TSMC was founded in 1987 as a joint venture involving Taiwan’s government and Philips.
Taiwan Semiconductor Manufacturing Company pioneered the dedicated semiconductor foundry model. Instead of designing and selling its own branded chips as its main business, TSMC manufactures chips designed by other companies. This allowed customers to remain focused on chip architecture while relying on a specialist manufacturer for production.
The model became increasingly important as semiconductor designs grew more complex and manufacturing plants became extraordinarily expensive. TSMC produces chips for customers across smartphones, computers, communications, vehicles, and artificial-intelligence systems. Its advanced manufacturing capacity helped make it one of the world’s most valuable companies by market capitalization.
TSMC is often confused with a chip designer such as Nvidia. Nvidia designs many of the processors associated with AI computing, while TSMC manufactures chips for customers including Nvidia. Taiwan’s strategic role in advanced semiconductor production also means TSMC is discussed in economic and geopolitical contexts far beyond ordinary company rankings.