InsightfulValue
← Home
🚀 Sign up Free for Public Company Valuation & Insights!

Sign up for free to get access to the best public company valuation and insights. Get started today and unlock the potential of your investments!

Sign up free   Video Highlights

Taiwan Semiconductor
Taiwan Semiconductor

Electronics / Semiconductor Manufacturing

At a Glance | Core Facts | Company Due Diligence: | Industry Due Diligence: | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | Web
Company at a Glance

Overview
Taiwan Semiconductor Manufacturing Company (TSMC) is a semiconductor manufacturing company headquartered in Taiwan. It was founded in 1987 and has grown to become the world's largest dedicated independent semiconductor foundry. TSMC is a contract manufacturer and produces chips for a wide range of customers, including fabless semiconductor companies, integrated device manufacturers, and design services companies.
TSMC's primary business is the design and fabrication of integrated circuits (ICs) and other semiconductor devices. It offers a broad array of services, including IC design, mask making, wafer probing, packaging, and testing. TSMC's advanced manufacturing processes have enabled it to become a leader in the production of logic, mixed-signal, and memory chips.
TSMC operates multiple fabrication plants (fabs) in Taiwan, as well as in other locations worldwide, including the United States, China, and Singapore. Its fabs use the most advanced and sophisticated manufacturing processes, enabling TSMC to produce chips with higher performance, smaller form factors, and lower power consumption.
TSMC is known for its strong financial performance, technological leadership, and commitment to environmental sustainability. It invests heavily in research and development to continuously improve its manufacturing processes and support its customers' innovation.
TSMC's customers include some of the biggest names in the technology industry, such as Apple, AMD, Nvidia, Qualcomm, and Broadcom. Its chips are found in a wide range of products, including smartphones, computers, networking equipment, and consumer electronics.
In addition to its manufacturing operations, TSMC also actively engages in corporate social responsibility initiatives, focusing on education, environmental sustainability, and community development. TSMC has received numerous accolades for its corporate social responsibility efforts, including being named one of the World's Most Ethical Companies by the Ethisphere Institute for several years in a row.
Overall, TSMC is a global leader in the semiconductor industry, with a strong track record of performance, innovation, and responsibility.
What is special about the company?
1. Leading global manufacturer: Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest pure-play semiconductor foundry. It is responsible for producing a significant portion of the world's semiconductor chips, making it a critical player in the global technology industry.
2. Advanced technology and production processes: TSMC is known for its cutting-edge technology and production processes, which allow it to manufacture chips with higher performance, smaller sizes, and lower power consumption. This has helped TSMC attract top semiconductor companies such as Apple, Qualcomm, and Nvidia as clients.
3. Innovation and research: TSMC invests heavily in research and development, with a dedicated team of scientists and engineers constantly pushing the boundaries of semiconductor technology. This has resulted in several breakthroughs and innovations in chip design and production.
4. Strong financial performance: TSMC has a strong track record of financial success, consistently reporting high revenues and profits. It is also one of the few semiconductor companies with a AAA credit rating, indicating its financial stability and credibility.
5. High-quality products and reliability: TSMC is known for its high-quality products and reliability, with a defect rate of less than 1 out of 1,000 chips produced. This has earned the company a reputation for excellence in the industry.
6. Sustainable and responsible practices: TSMC is committed to sustainability and responsible practices, implementing measures to reduce energy consumption and greenhouse gas emissions in its operations. It has also set goals to reduce water usage and increase renewable energy usage.
7. Strong relationships with clients: TSMC has built strong relationships with its clients, thanks to its high-quality products, reliable supply chain, and customer-centric approach. This has helped the company secure long-term partnerships and maintain its position as a top provider in the industry.
8. Contribution to the local economy: As a major employer in Taiwan, TSMC has played a significant role in the country's economic development. It has also established programs and initiatives to support and nurture local talent, contributing to the growth of Taiwan's high-tech industry.
What the company's business model?
Taiwan Semiconductor Manufacturing Company (TSMC) is a fabless semiconductor company that specializes in manufacturing and supply chain management services. Its primary business model can be summarized as follows:
1. Design and Development of Foundry Processes: TSMC invests heavily in research and development (R&D) to design and develop semiconductor manufacturing processes. These processes include technologies such as 5nm, 7nm, 10nm, and 16nm. This allows TSMC to stay at the cutting edge of semiconductor fabrication technology.
2. Foundry Services: TSMC offers foundry services to its customers, which mainly consist of integrated device manufacturers (IDMs) and fabless semiconductor companies. TSMC manufactures the chips that these companies design, using its state-of-the-art processes. For instance, Apple's A-series and Qualcomm's Snapdragon chips are manufactured by TSMC.
3. Customization Services: TSMC offers customization services to its customers to meet their specific needs. This includes modifying and optimizing the foundry process to suit the design of the customer's chip.
4. Supply Chain Management: TSMC manages the entire supply chain, from ordering raw materials to delivering the final chips to its customers. This allows its customers to focus on their core competencies and reduce their time-to-market.
5. Wafer Manufacturing and Testing: TSMC manufactures and tests semiconductor wafers to ensure the quality and reliability of the chips produced. This includes wafer fabrication, packaging, and final testing services.
6. Intellectual Property (IP) Licensing: TSMC licenses its intellectual property to its customers, which includes its advanced semiconductor processes and design libraries. This allows its customers to design their chips with the help of TSMC's proprietary technologies and improve their product performance.
Overall, TSMC's business model revolves around providing foundry and supply chain services to its customers, while also continuously investing in R&D to maintain its competitive edge in the industry.
Interesting facts about the company
1. The Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest independent semiconductor foundry, meaning it produces chips for other companies without designing them itself.
2. It was founded in 1987 by Morris Chang, who previously worked at Texas Instruments and General Instrument Corporation.
3. TSMC is headquartered in Hsinchu, Taiwan and has manufacturing plants in Taiwan, China, and the United States.
4. The company’s market capitalization as of 2021 is over $600 billion, making it one of the most valuable companies in Asia.
5. TSMC is responsible for producing chips for some of the biggest technology companies in the world, including Apple, Qualcomm, and Nvidia.
6. It is known for its advanced manufacturing techniques, including the use of extreme ultraviolet lithography (EUV) to produce smaller and more efficient chips.
7. TSMC has a reputation for investing heavily in research and development, with nearly 8% of its revenue going towards R&D.
8. The company also has a strong commitment to sustainability, with a goal to achieve 20% renewable energy usage by 2025.
9. TSMC has been a major contributor to Taiwan’s economy, with its annual revenue accounting for around 4% of the country’s GDP.
10. In 2020, TSMC announced plans to build a new $12 billion chip factory in Arizona, marking the company’s first production plant in the United States.
See Company Due Diligence:

Wait! There's more — sign up for free or log in

© 2024 - 2025 InsightfulValue.com. All rights reserved. Legal