Taiwan Semiconductor Manufacturing Co.: The Semiconductor Services Company Harvard Case Solution & Analysis

Established in 1987, Taiwan Semiconductor Manufacturing Co (TSMC) was the world's first pure foundry focused solely on the production of semiconductors. Work in a cyclical semiconductor market, the company managed to grow rapidly and become the eighth largest semiconductor manufacturer in the world with over 50% market share in the foundry business. In the early days of the company, TSMC management is focused on manufacturing excellence and technology leadership. As competition in the sector has intensified in the late 1990s, the company began to focus on customer service to differentiate itself further from companies such as UMC, its nearest neighbor and closest competitor, and rapidly growing Chinese foundries. The company has invested heavily in the development of innovative value-added services and proprietary information systems that will promote better communication and improve customer service, the introduction of e-commerce applications, such as enterprise and eFoundry supply chain management suites. TSMC management believed that customers generally, American IC houses facing high financial stakes, rapid technological innovation, short product life cycle, and the intense competition, chose to cast a business partner based on quality, reliability and reputation, as opposed to price alone. Excellent customer service can make an impact in the capital-intensive processes and the quality of the industry, such as the semiconductor industry, or TSMC will have to compete on price? Explores these issues, and other factors affecting the strategic path TSMC, as it moves forward in the mid-2000s. "Hide
by Hau Lee, Seungjin Whang, Shiri Shneorson Source: Stanford Graduate School of Business 27 pages. Publication Date: May 02, 2006. Prod. #: GS40-PDF-ENG

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Taiwan Semiconductor Manufacturing Co.: The Semiconductor Services Company

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