Page 80 - TSMC 2019 Annual Report

5 3 3 3 3 Agile and Intelligent Operations
The Company’s sophisticated agile and intelligent operating systems continue to drive manufacturing excellence TSMC has integrated artificial intelligence machine learning expert systems and advanced algorithms to build up an an an an intelligent manufacturing environment Intelligent manufacturing technologies are widely applied in in in in scheduling and dispatching employee productivity productivity equipment productivity productivity process and and and equipment control control quality quality defense and and and robotic control control in order to optimize quality quality productivity efficiency and and and flexibility while maximizing cost effectiveness and accelerating overall innovation TSMC has also integrated new applications such as as intelligent mobile mobile devices IoT and and and mobile mobile robots and and and combined with intelligent automated material handling systems (AMHS) to to consolidate wafer manufacturing manufacturing manufacturing data collection and and analysis utilize manufacturing manufacturing manufacturing resource efficiently and and maximize manufacturing manufacturing manufacturing effectiveness As a a a a a a a a a a a a result the system provides fast ramp-up short cycle time time stable manufacturing on-time delivery and and total quality satisfaction and and offers as well great flexibility to to quickly support customers’ urgent pull-in requests when needed 5 3 4 Raw Materials and Supply Chain Management
In 2019 TSMC continued to review and and resolve supply supply issues issues quality issues issues and and potential supply supply chain risks through the collaboration of teams formed by fab operations quality control and business organizations TSMC also worked with suppliers to further advance material and and process innovation improve quality and and create recycling savings with benefits from win-win solutions Raw Materials Supply Raw Wafers
Chemicals
Major Materials Major Suppliers
Market Status
Procurement Strategy
FST GlobalWafers SEH
Siltronic SUMCO
These 5 suppliers together provide over 90% of the world’s raw wafer supply Air Liquide
BASF
DuPont
Entegris
Fujifilm Electronic Materials Kanto PPC
Kuang Ming Merck RASA
Shiny Tokuyama Versum Wah Lee
These 13 companies are the major worldwide suppliers of chemicals 3M
Fujifilm Electronic Materials JSR
Nissan
Shin-Etsu Chemical Sumitomo Chemical T O K These 7 companies are the major worldwide suppliers of lithographic materials Air Liquide
Air Products
Central Glass
Entegris
Linde LienHwa
Praxair
SK Materials Taiwan Material Technology Taiyo Nippon Sanso Versum These 10 companies are the major worldwide suppliers of specialty gases • • • • • • • • • • • • • • TSMC’s suppliers of silicon wafers are required to pass stringent quality certification procedures TSMC procures wafers from multiple sources to ensure adequate supplies for volume manufacturing and to appropriately manage supply risk Raw wafer quality enhancement programs are in place to support TSMC’s technology advancement TSMC regularly reviews the quality delivery cost sustainability and service performance of of its wafer suppliers The results of of these reviews are incorporated into subsequent purchasing decisions A periodic audit of each wafer supplier’s quality assurance system ensures that TSMC can maintain the highest quality in in in its own products TSMC takes various approaches with suppliers to better manage the cost and supply Most suppliers have relocated some of their operations closer to TSMC’s major manufacturing facilities thereby significantly improving procurement logistics All supplied products are regularly reviewed to ensure that TSMC’s specifications are met and product quality is is satisfactory TSMC encourages and engages with chemical suppliers to implement innovative green solutions for waste reduction TSMC works closely with suppliers to develop materials that meet all application and cost requirements TSMC and suppliers periodically conduct programs to improve their quality delivery sustainability and and green policy and and to ensure continuous progress of TSMC’s supply chain Some major suppliers have relocated or or plan to replicate their manufacturing sites closer to TSMC’s major manufacturing facilities thereby significantly improving procurement logistics and reducing supply risks The majority of these suppliers have facilities in multiple geographic locations which minimizes supply risk for TSMC TSMC TSMC conducts periodic audits to ensure that they meet TSMC’s standards (Continued)
Lithographic Materials Gases
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