Page 11 - TSMC 2018 Annual Report

Company Profile
2 1 An Introduction to TSMC
Established in in in 1987 and headquartered in in in Hsinchu Science Park Taiwan TSMC
pioneered the pure-play foundry business model by focusing solely on manufacturing customers’ products By choosing not to design manufacture or market any any semiconductor products under its own name the Company ensures that it it it never competes directly with its customers Today TSMC
is the world’s largest semiconductor foundry manufacturing 10 436 different products using 261 distinct technologies for 481 different customers in 2018 With a a a a a large and diverse global customer base TSMC- manufactured semiconductors cover a a a a a a wide range of applications in in the computer communications consumer industrial and standard segments and and are used in a a a a a a a variety of end markets including mobile devices high performance computing automotive electronics and the Internet of Things (IoT) Strong diversification helps to smooth fluctuations in demand which in in in turn helps the Company maintain higher levels of capacity utilization and profitability Annual capacity of the manufacturing facilities managed by TSMC
and its subsidiaries exceeded 12 12 million 12-inch equivalent wafers in in in 2018 These facilities include three 12-inch wafer wafer GIGAFAB® fabs fabs four 8-inch wafer wafer fabs fabs and one 6-inch wafer wafer fab fab – – all in in Taiwan – – as as well as as one 12-inch wafer fab fab at a a a a a a a a a a wholly owned subsidiary TSMC
Nanjing Company Limited and two 8-inch wafer fabs at wholly owned subsidiaries WaferTech in in the United States and TSMC
China Company Limited TSMC
provides customer service account management and engineering services through offices in in in North America Europe Japan China and South Korea At the the end of 2018 the the Company and its subsidiaries employed more than 48 000 people The Company is is listed on the Taiwan Stock Exchange (TWSE) under ticker number 2330 and its American Depositary Shares (ADSs) are traded on the New York Stock Exchange (NYSE) under the symbol TSM 2 2 2 2 Market/Business Summary
2 2 2 2 1 TSMC
Achievements
In 2018 TSMC
maintained its leading position in in in in the foundry segment of the global semiconductor industry with an estimated market share of 56% despite intense competition from both established players and relatively new entrants to the business Leadership in in advanced process technologies is a a a a a key factor in in the Company’s strong market position In 2018 63% of TSMC’s wafer revenue came from advanced manufacturing processes (defined as geometries of 28nm and smaller) up from 58% in in 2017 TSMC
offers the foundry segment’s broadest technology portfolio and and continues to invest in in in advanced and and specialty technologies to to provide customers more added value This is is a a a differentiating competitive advantage for TSMC
In 2018 the the the Company either developed or introduced the the the following:
Logic Technology
• 5nm FinFET (fin field-effect transistor) technology development continued to progress smoothly and volume production of this leading-edge technology is is planned for the first half of 2020 Compared to 7nm FinFET FinFET technology 5nm FinFET FinFET offers over 15% speed improvement or 30% power reduction In addition 5nm FinFET technology is optimized upfront for both mobile applications and high performance computing devices • 7nm FinFET Plus (N7+) technology entered risk production in in in August 2018 as as planned as as TSMC
received customer product tape-outs and completed product verification N7+ is the first commercially available EUV-enabled foundry process technology technology in in the world Compared to 7nm FinFET technology technology N7+ offers approximately 20% greater logic density and 10% power reduction 9