TSMC created the first dedicated semiconductor foundry in 1987.
Taiwan Semiconductor Manufacturing Company was founded in Hsinchu, Taiwan, by Morris Chang with government and private-sector support. Its business model was unusual at the time: TSMC manufactured chips designed by other companies instead of competing with customers by selling its own branded processors.
That model helped create the modern fabless semiconductor industry. Companies could design chips while outsourcing the expensive construction and operation of fabrication plants. TSMC has since produced chips for major technology firms, including processors and graphics chips designed by companies such as Apple, AMD, and Nvidia.
“Foundry” means a manufacturer that fabricates semiconductor wafers for external clients. It does not mean TSMC invented every chip architecture it produces. TSMC’s importance comes from manufacturing expertise, process technology, and enormous production capacity.