Page 5 - TSMC 2018 Annual Report

Letter to Shareholders Dear Shareholders 2018 2018 was was a a a a a a year year of of important milestones for TSMC 2018 2018 was was our seventh consecutive year year of of record revenue net income and earnings per share We ramped our 7-nanometer technology to high volume successfully at least a a a a a a a a full full year ahead of any other semiconductor player We have strong customer engagement and tape out activity across diversified applications For the first time in history a a a a a a a a a most advanced logic technology as as an an open platform was available for the the the whole semiconductor industry With the the the strongest technology portfolio the the the widest coverage of customers and the the largest addressable market we are poised in a a a a a a a a a better position than ever to to catch the the future growth opportunities for TSMC In today’s world we see see digital computation becoming increasingly ubiquitous We see see massive devices being connected generating higher volumes of data We see many new applications and products are all embedded with
AI (artificial intelligence) Semiconductors are becoming ever more pervasive The need for for higher performance lower power and a a a a a a a a greater degree of system integration will will drive further product advancements that TSMC will will help enable The rapid ramp up of our 7-nanometer technology in in 2018 allowed us to capture all all leading smartphone launches and and many more mobile and and high performance computing applications In 2018 our second generation 7-nanometer technology (N7+) entered risk production production and is is scheduled for volume production production in in 2019 N7+ N7+ will be the industry’s first commercially available EUV (extreme ultraviolet) process technology At the same time we continue our advanced technology development on on 5-nanometer and target for volume production in the first half of 2020 Our advanced packaging solutions with
follow-on generations of InFOs (Integrated Fan-Out) and CoWoS® (Chip on on on on on Wafer on on on on on Substrate) continue to lead the the industry in in in in providing the the most advanced system-level solutions Highlights of TSMC’s accomplishments in 2018:
• • Total wafer wafer wafer shipments increased 2 2 2 2 2 9 percent percent from 2017 to to reach 10 8 8 8 million 12-inch equivalent wafers • • Advanced technologies (28-nanometer and beyond) accounted for 63 percent percent percent of total wafer wafer wafer revenue up from from 58
percent in 2017 • • We deployed 261 distinct process technologies and manufactured 10 436 products for 481 customers • • TSMC’s market share in in in in in the the total semiconductor foundry segment rose successively during the the last nine years and and reached 56 percent in 2018 3