TSMC is the semiconductor company founded in Taiwan in 1987 that pioneered the dedicated foundry business model.
Taiwan Semiconductor Manufacturing Company was established by Morris Chang with government support and assistance connected to Philips. Its key innovation was to manufacture chips designed by other companies without competing with those customers by selling its own branded processors.
That arrangement helped create the modern fabless semiconductor industry. Companies such as Qualcomm, Nvidia, and AMD could concentrate on chip design while outsourcing physical production to specialized foundries. TSMC invested heavily in advanced fabrication plants and process technology to serve those customers.
TSMC is often confused with Intel or Samsung because all three operate major semiconductor manufacturing businesses. TSMC’s defining distinction is its role as a neutral contract manufacturer, although it also develops the technology and infrastructure needed to produce leading-edge chips.