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TSMC History: How Taiwan Semiconductor Became a Chip Giant

TSMC became a global chip powerhouse by manufacturing chips for other companies and never competing with them. Founded by Morris Chang on 21 February 1987, it…

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FOUNDED

Morris Chang founds TSMC

A pure-play foundry: make chips designed by customers and never sell chips of its own. Backed by Taiwan's government and Philips, with a 6-inch fab leased from ITRI.

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GOING PUBLIC

Taipei, then New York

Listings in Taipei and New York gave TSMC access to capital. It was the first Taiwan company on the NYSE.

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FIRST U.S. FAB

WaferTech

No. WaferTech, a joint venture with Altera, ADI and ISSI set up in 1995-96, was TSMC's first American plant.

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COPPER

First foundry copper process

TSMC became the first pure-play foundry to formally offer a commercial 0.18-micron copper process in December 1999.

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300MM

First full-scale 12-inch fab

In October 2001 it became the world's first full-scale 300mm fab producing 0.13-micron chips with production-worthy yields.

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COMEBACK

Morris Chang returns as CEO

He took back the CEO job and raised capital spending into the downturn, a bet that paid off at 40nm and 28nm.

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PACKAGING

CoWoS arrives

Chip-on-Wafer-on-Substrate joins dies and memory on a silicon interposer. A niche in 2012, it is now at the heart of AI accelerators.

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APPLE

Apple's A8

TSMC made Apple's A8 in 2014 and became its sole A-series supplier from the A10 in 2016.

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THE LEAD

7nm, and Chang retires

Around the 7nm generation in 2018. Morris Chang retired that June; Mark Liu became chairman and C.C. Wei CEO.

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GEOPOLITICS

5nm, Arizona, Huawei

5nm went into volume production, TSMC announced Arizona, and U.S. rules cut off Huawei from 15 September.

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3NM

3nm volume production

TSMC marked 3nm volume production at Fab 18 in Tainan on 29 December 2022, weeks after raising its Arizona plan to US$40B.

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2NM

Nanosheets arrive

N2, TSMC's first nanosheet-transistor process, entered volume production in the fourth quarter of 2025. A16 and A14 follow.

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US$265B

Arizona grows again

TSMC added US$100 billion on 16 July 2026, taking Arizona to US$265 billion: 10 fabs, 2 packaging plants and R&D.

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RECORD

120,000 2nm wafers a month

Reports say TSMC will reach about 120,000 2nm wafers a month by end-2026 as customers raise orders. August revenue rose 53% year on year.

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