contract chipmaker

English translation: manufacturer of (semiconductor) chips under contract

00:20 Sep 13, 2020

English language (monolingual) [PRO]
Bus/Financial - Business/Commerce (general)

English term or phrase: contract chipmaker

The Taiwan Semiconductor Manufacturing Corporation (TSMC) is the world's largest contract chipmaker and a key supplier to Apple.

Why isn't it just "the world's largest chipmaker"? What is a "contract chipmaker"?

Thank you!

Laura Vinti KudoZ activity Questions: 377 (9 open) (12 without valid answers) (30 closed without grading) Answers: 165 United States
Local time: 17:31

Selected answer:manufacturer of (semiconductor) chips under contract

Explanation:
Taiwan Semiconductor Manufacturing Company, Limited (TSMC; Chinese: 台灣積體電路製造股份有限公司) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies,[3][4] the world's most valuable semiconductor company,[5] and the world's largest dedicated independent (pure-play) semiconductor foundry,[6] with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. TSMC has a global capacity of about 13 million 300 mm (12 in) equivalent wafers per year as of 2020, and makes microchips for customers with process nodes from 2 micron to 7 nanometers. TSMC is the first foundry to provide 7 nanometer production capabilities and the first to commercialize extreme ultraviolet lithography (EUV) technology in high volume.

Selected response from:

AllegroTrans
United Kingdom
Local time: 22:31

Grading comment

4 KudoZ points were awarded for this answer

SUMMARY OF ALL EXPLANATIONS PROVIDED

4 +6

manufacturer of (semiconductor) chips under contract

AllegroTrans

5 +3

a chipmaker that manufactures(fabricates) semiconductors according to the designs of other companies

Kiet Bach

they ONLY make the chips, they don't design them

Daryo

संकुचित चिपनिर्माता

Isht Deo Sankrityaayan

Discussion entries: 3

Answers

1 hr confidence:

peer agreement (net): +6

manufacturer of (semiconductor) chips under contract

AllegroTrans
United Kingdom
Local time: 22:31
Specializes in field
Native speaker of:

English
PRO pts in category: 36

Peer comments on this answer (and responses from the answerer)

neutral

Daryo: you forgot the link to your ref. https://en.wikipedia.org/wiki/TSMC In fact most of this quote is not about being "contract chipmaker", so if don't know already where is the "nuance" you would be left none the wiser ... WHICH WAS THE QUESTION!!!

2 hrs

-> Asker is in USA and I expect she can work out what "under contract" means

agree

philgoddard

3 hrs

-> thanks

agree

Sajad Neisi

7 hrs

-> thanks

agree

Yvonne Gallagher: Don't see the problem. This is simple English. No need to spell out what "under contract" means

8 hrs

-> thanks

agree

writeaway: and with Yvonne

12 hrs

-> thanks

agree

Taña Dalglish: Absolutely. Also totally disagree with Daryo assessment. One is under no obligation to include references (links) and the narratives are insane and uncalled for!

13 hrs

-> thanks

agree

Edith Kelly

14 hrs

-> thanks

3 hrs confidence:

peer agreement (net): +3

a chipmaker that manufactures(fabricates) semiconductors according to the designs of other companies

Explanation:
In the microelectronics industry, a semiconductor fabrication plant (commonly called a fab; sometimes foundry) is a factory where devices such as integrated circuits are manufactured.

A business that operates a semiconductor fab for the purpose of fabricating the designs of other companies, such as fabless semiconductor companies, is known as a foundry. If a foundry does not also produce its own designs, it is known as a pure-play semiconductor foundry. If a foundry produces its own designs, it is known as an integrated device manufacturer (IDM).

https://en.wikipedia.org/wiki/Semiconductor_fabrication_plan...

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Note added at 21 hrs (2020-09-13 21:35:47 GMT)
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Unlike Intel, which designs and manufactures its own chips, TSMC only manufactures chips. With that narrow focus, TSMC has become the world’s largest and most advanced contract manufacturer for chipsets.
TSMC already does business with Apple; it manufactures iPhone and iPad chipsets.
https://fortune.com/2020/06/22/taiwan-semiconductors-apple-c...

Kiet Bach
United States
Local time: 14:31
Works in field
Native speaker of:

Chinese
PRO pts in category: 4

4 hrs confidence:

they ONLY make the chips, they don't design them

Explanation:

Any kind of "supply" of anything is always done through some form of "contract" - so "contract chipmaker" can be at first a bit puzzling.

What is meant here is that this company is only making / manufacturing chips "on order" i.e. according to designs given by (known) clients (and these chips would be available ONLY for these "clients" - more accurately "commanditaires" who are in effect "commissioning" the production), as opposed to manufacturing chips designed by themselves for any future (yet unknown) client that could be interested.

If you want a parallel in the language business when you translate a text given by a client that you can only make available to that client it would be a "contract translation", as opposed to, say, you translating your own book from one language to another.

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Note added at 15 hrs (2020-09-13 15:21:08 GMT)
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They also make chips they designed themselves - but the part of their production as "contract manufacturer" is where they make chips designed by the client.

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Note added at 1 day 14 hrs (2020-09-14 14:39:47 GMT)
--------------------------------------------------

ntel is the key supplier to manufacturers of personal computers (about 80% of all PCs have an Intel main processor) but it DOESN'T make Intel a "contract chipmaker" because they make chips of THEIR OWN design.

Anyone can buy an Intel processor, including anyone fancying a D-I-Y assembled PC.

as opposed to

(TSMC) is the world's largest contract chipmaker and a key supplier to Apple.

which means

Apple is designing the chips they need but they couldn't be bothered to make them - they pass the blueprints to TSMC which will make these chips according to Apple's design and sell them ONLY to Apple.

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Note added at 1 day 14 hrs (2020-09-14 14:40:20 GMT)
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Intel is the key supplier to ...

Daryo
United Kingdom
Local time: 22:31
Specializes in field
Native speaker of:

Serbian,

French
PRO pts in category: 12

5 days confidence:

संकुचित चिपनिर्माता

Explanation:
In it 'contract' is actually an adjective, which is qualifying the noun chip. A chip which contracted [means shrunk] is called 'contract chip.

Isht Deo Sankrityaayan
India
Local time: 03:01
Native speaker of:

Hindi

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contract chipmaker

English translation: manufacturer of (semiconductor) chips under contract

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