Better Health for All

TSMC addresses environmental impact through GHG emission reduction, pollution control, water conservation, and waste management.

The company reported no environmental penalties or fines in 2014. Its water reclamation rates exceed most semiconductor fabs globally, and its 28nm technology consumes roughly one-third the power of 55nm products, indicating best-in-class remediation efforts for potential health-harming externalities.

Fair Pay & Worker Respect

TSMC was cited for one serious safety violation in May following a worker's death, and four additional violations were found in two inspections related to carbon monoxide and silica dust exposure.

In 2022, the CEO's compensation was 276 times the median employee compensation. The overall employee rating on Glassdoor is 3.2 out of 5 stars, with 57% of employees feeling their work environment is positive and 50% reporting burnout. The company has faced a class action lawsuit alleging a toxic work environment and racist practices. In Arizona, TSMC has refused to sign a project labor agreement with local labor unions, and the majority of the workforce at its Arizona plant consists of non-union contractors. In 2013, the company showed staunch anti-union resistance during an organizing attempt at its Wafertech site. However, TSMC Arizona does have an agreement with the Arizona Building and Construction Trades Council for prevailing-wage construction jobs. In 2022, 70% of employees participated in a share purchase program with a 15% discount, and NT$121.4 billion in profits were shared with Taiwanese fabrication plant employees. The average employee compensation in 2022 was NT$3.1 million, more than four times Taiwan's average annual wage.

Kind to Animals

TSMC has demonstrated significant engagement in wildlife conservation. The company launched the "Eco Plus! Ecological Harmony Program" in May 2024, which includes the successful rehabilitation and reintroduction of the endangered Squalidus Banarescui species at its Taichung ecological pond

. By December 2024, TSMC had reforested approximately 53.3 hectares . The program also aims to conserve six endangered species, construct one ecological corridor, and manage two Other Effective Conservation Measures (OECMs) by 2030 . TSMC collaborates with various organizations, including the Taiwan Wild Bird Federation, to expand biodiversity databases, covering 15.3% of the Taiwan Bird Atlas project, adding 53 bird sounds to the Merlin App, and training 575 bird volunteers . The company also engaged 224 schools and 2,783 users in citizen scientist training . TSMC supports the UN Convention on Biological Diversity and UN Sustainable Development Goals, aiming for a net positive impact on nature and biodiversity by 2050 . For other animal welfare aspects, such as cruelty-free certification, animal testing, animal-derived inputs, and animal agriculture, the company's core business as a semiconductor manufacturer does not involve these activities. Its supplier audits do not explicitly cover animal welfare.

No War, No Weapons

TSMC discontinued direct shipments to Huawei in 2020 due to US export controls.

However, TSMC's chips, including AI silicon, have been found in Huawei products via intermediaries. The company acknowledges challenges in ensuring export control compliance by its customers. , and a US investigation into possible export control violations is underway, with a potential USD 1 billion fine related to these violations. This indicates a gap in TSMC's ability to track the downstream use of its semiconductors, impacting compliance with export controls. While TSMC obtained a Validated End-User (VEU) authorization for its Nanjing fab to receive US exports without separate licenses , this authorization is not guaranteed to be permanent. In contrast, TSMC ensures 100% conflict-free mineral sourcing through its Conflict-Free Sourcing Program (CFSP). This program requires suppliers to source from CFSP-compliant smelters and periodically update their Conflict Minerals Reporting Template. New suppliers must pass an assessment verifying compliance. TSMC's conflict-free sourcing efforts are 100% compliant with customer audit requirements , and the company joined the Conflict Free Sourcing Initiative in 2016 , establishing a due diligence framework based on OECD guidance.

Planet-Friendly Business

TSMC's Taiwan fabs achieved a waste diversion rate of 97% in 2023, earning UL 2799 platinum certification.

The company's renewable energy usage was over 14% in 2024. TSMC has committed to targets aligned with the SBTi Corporate Net-Zero Standard, with an SBTi alignment target year of 2035, but validation is pending.

Respect for Cultures & Communities

TSMC recruits 50% of its workforce from local communities at its Arizona facility, as 50% of employees are from Taiwan.

The company has not reported any cultural appropriation incidents. In Taiwan, construction of a new advanced packaging plant was halted in June due to the discovery of ancient artifacts, demonstrating an active response to a cultural incident and protection measures for cultural sites in compliance with the Cultural Heritage Preservation Act. FPIC processes are not applicable to the company's operations.

Safe & Smart Tech

TSMC has not published its core AI principles.

An incident occurred where current and former employees accessed and photographed sensitive process integration data related to TSMC's 2nm chip technology. While TSMC's privacy policy outlines user rights such as access, rectification, erasure, data portability, and CCPA rights for California residents, users can unsubscribe from promotional emails, which may take up to 2 weeks to process, and California residents may not request access to their Personal Data more than twice in any 12-month period. The company has maintained ISO27001 certification since 2008, and as of February 2024, ten of its fabs achieved ISO/IEC 15408 site certification at EAL6 level. The policy also states compliance with applicable laws and regulations, including CCPA and the use of Standard Contractual Clauses for EEA data transfers.