Sustainability Stories | TSMC ESG Case Sharing

TSMC's Parts Localization Program Drives Over NT$2 Billion in Annual Output Value

TSMC firmly believes that a responsible supply chain is the cornerstone of sustainable corporate operations. To this end, the Company actively drives supplier transformation and upgrading, designating "increasing the proportion of locally sourced parts in Taiwan" as a long-term strategic objective, with execution progress disclosed in its sustainability report. To meet the stringent demands of advanced process technologies and enhance the research, development, and manufacturing capabilities of local suppliers, TSMC launched the "Parts Localization and Innovation Program" in 2024. This initiative follows a dual approach of financial support and technical guidance. In addition to subsidizing suppliers for acquiring precision equipment and optimizing their development capabilities, the program introduces a unique benefit recognition and rebate mechanism. This mechanism acknowledges the commercial value generated based on the actual quantity of parts procured and utilized by TSMC, which is then offset against the suppliers' equipment buy-back costs after five years, fostering a mutually beneficial, win-win collaboration model. As of February 2026, TSMC has collaborated with 12 suppliers to successfully develop 22 Continuous Improvement Process (CIP) solutions, which have reduced parts validation and development lead times by 50%. This initiative has driven an annual output benefit exceeding NT$2 billion, demonstrating the tangible impact of supply chain localization.

"TSMC Udreamer" Tenth Anniversary, One Hundred Mystery Shoppers Co-Create a Dream-Chasing Experiment

The TSMC Education and Culture Foundation is dedicated to cultivating talent, and its "TSMC Udreamer" project aimed at encouraging students to realize their dreams marked its 10th anniversary in 2025. Centered on the theme of "Off Track," the Udreamer project attracted 134 teams and 382 students from 60 colleges to enroll in its competition in 2025. Eight teams were shortlisted in the final round in December 2025, and were awarded total grants of NT$3 million. Furthermore, the Foundation partnered with the Taipei City government Department for Youth and the National Taiwan University's College of Design and Innovation to organize "Off Track: The Tenth Anniversary of the Udreamer Project Interactive Exhibition." The Exhibition features 11 salons and nine project showcases curated by nine Udreamers. Additionally, a "One Million Dream Fund" was established to empower the selected participants: one hundred mystery shoppers were recruited to engage with the nine Udreamer teams, voting on the fund's allocation to demonstrate their support for youth creativity and recognize their initiative. The three-day exhibition has attracted 2,500 visitors in total, opening doors to unlimited future possibilities for these youths to realize their dreams.

TSMC Hosts First "GIW Month" to Foster a Culture of Belonging

TSMC is committed to realizing its "People Vision," fostering inclusion through the "Global Inclusive Workplace Statement." From October to December 2025, the company held its inaugural "Global Inclusive Workplace Month (GIW Month)," focusing on "I Belong@tsmc" and "Inclusion with Allyship." This initiative brings together five Employee Resource Groups (ERGs) and external partners/allies for a variety of inclusion activities. In addition to observing international diversity-related holidays to strengthen support for diverse groups in different countries, Pride@tsmc also participated for the first time in LGBTQ+ parades in Taiwan and Phoenix, Arizona, USA. TSMC also collaborated with the international disability inclusion NGO Disability:IN to explore the challenges and opportunities of self-identification and identity, further deepening inclusive values. The two-month GIW Month saw a total of over 6,200 participants, strengthening employees' awareness of inclusion and self-realization.

TSMC's Chemical Waste Reuse Creates a New Model for Circular Economy

TSMC is committed to establishing green systems of circular economy. Through its "Electronic-Grade Chemical Recycling Program," it has successfully recycled and reused chemicals such as Isopropanol (IPA), Tetramethyl Ammonium Hydroxide (TMAH), and Cyclopentanone within its facilities. In 2025, the Company further collaborated with suppliers to develop waste liquid reuse technology for Propylene Glycol Monomethyl Ether (PGME) and Propylene Glycol Monomethyl Ether Acetate (PGMEA), widely used organic solvents in the photolithography process. Utilizing three key operational procedures—"source segregation management, process parameter optimization, and component spectral comparison"—the waste liquids are reprocessed into electronic-grade PGME/PGMEA that meets TSMC's quality specifications. In January 2026, this technology was successfully validated at Fab 15B and Fab 18A and is scheduled for implementation at Fab 14B, Fab 15A, Fab 15B, Fab 18A, and Fab 18B in Q2 2026. After full implementation, it is expected to reduce new liquid procurement by 16,000 metric tons annually and cut carbon emissions by 31,100 metric tons, realizing the value of cradle-to-cradle resource circularity.Waste Solvent Transforms into High-purity Raw Materials: A Breakthrough in Recycling TechnologyPGME/PGMEA are primarily used in the semiconductor photolithography process, typically as a mixed solvent for chip cleaning, photoresist dilution, and equipment cleaning. Previously, spent liquids were often resold to industrial markets such as coatings, inks, and textiles after initial separation of water and solids. As advanced processes evolve, the demand for PGME/PGMEA continues to increase. TSMC has partnered with suppliers to actively invest in waste liquid recycling and regeneration technologies and process optimization, creating a model for circular reuse of chemicals. First, addressing the challenge that differences in boiling points among various solvents in waste liquids can affect recovery and separation efficiency, as well as the purity of electronic-grade materials, TSMC collaborated with suppliers to establish a waste liquid source management mechanism to precisely segregate liquids of different purities. Second, by adjusting distillation column process parameters, organic impurities and metal ions are effectively removed, ensuring high-purity recovered raw materials and further improving esterification reaction yield. Furthermore, to ensure that recycled PGME/PGMEA meets electronic-grade standards, suppliers must perform organic component spectral comparisons  before shipment to ensure their performance and reliability meet semiconductor manufacturing requirements, ensuring both product quality and manufacturing stability.

TSMC 2024 Sustainability Report Highlights Video

TSMC 2024 Sustainability Report Highlights and Video Now Available Online, Elevating the Sustainability Experience

TSMC actively fulfills its responsibilities as corporate citizen, striving for excellence across the three dimensions of economy, environment, and society. Through the annual publication of the Sustainability Report, the Company responds to international trends and sustainability progress. In 2024, TSMC further unveiled its internal sustainability culture strategy and empowerment actions, strengthening employees' sustainability literacy and change management skills to address future challenges and shape a corporate sustainability culture that evolves with the times. To communicate efficiently with stakeholders and offer more ways to learn about TSMC’s performance highlights, the Company has also compiled the 2024 Sustainability Report Highlights and launched the Highlights Video, aiming to gather the strength of partners in all sectors to keep expanding influence and create a sustainable future.From Infographics to Video, A Comprehensive View of Annual HighlightsThe 2024 Sustainability Report Highlights starts with material issues, using infographics to present TSMC's annual key ESG achievements. It combines historical performance with progress toward long-term goals to show a trajectory of continuous improvement in sustainable development. At the same time, the video shares the actions and dedication behind selected sustainability projects, highlighting TSMC's commitment and determination. In addition, the Highlights include theme reports such as the Responsible Supply Chain Report and Human Rights Report, as well as multiple communication channels, providing readers with complete sustainability information.

TSMC Sports Day Levels Up Again, Setting a New Environmental Benchmark

TSMC actively promotes comprehensive health management, encouraging employees to strengthen their physical and mental well-being through three main pillars: "creating an excellent environment, supporting sports clubs, and promoting sports events." The Company has also become the first company in Taiwan to achieve ISO 20121 event sustainability management certification for its Sports Day. TSMC's Sports Day on November 8, 2025, continued to follow this standard. In addition to sustainable practices across six major dimensions —"green energy, sustainable consumption, waste and carbon reduction, promoting sustainable values, reuse and recycling, and safety management"—TSMC Sports Day has also collaborated with partners to transform recycled resources into sportswear since 2024. This initiative reduces carbon emissions by 40% compared to using virgin materials. For TSMC Sports Day 2025, approximately 77,000 Polo shirts and 9,000 sets of sportswear were produced. This is equivalent to recycling about 1.13 million PET bottles and 100,000 plastic bags, resulting in a total carbon reduction of approximately 69 metric tons and water savings of about 2,300 cubic meters, demonstrating environmental friendliness and the value of a circular economy. 37,000 People Gather, Hitting a Home Run  for a New Era of SustainabilityTSMC views sports as an important medium for conveying and practicing the spirit of sustainability. This year's TSMC Sports Day was themed "Globalization," and the "Home Run" starting gun ceremony for the track and field events symbolized the company's determination to implement ESG concepts across all its global fabs, opening a new chapter of sustainability. This year's event attracted over 37,000 employees and their families and friends, with teams from all overseas sites present for the first time, demonstrating TSMC's "One Team" spirit. The carnival featured diverse experiences inspired by the five continents, ranging from Taiwanese sugar blowing art and lantern riddles to American Cowboys, Japanese Kendo, and European Curling, allowing every participant to experience the charm of cultural integration through interaction, and broaden their international horizons.In addition, TSMC integrates sustainability concepts into the design of its sportswear. As early as 2024, in collaboration with partners, the company focused on three major aspects—"carbon reduction, plastic reduction, and water conservation"—to reach environmentally friendly goals. To ensure that the sportswear meets both environmental requirements and excellent quality, TSMC strictly controls every stage from material sourcing to finished product manufacturing. At the initial stage of production, the first batch of products was sampled and sent to a third party for composition and material inspection. Concurrently, warehouse inspections are conducted according to the Acceptable Quality Limit (AQL) standard, and the progress of partner factories is tracked weekly. Through this systematic supervision mechanism, TSMC achieved a win-win situation for both environmental protection and quality.

TSMC's 6th ESG AWARD Receives over 5,800 Proposals, Igniting Sustainability Passion

TSMC is committed to strengthening its sustainability culture by supporting employees' innovative ideas that connect with the Company's five ESG directions through the TSMC ESG AWARD, and recognizing organizations with sustainability achievements in making a positive influence. Since 2020, the TSMC ESG AWARD has entered its 6th year with participation and submissions growing each year. In 2025, 100% of domestic and overseas organizations participated, attracting 719 thousands participants, with total proposals increasing 34.9% from the previous year to 5,841 submissions. To better integrate TSMC's overseas organizations, this year's Poster Exhibition continues to offer both in-person and virtual displays, and has specially added on-site guided activities to help ESG leaders  and coordinators visiting Taiwan during the exhibition period to gain a deeper understanding of the 330 shortlisted proposals and sustainability achievements. Additionally, this year marks the first time an Appreciation Dinner was held after the Award Ceremony, inviting ESG coordinators from domestic and overseas organizations who have won the ENTHUSIASTIC PROMOTION AWARD, OUTSTANDING CONTRIBUTION AWARD, and EMPOWERMENT & ENGAGEMENT AWARD to participate, thanking them for their ceaseless efforts in promoting the Company's sustainability culture development and creating positive changes.

TSMC's CoWoS® Sustainability Drive: Turning Waste into Wealth, Saving NT$700 Million with Recycled Wafers

Driving a circular economy is a cornerstone of TSMC's sustainable operations. As production capacity expands, demand for TSMC's CoWoS® (Chip on Wafer on Substrate) advanced packaging technology is experiencing rapid growth. As a result, the consumption of dummy dies – essential for reinforcing the structural stability of packaging – has also surged. To enhance resource efficiency, TSMC has partnered with suppliers to develop a specialized processing technology. This innovation successfully re-engineers scrap wafers from the front-end process which would otherwise be discarded into dummy dies that meet the stringent specifications and quality requirements of the back-end process. As of December 2025, dummy dies re-manufactured from recycled wafers are expected to be integrated into Advanced Backend Fab 3, Advanced Backend Fab 5, and Advanced Backend Fab 6. This initiative is estimated to reduce carbon emissions by 10,205 metric tons annually and generate an impressive green benefit of NT$746 million, marking a new milestone in resource regeneration.Innovative Recycling Process Gives New Life to Scrap WafersCoWoS® technology involves stacking and integrating multiple chips onto a wafer and substrate. During the packaging process, dummy dies are crucial for maintaining structural stability, and are typically cut from new wafers. To improve resource circularity, in 2024, TSMC's Materials Supply Chain Management Organization, in collaboration with the Advanced Packaging Technical Board & Module Excellence Division, joined forces with suppliers to research and develop a recycling and regeneration process for front-end scrap wafers. This led to the creation of a rigorous screening, grinding, cleaning, and inspection protocol. This meticulous process ensures that the quality of recycled wafers meets the precise specifications required for dummy die production in CoWoS® technology, achieving both sustainable resource utilization and green innovation.

"TSMC Honey Project" Restores Millions of Bees

TSMC actively promotes a balance between technology and ecology, and is the first company in Taiwan to successfully restore firefly and Taiwan gudgeon (Squalidus banarescui) populations within its factory campuses. To foster the development of a sustainable ecosystem and conserve biodiversity, TSMC launched the "TSMC Honey Project," to restore habitats for bees, crucial pollinators for plant propagation. This initiative involves collaboration with Tunghai University's Department of Life Sciences and local beekeepers from the Hsinchu, Taichung, and Tainan areas. Restoration bases have been established at Fab 12 Phase 8, Fab 14B, Fab 15A, Fab 15B, and Fab 18B. TSMC is also promoting environmental education through family day events across various fabs to build a deeper understanding of ecological conservation. As of November 2025, 59 beehives have nurtured approximately 1.18 million bees, yielding a cumulative total of about 500 kg of honey. Fourteen environmental education sessions have been conducted, attracting 6,052 participants, embodying the spirit of common good between business operations and the natural environment.Beehives Established at Restoration Bases to Protect Biodiversity in Fab AreasBees are a crucial species for maintaining ecological balance; their pollination supports approximately three-quarters of global crop production, making them vital for human food security and ecological stability. TSMC is committed to transforming its fab campuses into environmentally friendly biological habitats. To protect bees from harm caused by nesting in facilities around the fabs and to improve operational safety, the "TSMC Honey Project" was launched in February 2024. This initiative invited the Department of Life Sciences at Tunghai University to host a "Bee Science Workshop," helping TSMC's ecological team systematically learn about bee conservation knowledge and practices. Beehives were then established at the restoration bases within the fabs, incorporating the professional beekeeping experience of local beekeepers to effectively boost bee population growth. In May 2024, the first batch of honey was harvested, meeting the National Standards of the Republic of China (CNS). Furthermore, through fab tour activities during family days, employees and their families are introduced to the structure, types, and habitats of bees, helping them to understand the value of bees to the ecosystem.Because bees continuously collect nectar during the day, with a flight radius of up to about two kilometers, and are highly sensitive to environmental changes, the health and population fluctuations of their colonies can serve as an early warning indicator for environmental monitoring. TSMC also sends honey produced by bees in the fab areas to Tunghai University for analysis, further validating environmental quality and strengthening testing effectiveness.

TSMC's "Customized Technical Documentation Platform" Enhances Customer Experience

TSMC is committed to providing premium customer experience with a commitment to technological innovation and high-quality service. To help customers obtain the technical documentation needed for product design with development more quickly, TSMC has launched a new "Customized Technical Documentation Platform" for its "TSMC-OnlineTM" customer website. This platform provides an exclusive and secure online environment for each customer, allowing them to independently download the documents they need without going through manual application and review processes. The upgrade has shortened document acquisition time from 3.5 days to 0.5 days, successfully reducing customer wait times to optimize performance and convenience as well as improve resource efficiency for TSMC, achieving a win-win outcome.Self-service Downloads, Combining Efficiency and SecurityTSMC's customized technical documentation is tailored to the needs of different customers, such as exclusive design documents for Joint Development Projects (JDP). In the past, customers needed to access these documents through TSMC's Field Technical Support (FTS) team, which performed an internal application and review process for their request. Responding to rapid changes in the technical environment to improve the efficiency of document access, TSMC launched the "Customized Technical Document Platform Construction Project" in 2024, integrating technical documents that were originally scattered in different units and setting up exclusive online areas according to customer codes. The platform also introduced a permission control mechanism to ensure both safety and convenience for customers downloading files by themselves.

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 EfficiencyAs 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.