TSMC is "too big to fail," posing supply-chain risks, analysts say

07/16/2012 | TechEye.net

Taiwan Semiconductor Manufacturing accounts for about 2% of the world's gross domestic product, according to Future Horizons, and the company along with United Microelectronics provides two-thirds of the semiconductor industry's silicon foundry production and nearly one-quarter of global chip production. IHS iSuppli estimates that more than 150 fabless semiconductor companies exist around the globe, many of which depend on TSMC to make their chips, creating an element of risk with so many IC design houses counting on one foundry.

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