System perspective on the business model structures of TSMC and UMC: Foundations of business model design for a company

By dissecting the business model structures and the evolution processes of these two leading foundries, this paper attempts to find the points of difference for TSMC and UMC under 90% points of parity in their business models. Grounded theory qualitative research method, casual maps, and social network methods were imported to collect and analyze various data. The findings include internal development vs. external partnership for enhancing manufacturing service capabilities, dual vs. single tracks for design service support, different strategies for IP service, and difference decision in the development of advanced process technology.