Page 83 - TSMC 2018 Annual Report

Complementary to to to the the survey quarterly business reviews (QBRs) are also conducted by the the customer customer service team so so that customers can give feedback feedback to to to TSMC TSMC on on a a a a a a a a regular basis Through surveys feedback feedback reviews and intensive interaction with customers TSMC TSMC is is able to to to stay in close touch and and provide better service and and collaboration Customer feedback is routinely reviewed analyzed and then used to to develop appropriate improvement plans all all in in in all all becoming an an an an integral part of the the customer satisfaction process with a a a a a a a a a a complete closed loop TSMC uses data derived from the the survey as as a a a a a a a a a a base to to identify future focus areas TSMC acts on on on on the belief that customer satisfaction leads to to healthy healthy relationships relationships and healthy healthy relationships relationships lead to higher levels of retention and expansion Customers
that Accounted for at at at Least 10% of Annual Consolidated Net Revenue
Unit: NT$ thousands
Customer A None None Others
Total Net Revenue
Note: Commencing in in in 2018 the the Company began to to break down the the net revenue by customer 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 • Reason for Increase or or Decrease: No significant change 5 4 2 Open Innovation Platform® (OIP) Initiative
Innovation has always been an an an exciting and challenging proposition Competition among semiconductor companies continues to to grow more more intense in in in in in the the face of of increasing industry consolidation and the the commoditization of of technology at at at at more more mature conventional levels Companies must find ways to to to keep innovating in in in in in order to to to survive and prosper One way way to to to accelerate innovation is through active collaboration with external partners At TSMC this is is is known as “Open Innovation® ” ” It is is is an “outside in” approach to complement traditional “inside out” methods TSMC has adopted this path to innovate via its Open Innovation Platform® (OIP) initiative which is is a a a a a a a a a a a key part of the TSMC Grand Alliance TSMC announced the the the fifth OIP OIP Alliance Alliance the the the OIP OIP Cloud Alliance Alliance at at at the the the 2018 Open Innovation Platform® Ecosystem Forum Inaugural members Amazon Web Services (AWS) Cadence Microsoft Azure and Synopsys worked jointly with TSMC to implement Open Innovation Platform Virtual Design Environment (OIP VDE) which enables semiconductor customers to to to design securely in the cloud In In TSMC’s enablement of OIP VDE both digital RTL-to-GDSII and custom schematic-capture-to-GDSII design flows have been validated along with OIP collateral including process technology files PDKs foundation IP IP and reference flows To ensure low low barriers to entry and and and high technical support levels Cadence and and and Synopsys act as focal points helping customers to to set up up VDE and and and providing first-line support The OIP initiative is a a a a a a a a a a comprehensive design technology infrastructure that encompasses all critical IC implementation areas to reduce design barriers and improve first-time silicon success OIP promotes the the speedy implementation of innovation amongst the the semiconductor design design design community and its ecosystem partners using TSMC’s IP design design design implementation design design design for manufacturability (DFM) capabilities process technology and backend services Crucial to OIP are ecosystem interfaces and and collaborative components initiated and and supported by TSMC that more efficiently empower innovation throughout the the supply chain and and and in in in in turn drive the the creation and and and sharing of of new revenue and and and profits TSMC’s active accuracy assurance (AAA) initiative is key to OIP providing the the accuracy and and quality required by the the ecosystem interfaces and and collaborative components Customer 2018 2017 Net Revenue
(Note)
As % of 2018 Total Net Revenue
Relation to TSMC Net Revenue
(Note)
As % of 2017 Total Net Revenue
Relation to TSMC 224 690 695
22%
None 220 463 127
23%
806 782 862
78%
756 984 114
77%
1 1 031 473 557
100%
977 447 241
100%
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