Page 11 - TSMC 2019 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 with an an exclusive focus 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 with its customers And so the key to to to TSMC’s success has always been to to to enable its customers’ success TSMC’s foundry business model has enabled the rise
of the the global fabless industry and TSMC
is now the the world’s largest semiconductor foundry manufacturing 10 761 different products using 272 distinct technologies for 499 different customers in 2019 TSMC-manufactured semiconductors serve a a a a global customer base that is large and and diverse and and includes a a a a a a a wide range of applications in the computer communications consumer and and industrial/standard segments These products are used
in in in 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 in in in demand which in in in in turn helps TSMC
maintain higher levels of o capacity utilization and and profitability and and generate healthy returns for future investment The annual capacity of the manufacturing facilities managed by TSMC
and its subsidiaries exceeded 12 12 million 12-inch equivalent wafers in in in 2019 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 2019 the the Company and its subsidiaries employed more than 51 000 people worldwide 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 2019 TSMC
maintained its leading position in in in in the foundry segment of the global semiconductor industry with an estimated market share of 52% despite ongoing intense competition
from both established players and relatively new entrants to the business The Company’s strong market position stems in great part from its leadership in advanced process technologies In 2019 50% of TSMC’s wafer revenue came from advanced manufacturing processes – – defined as geometries of 16nm and smaller – – up from 41% in 2018 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 2019 the the Company developed or introduced the the following:
Logic Technology
• 5nm Fin Fin Field-Effect Transistor (FinFET) (N5) technology is is TSMC’s newest offering This world-leading technology received multiple customer product tape-outs in 2019 including mobile and high performance computing products Volume production of N5 technology is expected in the first half of 2020 Compared to 7nm FinFET (N7) technology N5 technology offers about about 15% speed improvement or about about 30% power reduction In addition it it is optimized upfront for both mobile and high performance computing applications • 5nm FinFET Plus (N5P) technology is a a performance- enhanced version of N5 technology with same design rules N5P technology provides about 20% faster speed than N7 technology or about 40% power reduction Design kits of N5P technology will be available in in the the next N5 N5 revision in in the the second quarter of 2020 9