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TSMC

Leading semiconductor contract manufacturing company

TSMC, founded in Taiwan in 1987, is the world's largest independent semiconductor foundry. It has a significant impact on Taiwan's economy and the global semiconductor industry. TSMC serves a wide range of clients, from established companies like AMD and Apple to emerging players. The company has been at the forefront of technological advancements, being the first to market with cutting-edge production capabilities like 7-nanometre and 5-nanometre nodes, as well as EUV lithography technology.

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Timeline

Knowledge Transfer from the USA to Taiwan in Semiconductor Technology

In 1976, the Industrial Technology Research Institute (ITRI) in Taiwan signed an agreement with the Radio Corporation of America (RCA) for knowledge transfer in semiconductor technology. This contributed to the development of Taiwan's own semiconductor industry and laid the foundation for the success of TSMC.

Formation of TSMC with Government Support

In 1986, the Taiwanese government, led by Li Kwoh-ting, invited Morris Chang to lead the Industrial Technology Research Institute (ITRI) and provided substantial support to establish Taiwan Semiconductor Manufacturing Company (TSMC). The government offered significant financial backing and tax benefits, and also persuaded wealthy Taiwanese families to invest in the project.

Establishment of Taiwan Semiconductor Manufacturing Company, Ltd. (TSMC)

Taiwan Semiconductor Manufacturing Company, Ltd. (TSMC) was established on February 21, 1987, with the support of the Taiwan government and private investors. It started as an IC factory in Taiwan and has grown to become the world's largest leading semiconductor manufacturer.

Establishment of Fab 2

In 1990, TSMC established Fab 2, its first fully owned fab, further expanding its manufacturing capacity.

Breakthrough in Wafer-Processing Barrier

In 1991, TSMC was able to break the 1-micron wafer-processing barrier, replacing its six-inch, 2-micron wafer-processing fabrication.

TSMC Rated as World's Top Silicon Foundry

By 1992, TSMC was rated as the world’s top silicon foundry.

Fab 3, Taiwan’s 1st 8 inch fab

In 1993, Taiwan established its first 8 inch fab, known as Fab 3, marking a significant milestone in the country's semiconductor industry.

TSMC becomes a public company

In 1994, TSMC became a public company, marking a significant milestone in its corporate history.

Launch of Eight-Inch Wafer Fabrication Plant

In March 1995, TSMC announced the launch of an eight-inch wafer fabrication plant that cost them $1.2 billion.

Establishment of WaferTech in Washington

WaferTech was established in June 1996 as a joint venture with TSMC, Altera, Analog Devices, and ISSI as key partners. The company started production in July 1998 in its 200mm semiconductor fabrication plant.

Listing in NYSE

In 1997, TSMC achieved a significant milestone by being listed on the New York Stock Exchange (NYSE), enhancing its global visibility and investment opportunities.

Fab 12, Taiwan’s 1st 12 inch fab

In 1999, Taiwan established its first 12 inch fab, Fab 12, representing a significant advancement in semiconductor manufacturing capabilities.

Acquisition of TSMC-Acer

In January 2000, TSMC completed the acquisition of TSMC-Acer for around $90 million.

Surplus of Wafers and Reduced Demand

With an increased budget and fabrication force, TSMC entered 2001 with a surplus of wafers and less demand.

Fab 12, 12 inch fab in volume production

By 2004, Fab 12, TSMC's 12 inch fab, had commenced volume production, showcasing the company's technological prowess and manufacturing capabilities.

Chang Steps Down as CEO

In 2005, Chang stepped down as CEO, but he was reelected to the post four years later.

TSMC Contracts with Apple for A-series Chips

TSMC began receiving contracts for A-series chips by Apple used in their iPhones and iPads since 2008, marking a significant partnership in the tech industry.

TSMC announces investment in Central Taiwan Science Park

TSMC announced an investment of US$9.4 billion to build its third 300mm wafer fabrication facility in Central Taiwan Science Park (Fab 15) in 2010. The facility was expected to manufacture over 100,000 wafers a month and generate US$5 billion per year of revenue.

Fab 15, 12 inch fab in Taichung

In 2011, TSMC established Fab 15, a 12 inch fabrication facility in Taichung, Taiwan, to enhance its semiconductor manufacturing capabilities.

Financial Statements and Capacity Expansion

In 2012, TSMC's total managed capacity reached 15.1 million eight-inch equivalent wafers, and the company prepared financial statements in accordance with TIFRS.

First R&D lab Fab12 P4

In 2013, TSMC inaugurated its first research and development laboratory, Fab12 P4, to focus on innovation and technological advancements in semiconductor production.

TSMC's Collaboration with Apple

In May 2014, TSMC began trial production of A5 and A6 SoCs for Apple's iPad and iPhone devices. This collaboration with Apple continued with the sourcing of A8 and A8X SoCs from TSMC, making Apple one of TSMC's most important customers.

TSMC's Fully Booked Production Capacity

In August 2014, TSMC's production capacity for the fourth quarter of 2014 was reported to be almost fully booked, which was attributed to the ripple-effect of TSMC landing CPU orders from Apple. This scenario had not occurred for many years, indicating the significant demand for TSMC's manufacturing capabilities.

Peak in Monthly Sales for TSMC

Monthly sales for TSMC peaked in October 2014, reflecting a period of high demand. However, sales decreased by 10% in November due to cautious inventory adjustment actions taken by some customers, highlighting the fluctuating nature of the semiconductor market.

In 2017, TSMC further enhanced Fab 15 with the introduction of P5 and P6, consolidating its position as a leading semiconductor manufacturer.

Expansion into Solar Cells and LEDs

Chang retired as CEO in 2018 as TSMC began to expand into solar cells and light-emitting diodes (LEDs).

Patent Dispute with GlobalFoundries

On 26 August 2019, GlobalFoundries filed patent infringement lawsuits against TSMC, claiming that TSMC's nodes infringed their patents. However, a resolution was reached on 29 October 2019, with both companies agreeing to a life-of-patents cross-license for all existing semiconductor patents and new patents for the next 10 years.

TSMC announces planned fab in Phoenix, Arizona

In 2020, TSMC announced a planned fab in Phoenix, Arizona, intended to begin production by 2024 at a rate of 20,000 wafers per month. The facility is expected to bring TSMC's newest 5 nm process to the United States, marking a significant shift from its previous practice of limiting US fabs to older technologies.

TSMC Selected for Apple's 5 Nanometer ARM Processors

As of June 2020, TSMC was chosen as the manufacturer for Apple's 5 nanometer ARM processors, signifying the company's continued collaboration with major tech giants and its pivotal role in producing cutting-edge semiconductor components.

TSMC's Decision Regarding Huawei

In July 2020, TSMC confirmed it would halt the shipment of silicon wafers to Chinese telecommunications equipment manufacturer Huawei and its subsidiary HiSilicon, reflecting the company's response to geopolitical developments and trade restrictions.

TSMC's Investment in the US

In November 2020, officials in Phoenix, Arizona approved TSMC's plan to build a $12 billion chip plant in the city. This decision marked TSMC's strategic move to address concerns about electronics manufacturing outside of the U.S., reflecting its commitment to global operations and market access.

TSMC's $100 Billion Investment Plan

TSMC announced an investment plan of $100 billion over the next three years to meet the increasing demand for technological devices and address the shortage of chips. This investment plan reflects TSMC's significant role in the global semiconductor industry.

Self-Aligned Via Process Development

On January 5, 2022, TSMC initiated Self-Aligned Via Process Development for Beyond the 3nm Node.

DENSO Takes Minority Stake in JASM

On March 29, 2022, DENSO announced taking a minority stake in JASM.

TSMC N3 Record Setting Node

In May 2022, TSMC N3 was announced to be a record-setting node.

TSMC warns about insufficient US talent for Arizona plant

In July 2023, TSMC warned that US talent was insufficient for the Arizona plant, and Taiwanese workers will need to be brought in for a limited time. The chip factory won't be operational until 2025.

TSMC commits to factory in Dresden, Germany

In August 2023, TSMC committed 3.5 billion Euros to a 10+ billion Euro factory in Dresden, Germany, with participation of Robert Bosch GmbH, Infineon Technologies and NXP Semiconductors and a 5 billion Euro subsidy from the German government.

Leadership Reshuffle at TSMC

Chairman Mark Liu stepped down at TSMC, and CEO C.C. Wei took over the leadership.

TSMC Delays $40B Arizona Chip Factory

TSMC delayed production at the site's initial factory from 2024 to 2025, indicating the challenges and changes in its expansion plans.

Delay of TSMC Arizona Chip Factory Opening

TSMC postponed the opening of its Arizona chip factory to 2025 citing a shortage of skilled workers. This decision led to accusations from the construction union in Arizona, alleging that TSMC's motive was to cut costs by employing foreign workers.

End of the Timeline
TSMC

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