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Center for Global Business and the Economy

 

Cases: Global Case Collection

Supply Chain Management

Taiwan Semiconductor Manufacturing Company

Founded in 1987, Taiwan Semiconductor Manufacturing Company (TSMC) was the 8th largest semiconductor manufacturer with more than 50 percent market share in the foundry business.

As competition intensified in the late 1990s, the company invested heavily in the development of innovative, value-added services and proprietary information systems to differentiate itself, putting in place eCommerce applications such as eFoundry and Enterprise Supply Chain Management suites. TSMC management believed that customers, typically U.S. based integrated circuit (IC) design houses facing high financial stakes, rapid technological innovations, short product life cycles, and intensive competition, would choose a foundry business partner based on quality, trustworthiness, and reputation, as opposed to price only.

The case explores this focus as well as other factors affecting TSMC's strategic path as it moves forward in the mid-2000s.


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