History of TSMC:

TSMC stands for Taiwan Semiconductor Manufacturing Company. TSMC, with its headquarters
and primary operations located in Hsinchu Science Park in Taiwan, is the largest independent
semiconductor foundry worldwide — making it a centerpiece in the world of fabless silicon
manufacturing.

TSMC was founded in 1987 by Morris Chang, when he was 56 years old. It started as a
collaboration between the government of Taiwan, the tech giant Philips, as well as private
investors with an interest in semiconductor technology.

The reason why Morris Chang was able to take TSMC to such unbelievable heights is because
he was willing to entertain and execute novel and innovative ideas and concepts. Dr. Chang
managed to keep TSMC ahead of its competitors, by continually investing in new silicon nodes
and by expanding its manufacturing capability throughout its existence with focus on the
highest quality levels.

Since the time the foundation of the company was still being laid down, TSMC has adhered to
and upheld its extremely valuable core values as well as mission statements with a dedicated
consistency to constantly work towards achieving their vision for the company. The core
values include integrity, commitment, innovation, as well as customer trust, factors that are
essential for the success of any major or minor organization in the transparent world of today.

As such, despite its resounding success and fame as one of the major players in the niche,
TSMC still strives to maintain the quality of service they have promised their existing and
potential customers and clients as well as continue to innovate and collaborate with other
major players the semiconductor industry.

Since it was founded, TSMC has undergone a steady but constant wave off change and
inclusion as they continue to expand the capacity of the foundry by integrating new features
into the various disciplines that they cater to. For example, the company added wafer sort
testing and mask making services as well as support for various bumping technologies.

When TSMC was established, the Taiwan government launched a major campaign to re-attract
Taiwanese with minds, experiences, and holders of advanced degrees in order to return to the
country to contribute to its construction, by offering them some privileges and temptations
that would make them agree to return and offer what they have in building their homeland,
not The homelands of others. This method is considered part of The Human Relations
Movement, which was described and explained by psychologist Abraham Maslow in a
hierarchical form.
This movement believed in the importance of employee satisfaction a satisfied worker was
believed to be a productive worker.

TSMC before, during and after

Covid-19(2019, 2020, 2021):

Covid-19 did not stop TSMC from

growing actuality it increased by
31.4%.
TSMC’s growth has outperformed the
overall semiconductor industry for all but
two years since the company’s founding.
We have been able to achieve this track
record by unleashing the innovation of
our customers. We do not compete with
our customers but support them as they
grow, and participate in their success as
they flourish. Our ability to unleash
innovation is rooted in our trinity of
strengths: Technology Leadership,
Manufacturing Excellence, and Customer
Trust.

Each component of the trinity plays a

critical part. Our Technology Leadership allows us to provide leading-edge technologies to
serve the most advanced product designs, and also enables a broad portfolio of specialty
processes offerings for a diverse spectrum of IC designers.

Our Manufacturing Excellence offers customers the fastest time-to-volume for their products
and gives us the flexible capacity to not only manufacture for the foundry segment’s largest
customer base, but also to provide more capacity when their products succeed and begin to
generate high demand. Finally, Customer Trust keeps the goals of TSMC and its customers
aligned, because we do not believe long-term success is possible if our customers do not
succeed.

Technology Leadership As a semiconductor industry leader, TSMC provides the broadest range
of advanced, specialty and advanced packaging technology services. Our technology offerings
possess the breadth of specialty technologies to suit the needs of a broad array of customers,
and our leading-edge technology development has the depth to give customers a head start in
the next wave of fast-growing product segments. We commit considerable resources to
maintain this competitive advantage in technology: In 2021, TSMC’s R&D spending totaled
approximately US$4.47 billion, or close to 8% of revenues Manufacturing Excellence TSMC
deployed 291 distinct process technologies, and manufactured 12,302 products for 535
customers in 2021, making it the world’s most diversified and largest provider of logic IC
capacity.

TSMC’s unique manufacturing system is tailored to manage the diverse manufacturing

requirements of each customer, product, and technology without compromising speed,
precision, and flexibility to adapt to changing circumstances. At the same time, our people and
systems deliver these results in the leanest and most efficient way possible to support TSMC’s
profitability.

For each new technology node, TSMC has always been the first effective capacity provider in
the foundry segment with the best yield and the fastest ramping speed, enabling customers’
early time to market. TSMC has integrated intelligence of processes, machine tuning,
manufacturing know-how, and AI technologies to create an intelligent manufacturing
environment. Intelligent manufacturing technologies are widely applied in scheduling and
dispatching, employee productivity, equipment productivity, process and equipment control,
quality defense, and robotic control in order to optimize quality, productivity, efficiency, and
flexibility, while achieving real-time information analysis, improving forecast capability,
maximizing cost effectiveness, and accelerating overall innovation.

TSMC has also integrated new applications such as intelligent mobile devices, IoT, and mobile
robots, and combined with intelligent automated material handling systems (AMHS) to
consolidate wafer manufacturing data collection and analysis, utilize manufacturing resource
efficiently, and maximize manufacturing effectiveness. TSMC continues to make
semiconductor production smarter through AI that utilizes massive amounts of production
data to achieve agile and intelligent operations. In addition, the Company has implemented
augmented reality (AR) technology to diagnose remote equipment problems, and improve
equipment installation efficiency during the pandemic period.

Even after covid-19 TSMC is still growing they published the following paragraph in
February 2024:

the factory is based on the idea of manufacturing semiconductors, while

preserving the ownership rights of semiconductor designs for the companies
themselves, meaning that companies that request semiconductors will not lose
their designs to the manufacturer, which granted... Small companies have great
confidence in ordering chips and expanding cooperation with TSML, as it
manufactures chips for technology giants such as Apple, NVidia, Intel, and
0Qualcomm.

These huge collaborations led to TSML dominating the scene, becoming number
one in its field, as its share in the global semiconductor market exceeds 50%, and
the company produces more than 10,000 products for nearly 500 customers
around the world.

The company's marketing value increased in February by $51 billion, or 7.9 percent

Driven by optimism about the future of artificial intelligence, its value became
equal to $697 billion, up from $646 billion. This increase was enough to surpass
the American company Visa, making TSMC the twelfth most valuable company in
the world.

Employee’s healthcare and safety:

The coronavirus is spreading in Taiwan after months without any cases, sparking fears that
Covid-19 will grow in a country that managed to avoid previous spikes.

Taiwan Semiconductor Manufacturing Co said that it would enact Covid-19 measures similar
to those used by companies in other countries, including operating in separate teams to
minimize the risk of whole factories becoming infected.

The world's largest contract semiconductor manufacturer said that all non-essential vendors
will be restricted from entering TSMC facilities, and that travel between its main production
sites in Hsinchu, Taichung, and Tainan was heavily restricted.

TSMC’s top priority is protecting the health and safety of our workforce while securing
operations for our customers and supporting our communities. In response, TSMC has
committed to help fighting this pandemic as a global corporate citizen.

Giving Back
Whenever a major catastrophe occurs, TSMC always looks for ways to leverage our unique
knowledge and resources to provide aid and relief, such as applying our expertise in
constructing fabs to help communities in Taiwan rebuild from disasters. Similarly, to fight this
global COVID-19 pandemic.

Customer Trust:
Customer Trust is deeply ingrained as one of TSMC’s four core values and is our keystone to
unleashing innovation.

It ensures that we win together with our customers in long-term relationships that last from
one generation of technology to another. A critical foundation stone for customer trust is a

commitment TSMC made when it first opened for business: to never compete with customers.
As a result, TSMC does not design IC products, but chooses to focus all of its resources on
serving as the trusted foundry partner for its customers.

The dedicated foundry business model gives TSMC a distinct advantage over IDM foundries
which give priority to manufacturing its own IC products over those of its customers.
Customers that work with TSMC will not need to be concerned that their products will
compete with their foundry’s products in the marketplace. Nor will they need to worry that
their capacity needs will take a back seat to the capacity needs of the IDM’s products.

TSMC’s engagement with customers begins at the earliest stages of R&D to understand their
technology needs, and continues through to design support, mask making, manufacturing, and
packaging and testing. Along the way, customers can call on the support of a dedicated
customer service team, as well as 24-hour a day, seven-day-a-week access to real-time
information through TSMC-Online, a suite of web-based applications that facilitates design,
engineering, and logistics collaboration.

From the fundamental tenets of TSMC’s business model to the fine-grained details of doing
business together, customers can be assured that TSMC is committed to winning together with
them.

Sources:

1) https://anysilicon.com/history-and-milestones-of-tsmc/

2) https://investor.tsmc.com/sites/ir/annual-report/2021/2021_Business_Overview_E.pdf

3) https://exvar.com/‫شركة‬-‫هي‬-‫ما‬-tsmc/‫تحليالت‬/#google_vignette
4) https://www.skynewsarabia.com/business/1693414-‫لـ‬-‫السوقية‬-‫بالقيمة‬-‫قفزة‬tsmc--‫بدعم‬-‫التايوانية‬
‫االصطناعي‬-‫الذكاء‬

5) https://investor.tsmc.com/sites/ir/annual-report/2020/2020_Business_Overview_E.pdf