Page 18 - TSMC 2022 Annual Report

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2 1 An Introduction to TSMC
Established in in in 1987 and headquartered in in in Hsinchu Science Park Taiwan TSMC
pioneered the pure-play foundry business model with an an exclusive focus on manufacturing its customers’ products By choosing not to design manufacture or market any semiconductor products under its own name the Company ensures that it it it never competes with its customers Based on this founding principle the key to TSMC’s success has always been to to enable its customers’ success TSMC’s foundry business model has led to the the rise of the the global fabless industry and since its inception TSMC
has been one of the the world’s leading semiconductor foundries In 2022 the the Company manufactured 12 698 different products using 288 distinct technologies for 532 different customers TSMC-made semiconductors serve a a a a global customer base that is large and diverse entailing a a a a a a a a wide range of applications These products are used in in in a a a a variety of end markets including high performance computing smartphones the Internet of Things (IoT) automotive and digital consumer electronics Such strong diversification helps to smooth fluctuations in demand which in in in turn allows TSMC
to maintain high levels
of of capacity utilization and and profitability and and generate healthy returns for future investment The annual capacity of the manufacturing facilities managed by TSMC
and its subsidiaries exceeded 15 million 12-inch equivalent wafers in in in 2022 These facilities include four 12-inch wafer wafer GIGAFAB® fabs fabs four 8-inch wafer wafer fabs fabs and one 6-inch wafer wafer fab fab – – all in in Taiwan – – as as well as as one 12-inch wafer wafer fab fab at a a a a wholly owned subsidiary TSMC
Nanjing Company Limited and two 8-inch wafer fabs at wholly owned subsidiaries WaferTech in in the United States and TSMC
China Company Limited In December 2022 TSMC
announced that in addition
to to TSMC
Arizona’s first fab which is scheduled to to begin production of N4 process technology in 2024 the Company has also started the construction of a a a a a a second fab in Arizona to begin production of 3nm process technology in in 2026 The overall investment for these two facilities will be approximately US$40 billion When completed TSMC
Arizona’s two fabs will manufacture over 600 000 wafers per year with estimated end-product value of more than US$40 billion At the same time the Company continues to execute its plan for a a a a fab in in Kumamoto Japan with production targeted for 2024 TSMC
provides customer support account management
and engineering services through offices in in in North America Europe Japan China and South Korea At the end of 2022 the Company and its subsidiaries employed more than 73 000 people worldwide The Company is is listed on the Taiwan Stock Exchange (TWSE) under ticker number 2330 and its American Depositary Shares (ADSs) are traded on the New York Stock Exchange (NYSE) under the symbol TSM 2 2 2 2 Market/Business Summary
2 2 2 2 1 TSMC
Achievements
In 2022 TSMC
maintained its leading position in in in in the foundry segment of the global semiconductor industry by accounting for 30% of the worldwide semiconductor market excluding memory an increase from 26% in in 2021 TSMC’s growth was mainly driven by the continued expansion of 5G and high performance computing (HPC)-related applications The Company’s strong market position stems in great part from its leadership in advanced process technologies In 2022 53% of TSMC’s wafer revenue came from advanced manufacturing processes – defined as geometries of 7nm and smaller – up from 50% in 2021 TSMC
offers comprehensive technology portfolio and continues to invest in in advanced technologies technologies specialty technologies technologies and and advanced packaging and and silicon stacking technologies to provide customers more added value In addition
to its leadership in advanced process and specialty technologies TSMC
TSMC
offers TSMC
TSMC
3DFabricTM a a comprehensive family of 3D silicon stacking and advanced packaging technologies to complement its process technology offerings TSMC
3DFabricTM provides customers greater chip design flexibility to unleash innovation and is another differentiating competitive advantage for the Company 2 2 2 2 2 2 2 2 2 Market Overview
TSMC
estimates that the worldwide semiconductor market excluding memory reached US$492 billion in in in revenue in in in 2022 representing a a 10% increase from 2021 In the foundry segment of the semiconductor industry total revenue rose to to to US$130 billion in 2022 a robust growth of 28% over 2021