What Is TSMC?
Manufacturing semiconductors is a very competitive industry and monopolized by the leading manufacturers. They often dictate technological progress for the world at large. The industry has a few companies that make their chips at foundries, and others customize chips for clients.
Taiwan Semiconductor Manufacturing (TSMC) is one of the most successful manufacturers of semiconductors, started in 1987. The company has an environment of thriving global customers and partners along with technologies and design enablement solutions.
TSMC currently has worldwide operations in Asia, Europe, and North America.
Brief History Of TSMC
TSMC was started in 1987 by Morris Chang and became the world’s first semiconductor manufacturer. It has since been leading in the field. Mark Liu and C.C. Wei took over as leaders after Morris Chang retired in 2018.
TSMC was registered on the Taiwan Stock Exchange in 1993 and on the NYSE in 1997. TSMC’s annual revenue growth rate in 1994 was 17.4% in and earnings growth was 16.1%.
From its inception to now, the various clients of TSMC are Apple, Huawei Technologies, Qualcomm, Spreadtrum, Alphabet, and Allwinner Technology, amongst many more.
Businesses that dabble in programmable logic devices have used TSMC’s factory before and continue to do so. A few integrated device manufacturers commission development of their chips to TSMC.
TSMC produces thirteen million wafers equivalent to 300 mm and chips with nodes that process 2 microns to 5 nanometers each year. TSMC was also one of the first companies to start engineering five and 7-nanometer merchandise.
They are also the first company to greatly promote the technology of extreme ultraviolet (EUV) chip design. EUV fabrication is the finest resolution technology a company can harness when producing chips and other technical products.
Progress Of TSMC Since Its Launch
With its headquarters in Hsinchu, Taiwan, TSMC has produced 281 distinct process technologies and manufactured 11,617 products for 510 customers in 2020. They provided the widest range of advanced packaging technology services.
It is also one of the first companies to have 5-nanometer production capabilities. Having the ability to produce 5-nanometer chips requires having access to the best and most progressive technology available.
Since its establishment in 1987, TSMC has steadily grown to be one of the world’s leading semiconductor manufacturers. It was also one of the first Taiwanese companies listed on the NYSE. Since its launch, TSMC’s foundry has produced state-of-the-art wafers and chips.
Being the first of its kind, TSMC’s foundry has developed a reputation of being the most efficient and advanced wafer producer. It’s revenue is equivalent to 50% of the revenue generated by the semiconductor industry.
It has made itself indispensable and gained trusting partnerships with the consumers.
They also exceeded production in 2006 when they produced 7 million 8-inch equivalent wafers. Companies around the world trust TSMC with their integrated circuits due to the advanced process technologies, pioneering design services, and product quality.
TSMC has fabricated operations of two advanced 300mm wafer fabs, four 8-inch wafer fabs, and one 6-inch wafer fabs in Taiwan, Camas, Washington, Singapore, and Shanghai, China.
The main vision of TSMC is to be the most progressive and forward-thinking technology and foundry services provider to fabless companies. They want to be a powerful competitive force in the semiconductor industry by partnering with the leading technology companies.
To attain the vision, they are following 3 steps:
- Being a leader in technology and getting competitive with leading IDMs
- Being a leading manufacturer
- Providing the most efficient and beneficial products from the silicon foundry
The motto of TSMC is to be the most reliable technology and capacity provider for the integrated circuit industry for years to come.
How Does TSMC Make Money?
The Taiwan Semiconductor Manufacturing Company, started in 1987, is one of the world’s leading semiconductor companies and is also listed on both the Taiwan Stock Exchange and the New York Stock Exchange (NYSE). You can buy the shares in both USD and the New Taiwan dollar.
The company’s market capitalization as of 2020 is $423.96 billion and has over 49,000 employees. If you’re curious about their functions, keep reading.
Having the semiconductor industry is crucial in the production of electronics. They conduct research, design, and produce chips used in phones, radios, televisions, medical equipment, and video games. Therefore, any device you use has a semiconductor.
TSMC’s website states that it produces more than 10,000 products for almost 500 clients worldwide. The corporation manufactures chips for some of the biggest tech giants of the world. One of the most important clients is Apple. TSMC produces A-series chips for them.
Apple is one of TSMC’s biggest clients and accounts for one-fifth of its total revenue.
In Your Ear and Everywhere
TSMC has hundreds of clients, and Apple is their biggest one. You can categorize their customers based on their needs into three categories – integrated device manufacturers, systems companies, and fabless companies.
TSMC takes up production outsourced by Fabless companies. They are corporations that design and sell chips but do not produce them. Advanced Micro Devices (AMD) has also started outsourcing its production models to organizations like TSMC.
TSMC does not use its name on products as it is a pure-play foundry. This benefits companies that wish to sell authentic products. TSMC has worldwide clients. The company’s largest market lies in the North American regions that generate over 65% of the revenue.
Morris Chang founded TSMC in 1987 to fill the market’s need of having a foundry for semiconductors. It builds integrated circuits designed by other companies. Before TMC’s establishment, companies manufactured chips in their factories.
The emergence of TMC changed the way the semiconductor manufacturing industry functions. It took over the market between fabless design firms, pure foundries that only manufacture, and integrated circuit factories invested in both.
The chip-making industry is also very capital-heavy, and it’s the reason to applaud TMC for breaking into it and emerging as a global leader.
There is a severe chip shortage and increased wait times on delivery in times of a pandemic, increasing the importance of TMC’s timely production.
You must log in to post a comment.