TSMC is the world’s largest contract chipmaker and one of its most valuable companies by market capitalization.
Taiwan Semiconductor Manufacturing Company was founded in 1987 by Morris Chang in Hsinchu, Taiwan. Its business model separated chip design from chip fabrication: customers could design processors while TSMC manufactured them in advanced factories.
This “pure-play foundry” model helped companies such as Nvidia, Apple, and AMD develop advanced chips without owning comparable manufacturing networks. TSMC has remained especially important as semiconductor designs have become more complex and expensive to produce.
The company’s market value reflects its manufacturing technology, customer relationships, scale, and role in supplying chips for smartphones, computers, cars, and AI systems. TSMC is not the same as a chip designer: it primarily manufactures designs created by other companies.