TSMC Fosters Innovation Through Active Collaboration with Partners

The second annual ARC Industrial Digital Transformation Top 25 report continues to highlight companies that are succeeding at integrating digital technology into all areas of business, fundamentally changing the way they operate and deliver value to customers. ARC developed a rigorous process based on financial performance, a community intelligence based ranking system, and software and sustainability data. Leading companies take a strategic approach, integrating digital technology throughout their value chains. Taiwan Semiconductor Manufacturing (TSMC) fosters innovation through active collaboration with partners and it ranks #18 in this report.

Digital transformation is a whole new way of transacting businesses, supporting customers, leveraging the available services, and adapting to a volatile and fiercely competitive marketplace. The digital transformation journey has its share of challenges for both suppliers and end users. Technology is only part of the equation. People, capability, willingness, process simplification, and adopting a multidisciplinary approach are also required. Transforming to an organization where constant change and adjustment define normal operations is still very conceptual for some industrial companies. Each company is at a different stage of digital maturity, so there is no “one-size-fits-all” approach. Digital transformation leaders can be found across many different industries, sharing common traits and visions, helping them overcome complex challenges to innovate and stay agile. The companies mentioned in this report not only have their transformation initiatives well underway, but they also have their eye to the future tackling the next set of challenges on their journey.

This is the eighteenth in a series of blogs in the digital transformation space.

Taiwan Semiconductor Manufacturing

TSMC is the largest, most technologically advanced, independent semiconductor foundries in the world. The company has implemented various digital tools and systems to automate and optimize its manufacturing processes, such as using machine learning algorithms to predict and prevent equipment failures and using data analytics to improve production yields. These measures have helped TSMC to improve its operational efficiency and reduce costs. Another area where the company has invested in digital transformation is in its supply chain by implementing digital tools to improve visibility and transparency. With the advent of Big Data, TSMC gradually shifted toward information-oriented innovation and revamped its decision-making process based on the idea that “everyone is a decision-maker” in a bid to improve its response time and the quality of strategic decisions. It also established an IC design ecosystem ranging from “virtual fabrication” to “open innovation” platforms. Just as the acceleration in digital transformation has made semiconductors more pervasive and essential in people’s lives, it has also brought a focus on internal innovation in the semiconductor industry. TSMC has fostered innovation through active collaboration with partners collaborating, developing and optimizing across process technology, electronic design automation (EDA), IP and design methodology. The company also scores high on social governance and is continually improving its emissions and resource use as part of environmental efforts.

Going Forward

Digital transformation has emerged as the fulcrum of business operations. This year’s Top 25 companies include many who made the list last year, together with some new companies and reshuffling of positions. ARC will continue its research in all areas related to digital transformation and analyze the outcomes. The ARC Industrial Digital Transformation Top 25 report will be published annually. With this being our second year, your feedback is very important to us as we will continue to investigate new approaches and measures to adjust our methodology, identify successful digital transformation initiatives, and help the industry as a whole digitally transform. Let’s travel together!

Learn more about ARC’s Digital Transformation Council

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