TSMC 2021
Sustainability
Report
Highlights
2021 Sustainability Report Highlights
Connect Sustainability with Innovation
Innovation is the foundation that keeps TSMC growing High-performance computing propels humanity to a future with AI Smartphones breaks the limitation of time and space and bridge us with the cloud and to freedom
TSMC Value & Sustainable Development Goals | Economy | Environment | Society | Appendix |
Mark Liu | Lora Ho |
Chairman and ESG Steering Committee Chairperson | Senior Vice President and ESG Committee Chairperson |
Advanced automotive electronics carry our imagination to the infinite world of mobility
IoT ushers in the era of smart cities and industrial 4.0 ESG is in the DNA of every TSMC employee
TSMC uses concrete action to connect people with people and with nature to welcome beautiful change
With an infinite stream of innovative technology solutions, TSMC strives to achieve sustainability and connect to a future of common good
Over the past two years, COVID-19 has continued to impact our world while the threat of extreme climate conditions has steadily increased. As a key player in the global semiconductor supply chain, TSMC has the responsibility of working with industry partners to take continuous action with regard to ESG (Environmental, Social and Governance) issues.
We work diligently to integrate the ESG ethos into our daily operations with the aim of sustainable development, formulating systematic management strategies, implementing related measures and reviewing action plans. Meanwhile, TSMC looks forward to working with partners and stakeholders from all walks of life to create a sustainable future.
I look forward to strengthening and expanding our sustainable actions to bring about innovative breakthroughs. The Sustainability Report that we compile each year keeps pace with global sustainability trends and has become a guide for organizations to continue advancing their ESG efforts.We expanded our information disclosure and external communications and continued to accumulate our ESG intellectual property. In addition to the existing EP&L Report and TCFD Report, TSMC also released, for the first time, Materiality Analysis Report and the UN SDGs Action Report. Sustainability is a journey without end. As the company continues to grow, we find ourselves with growing responsibilities as well. We will continue to hold true to our ESG vision to uplift society as we strive on forward with steadfast resolve.
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2021 Sustainability Report Highlights
TSMC Value & Sustainable Development Goals | Economy | Environment | Society | Appendix |
Innovation Value
Innovations for Sustainability
TSMC continues to advance semiconductor manufacturing technologies and services to enable our customers to unleash more than 12,300 chip innovations in 2021. These innovations make products more advanced, capable, intelligent, energy-efficient, and safer, allowing us to greatly increase quality of life and move towards a sustainable well-being society.
Technology Development Focuses
- Continue to drive semiconductor scaling for both logic and specialty technologies
- Continue to expand specialty technology offerings
- Continue to advance and expand TSMC 3DFabricTM technology offerings
Benefits to Customer Product Innovation
- Boost product computing power
- Increase product energy effificiency
- Enable smaller form factor
- Provide greater chip design flexibility
Customer Product/ Applications
Make communication more effective and work, play, and learn anytime and anywhere
- Application Processors (AP)
- Baseband
- RF Transceivers
- Wireless Local Area Networks (WLAN)
- CMOS Image Sensor (CIS)
- Near Field Communication (NFC)
- Bluetooth
- Global Positioning Systems (GPS), etc.
Enable 5G, Artifcial Intelligence (AI), cloud, and data centers for transferring and processing vast amounts of data anywhere and anytime
- Central Processing Unit (CPU)
- Graphics Processor Unit (GPU)
- Field Programmable Gate Array (FPGA)
- Server CPU
- Artifiicial Intelligence/Machine Learning (AI/ML) Accelerator
- Network Processing Unit (NPU)
- High-speedNetworking Chip, etc.
Empower innovations for artifcial intelligence of things (AIoT) and accelerate digital transformation to greener make a more convenient and greener living, and improve health care quality
- Microcontroller Unit (MCU)
- Application Processors (AP)
- Baseband
- RF Transceivers
- Wireless Local Area Networks (WLAN)
- CMOS Image Sensors (CIS)
- Near Field Communication (NFC)
- Bluetooth
- Embedded Flash Memory
- Radio Frequency Identifiication, (RFID) etc.
Make vehicles, including hybrid/ | Enable AI-powered smart devices |
electrical cars, safer, smarter, and | |
greener | ● Microcontroller Unit (MCU) |
● Microcontroller Unit (MCU) | ● Baseband |
● RF Transceivers | |
● Baseband | ● Wireless Local Area Networks (WLAN) |
● RF Transceivers | ● CMOS Image Sensors (CIS) |
● Wireless Local Area Networks (WLAN) | ● Near Field Communication (NFC) |
● CMOS Image Sensors (CIS) | ● Bluetooth |
● Near Field Communication (NFC) | ● Embedded Flash Memory |
● Radar | ● Power Management ICs |
● Ethernet Switches | ● Timing Controllers (T-CON) for Smart 8K/4K Digital TV (DTV) |
● Power Management ICs, etc. | ● 4K Streaming Set-top Box (STB)/Over-the-top (OTT) |
● Digital Single-lens Refex (DSLR) Devices,and so on. |
Technology
PlatformsSmartphone
High Performance Computing | Internet of Things (IoT) | Automotive | Digital Consumer Electronics |
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2021 Sustainability Report Highlights
TSMC Value & Sustainable Development Goals | Economy | Environment | Society | Appendix |
Carry Out the UN Sustainable Development Goals
In 2022, TSMC published the first TSMC UN SDGs Action Report. In line with the reporting framework developed by the GRI, the report details how TSMC supports the 2030 Agenda for Sustainable Development through five principles of disclosure: Plans, Commitments,
ESG Directions
Drive Green
Manufacturing
Process & Reporting
TSMC identifies the link between SDGs, the five sustainability roles, and value chain stages through the following three steps: Understand & Prioritize SDGs, Goals & Integration, and Disclosure and Communication. Long-term goals and action plans are then formulated accordingly.
TSMC Sustainability Roles
An Innovation Pioneer
Actions, Progress, and Collaboration. Under the leadership of ESG Steering Committee Chairman Mark Liu, TSMC continued to spotlight nine SDGs: SDG 3 (Good Health and Wellbeing), SDG 4 (Quality Education), SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), and SDG 17 (Partnership for the Goals). TSMC has also deployed 44 ESG programs and 23 measurable long-term goals for 2030 to effect change through real action.
Build a Responsible
Supply Chain
Create a Diverse and Inclusive Workplace
1
Understand and
Prioritize SDGs
9
SDGs
Progres
Track
progress
Cooperation | Plan |
Cooperate with | Declare support |
stakeholders | for SDGs |
Upstream | TSMC | Customer |
Procurement | Operations | Use |
TSMC purchases TSMC ofers | TSMC provides | |
raw materials, | wafer fabrication | fully-produced |
equipment, | and packaging/ | customer |
and related | testing services | products |
services |
2
Goals and Integration
23
Long-term Goals
Commitment
Set
measurable
A Responsible Purchaser
A Practitioner of Green Power
Develop
Talent
goals
3
An Admired Employer
Care for the
Underprivileged
Disclosure and | |
Communication | |
Action | 44 |
Take actions | |
Sustainable Approaches |
Power to Change Society
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2021 Sustainability Report Highlights
TSMC 2030 Sustainability Goals
TSMC Value & Sustainable Development Goals | Economy | Environment | Society | Appendix |
Trending towards positive impact over past three years Trending towards negative impact over past three years
Shown signs of instability over the past three years or new/adjusted targets without previous data
Clean Water and Sanitation
Reduce Water Risks
Reduce unit water consumption (liter/12-inch equivalent wafer mask layers) by 30% (Base year: 2010)
Provide consultation on water reduction forsuppliers and reduce water consumption by a cumulative total of 35 million metric tons (Base year: 2020)
Raise Effluent Standards
Water pollution composite indicator 50% above effluent standards
Increase Usage of Reclaimed Water Increase more than 60% replacement of water resources with reclaimed water
Good Health and Wellbeing
Improve Medical Care to Seniors Living Alone
Ofer 12,000 services to senior citizens each year through Network of Compassion
Quality Education
Promote Filial Piety Among Youth
Affordable and Clean Energy
Manufacture with Greater Energy Efficiency | Use Renewable Energy |
Double energy efficiency after five years of mass | Starting from 3nm new fabs, renewable |
production for each process technology | energy accounts for more than 20% of energy |
Save 5,000 GWh cumulatively between 2016 and | consumption and the purchasing of renewable |
2030 through new energy-saving measures | energy to increase annually to achieve 40% |
Work with Suppliers Toward Energy Conservation | renewable energy company-wide |
Provide consultation on power reduction for suppliers and reduce energy consumption by a total of 1,500 GWh (Base year: 2018)
Promote filial piety education in 120 educational institutions
Youth Education and Talent
Empowerment
Invest NT$50 million or more into quality educational resources
Care for Children in Remote Areas
More than 10,000 hours in volunteer storytelling services each year
Help over 10,000 children in remote areas
Decent Work and Economic Growth
Offer Competitive Compensation
Maintain position above 75th percentile among industry peers in total compensation
Promote Workplace Safety
Disabling Injury Frequency Rate (FR): < 0.3
Disabling Severity Rate (SR): < 3
Incident Rate per 1,000 Employees: <0.20
All waste treatment vendors shall acquire ISO 14001 or other international EHS Management certification
Ensure 100% critical high-risk suppliers complete Safety and Health consultation
Assist all high-risk contractors obtain ISO 45001 certification for occupational safety and health management system
Ensure a cumulative total of 1,500 suppliers participate in the Environmental Safety and Health (ESH) training program (Base year: 2016)
Decent Work and Economic Growth
Strengthen Industry Sustainability
Ensure 100% Tier 1 suppliers complete the Sustainability Management Self-assessment Questionnaire
Ensure 100% critical suppliers receive Code of Conduct audits by RBA-certified agencies every 3 years
Audit a cumulative total of 30 suppliers ( ≧ 3 suppliers per year) for due diligence on responsible mineral sourcing
Ensure 980 critical high-risk suppliers receive S.H.A.R.P.audits at a pace of 100 suppliers a year
Support Local Suppliers
Ensure a cumulative total of 145 local raw materials suppliers receive consultation on process advancement and quality improvement (Base year: 2016)
Encourage 100% of major local raw materials suppliers and 75% of back- end packaging materials suppliers to participate in the Taiwan Continuous Improvement Award with 60% of them to advance to the finals
Industry, Innovation and Infrastructure |
Encourage Innovation |
Responsible
Consumption and Production
Reduce Industrial Waste Output Outsourced unit waste disposal per wafer ≦ 0.50 (kg/12-inchequivalent wafer mask layer
Promote Circular Economy Develop multiple types of electronics- grade chemicals for recycling within TSMC Reduce waste production among local major suppliers by 35% (Base year: 2014)
Improve Environmental Protection Reduce the unit air pollutant emissions by 60% (Base year: 2015)
Reduction rate of volatile organic gases > 99
Climate Action
Implement Adaptation Strategies to Climate Risks
Reduce unit GHG e missions compared to the base year (metric ton of carbon dioxide equivalent (MTCO2e)/12-inch equivalent wafer mask layer) by 30% (Base year: 2020), and restore GHG emissions to the 2020 level
Ensure 100% high energy consumption suppliers receive ISO 14064 GreenhouseGas Emission verification
0 days of production interruption resulted from climate disasters
Strengthen Supply Chain Climate Resilience
Ensure a cumulative total of 300 raw materials suppliers participate in the annual emergency response drill (Base year: 2016)
Responsible
Consumption and Production
Facilitate Health Management
0 cases of occupational disorders caused by exposure to chemicals
Society
Environment
Climate Action
Environmental/Energy-saving Volunteers Environment protection volunteers provide services of at least 1,200 times each year
Economy
Maintain TSMC's technology leadership and invest 8.5% of revenue R&D expenses | |
annually | |
Over 80,000 global patents granted | |
Over 200,000 trade secret registrations | |
In line with the Company's technology roadmap, TSMC provides customers with over | |
1,200 types of available wafer manufacturing and process technology, and over 170 | |
types of advanced packaging technology | |
Responsible | |
Consumption and Production | |
Chemicals Management | |
Develop the ability to analyze 100% of CMR (Carcinogenic, Mutagenic, and | |
Reprotoxic) substances and help the suppliers that supply materials with | |
potential risks develop the same capabilities | |
N-methylpyrrolidone (NMP) 100% replacement (Base year: 2016) | |
No process involves Perfuoroalkyl Substances (PFASs) that have more than four | |
carbons | 5 |
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TSMC - Taiwan Semiconductor Manufacturing Company Ltd. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 04:53:04 UTC.