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TSMC collaborates with its upstream material and equipment suppliers, design ecosystem partners and downstream assembly and testing service providers to minimize environmental impact. We reduce the resources and energy consumed for each unit of production and are able to provide more advanced, power efficient and ecologically sound products, such as lower-power-consumption chips for mobile devices, high-efficiency LED drivers chips for Flat Panel Display Backlighting and indoor/outdoor Solid State LED lighting, and "Energy Star" certified low standby AC-DC adaptors chips, etc. By leveraging TSMC's superior energy-efficient technologies, these chips are used for supporting sustainable city infrastructure, greener vehicles, smart girds, and so on. In addition to helping customers design low-power, high-performance products to reduce resource consumption over the product's life cycle, TSMC implements clean manufacturing practices that provide additional "Green Value" to customers and other stakeholders.

TSMC-manufactured ICs are used in a broad variety of applications covering various segments of the computer, communications, consumer, industrial and other electronics markets. Through TSMC's manufacturing technologies, customers' designs are realized and their products are incorporated into people's lives. These chips, therefore, make significant contributions to the progress of modern society. TSMC works hard to achieve profitable growth while providing products that add environmental and social value. Listed below are several examples of how TSMC-manufactured products significantly contribute to the environment and society.

Environmental Contribution by TSMC Foundry Services

Continue to Drive Technology to Lower Power Consumption and Save Resources
TSMC continues to drive the development of advanced semiconductor process technologies to support customer designs that result in the most advanced, energy-saving, and environmentally friendly products to support sustainability. In each new technology generation, circuitry line widths shrink, making transistors smaller and reducing product power consumption. TSMC's 28nm technology, for example, can accommodate approximately four times the number of electronic components as 55nm technology. ICs made with 28nm technology in active or standby mode consume roughly one-third the power of 55nm products, according to TSMC's internal test results.
TSMC has led the dedicated foundry segment in offering 28nm process technology and shipped over 4.5 million wafers to customers in total from 2011 to 2015. TSMC provides 28nm High Performance (28HP), 28nm High Performance Low Power (28HPL), 28nm Low Power (28LP), 28nm High Performance Mobile Computing (28HPM), 28nm High Performance Compact (28HPC) for mobile computing and 28nm High Performance Compact Plus (28HPC+) for mobile computing to meet customers' various needs for more advanced, energy-saving, and environmentally friendly products.
TSMC continues to deliver Performance-per-Watt scaling in its 20nm SoC (20SoC), 16nm FinFET Plus (16FF+), and 10nm FinFET process technologies. With energy-efficient transistors and interconnects, the 20nm SoC process can reduce total power consumption of the 28nm process by a third. By migrating from planar to FinFET technology, the 16FF+ process can further reduce total power consumption to about 30% of 28nm technology. TSMC's 10nm technology continues FinFET evolution for even better performance and lower power; total power consumption is only 20% of 28nm technology. TSMC's 16FF+ started volume production in mid-2015, only one year after the Company introduced 20nm technology. In addition, 10nm FinFET technology began customer product tape-out in the first quarter of 2016.
TSMC quickly ramped its 28nm and below technologies. Wafer revenue contribution from 28nm and below technologies grew significantly from 1% in 2011 to 48% in 2015. TSMC's objective is to continue our R&D efforts in 28nm and below technologies and to increase the wafer revenue contribution from 28nm and below technologies, helping the Company achieve both profitable growth and energy savings.

Provide Leading Power Management IC Process with the Highest Efficiency
TSMC's leading manufacturing technology helps customers design and manufacture green products. Power management ICs are the most notable green IC products. Power management ICs are the key components that regulate and supply power to all IC components. TSMC's analog power technology R&D team uses 6-inch, 8-inch and 12-inch wafer fabs to develop Bipolar-CMOS-DMOS (BCD) and Ultra- High Voltage (UHV) technology, producing industry-leading power management chips with more stable and efficient power supplies and lower energy consumption for broad-based applications in consumer, communication, and computer markets. TSMC's BCD is the best fit technology for high-efficiency LED drivers for Flat Panel Display Backlighting and indoor/outdoor Solid State LED lighting. In addition, TSMC's UHV with 400V~800V options is the best fit technology for green product applications, such as "Energy Star" low standby AC-DC adaptors, Solid State LED lighting, and high-efficiency DC brushless motors.
TSMC also provides analog and power-friendly design platforms. Customers use these platforms to develop energy-saving products.
Power management ICs generate material revenue to TSMC's industrial market segment. In 2015, TSMC's HV/Power technologies collectively shipped more than two million wafers to customers. In total, power management ICs manufactured by TSMC accounted for more than one-third of global computer, communication and consumer systems.

Green Manufacturing that Lowers Energy Consumption
TSMC continues to develop technologies for more advanced and efficient manufacturing services that reduce energy/resource consumption and pollution per unit as well as power consumption and pollution during product use. In each new technology generation, circuitry line widths shrink, making circuits smaller and lowering the energy and raw materials consumed for per unit manufacturing. In addition, the Company continuously provides process simplification and new design methodology based upon its manufacturing excellence to help customers reduce design and process waste to produce more advanced, energy-saving and environmentally-friendly products. To see the total energy savings and benefits realized in 2015 through TSMC's green manufacturing, please refer to "Environmental Accounting."

Social Contribution by TSMC Foundry Services

Unleash Customers' Mobile and Wireless Chip Innovations that Enhance Mobility and Convenience
The rapid growth of smartphones and tablets in recent years reflects strong demand for mobile devices. Mobile devices offer remarkable convenience, and TSMC contributes significant value to these devices, including (1) New process technology helps chips achieve faster computing speeds in a smaller die area, leading to smaller form factors for these electronic devices. In addition, SoC technology integrates more functions into one chip, reducing the total number of chips in electronic devices and resulting in a smaller system form factor; (2) new process technology also helps chips consume less energy. People can therefore use mobile devices for a longer period of time; and (3) with more convenient wireless connectivity such as 3G/4G and WLAN/Bluetooth, people communicate more efficiently and can "work anytime and anywhere," significantly improving the mobility of modern society.
Mobile computing related products, such as Baseband, RF Transceiver, Application Processors (AP), Wireless Local Area network (WLAN), imaging sensors, and Near Field Communication (NFC), Bluetooth, GPS (Global Positioning System) among others, represent 51% of TSMC wafer revenue in 2015. TSMC's growth in recent years has largely been driven by the growing global demand for these mobile IC products.

Unleash Customers' MEMS (Micro Electro Mechanical Systems) Innovations that Enhance Human Health and Safety
In addition to smartphones, tablets, and many other consumer electronic devices, TSMC-manufactured MEMS chips are widely used in medical treatment and health care applications. By leveraging the Company's advanced technologies, more and more chips for these applications are introduced to the market, providing major contributions to modern medicine. Customers' MEMS products are used in a number of advanced medical treatments as well as in preventative health care applications. Examples include early warning systems to minimize the injury from falls for the elderly, systems to detect physiological changes, car safety systems and other applications that greatly enhance human health and safety.

TSMC Collaborates with Suppliers to Reduce Product Environmental Impact Footprints

TSMC's products take both quality and environmental impact into account. We believe that green products need to consider the entire product life cycle, including raw material mining, transportation, product manufacturing, use, and waste disposal to thoroughly evaluate environmental impact. The product carbon footprint, water footprint, or other environmental impact footprints are important indicators in the environmental performances of products.

Therefore, we require good hazardous substance management, pollution prevention, energy saving, waste reduction and other clean production measures in our own factories. We also require and assist suppliers to do so, and even require suppliers to require their suppliers to do so, in order to establish a green supply chain.

Comply or Surpass International Product Environmental Laws

Product Hazardous Substance Management: By practicing QC 080000, TSMC ensures that products comply with regulatory and customer requirements, including:

The EU Restriction of Hazardous Substance (RoHS): Restriction of hazardous substances in electric products including Lead (<1000 ppm), Cd (<100 ppm), Hg (<1000 ppm), Cr6+ (<1000 ppm), PBB (<1000 ppm) and PBDE (<1000 ppm). The new RoHS 2.0 (EU) 2015/863 in 2015 added 4 new restricted substances: Bis (2-ethylhexyl) phthalate (DEHP) (<1000 ppm), Butyl benzyl phthalate (BBP) (<1000 ppm), Dibutyl phthalate (DBP) (<1000 ppm) and Diisobutyl phthalate (DIBP) (<1000 ppm). All TSMC products are compliant with EU RoHS. TSMC continues to develop "lead-free" bumping to fulfill customers' needs.
Halogen-free electronic products: In general, our customers request the concentration of Bromine and Chlorine in products to be less than 900 ppm respectively and less than 1500 ppm in total. All TSMC's products are in compliance.
Perfluorooctane Sulfonates (PFOS) restriction standards: TSMC has completely phased out PFOS from its process since 2010.
EU REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) directive: All TSMC's products are compliant with the REACH dangerous chemicals and SVHC (Substance of Very High Concern) limits.
EU Waste Electrical and Electronic Equipment (WEEE) Directive: This regulation is to require the recycling of electronic final products. TSMC's chips are recycled along with electronic final products after use by consumers.

In addition to current global regulations and customer requirements, TSMC continues to monitor international regulation trends to prepare for responses.

Leading Suppliers to Complete Product Carbon Footprint and Water Footprint

TSMC continues to encourage and assist suppliers to set up greenhouse gas (GHG) and water inventory procedures. We collaborated with upstream and downstream partners to complete 12-inch wafer and packaged integrated circuit product carbon footprints, which passed third-party certification based on the British PAS2050 product carbon footprint standard in 2011. In 2012, TSMC also completed a product water footprint third party certification. In 2015, we continue to promote and establish product carbon footprints and water footprints, and completed product carbon footprint and water footprint for all fabs in 2015 and received ISO 14067 and ISO 14046 third party certifications respectively. We not only can provide related information to customers but also can continue to promote carbon reduction and water saving in the supply chain and TSMC from a life cycle point of view.

According to the 2015 TSMC wafer product carbon footprint and water footprint inventory results, the wafer manufacturing stage accounts for 76% of the carbon footprint and 72% of the water footprint, while raw material production stages account for 24% and 28% respectively. Therefore, TSMC can effectively reduce product carbon footprint and water footprint by continuing to conduct carbon reduction and water saving in the wafer manufacturing process. TSMC also includes carbon reduction and water saving in our requirements to raw material suppliers. Please refer to the related chapters in this report for our approaches.

Product Packing Materials Management and Reduction

TSMC uses recyclable plastic and paper as packing materials for shipping products. These packing materials comply with EU regulations requiring lead, cadmium, mercury and chromium (IV) concentration of less than 100ppm, and also contain no polyvinylchloride (PVC).

We reuse packing materials as much as possible to control usage. TSMC recycles packing materials from products shipped to customers and testing and assembly facilities for reuse after cleaning. Packing materials from raw wafers are also reused in product shipping. Our wafer shipping boxes are mostly made from reused sources. These measures have reduced both packing material consumption and waste generation.

Your feedback on TSMC's progress is appreciated.

For more information or to provide feedback on our CSR strategy, please contact us at csr@tsmc.com.
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