TSMC is becoming the global chipmaker it didn’t aspire to be
From humble roots in Taiwan, the tech giant is on track to have factories across the globe
A LITTLE over three years ago, Taiwan Semiconductor Manufacturing Co (TSMC) was among the world’s most geographically concentrated technology giants, with almost the entirety of its capacity within a 483-kilometre radius. Now, it is on the verge of becoming one of the most globally diversified chipmakers. This was not the plan.
A new facility near Dresden, Germany is set to begin operations in 2027, the Hsinchu-based company said on Tuesday (Aug 8). Coupled with current plans, TSMC will have factories in five countries spread over three continents, rivalling the sprawl of rivals Intel Corp and Samsung Electronics Co. These overseas plants add to the significant operations it has in Taiwan and two existing sites in China. (For more than 25 years it has also owned a fab near Portland, which though profitable is small and not seen as a company success story.)
Having all its manufacturing close to home has always been an advantage for the made-to-order chip foundry. The tight relationship between research and development, and factory operations, where engineers can easily shuffle between production lines, helped TSMC become a fast-moving supplier in a high-stakes industry. Dotting the world with fabs risked diluting this advantage.
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