Pure-play foundry taps into the growth of smart devices

Established in 1987, TSMC is a pure-play semiconductor foundry (manufacturer) and a pioneer of the model which separates semiconductor chip designs (produced by fabless companies) from the fabrication or manufacturing process (outsourced to a foundry). It has become the world’s largest dedicated contract chip manufacturer, with more than 58.5% global market share (as of Q4 2022). With its commitment to ongoing research and development, TSMC chips are the most technologically advanced amongst peers; and growth has remained strong due to its strategy of partnering with its customers instead of competing with them.

Over the past 30 years, as the fabrication process became more complicated and capital intensive, fabless chip companies (e.g. Nvidia) and system companies (e.g. Apple) have increasingly recognised the benefits of outsourcing the chip manufacturing to semiconductor foundries like TSMC. As the leader in its field, we believe TSMC should continue to gain market share from traditional integrated design and manufacturing chip companies.