Page 8 - TSMC 2022 Annual Report

006
Dear Shareholders The year year 2022 was a a a a a a a a a landmark year year for TSMC Supported by our strong technology leadership and and differentiation we delivered a a a a a a thirteenth-consecutive year of of record revenue revenue with strong profitable growth Our 2022 annual revenue revenue increased 33 5% year-over-year in in U S S dollar terms while our EPS rose to NT$39 20 nearly tripling over over the past three years These achievements were earned in the the face of considerable economic human and geopolitical challenges across the the world The year started with continued COVID-19 lockdowns conflict in in in Ukraine and and geopolitical tensions and and trade restrictions that severely disrupted global global supply chains Retreat of globalization and free trade fueled inflationary pressure around
the the the world increased macroeconomic uncertainty and impacted consumer confidence In the the the second half of the the the year pandemic-related demand such as as remote remote working and and and remote remote learning receded as as many parts of the world began to re-open and the semiconductor industry entered an an inventory correction mode The world also began to to focus more intently on on the the the importance of the the the semiconductor industry as it suddenly recognized the the the critical role semiconductors play in in in a a a a a a a a modern economy The rising tensions in in in geopolitics also accentuated the attention on on on on on a a a a a a a a resilient semiconductor supply chain and and the the key role it it plays in in in their economic and and national infrastructure security For TSMC we continued to focus on on the fundamentals of our our business We enriched our our R&D intensity and worked diligently on our technology development especially 2-nanometer to deliver full node strides in performance and power benefits to to to our our customers while offering the industry’s most advanced transistor scaling We also increased our our productivity and fab operations quality while successfully bringing our industry-leading 3-nanometer to high volume manufacturing
in in 4Q’22 We deepened our our our service and and expanded our our our capacity to to support our our our customers’ growth further earning their trust as as evidenced by higher scores in our our annual customer survey We enhanced our our cybersecurity systems and measures continuously to to rigorously protect customers’ IP and our our proprietary information As we entered our our third year of digital transformation we accelerated the pace to keep our employees connected and productive in a a a a a a a flexible work environment while protecting them from COVID infection with stringent anti-pandemic measures Despite the the the the recent macroeconomic uncertainties around
the the the the world the the the the fundamental structural growth trajectory in in the the the the long-term semiconductor demand remains strong underpinned by the industry’s multi-year megatrends of 5G and and High Performance Computing (HPC)-related applications Therefore we continuously work closely with our customers in in in a a a a a disciplined manner to plan our capacity based on on the long-term market demand profile and and and investing in in in in in leading edge and and and specialty technologies to support their structural growth As geopolitical tensions have arisen in different parts of the world our customers also start to to value more geographic manufacturing
manufacturing
flexibility in in in addition to technology leadership manufacturing
manufacturing
excellence low cost and trust of service quality Under this environment based on on customers’ request we are expanding our global manufacturing
footprint to to increase customer trust to to to expand our future growth opportunities and and to to to reach for global talents In Taiwan our N3 has just entered volume volume production in in in Tainan Science Park We are also preparing for N2 volume volume production starting in in in in 2025 which will be located in in in in Hsinchu and Taichung Science Parks