TSMC - BCG Matrix Analysis | Updated 2024

BCG Matrix for TSMC

TSMC Business Model Analysis

Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest and most advanced semiconductor foundry. The company operates on a pure-play foundry business model, meaning it focuses solely on manufacturing semiconductors for other companies without designing its own chips. This model allows TSMC to serve a diverse range of customers, including major technology firms such as Apple, AMD, Nvidia, and Qualcomm.

TSMC's product portfolio includes a variety of semiconductor technologies, ranging from mature nodes to cutting-edge processes. These products ...

BOSTON CONSULTING GROUP (BCG) MATRIX
Question Mark
Star
Dog
Cash Cow
7
7nm Process Technology
5
5nm Process Technology
3
3nm Process Technology
2
28nm Process Technology
L
Legacy Nodes (40nm and above)
MARKET GROWTH
RELATIVE MARKET SHARE (low to high)

Analysis

Product Positioning and Justification

7nm Process Technology

The 7nm process technology is classified as a 'Cash Cow.' TSMC has a dominant market share in this segment due to its early adoption and widespread use in high-performance computing and mobile applications. However, the growth rate is slowing as the industry transitions to more advanced nodes like 5nm and 3nm. Despite this, the 7nm technology continues to generate substantial revenue for TSMC.

5nm Process Technology

The 5nm process technology is classified as a 'Star.' TSMC holds a significant market share, driven by ...

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