TSMC operates the largest contract chip-manufacturing business and has its headquarters in Hsinchu, Taiwan.
TSMC, formally Taiwan Semiconductor Manufacturing Company, was established in 1987 by Morris Chang with government and private-sector support. Its key innovation was separating chip design from chip fabrication on an industrial scale.
A contract manufacturer, or foundry, produces integrated circuits designed by other companies. TSMC’s customers have included leading firms such as Apple, Nvidia, AMD, and Qualcomm. This role makes TSMC different from integrated device manufacturers that both design and manufacture their own branded chips.
TSMC’s importance extends beyond its market capitalization. Its advanced production facilities supply processors used in smartphones, servers, personal computers, automobiles, and artificial-intelligence systems. Because semiconductor fabrication is highly concentrated, disruptions affecting Taiwan can have worldwide consequences.