The rising cost of building a state-of-the-art manufacturing facility pushed companies to outsource production, while advanced technologies require a tighter coupling between design and manufacturing. Examines the development of the strategy. Environment in this Although Taiwan Semiconductor Manufacturing Co. (TSMC) began as a pure-play manufacturer, grew its position in the industry, and it had the power to exert its influence to several critical control points in the chip development …. Read more »

The rising cost of building a state-of-the-art manufacturing facility pushed companies to outsource production, while advanced technologies require a tighter coupling between design and manufacturing. Examines the development of the strategy. Environment in this Although Taiwan Semiconductor Manufacturing Co. (TSMC) began as a pure-play manufacturer, grew its position in the industry, and it had the power to exert its influence to several critical control points in the chip development. The central issue is the decision TSMC make about how to have its dependencies and interfaces with its customers and suppliers structuring technology.
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from
Marco Iansiti,
Marcin Strojwas
Source: Harvard Business School
12 pages.
Publication Date: Oct 16, 2003. Prod #: 604044-PDF-ENG
Taiwan Semiconductor Manufacturing Co.: building a platform for distributed innovation HBR case solution