On Jan. 18, The Postech Times had the privilege of exploring the TSMC Museum of Innovation in Taiwan, uncovering the remarkable story behind one of the semiconductor industry’s most influential players. Renowned for its groundbreaking business model, TSMC stands as a beacon of innovation, reshaping traditional paradigms and propelling the industry forward. In a landscape once dominated by Integrated Device Manufacturers (IDMs), where companies controlled every aspect, from chip design to production, TSMC introduced a revolutionary concept which decoupled chip design from fabrication. Tasked by the Taiwanese government with spearheading a new era of semiconductor development, Dr. Morris Chang recognized Taiwan's strengths in manufacturing excellence and has forged the path for the first dedicated foundry company, TSMC.

  At the core of TSMC lies two mottos; “We do not compete with our customers” and “We lower the bars to innovation”. Firstly, unlike traditional IDMs, TSMC abstains from chip design, fostering an environment where its clients can thrive without fear of internal competition. Secondly, by providing access to cutting-edge fabrication plants, TSMC empowers startups and establishes players to bring their visions to life. Industry titans such as NVIDIA and Qualcomm now rely on TSMC to realize their semiconductor ambitions.

  The tech industry is already known for its fast-paced, highly competitive landscape, and the semiconductor industry is no exception, as different chip giants are competing to produce smaller, faster, and more efficient chips. Unlike GlobalFoundries and Samsung, both major players in the semiconductor industry, TSMC does not do business off of chip design and remains committed solely to chip manufacturing. This way TSMC avoids potential conflict of interest, an awkward situation where a customer also becomes a competitor.

  As artificial intelligence continues to evolve and expand into various sectors, including automotive, consumer electronics, and cloud computing, TSMC is playing a pivotal role in meeting the burgeoning demand for AI chips. The company’s ability to produce chips with smaller transistors allows for greater performance and energy efficiency, which is crucial for powering the complex algorithms and vast data processing requirements of AI technologies. This demand for AI chips has not only fueled TSMC’s growth but also pushed the semiconductor industry into a new era of technological innovation and competition.

  During the tour inside the museum, The Postech Times asked a couple of questions to the company’s spokesperson about the ways in which TSMC is fighting to remain at the top of the pyramid. The answer was not only in groundbreaking innovation, but pragmatic management; expanding the boundary of the foundry business. For one, TSMC is working with semiconductor design software giants such as Cadence and Synopsys to help companies design chips specifically for the TSMC factory, supporting the design process for its customers. Also, for IP providers, who only design certain parts of the chip, licensing the rest of the parts can be complicated. TSMC makes this process easier by providing supporting services. Not only design, but packaging specialized to the chips is another supporting business that TSMC provides. In short, by embracing new ventures without straying from its core identity as a foundry, TSMC continues to shape the future of semiconductor innovation.