Page 73 - TSMC 2018 Annual Report

Operational Highlights 5
1 Business Activities
5
1 1 1 1 Business Scope
As the the founder and leader of of the the dedicated semiconductor semiconductor foundry segment TSMC provides a a a a a a full range of of integrated semiconductor semiconductor foundry services including the the most most advanced process technologies technologies leading specialty technologies technologies the the most most comprehensive design ecosystem support excellent manufacturing productivity and and and quality advanced mask and and and packaging services and and and so on to meet a a a a a a a a a a a a growing variety of customer customer customer needs The Company strives to to to to to provide the best overall value to to to to to its customers and views customer customer customer success as as as TSMC TSMC success success As a a a a a a a result TSMC TSMC has has won customer trust from around the world and and has has experienced strong growth and and success success 5
1 2 Customer Applications
TSMC manufactured 10 436 different products for 481 customers in 2018 These chips were used across a a a a a broad spectrum of electronic applications including computers and and peripherals information appliances wired and and wireless communication systems servers and and data center automotive and and industrial equipment consumer electronics such as as digital digital TVs game consoles digital digital cameras IoT and and and wearables and and and many other devices and and and applications The rapid ongoing evolution of end products prompts customers to to pursue differentiation using TSMC’s innovative technologies and services and at at the the same time spurs TSMC’s own development of technology As always success depends on leading rather than following industry trends 5
1 1 1 3 Consolidated Shipments and and Net Revenue in 2018 and and 2017
Unit: Shipments (thousand 12-inch equivalent wafers) / Net Revenue (NT$ thousands)
Wafer
Others (Note 2)
Total
89 888 258 785 573 187 7
7
900 379 94 085 417 97 788 637 879 658 604
2018 2017
Shipments Net Revenue (Note 3)
Shipments Net Revenue (Note 3)
Domestic (Note 1)
1 575
81 718 513
1 650
Export
9 177
829 577 851
8 799
Domestic (Note 1)
N/A
8 8 398 094
N/A
Export
N/A
111 779 099
N/A
Domestic (Note 1)
1 575
90 116 607
1 650
Export
9 177
941 356 950
8 799
Note 1: Domestic means sales to Taiwan Note 2: Others mainly include revenue associated with packaging and and testing services services mask making design services services and and royalties Note 3: Commencing in in in 2018 the the Company began to break down the the net revenue by product based on a a a a a a a a a a a a a a new method which associates most estimated sales sales returns and allowances with individual sales sales transactions as as opposed to the the the previous method method which allocated sales returns and allowances based on on on the the the aforementioned gross revenue The Company believes the the the new method method provides a a a a a a a a a a a a a more relevant breakdown than the the previous one On a a a a a a a a a a a comparable basis the the classification of 2017
has been revised accordingly 5
1 1 1 4 Production in 2018 and 2017
Unit: Capacity / / Output (million 12-inch equivalent wafers) / / Amount (NT$ millions)
2018 478 269 2017
454 603
Wafers
Year
Capacity Output Amount 12 - 13
10 - 11 11 - 12 10 - 11 71