TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD (TSM)

Taiwan Semiconductor Manufacturing Company Limited (TSMC) is a dedicated semiconductor foundry. It manufactures semiconductors for customers based on proprietary integrated circuit designs those customers provide. It was founded in 1987 as a joint venture among the R.O.C. government and other private investors. Its common shares have been listed on the Taiwan Stock Exchange since 1994, and its ADSs have been listed on the NYSE since 1997. The company says its scale and capacity, particularly in advanced technologies, are a major competitive advantage. It states that it leads the dedicated foundries in net revenue from advanced semiconductors of 7-nanometer and below. Its 2-nanometer technology entered volume production in 2025, and 16-angstrom technology is expected to begin risk production in 2026.

TSMC offers a broad range of wafer fabrication processes, including CMOS logic, mixed-signal, RF, embedded memory, BiCMOS mixed-signal and MEMS. It also provides design, mask making, TSMC 3DFabric advanced silicon stacking and packaging (including SoIC, CoWoS and InFO), and testing services. It also runs a multi-project wafer program (CyberShuttle) that lets customers share mask costs, and an Open Innovation Platform of design infrastructure built with alliance partners. Net revenue is reported by platform. In 2025 total net revenue was NT$3,809,054 million, of which High Performance Computing was 58%, Smartphone 29%, Internet of Things 5%, Automotive 5%, Digital Consumer Electronics 1% and Others 2%. High Performance Computing covers AI accelerators, CPUs, GPUs, FPGAs, server processors and networking chips. The Smartphone platform includes premium and mainstream logic chips plus specialty companion chips such as RF, power management ICs, sensors and display chips.

Customers include many of the world's leading semiconductor companies, ranging from fabless companies and system companies to integrated device manufacturers. Revenue is categorized by the customer's headquarters location. In 2025 it came from North America (75%), Asia Pacific excluding China and Japan (9%), China (9%), Japan (4%) and EMEA (3%). TSMC supports customers through its Hsinchu office and subsidiaries in the United States, Canada, Japan, China, Germany, the Netherlands and South Korea. Customers generally do not place purchase orders far in advance, though some pay temporary receipts to reserve capacity at its fabs.

The principal executive office is in Hsinchu Science Park, Taiwan. TSMC operates one 150mm fab, six 200mm fabs, nine 300mm fabs and seven advanced backend fabs. They are located in Hsinchu, Central Taiwan and Southern Taiwan Science Parks, and in the United States (Washington and Arizona), Shanghai, Nanjing and Japan (Kumamoto through JASM). A fab in Dresden, Germany (through ESMC) is planned. TSMC owns the buildings and nearly all equipment in its fabs, while much of the Taiwan land is leased from science park administrations. Annual capacity exceeded 17 million 12-inch equivalent wafers in 2025. Capital expenditures were NT$1,272,411 million in 2025 and are expected to be US$52 billion to US$56 billion in 2026, funded by operating cash flow and corporate bond proceeds. R&D spending was NT$246,427 million in 2025, relying mainly on internal engineering and collaboration with customers, equipment vendors and research consortia. The text refers to competition from other foundries and integrated device manufacturers.