Page 90 - TSMC 2020 Annual Report

transportation AI EDA (engineering data analysis) AR (augmented reality) reality) and MR (mixed reality) reality) for remote collaboration all of which have enhanced the Company’s manufacturing advantages 5 5 3 5 5 Raw Materials and Supply Chain Management
In 2020 TSMC continued to review and and resolve supply supply issues issues and and quality issues issues as as well as as 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
Major Materials Major Suppliers Market Status
Procurement
Strategy
FST GlobalWafers SEH
Siltronic SUMCO
These 5 suppliers together provide over 90% of the 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 3M
AGC
Cabot Microelectronics DuPont
Fujibo
Fujifilm Electronic Materials Fujimi
These 7 companies are the major worldwide suppliers of CMP (Chemical Mechanical Polishing) materials Chemicals
Lithographic Materials Gases
Slurry Pad Disk
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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 are regularly reviewed to ensure that TSMC’s specifications are 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 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 088