Page 19 - TSMC 2024 Annual Report

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cope with fluctuating demand dynamics Foundry vendors play an an an important role in in in in maintaining the health and effectiveness of the the supply chain As a a a leader in in the the foundry segment TSMC provides advanced technologies and large-scale capacity to complement the the innovations created in in in the the downstream chain 2 2 2 2 4 TSMC Position Differentiation and Strategy
Position TSMC is a a a a a global semiconductor foundry leader in advanced and and specialty technologies and and in in advanced packaging technologies In 2024 TSMC accounted for 34% of the Foundry 2 0 industry
which TSMC defined as all logic wafer manufacturing packaging testing mask-making and others output value an increase from 28% in in 2023 Net revenue
by geography calculated mainly on the country in in which customer companies are headquartered was: 70% from North America 11% from from China 10% from from the Asia Pacific region excluding China and and Japan Japan 5% from Japan Japan and and 4% from Europe the Middle East and Africa Net revenue
by platform was: 51% HPC 35% smartphones 6% the IoT and 5% automotive In addition 1% came from DCE while other segments accounted for the remaining 2% Differentiation TSMC’s leadership position is based on on three defining competitive strengths and a a a business strategy rooted in in the Company’s heritage The Company Company distinguishes itself from the competition through its technology leadership manufacturing excellence and customer trust As a a a technology leader TSMC is is consistently first among dedicated foundries to provide leading-edge next-generation technologies The Company also maintains a a a a a a leadership position in in more mature technologies by applying the lessons learned in in developing advanced technologies to enrich its specialty technologies Beyond process technology TSMC has established frontend and backend integration capabilities to create the optimum power/performance/area “sweet spot” to help customers achieve faster time to to production
TSMC well recognized for industry-leading manufacturing capabilities further extends its its leadership through its its Open Innovation Platform® (OIP) and and Grand Alliance initiatives The Company’s OIP initiative accelerates the pace of innovation in the the semiconductor design community and among the the Company’s ecosystem partners as as well as as in its own IP design and technology co-optimization (DTCO) capabilities process technology and backend services A key element is a a a set of ecosystem interfaces and collaborative components initiated and supported by the Company to more efficiently empower
innovation throughout the the supply chain and drive the the creation and and and sharing of of new revenue
and and and profits The TSMC Grand Alliance is one of the most powerful forces for for innovation in in the the semiconductor industry
bringing together customers electronic design automation (EDA) partners partners and IP partners partners along with the the partners in the the new TSMC 3DFabric® Alliance and and key equipment and and material suppliers – all to achieve new higher levels of collaboration collaboration Through this collaboration collaboration the Grand Alliance’s objective is to to help customers Alliance Alliance members and and TSMC improve competitiveness and and win business The foundation for customer trust is a a commitment TSMC made when it opened for business in in 1987 to never compete with its customers In keeping this commitment the Company has never designed manufactured or marketed any integrated circuits or IC devices under its its own name but instead has focused all of its efforts and resources on becoming the trusted foundry for its customers Strategy
TSMC is confident that its competitive advantages will enable it to prosper from the foundry segment’s many attractive growth opportunities For the five major markets namely high performance computing smartphones the Internet of Things automotive and and digital consumer electronics and and in response to to the the fact that the the focus of customer demand is shifting from a a process-technology-centric to a a product- application-centric approach the Company has constructed five corresponding technology platforms to to provide customers with comprehensive competitive logic process technologies specialty technologies IPs and and packaging and and testing technologies to to to to shorten customers’ time time to to to to design and time time to to to to market These five platforms are:
High Performance Computing (HPC): Driven by data explosion and AI application innovation HPC has become the key growth driver for TSMC’s business TSMC TSMC provides customers including both fabless IC design companies and system companies with leading-edge logic process technologies such as 2nm nanosheet (N2) 3nm FinFET FinFET (N3) 4nm FinFET FinFET (N4) 5nm FinFET FinFET FinFET (N5) 6nm FinFET FinFET FinFET (N6) and 7nm FinFET FinFET FinFET (N7) as as well as as comprehensive IPs including high-speed