TSMC's "Material Value Extension Management Program": 30-50% Extension in Raw Material Lifecycles
To address the supply chain logistics challenges of increased raw material usage and longer transportation times from TSMC's global expansion, the Company has collaborated with 18 suppliers to launch the "Material Value Extension Management Program." This program focuses on improving resource efficiency by evaluating lifecycle extension for raw materials critical to five semiconductor processes: lithography, target, chemical, gas, and chemical mechanical polishing (CMP). As a result, the lifecycle of 15 raw materials has been successfully extended by 30% to 50%, significantly reducing waste and carbon emissions while simultaneously bolstering supply chain operational resilience and sustainable risk control.
Enhancing Expiration Management, Maximizing Raw Material Efficiency
As TSMC's global footprint and advanced processes expands, the Company formed a cross-functional team in 2024, combining Material Management, Quality & Reliability, Fabs, and Facilities. This team, in partnership with 18 suppliers, initiated the "Material Value Extension Management Program" to better manage raw materials with short lifecycles. Focusing on five categories of materials, the program prioritizes non-corrosive, sea-shipped materials with shorter expiration dates. Through a rigorous four-step process of measurement analysis, simulation on equipment, quality inspection, and production line validation, TSMC assesses the feasibility of extending these materials' lifecycles to maximize their value.
Assessing the Feasibility of Extending Raw Material Lifecycles through Four Key Operational Processes
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Suppliers conduct comprehensive re-measurement and analysis of raw material samples to evaluate their stability, quality changes over time, and the potential for lifecycle extension
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Raw materials are tested in process equipment simulations to verify their performance in a production-like environment, ensuring compliance with TSMC's quality and performance standards post-extension
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TSMC's chemical analysis lab performs fingerprint analysis and performance validation spanning the target period to confirm sustained quality and consistency of raw materials throughout their prolonged validity
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Approved raw materials undergo final validation in a leading fab's high-standard production environment to ensure they meet all process and technical requirements after lifecycle extension
TSMC collaborates with suppliers to extend the value of raw materials, achieving an optimal balance between maximizing resource efficiency and maintaining stable quality. At the same time, this partnership reduces waste and lowers carbon footprint, driving collective efforts toward realizing our shared ESG vision.
Improving supply chain sustainability is key to strengthening TSMC's ESG efforts. The Company will continue partnering with suppliers to assess the lifecycles of diverse raw materials and transport methods. The goal is to achieve an optimal balance between efficient resource utilization and stable process quality, comprehensively optimizing expiration management and realizing mutual prosperity across the industry.
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