A Global Company from Day One — TSMC Is an American Enterprise Based in Hsinchu

From the very beginning, TSMC set its sights on becoming a world-class enterprise. While headquartered in the Hsinchu Science Park in Taiwan, its corporate culture and management systems have been heavily shaped by American influences. In many ways, it could be described as “an American company based in Hsinchu.” I once had a conversation with my Japanese friend Tsuyoshi Nojima, who mentioned how highly the Japanese regard Morris Chang and how curious they are about TSMC’s remarkable success. I shared with him my view: Although TSMC is a Taiwanese company, its corporate DNA has been deeply embedded with American-style practices from day one, from institutional frameworks to management philosophy.

Morris Chang may not entirely agree with this view. In an interview, he addressed the common perception that TSMC embodies American corporate culture and that many of its top executives come from the U.S., stating instead that “70 to 80 percent of TSMC’s culture is Taiwanese.” He certainly had his reasons for saying so. Still, I believe that TSMC’s American-style culture is undeniable. It is precisely the integration of this Western foundation with Taiwan’s local talent that has created a unique and well-balanced corporate culture.

TSMC’s American-style corporate culture was established from the very first day of its founding in 1987. The company’s founder, Morris Chang, is a Chinese-American who spent 19 years at Texas Instruments (TI), eventually rising to the position of senior vice president—the third-highest ranking executive at the company. During the first decade of TSMC’s operations, Chang appointed three American industry veterans as general managers: James Dykes, Kraus Wiemer, and Donald Brooks. All three had extensive experience in the U.S. semiconductor industry. Dykes had served as general manager at Harris Semiconductor and General Instrument; Wiemer, a former colleague and subordinate of Chang at TI, later became CEO of Chartered Semiconductor in Singapore; and Brooks had been general manager at Quickturn and a vice president at TI, also having worked under Chang during their time at TI.

TSMC’s affiliate, Vanguard International Semiconductor, followed a similar model when it was established in 1994, appointing Bob Evans, a former vice president at IBM, as its first general manager. Morris Chang also served as chairman and CEO of both TSMC and Vanguard, taking direct responsibility for the strategic direction and performance of both companies.

With foreign nationals serving as general managers and Morris Chang himself more fluent in English than Chinese when he first arrived in Taiwan, TSMC naturally evolved with an American-style corporate culture. Internal communications and documentation were predominantly in English, and many management meetings were conducted in English as well. Core business practices such as performance evaluations, promotions, bonuses, and disciplinary measures all followed American corporate norms.

The corporate culture shaped organically by TSMC’s founder and general managers fostered an environment that values transparency, encourages innovation, and promotes healthy competition. These principles became the shared standard of conduct across the company. Employee promotions were based strictly on performance, not on personal connections with senior management. Notably, even before Taiwan introduced a formal system of independent directors, TSMC had already implemented such a structure—demonstrating its forward-thinking approach to corporate governance.

From the Start, TSMC Aimed to Be a Technology Leader

Beyond adopting American-style management systems, TSMC envisioned wafer foundry services as a groundbreaking business model from the very beginning—one that would transform the division of labor in the semiconductor industry. As such, the company set out to become a global enterprise and actively pursued clients worldwide. Since most major semiconductor customers at the time were based in the United States, TSMC prioritized the U.S. market in its early business development efforts.

Another example that illustrates TSMC’s ambition to surpass the world’s top chipmakers occurred in 1997, when Shang-Yi Chiang joined the company. Upon their first meeting, Morris Chang told him clearly that TSMC’s goal was to become a “technology leader.”

Chiang responded by pointing out that being a leader would be costly. At the time, TSMC had only about 120 employees—less than one-tenth the size of IBM or Intel. He tactfully suggested that if TSMC were to position itself as a “fast follower,” essentially the second-best, the required budget would be only about one-third as much.

However, Chang immediately rebuked him. Chiang later recalled, “To say something like that at our first meeting—Morris must have thought I lacked ambition.” This story clearly reflects Chang’s determination for TSMC to be a global technology leader.

Many of Taiwan’s semiconductor companies have embraced a global vision from the very start. Throughout my years of reporting, I’ve encountered numerous such stories. One of them came from a former colleague who once worked at Hewlett-Packard Taiwan. He told me that when HP’s then-general manager Ko Wen-chang paid his first visit to ASE Group, its founder, Chang Chien-sheng, declared that ASE’s goal was to become the world’s number one in semiconductor packaging, and asked HP to provide the best equipment and long-term support.

At the time, ASE was still a fledgling company, and HP’s team viewed Chang’s statement as overly ambitious—even unrealistic. But within a few years, ASE proved its determination through continuous expansion and acquisitions, eventually becoming the global leader in the packaging and testing sector.

Once TSMC sets a goal, it moves steadily in that direction without paying much attention to outside opinions. During my years as a reporter, I often felt that TSMC operated very differently from other companies. Many of my fellow journalists also observed how distinct its corporate culture was from most Taiwanese firms, shaped strongly by American influences.

For example, TSMC typically only grants interviews in public settings such as press conferences or earnings calls. Arranging a one-on-one interview with the company is extremely difficult. Even during my time at the Economic Daily News—one of Taiwan’s largest media groups—I had only a few opportunities to interview Morris Chang individually. TSMC’s spokesperson system is highly structured, and other executives are not allowed to engage privately with the media. This strict protocol has frustrated many reporters, some of whom perceive the company as aloof or arrogant.

However, TSMC has always moved at its own pace, staying laser-focused on its core business and avoiding distractions from unrelated ventures. As a result, it has little need for frequent media engagement. Like a massive, finely tuned machine operating steadily according to its blueprint, TSMC has continued along its chosen path—making its success, in many ways, unsurprising.Under American-Style Management, TSMC Still Feels Deeply “Taiwanese”

Under American-Style Management, TSMC Still Feels Deeply “Taiwanese”

Wherever people work together, office politics are inevitable—and TSMC is no exception. In its early years, internal factions included those from ITRI (Industrial Technology Research Institute) and the so-called “returnees” who had studied or worked overseas. As the number of returnees grew, further divisions emerged within that group.

Yet these internal factions never significantly hindered TSMC’s growth or operations. When a company’s culture and core values are deeply embedded, many conflicts tend to resolve themselves more easily.

In my view, the departure of Donald Brooks, TSMC’s third president and general manager, marked a pivotal moment in the company’s development.

Brooks served as general manager from 1991 to April 1997, a period when TSMC experienced its most rapid growth. During his tenure, the company’s revenue surged from NT$500 million in 1991 to NT$19.4 billion in 1996. As a seasoned semiconductor executive, Brooks played a key role in that expansion.

At the time, Brooks resigned voluntarily, intending to retire and return to the United States. But in a surprising turn of events, he soon joined TSMC’s rival, UMC, where he assumed the role of board director and president of North America—sending shockwaves through the industry.

From Texas Instruments to TSMC, Brooks and Morris Chang had worked together for over 30 years. I had heard various rumors about Brooks, but I never learned what exactly transpired between him and Chang. What’s clear is that Brooks’ defection to UMC dealt a significant blow to morale within TSMC.

After Brooks resigned, Morris Chang temporarily assumed the role of general manager himself. He later appointed Tseng Fan-cheng as TSMC’s fourth general manager, followed by Rick Tsai as the fifth. From that point on, all general managers at TSMC have been local Taiwanese executives.

Chang’s decision to promote Taiwanese talent stemmed partly from TSMC’s strong performance and the availability of capable leaders within the company. He also recognized that bringing in an outsider as a parachute executive could lead to cultural misalignment and damage employee morale.

After Tseng Fan-cheng took over as general manager, TSMC entered its second decade of growth, during which the company’s American-style culture began to blend more deeply with local Taiwanese talent. In its early years, many of TSMC’s core executives came from the Industrial Technology Research Institute (ITRI) and held graduate degrees from local universities. Over time, as more overseas returnees joined the company, the lines between the ITRI cohort and the returnee group gradually faded.

TSMC’s American-style corporate culture took firm root during its first decade. From Morris Chang’s strategic vision to the operational leadership of its first three foreign general managers, the foundation of the company was solidly established.

That said, TSMC is a company that grew out of Taiwan. The vast majority of its employees are local Taiwanese, and even today, foreign executives and staff account for only a small fraction of the workforce. At its core, TSMC remains a homegrown Taiwanese enterprise.

TSMC embodies the transparent management systems typical of American corporations, while also reflecting the diligence and work ethic often seen in Asian enterprises. It has become a strong role model for Taiwanese businesses.

When a company is rooted locally yet aspires globally, the power it can unleash is truly remarkable. This seamless blend of systems and culture serves as a valuable model for many Asian firms in countries like Japan, South Korea, and China.

Of course, TSMC’s journey hasn’t been entirely smooth. The company has faced several challenges involving senior management turnover. Former CFO Tseng Tsung-lin and general manager Donald Brooks both left the company and later joined rival UMC. Other key moments include the 2006 departure of Liang Mong-song and the 2009 dismissal of Rick Tsai.

TSMC has long been known for its decisiveness in personnel matters—a style that some view as harsh or impersonal. Yet it is through such moments of tension and conflict that the company’s distinctive corporate culture has been forged.

Morris Chang once remarked that “70 to 80 percent of TSMC’s culture is Taiwanese.” To be honest, I’m not entirely sure what he meant by that.

But here’s how I interpret it: Taiwan is a society that places great importance on emotion, relationships, and saving face—and those traits are also reflected within TSMC. Chang himself is a strong-willed leader who brought with him a management style shaped by American corporate culture, which may have been difficult for some employees to adapt to. Perhaps that’s why he still saw TSMC as deeply rooted in Taiwanese culture.