Page 16 - TSMC 2024 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 a a a a world-leading semiconductor foundry In 2024 the Company manufactured 11 878 different products using 288 distinct technologies for 522 different customers TSMC-made semiconductors serve a a a a a global customer base that is large and diverse entailing a a a a a a a wide range of applications These semiconductor products are used in a a a variety of end markets including high performance computing (HPC) smartphones the Internet of Things (IoT) automotive and digital consumer electronics Such strong diversification helps to smooth fluctuations in in demand which in in turn allows TSMC
to maintain high levels of of capacity utilization and profitability and generate healthy returns for future investment The annual capacity of the manufacturing facilities managed by TSMC
and its subsidiaries approximately 17 million 12-inch equivalent wafers in in in 2024 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 two 12-inch wafer wafer fabs at two wholly owned subsidiaries – TSMC
Nanjing Company Limited and TSMC
Arizona Corporation one 12-inch wafer fab at a a a a a a a a TSMC’s majority-owned manufacturing subsidiary – Japan Advanced Semiconductor Manufacturing Inc (JASM) and two 8-inch wafer fabs at two wholly owned subsidiaries – TSMC
Washington and TSMC
China Company Limited TSMC
Arizona’s first fab has entered volume production of 4nm technology in fourth quarter of of 2024 The construction of of the the second fab fab is is is already completed This fab fab is is is in the the process of installing facility systems and will utilize 3-nanometer process technologies In 2024 TSMC
announced plans to build a a a a third fab at TSMC
Arizona to to meet strong customer demand leveraging the most advanced semiconductor process technology in the United States The third fab will produce chips using 2nm or or more advanced processes Also in in in 2024 TSMC
along with minority investors Sony Semiconductor Solutions (SSS) DENSO and Toyota announced further investment into JASM to to build a a second fab which is planned to commence construction in 2025 Together with its first fab which began volume production at the the end of 2024 the the overall investment in in JASM will exceed US$20 billion With both fabs JASM’s Kumamoto site plans to offer 40 22/28 12/16 and 6/7 nanometer process technologies for automotive industrial consumer electronics and HPC-related applications The Company began construction on on on a a a a specialty technology fab in in Dresden Germany in in 2024 This facility will manufacture TSMC’s 28/22 nanometer nanometer planar CMOS and 16/12 nanometer nanometer FinFET process technologies Outside of Taiwan TSMC
provides customer support account management and engineering services through its offices in in in North America Europe Japan China and South Korea At the end of 2024 the Company and its subsidiaries employed more than 83 000 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 2024 TSMC
maintained its leading position in in in in the IC manufacturing segment of the global semiconductor industry by accounting for 34% of the “Foundry 2 0” industry which TSMC
defines as all logic wafer manufacturing packaging testing mask-making and others an an increase from 28% in in in in 2023 The Company’s strong market position stems in great part from its leadership in advanced process technologies In 2024 69% of TSMC’s wafer revenue came from advanced manufacturing processes – defined as geometries of 7nm and smaller – up from 58% in 2023 TSMC
offers a a comprehensive technology portfolio and continues to expand its advanced technologies specialty technologies and and advanced silicon stacking and and packaging technologies to to meet customer demand and and provide more added value