Case | HBS Case Collection | January 2008 (Revised June 2009)

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 in 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 June 2009.)