While most people can name companies like Apple, Nvidia, or AMD, few can tell you who supplies their chips. All three entities are known as "fabless manufacturers," where they design and sell the products, then outsource the actual chip manufacturing to someone else.

When it comes to chips that must use cutting-edge technology for peak performance and efficiency, there's one place they go: Taiwan Semiconductor Manufacturing (NYSE: TSM). TSMC is one of the top semiconductor foundries in the world, yet it remains relatively under the radar. With the stock being undervalued currently, it's also a great time to buy. Read on to discover why Taiwan Semiconductor deserves a place in your portfolio.

What sets Taiwan Semiconductor apart from other foundries is its leading technology. Taiwan Semiconductor derives over half of its revenue from 5- and 7-nanometer (nm) chips, which are currently the most potent varieties on the market. But there's a new player on the block, which is sure to boost its revenue.

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Source Fool.com