Editing TSMC (section)

== History ==
In 1986, [[Li Kwoh-ting]], representing the [[Executive Yuan]], invited Morris Chang to serve as the president of the [[Industrial Technology Research Institute]] (ITRI) and offered him a blank check to build Taiwan's chip industry. At that time, the Taiwanese government wanted to develop its semiconductor industry, but its high investment and high risk nature made it difficult to find investors. [[Texas Instruments]] and [[Intel]] turned down Chang. Only [[Philips]] was willing to sign a joint venture contract with Taiwan to put up $58&nbsp;million, transfer its production technology, and license intellectual property in exchange for a 27.5 percent stake in TSMC. Alongside generous tax benefits, the Taiwanese government, through the National Development Fund, Executive Yuan, provided another 48 percent of the startup capital for TSMC, and the rest of the capital was raised from several of the island's wealthiest families, who owned firms that specialized in plastics, textiles, and chemicals. These wealthy Taiwanese were directly "asked" by the government to invest. From day one, TSMC was not really a private business: it was a project of the Taiwanese state.<ref>{{cite book |last1=Miller |first1=Chris |title=Chip War: The Fight for the World's Most Critical Technology |date=2022 |publisher=[[Charles Scribner's Sons|Scribner]] |isbn=978-1982172008 |page=167 |url=https://books.google.com/books?id=JxpdEAAAQBAJ&pg=PA167 |access-date=16 July 2023}}</ref><ref>{{cite news |title=猶太人與台積電的奇特淵源 |url=https://www.upmedia.mg/news_info.php?Type=2&SerialNo=106657 |access-date=30 January 2023 |work=[[Up Media]] |date=16 February 2021 |language=zh-tw |archive-date=30 January 2023 |archive-url=https://web.archive.org/web/20230130153324/https://www.upmedia.mg/news_info.php?Type=2&SerialNo=106657 |url-status=live }}</ref><ref>{{cite news |title=與飛利浦數度交手 |url=https://www.cw.com.tw/article/5107898 |access-date=30 January 2023 |agency=[[CommonWealth Magazine (Taiwan)|CommonWealth Magazine]] |date=1 April 1997 |language=zh-tw |archive-date=14 March 2023 |archive-url=https://web.archive.org/web/20230314101653/https://www.cw.com.tw/article/5107898 |url-status=live }}</ref> Its first CEO was James E. Dykes, who left after a year and Morris Chang became the CEO.<ref>{{Cite web |last=Nenni |first=Daniel |date=26 November 2023 |title=Taiwan Semiconductor Outlook May 1988 |url=https://semiwiki.com/semiconductor-manufacturers/304631-taiwan-semiconductor-outlook-may-1988/ |access-date=2023-11-25 |website=Semiwiki |archive-date=25 November 2023 |archive-url=https://web.archive.org/web/20231125080607/https://semiwiki.com/semiconductor-manufacturers/304631-taiwan-semiconductor-outlook-may-1988/ |url-status=live }}</ref> Although Philips initially held a 27.5% stake in TSMC, its influence extended beyond financial investment. In addition to capital, Philips played a crucial role by transferring semiconductor manufacturing technology, intellectual property, and patents to TSMC, enabling the company to scale more rapidly. Philips also provided TSMC’s first CEO, James E. Dykes, who had previously worked at Philips North America. This partnership represented an early example of the “fab-light” strategy, as Philips gradually reduced its in-house semiconductor manufacturing and relied more on external foundries like TSMC. Over the following decades, Philips steadily divested its stake in TSMC and shifted its primary focus to healthcare technology. <ref>{{cite web |title=The Silicon Empire: TSMC’s Revolution and Morris Chang’s Legacy |url=https://quartr.com/insights/company-research/the-silicon-empire-tsmcs-revolution-and-morris-changs-legacy |website=Quartr |access-date=March 30, 2025}}</ref>

Since then, the company has continued to grow, albeit subject to the cycles of demand. In 2011, the company planned to increase research and development expenditures by almost 39 percent to [[New Taiwan dollar|NT$]]50&nbsp;billion to fend off growing competition.<ref>{{cite news|url=http://www.taipeitimes.com/News/biz/archives/2010/12/21/2003491466|title=TSMC plans to increase research spending|publisher=Taipei Times|first=Lisa|last=Wang|date=21 December 2010|access-date=20 December 2010|archive-date=24 March 2019|archive-url=https://web.archive.org/web/20190324195607/http://www.taipeitimes.com/News/biz/archives/2010/12/21/2003491466|url-status=live}}</ref> The company also planned to expand capacity by 30 percent in 2011 to meet strong market demand.<ref>{{cite news|url=http://www.chinaknowledge.com/Newswires/News_Detail.aspx?type=1&cat=CMP&NewsID=%2039307|title=TSMC to expand capacity by 30% in 2011|publisher=China Knowledge|date=8 December 2010|access-date=20 December 2010|archive-date=8 July 2011|archive-url=https://web.archive.org/web/20110708145524/http://www.chinaknowledge.com/Newswires/News_Detail.aspx?type=1&cat=CMP&NewsID=%2039307|url-status=live}}</ref> In May 2014, TSMC's board of directors approved capital appropriations of US$568&nbsp;million to increase and improve manufacturing capabilities after the company forecast higher than expected demand.<ref name="Q2 2014 forecast">{{cite news |url=http://www.taipeitimes.com/News/biz/archives/2014/04/18/2003588265 |title=TSMC forecasts 22 percent Q2 growth |publisher=Taipei Times |date=18 April 2014 |access-date=18 May 2014 |archive-date=22 May 2014 |archive-url=https://web.archive.org/web/20140522183351/http://www.taipeitimes.com/News/biz/archives/2014/04/18/2003588265 |url-status=live }}</ref> In August 2014, TSMC's board of directors approved additional capital appropriations of US$3.05&nbsp;billion.<ref>{{cite web |date=12 August 2014 |title=TSMC Board of Directors Meeting Resolutions |url=https://pr.tsmc.com/english/news/1820 |publisher=TSMC |access-date=17 April 2021 |archive-date=16 December 2021 |archive-url=https://web.archive.org/web/20211216003616/https://pr.tsmc.com/english/news/1820 |url-status=live }}</ref>

In 2011, it was reported that TSMC had begun trial production of the [[Apple A5|A5]] SoC and [[Apple A6|A6]] SoCs for Apple's [[iPad]] and [[iPhone]] devices.<ref>{{cite web |date=12 August 2011 |title=TSMC Kicks Off A6 Processor Trial Production with Apple |url=http://cens.com/cens/html/en/news/news_inner_37282.html |url-status=live |archive-url=https://web.archive.org/web/20110927000244/http://cens.com/cens/html/en/news/news_inner_37282.html |archive-date=27 September 2011 |access-date=13 September 2011 |publisher=Chinese Economic News Service}}</ref><ref>{{cite web |last=Velazco |first=Chris |date=12 August 2011 |title=TSMC Beginning Production Of Apple's New A6 Processor |url=https://techcrunch.com/2011/08/12/tsmc-beginning-production-of-apples-new-a6-processor/ |publisher=TechCrunch |access-date=25 June 2017 |archive-date=23 September 2017 |archive-url=https://web.archive.org/web/20170923002524/https://techcrunch.com/2011/08/12/tsmc-beginning-production-of-apples-new-a6-processor/ |url-status=live }}</ref> According to reports,<ref>{{cite web |last=Oliver |first=Sam |date=10 July 2014 |title=Apple begins receiving shipments of A-series processors from TSMC – report |url=http://appleinsider.com/articles/14/07/10/apple-begins-receiving-shipments-of-a-series-processors-from-tsmc---report |access-date=2 November 2014 |publisher=AppleInsider |archive-date=2 November 2014 |archive-url=https://web.archive.org/web/20141102142327/http://appleinsider.com/articles/14/07/10/apple-begins-receiving-shipments-of-a-series-processors-from-tsmc---report |url-status=live }}</ref> in May 2014 Apple sourced its [[Apple A8|A8]] and [[Apple A8X|A8X]] SoCs from TSMC.<ref name="TechNews Apple A8 article">{{cite web |date=17 February 2014 |title=TSMC to Snatch All of Apple's A8 chip Orders? |work=TechNews |url=http://technews.co/2014/02/17/tsmc-to-snatch-all-of-apples-a8-chip-orders/ |archive-url=https://web.archive.org/web/20190324195602/http://technews.co/2014/02/17/tsmc-to-snatch-all-of-apples-a8-chip-orders/ |archive-date=24 March 2019 |access-date=18 May 2014 }}</ref><ref name="CNET 64-bit processor article">{{cite web |last=Crothers |first=Brooke |date=17 April 2014 |title=Apple driving move to 64-bit mobile processors, TSMC says |url=http://www.cnet.com/news/apple-driving-move-to-64-bit-mobile-processors-says-tsmc/ |access-date=23 May 2014 |publisher=CNET |archive-date=21 May 2014 |archive-url=https://web.archive.org/web/20140521205649/http://www.cnet.com/news/apple-driving-move-to-64-bit-mobile-processors-says-tsmc/ |url-status=live }}</ref> Apple then sourced the [[Apple A9|A9]] SoC with both TSMC and Samsung (to increase volume for [[iPhone 6S]] launch) and the [[Apple A9X|A9X]] exclusively with TSMC, thus resolving the issue of sourcing a chip in two different [[microarchitecture]] sizes. As of 2014, Apple was TSMC's most important customer.<ref name="CNET 64-bit processor article" /><ref name="Taipei Times Apple article">{{Cite news |date=15 April 2014 |title=Apple chips to be 20% of TSMC sales |work=Taipei Times |url=http://www.taipeitimes.com/News/biz/archives/2014/04/15/2003588037 |access-date=18 May 2014 |archive-date=22 December 2017 |archive-url=https://web.archive.org/web/20171222105135/http://www.taipeitimes.com/News/biz/archives/2014/04/15/2003588037 |url-status=live }}</ref> In October 2014, [[ARM Holdings|ARM]] and TSMC announced a new multi-year agreement for the development of ARM based 10&nbsp;nm [[Multigate device#FinFET|FinFET]] processors.<ref>{{cite web |last=Collins |first=Mark |date=8 October 2014 |title=ARM Partnered With TSMC For 10nm FinFET Processors |url=http://gsminsider.com/2014/10/arm-partnered-tsmc-10nm-finfet-processors/ |url-status=dead |archive-url=https://web.archive.org/web/20141013181149/http://gsminsider.com/2014/10/arm-partnered-tsmc-10nm-finfet-processors/ |archive-date=13 October 2014 |publisher=GSM Insider }}</ref>

Over the objection of the [[Presidency of Tsai Ing-wen|Tsai Ing-wen administration]], in March 2017, TSMC invested US$3 billion in [[Nanjing]] to develop a manufacturing subsidiary there.<ref>{{Cite book |last=Xin |first=Qiang |title=The Taiwan Question in Xi Jinping's Era: Beijing's Evolving Taiwan Policy and Taiwan's Internal and External Dynamics |publisher=[[Routledge]] |year=2024 |isbn=9781032861661 |editor-last=Zhao |editor-first=Suisheng |editor-link=Suisheng Zhao |location=London and New York |pages= |chapter=Selective Engagement: Mainland China's Dual-Track Taiwan Policy |doi=}}</ref>{{Rp|page=74}}

In 2020, TSMC became the first semiconductor company in the world to sign up for the [[The Climate Group|RE100]] initiative, pledging to use 100 percent [[renewable energy]] by 2050.<ref>{{cite news|title=TSMC Leads Rush for Renewables Ahead of Taiwan Energy Vote|url=https://www.bloomberg.com/news/articles/2021-12-08/tsmc-leads-rush-for-renewables-ahead-of-taiwan-energy-vote|access-date=2021-12-19|newspaper=Bloomberg.com|date=8 December 2021|archive-date=7 February 2022|archive-url=https://web.archive.org/web/20220207173304/https://www.bloomberg.com/news/articles/2021-12-08/tsmc-leads-rush-for-renewables-ahead-of-taiwan-energy-vote|url-status=live}}</ref> TSMC accounts for roughly 5 percent of the energy consumption in Taiwan, even exceeding that of the capital city Taipei. This initiative was thus expected to accelerate the transformation to renewable energy in the country.<ref>{{cite web|date=17 July 2020|title=TSMC's push toward green energy|website=Taipei Times|url=https://www.taipeitimes.com/News/editorials/archives/2020/07/17/2003740051|access-date=2021-12-19|author-first1=Alynne|author-last1=Tsai|archive-date=19 December 2021|archive-url=https://web.archive.org/web/20211219172953/https://www.taipeitimes.com/News/editorials/archives/2020/07/17/2003740051|url-status=live}}</ref> For 2020, TSMC had a net income of US$17.60&nbsp;billion on a consolidated revenue of US$45.51&nbsp;billion, an increase of 57.5 percent and 31.4 percent respectively from the 2019 level of US$11.18&nbsp;billion net income and US$34.63&nbsp;billion consolidated revenue.<ref>{{cite web |title=Annual Reports |url=https://investor.tsmc.com/english/annual-reports |access-date=2021-05-01 |website=TSMC |archive-date=20 April 2021 |archive-url=https://web.archive.org/web/20210420043720/https://investor.tsmc.com/english/annual-reports |url-status=live }}</ref> Its [[market capitalization]]  was over $550&nbsp;billion in April 2021. TSMC's revenue in the first quarter of 2020 reached US$10&nbsp;billion,<ref>{{cite web | last=Lee | first=Yimou | title=TSMC Q1 profit almost doubles but trims full-year revenue estimate on pandemic | website=U.S. | date=16 April 2020 | url=https://www.reuters.com/article/us-tsmc-results-idUSKCN21Y0IN | access-date=15 May 2020 | archive-date=17 May 2020 | archive-url=https://web.archive.org/web/20200517023902/https://www.reuters.com/article/us-tsmc-results-idUSKCN21Y0IN | url-status=live }}</ref> while its market capitalization was US$254&nbsp;billion.<ref name="TSM-YahooFinance">{{cite web |title=Taiwan Semiconductor Manufacturer (TSM) Stock Price, Quote, History & News – Yahoo Finance |url=https://finance.yahoo.com/quote/TSM |access-date=15 May 2020 |publisher=Finance.yahoo.com |archive-date=28 May 2020 |archive-url=https://web.archive.org/web/20200528213313/https://finance.yahoo.com/quote/TSM/ |url-status=live }}</ref> TSMC's market capitalization reached a value of NT$1.9&nbsp;trillion (US$63.4&nbsp;billion) in December 2010.<ref>{{cite news|url=http://business.asiaone.com/Business/News/Story/A1Story20101221-253866.html|title=Market capitalization of TSMC reaches a historic high: CEO|publisher=AsiaOne Business|date=21 December 2010|access-date=20 December 2010|archive-url=https://web.archive.org/web/20110728182630/http://business.asiaone.com/Business/News/Story/A1Story20101221-253866.html|archive-date=28 July 2011|url-status=dead}}</ref> It was ranked 70th in the [[FT Global 500]] 2013 list of the world's most highly valued companies with a capitalization of US$86.7&nbsp;billion,<ref>{{cite news|url=http://www.ft.com/intl/indepth/ft500 |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/intl/indepth/ft500 |archive-date=10 December 2022 |url-access=subscription |title=FT 500 2013 |newspaper=Financial Times |access-date=18 May 2014}}</ref> while reaching US$110&nbsp;billion in May 2014.<ref name="TSM-YahooFinance" /> In March 2017, TSMC's market capitalization surpassed that of semiconductor giant [[Intel]] for the first time, hitting NT$5.14&nbsp;trillion (US$168.4&nbsp;billion), with Intel's at US$165.7&nbsp;billion.<ref>{{Cite news|url=https://www.bloomberg.com/gadfly/articles/2017-03-22/chipzilla-intel-toppled-by-taiwan-s-supplier-to-the-stars|title=Chipzilla Got Toppled|last=Culpan|first=Tim|date=22 March 2017|work=Bloomberg Gadfly|access-date=22 March 2017|archive-date=22 March 2017|archive-url=https://web.archive.org/web/20170322071356/https://www.bloomberg.com/gadfly/articles/2017-03-22/chipzilla-intel-toppled-by-taiwan-s-supplier-to-the-stars|url-status=live}}</ref> On 27 June 2020, TSMC briefly became the world's 10th most valuable company, with a market capitalization of US$410&nbsp;billion.<ref>{{Cite news |last=Wu |first=Debby |date=28 July 2020 |title=TSMC Pares Gains After $72 Billion Surge to Start the Week |work=Bloomberg |url=https://www.bloomberg.com/news/articles/2020-07-28/tsmc-among-world-s-top-10-biggest-stocks-after-72-billion-surge |access-date=17 April 2021 |archive-date=17 April 2021 |archive-url=https://web.archive.org/web/20210417120954/https://www.bloomberg.com/news/articles/2020-07-28/tsmc-among-world-s-top-10-biggest-stocks-after-72-billion-surge |url-status=live }}</ref>

To mitigate business risks in the event of war between Taiwan and the People's Republic of China, since the beginning of the 2020s, TSMC has expanded its geographic operations, opening new fabs in Japan and the United States, with further plans for expansion into Germany.<ref>{{cite web |date=21 February 2022 |title=China War Risk Sees Taiwan's TSMC Moving Fabs to US, Japan |url=https://www.asiafinancial.com/china-risk-sees-taiwans-tsmc-moving-chip-fabs-overseas |website=Asia Financial |access-date=27 May 2022 |archive-date=19 May 2022 |archive-url=https://web.archive.org/web/20220519212156/https://www.asiafinancial.com/china-risk-sees-taiwans-tsmc-moving-chip-fabs-overseas |url-status=live }}</ref> In July 2020, TSMC confirmed it would halt the shipment of silicon wafers to Chinese telecommunications equipment manufacturer [[Huawei]] and its subsidiary [[HiSilicon]] by 14 September.<ref>{{cite web |title=TSMC plans to halt chip supplies to Huawei in 2 months |url=https://asia.nikkei.com/Spotlight/Huawei-crackdown/TSMC-plans-to-halt-chip-supplies-to-Huawei-in-2-months |access-date=2020-08-09 |website=Nikkei Asian Review |archive-date=8 August 2020 |archive-url=https://web.archive.org/web/20200808203753/https://asia.nikkei.com/Spotlight/Huawei-crackdown/TSMC-plans-to-halt-chip-supplies-to-Huawei-in-2-months |url-status=live }}</ref><ref>{{cite web |last=Frumusanu |first=Andrei |title=TSMC Confirms Halt to Huawei Shipments In September |url=https://www.anandtech.com/show/15915/tsmc-confirms-halt-to-huawei-shipments-in-september |access-date=2020-08-09 |website=www.anandtech.com |archive-date=8 August 2020 |archive-url=https://web.archive.org/web/20200808183636/http://www4.anandtech.com/show/15915/tsmc-confirms-halt-to-huawei-shipments-in-september |url-status=live }}</ref> In November 2020, officials in [[Phoenix, Arizona]] in the United States approved TSMC's plan to build a $12&nbsp;billion chip plant in the city. The decision to locate a plant in the US came after the [[First presidency of Donald Trump|Trump administration]] warned about the issues concerning the world's electronics made outside of the U.S.<ref>{{Cite news |last1=Wu |first1=Debby |last2=King |first2=Ian |date=19 November 2020 |title=TSMC Wins Approval From Phoenix for $12 Billion Chip Plant |work=Bloomberg |url=https://www.bloomberg.com/news/articles/2020-11-19/tsmc-wins-approval-from-phoenix-for-12-billion-chip-plant |access-date=2 March 2021 |archive-date=27 February 2021 |archive-url=https://web.archive.org/web/20210227092258/https://www.bloomberg.com/news/articles/2020-11-19/tsmc-wins-approval-from-phoenix-for-12-billion-chip-plant |url-status=live }}</ref> In 2021, news reports claimed that the facility might be tripled to roughly a $35&nbsp;billion investment with six factories.<ref>{{Cite news |last=Vanek |first=Corina |date=2 March 2021 |title=Taiwan Semiconductor's Phoenix plant likely three times larger than originally announced |work=Phoenix Business Journal |url=https://www.bizjournals.com/phoenix/news/2021/03/02/taiwan-semiconductor-phoenix-plant-35-billion.html |access-date=2021-05-01 |archive-date=14 May 2021 |archive-url=https://web.archive.org/web/20210514174609/https://www.bizjournals.com/phoenix/news/2021/03/02/taiwan-semiconductor-phoenix-plant-35-billion.html |url-status=live }}</ref> See {{Slink|2=Arizona}} for more details.

In June 2021, following nearly a year of public controversy surrounding its [[COVID-19 vaccination in Taiwan#Timeline|COVID-19 vaccine shortage]],<ref name=Reuters/><ref>{{cite news |last1=Blanchard |first1=Ben |title=Pressure to accept China vaccines intensifies as Taiwan battles COVID surge |url=https://www.reuters.com/world/asia-pacific/pressure-accept-china-vaccines-intensifies-taiwan-battles-covid-surge-2021-05-24/ |access-date=12 July 2021 |work=Reuters |date=24 May 2021 |archive-date=12 July 2021 |archive-url=https://web.archive.org/web/20210712152303/https://www.reuters.com/world/asia-pacific/pressure-accept-china-vaccines-intensifies-taiwan-battles-covid-surge-2021-05-24/ |url-status=live }}</ref><ref name=FinTimes/><ref>{{cite news |last1=Zhong |first1=Raymond |title=Taiwan Wants German Vaccines. China May Be Standing in Its Way. |url=https://www.nytimes.com/2021/06/16/business/taiwan-china-biontech-vaccine.html |access-date=12 July 2021 |work=The New York Times |date=16 June 2021 |archive-date=12 July 2021 |archive-url=https://web.archive.org/web/20210712152619/https://www.nytimes.com/2021/06/16/business/taiwan-china-biontech-vaccine.html |url-status=live }}</ref> with only about 10 percent of its 23.5&nbsp;million population vaccinated;<ref name=Reuters/> Taiwan agreed to allow TSMC and [[Foxconn]] to jointly negotiate purchasing [[COVID-19 vaccine]]s on its behalf.<ref name=FinTimes>{{cite news |last1=Hille |first1=Kathrin |title=TSMC and Foxconn join forces to secure vaccines for Taiwan |url=https://www.ft.com/content/a5b8cf73-0d46-4ed8-a75f-69902b8a951c |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/a5b8cf73-0d46-4ed8-a75f-69902b8a951c |archive-date=10 December 2022 |url-access=subscription |access-date=12 July 2021 |work=Financial Times |date=11 July 2012}}</ref><ref name=Reuters>{{cite news |last1=Blanchard |first1=Ben |title=Taiwan finally getting BioNTech COVID vaccines in $350 mln deal |url=https://www.reuters.com/world/asia-pacific/taiwans-foxconn-tsmc-confirm-350-mln-covid-19-vaccine-deal-2021-07-11/ |access-date=12 July 2021 |work=Reuters |date=12 July 2021 |archive-date=12 July 2021 |archive-url=https://web.archive.org/web/20210712001324/https://www.reuters.com/world/asia-pacific/taiwans-foxconn-tsmc-confirm-350-mln-covid-19-vaccine-deal-2021-07-11/ |url-status=live }}</ref> In July 2021, [[BioNTech]]'s Chinese sales agent [[Fosun Pharma]] announced that the two technology manufacturers had reached an agreement to purchase 10 million [[Pfizer–BioNTech COVID-19 vaccine|BioNTech COVID-19 vaccine]]s from Germany.<ref name=FinTimes/><ref name=Reuters/> TSMC and Foxconn pledged to each buy five million doses for up to $175&nbsp;million,<ref name=FinTimes/> for donation to Taiwan's vaccination program.<ref name=Reuters/>

Due to the [[2020–2022 global chip shortage|2020–2023 global semiconductor shortage]], Taiwanese competitor [[United Microelectronics Corporation|United Microelectronics]] raised prices approximately 7–9 percent, and prices for TSMC's more mature processors were raised by about 20 percent.<ref>{{cite news |last=Chang |first=Eric |url=https://www.taiwannews.com.tw/en/news/4276997 |title=Taiwan's TSMC increases chip prices by up to 20% amid global shortage |work=Taiwan News |date=26 August 2021 |access-date=2021-08-29 |archive-date=29 August 2021 |archive-url=https://web.archive.org/web/20210829211905/https://www.taiwannews.com.tw/en/news/4276997 |url-status=live }}</ref> In November 2021, TSMC and [[Sony]] announced that TSMC would be establishing a new subsidiary named [[Japan Advanced Semiconductor Manufacturing]] (JASM) in [[Kumamoto]], Japan. The subsidiary manufactures 22- and 28-nanometer processes. The initial investment was approximately $7&nbsp;billion, with Sony investing approximately $500&nbsp;million for a less than 20 percent stake. Construction of the fabrication plant started in 2022, with production beginning two years later in 2024.<ref>{{Cite web |date=2024-02-24 |title=TSMC Celebrates the Opening of JASM in Kumamoto, Japan |url=https://pr.tsmc.com/english/news/3113 |access-date=2025-02-11 |website=Taiwan Semiconductor Manufacturing Company Limited}}</ref>

In February 2022, TSMC, Sony Semiconductor Solutions, and [[Denso]] announced that Denso would take a more than 10 percent equity stake in JASM with a US$0.35&nbsp;billion investment, amid a scarcity of chips for automobiles.<ref name="TaipeiTimes20220216">{{Cite web |date=16 February 2022 |title=Denso to take stake in TSMC venture |url=https://www.taipeitimes.com/News/biz/archives/2022/02/16/2003773182 |access-date=2023-01-22 |website=Taipei Times |archive-date=22 January 2023 |archive-url=https://web.archive.org/web/20230122171524/https://www.taipeitimes.com/News/biz/archives/2022/02/16/2003773182 |url-status=live }}</ref><ref name="PressRelease20220215">{{Cite web |date=15 February 2022 |title=DENSO to Take Minority Stake in JASM |url=https://pr.tsmc.com/english/news/2911 |access-date=2023-01-23 |website=TSMC}}</ref><ref name="USNews20220215">{{Cite web |date=15 February 2022 |title=TSMC to Expand New Japan Chip Factory, Denso Takes Stake |url=https://www.usnews.com/news/technology/articles/2022-02-15/japans-denso-to-invest-in-tsmc-chip-factory-in-japan |access-date=2023-01-23 |website=U.S. News & World Report |archive-date=22 January 2023 |archive-url=https://web.archive.org/web/20230122171525/https://www.usnews.com/news/technology/articles/2022-02-15/japans-denso-to-invest-in-tsmc-chip-factory-in-japan |url-status=live }}</ref> TSMC will also enhance JASM's capabilities with 12/16 nanometer FinFET process technology in addition to the previously announced 22/28 nanometer process and increase monthly production capacity from 45,000 to 55,000 12-inch wafers.<ref name="TaipeiTimes20220216" /><ref name="PressRelease20220215" /><ref name="USNews20220215" /> The total capital expenditure for JASM's Kumamoto fab is estimated to be approximately US$8.6&nbsp;billion.<ref name="TaipeiTimes20220216" /><ref name="PressRelease20220215" /><ref name="USNews20220215" /> The Japanese government wants JASM to supply essential chips to Japan's electronic device makers and auto companies as trade friction between the United States and China threatens to disrupt [[supply chain]]s.<ref name="TaipeiTimes20220216" /><ref name="PressRelease20220215" /><ref name="USNews20220215" /> The fab is expected to directly create about 1,700 high-tech professional jobs.<ref name="TaipeiTimes20220216" /><ref name="PressRelease20220215" />

In July 2022, TSMC announced the company had posted a record profit in the second quarter, with net income up 76.4 percent year-over-year. The company saw steady growth in the automotive and data center sectors with some weakness in the consumer market. Some of the [[capital expenditures]] are projected to be pushed up to 2023.<ref>{{cite news |last=Kharpal |first=Arjun |url=https://www.cnbc.com/2022/07/14/tsmc-q2-2022-chipmaker-posts-record-profit-and-strong-guidance.html |title=World's largest chipmaker TSMC posts record profit allaying fears over semiconductor headwinds |work=[[CNBC]] |date=14 July 2022 |access-date=2022-07-14 |archive-date=14 July 2022 |archive-url=https://web.archive.org/web/20220714201049/https://www.cnbc.com/2022/07/14/tsmc-q2-2022-chipmaker-posts-record-profit-and-strong-guidance.html |url-status=live }}</ref> In the third quarter of 2022, [[Berkshire Hathaway]] disclosed purchase of 60 million shares in TSMC, acquiring a $4.1&nbsp;billion stake, making it one of its largest holdings in a technology company.<ref>{{cite web |url=https://www.ft.com/content/6d4bb1f4-270a-46bd-8069-81148b636647 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/6d4bb1f4-270a-46bd-8069-81148b636647 |archive-date=10 December 2022 |title=Warren Buffett's Berkshire Hathaway buys $4bn stake in chipmaker TSMC |date=15 November 2022 |last=Platt |first=Eric |work=[[Financial Times]] |url-access=limited}}</ref> However, Berkshire sold off 86.2 percent of its stake by the next quarter citing geopolitical tensions as a factor.<ref>{{cite news |last1=Mandl |first1=Carolina |last2=S |first2=Sittarasu |date=14 February 2023 |title=Berkshire dumps shares in TSMC, banks; increases Apple stake |url=https://www.reuters.com/business/buffetts-berkshire-reduces-stake-activision-blizzard-2023-02-14/ |publisher=Reuters |access-date=16 February 2023 |archive-date=16 February 2023 |archive-url=https://web.archive.org/web/20230216040016/https://www.reuters.com/business/buffetts-berkshire-reduces-stake-activision-blizzard-2023-02-14/ |url-status=live }}</ref><ref>{{cite news |last=Stempel |first=Jonathan |date=11 April 2023 |title=Buffett says geopolitics a factor in Berkshire sale of TSMC stake |url=https://www.reuters.com/technology/buffett-says-geopolitics-factor-berkshire-sale-tsmc-stake-2023-04-11/ |publisher=Reuters |access-date=12 April 2023 |archive-date=12 April 2023 |archive-url=https://web.archive.org/web/20230412042234/https://www.reuters.com/technology/buffett-says-geopolitics-factor-berkshire-sale-tsmc-stake-2023-04-11/ |url-status=live }}</ref> In February 2024, TSMC [[Share (finance)|share]]s hit a record high, with the high on the trading day reaching [[NT$]]709 and closing at NT$697 (+8%). This was influenced by the increase in the price target on chip designer [[Nvidia]]. TSMC currently manufactures [[3 nm process|3-nanometer chips]] and plans to start [[2 nm process|2-nanometer]] mass production in 2025.<ref>{{Cite web|url=https://www.cnbc.com/2024/02/15/tsmc-shares-hit-record-high-after-morgan-stanley-upgrades-nvidia.html|title=TSMC shares hit record high after Morgan Stanley lifts client Nvidia's price target on AI chip demand|website=CNBC|date=15 February 2024 |access-date=2024-02-25|archive-date=2024-02-23|archive-url=https://web.archive.org/web/20240223063328/https://www.cnbc.com/2024/02/15/tsmc-shares-hit-record-high-after-morgan-stanley-upgrades-nvidia.html}}</ref> It is included in the [[FTSE4Good Index]], being the only Asian company in the top ten.<ref>{{Cite web |url=https://research.ftserussell.com/Analytics/FactSheets/Home/DownloadSingleIssue?issueName=F4GTESG&isManual=False |title=Archived copy |access-date=3 June 2024 |archive-date=3 June 2024 |archive-url=https://web.archive.org/web/20240603145552/https://research.ftserussell.com/Analytics/FactSheets/Home/DownloadSingleIssue?issueName=F4GTESG&isManual=False |url-status=live }}</ref>

In October 2024, TSMC informed the [[United States Department of Commerce]] about a potential breach of [[export control]]s in which one of its most advanced chips was sent to Huawei via another company with ties to the Chinese government.<ref>{{Cite web |last1=Chen |first1=Eliot |last2=Berman |first2=Noah |date=2024-10-31 |title=TSMC's Huawei Headache |url=https://www.thewirechina.com/2024/10/31/tsmcs-huawei-headache-xiamen-sophgo-bitmain-sophon-tsmc/ |access-date=2024-11-03 |website=[[The Wire China]]}}</ref><ref>{{Cite web |date=2024-10-24 |title=TSMC notifies US about use of its chip by Huawei |url=https://www.taipeitimes.com/News/front/archives/2024/10/24/2003825780 |access-date=2024-10-23 |website=[[Taipei Times]]}}</ref><ref>{{Cite news |last=Alper |first=Alexandra |date=October 23, 2024 |title=US lawmaker demands answers on TSMC chip in Huawei device |url=https://www.reuters.com/technology/us-lawmaker-demands-answers-tsmc-chip-huawei-device-2024-10-23/ |access-date=October 23, 2024 |work=[[Reuters]]}}</ref>

=== Patent dispute with GlobalFoundries ===
On 26 August 2019, [[GlobalFoundries]] filed several patent infringement lawsuits against TSMC in the US and Germany claiming that TSMC's 7&nbsp;nm, 10&nbsp;nm, 12&nbsp;nm, 16&nbsp;nm, and 28&nbsp;nm nodes infringed 16 of their patents.<ref>{{cite web |date=26 August 2019 |title=GLOBALFOUNDRIES Files Patent Infringement Lawsuits Against TSMC In the U.S. and Germany |url=https://www.globalfoundries.com/press-release/globalfoundries-files-patent-infringement-lawsuits-against-tsmc-us-and-germany |website=GlobalFoundries |access-date=17 April 2021 |archive-date=17 April 2021 |archive-url=https://web.archive.org/web/20210417120955/https://www.globalfoundries.com/press-release/globalfoundries-files-patent-infringement-lawsuits-against-tsmc-us-and-germany |url-status=live }}</ref> GlobalFoundries named twenty defendants.<ref>{{cite web |date=25 August 2019 |title=GLOBALFOUNDRIES v. TSMC et al Media Fact Sheet |url=https://www.globalfoundries.com/sites/default/files/media_fact_sheet.pdf |website=GlobalFoundries |access-date=28 August 2019 |archive-date=28 August 2019 |archive-url=https://web.archive.org/web/20190828062714/https://www.globalfoundries.com/sites/default/files/media_fact_sheet.pdf |url-status=live }}</ref> TSMC said that they were confident that the allegations were baseless.<ref>{{cite web |date=27 August 2017 |title=TSMC Will Vigorously Defend its Proprietary Technology in Response to GlobalFoundries Complaints |url=https://www.tsmc.com/tsmcdotcom/PRListingNewsAction.do?action=detail&language=E&newsid=THPGSTTHTH |access-date=28 August 2019 |website=TSMC |archive-date=27 August 2019 |archive-url=https://web.archive.org/web/20190827210152/https://www.tsmc.com/tsmcdotcom/PRListingNewsAction.do?action=detail&language=E&newsid=THPGSTTHTH |url-status=live }}</ref> On 1 October 2019, TSMC filed [[patent infringement]] lawsuits against GlobalFoundries in the US, Germany and Singapore, claiming that GlobalFoundries' 12&nbsp;nm, 14&nbsp;nm, 22&nbsp;nm, 28&nbsp;nm and 40&nbsp;nm nodes infringed 25 of their patents.<ref>{{cite web |date=1 October 2019 |title=TSMC Files Complaints Against GlobalFoundries in U.S., Germany and Singapore for Infringement of 25 Patents to Affirm its Technology Leadership and to Protect Its Customers and Consumers Worldwide |url=https://www.tsmc.com/tsmcdotcom/PRListingNewsAction.do?action=detail&newsid=THGOSTTHTH |access-date=2 October 2019 |website=TSMC |archive-date=2 October 2019 |archive-url=https://web.archive.org/web/20191002040547/https://www.tsmc.com/tsmcdotcom/PRListingNewsAction.do%3Faction%3Ddetail%26newsid%3DTHGOSTTHTH |url-status=live }}</ref> On 29 October 2019, TSMC and GlobalFoundries announced a resolution to the dispute, agreeing to a [[Term of patent|life-of-patents]] [[cross-license]] for all of their existing semiconductor patents and new patents for the next 10 years.<ref>{{cite web |date=29 October 2019 |title=TSMC and GLOBALFOUNDRIES Announce Resolution of Global Disputes Through Broad Global Patent Cross-License |url=https://www.tsmc.com/tsmcdotcom/PRListingNewsAction.do?action=detail&language=E&newsid=THHKHIPGTH |access-date=29 October 2019 |website=TSMC |archive-date=29 October 2019 |archive-url=https://web.archive.org/web/20191029014342/https://www.tsmc.com/tsmcdotcom/PRListingNewsAction.do%3Faction%3Ddetail%26language%3DE%26newsid%3DTHHKHIPGTH |url-status=live }}</ref><ref>{{cite web |date=28 October 2019 |title=GLOBALFOUNDRIES and TSMC Announce Resolution of Global Disputes Through Broad Global Patent Cross-License |url=https://www.globalfoundries.com/press-release/globalfoundries-and-tsmc-announce-resolution-global-disputes-through-broad-global |access-date=30 October 2019 |website=GlobalFoundries |archive-date=22 January 2021 |archive-url=https://web.archive.org/web/20210122162629/https://www.globalfoundries.com/press-release/globalfoundries-and-tsmc-announce-resolution-global-disputes-through-broad-global |url-status=live }}</ref><ref>{{Cite news |last=McGregor |first=Jim |date=11 September 2019 |title=Globalfoundries Files Suit Against TSMC – The Outcome Could Have Broad Consequences |work=Forbes |url=https://www.forbes.com/sites/tiriasresearch/2019/09/11/globalfoundries-files-suit-against-tsmc--the-outcome-could-have-broad-consequences/ |access-date=19 December 2019 |archive-date=19 December 2019 |archive-url=https://web.archive.org/web/20191219072516/https://www.forbes.com/sites/tiriasresearch/2019/09/11/globalfoundries-files-suit-against-tsmc--the-outcome-could-have-broad-consequences/ |url-status=live }}</ref><ref>{{Cite news |date=1 October 2019 |title=TSMC counter-sues US chip rival GlobalFoundries for patent infringement |work=Reuters |url=https://www.reuters.com/article/db-tsmc-globalfoundries-lawsuit-test-idUSKBN1WG3B5 |access-date=19 December 2019 |archive-date=19 December 2019 |archive-url=https://web.archive.org/web/20191219072514/https://www.reuters.com/article/db-tsmc-globalfoundries-lawsuit-test-idUSKBN1WG3B5 |url-status=live }}</ref><ref>{{Cite news |last=Kwan |first=Campbell |date=2 October 2019 |title=TSMC accuses GlobalFoundries of infringing 25 patents for node processes |work=ZDNet |url=https://www.zdnet.com/article/tsmc-accuses-globalfoundries-of-infringing-25-patents-for-node-processes/ |access-date=4 April 2020 |archive-date=9 March 2020 |archive-url=https://web.archive.org/web/20200309222209/https://www.zdnet.com/article/tsmc-accuses-globalfoundries-of-infringing-25-patents-for-node-processes/ |url-status=live }}</ref>