Annual Reports  >  2013  >  Corporate Social Responsibility > Environmental, Safety and Health (ESH) Management
Environmental, Safety and Health (ESH) Management
繁中

TSMC believes its environmental, safety and health practices must not only comply with legal requirements, but also measure up to or exceed recognized international practices. TSMC’s ESH policy aims to reach the goals of “zero incident“ and “sustainable development,“ and to make TSMC a world-class company in environmental, safety and health management. The Company’s strategies for reaching these goals are to comply with regulations, promote safety and health, strengthen recycling and pollution prevention, manage ESH risks, instill an ESH culture, establish a green supply chain, and fulfill its related corporate social responsibilities.

All TSMC manufacturing facilities have received ISO 14001:2004 certification for environmental management systems and OHSAS 18001:2007 certification for occupational safety and health management systems. All fabs in Taiwan have also been TOSHMS (Taiwan Occupational Safety and Health Management System) certified since 2009.

TSMC strives for continuous improvement and actively seeks to enhance pollution prevention, power and resource conservation, waste reduction, safety and health management, fire and explosion prevention and minimize the impact of other risks, such as climate change, earthquakes, in order to reduce the overall environmental, safety and health risk.

In 2006, in order to meet regulatory and customer needs for the management of hazardous materials, TSMC began to adopt the IECQ QC 080000 Hazardous Substance Process Management (HSPM) System. All TSMC manufacturing facilities have been QC 080000 certified since 2007. By practicing QC 080000, TSMC ensures that its products comply with regulatory and customer requirements, including the European Union’s Restriction of Hazardous Substances (RoHS) Directive, EU Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), the Montreal Protocol on substances that deplete the ozone layer, the halogen free in electronic products initiative, and Perfluorooctane Sulfonates (PFOS) restriction standards.

Since 2011, TSMC adopted ISO 50001 Energy Management System for the continuous improvement of energy conservation. TSMC Fab 12 Phase 4 data center is Taiwan’s first facility to earn the ISO 50001 certification for a high density computing data center. As of early 2014, TSMC has three fabs – Fab 12 Phase 4/5/6, Fab 14 Phase 3/4 and Fab 15 – that earned the ISO 50001 certifications. Other TSMC fabs also implement energy management measures consistent with ISO 50001.

TSMC regularly communicates with suppliers and contractors regarding environmental, safety and health issues and encourages them to improve their ESH performance. In line with this policy, TSMC uses priority work management and self-management to govern work performed by contractors. TSMC requires contractors performing high-risk operations to complete certification for technicians, and to establish their own OHSAS 18001 safety and health management system before bidding on contracts. This self-management is aimed at increasing the sense of responsibility of TSMC’s contractors, with the goal of promoting safety awareness and technical improvement for all contractors in the industry.

TSMC collaborates with suppliers to improve the sustainability of the Company’s supply chain regarding ESH-related issues such as carbon and water footprinting, and conflict mineral management. TSMC not only performs on-site ESH audits at its suppliers manufacturing sites, but also proactively assists them with improving ESH performance.

Reducing the carbon and water footprints of TSMC’s supply chain is essential to the Company’s green supply chain ideals. Since 2009, TSMC has required suppliers to set up their carbon inventory procedures. Since 2010, TSMC collaborated with selected suppliers to set up product carbon footprints and has received PAS2050 certifications for 6-inch, 8-inch and 12-inch finished wafer.

TSMC also monitors potential water shortages in the supply chain and investigates the supply chain’s water inventory. TSMC is also preparing to work with suppliers on water footprinting and conservation plans. The ESH management programs of TSMC suppliers are tied to a sustainability index that includes three components: the Green Index, the Social Index and the Risk Index. The “Green Index“ includes environmental management systems, regulatory compliance, hazardous substance management, conflict mineral investigation, greenhouse gas inventory, carbon footprinting, water footprinting and other green activities. The “Social Index“ includes labor and ethical conduct and participation in social activities. Both of the “Green“ and “Social“ indexes are consistent with the Electronic Industry Citizenship Coalition (EICC) code of conduct. The “Risk Index“ includes safety and health management, fire prevention, natural disaster mitigation, IT interruption recovery, transportation reliability, supply chain management, pandemic response planning and a business continuity plan. This sustainability index is applied to TSMC’s critical suppliers.

Environmental Protection

Greenhouse Gas (GHG) Emission Reduction

TSMC is an active participant in international environmental regulatory and protection programs. TSMC achieved its voluntary PFC emissions reduction goal as per its commitment to the World Semiconductor Council (WSC) and the Taiwan Environmental Protection Administration (EPA) in 2010.

In 2005, TSMC was Taiwan’s first semiconductor company to make a complete inventory of its GHG emissions and to gain ISO 14064 certification for its processes and outputs. The purpose of the inventory was to serve as a baseline reference for TSMC’s strategy to reduce GHG emissions, to meet future domestic regulatory requirements, and to prepare for carbon trading and corporate carbon asset management. All TSMC facilities conduct an annual GHG. The inventory result shows that the major direct GHG emissions are perfluorinated compounds (PFCs), which are used in the semiconductor manufacturing process. The primary indirect GHG emission is electricity consumption.

TSMC is taking measures to reduce its emission of GHGs. TSMC endorsed a memorandum of understanding between the Taiwan Semiconductor Industry Association, the Taiwan EPA, and the WSC, whereby TSMC committed to reducing PFC emissions to 10% below the average of 1997 and 1999 by 2010, a commitment that it was proud to achieve. This emissions target remains fixed as TSMC continues to grow and expand its manufacturing facilities.

TSMC is active in WSC’s activities to set up a global voluntary PFC emissions reduction goal for the next 10 years, and has integrated past experience to develop best practices. The implementation of best practices for new semiconductor fabs has been adopted by WSC for the major element of the 2020 goal. In 2013, according to the “EPA Early Actions for Carbon Credit of Greenhouse Gases Reduction“ regulation, TSMC applied for the recognition of greenhouse reduction that committed to the WSC and EPA, and has received carbon credits from 2005 to 2011. Those carbon credits can be used to offset greenhouse gas emissions of new manufacturing facilities regulated by Environmental Impact Assessment (EIA) Act. It will mitigate climate change risk to support the Company’s sustainable operation.

Coal-fired power generators are the major source of electricity in Taiwan and emit large amounts of carbon dioxide (CO2). TSMC has not only adopted energy-conserving designs for both its manufacturing fabs and offices, but has also continuously improved the energy efficiency of facilities during operation. These efforts simultaneously reduce both carbon dioxide gas emissions and costs.

Air and Water Pollution Control

TSMC has installed effective air and water pollution control equipment in each wafer fab to meet regulatory emissions standards. In addition, TSMC maintains backup pollution control systems, including emergency power supplies, to lower the risk of pollutant emission in the event of equipment breakdown. TSMC centrally monitors the operations of air and water pollution control equipment around the clock and tracks system effectiveness to ensure the quality of emitted air and discharged water.

To make the most effective use of Taiwan’s limited water resources, all TSMC fabs make an effort to increase water reclamation rates by adjusting the water usage of manufacturing equipment and improving wastewater reclamation systems. New fabs are able to reclaim more than 85% of process water, meeting or exceeding the standards of the each Science Park Administration and outperforming most semiconductor fabs around the world. TSMC also strives to reduce non-manufacturing-related water consumption, including water used in air conditioning systems, sanitary facilities, cleaning, landscaping and kitchens. TSMC uses an intranet website to collect and measure water recycling volumes company wide.

Since water resources are inherently local, TSMC shares its water saving experiences with other semiconductor companies through the Association of Science-Based Industrial Park to promote water conservation. At the same time, TSMC collaborates with the Science Park Administrations to assist small facilities in each Science Park with water resource management in order to achieve the Science Park’s goals and ensure a long-term balance of supply and demand.

Waste Management and Recycling

TSMC has established a designated unit responsible for waste recycling and disposal. To meet the goal of sustainable resource utilization, TSMC’s first priority is to reduce process waste before considering recycling or disposal. TSMC carefully selects waste disposal and recycling contractors and performs annual audits of certification documents, site operations and transportation routes to ensure the legal and proper disposal of waste. TSMC achieved a 92.41% waste recycling rate in 2013, surpassing its goal of 90%. The Company’s landfill rate has remained at less than 1% since 2008.

Environmental Accounting

The purpose of TSMC’s environmental accounting system is to identify and calculate environmental costs for internal management. At the same time, we can also evaluate the cost reduction or economic benefits of environmental protection programs so as to promote economically efficient programs. With environmental costs expected to continue growing, environmental accounting can help us manage more effectively. TSMC’s environmental accounting measures define the various environmental costs and set up independent environmental account codes, then provide these to all units for use in annual budgeting. This online system can output data for environmental cost statistics.

Our economic benefit evaluation calculates cost savings for reduction of energy, water or wastes and waste recycling benefits according to our environmental protection programs.

The environmental benefits disclosed in this report include real income from projects such as waste recycling and savings from major environmental projects. In 2013, 92 environmental projects were completed and the total benefits including waste recycling are more than NT$1,451 million.

2013 Environmental Cost of TSMC Fabs in Taiwan

Unit: NT$ thousands

Classification

Description

Investment

Expense

1. Direct Cost for Reducing Environmental Impact

  (1) Pollution Control

Fees for air pollution control, water pollution control, and others

4,303,659

3,139,691

  (2) Resource Conservation

Costs for resource (e.g. water) conservation

1,904,749

106,175

  (3) Waste Disposal and Recycling

 

Costs for waste treatment (including recycling, incineration and
landfill)

-

426,887

2. Indirect Cost for Reducing Environmental
Impact (Managerial Cost)

(1) Cost of training (2) Environmental management system and certification expenditures (3) Environmental measurement and
monitoring fees (4) Environmental protection product costs
(5) Environmental protection organization fees

306,030

190,105

3. Other Environment-related Costs

(1) Costs for decontamination and remediation (2) Environmental damage insurance and environmental taxes (3) Costs related to environmental settlement, compensations,
penalties and lawsuits

-

-

Total

6,514,438

3,862,858

2013 Environmental Efficiency of TSMC Fabs in Taiwan

Unit: NT$ thousands

Category

Description

Efficiency

1. Cost Saving of Environmental Protection Projects

Energy saving: completed 35 projects

665,300

Water saving: completed 11 projects

95,900

Waste reduction: completed 5 projects

10,100

Material reduction: completed 41 projects

499,000

2. Real Income of Industrial Waste Recycling

Recycling of used chemicals, wafers, targets, batteries, lamps, packaging materials, paper cardboard, metals, plastics, and other wastes

181,000

Total

1,451,300

Other Environmental Protection Programs

TSMC conducts “Product Life Cycle Assessments“ (Product LCA), collecting and analyzing data from the entire semiconductor manufacturing chain from raw materials suppliers to finished products, including statistics for such items as energy, raw material consumption, and pollution. The Product LCA study has established “Eco-Profiles“ for all TSMC fabs and helps the Company to meet international regulations, such as the European Union’s “Energy-Using Product“ directive. These “Eco-Profiles“ can also be provided to customers who require such documentation.

TSMC also maintains “green procurement“ procedures, requiring raw materials suppliers to declare that the materials they supply to TSMC do not contain any prohibited substances. This ensures that products manufactured by TSMC comply with customer requirements and the regulatory requirements of the European Union’s RoHS Directive. TSMC also encourages employees to use “Green Mark“ products in offices, such as recycled paper, desktop PCs, LCD monitors, and batteries. In 2013, TSMC received the Best Green Procurement Company Award from Taiwan EPA.

TSMC has adopted both the Taiwan “Green Building“ and the U.S. Leadership in Energy and Environmental Design (LEED) standards for new fab and office building designs since 2006 to achieve better energy and resource efficiency than conventional designs. At the same time, TSMC continues to upgrade existing office buildings to comply with the LEED standard each year. From 2008 to 2013, eleven of TSMC’s fabs and office buildings achieved LEED certifications (one Platinum, ten Gold class). Six of them also won Taiwan’s EEWH Diamond class certification.

TSMC believes that manufacturing companies should convert their facilities into green factories to effectively improve the environment and lower construction costs. Therefore, TSMC freely shares its practical experience with industry, government, and academia. As of the end of 2013, more than 6,297 visitors from 159 different industry, government, academia and general community groups contacted TSMC to gain understanding on the Company’s green factory practices. TSMC led industry to support the Taiwan government to establish “Green Factory Labeling System“ from 2009, a system that included “Clean Production Evaluation System“ and “Green Factory Evaluation System“. TSMC received Taiwan’s first “Green Factory Label“ from the government and four labels in total for Fab 12 Phase 4, Fab 14 Phase 3, Fab 14 Phase 4, and Fab 12 Phase 5.

Environmental Compliance Record

As of, 2014, TSMC had not received any environmental penalties or fines during or related to 2013 and early 2014.

Green Products

TSMC collaborates with upstream material suppliers and downstream assembly and testing service providers to reduce environmental impact. We reduce the resources and energy consumed for each unit of production to provide more advanced, efficient and ecologically sound products. 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 our customers and our 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 our manufacturing technologies, our customers’ designs are realized and incorporated into peoples’ lives. These chips 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. We have listed below several examples of how TSMC-manufactured products significantly contribute to society and the environment.

Environmental Contribution by TSMC Foundry Services

1. Providing New Process Technology to Achieve Lower Power Consumption

  • The continuous development of TSMC’s advanced semiconductor process technologies follows Moore’s law, which holds that process technology moves forward one generation every 24 months. In each new generation circuitry line widths shrink, making circuits smaller and lowering the energy and raw materials consumed per unit area. At the same time, the smaller IC die size consumes less power. TSMC’s 28nm technology, for example, can accommodate approximately four times the number of electronic components as the 55nm technology. ICs made with 28nm technology in active or standby mode consume roughly one third the power of 55nm products, according to our internal test results. The Company continuously provides process simplification and new design methodology based upon its manufacturing excellence to help customers reduce design and process waste.

  • TSMC continues to lead the foundry segment in technology, having achieved volume production at the 28nm node. TSMC’s 28nm processes include 28nm High Performance (28HP), 28nm High Performance Low Power (28HPL), 28nm Low Power (28LP), and 28nm High Performance Mobile Computing (28HPM). Customer 28nm production tape-outs are more than double the number of 40nm customer tape-outs. The TSMC 28nm process also has surpassed the previous generation’s production ramp and product yield at the same point in time due, in part, to closer and earlier collaboration with customers. TSMC will continue to encourage customer designs that result in the most advanced, energy-saving, and environmentally friendly products.

  • TSMC quickly ramped its 28nm technology in 2013. The 28nm contribution to revenue grew significantly from 12% in 2012 to 30% in 2013, representing approximately NT$180 billion, or US$6 billion. This reflects the fact that TSMC’s advanced manufacturing process technology helps the Company achieve both profitable growth and energy savings.

    28nm Contribution to Total Revenue

    Unit: %
    2009 2010 2011 2012 2013
    - - 1 12 30
  • TSMC continues to deliver performance-per-watt scaling in its 20nm SoC and 16nm FinFET process technologies. With energy-efficient transistors and interconnects, the 20nm SoC process can reduce total power consumption of the 28nm process by one third, and by migrating from planar to FinFET technology, the 16nm FinFET process can further reduce total power consumption to about 40% of 28nm technology. The 20nm SoC process was qualified in 2013 and produced first silicon success on multiple customer production tape-outs. The 16nm FinFET process entered risk production in 2013.

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2. Manufacturing Power Management ICs with the Highest Efficiency

  • TSMC’s leading manufacturing technology helps its customers design and manufacture green products. Power management ICs are the most notably green IC products. Power management ICs are the key components that regulate power consumption in all electronic devices. TSMC’s analog power technology research and development team uses 6-inch and 8-inch wafer fabs to develop Bipolar-CMOS-DMOS and Ultra-High Voltage technology, producing industry-leading power management chips with more stable and efficient power supplies and lower energy consumption for broad-based applications in the consumer, communication, and computer markets.

  • TSMC also provides power-efficient design platforms. Customers use these platforms to develop energy-saving products.

  • Power management ICs generate material revenue to TSMC’s industrial market segment. In 2013, TSMC’s HV/Power technologies collectively shipped more than 1.3 million customer wafers. In total, the Power management ICs manufactured by TSMC for our customers accounted for more than one-third of global computer, communication and consumer (3C) systems.

    HV/Power Technologies Shipments

    Unit: 8-inch equivalent wafer

    2009

    2010

    2011

    2012

    2013

    >400k

    >700k

    >800k

    >1,000k

    >1,300k

3. Green Manufacturing that Lowers Energy Consumption

  • TSMC continues to develop manufacturing technologies that provide more advanced and efficient manufacturing services. Improvements reduce per-unit energy consumption, resource consumption and pollutant generation. They also lower energy consumption and reduce pollution during product use. To see the total energy savings benefits realized through TSMC’s green manufacturing, please refer to “Environmental Accounting“.

Social Contribution by TSMC Foundry Services

1. Providing Mobile and Wireless Chips 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. For example: (1) new process technology helps chips provide 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, which also leads to a smaller system form factor; (2) new process technology helps chips consume less energy. People can therefore use mobile devices for a longer period of time, increasing their convenience; and (3) with more convenient wireless connectivity, such as 3G/4G and WLAN/ Bluetooth, people communicate more efficiently with each other, can “work anytime and anywhere,“ significantly improving the mobility of modern society.

  • Mobile-related products, such as Baseband, RF Transceiver, AP (Application Processors), WLAN (Wireless Local Area network), NFC (Near Field Communication), Bluetooth, GPS (Global Positioning System) and others, represent more than 36% of TSMC annual revenue, reaching more than NT$213 billion or US$7.2 billion in revenue in 2013. TSMC’s growth in recent years was largely driven by the growing global demand for these mobile IC products.

    Contribution of Mobile-related Products to TSMC Total Revenue

    Unit: %

    2009

    2010

    2011

    2012

    2013

    25

    27

    31

    33

    36

2. Enhancing Human Health and Safety with MEMS (Micro Electro Mechanical Systems)

  • TSMC-manufactured ICs are widely used in medical treatment and health care applications. Through the Company’s advanced manufacturing technology, more and more IC products are providing major contributions to modern medicine. Customers’ MEMS products are used in a number of advanced medical treatments. MEMS are also widely used in preventative health care, such as early warning systems that limit the number of injuries to the elderly resulting from falls, systems that detect physiology changes, car safety system and other applications that greatly enhance human health and safety.

Safety and Health

Safety and Health Management

TSMC’s safety and health management is built on the framework of the OHSAS 18001 system, and adheres to the management principle of “Plan, Do, Check, Act“ to prevent accidents and protect employee safety and health as well as Company assets. TSMC fabs in Taiwan have also received TOSHMS (Taiwan Occupational Safety and Health Management System) certification.

Besides accident prevention, TSMC has established emergency response procedures to protect the lives of employees and contractors if disasters should occur, as well as to minimize the negative impact on society and the environment. TSMC continually communicates with its suppliers to ensure that potential risk in the operation of production equipment is minimized, and rigorously follows safety control procedures when installing production equipment. The Company places stringent controls on high-risk operations and also evaluates the seismic tolerance of its facilities and equipment to reduce the risk of earthquake damage.

TSMC believes that employees’ physical and mental health is not only fundamental to maintaining normal business operations but also part of a corporation’s responsibility.

In 2013, TSMC collaborated with government and academia to hold the third Labor Health Forum. The theme of the 2013 forum is “industry, government, and university collaboration to improve occupational health,“ a response to the new Occupational Safety and Health Act signed in July, 2013. This legislation introduces new requirements in corporate occupational health risk management and also strengthens corporate responsibility to protect the physical and mental health of employees.

The Labor Health Forum was founded in 2011 by TSMC and the NTU College of Public Health for the business community to discuss occupational health issues, and has become a major annual event in this field for enterprises in Taiwan. In 2013, China Steel Corp., CPC Corp., LCY Chemical Corp., Uni-President Enterprises, and Chimei Innolux Corp. were invited to join as co-sponsors of the event. We specially added the form of a “global citizen cafe,“ a brainstorming session between business, universities, and government to discuss how to collaborate and adopt the most up-to-date knowledge and methods in occupational health, and fulfill the spirit of the Occupational Health and Safety Act. Through enthusiastic discussion, the six participating industries each collected points of consensus to serve as guidelines for future action in occupational health.

TSMC also developed occupational management tools tailored for TSMC by industry-academic cooperation, including the promotion of personnel stress management and the measurement of radio frequency (RF) exposure to wireless network antennas and mobile phone in the offices. TSMC offers annual employee health examinations and consultation services as well as on-site clinics and a dental clinic for a better access to medical assistance.

In order to avoid infectious disease epidemics, TSMC has established company-level prevention committees and procedures for emergency response to infectious diseases outbreak.

Working Environment and Employee Safety Protection

TSMC’s ESH policy is focused on establishing a safe working environment, preventing occupational injury and illness, keeping employees healthy, enhancing every employee’s awareness and sense of accountability to ESH, and building an ESH culture. TSMC safety and health management operations apply to:

  • Hardware Equipment Safety and Health Management

In addition to meeting regulatory requirements and internal standards, as well as mitigating ESH-related risks when building or rebuilding facilities, TSMC also maintains procedures governing new equipment and raw materials, safety approvals for bringing new tools online, updating safety rules, seismic protection measures, and other safety measures.

  • Environmental, Safety and Health Evaluation of New Tools and New Chemical Substances

TSMC, as a technology leader in the worldwide semiconductor industry, operates many diversified process tools and new chemicals in the R&D stage. Before using those new tools and new chemicals, they are reviewed carefully by the “New tools and new Chemical Review Committee”. The purpose is to ensure that new tools are compliant with semiconductor industry’s safety standards (such as SEMI S2) and that new chemicals’ environmental, safety and health concerns can be well controlled, including engineering controls, application of personal protection equipment, and operational safety training during storage, transportation, usage, and disposal.

  • General Safety Management, Training and Audit

All TSMC manufacturing facilities hold environmental, safety and health committee meetings on a monthly basis. TSMC takes preventive measures such as controls on high-risk work, contractor management, chemical safety management, personal protective equipment requirements, and safety audit management. In addition, TSMC also maintains detailed disaster response procedures and performs regular drills designed to minimize harm to employees and property, as well as the impact on society and the environment in the event of a disaster.

  • Working Environment Measurement

TSMC conducts workplace hazard assessment and interventions to provide a comfortable and safe workplace to Company employees. TSMC also requires employees to use personal protective equipment (PPE) to prevent hazard exposures.

As office work is primarily performed on computers, TSMC launched an office ergonomics program to adjust the height of office chairs and desks to meet the needs of taller or shorter employees. Whenever new employees of significantly above or below-average height enter the Company, the assessment and intervention will be initiated proactively by site ESH professionals.

TSMC requires that all new tools meet SEMI-S8 requirements and that appropriate supplementary control measures be taken to reduce ergonomic risk. Moreover, TSMC endeavors to automate 300mm front-opening unified pod (FOUP) transportation to prevent accumulative damage caused by long-term manual handling of 300mm FOUPs. TSMC 300mm fabs have achieved 99.9% in automatic transportation control.

TSMC performs semi-annual workplace environment assessments of physical and chemical hazards, including CO2 concentration, illumination, noise, and hazardous chemical substances regulated by domestic laws. When abnormal measurements or events happen, site ESH professionals will conduct onsite observation and interventions to ensure exposure risk acceptable. TSMC also conducts Indoor Air Quality Program to set up indoor air quality standard, measurement, and control measures to continuously provide a safer and more comfortable workplace.

  • Emerging Infectious Disease Response

TSMC has a dedicated corporate ESH organization which monitors emerging infectious diseases around the world, assesses any potential impact on the workplace and provides a strategic response plan. In previous outbreaks (such as SARS in 2003 and the H1N1 influenza outbreak in 2009), TSMC convened the Corporate Influenza Response Committee to develop the Company’s strategies. These strategies include educating employees in prevention and response, publishing guidelines for managers, establishing guidelines for employee sick leave due to flu, and installing alcohol-based hand sanitizers at appropriate locations. The Committee also monitors the status of employee leave due to illness and, at the same time, develops a continuous plan to address manpower shortages as well as minimize business impact.

  • Emergency Response

The planning and execution of an effective emergency response requires big-picture thinking, continuous improvement and practice drills. TSMC’s emergency response plans include procedures for rapid response to accidents and disaster recovery as well as establishing response procedures for potential disasters.

All TSMC fabs conduct major annual emergency response exercises and evacuation drills. TSMC’s Tainan-site fabs initiated quarterly spot drills, which have been recognized as good practices. TSMC’s on-site service contractors also participate in emergency response planning and exercises to ensure cooperation in handling accidents and to effectively minimize any damage caused by disasters.

In addition to the regular emergency response drills held by engineering and facilities departments each quarter, the Company’s laboratory, canteen, dormitory, and shuttle bus personnel also hold emergency response drills to prepare for events such as earthquakes, chemical leakage, ammonia release, fires and automobile accidents.

  • Employee Health Enhancement

Workplace stress and employee health have recently become new topics of concern for the government, society, employers, and employees as areas that require further attention and effort. The TSMC Employee Assistance Program (EAP) provides free individual counseling sessions, group sharing, workshops, and mental assessment, as well as lectures on personal and family issues to take care of employees’ well-being.

Health promotion activities for employees include fitness programs, women’s health care programs, mother’s rooms, body weight control programs, sleep problem management, massage and chiropractic services, hepatitis and flu vaccinations, and health lectures. TSMC believes employees who are physically and mentally fit can enjoy a better quality of life and be more productive.

Supplier and Contractor Management

  • Supplier Management

As a means of enhancing its supply chain management, TSMC is committed to communicating with and encouraging its contractors and suppliers to improve their quality, cost effectiveness, delivery performance and sustainability on environmental protection, safety and health. By means of communication between senior managers, site audits and experience sharing, TSMC collaborates with major suppliers and contractors to enhance partnership and ensure continual improvement for better performance and increased joint contributions to society. Contractors performing high-risk activities must lay out clearly defined safety precautions and preventative measures. In addition, contractors working on high-risk engineering projects must establish OHSAS 18001 systems and the workers must successfully complete work skill training.

  • Supply Chain Sustainability

TSMC has been working together with our suppliers in several fields of sustainable development, such as greening our supply chain, carbon management for climate change, mitigation of fire risk, ESH management and business continuity plans for natural disasters. In 2013, TSMC announced our sustainability standard for suppliers through benchmarking with EICC Code of Conduct standard as operating principles and encouraged our suppliers to create sustainable value in these fields. To enhance the supply chain sustainability and partnership with our suppliers, TSMC also shared its experience and practice to assist suppliers in the field of anti-quake engineering, hazardous chemical management etc.

TSMC is subject to the new U.S. SEC disclosure rule on conflict minerals released under Rule 13p-1 of the U.S. Securities Exchange Act of 1934. As a recognized global leader in the hi-tech supply-chain, we at TSMC acknowledge our corporate social responsibility to procure our minerals from conflict-free areas.

TSMC is one of the strongest supporters of the Electronic Industry Citizenship Coalition (EICC) and the Global e-Sustainability Initiative (GeSI), which will help our suppliers source conflict-free materials. TSMC in general supports the humanitarian and ethical principles contained in the OECD’s Model Supply Chain Policy for a Responsible Global Supply Chain of Minerals from Conflict-Affected and High Risk Areas issued in 2011. The Company encourages suppliers to source from facilities or smelters that have received a “conflict-free“ designation by a recognized industry group, such as the EICC, and also requires suppliers to disclose information on smelters and mines in 2013. TSMC adopts and follows global semiconductor industry conflict minerals procurement practices such as sourcing from the same suppliers used by other semiconductor companies. To date, TSMC is conflict-free for gold, tantalum, tin and tungsten because according to the results of our reasonable inquiry into the country of origin of these minerals as defined under relevant law, TSMC has not used any of these conflict minerals from the Democratic Republic of Congo and/or its surrounding countries. It is TSMC’s goal to strive use tantalum, tin, tungsten and gold in our products that are DRC conflict-free. TSMC will continue to renew its supplier survey annually and require suppliers to improve and expand their disclosure to fulfill regulatory and customer requirements.