Page 14 - TSMC 2019 Annual Report

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Gallium nitride (GaN) on on on silicon silicon technology was further Successfully developed 16nm silicon silicon in wafer level chip scale • • • • • • enhanced to integrate GaN power switches with drivers in in both 650V and 100V platforms as as well as as improve reliability to to support customer deigns for higher power density and efficiency solutions for various market applications Both 650V and 100V GaN IC technology platforms are expected to be ready in 2020 • Organic light-emitting diode (OLED) on on silicon panel technology increases pixel density by five to ten times compared to the traditional OLED on on glass technology and can support the growing demand for high-quality AR/VR (augmented reality reality / virtual reality) goggles In working with customers TSMC successfully demonstrated this technology on on both 8-inch and 12-inch high voltage (HV) technologies which paves the way for AR/VR suppliers to develop next generation goggles for various industrial medical and consumer electronics applications • As machine vision is is quickly deployed in in many security automotive home and mobile communication applications TSMC offers the next generation global shutter CMOS image sensor (CIS) and enhanced near infrared (NIR) CIS CIS technologies making machine vision systems safer smaller and consume less power • TSMC successfully supported customer to to deliver the world’s smallest CMOS-MEMS (micro-electromechanical systems) monolithic accelerometer in in chip scale packaging (CSP) format smaller than 1mm2 in in size This small small footprint can help reduce the size and and weight of many IoT and and wearable devices Advanced Packaging Technology
• Successfully developed InFO-PoP (Integrated Fan-Out Package- on-Package) technology which integrates 7nm SoC (System- on-Chip) and and DRAM (dynamic random access memory) for advanced mobile device applications and delivered several customer products to to market in in high volume in in 2019 • CoWoS® (Chip on on Wafer on on Substrate) technology that heterogeneously integrates multiple 7nm SoC chips and the second generation high bandwidth memory (HBM2)
on on 2-retcile size silicon interposer successfully completed qualification in the third quarter of 2019 for for high performance computing applications • In In In addition to CoWoS® InFO_oS (Integrated Fan-Out on on Substrate) technology integrating multiple 7nm SoC chips began volume production in 2019 • Fine pitch copper (Cu) bump technology for flip chip packaging on on on 5nm silicon successfully completed qualification in 2019 for both advanced mobile device and high performance computing applications packaging (WLCSP) technology and delivered customer products to market in in high high volume in in 2019 for IoT and high- end smartphone applications 2
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Market Overview
TSMC estimates that the worldwide semiconductor market excluding memory was US$327 billion in in in revenue in in in 2019 representing a 2% decline from 2018 In the foundry segment of the semiconductor industry total revenue was US$67 billion in in 2019 flat from 2018 2
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Industry Outlook Opportunities and Threats
Industry Demand and and Supply Outlook TSMC’s back-to-back years of growth in the foundry segment was driven by relatively healthy market demand However for 2020 the COVID-19 pandemic brings about uncertainty on both supply and and demand of the total semiconductor industry Considering the the potential impacts TSMC forecasts the the total semiconductor market excluding memory to to be flat or or or slightly decline Over the longer term however fueled by increasing semiconductor content in in in electronic devices continuing market share gains by fabless companies gradual increases in in in in integrated device manufacturer (IDM) outsourcing and and expanding in-house application-specific integrated circuits (ASIC) from systems companies the Company expects its foundry segment revenue to outpace the mid-single digit compound annual growth rate projected for the overall semiconductor market excluding memory from 2019 through 2024 As an upstream supplier in in the the semiconductor supply chain the the foundry segment is tightly correlated with the market health of the major platforms including smartphone high performance computing (HPC) Internet of Things (IoT) automotive and digital consumer electronics (DCE) Smartphone
Smartphone
unit shipments which were down for the first
time in in in in in their history in in in in in 2018 by by 4% declined again in in in in in 2019 by by 2% reflecting established high penetration in in many developed countries and China For 2020 with 5G commercialization accelerating new 5G smartphones will likely shorten the overall replacement cycle However COVID-19 pandemic may delay smartphone replacement As a a a a result TSMC projects a a a a high-single digit decline for smartphone market in in 2020 Over the longer term migration to to 5G together with improved performance longer battery life biosensors and more AI features will all continue to propel new smartphone sales going forward •