Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s largest dedicated semiconductor manufacturer. TSMC does not design its own chips, but manufactures them for other companies. It manufactured over 10,000 products for 510 customers in 2020.
TSMC uses the Sustainable Development Goals (SDGs) as a framework for measuring progress and discloses its renewable energy use and carbon emissions generated. The company also discloses its research and development (R&D) locations.
The company has an opportunity to support access to digital technologies for vulnerable groups and digital inclusion for women and girls. TSMC can also describe the measures it has taken to make its workplace inclusive for employees with disabilities and report on its direct economic value generated.
The company has an opportunity to support intermediate and technical skill development. The company can also further substantiate its existing programmes by disclosing additional metrics, to allow for better assessment of their impact.
TSMC commits to respect human rights and has a grievance mechanism that is accessible to both workers and external stakeholders to raise human rights concerns and complaints. The company has included human rights issues in its materiality assessment, but it does not disclose a process to identify and assess salient human rights risks in its own operations and business relationships. TSMC discloses that it engages with various stakeholders in general, but it does not specify that it engages with stakeholders whose human rights could be impacted by its activities.
TSMC publicly commits to respecting the health and safety of workers and places the same expectation on its business relationships. Furthermore, TSMC commits to paying its workers a living wage. The company does not disclose a policy commitment which states that it does not require workers to work more than regular and overtime hours and does not explicitly state that it requires its business relationships to do the same. Furthermore, the company does not have a policy statement committing it to gender equality and women’s empowerment. In relation to workforce diversity, while the company provides a breakdown of employees in different employee categories by gender, it does not disclose against other indicators of diversity, such as age, per employee category.
TSMC has a policy prohibiting bribery and corruption and includes anti-bribery and anti-corruption clauses in its contracts with business relationships. The company has a global tax strategy and provides a breakdown of tax payments by region in Taiwan. However, it does not disclose income tax payments for its individual tax jurisdictions. Furthermore, TSMC does not disclose its approach to lobbying and political engagement. Specifically, the company has no public statement indicating that it does not make political contributions, and it does not disclose its lobbying expenditures.