Behind the jaw-dropping technologies that Nvidia, Apple, Broadcom, and many others put out is Taiwan Semiconductor Manufacturing (NYSE: TSM). TSMC -- as it's commonly called -- is the world's largest chip foundry and only makes chips on a contract basis, which allows it to stay neutral as competitors battle it out in the smartphone, GPU, and automotive worlds.

While its chips have always been cutting-edge, TSMC's latest technology had yet to hit the markets until recently. Its 3 nanometer (nm) chips are finally starting to contribute to revenue, making this an exciting time for TSMC investors. So, what's the big deal with these chips? Read on to find out.

Taiwan Semiconductor's 3 nm chips represent the next iteration in chip technology. By increasing the density, Taiwan Semiconductor can pack more transistors onto a single chip, making them more powerful or energy efficient (depending on how the designer configures the chip).

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Source Fool.com