TSMC is the world’s largest contract chipmaker by revenue.
Taiwan Semiconductor Manufacturing Company, commonly abbreviated TSMC, specializes in manufacturing chips designed by other companies. This business model is called a foundry. Customers can create processor designs without owning the expensive factories and advanced production equipment needed to manufacture them.
TSMC was founded in Taiwan in 1987 by Morris Chang. Its foundry model helped reshape the semiconductor industry by separating chip design from fabrication. The company manufactures advanced processors for customers across smartphones, computers, data centers, automobiles, and artificial-intelligence systems.
TSMC is not the same as a chip designer such as Nvidia or a traditional integrated manufacturer such as Intel. Nvidia designs chips and relies on manufacturing partners, while TSMC primarily produces chips for customers. Because demand for advanced computing has grown, investors have also treated TSMC as one of the world’s most valuable public companies.