers. This process is the closest thing to real world magic.

The chip inside Apple’s new iPhone has a transistor etched every 5 nanometers. It is five billionths of a meter, or 1000 times smaller than a red blood cell.

Chipmakers refer to the task of producing ever faster chips as “recipes”. Making crisps is like baking a cake. You can have all the right ingredients (or machines), but you have to get the mix fair just to make it work.

Intel pioneered chipmaking in 1968. And until recently, it always “cooked” the recipe properly before anyone else. This allowed it to continue producing the fastest chips in the world.

But Intel was four years behind the latest chip innovation, allowing TSMC to overtake it for the very first time. TSMC is now the only chip maker in the world capable of producing advanced chips. And that turned it into the world’s largest tech company.

Think about it: when Apple and Nvidia need new chips, who are they going to call? It can only be TSMC. These companies spent around $ 550 million to design their latest chips. When you invest that kind of money in the design, you are only hiring the best chipmaker to build them. TSMC is like the sun, sitting at the center of the technological universe. Every business that relies on faster chips now revolves around it.

Build an indestructible empire

As chip manufacturing becomes more complex and expensive, TSMC is leaving its rivals in the dust.

In 2001, 30 chipmakers were vying for the No.1 crown. Today, TSMC is the only chipmaker in the world capable of manufacturing advanced chips. Intel and Samsung are the only others still standing, and both are 1 to 2 years behind.

The only problem with TSMC is how to make more chips. Apple, Nvidia, AMD and a handful of others have reserved all of its capacity until the second half of 2021.

I’ve been this disruptor for a few years now, and he’s one of the most consistent performers you’ve ever seen. Its sales have grown 15-fold since 2000, and the business has gone vertical over the past decade:

Remember, semiconductors are the “fuel” of our modern world. Every future disruption you can think of relies on faster and faster chips. As the main supplier of these chips, TSMC is now the world’s largest technology company.

I call it a “forever stock”. Buy the stock today and lock it in for 10 years. Watch along the way as it turns your initial investment into a small fortune.

Get my report “The Great Disruptors: 3 Breakthrough Stocks Ready to Double Your Money”. These actions will earn you 100% gains as they disrupt entire industries. Get your free copy here.

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