3. Agenda
Context
RFQ Summary
Your request & Objectives
TSMC : our story
Our proposal & product
Pricing
Terms & Conditions of sales
What's next ? (What/When/Who ?)
Summary
Back up
01
02
03
04
05
06
07
08
09
10
4. 17,3 million PS5 sold since Nov. 2020
Fastest selling gaming machines and Sony's all time record breaker.
Fierce price competition with the Xbox Series X & S (as low as 299$)
But at a selling price not covering production costs, PlayStation 5
hardware is selling at a loss.
2020: Covid outbreak & worldwide quarantines
TSMC producing PS5's SoC AMD N7
CONTEXT
6. Your
request Reduced costs :
- To meet breakeven
- Accounting for at least (-9%) on SoC N7's
selling price
03
01 New model ("Refreshed PS5") :
- Cheaper to build (to cut the costs)
- Shorter lead time (to improve the supply).
02 Internal redesign : compatible with pre-
existing console's attributes and features
7. Top-tier technology
Lower costs
Smaller chip
Fitting the existing console
design (No cost of adaptation)
Quick project launch
(8 months)
High volume production
Higher profit on PS5 selling
price
Respect for deadlines
Your Objectives :
8. Story About
TSMC is the world's largest dedicated semiconductor foundry.
It pioneered the pure-play foundry business model with an
exclusive focus on manufacturing customers' products. By
choosing not to design, manufacture or market any
semiconductor products under its own name, the Company
ensures that it never competes with its customers.
Integrity
Commitment
Innovation (From strategic planning,
marketing and management, to
technology and manufacturing.)
Customer Trust (Building deep and
enduring relationships with
customers.)
In 2021, it delivered an eleventh consecutive year of record
revenue, thanks to strong demand coming to our industry-
leading 5-nanometer (N5) and 7-nanometer (N7)
technologies.
Four core values:
Be the trusted technology and
capacity provider of the global logic
IC industry for years to come.
Mission:
9. The Sony PS5 used the APU chips designed by AMD and
adopted the 7nm manufacturing process by TSMC.
AMD
TSMC
Sony
Partnership TSMC- SONY- AMD
AMD has come to be TSMC's largest client in terms of the 7nm
process and will continue to use TSMC's 7nm process until the
release of its Zen 4 core, which will use the 5nm process. A
tighter partnership between the chip designer and the chip
manufacturer in the future.
Following Sony and TSMC's many years' cooperation, both
company decided on building a joint Specialty Technology Fab
plant in Japan with Sony Semiconductor Solutions as Minority
Shareholder (over 20% equity stake).
10. " Custom-designed Next-Gen
SoC AMD 6nm "
Our proposal
Industry leader's expertise & know-how
High quality
Latest process technology
Continuous improvements through extensive R&D
Long-term partnership and joint projects
11. 7nm node introduction and mass manufacturing starting in 2018 was a true tour de force, carving out a significant
leadership in the industry that the nearest competitors have been struggling to keep up with to this day (over 1,5 billion 7nm
chips, shipped)
7nm family is regarded as being extremely mature (with the recent addition of the new 6nm process amelioration)
Now focusing on ramping up 5nm products and upcoming 3nm advanced nodes.
The N6 node is an evolutionary design of the previous N7 node variations and distinguishes itself by its reduced production
costs and simplified manufacturing steps by introducing light usage of EUV layers (Extreme ultraviolet lithography systems).
Our objective: continue to shrink the individual transistor size and continue to improve density.
6
2021
12. SoC AMD 6nm (N6)
Higher transistors density & clock speed
= More power-efficient
18%
Equivalent to the SoC N7 process
Performance
Equivalent to the SoC N7 process
Power consumption
Our product :
Chip size compared to SoC N7
-15%
14. Possible scenario:
N6 chip could become the main solution for PS5
production in this next 2-year period, as it does not
require the additional adaptation costs.
Afterwards, following Sony's traditional product
extension 2-3 years console lifecycle, in the
eventuality of the introduction of a PS5 Slim & Pro
editions, both requiring faster processing engine
and smaller microchips, TSMC is ready to provide
next gen process technology at call .
Additionally, as per the joint plant project between
Sony and TSMC, we would have specifically
allocated production lines available for the PS5.
The rate of adoption of N6
technology and how it is replacing
N7 manufacturing in volume.
15. -8,5% COST REDUCTION
213 $/unit
-9% COST REDUCTION
212 $/unit
-10% COST REDUCTION
209,7 $/unit
Pricing offers
Priority of production
(dedicated production lines
and protection against future
chip shortages)
Price renegociation possibility
after Y2 (when joint plant is
finalised).
- On your target -
5 years exclusivity contract for
the refreshed PS5
Priority on PS5 Slim & Pro
potential contract
development
Volume of production
securement and potential
renegociations
16. Payment
15% when signing the contract
25% at validation and confirmation of the pilot
series
60% at the first batch of delivery
45 days to pay
Delivery
Dispatch to main Sony assembly line factory (Kizaru -
Japan)
First batch delivery in November 2022 (for PS5 launch
in January 2023)
CIF split 50-50%
Terms & Conditions
17. WHAT?
Next Steps
WHEN? WHO
Feedback on the proposal
Confirm the proposal
Signing the contract
Delivery 1st batch (60%) of the SoC to
the main Sony assembly line factory
(Kizaru - Japan)
Delivery 2nd batch (40%) of the SoC
to the plant
Soc prototype and production start
PS5 launch
15 Mar 2022
1 Apr 2022
15 Apr 2022
1 Nov 2022
1 Mar 2023
1 May 2022
1 Jan 2023
SONY
SONY
TSMC & SONY
TSMC
TSMC
TSMC
SONY
18. YOUR REQUEST OUR ANSWER
Reduced costs :
- To meet breakeven
- Accounting for at least (-9%) on SoC N7's
selling price
03
01 New model ("Refreshed PS5") :
- Cheaper to build (to cut the costs)
- Shorter lead time (to improve the supply).
02 Internal redesign : compatible with pre-
existing console's attributes and features
The updated SoC - N6
- More efficiency than previous version.
- No cost of redesign, and being instantly compatible
with existing PS5 architecture.
High speed delivery for huge batch
- Deliver 60% of the total order 3 months before your
products is launched and deliver the rest of the product by
Mar 2023.
Cost efficiency
- All options provides the cost reduction from the previous
version.
Long term partnership and R&D
- Research and develop the upgraded SoC to suit for the
future PS model with the strategically expert partners like
AMD.
Summary
23. TSMC SUBSIDARIES
TSMC North America
(CA, USA)
TSMC Europe B.V
(Amsterdam, The Netherlands)
TSMC Japan Limited
Kanagawa, Japan
TEL: 81-45-6820670
TSMC Korea Limited
Seaoul, South Korea
TSMC China
Shanghai, China
TSMC Nanjing China
(Nanjing, China)
TSMC Design Technology Canada Inc
Ottawa, Canada
WaferTech L.L.C.
(WA, USA)
VisEra Technologies
Company Limited
Hsinchu city, Taiwan