An Analysis of TSMC's Product Portfolio and Business Management Strategy

Abstract:

This paper provides an overview of the product portfolio of Taiwan Semiconductor Manufacturing Company (TSMC) and discusses the general strategies for managing 'Star' and 'Problem Child' businesses.


Introduction:

TSMC, a leading semiconductor manufacturing company based in Taiwan, offers a diverse portfolio of specialty technologies. These technologies are tailored to specific customer needs and cover a wide range of applications, including mobile devices, automotive electronics, medical systems, wearables, and the Internet of Things (IoT).


Product Portfolio:

TSMC's product portfolio includes comprehensive specialty technologies such as Micro-Electro-Mechanical Systems (MEMS), Complementary Metal-Oxide-Semiconductor (CMOS) image sensors, embedded Non-Volatile Memory (NVM), Radio Frequency (RF), analog, high voltage, and Bipolar-CMOS-DMOS (BCD)-Power processes. TSMC has also announced its technology roadmap up to 2025, which includes the transition from FinFET to Gate-All-Around (GAA) nanosheet structures in the 2nm process.


Business Management Strategy:

In terms of business management, companies often use Product Portfolio Management (PPM) analysis. This method classifies a company's businesses, products, and services on a coordinate system defined by two axes: market growth rate and market share. The 'Star' businesses are those with both high market growth rate and market share, requiring aggressive investment due to intense competition. On the other hand, 'Problem Child' businesses have a high market growth rate but a low market share. If the market share of these businesses can be increased, they have the potential to become 'Star' businesses in the future.


Conclusion:

While the specifics of how TSMC positions and manages its 'Star' and 'Problem Child' businesses are not publicly disclosed, it is common for companies to invest the profits from 'Star' businesses into 'Problem Child' businesses. This strategy nurtures 'Problem Child' businesses into 'Star' businesses, enabling a company to achieve sustainable growth.

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