Editing Foundry model (section)

===Dedicated foundry===
In 1987, the world's first dedicated merchant foundry opened its doors: [[TSMC|Taiwan Semiconductor Manufacturing Company (TSMC)]].<ref name="HirakawaLal2013">{{cite book|author1=Hitoshi Hirakawa|author2=Kaushalesh Lal|author3=Shinkai Naoko|title=Servitization, IT-ization and Innovation Models: Two-stage Industrial Cluster Theory|url=https://books.google.com/books?id=QkNXCLjxJsoC&pg=PA34|year=2013|publisher=Routledge|isbn=978-0-415-63945-3|pages=34–}}</ref> The distinction of 'dedicated' is in reference to the typical merchant foundry of the era, whose primary business activity was building and selling of its own [[Integrated circuit|IC]]-products. The dedicated foundry offers several key advantages to its customers: first, it does not sell finished IC-products into the [[supply (economics)|supply]] channel; thus a dedicated foundry will never compete directly with its fabless customers (obviating a common concern of fabless companies). Second, the dedicated foundry can scale production capacity to a customer's needs, offering low-quantity [[Multi-project wafer service|shuttle]] services in addition to full-scale [[Mass production|production]] lines. Finally, the dedicated foundry offers a "COT-flow" (customer owned tooling) based on industry-standard [[Electronic design automation|EDA]] systems, whereas many IDM merchants required its customers to use proprietary (non-portable) development tools. The COT advantage gave the customer complete control over the design process, from concept to final design.