SWOT and PEST Analysis of Taiwan Semiconductor Manufacturing Company Limited (TSMC)

Table of Contents

1. Abbreviations. 2

2. Introduction. 3

3. SWOT Analysis. 3

4. PEST Analysis. 7

5. Key Takeaways. 9

6. Bibliography. 10

1. Abbreviations

·         AI – Artificial Intelligence

·         CSR – Corporate Social Responsibilities

·         IDMs – Integrated Device Manufacturers

·         IoT – Internet on the Things

·         Nm – Nanometer

·         OPEX – Operational Expenses

·         P.E.S.T – Political, Economic, Social, and Technological

·         S.W.O.T – Strengths, Weaknesses, Opportunities and Threats

·         TSMC - Taiwan Semiconductor Manufacturing Company Limited.

2. Introduction

In this essay, I shall analyse the internal and external factors of a business as well as macroeconomic factors of an industry, which are responsible for having both positive and negative impact on a company, with the help of two popular business analytical tools – SWOT and PEST analysis. I have considered a company named TSMC, which is a quintessential semiconductor IC foundry provider based in Taiwan.

3. SWOT Analysis

SWOT analysis will help in revealing the opportunities that TSMC would need to utilize in the best possible way. It will also help in identifying certain threats and weaknesses, which the company would also need to take care of by dint of its core strengths.

I N T E R N A L F A C T O R S	S T R E N G T H S	STRENGTH 1 STRENGTH 2 STRENGTH 3 STRENGTH 4	World’s Largest Semiconductor IC Foundry TSMC has its own dedicated and world’s largest semiconductor IC foundry facility (Tsmc.com, 2018). It continues to develop further in order to set up a platform for “logic IC innovation” (ibid.). Significant Customer Strength  TSMC has a very strong customer base, as it has already served 400 plus customers globally, manufacturing more than 9000 different products (ibid.). It is the major chip supplier of Apple Incorporation’s products like iPhone and iPads (Seitz, 2018). It caters to the need of manufacturers belonging to top market segments, viz. communication devices, computer and peripherals, industrial and consumer electronics (Tsmc.com, 2018). Qualcomm has recently switched from Samsung to TSMC for their chip order (Cassara, 2018). Process Innovation TSMC has primarily focused on developing process innovation through “Precise Fault Detection and Classification system, Intelligent Advanced Equipment Control and Intelligent advanced Process Control” mechanism, which will help in monitoring manufacturing process from time to time and change accurately as per the need of any situation (Tsmc.com, 2018). Wafer Fab Facilities TSMC, along with its ancillaries and joint ventures, has been managing manufacturing facilities, whose capacity was expected to cross more than 10 million of a 12-inch sized wafer in 2017 (ibid.).
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