Information-oriented Innovation at Taiwan Semiconductor Manufacturing

ARC has been tracking the digital transformation initiatives of companies by conducting surveys and analyses for the last 5-7 years. All this information has been collated and the Top 25 global industrial digital transformation leaders, across multiple industries and geographies, have been identified. ARC’s Industrial Digital Transformation Top 25 report highlights companies that are successfully integrating digital technology into all areas of business, fundamentally changing the way they operate and deliver value to their customers. With its focus on information-oriented innovation, Taiwan Semiconductor Manufacturing (TSMC) is in the Top 25.

The tidal wave of digital transformation has restructured global industrial operations. In a pandemic-affected world, digital transformation has moved beyond the “nice to have” boardroom jargon to a “must-have” imperative. Organizations were forced to adapt with agility and flexibility to this new normal and accelerate industrial innovation. Established practices and business models were disrupted and destroyed, but destruction led to reconstruction and new ways to resolve challenges.

Defining “digital transformation” is complex as it encompasses the gamut from technologies, processes, and collaboration across teams and geographies. ARC Advisory Group defines digital transformation as: “The integration of digital technology into all areas of business, fundamentally changing the way companies operate and deliver value to customers. The organization is typically charged to innovate and improve across multiple dimensions such as digital/disruptive technologies, culture and leadership, operational agility, workforce engagement, customer experience, environmental, social and governance, and competitive performance.”

This is the thirteenth in a series of blogs on the leaders in the digital transformation space.

Information-oriented Innovation at Taiwan Semiconductor Manufacturing

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

The prevailing philosophy behind digital transformation has been that this transformation naturally translates to success. ARC will continue its research in all areas related to digital transformation to learn more about what is working – and what isn’t – as companies pursue their unique digital transformation activities. The Industrial Digital Transformation Top 25 report will be published annually. With this being the first issue, your feedback is very important to investigate new approaches and measures to adjust our methodology, identify successful digital transformation initiatives, and help the industry as a whole digitally transform. To download the final report, please click here.