Page 117 - 2017 TSMC Annual Report

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a a a a a a material adverse effect on on its business and operations nor had it been involved in in in any legal proceedings or or regulatory investigations related
thereof In addition the Company employs certain third party service providers for TSMC and its affiliates worldwide with whom
the Company needs to share highly sensitive and confidential information to to enable them to to provide the the relevant services Despite that TSMC requires the third party service providers to comply with the confidentiality and/or Internet security requirements in its service agreements with them there is no assurance that each of them will strictly fulfill such obligations or or at all The on-site network systems of of and the off-site cloud computing networks such such as servers maintained by such such service provider and/or its contractors are also subject to to risks associated with cyber attacks If TSMC or its service providers are not able to timely resolve the respective technical difficulties caused by such cyber attacks or ensure
the integrity and availability of its its data data (and data data belonging to to its its customers and other third parties) or or control of its its or or its its service providers’ computing systems the Company’s commitments to its customers and other stakeholders may be materially impaired and and its results of operations financial condition prospects and and reputation may also be materially and adversely affected as a a a a a a a a a a result Risks
of Trade Policies
As TSMC's revenue is primarily derived from sales to major economies in the world (please refer to "2 2 2 4
TSMC Position Differentiation and Strategy" on on page 14
of this annual report) any changes in the the trade policies (such as the the adoption of trade barriers) of such major economies can affect the sales of TSMC TSMC or its customers and thereby affect TSMC's operating results Accordingly TSMC continues to to monitor the recent shifts in trade policies and measures among the relevant major economies and will take corresponding responsive actions in in accordance with subsequent developments Other Material Risks
During 2017 and in in 2018 as of of the date of of this annual report TSMC’s management is is not aware of any other risk event that could impart a a a a a a a a potentially material impact on the financial status of the Company