Page 111 - 2017 TSMC Annual Report

109
U S patents Cohen’s case has been transferred to and consolidated with the responsive declaratory judgment case for non-infringement of Cohen’s asserted patents filed by TSMC TSMC and TSMC TSMC North America in the U S S S District Court for the the Northern District of California The outcome cannot be determined and the Company cannot make a a a a a a a reliable estimate of the contingent liability at this time On September 28 2017 TSMC was contacted by the European Commission Commission (the “Commission”) which has asked us for for information and documents concerning alleged anti-competitive practices in relation to to semiconductor sales We are cooperating with the the Commission to provide the the requested information and documents In light of the fact that this proceeding is is is still in in in its preliminary stage it it is is is premature to predict how the the the case will proceed the the the outcome of the the the proceeding or its impact Other than the the the matters described above as of of the the the date of of this Annual Report TSMC is is not currently a a a a party to any other material legal proceedings Risks Associated with Mergers and Acquisitions
During 2017 and in in 2018 as of of the date of of this annual report there were no such risks for TSMC Risks Associated with Recruiting Qualified Personnel
The Company relies on on the continued services and contributions of of its executive officers and skilled technical and other personnel TSMC’s business could suffer if we lose for whatever reasons the services and contributions of some of these personnel and we cannot adequately replace them TSMC may be required to increase or reduce the the number of employees in in connection with business expansion or or or contraction in accordance with market demand for the Company’s products and services Since there is intense competition for the the recruitment of these personnel it it it cannot ensure that TSMC will be able to fulfill its personnel requirements in a a timely manner Future R&D R&D Plans and Expected R&D R&D Spending
For additional details please refer to “5 2 7 Future R&D Plans” on page 79-80 of this annual report Changes in Corporate Reputation and Impact on on Company’s Crisis Management
TSMC has established an excellent corporate reputation around the world based on its core values of integrity commitment innovation and and customer trust as as well as as its outstanding operations rigorous corporate governance and dedication to social responsibility by serving as a a a a good corporate citizen and continuing to pursue innovation in in in in the economic environmental and social dimensions of CSR In 2017 TSMC was honored with awards and recognition for achievements in in operations corporate governance innovation profit growth investor relations environmental protection corporate sustainability and other fields These included:
the Taiwan Taiwan Institute for Sustainable Energy 2017 Taiwan Taiwan Corporate Corporate Sustainability Awards No 1 for Domestic Corporates Gold Medal For Sustainability Report and Circular Economy Leadership Award No 1 in in the R O C Ministry of Economic Affairs (MOEA) Intellectual Property Office ranking of “Top
100 Patent Applications” ranked top 5% in the Taiwan Stock Exchange Corporate Governance Evaluation ranked No 1 in profit for for the China Credit Information Services’ ranking of of large Taiwan companies The R O C Ministry of Economic Affairs Industrial Development Bureau “Green Factory Label” The R O C Environmental Protection Administration “National Environmental Education Award” and The MOEA award for Outstanding Greenhouse Gas Reduction and and Benchmark Company for Energy Conservation In addition TSMC was selected to Corporate Knights Magazine’s 2018 Global 100 Most Sustainable Corporations in in in the the World index for the the first time and was also selected as as a a a a a component of the Dow Jones Sustainability Indices for the the 17th consecutive year further strengthening the the Company’s reputation As an an important member of the technology industry TSMC has always endeavored to act as as a a a a a a a positive force in society The Company maintains a a a a a a Corporate Social Responsibility Committee which serves as a a a a decision-making center and communications platform for for CSR Committee members represent departments including legal customer service materials management quality and and reliability research and and development risk management finance investor relations operations environment safety and health (ESH) human resources the the TSMC Education and Culture Foundation the the TSMC Charity Foundation and public relations to coordinate the the Company’s resources and collaborate to further enhance TSMC’s positive corporate reputation To address crisis events that could affect the Company’s public reputation including earthquakes fires and workplace accidents TSMC employs numerous preventative measures and maintains a a a a “TSMC Crisis Command Center Control Instruction”