TSMC streamlines work processes to improve delivery efficiency and provides a better work environment for freight drivers.
TSMC streamlines work processes to improve delivery efficiency and provides a better work environment for freight drivers.

TSMC Builds a High-quality Work Environment for Contractors and Improves Job Quality of Transport Drivers

Optimizing Wafer Transportation Process to achieve 95% Efficiency Increase
Vincent Rau
Rebecca Chen
Yung-Sheng Huang
Kuo-Hsiang Huang

TSMC is committed to creating a friendly work environment. Through launching the On-site Contractor Personnel Support Program, the Company has greatly improved the health and safety of contractors’ . In 2020, following the interviews with personnel working for the Company’s cleaning, food, and security services contractors, TSMC started to improve their work environment based on the interview results. Now the Company took further action to streamline work processes for tank truck and freight truck drivers to improve delivery efficiency. As of September 2021, the project has benefited over 8,700 people and provided a better workplace for the contractors.

Adjustment of Overall Wafer Transportation Process Increased Efficiency by 95%

The wafers manufactured by TSMC are collected by freight drivers at and delivered to various fabs in northern, central, and southern Taiwan on a daily basis. The average wait time for drivers at each collect point is 10-15 minutes, while the total wait time for each driver exceeds 2 hours per day. To optimize the efficiency of wafer transportation, in March 2021, TSMC’s Material Supply Chain Management Division joined the Manufacturing Department in Fab 5, which is in charge of freight trucks, to conduct a series of interviews with transport drivers to learn about their daily operations and collect information on delivery points, routes, and process. By re-planning the transportation route, establishing a schedule for each collect and delivery point, and adding parking spaces for trucks, the Company significantly shortened the daily wait time to 6-15 minutes, which not only improved the delivery efficiency by 95%, but also reduced the risk caused by driver fatigue. By August 2021, this improvement in transportation safety has been implemented across all TSMC fabs in Taiwan.

TSMC Optimizes the Wafer Transportation Process

Working to Achieve Zero Wait Time with Automated Wafer Packaging

In order to expedite the wafer delivery process, TSMC will expand the existing packaging equipment and an automated warehouse management system by the end of 2021 to complete wafer packaging ahead of schedule and reduce delays caused by manual operations. Also, an intelligent logistic system, which speeds up the entry and exit of freight trucks, is also being evaluated before installation.. Ultimately, the Company aims to achieve zero wait time for the drivers.

TSMC's Fab Contractor Care Plan

Phase / Target Issue
Improvement Implementation Rate
Phase One
Onsite Personnel who Provide Cleaning, Food, and Security Services
Lack of rest areas
  • Rest areas created in new fabs
  • Conference rooms reserved as rest areas in existing fabs
Personal cellphones are not allowed in the workplace due to fab regulations
  • Company-regulated mobile phones offered to all suppliers free of charge as needed
Low participation in health checks among personnel on a shift system
  • The vendor badge system leveraged to achieve 100% participation rate of health checks
Phase Two
Tanker Truck Drivers
No access to personal mobile phones or rest areas during wait time
  • A lounge for tank truck drivers created
  • Drivers allowed to use their private mobile phones in the specific areas of the lounge
Freight Truck Drivers Long wait time
  • Delivery process reviewed and re-planned for each collect and delivery point
  • A timetable for each collect and delivery point established for drivers to follow
  • Parking spaces added and arrival/departure time of trucks scheduled
Pick-up delays due to failing to complete wafer packaging and related operations in time
  • Scheduled to expand the existing packaging equipment and an automated warehouse management system to accelerate packaging and delivery operations
Scheduled to complete by the end of 2021
Note: Program included all TSMC fabs in Taiwan