Case | HBS Case Collection | October 2003

Taiwan Semiconductor Manufacturing Company: Building a Platform for Distributed Innovation

by Marco Iansiti and Marcin Strojwas

Abstract

Surging costs of building a state-of-the-art fabrication facility were pushing firms to outsource manufacturing while advanced technologies were requiring a tighter coupling between design and manufacturing. Explores the development of strategy in this environment. Although Taiwan Semiconductor Manufacturing Co. (TSMC) began as a pure-play manufacturer, its position in the industry grew, and it had the power to wield influence over several critical control points in the chip development process. The central issue is the decision TSMC must make regarding how to structure its dependencies and interfaces with its customers and technology suppliers.

Keywords: Strategy; Business Model; Networks; Product Design; Production; Decisions; Customer Relationship Management; Supply Chain Management;

Citation:

Iansiti, Marco, and Marcin Strojwas. "Taiwan Semiconductor Manufacturing Company: Building a Platform for Distributed Innovation." Harvard Business School Case 604-044, October 2003.