TSMC professional counseling team made specific suggestions on work processes for suppliers
CASE STUDY

Continue Driving Local Supply Chain Upgrade

Stephanie Hsu
2018/7/2
Vivian Wu
2018/7/2

TSMC procurement categories are broadly divided into six categories: equipment, spare parts, raw materials, facility, IT and general affairs. In Taiwan, procurement in each plant is unified by headquarters in Hsinchu. TSMC (China), WaferTech and other subsidiaries have their own independent procurement organizations.

In order to strengthen cooperation with suppliers, TSMC has been promoting the localization of procurementNote1 for many years. In addition to increasing flexibility, shortening the development of new products and reducing unnecessary costs to ensure the quality and efficiency of service to customers, localization can also reduce supply chain carbon emissions and create more local employment opportunities. This is also why many suppliers have come to Taiwan to invest in production in response to TSMC’s call since 2004.

TSMC's current main production base is in Taiwan and we view enhancing the sustainability of the local semiconductor industry an important part of corporate social responsibility. We actively counsel major raw material suppliers to upgrade their technology and quality, thereby increasing the amount of local procurement. As an extension of TSMC's global supply chain, TSMC (China) will actively promote localization and help local suppliers enhance their capacity in a win-win situation.

Note 1: Localized procurement means the supplier is required to be engaged in manufacturing and processing
Note 2: In TSMC Taiwan, the tools localization plan is simply for back-end tools . Front-end tool's procurement mainly relies on imports
Note 3: In WaferTech (the United States), the tools procurement spending is mainly for process tool expansion and upgrade
Note 4: In TSMC (China), the tool's procurement currently 100% relies on imports

2017 Results of Local Suppliers Counselling