Page 16 - TSMC 2019 Annual Report

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TSMC Position Differentiation and Strategy
Position TSMC is the worldwide semiconductor foundry leader for advanced advanced specialty and advanced advanced packaging technologies commanding a a a a 52% market share in in 2019 Net revenue by geography based mainly on the country in in which customers are headquartered was: 60% from from North America 9% from from the Asia Pacific region excluding China China and Japan 20% from China China 6% from from Europe the Middle East and and Africa and and 5% from from Japan Net revenue by platform was: 49% from the smartphone 30% from from the the high performance computing (HPC) 8% from from the the Internet of Things (IoT) 4% from automotive In In addition 5% was from from digital consumer electronics and 4% from from others Differentiation TSMC’s leadership position is based on on three defining competitive strengths and a a a business strategy rooted in in the Company’s heritage The Company Company distinguishes itself from the competition through its technology leadership manufacturing excellence and customers’ trust As a a a technology leader TSMC is is consistently first among dedicated foundries to provide next generation leading-edge technologies The Company also maintains a a a a a a leadership position in in more mature technologies by applying the lessons learned
in in leading-edge technology development to enrich its specialty technologies Beyond process technology TSMC has established frontend and backend integration capabilities to create the optimum power/performance/area “sweet spot” to help customer achieve faster time-to-production Well known for industry-leading manufacturing management capabilities TSMC extends that leadership through its Open Innovation Platform® and and Grand Alliance initiatives The Open Innovation Platform® initiative quickens the pace of innovation in the semiconductor design community and among its ecosystem partners as as well as as in the Company’s own IP design implementation and design for manufacturing capabilities process technology and backend services A key element is a a a a a set of ecosystem interfaces and collaborative components initiated and supported by the Company that more efficiently empower innovation throughout the supply chain and drive
the creation and and sharing of o new revenue and and profits The TSMC Grand Alliance is one of the most powerful forces for for innovation in in in in the the semiconductor industry bringing together customers electronic design automation (EDA) partners partners IP partners partners and key equipment and material suppliers at at a a a a a new higher level of collaboration Its objective is to to help customers alliance members and and TSMC win business and and increase competitiveness The foundation for customer trust is a a a commitment TSMC made when it it it opened for business in in 1987 to never compete with its customers As a a a a result TSMC has never owned or marketed a a a a single semiconductor product but instead has focused all of its resources on becoming the trusted foundry for its customers Strategy
TSMC is confident that its differentiating strengths will enable it it to prosper from the foundry segment’s many attractive growth opportunities In light of the rapid growth in four major markets namely smartphone high performance computing the Internet of Things and and automotive electronics and and the fact that focus of customer demand is shifting from process-technology- centric centric to product-application-centric TSMC has constructed four corresponding technology platforms to to provide customers with the most comprehensive and competitive logic process technologies technologies specialty technologies technologies IPs and and packaging and and testing technologies to to to shorten customers’ time-to-design and time-to-market These platforms are:
Smartphone: TSMC offers leading process technologies such
as 5nm FinFET FinFET FinFET FinFET 6nm FinFET FinFET FinFET FinFET 7nm 7nm FinFET FinFET FinFET FinFET Plus and 7nm 7nm FinFET FinFET FinFET FinFET logic process technologies as as well as as comprehensive IPs for premium product applications to further enhance chip performance reduce power consumption and decrease chip size For mainstream product applications TSMC offers leading process technologies such
as 12nm FinFET compact (12FFC) 16nm FinFET compact (16FFC) 28nm high performance compact compact (28HPC) 28nm high performance mobile compact compact plus (28HPC+) and 22nm ultra-low power (22ULP) logic process technologies in addition to to comprehensive IPs to to satisfy customer needs for for high performance and low power chips Furthermore for premium high- mid- and low-end product applications the the Company also offers the the most competitive leading-edge specialty technologies including RF embedded flash memory memory emerging memory memory technologies power management sensors and display chips as as well as as advanced packaging technologies such
as industry-leading Integrated Fan- Out (InFO) technology High Performance Computing: TSMC provides customers with leading process technologies such
as 5nm FinFET FinFET 6nm FinFET FinFET 7nm FinFET FinFET and 12/16nm FinFET FinFET as as well as as comprehensive IPs including high-speed interconnect IPs to to meet customers’ high high performance computing and communication requirements The Company also offers multiple advanced packaging technologies such
as CoWoS® InFO and and 3D IC to enable homogeneous and and heterogeneous chip integration to to meet customers’ performance power and system footprint requirements TSMC will continue to