TSMC Annual Report > 2016 > Operational Highlights > Customer Trust

Customer Trust

Customers

TSMC’s customers worldwide have a variety of successful product specialties and excellent performance records in various segments of the semiconductor industry. Customers include fabless semiconductor companies, systems companies, and integrated device manufacturers such as Advanced Micro Devices, Inc., Broadcom Limited, Huawei Tech, Intel Corporation, MediaTek Inc., NVIDIA Corporation, NXP Semiconductors N.V., OmniVision Technologies, Inc., Qualcomm Inc., Sony Corporation, Spreadtrum Communications, Inc., Texas Instruments Inc., and many more.

Customer Service

TSMC believes that providing superior service is critical to enhancing customer satisfaction and loyalty, which, in turn, is very important to retaining existing customers, strengthening customer relationships and attracting new customers.. With a dedicated customer service team as the main contact for coordination and facilitation, TSMC strives to provide world-class design support, mask making, wafer manufacturing, and backend services to provide customers an optimum experience and, in return, gain customer trust and sustain company profitability.

To facilitate customer interaction and information access on a real-time basis, TSMC-Online offers a suite of web-based applications that play an active role in design, engineering and logistics collaborations. Customers have 24/7 access to critical information and customized reports. Design collaboration focuses on content availability and accessibility, with close attention paid to complete, accurate and current information at each stage of the design life cycle. Engineering collaboration includes online access to engineering lots, wafer yields, wafer acceptance test (WAT) analysis, and quality and reliability data. Logistics collaboration provides access to data on any given order status in wafer fabrication, backend process and shipping.

Customer Satisfaction

To measure customer satisfaction and to ensure that our customer needs are appropriately understood, TSMC conducts an annual customer satisfaction survey (ACSS) with most active customers, either by web or interview through an independent consultancy.

Complementary to the survey, quarterly business reviews (QBRs) are also conducted by the customer service team so that customers can give feedback to TSMC on a regular basis. Through surveys, feedback reviews and intensive interaction with customers, TSMC is able to maintain close touch for better service and collaboration.

Customer feedback is routinely reviewed, analyzed and then used to develop appropriate improvement plans, all in all becoming an integral part of the customer satisfaction process with a complete closed loop. TSMC uses data derived from the survey as a base to identify future focus areas. TSMC acts on the belief that customer satisfaction leads to loyalty, and customer loyalty leads to higher levels of retention and expansion.

Customers that Accounted for at Least 10% of Annual Consolidated Net Revenue

Unit: NT$ thousands

Customer

2016

2015

Net
Revenue

As % of 2016 Total
Net Revenue

Relation to TSMC

Net
Revenue

As % of 2015 Total
Net Revenue

Relation to TSMC

Customer A

157,185,418

17%

None

134,117,206

16%

None

Customer B

107,463,238

11%

None

134,158,421

16%

None

Others

683,289,688

72%

 

575,221,741

68%

 

Total Net Revenue

947,938,344

100%

 

843,497,368

100%

 

Open Innovation Platform® (OIP) Initiative

Innovation has always been both an exciting proposition and a challenge. Competition among semiconductor companies is growing more intense in the face of increasing customer consolidation and the commoditization of technology at more mature, conventional levels. Companies must find ways to continue innovating in order to survive and prosper. One way to accelerate innovation is through active collaboration with external partners. At TSMC this is known as the “Open Innovation®” approach. It is an “outside in” approach to complement traditional “inside out” methods. TSMC has adopted this path to innovate via its Open Innovation Platform® (OIP) initiative, which is a key part of the TSMC Grand Alliance.

The OIP initiative is a comprehensive design technology infrastructure that encompasses all critical IC implementation areas to reduce design barriers and improve first-time silicon success. OIP promotes the speedy implementation of innovation amongst the semiconductor design community and its ecosystem partners with TSMC’s IP, design implementation and DFM (design for manufacturability) capabilities, process technology and backend services.

Crucial to OIP are ecosystem interfaces and collaborative components initiated and supported by TSMC that more efficiently empower innovation throughout the supply chain and, in turn, drive the creation and sharing of new revenue and profits. TSMC’s active accuracy assurance (AAA) initiative is key to OIP, providing the accuracy and quality required by the ecosystem interfaces and collaborative components.

TSMC’s Open Innovation® model brings together the creative thinking of customers and partners under the common goal of shortening each of the following: design time, time-to-volume, time-to-market and, ultimately, time-to-revenue. The model features:

  • the foundry segment’s earliest and most comprehensive EDA (electronic design automation) certification program, delivering timely design tool enhancement required by new process technologies
  • the foundry segment’s largest, most comprehensive and robust silicon-proven IP (intellectual properties) and library portfolio, and
  • comprehensive design ecosystem alliance programs covering market-leading EDA, library, IPs, and design service partners.

TSMC’s OIP alliance consists of 23 EDA partners, 43 IP partners, and 25 design service partners. TSMC and its partners work together proactively and engage much earlier and deeper than before in order to address mounting design challenges at advanced technology nodes. Through this early and intensive collaboration effort, TSMC’s OIP is able to deliver the needed design infrastructure with timely enhancement of EDA tools, early availability of critical IPs and quality design services when customers need them. Taking full advantage of the process technologies once they reach production-ready maturity is critical to customers’ success.

In September 2016, TSMC hosted an OIP ecosystem forum at the San Jose Convention Center in California, and another in October in Beijing, with keynote addresses from OIP ecosystem partners as well as TSMC executives. The forum was well attended by both customers and ecosystem partners and demonstrated the value of collaboration through OIP to nurture innovation.

TSMC’s OIP partner management portal facilitates communication with our ecosystem partners for efficient business productivity. Designed with a highly intuitive interface, this portal can be accessed via a direct link from TSMC-Online.