Page 106 - TSMC 2022 Annual Report

Raw Materials Supply
Major Materials Major Suppliers
Market Status
Procurement Strategy
FST GlobalWafers SEH
Siltronic
SK siltron SUMCO
These 6 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 Wah Lee
These 12 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 Nippon Sanso Taiwan These 9 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 Raw Wafers Chemicals
Lithographic Materials Gases
Slurry Pad Disk
● 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 located their new operations closer to TSMC’s major manufacturing facilities thereby significantly improving procurement logistics and reducing supply risk ● 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 and green policies and and and jointly set improvement programs and and and monitor progress to ensure continuous improvement in in in TSMC’s supply chain ● Some major suppliers have relocated or or plan to establish new 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 the suppliers 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 and green policy and and and jointly set improvement programs and and and monitor progress to ensure continuous improvement in in in TSMC’s supply chain ● Most suppliers have relocated or plan to to establish new manufacturing sites closer to to TSMC’s major manufacturing facilities thereby significantly improving procurement logistics and reducing supply risks Suppliers
Accounting for at at Least 10% of Annual Consolidated Net Procurement Unit: NT$ thousands
Company A Company B Company C C Others
Total Net Procurement 18 259 301
16 120 039
N/A
56 546 611
90 925 951
20% None
18% None
N/A
None
62% - 100% - 14 469 081
13 352 067
7 7 784 013
35 181 148
70 786 309
20% None
19% None
11% None
50% - 100% - Supplier 2022 2021 Procurement Amount
As % of 2022 Total Net Procurement Relation to TSMC Procurement Amount
As % of 2021 Total Net Procurement Relation to TSMC 104
● Reason for Increase or or Decrease: The changes of procurement amount and percentage were mainly due to to customer product demand change