Case | HBS Case Collection | January 2008 (Revised October 2015)

Taiwan Semiconductor Manufacturing Company Limited: A Global Company's China Strategy

by William C. Kirby, Michael Shih-Ta Chen and Keith Wong

Abstract

After fifty-five years in the semiconductor industry, Morris Chang, founder and Chairman of Taiwan Semiconductor Manufacturing Company (TSMC), was seeing a change. After four decades of regular double-digit growth the industry was still growing-but now at a much slower pace. In 2004, TSMC entered the China market, the world's second largest for semiconductors, by building a fabrication plant in Shanghai. Was China the market opportunity which TSMC could bet on for expansion, or should its strategy be to focus on new product development and innovation?

Keywords: Investment; Globalized Firms and Management; Market Entry and Exit; Business and Government Relations; Expansion; Semiconductor Industry; Shanghai; Taiwan;

Citation:

Kirby, William C., Michael Shih-Ta Chen, and Keith Wong. "Taiwan Semiconductor Manufacturing Company Limited: A Global Company's China Strategy." Harvard Business School Case 308-057, January 2008. (Revised October 2015.)