Subject category:
Production and Operations Management
Published by:
Harvard Business Publishing
Version: 16 October 2003
Length: 12 pages
Data source: Field research
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Abstract
Surging costs of building a state-of-the-art fabrication facility were pushing firms to outsource manufacturing while advanced technologies were requiring a tighter coupling between design and manufacturing. Explores the development of strategy in this environment. Although Taiwan Semiconductor Manufacturing Co (TSMC) began as a pure-play manufacturer, its position in the industry grew and it had the power to wield influence over several critical control points in the chip development process. The central issue is the decision TSMC must make regarding how to structure its dependencies and interfaces with its customers and technology suppliers.
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Abstract
Surging costs of building a state-of-the-art fabrication facility were pushing firms to outsource manufacturing while advanced technologies were requiring a tighter coupling between design and manufacturing. Explores the development of strategy in this environment. Although Taiwan Semiconductor Manufacturing Co (TSMC) began as a pure-play manufacturer, its position in the industry grew and it had the power to wield influence over several critical control points in the chip development process. The central issue is the decision TSMC must make regarding how to structure its dependencies and interfaces with its customers and technology suppliers.