TSMC Deepens its Domestic Supply Chain Research and Development Capabilities with an Annual Output Value of over NT$1.5 Billion
Improving sustainability risk management is a crucial strategy for TSMC in implementing responsible supply chain practices. To ensure a stable supply of key materials for the manufacturing process, TSMC not only encourages photoresist suppliers to establish local production facilities in Taiwan but also actively strengthens the technical research and development capabilities of domestic suppliers. Adhering to the principles of maintaining original process quality and protecting confidential information, TSMC has guided suppliers through seven major aspects to develop Lithography materials that meet its standards. This has successfully established a local supply chain production line, with an annual output value of over NT$1.5 billion, and 75% increase in material transportation efficiency. Together with suppliers, TSMC jointly endeavors to advance the development of a sustainable semiconductor supply chain.
TSMC fosters domestic suppliers' capabilities to develop key materials, deepening the sustainability of supply chain operations and enhancing the competitive advantage of Taiwan's semiconductor industry, ultimately resulting in a win-win situation for all stakeholders.
Infusing Professional Resources to Enhance Supplier's R&D Capabilities
Lithography is a critical process in semiconductor manufacturing and is one of the core technologies that ensures chip quality and stability. Due to the high threshold for material research and production technology, the Lithography process has traditionally relied on imported materials. In 2019, in order to enhance the research and development capabilities and production efficiency of the domestic supply chain, TSMC's Material Supply Chain Management (MSCM) collaborated extensively with the Nano Patterning Technology Division (NPTD) to launch the 'Supplier Raw Material Technology Guidance Program'. Offering expert guidance on the seven major aspects of Lithography process materials, including technology development, quality assurance analysis, data calibration, sample verification, factory configuration, tank optimization, and production expansion planning. The program has not only effectively reduced the supplier's line setup and product verification time by 50%, but its material quality also surpasses TSMC's process standards, further improving yield rates and strengthening the competitiveness of the supplier in all aspects. This initiative has laid a solid foundation for the development of the domestic Lithography process material supply chain.
TSMC Establishes a Local Supply Chain Process for Lithography Process Materials

Guiding suppliers to enhance the quality and production processes of raw materials is one of TSMC's long-term goals for sustainable supply chain management. In addition to the Lithography process, TSMC will continue to strengthen local supply chain's R&D and manufacturing capabilities for various processes. This will be achieved through collaborative efforts to develop diverse, environmentally-friendly new materials and sources, with the goal of reducing operational disruption risks, ultimately promoting industry collaboration and environmental sustainability.