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    Sony

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    Karla Andrea Pérez Zamalloa
    TSMC proposed using its 6nm (N6) chip manufacturing process to produce a refreshed SoC for Sony's PS5 console. The N6 SoC would offer improved performance and efficiency over the current 7nm chip, reducing costs by 8.5-10% while maintaining compatibility with the existing PS5 design. TSMC has the expertise, production capacity, and a long partnership with Sony to deliver the new SoC on an expedited 8-month timeline to help Sony meet its objectives of lowering costs and improving the PS5 supply.

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    Sony

    Uploaded by

    Karla Andrea Pérez Zamalloa
    20 views22 pages
    TSMC proposed using its 6nm (N6) chip manufacturing process to produce a refreshed SoC for Sony's PS5 console. The N6 SoC would offer improved performance and efficiency over the current 7nm chip, reducing costs by 8.5-10% while maintaining compatibility with the existing PS5 design. TSMC has the expertise, production capacity, and a long partnership with Sony to deliver the new SoC on an expedited 8-month timeline to help Sony meet its objectives of lowering costs and improving the PS5 supply.

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    TSMC proposed using its 6nm (N6) chip manufacturing process to produce a refreshed SoC for Sony's PS5 console. The N6 SoC would offer improved performance and efficiency over the current 7nm chip, reducing costs by 8.5-10% while maintaining compatibility with the existing PS5 design. TSMC has the expertise, production capacity, and a long partnership with Sony to deliver the new SoC on an expedited 8-month timeline to help Sony meet its objectives of lowering costs and improving the PS5 supply.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views22 pages

    Sony

    Uploaded by

    Karla Andrea Pérez Zamalloa
    TSMC proposed using its 6nm (N6) chip manufacturing process to produce a refreshed SoC for Sony's PS5 console. The N6 SoC would offer improved performance and efficiency over the current 7nm chip, reducing costs by 8.5-10% while maintaining compatibility with the existing PS5 design. TSMC has the expertise, production capacity, and a long partnership with Sony to deliver the new SoC on an expedited 8-month timeline to help Sony meet its objectives of lowering costs and improving the PS5 supply.

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    © All Rights Reserved
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    of 22

    Taiwanese Semiconductor Manufacturing Company

    Soc AMD 6nm


    (N6) chipset

    Team 27 (Group 3) :.
    Proposal for SONY Corporation Huayi Xue (Project Manager/ Sales)
    Phong-atth Kittiloespaisan (KAM)
    REFRESHED PS5 PROJECT (NEXT GEN PS5 2023) Sarah Moustahsane (Product Manager)
    HUAYI XUE
    Project Manager / Sales

    Our PHONG-ATTH
    KITTILOESPAISAN
    Team KAM

    SARAH
    MOUSTAHSANE
    Product Manager
    Agenda
    01 Context

    02 RFQ Summary

    03 Your request & Objectives

    04 TSMC : our story

    05 Our proposal & product

    06 Pricing

    07 Terms & Conditions of sales

    08 What's next ? (What/When/Who ?)

    09 Summary

    10 Back up

    CONTEXT
    2020: Covid outbreak & worldwide quarantines

    TSMC producing PS5's SoC AMD N7

    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.
    RFQ SUMMARY
    01 New model ("Refreshed PS5") :
    - Cheaper to build (to cut the costs)
    - Shorter lead time (to improve the supply).

    Your 02 Internal redesign : compatible with pre-


    existing console's attributes and features

    request 03 Reduced costs :


    - To meet breakeven
    - Accounting for at least (-9%) on SoC N7's
    selling price
    Your Objectives :

    Top-tier technology High volume production

    Quick project launch


    Lower costs
    (8 months)

    Smaller chip Higher profit on PS5 selling


    price
    Fitting the existing console
    Respect for deadlines
    design (No cost of adaptation)
    Story About

    TSMC is the world's largest dedicated semiconductor foundry. Four core values:

    Integrity
    It pioneered the pure-play foundry business model with an
    Commitment
    exclusive focus on manufacturing customers' products. By
    Innovation (From strategic planning,
    choosing not to design, manufacture or market any
    marketing and management, to
    semiconductor products under its own name, the Company
    technology and manufacturing.)
    ensures that it never competes with its customers.
    Customer Trust (Building deep and
    enduring relationships with
    In 2021, it delivered an eleventh consecutive year of record
    customers.)
    revenue, thanks to strong demand coming to our industry-
    leading 5-nanometer (N5) and 7-nanometer (N7)
    Mission:
    technologies.
    Be the trusted technology and
    capacity provider of the global logic
    IC industry for years to come.
    Partnership TSMC- SONY- AMD

    The Sony PS5 used the APU chips designed by AMD and
    adopted the 7nm manufacturing process by TSMC.
    Sony
    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.
    TSMC AMD
    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).
    Our proposal
    Industry leader's expertise & know-how
    " Custom-designed Next-Gen
    High quality SoC AMD 6nm "

    Latest process technology

    Continuous improvements through extensive R&D

    Long-term partnership and joint projects


    2021

    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.
    Our product : SoC AMD 6nm (N6)

    18%
    Higher transistors density & clock speed
    = More power-efficient
    -15%
    Chip size compared to SoC N7

    Performance
    Equivalent to the SoC N7 process

    Power consumption
    Equivalent to the SoC N7 process
    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 .
    The rate of adoption of N6
    Additionally, as per the joint plant project between technology and how it is replacing
    Sony and TSMC, we would have specifically N7 manufacturing in volume.
    allocated production lines available for the PS5.

    Pricing offers

    213 $/unit 212 $/unit 209,7 $/unit


    -8,5% COST REDUCTION -9% COST REDUCTION -10% COST REDUCTION

    Priority of production 5 years exclusivity contract for


    (dedicated production lines the refreshed PS5
    and protection against future Priority on PS5 Slim & Pro
    chip shortages) - On your target - potential contract
    Price renegociation possibility development
    after Y2 (when joint plant is Volume of production
    finalised). securement and potential
    renegociations
    Terms & Conditions

    15% when signing the contract


    25% at validation and confirmation of the pilot
    Payment series
    60% at the first batch of delivery
    45 days to pay

    Dispatch to main Sony assembly line factory (Kizaru -


    Japan)
    Delivery First batch delivery in November 2022 (for PS5 launch
    in January 2023)
    CIF split 50-50%
    Next Steps

    WHAT? WHEN? WHO

    Feedback on the proposal 15 Mar 2022 SONY

    Confirm the proposal 1 Apr 2022 SONY

    Signing the contract 15 Apr 2022 TSMC & SONY

    Soc production start 1 May 2022 TSMC

    Delivery 1st batch (60%) of the SoC to 1 Nov 2022 TSMC


    the main Sony assembly line factory
    (Kizaru - Japan)

    PS5 launch 1 Jan 2023 SONY

    Delivery 2nd batch (40%) of the SoC 1 Mar 2023 TSMC


    to the plant
    Summary

    YOUR REQUEST OUR ANSWER

    The updated SoC - N6


    - More efficiency than previous version.
    01 New model ("Refreshed PS5") :
    - No cost of redesign, and being instantly compatible
    - Cheaper to build (to cut the costs) with existing PS5 architecture.
    - Shorter lead time (to improve the supply).
    Cost efficiency
    02 Internal redesign : compatible with pre- - All options provides the cost reduction from the previous
    version.
    existing console's attributes and features
    High speed delivery for huge batch
    03 Reduced costs : - Deliver 60% of the total order 3 months before your
    - To meet breakeven products is launched and deliver the rest of the product by
    Mar 2023.
    - Accounting for at least (-9%) on SoC N7's
    Long term partnership and R&D
    selling price
    - Research and develop the upgraded SoC to suit for the
    future PS model with the strategically expert partners like
    AMD.
    Contact

    HUAYI XUE [email protected]


    Project Manager / Sales +81 80 1234 5678

    PHONG-ATTH [email protected]
    KITTILOESPAISAN +81 80 4321 8765
    KAM

    SARAH [email protected]
    MOUSTAHSANE +81 80 1234 8765
    Product Manager
    THANK YOU

    Any question?
    Appendix / Back up
    TSMC SUBSIDARIES

    TSMC Design Technology Canada Inc


    TSMC Europe B.V
    Ottawa, Canada
    (Amsterdam, The Netherlands)

    WaferTech L.L.C. TSMC Korea Limited


    (WA, USA) Seaoul, South Korea

    TSMC Nanjing China TSMC Japan Limited


    TSMC North America
    (Nanjing, China) Kanagawa, Japan
    (CA, USA) TEL: 81-45-6820670

    TSMC China
    VisEra Technologies
    Shanghai, China
    Company Limited
    Hsinchu city, Taiwan
    TSMC - Financial Statement
    https://investor.tsmc.com/english/financial-reports

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