Page 15 - TSMC 2019 Annual Report

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on Low-power IC is an an essential requirement among handset Automotive • • • manufacturers and SoC design in which TSMC is already the leader is the preferred solution due to its optimized cost power and and form factor (device footprint and and thickness) potential The migration to to advanced process technologies will continue to to accelerate spurred by the appetite for for higher performance to run AI applications various complex software routines and higher resolution video The car unit sales fell 5% in 2019 because of of the softened global economies It is projected to decline again at low-teens in in in 2020 due to COVID-19 pandemic and and continued macro uncertainty Moving forward TSMC expects richer semiconductor content requirement driven by EV (electrical vehicle) ADAS (Advanced Driver Assistance System) and Infotainment system to fuel the demand for Processors Sensors Analog and and Power ICs TSMC offers various kinds of of automotive process technologies to to help customers winning the automotive market • High Performance Computing (HPC) The HPC platform includes PC PC Tablets Server Base Station Game Console etc Major HPC unit shipment fell by 4% in 2019 mainly due to prolonged replacement cycle of consumer PC lower enterprise Server demand and and current generation Game Console entering tail of of product life cycle while partially offset by 5G Base Station deployment and and growing business PC demand The HPC is projected to have a a mid-single digit unit decline in in in 2020 impacted by COVID-19 Nevertheless several factors are expected to drive demand in in in in HPC platform including continually 5G Base Station deployment rising Data Center AI Server demand and and next generation Game Console launching etc All these require higher performance and power-efficient CPUs GPUs NPUs AI Accelerators and related-ASICs which will drive the overall HPC platform towards richer silicon content and more advanced process technologies • Internet of Things (IoT) Internet of of Things (IoT) platform includes various kinds of of connected devices such as smart smart wearable smart smart speaker and surveillance system etc The IoT unit shipments grew 25% in 2019 with Bluetooth earphone smart smart watch and smart smart speaker as the major growth drivers Looking into 2020 despite impacted by COVID-19 the IoT unit shipments will grow grow mid-teens thanks to continued growth momentum of Bluetooth earphone smart smart watch and smart smart speaker and continued development of various applications By adding more more AI functions the IoT devices will drive more more demand for more powerful yet lower power power controllers connectivity IC and sensors TSMC offers high-performance yet low-power process technologies to to enable customers’ competitiveness for winning the market • Digital Consumer Electronics (DCE) The DCE unit shipments fell 7% in 2019 TVs and set-top boxes declined due to worldwide economic uncertainties while MP3 players digital cameras continued to be cannibalized by smartphones A continued drop in in in in DCE is expected in in in in 2020 Certain sub- segments such as 4K and 8K (UHD) TVs should achieve positive growth within the sector In addition AI functions such as picture quality improvement and voice control have continuously been incorporated in in TVs With its broad array of advanced technology offerings TSMC expects to take advantage of of these market trends Supply Chain
The electronics industry features a a a long and complex supply chain the elements of which are correlated but highly interdependent At the upstream manufacturing level IC vendors need to have sufficient and flexible supply deliveries
to handle fluctuating demand dynamics Foundry vendors play an an an important role to ensure the the health and effectiveness of the the supply chain As a a a leader in in the foundry segment TSMC provides advanced technologies and large-scale capacity to complement the the innovations created in in in the the downstream chain