TSMC became the world’s first chipmaker to reach a $1 trillion market value in 2020.
Taiwan Semiconductor Manufacturing Company was founded in 1987 by Morris Chang in Hsinchu, Taiwan. Its major innovation was the dedicated semiconductor foundry model: TSMC manufactures chips designed by other companies rather than primarily selling chips under its own consumer brand.
The company crossed the $1 trillion market-capitalization threshold in July 2020, during a period when investors placed increasing value on advanced chip manufacturing and demand for processors used in phones, computers, data centers, and other devices.
Market capitalization is the value of a company’s outstanding shares, so it changes with the stock price. It is different from annual revenue, profits, or the value of factories. TSMC is often confused with a chip designer such as Nvidia or a rival integrated manufacturer such as Intel, but its defining role is contract manufacturing for customers worldwide.