An Introduction to TSMC
Established in 1987 and headquartered in Hsinchu Science Park, Taiwan, TSMC pioneered the pure-play foundry business model by focusing solely on manufacturing customers’ designs. The Company does not design, manufacture or market semiconductor products under its own brand name, ensuring that it does not compete directly with its customers. Today, TSMC is the world’s largest semiconductor foundry, manufacturing 9,275 different products using 249 distinct technologies for 449 different customers in 2016.
With such a large and diverse global customer base, TSMC-manufactured semiconductors are used in a wide variety of applications covering various segments of the computer, communications, consumer, industrial and standard semiconductor markets. Such strong diversification helps to smooth fluctuations in market demand, which, in turn, leads to higher levels of capacity utilization and profitability.
Annual capacity of the manufacturing facilities managed by TSMC and its subsidiaries reached above 10 million 12-inch equivalent wafers in 2016. These facilities include three 12-inch wafer GIGAFAB® facilities, four 8-inch wafer fabs, and one 6-inch wafer fab in Taiwan, as well as two 8-inch wafer fabs at wholly owned subsidiaries: WaferTech in the United States and TSMC China Company Limited.
In March 2016, TSMC and the municipal government of Nanjing, China signed an investment agreement affirming that TSMC will make an investment to establish TSMC Nanjing Company Limited, a wholly-owned subsidiary managing a 12-inch wafer fab and a design service center. Planned capacity is 20,000 12-inch wafers per month. The facility is scheduled to commence production of 16nm process technology in the second half of 2018. The purpose is to provide closer support to customers as well as expand TSMC’s market share and business opportunities in China in step with the rapid growth of the Chinese semiconductor market over the last several years.
TSMC provides customer service through its account management and engineering services offices in North America, Europe, Japan, China, South Korea and India. The Company employed about 47,000 people at the end of 2016.
The Company is listed on the Taiwan Stock Exchange (TWSE) under ticker number 2330, and its American Depositary Shares (ADSs) are traded on the New York Stock Exchange (NYSE) under the symbol TSM.