Page 6 - TSMC 2020 Annual Report

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Dear Shareholders 2020 was a a a a a a a a a a devastating year for the the entire world due to to the the COVID-19 pandemic and and and our thoughts and and and hearts go out to to all those who have been affected With the the spread of of COVID-19 millions of of lives were lost many cities entered lock down and the the world experienced massive economic and and societal disruptions However semiconductor industry demand remained resilient as as trends such as work-from-home and distance learning emerged to to to to help to to to to accelerate the digital transformation At TSMC our top priority is is to to to to protect the health and and safety of our our employees and and ensure our our global fab operations continue delivering to to customers While we have been successful so far we we will remain vigilant and and continue our utmost efforts to weather this pandemic For TSMC although 2020 was was a a a a a a a a a a a a a a year year of of extraordinary challenges it was was also a a a a a a a a a a a a a a year year of of significant growth and progress Facing upheaval brought by the global COVID-19 pandemic as as well as as geopolitical tensions we we worked dynamically with our customers and and doubled down our commitment to to technology leadership manufacturing excellence and and customer trust In 2020 we delivered an an an an an eleventh consecutive year of record revenue thanks to to strong demand coming to to our industry-leading 5-nanometer (N5) and and 7-nanometer (N7) technologies Our revenue increased 31 4% year-over-year in in US dollar terms as as compared to about 10% year-over-year growth for the semiconductor industry We continued to focus on on the fundamentals of our our our business in in in in in in 2020 by enriching our our our R&D infrastructures enlarging our our our talent pipeline strengthening our our information protection and and cybersecurity and and accelerating our our technology differentiation In 2020 fueled by the industry megatrends of 5G and high performance computing (HPC) applications both driving semiconductor content enrichment we increased our 2020 capital spending to US$17 2 2 2 billion As TSMC enters another period of higher growth we will will continue to to invest to to capture the opportunities that will will follow In 2020 we successfully ramped our our industry-leading N5 technology to to enable our our customers’ innovations for both smartphone and and HPC applications As the the foundry industry’s most advanced solution with the the best performance power and and area (PPA) N5 further expands our our customer product portfolio and and increases our our addressable markets In its third year of ramp our 7-nanometer family which includes N7 N7 N7+ and and N6 continued to see very strong demand across a a a a a a a a wide spectrum of of products from smartphone HPC Internet of of Things (IoT) and Automotive applications Our 3-nanometer technology technology will be another full node stride from our N5 and offer the the most advanced foundry technology technology in both PPA and transistor technology when it is is introduced In 2020 TSMC introduced 3DFabricTM an an umbrella of of the company’s fast-growing portfolio of of 3DIC system integration solutions under one family of technologies technologies Our differentiated chiplet and heterogeneous integration technologies technologies drive better power efficiency greater compute density and smaller form factor benefits for for our customers while shortening their time-to-market We are working with several product leaders on 3DFabricTM to enable chiplet architectures Highlights of TSMC’s accomplishments in 2020:
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Total wafer wafer wafer shipments were 12 12 12 4
million million 12-inch 12-inch equivalent equivalent wafers wafers as compared to 10 1 1 1 1 1 million million 12-inch 12-inch equivalent equivalent wafers wafers in in in 2019 Advanced technologies (16-nanometer and beyond) accounted for 58 percent percent of total wafer revenue up from 50 percent percent in 2019 We deployed 281 distinct process technologies and manufactured 11 617 products for 510 customers TSMC produced 24 percent percent of the world semiconductor excluding memory output value in in in 2020 as compared to to 21 percent percent in in in the previous year