Enhancing the resilience of sustainable operations within the supply chain is a key element of TSMC's five ESG directions. To ensure the safety of supplier facilities and minimize the risk of material supply disruptions caused by fires, TSMC proactively assists suppliers in establishing autonomous fire protection training mechanisms to strengthen fire prevention management. In 2024, TSMC introduced the "Supplier Public Hazardous Materials Site Counseling Program," targeting small and medium-sized critical high-risk suppliers that produce, use, or store public hazardous materials. Through four major steps—"Screening for Targets, Investigating Public Hazardous Materials Information, Conducting Inspections and Evaluations, and Establishing Solutions"—and in collaboration with third-party fire protection technical consultants, TSMC aims to enhance suppliers' hazardous materials management capabilities. As of June 2025, TSMC had completed counseling and implemented hardware improvements for ten suppliers, fostering a shared commitment sustainable operations.

Professional Guidance and Support to Enhance Protective Resilience

The gases and chemicals produced in the semiconductor supply chain often possess characteristics of hazardous materials, such as being flammable, explosive, or oxidizing. As a result, strict safety storage and control measures must be implemented. During audits of fire protection systems, the TSMC Supplier Healthiness Assessment Rectification Program (S.H.A.R.P.) team identified that some small and medium-sized suppliers faced challenges in compliance and self-management capabilities due to the complexity of regulations and directives related to hazardous materials and the suppliers' limited resources. To address these challenges, TSMC engaged an external fire protection consultant to assist suppliers in thoroughly examining whether their hazardous materials management practices complied with regulations. Additionally, improvement recommendations were provided for non-compliant items, effectively reducing fire risks. These improvement measures included enhancements to engineering designs, such as installing concrete ceiling and fire protection equipment in solvent rooms. Protective upgrades also included establishing fire zones, adding exhaust facilities, and replacing non-fireproof glass windows with non-combustible wall materials. Even after on-site inspections were completed, suppliers were encouraged to continue consulting with the fire protection expert to receive professional guidance and further enhance their safety management standards.

Building on the successful guidance and improvement of  ten suppliers, TSMC continues to strengthen protection mechanisms within its supply chain. By the end of December 2025, TSMC plans to assist an additional ten small and medium-sized suppliers in enhancing their hazardous materials management capabilities. Through collaborative efforts that benefit all parties, TSMC is committed to achieving an optimal balance between industrial development and public safety, working closely with suppliers to create a safer operational environment and drive mutual growth within the industry.