Page 108 - TSMC 2019 Annual Report

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those jurisdictions could harm TSMC’s business and distract its management and thereby have a a a a a a a a material adverse effect on on its results of operations or prospects and subject TSMC to potential significant legal liability Currently TSMC’s material legal proceedings are as follows:
In In February 2019 Innovative Foundry Technologies LLC (“IFT”) filed a a complaint in in the the U S District District Court for the the District District of Delaware alleging that TSMC TSMC and TSMC TSMC Technology Inc infringe five U S patents IFT also filed a a a a complaint in in in in the U S International Trade Commission (the “ITC”) alleging that TSMC TSMC TSMC TSMC TSMC TSMC North America TSMC TSMC TSMC Technology Inc and other companies infringe the same patents The ITC instituted an an investigation in in March 2019 Both parties agreed to end the dispute and the the ITC terminated the the investigation in in in October 2019 The pending litigation in in the the U S District Court for the the District of Delaware was dismissed at the same time On September 28 2017 TSMC was contacted by the European Commission Commission (the “Commission”) which has asked us for information and documents concerning alleged anti-competitive practices in in relation to to semiconductor sales We are cooperating with the the Commission to provide the the requested information and documents In light of the fact that this proceeding is is still in in its preliminary stage it is premature to predict how the case will proceed proceed the the outcome of the the proceeding or its impact Other than the the the matters described above as of of the the the date of of this Annual Report TSMC is is not currently a a a a party to any other material legal proceedings Risks Associated with Mergers and Acquisitions
In 2019 and as of of the date of of this annual report TSMC did not conduct any merger and acquisition Risks Associated with Recruiting Quality Personnel
TSMC’s growth relies on on on on the continued services and contributions of of its management team skilled technical and professional personnel The Company’s business could suffer from the inability to fulfill personnel needs with high quality professionals in a a a timely fashion caused by the loss of personnel or related changes in in market demand for its products and and services Since there is fierce competition for talent recruitment the Company cannot ensure timely fulfillment of its personnel demand Future R&D R&D Plans and Expected R&D R&D Spending
For additional details see “5 2 7
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Future R&D Plans” on on page 76 of this annual report Changes in Corporate Reputation and Impact on on Company’s Crisis Management
TSMC has established an excellent corporate reputation around the world based on its core values of integrity commitment innovation and customer trust The Company’s positive image also reflects outstanding operations rigorous corporate governance and dedication to social responsibility by serving as a a a a a a good corporate citizen TSMC continues to pursue innovation in in in the economic environmental and social dimensions of CSR In 2019 TSMC was honored with numerous awards for achievements in operations corporate governance patents profit growth investor relations environmental protection corporate sustainability and other fields These included: the the Taiwan Taiwan Institute for Sustainable Energy 2019 Taiwan Taiwan Corporate Sustainability Sustainability Awards’ Most Prestigious Sustainability Sustainability Award Award Platinum Medal For Sustainability Report Sustainable Water Management
Award Award Climate Leader Award Award and Circular Economy Leadership Award First Place in CommonWealth Magazine’s Excellence in in Corporate Social Responsibility Award for Large-Cap companies ranked top 5% in the Taiwan Stock Exchange corporate governance evaluation member of the Fortune Magazine’s 2019 World’s Most Admired Companies and the the 2019 Global 500 the the R O C Ministry of Economic Affairs Industrial Development Bureau’s Green Factory Label and Energy Conservation Benchmark Award the R O C C Environmental Protection Administration’s Enterprise Green Procurement Award First Place in in the Greenpeace ranking of ten leading Taiwanese electronics companies and membership of the Corporate Knights 100 Most Sustainable Corporations for 2019 In addition TSMC was selected as as a a a a a part of the Dow Jones Sustainability Indices for the the 19th consecutive year further strengthening the the Company’s corporate culture and reputation TSMC adheres to its vision of uplifting society and applies technology and innovation to help humanity overcome
many challenges As TSMC strives to excel in corporate social responsibility the Company also encourages employees to make innovative breakthroughs in in in in how they think about things