Sustainability Stories | TSMC ESG Case Sharing

The Second TSMC International Biodiversity Forum and Award Ceremony: Driving a New Era of Ecological Co-Prosperity

TSMC protects nature and biodiversity through the "Eco Plus! Ecological Harmony Program" and views ecological talent development as crucial for building momentum for conservation. The Company partnered with the Taiwan Biodiversity Research Institute of the Ministry of Agriculture and the Taiwan Society of Plant Systematics to launch the "TSMC Biodiversity Scholarship and Proposal Grant." Entering its second year in 2026, the event added the "In-depth Cultivation Award" to accelerate the implementation of innovative ecological solutions. This year's event attracted submissions from 59 domestic and international organizations, including industry, government, academic, and research institutions, along with 410 participants. A panel of 147 judges selected 26 winning entries, which were honored at the "TSMC International Biodiversity Forum and Award Ceremony" held on October 30. The event brought together local and international experts in ecology for cross-disciplinary exchanges centered on "Nature-based Solutions (NbS)." The following day, the "Encountering Nature-based Solutions: NbS Habitat Restoration and Scientific Monitoring Practical Workshop" was launched for the first time. Led by domestic and international experts, the workshop guided winning teams and conservation partners to explore restoration methods and digital verification technologies, aiming to build self-healing resilience into Taiwan's ecology and cultivate sustainable vitality.

Opening Video for The 2nd TSMC Biodiversity International Forum and Award Ceremony

Exploring Donghaiku: TSMC's One-Day Local Volunteer Program Pioneers a New Model for Cross-Sector Collaboration and Shared Value

TSMC is committed to extending its sustainability mindset to the communities where its fabs operate. While pursuing steady growth in its core business, the Company continues to respond to local needs through diverse volunteer service models developed by the TSMC Charity Foundation. In 2025, TSMC launched its first "One-Day Local Volunteer Program," guiding employees to explore the natural and cultural landscapes surrounding TSMC sites and strengthen their sense of belonging. To deepen the impact of the program, the TSMC Charity Foundation partnered with TSMC's Human Resources organization, National Tsing Hua University's field research project in Hsinchu, and local teams to host the "Hsinchu Donghaiku One-Day Volunteer Program" in August 2026. The event brought together 204 TSMC volunteers from 20 fabs and departments, along with teachers and students from Hsinchu Bei-Men Primary School, which TSMC volunteers have long supported. The initiative expanded volunteer service from environmental conservation to local culture, agriculture, and ecology. It also encouraged employees to better understand and connect with the cities where they live and work, making that connection a new starting point for deeper local engagement.

TSMC Strengthens Supply Chain Inclusion Practices, Creating Common Benefit for the Industry

Improving the sustainability of the semiconductor industry is a vital part of TSMC's ESG practices. Through its self-built education platform, the TSMC Supplier Sustainability Academy, the Company shares a wide range of learning resources free of charge with suppliers and the public, leveraging the power of knowledge to strengthen the value of mutual benefit. Following the launch of three interactive bilingual courses covering ESG, SDGs, and human rights issues, TSMC further introduced two thematic courses, "Introduction to TSMC Global Inclusive Workplace (GIW)" and "Meet Employee Resource Groups (ERGs)" in the second quarter of 2026 to collaborate with suppliers in practicing an inclusive culture. In addition, a GIW & ERG Quick Start online micro-course was launched for employees and officially integrated into mandatory onboarding training in the third quarter, helping new hires establish a foundational understanding of an inclusive workplace and further strengthening their sustainability capabilities.

TSMC's New Breakthrough in "Using Waste to Treat Waste" Yields More Than NT$10 Million in Green Benefits

TSMC is committed to becoming a global benchmark enterprise for environmental protection. Through the "High-Value Resource Action Plan," the Company converts waste resources into products that meet the high quality standards for reuse within its fabs. In order to utilize  iron-containing waste etchant generated from advanced packaging and testing processes, the Facility department independently developed reclamation technology. Leveraging the coagulation and precipitation characteristics of iron ions, the team successfully converted the waste liquid into a ferric chloride substitute chemical that can be reused in wastewater treatment for fabs, realizing the green innovation goal of "using waste to treat waste." As of October 2026, this technology has been introduced to Advanced Backend Fab 3, Advanced Backend Fab 5, and Advanced Backend Fab 6. The Company has reduced outsourced waste liquid treatment by a total of 920 metric tons, saved 280 metric tons of purchased chemicals, and reduced carbon emissions by 140 metric tons, creating a comprehensive economic benefit of NT$19 million per year and demonstrating the broad value of resource circulation.

TSMC's Make-Up Air Unit Scrubbing Tech 2.0 Cuts Power Consumption by another 60%

Guided by the vision of United Nations Sustainable Development Goal 7 (SDG 7), "Affordable and Clean Energy," TSMC proactively drives energy efficiency. The Company targets a 7.5% cumulative energy saving rate from 2026 to 2030 through new initiatives, and tracks progress in its annual sustainability reports. To maximize these savings, TSMC launched the "Unleashing the Energy-Saving Potential of Make-up Air Units" program, an award-winning project from the TSMC ESG AWARD. Partnering with suppliers, TSMC upgraded its MAU scrubbing tech 1.0, which already provided 80% energy savings, to MAU scrubbing tech 2.0. By retrofitting the MAU spray system with high-wettability wet film plates, the new technology utilizes gravity-fed water flow instead of pump pressurization. While maintaining the same cleaning performance, this upgrade reduces pump power from ten horsepower to four horsepower, achieving an additional 60% in inherent energy savings. As of October 2026, MAU scrubbing tech 2.0 has completed operational verification at Fab 6 and Advanced Backend Fab 7. It will be deployed across all 12-inch fabs to strengthen green manufacturing capabilities. From Pressurization to Gravity: A Breakthrough in Scrubbing TechnologyIn cleanroom operations, the MAU removes micro-pollutants using wet film plates. TSMC's previous MAU scrubbing tech 1.0 replaced high-pressure atomizing nozzles with wet film absorption, expanding the gas-water contact area to achieve an initial 80% energy savings. To drive further efficiency, TSMC collaborated with suppliers on MAU scrubbing tech 2.0, shifting the focus from material optimization to a redesign of the mechanism. The new design replaces pressurized nozzle racks with gravity-fed water distributors. By utilizing hydrostatic pressure from gravitational potential energy, the scrubbing water flows naturally and evenly saturates the wet film plates, upgrading the process from pressurized to gravity scrubbing. As a result, the circulation pumps were changed from pressurized spraying to simple water transfer, effectively lowering operating pressure and power consumption. In addition, the team calculated and verified the optimal water flowrate and wet film thickness  based on the properties of airborne molecular contaminants (AMCs). Leveraging the plates' high hydrophilicity, the system ensures excellent filtration and removal of micro-pollutants.

TSMC Launches Inaugural "Sustainability in Action" Publication, Creating a New ESG Communication Experience

To address stakeholders' diverse needs for sustainability information, TSMC uses its Sustainability Report as the primary platform for presenting annual ESG achievements and management practices, while building a wide range of communication channels to enhance information accessibility. In addition to offering a "Report Builder" that helps readers download chapters based on topics of interest, the Company adopted Generative AI technology in 2026 to develop an "AI Search" feature to retrieve information more efficiently. At the same time, TSMC initiated a redesign of its Sustainability Report Highlights, renaming the publication Sustainability in Action—a storytelling-driven format designed to resonate with readers. The Company also released an animated highlights video to help readers quickly grasp annual performance highlights, demonstrating its commitment to transparent disclosure and shared value with stakeholders.

TSMC 2025 Sustainability Report Highlights Video

Music Resonance and Game-Based Learning: TSMC ESG Warm-Up Campaigns Engage More Than 700,000 Participants

To help sustainability culture to take root and thrive, TSMC drives a series of empowerment programs using three strategies: "Knowledge Construction, Innovation Cultivation, and Responsive Action." Among these initiatives, the TSMC ESG AWARD serves as a core platform to drive innovation, encouraging employees to propose ideas linked to TSMC's five ESG directions: Drive Green Manufacturing, Build a Responsible Supply Chain, Create a Healthy and Inclusive Workplace, Develop Talent, and Care for the Underprivileged. The TSMC ESG AWARD also recognizes the sustainability achievements of organizations across the Company. As the 7th TSMC ESG AWARD opened for submissions this year, TSMC introduced two innovative warm-up campaigns under the themes of "music resonance" and "game-based learning": "THE ESG IDOL" and “ESG Lucky 7." Through singing performances and knowledge challenges, the campaigns transformed the meaning of TSMC's five ESG directions into highly interactive experiences. The campaigns successfully engaged all domestic and overseas organizations, with cumulative participation exceeding 700,000 participants, building strong momentum for the 7th TSMC ESG AWARD.

Embedding ICIC Core Values, TSMC Builds a Shared Culture Across the Globe

As TSMC expands its global presence, the Company is working to build a shared understanding of its corporate core values of Integrity, Commitment, Innovation, and Customer trust (ICIC) among employees from diverse cultural backgrounds. In 2026, TSMC established the TSMC Corporate Culture Strategy, guided by ICIC and built around two complementary approaches: the A.B.C.C. Framework, and practices throughout the employee lifecycle. The Culture Team traveled to different regions and worked closely with TSMC Arizona Corporation, TSMC North America, TSMC Europe B.V, and TSMC Japan Limited to develop annual culture strategies tailored to each location, making ICIC a common language across borders. In October, TSMC is also launching its internal Culture Hub website, creating a one-stop resource for employees around the world to learn about the Company's culture, build a stronger sense of connection, and develop the resilience needed for sustainable operations.

TSMC Adopts Nanobubble Cleaning to Create Environmental and Operational Synergies

TSMC actively practices sustainable water resource management. In response to its global manufacturing expansion and the stringent cleanliness standards of advanced processes, TSMC proactively enhanced its piping and equipment cleaning procedures. Starting in 2025, the Company introduced Nano-bubble Cleaning Technology. This method utilizes nano-bubbles to adsorb microscopic particles and leverages the micro-impact forces generated when bubbles burst. Coupled with TSMC's self-developed "Real-time Bubble Quality Monitoring and Auto-tuning Mechanism," this technology successfully reduced piping particles and impurities by 70% and halved chemical usage, shortening the tool qualification schedule for new fab construction by up to 35 days. As of September 2026, this technology has been deployed at Fab 12A and the Global R&D Center. Once the technology is fully implemented across all 12-inch wafer fabs in Taiwan, it is projected to save 760,000 cubic meters of ultra-pure water annually (equivalent to the volume of 304 Olympic-sized swimming pools) and generate approximately NT$100 million in green value, creating win-win for both environmental sustainability and company growth.Smart Monitoring Ensures Both Quality and EfficiencyChemical supply systems in wafer fabs require regular cleaning with ultra-pure water to maintain supply stability and process quality. To further optimize water efficiency as well as operational effectiveness, TSMC's facility team integrated nano-bubble cleaning technology with their operational experience in the factory, establishing a dual monitoring threshold for both "bubble quality" and "cleanliness." First, the system conducts real-time monitoring to verify the particle size, concentration, and surface charge of the nano-bubble. If they do not meet the criteria, parameters are automatically adjusted to their optimal state. Next, the level of cleanliness during the wash process is inspected, and the cleaning cycle is automatically restarted if process specifications are not met. This dual-closed-loop smart cleaning mechanism not only reduces chemical usage but also leverages automated controls to ensure every operation meets high quality standards.To scale the benefits of this technology, TSMC adopted a two-stage rollout strategy. The first phase focuses on the chemical mechanical planarization (CMP) slurry supply systems in existing 12-inch wafer fabs, deploying nano-bubble ultra-pure water (UPW) to eliminate residual microparticles in the pipelines. This not only improved cleanliness but also drove a 62% improvement in wafer defect reduction performance. The second phase expands the technology to production equipment and pre-wash tanks in new fabs. By fully optimizing cleaning workflows, the system qualification timeline was accelerated by 35 days, synergizing green manufacturing with rapid capacity expansion.

TSMC Publishes Five Theme Reports, Showcasing Progress in Shared Value

Upholding the principle of transparent disclosure, TSMC proactively responds to issues of stakeholder concern through a wide range of theme reports, transforming its practical experience in sustainability into ESG knowledge shared with the public. In addition to publishing non-financial reports for 27 consecutive years, in August 2026 the Company comprehensively updated and released its Materiality Analysis Report, Climate and Nature Report, Human Rights Progress Report, Sustainability Impact Valuation Report, and UN SDGs Action Report. These five theme reports not only consolidate the collective wisdom of cross-functional collaboration but also demonstrate the concrete results of TSMC internalizing sustainability thinking into its operations. Through these efforts, the Company hopes to exert its influence on the industry and collaborate with value chain partners to shape a brighter, more sustainable future of shared prosperity.