TSMC manufactured the first commercial 5-nanometer chips at scale.
Taiwan Semiconductor Manufacturing Company began volume production of its 5-nanometer process in 2020. The technology was used for advanced processors and system-on-chip designs, including chips made for major smartphone and computing companies. Smaller process labels generally indicate denser transistor technology, although the names are not direct measurements of every transistor dimension.
TSMC was founded in 1987 by Morris Chang in Hsinchu, Taiwan. Its key business model was the dedicated foundry: it manufactures chips designed by other companies rather than selling mainly its own branded processors. This approach enabled fabless firms to focus on architecture and design while relying on TSMC for production.
TSMC’s importance to market capitalization comes from its position in advanced semiconductor manufacturing and its customer base across mobile, computing, automotive, and artificial-intelligence markets. It is often confused with Samsung Electronics, which also operates advanced foundries and memory businesses. TSMC is the English abbreviation for Taiwan Semiconductor Manufacturing Company.