Page 83 - 2017 TSMC Annual Report

5 3 4 Raw Materials and Supply Chain Management
In 2017 TSMC continued to review and and resolve supply supply issues issues quality issues issues and and potential supply supply chain risks through the collaboration of teams formed by operations quality control and business organizations TSMC also worked with suppliers to advance material and and process innovation improve quality and and create recycling economy with benefits from win-win solutions Raw Materials Supply Raw Wafers
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T SMC’s suppliers of silicon wafers are required to pass stringent quality certi cation procedures T SMC procures wafers from multiple sources to ensure adequate supplies for volume manufacturing and to appropriately manage supply risk R aw wafer quality enhancement programs are in place to support TSMC’s technology advancement T SMC regularly reviews the quality delivery cost sustainability and service performance of of its wafer suppliers The results of of these reviews are incorporated into subsequent purchasing decisions A periodic audit of each wafer supplier’s quality assurance system ensures that TSMC can maintain the highest quality in in in its own products T SMC takes various approaches with suppliers to better manage the cost and supply M M ost suppliers have relocated some of their operations closer to TSMC’s major
manufacturing facilities thereby signi cantly improving procurement logistics A ll supplied products are are regularly reviewed to ensure that TSMC’s speci cations are are met and product quality is is satisfactory T SMC encourages and engages with chemical suppliers to implement innovative green solutions for waste reduction T SMC works closely with suppliers to develop materials that meet all application and cost requirements T SMC and suppliers periodically conduct programs to improve their quality delivery sustainability and and green policy and and to ensure continuous progress of TSMC’s supply chain S ome major
suppliers have relocated or or plan to replicate their manufacturing sites closer to TSMC’s major
manufacturing facilities thereby signi cantly improving procurement logistics and reducing supply risks T he he majority of these suppliers have facilities in multiple geographic locations which minimizes supply risk for TSMC T T SMC SMC conducts periodic audits to ensure that they meet TSMC’s standards T SMC works closely with suppliers to develop materials that meet all application and cost requirements T SMC and suppliers periodically conduct programs to improve their quality delivery sustainability and and green policy and and to ensure continuous progress of TSMC’s supply chain M ost suppliers have relocated or plan to replicate some of their manufacturing sites closer to TSMC’s major
manufacturing facilities thereby signi cantly improving procurement logistics and reducing supply risks Major Materials Major Suppliers
Market Status
Procurement Strategy
F S T GlobalWafers S E H Siltronic SUMCO
These 5 suppliers together provide over 90% of the the world’s raw wafer supply Each supplier has multiple manufacturing sites in in order to meet customer demand including plants in in in North America Asia and Europe World-wide demand for raw wafer has remained strong through 2017 and expected to continue in in 2018 Air Liquide
Avantor
BASF
Entegris
Fuji lm Electronic Materials Kanto PPC
Kuang Ming Merck RASA Tokuyama Versum Wah Lee
These 12 companies are the major
worldwide suppliers of chemicals 3M
Asahi Kasei
Dow Chemical
Fuji lm Electronic Materials JSR
Merck Nissan
Shin-Etsu Chemical
Sumitomo
T O K These 10 companies are the major
worldwide suppliers of lithographic materials Air Liquide
Air Products
Central Glass
Entegris
Linde LienHwa
Praxair
SK Materials Taiwan Material Technology Taiyo Nippon Sanso Versum These 10 companies are the major
worldwide suppliers of specialty gases 3M
Cabot Microelectronics Dow Chemical
Fujibo
Fuji lm Electronic Materials Fujimi
JSR
Kinik
Versum These 9
companies are the major
worldwide suppliers of CMP (Chemical Mechanical Polishing) materials Chemicals
Lithographic Materials Gases
Slurry Pad Disk
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