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TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD. (TSMC) is the world’s first independent share in semiconductor chips. TSMC, headquartered in HSIN-CHU in TSMC, was established in 1987 by Morris Chang. Morrischang respects being a pioneer of semiconductor foundation business models.
Since its establishment, TSMC’s vision has become a major casting for “Fabless” semiconductor companies that have designed and sold semiconductors but outsource manufacturing. By 2005, the company achieved goals and gained half of the semiconductor casting market. The market advantage of TSMC continued in the 2020s, as the chip production of artificial intelligence (AI) began to rebuild a more wider technical department from the semiconductor industry.
Lack of technical terms
Semiconductors supply power to devices we depend on every day, but some industry terms can be confused.
FAB: It is an abbreviation of the “manufacturing factory”, a facility where semiconductor chips are manufactured.
Fabless: A business model in which companies focus only on chips design and sales, and outsource the manufacturing to a third -party casting.
Foundry: A company specializing in the production of semiconductor chips for other companies, usually a Fabless company without designing its own chips.
TSMC advanced technology, competitive advantages, risks
TSMC manufactures special technology products to satisfy certain customer needs. TSMC is excellent, and one area that emerged as a dominant force is produced by nanometer scale (“nanoscale”). This is the manufacture of very small components. The smaller the nanometor, the higher the chip, the higher the transistor density, and the more computing ability increases while reducing energy consumption.
US chip maker Intel Corporation (Intc) led a semiconductor industry in the 2000s, introducing manufacturing technology in 2007, reducing chip functions to 45 nanometers. TSMC ultimately overtaking Intel as an industry leader. By 2024, the TSMC produced a 3 -nanometer chip of mass -produced and started developing a 2 -nanometer process technology.
The TSMC industry leadership may be due to a focus on its establishment vision or as a “pure play” semiconductor casting. This unique focus distinguishes more general integrated device manufacturing models and models that combine chips design, manufacturing, and product sales under one roof.
TSMC was the first chip manufacturer that developed and grown a 2ndry model by focusing on the production only. With this early advantage, the company has established a scale of the scale and became an important partner for semiconductor design companies. With this strategic movement, the company gave the company a permanent competitive advantage, and the TSMC was able to dominate the semiconductor industry casting segment. By 2024, TSMC accounted for an estimated global pure casting market, a dwarf competitor of competitors such as Samsung, which has 12 % share.
The company’s top three clients are Apple Inc. (AAPL), Nvidia Corporation (NVDA), Advanced Micro Devices, and Inc. (AMD). In 2023, Apple alone accounted for 25 % of TSMC’s revenue, making it a top client of the company. Such partnerships promote great revenue, but losing a major client can have a significant economic impact, and there is a risk.
TSMC also faces a more spacious risk of semiconductor industry, including:
Industry competition. Rivalfoundri, including Samsung, offers continuous tasks for TSMC market dominance.
The beginning of the Taiwan semiconductor manufacturing company
A few years before TSMC’s official establishment, the Taiwanese government hired electric engineer Morris Chang to support the development of a new semiconductor industry in the country. Chan was participated in the non -profit industrial Research Institute (ITRI) in 1985. He became the chairman and president of the organization, and established TSMC’s first semiconductor function, Silicon Waha, and a plant that would become a semiconductor chip.
Despite such a high -cost and high -risk venture, the Taiwanese government has raised investment capital from some private investors, Philips (PHG) in the Netherlands. The TSMC was later established in 1987 as a joint venture between the Taiwanese and Philips, and the government has a majority of new companies.
Mile Stone of TSMC growth and innovation
TSMC has experienced great growth in the next 20 years. Many of them may be due to the technical breakthroughs and innovation of the following companies.
Advanced semiconductor process. TSMC has become a smaller, faster, faster semiconductor chip manufacturing that covers various domains from consumer electronics to AI. The company launched a large -scale production of 7 nanometer processes in 2018, 5 nanometers in 2020, and 3 nanometers in December 2022. Transistor to less space.
In the 1990s, TSMC was released on the Taiwan Stock Exchange (TWSE) in 1994, achieving double milestones by providing US deposit shares (ADS) on the New York Stock Exchange (NYSE) in 1997. did. This important step has evolved beyond that. The origin as an emerging company supported by the government appears as a public company. By attracting international investment capital, large -scale expansion TSMCs were needed to be dominant in the global semiconductor industry.
In 2010, Apple approached the TSMC as a chip manufacturer that could replace Samsung, a major chip manufacturer of Apple. As Samsung expanded to a smartphone, Apple noticed that Apple is directly competing with the main chip manufacturer. Immediately afterwards, Apple became TSMC’s largest client and accounted for more than 25 % of Chipmaker annual revenue.
In 2011, TSMC started producing the A series chip for Apple’s iPhone and held a way to become an exclusive supplier of the Mac lineup of Apple. This partnership became an extremely important milestone for TSMC, especially among pure competitors, and earlier than in the industry. Apple’s demands promoted TSMC’s progress in semiconductor processes. In other words, 7, 5, 3-, and 2 nanometer chips.
These nanometer innovation has greatly supported Apple’s hardware demand, but these progress plays an important role in TSMC’s client partnership with NVIDIA, which began in 1995. TSMC’s advanced process node has enabled NVIDIA design a high -performance graphic processing unit (GPU). Its advantage in the game market and AI chip production.
By 2022, TSMC has exceeded Intel and Samsung in market capitalization, further advancing dominant positions among semiconductor manufacturers. It also exceeded Intel’s leadership in the creation of cutting -edge chip process nodes. In 2023, the TSMC produced $ 69.3 billion, became the world’s largest independent chip manufacturer and became the world’s largest independent chip manufacturer.
A challenge for TSMC US expansion
The expansion of the TSMC to the United States at the ARIZONA manufacturing plant has raised $ 6.6 billion from the 2022 chips and scientific law subsidies. TSMC US employees reported that long working hours and intense demands contributed to the toxic work environment, and many workers, especially engineers, have experienced burning syndrome.
To deal with these issues, TSMC is a status for workers based in the United States according to a lawsuit filed in 2024 by a group of TSMC employees claiming the discrimination of anti -Americans. I hired a Taiwanese worker. As of 2025, about half of the 2,200 workers at the Phoenix Plant were Taiwanese, enjoying better treatment and benefits than the US counter part.
Increased to semiconductor dominance of TSMC
Almost 40 years, TSMC has grown into the world’s most dominant semiconductor casting work from a research project supported by the government. TSMC has helped to promote the progress of modern digital economic computing and formation as a major manufacturer of chip -driven technology such as iPhone and AI SuperComputers.
Carl Montevirgen
