TSMC R&D expenditure 2018-2023

In 2022 Taiwan Semiconductor Manufacturing Company (TSMC) spent over 163 billion New Taiwan dollars on research and development. As a global semiconductor market leader, TSMC has been a crucial supplier to many huge consumer electronics corporations like Apple.

Advantage through segmentation

TSMC is a foundry and therefore only focuses on the production of semiconductors. The supply chain of integrated circuits is segmented into different production steps. So-called fabless companies design the chip layout and manage the sales process. They contract foundries, which only operate in the manufacturing part of the supply chain. The advantage for TSMC as a foundry is that the company can focus its research and development efforts on the improvement of the manufacturing process and the capabilities of the components.

Supplying the world

TSMC is the largest semiconductor manufacturer in the world’s largest semiconductor-producing region. While most fabless companies are located in the United States, Taiwan accounts for the largest share of semiconductor foundry revenue worldwide. TSMC is not only the largest foundry in Taiwan, but also globally as the company generates over half of the global foundry revenue.