Innovation
The Best Partner for Our Customers
"Innovation" is one of the driving forces for Nanya's growth and competitiveness and one of our four core values. We shall strengthen product research, development, and manufacturing to satisfy customers' diverse demands and become the best memory partner for the smart generation.
Statistics
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13.8 %
R&D expenses accounted for 13.8% of revenue and R&D personnel accounted for 27.1% of employees. These demonstrate Nanya's focus on technological development.
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360 million
A total of 90 AI applications were developed as of the end of 2022 and the annual benefits reached NT$360 million.
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812 cases
A total of 812 patents were granted in 2022, an increase of 347 cases or 75% compared to 2021
Strategy and Performance of Material Topics
R&D and Innovation
Smart products have been completely improving the quality of life for human beings and helping energy conservation and carbon reduction. Therefore, every year, Nanya invests large amounts of resources in technological development of new types of DRAM products, next generation processes, and advanced 3D stacked packaging. The developments provide customers with value-added services, and reinforces protection for intellectual property and trade secrets, accelerating the move towards product diversification and smart factories. Moreover, we have set a vision for innovative development to introduce the second generation 10nm DRAM process into mass production in 2025, develop the third generation 10nm DRAM process and the next-generation DDR5 and LPDDR5 products, and manufacture 16Gb high density products at large scale so as to enter fast-growing markets (artificial intelligence (AI), data centers, automotive and the Internet of Things), and set up high-efficient production lines with an AI-aided system.
Innovation Committee
In order to implement innovation management, create a culture of innovation, and enhance the company's innovative energy and value, Nanya especially set up the Innovation Committee, a cross-departmental unit, formed by the senior management and chaired by Executive Vice President (EVP). The Innovation Committee is positioned to coordinate and plan the overall innovation strategy, setting short, medium and long-term goals.
Investment in Innovative R&D
Incentives for Innovation and Results of innovative activities
"Innovation" is one of the driving forces behind Nanya's technological growth and competitiveness enhancement and one of our core values. To encourage employees to propose innovative ideas, the Company holds annual innovation competitions, offers patent rewards and rewards for improvement proposals, and organizes essay competitions and the best team competitions. We recognize and reward innovative ideas proposed by each employee, hoping that all employees will internalize the spirit of innovation.
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Incentive innovation mechanism
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Results of innovative activities
In addition, we attach great importance to technology R&D. We incorporate external innovation into our R&D in open and innovative ways, and accelerate and expand technology R&D. We have worked on basic research, product design, and product testing for next generation memory with National Taiwan University, National Central University, Chang Gung University, Industrial Technology Research Institute, and testing equipment suppliers. We have also partnered with manufacturers of masks and machinery in joint development of 10 nm process and materials. Through customized Wafer Level Packaging and multiple application products developed rapidly with downstream system developers, Nanya has launched new open innovation programs every year in the past four years in coordination with the Company's short, medium, and long-term R&D plans.
Technology R&D open innovation program
Nanya Smart Factory
Nanya's 12-inch fab has all essential infrastructure that a smart factory requires, including highly automated production lines, Fab IoT, large numbers of sensors, and big data integration. The fab utilizes AI technology in eight important categories, including Equipment Prognostic & Health Management, Process Control, Productivity Improvement, Quality Inspection, Yield Enhancement, Process Development, Safety Protection, and Security Management.Currently, Nanya has developed several innovative applications in production line, including the machinery diagnosis, advanced process control, optimization of production scheduling, wafer quantity prediction, smart handling, wafer probe testing, defect image recognition, and wafer pattern recognition. These applications can effectively enhance overall operation efficiency and make important contributions to manufacturing key indices - Yield, Quality and Output.
AI Development Benefits and Promotion
By the end of 2022, Nanya has completed 90 AI applications that can effectively improve yield and quality, reduce wafer scrap ratio, increase tool utilization, lower equipment maintenance costs and raw material consumption, increase production capacity and flexibility, and more effectively use human resources. Annual benefits reach NT$360 million. As we continue to develop new AI applications, we expect total benefits to reach NT$2 billion in the next 5 years (up to 2027).Innovation and promotion are mainly carried out through three major platforms – AI application development, AI technology research, and AI education.
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AI application development platformIntegrated domain experts, IT experts and statistics experts, a total of 60 engineers to systematically develop AI systems
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AI technology research platformStrengthened AI team's technical capabilities, and systematically implemented machine learning, deep learning (CNN1 , RNN2 , object detection), and edge computing technologies.
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AI education platformAI training courses were conducted by internal and external instructors, and trained a total of 400 engineers with AI theories and practical technical abilities.
- 1.CNN: Convolutional Neural Networks
- 2.RNN: Recurrent Neural Networks
Green Product Development
Nanya and clients both aim to protect a green planet. We implemented the Life Cycle Thinking (LCT) and the Design for Environment. For a long time, we have made an effort to research and develop advanced and highly efficient eco-friendly products. We not only have helped clients develop products with low energy consumption design, but also have engaged in hazardous management and Conflict-free minerals and Responsible Mineral Sourcing Management through our influence on supply chains. In order to continue improving the environmental friendliness level of products, we have formulated environmental health and safety performance indicators, promoting various waste reduction and resource reuse, greenhouse gas reduction and other projects. In coordination with the Green Product Promotion Committee (GPPC) on green product management, right from the start of product development, we consider seven aspects of environmental impacts, including procurement, manufacturing, transportation, product use, disposal, and recycling in order to identify improvement opportunities to increase environmental benefits.
Life Cycle Assessment
We used the Simapro, a life cycle assessment tool, to conduct life cycle assessment on 100 percent of our products, calculated environmental footprints of products, and identified directions for future improvements. In the meantime, the company would use the product environmental data and coefficients accumulated through analysis processes to build a decision support system for green product development. The company gave multiple considerations on the requirements, and conducted quantitative life cycle assessment on products in each life cycle stage.
Three main hotspots of greenhouse effect listed in the results of the 2021 product LCA results
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Electricity use
Percentage of product carbon footprint- 82.86%
- Implement energy conservation improvement plans
- Completed 25 energy conservation management plans under ISO 50001, energy conservation benefits: 4378 MWh
- Purchase 7.88 million kWh of renewable energy
- Continue to implement the ISO 50001 Energy Conservation Plan
- Continue to purchase renewable energy according to plan
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Use 12-inch production wafers
Percentage of product carbon footprint- 3.18%
- Require foundries to implement energy conservation and carbon reduction management plans
- Completed the energy conservation plan and saved 5,355 MWh
- Suppliers joined the SBTi and plan to reduce Scope 1+2 emissions by 25% in 2030
- Continue to require foundries to implement energy conservation and carbon reduction management plans
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Liquid oxygen
Percentage of product carbon footprint- 1.70%
- Require liquid oxygen suppliers to implement energy conservation and carbon reduction management plans
- Suppliers joined the SBTi and plan to reduce Scope 1+2 emissions by 25% in 2030
- Continue to require liquid oxygen suppliers to implement energy conservation and carbon reduction management plans
Green Product Design
Nanya started researching and developing 1A- nm and 1B-nm technologies in 2017, and planned to develop products with high integration, faster speed, and lower energy consumption, such as DDR4/DDR5. Different from the past methods of cooperating with other DRAM companies on technology development or technology licensing, Nanya independently developed 1A/1B technologies. Product verification for 1A- nm technology is expected to be completed in 2022. This is the first 10nm DRAM technology of a Taiwanese company, and proves that Taiwan' s DRAM technology development ability is among the top companies across the world. Meanwhile, we have constantly expanded our existing product lines into diverse applications, providing clients with whole product solutions to become the become the best memory partner in the smart era.
DDR5&LPDDR5X provides specifications that save more electricity with high bandwidth/high speed
Nanya DRAM Technology Strategy
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Nanya has focused on the development of advanced processes, and began independently developing 1A-nm process technology in 2017; trial production began in 2022. 1A-nm process technology will significantly shrink the size of chips and increase the capacity of a single wafer by 30%. Furthermore, we also began developing 1B-nm process technology in 2019 and expect to begin small-scale production in 2023. 1B-nm process technology further shrunk chips made using 1A-nm process technology and increased the capacity of a single wafer by 30%. This will allow factories to further achieve energy conservation and carbon reduction goals while achieving the same production capacity.
R&D Policy for Low Energy Consumption Products
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Nanya continues to develop advanced manufacturing processes, so the energy consumption of new generation products developed with new processes is reduced by 15% compared with the previous generation.
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Nanya cooperates with major chip customers, adopting the method of multi chip package (MCP) to reduce back-end assembly and testing as well as energy consumption.
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Nanya strengthens the development of low energy consumption product lines and enlarges product portfolios in order to satisfy the need of various mobile devices and electronic products.
Low Energy Consumption Products Development Benefits
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Environmental external benefitsWhen we develop new products, the environmental impact of the entire life cycle is considered. To electronic products, the energy consumption in use is one of the most significant indicators in environmental impacts. Nanya actively researches and develops low energy consumption products, and assist clients lower demand for energy during their usage of electronic products so that greenhouse gas emissions can be reduced.
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Over 621.69 million kWh of electricity saved- Product : Low power DRAM and 20nm consumer DRAM
- Scope : Total sales volume of 2022
- Calculation : Based on the quantity of products sold in one year, and compared the energy consumption of the aforementioned DRAM products with that of the previous generation
- Benefits : Saved the annual electricity consumption of 172 thousand households Note 1 and reduced greenhouse gas emissions by 316,440 ton-CO2e Note 2, which is the equivalent of 814 times the carbon absorption of Daan Forest Park in an entire year Note 3.
- Note 1: Estimated based on the actual monthly electricity consumption of 3,619 kWh/year by housing units in the statistics for housing units and small stores on the website of Taiwan Power Company (2023/1/16)
- Note 2: The carbon emission factor of electricity is based on the announcement of the Bureau of Energy in 2021: 0.509 kg CO2e/kWh
- Note 3: According to the Bureau of Energy, Ministry of Economic Affairs: The CO2 absorption of Daan Forest Park used for calculation is 389 tons per year
Hazardous Substance Free Product Management
In 2005, Nanya established the Green Product Promotion Committee (GPPC) to promote hazardous substance free (HSF) management. During the product manufacturing process, we continued to prevent pollution, save energy, reduce wastes, and avoid hazardous substances. Through concatenating suppliers and subcontractors to well managed of raw materials, manufacture process materials, package assembly materials, DIMM Module materials and packaging materials, Nanya built an effectively green product supply chain to managed raw material provider, process material provider, back-end assembly house subcontractor and shipment packing material provider and its materials to meet green product policy and conform to the laws and regulations of current global environmental protection trend. Through the GPPC, we referred to laws and regulations of the EU and countries in other regions and the hazardous substance management specifications of major international customers to stipulate the General Rules of Environmental Management Substances for Components and Materials, continuing to effectively control and manage the sources of raw materials and related materials in order to achieve standards of green products and mitigate impacts on natural environment during manufacturing process of products. We followed the General Rules of Environmental Management Substances for Components and Materials and all products are required to comply with international regulations and customer requirements. Through the establishment of a HSF management system for materials, we ensured that the wafers, IC packaging, and DIMM module products comply with international regulations and related specifications of clients towards HSF management.
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2022 RoHS TEST REPORTS
- 100% reviewed 1414 RoHS test reports that collecting from 7 subcontractors and 49 raw material suppliers.
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2022 HS SURVEYS
- Two versions of REACH SVHC V.26 & V.27 survey (HS Survey V.43 & V.45) were completed while 158 HS survey reports were reviewed. The completion rate was: 100%.
- Completed 2 versions of HS survey (HS Survey V.46 & V.47) required by clients, while 40 HS survey reports were reviewed. The completion rate was 100%.
- Completed 2 versions of responsible mineral sourcing survey (HS Survey V.44 & V.48), while 38 HS survey reports were reviewed. The completion rate was 100%.
