Industry Localization Upgrade

TSMC views enhancing the sustainability of the local semiconductor industry an important part of corporate social responsibility. We actively counsel key raw material suppliers to upgrade their technology and quality, thereby increasing the amount of local procurement. TSMC will actively promote localization in the future and help local suppliers enhance their capacity in a win-win situation.

Strategies, Targets & Achievements

Strategies
  • Establish a counseling team assisting suppliers to enhance production and improve yield rate in order to strengthen sustainability
2016
2017
2020
CASE STUDY

TSMC Actively Counsel Local Suppliers to Improve Capability

TSMC Actively Counsel Local Suppliers to Improve Capability

During the process of innovation, TSMC cannot challenge and break through Moore’s Law without its suppliers’ support. To make its 10nm process ramp up smoothly, TSMC has encouraged our suppliers to join the "Raw Material Suppliers Capability Upgrade" improvement plan since 2015. Hundreds of field experts from the Material Management Division, Nano-Materials Center Department, Incoming Materials Quality & Reliability Department, Corporate ESH Division, Legal, and Waste Management teams worked hand in hand with our local suppliers to develop advanced node materials, improve quality and technology...

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CASE STUDY

TSMC and OSHA Cooperate to Improve Supply Chain Occupational Health

TSMC and OSHA Cooperate to Improve Supply Chain Occupational Health

On October 3, 2017, TSMC and the Ministry of Labor Occupational Safety and Health Administration (OHSA) jointly launched the "Semiconductor Supply Chain Safety and Health Promotion Project". OHSA Chief Secretary Gen-Qiang Hung and Fang-Ming Hsu, Director of the TSMC Environmental Protection and Safety and Health Division, co-chaired the project launch ceremony. Twelve TSMC parts cleaning, chemical production, and waste treatment suppliers attended the ceremony and declared their commitment to cooperate on the project and ensure that their working conditions are in full compliance with the regulations...

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CASE STUDY

TSMC Leads the Way by Establishing the Integrated Material Supply Ecosystem

TSMC Leads the Way by Establishing the Integrated Material Supply Ecosystem

In September 2017, TSMC was invited to join the Semiconductor Materials Forum held by SEMI Taiwan in the capacity of the chair of Taiwan Semi-Material Committee. The event saw the attendance of many world-leading semiconductor supply chain vendors including ASE group, UMC, ALFE, Atotech Taiwan, Dow Chemical, DuPont, Entegris, ECIC, Nanmat, SPIL, WahLee, ASPF, Senju, Solartech, Versum, ITRI-MCL and Linx Consulting...

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Continue Driving Local Supply Chain Upgrade

TSMC believes that the only way to drive the continuous growth of the local purchasing is to upgrade the capability of suppliers. We continuously drive local supply chain to upgrade. In 2016, TSMC reduced carbon dioxide emissions by 3,560 metric tons and our localized purchase value increased to NT$1.5 billion. In addition, we created more than 3,000 local jobs from 2004 to 2016.
Benefit Description

Reduce the Carbon Footprint
Through localized production, we reduce transportation costs and carbon dioxide emissions. In 2016, raw materials acquisition localization has reduced carbon dioxide emissions by 3,560 metric tons.

Ensure Technology Leadership
In addition to reducing the cost of localization and shortening the development time of advanced processes, the investment in R&D resources also promotes the upgrading of Taiwan’s semiconductor industry. In recent years, suppliers have set up R&D centers and training centers in Taiwan to increase the number of quality jobs.

Creating Local Employment Opportunities
Based on total purchase value of raw materials in 2016, TSMC localized purchase value increased to NT$1.5 billion and created more than 3,000 local jobs from 2004 to 2016.

Local Procurement Plan

TSMC has been promoting the localization of procurement for many years. In addition to increasing flexibility, shortening the development of new products and reducing unnecessary costs to ensure the quality of service to customers, localization can also reduce supply chain carbon emissions, promote green industry development and create local employment opportunities.

For more information, please read TSMC 2016 Corporate Responsibility Report:

Responsible Supply Chain - Industry Localization Upgrade

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