Future R&D Plans

To maintain and strengthen TSMC's technology leadership, the Company plans to continue investing heavily in R&D. For advanced CMOS logic, the Company's 5nm and 3nm CMOS nodes continue progressing in the pipeline. In addition, the Company's reinforced exploratory R&D work is focused on beyond-3nm node; in areas such as 3D transistors, new memory, and low-R interconnect, on track to establish a solid foundation to feed into technology platforms. For 3D IC advanced packaging, innovations for energy-efficient sub-system integration and scaling provide further augmentation to CMOS logic applications. For specialty technologies, the Company has intensified its focus on new specialty technologies such as RF and 3D intelligent sensors targeting 5G and smart IoT applications. The Corporate Research function established in 2017 continues to focus on novel materials, process, devices, nanowires, memories, etc. for the long-term, beyond 8 to 10 years. The Company also continues to collaborate with external research bodies from academia to industry consortia alike with the goal of extending Moore's Law and paving the road to future cost-effective technologies and manufacturing solutions for its customers.

With a highly competent and dedicated R&D team and its unwavering commitment to innovation, TSMC is confident in its ability to deliver the best and most cost-effective SoC technologies to its customers and to drive future business growth and profitability for years to come.

Summary of TSMC's Major Future R&D Projects
Project Name Description Risk Production
(Estimated Target Schedule)
5nm logic technology platform and applications 5th generation FinFET CMOS technology platform for SoC 2019
Beyond-5nm logic technology platform and applications 6th generation FinFET CMOS technology platform for SoC 2021
3D IC Cost-effective solution with better form factor and performance for System-in-Package (SiP) 2018-2020
Next-generation lithography EUV lithography and related patterning technology to extend Moore's Law 2018-2020
Long-term research Specialty SoC technology (including new NVM, MEMS, RF, analog) and transistors for 8-10 year out horizon 2018-2025
The projects above account for roughly 70% of the total R&D budget for 2019, estimated to be around 9% of 2019 revenue.

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