[Semiconductor_Foundry] TSMC : Company Analysis, the Ultimate Dominator in the Foundry Jungle — The Undisputed World No.1

 



[Published Date: April 17, 2025]
TSMC: The Foundry Powerhouse Feeding Taiwan

TSMC (Taiwan Semiconductor Manufacturing Company) is a foundry company established in 1987 by Morris Chang. Since 2000, it has consistently led the development of foundry technology and remains at the forefront even today. The company is notorious for its demanding workload—employees are even required to surrender their mobile phones upon entering the workplace. Although the turnover rate was relatively high in the past, TSMC appears to be retaining talent by increasing performance-based bonuses. For instance, the turnover rate for new hires dropped from 17.6% in 2021 to 8.9% in 2023.

While TSMC employs many brilliant individuals, its work intensity is known to be significantly higher than that of Korean companies. This approach might be what enables it to consistently lead and survive in the competitive semiconductor ecosystem. In such an environment where technological companies must avoid complacency or risk being eliminated, there is growing doubt as to whether Korean semiconductor firms can truly survive.

Let’s study the detailed summary below together.

📌 Updated Overview of TSMC as of April 2025

🏢 Company History

  • Founded: 1987 by Morris Chang in Hsinchu Science Park, Taiwan

  • Key Achievements:

    • Introduced the world’s first dedicated foundry business model

    • Grew into a core partner for major fabless companies like Apple, AMD, and NVIDIA

    • Held approximately 60% global foundry market share as of 2023

💰 Engineer Salary & Benefits

  • Entry-Level Salary:
    As of 2025, a fresh master’s graduate earns an average annual salary of TWD 2.2 million (~KRW 97 million), about 3x the industry average in Taiwan.

  • Average Salary:

    • 2023: TWD 2.5 million (~KRW 110.95 million)

    • 2022: TWD 3.17 million (~KRW 132 million)

  • Salaries by Department:

    • R&D: ~USD 250,000 (KRW 330 million)

    • AI Research: ~USD 270,000 (KRW 360 million)

    • Semiconductor Process: ~USD 220,000 (KRW 290 million)

    • QA: ~USD 180,000 (KRW 240 million)

    • Automation Systems: ~USD 200,000 (KRW 260 million)

  • Employee Benefits:

    • Comprehensive health, dental, and vision insurance

    • Flexible work hours and paid leave

    • Performance bonuses, stock compensation, retirement fund matching

    • Training programs and conference support

    • ‘TSMC Baby 3.0’ policy: Up to 10 paid parental leave days per child, with infertility treatment and adoption support

🧪 Technological Capabilities

  • Advanced Node Technology:
    TSMC will begin mass production of its 2nm (N2) process in the second half of 2025. This node offers:

    • 10–15% speed gain at the same power, or

    • 25–30% power reduction at the same speed compared to N3E

  • EUV Lithography:
    TSMC owns the largest fleet of EUV (Extreme Ultraviolet) equipment globally, improving both productivity and energy efficiency in advanced process nodes.

  • AI Semiconductor Production:
    Partnering with Apple, NVIDIA, AMD, etc., TSMC has ramped up AI chip manufacturing. Over half of its total revenue now comes from AI high-performance computing (HPC) chips.

🧬 2nm Process & GAA Nanosheet Technology

  • Production Start:
    TSMC’s 2nm N2 process will enter mass production in H2 2025, offering significant improvements over the 3nm generation in performance and power efficiency.

  • Key Innovation: GAA (Gate-All-Around) Nanosheet Transistors

    • Transitioned from FinFET to GAA nanosheet structure

    • Gate wraps around a thin silicon sheet (channel), improving current control and reducing leakage

    • Vertically stacked nanosheets increase current drive

  • Performance Benefits:

    • Up to 15% speed gain at same power

    • 24–35% power saving at same performance

    • 1.15x transistor density increase, improving chip area efficiency

  • Packaging & Power Management:

    • Advanced packaging: CoWoS, InFO, SOIC

    • Enhanced power delivery via RDL (Redistribution Layers) and MIM (Metal-Insulator-Metal) capacitors

    • Reduces signal delay and improves power efficiency\


📈 TSMC Stock Performance in 2025

As of April 12, 2025, TSMC's stock price stood at $157.08, marking an increase of $5.95 (3.94%) from the previous trading day. This surge is attributed to growing demand for artificial intelligence (AI) chips, as well as robust demand for 3nm and 5nm process technologies.



       [TSMC Stock Chart: The growth is stunning—an upward trajectory all the way! ]

TSMC continues to strengthen its leadership in the global semiconductor market in 2025 through technological innovation and talent acquisition. With the commercialization of its 2nm process and increasing demand for AI semiconductors, continued growth is expected.

💹 TSMC's 2025 Revenue & Profitability by Process Technology (Latest Update)

As the world’s largest foundry company, TSMC (Taiwan Semiconductor Manufacturing Company) continues to generate massive revenue and maintain high profitability across both advanced and legacy process nodes.

In this section, we analyze TSMC’s sales distribution, profit margins, and future outlook by technology node, based on the most up-to-date data.

📊 TSMC 2025 Revenue Breakdown by Node

✅ Advanced Nodes (7nm and below)

    

  • Combined 3nm and 5nm nodes account for 60% of total revenue

  • Driven by rising demand for AI chips, high-performance computing (HPC), and premium smartphones

🧱 Legacy Nodes (16nm and above)


  • Represent around 26% of TSMC’s total revenue

  • Demand fueled by MCUs, IoT devices, and automotive semiconductors

📈 Profitability Metrics (2025)

  • Gross Margin: 59%

  • Operating Margin: 49% (an exceptionally strong operating performance)
    ➤ Advanced nodes lead in profitability due to higher ASPs and improved yields

🔍 Advanced vs. Legacy Node Strategy

⚙️ Focus on Advanced Technology

  • Aggressive investments in 2nm, 3nm, 5nm, and 7nm nodes

🏗️ Sustaining Legacy Nodes

  • Mature technologies remain a stable source of revenue, especially for IoT and automotive applications

🧩 Summary

TSMC aggressively invests in cutting-edge nodes while maintaining a balanced portfolio through steady returns from legacy technologies.

🏁 Conclusion

In 2025, TSMC dominates the foundry market with:

  • 74% of revenue from advanced nodes

  • 59% gross margin

The 3nm, 5nm, and 7nm nodes are the company’s primary growth engines, and with mass production of 2nm on the horizon, TSMC’s technology leadership is expected to strengthen further.

Moving forward, TSMC is poised to maintain its No.1 global position by continuing aggressive investments in next-gen technologies while securing stable income through mature nodes.


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