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Taiwan Semiconductor Manufacturing Company, commonly known as TSMC, is a global leader in the semiconductor industry. Headquartered in the Hsinchu Science Park in Taiwan, it is the largest non-U.S. company by market capitalization. TSMC operates as a semiconductor foundry, which means it is a dedicated contract manufacturer. Instead of designing its own chips, it manufactures them for other companies. This specialized role allows TSMC to hold a commanding majority of the global foundry market. Currently, the company accounts for approximately 70% of the global market share.

ESMC logo
ESMC logo

The manufacturing process at TSMC involves extreme precision and advanced technology. The company utilizes extreme ultraviolet (EUV) lithography to create incredibly small circuits. This technology allows TSMC to produce chips at very small process nodes. They have successfully brought 7-nanometer and 5-nanometer production to the market. These specific nodes were used to create the Apple A14 and M1 System on a Chip (SoC). They also power the MediaTek Dimensity 8100 and the AMD Ryzen 7000 series processors. As of 2024, TSMC manufactures 3-nanometer chips and plans to begin 2-nanometer mass production in 2025.

JASM Kumamoto 2024 03
JASM Kumamoto 2024 03

TSMC serves a diverse range of customers across the technology sector. Many "fabless" companies, which design chips but do not own factories, rely on TSMC. These customers include Nvidia, Apple, Broadcom, Qualcomm, AMD, and ARM. They also serve emerging firms like Allwinner Technology, HiSilicon, Spectra7, and UNISOC. Even some integrated device manufacturers, such as Intel, NXP, and Texas Instruments, outsource some production to TSMC. This makes TSMC a central pillar of the global electronics supply chain. Because so many industries rely on them, TSMC is sometimes viewed as a potential supply chain bottleneck.

NVIDIA-GTX-1070-FoundersEdition-FL
NVIDIA-GTX-1070-FoundersEdition-FL

The history of TSMC began in 1987 through a unique partnership. Morris Chang founded the company to commercialize research from the Industrial Technology Research Institute (ITRI). In 1986, Li Kwoh-ting invited Chang to build Taiwan's semiconductor industry. While companies like Intel and Texas Instruments declined to invest, Philips joined as a partner. Philips provided $58 million and transferred vital manufacturing technology and intellectual property. The Taiwanese government also provided 48.3% of the startup capital through the National Development Fund. Other capital came from private companies and the Kuomintang Central Investment Co.

104年11月25日 「節能減碳之旅」-馬英九總統訪視「台積公司中科15廠」 (22685573224)
104年11月25日 「節能減碳之旅」-馬英九總統訪視「台積公司中科15廠」 (22685573224)

Economically, TSMC is a massive force within Taiwan and the global market. In 2022, Taiwan's exports of integrated circuits reached $184 billion. This amount represented nearly 25% of Taiwan's total Gross Domestic Product (GDP). TSMC itself makes up about 30% of the Taiwan Stock Exchange's main index. The company has seen incredible financial growth since its inception. Since 1994, it has maintained a compound annual growth rate (CAGR) of 17.4% in revenue. In 2020, the company reported a net income of $17.60 billion on revenue of $45.51 billion. By April 2021, its market capitalization had exceeded $550 billion.

231105-1 TSMC Fab 21 construction
231105-1 TSMC Fab 21 construction

To manage global risks and geopolitical tensions, TSMC is expanding its physical footprint. While most of its work is in Taiwan, it is building new facilities abroad. In the United States, the company approved a $12 billion chip plant in Phoenix, Arizona. There are also plans for expansion into Germany. In Japan, TSMC established a subsidiary called Japan Advanced Semiconductor Manufacturing, or JASM. Located in Kumamoto, this facility is a joint venture involving Sony. The total capital expenditure for the Kumamoto fab is estimated at approximately $8.6 billion. This expansion helps secure supply chains for essential electronics and automobiles.

JASM Kumamoto 2024 03
JASM Kumamoto 2024 03

TSMC's operations also intersect with environmental and social responsibilities. In 2020, the company joined the RE100 initiative. This is a pledge to use 100% renewable energy by the year 2050. This is a significant goal because TSMC consumes about 5% of all energy in Taiwan. The company also participated in public health efforts during the COVID-19 pandemic. In 2021, TSMC and Foxconn pledged $175 million to purchase 10 million BioNTech vaccines. These doses were donated to Taiwan's national vaccination program. Through these actions, TSMC remains connected to the broader needs of the global community.

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🖼️ Images & Media (5)
File:NVIDIA-GTX-1070-FoundersEdition-FL.jpg
NVIDIA-GTX-1070-FoundersEdition-FL.jpg
File:104年11月25日 「節能減碳之旅」-馬英九總統訪視「台積公司中科15廠」 (22685573224).jpg
104年11月25日 「節能減碳之旅」-馬英九總統訪視「台積公司中科15廠」...
File:ESMC logo.svg
ESMC logo.svg
File:JASM Kumamoto 2024 03.jpg
JASM Kumamoto 2024 03.jpg
File:231105-1 TSMC Fab 21 construction.jpg
231105-1 TSMC Fab 21 construction.jpg
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