Proposal: Sinansys Integration Services for TSMC

Executive Summary:

Taiwan Semiconductor Manufacturing Company (TSMC), as the world’s leading semiconductor manufacturer, plays a critical role in powering AI, high-performance computing, and cutting-edge technologies. Given the complexity of its global supply chain and reliance on its SAP S/4HANA ERP system, integrating Sinansys offers TSMC a transformative opportunity to optimize supply chain operations, enhance resilience against disruptions, and meet sustainability goals. This proposal outlines a tailored approach to integrating Sinansys with TSMC’s SAP S/4HANA ERP, delivering measurable operational and financial benefits.

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Objectives:

1. Enhance Supply Chain Visibility: Achieve end-to-end transparency for proactive management of suppliers, logistics, and inventory.
2. Mitigate Disruptions: Leverage predictive analytics to anticipate and mitigate risks from natural disasters, material shortages, and geopolitical events.
3. Optimize Demand Planning: Utilize advanced forecasting to align production capacity with surging demand for AI chips and other semiconductors.
4. Sustainability Compliance: Support TSMC’s adherence to global environmental standards, including EU CBAM and CSRD.

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Scope of Services:

1. System Integration:
   
   • Establish seamless API connections between Sinansys and SAP S/4HANA to ensure real-time data exchange.
   • Utilize middleware for data transformation and synchronization across modules, including procurement, inventory management, and logistics.
2. Predictive Analytics Implementation:
   
   • Deploy AI-driven models to forecast material shortages, demand fluctuations, and weather-related risks.
   • Integrate predictive analytics into TSMC’s planning processes to enable proactive decision-making.
3. Blockchain-Enabled Supply Chain Transparency:
   
   • Implement blockchain technology to track raw materials, supplier performance, and shipment statuses in real time.
   • Provide auditable records to enhance supplier accountability and ensure regulatory compliance.
4. Sustainability Tracking and Optimization:
   
   • Integrate emissions tracking tools into logistics and production workflows to monitor and reduce carbon footprints.
   • Generate accurate and auditable reports for CBAM and CSRD compliance.
5. Training and Support:
   
   • Conduct comprehensive training sessions for TSMC teams to ensure effective adoption of Sinansys.
   • Provide ongoing technical support and system updates to align with evolving business needs.

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Financial Benefits:

1. Reduced Disruptions:
   
   • Predictive risk management could preserve over $500 million annually by mitigating delays and material shortages.
2. Cost Savings:
   
   • Optimized logistics and inventory management could result in $100 million in annual cost savings.
3. Increased Revenue:
   
   • Improved demand forecasting and capacity planning could generate an additional $200 million annually by meeting demand surges effectively.
4. Sustainability Compliance:
   
   • Emissions reductions and regulatory compliance could save $50 million annually in sustainability-driven incentives and reputational benefits.

Total Financial Benefits:

• The combined financial benefits of Sinansys integration amount to $850 million annually.

Implementation Timeline:

1. Phase 1 - Discovery and Planning (Month 1):
   
   • Conduct a comprehensive assessment of TSMC’s supply chain requirements.
   • Develop an integration roadmap tailored to TSMC’s SAP S/4HANA environment.
2. Phase 2 - Integration and Configuration (Months 2-4):
   
   • Establish APIs and middleware connections for seamless integration.
   • Configure Sinansys’ predictive analytics and blockchain features to align with TSMC’s operational needs.
3. Phase 3 - Testing and Validation (Month 5):
   
   • Conduct rigorous testing to ensure system functionality and data accuracy.
   • Validate performance metrics and address any issues.
4. Phase 4 - Training and Deployment (Month 6):
   
   • Train TSMC teams on Sinansys’ capabilities.
   • Deploy the integrated solution across TSMC’s global supply chain operations.

Investment Overview: The estimated investment for the Sinansys integration project is $8 million, including:

• System integration and customization: $5 million
• Training and support: $2 million
• Ongoing maintenance and updates (first year): $1 million

Return on Investment (ROI):

With an annual financial benefit of $850 million, TSMC can expect an ROI of 106x within the first year of implementation.

Conclusion:

‍ Integrating Sinansys with TSMC’s SAP S/4HANA ERP system represents a strategic investment in operational excellence and sustainability. By leveraging Sinansys’ advanced capabilities, TSMC can optimize supply chain performance, enhance resilience, and maintain its leadership position in the global semiconductor industry.

Next Steps:

• Schedule a discovery meeting to finalize requirements.
• Approve the integration roadmap and project timeline.

We look forward to partnering with TSMC to achieve these transformative objectives.

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