Fundsmith Q2 2026 Investor Letter: Names TSMC (TSM) as New Tech Holding, Citing Unrivaled Technological Leadership in Semiconductors
London-based investment management firm Fundsmith highlighted in its Q2 2026 investor letter that it has added Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as a new technology holding. The letter noted that TSMC is the world's leading contract chip manufacturer, producing approximately 90% of the world's most advanced semiconductors. Its "moat" lies in its unparalleled technological lead in manufacturing the smallest chips, protected by the $20 billion capital barrier required to build an advanced factory. Future growth will be driven by global demand for computing power, particularly the chips needed to train and run AI models. As of July 31, TSMC's stock price was $404.25, down 10.52% in the past month, up 69.14% over the past 52 weeks, with a market capitalization of $2.09 trillion.
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