Applied Materials & TSMC
Applied Materials is one of TSMC's most critical equipment suppliers, providing deposition, etch, and chemical mechanical planarization (CMP) systems used in every advanced node from 7nm to 2nm. TSMC's capital expenditure of $35-40B annually flows substantially to Applied Materials for the tools needed to build and upgrade its leading-edge fabs.
Why it matters: Semiconductor manufacturing requires hundreds of process steps, each needing specialized equipment. Applied Materials dominates deposition and CMP equipment, holding significant market share in the tools that deposit thin films and polish wafer surfaces to atomic-level precision. No leading-edge fab can operate without Applied Materials equipment.