TSMC’s approach to business: wafer sharing

Latest update time：2024-02-16

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TSMC focuses on producing semiconductors according to customer design needs. This operating method is called the "TSMC Way."

This consists of two major aspects: First, TSMC distributes orders from 1,000 customers to all factories to achieve a specific efficiency level (scale of application). Secondly, TSMC uses a unique modular design when producing these orders, allowing companies to dynamically allocate production capacity to complete these orders.

In addition, TSMC has also launched "wafer sharing", a chip design verification and testing tool service, to meet customers' temporary needs. By following the TSMC Way, TSMC can meet urgent orders while adhering to solid manufacturing operating principles.

Behind this is the principle of smart manufacturing, which uses machine learning-assisted manufacturing processes to improve quality, productivity, efficiency and operational flexibility, maximize cost-effectiveness and accelerate overall innovation. Therefore, TSMC can respond to a variety of market demands and the diverse product conditions of customers around the world.

TSMC's ability to balance solid processes with the flexibility customers increasingly demand has allowed it to become the world's largest semiconductor manufacturer, playing a key role in the global supply chain with high-profile customers including Apple and AMD.

In this chapter, we will discuss the middle element of the All-in-One model: operations. This is a very important element of business strategy (see Figure 17.1). On the one hand, day-to-day operations must run smoothly and without major hindrances; on the other hand, operations must also be able to keep up with the dynamic business environment.

This important matter of operations will directly affect corporate profits, so it is very important to improve operations to improve corporate efficiency, reduce costs, and directly affect the operating profit margin in the income statement. The advantages of the entire operational process, including production, distribution, sales and services, will depend on the company's operational capabilities.

Operations may also affect productivity, that is, input and output, because strong operational capabilities can convert the same amount of resource input into higher output, assuming other companies have similar products. Operations must be designed so that everything runs seamlessly, from preparation to execution.

The focus of operations should be to utilize the company's existing resources as efficiently as possible to produce the highest quality products and support services while maintaining a certain degree of flexibility. Operational elements also serve as an intermediary between marketing (which focuses on sales above the income statement) and finance (which prioritizes net income on the income statement).

(This article is from "Kotler Talks about New Marketing" Author: Philip Kotler/Chen Zuxue/Xu Dinghuan/Jack Musley Translator: Lin Busheng)

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