TSMC wants to do more than make chips, now it plans to build the next Nvidia

TSMC wants to do more than manufacture chips for Apple and Nvidia. The chipmaker is launching a $500 million investment fund to back promising startups, support suppliers and help build the next generation of semiconductor giants.

Taiwan Semiconductor Manufacturing Company (TSMC) is preparing to shape tomorrow's tech world. It is looking to support the next big name in the semiconductor industry. For that, it is launching a new $500 million investment fund for promising chip startups. The world's largest contract chipmaker wants to do more than manufacture advanced processors for technology giants as the artificial intelligence boom creates opportunities for new players. The fund could also support suppliers and other companies that help build the semiconductor ecosystem.

As reported by Nikkei Asia, TSMC plans to use the new investment arm to support emerging chip companies that could eventually become the next tech giant like Nvidia or Broadcom. Kevin Zhang, TSMC's senior vice president and deputy co-chief operating officer, explained the company's strategy in an interview with the publication during the Nikkei Forum Global Management Dialogue 2026 in Tokyo.

TSMC wants to support the next Nvidia

TSMC's new fund marks a broader investment strategy for the company, which has traditionally focused on manufacturing chips for customers such as Apple, Nvidia, AMD, Google and Qualcomm. The company now wants to expand its support to startups and suppliers, including businesses providing chipmaking equipment, advanced materials, chemicals and intellectual property.

Zhang said the company wants to move beyond investing only in its immediate customers. "We feel it's time to ... formalize this investment mechanism, and we also want to extend the scope [to] not only just target our immediate customers," he told Nikkei Asia.

The executive added that the new investment arm could help TSMC develop a stronger semiconductor ecosystem by supporting upstream partners and suppliers. This would be a change for the company, which has not previously invested in its suppliers.

TSMC also sees investments in AI companies as part of the same strategy. The company has announced plans to invest up to $500 million each in OpenAI and Anthropic, two major AI model developers that are exploring custom chips to power their future computing needs.

"By investing in Anthropic or OpenAI, we create a reinforcing loop to basically build a richer and healthier and hopefully a bigger ecosystem," Zhang said.

The new $500 million fund is significantly larger than TSMC's roughly $200 million emerging fund launched in 2021 to help startups develop products using its advanced chip manufacturing technology. Zhang said returns from the earlier fund had been "exceptional".

TSMC's total investment commitment could now reach $1.7 billion, including the existing fund, its new investment arm and planned investments in OpenAI and Anthropic. The company has also indicated that it could expand its investment activities further if needed.

Explaining the thinking behind the strategy, Zhang said: "We not only support today's Nvidia, but we also want to support the future's Nvidia."