What are the key strategies and rivalries between TSMC and UMC in Taiwan's semiconductor industry?

Answered on : 2024-01-24

Sources

UMC & TSMC semiconductor rivalry in Taiwan

medium.com

1

UMC: Taiwan's Other Semiconductor Giant - by Jon Y

asianometry.com

2

[Insights] In-Depth Analysis of TSMC, PSMC, and UMC's ...

trendforce.com

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TSMC (Taiwan Semiconductor Manufacturing Company) and UMC (United Microelectronics Corporation) are semiconductor giants based in Taiwan with different strategies and a long-standing rivalry:

1. **Rivalry:** The rivalry between TSMC and UMC dates back to disputes over the independent foundry model's origin, with accusations of idea theft. This rivalry has persisted over the years [1].

2. **Market Expansion:** UMC has been more willing to enter new markets as part of its strategy, seeking opportunities globally [2].

3. **Overseas Expansion:** Both companies have been involved in overseas expansion strategies to tap into global markets [3].

4. **Competition:** TSMC's specialization in custom wafer manufacturing for chip designers has set it apart from UMC and disrupted the semiconductor market [8].

5. **Government Support:** The Taiwanese government played a strategic role in creating both TSMC and UMC through state investment funds [5].

6. **Global Market Share:** As of 2023, TSMC commanded a significant 56.4% of the global market share in contracted semiconductor manufacturing [7].

7. **Diversification:** Experts suggest Taiwan should broaden TSMC's geographic scope and semiconductor industry operations to ensure economic diversification [9].

Both companies have contributed significantly to Taiwan's semiconductor industry and continue to shape its future with their distinct strategies and competition [10].

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