TSMC collaborated with the Industry, Science and Technology International Strategy Center, ISTI, at the Industrial Technology Research Institute to conduct quantification on the creation of added-value, resources utilization efficiency and industry-driven effect.
CASE STUDY

Moving Towards Common Good in Society; TSMC Helps Create 364,000 Job Opportunities

TSMC's Annual Added Value and Production Value Hit New Record Highs
M.L. Lo

TSMC has always strived to maximize its "Net Positive Impact" by gaining the trust of its stakeholders and fulfilling shared value in the society. The created by the Company is used as a measure of efficiency in the decision-making process to ensure continuous improvement, and to understand the effects it brings to the upstream and downstream supply chain.

Since 2015, TSMC has collaborated with the Industry, Science and Technology International Strategy Center (ISTI) at the Industrial Technology Research Institute to conduct annual research on the contribution of domestic resources to Taiwan's economy and society. The result of this research project is according to accessible annual report. It gives a comprehensive assessment of utilized by TSMC, carbon emissions, and the associated added value it creates.

Analysis of TSMC's Social and Economic Contributions from Using Domestic Resources in 2018

Record high added value

  • The added value TSMC creates has hit another record high. Compared to 2017, the added value grew by 4.85% to reach NT$792.9 billion in 2018.
  • In 2018, TSMC contributed about 4.46% to the national gross domestic product (GDP); reached 77% higher than the average level of the domestic industry (about 30%).

Resource utilization efficiency above industry average

  • The added value created by TSMC for each unit of electricity is about 1.8 times higher than the average level of the domestic industry.
  • The added value created by TSMC for each unit of water is about 4 times the average level of the domestic industry.
  • The added value created by 1 ton of TSMC's greenhouse gas (GHG) emissions is about 3.3 times higher than the average level of the domestic industry.

Industry-driven positive effect

  • In 2018, TSMC generated NT$1,023.9 billion of domestic production value and employed 43,000 employees.
  • In 2018, TSMC helped boost the domestic production value to NT$1,199 billion (1.95 times the domestic production value of TSMC) and created an additional 364,000 jobs (8.45 times the number of TSMC's employees in Taiwan).

Recent research revealed that both TSMC's production value and added value continue to grow. It not only drives the output of upstream and downstream supply chains, but also creates more job opportunities. Since advanced processes continue to evolve, the complexity of integrated circuit manufacturing increases, and the demand for water and electricity usage also grows. At a time when the Company creates economic value, TSMC also proactively engages in green innovations.

In terms of energy conservation and carbon reduction, TSMC will increase the proportion of renewable energy usage in TSMC through the purchase of renewable energy and the installment of renewable energy generators, to effectively reduce greenhouse gas emissions caused by the use of electricity and achieve its goal of GHG reduction. In terms of water usage, in addition to promoting water-saving measures within its fabs, TSMC will actively diversify its water resources, including the establishment of the "Tainan Science Park Reclaimed Water Plant" with manufacturers. Construction is expected to begin this year and will provide 20,000 tons of industrial reclaimed water per day. TSMC is committed to becoming a global leader in green manufacturing.