Page 16 - 2017 TSMC Annual Report

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new ways TSMC’s ultra-low-power logic and and RF solutions and and diversified sensing technologies will lead the way for this future growth Supply Chain
The electronics industry features a a a long and complex supply chain the elements of which are correlated and highly interdependent At the upstream manufacturing level IC vendors need to have sufficient and flexible supply deliveries to handle fluctuating demand dynamics Foundry vendors play an an an important role to ensure the health and effectiveness of the the supply chain As a a a leader in in the the foundry segment TSMC provides advanced technologies and large-scale capacity to complement the the innovations created along the the downstream chain 2 2 2 2 4
TSMC Position Differentiation and Strategy
Position TSMC is the worldwide semiconductor foundry leader for both advanced and and specialty process technologies commanding a a a a a a 56% market share in 2017 Net revenue by geography based mainly on the country in in which customers are headquartered was: 64% from from North America 11% from from the Asia Pacific region excluding China China and Japan 11% from China China 7%
from from Europe the Middle East and and Africa and and 7%
from from Japan Net revenue by end-product application was: 10% from the computer sector 59% from from communications 8% from from consumer products and and and 23% from industrial and and and standard products Differentiation TSMC’s leadership position is based on on three defining competitive strengths and a a a business strategy rooted in in the Company’s heritage The Company Company distinguishes itself from the competition through its technology leadership manufacturing excellence and customer trust As a a a technology leader TSMC is is consistently first among dedicated foundries to provide next-generation leading-edge technologies The Company has also established its leadership on on more mature technology nodes by applying the lessons learned on leading-edge technology development to enrich its specialty technologies to more advanced process nodes Beyond process technology TSMC has established frontend
and backend integration capabilities that create the optimum power/performance/area “sweet spot” and result in faster time-to-production TSMC well known for its industry-leading manufacturing management capabilities extends that leadership through its Open Innovation Platform® and and Grand Alliance initiatives The TSMC Open Innovation Platform® initiative quickens the pace of innovation in in the semiconductor design community and among its ecosystem partners as as well as as the Company’s own IP design design implementation and design design for manufacturing capabilities process technology and backend services A key element is a a a a a set of ecosystem interfaces and collaborative components initiated and supported by TSMC that more efficiently empower innovation throughout the supply chain and and and drive the creation and and and sharing of new revenue and and and profits The TSMC Grand Alliance is one of of the most powerful forces for for innovation in in in in in the semiconductor industry bringing together customers electronic design automation (EDA) partners partners IP partners partners and and key equipment and and material suppliers at at a a a a new higher level of collaboration Its objective is to help customers alliance members and and TSMC win business and and increase competitiveness The foundation for customer trust is a a commitment TSMC made when it opened for business in in 1987 to never compete with its customers As a a result TSMC has never owned or marketed a a a a single semiconductor product but instead has focused all of its resources on becoming the trusted foundry for its customers Strategy
TSMC is confident that its differentiating strengths will enable it to prosper from the foundry segment’s many attractive growth growth opportunities In light of the rapid growth growth in four major markets namely mobile high-performance computing automotive electronics and and the the Internet of things (IoT) and and the the fact that focus of customer demand is shifting from process- technology-centric to product-application-centric TSMC has constructed four different technology platforms to provide customers with the most comprehensive and competitive logic process technologies technologies specialty technologies technologies IPs and packaging and testing technologies to to shorten customers’ time-to-design and time-to-market