Foundation: 1987
Headquarters: Hsinchu, Taiwan
Chairman and CEO: C. C. Wei
Executive Summary: Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s leading contract chipmaker, known for manufacturing advanced semiconductors for a wide array of tech companies globally.
Founded in 1987 by Morris Chang, TSMC introduced the concept of “pure-play” foundry services, where it focuses solely on manufacturing chips designed by other companies, without engaging in chip design itself. This model was revolutionary at the time, as it allowed smaller companies to produce high-quality chips without the massive investment required in building their own fabrication plants.
Morris Chang, who had previously worked at Texas Instruments, returned to Taiwan with the vision of making it a hub for semiconductor manufacturing. With government support through tax incentives and land grants, TSMC established its first fab in Hsinchu Science Park. The company’s initial public offering (IPO) in 1994 was a significant event, raising capital that fueled further expansion.
TSMC’s growth was steady through the 1990s, focusing on increasing production capacity and advancing technology nodes. By the late 1990s, TSMC was producing chips at a 0.18-micron process, significantly smaller than previous standards, which allowed for more powerful and energy-efficient chips.
The early 2000s saw TSMC scaling up to meet the booming demand for chips in consumer electronics, especially with the rise of the smartphone era. In 2001, TSMC introduced its 0.13-micron process technology, and by 2004, it was producing chips at 90 nanometers, further solidifying its position as a leader in semiconductor manufacturing.
Throughout the 2010s, TSMC continued to innovate, with the introduction of FinFET technology at the 20 nanometer node in 2014, which provided better performance and energy efficiency. This period also saw TSMC’s expansion into the United States, with plans for new fab construction to diversify its manufacturing base amid geopolitical tensions.
By the 2020s, TSMC was at the forefront of the AI and 5G revolutions, producing chips for major tech companies like Apple, Nvidia, and AMD, using advanced processes like 5 nanometers and moving towards 3 nanometers. The company’s capacity expansion, including significant investments in the U.S. and plans for a 2 nanometer process, underscores its commitment to staying ahead in semiconductor technology.
Today, TSMC’s influence extends beyond manufacturing; it’s pivotal in shaping technological advancements, with its chips powering everything from mobile devices to high-performance computing and AI. Its journey from a startup to a tech giant illustrates a story of innovation, strategic foresight, and global impact in the semiconductor industry. Its annual revenue is in the range of US$70 billion.
