Page 81 - TSMC 2019 Annual Report

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• 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 • Most suppliers have relocated or plan to replicate some of their manufacturing sites closer to TSMC’s major manufacturing facilities thereby significantly improving procurement logistics and reducing supply risks Major Materials Major Suppliers
Market Status
Procurement Strategy
3M
AGC
Cabot Microelectronics DuPont
Fujibo
Fujifilm Electronic Materials Fujimi
These 7 companies are the major worldwide suppliers of CMP (Chemical Mechanical Polishing) materials Suppliers
Accounting for at at Least 10% of Annual Consolidated Net Procurement Unit: NT$ thousands
Company A Company B
Company C C 11 275 564
10 322 266
5 5 735 862
19% None 10 233 843
17% None 11 047 359
10% None 6 6 800 865
54% - 35 324 987
100% - 63 407 054
16% None 17% None 11% None 56% - 100% - Supplier 2019 2018
Procurement Amount
As % of 2019 Total Net Procurement Relation to TSMC Procurement Amount
As % of 2018
Total Net Procurement Relation to TSMC Others 31 826 777
Total Net Procurement 59
160 469
• Reason for Increase or or Decrease: No significant change 5 5 3 5 5 Quality and Reliability
TSMC strives to to to to provide excellence in in semiconductor manufacturing services to to to to all its customers worldwide The Company is dedicated to to to quality in in in in in every facet of of its business and maintains a a a a a a a a a culture of of continuous improvement to to to assure customer satisfaction TSMC implements expedient containment programs to to shield customers from any product defects until each has been eliminated In In the the technology development stage the the Q&R Q&R organization helps customers design in superior product reliability In In 2019 Q&R Q&R worked with R&D in in advanced advanced logic specialty and and advanced advanced packaging technologies throughout development and and qualification stages continuously to ensure meeting requirements for device characteristics process yield and product reliability For advanced logic technology in in 2019 Q&R successfully qualified the the 5nm FinFET the the second generation process with EUV lithography to to to ensure its competitiveness in in in mobile and high performance computing applications with plans to to to move into mass production
in 2020 For specialty technologies Q&R completed technology qualification of 22nm ULL (ultra-low leakage) embedded MRAM (magnetic random access memory) Regarding CIS CIS (CMOS image sensor) technology Q&R qualified 45nm NIR (near infrared) CIS CIS with ASIC (application specific integrated circuit) wafer wafer on on on on wafer wafer stack For CoWoS® (Chip on on on on Wafer on on on on Substrate) packaging technologies the the Company established a a a a a a a a a new new manufacturing site site in in 2019 that that doubled capacity from 2018
To ensure that that the the new new site site could provide products with the the same quality and and and reliability Q&R completed the the process and and and equipment matching and and and qualification among different sites In In addition integrated fan-out (InFO) assembly technology for mobile applications moved into its fourth generation of manufacturing Moreover InFO_oS 1 5x reticle InFO InFO size on on substrate was qualified with products in in in production
for networking applications To continuously achieve product defect reduction enhance process controls make early detection of abnormalities and prevent quality problems that affect customers Q&R collaborates with other operational entities to to establish real-time defense systems using advanced statistical methods and and quality quality tools Since 2017 Q&R and and Fabs have worked together on enhancements for automotive product quality quality improvement including design rule implementation and migration to to Automotive Quality System 2 0 This covers process capability requirement tightening for in-line and and and wafer wafer acceptance testing in in in in in in fabs and and and maverick wafers/lots handling Q&R also provides dedicated resources for for field/line return analysis analysis and timely physical failure analysis analysis (PFA) for for process improvement to to to meet automotive customers’ stringent DPPM (defective parts per million) requirements In 2019 quality control for automotive products was deployed to to 7nm and 12nm process technologies for the preparation of automotive electronic business in in 2020 79