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Question 1 TSMC basic product is microchips TSMC is the major provider of custom chips for PC Besides TSMC also provide design services For dealing with the competitors in the market TSMC can arrange connections with designers to help put together a chip design that meets the customers needs and fits with TSMC production system TSMC has more process engineers assigned to a given module than those other companies To be more competitive TSMC also design different types of chip to target on different type of consumers Besides the deal provides concrete evidence that TSMC is truly on a par with the worlds best manufacturers and may mark a turning point for the company in that it now will be making money not just on selling wafers but on selling intellectual property related to its process technology To date only Texas Instruments Inc and IBM and to a lesser extent Infineon have been able to do that TSMC was able to do this by bringing together a brain trust of process technologists They have recruited a very sizable talent base from very reputable companies from their country and from around the world They have an elite staff of development scientists people from IBM and Hewlett-Packard and elsewhere TSMC is running far ahead of the SIA Semiconductor Industry Association roadmap with the exception of a couple of IDMs maybe Intel or IBM They are ahead of everybody else Question 2 TSMC use a planning system to produce their product to meet customer demand The company keeps observe the market and keep improve their product to meet their customer needs They even invest in new technology and new capacity They will only produce products according to the customer demand TSMC produces different types of chips to target on different type of market Latest the company broke ground on a new 12-inch wafer fab in Taiwan and announced plans to get another 8-inch wafer
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