Page 17 - TSMC 2020 Annual Report

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● Internet of Things (IoT)
The Internet of of Things platform includes various types of of connected devices such as smart smart wearables smart smart speakers and and and surveillance systems Boosted by pandemic-driven demand IoT unit shipments grew 17% in 2020 with Bluetooth earphones smart smart wearables and smart smart health devices as the major growth drivers Looking ahead to 2021 IoT unit shipments will grow about 30% thanks to to the continued momentum of Bluetooth earphones smart smart watches and smart smart speakers In addition the pandemic is changing consumers’ life and and working styles further triggering more applications for disease management and prevention By adding more AI functions IoT devices will drive demand for more powerful yet lower power-consuming controllers connectivity ICs and sensors TSMC offers high-performance yet low-power process technologies to meet industry trends and help customers succeed in in the marketplace ● Automotive
Worldwide car unit sales fell 14% in 2020 as global economies were softened by the COVID-19 pandemic Car unit sales are projected to rebound however in in 2021 with growth in in the low-teens driven by expected recovery in global economies and the automotive market in particular Moving forward TSMC expects semiconductor content requirement driven by electric vehicles (EVs) advanced driver assistance systems systems (ADAS) and infotainment systems systems to fuel the demand for processors sensors analog and and power ICs TSMC offers a a wide variety of of process technologies to help customers compete and succeed in the automotive market ● Digital Consumer Electronics (DCE) DCE unit shipments fell 7% in 2020 Sales of TVs and set-top boxes exceeded expectation thanks to the “stay at at home economy” but other consumer products such as digital cameras continued to to decline due to to stagnant demand and and cannibalization by smartphones A slight rebound in in the overall DCE market is expected in in 2021 as as certain sub-segments such as as 4K and smart TVs continue to show positive growth In addition AI functions such as picture quality improvement and voice control are increasingly incorporated in in TVs With a a a a a a a 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 and 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 in in in in maintaining the health and effectiveness of the the supply chain As a a a leader
in in the the foundry segment TSMC provides advanced technologies and large-scale capacity to complement the the innovations created in in in the the downstream chain 2 2 2 2 4
TSMC Position Differentiation and Strategy
Position TSMC is a a worldwide semiconductor foundry leader
for advanced advanced specialty and advanced advanced packaging technologies In 2020 TSMC produced 24% of the world semiconductor excluding memory output value increasing from 21% in in in in 2019 Net revenue by geography based mainly on the country in in which customers are headquartered was: 62% from North America 11% from the Asia Pacific region excluding China and Japan 17% from from China 5% from from Europe the Middle East and and Africa and and 5% from Japan Net revenue by platform was: 48% from from the the smartphone 33% from from the the high performance computing (HPC) 8% from the Internet of Things (IoT)
and 3% from from automotive In addition 4% came from from digital consumer electronics and 4% 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 customer 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 capabilities TSMC extends its its leadership through its its Open Innovation Platform® and and Grand Alliance initiatives The Open Innovation Platform® initiative quickens the the pace of innovation in in in the the