Taiwan Semiconductor (NYSE: TSM) may be the most important company in the world. It's a contract chip manufacturer, and the incredible technology from Nvidia, AMD, or Apple wouldn't be possible without its chip foundries. With the stock down around 10% from its all-time highs, is it time to capitalize on this discounted price and buy Taiwan Semi shares?

Taiwan Semiconductor has long been the leader in chip production. Because of its neutral position as a manufacturer, it doesn't matter which company has the best product -- it will benefit from the general rising tide of more advanced technology being adopted.

TSMC is one of the few companies that can manufacture 3nm (nanometer) chips, which are the most powerful varieties available. The distance these chips are named after corresponds to the distance between traces on a chip. For comparison, a human hair is approximately 80,000 to 10,000 nanometers thick -- this should give investors an idea of just how small these chips can be made.

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Source Fool.com