Taiwan Semiconductor Manufacturing Company, or TSMC, was founded in 1987 by Morris Chang to specialize in contract chip manufacturing.
TSMC pioneered the dedicated foundry model. Instead of designing and selling its own branded processors, it manufactures chips designed by other companies. This separation lets chip designers avoid building and operating their own expensive fabrication plants.
The company was established in Hsinchu, Taiwan, with support from the Taiwanese government and Philips. Its model became increasingly important as semiconductor designs grew more complex and factories required enormous investment. Major technology companies now rely on foundries for advanced manufacturing.
TSMC is often confused with fabless chip designers such as Nvidia or AMD. Those companies develop semiconductor designs, while TSMC primarily manufactures chips for customers. The acronym means Taiwan Semiconductor Manufacturing Company, although the shortened form TSMC is the standard name in business and technology reporting.