Page 109 - TSMC 2024 Annual Report

Raw Materials Supply 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 optimize cost and supply ● Most suppliers have located their new operations closer to TSMC’s major manufacturing facilities thereby 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 ● In order to effectively manage costs and supply chain TSMC has collaborated with suppliers and adopted various strategies ● TSMC encourages and collaborates with chemical suppliers to implement innovative green manufacturing improvement programs ● 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 ● 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 these 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 improving procurement logistics and reducing supply risks Major Materials Major Suppliers
Market Status
Procurement Strategy
A Company B Company C C Company D Company E Company Supply and and demand equilibrium
F Company G Company H Company I Company J Company Supply and and demand equilibrium
K Company L Company M Company N Company O Company Supply and and demand equilibrium
P Company Q Company R Company S Company T Company Supply and and demand equilibrium
U Company V Company W Company X Company Y Company Supply and and demand equilibrium
Suppliers
Accounting for at at Least 10% of Annual Consolidated Net Procurement in in 2024 and 2023
Unit: NT$ thousands
Company A Company B Others
Total Net Procurement 19 640 121
18 225 314
57 754 619
95 620 054
21% None
19% None
60% - 100% - 17 763 637
17 862 380
53 109 061
88 735 078
20%
20%
60% 100% None
None
- - Supplier 2024 2023
Procurement Amount
As % of 2024 Total Net Procurement Relation to TSMC Procurement Amount
As % of 2023
Total Net Procurement Relation to TSMC 107
● Reason for Increase or or Decrease: No significant change