TSMC promised never to compete with its customers. It now has 69.9% share.
In 1987 TSMC pledged to be a pure-play foundry that would never design its own chips. In 2025 it held 69.9% of the global foundry market, up from 64.4%, and in early 2026 it raised prices 5 to 10%.
Transcript
Sometimes the strongest moat is a promise about what you will never do. TSMC made one in 1987.
On February 21, 1987, TSMC was founded on one pledge: it would manufacture chips and never design its own. That removed the biggest reason a designer would refuse to outsource. It opened with $220 million in capital.
In 2025, TSMC held 69.9% of the global foundry market, up from 64.4%. Samsung, second, held 7.2%.
It brings pricing power: in early 2026, TSMC told customers of 5 to 10% price hikes on its most advanced nodes.
Every customer's design work became a reason to stay. One company does not prove neutrality always wins. But if customers fear you as a rival, ask what promise would change that.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
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