Discover the Legacy of Taiwan Semiconductor Manufacturing Co.: Leadership, Innovations, and Fascinating Facts

TSMC’s Advanced Technologies and Challenges

TSMC thrives in making specialized technology products. It excels in producing extremely small components, known as nanoscale production. The smaller the component, the more powerful and efficient it becomes.

Intel Corporation was king of the semiconductor industry in the 2000s. They reduced chip features to 45 nanometers, which is tiny! However, TSMC eventually became the leader, mass-producing 3-nanometer chips by 2024.

TSMC stands out because it specializes solely in manufacturing chips, unlike many competitors that design and sell products too. This focus helped TSMC to create strong partnerships and dominate the market.

By 2024, TSMC held 64% of the global foundry market, far ahead of Samsung, which had only 12%.

Top clients include Apple, NVIDIA, and AMD. In 2023, Apple alone accounted for 25% of TSMC’s revenue. While these partnerships are crucial for revenue, losing a major client could hurt TSMC financially.

TSMC faces industry challenges like:

• Demand Cycles: Semiconductor sales experience highs and lows, impacting revenue.
• Geopolitical Risks: Tensions between China and Taiwan can disrupt business.

• Competition: Rivals like Samsung aim to take TSMC’s market share.

TSMC’s Journey Begins

Before TSMC began, Morris Chang was recruited to help build Taiwan’s semiconductor industry. He joined the Industrial Technology Research Institute in 1985. Chang later founded TSMC’s initial plant, which became its first foundry.

The Taiwanese government raised capital from Philips and private investors to start TSMC in 1987, with the government holding the majority stake.

TSMC’s Growth and Innovations

TSMC saw impressive growth in its first 20 years, driven by technological advancements, including:

1. Foundry Model Launch: TSMC pioneered the pure-play foundry model in 1987, allowing other companies to focus on chip design.

2. Advanced Processes: TSMC became a leader in producing smaller, faster chips, rolling out its 7-nanometer process in 2018 and 3-nanometer process in 2022.

3. Extreme Ultraviolet Lithography (EUV): While not developed by TSMC, they were the first to use EUV for mass production, starting in 2019.

In the 1990s, TSMC went public in Taiwan in 1994 and on the New York Stock Exchange in 1997. This allowed TSMC to grow significantly and attract international investment.

In 2010, Apple’s interest in TSMC began, replacing Samsung as its chip supplier. This partnership allowed TSMC to thrive, growing to be Apple’s largest vendor.

By 2011, TSMC was producing chips for Apple’s iPhones and became the exclusive supplier for its Mac chips, marking a new era.

While focused on Apple, TSMC’s innovations also helped NVIDIA dominate the gaming and AI markets with powerful chips.

As of 2022, TSMC surpassed Intel and Samsung in market value, gaining 50% of the global foundry market and becoming the largest chip manufacturer worldwide.

TSMC’s U.S. Expansion Challenges

TSMC’s U.S. factory in Arizona faced significant labor issues, partly funded by U.S. grants. Workers reported long hours and a demanding culture, leading to burnout.

To solve these challenges, TSMC hired Taiwanese workers, leading to accusations of discrimination from U.S. employees. By 2025, many workers at the Phoenix plant were Taiwanese, experiencing better conditions than local staff.

TSMC’s Dominance in the Semiconductor World

In nearly 40 years, TSMC evolved from a government-backed initiative into the leading semiconductor foundry. As the manufacturer behind devices like iPhones and AI systems, TSMC is crucial to today’s tech landscape.