Taiwan Semiconductor Manufacturing Company Limited, or one of the 10 Best Semiconductor Stocks to Buy Right Now, is making headlines once again. On August 28, Reuters reported how the world's biggest chipmaker is planning to sell a trade secrets registry system to companies in Europe and the United States.

The platform, developed in 2013, was originally designed to be utilized by Taiwan Semiconductor Manufacturing to handle and safeguard its own intellectual property. Since the launch, the system has been utilized by 20 local companies, such as ASE Technology Holding Co., according to Reuters. Fortune Hsieh—Chairman of the Taiwan Association for Trade Secrets Protection—verified the rising use of the system among Taiwan's technology sector.

A Strategic Move in Intellectual Property Management

Taiwan Semiconductor Manufacturing Company Limited decision to develop the system for the use in commerce highlights the necessity of protecting intellectual property in today's high-speed semiconductor and artificial intelligence-driven markets. In a more competitive world, safeguarding proprietary technology has become a strategic necessity not just for chipmakers but their customers as well in industries such as automotive, smartphone, cloud computing, and artificial intelligence.

Applying this solution to Europe and the US, TSMC stands not only as the top semiconductor manufacturer but as an intellectually sound partner that can protect intellectual property. Since corporate espionage and cyberattacks are real dangers, the trade secrets mechanism may be a valuable resource for corporations seeking to protect their technological edge.

Financial Performance Reflects Strong Growth

Taiwan Semiconductor Manufacturing Company Limited has also maintained solid financial performance. In Q2 2025, quarter-over-quarter revenue grew by 11.3%, aided by healthy demand for its 3nm and 5nm process technologies.

·         3nm process accounted for 24% of wafer revenue

·         5nm process accounted for 36%

·         7nm process accounted for 14

Despite having some headwinds in the foreign exchange, TSMC's consolidated capital expenditures reached an all-time high of US$9.63 billion, underscoring its emphasis on developing advanced manufacturing capability.

The performance keeps the company as the world's number one semiconductor foundry, delivering innovative chips to industry front runners such as Nvidia, Intel, AMD, Broadcom, and Apple.

Investor Confidence Remains Strong

First Eagle Investments also, in its Q2 2025 investor letter, mentioned the pivotal role of TSMC in the global chip supply chain. The fund stated:

"Taiwan Semiconductor Manufacturing Company Limited is the world's top semiconductor foundry and a premier producer of advanced chips for generative AI. TSMC had already announced strong consistent sales for the quarter, with rising contribution from AI. We believe TSM has stretched its premium over peers to become the de facto foundry for the majority of customers."

The remark is a reflection of widespread investor confidence in TSMC's leadership in technology, particularly in light of the continued increase in AI-computing demand.

Geographical Diversification Improves Resilience

Another significant point is Taiwan Semiconductor Manufacturing's shift to diversify its manufacturing platform. The company has spent billions of dollars over the last couple of years setting up sophisticated fabrication facilities in the United States and Japan. The steps are intended to help de-risk supply chains, build greater resilience, and meet rising geopolitical fears about semiconductor reliance on Asia.

By establishing its international presence, Taiwan Semiconductor Manufacturing Company Limited aims to secure long-term partnerships with governments and multinational corporations that require cutting-edge, dependable, and secure semiconductor production.

TSM versus Other AI Growth Stocks

While Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) remains a good investment, smaller AI-focused companies may offer more upside, analysts say. As the utilization of AI moves into its new growth phase, specialty players in areas like AI software, cloud optimization, and generative AI infrastructure may offer outsize returns.

All that being said, however, TSMC's leadership position, cutting-edge manufacturing technologies, and globalization strategy make it a long-term investor cornerstone stock in the semiconductor industry.

Conclusion

Taiwan Semiconductor Manufacturing Company Limited continues to build its profile as a semiconductor world leader. Its decision to sell a trade secrets registry system to Europe and the US further increases its profile as not just a chipmaker but an intellectual property protection pioneer.

With strong Q2 2025 performance, growing contribution from AI demand, and a diversified worldwide reach, TSMC remains a compelling choice for stability and access to the future of technology.

For investors weighing the 10 Best Semiconductor Stocks to Buy Right Now, TSMC is obviously an established winner—but potential among smaller, high-flying AI stocks may also be worth watching.