What does it mean

TSMC: Who they are, what they do, and why they are so important today

If you've come across the acronym TSMC in recent days and are wondering why it's suddenly being talked about in Slovakia, the answer is simple: it is one of the most important technology companies in the world, even though most people have never seen or used it directly.

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TSMC (Taiwan Semiconductor Manufacturing Company) is a Taiwanese company that is the largest semiconductor (chip) manufacturer in the world. It was founded in 1987 and today holds a unique position:
it does not produce its own products for end customers, but exclusively manufactures chips for other companies.

This model is called the foundry model – TSMC is the "factory of the world for chips".

What exactly does TSMC do?

TSMC does not design chips, but ensures their extremely precise manufacturing. Its customers include tech giants such as:

Apple (chips for iPhones and Macs),
NVIDIA (graphics cards and AI chips),
AMD,
Qualcomm,
as well as companies in the automotive, cloud services, and artificial intelligence sectors.

Simply put:
if you use a smartphone, laptop, car, or cloud services, it is very likely that a chip manufactured by TSMC is running in them.

Why is TSMC so important?

It controls the most advanced chip manufacturing technologies
TSMC is a leader in producing the smallest and most powerful chips (3 nm, 5 nm). These technologies are crucial for:

artificial intelligence,
high-performance servers,
modern smartphones,
military and security systems.

It has an almost monopolistic position in the top segment
The most advanced chips today cannot be manufactured better or in larger volumes by anyone else. Competitors like Samsung or Intel lag behind in quality or production volume.
It is strategically important for the entire world
TSMC is one of the reasons why Taiwan is a geopolitically extremely sensitive region. The USA, Europe, and China realize that without Taiwanese chips, the global economy would slow down or stop.

Therefore, today we see:

efforts to move part of the production to the USA (Arizona),
investments in Europe,
political discussions about "chip sovereignty".

Why is TSMC being discussed even here?

Even though Slovakia does not have its own chip production, it is heavily dependent on the automotive and industrial sectors. During the COVID crisis, it became evident that disruptions in chip supplies can:

halt car production,
cause economic losses,
affect employment.

TSMC is thus indirectly connected to the economies of smaller countries – including Slovakia.

TSMC is not just a technology company. It is the infrastructure of the world.

Although the average user may not even know its name, TSMC is a silent pillar of the digital world. Without it, modern technologies, the AI boom, and global supply chains would not function.

So if TSMC appears in the news more often than before, it is no coincidence.
It is a sign that chips are as strategic today as oil or energy – and TSMC stands at their center.