Page 16 - TSMC 2020 Annual Report

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● InFO_oS (Integrated Fan-out Wafer on substrate) technology extended its support to to 90mmX90mm package size to to integrate up to to a a a total of nine SoC chips per module in in in 2020 ● In addition to conventional silicon interposer technology (Chip on on on Wafer on on on Substrate with Silicon Interposer CoWoS®-S) which has been in volume production TSMC extended the interconnect technology to redistribution layer (RDL) interposers (Chip on on on Wafer on on on Substrate with Redistribution Layer Interposer CoWoS®-R) and local silicon interconnect interposers (Chip on on on Wafer on on on Substrate with Local Silicon Interconnect Interposer CoWoS®-L) in in 2020 and is engaging with customers in technology qualification and evaluation ● Fine pitch copper (Cu) bump technology for flip chip packaging on on on 5nm silicon successfully entered production in 2020 for for both advanced mobile and high performance computing applications 2 2 2 2 2 2 2 2 2 Market Overview
TSMC estimates that the worldwide semiconductor market excluding memory reached US$359 billion in in in revenue in in in 2020 representing a a 10% increase from 2019 In the foundry segment of the semiconductor industry total revenue rose to to to US$80 billion in 2020 a robust growth of 20% over 2019 2 2 2 2 3 Industry Outlook Opportunities and Threats
Foundry Industry Demand and and Supply Outlook For 2020 TSMC’s strong growth in the foundry segment was driven by increased market demand for 5G smartphones and high-performance computing (HPC) products such as PCs tablets game consoles servers and 5G base station which were further boosted by increasing “shelter at home” and and “work from home” during the COVID-19 pandemic Meanwhile to cope with high market demand and and supply uncertainties the electronics supply chain took on on higher inventory levels which also contributed to to foundry and TSMC TSMC growth For 2021 TSMC TSMC forecasts further increases in in demand for overall electronics device driven by the ongoing 5G smartphone ramp-up and continued strength in in HPCs supporting the acceleration of digital transformation resulting in in the total semiconductor market excluding memory to to to have
a a low-teens growth Over the longer term fueled by increasing semiconductor content in in electronic devices continued market share gains by fabless companies 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 foundry segment revenue to outpace the mid-single-digit compound annual growth rate projected for the overall semiconductor market excluding memory from 2020 through 2025 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 HPCs Internet of Things automotive and digital consumer electronics (DCE) ● Smartphones
Smartphone unit shipments which were down a a modest
2% in in in in in 2019 declined again in in in in in 2020 by 9% reflecting their already high penetration in many developed countries and China as as well as as the the impact of the the COVID-19 pandemic on consumer purchasing power With 5G commercialization continuing to accelerate new 5G smartphones will likely shorten the overall replacement cycle As a a a result TSMC projects a a a high-single-digit growth for the smartphone market in 2021 Over the the the longer term the the the migration to to 5G together with improved performance longer battery life biosensors and more AI features will all continue to propel smartphone sales going forward Low-power integrated circuit (IC) technology is an essential requirement among handset manufacturers and and system-on-chip (SoC) design is the preferred solution given
its optimized cost power and form factor (IC footprint
and thickness) potential TSMC is the acknowledged leader
in in process technology for manufacturing system-on-chip Spurred by the appetite for for higher performance to run artificial intelligence (AI) applications various complex software computation and higher resolution video the migration to advanced process technologies will continue to accelerate ● High Performance Computing (HPC) The HPC platform includes PCs tablets game consoles servers and base stations etc Major HPC unit shipments grew by 11% in in 2020 mainly driven by the COVID-19 “stay at home economy” and rapid 5G base station deployment The HPC market is projected to have
a a a high-single-digit unit growth growth in in in 2021 following its strong growth growth in in in 2020 Several factors are expected to to drive demand in the HPC platform including ongoing 5G base station deployment rising data center AI server demand and and next generation game console ramping All these require higher performance and and power-efficient CPUs GPUs NPUs AI accelerators and and related-ASICs which will drive the overall HPC platform towards richer silicon content and more advanced process technologies