Contents

Consolidated Financial Statements for theYears Ended December 31, 2022 and 2021 andIndependent Auditors’ Report1

Parent Company Only Financial Statements for theYears Ended December 31, 2022 and 2021 andIndependent Auditors’ Report111

Taiwan Semiconductor Manufacturing
Company Limited and Subsidiaries
Consolidated Financial Statements for theYears Ended December 31, 2022 and 2021 andIndependent Auditors’ Report-1--2-2-REPRESENTATION LETTER

The entities that are required to be included in the combined financial statements of Taiwan
Semiconductor Manufacturing Company Limited as of and for the year ended December 31, 2022,
under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports
and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in
the consolidated financial statements prepared in conformity with the International Financial
Reporting Standard 10, “Consolidated Financial Statements”. In addition, the information required
to be disclosed in the combined financial statements is included in the consolidated financial
statements. Consequently, Taiwan Semiconductor Manufacturing Company Limited andSubsidiaries do not prepare a separate set of combined financial statements.

Very truly yours,

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
By

MARK LIU
ChairmanFebruary 14, 2023

-3-3-

-4-

Key audit matter for the Company’s consolidated financial statements for the year ended December
31, 2022 is stated as follows:
Property, plant and equipment (PP&E) – commencement of depreciation related to PP&E classified
as equipment under installation and construction in progress (EUI/CIP)
Refer to Notes 4, 5 and 14 to the consolidated financial statements.
The Company’s evaluation of when to commence depreciation of EUI/CIP involves determining
when the assets are available for their intended use. The criteria the Company uses to determine
whether EUI/CIP are available for their intended use involves subjective judgments and assumptions
about the conditions necessary for the assets to be capable of operating in the intended manner.
Changes in these assumptions could have a significant impact on when depreciation is recognized.
Given the subjectivity in determining the date to commence depreciation of EUI/CIP, performing
audit procedures to evaluate the reasonableness of the Company’s judgments and assumptions
required a high degree of auditor judgment. Consequently, the validity of commencement ofdepreciation related to PP&E classified as EUI/CIP is identified as a key audit matter.
Our audit procedures related to the evaluation of when to commence depreciation of EUI/CIP
included the following, among others:
1. We read the Company’s policy and understood the criteria used to determine when to commence
depreciation.
2. We tested the effectiveness of the controls over the evaluation of when to commence depreciationof EUI/CIP.
3. We sampled the year-end balance of EUI/CIP and performed the following for each selection:
a. Evaluated whether the selection did not meet the criteria specified by the Company forcommencement of depreciation.
b. Observed the assets and evaluated their status.
4. We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by theCompany for commencement of depreciation during the year.
5. We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by theCompany for commencement of depreciation subsequent to year end.
Other Matter
We have also audited the parent company only financial statements of Taiwan Semiconductor
Manufacturing Company Limited as of and for the years ended December 31, 2022 and 2021 on
which we have issued an unmodified opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with the Regulations Governing the Preparation of Financial Reports by
Securities Issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial
Supervisory Commission of the Republic of China, and for such internal control as management-5- 3 -

determines is necessary to enable the preparation of consolidated financial statements that are freefrom material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing theCompany’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends toliquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (including members of the Audit Committee) are responsible foroverseeing the Company’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the
Republic of China will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we
exercise professional judgment and maintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, orthe override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
4. Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditors’ report to the related disclosures in the consolidated financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors’ report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
5. Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

- -6 4- --7-

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED BALANCE SHEETS(In Thousands of New Taiwan Dollars)

December 31, 2022
Amount%ASSETS
CURRENT ASSETS
Cash and cash equivalents (Note 6)
Financial assets at fair value through profit or loss (Note 7)
Financial assets at fair value through other comprehensive income (Note 8)
Financial assets at amortized cost (Note 9)
Hedging financial assets (Note 10)
Notes and accounts receivable, net (Note 11)
Receivables from related parties (Note 34)
Other receivables from related parties (Note 34)
Inventories (Notes 5 and 12)
Other financial assets (Note 35)
Other current assets$ 1,342,814,083
1,070,398
122,998,543
94,600,219
2,329
229,755,887
1,583,958
68,975
221,149,148
25,964,428
12,888,776

27
2
2
5
4
1
-

$ 1,064,990,192
159,048
119,519,251
3,773,571
13,468
197,586,109
715,324
61,531
193,102,321
16,630,611
10,521,481

29
3
5
5
1
-

2,052,896,744

41

1,607,072,907

43

6,159,200
35,127,215
27,641,505
2,693,836,970
41,914,136
25,999,155
69,185,842
4,467,022
7,551,089

1
1
54
1
1
1
-

5,887,892
1,533,391
21,963,418
1,975,118,704
32,734,537
26,821,697
49,153,886
2,624,854
2,592,169

1
53
1
1
1
-

2,911,882,134

59

2,118,430,548

57$ 4,964,778,878

100$ 3,725,503,455

100

Total current assets
NONCURRENT ASSETS
Financial assets at fair value through other comprehensive income (Note 8)
Financial assets at amortized cost (Note 9)
Investments accounted for using equity method (Note 13)
Property, plant and equipment (Notes 5 and 14)
Right-of-use assets (Notes 5 and 15)
Intangible assets (Notes 5 and 16)
Deferred income tax assets (Notes 5 and 26)
Refundable deposits
Other noncurrent assets
Total noncurrent assets
TOTAL

December 31, 2021
Amount%LIABILITIES AND EQUITYCURRENT LIABILITIESShort-term loans (Notes 17 and 31)
Financial liabilities at fair value through profit or loss (Note 7)
Hedging financial liabilities (Note 10)
Accounts payable
Payables to related parties (Note 34)
Salary and bonus payable
Accrued profit sharing bonus to employees and compensation to directors (Note 29)
Payables to contractors and equipment suppliers
Cash dividends payable (Note 21)
Income tax payable (Notes 5 and 26)
Long-term liabilities - current portion (Notes 18, 19 and 31)
Accrued expenses and other current liabilities (Notes 5, 15, 22, 31 and 34)$

114,921,333
681,914
9,642
47,285,603
1,437,186
23,802,100
36,524,741
145,742,148
142,617,093
59,647,152
4,566,667
162,267,779

3
1
1
1
4
4
2
4

19

739,503,358

20

834,336,439
4,760,047
1,031,383
29,764,097
9,321,091
892,021179,958,116

17
4

610,070,652
3,309,131
1,873,877
20,764,214
11,036,879
686,762
167,525,377

16
1
5

Total noncurrent liabilities

1,060,063,194

21

815,266,892

22

Total liabilities

2,004,290,011

40

1,554,770,250

42259,303,805
69,330,328

5
1

259,303,805
64,761,602

7
2

311,146,899
3,154,310
2,323,223,479
2,637,524,688(20,505,626)

6
47
53
-

311,146,899
59,304,212
1,536,378,550
1,906,829,661(62,608,515)

8
2
41
51
(2)

2,945,653,195

59

2,168,286,553

58

14,835,672

1

2,446,652-

2,960,488,867

60

2,170,733,205

58$ 4,964,778,878

100$ 3,725,503,455

100

Total current liabilities
NONCURRENT LIABILITIESBonds payable (Notes 18 and 31)
Long-term bank loans (Notes 19 and 31)
Deferred income tax liabilities (Notes 5 and 26)
Lease liabilities (Notes 5, 15 and 31)
Net defined benefit liability (Note 20)
Guarantee deposits
Others (Note 22)

EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
Capital stock (Notes 4 and 21)
Capital surplus (Notes 4, 21 and 28)
Retained earnings (Notes 4 and 21)
Appropriated as legal capital reserve
Appropriated as special capital reserve
Unappropriated earnings
Others (Notes 4, 21 and 28)
Equity attributable to shareholders of the parent
NON - CONTROLLING INTERESTS
Total equity
TOTAL

The accompanying notes are an integral part of the consolidated financial statements.

-8-8-

116,215813
54,879,708
1,642,637
36,435,509
61,748,574
213,499,613
142,617,093
120,801,814
19,313,889
293,170,952

1
1
1
4
3
3
6

944,226,817$

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

2022
Amount%2021
Amount%$ 2,263,891,292

100$ 1,587,415,037

100

915,536,486

40

767,877,771

48

1,348,354,806

60

819,537,266

52

163,262,208
53,524,898
9,920,446

7
2
1

124,734,755
36,929,588
7,558,591

8
2
1

226,707,552

10

169,222,934

11(368,403)-(333,435)-

1,121,278,851

50

649,980,897

41

NON-OPERATING INCOME AND EXPENSES
Share of profits of associates
Interest income (Note 23)
Other income
Foreign exchange gain, net (Note 37)
Finance costs (Note 24)
Other gains and losses, net (Note 25)

7,798,359
22,422,209
947,697
4,505,784(11,749,984)(1,012,198)

1-

5,603,084
5,708,765
973,141
13,662,655(5,414,218)(7,388,010)

1-

Total non-operating income and expenses

22,911,867

113,145,417

1

1,144,190,718

51

663,126,314

42

127,290,203

6

66,053,180

4

1,016,900,515

45

597,073,134

38(823,060)-

242,079-(263,749)--

1,900,797(41,416)-

154,457-(30,194)-733,956-(85,269)-(198,396)-

NET REVENUE (Notes 5, 22, 34 and 39)
COST OF REVENUE (Notes 5, 12, 29 and 34)
GROSS PROFITOPERATING EXPENSES (Notes 5, 29 and 34)
Research and development
General and administrative
MarketingTotal operating expenses
OTHER OPERATING INCOME AND EXPENSES, NET(Notes 14 and 29)
INCOME FROM OPERATIONS (Note 39)

INCOME BEFORE INCOME TAX
INCOME TAX EXPENSE (Notes 5 and 26)
NET INCOME
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 5,20, 21 and 26)
Items that will not be reclassified subsequently to profit orloss:
Remeasurement of defined benefit obligation
Unrealized gain/(loss) on investments in equity
instruments at fair value through other comprehensive
incomeLoss on hedging instruments
Share of other comprehensive income (loss) of
associates
Income tax benefit (expense) related to items that will
not be reclassified subsequently-9-9-

1,985,997(Continued)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

2021
Amount%(6,181,830)(1)-(3,431,791)
131,535-

550,338-(119,997)

-

6,036

-

(3,370)-42,628,561

2(9,605,453)(1)

42,430,165

2(7,619,456)(1)

TOTAL COMPREHENSIVE INCOME$ 1,059,330,680

47$

589,453,678

37

NET INCOME ATTRIBUTABLE TO:
Shareholders of the parent
Non-controlling interests$ 1,016,530,249
370,26645-$

596,540,013
533,12138-$ 1,016,900,515

45$

597,073,134

38$ 1,059,124,890
205,79047-$

588,918,059
535,61937-$ 1,059,330,680

47$

589,453,678

37

$
$

23.01
23.01

Items that may be reclassified subsequently to profit orloss:
Exchange differences arising on translation of foreign
operations
Unrealized loss on investments in debt instruments atfair value through other comprehensive income
Gain on hedging instruments
Share of other comprehensive income (loss) of
associates
Income tax benefit (expense) related to items that may
be reclassified subsequently$

Other comprehensive income (loss), net of income tax

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE
TO:
Shareholders of the parent
Non-controlling interests

EARNINGS PER SHARE (NT$, Note 27)
Basic earnings per share
Diluted earnings per share

$
$

2022
Amount

%50,845,614

2(10,102,658)
1,329,231

39.20
39.20

The accompanying notes are an integral part of the consolidated financial statements.

- 10 - 10 -$(Concluded)

-

-

-

-

-

-

-

-

-

-

-

Net income

Other comprehensive income (loss), net of income
tax

Total comprehensive income (loss)

Disposal of investments in equity instruments at fairvalue through other comprehensive income

Basis adjustment for gain on hedging instruments

Adjustments to share of changes in equities ofassociates

From difference between the consideration received
and the carrying amount of the subsidiaries' net
assets during actual disposal

From share of changes in equities of subsidiaries

Donation from shareholders

Decrease in non-controlling interests

Effect of acquisition of subsidiary

-

-

1,387

Other comprehensive income (loss), net of income
tax

Total comprehensive income (loss)

Share-based payment arrangements

-

-

-

-

-

25,930,380

Adjustments to share of changes in equities ofassociates

From share of changes in equities of subsidiaries

Donation from shareholders

Decrease in non-controlling interests

BALANCE, DECEMBER 31, 2022$$

The accompanying notes are an integral part of the consolidated financial statements.

-

Basis adjustment for loss on hedging instruments(1,387 )Disposal of investments in equity instruments at fairvalue through other comprehensive income

Treasury stock retired--

Net income

Treasury stock acquired-

Appropriations of earnings
Special capital reserve
Cash dividends to shareholders
Total

25,930,380-

Appropriations of earnings
Special capital reserve
Cash dividends to shareholders
Total

BALANCE, DECEMBER 31, 2021

25,930,380

BALANCE, JANUARY 1, 2021

259,303,805

-

-

-

-

-

-

(13,870 )-

13,870----259,303,805

-

-

-

-

-

-

-

-

-

-

-

-

259,303,805

Capital Stock - Common Stock
Shares(In Thousands)
AmountCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY(In Thousands of New Taiwan Dollars)$$

69,330,328-

13,205

4,115,940

4,541

-

-

(2,989 )-438,029

-

-

-

-

64,761,602--

11,172(7,891 )

8,406,282

4,796

-

-

-

-

-

-

56,347,243

Capital Surplus

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries$$

311,146,899

-

-

-

-

-

-

-

-

-

-

-

-

-

311,146,899

-

-

-

-

-

-

-

-

-

-

-

-

311,146,899

Legal Capital
Reserve$$

3,154,310

-

-

-

-

-

-

-

-

-

-

-

-

(56,149,902 )(56,149,902 )

59,304,212

-

-

-

-

-

-

-

-

-

-

-

17,045,066
17,045,066

42,259,146$ 2,323,223,479

-

-

-

-

-

303,242(854,707 )--

1,016,480,677(49,572 )

1,016,530,249

56,149,902(285,234,185 )(229,084,283 )

1,536,378,550

-

-

-

-

-

-

-

187,654596,707,516

167,503596,540,013(17,045,066 )(278,751,590 )(295,796,656 )$ 1,235,280,036

Retained Earnings
Special Capital
UnappropriatedReserve
Earnings- 11- 11 --$ 2,637,524,688

-

-

-

-

-

303,242(854,707 )--

1,016,480,677(49,572 )

1,016,530,249(285,234,185 )(285,234,185 )

1,906,829,661

-

-

-

-

-

-

-

187,654596,707,516

167,503596,540,013(278,751,590 )(278,751,590 )$ 1,588,686,081

Total

$

$

(11,743,301 )

-

-

-

-

-

-

-

-

-

51,560,060

51,560,060--(63,303,361 )

-

-

-

-

-

-

-

-

(6,301,734 )(6,301,734 )--(57,001,627 )Foreign
Currency
Translation
Reserve$$(10,056,353 )

-

-

-

-

-

(303,242 )

-

-

-

(10,327,421 )(10,327,421 )--

574,310

-

-

-

-

-

-

-

(187,654 )(1,559,790 )(1,559,790 )--

2,321,754

Unrealized
Gain (Loss) on
Financial
Assets at Fair
Value Through
Other
Comprehensive
IncomeEquity Attributable to Shareholders of the Parent

$

$

-

-

-

1,479,181

-

-

-

-

(52,929 )

-

-

-

-

1,411,574

1,411,574--

120,536

-

-

-

-

-

-

48,469-72,06772,067

Gain (Loss) on
Hedging
Instruments

Others

$

$

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(185,153 )

-

-

-

-

-

-

-

-

(185,153 )Unearned
Stock-Based
Employee
Compensation$$(20,505,626 )

-

-

-

-

(52,929 )(303,242 )--(185,153 )

42,644,213

42,644,213--(62,608,515 )

-

-

-

-

-

-

48,469(187,654 )(7,789,457 )(7,789,457 )--(54,679,873 )

Total

$

$

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

871,566(871,566 )TreasuryStock$ 2,945,653,195-

13,205

4,115,940

4,541(52,929 )--(871,566 )

266,746

1,059,124,890

42,594,641

1,016,530,249(285,234,185 )(285,234,185 )

2,168,286,553--

11,172(7,891 )

8,406,282

4,796

48,469-588,918,059(7,621,954 )

596,540,013(278,751,590 )(278,751,590 )$ 1,849,657,256

Total

$

$

14,835,672(167,009 )20

12,350,219

-

-

-

-

-

-

205,790(164,476 )

370,266-

2,446,652

155(107,382 )

110

7,891

1,045,516---

535,619

2,498

533,121-964,743

Non-controlling
Interests$ 2,960,488,867(167,009 )13,225

16,466,159

4,541(52,929 )--(871,566 )

266,746

1,059,330,680

42,430,165

1,016,900,515(285,234,185 )(285,234,185 )

2,170,733,205

155(107,382 )

11,282-9,451,798

4,796

48,469-589,453,678(7,619,456 )

597,073,134(278,751,590 )(278,751,590 )$ 1,850,621,999

Total
EquityTaiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS(In Thousands of New Taiwan Dollars)

2022
CASH FLOWS FROM OPERATING ACTIVITIESIncome before income tax
Adjustments for:
Depreciation expense
Amortization expense
Expected credit losses recognized (reversal) on investments in debt
instruments
Finance costs
Share of profits of associates
Interest income
Share-based compensation
Loss (gain) on disposal or retirement of property, plant and equipment, net
Loss on disposal or retirement of intangible assets, net
Impairment loss on property, plant and equipment
Loss (gain) on disposal of investments in debt instruments at fair value
through other comprehensive income, net
Loss (gain) on foreign exchange, net
Dividend income
OthersChanges in operating assets and liabilities:
Financial instruments at fair value through profit or loss
Notes and accounts receivable, net
Receivables from related parties
Other receivables from related parties
Inventories
Other financial assets
Other current assets
Accounts payable
Payables to related parties
Salary and bonus payable
Accrued profit sharing bonus to employees and compensation to directors
Accrued expenses and other current liabilities
Other noncurrent liabilities
Net defined benefit liability
Cash generated from operations
Income taxes paid
Net cash generated by operating activities
CASH FLOWS FROM INVESTING ACTIVITIESAcquisitions of:Financial instruments at fair value through profit or loss
Financial assets at fair value through other comprehensive income
Financial assets at amortized cost
Property, plant and equipment
Intangible assets
Proceeds from disposal or redemption of:Financial assets at fair value through other comprehensive income
Financial assets at amortized cost
Property, plant and equipment
Intangible assets- 12 - 12 -$ 1,144,190,718

2021

$

663,126,314

428,498,179
8,756,094

414,187,700
8,207,169

52,351
11,749,984(7,798,359)(22,422,209)
302,348(98,856)
6,004
790,740(2,735)5,414,218(5,603,084)(5,708,765)
7,788
273,6271,228
274,388

410,076
10,342,706(266,767)
138,827(93,229)(16,115,936)(362,310)(414,219)(1,354,359)(32,169,853)(868,634)(7,444)(28,046,827)(1,680,611)(4,450,883)
7,594,105
205,451
12,633,409
25,223,833
46,578,784
101,390,476(2,538,848)
1,697,160,435(86,561,247)

2,649,244(52,105,823)(157,193)(10,886)(55,748,914)(8,236,897)(3,899,043)
8,298,319(670,532)
3,730,859
843,695
84,322,721
154,085,985(635,116)
1,195,658,573(83,497,851)

1,610,599,188

1,112,160,722(125,540)(54,566,725)(183,125,920)(1,082,672,130)(6,954,326)(255,888,679)(3,799,737)(839,195,708)(9,040,751)

44,963,367
62,329,674
983,358
12,636

254,604,537
9,368,275
390,364(Continued)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS(In Thousands of New Taiwan Dollars)

2022
Proceeds from return of capital of investments in equity instruments at fairvalue through other comprehensive income
Derecognition of hedging financial instruments
Interest received
Proceeds from government grants - property, plant and equipment
Proceeds from government grants - others
Other dividends received
Dividends received from investments accounted for using equity method
Increase in prepayments for leases
Refundable deposits paid
Refundable deposits refunded$

Net cash used in investing activities

2,938
1,684,430
18,083,755
7,046,136
5,296
266,767
2,749,667(2,117,041)
505,4232021$

115,627
276,261
5,990,948
821,3126,605
362,310
2,136,426(1,200,000)(1,997,337)
683,684(1,190,928,235)(836,365,863)(111,959,992)
198,293,561(4,400,000)
2,670,000(166,667)(414,307)(871,566)(2,428,277)(12,218,659)
271,387(62,100)(285,234,185)
13,225
16,263,548

35,668,397
364,592,792(2,600,000)
1,510,000(737,724)(1,985,338)(3,833,633)
469,041(36,763)(265,786,399)
9,451,798
11,282(115,015)(200,244,032)

136,608,438

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS

58,396,970(7,583,752)

NET INCREASE IN CASH AND CASH EQUIVALENTS

277,823,891

404,819,545

1,064,990,192

660,170,647$ 1,342,814,083$ 1,064,990,192

CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in short-term loans
Proceeds from issuance of bonds
Repayment of bonds
Proceeds from long-term bank loans
Repayment of long-term bank loans
Payments for transaction costs attributable to the issuance of bonds
Treasury stock acquired
Repayment of the principal portion of lease liabilities
Interest paid
Guarantee deposits received
Guarantee deposits refunded
Cash dividends
Disposal of ownership interests in subsidiaries (without losing control)
Donation from shareholders
Increase (decrease) in non-controlling interests
Net cash generated by (used in) financing activities

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR

The accompanying notes are an integral part of the consolidated financial statements.

- 13 - 13 -(Concluded)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1. GENERAL
Taiwan Semiconductor Manufacturing Company Limited (TSMC), a Republic of China (R.O.C.) corporation,
was incorporated on February 21, 1987. TSMC is a dedicated foundry in the semiconductor industry which
engages mainly in the manufacturing, sales, packaging, testing and computer-aided design of integrated
circuits and other semiconductor devices and the manufacturing of masks.
On September 5, 1994, TSMC’s shares were listed on the Taiwan Stock Exchange (TWSE). On October 8,
1997, TSMC listed some of its shares of stock on the New York Stock Exchange (NYSE) in the form ofAmerican Depositary Shares (ADSs).
The address of its registered office and principal place of business is No. 8, Li-Hsin Rd. 6, Hsinchu Science
Park, Taiwan. The principal operating activities of TSMC’s subsidiaries are described in Note 4.
2. THE AUTHORIZATION OF FINANCIAL STATEMENTS
The accompanying consolidated financial statements were approved and authorized for issue by the Board of
Directors on February 14, 2023.

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING
STANDARDS
a. Initial application of the amendments to the International Financial Reporting Standards (IFRS),International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC)(collectively, “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)
The initial application of the amendments to the IFRSs endorsed and issued into effect by the FSC did
not have a significant effect on the accounting policies of TSMC and its subsidiaries (collectively as the“Company”).
b. The IFRSs issued by International Accounting Standards Board (IASB) and endorsed by the FSC witheffective date starting 2023

New, Revised or Amended Standards and Interpretations
Amendments to IAS 1 “Disclosure of Accounting Policies”
Amendments to IAS 8 “Definition of Accounting Estimates”
Amendments to IAS 12 “Deferred Tax related to Assets andLiabilities arising from a Single Transaction”- 14 - 14 -Effective Date Issued
by IASB
January 1, 2023
January 1, 2023
January 1, 2023

c. The IFRSs issued by IASB but not yet endorsed and issued into effect by the FSC

New, Revised or Amended Standards and Interpretations
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture”
Amendments to IAS 1 “Classification of Liabilities as Current or
Non-current” and “Non-current Liabilities with Covenants”

Effective Date Issued
by IASB
To be determined by IASB
January 1, 2024

As of the date the accompanying consolidated financial statements were authorized for issue, theCompany continues in evaluating the impact on its financial position and financial performance from theinitial adoption of the aforementioned standards or interpretations and related applicable period. The
related impact will be disclosed when the Company completes its evaluation.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESFor the convenience of readers, the accompanying consolidated financial statements have been translated into
English from the original Chinese version prepared and used in the R.O.C. If there is any conflict between
the English version and the original Chinese version or any difference in the interpretation of the two versions,the Chinese-language consolidated financial statements shall prevail.
Statement of Compliance
The accompanying consolidated financial statements have been prepared in conformity with the Regulations
Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed by the FSC
with the effective dates (collectively, “Taiwan-IFRSs”).
Basis of Preparation
The accompanying consolidated financial statements have been prepared on the historical cost basis except
for financial instruments that are measured at fair values, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for the assets.
Basis of Consolidation
The basis for the consolidated financial statements
The consolidated financial statements incorporate the financial statements of TSMC and entities controlled
by TSMC (its subsidiaries).
Income and expenses of subsidiaries acquired or disposed of are included in the consolidated statement ofcomprehensive income from the effective date of acquisition and up to the effective date of disposal, as
appropriate. Total comprehensive income of subsidiaries is attributed to the shareholders of the parent and to
the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies into line with those used by the Company.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control
over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Company’s
interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in thesubsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the- 15 - 15 -

fair value of the consideration paid or received is recognized directly in equity and attributed to shareholdersof the parent.
When the Company loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated
as the difference between:a. the aggregate of the fair value of consideration received and the fair value of any retained interest at thedate when control is lost; andb. the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any
non-controlling interest.
The Company shall account for all amounts recognized in other comprehensive income in relation to thesubsidiary on the same basis as would be required if the Company had directly disposed of the related assets
and liabilities.
The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded
as the cost on initial recognition of an investment in an associate.
The subsidiaries in the consolidated financial statements
The detail information of the subsidiaries at the end of reporting period was as follows:

Name of Investor
TSMC

Name of Investee
TSMC North America

TSMC Europe B.V. (TSMC
Europe)
TSMC Japan Limited (TSMC
Japan)
TSMC Design Technology
Japan, Inc. (TSMC JDC)TSMC Japan 3DIC R&D
Center, Inc. (TSMC 3DIC)
TSMC Korea Limited (TSMC
Korea)
TSMC Partners, Ltd. (TSMC
Partners)

TSMC Global, Ltd. (TSMC
Global)
TSMC China Company
Limited (TSMC China)

TSMC Nanjing Company
Limited (TSMC Nanjing)

VisEra Technologies Company
Ltd. (VisEra Tech)

TSMC Arizona Corporation(TSMC Arizona)
Japan Advanced
Semiconductor
Manufacturing, Inc. (JASM)
VentureTech Alliance Fund II,
L.P. (VTAF II)
VentureTech Alliance Fund III,
L.P. (VTAF III)
Emerging Fund L.P. (Emerging
Fund)

Main Businesses and Products

Establishment
and Operating
Location

Percentage of Ownership
December 31,
December 31,
2022
2021

Note

Sales and marketing of integrated
circuits and other semiconductor
devicesCustomer service and supporting
activities
Customer service and supporting
activities
Engineering support activities

San Jose, California,
U.S.A.

100%

100%

-

Amsterdam, theNetherlands
Yokohama, Japan

100%

100%

a)

100%

100%

a)

Yokohama, Japan

100%

100%

a)

Engineering support activities

Yokohama, Japan

100%

100%

a)

Customer service and supporting
activities
Investing in companies involved in thesemiconductor design andmanufacturing, and other investment
activities

Seoul, Korea

100%

100%

a)

Tortola, British Virgin
Islands

100%

100%

a)

Investment activities

Tortola, British Virgin
Islands
Shanghai, China

100%

100%

-

100%

100%

-

Nanjing, China

100%

100%

-

Hsin-Chu, Taiwan

68%

73%

b)

Phoenix, Arizona,
U.S.A.

100%

100%

c)

Kumamoto, Japan

71%

100%

a), d)

Cayman Islands

98%

98%

a)

Manufacturing, sales, testing andcomputer-aided design of integrated
circuits and other semiconductor
devices
Manufacturing, sales, testing andcomputer-aided design of integrated
circuits and other semiconductor
devices
Research, design, development,
manufacturing, sales, packaging andtest of color filter

Manufacturing, sales and testing ofintegrated circuits and othersemiconductor devices
Manufacturing, sales, testing andcomputer aided design of integrated
circuits and other semiconductor
devices
Investing in technology start-up
companies
Investing in technology start-up
companies
Investing in technology start-up
companies

Cayman Islands

98%

98%

a)

Cayman Islands

99.9%

99.9%

a)

(Continued)- 16 - 16 -Name of Investor
TSMC Partners

TSMC Development

VTAF III

Name of Investee
TSMC Development, Inc.
(TSMC Development)
TSMC Technology, Inc.
(TSMC Technology)
TSMC Design Technology
Canada Inc. (TSMC Canada)
WaferTech, LLC (WaferTech)

Growth Fund Limited (Growth
Fund)

Main Businesses and Products

Establishment
and Operating
Location

Percentage of Ownership
December 31,
December 31,
2022
2021

Note

Investing in companies involved insemiconductor manufacturing
Engineering support activities

Delaware, U.S.A.

100%

100%

-

Delaware, U.S.A.

100%

100%

a)

Engineering support activities

Ontario, Canada

100%

100%

a)

Manufacturing, sales and testing ofintegrated circuits and othersemiconductor devices
Investing in technology start-up
companies

Washington, U.S.A.

100%

100%

-

Cayman Islands

100%

100%

a)

(Concluded)Note a:This is an immaterial subsidiary for which the consolidated financial statements are not audited by the Company’s independent auditors.

Note b:VisEra has increased its capital in June 2022. After the increase in capital, TSMC’s shareholding in VisEra decreased from 73% to 68%. This transaction was accounted for as an equity
transaction since the transaction did not change TSMC’s control over VisEra.

Note c:Under the terms of the development agreement entered into between TSMC Arizona and the City of Phoenix, the City of Phoenix commits approximately US$205 million toward various
public infrastructure projects in the area of the proposed manufacturing facility, conditioned on TSMC Arizona’s achieving a minimum project scale with defined spending andjob-creation thresholds.

Note d:JASM is established in December 2021 and has increased its capital in January 2022. After the increase in capital, TSMC’s shareholding in JASM decreased from 100% to 81%. In
addition, JASM increased its capital by issuing noncumulative preferred shares and common shares in April 2022, TSMC’s shareholding in JASM decreased from 81% to 71% and the
proportion of voting right remain 81%. The aforementioned transactions were accounted for as an equity transaction since the transaction did not change TSMC’s control over JASM.

Foreign Currencies
The financial statements of each individual consolidated entity were expressed in the currency which reflected
its primary economic environment (functional currency). The functional currency of TSMC and presentation
currency of the consolidated financial statements are both New Taiwan Dollars (NT$). In preparing theconsolidated financial statements, the operating results and financial positions of each consolidated entity aretranslated into NT$.
In preparing the financial statements of each individual consolidated entity, transactions in currencies otherthan the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailingat the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at that date. Such exchange differences are recognized in
profit or loss in the year in which they arise. Non-monetary items measured at fair value that are denominatedin foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined.
Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for theyear except for exchange differences arising on the retranslation of non-monetary items in respect of whichgains and losses are recognized directly in other comprehensive income, in which case, the exchange
differences are also recognized directly in other comprehensive income. Non-monetary items that aremeasured in terms of historical cost in foreign currencies are not retranslated.
For the purposes of presenting consolidated financial statements, the assets and liabilities of the Company’s
foreign operations are translated into NT$ using exchange rates prevailing at the end of each reporting period.
Income and expense items are translated at the average exchange rates for the period. Exchange differences
arising, if any, are recognized in other comprehensive income and accumulated in equity (attributed to
non-controlling interests as appropriate).
Classification of Current and Noncurrent Assets and Liabilities
Current assets are assets held for trading purposes and assets expected to be converted to cash, sold or
consumed within one year from the end of the reporting period. Current liabilities are obligations incurred
for trading purposes and obligations expected to be settled within one year from the end of the reporting
period. Assets and liabilities that are not classified as current are noncurrent assets and liabilities, respectively.

- 17 - 17 -

Cash Equivalents
Cash equivalents, for the purpose of meeting short-term cash commitments, consist of highly liquid time
deposits and investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
Financial Instruments
Financial assets and liabilities shall be recognized when the Company becomes a party to the contractual
provisions of the instruments.
Financial assets and liabilities are initially recognized at fair values. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets
and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value ofthe financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss arerecognized immediately in profit or loss.
Financial Assets
The classification of financial assets depends on the nature and purpose of the financial assets and isdetermined at the time of initial recognition. Regular way purchases or sales of financial assets are recognizedand derecognized on a trade date or settlement date basis for which financial assets were classified in thesame way, respectively. Regular way purchases or sales are purchases or sales of financial assets that requiredelivery of assets within the time frame established by regulation or convention in the marketplace.
a. Category of financial assets and measurement
Financial assets are classified into the following categories: financial assets at FVTPL, investments indebt instruments and equity instruments at FVTOCI, and financial assets at amortized cost.
1) Financial asset at FVTPL
For certain financial assets which include debt instruments that do not meet the criteria of amortizedcost or FVTOCI, it is mandatorily required to measure them at FVTPL. Any gain or loss arising fromremeasurement is recognized in profit or loss. The net gain or loss recognized in profit or loss
incorporates any interest earned on the financial asset.
2) Investments in debt instruments at FVTOCI
Debt instruments with contractual terms specifying that cash flows are solely payments of principal
and interest on the principal amount outstanding, together with objective of collecting contractual
cash flows and selling the financial assets, are measured at FVTOCI.
Interest income calculated using the effective interest method, foreign exchange gains and losses andimpairment gains or losses on investments in debt instruments at FVTOCI are recognized in profit
or loss. Other changes in the carrying amount of these debt instruments are recognized in othercomprehensive income and will be reclassified to profit or loss when these debt instruments aredisposed.
3) Investments in equity instruments at FVTOCI
On initial recognition, the Company may irrevocably designate investments in equity investmentsthat is not held for trading as at FVTOCI.

- 18 - 18 -

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains andlosses arising from changes in fair value recognized in other comprehensive income and accumulated
in other equity.
Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss
when the Company’s right to receive the dividends is established, unless the Company’s rights
clearly represent a recovery of part of the cost of the investment.
4) Measured at amortized cost
Cash and cash equivalents, commercial paper, debt instrument investments, notes and accounts
receivable (including related parties), other receivables, refundable deposits and temporary payments(including those classified under other current assets and other noncurrent assets) are measured atamortized cost.
Debt instruments with contractual terms specifying that cash flows are solely payments of principal
and interest on the principal amount outstanding, together with objective of holding financial assets
in order to collect contractual cash flows, are measured at amortized cost.
Subsequent to initial recognition, financial assets measured at amortized cost are measured atamortized cost, which equals to carrying amount determined by the effective interest method less any
impairment loss.
b. Impairment of financial assets
At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial
assets at amortized cost (including accounts receivable) and for investments in debt instruments that aremeasured at FVTOCI.
The loss allowance for accounts receivable is measured at an amount equal to lifetime expected credit
losses. For financial assets at amortized cost and investments in debt instruments that are measured at
FVTOCI, when the credit risk on the financial instrument has not increased significantly since initialrecognition, a loss allowance is recognized at an amount equal to expected credit loss resulting frompossible default events of a financial instrument within 12 months after the reporting date. If, on the other
hand, there has been a significant increase in credit risk since initial recognition, a loss allowance isrecognized at an amount equal to expected credit loss resulting from all possible default events over the
expected life of a financial instrument.
The Company recognizes an impairment loss in profit or loss for all financial instruments with acorresponding adjustment to their carrying amount through a loss allowance account, except forinvestments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognizedin other comprehensive income and does not reduce the carrying amount of the financial asset.
c. Derecognition of financial assets
The Company derecognizes a financial asset only when the contractual rights to the cash flows from thefinancial asset expire, or when it transfers the financial asset and substantially all the risks and rewardsof ownership of the financial asset to another entity.
On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s
carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.
On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset’s
carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss
that had been recognized in other comprehensive income is recognized in profit or loss. However, on
derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss that had- 19 - 19 -

been recognized in other comprehensive income is transferred directly to retained earnings, without
recycling through profit or loss.
Financial Liabilities and Equity Instruments
Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity
in accordance with the substance of the contractual arrangements and the definitions of a financial liability
and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, netof direct issue costs.
Financial liabilities
Financial liabilities are subsequently measured either at amortized cost using effective interest method or at
FVTPL.
Financial liabilities are classified as at fair value through profit or loss when the financial liability is either
held for trading or is designated as at fair value through profit or loss.
Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses
arising on remeasurement recognized in profit or loss.
Financial liabilities other than those held for trading purposes and designated as at FVTPL are subsequently
measured at amortized cost at the end of each reporting period.
Derecognition of financial liabilities
The Company derecognizes financial liabilities when, and only when, the Company’s obligations aredischarged, cancelled or they expire. The difference between the carrying amount of the financial liability
derecognized and the consideration paid and payable is recognized in profit or loss.
Derivative Financial Instruments
Derivative financial instruments are initially recognized at fair value at the date the derivative contracts areentered into and are subsequently remeasured to their fair value at the end of each reporting period. The
resulting gain or loss is recognized in profit or loss immediately unless the derivative financial instrument isdesignated and effective as a hedging instrument, in which event the timing of the recognition in profit orloss depends on the nature of the hedge relationship.
Hedge Accounting
a. Fair value hedge
The Company designates certain hedging instruments, such as interest rate futures contracts, to partiallyhedge against the fair value change caused by interest rates fluctuation in the Company’s fixed income
investments. Changes in the fair value of hedging instruments that are designated and qualify as fair value
hedges are recognized in profit or loss immediately, together with any changes in the fair value of thehedged items that are attributable to the hedged risk.

- 20 - 20 -

b. Cash flow hedge
The Company designates certain hedging instruments, such as forward contracts, to partially hedge its
foreign exchange rate risks or interest rate risks associated with certain highly probable forecast
transactions (capital expenditures or issuance of debts). The effective portion of changes in the fair valueof hedging instruments is recognized in other comprehensive income. When forecast transactions actuallytake place, the accumulated gains or losses that were recognized in other comprehensive income aretransferred from equity to the initial cost of the hedged items, or reclassified to finance costs of hedged
items in the same period or periods during which the hedged expected future cash flows affect profit orloss. The gains or losses from hedging instruments relating to the ineffective portion are recognized
immediately in profit or loss.
The Company prospectively discontinues hedge accounting only when the hedging relationship ceases tomeet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated or
exercised.
Inventories
Inventories are stated at the lower of cost or net realizable value. Inventories are recorded at standard costand adjusted to approximate weighted-average cost at the end of the reporting period. Net realizable value
represents the estimated selling price of inventories less all estimated costs of completion and costs necessary
to make the sale.
Investments Accounted for Using Equity Method
Investments accounted for using the equity method are investments in associates.
An associate is an entity over which the Company has significant influence and that is neither a subsidiarynor a joint venture. Significant influence is the power to participate in the financial and operating policy
decisions of the investee but is not control or joint control over those policies.
The operating results and assets and liabilities of associates are incorporated in these consolidated financial
statements using the equity method of accounting. Under the equity method, an investment in an associate
is initially recognized in the consolidated statements of financial position at cost and adjusted thereafter torecognize the Company’s share of profit or loss and other comprehensive income of the associate as well as
the distribution received. The Company also recognizes its share in the changes in the equities of associates.
Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable
assets, liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized
as goodwill, which is included within the carrying amount of the investment. Any excess of the Company’s
share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of
acquisition, after reassessment, is recognized immediately in profit or loss.
When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment
as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell)with its carrying amount. Any impairment loss recognized forms part of the carrying amount of theinvestment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of
the investment subsequently increases.
When the Company subscribes to additional shares in an associate at a percentage different from its existingownership percentage, the resulting carrying amount of the investment differs from the amount of theCompany’s proportionate interest in the net assets of the associate. The Company records such a difference
as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If theCompany’s ownership interest is reduced due to the additional subscription to the shares of associate by otherinvestors, the proportionate amount of the gains or losses previously recognized in other comprehensive- 21 - 21 -

income in relation to that associate shall be reclassified to profit or loss on the same basis as would be required
if the associate had directly disposed of the related assets or liabilities.
When a consolidated entity transacts with an associate, profits and losses resulting from the transactions withthe associate are recognized in the Company’s consolidated financial statements only to the extent of interestsin the associate that are not owned by the Company.
Property, Plant and Equipment
Property, plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment. Costs include any incremental costs that are directly attributable to the construction, acquisitionof the item of property, plant and equipment or borrowing costs eligible for capitalization.
Property, plant and equipment in the course of construction for production, supply or administrative purposes
are carried at cost, less any recognized impairment loss. Such assets are classified to the appropriate categories
of property, plant and equipment when completed and ready for intended use. Depreciation of these assets,on the same basis as other identical categories of property, plant and equipment, commences when the assets
are available for their intended use.
Depreciation is recognized so as to write off the cost of the assets less their residual values over their useful
lives, and it is computed using the straight-line method mainly over the following estimated useful lives: land
improvements - 20 years; buildings (assets used by the Company and assets subject to operating leases) - 10
to 20 years; machinery and equipment (assets used by the Company and assets subject to operating leases) 5 years; and office equipment - 5 years. The estimated useful lives, residual values and depreciation method
are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted foron a prospective basis. Land is not depreciated.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits
are expected to arise from the continued use of the assets. Any gain or loss arising on the disposal or retirementof an item of property, plant and equipment is determined as the difference between the sales proceeds andthe carrying amount of the asset and is recognized in profit or loss.
LeasesFor a contract that contains a lease component and non-lease component, the Company may elect to accountfor the lease and non-lease components as a single lease component.
The Company as lessor
Rental income from operating lease is recognized on a straight-line basis over the term of the lease.
The Company as lessee
Except for payments for low-value asset leases and short-term leases (leases of machinery and equipment
and others) which are recognized as expenses on a straight-line basis, the Company recognizes right-of-use
assets and lease liabilities for all leases at the commencement date of the lease.
Right-of-use assets are measured at cost. The cost of right-of-use assets comprises the initial measurement oflease liabilities adjusted for lease payments and initial direct costs made at or before the commencement date,plus an estimate of costs needed to restore the underlying assets. Subsequent measurement is calculated ascost less accumulated depreciation and accumulated impairment loss and adjusted for changes in leaseliabilities as a result of lease term modifications or other related factors. Right-of-use assets are presented
separately in the consolidated balance sheets.

- 22 - 22 -

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlierof the end of the useful lives of the right-of-use assets or the end of the lease terms. If the lease transfers
ownership of the underlying assets to the Company by the end of the lease terms or if the cost of right-of-use
assets reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use
assets from the commencement dates to the end of the useful lives of the underlying assets.
Lease liabilities are measured at the present value of the lease payments. Lease payments comprise fixed
payments, variable lease payments which depend on an index or a rate and the exercise price of a purchase
option if the Company is reasonably certain to exercise that option. The lease payments are discounted using
the lessee’s incremental borrowing rates.
Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest
expense recognized over the lease terms. When there is a change in a lease term, a change in future lease
payments resulting from a change in an index or a rate used to determine those payments, or a change in theassessment of an option to purchase an underlying asset, the Company remeasures the lease liabilities witha corresponding adjustment to the right-of-use assets. Lease liabilities are presented on a separate line in the
consolidated balance sheets.
Intangible Assets
Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of
the business less accumulated impairment losses, if any.
Other intangible assets
Other separately acquired intangible assets with finite useful lives are carried at cost less accumulated
amortization and accumulated impairment losses. Amortization is recognized using the straight-line method
over the following estimated useful lives: Technology license fees - the estimated life of the technology or
the term of the technology transfer contract; software and system design costs - 3 years or contract period;
patent and others - the economic life or contract period. The estimated useful life and amortization method
are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted
for on a prospective basis.
Impairment of Tangible Assets, Right-of-use Assets and Intangible Assets
Goodwill
Goodwill is not amortized and instead is tested for impairment annually, or more frequently when there is anindication that the cash generating unit may be impaired. For the purpose of impairment testing, goodwill isallocated to each of the Company’s cash-generating units or groups of cash-generating units that are expected
to benefit from the synergies of the combination. If the recoverable amount of a cash-generating unit is lessthan its carrying amount, the difference is allocated first to reduce the carrying amount of any goodwill
allocated to such cash generating unit and then to the other assets of the cash generating unit pro rata basedon the carrying amount of each asset in the cash generating unit. Any impairment loss for goodwill isrecognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent
periods.
Tangible assets, right-of-use assets and other intangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible assets (property,
plant and equipment), right-of-use assets and other intangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible
to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of- 23 - 23 -the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation canbe identified, corporate assets are also allocated to individual cash-generating units, or otherwise they areallocated to the smallest group of cash-generating units for which a reasonable and consistent allocationbasis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate thatreflects current market assessments of the time value of money and the risks specific to the asset for which
the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount,the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. An impairment
loss is recognized immediately in profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset or a cash-generating unit
is increased to the revised estimate of its recoverable amount, but the increased carrying amount does notexceed the carrying amount that would have been determined had no impairment loss been recognized forthe asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized immediately
in profit or loss.
Revenue Recognition
The Company recognizes revenue when performance obligations are satisfied. The performance obligations
are satisfied when customers obtain control of the promised goods, which is generally when the goods aredelivered to the customers’ specified locations.
Revenue from sale of goods is measured at the fair value of the consideration received or receivable. Revenue
is reduced for estimated customer returns, rebates and other similar allowances. Estimated sales returns andother allowances is generally made and adjusted based on historical experience and the consideration ofvarying contractual terms to recognize refund liabilities, which is classified under accrued expenses and othercurrent liabilities.
In principle, payment term granted to customers is due 30 days from the invoice date or 30 days from the endof the month of when the invoice is issued. Due to the short term nature of the receivables from sale of goods
with the immaterial discounted effect, the Company measures them at the original invoice amounts without
discounting.
Employee Benefits
Short-term employee benefits
Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amountof the benefits expected to be paid in exchange for service rendered by employees.
Retirement benefits
For defined contribution retirement benefit plans, payments to the benefit plan are recognized as an expense
when the employees have rendered service entitling them to the contribution. For defined benefit retirement
benefit plans, the cost of providing benefit is recognized based on actuarial calculations.
Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit
retirement benefit plans are determined using the Projected Unit Credit Method. Service cost (including
current service cost), and net interest on the net defined benefit liability (asset) are recognized as employee
benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses and thereturn on plan assets (excluding interest), is recognized in other comprehensive income in the period in which- 24 - 24 -

they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained
earnings and will not be reclassified to profit or loss.
Net defined benefit liability represents the actual deficit in the Company’s defined benefit plan.
Treasury Stock
Treasury stock represents the outstanding shares that the Company buys back from market, which is stated atcost and shown as a deduction in shareholders’ equity. When the Company retires treasury stock, the treasury
stock account is reduced and the common stock as well as the capital surplus - additional paid-in capital are
reversed on a pro rata basis. When the book value of the treasury stock exceeds the sum of the par value
and additional paid-in capital, the difference is charged to capital surplus - treasury stock transactions and toretained earnings for any remaining amount.
Share-based payment arrangements
a. Equity-settled share-based payment arrangements
Restricted shares for employees are expensed on a straight-line basis over the vesting period, based on
the fair value at the grant date and the Company’s best estimate of the number expected to ultimately
vest, with a corresponding increase in other equity - unearned employee benefits.
When restricted shares for employees are issued, other equity - unearned employee benefits is recognizedon the grant date, with a corresponding increase in capital surplus - restricted shares for employees.
Dividends paid to employees on restricted shares which do not need to be returned if employees resignin the vesting period are recognized as expenses upon the dividend declaration with a corresponding
adjustment in retained earnings.
At the end of each reporting period, the Company revises its estimate of the number of restricted sharesfor employees that are expected to vest. The impact from such revision is recognized in profit or loss sothat the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capitalsurplus - restricted shares for employees.
b. Cash-settled share-based payment arrangements
For cash-settled share-based payments, a liability is recognized for the services acquired, measured at
the fair value of the liability incurred. At the end of each reporting period until the liability is settled,
and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value
recognized in profit or loss.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
Income tax on unappropriated earnings (excluding earnings from foreign consolidated subsidiaries) is
expensed in the year the shareholders approved the appropriation of earnings which is the year subsequent
to the year the earnings are generated.
Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

- 25 - 25 -

Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the consolidated financial statements and the corresponding tax bases used in the computation of taxable
profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax
assets are generally recognized for all deductible temporary differences, net operating loss carryforwards andtax credits for research and development expenses to the extent that it is probable that taxable profits will beavailable against which those deductible temporary differences can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates, except where the Company is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred
tax assets arising from deductible temporary differences associated with such investments are only recognized
to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefitsof the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to theextent that it is no longer probable that sufficient taxable profits will be available to allow all or part of thedeferred tax asset to be recovered. The deferred tax assets which originally not recognized is also reviewed
at the end of each reporting period and recognized to the extent that it is probable that sufficient taxable
profits will be available to allow all or part of the deferred tax asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the year in which
the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities andassets reflects the tax consequences that would follow from the manner in which the Company expects, at theend of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognizedin other comprehensive income or directly in equity, in which case, the current and deferred tax are also
recognized in other comprehensive income or directly in equity, respectively.
Government Grants
Government grants are not recognized until there is reasonable assurance that the Company will comply withthe conditions attaching to them and that the grants will be received.
Government grants whose primary condition is that the Company should purchase, construct or otherwise
acquire noncurrent assets (mainly including land use right and depreciable assets) are recognized as adeduction from the carrying amount of the related assets and recognized as a reduced depreciation oramortization charge in profit or loss over the contract period or useful lives of the related assets. Government
grants that are receivables as compensation for expenses already incurred are deducted from incurred
expenses in the period in which they become receivables.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND
UNCERTAINTYThe Company has considered the economic implications of COVID-19 on critical accounting estimates andwill continue evaluating the impact on its financial position and financial performance as a result of thepandemic.

- 26 - 26 -

In the application of the aforementioned Company’s accounting policies, the Company is required to makejudgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based on historical experienceand other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the year in which the estimate is revised if the revision affects only that year, orin the year of the revision and future years if the revision affects both current and future years.
Critical Accounting Judgments
Revenue Recognition
The Company recognizes revenue when the conditions described in Note 4 are satisfied.
Commencement of Depreciation Related to Property, Plant and Equipment Classified as Equipment
under Installation and Construction in Progress (EUI/CIP)As described in Note 4, commencement of depreciation related to EUI/CIP involves determining when theassets are available for their intended use. The criteria the Company uses to determine whether EUI/CIP areavailable for their intended use involves subjective judgments and assumptions about the conditions
necessary for the assets to be capable of operating in the intended manner.
Judgments on Lease Terms
In determining a lease term, the Company considers all facts and circumstances that create an economic
incentive to exercise or not to exercise an option, including any expected changes in facts and circumstancesfrom the commencement date until the exercise date of the option. Main factors considered include
contractual terms and conditions covered by the optional periods, and the importance of the underlying asset
to the lessee’s operations, etc. The lease term is reassessed if a significant change in circumstances that arewithin the control of the Company occurs.
Key Sources of Estimation and Uncertainty
Estimation of Sales Returns and Allowances
Sales returns and other allowance is estimated and recorded based on historical experience and inconsideration of different contractual terms. The amount is deducted from revenue in the same period therelated revenue is recorded. The Company periodically reviews the reasonableness of the estimates.
Valuation of Inventory
Inventories are stated at the lower of cost or net realizable value, and the Company uses estimate to determine
the net realizable value of inventory at the end of each reporting period.
The Company estimates the net realizable value of inventory for normal waste, obsolescence andunmarketable items at the end of reporting period and then writes down the cost of inventories to net realizablevalue. The net realizable value of the inventory is determined mainly based on assumptions of future demand
within a specific time horizon.
Impairment of Tangible Assets, Right-of-use Assets and Intangible Assets Other than Goodwill
In the process of evaluating the potential impairment of tangible assets, right-of-use assets and intangible
assets other than goodwill, the Company determines the independent cash flows, useful lives, expected future
revenue and expenses related to the specific asset groups with the consideration of the nature of- 27 - 27 -

semiconductor industry. Any change in these estimates based on changed economic conditions or businessstrategies could result in significant impairment charges or reversal in future years.
Realization of Deferred Income Tax Assets
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available
against which those deferred tax assets can be utilized. Assessment of the realization of the deferred tax assets
requires subjective judgment and estimate, including the future revenue growth and profitability, tax holidays,
the amount of tax credits can be utilized and feasible tax planning strategies. Any changes in the global
economic environment, the industry trends and relevant laws and regulations could result in significant
adjustments to the deferred tax assets.
Determination of Lessees’ Incremental Borrowing Rates
In determining a lessee’s incremental borrowing rate used in discounting lease payments, the Company
mainly takes into account the market risk-free rates, the estimated lessee’s credit spreads and secured status
in a similar economic environment.

6. CASH AND CASH EQUIVALENTS

Cash and deposits in banks
Commercial paper
Government bonds
Repurchase agreements
Corporate bonds

December 31,
2022

December 31,
2021$ 1,329,291,394
9,566,430
2,451,570
1,133,310
371,379$ 1,058,808,104
906,743
5,275,345-$ 1,342,814,083$ 1,064,990,192

Deposits in banks consisted of highly liquid time deposits that were readily convertible to known amounts ofcash and were subject to an insignificant risk of changes in value.

7. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
December 31,
2022

December 31,
2021$

947,546
122,852$ 1,070,398$$

159,048
159,048$$

681,914

Financial assets
Mandatorily measured at FVTPL
Forward exchange contracts
Convertible bonds

Financial liabilities
Held for trading
Forward exchange contracts

116,215

The Company entered into forward exchange contracts to manage exposures due to fluctuations of foreignexchange rates. These forward exchange contracts did not meet the criteria for hedge accounting. Therefore,
the Company did not apply hedge accounting treatment for these forward exchange contracts.

- 28 - 28 -Outstanding forward exchange contracts consisted of the following:

Maturity Date

Contract Amount(In Thousands)

January 2023 to March 2023
January 2023 to March 2023
January 2023 to March 2023

NT$ 79,610,590
US$752,486
RMB 1,448,371

January 2022 to March 2022
January 2022 to March 2022

NT$ 132,734,482
US$ 2,009,148

December 31, 2022
Sell NT$
Sell US$
Sell RMB
December 31, 2021
Sell NT$
Sell US$

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Investments in debt instruments at FVTOCI
Corporate bonds
Agency bonds/Agency mortgage-backed securities
Government bonds
Asset-backed securities

Investments in equity instruments at FVTOCI
Non-publicly traded equity investments
Publicly traded stocks

Current
Noncurrent

December 31,
2022

December 31,
2021$ 66,116,166
28,399,890
18,929,924
9,274,697
122,720,677$ 57,253,161
32,070,114
21,345,794
8,660,424
119,329,493

6,159,200
277,866
6,437,066

5,887,892
189,758
6,077,650$ 129,157,743$ 125,407,143$ 122,998,543
6,159,200$ 119,519,251
5,887,892$ 129,157,743$ 125,407,143

These investments in equity instruments are held for medium to long-term purposes and therefore areaccounted for as FVTOCI. For dividends recognized from these investments, please refer to consolidated
statements of cash flows. All of the dividends are mainly from investments held at the end of the reporting
period.
For the years ended December 31, 2022 and 2021, as non-publicly traded investees were acquired and theCompany adjusted its investment portfolio, equity investments designated at FVTOCI were divested for
NT$561,600 thousand and NT$628,711 thousand, respectively. The related other equity-unrealized gain/loss
on financial assets at FVTOCI of NT$303,242 thousand and NT$185,993 thousand were transferred toincrease retained earnings, respectively.

- 29 - 29 -

As of December 31, 2022 and 2021, the cumulative loss allowance for expected credit loss of NT$37,783
thousand and NT$33,209 thousand was recognized under investments in debt instruments at FVTOCI,
respectively. Refer to Note 33 for information relating to the credit risk management and expected credit loss.
9. FINANCIAL ASSETS AT AMORTIZED COST

Corporate bonds
Commercial paper
Less: Allowance for impairment loss

Current
Noncurrent

December 31,
2022

December 31,
2021$ 81,041,056
48,742,817(56,439)$

5,310,039(3,077)$ 129,727,434$

5,306,962$ 94,600,219
35,127,215$

3,773,571
1,533,391$ 129,727,434$

5,306,962

Refer to Note 33 for information relating to credit risk management and expected credit loss for financial
assets at amortized cost.
10. HEDGING FINANCIAL INSTRUMENTS
December 31,
2022

December 31,
2021

Financial assets- current
Fair value hedges
Interest rate futures contracts
Cash flow hedges
Forward interest rate contracts

$

2,329

$

-

-

13,468$2,329$ 13,468$

813

Financial liabilities- current
Fair value hedges
Interest rate futures contracts

$

9,642

Fair value hedge
The Company entered into interest rate futures contracts, which are used to partially hedge against the fairvalue changes caused by interest rate fluctuation in the Company’s fixed income investments. The hedge
ratio is adjusted in response to the changes in the financial market and capped at 100%.
On the basis of economic relationships, the value of the interest rate futures contracts and the value of thehedged financial assets change in opposite directions in response to movements in interest rates.
The main source of hedge ineffectiveness in these hedging relationships is the credit risk of the hedged
financial assets, which is not reflected in the fair value of the interest rate futures contracts. No other sourcesof ineffectiveness emerged from these hedging relationships during the hedging period. Amount of hedge
ineffectiveness recognized in profit or loss is classified under other gains and losses, net.

- 30 - 30 -The following tables summarize the information relating to the hedges of interest rate risks.
December 31, 2022
Contract Amount(US$ in Thousands)

Hedging Instruments
Interest rate futures contracts - US Treasury
futures

Hedged Items

US$

Maturity

74,300March 2023

Asset Carrying AmountFinancial assets at FVTOCI$

Accumulated Amount ofFair Value Hedge
Adjustments

4,008,179$(1,516)

December 31, 2021
Contract Amount(US$ in Thousands)

Hedging Instruments
Interest rate futures contracts - US Treasury
futures

Hedged Items

US$

Maturity

53,900March 2022

Asset Carrying AmountFinancial assets at FVTOCI$

Accumulated Amount ofFair Value Hedge
Adjustments

4,079,274

$

9,642

The effect for the years ended December 31, 2022 and 2021 is detailed below:
Hedging Instruments/Hedged Items

Hedging Instruments
Interest rate futures contracts - US Treasury futures
Hedged Items
Financial assets at FVTOCI

Change in Value Used for
Calculating Hedge IneffectivenessYears Ended December 31
2022
2021
$ 283,995$ 148,817(283,995)(148,817)

$

-

$

-

Cash flow hedge
The Company entered into forward contracts to partially hedge foreign exchange rate risks or interest raterisks associated with certain highly probable forecast transactions (capital expenditures or issuance of debts).
The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%. The
forward contracts have maturities of 12 months or less.
On the basis of economic relationships, the Company expects that the value of forward contracts and thevalue of hedged transactions will change in opposite directions in response to movements in foreign exchange
rates or interest rates.

- 31 - 31 -

The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of thecounterparty’s own credit risk on the fair value of forward contracts. No other sources of ineffectivenessemerged from these hedging relationships during the hedging period. For the years ended December 31, 2022
and 2021, refer to Note 21(d) for gain or loss arising from changes in the fair value of hedging instruments,
the amount transferred to initial carrying amount of hedged items and the amount reclassified to finance costsof hedged items.
The following tables summarize the information relating to the hedges of interest rate risks.
December 31, 2021

Hedging Instruments

Contract Amount(In Thousands)

Maturity

Balance in
Other Equity(Continuing
Hedges)Forward interest rate contracts

US$ 328,000

January 2022

$ 128,165

The effect for the years ended December 31, 2022 and 2021 is detailed below:

Hedging Instruments/Hedged Items

Change in Value Used for
Calculating Hedge
IneffectivenessYears Ended December 31
2022
2021

Hedging Instruments
Forward exchange contracts (capital expenditures)
Forward interest rate contracts (issuance of debts)$$ 1,379,119$$(41,416)
132,508

Hedged Items
Forecast transaction (capital expenditures)
Forecast transaction (issuance of debts)$$ (1,379,119)$$

41,416(132,508)

December 31,
2022

December 31,
2021$ 222,761,927(331,646)
222,430,281
7,325,606$ 193,733,220(347,020)
193,386,200
4,199,909$ 229,755,887$ 197,586,109

11. NOTES AND ACCOUNTS RECEIVABLE, NET

At amortized cost
Notes and accounts receivable
Less: Loss allowance
At FVTOCIThe Company signed a contract with the bank to sell certain accounts receivable without recourse andtransaction cost required. These accounts receivable are classified as at FVTOCI because they are held
within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets.
In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days fromthe end of the month when the invoice is issued. Aside from recognizing impairment loss for credit-impaired
accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio of- 32 - 32 -

customers by different risk levels with consideration of factors of historical loss ratios and customers’
financial conditions, competitiveness and business outlook. For accounts receivable past due over 90 days
without collaterals or guarantees, the Company recognizes loss allowance at full amount.
Aging analysis of notes and accounts receivable

Not past due
Past due
Past due within 30 days
Past due over 31 days
Less: Loss allowance

December 31,
2022

December 31,
2021$ 205,053,142$ 191,740,045

24,516,277
518,114(331,646)

6,186,814
6,270(347,020)$ 229,755,887$ 197,586,109

All of the Company’s accounts receivable classified as at FVTOCI were not past due.
Movements of the loss allowance for accounts receivable
Years Ended December 31
2022
2021
Balance, beginning of year
Provision (Reversal)
Effect of exchange rate changes$ 347,020(15,449)75$ 246,626
100,408(14)

Balance, end of year

$ 331,646$ 347,020

For the years ended December 31, 2022 and 2021, the changes in loss allowance were mainly due to thevariations in the balance of accounts receivable of different risk levels.

12. INVENTORIES

Finished goods
Work in process
Raw materials
Supplies and spare parts

December 31,
2022

December 31,
2021$ 54,818,402
125,661,912
20,389,115
20,279,719$ 32,562,750
137,700,402
11,111,122
11,728,047$ 221,149,148$ 193,102,321

Write-down of inventories to net realizable value and reversal of write-down of inventories resulting fromthe increase in net realizable value were included in the cost of revenue during reporting period. The amounts
are illustrated below:
Years Ended December 31
2022
2021
$ 4,689,112

Inventory losses- 33 - 33 -$533,034

13. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
Associates consisted of the following:

Name of Associate
Vanguard International
Semiconductor Corporation(VIS)

Systems on Silicon
Manufacturing Company Pte
Ltd. (SSMC)
Xintec Inc. (Xintec)

Global Unichip Corporation(GUC)
Mutual-Pak Technology Co., Ltd.
(Mutual-Pak)

Principal Activities
Manufacturing, sales, packaging,testing and computer-aided design ofintegrated circuits and othersemiconductor devices and the
manufacturing and design service ofmasks
Manufacturing and sales of integrated
circuits and other semiconductor
devices
Wafer level chip size packaging andwafer level post passivationinterconnection service
Researching, developing,
manufacturing, testing and marketingof integrated circuits
Manufacturing of electronic parts,
wholesaling and retailing ofelectronic materials, and researching,developing and testing of RFID

Place of
Incorporation andOperation

Carrying Amount
December 31,
December 31,
2022
2021

Hsinchu, Taiwan$

13,492,653$% of Ownership and Voting Rights Heldby the Company
December 31,
December 31,
2022
2021

10,613,127

28%

28%

Singapore

8,934,731

6,795,699

39%

39%

Taoyuan, Taiwan

3,528,417

3,046,961

41%

41%

Hsinchu, Taiwan

1,666,651

1,484,683

35%

35%

New Taipei, Taiwan

19,053

22,948

28%

28%

$

27,641,505$

21,963,418

As of December 31, 2022 and 2021, no investments in associates are individually material to the Company.
Please refer to the consolidated statements of comprehensive income for recognition of share of both profit(loss) and other comprehensive income (loss) of associates that are not individually material.
The market prices of the associates’ ownership held by the Company in publicly traded stocks calculated by
the closing price at the end of the reporting period are summarized as follows. The closing price represents
the quoted price in active markets, the level 1 fair value measurement.
Name of Associate

December 31,
2022

December 31,
2021

VIS
GUC
Xintec$ 35,977,321$ 29,926,918$ 10,716,449$ 73,347,312$ 27,359,085$ 15,913,315

December 31,
2022

December 31,
2021$ 2,693,815,688
21,282$ 1,975,113,974
4,730$ 2,693,836,970$ 1,975,118,704

14. PROPERTY, PLANT AND EQUIPMENT

Assets used by the Company
Assets subject to operating leases- 34 - 34 -Assets used by the Company

Land and Land
Improvements

Buildings

Machinery andEquipment

6,488,230
816,366-$ 576,597,777
59,443,801(236,765 )$ 3,984,749,236
330,782,690(25,846,536 )

357,221

1,242,136(65,779 )6,322,919

Equipment under
Installation andConstruction in
Progress

Total

76,154,170
10,325,337(1,709,151 )$ 593,155,733
738,523,914-$ 5,237,145,146
1,139,892,108(27,792,452 )

257,684

5,162,961(65,779 )
13,342,921

OfficeEquipment

Cost
Balance at January 1, 2022
Additions
Disposals or retirements
Transfers to assets subject tooperating leases
Effect of exchange rate changes$$

Balance at December 31, 2022$

7,661,817$ 637,046,949$ 4,295,942,530$

85,028,040$ 1,336,842,608$ 6,362,521,944

Balance at January 1, 2022
Additions
Disposals or retirements
Transfers to assets subject tooperating leases
Impairment
Effect of exchange rate changes$

499,826
1,402-$ 306,165,242
35,982,373(225,637 )$ 2,903,539,441
380,216,160(24,706,719 )$

51,826,663
9,216,278(1,708,639 )$-$ 3,262,031,172
425,416,213(26,640,995 )

54,933

1,016,381(40,266 )5,872,264

790,740-(40,266 )
790,740
7,149,392

Balance at December 31, 2022$

556,161$ 342,938,359$ 3,264,880,880$

59,540,116$

790,740$ 3,668,706,256

Carrying amounts at December 31,
2022$

7,105,656$ 294,108,590$ 1,031,061,650$

25,487,924$ 1,336,051,868$ 2,693,815,688

Balance at January 1, 2021
Additions
Disposals or retirements
Transfers from assets subject tooperating leases
Transfers to assets subject tooperating leases
Effect of exchange rate changes$

3,942,625
2,587,183-$ 522,447,474
53,971,271(41,143 )$ 3,607,005,732
401,659,011(26,192,191 )$

68,862,648
7,642,962(333,385 )$ 223,965,360
369,545,869-$ 4,426,223,839
835,406,296(26,566,719 )-

35,4781,443,590--

1,479,068(41,578 )

184,697(244,579 )
1,077,673(18,055 )(355,496 )(244,579 )
847,241

Balance at December 31, 2021$

6,488,230$ 576,597,777$ 3,984,749,236$

76,154,170$ 593,155,733$ 5,237,145,146

Balance at January 1, 2021
Additions
Disposals or retirements
Transfers from assets subject tooperating leases
Transfers to assets subject tooperating leases
Impairment
Effect of exchange rate changes$

506,129
1,329-$ 271,799,471
34,331,645(36,527 )$ 2,555,529,969
368,777,680(22,230,098 )$

43,802,332
8,373,282(332,557 )$-$ 2,871,637,901
411,483,936(22,599,182 )-

15,066436,816--

451,882(7,632 )55,587(68,279 )274,388
818,965(16,394 )-(68,279 )274,388
850,526

Balance at December 31, 2021$

499,826$ 306,165,242$ 2,903,539,441$

51,826,663$-$ 3,262,031,172

Carrying amounts at December 31,
2021$

5,988,404$ 270,432,535$ 1,081,209,795$

24,327,507$ 593,155,733$ 1,975,113,974

Accumulated depreciationand impairment

205,814

Cost

Accumulated depreciationand impairment

The significant part of the Company’s buildings includes main plants, mechanical and electrical power
equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20
years, 10 years and 10 years, respectively.
In the first quarter of 2022 and 2021, the Company recognized an impairment loss of NT$790,740 thousand
and NT$274,388 thousand for certain machinery and equipment that were assessed to have no future use, andthe recoverable amount of the aforementioned assets were nil. Such impairment loss was recognized inother operating income and expenses.
Information about capitalized interest is set out in Note 24.

- 35 - 35 -

15. LEASE ARRANGEMENTS
a. Right-of-use assets
December 31,
2022

December 31,
2021$ 38,525,856
3,356,700
2,965
28,615$ 29,778,636
2,918,133
3,474
34,294$ 41,914,136$ 32,734,537

Carrying amounts
Land
Buildings
Machinery and equipment
Office equipment

Years Ended December 31
2022
2021
Additions to right-of-use assets
Depreciation of right-of-use assets
Land
Buildings
Machinery and equipment
Office equipment$ 12,610,664$

7,769,782$

2,119,828
928,726863
23,588$

1,825,712
707,856539
22,091$

3,073,005$

2,556,198

b. Lease liabilities
December 31,
2022

December 31,
2021

$

$

Carrying amounts
Current portion (classified under accrued expenses and othercurrent liabilities)
Noncurrent portion

2,603,504
29,764,097

2,176,451
20,764,214$ 32,367,601$ 22,940,665

December 31,
2022

December 31,
2021

0.39%-2.30%
0.39%-5.63%
0.71%
0.28%-4.71%

0.39%-2.14%
0.39%-3.88%
0.71%
0.28%-3.88%

Ranges of discount rates for lease liabilities are as follows:Land
Buildings
Machinery and equipment
Office equipment- 36 - 36 -

c. Material terms of right-of-use assets
The Company leases land and buildings mainly for the use of plants and offices with lease terms of 1 to
36 years. The lease contracts for land located in the R.O.C. specify that lease payments will be adjusted
every 2 years on the basis of changes in announced land value prices. The Company does not havepurchase options to acquire the leasehold land and buildings at the end of the lease terms.
d. Other lease information
Years Ended December 31
2022
2021
Expenses relating to short-term leases$ 4,731,087$ 5,250,279

Total cash outflow for leases$ 7,618,290$ 7,510,762

16. INTANGIBLE ASSETS

Goodwill

Technology
License Fees

Software andSystem Design
Costs

Patent andOthersTotal

Cost
Balance at January 1, 2022
Additions
Disposals or retirements
Effect of exchange rate changes$

5,379,164
412,657$

23,533,959
2,253,095(29,991)
1,956$

43,650,957
5,078,967(66,261)
12,131$

11,497,309
203,030
1,553$

84,061,389
7,535,092(96,252)
428,297

Balance at December 31, 2022$

5,791,821$

25,759,019$

48,675,794$

11,701,892$

91,928,526

Balance at January 1, 2022
Additions
Disposals or retirements
Effect of exchange rate changes

$

-

$

14,912,293
2,793,539(11,351)
1,956$

34,121,578
4,774,522(66,261)8,555$

8,205,821
1,188,033
686$

57,239,692
8,756,094(77,612)
11,197

Balance at December 31, 2022

$

-

$

17,696,437$

38,838,394$

9,394,540$

65,929,371

Carrying amounts at December 31, 2022$

5,791,821$

8,062,582$

9,837,400$

2,307,352$

25,999,155

Balance at January 1, 2021
Additions
Disposals or retirements
Effect of exchange rate changes$

5,436,602(57,438)$

22,161,712
1,372,806(559)$

36,238,967
7,726,168(318,736)
4,558$

11,277,701
219,504104$

75,114,982
9,318,478(318,736)(53,335)

Balance at December 31, 2021$

5,379,164$

23,533,959$

43,650,957$

11,497,309$

84,061,389

Balance at January 1, 2021
Additions
Disposals or retirements
Effect of exchange rate changes

$

-

$

12,226,066
2,686,786(559)$

30,111,759
4,323,860(317,508)
3,467$

7,008,9781,196,523
320$

49,346,803
8,207,169(317,508)
3,228

Balance at December 31, 2021

$

-

$

14,912,293$

34,121,578$

8,205,821$

57,239,692

Carrying amounts at December 31, 2021$

5,379,164$

8,621,666$

9,529,379$

3,291,488$

26,821,697

Accumulated amortization andimpairment

Cost

Accumulated amortization andimpairment

The Company’s goodwill has been tested for impairment at the end of the annual reporting period and therecoverable amount is determined based on the value in use. The value in use was calculated based on the
cash flow forecast from the financial budgets covering the future five-year period, and the Company used

- 37 - 37 -

annual discount rates of 8.7% and 8.0% in its test of impairment as of December 31, 2022 and 2021,
respectively, to reflect the relevant specific risk in the cash-generating unit.
For the years ended December 31, 2022 and 2021, the Company did not recognize any impairment loss on
goodwill.

17. SHORT-TERM LOANS
December 31,
2021
Unsecured loans
Amount$ 114,921,333

Loan content
EUR (in thousands)
Annual interest rate
Maturity date$

3,652,935(0.73)%-0%
Due by June 2022

18. BONDS PAYABLE

Domestic unsecured bonds
Overseas unsecured bonds
Less: Discounts on bonds payable
Less: Current portion

December 31,
2022

December 31,
2021$ 379,526,000
476,051,500(3,141,061)(18,100,000)$ 312,448,000
304,414,000(2,391,348)(4,400,000)$ 834,336,439$ 610,070,652

The major terms of domestic unsecured bonds are as follows:
TrancheIssuance Period

Total Amount

Coupon
Rate

101-3

-

$

4,400,000

1.53%

101-4

C

3,000,000

1.49%

Bullet repayment; interest
payable annually
The same as above

102-1

C

3,600,000

1.50%

The same as above

102-2

B

October 2012 to
October 2022
January 2013 toJanuary 2023
February 2013 to
February 2023
July 2013 to July
2023

3,500,000

1.70%

The same as above

Issuance

Repayment andInterest Payment

NT$ unsecured
bonds(Continued)- 38 - 38 -

Issuance
102-4

TrancheIssuance Period

Total Amount

CouponRate

Repayment andInterest Payment

D

September 2013 toMarch 2021$

2,600,000

1.85%

E

September 2013 toMarch 2023
September 2013 to
September 2023
March 2020 toMarch 2025
March 2020 toMarch 2027
March 2020 toMarch 2030
April 2020 toApril 2025
April 2020 toApril 2027
April 2020 toApril 2030
May 2020 to May
2025
May 2020 to May
2027
May 2020 to May
2030
July 2020 to July
2025

5,400,000

2.05%

Bullet repayment; interest
payable annually(interest for the six
months prior tomaturity will accrue on
the basis of actual days
and be repayable atmaturity)
The same as above

2,600,000

2.10%

3,000,000

0.58%

Bullet repayment; interest
payable annually
The same as above

10,500,000

0.62%

The same as above

10,500,000

0.64%

The same as above

5,900,000

0.52%

The same as above

10,400,000

0.58%

The same as above

5,300,000

0.60%

The same as above

4,500,000

0.55%

The same as above

7,500,000

0.60%

The same as above

2,400,000

0.64%

The same as above

5,700,000

0.58%

6,300,000

0.65%

Two equal installments inlast two years; interest
payable annually
The same as above

1,900,000

0.67%

The same as above

4,800,000

0.50%

The same as above

8,000,000

0.58%

The same as above

2,800,000

0.60%

The same as above

1,600,000

0.40%

The same as above

5,600,000

0.44%

The same as above

4,800,000

0.48%

The same as above

F
109-1

A
B
C

109-2

A
B
C

109-3

A
B
C

109-4

A

B
C
109-5

A
B
C

109-6
(Green bond)A
B
C

July 2020 to July
2027
July 2020 to July
2030
September 2020 to
September 2025
September 2020 to
September 2027
September 2020 to
September 2030
December 2020 to
December 2025
December 2020 to
December 2027
December 2020 to
December 2030

(Continued)- 39 - 39 -

Issuance
109-7

TrancheIssuance Period

Total Amount

CouponRate

Repayment andInterest Payment

A

December 2020 to
December 2025$

1,900,000

0.36%

B

December 2020 to
December 2027
December 2020 to
December 2030
March 2021 toMarch 2026
March 2021 toMarch 2028
March 2021 toMarch 2031
May 2021 to May
2026
May 2021 to May
2028
May 2021 to May
2031
June 2021 to June
2026
June 2021 to June
2028
June 2021 to June
2031
August 2021 toAugust 2025
August 2021 toAugust 2026
August 2021 toAugust 2028
August 2021 toAugust 2031
October 2021 toApril 2026
October 2021 toOctober 2026
October 2021 toOctober 2028
October 2021 toOctober 2031
December 2021 to
December 2026
December 2021 toJune 2027
December 2021 to
December 2028
January 2022 toJanuary 2027
January 2022 toJanuary 2029

10,200,000

0.41%

Two equal installments inlast two years; interest
payable annually
The same as above

6,400,000

0.45%

The same as above

4,800,000

0.50%

11,400,000

0.55%

Bullet repayment; interest
payable annually
The same as above

4,900,000

0.60%

The same as above

5,200,000

0.50%

The same as above

8,400,000

0.58%

The same as above

5,600,000

0.65%

The same as above

6,900,000

0.52%

The same as above

7,900,000

0.58%

The same as above

4,900,000

0.65%

The same as above

4,000,000

0.485%The same as above

8,000,000

0.50%

The same as above

5,400,000

0.55%

The same as above

4,200,000

0.62%

The same as above

3,200,000

0.535%The same as above

6,900,000

0.54%

The same as above

4,600,000

0.60%

The same as above

1,600,000

0.62%

The same as above

7,700,000

0.65%

The same as above

3,500,000

0.675%The same as above

5,500,000

0.72%

The same as above

2,100,000

0.63%

The same as above

3,300,000

0.72%

The same as above

C
110-1

A
B
C

110-2

A
B
C

110-3

A
B
C

110-4

A
B
C
D

110-6

A
B
C
D

110-7

A
B
C

111-1
(Green bond)

A
B(Continued)- 40 - 40 -

Issuance
111-2

TrancheIssuance Period

Total Amount

CouponRate

Repayment andInterest Payment

A

March 2022 toSeptember 2026
March 2022 toMarch 2027
March 2022 toMarch 2029
May 2022 to May
2027
July 2022 to July
2026
July 2022 to July
2027
July 2022 to July
2029
July 2022 to July2032
August 2022 toJune 2027
August 2022 toAugust 2027
August 2022 toAugust 2029
August 2022 toAugust 2032
October 2022 to
October 2027$

3,000,000

0.84%

9,600,000

0.85%

Bullet repayment; interest
payable annually
The same as above

1,600,000

0.90%

The same as above

6,100,000

1.50%

The same as above

1,200,000

1.60%

The same as above

10,100,000

1.70%

The same as above

1,200,000

1.75%

The same as above

1,400,000

1.95%

The same as above

2,000,000

1.65%

The same as above

8,900,000

1.65%

The same as above

2,200,000

1.65%

The same as above

2,500,000

1.82%

The same as above

5,700,000

1.75%

The same as above

1,000,000

1.80%

The same as above

3,500,000

2.00%

The same as above

B
C
111-3
(Green bond)
111-4(Green bond)

A
B
C
D

111-5

A
B
C
D

111-6
(Green bond)A

B
C

October 2022 to
October 2029
October 2022 to
October 2032

(Concluded)

Issuance

Total Amount(US$
in Thousands)

CouponRate

Repayment andInterest Payment

Bullet repayment(callable on the 5th
anniversary of theissue date and every
anniversary thereafter);interest payableannually
The same as above

TrancheIssuance Period

109-1

-

September 2020 to
September 2060

US$1,000,000

2.70%

110-5

-

September 2021 toSeptember 2051

1,000,000

3.10%

US$ unsecured
bonds- 41 - 41 -

The major terms of overseas unsecured bonds are as follows:

Issuance Period
September 2020 to
September 2025

September 2020 to
September 2027
September 2020 to
September 2030
April 2021 to April 2026
April 2021 to April 2028
April 2021 to April 2031
October 2021 to October
2026
October 2021 to October
2031
October 2021 to October
2041
October 2021 to October
2051
April 2022 to April 2027
April 2022 to April 2029
April 2022 to April 2032
April 2022 to April 2052
July 2022 to July 2027
July 2022 to July 2032

Total Amount(US$
in Thousands)

CouponRate

US$1,000,000

0.75%

750,000

1.00%

Bullet repayment (callable at any
time, in whole or in part, at therelevant redemption priceaccording to relevant
agreements); interest payablesemi-annually
The same as above

1,250,000

1.375%The same as above

1,100,000
900,000
1,500,000
1,250,000

1.25%
1.75%
2.25%
1.75%

The same as above
The same as above
The same as above
The same as above

1,250,000

2.50%

The same as above

1,000,000

3.125%The same as above

1,000,000

3.25%

The same as above

1,000,000
500,000
1,000,000
1,000,000
400,000
600,000

3.875%
4.125%
4.25%
4.50%
4.375%
4.625%The same as above
The same as above
The same as above
The same as above
The same as above
The same as above

Repayment andInterest Payment

19. LONG-TERM BANK LOANS

Unsecured loans
Less: Discounts on government grants
Less: Current portion

Loan content
Annual interest rate
Maturity date

December 31,
2022

December 31,
2021$ 6,013,333(39,397)(1,213,889)$ 3,510,000(34,202)(166,667)$ 4,760,047$ 3,309,131

1.03%-1.23%
0.40%-0.90%
Due by December Due by September
2027
2026

The long-term bank loans of the Company are with preferential interest rates subsidized by the government,
and the loans are used to fund capital expenditure qualifying for the subsidy.

- 42 - 42 -

20. RETIREMENT BENEFIT PLANS
a. Defined contribution plans
The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant
to the Act, TSMC and VisEra Tech have made monthly contributions equal to 6% of each employee’s
monthly salary to employees’ pension accounts. Furthermore, TSMC North America, TSMC China,
TSMC Nanjing, TSMC Arizona, TSMC Europe, TSMC Canada, TSMC Technology and JASM also
make monthly contributions at certain percentages of the basic salary of their employees. Accordingly,
the Company recognized expenses of NT$4,550,387 thousand and NT$3,711,010 thousand for the years
ended December 31, 2022 and 2021, respectively.
b. Defined benefit plans
TSMC has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based onan employee’s length of service and average monthly salary for the six-month period prior to retirement.
The Company contributes an amount equal to 2% of salaries paid each month to their respective pension
funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (theCommittee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year,
the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate
to pay retirement benefits for employees who conform to retirement requirements in the next year, theCompany is required to fund the difference in one appropriation that should be made before the end of
March of the next year. The Funds are operated and managed by the government’s designated authorities;
as such, the Company does not have any right to intervene in the investments of the Funds.
Amounts recognized in respect of these defined benefit plans were as follows:
Years Ended December 31
2022
2021
Current service cost
Net interest expense
Components of defined benefit costs recognized in profit or loss
Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net
interest expense)
Actuarial loss arising from experience adjustments
Actuarial loss arising from changes in demographic
assumptions
Actuarial gain arising from changes in financial assumptions
Components of defined benefit costs recognized in othercomprehensive income
Total

$

134,376
74,265
208,641- 43 -

145,289
47,196
192,485(429,948)
1,413,760(73,298)
94,278(160,752)

277,454(540,513)

823,060(242,079)$ 1,031,701- 43 -$$(49,594)

The pension costs of the aforementioned defined benefit plans were recognized in profit or loss by thefollowing categories:
Years Ended December 31
2022
2021
Cost of revenue
Research and development expenses
General and administrative expenses
Marketing expenses$ 135,125
55,632
15,1292,755$ 124,548
52,801
12,4302,706$ 208,641$ 192,485

The amounts arising from the defined benefit obligation of the Company were as follows:
December 31,
2022

December 31,
2021

Present value of defined benefit obligation
Fair value of plan assets$ 17,483,951(8,162,860)$ 16,585,442(5,548,563)

Net defined benefit liability$$ 11,036,879

9,321,091

Movements in the present value of the defined benefit obligation were as follows:
Years Ended December 31
2022
2021
Balance, beginning of year
Current service cost
Interest expense
Remeasurement:
Actuarial loss arising from experience adjustments
Actuarial loss arising from changes in demographic
assumptions
Actuarial gain arising from changes in financial assumptions
Benefits paid from plan assets
Benefits paid directly by the Company$ 16,585,442
134,376
120,791$ 16,980,277
145,289
66,664

1,413,760

94,278(160,752)(585,343)(24,323)

277,454(540,513)(431,817)(6,190)

Balance, end of year

$ 17,483,951$ 16,585,442

Movements in the fair value of the plan assets were as follows:
Years Ended December 31
2022
2021
Balance, beginning of year
Interest income
Remeasurement:
Return on plan assets (excluding amounts included in net
interest expense)
Contributions from employer
Benefits paid from plan assets$ 5,548,563
46,526$ 5,066,203
19,468429,948
2,723,166(585,343)

73,298821,411(431,817)

Balance, end of year

$ 8,162,860$ 5,548,563- 44 - 44 -

The fair value of the plan assets by major categories at the end of reporting period was as follows:

Cash
Equity instruments
Debt instruments

December 31,
2022

December 31,
2021$ 1,337,893
4,696,909
2,128,058$ 1,000,961
2,951,835
1,595,767$ 8,162,860$ 5,548,563

The actuarial valuations of the present value of the defined benefit obligation were carried out by
qualified actuaries. The principal assumptions of the actuarial valuation were as follows:
Measurement Date
December 31,
December 31,
2022
2021
1.80%
4.00%

Discount rate
Future salary increase rate

0.75%
3.00%

Through the defined benefit plans under the R.O.C. Labor Standards Law, the Company is exposed to
the following risks:
1) Investment risk: The pension funds are invested in equity and debt securities, bank deposits, etc. The
investment is conducted at the discretion of the government’s designated authorities or under the
mandated management. However, under the R.O.C. Labor Standards Law, the rate of return on assets
shall not be less than the average interest rate on a two-year time deposit published by the local banks
and the government is responsible for any shortfall in the event that the rate of return is less than therequired rate of return.
2) Interest risk: A decrease in the government bond interest rate will increase the present value of thedefined benefit obligation; however, this will be partially offset by an increase in the return on thedebt investments of the plan assets.
Assuming a hypothetical decrease in interest rate at the end of the reporting period contributed to adecrease of 0.5% (and not below 0.0%) in the discount rate and all other assumptions were held
constant, the present value of the defined benefit obligation would increase by NT$766,692 thousand
and NT$780,460 thousand as of December 31, 2022 and 2021, respectively.
3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the futuresalaries of plan participants. As such, an increase in the salary of the plan participants will increase
the present value of the defined benefit obligation.
Assuming the expected salary rate increases by 0.5% at the end of the reporting period and all otherassumptions were held constant, the present value of the defined benefit obligation would increase by
NT$746,933 thousand and NT$759,527 thousand as of December 31, 2022 and 2021, respectively.
The sensitivity analysis presented above may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one anotheras some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit
obligation has been calculated using the projected unit credit method at the end of the reporting period,
which is the same as that applied in calculating the defined benefit obligation liability.

- 45 - 45 -The Company expects to make contributions of NT$2,832,093 thousand to the defined benefit plans in
the next year starting from December 31, 2022. The weighted average duration of the defined benefit
obligation is 9 years.

21. EQUITY
a. Capital stock

Authorized shares (in thousands)
Authorized capital
Issued and paid shares (in thousands)
Issued capital

December 31,
2022

December 31,
2021

28,050,000$ 280,500,000
25,930,380$ 259,303,805

28,050,000$ 280,500,000
25,930,380$ 259,303,805

A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive
dividends.
The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock
options.
On March 1, 2022, the Company issued employee restricted stocks awards (RSAs) for its employees ina total of 1,387 thousand shares with a par value of NT$10 each. The aforementioned issuance of newshares was approved by the relevant authority and the registration has been completed. Refer to Note 28
for the information on RSAs.
On May 10, 2022, TSMC’s Board of Directors resolved to cancel 1,387 thousand treasury shares. Refer
to Note 21(e) for the information.
As of the end of reporting period, 1,063,847 thousand ADSs of TSMC were traded on the NYSE. The
number of common shares represented by the ADSs was 5,319,234 thousand shares (one ADS represents
five common shares).
b. Capital surplus
The categories of uses and the sources of capital surplus based on regulations were as follows:
December 31,
2022

December 31,
2021$ 24,183,645
22,803,291
8,892,371$ 24,184,939
22,804,510
8,892,847

8,406,282
11,2758,406,282
11,275(Continued)

May be used to offset a deficit, distributed as cash dividends, ortransferred to share capital
Additional paid-in capital
From merger
From convertible bonds
From difference between the consideration received and thecarrying amount of the subsidiaries’ net assets during actual
disposalDonations - donated by shareholders- 46 - 46 -

December 31,
2022

December 31,
2021

$

$

May only be used to offset a deficit
From share of changes in equities of subsidiaries
From share of changes in equities of associates
Donations - unclaimed dividend

4,229,892
311,863
53,680113,952
307,32240,475May not be used for any purpose
Employee restricted shares

438,029-$ 69,330,328$ 64,761,602(Concluded)

If such capital surplus is distributed as transferred to share capital, it is limited to a certain percentage of
the Company’s paid-in capital each year.
c. Retained earnings and dividend policy
TSMC’s Articles of Incorporation provide that, earnings distribution may be made on a quarterly basis
after the close of each quarter. Distribution of earnings by way of cash dividends should be approved by
TSMC’s Board of Directors and reported to TSMC’s shareholders in its meeting. When allocating
earnings, TSMC shall first estimate and reserve the taxes to be paid, offset its losses, set aside a legal
capital reserve at 10% of the remaining earnings (until the accumulated legal capital reserve equals
TSMC’s paid-in capital), then set aside a special capital reserve in accordance with relevant laws or
regulations or as requested by the authorities in charge. Any balance left over shall be allocated according
to relevant laws and TSMC’s Articles of Incorporation.
TSMC’s Articles of Incorporation also provide that profits of TSMC may be distributed by way of cash
dividend and/or stock dividend. However, distribution of earnings shall be made preferably by way ofcash dividend. Distribution of earnings may also be made by way of stock dividend, provided that theratio for stock dividend shall not exceed 50% of the total distribution.
The legal capital reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks
for the portion in excess of 25% of the paid-in capital if the Company incurs no loss.
Pursuant to existing regulations, the Company is required to set aside additional special capital reserve
equivalent to the net debit balance of the other components of stockholders’ equity, such as theaccumulated balance of foreign currency translation reserve, unrealized valuation gain or loss from fairvalue through other comprehensive income financial assets, gain or loss from changes in fair value ofhedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount tostockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit
balance reverses.
The appropriations of 2022, 2021 and 2020 quarterly earnings have been approved by TSMC’s Board of
Directors in its meeting, respectively. The appropriations and cash dividends per share were as follows:
Resolution Date of TSMC’s
Board of Directors in its
meeting

Fourth Quarterof 2022
February 14,
2023

Third Quarterof 2022
November 8,
2022

Second Quarterof 2022
August 9,2022

First Quarterof 2022
May 10,2022

Special capital reserve
Cash dividends to shareholders
Cash dividends per share (NT$)$ 17,166,163$ 71,308,546$
2.75$ (31,910,353)$ 71,308,547$
2.75$ (12,002,798)$ 71,308,546$
2.75$ (15,541,054)$ 71,308,546$
2.75- 47 - 47 -Resolution Date of TSMC’s
Board of Directors in its
meeting

Fourth Quarterof 2021
February 15,
2022

Third Quarterof 2021
November 9,
2021

Second Quarterof 2021
August 10,
2021

First Quarterof 2021
June 9,2021

Special capital reserve
Cash dividends to shareholders
Cash dividends per share (NT$)$ 3,304,303$ 71,308,546
$
2.75

$
710,169$ 71,308,547$
2.75$ 10,201,220$ 71,308,546$
2.75$ (6,287,050)$ 71,308,546$
2.75

Resolution Date of TSMC’s
Board of Directors in its
meeting

Fourth Quarterof 2020
February 9,
2021

Third Quarterof 2020
November 10,
2020

Second Quarterof 2020
August 11,
2020

First Quarterof 2020
May 12,
2020

Special capital reserve
Cash dividends to shareholders
Cash dividends per share (NT$)$ 12,420,727$ 64,825,951$
2.5$ 5,501,351$ 64,825,951$
2.5$ 11,884,457$ 64,825,951$
2.5$ (2,694,841)$ 64,825,951$
2.5

The special capital reserve for 2022 is to be presented for approval in TSMC’s shareholders’ meeting to
be held on June 6, 2023 (expected).
d. Others
Changes in others were as follows:

Foreign
Currency
Translation
ReserveYear Ended December 31, 2022
Unrealized
Gain (Loss) on
Unearned
Gain (Loss) on
Financial
Stock-Based
Hedging
Assets at
Employee
FVTOCI
Instruments
Compensation

Balance, beginning of year
Exchange differences arising on translation offoreign operations
Unrealized gain (loss) on financial assets at
FVTOCI
Equity instruments
Debt instruments
Cumulative unrealized gain (loss) of equity
instruments transferred to retained
earnings due to disposal
Cumulative unrealized gain (loss) of debt
instruments transferred to profit or loss due
to disposal
Loss allowance adjustments from debt
instruments
Gain (loss) arising on changes in the fairvalue of hedging instruments
Transferred to initial carrying amount ofhedged items
Issuance of shares
Share-based payment expenses recognized
Share of other comprehensive income (loss)of associates
Income tax effect$ (63,303,361)$

Balance, end of year

574,310$

120,536

$

Total

-

$ (62,608,515)

51,009,722

-

-

-

51,009,722-(263,380)(10,513,643)--(263,380)(10,513,643)-(303,242)--(303,242)-

410,076--

410,076

-

909

-

-

909

-

-

1,329,231-

1,329,231--(52,929)(451,899)
266,746(52,929)(451,899)
266,746

550,338-

38,696(79)

76,307
6,036-

665,341
5,957$ (11,743,301)$ (10,056,353)$ 1,479,181(185,153)$ (20,505,626)- 48 - 48 -$Foreign
Currency
Translation
ReserveYear Ended December 31, 2021
Unrealized
Gain (Loss) on
Unearned
Financial
Stock-Based
Gain (Loss) on
Assets at
Employee
Hedging
FVTOCI
Instruments
Compensation

Balance, beginning of year
Exchange differences arising on translation offoreign operations
Unrealized gain (loss) on financial assets at
FVTOCI
Equity instruments
Debt instruments
Cumulative unrealized gain (loss) of equity
instruments transferred to retained
earnings due to disposal
Cumulative unrealized gain (loss) of debt
instruments transferred to profit or loss due
to disposal
Loss allowance adjustments from debt
instruments
Gain (loss) arising on changes in the fairvalue of hedging instruments
Transferred to initial carrying amount ofhedged items
Share of other comprehensive income (loss)of associates
Income tax effect$ (57,001,627)$ 2,321,754(6,181,737)--

Balance, end of year

$ (63,303,361)-$ (54,679,873)--(6,181,737)

1,898,206(3,339,796)--

1,898,206(3,339,796)-(187,654)--(187,654)-(93,229)--(93,229)

-

1,234

-

-

1,234

-

-

90,119-90,119--48,469-48,469(119,997)-

30,015(56,220)(14,682)(3,370)-(104,664)(59,590)-$ (62,608,515)$

574,310$$-

120,536

$

Total

$

The aforementioned other equity includes the changes in other equities of TSMC and TSMC’s share ofits subsidiaries and associates.
e. Treasury stock
For TSMC’s shareholders’ interests, TSMC’s Board of Directors approved a share buyback program on
February 15, 2022 to repurchase 1,387 thousand shares. TSMC has completed this share buyback
program during the first quarter of 2022. On May 10, 2022, TSMC’s Board of Directors resolved to cancel
the 1,387 thousand shares and set May 10, 2022 as the record date for capital reduction. The registration
for share cancellation was completed on May 20, 2022.

22. NET REVENUE
a. Disaggregation of revenue from contracts with customers
Years Ended December 31
2022
2021

Product
Wafer
Others- 49 - 49 -$ 1,991,855,947
272,035,345$ 1,405,300,273
182,114,764$ 2,263,891,292$ 1,587,415,037

Years Ended December 31
2022
2021

Geography
TaiwanUnited States
China
Europe, the Middle East and Africa
Japan
Others$ 210,470,783
1,493,328,765
245,168,746
123,767,140
119,099,336
72,056,522$ 203,963,760
1,015,996,424
164,552,063
89,010,064
71,920,856
41,971,870$ 2,263,891,292$ 1,587,415,037

The Company categorized the net revenue mainly based on the countries where the customers areheadquartered.
Years Ended December 31
2022
2021

Platform
High Performance Computing
Smartphone
Internet of Things
Automotive
Digital Consumer Electronics
Others$ 932,383,729
888,879,250
196,114,987
116,380,987
56,158,772
73,973,567$ 587,780,144
695,091,191
133,005,979
67,076,353
55,577,223
48,884,147$ 2,263,891,292$ 1,587,415,037

Years Ended December 31
2022
2021

Resolution
5-nanometer
7-nanometer
10-nanometer
16-nanometer
20-nanometer
28-nanometer
40/45-nanometer
65-nanometer
90-nanometer0.11/0.13 micron
0.15/0.18 micron
0.25 micron and above$ 508,689,881
535,153,763
24,871
258,544,274
8,853,291
206,611,955
145,546,243
93,288,614
40,184,169
57,992,328
110,571,222
26,395,336$ 262,327,365
440,383,100
659,989
191,058,940
5,668,752
153,066,563
103,413,639
66,467,903
32,260,288
40,558,534
86,700,287
22,734,913

Wafer revenue$ 1,991,855,947$ 1,405,300,273

December 31,
2022

December 31,
2021

January 1,
2021$ 70,806,617$ 39,762,588$ 13,775,088

b. Contract balances

Contract liabilities (classified under accrued
expenses and other current liabilities)

The changes in the contract liability balances primarily result from the timing difference between thesatisfaction of performance obligation and the customer’s payment.

- 50 - 50 -The Company recognized revenue from the beginning balance of contract liability, which amounted to
NT$38,433,111 thousand and NT$11,590,400 thousand for the years ended December 31, 2022 and 2021,
respectively.
c. Temporary receipts from customers

Current portion (classified under accrued expenses and othercurrent liabilities)
Noncurrent portion (classified under other noncurrent liabilities)

December 31,
2022

December 31,
2021$ 107,723,580
168,399,207$ 30,612,702
155,381,485$ 276,122,787$ 185,994,187

The Company’s temporary receipts from customer are payments made by customers to the Company toretain the Company’s capacity. When the terms and conditions set forth in the agreements aresubsequently satisfied, the treatment of temporary receipts, either by refund or by accounts receivableoffsetting, will be determined by mutual consent.
d. Refund liabilities
Estimated sales returns and other allowances is made and adjusted based on historical experience andthe consideration of varying contractual terms. As of December 31, 2022 and 2021, the aforementioned
refund liabilities amounted to NT$ 53,078,351 thousand and NT$41,038,041 thousand (classified underaccrued expenses and other current liabilities), respectively.

23. INTEREST INCOME
Years Ended December 31
2022
2021
Interest income
Bank deposits
Financial assets at FVTOCI
Financial assets at amortized cost

$ 17,831,257
2,582,341
2,008,611$

2,834,838
2,192,470
681,457$ 22,422,209$

5,708,765

24. FINANCE COSTS
Years Ended December 31
2022
2021
Interest expense
Corporate bonds
Lease liabilities
Bank loans
OthersLess: Capitalized interest under property, plant and equipment- 51 - 51 -$ 14,116,112
267,050
32,017
1,673(2,666,868)$ 5,202,999
193,324
17,546349-$ 11,749,984$ 5,414,218

Information about capitalized interest is as follows:
Years Ended
December 31,
2022
Capitalization rate

0.56%-3.36%

25. OTHER GAINS AND LOSSES, NET
Years Ended December 31
2022
2021
Gain (loss) on disposal of financial assets, net
Investments in debt instruments at FVTOCI
Loss on financial instruments at FVTPL, net
Mandatorily measured at FVTPL
The reversal (accrual) of expected credit loss of financial assets
Investments in debt instruments at FVTOCI
Financial assets at amortized cost
Other gains, net$(410,076)$

93,229(622,537)(7,973,667)(909)(51,442)
72,766(1,234)
3,969
489,693$ (1,012,198)$ (7,388,010)

26. INCOME TAX
a. Income tax expense recognized in profit or loss
Income tax expense consisted of the following:
Years Ended December 31
2022
2021
Current income tax expense
Current tax expense recognized in the current year
Income tax adjustments on prior years
Other income tax adjustments
Deferred income tax benefit
The origination and reversal of temporary differences
Investment tax credits

Income tax expense recognized in profit or loss

- 52 - 52 -$ 147,685,403(563,555)
206,136
147,327,984$ 88,844,915
207,801
152,232
89,204,948(24,714,488)
4,676,707(20,037,781)(17,530,023)(5,621,745)(23,151,768)$ 127,290,203$ 66,053,180

A reconciliation of income before income tax and income tax expense recognized in profit or loss was
as follows:
Years Ended December 31
2022
2021
Income before tax$ 1,144,190,718$ 663,126,314

Income tax expense at the statutory rate
Tax effect of adjusting items:
Nondeductible items in determining taxable income
Tax-exempt income
Additional income tax under the Alternative Minimum Tax Act
The origination and reversal of temporary differences
Income tax credits$ 231,799,774$ 134,613,312

12,286,136(157,955,934)
61,578,020(24,714,488)
4,654,114
127,647,622(563,555)
206,136

11,261,407(89,852,940)
32,852,688(17,530,023)(5,651,297)
65,693,147
207,801
152,232

Income tax adjustments on prior years
Other income tax adjustments
Income tax expense recognized in profit or loss

$ 127,290,203$

66,053,180

For the years ended December 31, 2022 and 2021, the Company applied a tax rate of 20% for entities
subject to the R.O.C. Income Tax Law; for other jurisdictions, taxes are calculated using the applicabletax rate for each individual jurisdiction.
b. Deferred income tax balance
The analysis of deferred income tax assets and liabilities was as follows:
December 31,
2022

December 31,
2021$ 45,299,310
12,089,451
5,782,345
2,305,328
1,722,005
945,038
361,241
681,124$ 34,720,661
5,986,173
898,998
1,237,086
5,621,745
373,983
315,240$ 69,185,842$ 49,153,886$$

Deferred income tax assets
Temporary differences
Depreciation
Refund liability
Unrealized exchange losses
Unrealized loss on inventories
Net defined benefit liability
Investment tax credits
Deferred compensation cost
OthersDeferred income tax liabilities
Temporary differences
Unrealized exchange gains
Others(1,031,383)$ (1,031,383)- 53 - 53 -

(706,311)(1,167,566)$ (1,873,877)

Balance,
Beginning ofYear

Year Ended December 31, 2022
Recognized in
Other
Effect ofComprehensive
Exchange Rate
Profit or Loss
IncomeChanges$ 34,720,661
5,986,173
898,998
1,237,086
5,621,745
373,983
315,240$ 10,552,264
6,100,849
5,782,345
1,402,241(249,116)(4,676,707)(48,180)
334,801$

734,035(79)$

26,3852,429
4,089
35,43831,162$ 45,299,310
12,089,451
5,782,345
2,305,328
1,722,005
945,038
361,241
681,124$ 49,153,886$ 19,198,497$

733,956$

99,503$ 69,185,842$(706,311)(1,167,566)$

706,311
132,973

$

6,036

$

(2,826)$$ (1,873,877)$

839,284

$

6,036

$

(2,826)$ (1,031,383)

Balance,
Beginning ofYear

Year Ended December 31, 2021
Recognized in
Other
Effect ofComprehensive
Exchange Rate
Profit or Loss
IncomeChanges

Balance, End ofYear$ 19,354,383
3,755,131
1,341,960
858,463
330,340
317,907$ 15,365,737
2,231,450
5,621,745(75,825)
41,061
49,11359,045$(29,049)(56,220)

$

541
(408)
(526)
(5,470)(5,492)$ 34,720,661
5,986,173
5,621,745
1,237,086
898,998
373,983
315,240$ 25,958,184$ 23,292,326$(85,269)$(11,355)$ 49,153,886$(866,495)(863,446)$

160,184(300,742)$(3,370)$(8)$$ (1,729,941)$(140,558)$(3,370)$(8)$ (1,873,877)

Balance, End ofYear

Deferred income tax assets
Temporary differences
Depreciation
Refund liability
Unrealized exchange losses
Unrealized loss on inventories
Net defined benefit liability
Investment tax credits
Deferred compensation cost
OthersDeferred income tax liabilities
Temporary differences
Unrealized exchange gains
Others(1,031,383)

Deferred income tax assets
Temporary differences
Depreciation
Refund liability
Investment tax credits
Net defined benefit liability
Unrealized loss on inventories
Deferred compensation cost
OthersDeferred income tax liabilities
Temporary differences
Unrealized exchange gains
Others(706,311)(1,167,566)

c. The deductible temporary differences for which no deferred income tax assets have been recognized
As of December 31, 2022 and 2021, the aggregate deductible temporary differences for which no deferredincome tax assets have been recognized amounted to NT$26,790,935 thousand and NT$66,431,255
thousand, respectively.

- 54 - 54 -

d. Unused tax-exemption information
As of the end of reporting period, the profits generated from the following project of TSMC are exempt
from income tax for a five-year period:
Tax-exemption Period
Construction and expansion of 2009 by TSMC

2018 to 2022

e. The information of unrecognized deferred income tax liabilities associated with investments
As of December 31, 2022 and 2021, the aggregate taxable temporary differences associated withinvestments in subsidiaries not recognized as deferred income tax liabilities amounted to
NT$222,682,649 thousand and NT$177,552,831 thousand, respectively.
f. Income tax examination
The tax authorities have examined income tax returns of TSMC through 2020. All investment tax credit
adjustments assessed by the tax authorities have been recognized accordingly.

27. EARNINGS PER SHARE
Years Ended December 31
2022
2021
Basic EPS
Diluted EPS

$
$

39.20
39.20

$
$

23.01
23.01

EPS is computed as follows:
Years Ended December 31
2022
2021
Basic EPS
Net income available to common shareholders of the parent
Weighted average number of common shares outstanding used in
the computation of basic EPS (in thousands)
Basic EPS (in dollars)
Diluted EPS
Net income available to common shareholders of the parent
Weighted average number of common shares outstanding used in
the computation of basic EPS (in thousands)
Effects of all dilutive potential common shares (in thousands)
Weighted average number of common shares used in thecomputation of diluted EPS (in thousands)
Diluted EPS (in dollars)- 55 - 55 -$ 1,016,530,249$

25,929,190
39.20$ 596,540,013$

25,930,380
23.01$ 1,016,530,249$ 596,540,013

25,929,190
193

25,930,380-

25,929,383
39.20

25,930,380
23.01

$

$

28. SHARE-BASED PAYMENT ARRANGEMENTS
a. Equity-settled share-based payment- RSAs
The RSAs in each year are as follows:

Resolution Date of TSMC’s shareholders
in its meeting
Resolution Date of TSMC’s Board of
Directors in its meeting
Issuance of stocks (in thousands)
Eligible employees
Grant date/Issuance date

2022 RSAs

2021 RSAs

June 8, 2022

July 26, 2021

February 14, 2023

February 15, 2022

2,110
Executive officers and nonexecutive officers
March 1, 2023

1,387
Executive officers
March 1, 2022

Vesting conditions of the aforementioned arrangement are as follow:
1) The RSAs granted to eligible employees can only be vested if the employee remains employed by the Company on the last date of each vesting period;
 during the vesting period, the employee may not breach any agreement with the Company or
violate the Company’s work rules; and certain employee performance metrics and TSMC’s business performance metrics are met.
2) The maximum percentage of granted RSAs that may be vested each year shall be as follows:
one-year anniversary of the grant: 50%; two-year anniversary of the grant: 25%; and three-year
anniversary of the grant: 25%; provided that the actual percentage and number of the RSAs to bevested in each year will be calculated based on the achievement of TSMC’s business performance
metrics.
3) For eligible executive officers of TSMC: The maximum number of RSAs that may be vested in eachyear will be set as 110%, among which 100% will be subject to a calculation based on TSMC’s
relative Total Shareholder Return (”TSR”, including capital gains and dividends) achievement todetermine the number of RSAs to be vested; this number will be further subject to a modifier toincrease or decrease up to 10% based on the Compensation Committee’s (rename to Compensation
and People Development Committee from February 14, 2023) evaluation of TSMC’s Environmental,
Social, and Governance (”ESG”) achievements. The number of shares so calculated should berounded down to the nearest integral.
TSMC’s TSR relative to the
TSR of S&P 500 IT Index
Above the Index by X percentage points
Equal to the Index
Below the Index by X percentage points

Ratio of Shares to be Vested
50% + X * 2.5%, with the maximum of 100%50%
50% - X * 2.5%, with the minimum of 0%- 56 - 56 -4) For eligible employees who are not executive officers of the Company: The number of RSAs to bevested in each year will be calculated in accordance with the below table based on TSMC’s audited
consolidated financial statements for the year prior to the vesting year. The number of shares so
calculated should be rounded down to the nearest integral.

Revenue Growth Rate
Gross Margin
Return on Equity

Threshold
10%
50%
20%

Target15%
53%
25%

Weight1/3
1/3
1/3

Ratio of Shares to be Vested＜ Threshold: 0 %＝ Threshold: 50%≧ Target: 100%
Between threshold and target: as
calculated by interpolation
method5) Restrictions imposed on the employees’ rights in the RSAs before the vesting conditions are fulfilled: During each vesting period, no employee granted RSAs, except for inheritance, may sell, pledge,transfer, give to another person, create any encumbrance on, or otherwise dispose of, any shares
under the unvested RSAs.
 Before the vesting conditions are fulfilled, the attendance, proposal rights, speech rights, voting
rights and etc. shall be exercised by the engaged trustee/custodian on the employee’s behalf. Anyother shareholder rights including but not limited to the entitlement to any distribution regarding
dividends, bonuses and capital reserve, and the subscription right of the new shares issued forany capital increase, are the same as those of holders of common shares of TSMC.
6) Details of granted 2021 RSAs are as follows:
2021 RSAs
Number of
Stocks(In Thousands)
Balance, beginning of year
Issuance of stocks

1,387

Balance, end of year

1,387

Weighted-average fair value of RSAs (in dollars)$

325.81The 2021 RSAs is measured at fair value at grant date by using the binominal tree approach. Relevant
information is as follows:
2021 RSAs
March 1, 2022$
604
25.34%-28.28%
1-3 years
0.57%

Stock price at grant date (in dollars)
Expected price volatility
Expected option life
Risk-free interest rate

Refer to Note 29 for the compensation costs of the 2021 RSAs recognized by TSMC.
On February 14, 2023, TSMC’s Board of Directors approved the issuance of RSAs for year 2023 of
no more than 6,249 thousand common shares. The grants will be made free of charge. The actual
number of shares to be issued will be resolved by the Board of Directors after the RSAs is approvedat the shareholders’ meeting and by the competent authority.

- 57 - 57 -

b. Cash-settled share-based payment arrangements
The cash-settled share-based payment arrangements in each year are as follows:

Resolution Date of TSMC’s Board of
Directors in its meeting
Issuance of units (in thousands) (Note)
Grant date
Note:

2022 Plan

2021 Plan

February 14, 2023

February 15, 2022

400
March 1, 2023

236
March 1, 2022

One unit of the right represents a right to the market value of one TSMC’s common share whenvested.

The vesting conditions and the ratio of units to be vested for key management personnel of the plan are
the same as the aforementioned RSAs.
The fair value of compensation costs for the cash-settled share-based payment was measured by using
binominal tree approach and will be measured at each reporting period until settlement. Relevant
information is as follows:
Years Ended
December 31,
2022
2021 Plan$
451
28.80%-32.19%
1-3 years
1.09%

Stock price at measurement date (in dollars)
Expected price volatility
Expected option life
Risk-free interest rate

Refer to Note 29 for the compensation costs of the cash-settled share-based payment recognized by TSMC.
The liabilities under cash-settled share-based payment arrangement amounted to NT$30,757 thousand asof the end of reporting period.

29. ADDITIONAL INFORMATION OF EXPENSES BY NATURE
Years Ended December 31
2022
2021
a. Depreciation of property, plant and equipment and right-of-use
assetsRecognized in cost of revenue
Recognized in operating expenses
Recognized in other operating income and expenses$ 399,638,755
28,850,463
8,961$ 386,103,923
27,936,211
147,566$ 428,498,179$ 414,187,700$

6,086,246
2,669,848$

5,574,246
2,632,923$

8,756,094$

8,207,169

b. Amortization of intangible assets
Recognized in cost of revenue
Recognized in operating expenses- 58 - 58 -Years Ended December 31
2022
2021
c. Employee benefits expenses
Post-employment benefits
Defined contribution plans
Defined benefit plans$

Share-based payments
Equity-settled
Cash-settled

Other employee benefits

Employee benefits expense summarized by function
Recognized in cost of revenue
Recognized in operating expenses

4,550,387
208,641
4,759,028$

3,711,010
192,485
3,903,495

302,348
32,704
335,052

7,788
7,788

234,367,880

161,035,865$ 239,461,960$ 164,947,148$ 139,361,369
100,100,591$ 98,012,833
66,934,315$ 239,461,960$ 164,947,148

According to TSMC’s Articles of Incorporation, TSMC shall allocate compensation to directors and profit
sharing bonus to employees of TSMC not more than 0.3% and not less than 1% of annual profits during theperiod, respectively.
TSMC accrued profit sharing bonus to employees based on a percentage of net income before income tax,
profit sharing bonus to employees and compensation to directors during the period; compensation to directors
was expensed based on estimated amount payable. If there is a change in the proposed amounts after theannual consolidated financial statements are authorized for issue, the differences are recorded as a changein accounting estimate. Accrued profit sharing bonus to employees is illustrated below:
Years Ended December 31
2022
2021
Profit sharing bonus to employees$ 60,702,047$ 35,601,449

TSMC’s profit sharing bonus to employees and compensation to directors for 2022, 2021 and 2020 had been
approved by the Board of Directors of TSMC, as illustrated below:

Resolution Date of TSMC’s Board of
Directors in its meeting

Years Ended December 31
2022
2021
2020
February 14,
February 15,
February 9,
2023
2022
2021

Profit sharing bonus to employees
Compensation to directors$ 60,702,047$
690,128- 59 - 59 -$ 35,601,449$
487,537$ 34,753,184$
509,753

There is no significant difference between the aforementioned approved amounts and the amounts charged
against earnings of 2022, 2021 and 2020, respectively.
The information about the appropriations of TSMC’s profit sharing bonus to employees and compensation
to directors is available at the Market Observation Post System website.

30. GOVERNMENT GRANTS
Subsidiaries such as JASM and TSMC Nanjing received subsidies from the governments of Japan and China,
respectively, for local plants setup and operation, which were mainly used to subsidize the purchase costs ofproperty, plant and equipment as well as partial costs and expenses incurred from plant construction andproduction. For the years ended December 31, 2022 and 2021, TSMC received a total of NT$7,051,432
thousand and NT$827,917 thousand as government grants respectively.

31. CASH FLOW INFORMATION
a. Non-cash transactions
Years Ended December 31
2022
2021
Additions of financial assets at FVTOCI
Exchange of equity instruments
Changes in accrued expenses and other current liabilities$

45,126,181
9,440,544$

253,613,917(106,185)
2,380,947

Payments for acquisition of financial assets at FVTOCI$

54,566,725$

255,888,679

Disposal of financial assets at FVTOCI
Changes in other financial assets
Exchange of equity instruments$

43,130,926
1,832,441-$

251,201,439
3,509,283(106,185)

Proceeds from disposal of financial assets at FVTOCI$

44,963,367$

254,604,537

Additions of property, plant and equipment
Changes in other financial assets
Exchange of assets
Changes in payables to contractors and equipment suppliers
Changes in accrued expenses and other current liabilities
Transferred to initial carrying amount of hedged items
Capitalized interests$ 1,139,892,108
5,730,104(275,564)(60,638,244)
630,594(2,666,868)$

835,406,296
1,933,965(3,256,517)
5,153,380(41,416)-

Payments for acquisition of property, plant and equipment$ 1,082,672,130$

839,195,708

Additions of intangible assets
Changes in other financial assets
Changes in accrued expenses and other current liabilities$

7,535,092
7,584(588,350)$

9,318,478
2,950(280,677)

Payments for acquisition of intangible assets$

6,954,326$

9,040,751- 60 - 60 -

b. Reconciliation of liabilities arising from financing activities
Non-cash Changes

Short-term loans
Bonds payable
Long-term bank loans
Lease liabilities
Total

Balance as ofJanuary 1,
2022

Foreign
Exchange
Movement

Financing Cash
Flow

LeasesModifications

Other Changes(Note)

Balance as ofDecember 31,
2022$ 114,921,333
614,470,652
3,475,798
22,940,665$(111,959,992)
193,479,254
2,503,333(2,690,784)$$

11,713,474$(589,288)
303,420(5,195)
267,050$$ 755,808,448$ 81,331,811$ 41,948,256$ 11,713,474$(24,013 )$ 890,777,976

Balance as ofJanuary 1,
2021

Financing Cash
Flow

Foreign
Exchange
Movement

LeasesModifications

Other Changes(Note)

Balance as ofDecember 31,
2021$ 88,559,026
256,705,084
1,967,611
22,388,674$ 35,668,397
361,255,068
1,510,000(2,178,297)$(8,777,416)(3,646,920)(82,377)$

2,619,341$(528,674)
157,420(1,813)
193,324$ 114,921,333
614,470,652
3,475,798
22,940,665$ 369,620,395$ 396,255,168$ (12,506,713)$

2,619,341$(179,743)$ 755,808,448(2,372,053)
44,183,113
137,196852,436,439
5,973,936
32,367,601

Non-cash Changes

Short-term loans
Bonds payable
Long-term bank loans
Lease liabilities
Total

Note: Other changes include discounts on short-term loans, amortization of bonds payable, amortization of long-term bankloan interest subsidy and financial cost of lease liabilities.

32. CAPITAL MANAGEMENTThe Company requires significant amounts of capital to build and expand its production facilities and acquire
additional equipment. In consideration of the industry dynamics, the Company manages its capital in amanner to ensure that it has sufficient and necessary financial resources to fund its working capital needs,
capital expenditures, research and development activities, dividend payments, debt service requirements andother business requirements associated with its existing operations over the next 12 months.

33. FINANCIAL INSTRUMENTS
a. Categories of financial instruments

Financial assets
FVTPL (Note 1)
FVTOCI (Note 2)
Hedging financial assets
Amortized cost (Note 3)

Financial liabilities
FVTPL (Note 4)
Hedging financial liabilities
Amortized cost (Note 5)

Note 1: Financial assets mandatorily measured at FVTPL.

- 61 - 61 -December 31,
2022

December 31,
2021$

1,070,398
136,483,349
2,329
1,727,306,556$$ 1,864,862,632$ 1,413,495,242$

116,215813
1,669,270,659$$ 1,669,387,687$ 1,356,648,800

159,048
129,607,052
13,4681,283,715,674

681,914
9,642
1,355,957,244

Note 2: Including notes and accounts receivable (net), equity and debt investments.
Note 3: Including cash and cash equivalents, financial assets at amortized cost, notes and accounts
receivable (including related parties), other receivables, refundable deposits and temporary
payments (including those classified under other current assets and other noncurrent assets).
Note 4: Held for trading.
Note 5: Including short-term loans, accounts payable (including related parties), payables to contractors
and equipment suppliers, cash dividends payable, accrued expenses and other current liabilities,
bonds payable, long-term bank loans, guarantee deposits and other noncurrent liabilities.
b. Financial risk management objectives
The Company manages its exposure to foreign currency risk, interest rate risk, equity price risk, credit
risk and liquidity risk with the objective to reduce the potentially adverse effects the market uncertainties
may have on its financial performance.
The plans for material treasury activities are reviewed by the Audit Committees (rename to Audit andRisk Committee from February 14, 2023) and/or Board of Directors in accordance with procedures
required by relevant regulations or internal controls. During the implementation of such plans, theCompany must comply with certain treasury procedures that provide guiding principles for overall
financial risk management and segregation of duties.
c. Market risk
The Company is exposed to the financial market risks, primarily changes in foreign currency exchange
rates, interest rates and equity investment prices. A portion of these risks is hedged.
Foreign currency risk
Substantially all the Company’s sales are denominated in U.S. dollars and over half of its capital
expenditures are denominated in currencies other than NT dollars, primarily in U.S. dollars, Japanese yen
and Euros. As a result, any significant fluctuations to its disadvantage in the exchanges rate of NT dollar
against such currencies, in particular a weakening of U.S. dollar against NT dollar, would have an adverse
impact on the revenue and operating profit as expressed in NT dollars. The Company uses foreign
currency derivative contracts, such as currency forwards or currency swaps, to protect against currency
exchange rate risks associated with non-NT dollar-denominated assets and liabilities and certain
forecasted transactions. These hedges reduce, but do not entirely eliminate, the effect of foreign currency
exchange rate movements on the assets and liabilities.
Based on a sensitivity analysis performed on the Company’s total monetary assets and liabilities for theyears ended December 31, 2022 and 2021, a hypothetical adverse foreign currency exchange rate changeof 10% would have decreased its net income by NT$1,704,553 thousand and NT$1,435,346 thousand,respectively, after taking into account hedges and offsetting positions.
Interest rate risk
The Company is exposed to interest rate risks primarily in relation to its investment portfolio andoutstanding debt. Changes in interest rates affect the interest earned on the Company’s cash and cash
equivalents and fixed income securities, the fair value of those securities, as well as the interest paid on
its debt.
The Company’s cash and cash equivalents as well as fixed income investments in both fixed- andfloating-rate securities carry a degree of interest rate risk. The majority of the Company’s fixed income
investments are fixed-rate securities, which are classified as financial assets at FVTOCI, and may have

- 62 - 62 -

their fair value adversely affected due to a rise in interest rates. At the same time, if interest rates fall,
cash and cash equivalents as well as floating-rate securities may generate less interest income than
expected. The Company has entered and may in the future enter into interest rate derivatives to partiallyhedge the interest rate risk on its fixed income investments and anticipated debt issuance. However,these hedges can offset only a limited portion of the financial impact from movements in interest rates.
Based on a sensitivity analysis performed on the Company’s fixed income investments at the end of thereporting period, interest rates increase of 100 basis points (1.00%) across all maturities would havedecreased the Company’s other comprehensive income by NT$3,831,326 thousand and NT$3,767,071
thousand for the years ended December 31, 2022 and 2021, respectively.
All of the Company’s short-term debt is floating-rate, hence a rise in interest rates may result in higher
interest expense than expected. The majority of the Company’s long-term debt is fixed-rate and measured
at amortized cost and as such, changes in interest rates would not affect future cash flows or the carrying
amount.
Other price risk
The Company is exposed to equity price risk arising from financial assets at FVTOCI.
Assuming a hypothetical decrease of 10% in prices of the equity investments at the end of the reporting
period for the years ended December 31, 2022 and 2021, the other comprehensive income would havedecreased by NT$631,530 thousand and NT$595,766 thousand, respectively.
d. Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial losses to the Company. The Company is exposed to credit risks from operating activities,
primarily accounts receivable, and from investing activities, primarily deposits, fixed-income investments
and other financial instruments with banks. Credit risk is managed separately for business related andfinancial related exposures. As of the end of the reporting period, the Company’s maximum credit risk
exposure is equal to the carrying amount of financial assets.
Business related credit risk
The Company’s accounts receivable are from its customers worldwide. The majority of the Company’s
outstanding accounts receivable are not covered by collaterals or guarantees. While the Company has
procedures to monitor and manage credit risk exposure on accounts receivable, there is no assurance suchprocedures will effectively eliminate losses resulting from its credit risk. This risk is heightened during
periods when economic conditions worsen.
As of December 31, 2022 and 2021, the Company’s ten largest customers accounted for 82% and 79%
of accounts receivable, respectively. The Company considers the concentration of credit risk for theremaining accounts receivable not material.
Financial credit risk
The Company mitigates its financial credit risk by selecting counterparties with investment grade credit
ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors andreviews the limit applied to counterparties and adjusts the limit according to market conditions and thecredit standing of the counterparties.
The objective of the Company’s investment policy is to achieve a return that will allow the Company topreserve principal and support liquidity requirements. The policy generally requires securities to beinvestment grade and limits the amount of credit exposure to any one issuer. The Company assesses
whether there has been a significant increase in credit risk in the invested securities since initial- 63 - 63 -

recognition by reviewing changes in external credit ratings, financial market conditions and material
information of the issuers.
The Company assesses the 12-month expected credit loss and lifetime expected credit loss based on theprobability of default and loss given default provided by external credit rating agencies. The current
credit risk assessment policies are as follows:

Category
Performing
Doubtful
In default
Write-off

Expected
Credit Loss
Ratio

Basis for Recognizing
Expected Credit Loss

Description
Credit rating is investment grade on
valuation date
Credit rating is non-investment grade
on valuation date
Credit rating is CC or below on
valuation date
There is evidence indicating that the
debtor is in severe financial
difficulty and the Company has no
realistic prospect of recovery

12 months expected credit
loss
Lifetime expected credit
loss-not credit impaired
Lifetime expected credit
loss-credit impaired
Amount is written off

0-0.09%-For the years ended December 31, 2022 and 2021, the expected credit loss increased NT$57,936 thousand
and decreased NT$3,293 thousand, respectively. The changes were mainly due to increased investment
amount and adjusted investment portfolio.
e. Liquidity risk management
The objective of liquidity risk management is to ensure the Company has sufficient liquidity to fund its
business operations over the next 12 months. The Company manages its liquidity risk by maintaining
adequate cash and cash equivalents, financial assets at FVTOCI-current, financial assets at amortizedcost-current and sufficient cost-efficient funding.
The table below summarizes the maturity profile of the Company’s financial liabilities based oncontractual undiscounted payments, including principal and interest.
Less Than
1 Year

1-3 Years

More Than
5 Years

3-5 Years

Total

December 31, 2022
Non-derivative financial liabilities
Accounts payable (including relatedparties)
Payables to contractors andequipment suppliers
Accrued expenses and other current
liabilities
Bonds payable
Long-term bank loans
Lease liabilities (including thoseclassified under accrued expenses
and other current liabilities)(Note)
Others$56,522,345

$

-

$

-

$

-

$

56,522,345

213,499,613

-

-

-

213,499,613

219,587,908
34,668,909
1,278,130

94,869,159
3,533,152

320,211,460
1,360,549

625,049,539-

219,587,908
1,074,799,067
6,171,831

2,999,840
528,556,745

5,367,809
166,266,718
270,036,838

4,754,007
10,518,481
336,844,497

22,589,117
783,182
648,421,838

35,710,773
177,568,381
1,783,859,918(Continued)- 64 - 64 -Less Than
1 Year

1-3 Years

More Than
5 Years

3-5 Years

Total

December 31, 2022

Derivative financial instruments
Forward exchange contracts
Outflows
Inflows$ 103,617,399(104,600,085)(982,686)$-$ 527,574,059$ 270,036,838$ 114,767,034

$

$

-

$

-

$ 103,617,399(104,600,085)(982,686)$ 336,844,497$ 648,421,838$ 1,782,877,232

$

$

-

$ 114,767,034

December 31, 2021
Non-derivative financial liabilities
Short-term loans
Accounts payable (including relatedparties)
Payables to contractors andequipment suppliers
Accrued expenses and other current
liabilities
Bonds payable
Long-term bank loans
Lease liabilities (including thoseclassified under accrued expenses
and other current liabilities)(Note)
Others--

48,722,789

-

-

-

48,722,789

145,742,148

-

-

-

145,742,148

120,240,359
13,580,628
183,671

42,801,397
2,217,112

191,458,126
1,153,900

506,504,958-

120,240,359
754,345,109
3,554,683

2,371,568
445,608,197

3,896,249
164,991,929
213,906,687

3,385,295
195,997,321

14,649,235
521,154,193

24,302,347
164,991,929
1,376,666,398

187,708,035(187,631,930)
76,105---

187,708,035(187,631,930)
76,105$ 445,684,302$ 213,906,687$ 195,997,321$ 521,154,193$ 1,376,742,503

Derivative financial instruments
Forward exchange contracts
Outflows
Inflows(Concluded)
Note:

Information about the maturity analysis for lease liabilities more than 5 years:

5-10 Years

10-15 Years

15-20 Years

More Than
20 Years

Total

December 31, 2022
Lease liabilities$

10,241,734$

7,329,012$

4,233,886$

784,485$

22,589,117$

7,513,939$

5,043,067$

1,972,740$

119,489$

14,649,235

December 31, 2021
Lease liabilities

f. Fair value of financial instruments
1) Fair value measurements recognized in the consolidated balance sheets
Fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value
is observable:
 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active
markets for identical assets or liabilities;- 65 - 65 - Level 2 fair value measurements are those derived from inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) orindirectly (i.e. derived from prices); and Level 3 fair value measurements are those derived from valuation techniques that include inputs
for the asset or liability that are not based on observable market data (unobservable inputs).
The timing of transfers between levels within the fair value hierarchy is at the end of reporting period.
2) Fair value of financial instruments that are measured at fair value on a recurring basis
Fair value hierarchy
The following table presents the Company’s financial assets and liabilities measured at fair value on
a recurring basis:
December 31, 2022
Level 2
Level 3

Level 1

Total

Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts
Convertible bonds$$

947,546947,546

$

$

-

$

122,852
122,852$-$ 66,116,166$-$ 66,116,166

18,845,577-

28,399,890
84,347
9,274,697-

28,399,890
18,929,924
9,274,697

277,866-

7,325,606

6,159,200-

6,159,200
277,866
7,325,606$ 19,123,443$ 111,200,706$

6,159,200$ 136,483,349

$

2,329

$

-

$

-

$

2,329

$

-

$

116,215$-$

116,215

$

813

$

-

$

-

$

813

$

$
$

947,546
122,852
1,070,398

Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds
Agency bonds/Agency
mortgage-backed securities
Government bonds
Asset-backed securities
Investments in equity instruments
Non-publicly traded equity
investments
Publicly traded stocks
Notes and accounts receivable, net

Hedging financial assets
Fair value hedges
Interest rate futures contracts
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts
Hedging financial liabilities
Fair value hedges
Interest rate futures contracts- 66 - 66 -

December 31, 2021
Level 2
Level 3

Level 1

Total

Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts

$

-

$

159,048$-$

159,048$-$ 57,253,161$-$ 57,253,161

21,267,002-

32,070,114
78,7928,660,424-

32,070,114
21,345,794
8,660,424

189,758-

4,199,909

5,887,892-

5,887,892
189,758
4,199,909$ 21,456,760$ 102,262,400$

5,887,892$ 129,607,052

$

-

$

13,468$-$13,468$-$681,914$-$681,914

$

9,642

$

-

$

-

$

9,642

Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds
Agency bonds/Agency
mortgage-backed securities
Government bonds
Asset-backed securities
Investments in equity instruments
Non-publicly traded equity
investments
Publicly traded stocks
Notes and accounts receivable, net

Hedging financial assets
Cash flow hedges
Forward interest rate contracts
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts
Hedging financial liabilities
Fair value hedges
Interest rate futures contracts

Reconciliation of Level 3 fair value measurements of financial assets
The financial assets measured at Level 3 fair value were equity investments classified as financial
assets at FVTOCI and financial assets at FVTPL. Reconciliations for the years ended December 31,
2022 and 2021 are as follows:
Years Ended December 31
2022
2021
Balance, beginning of year
Additions
Recognized in other comprehensive income or loss
Disposals and proceeds from return of capital of investments
Transfers out of level 3 (Note)
Effect of exchange rate changes$ 5,887,892
715,612(373,263)(359,506)(139,770)
551,087$ 4,514,940
319,177
1,821,762(700,224)(67,763)

Balance, end of year

$ 6,282,052$ 5,887,892

Note:

The transfer from level 3 to level 1 is because quoted prices (unadjusted) in active markets
data became available for the equity investments.

- 67 - 67 -

Valuation techniques and assumptions used in Level 2 fair value measurement
The fair values of financial assets and financial liabilities are determined as follows: The fair values of corporate bonds, agency bonds, agency mortgage-backed securities,
asset-backed securities and government bonds are determined by quoted market prices provided
by third party pricing services.
 The fair values of forward contracts are measured using forward rates and discount rates derived
from quoted market prices.
 The fair value of accounts receivable classified as at FVTOCI is determined by the present valueof future cash flows based on the discount rate that reflects the credit risk of counterparties
Valuation techniques and assumptions used in Level 3 fair value measurement
The fair values of non-publicly traded equity investments (excluding those trading on the Emerging
Stock Board) are mainly determined by using the asset approach and market approach.
The asset approach takes into account the net asset value measured at the fair value by independent
parties. On December 31, 2022 and 2021, the Company uses unobservable inputs derived fromdiscount for lack of marketability of 10%. When other inputs remain equal, the fair value will decreaseby NT$48,704 thousand and NT51,372 thousand, respectively, if discounts for lack of marketability
increase by 1%.
For the remaining few investments, the market approach is used to arrive at their fair values, for which
the recent financing activities of investees, the market transaction prices of the similar companies andmarket conditions are considered.
In addition, the fair values of convertible bonds are prior transaction prices.
3) Fair value of financial instruments that are not measured at fair value
Except as detailed in the following table, the Company considers that the carrying amounts offinancial instruments in the consolidated financial statements that are not measured at fair value
approximate their fair values.
Fair value hierarchy
The table below sets out the fair value hierarchy for the Company’s financial assets and liabilities
which are not required to be measured at fair value:
December 31, 2022
Carrying
Level 2
AmountFair Value
Financial assets
Financial assets at amortized costs
Corporate bonds
Commercial paper$ 80,994,958
48,732,476$ 80,236,142
48,882,028$ 129,727,434$ 129,118,170$ 852,436,439$ 765,301,535

Financial liabilities
Financial liabilities at amortized costs
Bonds payable- 68 - 68 -

December 31, 2021
Carrying
Level 2
AmountFair Value
Financial assets
Financial assets at amortized costs
Corporate bonds$

5,306,962$

5,317,957

Financial liabilities
Financial liabilities at amortized costs
Bonds payable$ 614,470,652$ 613,514,692

Valuation techniques and assumptions used in Level 2 fair value measurement
The fair values of corporate bonds and the Company’s bonds payable are determined by quoted
market prices provided by third party pricing services.
The fair value of commercial paper is determined by the present value of future cash flows based on
the discounted curves that are derived from the quoted market prices.

34. RELATED PARTY TRANSACTIONSIntercompany balances and transactions between TSMC and its subsidiaries, which are related parties of
TSMC, have been eliminated upon consolidation; therefore, those items are not disclosed in this note. The
following is a summary of significant transactions between the Company and other related parties:
a. Related party name and categories
Related Party Name

Related Party Categories

GUC
VIS
SSMC
XintecAssociates
Associates
Associates
Associates

b. Net revenue
Years Ended December 31
2022
2021
Item

Related Party Categories

Net revenue from sale of goods

Associates$ 15,351,465- 69 - 69 -$8,475,908

c. Purchases
Years Ended December 31
2022
2021
Related Party Categories
Associates$ 6,423,913$ 7,569,787

December 31,
2022

December 31,
2021$ 1,471,351
112,607$597,836
117,488$ 1,583,958$

715,324$

68,277669
29$50,375
11,156-$

68,975$61,531d. Receivables from related parties

Item

Related Party Name

Receivables from relatedparties

GUC
XintecOther receivables from relatedparties

SSMC
VIS
Otherse. Payables to related parties

Item

Related Party Name

Payables to related parties

XintecSSMC
VIS
Others

December 31,
2022

December 31,
2021$ 1,047,452
385,979
190,587
18,619$$ 1,642,637$ 1,437,186

December 31,
2022

December 31,
2021$ 1,075,659$

725,325
349,211357,151
5,499

f. Accrued expenses and other current liabilities

Item

Related Party Categories

Contract liabilities

Associates- 70 - 70 -

726,350

g. Others
Years Ended December 31
2022
2021
Item

Related Party Categories

Manufacturing expenses

Associates$ 6,011,522$ 5,459,919

The sales prices and payment terms to related parties were not significantly different from those of sales
to third parties. For other related party transactions, price and terms were determined in accordance withmutual agreements.
The Company leased factory and office from associates. The lease terms and prices were both determinedin accordance with mutual agreements. The rental expenses were paid to associates monthly; the related
expenses were both classified under manufacturing expenses.
h. Compensation of key management personnel
The compensation to directors and other key management personnel were as follows:
Years Ended December 31
2022
2021
Short-term employee benefits
Post-employment benefits
Share-based payments$ 4,369,097
3,013
286,227$ 2,886,786
2,900-$ 4,658,337$ 2,889,686

The compensation to directors and other key management personnel were determined by theCompensation Committee (rename to Compensation and People Development Committee from February
14, 2023) of TSMC in accordance with the individual performance and market trends.

35. PLEDGED ASSETSThe Company provided certificate of deposits recorded in other financial assets as collateral mainly forbuilding construction, building lease agreements and energy purchase agreements. As of December 31, 2022
and 2021, the aforementioned other financial assets amounted to NT$129,138 thousand and NT$210,235
thousand, respectively.

36. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS
Significant contingent liabilities and unrecognized commitments of the Company as of the end of thereporting period, excluding those disclosed in other notes, were as follows:a. Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C.
Government or its designee approved by TSMC can use up to 35% of TSMC’s capacity provided TSMC’s
outstanding commitments to its customers are not prejudiced. The term of this agreement is for five years
beginning from January 1, 1987 and is automatically renewed for successive periods of five years
unless otherwise terminated by either party with one year prior notice. As of the end of reporting period,
the R.O.C. Government did not invoke such right.
b. Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30,
1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in- 71 -- 71 -

Singapore. TSMC’s equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips
spun-off its semiconductor subsidiary which was renamed as NXP B.V. Further, TSMC and NXP B.V.
purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the
Shareholders Agreement on November 15, 2006. After the purchase, TSMC and NXP B.V. currently own
approximately 39% and 61% of the SSMC shares, respectively. TSMC and NXP B.V. are required, in
the aggregate, to purchase at least 70% of SSMC’s capacity, but TSMC alone is not required to purchasemore than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of
SSMC falls below a specific percentage of its capacity, the defaulting party is required to compensate
SSMC for all related unavoidable costs. There was no default from the aforementioned commitment asof the end of reporting period.
c. In September 2022, Daedalus Prime LLC (“Daedalus”) filed complaints in the U.S. International Trade
Commission (“ITC”) and the U.S. District Court for the Eastern District of Texas alleging that TSMC,
TSMC North America, and other companies infringe four U.S. patents. The ITC instituted aninvestigation in October 2022. The outcome cannot be determined and we cannot make a reliable
estimate of the contingent liability at this time.
d. TSMC entered into long-term purchase agreements of materials and supplies and agreements of waste
disposal with multiple suppliers. The relative minimum fulfillment quantity and price are specified in theagreements.
e. TSMC entered into a long-term purchase agreement of equipment. The relative fulfillment quantity andprice are specified in the agreement.
f. TSMC entered into long-term energy purchase agreements with multiple suppliers. The relative
fulfillment period, quantity and price are specified in the agreements.
g. Amounts available under unused letters of credit as of December 31, 2022 and 2021 were NT$383,974
thousand and NT$136,710 thousand, respectively.
h. The Company entrusted financial institutions to open performance guarantee mainly for import andexport of goods, lease agreement and energy purchase agreement. As of December 31, 2022 and 2021,
the aforementioned guarantee amounted to NT$7,623,262 thousand and NT$4,954,798 thousand,respectively.

37. EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND
LIABILITIESThe following information was summarized according to the foreign currencies other than the functional
currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into thefunctional currency. The significant financial assets and liabilities denominated in foreign currencies were as
follows:
Foreign
Currencies(In Thousands)

Exchange Rate
(Note 1)

$ 15,214,896
8,375

30.71332.838Carrying
Amount(In Thousands)

December 31, 2022
Financial assets
Monetary items
USD
EUR- 72 - 72 -$ 467,295,097
275,006(Continued)

Foreign
Currencies(In Thousands)
EUR
JPY

$

Exchange Rate
(Note 1)

Carrying
Amount(In Thousands)

29,161133,034,271

7.432(Note 2)
0.2331$

957,587
31,010,288

15,190,659
2,375,378
134,608,488

30.71332.8380.2331

466,550,704
78,002,647
31,377,239

11,445,396
2,023,233
14,96440,326
10,921,880

27.6746.379(Note 3)
31.4607.252(Note 2)0.2414

316,739,883
55,990,951
470,776
1,268,665
2,636,542

11,958,503
3,539,320
112,456,908

27.67431.4600.2414

330,939,620
111,347,020
27,147,098(Concluded)

Financial liabilities
Monetary items
USD
EUR
JPY
December 31, 2021
Financial assets
Monetary items
USD
USD
EUR
EUR
JPY
Financial liabilities
Monetary items
USD
EUR
JPY

Note 1: Except as otherwise noted, exchange rate represents the number of NT dollar for which one foreign
currency could be exchanged.
Note 2: The exchange rate represents the number of RMB for which one Euro could be exchanged.
Note 3: The exchange rate represents the number of RMB for which one U.S. dollar could be exchanged.
Please refer to the consolidated statements of comprehensive income for the total of realized and unrealized
foreign exchange gain and loss for the years ended December 31, 2022 and 2021, respectively. Since there
were varieties of foreign currency transactions and functional currencies within the subsidiaries of theCompany, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency
with significant impact.

38. ADDITIONAL DISCLOSURES
Following are the additional disclosures required by the Securities and Futures Bureau for TSMC:
a. Financings provided: See Table 1 attached;b. Endorsement/guarantee provided: See Table 2 attached;c. Marketable securities held (excluding investments in subsidiaries and associates): See Table 3 attached;- 73 - 73 -

d. Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of
the paid-in capital: See Table 4 attached;e. Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in
capital: See Table 5 attached;f. Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in
capital: None;g. Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital:
See Table 6 attached;h. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See
Table 7 attached;i.

Information about the derivative financial instruments transaction: See Notes 7 and 10;

j.

Others: The business relationship between the parent and the subsidiaries and significant transactions
between them: See Table 8 attached;k. Names, locations, and related information of investees over which TSMC exercises significant influence(excluding information on investment in mainland China): See Table 9 attached;l.

Information on investment in mainland China
1) The name of the investee in mainland China, the main businesses and products, its issued capital,
method of investment, information on inflow or outflow of capital, percentage of ownership, income(losses) of the investee, share of profits/losses of investee, ending balance, amount received as
dividends from the investee, and the limitation on investee: See Table 10 attached.
2) Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized
gain or loss, and other related information which is helpful to understand the impact of investment in
mainland China on financial reports: See Table 8 attached.

m. Information of major shareholders
List of all shareholders with ownership of 5 percent or greater showing the names and the number ofshares and percentage of ownership held by each shareholder: See Table 11 attached.

39. OPERATING SEGMENTS INFORMATION
a. Operating segments, segment revenue and operating results
TSMC’s chief operating decision makers periodically review operating results, focusing on operating
income generated by foundry segment. Operating results are used for resource allocation and/or
performance assessment. As a result, the Company has only one operating segment, the foundry segment.
The foundry segment engages mainly in the manufacturing, sales, packaging, testing and computer-aided
design of integrated circuits and other semiconductor devices and the manufacturing of masks.
The basis for the measurement of income from operations is the same as that for the preparation offinancial statements. Please refer to the consolidated statements of comprehensive income for the related
segment revenue and operating results.

- 74 - 74 -

b. Geographic and major customers’ information were as follows:
1) Geographic information

Noncurrent Assets

December 31,
2022

December 31,
2021

TaiwanUnited States
China
Europe, the Middle East and Africa
Japan
Others$ 2,510,238,722
153,137,833
90,349,673
140,70915,432,491
1,922$ 1,953,007,722
41,208,723
41,895,164
143,916
1,011,043
539$ 2,769,301,350$ 2,037,267,107

Noncurrent assets include property, plant and equipment, right-of-use assets, intangible assets andother noncurrent assets.
2) Major customers representing at least 10% of net revenue
Years Ended December 31
2022
2021
Amount%AmountCustomer A
Customer B
Note:$ 529,649,200
NA (Note)

Revenue less than 10% of the Company’s net revenue.

- 75 - 75 -23
NA$ 405,402,955
153,740,831

%
26
10

$
74,200,110(RMB 8,800,000)&(USD 1,150,000)

Maximum
Balance for the
Period (Foreign
Currencies inThousands) (Note 2)$
74,200,110(RMB 8,800,000)&(USD 1,150,000)$
45,211,510(RMB 7,800,000)&( USD
350,000)

Nature for Financing

- -76
76 --

0.75%-1.50% The need for short-termand long-term
financingEnding Balance
Amount Actually(Foreign Currencies
Drawn
Interest Ratein Thousands)(Foreign Currencies in(Note 2)Thousands)

The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.

Yes

RelatedParty

The aggregate amount available for lending to TSMC Nanjing from TSMC China shall not exceed the net worth of TSMC China.

TSMC Nanjing Other receivables from
related parties

Financial Statement
Account

Note 2:

TSMC China

1Counterparty

Note 1:

FinancingCompanyNo.

FINANCINGS PROVIDEDFOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries$

Transaction
Amounts-

Operating capital

Reason for
Financing$-

Allowance for Bad
Debt

-

Item

$

Value

Collateral-$

87,432,993$

87,432,993

Financing Limits
Financingfor Each
Company’s Total
Borrowing
Financing AmountCompany
Limits(Note 1)
(Note 1)TABLE 1

TSMC

TSMC Japan0

1

The same parent
company

Subsidiary

TSMC Arizona

TSMC JDC

Subsidiary

Subsidiary

Nature ofRelationship

TSMC North
America
TSMC Global

Name

Maximum
Balancefor the Period(Foreign
Currencies inThousands)(Note 3)

-

-

-

-

0.01%

12.55%

7.82%

0.09%

336,399

736,413,299

736,413,299$ 736,413,299

Ratio ofMaximumEnding Balance
Amount of
Accumulated
Amount Actually
Endorsement/(Foreign
Endorsement/
Endorsement/
Drawn
Guarantee
Currencies in
Guarantee
Guarantee to Net(US$ inAmountThousands)
Collateralized by
Equity per
Thousands)
Allowable(Note 3)
Properties
Latest Financial(Notes 1 and 2)
Statements$
2,555,730 $
2,555,730 $
2,555,730 $( US$
83,213 ) ( US$83,213 ) ( US$83,213 )736,413,299
230,347,500
230,347,500
230,347,500( US$ 7,500,000 ) ( US$ 7,500,000 ) ( US$ 7,500,000 )
736,413,299
369,551,715
369,551,715
246,699,701( US$12,032,420 ) ( US$12,032,420 ) ( US$ 8,032,420 )
336,399
307,692
307,692
307,692( JPY 1,320,000 ) ( JPY 1,320,000 ) ( JPY 1,320,000 )$ 736,413,299

Limits onEndorsement/
Guarantee
AmountProvided to Each
Guaranteed
Party(Notes 1 and 2)

- -77
77 --

Note 3: The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.

Note 2: The total amount of the endorsement/guarantee provided by TSMC Japan to TSMC JDC shall not exceed two hundred and fifty percent (250%) of TSMC Japan’s net worth.

No

Yes

Yes

Yes

Guarantee
Provided byParentCompany

Note 1: The total amount of the endorsement/guarantee provided by TSMC to TSMC North America, TSMC Global and TSMC Arizona shall not exceed twenty-five percent (25%) of TSMC’s net worth.

Endorsement/
Guarantee Provider

No.

Guaranteed Party

ENDORSEMENTS/GUARANTEES PROVIDEDFOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

No

No

No

No

No

No

No

No

Guarantee
Guarantee
Provided toProvided by Subsidiaries
A Subsidiary in Mainland
China

TABLE 2

TSMC Global

TSMC Partners

TSMC

Held Company Name-

Corporate bondMorgan Stanley

Bank of America Corporation
Citigroup Inc.
Wells Fargo & Company
The Goldman Sachs Group, Inc.
JPMorgan Chase & Co.
Mitsubishi UFJ Financial Group, Inc.
HSBC Holdings plc
AbbVie Inc.
Sumitomo Mitsui Financial Group, Inc.
Banco Santander, S.A.
Metropolitan Life Global Funding I
Athene Global Funding
Oracle Corporation
Royal Bank of Canada
Principal Life Global Funding II
The Toronto-Dominion Bank
Equitable Financial Life Global Funding
BNP Paribas SA-

China Walden Venture Investments II, L.P.
China Walden Venture Investments III, L.P.
Tela Innovations
Movella Inc.

-

United Industrial Gases Co., Ltd.
Global Investment Holding Inc.
Crimson Asia Capital--

Non-publicly traded equity investments
Shin-Etsu Handotai Taiwan Co., Ltd.

Non-publicly traded equity investments
Shanghai Walden Venture Capital Enterprise-

Relationship with the Company

Commercial paper
Taiwan Power Company
CPC Corporation, Taiwan
Nan Ya Plastics Corporation
Formosa Petrochemical Corporation
Formosa Chemicals & Fibre Corporation
Formosa Plastics Corporation

Marketable Securities Type and Name

MARKETABLE SECURITIES HELD
December 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

- -78
78 --

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial assets at fair value through othercomprehensive income〃〃〃〃

Financial assets at fair value through othercomprehensive income〃〃〃

Financial assets at amortized cost
〃
〃
〃
〃
〃

Financial Statement Account

-

-

6,942
6,333

-

21,23010,442-

10,500

2,950
750
450
300
250
200

Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

US$
US$

US$

$

76,626
61,49359,73551,43950,62932,94932,402
27,892
27,65826,257
24,40823,191
21,865
21,423
19,76819,51018,97918,931

83,242

18,454
13,602-

26,441

443,461
97,772-473,508

29,335,729
7,458,936
4,476,301
2,985,385
2,485,666
1,990,459

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

9
4
22
9

6

10
6
1

7

N/A
N/A
N/A
N/A
N/A
N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

US$
US$

US$

$

76,626
61,49359,73551,43950,62932,94932,402
27,892
27,65826,257
24,40823,191
21,865
21,423
19,76819,51018,97918,931

83,242

18,454
13,602-

26,441

443,461
97,772-473,508

29,421,735
7,481,537
4,492,086
2,994,951
2,494,159
1,997,560

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TABLE 3

TSMC Global

Held Company Name-

Fédération des caisses Desjardins du Québec
Sumitomo Mitsui Trust Bank, Limited
Guardian Life Global Funding
Mizuho Financial Group, Inc.
Deutsche Bank AG - New York Branch
Hyundai Capital America
Volkswagen Group of America Finance, LLC
Nationwide Building Society
NatWest Markets Plc
Bank of Montreal
Protective Life Global Funding
BPCE SA
Capital One Financial Corporation
ING Groep N.V.
NTT Finance Corporation
Svenska Handelsbanken AB (publ)Société Générale Société anonyme
The Bank of Nova Scotia
Credit Suisse AG, New York BranchApple Inc.
Macquarie Group Limited
Santander UK Group Holdings plc
Credit Agricole SA London Branch
Toyota Motor Credit Corporation
Standard Chartered PLC
UBS Group AG
The Bank of New York Mellon Corporation
Barclays PLC
Fifth Third Bancorp
National Securities Clearing Corporation
Banque Fédérative du Crédit Mutuel Société anonyme
Lloyds Banking Group plc
AT&T Inc.
S&P Global Inc.
Nomura Holdings, Inc.
U.S. Bancorp
Verizon Communications Inc.
Citizens Bank, National Association
Enel Finance International N.V.
Roper Technologies, Inc.
Equifax Inc.
Equinor ASA
Amazon.com, Inc.
Merck & Co., Inc.
Bristol-Myers Squibb Company
GSK Consumer Healthcare Capital US LLCAIG Global Funding
New York Life Global Funding

Relationship with the Company

Nordea Bank Abp

Marketable Securities Type and Name

- -79
79 --

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
18,086
17,15816,412
16,16916,03815,807
15,613
15,375
15,314
15,224
15,045
14,691
14,125
14,05013,744
13,50813,327
12,914
12,688
12,233
11,654
11,628
11,611
11,60911,541
11,473
11,282
11,263
10,917
10,878
10,738
10,533
10,528
10,246
10,195
9,781
9,765
9,364
9,104
9,035
8,925
8,832
8,820
8,616
8,441
8,314
8,209
8,192

18,263
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

18,086
17,15816,412
16,16916,03815,807
15,613
15,375
15,314
15,224
15,045
14,691
14,125
14,05013,744
13,50813,327
12,914
12,688
12,233
11,654
11,628
11,611
11,60911,541
11,473
11,282
11,263
10,917
10,878
10,738
10,533
10,528
10,246
10,195
9,781
9,765
9,364
9,104
9,035
8,925
8,832
8,820
8,616
8,441
8,314
8,209
8,192

18,263

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Truist Financial Corporation
International Bank for Reconstruction and Development
KfW
UnitedHealth Group Incorporated
AstraZeneca Finance LLC
Canadian Imperial Bank of Commerce
Inter-American Development Bank
Suncorp-Metway Limited
Great-West Lifeco U.S. Finance 2020, Lp
Lowe's Companies, Inc.
Northwestern Mutual Global Funding
Chevron Corporation
Fidelity National Information Services, Inc.
AstraZeneca PLC
Prudential Funding Corp.
John Deere Capital Corporation
Intuit Inc.
Cargill, Incorporated
Daimler Trucks Finance North America LLC
Roche Holdings, Inc.
The East Ohio Gas Company
Jackson National Life Global Funding
Danske Bank A/S
Ameren Corporation
Huntington Bancshares Incorporated
Discover Bank (New Castle, Delaware)
Exxon Mobil Corporation
Swedbank AB (publ)
Fox Corporation
ANZ New Zealand (Int'l) Limited
Exelon Corporation
Take-Two Interactive Software, Inc.
Macquarie Bank Limited
Scentre Group Trust 1
WEC Energy Group, Inc.
WPP Finance 2010
Huntington National BankIntercontinental Exchange, Inc.
UBS AG, London Branch
Pacific Life Global Funding II
Siemens Financieringsmaatschappij N.V.
The Charles Schwab Corporation
Alabama Power Company
Pioneer Natural Resources Company
ASB Bank Limited
Cox Communications, Inc.
Intel Corporation
Nutrien Ltd.

Relationship with the Company

American Express Company

Marketable Securities Type and Name

- -80
80 --

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
7,851
7,608
7,594
7,504
7,477
7,443
7,346
7,315
7,287
7,135
6,853
6,838
6,619
6,500
6,447
6,437
6,421
6,378
6,367
6,339
6,333
6,283
6,149
5,960
5,865
5,864
5,749
5,733
5,630
5,604
5,591
5,576
5,541
5,525
5,498
5,459
5,415
5,388
5,387
5,359
5,302
5,292
5,263
5,254
5,239
5,112
5,109
5,048

8,037
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

7,851
7,608
7,594
7,504
7,477
7,443
7,346
7,315
7,287
7,135
6,853
6,838
6,619
6,500
6,447
6,437
6,421
6,378
6,367
6,339
6,333
6,283
6,149
5,960
5,865
5,864
5,749
5,733
5,630
5,604
5,591
5,576
5,541
5,525
5,498
5,459
5,415
5,388
5,387
5,359
5,302
5,292
5,263
5,254
5,239
5,112
5,109
5,048

8,037

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Fiserv, Inc.
Five Corners Funding Trust
Penske Truck Leasing Co., L.P.
CVS Health Corporation
CGI Inc.
Brookfield Finance Inc.
Thermo Fisher Scientific Inc.
Virginia Electric and Power Company
NextEra Energy Capital Holdings, Inc.
W. P. Carey Inc.
HP Inc.
CenterPoint Energy, Inc.
CNH Industrial Capital LLC
Comcast Corporation
Bank of New ZealandEversource Energy
Brighthouse Financial Global Funding
Mercedes-Benz Finance North America LLC
Korea Electric Power Corporation
Florida Power & Light Company
Dollar General Corporation
F&G Global Funding
7-Eleven, Inc.
Element Fleet Management Corp.
CNO Global Funding
Coca-Cola Europacific Partners PLC
AvalonBay Communities, Inc.
European Bank for Reconstruction and Development
Mondelez International, Inc.
B.A.T. International Finance p.l.c.
Appalachian Power Company
Public Storage
V.F. Corporation
Monongahela Power Company
DNB Bank ASA
Ryder System, Inc.
Truist Bank
BorgWarner Inc.
OGE Energy Corp.
Welltower Inc.
HSBC Bank Canada
Kimco Realty Corporation
Diageo Capital plc
Ross Stores, Inc.
Sprint Spectrum Co Llc
SMBC Aviation Capital Finance DAC
U.S. Bancorp.
Pfizer Inc.

Relationship with the Company

Southern California Edison Company

Marketable Securities Type and Name

- -81
81 --

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
4,999
4,958
4,774
4,750
4,713
4,601
4,558
4,468
4,439
4,414
4,388
4,342
4,260
4,232
4,231
4,185
4,100
4,089
4,037
4,026
4,005
4,003
3,981
3,873
3,858
3,837
3,831
3,802
3,696
3,619
3,618
3,506
3,503
3,415
3,407
3,399
3,397
3,392
3,390
3,389
3,351
3,348
3,339
3,275
3,248
3,222
3,205
3,174

5,017
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

4,999
4,958
4,774
4,750
4,713
4,601
4,558
4,468
4,439
4,414
4,388
4,342
4,260
4,232
4,231
4,185
4,100
4,089
4,037
4,026
4,005
4,003
3,981
3,873
3,858
3,837
3,831
3,802
3,696
3,619
3,618
3,506
3,503
3,415
3,407
3,399
3,397
3,392
3,390
3,389
3,351
3,348
3,339
3,275
3,248
3,222
3,205
3,174

5,017

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Dominion Energy, Inc.
Verisk Analytics, Inc.
Realty Income Corporation
ERAC USA Finance LLC
Anheuser-Busch Companies, LLC
Xcel Energy Inc.
Simon Property Group, L.P.
ONE Gas, Inc.
Public Service Enterprise Group Incorporated
The Western Union Company
Gilead Sciences, Inc.
CNA Financial Corporation
MPLX LP
Atmos Energy Corporation
Johnson & Johnson
Rio Tinto Finance (USA) Limited
Oncor Electric Delivery Company LLC
Nestlé Holdings, Inc.
Air Lease Corporation
Avangrid, Inc.
Southern California Gas Company
Parker-Hannifin Corporation
TORONTO-DOMINION BANK/THE
Coöperatieve Rabobank U.A.
Novartis Capital Corporation
Baxalta Incorporated
PPL Electric Utilities Corporation
Amazon.com, Inc
Ameriprise Financial, Inc.
B.A.T Capital Corporation
Hewlett Packard Enterprise Company
Ventas Realty, Limited Partnership
Eastern Energy Gas Holdings, LLC
Chevron Phillips Chemical Company LLC
Mondelez International Holdings Netherlands B.V.
Masco Corporation
GA Global Funding Trust
Baxter International Inc.
NBN Co Limited
M&T Bank Corporation
Air Products and Chemicals, Inc.
International Business Machines Corporation
Nuveen Finance, LLC
Cigna Corporation
The PNC Financial Services Group, Inc.
Santander UK plc
Pinnacle West Capital Corporation
Bayer US Finance II LLC

Relationship with the Company

Highmark Inc.

Marketable Securities Type and Name

- -82
82 --

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
3,167
3,163
3,162
3,112
3,035
3,029
3,018
3,012
2,996
2,983
2,970
2,950
2,941
2,934
2,914
2,908
2,905
2,905
2,895
2,861
2,848
2,768
2,768
2,767
2,734
2,728
2,718
2,691
2,677
2,671
2,635
2,600
2,598
2,579
2,577
2,519
2,484
2,469
2,461
2,459
2,447
2,445
2,437
2,426
2,424
2,417
2,397
2,374

3,171
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

3,167
3,163
3,162
3,112
3,035
3,029
3,018
3,012
2,996
2,983
2,970
2,950
2,941
2,934
2,914
2,908
2,905
2,905
2,895
2,861
2,848
2,768
2,768
2,767
2,734
2,728
2,718
2,691
2,677
2,671
2,635
2,600
2,598
2,579
2,577
2,519
2,484
2,469
2,461
2,459
2,447
2,445
2,437
2,426
2,424
2,417
2,397
2,374

3,171

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-CRH America, Inc.
Phillips 66
American Electric Power Company, Inc.
Workday, Inc.
CMS Energy Corporation
Magellan Midstream Partners, L.P.
Georgia Power Company
Texas Instruments Incorporated
Chevron U.S.A. Inc.
USAA Capital Corp.
Reynolds American Inc.
BOC Aviation Limited
O'Reilly Automotive, Inc.
RGA Global Funding
Yara International ASA
National Australia Bank - New York Branch
NiSource Inc.
Berkshire Hathaway Inc.
Empower Finance 2020, LP
Union Pacific Corporation
Health Care Service Corporation, a Mutual Legal Reserve
Company
Georgia-Pacific LLC
General Electric Company
The Sherwin-Williams Company
Mead Johnson Nutrition Company
Magna International Inc.
Reliance Standard Life Global Funding II
Public Service Electric and Gas Company
Tucson Electric Power Company
Gulf Power Company
National Rural Utilities Cooperative Finance Corporation
Duke Energy Corporation
Olympus Corporation
Otis Worldwide Corporation
Kinder Morgan, Inc.
Shinhan Financial Group Co., Ltd.
NBK SPC Limited
Mitsubishi Corporation
Sydney Airport Finance Company Pty Ltd.
Caterpillar Financial Services Corporation
Kentucky Utilities Company
Wipro IT Services LLC
Enbridge Inc.
Infor, Inc.
Evergy Kansas Central, Inc.
DTE Energy Company
Tyson Foods, Inc.
--

Relationship with the Company

AutoZone, Inc.

Marketable Securities Type and Name

- -83
83 --

〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account

-

-

-

Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

2,028
1,991
1,967
1,961
1,956
1,948
1,948
1,918
1,884
1,881
1,871
1,860
1,859
1,787
1,785
1,754
1,752
1,733
1,726
1,717
1,674
1,672
1,670
1,658
1,647
1,624

2,371
2,352
2,343
2,333
2,324
2,299
2,281
2,279
2,262
2,242
2,228
2,223
2,223
2,216
2,215
2,200
2,178
2,161
2,129
2,082
2,065

2,373

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

2,028
1,991
1,967
1,961
1,956
1,948
1,948
1,918
1,884
1,881
1,871
1,860
1,859
1,787
1,785
1,754
1,752
1,733
1,726
1,717
1,674
1,672
1,670
1,658
1,647
1,624

2,371
2,352
2,343
2,333
2,324
2,299
2,281
2,279
2,262
2,242
2,228
2,223
2,223
2,216
2,215
2,200
2,178
2,161
2,129
2,082
2,065

2,373

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Gulfstream Natural Gas System, L.L.C.
NatWest Group plc
Burlington Northern Santa Fe, LLC
Berkshire Hathaway Energy Company
Walmart Inc.
University of California
CSL Finance plc
Raytheon Technologies Corporation
AIA Group Limited
Midwest Connector Capital Company LLC
eBay Inc.
UBS AG (LONDON BRANCH)
Emerson Electric Co.
MetLife, Inc.
Westpac Banking Corporation
Glencore Funding LLC
APA Infrastructure Limited
Brookfield Finance LLC
CK Hutchison International (19) Limited
Amcor Flexibles North America Inc.
Microchip Technology Incorporated
Commonwealth Bank of Australia
UBS Group Funding (Jersey) Ltd.
Marsh & McLennan Companies, Inc.
The Southern Company
NSTAR Electric Company
Duke Energy Florida, LLC
Marathon Petroleum Corporation
Essex Portfolio, L.P.
Alimentation Couche-Tard Inc.
ITC Holdings Corp.
Alliant Energy Finance, LLC
Eastern Gas Transmission and Storage, Inc.
NetApp, Inc.
Amphenol Corporation
PACCAR Financial Corp.
State Of Tennessee
Met Tower Global Funding
Elevance Health Inc.
Andrew W. Mellon Foundation, The
American Honda Finance Corporation
Corebridge Financial, Inc.
Banco Bilbao Vizcaya Argentaria, S.A.
The Curators of the University of Missouri
Ferguson Finance PLC
Nucor Corporation
Baker Hughes Holdings LLC
State Street Corporation

Relationship with the Company

Quest Diagnostics Incorporated

Marketable Securities Type and Name

- -84
84 --

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
1,595
1,594
1,591
1,587
1,583
1,578
1,577
1,576
1,554
1,551
1,532
1,522
1,508
1,507
1,503
1,493
1,483
1,473
1,465
1,461
1,458
1,452
1,443
1,427
1,423
1,420
1,419
1,411
1,409
1,389
1,353
1,321
1,299
1,265
1,256
1,227
1,225
1,223
1,215
1,208
1,174
1,167
1,162
1,080
1,077
1,067
1,038
1,035

1,601
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

1,595
1,594
1,591
1,587
1,583
1,578
1,577
1,576
1,554
1,551
1,532
1,522
1,508
1,507
1,503
1,493
1,483
1,473
1,465
1,461
1,458
1,452
1,443
1,427
1,423
1,420
1,419
1,411
1,409
1,389
1,353
1,321
1,299
1,265
1,256
1,227
1,225
1,223
1,215
1,208
1,174
1,167
1,162
1,080
1,077
1,067
1,038
1,035

1,601

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name

-

〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
-

- -85
85 --

-

-

-

Shares/Units(In Thousands)

〃
〃
〃
〃
〃

-

IBERDROLA INTL BV
The Cleveland Electric Illuminating Company
Baltimore Gas and Electric Company
Sinopec Group Overseas Development (2014) Ltd.
Entergy Mississippi, LLC
Foxconn (Far East) Limited
MassMutual Global Funding II
BBVA México, S.A., Institución de Banca Múltiple, Grupo
Financiero BBVA México
Denver City & County Housing Authority
Pricoa Global Funding I
Kansas City Southern
Suntory Holdings Limited
Shire Acquisitions Investments Ireland Designated Activity
Company
Unilever Capital Corporation
KeyBank National AssociationQNB Finance Ltd.
AmerisourceBergen Corporation
Hormel Foods Corporation
BMW US Capital, LLC
Palm Beach County, Florida
Sinopec Capital (2013) Ltd.
BHP Billiton Finance (USA) Limited
TransCanada PipeLines Limited
Oregon Health & Science University
Tencent Holdings Limited
Niagara Mohawk Power Corporation
CubeSmart, L.P.
The Walt Disney Company
Southern Power Company
Visa Inc.
Canadian Natural Resources Limited
Sky Limited
Hyundai Capital Services, Inc.
State Of Washington
Abbott Laboratories
Sodexo, Inc.
Norsk Hydro ASA
Stryker Corporation
Automatic Data Processing, Inc.
Bell Canada, Inc.
Keurig Dr Pepper Inc.
QUALCOMM Incorporated
Republic Services, Inc.
Florida Hurricane Catastrophe Fund Finance Corporation
Lincoln National Corporation
Port of Morrow
American Water Capital Corp.

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Relationship with the Company

Enterprise Products Operating LLC

Marketable Securities Type and Name

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$

US$

873
864
859
834
820
797
795
795
795
787
772
749
745
735
732
718
717
700
684
652
645
643
640
639
635
626
617
594
592
578
572
571
565
558

973
963
940
939
919

1,015
1,005
993
993
989
987
987
985

1,028

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$

US$

873
864
859
834
820
797
795
795
795
787
772
749
745
735
732
718
717
700
684
652
645
643
640
639
635
626
617
594
592
578
572
571
565
558

973
963
940
939
919

1,015
1,005
993
993
989
987
987
985

1,028

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Duke Energy Progress, LLC
Shell International Finance B.V.
American International Group, Inc.
Intesa Sanpaolo S.p.A.
Arizona Public Service Company
ConocoPhillips Company
State of Hawaii
United Parcel Service, Inc.
Skandinaviska Enskilda Banken AB (publ)
Gsk Consumer Healthcare Capital Uk Plc
Trane Technologies Luxembourg Finance S.A.
Genuine Parts Company
Altria Group, Inc.
McCormick & Company, Incorporated
Ecolab Inc.
DENSO Corporation
Brazos Higher Education Authority Inc
PayPal Holdings, Inc.
The Home Depot, Inc.
Target Corporation
National Australia Bank Limited
Aetna Inc.
Boston Properties Limited Partnership
University of Massachusetts Building Authority
Comerica BankEntergy Corporation
Aflac Incorporated
Banco del Estado de Chile
McKesson Corporation
Sierra Pacific Power Company
Honeywell International Inc.
NIKE, Inc.
PepsiCo, Inc.
First Republic Bank
The Norinchukin Bank
Principal Financial Group, Inc.
Rabobank Nederland - New York Branch
Amgen Inc.
Philip Morris International Inc.
Mid-America Apartments, L.P.
The Allstate Corporation
Alabama State Federal Aid Highway Finance Authority
TotalEnergies Capital International
BOC Aviation (USA) Corporation
Aptiv PLC
Salesforce, Inc.
Barclays Bank PLC
Johnson Controls International plc

Relationship with the Company

Fifth Third Bank, National Association

Marketable Securities Type and Name

- -86
86 --

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
544
524
518
510
501
499
498
493
491
476
472
467
466
466
465
435
429
407
406
404
397
396
394
387
384
379
377
377
374
372
370
359
357
349
349
348
334
310
297
295
293
292
287
285
282
282
270
269

549
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

544
524
518
510
501
499
498
493
491
476
472
467
466
466
465
435
429
407
406
404
397
396
394
387
384
379
377
377
374
372
370
359
357
349
349
348
334
310
297
295
293
292
287
285
282
282
270
269

549

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Sales Tax Securitization Corporation Of Chicago
Equitable Holdings, Inc.
Starbucks Corporation
E. I. du Pont de Nemours and Company
Waste Management, Inc.
Entergy Louisiana, LLC
Children's Hospital Of Orange County
The Pennsylvania State University
Martin Marietta Materials, Inc.
Riverside County Infrastructure Financing Authority
Deere & Company
Saudi Arabian Oil Company
Los Angeles Department of Water and Power, California
NongHyup Bank
Hoover Alabama Board Of Education
Dormitory Authority of the State of New York
Oregon Education Districts
Electricité de France S.A.
Beth Israel Deaconess Medical Center, Inc.
Pima County, ArizonaState of Wisconsin
Aon Corporation
Huntington Beach California
Nueces County
The Goldman Sachs Group, Inc.
Citigroup Global Markets Inc.
Bank of America Corporation
JPMorgan Chase & Co.
Wells Fargo & Company
Citigroup Inc.
Citigroup Global Markets Holdings Inc.
Goldman Sachs Finance Corp International Ltd.
Morgan Stanley
Jpmorgan LLC
Banco Bilbao Vizcaya Argentaria, S.A.
Hyundai Capital Services, Inc.
Great-West Lifeco U.S. Finance 2020, Lp
Nomura Holdings, Inc.
Fédération des caisses Desjardins du Québec
UBS Group AG
Sumitomo Mitsui Trust Bank, Limited
Deutsche Bank AG - New York Branch
Lloyds Banking Group plc
NatWest Markets Plc
Athene Global Funding
NongHyup BankBPCE SA
Banco Santander, S.A.

Relationship with the Company

QatarEnergy

Marketable Securities Type and Name

- -87
87 --

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
Financial assets at amortized cost
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
250
243
237
227
224
218
214
206
205
198
192
192
191
187
175
154
152
96
85
76
61
51
49
24
440,655
349,886
324,757
280,213274,713
174,540
149,951
149,870
60,20749,984
10,534
9,278
9,233
9,197
9,165
9,104
9,057
9,023
8,972
8,956
8,915
8,545
8,431
8,307

266
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

250
243
237
227
224
218
214
206
205
198
192
192
191
187
175
154
152
96
85
76
61
51
49
24
436,003347,251
323,371
278,222
273,120
174,301
146,964
146,872
60,26749,077
10,440
9,068
8,994
9,009
8,997
9,061
8,910
8,923
8,891
8,834
8,733
8,431
8,243
8,223

266

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name

Enel Finance International N.V.
Ventas Realty, Limited Partnership
Protective Life Global Funding
Volkswagen Group of America Finance, LLC
Sydney Airport Finance Company Pty Ltd.
BNP Paribas SA
AIG Global Funding
Nationwide Building Society
KeyBank National Association
GA Global Funding Trust
Canadian Imperial Bank of Commerce
Mitsubishi UFJ Financial Group, Inc.
CRH America, Inc.
Sumitomo Mitsui Financial Group, Inc.
Daimler Trucks Finance North America LLC
Swedbank AB (publ)
F&G Global Funding
Bayer US Finance II LLC
Ecolab Inc.
Kinder Morgan, Inc.
Jackson Financial Inc.
Bristol-Myers Squibb Company
ING Groep N.V.
Toyota Motor Credit Corporation
Five Corners Funding Trust
Svenska Handelsbanken AB (publ)Danone S.A.
National Australia Bank - New York Branch
Société Générale Société anonyme
Mercedes-Benz Finance North America LLC
Mizuho Financial Group, Inc.
BMW US Capital, LLC
Penske Truck Leasing Co., L.P.
Georgia-Pacific LLC
Simon Property Group, L.P.
SMBC Aviation Capital Finance DAC
Philip Morris International Inc.
Danske Bank A/S
The Bank of Nova Scotia
Komatsu Finance America, Inc.
Nordea Bank Abp
Shire Acquisitions Investments Ireland Designated Activity
Company
Georgia Power Company
Enbridge Inc.
Central Japan Railway Company
Jackson National Life Global Funding
Nestlé Holdings, Inc.
ANZ New Zealand (Int'l) Limited
Spectra Energy Partners, LP

Marketable Securities Type and Name--

Relationship with the Company

- -88
88 --

〃
〃
〃
〃
〃
〃
〃

Financial assets at amortized cost
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
3,553
3,423
3,389
3,326
3,276
3,191
2,831

8,215
8,181
8,088
8,058
7,631
7,552
7,200
7,200
7,014
6,285
6,167
6,062
5,975
5,754
5,706
5,248
5,185
4,988
4,878
4,681
4,678
4,674
4,504
4,497
4,415
4,182
4,156
4,005
4,005
4,002
4,000
3,999
3,998
3,996
3,987
3,979
3,969
3,966
3,914
3,912
3,788
3,740
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

3,532
3,382
3,361
3,242
3,237
3,122
2,770

8,062
8,076
7,913
7,937
7,476
7,448
7,151
6,971
6,844
6,185
6,065
5,983
5,822
5,702
5,582
5,173
5,098
4,929
4,812
4,643
4,632
4,621
4,465
4,449
4,356
4,105
4,113
3,979
3,965
3,979
3,991
3,983
3,978
3,963
3,960
3,961
3,950
3,921
3,875
3,879
3,751
3,703

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name

-

-

-

-

Government bondUnited States Department of The Treasury

Emirate of Abu Dhabi
Qatar

Agency bonds/Agency mortgage-backed securities
FEDERAL NATIONAL MORTGAGE ASSOCIATION

Federal Home Loan Mortgage Corporation
Government National Mortgage Association

Asset-backed securities
Hyundai Auto Receivables Trust 2021-C

BX Trust 2022-LBA6
JPMBB Commercial Mortgage Securities Trust 2014-C24
Toyota Auto Receivables 2022-B Owner Trust
Wells Fargo Commercial Mortgage Trust 2016-Bnk1
Ford Credit Auto Owner Trust 2021-Rev2
Citigroup Commercial Mortgage Trust 2015-GC33
BX Trust 2022-CLS
Ford Credit Auto Owner Trust 2020-REV2
Morgan Stanley Capital I Trust 2021-L6
JPMBB Commercial Mortgage Securities Trust 2016-C1
Morgan Stanley Bank America Merrill Lynch Trust 2016-C30
BBCMS Mortgage Trust 2020-C8
Benchmark 2019-B11 Mortgage Trust
Bank 2020-BNK26
Hudson Yards 2016-10HY Mortgage Trust
Citigroup Commercial Mortgage Trust 2021-PRM2
Wells Fargo Commercial Mortgage Trust 2016-C35
Bank 2021-bnk33
Bank 2017-Bnk6
Benchmark 2019-B12 Mortgage Trust
BBCMS 2018-Tall Mortgage TrustMorgan Stanley Bank America Merrill Lynch Trust 2013-C10
CSAIL 2018-CX11
Wells Fargo Commercial Mortgage Trust 2021-C59
GM Financial Revolving Receivables Trust 2021-1
Honda Auto Receivables 2021 - 4 Owner Trust

Relationship with the Company

Reliance Standard Life Global Funding II
Ryder System, Inc.
Southern California Edison Company
American Honda Finance Corporation
Oracle Corporation
Baxter International Inc.
Fidelity National Information Services, Inc.
Abbott Laboratories
Metropolitan Life Global Funding I

Marketable Securities Type and Name

- -89
89 --

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial assets at fair value through othercomprehensive income〃〃

Financial assets at fair value through othercomprehensive income〃〃

Financial assets at amortized cost
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account

-

-

-

-

-

-

-

Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

US$
US$

US$

US$
US$

US$

US$
US$
US$
US$
US$
US$
US$
US$
US$

9,655
9,612
9,543
8,910
7,307
7,101
6,865
6,603
6,163
6,085
5,990
5,924
5,796
5,741
5,552
5,388
5,318
5,307
5,305
5,231
5,080
4,697
4,670
4,662
4,350
4,329

10,395284,933
175,067

464,686

1,453
1,293

613,603

2,671
2,553
2,273
1,964
888
783
596
362
147

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

N/A
N/A

N/A

N/A
N/A

N/A

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

US$
US$

US$

US$
US$

US$

US$
US$
US$
US$
US$
US$
US$
US$
US$

9,655
9,612
9,543
8,910
7,307
7,101
6,865
6,603
6,163
6,085
5,990
5,924
5,796
5,741
5,552
5,388
5,318
5,307
5,305
5,231
5,080
4,697
4,670
4,662
4,350
4,329

10,395284,933
175,067

464,686

1,453
1,293

613,603

2,657
2,527
2,262
1,943
879
774
595
358
146

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-Bank 2017-BNK9
Citigroup Commercial Mortgage Trust 2014-GC21
Bank 2017 - BNK7Bank 2019-Bnk17
JPMCC 2017-JP7
BANK 2017-BNK5
Msbam 2016-C29
Bank 2019-Bnk22
Citigroup Commercial Mortgage Trust 2019-Gc43
Commerce 2015-CCRE24 Mortgage Trust
Msbam 2016-C31
WFRBS Commercial Mortgage Trust 2014-C25
Ford Credit Auto Owner Trust 2022-B
Benchmark 2019-B15 Mortgage Trust
Sreit Commercial Mortgage Trust 2021-Mfp
GS Mortgage Securities Corporation Trust 2018-RIVR
JPMDB 2017-C7
GS Mortgage Securities Trust 2015-GC32
Benchmark 2018-B3 Commercial Mortgage Trust
Ford Credit Auto Owner Trust 2020-Rev1
GS Mortgage Securities Trust 2013-GCJ12
Mhc Commercial Mortgage Trust 2021-Mhc
Citigroup Commercial Mortgage Trust 2015-P1
GM Financial Consumer Automobile Receivables Trust 2021-4
Citigroup Commercial Mortgage Trust 2015-GC27
Wells Fargo Commercial Mortgage Trust 2020-C55
UBS Commercial Mortgage Trust 2018-C11
Morgan Stanley Capital I Trust 2018-H3
Commerce 2013-CCRE12 Mortgage Trust
Benchmark 2018-B4 Mortgage TrustMorgan Stanley Capital I Trust
Dolp Trust 2021-NYC
CGCMT 2017-P8 Mortgage Trust
JPMBB Commercial Mortgage Securities Trust 2015-C28
Wells Fargo Commercial Mortgage Trust 2015-C30
JPMBB Commercial Mortgage Securities Trust 2015-C27
Wells Fargo Commercial Mortgage Trust 2018-C44
JPMBB Commercial Mortgage Securities Trust 2013-C12
COMM 2020-CBM Mortgage TrustMorgan Stanley Capital I Trust 2021-L5
Dbgs 2018-Biod Mortgage Trust
Wells Fargo Commercial Mortgage Trust 2015-C29
WFRBS Commercial Mortgage Trust 2013-UBS1
Honda Auto Receivables 2021-2 Owner TrustWFRBS Commercial Mortgage Trust 2013-C13
Toyota Auto Receivables 2021-D Owner Trust
Wells Fargo Commercial Mortgage Trust 2017-C40
Morgan Stanley Capital I Trust 2015 - UBS8

Relationship with the Company

MRCD 2019-Prkc Mortgage Trust

Marketable Securities Type and Name

- -90
90 --

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
4,245
4,127
3,967
3,904
3,849
3,458
3,433
3,270
3,162
3,030
2,983
2,882
2,850
2,790
2,789
2,787
2,622
2,600
2,473
2,343
2,313
2,221
2,144
2,069
2,055
2,046
1,983
1,970
1,962
1,946
1,830
1,759
1,690
1,585
1,547
1,498
1,455
1,450
1,421
1,331
1,257
1,225
1,217
1,209
1,164
1,131
1,054
946

4,306
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

4,245
4,127
3,967
3,904
3,849
3,458
3,433
3,270
3,162
3,030
2,983
2,882
2,850
2,790
2,789
2,787
2,622
2,600
2,473
2,343
2,313
2,221
2,144
2,069
2,055
2,046
1,983
1,970
1,962
1,946
1,830
1,759
1,690
1,585
1,547
1,498
1,455
1,450
1,421
1,331
1,257
1,225
1,217
1,209
1,164
1,131
1,054
946

4,306

Fair Value(Foreign Currencies
in Thousands)(Continued)

NoteVTAF II

TSMC Global

Held Company Name--

Publicly traded stocks
Sentelic Corporation-

Non-publicly traded equity investments
Primavera Capital Fund II L.P.

5V Technologies, Inc.

-JPMCC Commercial Mortgage Securities Trust 2016 - JP3
UBS Barclays Commercial Mortgage Trust 2013-C6
BX Trust 2021-BXMF
280 Park Avenue Trust 2017 - 280P
Elp Commercial Mortgage Trust 2021-Elp
COMM Mortgage Trust Series 2015-LC19
UBS Commercial Mortgage Trust 2018-C10
Equs 2021-Eqaz Mortgage Trust
Benchmark 2019-B14 Mortgage Trust
Bx 2021-21M Mortgage Trust
Gs Mortgage Securities Corporation Trust 2020-Uptn
Wells Fargo Commercial Mortgage Trust 2015-C28
Bx Commercial Mortgage Trust 2021-CIP
Commerce 2014-Ccre17 Mortgage TrustMorgan Stanley Capital I Trust 2019-H6
GS Mortgage Securities Trust 2014-GC22
Citigroup Commercial Mortgage Trust 2018-C5
Wells Fargo Commercial Mortgage Trust 2015-LC20
GS Mortgage Securities Trust 2014-GC24
Bank 2019-BNK23
Wells Fargo Commercial Mortgage Trust 2015-NXS3WFRBSCommercial Mortgage Trust 2013-C17
Morgan Stanley Capital I Trust 2019-H7
CF 2019-CF1 Mortgage Trust
Benchmark 2019-B9 Mortgage Trust
JPMBB Commercial Mortgage Securities Trust 2014-C19
Citigroup Commercial Mortgage Trust 2014-GC23
COMM 2015-CCRE22 Mortgage Trust
JPMCC 2015 - JP1
JPMDB Commercial Mortgage Securities Trust 2019-COR6
Citigroup Commercial Mortgage Trust 2015-GC35
GS Mortgage Securities Trust 2014-GC26
Citigroup Commercial Mortgage Trust 2014-GC19
Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C12
BBCMS Mortgage Trust 2020-C7
Bank 2020-BNK28
Wells Fargo Commercial Mortgage Trust 2015-NXS1

Non-publicly traded equity investments
Aether Systems, Inc.

-

Relationship with the Company

Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C13

Marketable Securities Type and Name

- -91
91 --

Financial assets at fair value through othercomprehensive income

Financial assets at fair value through othercomprehensive income〃

Financial assets at fair value through othercomprehensive income

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account

971

1

1,085

-

-

-

Shares/Units(In Thousands)

US$

US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

1,422

-

-

81,039

838
836
815
810
768
763
750
577
576
573
539
532
531
518
516
505
482
478
470
392
373
365
349
336
328
315
308
301
269
237
203
170
137
117
69
25
3

874

3

-

20

4

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$

US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

1,422

-

-

81,039

838
836
815
810
768
763
750
577
576
573
539
532
531
518
516
505
482
478
470
392
373
365
349
336
328
315
308
301
269
237
203
170
137
117
69
25
3

874

Fair Value(Foreign Currencies
in Thousands)(Continued)

NoteEmerging Fund

Growth Fund

VTAF III

Held Company Name--

Non-publicly traded equity investments
Astera Labs, Inc.

Empower Semiconductor, Inc.
Kinara, Inc.
NeuReality Ltd.
RiVos, Inc.

Publicly traded stocks
Credo Technology Group Holding Ltd.

-

Publicly traded stocks
Marvell Technology Group Ltd.

--CNEX Labs, Inc.

Convertible bonds
EdgeQ Inc.

--

Non-publicly traded equity investments
Astera Labs, Inc.

-

Neoconix, Inc.

Relationship with the Company

Non-publicly traded equity investments
LiquidLeds Lighting Corp.

Marketable Securities Type and Name

- -92
92 --

Financial assets at fair value through othercomprehensive income

Financial assets at fair value through othercomprehensive income〃〃〃〃

Financial assets at fair value through profit or
loss

Financial assets at fair value through othercomprehensive income

Financial assets at fair value through othercomprehensive income〃

Financial assets at fair value through othercomprehensive income〃

Financial Statement Account

491

868
2,015
122
750

1,487

-

30

33

637

4,147

1,952

Shares/Units(In Thousands)

US$

US$
US$
US$
US$

US$

US$

US$

US$

US$

US$

US$

6,529

5,000
3,000
3,000
2,000

9,680

4,000

1,097

166

4,146

174

800

-

3
2
3
-

-

N/A

-

-

-

-

14

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$

US$
US$
US$
US$

US$

US$

US$

US$

US$

US$

US$

6,529

5,000
3,000
3,000
2,000

9,680

4,000

1,097

166

4,146

174

800

Fair Value(Foreign Currencies
in Thousands)(Concluded)

Note

TSMC Global

TSMC

Company Name-〃

Investments accounted forusing equity method

-

-

-

-

-

-

-

-

-

-

Nature ofRelationship

-

-

-

-

-

〃

Investments accounted forusing equity method
〃
〃

-

-

Counterparty

Financial assets at amortized
cost
〃
〃
〃

Financial Statement
Account

Financial assets at fair value
through othercomprehensive income
Bank of America Corporation〃
Citigroup Inc.
〃
Wells Fargo & Company〃
The Goldman Sachs Group, Inc.
〃
JPMorgan Chase & Co.
〃
Banco Santander, S.A.
〃
Metropolitan Life Global Funding〃I
The Toronto-Dominion Bank〃
Bank of Montreal〃
The Bank of New York Mellon〃
Corporation
Lloyds Banking Group plc〃
S&P Global Inc.
〃
The Goldman Sachs Group, Inc. Financial assets at amortizedcost

Corporate bondMorgan Stanley

CapitalEmerging FundJASM
TSMC 3DIC

Non-publicly traded equity
investments
TSMC Arizona

CPC Corporation, Taiwan
Nan Ya Plastics Corporation
Formosa Petrochemical
Corporation
Formosa Chemicals & Fibre
Corporation
Formosa Plastics Corporation

Commercial paper
Taiwan Power Company

Marketable Securities
Type and Name

-

-

-

-

-

58
11

770

-

-

-

-

Shares/Units(In Thousands)

-

-

-

-

21,67551,347

14,7866,295
6,072

75,26549,29838,43953,75645,332
18,461
17,341

- -93
93 --

US$
US$
US$

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

65,115286,205

1,383,554
270,513

16,667,696

US$$Amount(Foreign
Currencies inThousands)

Beginning Balance

-

-

-

-

-

962
38

500

200

250

3,009
450
300

5,610

Shares/Units(In Thousands)

15,598
14,842
11,29020,231
21,41624,45615,99812,125
10,094
10,75827,545US$2,210
US$ 14,096
US$ 561,607

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

US$

1,033,339

23,150,164
865,370

15,372,500

1,992,183

2,487,819

29,969,655
4,480,179
2,987,971$ 55,830,298

Amount(Foreign
Currencies inThousands)

Acquisition

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITALFOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

-

-

-

-

-

-

-

-

-

2,259
-

2,660

Shares/Units(In Thousands)

9,344
5,076
6,177

13,6805,787
14,852
3,842
410
3,000

4,750

US$ 12,370
US$
2,893
US$ 171,000

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

US$

-

-

-

-

-

22,590,000-$ 26,600,000

9,685
4,999
6,165

13,631
5,779
14,906
3,869
420
3,000

4,678

US$ 12,339
US$
2,934
US$ 171,000

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

US$

62,532----

22,590,000-$ 26,600,000

Carrying Value(Foreign
Currencies inThousands)

DisposalAmount(Foreign
Currencies inThousands)

US$
US$
US$

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

US$

$

31
(41)
-

(341)
77
12

49
8
(54)
(27)
(10)
-

72

-

-

-

-

-

-

-

Gain/Loss on
Disposal(Foreign
Currencies inThousands)

-

-

-

-

-

1,020
49

1,270

200

250

750
450
300

2,950

Shares/Units(In Thousands)

19,51015,224
11,282

76,626
61,49359,73551,43950,62926,257
24,40883,242(Continued)

US$ 10,533
US$ 10,246
US$ 440,655

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

US$

1,760,885

23,330,125
1,172,706

25,639,079

1,990,459

2,485,666

7,458,936
4,476,301
2,985,385$ 29,335,729

Amount(Foreign
Currencies inThousands)Ending Balance (Note)

TABLE 4

Note:-〃〃〃〃

Non-publicly traded equity
investments
Solanium Labs, Ltd.

Financial assets at fair value
through othercomprehensive income

Agency bonds/Agency
mortgage-backed securities
FEDERAL NATIONAL
Financial assets at fair value
MORTGAGE ASSOCIATION
through othercomprehensive income
Federal Home Loan Mortgage〃
Corporation
Government National Mortgage〃
Association
-

-

-

-

-

-

-

-

-

-

-

-

Nature ofRelationship

-

-

-

-

Counterparty

Financial assets at amortized
cost
〃
〃
〃
〃
〃

Government bondUnited States Department of The Financial assets at fair value
Treasury
through othercomprehensive income

Bank of America Corporation
JPMorgan Chase & Co.
Wells Fargo & Company
Citigroup Inc.
Citigroup Global Markets
Holdings Inc.
Goldman Sachs Finance Corp
International Ltd.
Morgan Stanley
Jpmorgan LLC
Banco Bilbao Vizcaya Argentaria,
S.A.

Citigroup Global Markets Inc.

Financial Statement
Account

-

-

-

-

-

-

-

-

-

Shares/Units(In Thousands)--

10,05430,399-99,968US$-

US$ 285,581

US$ 253,075

US$ 460,205

US$ 768,483

US$
US$
US$

US$

US$
US$
US$
US$
US$

US$

Amount(Foreign
Currencies inThousands)

Beginning Balance

1,429

- -94
94 --

-

-

-

-

-

-

-

-

Shares/Units(In Thousands)

448,254
268,126
243,897
188,138
150,000

93,07860,25550,00010,418

US$

US$

5,000

75,508

US$ 146,242

US$ 251,791

US$

US$
US$
US$

US$ 150,000

US$
US$
US$
US$
US$

US$ 350,000

Amount(Foreign
Currencies inThousands)

Acquisition

The ending balance includes the realized gain/loss on equity investment, the amortization of premium/discount on bonds investments and other related adjustment.

Emerging Fund

TSMC Global

Company Name

Marketable Securities
Type and Name

1,429

-

-

-

-

-

-

-

-

Shares/Units(In Thousands)--

74,099US$

11,370

US$ 158,836

US$

US$ 170,673

US$ 193,697

US$
US$
US$

US$

US$ 124,000
US$US$
US$ 14,000
US$-

US$ 100,000--

75,623US$

5,000

US$ 162,184

US$

US$ 174,005

US$ 195,409

US$
US$
US$

US$

US$ 123,818
US$US$
US$ 14,000
US$-

US$ 100,000

Carrying Value(Foreign
Currencies inThousands)

DisposalAmount(Foreign
Currencies inThousands)

US$

US$

US$

US$

US$

US$
US$
US$

US$

US$
US$
US$
US$
US$

US$

6,370

(3,348)(1,524)(3,332)(1,712)

-

-

182
-

-

Gain/Loss on
Disposal(Foreign
Currencies inThousands)

-

-

-

-

-

-

-

-

-

Shares/Units(In Thousands)

324,757
280,213274,713
174,540
149,951

60,20749,984
10,534-(Concluded)US$

US$ 175,067

US$ 284,933

US$ 464,686

US$ 613,603

US$
US$
US$

US$ 149,870

US$
US$
US$
US$
US$

US$ 349,886

Amount(Foreign
Currencies inThousands)Ending Balance (Note)February 15, 2022
(Note)

TSMC

Real estateTransaction Date

Company Types ofName
Property$ 213,300,000(Note)

Transaction
Amount(Foreign
Currencies inThousands)
Based on the terms in
the purchase order

Payment Term

-

- -95
95 --

Chen Yuan International Co.,Ltd.
Chenfull International Co.,Ltd.
Cheng Deh Fire Protection
Industrial Corp.
Chien Kuo Construction Co.,
Ltd.
China Steel Structure Co.,Ltd.
Chun Yuan Steel Industry
Co., Ltd.

Capital Machinery Limited

Atlas Technology Corp.

Am-Power MachineInternational EnterpriseCo., Ltd.
Atlas Copco Taiwan Ltd.

Air Water Plant Engineering
Co., Ltd.
Allis Electric Co., Ltd.

Air Liquide Far Eastern Ltd.

Air Liquid Japan G.K.

Addtron Technology (Japan),Inc.
Aegis Technology Co.

Accudevice Co., Ltd.

ABB Ltd.

122 counterparties (Note),
including:Counterparty

Nature ofRelationships

N/A

Owner

N/A

Relationships

N/A

Transfer Date

N/A

AmountPrior Transaction of Related Counterparty

ACQUISITION OF INDIVIDUAL REAL ESTATE PROPERTIES AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITALFOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

Pricecomparisonand pricenegotiation

Price
Reference

Manufacturing
purpose

Purpose of
Acquisition(Continued)

None

Other
Terms

TABLE 5

TSMC

Real estate

Company Types ofName
Property

Transaction Date

Transaction
Amount(Foreign
Currencies inThousands)
Payment Term

JG Environmental
Technology Co., Ltd.
Jienshian Information
Engineering Co., Ltd.
JJmr-Clean-Air Solution
Tech.Services Co., Ltd.

- -96
96 --

Hueng Luei Process Industry
Co., Ltd.
Ingersoll-Rand Southeast
Asia (Pte) Ltd. Taiwan
Branch (Singapore)
J.C. Yang Architect andAssociates
Japan Material Co., Ltd.

Hsieh Kun Co., Ltd.

Fuji Furukawa E&C Co.,
Ltd.
Green Partners Industry Co.,Ltd.
Hantech Engineering Co.,Ltd.
Hitachi Energy Ltd.

Fu Tsu Construction Co.,Ltd.
Fuji Electric Co., Ltd.

Fortune Electric Co., Ltd.

Exyte Taiwan Co., Ltd.

Evergreen Steel Corporation

Chung-Lin General
Contractors, Ltd.
Chunghwa Telecom Japan
Co., Ltd.
Cica-Huntek Chemical
Technology Taiwan Co.,Ltd.
Confederate Technology Co.,Ltd.
Da-Cin Construction Co.,Ltd.
Desiccant Technology
Corporation
Eaton Electric JapanCounterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition(Continued)

Other
Terms

TSMC

Real estate

Company Types ofName
Property

Transaction Date

Transaction
Amount(Foreign
Currencies inThousands)
Payment Term

Ovivo Taiwan Co., Ltd.

- -97
97 --

Organo Technology Co., Ltd.

Organo Corporation

NEC Facilities, Ltd.

Marketech International
Corp.
Mega Union Technology
Incorporated
Mitsubishi Heavy Industries
Air-Conditioning &Refrigeration Corporation
Mitsubishi Heavy Industries,Ltd.
NAGASE & CO. LTD.

Lead-Fu Industrials
Corporation
Lee Ming Construction Co.,Ltd.
Lumax International Corp.,
Ltd.
Mandartech Interiors Inc.

L&K Engineering Co., Ltd.

Kurita Water Industries Ltd.,
TaiwanKyudenko Corporation

Kuken Kogyo Co., Ltd.

Kinetics Technology
Corporation
Koei International Corp.

Kanto Chemical Engineering
Co., Ltd.
Kao Hsin Engineering Co.,Ltd.
Kedge Construction Co., Ltd.

Kajima Corporation

Johnson Controls York
Taiwan Co, Ltd.
Jusun Instruments Co., Ltd.

Counterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition(Continued)

Other
Terms

TSMC

Real estate

Company Types ofName
Property

Transaction Date

Transaction
Amount(Foreign
Currencies inThousands)
Payment Term

Trane Taiwan Distribution
LimitedToshiba Mitsubishi-ElectricIndustrial Systems
Corporation
Toyoko Kagaku Co., Ltd.

Taiyo Nippon Sanso
Corporation
TASA Construction
Corporation
Techgo Industrial Co., Ltd.

- -98
98 --

Taiwan Gleno Enterprise Co.,Ltd.
Taiwan Obayashi
Corporation
Taiwan Puritic Corp.

Taisei Corporation

Taikisha Ltd.

Swift Engineering Co., Ltd.

Solomon Technology
Corporation
Sumitomo Corporation

SN Tech Corporation

Siemens Limited

Shihlin Electric &Engineering Corporation
Shimizu Corporation

Schneider Electric Taiwan
Co., Ltd.
Seibu Giken Co., Ltd.

San Fu Chemical Co., Ltd.

Pan Asia (Engineers &Constructors) Corporation
Quicken System Integration
Co., Ltd.
Ruentex Engineering &Construction Co., Ltd.
SACHEM Inc.

Counterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition(Continued)

Other
Terms

TSMC

May 10, 2022
(Note)

November 8, 2022
(Note)

Real estateTransaction Date

Real estate

Real estate

Company Types ofName
Property

US$ 1,119,000(Note)

US$ 2,147,000(Note)

Transaction
Amount(Foreign
Currencies inThousands)

Based on the terms in
the purchase order

Based on the terms in
the purchase order

Payment Term

Am-Power MachineInternational EnterpriseCo., Ltd.
Atlas Copco Taiwan Ltd.

Allis Electric Co., Ltd.

Air Liquide Far Eastern Ltd.

Accudevice Co., Ltd.

ABB Ltd.

115 counterparties (Note),
including:Southern Taiwan Science
Park Bureau, Ministry of
Science and Technology

19 counterparties (Note),
including:Zhao-Cheng Corp.

Weltall Technology
Corporation
Wholetech System Hitech
Limited
Yangtech Engineering Co.,Ltd.
Yankey Engineering Co.,Ltd.
Ying Pao Technology Inc.

United Integrated Services
Co., Ltd.
Versum Materials Taiwan
Co., Ltd.
Vertiv

-

-

- -99
99 --

Tung Kang Steel Structure
Corp.
Uangyih-Tech Industrial Co.,Ltd.
Unelectra International Corp.

Trusval Technology Co., Ltd.

Counterparty

Nature ofRelationships

N/A

N/A

Owner

N/A

N/A

Relationships

N/A

N/A

Transfer Date

N/A

N/A

AmountPrior Transaction of Related Counterparty

Pricecomparisonand pricenegotiationPricecomparisonand pricenegotiation

Price
Reference

Manufacturing
purposeManufacturing
purpose

Purpose of
Acquisition(Continued)

None

None

Other
Terms

TSMC

Real estate

Company Types ofName
Property

Transaction Date

Transaction
Amount(Foreign
Currencies inThousands)
Payment Term

- 100
- 100 --

Hsinchu Science Park
Bureau, Ministry of
Science and Technology
Hueng Luei Process Industry
Co., Ltd.

Fu Tsu Construction Co.,Ltd.
Hantech Engineering Co.,
Ltd.
Hsieh Kun Co., Ltd.

Fortune Electric Co., Ltd.

Exyte Taiwan Co., Ltd.

Central Taiwan Science Park
Bureau, Ministry of
Science and Technology
Century Iron and Steel
Industrial Co., Ltd.
Chen Yuan International Co.,Ltd.
Chenfull International Co.,Ltd.
Cheng Deh Fire Protection
Industrial Corp.
Chien Kuo Construction Co.,
Ltd.
China Steel Structure Co.,Ltd.
Chun Yuan Steel Industry
Co., Ltd.
Chung-Lin General
Contractors, Ltd.
Cica-Huntek Chemical
Technology Taiwan Co.,Ltd.
Confederate Technology Co.,Ltd.
Da-Cin Construction Co.,Ltd.
Desiccant Technology
Corporation
Evergreen Steel Corporation

Capital Machinery Limited

Atlas Technology Corp.

Counterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition(Continued)

Other
Terms

TSMC

Real estate

Company Types ofName
Property

Transaction Date

Transaction
Amount(Foreign
Currencies inThousands)
Payment Term

Schneider Electric Taiwan
Co., Ltd.
Shihlin Electric &Engineering Corporation- 101- 101 --Pan Asia (Engineers &Constructors) Corporation
Ruentex Engineering &Construction Co., Ltd.
San Fu Chemical Co., Ltd.

Ovivo Taiwan Co., Ltd.

Marketech International
Corp.
Mega Union Technology
Incorporated
Organo Technology Co., Ltd.

Mandartech Interiors Inc.

Lead-Fu Industrials
Corporation
Lee Ming Construction Co.,Ltd.
Li Jin Engineering Co., Ltd.

Kinetics Technology
Corporation
L&K Engineering Co., Ltd.

Kedge Construction Co., Ltd.

Jusun Instruments Co., Ltd.

Immense Team Construction& Building Co., Ltd.
Ingersoll-Rand Southeast
Asia (Pte) Ltd. Taiwan
Branch (Singapore)
J.C. Yang Architect andAssociates
Jaie Haour Industry
Corporation
JG Environmental
Technology Co., Ltd.
JJmr-Clean-Air Solution
Tech.Services Co., Ltd.
Ju Yao Construction Co., Ltd.

Counterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition(Continued)

Other
Terms

Real estateTransaction Date

Payment Term

Zhao-Cheng Corp.

United Integrated Services
Co., Ltd.
Versum Materials Taiwan
Co., Ltd.
Weltall Technology
Corporation
Wholetech System Hitech
Limited
Yangtech Engineering Co.,Ltd.
Yankey Engineering Co.,Ltd.
Ying Pao Technology Inc.

Tung Kang Steel Structure
Corp.
Uangyih-Tech Industrial Co.,Ltd.
Unelectra International Corp.

Trusval Technology Co., Ltd.

TASA Construction
Corporation
Techgo Industrial Co., Ltd.

Taiwan Gleno Enterprise Co.,Ltd.
Taiwan Obayashi
Corporation
Taiwan Puritic Corp.

Solomon Technology
Corporation
Southern Taiwan Science
Park Bureau, Ministry of
Science and Technology
Swift Engineering Co., Ltd.

Siemens Limited

Counterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition

Other
Terms

- 102
- 102 --

Note: The disclosures are expected information based on the capital appropriation approved by the Board of Directors (Right-of-use assets are included). The actual information shall be subject to the final purchase order of
TSMC.
(Concluded)

TSMC

Company Types ofName
Property

Transaction
Amount(Foreign
Currencies inThousands)

Indirect subsidiary

Associate

Associate

WaferTech

SSMC

VIS

Note:

Associate of TSMC

Sales

Sales

Purchases

Purchases

Purchases

Purchases

Purchases

Sales

Sales

Sales

(US$

$

9

-

1

3

6

17

26

1

-

68

% to
Total

- 103
- 103 --

787,7023,204,489
106,695)

1,849,937

4,572,894

10,336,735

28,400,454

43,186,122

11,346,289

155,024

1,538,849,403

AmountPurchases/(Foreign Currencies
Sales
in Thousands)

The tenor is determined by the payment terms granted to its clients by TSMC North America.

XintecSubsidiary

TSMC China

VisEra Tech

Subsidiary

TSMC Nanjing

Associate of TSMC

Associate

GUC

GUC

Subsidiary

TSMC Nanjing

Nature of Relationships

Subsidiary

Related Party

TSMC North America

TSMC North America

TSMC

Company Name
Payment Terms

Net 60 days from the end of themonth of when invoice isissuedNet 30 days from invoice date

Net 30 days from invoice date
(Note)Net 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedTransaction Details

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITALFOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(Note)(US$$

112,607

171,049
5,569)(190,587)(385,979)(855,952)(2,296,083)(4,105,919)

1,300,302-

171,738,863

15

-

-

1

1

4

7

1

-

80

Notes/Accounts Payable or
Receivable
Ending Balance% toUnit Price Payment Terms (Foreign Currencies
Total
in Thousands)
Abnormal Transaction

Note

TABLE 6

Parent company
The same parent company

TSMC

TSMC

TSMC Nanjing

TSMC JDCTSMC China

The ultimate parent of theCompany
Parent company

TSMC

TSMC

TSMC Development

TSMC Technology

WaferTech

108,835
466,905)

(US$

(US$

(US$

(RMB

Note 229

Note 2

53

29

Note 2

26

Note 222

37
27

Turnover Days
(Note 1)- 104
- 104 --

Note 2: The ending balance is primarily consisted of other receivables, which is not applicable for the calculation of turnover days.

192,719
6,275)

855,952
27,869)744,620
24,244)112,607

4,105,919
929,191)

2,296,083(RMB 519,682)
45,353,940(RMB10,265,253)(JPY

171,078
5,570)

177,923,661
1,300,302(US$$

Ending Balance(Foreign Currencies
in Thousands)

Note 1: The calculation of turnover days excludes other receivables from related parties.

The ultimate parent of theCompany

Associate of TSMC

XintecVisEra Tech

Parent company

TSMC

TSMC Nanjing

Parent company

Associate of TSMC

GUC

TSMC North
America

Subsidiary
Associate

Nature of Relationships

TSMC North America
GUC

Related Party

TSMC

Company Name$

AmountRECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
December 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Action Taken

Overdue

$

-

-

-

-

-

-

-

-

-

-

Amounts Received
in Subsequent
Period$Allowance for
Bad Debts

-

-

-

-

-

-

-

-

-

-

TABLE 7

TSMC China

1

1
1
1
1

1

1

1

TSMC JDCTSMC 3DIC
TSMC Europe
TSMC China

TSMC Nanjing

TSMC Technology

WaferTech

Interest income
Other receivables from related parties

Purchases
Payables to related parties

Research and development expenses
Payables to related parties

Purchases
Proceeds from disposal of property, plant and equipment
Gains from disposal of property, plant and equipment
Payables to related parties

Purchases
Marketing expenses-commission
Payables to related parties

Marketing expenses-commission

Research and development expenses

Research and development expenses

Other noncurrent assets

Net revenue from sale of goods
Receivables from related parties
Other receivables from related parties
Accrued expenses and other current liabilities
Other noncurrent liabilities

Financial Statements Item

436,90245,353,940

10,336,735
855,952

3,653,480
744,620

43,186,122
673,945
302,234
4,105,919

28,400,454
329,166
2,296,083

541,200

787,114505,454

6,925,782$ 1,538,849,403
171,738,863
6,184,798
98,595,725
142,132,113

AmountIntercompany Transactions

-

-

-

-

-

-

-

-

-

-

Terms
(Note 2)

1%

-

-

2%
-

1%
-

-

-

-

-

68%
3%
2%
3%

Percentage ofConsolidated Net Revenueor Total Assets- 105- 105 --

Note 2: The sales prices and payment terms of intercompany sales are not significantly different from those to third parties. For other intercompany transactions, prices and terms are determined in accordance with mutual agreements.

No. 3 represents the transactions between subsidiaries.

3

1

JASM

TSMC Nanjing

1Nature ofRelationship(Note 1)

TSMC North America

Counterparty

Note 1: No. 1 represents the transactions from parent company to subsidiary.

TSMC

Company Name

0No.

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONSFOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

TABLE 8VTAF IIITSMC Partners

TSMC

Investor Company

San Jose, California, U.S.A
Taoyuan, Taiwan
Cayman Islands
Hsin-Chu, Taiwan
Yokohama, Japan
Amsterdam, the Netherlands
Yokohama, Japan
Cayman Islands
Yokohama, Japan
Cayman Islands
Seoul, Korea

TSMC North America

XintecEmerging Fund
GUC

TSMC 3DIC
TSMC Europe
TSMC JDC
VTAF IIITSMC Japan
VTAF II
TSMC Korea

Cayman Islands
New Taipei, Taiwan

Growth Fund

Mutual-Pak

Ontario, Canada

Singapore

SSMC

TSMC Canada

Hsin-Chu, Taiwan

VisEra Tech

Delaware, U.S.A

Hsin-Chu, Taiwan

VIS

TSMC Technology

Kumamoto, JapanJASM

Delaware, U.S.A

Phoenix, Arizona, U.S.A.

TSMC Arizona

TSMC Development

Tortola, British Virgin Islands
Tortola, British Virgin Islands

Location

TSMC Global
TSMC Partners

Investee Company- 106- 106 --

Manufacturing of electronic parts, wholesaling
and retailing of electronic materials, andresearching, developing and testing of RFID

Investing in technology start-up companies

Engineering support activities

Investing in companies involved insemiconductor manufacturing
Engineering support activities

278,986
15,749410,680
1,321,594
83,760260,300
13,656298,618
386,568

1,988,317

333,718

5,120,028

4,224,082

10,180,677

1,416,921

21,643,300$ 355,162,309
31,456,130

December 31,
2021(Foreign
Currencies inThousands)

(US$

(US$

67,4292,195) (US$48,937
1,593) (US$79,9702,604)
48,937
1,593)

18,026,652
18,026,652(US$ 586,939) (US$ 586,939)
438,644438,644(US$ 14,282) (US$ 14,282)
70,64070,640(US$2,300) (US$2,300)

Investment activities$ 355,162,309
Investing in companies involved in the
31,456,130
semiconductor design and manufacturing, andother investment activities
Manufacturing, sales and testing of integrated
37,015,800
circuits and other semiconductor devices
Manufacturing, sales, testing and computer-aided
24,567,085
design of integrated circuits and othersemiconductor devices
Manufacturing, sales, packaging, testing and
10,180,677
computer-aided design of integrated circuits
and other semiconductor devices and the
manufacturing and design service of masks
Research, design, development, manufacturing,
4,224,082
sales, packaging and test of color filter
Manufacturing and sales of integrated circuits and5,120,028
other semiconductor devices
Sales and marketing of integrated circuits and333,718
other semiconductor devices
Wafer level chip size packaging and wafer level
1,988,317
post passivation interconnection service
Investing in technology start-up companies
1,269,425
Researching, developing, manufacturing, testing
386,568
and marketing of integrated circuits
Engineering support activities
1,144,356
Customer service and supporting activities
15,749Engineering support activities
410,680
Investing in technology start-up companies
1,239,621
Customer service and supporting activities
83,760Investing in technology start-up companies
260,300
Customer service and supporting activities
13,656Main Businesses and Products

December 31,
2022(Foreign
Currencies inThousands)

Original Investment Amount

4,693

-

2,300

-

-

49
15
6
80

46,688111,282

11,000314

213,619464,223

1,020

1,270

11
988,268

Shares (InThousands)

28

100

100

100

100

100
100
100
98
100
98
100

99.9
35

41

100

39

68

28

71

100

100
100

$

27,950(4,926)
20,303(6,700)
6,559
319
1,408

(6,917)3,710,442

1,983,736

62,213

3,540,176

1,765,796

15,280,388(593,429)(9,430,070)

7,308,722
3,135,764

166,549(609)
5,423) (US$(21))
19,053(13,738)(US$620) (US$(464))(US$

36,609,536
2,620,596(US$1,191,988) (US$ 87,795)
993,700
66,998(US$ 32,354) (US$2,150)
321,059
31,997(US$ 10,454) (US$1,071)

1,172,706
527,693
376,176
246,702134,560
71,42944,082

1,760,885
1,666,651

3,528,417

5,449,755

8,934,731

11,467,860

13,492,653

23,330,125

25,639,079$ 411,992,426
63,697,217$

Note 2 Associate

Note 2 Subsidiary

Note 2 Subsidiary

Note 2 Subsidiary

Note 2 Subsidiary

27,950 Subsidiary(4,926) Subsidiary
20,303 Subsidiary(6,566) Subsidiary
6,559 Subsidiary
313 Subsidiary
1,408 Subsidiary(6,910) Subsidiary
1,292,705 Associate

813,516 Associate

62,213 Subsidiary

1,373,234 Associate

1,253,986 Subsidiary

4,322,799 Associate(452,020) Subsidiary(9,430,070) Subsidiary(Continued)

Note7,308,722 Subsidiary
3,135,764 Subsidiary

Share ofNet Income
Profits/Losses(Losses) of theof Investee
Carrying Value
Investee(Note 1)
Percentage of(Foreign(Foreign(Foreign
Ownership
Currencies in
Currencies in
Currencies inThousands)
Thousands)
Thousands)

Balance as of December 31, 2022

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN MAINLAND CHINA)FOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

TABLE 9$

- 107
- 107 --The share of profits/losses of the investee company is not reflected herein as such amount is already included in the share of profits/losses of the investor company.

Manufacturing, sales and testing of integrated
circuits and other semiconductor devices

Main Businesses and Products

Note 2:

Washington, U.S.A

Location

The share of profits/losses of investee includes the effect of unrealized gross profit on intercompany transactions.

WaferTech

Investee Company

Note 1:

TSMC Development

Investor Company

-

$

-

December 31,
2021(Foreign
Currencies inThousands)

Original Investment Amount
December 31,
2022(Foreign
Currencies inThousands)
293,637

Shares (InThousands)

100$ 6,251,109 $ 2,299,054(US$ 203,533) (US$ 77,303)

Note(Concluded)Note 2 Subsidiary

Share ofNet Income
Profits/Losses(Losses) of theof Investee
Carrying Value
Investee(Note 1)
Percentage of(Foreign(Foreign(Foreign
Ownership
Currencies in
Currencies in
Currencies inThousands)
Thousands)
Thousands)

Balance as of December 31, 2022

Note 1
(US$

$

-

-

$ 1,776,293,320(Note 3)Note 1: TSMC directly invested US$596,000 thousand in TSMC China and US$ 1,000,000 thousand in TSMC Nanjing.

-

30,521,412(US$ 1,000,000)- $ 18,939,667(US$ 596,000)- 108- 108 --$

20,486,591

12,411,290

Accumulated
Outflow of
Net Income
Investment from
(Losses) of the
Taiwan as ofInvestee
December 31,
Company2022 (US$ in
Thousands)

Note 3: The upper limit on investment in mainland China is determined by sixty percent (60%) of the Company’s consolidated net worth.

Note 2: Amount was recognized based on the audited financial statements.

$

Upper Limit on Investment

30,521,412
1,000,000)$
18,939,667(US$
596,000)$ 119,412,667(US$ 3,596,000)

30,521,412
6,650,119)

Note 1$ 49,461,079(US$ 1,596,000)(RMB$
18,939,667(RMB 4,502,080)

Investment Amounts Authorized by
Investment Commission, MOEA
(US$ in Thousands)

Manufacturing, sales,
testing andcomputer-aided
design of integrated
circuits and othersemiconductor
devices
Manufacturing, sales,
testing andcomputer-aided
design of integrated
circuits and othersemiconductor
devicesAccumulated Investment in Mainland China
as of S December 31, 2022
(US$ in Thousands)

TSMC Nanjing

TSMC China

Investment Flows
Accumulated
Outflow of
Total Amount ofMain Businesses andMethod ofInvestment from
Outflow
Investee Company
Paid-in Capital
Products
Investment
Taiwan as of(US$ in
Inflow(RMB in Thousands)
January 1, 2022 Thousands)(US$ in Thousands)

INFORMATION ON INVESTMENT IN MAINLAND CHINA
FOR YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

100%

100%

Percentage ofOwnership$

20,473,263(Note 2)

12,223,165(Note 2)

Share of
Profits/Losses$

67,385,300

87,028,722

Carrying
Amountas ofBalance as ofDecember 31,
2022

$

-

-

Accumulated
InwardRemittance ofEarnings as ofDecember 31,
2022

TABLE 10

Note: Major shareholders shows the list of all shareholders with ownership of 5 percent or greater.

ADR-Taiwan Semiconductor Manufacturing Company, Ltd.
National Development Fund, Executive Yuan

Shareholders (Note)

INFORMATION ON MAJOR SHAREHOLDERSDECEMBER 31, 2022

Taiwan Semiconductor Manufacturing Company Limited- 109- 109 --

5,319,233,558
1,653,709,980

Total Shares Owned

Shares20.51%
6.38%

Ownership Percentage

TABLE 11

- 110 -Taiwan Semiconductor Manufacturing
Company Limited
Parent Company Only Financial Statements for theYears Ended December 31, 2022 and 2021 andIndependent Auditors’ Report- 111 -

- 112 -- 113 -to be capable of operating in the intended manner. Changes in these assumptions could have a significant impact
on when depreciation is recognized.
Given the subjectivity in determining the date to commence depreciation of EUI/CIP, performing audit proceduresto evaluate the reasonableness of the Company’s judgments and assumptions required a high degree of auditor
judgment. Consequently, the validity of commencement of depreciation related to PP&E classified as EUI/CIP is
identified as a key audit matter.
Our audit procedures related to the evaluation of when to commence depreciation of EUI/CIP included thefollowing, among others:
1. We read the Company’s policy and understood the criteria used to determine when to commence depreciation.
2. We tested the effectiveness of the controls over the evaluation of when to commence depreciation of EUI/CIP.
3. We sampled the year-end balance of EUI/CIP and performed the following for each selection:
a. Evaluated whether the selection did not meet the criteria specified by the Company for commencementof depreciation.
b. Observed the assets and evaluated their status.
4. We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company forcommencement of depreciation during the year.
5. We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company forcommencement of depreciation subsequent to year end.
Responsibilities of Management and Those Charged with Governance for the Parent Company Only
Financial Statements
Management is responsible for the preparation and fair presentation of the parent company only financial
statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities
Issuers, and for such internal control as management determines is necessary to enable the preparation of parent
company only financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the parent company only financial statements, management is responsible for assessing theCompany’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern andusing the going concern basis of accounting unless management either intends to liquidate the Company or tocease operations, or has no realistic alternative but to do so.
Those charged with governance (including members of the Audit Committee) are responsible for overseeing theCompany’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements
Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these parent company only financial statements.

- 114 - 2 -As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions, misrepresentations, or the override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theCompany’s internal control.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, basedon the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in theparent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
5. Evaluate the overall presentation, structure and content of the parent company only financial statements,
including the disclosures, and whether the parent company only financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
6. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or businessactivities within the Company to express an opinion on the parent company only financial statements. We areresponsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the parent company only financial statements for the year ended December 31,
2022 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determinethat a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.

- 115 - 3 -- 116 -Taiwan Semiconductor Manufacturing Company Limited
PARENTONLY BALANCESHEETS
Taiwan Semiconductor
Taiwan COMPANY
Semiconductor
Manufacturing
Manufacturing
Company
LimitedCompany Limited(In Thousands of New Taiwan Dollars)
PARENT COMPANY
PARENTONLYCOMPANYBALANCE ONLYSHEETSBALANCE SHEETS(In Thousands of New(In Thousands
Taiwan Dollars)of New Taiwan Dollars)

December 31, 2022
December 31, 2021
Amount%Amount%December 31, 2022December December
31, 2022 31, 2021December 31, 2021
Amount%Amount Amount%%Amount%

ASSETS
CURRENTASSETS ASSETS
Cash and cash equivalents (Note 6)
Financial ASSETS
assets at fair value through profit or loss (Note 7)
CURRENT ASSETSCURRENT
Financialassetsat amortized
cost6)(Note 8)Cash and cash equivalents
Cash and(Notecash6)equivalents
(Note
Notes
and
accounts
receivable,
net (Note
Financial assets at fair
Financialvaluethroughassetsatprofit
fair
value
or lossthrough(Note
7)
profit10)
or loss (Note 7)
Receivables
from
Financial assets at amortized
Financialcost
assets(Noteatrelated
amortized8) parties
cost(Note(Note31)
8)
Other
from
(Note
Notes and accounts receivable,
Notes receivables
and accounts
net (Notereceivable,
10)related parties
net (Note10)31)
Inventories
5 and 11)
Receivables from related
Receivables
parties(Notes
from(Noterelated31)
parties (Note 31)
OtherfinancialassetsOther receivables from
relatedreceivables
partiesfrom(Noterelated31) parties (Note 31)
current
assets5 and 11)
Inventories (Notes 5Other
Inventories
and 11)(NotesOther financial assets
Other financial assets
Total
current
assetsOther current assets Other
current
assetsASSETS$$NONCURRENT
Total current assets
Total currentASSETS
assetsFinancial assets at fair value through other comprehensive income
Investments accounted
NONCURRENT ASSETSNONCURRENTASSETSfor using equity method (Note 12)
Property,plant
equipment(Notesother5incomeandcomprehensive
13)
Financial assets at fair
Financialvalue throughassetsandatother
fair
value
comprehensive
throughincomeRight-of-use
assets method(Notes5(Noteand equity
14)
Investments accounted
Investments
for using accounted
equityfor using12) method (Note 12)
Intangible
assetsand(Notes5 and 15)
Property, plant and equipment
Property, plant(Notes5 equipment
and 13)(Notes 5 and 13)
Deferredincometax(Notes
assets5(Notes
5 and 24)
Right-of-use assets (Notes
Right-of-use
5 and
14)
assetsand 14)
Refundable
deposits
Intangible assets (Notes
Intangible
5 and 15)
assets(Notes 5 and 15)
assets(Note31) 5 and 24)
Deferred income taxOther
Deferred
assetsnoncurrent(Notesincome
5 and
tax
24)
assets(NotesRefundable depositsRefundable deposits
Total
noncurrent
assetsOther noncurrent assets
Other
(Note
noncurrent
31)
assets(Note 31)

1,118,550,389

LIABILITIESAND EQUITYTOTALLIABILITIES ANDCURRENT
LIABILITIESEQUITY LIABILITIESAND EQUITY
Short-term loans (Notes 16 and 28)
Financial LIABILITIES
liabilities at fair value through profit or loss (Note 7)
CURRENT LIABILITIESCURRENT
Accounts
Short-term loans (Notes
Short-term
16 andpayableloans28) (Notes 16 and 28)
Payablestorelated(Note
31)
Financial liabilities at
Financial
fair value
liabilities
throughparties
atprofit
fair value
or lossthrough(Note 7)
profit or loss (Note 7)
andpayablebonus payable
Accounts payable Salary
Accounts
Accruedprofitbonus
to employees
and compensation to directors (Note 27)
Payables to related parties
Payables(Note
to related31)sharing
parties(Note
31)
Payablescontractors
and equipment suppliers
Salary and bonus payable
Salary andtobonus
payableCashdividends
payablebonus(Note
Accrued profit sharing
Accruedbonus
profitto employees
sharing
andcompensation
to19)
employeestoanddirectors
compensation(Note 27)
to directors (Note 27)
Incometax(Notesand 24) suppliers
Payables to contractors
Payablesand equipment
to payable
contractors
suppliersand 5equipment
Long-term
liabilities- current(Notes 17 and 28)
Cash dividends payable
Cash(Note
dividends
19)
payable(Note portion
19)
expensesother5current
Income tax payable Accrued
Income(Notes 5tax
andpayable24) and(Notesand 24)liabilities (Notes 5, 14, 20, 28 and 31)
Long-term liabilitiesLong-term- current portion
liabilities(Notes- current
17 andportion28) (Notes 17 and 28)
Total
liabilities
Accrued expenses andAccruedother current
expensesand other(Notescurrent
5, 14,
liabilities
20, 28 (Notes
and 31)5, 14, 20, 28 and 31)
NONCURRENT
Total current liabilities
Total currentLIABILITIES
liabilities
Bonds payable (Notes 17 and 28)
Deferred income
tax liabilities (Notes 5 and 24)
NONCURRENT LIABILITIESNONCURRENT
LIABILITIES
Lease
liabilities(Notes17
5, and14 andBonds payable (Notes
Bonds
17 andpayable28) (Notes
28) 28)
definedbenefit18) 5 and 24)
Deferred income taxNet
Deferred
liabilities
income(Notestax
5 liability
andliabilities
24) (Note(NotesGuarantee
deposits
Lease liabilities (Notes
Lease
5, 14
liabilities
and28)(Notes 5, 14 and 28)
Others(Notes20 and31) (Note 18)
Net defined benefit liability
Net defined(Notebenefit18)
liability
Guarantee deposits Guarantee deposits
Total(Notes
noncurrent
liabilities
Others (Notes 20 andOthers
31)
20 and31)
Total liabilities
Total noncurrent liabilities
noncurrent liabilities
TO SHAREHOLDERS OF THE PARENT
Total liabilitiesEQUITY
TotalATTRIBUTABLE
liabilities
Capital stock (Note 19)
CapitalTO
surplus(Note 19) TO SHAREHOLDERSEQUITY ATTRIBUTABLEEQUITYATTRIBUTABLESHAREHOLDERS
OF THE PARENT OF THE PARENT
Retainedearnings
Capital stock (Note 19)
Capital stock(Note(Note19) 19)Appropriatedas legal
Capital surplus (NoteCapital
19)
surplus (Note19)capital reserve
Appropriatedas(Notespecial19)
capital reserve
Retained earnings (Note
Retained19) earnings
UnappropriatedAppropriated as legal
Appropriatedcapital reserve
as earnings
legal capital reserve
Appropriated as special
Appropriatedcapital reserveas special capital reserve
Others(Note 19) earnings
Unappropriated earnings
Unappropriated
Others (Note 19)
Total equity
TOTAL

Total(Noteequity19)
OthersTOTAL
Total equity
TOTAL
The accompanying notes are an integral part of the parent company only financial statements.

The accompanying notes
The accompanying
are an integralnotes
part ofaretheanparent
integralcompany
part of the
onlyparent
financialcompany
statements.
only financial
statements.
- 117
-

$

396,294,241
145,280$ 12396,294,24145,900,297- 145,280
138,352,374
5,227,425
245,900,297
185,159,848
138,352,374
4- 3,861,859
5,227,425
185,159,848
5 8,264,613- 3,861,859
783,205,937- 8,264,613

1,014,741
727,947,169
2,432,675,050
39,051,427
21,456,104
67,708,061
2,095,656
11,920,467

1,118,550,389
25
783,205,937
25
1,014,741
727,947,169
16
2,432,675,050
55- 1,014,741 998,400
39,051,427
1
16
727,947,169
602,642,544
16
1
2,432,675,050
5521,456,104
1,889,970,529
55
2
167,708,061
39,051,42730,123,052
1
2,095,65622,910,400
121,456,104
111,920,46747,780,990
267,708,061
2- 2,095,656 862,893
3,303,868,675
7511,920,467
400

23783,205,937
998,400
602,642,544
1,889,970,529- 998,400
30,123,052
18
602,642,544
1,889,970,529
5622,910,400
147,780,990
30,123,052
862,893
122,910,400
400
147,780,990- 862,893
2,595,289,208
400

3,303,868,675$ 4,422,419,064
100
3,303,868,675
75
2,595,289,208
75$ 3,378,495,145
2,595,289,208
77

1$ 4,422,419,064$ 4,422,419,064
100$ 3,378,495,145
100$ 3,378,495,145
100

1

$

$

TOTAL
Total noncurrent
assetsTotal noncurrent assets
TOTAL

628,875,897
552,255
48,732,476
41,311,836
173,044,812
6,357,925
208,282,895
2,801,253
8,591,040

628,875,897
14
552,255
48,732,476
1$ 14
628,875,897$ 396,294,241
14
41,311,836
1- 552,255 145,280
173,044,812
4148,732,476
16,357,92545,900,297
141,311,836
1208,282,895
5
173,044,812
4
138,352,374
4- 2,801,253
6,357,925 5,227,425
208,282,895
5 8,591,040
185,159,848
5- 2,801,253 3,861,859
1,118,550,389
25- 8,591,040 8,264,613$

17,46848,732,542
10,051,044
31,308,620
61,392,175
200,046,018
142,617,093
120,077,567
18,100,000
266,903,073
899,245,600$

17,46848,732,542
1$ 114,921,333
10,051,044- 17,468 636,472
1
131,308,620
48,732,54241,204,422
61,392,175
110,051,044
7,687,673
200,046,018
5
131,308,62020,814,434
1
142,617,093
3
161,392,17536,088,986
1
120,077,567
3200,046,018
5136,212,285
5
142,617,093
318,100,000
142,617,093
3266,903,073
6
120,077,567
3
58,755,245
3
18,100,000
4,400,000
899,245,600
20
266,903,073
6
141,495,427
6$

114,921,333
636,472
114,921,333
341,204,422- 7,687,673
636,472
120,814,434
41,204,422
36,088,986- 7,687,673
136,212,285
120,814,434
142,617,093
136,088,986
136,212,285
458,755,245
142,617,093
4 4,400,000
141,495,427
258,755,245- 4,400,000
704,833,370
141,495,427
4361,130,474
908,273
27,593,900
9,321,091
885,273
177,681,258

20
899,245,600
704,833,370
20
361,130,474
8
908,2731
361,130,474
827,593,900
307,783,409
8- 9,321,091
908,273 1,848,966
885,27318,742,323
127,593,900
1177,681,258
4- 9,321,09111,036,879- 885,273 680,137
577,520,269
13
177,681,258
4
165,283,508
4

20
704,833,370
307,783,409
1,848,966
307,783,409
918,742,323
11,036,879- 1,848,966
680,137
118,742,323
165,283,508
11,036,879- 680,137
505,375,222
165,283,508
5

577,520,269

1,476,765,869
33
13
577,520,269
505,375,222
13

1,210,208,592
15505,375,222

1,476,765,869

311,146,899
3,154,310
2,323,223,479
2,637,524,688(20,505,626)

1,476,765,869
33
1,210,208,592
33
259,303,805
6
69,330,328
2
259,303,805
6
259,303,805
6
311,146,899
7
269,330,32864,761,602
2
3,154,310
2,323,223,479
53
311,146,899
7
311,146,899
7
2,637,524,688
60- 3,154,31059,304,212(20,505,626)(1)
2,323,223,479
53
1,536,378,550
53
2,637,524,688
60
1,906,829,661
60
2,945,653,195
67(1)(20,505,626)(62,608,515)(1)

1,210,208,592
35
259,303,805
64,761,602
259,303,805
8
311,146,899
264,761,602
59,304,212
1,536,378,550
311,146,899
9
1,906,829,661
259,304,212(62,608,515)
1,536,378,550
46
1,906,829,661
57
2,168,286,553(2)(62,608,515)

2,945,653,195$ 4,422,419,064
100
2,945,653,195
67
2,168,286,553
67$ 3,378,495,145
2,168,286,553
65

1$ 4,422,419,064$ 4,422,419,064
100$ 3,378,495,145
100$ 3,378,495,145
100

1259,303,805
69,330,328

Taiwan Semiconductor Manufacturing Company Limited
PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

NET REVENUE (Notes 5, 20 and 31)

2022
Amount%2021
Amount%$ 2,252,320,561

100$ 1,574,745,881

100

951,927,673

42

786,116,844

50

1,300,392,888

58

788,629,037

50

160,813,633
42,764,642
6,059,649

7
2-

123,417,275
30,967,600
4,282,882

8
2-

209,637,924

9

158,667,757

10(8,275)(1)(328,444)-

1,090,746,689

48

629,632,836

40

42,415,408
5,957,864
887,958
853,022(3,240,406)
3,053,281

2
1-

26,837,174
927,754789,810
14,682,696(2,534,721)(9,833,358)

2
1
(1)

49,927,127

3

30,869,355

2

1,140,673,816

51

660,502,191

42

124,143,567

6

63,962,178

4

1,016,530,249

45

596,540,013

38(823,060)-

242,079-

18,979--170,127(41,416)-(127,903)-

1,697,885-

733,956(198,028)-(85,269)
1,983,406(Continued)

COST OF REVENUE (Notes 5, 11, 27 and 31)
GROSS PROFITOPERATING EXPENSES (Notes 5, 27 and 31)
Research and development
General and administrative
MarketingTotal operating expenses
OTHER OPERATING INCOME AND EXPENSES, NET(Notes 13 and 27)
INCOME FROM OPERATIONSNON-OPERATING INCOME AND EXPENSES
Share of profits of subsidiaries and associates (Note 12)
Interest income (Note 21)
Other income
Foreign exchange gain, net (Note 33)
Finance costs (Note 22)
Other gains and losses, net (Note 23)
Total non-operating income and expenses
INCOME BEFORE INCOME TAX
INCOME TAX EXPENSE (Notes 5 and 24)
NET INCOME
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 5,12, 18, 19 and 24)
Items that will not be reclassified subsequently to profit orloss:
Remeasurement of defined benefit obligation
Unrealized gain on investments in equity instruments atfair value through other comprehensive income
Loss on hedging instruments
Share of other comprehensive gain/(loss) of subsidiaries
and associates
Income tax benefit (expense) related to items that will
not be reclassified subsequently- 118 - 118 -Taiwan Semiconductor Manufacturing Company Limited
PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Items that may be reclassified subsequently to profit orloss:
Exchange differences arising on translation of foreign
operations
Share of other comprehensive loss of subsidiaries andassociates
Income tax benefit (expense) related to items that may
be reclassified subsequently$

2022
Amount%2021
Amount51,030,928

2(8,244,295)(6,182,507)--(3,419,483)

-

6,036
42,792,669

2(3,370)(9,605,360)-

42,594,641

2(7,621,954)-

TOTAL COMPREHENSIVE INCOME$ 1,059,124,890

47$

588,918,059

38

EARNINGS PER SHARE (NT$, Note 25)
Basic earnings per share
Diluted earnings per share

$
$

$
$

23.01
23.01

Other comprehensive income (loss), net of income tax

39.20
39.20

The accompanying notes are an integral part of the parent company only financial statements.

- 119 - 119 -$%(Concluded)

--259,303,805

-

-

-

25,930,380

Net income

Other comprehensive income (loss), net of income tax

Total comprehensive income (loss)

Disposal of investments in equity instruments at fair value
through other comprehensive income

Basis adjustment for gain on hedging instruments

Adjustments to share of changes in equities of associates

From difference between the consideration received and thecarrying amount of the subsidiaries' net assets during actual
disposal

From share of changes in equities of subsidiaries

Donation from shareholders

13,870(13,870 )

1,387(1,387 )Net income

Other comprehensive income (loss), net of income tax

Total comprehensive income (loss)

Share-based payment arrangements$ 259,303,805-

25,930,380

Basis adjustment for loss on hedging instruments

Adjustments to share of changes in equities of associates

From share of changes in equities of subsidiaries

Donation from shareholders

The accompanying notes are an integral part of the parent company only financial statements.

BALANCE, DECEMBER 31, 2022--

Disposal of investments in equity instruments at fair value
through other comprehensive income

Treasury stock retired

Treasury stock acquired--

Appropriations of earnings
Special capital reserve
Cash dividends to shareholders
Total

BALANCE, DECEMBER 31, 2021--

Appropriations of earnings
Special capital reserve
Cash dividends to shareholders
Total$ 259,303,805

25,930,380

BALANCE, JANUARY 1, 2021

Capital Stock - Common Stock
Shares(In Thousands)
AmountPARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY(In Thousands of New Taiwan Dollars)

Taiwan Semiconductor Manufacturing Company Limited$$

69,330,328

13,205

4,115,940

4,541

-

-

(2,989 )-438,029

-

-

-

-

64,761,602

11,172(7,891 )

8,406,282

4,796

-

-

-

-

-

-

56,347,243

Capital Surplus$ 311,146,899

-

-

-

-

-

-

-

-

-

-

-

-

311,146,899

-

-

-

-

-

-

-

-

-

-

$ 311,146,899

Legal Capital
Reserve$$

3,154,310

-

-

-

-

-

-

-

-

-

-

-

(56,149,902 )(56,149,902 )

59,304,212

-

-

-

-

-

-

-

-

-

17,045,066
17,045,066

42,259,146- 120- 120 --

$ 2,323,223,479

-

-

-

-

303,242(854,707 )--

1,016,480,677(49,572 )

1,016,530,249

56,149,902(285,234,185 )(229,084,283 )

1,536,378,550

-

-

-

-

-

187,654596,707,516

167,503596,540,013(17,045,066 )(278,751,590 )(295,796,656 )$ 1,235,280,036

Retained Earnings
Special Capital
UnappropriatedReserve
Earnings$ 2,637,524,688

-

-

-

-

303,242(854,707 )--

1,016,480,677(49,572 )

1,016,530,249(285,234,185 )(285,234,185 )

1,906,829,661

-

-

-

-

-

187,654596,707,516

167,503596,540,013(278,751,590 )(278,751,590 )$ 1,588,686,081

Total

$

$

(11,743,301 )

-

-

-

-

-

-

-

-

51,560,060

51,560,060--(63,303,361 )

-

-

-

-

-

-

(6,301,734 )(6,301,734 )--(57,001,627 )Foreign
Currency
Translation
Reserve$$(10,056,353 )

-

-

-

-

(303,242 )

-

-

-

(10,327,421 )(10,327,421 )--

574,310

-

-

-

-

-

(187,654 )(1,559,790 )(1,559,790 )--

2,321,754

Unrealized
Gain (Loss) on
Financial
Assets at Fair
Value Through
Other
Comprehensive
Income$$1,479,181---(52,929 )

-

-

-

-

1,411,574

1,411,574--

120,536

-

-

-

-

48,469-72,06772,067---

Gain (Loss) on
Hedging
Instruments

Others$$(185,153 )

-

-

-

-

-

-

-

(185,153 )

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Unearned
Stock-Based
Employee
Compensation$$(20,505,626 )

-

-

-

(52,929 )(303,242 )--(185,153 )

42,644,213

42,644,213--(62,608,515 )

-

-

-

-

48,469(187,654 )(7,789,457 )(7,789,457 )--(54,679,873 )

Total

$

$

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

871,566(871,566 )TreasuryStock$ 2,945,653,195

13,205

4,115,940

4,541(52,929 )--(871,566 )

266,746

1,059,124,890

42,594,641

1,016,530,249(285,234,185 )(285,234,185 )

2,168,286,553

11,172(7,891 )

8,406,282

4,796

48,469-588,918,059(7,621,954 )

596,540,013(278,751,590 )(278,751,590 )$ 1,849,657,256

Total
EquityTaiwan Semiconductor Manufacturing Company Limited
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS(In Thousands of New Taiwan Dollars)

2022
CASH FLOWS FROM OPERATING ACTIVITIESIncome before income tax
Adjustments for:
Depreciation expense
Amortization expense
Expected credit losses recognized on investments in debt instruments
Finance costs
Share of profits of subsidiaries and associates
Interest income
Share-based compensation
Loss (gain) on disposal or retirement of property, plant and equipment, net
Loss (gain) on disposal or retirement of intangible assets, net
Impairment loss on property, plant and equipment
Loss (gain) on foreign exchange, net
Dividend income
OthersChanges in operating assets and liabilities:
Financial instruments at fair value through profit or loss
Notes and accounts receivable, net
Receivables from related parties
Other receivables from related parties
Inventories
Other financial assets
Other current assets
Other noncurrent assets
Accounts payable
Payables to related parties
Salary and bonus payable
Accrued profit sharing bonus to employees and compensation to directors
Accrued expenses and other current liabilities
Other noncurrent liabilities
Net defined benefit liability
Cash generated from operations
Income taxes paid
Net cash generated by operating activities
CASH FLOWS FROM INVESTING ACTIVITIESAcquisitions of:Financial assets at amortized cost
Equity interest in subsidiary
Property, plant and equipment
Intangible assets
Proceeds from disposal or redemption of:Financial assets at amortized cost
Property, plant and equipment
Intangible assets
Proceeds from return of capital of investments in equity instruments at fairvalue through other comprehensive income- 121 - 121 -2021$ 1,140,673,816$

660,502,191

413,595,082
8,706,961
10,3413,240,406(42,415,408)(5,957,864)
266,746(436,567)
3,720
790,740
9,965,603(207,028)
131,637

402,931,257
8,100,730
2,534,721(26,837,174)(927,754)
222,387(7,332)
274,388(16,975,706)(178,979)(370,086)(1,025,979)
4,588,461(34,692,438)(1,074,087)(23,123,047)
1,894,328(712,233)(8,532,751)
7,528,120
2,362,846
10,494,186
25,303,189
47,110,082
86,831,552(2,538,848)
1,642,781,566(83,364,086)

2,482,448(11,289,182)(36,571,200)(3,503,728)(54,861,812)(2,371,699)(2,445,945)
4,965,785(746,871)
3,336,396
826,049
82,992,551
154,036,474(635,116)
1,165,482,793(81,550,608)

1,559,417,480

1,083,932,185(97,748,105)(897,574,802)(6,679,871)(157,243)(793,327,208)(8,998,084)

49,190,000
1,665,212
3,750

462,138
-

2,938

6,257
(Continued)

Taiwan Semiconductor Manufacturing Company Limited
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS(In Thousands of New Taiwan Dollars)

2022
Interest received
Other dividends received
Dividends received from investments accounted for using equity method
Increase in prepayments for leases
Refundable deposits paid
Refundable deposits refunded$

Net cash used in investing activities

4,889,786
207,028
3,248,044(1,611,716)
406,1852021$

902,872
178,979
2,560,790(1,200,000)(225,347)
605,714(944,001,551)(799,191,132)(111,959,992)
65,400,000(4,400,000)(69,528)(871,566)(1,848,257)(3,757,985)
216,589(45,643)(285,234,185)(40,421,374)
144,505
13,163(50,538,933)
142,318,000(2,600,000)(146,157)(1,466,130)(1,997,383)
467,964(7,234)(265,786,399)
9,451,798(21,318,931)
10,876(382,834,273)(191,612,529)

NET INCREASE IN CASH AND CASH EQUIVALENTS

232,581,656

93,128,524

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

396,294,241

303,165,717

CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term loans
Proceeds from issuance of bonds
Repayment of bonds
Payments for transaction costs attributable to the issuance of bonds
Treasury stock acquired
Repayment of the principal portion of lease liabilities
Interest paid
Guarantee deposits received
Guarantee deposits refunded
Cash dividends
Disposal of ownership interests in subsidiaries (without losing control)
Payment of partial acquisition of interests in subsidiaries
Proceeds from partial disposal of interests in subsidiaries
Donation from shareholders
Net cash used in financing activities

CASH AND CASH EQUIVALENTS, END OF YEAR$

628,875,897

The accompanying notes are an integral part of the parent company only financial statements.

- 122 - 122 -$

396,294,241(Concluded)

Taiwan Semiconductor Manufacturing Company Limited
NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1. GENERAL
Taiwan Semiconductor Manufacturing Company Limited (the “Company” or “TSMC”), a Republic of China(R.O.C.) corporation, was incorporated on February 21, 1987. The Company is a dedicated foundry in thesemiconductor industry which engages mainly in the manufacturing, sales, packaging, testing and computeraided design of integrated circuits and other semiconductor devices and the manufacturing of masks.
On September 5, 1994, the Company’s shares were listed on the Taiwan Stock Exchange (TWSE). On
October 8, 1997, the Company listed some of its shares of stock on the New York Stock Exchange (NYSE)
in the form of American Depositary Shares (ADSs).
The address of its registered office and principal place of business is No. 8, Li-Hsin Rd. 6, Hsinchu Science
Park, Taiwan.

2. THE AUTHORIZATION OF FINANCIAL STATEMENTS
The accompanying parent company only financial statements were approved and authorized for issue by the
Board of Directors on February 14, 2023.

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING
STANDARDS
a. Initial application of the amendments to the International Financial Reporting Standards (IFRS),International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC)(collectively, “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)
The initial application of the amendments to the IFRSs endorsed and issued into effect by the FSC did
not have a significant effect on the Company’s accounting policies.
b. The IFRSs issued by International Accounting Standards Board (IASB) and endorsed by the FSC witheffective date starting 2023

New, Revised or Amended Standards and Interpretations
Amendments to IAS 1 “Disclosure of Accounting Policies”
Amendments to IAS 8 “Definition of Accounting Estimates”
Amendments to IAS 12 “Deferred Tax related to Assets andLiabilities arising from a Single Transaction”- 123 - 123 -Effective Date Issued
by IASB
January 1, 2023
January 1, 2023
January 1, 2023

c. The IFRSs issued by IASB but not yet endorsed and issued into effect by the FSC

New, Revised or Amended Standards and Interpretations
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between an Investor and its Associate or Joint Venture”
Amendments to IAS 1 “Classification of Liabilities as Current or
Non-current” and “Non-current Liabilities with Covenants”

Effective Date Issued
by IASB
To be determined by IASB
January 1, 2024

As of the date the accompanying parent company only financial statements were authorized for issue, theCompany continues in evaluating the impact on its financial position and financial performance from theinitial adoption of the aforementioned standards or interpretations and related applicable period. The
related impact will be disclosed when the Company completes its evaluation.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESFor the convenience of readers, the accompanying parent company only financial statements have beentranslated into English from the original Chinese version prepared and used in the R.O.C. If there is any
conflict between the English version and the original Chinese version or any difference in the interpretationof the two versions, the Chinese-language parent company only financial statements shall prevail.
Statement of Compliance
The accompanying parent company only financial statements have been prepared in conformity with theRegulations Governing the Preparation of Financial Reports by Securities Issuers (the “Accounting Standards
Used in Preparation of the Parent Company Only Financial Statements”).
Basis of Preparation
The accompanying parent company only financial statements have been prepared on the historical cost basis
except for financial instruments that are measured at fair values, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for the assets.
When preparing the parent company only financial statements, the Company account for subsidiaries andassociates by using the equity method. In order to agree with the amount of net income, other comprehensive
income and equity attributable to shareholders of the parent in the consolidated financial statements, thedifferences of the accounting treatment between the parent company only basis and the consolidated basis
are adjusted under the heading of investments accounted for using equity method, share of profits ofsubsidiaries and associates and share of other comprehensive income of subsidiaries and associates in theparent company only financial statements.
Foreign Currencies
In preparing the parent company only financial statements, transactions in currencies other than the entity’sfunctional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of
the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Such exchange differences are recognized in profit or loss inthe year in which they arise. Non-monetary items measured at fair value that are denominated in foreign
currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange
differences arising on the retranslation of non-monetary items are included in profit or loss for the year except
for exchange differences arising on the retranslation of non-monetary items in respect of which gains andlosses are recognized directly in other comprehensive income, in which case, the exchange differences arealso recognized directly in other comprehensive income. Non-monetary items that are measured in terms ofhistorical cost in foreign currencies are not retranslated.

- 124 - 124 -For the purposes of presenting parent company only financial statements, the assets and liabilities of theCompany’s foreign operations are translated into NT$ using exchange rates prevailing at the end of eachreporting period. Income and expense items are translated at the average exchange rates for the period.
Exchange differences arising, if any, are recognized in other comprehensive income and accumulated inequity.
Classification of Current and Noncurrent Assets and Liabilities
Current assets are assets held for trading purposes and assets expected to be converted to cash, sold or
consumed within one year from the end of the reporting period. Current liabilities are obligations incurred
for trading purposes and obligations expected to be settled within one year from the end of the reporting
period. Assets and liabilities that are not classified as current are noncurrent assets and liabilities, respectively.
Cash Equivalents
Cash equivalents, for the purpose of meeting short-term cash commitments, consist of highly liquid time
deposits and investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
Financial Instruments
Financial assets and liabilities shall be recognized when the Company becomes a party to the contractual
provisions of the instruments.
Financial assets and liabilities are initially recognized at fair values. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets
and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value ofthe financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss arerecognized immediately in profit or loss.
Financial Assets
The classification of financial assets depends on the nature and purpose of the financial assets and isdetermined at the time of initial recognition. Regular way purchases or sales of financial assets are recognizedand derecognized on a trade date or settlement date basis for which financial assets were classified in thesame way, respectively. Regular way purchases or sales are purchases or sales of financial assets that requiredelivery of assets within the time frame established by regulation or convention in the marketplace.
a. Category of financial assets and measurement
Financial assets are classified into the following categories: financial assets at FVTPL, investments indebt instruments and equity instruments at FVTOCI, and financial assets at amortized cost.
1) Financial asset at FVTPL
For certain financial assets which include debt instruments that do not meet the criteria of amortizedcost or FVTOCI, it is mandatorily required to measure them at FVTPL. Any gain or loss arisingfrom remeasurement is recognized in profit or loss. The net gain or loss recognized in profit or loss
incorporates any interest earned on the financial asset.

- 125 - 125 -2) Investments in debt instruments at FVTOCI
Debt instruments with contractual terms specifying that cash flows are solely payments of principal
and interest on the principal amount outstanding, together with objective of collecting contractual
cash flows and selling the financial assets, are measured at FVTOCI.
Interest income calculated using the effective interest method, foreign exchange gains and losses andimpairment gains or losses on investments in debt instruments at FVTOCI are recognized in profit
or loss. Other changes in the carrying amount of these debt instruments are recognized in othercomprehensive income and will be reclassified to profit or loss when these debt instruments aredisposed.
3) Investments in equity instruments at FVTOCI
On initial recognition, the Company may irrevocably designate investments in equity investmentsthat is not held for trading as at FVTOCI.
Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains andlosses arising from changes in fair value recognized in other comprehensive income and accumulated
in other equity.
Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss
when the Company’s right to receive the dividends is established, unless the Company’s rights clearly
represent a recovery of part of the cost of the investment.
4) Measured at amortized cost
Cash and cash equivalents, commercial paper, debt instrument investments, notes and accounts
receivable (including related parties), other receivables, refundable deposits and temporary payments(classified under other current assets and other noncurrent assets) are measured at amortized cost.
Debt instruments with contractual terms specifying that cash flows are solely payments of principal
and interest on the principal amount outstanding, together with objective of holding financial assets
in order to collect contractual cash flows, are measured at amortized cost.
Subsequent to initial recognition, financial assets measured at amortized cost are measured atamortized cost, which equals to carrying amount determined by the effective interest method less any
impairment loss.
b. Impairment of financial assets
At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial
assets at amortized cost (including accounts receivable) and for investments in debt instruments that aremeasured at FVTOCI.
The loss allowance for accounts receivable is measured at an amount equal to lifetime expected credit
losses. For financial assets at amortized cost and investments in debt instruments that are measured at
FVTOCI, when the credit risk on the financial instrument has not increased significantly since initialrecognition, a loss allowance is recognized at an amount equal to expected credit loss resulting frompossible default events of a financial instrument within 12 months after the reporting date. If, on the other
hand, there has been a significant increase in credit risk since initial recognition, a loss allowance isrecognized at an amount equal to expected credit loss resulting from all possible default events over the
expected life of a financial instrument.

- 126 - 126 -The Company recognizes an impairment loss in profit or loss for all financial instruments with acorresponding adjustment to their carrying amount through a loss allowance account, except forinvestments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognizedin other comprehensive income and does not reduce the carrying amount of the financial asset.
c. Derecognition of financial assets
The Company derecognizes a financial asset only when the contractual rights to the cash flows from thefinancial asset expire, or when it transfers the financial asset and substantially all the risks and rewardsof ownership of the financial asset to another entity.
On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s
carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.
On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset’s
carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss
that had been recognized in other comprehensive income is recognized in profit or loss. However, on
derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss that had
been recognized in other comprehensive income is transferred directly to retained earnings, without
recycling through profit or loss.
Financial Liabilities and Equity Instruments
Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity
in accordance with the substance of the contractual arrangements and the definitions of a financial liability
and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, netof direct issue costs.
Financial liabilities
Financial liabilities are subsequently measured either at amortized cost using effective interest method or at
FVTPL.
Financial liabilities are classified as at fair value through profit or loss when the financial liability is either
held for trading or is designated as at fair value through profit or loss.
Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arisingon remeasurement recognized in profit or loss.
Financial liabilities other than those held for trading purposes and designated as at FVTPL are subsequently
measured at amortized cost at the end of each reporting period.
Derecognition of financial liabilities
The Company derecognizes financial liabilities when, and only when, the Company’s obligations aredischarged, cancelled or they expire. The difference between the carrying amount of the financial liability
derecognized and the consideration paid and payable is recognized in profit or loss.

- 127 - 127 -Derivative Financial Instruments
Derivative financial instruments are initially recognized at fair value at the date the derivative contracts areentered into and are subsequently remeasured to their fair value at the end of each reporting period. The
resulting gain or loss is recognized in profit or loss immediately unless the derivative financial instrument isdesignated and effective as a hedging instrument, in which event the timing of the recognition in profit orloss depends on the nature of the hedge relationship.
Hedge Accounting
Cash flow hedge
The Company designates certain hedging instruments, such as forward exchange contracts, to partially hedge
its foreign exchange rate risks associated with certain highly probable forecast transactions (capital
expenditures). The effective portion of changes in the fair value of hedging instruments is recognized in othercomprehensive income. When the forecast transactions actually take place, the associated gains or losses thatwere recognized in other comprehensive income are transferred from equity to the initial cost of the hedged
items. The gains or losses from hedging instruments relating to the ineffective portion are recognized
immediately in profit or loss.
The Company prospectively discontinues hedge accounting only when the hedging relationship ceases tomeet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated, or
exercised.
Inventories
Inventories are stated at the lower of cost or net realizable value. Inventories are recorded at standard costand adjusted to approximate weighted-average cost at the end of the reporting period. Net realizable value
represents the estimated selling price of inventories less all estimated costs of completion and costs necessary
to make the sale.
Investments Accounted for Using Equity Method
Investments accounted for using the equity method include investments in subsidiaries and associates.
Investment in subsidiaries
A subsidiary is an entity that is controlled by the Company.
Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter
to recognize the Company’s share of profit or loss and other comprehensive income of the subsidiary as wellas the distribution received. The Company also recognized its share in the changes in the equity of subsidiaries.
Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control
over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amountof the subsidiary and the fair value of the consideration paid or received is recognized directly in equity.
When the Company loses control of a subsidiary, any retained investment of the former subsidiary ismeasured at the fair value at that date. A gain or loss is recognized in profit or loss and calculated as thedifference between (a) the aggregate of the fair value of consideration received and the fair value of any
retained interest at the date when control is lost; and (b) the previous carrying amount of the investments insuch subsidiary. In addition, the Company shall account for all amounts previously recognized in othercomprehensive income in relation to the subsidiary on the same basis as would be required if the subsidiary
had directly disposed of the related assets and liabilities.

- 128 - 128 -When the Company transacts with its subsidiaries, profits and losses resulting from the transactions with thesubsidiaries are recognized in the Company’s parent company only financial statements only to the extent ofinterests in the subsidiaries that are not owned by the Company.
Investment in associates
An associate is an entity over which the Company has significant influence and that is neither a subsidiarynor a joint venture. Significant influence is the power to participate in the financial and operating policy
decisions of the investee but is not control or joint control over those policies.
The operating results and assets and liabilities of associates are incorporated in these parent company only
financial statements using the equity method of accounting. Under the equity method, an investment in an
associate is initially recognized in the statement of financial position at cost and adjusted thereafter torecognize the Company’s share of profit or loss and other comprehensive income of the associate as well as
the distribution received. The Company also recognizes its share in the changes in the equities of associates.
Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets,
liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized as
goodwill, which is included within the carrying amount of the investment. Any excess of the Company’s
share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of
acquisition, after reassessment, is recognized immediately in profit or loss.
When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment
as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell)with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment.
Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment
subsequently increases.
When the Company subscribes to additional shares in an associate at a percentage different from its existingownership percentage, the resulting carrying amount of the investment differs from the amount of theCompany’s proportionate interest in the net assets of the associate. The Company records such a difference
as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If theCompany’s ownership interest is reduced due to the additional subscription to the shares of associate by otherinvestors, the proportionate amount of the gains or losses previously recognized in other comprehensive
income in relation to that associate shall be reclassified to profit or loss on the same basis as would be
required if the associate had directly disposed of the related assets or liabilities.
When the Company transacts with an associate, profits and losses resulting from the transactions with theassociate are recognized in the Company’s parent company only financial statements only to the extent ofinterests in the associate that are not owned by the Company.
Property, Plant and Equipment
Property, plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment. Costs include any incremental costs that are directly attributable to the construction, acquisitionof the item of property, plant and equipment or borrowing costs eligible for capitalization.
Property, plant and equipment in the course of construction for production, supply or administrative purposes
are carried at cost, less any recognized impairment loss. Such assets are classified to the appropriate categories
of property, plant and equipment when completed and ready for intended use. Depreciation of these assets,on the same basis as other identical categories of property, plant and equipment, commences when the assets
are available for their intended use.

- 129 - 129 -Depreciation is recognized so as to write off the cost of the assets less their residual values over their useful
lives, and it is computed using the straight-line method mainly over the following estimated useful lives:
buildings (assets used by the Company and assets subject to operating leases) - 10 to 20 years; machinery andequipment (assets used by the Company and assets subject to operating leases) - 5 years; and office equipment- 5 years. The estimated useful lives, residual values and depreciation method are reviewed at the end of eachreporting period, with the effect of any changes in estimates accounted for on a prospective basis. Land is notdepreciated.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits
are expected to arise from the continued use of the assets. Any gain or loss arising on the disposal or retirementof an item of property, plant and equipment is determined as the difference between the sales proceeds andthe carrying amount of the asset and is recognized in profit or loss.
LeasesFor a contract that contains a lease component and non-lease component, the Company may elect to accountfor the lease and non-lease components as a single lease component.
The Company as lessor
Rental income from operating lease is recognized on a straight-line basis over the term of the lease.
The Company as lessee
Except for payments for low-value asset leases and short-term leases (leases of machinery and equipment
and others) which are recognized as expenses on a straight-line basis, the Company recognizes right-of-use
assets and lease liabilities for all leases at the commencement date of the lease.
Right-of-use assets are measured at cost. The cost of right-of-use assets comprises the initial measurement oflease liabilities adjusted for lease payments and initial direct costs made at or before the commencement date,plus an estimate of costs needed to restore the underlying assets. Subsequent measurement is calculated ascost less accumulated depreciation and accumulated impairment loss and adjusted for changes in leaseliabilities as a result of lease term modifications or other related factors. Right-of-use assets are presented
separately in the parent company only balance sheets.
Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlierof the end of the useful lives of the right-of-use assets or the end of the lease terms. If the lease transfers
ownership of the underlying assets to the Company by the end of the lease terms or if the cost of right-of-use
assets reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use
assets from the commencement dates to the end of the useful lives of the underlying assets.
Lease liabilities are measured at the present value of the lease payments. Lease payments comprise fixed
payments, variable lease payments which depend on an index or a rate and the exercise price of a purchase
option if the Company is reasonably certain to exercise that option. The lease payments are discounted using
the lessee’s incremental borrowing rates.
Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest
expense recognized over the lease terms. When there is a change in a lease term, a change in future lease
payments resulting from a change in an index or a rate used to determine those payments, or a change in theassessment of an option to purchase an underlying asset, the Company remeasures the lease liabilities with acorresponding adjustment to the right-of-use assets. Lease liabilities are presented on a separate line in theparent company only balance sheets.

- 130 - 130 -Intangible Assets
Goodwill
Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of
the business less accumulated impairment losses, if any.
Other intangible assets
Other separately acquired intangible assets with finite useful lives are carried at cost less accumulated
amortization and accumulated impairment losses. Amortization is recognized using the straight-line method
over the following estimated useful lives: Technology license fees - the estimated life of the technology or
the term of the technology transfer contract; software and system design costs - 3 years or contract period;
patent and others - the economic life or contract period. The estimated useful life and amortization method
are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted
for on a prospective basis.
Impairment of Tangible Assets, Right-of-use Assets and Intangible Assets
Goodwill
Goodwill is not amortized and instead is tested for impairment annually, or more frequently when there is anindication that the cash generating unit may be impaired. For the purpose of impairment testing, goodwill isallocated to each of the Company’s cash generating units or groups of cash-generating units that are expected
to benefit. If the recoverable amount of a cash generating unit is less than its carrying amount, the difference isallocated first to reduce the carrying amount of any goodwill allocated to such cash-generating unit andthen to the other assets of the cash generating unit pro rata based on the carrying amount of each asset in the
cash generating unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment
loss recognized for goodwill is not reversed in subsequent periods.
Tangible assets, right-of-use assets and other intangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible assets (property,
plant and equipment), right-of-use assets and other intangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible
to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of
the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation canbe identified, corporate assets are also allocated to individual cash-generating units, or otherwise they areallocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis
can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset for which theestimates of future cash flows have not been adjusted.
If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount,the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. An impairment
loss is recognized immediately in profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset or a cash-generating unit
is increased to the revised estimate of its recoverable amount, but the increased carrying amount does notexceed the carrying amount that would have been determined had no impairment loss been recognized forthe asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized immediately
in profit or loss.

- 131 - 131 -Revenue Recognition
The Company recognizes revenue when performance obligations are satisfied. The performance obligations
are satisfied when customers obtain control of the promised goods which is generally when the goods aredelivered to the customers’ specified locations.
Revenue from sale of goods is measured at the fair value of the consideration received or receivable. Revenue
is reduced for estimated customer returns, rebates and other similar allowances. Estimated sales returns andother allowances is generally made and adjusted based on historical experience and the consideration ofvarying contractual terms to recognize refund liabilities, which is classified under accrued expenses and othercurrent liabilities.
In principle, payment term granted to customers is due 30 days from the invoice date or 30 days from the endof the month of when the invoice is issued. Due to the short term nature of the receivables from sale of goods
with the immaterial discounted effect, the Company measures them at the original invoice amounts without
discounting.
Employee Benefits
Short-term employee benefits
Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amountof the benefits expected to be paid in exchange for service rendered by employees.
Retirement benefits
For defined contribution retirement benefit plans, payments to the benefit plan are recognized as an expense
when the employees have rendered service entitling them to the contribution. For defined benefit retirement
benefit plans, the cost of providing benefit is recognized based on actuarial calculations.
Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit
retirement benefit plans are determined using the Projected Unit Credit Method. Service cost (including
current service cost), and net interest on the net defined benefit liability (asset) are recognized as employee
benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses and thereturn on plan assets (excluding interest), is recognized in other comprehensive income in the period in which
they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained
earnings and will not be reclassified to profit or loss.
Net defined benefit liability represents the actual deficit in the Company’s defined benefit plan.
Treasury Stock
Treasury stock represents the outstanding shares that the Company buys back from market, which is stated atcost and shown as a deduction in shareholders’ equity. When the Company retires treasury stock, the treasury
stock account is reduced and the common stock as well as the capital surplus - additional paid-in capital are
reversed on a pro rata basis. When the book value of the treasury stock exceeds the sum of the par value andadditional paid-in capital, the difference is charged to capital surplus - treasury stock transactions and toretained earnings for any remaining amount.

- 132 - 132 -Share-based payment arrangements
a. Equity-settled share-based payment arrangements
Restricted shares for employees are expensed on a straight-line basis over the vesting period, based on
the fair value at the grant date and the Company’s best estimate of the number expected to ultimately
vest, with a corresponding increase in other equity - unearned employee benefits.
When restricted shares for employees are issued, other equity - unearned employee benefits is recognizedon the grant date, with a corresponding increase in capital surplus - restricted shares for employees.
Dividends paid to employees on restricted shares which do not need to be returned if employees resignin the vesting period are recognized as expenses upon the dividend declaration with a corresponding
adjustment in retained earnings.
At the end of each reporting period, the Company revises its estimate of the number of restricted sharesfor employees that are expected to vest. The impact from such revision is recognized in profit or loss sothat the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capitalsurplus - restricted shares for employees.
b. Cash-settled share-based payment arrangements
For cash-settled share-based payments, a liability is recognized for the services acquired, measured at thefair value of the liability incurred. At the end of each reporting period until the liability is settled, and at
the date of settlement, the fair value of the liability is remeasured, with any changes in fair value
recognized in profit or loss.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
Income tax on unappropriated earnings is expensed in the year the shareholders approved the appropriationof earnings which is the year subsequent to the year the earnings are generated.
Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.
Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in
the parent company only financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred
tax assets are generally recognized for all deductible temporary differences, net operating loss carryforwards
and tax credits for research and development expenses to the extent that it is probable that taxable profits will
be available against which those deductible temporary differences can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates, except where the Company is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred
tax assets arising from deductible temporary differences associated with such investments are only recognized
to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefitsof the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to theextent that it is no longer probable that sufficient taxable profits will be available to allow all or part of thedeferred tax asset to be recovered. The deferred tax assets which originally not recognized is also reviewed- 133 - 133 -at the end of each reporting period and recognized to the extent that it is probable that sufficient taxable
profits will be available to allow all or part of the deferred tax asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the year in which
the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities andassets reflects the tax consequences that would follow from the manner in which the Company expects, at theend of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognizedin other comprehensive income or directly in equity, in which case, the current and deferred tax are also
recognized in other comprehensive income or directly in equity, respectively.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND
UNCERTAINTYThe Company has considered the economic implications of COVID-19 on critical accounting estimates andwill continue evaluating the impact on its financial position and financial performance as a result of thepandemic.
In the application of the aforementioned Company’s accounting policies, the Company is required to makejudgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated assumptions are based on historical experienceand other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the year in which the estimate is revised if the revision affects only that year, orin the year of the revision and future years if the revision affects both current and future years.
Critical Accounting Judgments
Revenue Recognition
The Company recognizes revenue when the conditions described in Note 4 are satisfied.
Commencement of Depreciation Related to Property, Plant and Equipment Classified as Equipment
under Installation and Construction in Progress (EUI/CIP)As described in Note 4, commencement of depreciation related to EUI/CIP involves determining when theassets are available for their intended use. The criteria the Company uses to determine whether EUI/CIP areavailable for their intended use involves subjective judgments and assumptions about the conditions
necessary for the assets to be capable of operating in the intended manner.
Judgments on Lease Terms
In determining a lease term, the Company considers all facts and circumstances that create an economic
incentive to exercise or not to exercise an option, including any expected changes in facts and circumstancesfrom the commencement date until the exercise date of the option. Main factors considered include
contractual terms and conditions covered by the optional periods, and the importance of the underlying asset
to the lessee’s operations, etc. The lease term is reassessed if a significant change in circumstances that arewithin the control of the Company occurs.

- 134 - 134 -Key Sources of Estimation and Uncertainty
Estimation of Sales Returns and Allowances
Sales returns and other allowance is estimated and recorded based on historical experience and inconsideration of different contractual terms. The amount is deducted from revenue in the same period therelated revenue is recorded. The Company periodically reviews the reasonableness of the estimates.
Valuation of Inventory
Inventories are stated at the lower of cost or net realizable value, and the Company uses estimate to determine
the net realizable value of inventory at the end of each reporting period.
The Company estimates the net realizable value of inventory for normal waste, obsolescence andunmarketable items at the end of reporting period and then writes down the cost of inventories to net realizablevalue. The net realizable value of the inventory is determined mainly based on assumptions of future demand
within a specific time horizon.
Impairment of Tangible Assets, Right-of-use Assets and Intangible Assets Other than Goodwill
In the process of evaluating the potential impairment of tangible assets, right-of-use assets and intangible
assets other than goodwill, the Company determines the independent cash flows, useful lives, expected future
revenue and expenses related to the specific asset groups with the consideration of the nature ofsemiconductor industry. Any change in these estimates based on changed economic conditions or businessstrategies could result in significant impairment charges or reversal in future years.
Realization of Deferred Income Tax Assets
Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available
against which those deferred tax assets can be utilized. Assessment of the realization of the deferred tax assets
requires subjective judgment and estimate, including the future revenue growth and profitability, tax holidays,
the amount of tax credits can be utilized and feasible tax planning strategies. Any changes in the global
economic environment, the industry trends and relevant laws and regulations could result in significant
adjustments to the deferred tax assets.
Determination of Lessees’ Incremental Borrowing Rates
In determining a lessee’s incremental borrowing rate used in discounting lease payments, the Company
mainly takes into account the market risk-free rates, the estimated lessee’s credit spreads and secured status
in a similar economic environment.

6. CASH AND CASH EQUIVALENTS

Cash and deposits in banks
Commercial paper
Repurchase agreements

December 31,
2022

December 31,
2021$ 618,449,503
9,566,430
859,964$ 395,463,340
830,901$ 628,875,897$ 396,294,241

Deposits in banks consisted of highly liquid time deposits that were readily convertible to known amounts ofcash and were subject to an insignificant risk of changes in value.

- 135 - 135 -7. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
December 31,
2022

December 31,
2021$ 552,255$ 145,280$$ 636,472

Financial assets
Mandatorily measured at FVTPL
Forward exchange contracts
Financial liabilities
Held for trading
Forward exchange contracts

17,468The Company entered into forward exchange contracts to manage exposures due to fluctuations of foreignexchange rates. These forward exchange contracts did not meet the criteria for hedge accounting. Therefore,
the Company did not apply hedge accounting treatment for these forward exchange contracts.
Outstanding forward exchange contracts consisted of the following:

Maturity Date

Contract Amount(In Thousands)

December 31, 2022
Sell NT$

January 2023 to March 2023

NT$

79,610,590

January 2022 to March 2022

NT$ 132,734,482

December 31, 2021
Sell NT$

8. FINANCIAL ASSETS AT AMORTIZED COST
December 31,
2022
Commercial paper
Less: Allowance for impairment loss

$ 48,742,817(10,341)$ 48,732,476

Refer to Note 30 for information relating to credit risk management and expected credit loss for financial
assets at amortized cost.
9. HEDGING FINANCIAL INSTRUMENTS
The Company entered into forward exchange contracts to partially hedge foreign exchange rate risks
associated with certain highly probable forecast transactions (capital expenditures). The hedge ratio isadjusted in response to the changes in the financial market and capped at 100%. The forward exchange
contracts have maturities of 12 months or less.

- 136 - 136 -On the basis of economic relationships, the Company expects that the value of forward exchange contracts
and the value of hedged transactions change in opposite directions in response to movements in foreignexchange rates.
The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of thecounterparty’s own credit risk on the fair value of forward exchange contracts. No other sources of
ineffectiveness emerged from these hedging relationships during the hedging period. For the years ended
December 31, 2021, refer to Note 19(d) for gain or loss arising from changes in the fair value of hedging
instruments and the amount transferred to initial carrying amount of hedged items.
The effect of hedging foreign currency risk for the years ended December 31, 2021 is detailed below:
Change inValue Used for
Calculating
Hedge
IneffectivenessYears Ended
December 31,
2021

Hedging Instruments/Hedged Items
Hedging Instruments
Forward exchange contracts$ (41,416)

Hedged Items
Forecast transaction (capital expenditures)$ 41,416

10. NOTES AND ACCOUNTS RECEIVABLE, NET

At amortized cost
Notes and accounts receivable
Less: Loss allowance

At FVTOCI

December 31,
2022

December 31,
2021$ 34,316,916(330,686)
33,986,230$ 42,046,293(345,905)
41,700,388

7,325,606

4,199,909$ 41,311,836$ 45,900,297

The Company signed a contract with the bank to sell certain accounts receivable without recourse andtransaction cost required. These accounts receivable are classified as at FVTOCI because they are held withina business model whose objective is achieved by both collecting contractual cash flows and selling financial
assets.
In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days from theend of the month when the invoice is issued. Aside from recognizing impairment loss for credit-impaired
accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio ofcustomers by different risk levels with consideration of factors of historical loss ratios and customers’
financial conditions, competitiveness and business outlook. For accounts receivable past due over 90 days
without collaterals or guarantees, the Company recognizes loss allowance at full amount.

- 137 - 137 -Aging analysis of notes and accounts receivable

Not past due
Past due
Past due within 30 days
Past due over 31 days
Less: Loss allowance

December 31,
2022

December 31,
2021$ 40,353,856$ 44,056,424

1,268,778
19,888(330,686)

2,188,337
1,441(345,905)$ 41,311,836$ 45,900,297

All of the Company’s accounts receivable classified as at FVTOCI were not past due.
Movements of the loss allowance for accounts receivable
Years Ended December 31
2022
2021
Balance, beginning of year
Provision (Reversal)$ 345,905(15,219)$ 243,710
102,195

Balance, end of year

$ 330,686$ 345,905

For the years ended December 31, 2022 and 2021, the changes in loss allowance were mainly due to thevariations in the balance of accounts receivable of different risk levels.

11. INVENTORIES

Finished goods
Work in process
Raw materials
Supplies and spare parts

December 31,
2022

December 31,
2021$ 52,318,299
120,893,772
19,750,618
15,320,206$ 32,290,346
134,097,879
10,368,446
8,403,177$ 208,282,895$ 185,159,848

Write-down of inventories to net realizable value and reversal of write-down of inventories resulting fromthe increase in net realizable value were included in the cost of revenue during reporting period. The amounts
are illustrated below:
Years Ended December 31
2022
2021
$ 4,613,077

Inventory losses- 138 - 138 -$

520,09612. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
Investments accounted for using the equity method consisted of the following:

Subsidiaries
Associates

December 31,
2022

December 31,
2021$ 700,324,717
27,622,452$ 580,702,074
21,940,470$ 727,947,169$ 602,642,544

a. Investments in subsidiaries
Subsidiaries consisted of the following:

Subsidiaries
TSMC Global Ltd.
(TSMC Global)
TSMC China
Company Limited(TSMC China)
TSMC NanjingCompany Limited(TSMC Nanjing)
TSMC Partners, Ltd.
(TSMC Partners)

TSMC Arizona
Corporation (TSMC
Arizona)
Japan Advanced
Semiconductor
Manufacturing, Inc.
(JASM)
VisEra Technologies
Company Ltd.
(VisEra Tech)
TSMC North America

Emerging Fund
L.P.(Emerging
Fund)
TSMC Japan 3DIC
R&D Center, Inc.
(TSMC 3DIC)
TSMC Europe B.V.
(TSMC Europe)
TSMC Design
Technology Japan,
Inc. (TSMC JDC)
VentureTech AllianceFund III, L.P.
(VTAF III)TSMC Japan Limited(TSMC Japan)
VentureTech AllianceFund II, L.P.
(VTAF II)
TSMC Korea Limited(TSMC Korea)

Principal Activities

Place of
Incorporation
and Operation

Carrying Amount
December 31,
December 31,
2022
2021

Percentage of Ownership
December 31,
December 31,
2022
2021

Tortola, British
Virgin Islands
Shanghai, China$ 411,992,426$ 374,639,406

100%

100%

87,028,722

73,470,628

100%

100%

Nanjing, China

67,385,300

46,159,494

100%

100%

Tortola, British
Virgin Islands

63,697,217

54,968,185

100%

100%

Phoenix, Arizona,
U.S.A.

25,639,079

16,667,696

100%

100%

Kumamoto, Japan

23,330,125

1,383,554

71%

100%

Hsinchu, Taiwan

11,467,860

6,521,231

68%

73%

San Jose,
California,
U.S.A.
Cayman Islands

5,449,755

4,871,149

100%

100%

1,760,885

286,205

99.9%

99.9%

Engineering support activities

Yokohama, Japan

1,172,706

270,513

100%

100%

Customer service and supporting
activities
Engineering support activities

Amsterdam, theNetherlands
Yokohama, Japan

527,693

509,880

100%

100%

376,176

368,144

100%

100%

Investing in new start-up
technology companies

Cayman Islands

246,702

300,401

98%

98%

Customer service and supporting
activities
Investing in new start-up
technology companies

Yokohama, Japan

134,560

132,411

100%

100%

Cayman Islands

71,429112,320

98%

98%

Customer service and supporting
activities

Seoul, Korea

44,08240,857100%

100%$ 700,324,717$ 580,702,074

Investment activities
Manufacturing, selling, testing
and computer-aided design ofintegrated circuits and othersemiconductor devices
Manufacturing, selling, testing
and computer-aided design ofintegrated circuits and othersemiconductor devices
Investing in companies involvedin the design, manufacture, andother related business in thesemiconductor industry andother investment activities
Manufacturing, selling and testingof integrated circuits and othersemiconductor devices
Manufacturing, sales, testing andcomputer aided design ofintegrated circuits and othersemiconductor devices
Research, design, development,
manufacturing, sales,
packaging and test of color
filterSelling and marketing ofintegrated circuits and othersemiconductor devices
Investing in technology start-up
companies- 139 - 139 -The Company increased its investment in TSMC Arizona for the amount of NT$15,372,500 thousand
and NT$20,787,702 thousand in both of 2022 and 2021, respectively. Under the terms of the development
agreement entered into between TSMC Arizona and the City of Phoenix, the City of Phoenix commits
approximately US$205 million toward various public infrastructure projects in the area of the proposed
manufacturing facility, conditioned on TSMC Arizona’s achieving a minimum project scale with defined
spending and job-creation thresholds.
The Company established a subsidiary, JASM, in December 2021 and invested in JASM for the amountof NT$1,416,921 thousand in January 2022. The Company continually increased its investment in JASM
for the amount of NT$23,150,164 in 2022. After JASM’s capital increase in January 2022, the Company’s
shareholding in JASM decreased from 100% to 81%. In addition, JASM increased its capital by issuing
noncumulative preferred shares and common shares in April 2022, the Company’s shareholding in JASM
decreased from 81% to 71% and the proportion of voting right remain 81%. The aforementioned
transactions were accounted for as an equity transaction since the transaction did not change theCompany’s control over JASM.
To facilitate VisEra’s IPO in Taiwan in June 2022, 39,501 thousand common shares of VisEra at a priceof NT$240 were sold by the Company and an increase of NT$8,406,282 thousand in capital surplus wasrecognized. The Company’s shareholding in VisEra decreased from 87% to 73%. In addition, VisEra has
increased its capital in June 2022. After the increase in capital, the Company’s shareholding in VisEra
decreased from 73% to 68%. The aforementioned transactions were accounted for as an equity transaction
since the transaction did not change the Company’s control over VisEra.
The Company established a subsidiary in January 2021 and, in both of 2022 and 2021, continually
increased its investment in Emerging Fund for the amounts of NT$1,033,339 thousand and NT$298,618
thousand, respectively.
The Company established a subsidiary in March 2021 and, in both of 2022 and 2021, continually
increased its investment in TSMC 3DIC for the amounts of NT$865,370 thousand and NT$278,986
thousand, respectively.
b. Investments in associates
Associates consisted of the following:
Place of
Incorporation
and Operation

Name of Associate

Principal Activities

Vanguard International
Semiconductor
Corporation (VIS)

Manufacturing, sales, packaging,testing and computer-aided
design of integrated circuits
and other semiconductor
devices and the manufacturing
and design service of masks
Manufacturing and selling ofintegrated circuits and othersemiconductor devices

Hsinchu, Taiwan

Wafer level chip size packaging
and wafer level postpassivation interconnection
serviceResearching, developing,
manufacturing, testing andmarketing of integrated circuits

Systems on Silicon
Manufacturing
Company Pte Ltd.
(SSMC)
Xintec Inc. (Xintec)

Global Unichip
Corporation (GUC)

Carrying Amount
December 31,
December 31,
2022
2021

% of Ownership and Voting
Rights Held by the Company
December 31,
December 31,
2022
2021

$ 13,492,653$ 10,613,127

28%

28%

Singapore

8,934,731

6,795,699

39%

39%

Taoyuan, Taiwan

3,528,417

3,046,961

41%

41%

Hsinchu, Taiwan

1,666,651

1,484,683

35%

35%

$ 27,622,452$ 21,940,470

As of December 31, 2022 and 2021, no investments in associates are individually material to theCompany. Please refer to the parent company only statements of comprehensive income for recognitionof share of both profit (loss) and other comprehensive income (loss) of associates that are not individuallymaterial.

- 140 - 140 -The market prices of the associates’ ownership held by the Company in publicly traded stocks calculatedby the closing price at the end of the reporting period are summarized as follows. The closing pricerepresents the quoted price in active markets, the level 1 fair value measurement.
Name of Associate

December 31,
2022

December 31,
2021

VIS
GUC
Xintec$ 35,977,321$ 29,926,918$ 10,716,449$ 73,347,312$ 27,359,085$ 15,913,315

December 31,
2022

December 31,
2021$ 2,432,657,698
17,352$ 1,889,970,502
27$ 2,432,675,050$ 1,889,970,529

13. PROPERTY, PLANT AND EQUIPMENT

Assets used by the Company
Assets subject to operating leases

Assets used by the Company

Buildings

Machinery andEquipment

3,212,000-$ 536,912,374
51,982,217(228,870 )$ 3,814,331,964
289,897,592(30,528,791 )--(65,780 )Land

Equipment under
Installation andConstruction in
Progress

Total

71,312,061
9,288,321(1,659,656 )$ 552,647,944
604,897,876-$ 4,978,416,343
956,066,006(32,417,317 )--(65,780 )OfficeEquipment

Cost
Balance at January 1, 2022
Additions
Disposals or retirements
Transfers to assets subject tooperating leases$$

Balance at December 31, 2022$

3,212,000$ 588,665,721$ 4,073,634,985$

78,940,726$ 1,157,545,820$ 5,901,999,252

Balance at January 1, 2022
Additions
Disposals or retirements
Transfers to assets subject tooperating leases
Impairment$-$ 281,421,525
33,911,674(225,637 )$ 2,758,724,265
368,684,999(29,073,004 )$48,300,051
8,506,391(1,659,184 )$-$ 3,088,445,841
411,103,064(30,957,825 )--(40,266 )-

790,740(40,266 )
790,740

Balance at December 31, 2022$-

$ 315,107,562$ 3,098,295,994$

55,147,258$

790,740$ 3,469,341,554

Carrying amounts at December 31,
2022$

3,212,000$ 273,558,159$ 975,338,991$

23,793,468$ 1,156,755,080$ 2,432,657,698

Balance at January 1, 2021
Additions
Disposals or retirements
Transfers from assets subject tooperating leases
Transfers to assets subject tooperating leases$

3,212,000-$ 485,468,808
51,472,846(29,280 )$ 3,449,111,312
391,166,029(27,144,388 )$

63,277,681
8,187,623(153,243 )$ 220,142,047
332,505,897-$ 4,221,211,848
783,332,395(27,326,911 )--1,443,590--

1,443,590--(244,579 )--(244,579 )Balance at December 31, 2021$

3,212,000$ 536,912,374$ 3,814,331,964

71,312,061$ 552,647,944

Accumulated depreciationand impairment

-

Cost

$

$ 4,978,416,343(Continued)- 141 - 141 -Buildings

Machinery andEquipment-$ 249,513,714
31,932,475(24,664 )$ 2,420,657,989
360,603,748(23,180,397 )--

436,816--(68,279 )274,388

Land

Equipment under
Installation andConstruction in
Progress

OfficeEquipment

Total

Accumulated depreciationand impairment
Balance at January 1, 2021
Additions
Disposals or retirements
Transfers from assets subject tooperating leases
Transfers to assets subject tooperating leases
Impairment$$

40,232,639
8,219,832(152,420 )$-$ 2,710,404,342
400,756,055(23,357,481 )--

436,816--(68,279 )274,388

Balance at December 31, 2021$-

$ 281,421,525$ 2,758,724,265$

48,300,051$-$ 3,088,445,841

Carrying amounts at December 31,
2021$

3,212,000$ 255,490,849$ 1,055,607,699$

23,012,010$ 552,647,944$ 1,889,970,502(Concluded)
The significant part of the Company’s buildings includes main plants, mechanical and electrical power
equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20
years, 10 years and 10 years, respectively.
In the first quarter of 2022 and 2021, the Company recognized an impairment loss of NT$790,740 thousand
and NT$274,388 thousand for certain machinery and equipment that were assessed to have no future use, andthe recoverable amount of certain machinery and equipment was nil. Such impairment loss was recognizedin other operating income and expenses.
Information about capitalized interest is set out in Note 22.

14. LEASE ARRANGEMENTS
a. Right-of-use assets
December 31,
2022

December 31,
2021$ 38,121,835
911,108
18,484$ 29,525,788
574,00923,255$ 39,051,427$ 30,123,052

Carrying amounts
Land
Buildings
Office equipment

Years Ended December 31
2022
2021
Additions to right-of-use assets
Depreciation of right-of-use assets
Land
Buildings
Office equipment- 142 - 142 -$ 11,808,591$

7,053,815$

2,102,934
365,167
15,728$1,810,555
203,006
15,092$2,483,829$

2,028,653

b. Lease liabilities
December 31,
2022

December 31,
2021

$

$

Carrying amounts
Current portion (classified under accrued expenses and othercurrent liabilities)
Noncurrent portion

2,029,362
27,593,900

1,591,153
18,742,323$ 29,623,262$ 20,333,476

December 31,
2022

December 31,
2021

0.39%-2.30%
0.39%-1.76%
0.28%-1.73%

0.39%-0.94%
0.39%-0.71%
0.28%-0.69%

Ranges of discount rates for lease liabilities are as follows:Land
Buildings
Office equipmentc. Material terms of right-of-use assets

The Company leases land and buildings mainly for the use of plants and offices with lease terms of 1 to
22 years. The lease contracts for land located in the R.O.C. specify that lease payments will be adjusted
every 2 years on the basis of changes in announced land value prices. The Company does not havepurchase options to acquire the leasehold land and buildings at the end of the lease terms.
d. Other lease information
Years Ended December 31
2022
2021
Expenses relating to short-term leases
Total cash outflow for leases$ 4,616,518$ 7,037,733$ 5,250,134$ 6,975,064

15. INTANGIBLE ASSETS

Goodwill

Technology
License Fees

Software andSystem Design
Costs

Patent andOthersTotal

Cost
Balance at January 1, 2022
Additions
Disposals or retirements$

1,567,756-$

23,483,138
2,253,096(29,991)$

43,072,450
4,815,294(66,261)$

11,465,356
202,915-$

79,588,700
7,271,305(96,252)

Balance at December 31, 2022$

1,567,756$

25,706,243$

47,821,483$

11,668,271$

86,763,753

Balance at January 1, 2022
Additions
Disposals or retirements

$

-

$

14,861,472
2,793,540(11,351)$

33,599,582
4,722,380(66,261)$

8,217,246
1,191,041-$

56,678,300
8,706,961(77,612)

Balance at December 31, 2022

$

-

$

17,643,661$

38,255,701$

9,408,287$

65,307,649

Carrying amounts at December 31, 2022$

1,567,756$

8,062,582$

9,565,782$

2,259,984$

21,456,104

Accumulated amortization andimpairment(Continued)- 143 - 143 -Goodwill

Technology
License Fees

Software andSystem Design
Costs

Patent andOthersTotal

Cost
Balance at January 1, 2021
Additions
Disposals or retirements$

1,567,756-$

22,110,332
1,372,806-$

35,685,061
7,686,449(299,060)$

11,245,851
219,505-$

70,609,000
9,278,760(299,060)

Balance at December 31, 2021$

1,567,756$

23,483,138$

43,072,450$

11,465,356$

79,588,700

Balance at January 1, 2021
Additions
Disposals or retirements

$

-

$

12,174,686
2,686,786-$

29,683,225
4,214,190(297,833)$

7,017,492
1,199,754-$

48,875,403
8,100,730(297,833)

Balance at December 31, 2021

$

-

$

14,861,472$

33,599,582$

8,217,246$

56,678,300

Carrying amounts at December 31, 2021$

1,567,756$

8,621,666$

9,472,868$

3,248,110$

22,910,400

Accumulated amortization andimpairment(Concluded)
The Company’s goodwill has been tested for impairment at the end of the annual reporting period and therecoverable amount is determined based on the value in use. The value in use was calculated based on the
cash flow forecast from the financial budgets covering the future five-year period, and the Company usedannual discount rates of 8.7% and 8.0% in its test of impairment as of December 31, 2022 and 2021,
respectively, to reflect the relevant specific risk in the cash-generating unit.
For the years ended December 31, 2022 and 2021, the Company did not recognize any impairment loss on
goodwill.

16. SHORT-TERM LOANS
December 31,
2021
Unsecured loans$ 114,921,333

Loan content
EUR (in thousands)
Annual interest rate
Maturity date$

3,652,935(0.73)%-0%
Due by June
2022

17. BONDS PAYABLE

Domestic unsecured bonds
Less: Discounts on bonds payable
Less: Current portion- 144 - 144 -December 31,
2022

December 31,
2021$ 379,526,000(295,526)(18,100,000)$ 312,448,000(264,591)(4,400,000)$ 361,130,474$ 307,783,409

The major terms of domestic unsecured bonds are as follows:
TrancheIssuance Period

Total Amount

CouponRate

Repayment andInterest Payment

101-3

-

$

4,400,000

1.53%

101-4

C

3,000,000

1.49%

Bullet repayment; interest
payable annually
The same as above

102-1

C

3,600,000

1.50%

The same as above

102-2

B

3,500,000

1.70%

The same as above

102-4

D

October 2012 to
October 2022
January 2013 toJanuary 2023
February 2013 to
February 2023
July 2013 to July
2023
September 2013 toMarch 2021

2,600,000

1.85%

5,400,000

2.05%

Bullet repayment; interest
payable annually(interest for the six
months prior tomaturity will accrue on
the basis of actual days
and be repayable atmaturity)
The same as above

2,600,000

2.10%

3,000,000

0.58%

Bullet repayment; interest
payable annually
The same as above

10,500,000

0.62%

The same as above

10,500,000

0.64%

The same as above

5,900,000

0.52%

The same as above

10,400,000

0.58%

The same as above

5,300,000

0.60%

The same as above

4,500,000

0.55%

The same as above

7,500,000

0.60%

The same as above

2,400,000

0.64%

The same as above

5,700,000

0.58%

6,300,000

0.65%

Two equal installments inlast two years; interest
payable annually
The same as above

1,900,000

0.67%

The same as above

Issuance
NT$ unsecured
bonds

E
F
109-1

A
B
C

109-2

A
B
C

109-3

A
B
C

109-4

A

B
C

September 2013 toMarch 2023
September 2013 to
September 2023
March 2020 toMarch 2025
March 2020 toMarch 2027
March 2020 toMarch 2030
April 2020 toApril 2025
April 2020 toApril 2027
April 2020 toApril 2030
May 2020 to May
2025
May 2020 to May
2027
May 2020 to May
2030
July 2020 to July
2025
July 2020 to July
2027
July 2020 to July
2030

(Continued)- 145 - 145 -Issuance
109-5

TrancheIssuance Period

Total Amount

CouponRate

Repayment andInterest Payment

A

September 2020 to
September 2025$

4,800,000

0.50%

B

September 2020 to
September 2027
September 2020 to
September 2030
December 2020 to
December 2025
December 2020 to
December 2027
December 2020 to
December 2030
December 2020 to
December 2025
December 2020 to
December 2027
December 2020 to
December 2030
March 2021 toMarch 2026
March 2021 toMarch 2028
March 2021 toMarch 2031
May 2021 to May
2026
May 2021 to May
2028
May 2021 to May
2031
June 2021 to June
2026
June 2021 to June
2028
June 2021 to June
2031
August 2021 toAugust 2025
August 2021 toAugust 2026
August 2021 toAugust 2028
August 2021 toAugust 2031
October 2021 toApril 2026
October 2021 toOctober 2026

8,000,000

0.58%

Two equal installments inlast two years; interest
payable annually
The same as above

2,800,000

0.60%

The same as above

1,600,000

0.40%

The same as above

5,600,000

0.44%

The same as above

4,800,000

0.48%

The same as above

1,900,000

0.36%

The same as above

10,200,000

0.41%

The same as above

6,400,000

0.45%

The same as above

4,800,000

0.50%

11,400,000

0.55%

Bullet repayment; interest
payable annually
The same as above

4,900,000

0.60%

The same as above

5,200,000

0.50%

The same as above

8,400,000

0.58%

The same as above

5,600,000

0.65%

The same as above

6,900,000

0.52%

The same as above

7,900,000

0.58%

The same as above

4,900,000

0.65%

The same as above

4,000,000

0.485%The same as above

8,000,000

0.50%

The same as above

5,400,000

0.55%

The same as above

4,200,000

0.62%

The same as above

3,200,000

0.535%The same as above

6,900,000

0.54%

The same as aboveC
109-6(Green bond)

A
B
C

109-7

A
B
C

110-1

A
B
C

110-2

A
B
C

110-3

A
B
C

110-4

A
B
C
D

110-6

A
B

(Continued)- 146 - 146 -Issuance
110-6

TrancheIssuance Period

Total Amount

CouponRate

Repayment andInterest Payment

C

October 2021 toOctober 2028
October 2021 toOctober 2031
December 2021 to
December 2026
December 2021 toJune 2027
December 2021 to
December 2028
January 2022 toJanuary 2027
January 2022 toJanuary 2029
March 2022 toSeptember 2026
March 2022 toMarch 2027
March 2022 toMarch 2029
May 2022 to May
2027
July 2022 to July
2026
July 2022 to July
2027
July 2022 to July
2029
July 2022 to July2032
August 2022 toJune 2027
August 2022 toAugust 2027
August 2022 toAugust 2029
August 2022 toAugust 2032
October 2022 to
October 2027$

4,600,000

0.60%

1,600,000

0.62%

Bullet repayment; interest
payable annually
The same as above

7,700,000

0.65%

The same as above

3,500,000

0.675%The same as above

5,500,000

0.72%

The same as above

2,100,000

0.63%

The same as above

3,300,000

0.72%

The same as above

3,000,000

0.84%

The same as above

9,600,000

0.85%

The same as above

1,600,000

0.90%

The same as above

6,100,000

1.50%

The same as above

1,200,000

1.60%

The same as above

10,100,000

1.70%

The same as above

1,200,000

1.75%

The same as above

1,400,000

1.95%

The same as above

2,000,000

1.65%

The same as above

8,900,000

1.65%

The same as above

2,200,000

1.65%

The same as above

2,500,000

1.82%

The same as above

5,700,000

1.75%

The same as above

1,000,000

1.80%

The same as above

3,500,000

2.00%

The same as above

D
110-7

A
B
C

111-1
(Green bond)

A
B

111-2

A
B
C

111-3
(Green bond)
111-4(Green bond)

A
B
C
D

111-5

A
B
C
D

111-6
(Green bond)A

B
C

October 2022 to
October 2029
October 2022 to
October 2032

(Concluded)- 147 - 147 -Issuance

Total Amount(US$
in Thousands)

CouponRate

Repayment andInterest Payment

Bullet repayment(callable on the 5th
anniversary of theissue date and every
anniversary thereafter);interest payableannually
The same as above

TrancheIssuance Period

109-1

-

September 2020 to
September 2060

US$1,000,000

2.70%

110-5

-

September 2021 toSeptember 2051

1,000,000

3.10%

US$ unsecuredbonds

18. RETIREMENT BENEFIT PLANS
a. Defined contribution plans
The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant
to the Act, the Company has made monthly contributions equal to 6% of each employee’s monthly salary
to employees’ pension accounts. Accordingly, the Company recognized expenses of NT$3,663,757
thousand and NT$3,028,282 thousand for the years ended December 31, 2022 and 2021, respectively.
b. Defined benefit plans
The Company has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits
based on an employee’s length of service and average monthly salary for the six-month period prior to
retirement. The Company contributes an amount equal to 2% of salaries paid each month to theirrespective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory
Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before theend of each year, the Company assesses the balance in the Funds. If the amount of the balance in theFunds is inadequate to pay retirement benefits for employees who conform to retirement requirements inthe next year, the Company is required to fund the difference in one appropriation that should be madebefore the end of March of the next year. The Funds are operated and managed by the government’s
designated authorities; as such, the Company does not have any right to intervene in the investments of
the Funds.
Amounts recognized in respect of these defined benefit plans were as follows:
Years Ended December 31
2022
2021
Current service cost
Net interest expense
Components of defined benefit costs recognized in profit or loss
Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net
interest expense)
Actuarial loss arising from experience adjustments- 148 - 148 -$

134,376
74,265
208,641(429,948)
1,413,760$

145,289
47,196
192,485(73,298)
94,278(Continued)

Years Ended December 31
2022
2021
Actuarial loss arising from changes in demographic
assumptions
Actuarial gain arising from changes in financial assumptions
Components of defined benefit costs recognized in othercomprehensive income
Total

$

(160,752)$

823,060$ 1,031,701

277,454(540,513)(242,079)$(49,594)(Concluded)

The pension costs of the aforementioned defined benefit plans were recognized in profit or loss by thefollowing categories:
Years Ended December 31
2022
2021
Cost of revenue
Research and development expenses
General and administrative expenses
Marketing expenses$ 135,125
55,632
15,1292,755$ 124,548
52,801
12,4302,706$ 208,641$ 192,485

The amounts arising from the defined benefit obligation of the Company were as follows:
December 31,
2022

December 31,
2021

Present value of defined benefit obligation
Fair value of plan assets$ 17,483,951(8,162,860)$ 16,585,442(5,548,563)

Net defined benefit liability$$ 11,036,879

9,321,091

Movements in the present value of the defined benefit obligation were as follows:
Years Ended December 31
2022
2021
Balance, beginning of year
Current service cost
Interest expense
Remeasurement:
Actuarial loss arising from experience adjustments
Actuarial loss arising from changes in demographic
assumptions
Actuarial gain arising from changes in financial assumptions
Benefits paid from plan assets
Benefits paid directly by the Company$ 16,585,442
134,376
120,791$ 16,980,277
145,289
66,664

1,413,760

94,278(160,752)(585,343)(24,323)

277,454(540,513)(431,817)(6,190)

Balance, end of year

$ 17,483,951$ 16,585,442- 149 - 149 -Movements in the fair value of the plan assets were as follows:
Years Ended December 31
2022
2021
Balance, beginning of year
Interest income
Remeasurement:
Return on plan assets (excluding amounts included in net
interest expense)
Contributions from employer
Benefits paid from plan assets$ 5,548,563
46,526$ 5,066,203
19,468429,948
2,723,166(585,343)

73,298821,411(431,817)

Balance, end of year

$ 8,162,860$ 5,548,563

The fair value of the plan assets by major categories at the end of reporting period was as follows:

Cash
Equity instruments
Debt instruments

December 31,
2022

December 31,
2021$ 1,337,893
4,696,909
2,128,058$ 1,000,961
2,951,835
1,595,767$ 8,162,860$ 5,548,563

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified
actuaries. The principal assumptions of the actuarial valuation were as follows:
Measurement Date
December 31,
December 31,
2022
2021
1.80%
4.00%

Discount rate
Future salary increase rate

0.75%
3.00%

Through the defined benefit plans under the R.O.C. Labor Standards Law, the Company is exposed to
the following risks:
1) Investment risk: The pension funds are invested in equity and debt securities, bank deposits, etc. The
investment is conducted at the discretion of the government’s designated authorities or under the
mandated management. However, under the R.O.C. Labor Standards Law, the rate of return on assets
shall not be less than the average interest rate on a two-year time deposit published by the local banks
and the government is responsible for any shortfall in the event that the rate of return is less than therequired rate of return.
2) Interest risk: A decrease in the government bond interest rate will increase the present value of thedefined benefit obligation; however, this will be partially offset by an increase in the return on thedebt investments of the plan assets.
Assuming a hypothetical decrease in interest rate at the end of the reporting period contributed to adecrease of 0.5% (and not below 0.0%) in the discount rate and all other assumptions were held
constant, the present value of the defined benefit obligation would increase by NT$766,692 thousand
and NT$780,460 thousand as of December 31, 2022 and 2021, respectively.

- 150 - 150 -3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the futuresalaries of plan participants. As such, an increase in the salary of the plan participants will increase
the present value of the defined benefit obligation.
Assuming the expected salary rate increases by 0.5% at the end of the reporting period and all otherassumptions were held constant, the present value of the defined benefit obligation would increase by
NT$746,933 thousand and NT$759,527 thousand as of December 31, 2022 and 2021, respectively.
The sensitivity analysis presented above may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one anotheras some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit
obligation has been calculated using the projected unit credit method at the end of the reporting period,
which is the same as that applied in calculating the defined benefit obligation liability.
The Company expects to make contributions of NT$2,832,093 thousand to the defined benefit plans in
the next year starting from December 31, 2022. The weighted average duration of the defined benefit
obligation is 9 years.

19. EQUITY
a. Capital stock

Authorized shares (in thousands)
Authorized capital
Issued and paid shares (in thousands)
Issued capital

December 31,
2022

December 31,
2021

28,050,000$ 280,500,000
25,930,380$ 259,303,805

28,050,000$ 280,500,000
25,930,380$ 259,303,805

A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive
dividends.
The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock
options.
On March 1, 2022, the Company issued employee restricted stocks awards (RSAs) for its employees in a
total of 1,387 thousand shares with a par value of NT$10 each. The aforementioned issuance of newshares was approved by the relevant authority and the registration has been completed. Refer to Note 26
for the information on RSAs.
On May 10, 2022, the Company’s Board of Directors resolved to cancel 1,387 thousand treasury shares.
Refer to Note 19(e) for the information.
As of the end of reporting period, 1,063,847 thousand ADSs of the Company were traded on the NYSE.
The number of common shares represented by the ADSs was 5,319,234 thousand shares (one ADS
represents five common shares).

- 151 - 151 -b. Capital surplus
The categories of uses and the sources of capital surplus based on regulations were as follows:
December 31,
2022

December 31,
2021$ 24,183,645
22,803,291
8,892,371$ 24,184,939
22,804,510
8,892,847

8,406,282
11,2758,406,282
11,275

4,229,892
311,863
53,680113,952
307,32240,475

438,029-$ 69,330,328$ 64,761,602

May be used to offset a deficit, distributed as
cash dividends, or transferred to sharecapitalAdditional paid-in capital
From merger
From convertible bonds
From difference between the consideration received and thecarrying amount of the subsidiaries’ net assets during actual
disposalDonations - donated by shareholders
May only be used to offset a deficit
From share of changes in equities of subsidiaries
From share of changes in equities of associates
Donations – unclaimed dividend
May not be used for any purpose
Employee restricted shares

If such capital surplus is distributed as transferred to share capital, it is limited to a certain percentage of
the Company’s paid-in capital each year.
c. Retained earnings and dividend policy
The Company’s Articles of Incorporation provide that, earnings distribution may be made on a quarterly
basis after the close of each quarter. Distribution of earnings by way of cash dividends should be approvedby the Company’s Board of Directors and reported to the Company’s shareholders in its meeting. When
allocating earnings, the Company shall first estimate and reserve the taxes to be paid, offset its losses, set
aside a legal capital reserve at 10% of the remaining earnings (until the accumulated legal capital reserve
equals the Company’s paid-in capital), then set aside a special capital reserve in accordance with relevantlaws or regulations or as requested by the authorities in charge. Any balance left over shall be allocatedaccording to relevant laws and the Company’s Articles of Incorporation.
The Company’s Articles of Incorporation also provide that profits of the Company may be distributed by
way of cash dividend and/or stock dividend. However, distribution of earnings shall be made preferably
by way of cash dividend. Distribution of earnings may also be made by way of stock dividend, provided
that the ratio for stock dividend shall not exceed 50% of the total distribution.

- 152 - 152 -The legal capital reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks
for the portion in excess of 25% of the paid-in capital if the Company incurs no loss.
Pursuant to existing regulations, the Company is required to set aside additional special capital reserve
equivalent to the net debit balance of the other components of stockholders’ equity, such as theaccumulated balance of foreign currency translation reserve, unrealized valuation gain or loss from fairvalue through other comprehensive income financial assets, gain or loss from changes in fair value ofhedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount tostockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit
balance reverses.
The appropriations of 2022, 2021 and 2020 quarterly earnings have been approved by the Company’s
Board of Directors in its meeting, respectively. The appropriations and cash dividends per share were as
follows:
Resolution Date of theCompany’s Board of
Directors in its meeting

Fourth Quarterof 2022
February 14,
2023

Third Quarterof 2022
November 8,
2022

Second Quarterof 2022
August 9,2022

First Quarterof 2022
May 10,2022

Special capital reserve
Cash dividends to shareholders
Cash dividends per share (NT$)$ 17,166,163$ 71,308,546$
2.75$ (31,910,353)$ 71,308,547$
2.75$ (12,002,798)$ 71,308,546$
2.75$ (15,541,054)$ 71,308,546$
2.75

Resolution Date of theCompany’s Board of
Directors in its meeting

Fourth Quarterof 2021
February 15,
2022

Third Quarterof 2021
November 9,
2021

Second Quarterof 2021
August 10,
2021

First Quarterof 2021
June 9,2021

Special capital reserve
Cash dividends to shareholders
Cash dividends per share (NT$)$ 3,304,303$ 71,308,546
$
2.75

$
710,169$ 71,308,547$
2.75$ 10,201,220$ 71,308,546$
2.75$ (6,287,050)$ 71,308,546$
2.75

Resolution Date of theCompany’s Board of
Directors in its meeting

Fourth Quarterof 2020
February 9,
2021

Third Quarterof 2020
November 10,
2020

Second Quarterof 2020
August 11,
2020

First Quarterof 2020
May 12,
2020

Special capital reserve
Cash dividends to shareholders
Cash dividends per share (NT$)$ 12,420,727$ 64,825,951$
2.5$ 5,501,351$ 64,825,951$
2.5$ 11,884,457$ 64,825,951$
2.5$ (2,694,841)$ 64,825,951$
2.5

The special capital reserve for 2022 is to be presented for approval in the Company’s shareholders’meeting to be held on June 6, 2023 (expected).

- 153 - 153 -d. Others
Changes in others were as follows:

Foreign
Currency
Translation
ReserveYear Ended December 31, 2022
Unrealized
Gain (Loss) on
Unearned
Financial
Stock-Based
Gain (Loss) on
Assets at
Employee
Hedging
FVTOCI
Instruments
Compensation

Balance, beginning of year
Exchange differences arising on translation offoreign operations
Unrealized gain (loss) on financial assets at
FVTOCI
Equity instruments
Cumulative unrealized gain (loss) of equity
instruments transferred to retained
earnings due to disposal
Transferred to initial carrying amount ofhedged items
Issuance of shares
Share-based payment expenses recognized
Share of other comprehensive income (loss)of subsidiaries and associates
Income tax effect$ (63,303,361)$

Balance, end of year

574,310$

120,536

$

Total

-

$ (62,608,515)

51,030,928

-

-

-

51,030,928-

18,979--18,979-(303,242)--(303,242)--(52,929)-(451,899)
266,746(52,929)(451,899)
266,746

529,132-(10,346,321)(79)

1,405,538
6,036-(8,411,651)
5,957$ (11,743,301)$ (10,056,353)(185,153)$ (20,505,626)

Foreign
Currency
Translation
ReserveYear Ended December 31, 2021
Unrealized
Gain (Loss) on
Unearned
Financial
Stock-Based
Gain (Loss) on
Assets at
Employee
Hedging
FVTOCI
Instruments
Compensation

Balance, beginning of year
Exchange differences arising on translation offoreign operations
Unrealized gain (loss) on financial assets at
FVTOCI
Equity instruments
Cumulative unrealized gain (loss) of equity
instruments transferred to retained
earnings due to disposal
Gain (loss) arising on changes in the fairvalue of hedging instruments
Transferred to initial carrying amount ofhedged items
Share of other comprehensive income (loss)of subsidiaries and associates
Income tax effect$ (57,001,627)$

Balance, end of year

$ (63,303,361)

2,321,754$$

1,479,181

-

$

$

Total

-

$ (54,679,873)(6,182,507)

-

-

-

(6,182,507)-

170,127--

170,127-(187,654)--(187,654)--(41,416)-(41,416)--

48,469-48,469(119,227)-(1,673,697)(56,220)

113,483--(1,679,441)(56,220)-$ (62,608,515)$

574,310$

120,536$

The aforementioned other equity includes the changes in other equities of the Company and theCompany’s share of its subsidiaries and associates.
e. Treasury stock
For the Company’s shareholders’ interests, the Company’s Board of Directors approved a share buyback
program on February 15, 2022 to repurchase 1,387 thousand shares. The Company has completed thisshare buyback program during the first quarter of 2022. On May 10, 2022, the Company’s Board of
Directors resolved to cancel the 1,387 thousand shares and set May 10, 2022 as the record date for capital
reduction. The registration for share cancellation was completed on May 20, 2022.

- 154 - 154 -20. NET REVENUE
a. Disaggregation of revenue from contracts with customers
Years Ended December 31
2022
2021

Product
Wafer
Others$ 1,989,174,117
263,146,444$ 1,402,118,668
172,627,213$ 2,252,320,561$ 1,574,745,881

Years Ended December 31
2022
2021

Geography
TaiwanUnited States
China
Europe, the Middle East and Africa
Japan
Others$ 210,470,783
1,488,848,778
245,168,746
123,767,140
119,099,336
64,965,778$ 203,963,760
1,011,932,438
164,552,063
89,010,064
71,920,856
33,366,700$ 2,252,320,561$ 1,574,745,881

The Company categorized the net revenue mainly based on the countries where the customers areheadquartered.
Years Ended December 31
2022
2021

Platform
High Performance Computing
Smartphone
Internet of Things
Automotive
Digital Consumer Electronics
Others$ 927,459,536
884,505,210
194,878,453
115,678,391
56,317,962
73,481,009$ 582,854,806
689,533,461
132,006,238
66,624,542
55,190,318
48,536,516$ 2,252,320,561$ 1,574,745,881

Years Ended December 31
2022
2021

Resolution
5-nanometer
7-nanometer
10-nanometer
16-nanometer
20-nanometer
28-nanometer
40/45-nanometer
65-nanometer
90-nanometer0.11/0.13 micron
0.15/0.18 micron
0.25 micron and above
Wafer revenue- 155 - 155 -$ 503,914,841
536,730,486
24,775
258,793,242
8,848,885
206,578,337
145,748,015
93,292,327
40,280,729
57,915,290
110,631,548
26,415,642$ 261,623,571
439,070,618
656,748
190,667,571
5,650,015
152,807,948
103,286,953
66,373,107
32,234,476
40,454,036
86,589,003
22,704,622$ 1,989,174,117$ 1,402,118,668

b. Contract balances

Contract liabilities (classified under accrued
expenses and other current liabilities)

December 31,
2022

December 31,
2021$ 62,380,554$ 33,951,838

January 1,
2021$

9,365,661

The changes in the contract liability balances primarily result from the timing difference between thesatisfaction of performance obligation and the customer’s payment.
The Company recognized revenue from the beginning balance of contract liability, which amounted to
NT$33,365,181 thousand and NT$8,737,297 thousand for the years ended December 31, 2022 and 2021,
respectively.
c. Temporary receipts from customers

Current portion (classified under accrued expenses and othercurrent liabilities)
Noncurrent portion (classified under other noncurrent liabilities)

December 31,
2022

December 31,
2021$ 107,723,580
168,399,207$ 30,612,702
155,381,485$ 276,122,787$ 185,994,187

The Company’s temporary receipts from customer are payments made by customers to the Company toretain the Company’s capacity. When the terms and conditions set forth in the agreements aresubsequently satisfied, the treatment of temporary receipts, either by refund or by accounts receivableoffsetting, will be determined by mutual consent.
d. Refund liabilities
Estimated sales returns and other allowances is made and adjusted based on historical experience and theconsideration of varying contractual terms. As of December 31, 2022 and 2021, the aforementioned
refund liabilities amounted to NT$50,980,669 thousand and NT$39,493,180 thousand (classified underaccrued expenses and other current liabilities), respectively.

21. INTEREST INCOME
Years Ended December 31
2022
2021
Interest income
Bank deposits
Financial assets at amortized cost

- 156 - 156 -$ 5,644,170
313,694$

927,754-$ 5,957,864$

927,75422. FINANCE COSTS
Years Ended December 31
2022
2021
Interest expense
Corporate bonds
Lease liabilities
Bank loans
OthersLess: Capitalized interest under property, plant and equipment$ 3,888,669
231,037279
1,228(880,807)$ 2,368,729
156,1179,854
21-$ 3,240,406$ 2,534,721

Information about capitalized interest is as follows:
Years Ended
December 31,
2022
Capitalization rate

0.72%-1.20%

23. OTHER GAINS AND LOSSES, NET
Years Ended December 31
2022
2021
Gain (loss) on financial instruments at FVTPL, net
Mandatorily measured at FVTPL
The accrual of expected credit loss of financial assets
Financial assets at amortized cost
Other gains, net$$

2,518,506$ (10,091,171)(10,341)
545,116

257,813

3,053,281$ (9,833,358)

24. INCOME TAX
a. Income tax expense recognized in profit or loss
Income tax expense consisted of the following:
Years Ended December 31
2022
2021
Current income tax expense
Current tax expense recognized in the current year
Income tax adjustments on prior years
Other income tax adjustments
Deferred income tax benefit
The origination and reversal of temporary differences
Investment tax credits

Income tax expense recognized in profit or loss

- 157 - 157 -$ 144,561,484(489,638)
205,529
144,277,375$ 86,705,704
160,565
151,34487,017,613(24,810,515)
4,676,707(20,133,808)(17,433,690)(5,621,745)(23,055,435)$ 124,143,567$ 63,962,178

A reconciliation of income before income tax and income tax expense recognized in profit or loss was asfollows:
Years Ended December 31
2022
2021
Income before tax$ 1,140,673,816$

660,502,191

Income tax expense at the statutory rate
Tax effect of adjusting items:
Nondeductible items in determining taxable income
Tax-exempt income
Additional income tax under the Alternative Minimum Tax Act
The origination and reversal of temporary differences
Income tax credits$$

132,100,438

12,804,635(157,955,934)
61,578,020(24,810,515)
4,676,707
124,427,676(489,638)
205,529

Income tax adjustments on prior years
Other income tax adjustments
Income tax expense recognized in profit or loss

228,134,763$

124,143,567

11,605,518(89,852,940)
32,852,688(17,433,690)(5,621,745)
63,650,269
160,565
151,344$

63,962,178

For the years ended December 31, 2022 and 2021, the Company applied a tax rate of 20% subject to the
R.O.C. Income Tax Law.
b. Deferred income tax balance
The analysis of deferred income tax assets and liabilities was as follows:

Deferred income tax assets
Temporary differences
Depreciation
Refund liability
Unrealized exchange losses
Unrealized loss on inventories
Net defined benefit liability
Investment tax credits
Investments in equity instruments at FVTOCI

Deferred income tax liabilities
Temporary differences
Unrealized exchange gains
Others- 158 - 158 -December 31,
2022

December 31,
2021$ 44,989,153
12,002,094
5,779,739
2,260,011
1,722,005
945,038
10,021$ 34,146,437
5,903,698
861,924
1,237,086
5,621,745
10,100$ 67,708,061$ 47,780,990$(908,273)$$(908,273)$ (1,848,966)(706,311)(1,142,655)

Deferred income tax assets
Temporary differences
Depreciation
Refund liability
Unrealized exchange losses
Unrealized loss on inventories
Net defined benefit liability
Investment tax credits
Investments in equity
instruments at FVTOCI

Deferred income tax liabilities
Temporary differences
Unrealized exchange gains
OthersDeferred income tax assets
Temporary differences
Depreciation
Refund liability
Investment tax credits
Net defined benefit liability
Unrealized loss on inventories
Investments in equity
instruments at FVTOCI

Deferred income tax liabilities
Temporary differences
Unrealized exchange gains
OthersBalance,
Beginning ofYear

Year Ended December 31, 2022
Recognized in
Other
Comprehensive
Profit or Loss
IncomeBalance,End of Year

$ 34,146,437
5,903,698
861,924
1,237,086
5,621,745$ 10,842,716
6,098,396
5,779,739
1,398,087(249,116)(4,676,707)

734,035-$ 44,989,153
12,002,094
5,779,739
2,260,011
1,722,005
945,038

10,100-(79)

10,021$ 47,780,990$ 19,193,115$

733,956$ 67,708,061$(706,311)(1,142,655)$

706,311234,382$-$(908,273)$ (1,848,966)$

940,693$-$(908,273)

Balance,
Beginning ofYear

Year Ended December 31, 2021
Recognized in
Other
Comprehensive
Profit or Loss
IncomeBalance,End of Year$ 18,723,852
3,719,427
1,341,960
826,666$ 15,422,585
2,184,271
5,621,745(75,825)
35,258(29,049)-$ 34,146,437
5,903,698
5,621,745
1,237,086
861,924

66,320-(56,220)

10,100$ 24,678,225$ 23,188,034$(85,269)$ 47,780,990$(866,452)(849,915)$

160,141(292,740)$-$$ (1,716,367)$(132,599)$-$ (1,848,966)$$(706,311)(1,142,655)

c. The deductible temporary differences for which no deferred income tax assets have been recognized
As of December 31, 2022 and 2021, the aggregate deductible temporary differences for which no deferredincome tax assets have been recognized amounted to NT$26,790,935 thousand and NT$66,431,255
thousand, respectively.

- 159 - 159 -d. Unused tax-exemption information
As of the end of reporting period, the profits generated from the following project of the Company are
exempt from income tax for a five-year period:
Tax-exemption Period
Construction and expansion of 20092018 to 2022

e. The information of unrecognized deferred income tax liabilities associated with investments
As of December 31, 2022 and 2021, the aggregate taxable temporary differences associated withinvestments in subsidiaries not recognized as deferred income tax liabilities amounted to
NT$222,682,649 thousand and NT$177,552,831 thousand, respectively.
f. Income tax examination
The tax authorities have examined income tax returns of the Company through 2020. All investment tax
credit adjustments assessed by the tax authorities have been recognized accordingly.

25. EARNINGS PER SHARE
Years Ended December 31
2022
2021
$
$

Basic EPS
Diluted EPS

39.20
39.20

$
$

23.01
23.01

EPS is computed as follows:
Years Ended December 31
2022
2021
Basic EPS
Net income available to common shareholders
Weighted average number of common shares outstanding used in
the computation of basic EPS (in thousands)
Basic EPS (in dollars)
Diluted EPS
Net income available to common shareholders
Weighted average number of common shares outstanding used in
the computation of basic EPS (in thousands)
Effects of all dilutive potential common shares (in thousands)
Weighted average number of common shares used in thecomputation of diluted EPS (in thousands)
Diluted EPS (in dollars)- 160 - 160 -$ 1,016,530,249$

25,929,190
39.20$ 596,540,013$

25,930,380
23.01$ 1,016,530,249$ 596,540,013

25,929,190
193

25,930,380-$

25,929,383
39.20

$

25,930,380
23.01

26. SHARE-BASED PAYMENT ARRANGEMENTS
a. Equity-settled share-based payment- RSAs
The RSAs in each year are as follows:

Resolution Date of the Company’s
shareholders in its meeting
Resolution Date of the Company’s Boardof Directors in its meeting
Issuance of stocks (in thousands)
Eligible employees
Grant date / Issuance date

2022 RSAs

2021 RSAs

June 8, 2022

July 26, 2021

February 14, 2023

February 15, 2022

2,110
Executive officers and nonexecutive officers
March 1, 2023

1,387
Executive officers
March 1, 2022

Vesting conditions of the aforementioned arrangement are as follow:
1) The RSAs granted to eligible employees can only be vested if the employee remains employed by the Company or the subsidiaries on the last date of eachvesting period;
 during the vesting period, the employee may not breach any agreement with the Company or thesubsidiaries or violate the Company’s work rules; and certain employee performance metrics and the Company’s or the subsidiaries’ businessperformance metrics are met.
2) The maximum percentage of granted RSAs that may be vested each year shall be as follows:
one-year anniversary of the grant: 50%; two-year anniversary of the grant: 25%; and three-year
anniversary of the grant: 25%; provided that the actual percentage and number of the RSAs to bevested in each year will be calculated based on the achievement of the Company’s businessperformance metrics.
3) For eligible executive officers of the Company: The maximum number of RSAs that may be vested
in each year will be set as 110%, among which 100% will be subject to a calculation based on the
Company’s relative Total Shareholder Return (”TSR”, including capital gains and dividends)
achievement to determine the number of RSAs to be vested; this number will be further subject to amodifier to increase or decrease up to 10% based on the Compensation Committee’s (rename toCompensation and People Development Committee from February 14, 2023) evaluation of theCompany’s Environmental, Social, and Governance (”ESG”) achievements. The number of shares so
calculated should be rounded down to the nearest integral.
The Company’s TSR relative to the
TSR of S&P 500 IT Index
Above the Index by X percentage points
Equal to the Index
Below the Index by X percentage points- 161 - 161 -Ratio of Shares to be Vested
50% + X * 2.5%, with the maximum of 100%50%
50% - X * 2.5%, with the minimum of 0%

4) For eligible employees who are not executive officers of the Company and the subsidiaries: The
number of RSAs to be vested in each year will be calculated in accordance with the below table basedon the Company’s audited consolidated financial statements for the year prior to the vesting year. The
number of shares so calculated should be rounded down to the nearest integral.

Revenue Growth Rate
Gross Margin
Return on Equity

Threshold
10%
50%
20%

Target15%
53%
25%

Weight1/3
1/3
1/3

Ratio of Shares to be Vested＜ Threshold: 0 %＝ Threshold: 50%≧ Target: 100%
Between threshold and target: as
calculated by interpolation
method5) Restrictions imposed on the employees’ rights in the RSAs before the vesting conditions are fulfilled: During each vesting period, no employee granted RSAs, except for inheritance, may sell, pledge,transfer, give to another person, create any encumbrance on, or otherwise dispose of, any shares
under the unvested RSAs.
 Before the vesting conditions are fulfilled, the attendance, proposal rights, speech rights, voting
rights and etc. shall be exercised by the engaged trustee/custodian on the employee’s behalf. Anyother shareholder rights including but not limited to the entitlement to any distribution regarding
dividends, bonuses and capital reserve, and the subscription right of the new shares issued for any
capital increase, are the same as those of holders of common shares of the Company.
6) Details of granted 2021 RSAs are as follows:
2021 RSAs
Number of
Stocks(In Thousands)
Balance, beginning of year
Issuance of stocks

1,387

Balance, end of year

1,387

Weighted-average fair value of RSAs (in dollars)$ 325.81

The 2021 RSAs is measured at fair value at grant date by using the binominal tree approach. Relevant
information is as follows:
2021 RSAs
March 1, 2022$
604
25.34%-28.28%
1-3 years
0.57%

Stock price at grant date (in dollars)
Expected price volatility
Expected option life
Risk-free interest rate

Refer to Note 27 for the compensation costs of the 2021 RSAs recognized by the Company.
On February 14, 2023, the Company’s Board of Directors approved the issuance of RSAs for year
2023 of no more than 6,249 thousand common shares. The grants will be made free of charge. The
actual number of shares to be issued will be resolved by the Board of Directors after the RSAs isapproved at the shareholders' meeting and by the competent authority.

- 162 - 162 -b. Cash-settled share-based payment arrangements
The cash-settled share-based payment arrangements in each year are as follows:

Resolution Date of the Company’s Boardof Directors in its meeting
Issuance of units (in thousands) (Note)
Grant date
Note:

2022 Plan

2021 Plan

February 14, 2023

February 15, 2022

400
March 1, 2023

236
March 1, 2022

One unit of the right represents a right to the market value of one the Company’s common sharewhen vested.

The vesting conditions and the ratio of units to be vested for key management personnel of the plan are
the same as the aforementioned 2021 RSAs.
The fair value of compensation costs for the cash-settled share-based payment was measured by using
binominal tree approach and will be measured at each reporting period until settlement. Relevant
information is as follows:
Years Ended
December 31,
2022
2021 Plan$
451
28.80%-32.19%
1-3 years
1.09%

Stock price at measurement date (in dollars)
Expected price volatility
Expected option life
Risk-free interest rate

Refer to Note 27 for the compensation costs of the cash-settled share-based payment recognized by theCompany. The liabilities under cash-settled share-based payment arrangement amounted to NT$30,757
thousand as of the end of reporting period.

27. ADDITIONAL INFORMATION OF EXPENSES BY NATURE
Years Ended December 31
2022
2021
a. Depreciation of property, plant and equipment and right-of-use
assetsRecognized in cost of revenue
Recognized in operating expenses
Recognized in other operating income and expenses$ 385,647,215
27,939,678
8,189$ 375,608,062
27,176,646
146,549$ 413,595,082$ 402,931,257$

6,069,729
2,637,232$

5,510,463
2,590,267$

8,706,961$

8,100,730

b. Amortization of intangible assets
Recognized in cost of revenue
Recognized in operating expenses- 163 - 163 -Years Ended December 31
2022
2021
c. Employee benefits expenses
Post-employment benefits
Defined contribution plans
Defined benefit plans$

Share-based payments
Equity-settled
Cash-settled

Other employee benefits

Employee benefits expense summarized by function
Recognized in cost of revenue
Recognized in operating expenses

3,663,757
208,641
3,872,398$

3,028,282
192,485
3,220,767

266,746
32,704299,450-

209,410,863

143,894,842$ 213,582,711$ 147,115,609$ 128,714,551
84,868,160$ 90,226,056
56,889,553$ 213,582,711$ 147,115,609

According to the Company’s Articles of Incorporation, the Company shall allocate compensation to directors
and profit sharing bonus to employees of the Company not more than 0.3% and not less than 1% of annual
profits during the period, respectively.
The Company accrued profit sharing bonus to employees based on a percentage of net income before income
tax, profit sharing bonus to employees and compensation to directors during the period; compensation to
directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after
the annual parent company only financial statements are authorized for issue, the differences are recorded
as a change in accounting estimate. Accrued profit sharing bonus to employees is illustrated below:
Years Ended December 31
2022
2021
Profit sharing bonus to employees$ 60,702,047$ 35,601,449

The Company’s profit sharing bonus to employees and compensation to directors for 2022, 2021 and 2020
had been approved by the Board of Directors of the Company, as illustrated below:

Resolution Date of the Company’s Board of
Directors in its meeting

Years Ended December 31
2022
2021
2020
February 14,
February 15,
February 9,
2023
2022
2021

Profit sharing bonus to employees
Compensation to directors$ 60,702,047$
690,128$ 35,601,449$
487,537$ 34,753,184$
509,753

There is no significant difference between the aforementioned approved amounts and the amounts charged
against earnings of 2022, 2021 and 2020, respectively.
The information about the appropriations of the Company’s profit sharing bonus to employees andcompensation to directors is available at the Market Observation Post System website.

- 164 - 164 -28. CASH FLOW INFORMATION
a. Non-cash transactions
Years Ended December 31
2022
2021
Additions of property, plant and equipment
Exchange of assets
Changes in payables to contractors and equipment suppliers
Transferred to initial carrying amount of hedged items
Capitalized interests$ 956,066,006(275,564)(57,334,833)(880,807)$ 783,332,395(3,256,517)
13,292,746(41,416)-

Payments for acquisition of property, plant and equipment$ 897,574,802$ 793,327,208

Additions of intangible assets
Changes in accrued expenses and other current liabilities$

7,271,305(591,434)$

9,278,760(280,676)

Payments for acquisition of intangible assets$

6,679,871$

8,998,084

LeasesModifications

Other Changes(Note)

Balance as ofDecember 31,
2022

b. Reconciliation of liabilities arising from financing activities
Non-cash Changes

Short-term loans
Bonds payable
Lease liabilities
Total

Foreign
Exchange
Movement

Balance as ofJanuary 1, 2022

Financing CashFlow

$ 114,921,333
312,183,409
20,333,476$ (111,959,992 )
60,930,472(2,076,495 )$(2,372,053 )6,071,821-$

11,135,244$(589,288 )
44,772231,037$$ 447,438,218$ (53,106,015 )$3,699,768$

11,135,244$(313,479 )$ 408,853,736

LeasesModifications

Other Changes(Note)

Balance as ofDecember 31,
2021

379,230,474
29,623,262

Non-cash Changes

Short-term loans
Bonds payable
Lease liabilities
Total

Note:

Foreign
Exchange
Movement

Balance as ofJanuary 1, 2021

Financing CashFlow

$ 175,659,726
173,050,745
19,859,208$ (50,538,933 )
139,571,843(1,622,246 )$(9,670,786 )(466,391 )-$

1,940,397$(528,674 )
27,212
156,117$ 114,921,333
312,183,409
20,333,476$ 368,569,679$$ (10,137,177 )$

1,940,397$(345,345 )$ 447,438,218

87,410,664

Other changes include discounts on short-term loans, amortization of bonds payable and financial cost of lease liabilities.

29. CAPITAL MANAGEMENTThe Company requires significant amounts of capital to build and expand its production facilities and acquire
additional equipment. In consideration of the industry dynamics, the Company manages its capital in amanner to ensure that it has sufficient and necessary financial resources to fund its working capital needs,
capital expenditures, research and development activities, dividend payments, debt service requirements andother business requirements associated with its existing operations over the next 12 months.

- 165 - 165 -30. FINANCIAL INSTRUMENTS
a. Categories of financial instruments

Financial assets
FVTPL (Note 1)
FVTOCI (Note 2)
Amortized cost (Note 3)

Financial liabilities
FVTPL (Note 4)
Amortized cost (Note 5)

December 31,
2022

December 31,
2021

$

$

552,255
8,340,347
903,070,406

145,280
5,198,309
586,299,180$ 911,963,008$ 591,642,769$

17,4681,161,623,982$$ 1,161,641,450$ 1,027,087,189

636,472
1,026,450,717

Note 1: Financial assets mandatorily measured at FVTPL.
Note 2: Including notes and accounts receivable (net) and equity investments.
Note 3: Including cash and cash equivalents, financial assets at amortized cost, notes and accounts
receivable (including related parties), other receivables, refundable deposits, and temporary
payments (classified under other current assets and other noncurrent assets).
Note 4: Held for trading.
Note 5: Including short-term loans, accounts payable (including related parties), payables to contractors
and equipment suppliers, cash dividends payable, accrued expenses and other current liabilities,
bonds payable, guarantee deposits and other noncurrent liabilities.
b. Financial risk management objectives
The Company manages its exposure to foreign currency risk, interest rate risk, equity price risk, credit
risk and liquidity risk with the objective to reduce the potentially adverse effects the market uncertainties
may have on its financial performance.
The plans for material treasury activities are reviewed by the Audit Committees (rename to Audit andRisk Committee from February 14, 2023) and/or Board of Directors in accordance with procedures
required by relevant regulations or internal controls. During the implementation of such plans, theCompany must comply with certain treasury procedures that provide guiding principles for overall
financial risk management and segregation of duties.
c. Market risk
The Company is exposed to the financial market risks, primarily changes in foreign currency exchange
rates, interest rates and equity investment prices. A portion of these risks is hedged.
Foreign currency risk
Substantially the Company’s sales is denominated in U.S. dollars and over half of its capital expenditures
are denominated in currencies other than NT dollars, primarily in U.S. dollars, Japanese yen and Euros.
As a result, any significant fluctuations to its disadvantage in the exchanges rate of NT dollar against suchcurrencies, in particular a weakening of U.S. dollar against NT dollars, would have an adverse impact on- 166 - 166 -the revenue and operating profit as expressed in NT dollar. The Company uses foreign currency derivative
contracts, such as currency forwards or currency swaps, to protect against currency exchange rate risks
associated with non-NT dollar-denominated assets and liabilities and certain forecasted transactions.
These hedges reduce, but do not entirely eliminate, the effect of foreign currency exchange rate
movements on the assets and liabilities.
Based on a sensitivity analysis performed on the Company’s total monetary assets and liabilities for theyears ended December 31, 2022 and 2021, a hypothetical adverse foreign currency exchange rate changeof 10% would have decreased its net income by NT$1,649,664 thousand and NT$1,196,014 thousand,respectively, after taking into account hedges and offsetting positions.
Interest rate risk
The Company is exposed to interest rate risks primarily in relation to its bank deposits and bank loans.
Changes in interest rates affect the interest earned on the Company’s bank deposits, as well as the interest
paid on its bank loans. Because all of the Company’s bonds issued are fixed-rate and measured atamortized cost, changes in interest rates would not affect the future cash flows or the carrying amount.
Other price risk
The Company is exposed to equity price risk arising from financial assets at FVTOCI.
Assuming a hypothetical decrease of 10% in prices of the equity investments at the end of the reporting
period for the years ended December 31, 2022 and 2021, the other comprehensive income would havedecreased by NT$89,297 thousand and NT$87,841 thousand, respectively.
d. Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial losses to the Company. The Company is exposed to credit risks from operating activities,
primarily accounts receivable, and from investing activities, primarily deposits, fixed-income investments
and other financial instruments with banks. Credit risk is managed separately for business related andfinancial related exposures. As of the end of the reporting period, the Company’s maximum credit risk
exposure is equal to the carrying amount of financial assets.
Business related credit risk
The Company’s accounts receivable are from its customers worldwide. The majority of the Company’s
outstanding accounts receivable are not covered by collaterals or guarantees. While the Company has
procedures to monitor and manage credit risk exposure on accounts receivable, there is no assurance suchprocedures will effectively eliminate losses resulting from its credit risk. This risk is heightened during
periods when economic conditions worsen.
As of December 31, 2022 and 2021, the Company’s ten largest customers accounted for 69% and 67%
of accounts receivable, respectively. The Company considers the concentration of credit risk for theremaining accounts receivable not material.
Financial credit risk
The Company mitigates its financial credit risk by selecting counterparties with investment-grade credit
ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors andreviews the limit applied to counterparties and adjusts the limit according to market conditions and thecredit standing of the counterparties.

- 167 - 167 -The Company assesses the 12-month expected credit loss and lifetime expected credit loss based on theprobability of default and loss given default provided by external credit rating agencies. The current credit
risk assessment policies are as follows:

Category
Performing
Doubtful
In default
Write-off

Expected
Credit Loss
Ratio

Basis for Recognizing
Expected Credit Loss

Description
Credit rating is investment grade on
valuation date
Credit rating is non-investment grade
on valuation date
Credit rating is CC or below on
valuation date
There is evidence indicating that the
debtor is in severe financial
difficulty and the Company has no
realistic prospect of recovery

12 months expected credit
loss
Lifetime expected credit
loss-not credit impaired
Lifetime expected credit
loss-credit impaired
Amount is written off

0-0.09%-For the years ended December 31, 2022, the expected credit loss increased NT$10,341 thousand. Thechanges were mainly due to increased investment amount and adjusted investment portfolio.
e. Liquidity risk management
The objective of liquidity risk management is to ensure the Company has sufficient liquidity to fund its
business operations over the next 12 months. The Company manages its liquidity risk by maintaining
adequate cash and cash equivalents and sufficient cost-efficient funding.
The table below summarizes the maturity profile of the Company’s financial liabilities based oncontractual undiscounted payments, including principal and interest.
Less Than
1 Year

1-3 Years

More Than
5 Years

3-5 Years

Total

December 31, 2022
Non-derivative financial liabilities
Accounts payable (including relatedparties)
Payables to contractors andequipment suppliers
Accrued expenses and other current
liabilities
Bonds payable
Lease liabilities (including thoseclassified under accrued expenses
and other current liabilities)(Note)
Others$58,783,586

$

-

$

-

$

-

$

58,783,586

200,046,018

-

-

-

200,046,018

202,361,596
22,247,420

39,372,048

160,243,071

228,241,509

202,361,596
450,104,048

2,356,314
485,794,934

4,358,739
166,266,719
209,997,506

4,163,558
10,518,481
174,925,110

21,795,680
783,181250,820,370

32,674,291
177,568,381
1,121,537,920

74,107,091(74,837,641)(730,550)---

74,107,091(74,837,641)(730,550)$ 485,064,384$ 209,997,506$ 174,925,110$ 250,820,370$ 1,120,807,370

Derivative financial instruments
Forward exchange contracts
Outflows
Inflows(Continued)- 168 - 168 -Less Than
1 Year

1-3 Years

More Than
5 Years

3-5 Years

Total

December 31, 2021
Non-derivative financial liabilities
Short-term loans
Accounts payable (including relatedparties)
Payables to contractors andequipment suppliers
Accrued expenses and other current
liabilities
Bonds payable
Lease liabilities (including thoseclassified under accrued expenses
and other current liabilities)(Note)
Others$ 114,767,034

$

-

$

-

$

-

$ 114,767,034

48,892,095

-

-

-

48,892,095

136,212,285

-

-

-

136,212,285

105,867,008
7,705,092

31,050,325

87,631,487

248,960,671

105,867,008
375,347,575

1,740,990
415,184,504

3,129,411
164,991,929
199,171,665

2,868,048
90,499,535

13,739,223
262,699,894

21,477,672
164,991,929
967,555,598

132,106,866(132,001,910)
104,956---

132,106,866(132,001,910)
104,956$ 415,289,460$ 199,171,665

90,499,535$ 262,699,894$ 967,660,554

Derivative financial instruments
Forward exchange contracts
Outflows
Inflows$(Concluded)
Note:

Information about the maturity analysis for lease liabilities more than 5 years:
5-10 Years

10-15 Years

15-20 Years

More Than
20 Years

Total

December 31, 2022
Lease liabilities$

9,497,599$

7,291,192$

4,222,404$

784,485$

21,795,680$

6,665,672$

4,994,134$

1,959,928$

119,489$

13,739,223

December 31, 2021
Lease liabilities

f. Fair value of financial instruments
1) Fair value measurements recognized in the parent company only balance sheets
Fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value
is observable:
 Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active
markets for identical assets or liabilities;
 Level 2 fair value measurements are those derived from inputs other than quoted prices included
within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) orindirectly (i.e. derived from prices); and Level 3 fair value measurements are those derived from valuation techniques that include inputs
for the asset or liability that are not based on observable market data (unobservable inputs).

- 169 - 169 -2) Fair value of financial instruments that are measured at fair value on a recurring basis
Fair value hierarchy
The following table presents the Company’s financial assets and liabilities measured at fair value on
a recurring basis:

Level 2

December 31, 2022
Level 3

Total

Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts$

552,255$-$

552,255$

7,325,606$ 1,014,741-$ 1,014,741
7,325,606$ 7,325,606$ 1,014,741$ 8,340,347

$

$

$

Financial assets at FVTOCI
Investments in equity instruments
Non-publicly traded equity investments
Notes and accounts receivable, net

Financial liabilities at FVTPL
Held for trading
Forward exchange contracts

17,468

Level 2-

December 31, 2021
Level 3

17,468

Total

Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts$

145,280$-$

145,280$

4,199,909$

998,400-$

998,400
4,199,909$ 4,199,909$

998,400$ 5,198,309

$

$

-

Financial assets at FVTOCI
Investments in equity instruments
Non-publicly traded equity investments
Notes and accounts receivable, net

Financial liabilities at FVTPL
Held for trading
Forward exchange contracts- 170 - 170 -

636,472$

636,472

Reconciliation of Level 3 fair value measurements of financial assets
The financial assets measured at Level 3 fair value were equity investments classified as financial
assets at FVTOCI. Reconciliations for the years ended December 31, 2022 and 2021 were as follows:
Years Ended December 31
2022
2021
Balance, beginning of year
Recognized in other comprehensive income
Disposals and proceeds from return of capital of investments$

998,400
18,979(2,638)$834,830
170,127(6,557)

Balance, end of year

$ 1,014,741$

998,400

Valuation techniques and assumptions used in Level 2 fair value measurement
The fair values of financial assets and financial liabilities are determined as follows: Forward exchange contracts are measured using forward exchange rates and discount rates
derived from quoted market prices.
 The fair value of accounts receivable classified as at FVTOCI is determined by the present valueof future cash flows based on the discount rate that reflects the credit risk of counterparties.
Valuation techniques and assumptions used in Level 3 fair value measurement
The fair values of non-publicly traded equity investments are mainly determined by using the asset
approach and market approach.
The asset approach takes into account the net asset value measured at the fair value by independent
parties.
The market approach is used to arrive at their fair values, for which the recent financing activities ofinvestees, the market transaction prices of the similar companies and market conditions are
considered.
3) Fair value of financial instruments that are not measured at fair value
Except as detailed in the following table, the Company considers that the carrying amounts offinancial instruments in the parent company only financial statements that are not measured at fairvalue approximate their fair values.
Fair value hierarchy
The table below sets out the fair value hierarchy for the Company’s financial assets and liabilities
which are not required to be measured at fair value:
December 31, 2022
Carrying
Level 2
AmountFair Value
Financial assets
Financial assets at amortized costs
Commercial paper$ 48,732,476- 171 - 171 -$ 48,882,028(Continued)

December 31, 2022
Carrying
Level 2
AmountFair Value
Financial liabilities
Financial liabilities at amortized costs
Bonds payable$ 379,230,474$ 349,956,767(Concluded)

December 31, 2021
Carrying
Level 2
AmountFair Value
Financial liabilities
Financial liabilities at amortized costs
Bonds payable$ 312,183,409$ 310,632,379

Valuation techniques and assumptions used in Level 2 fair value measurement
The fair value of the Company’s bonds payable is determined by quoted market prices provided bythird party pricing services.
The fair value of commercial paper is determined by the present value of future cash flows based on
the discounted curves that are derived from the quoted market prices.

31. RELATED PARTY TRANSACTIONSThe significant transactions between the Company and its related parties, other than those disclosed in othernotes, are summarized as follows:a. Related party name and categories
Related Party Name

Related Party Categories

TSMC China
TSMC Nanjing
TSMC Arizona
VisEra Tech
TSMC North America
TSMC Europe
TSMC JDCTSMC 3DIC
JASM
TSMC Japan
TSMC Korea
TSMC Design Technology Canada Inc. (TSMC Canada)
TSMC Technology, Inc. (TSMC Technology)
WaferTech, LLC (WaferTech)
GUC
VIS
SSMC
Xintec- 172 - 172 -Subsidiaries
Subsidiaries
Subsidiaries
Subsidiaries
Subsidiaries
Subsidiaries
Subsidiaries
Subsidiaries
Subsidiaries
Subsidiaries
Subsidiaries
Indirect Subsidiaries
Indirect Subsidiaries
Indirect Subsidiaries
Associates
Associates
Associates
Associates

b. Net revenue
Years Ended December 31
2022
2021
Item

Related Party Name/Categories

Net revenue from sale of goods

TSMC North America
Associates
Other subsidiaries

Net revenue from royalties

Subsidiaries
Associates$ 1,538,849,403
11,356,410
187,169$ 1,040,985,786
5,898,780
110,849$ 1,550,392,982$ 1,046,995,415$

13
266,952$

243
223,196$

266,965$

223,439

c. Purchases
Years Ended December 31
2022
2021
Related Party Categories
Subsidiaries
Associates$ 81,923,311
6,422,831$ 56,134,681
7,569,787$ 88,346,142$ 63,704,468

December 31,
2022

December 31,
2021$ 171,738,863
1,300,302
5,647$ 137,956,681
391,647
4,046$ 173,044,812$ 138,352,374$

6,184,798
75,61029,03068,487$5,000,563
59,935
105,396
61,531$

6,357,925$

5,227,425

d. Receivables from related parties

Item

Related Party Name/Categories

Receivables from relatedparties

TSMC North America
Associates
Other subsidiaries

Other receivables from relatedparties

TSMC North America
TSMC Nanjing
Other subsidiaries
Associates- 173 - 173 -e. Other noncurrent assets

Item

Related Party Name

Temporary payments

JASM

December 31,
2022

December 31,
2021$ 6,925,782$

December 31,
2022

December 31,
2021$

4,105,919
2,296,083
1,047,374
2,006,484
595,184$

2,761,080
1,802,314
725,261
1,687,157
711,861$ 10,051,044$

7,687,673

December 31,
2022

December 31,
2021$

961,365
111,834$

1,389,861
726,350$

1,073,199$

2,116,211-

f. Payables to related parties

Item

Related Party Name/Categories

Payables to related parties

TSMC Nanjing
TSMC China
XintecOther subsidiaries
Other associatesg. Accrued expenses and other current liabilities

Item

Related Party Name/Categories

Other payables and othercurrent liabilities

Subsidiaries
Associates

Temporary receipts

TSMC North America$ 97,634,360$ 20,650,062

December 31,
2022

December 31,
2021$ 142,132,113$ 127,361,560

h. Other noncurrent liabilities

Item

Related Party Name

Temporary receipts

TSMC North America- 174 - 174 -i.

Disposal of property, plant and equipment
Proceeds
Years Ended December 31
2022
2021
Related Party Name/Categories
TSMC Nanjing
Other subsidiaries
Associates$ 673,945
102,099
100$ 102,721
21,103-$ 776,144$ 123,824

Gains
Years Ended December 31
2022
2021
Related Party Name/Categories
TSMC Nanjing
Other subsidiaries
Associates$ 302,234
50,882
100$

24,76538,931-$ 353,216$

63,696

Deferred Gains from Disposal of
Property, Plant and Equipment
December 31,
December 31,
2022
2021
Related Party Name/Categories
TSMC Nanjing
WaferTech
Other subsidiaries$

99,27275,44036,596$ 211,308
j.

$50,81632,11635,667$ 118,599

OthersYears Ended December 31
2022
2021
Item

Related Party Name/Categories

Manufacturing expenses

Associates
Subsidiaries

Research and development
expenses

Subsidiaries
Associates- 175 - 175 -$ 5,997,687
21,662$ 5,445,819
20,791$ 6,019,349$ 5,466,610$ 5,264,358
258,008$ 3,719,115
252,054$ 5,522,366$ 3,971,169(Continued)

Years Ended December 31
2022
2021
Marketing expenses commission

TSMC Europe
Other subsidiaries$

541,200
618,880$

465,783
517,205$ 1,160,080$

982,988(Concluded)

The sales prices and payment terms to related parties were not significantly different from those of sales
to third parties. For other related party transactions, price and terms were determined in accordance withmutual agreements.
The Company leased factory and office from associates. The lease terms and prices were both determinedin accordance with mutual agreements. The rental expenses were paid to associates monthly; the related
expenses were both classified under manufacturing expenses.
The Company deferred the disposal gain or loss derived from sales of property, plant and equipment torelated parties using equity method, and then recognized such gain or loss over the depreciable lives ofthe disposed assets.
k. Compensation of key management personnel
The compensation to directors and other key management personnel were as follows:
Years Ended December 31
2022
2021
Short-term employee benefits
Post-employment benefits
Share-based payments$ 4,221,962
2,618
286,227$ 2,768,725
2,458-$ 4,510,807$ 2,771,183

The compensation to directors and other key management personnel were determined by theCompensation Committee (rename to Compensation and People Development Committee from February
14, 2023) of the Company in accordance with the individual performance and the market trends.

32. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS
Significant contingent liabilities and unrecognized commitments of the Company as of the end of thereporting period, excluding those disclosed in other notes, were as follows:a. Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C.
Government or its designee approved by the Company can use up to 35% of the Company’s capacity
provided the Company’s outstanding commitments to its customers are not prejudiced. The term of thisagreement is for five years beginning from January 1, 1987 and is automatically renewed for successive
periods of five years unless otherwise terminated by either party with one year prior notice. As of the endof reporting period, the R.O.C. Government did not invoke such right.

- 176 - 176 -b. Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30,
1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in
Singapore. The Company’s equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips
spun-off its semiconductor subsidiary which was renamed as NXP B.V. Further, the Company and NXP
B.V. purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the
Shareholders Agreement on November 15, 2006. After the purchase, the Company and NXP B.V.
currently own approximately 39% and 61% of the SSMC shares, respectively. The Company and NXP
B.V. are required, in the aggregate, to purchase at least 70% of SSMC’s capacity, but the Company alone
is not required to purchase more than 28% of the capacity. If any party defaults on the commitment andthe capacity utilization of SSMC falls below a specific percentage of its capacity, the defaulting party isrequired to compensate SSMC for all related unavoidable costs. There was no default from theaforementioned commitment as of the end of reporting period.
c. In September 2022, Daedalus Prime LLC (“Daedalus”) filed complaints in the U.S. International Trade
Commission (“ITC”) and the U.S. District Court for the Eastern District of Texas alleging that theCompany, TSMC North America, and other companies infringe four U.S. patents. The ITC instituted aninvestigation in October 2022. The outcome cannot be determined and we cannot make a reliable estimateof the contingent liability at this time.
d. The Company entered into long-term purchase agreements of materials and supplies and agreements ofwaste disposal with multiple suppliers. The relative minimum fulfillment quantity and price are specified
in the agreements.
e. The Company entered into a long-term purchase agreement of equipment. The relative fulfillment
quantity and price are specified in the agreement.
f. The Company entered into long-term energy purchase agreements with multiple suppliers. The relative
fulfillment period, quantity and price are specified in the agreements.
g. As of the end of reporting period, the Company provided endorsement guarantees of NT$2,555,730
thousand to its subsidiary, TSMC North America, in respect of providing endorsement guarantees foroffice leasing contract.
h. As of the end of reporting period, the Company provided a NT$230,347,500 thousand endorsement
guarantee for its subsidiary, TSMC Global, in respect of its issuance of US dollar-denominated seniorunsecured corporate bonds.
i.

As of the end of reporting period, the Company provided a NT$369,551,715 thousand endorsement
guarantee for its subsidiary, TSMC Arizona, in respect of its issuance of US dollar-denominated seniorunsecured corporate bonds and operation needs.

j.

The Company entrusted financial institutions to open performance guarantee mainly for import andexport of goods, lease agreement and energy purchase agreement. As of December 31, 2022 andDecember 31, 2021, the aforementioned guarantee amounted to NT$7,623,262 thousand andNT$4,954,798 thousand, respectively.

- 177 - 177 -33. EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND
LIABILITIESThe following information was summarized according to the foreign currencies other than the functional
currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into thefunctional currency. The significant financial assets and liabilities denominated in foreign currencies were as
follows:
Foreign
Currencies(In Thousands)

Exchange Rate
(Note)

Carrying
Amount(In Thousands)$ 13,953,942
7,863
124,526,582

30.71332.8380.2331$ 428,567,422
258,21129,027,146

14,450,017
2,352,220
125,984,842

30.71332.8380.2331

443,803,373
77,242,213
29,367,067

11,386,512
14,42010,673,383

27.67431.4600.2414315,110,347
453,666
2,576,555

11,851,225
3,494,588
109,729,158

27.67431.4600.2414

327,970,810
109,939,747
26,488,619

December 31, 2022
Financial assets
Monetary items
USD
EUR
JPY
Financial liabilities
Monetary items
USD
EUR
JPY
December 31, 2021
Financial assets
Monetary items
USD
EUR
JPY
Financial liabilities
Monetary items
USD
EUR
JPY
Note:

Exchange rate represents the number of NT dollar for which one foreign currency could beexchanged.

Please refer to the parent company only statements of comprehensive income for the total of realized andunrealized foreign exchange gain and loss for the years ended December 31, 2022 and 2021, respectively.
Since there were varieties of foreign currency transactions of the Company, the Company was unable todisclose foreign exchange gain (loss) towards each foreign currency with significant impact.

- 178 - 178 -34. ADDITIONAL DISCLOSURES
Following are the additional disclosures required by the Securities and Futures Bureau for the Company:
a. Financings provided: See Table 1 attached;b. Endorsement/guarantee provided: See Table 2 attached;c. Marketable securities held (excluding investments in subsidiaries and associates): See Table 3 attached;d. Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of
the paid-in capital: See Table 4 attached;e. Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in
capital: See Table 5 attached;f. Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in
capital: None;g. Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital:
See Table 6 attached;h. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See
Table 7 attached;i.

Information about the derivative financial instruments transaction: See Notes 7 and 9;j.

Names, locations, and related information of investees over which the Company exercises significant
influence (excluding information on investment in mainland China): See Table 8 attached;k. Information on investment in mainland China
1) The name of the investee in mainland China, the main businesses and products, its issued capital,
method of investment, information on inflow or outflow of capital, percentage of ownership, income(losses) of the investee, share of profits/losses of investee, ending balance, amount received as
dividends from the investee, and the limitation on investee: See Table 9 attached.
2) Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized
gain or loss, and other related information which is helpful to understand the impact of investment in
mainland China on financial reports: See Note 31.
l.

Information of major shareholder
List of all shareholders with ownership of 5 percent or greater showing the names and the number ofshares and percentage of ownership held by each shareholder: See Table 10 attached.

35. OPERATING SEGMENTS INFORMATIONThe Company has provided the operating segments disclosure in the consolidated financial statements.

- 179 - 179 -Yes$74,200,110(RMB 8,800,000)&(USD 1,150,000)$
74,200,110(RMB 8,800,000)&(USD 1,150,000)$
45,211,510(RMB 7,800,000)&(USD
350,000)

Nature for Financing- 180- 180 - -0.75%-1.50% The need for short-termand long-term
financingEnding Balance
Amount Actually(Foreign Currencies
Drawn
Interest Ratein Thousands)(Foreign Currencies in(Note 2)Thousands)

The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.

TSMC Nanjing Other receivables from
related parties

Maximum
Balance for the
Period (Foreign
Currencies inThousands) (Note 2)

Note 2:

1

Counterparty

RelatedParty

The aggregate amount available for lending to TSMC Nanjing from TSMC China shall not exceed the net worth of TSMC China.

TSMC China

No.

Financial Statement
Account

Note 1:

FinancingCompany

FINANCINGS PROVIDEDFOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Investees$

Transaction
Amounts-

Operating capital

Reason for
Financing$-

Allowance for Bad
Debt

-

Item

$

Value

Collateral-$

87,432,993$

87,432,993

Financing Limits
Financingfor Each
Company’s Total
Borrowing
Financing AmountCompany
Limits(Note 1)
(Note 1)TABLE 1

TSMC Japan1

The same parent
company

Subsidiary

TSMC Arizona

TSMC JDC

Subsidiary

Subsidiary

Nature ofRelationship

TSMC North
America
TSMC Global

Name

Maximum
Balancefor the Period(Foreign
Currencies inThousands)(Note 3)

-

-

-

-

0.01%

12.55%

7.82%

0.09%

336,399

736,413,299

736,413,299$ 736,413,299

Ratio ofMaximumEnding Balance
Amount of
Accumulated
Amount Actually
Endorsement/(Foreign
Endorsement/
Endorsement/
Drawn
Guarantee
Currencies in
Guarantee
Guarantee to Net(US$ inAmountThousands)
Collateralized by
Equity per
Thousands)
Allowable(Note 3)
Properties
Latest Financial(Notes 1 and 2)
Statements$
2,555,730 $
2,555,730 $
2,555,730 $( US$
83,213 ) ( US$83,213 ) ( US$83,213 )736,413,299
230,347,500
230,347,500
230,347,500( US$ 7,500,000 ) ( US$ 7,500,000 ) ( US$ 7,500,000 )
736,413,299
369,551,715
369,551,715
246,699,701( US$12,032,420 ) ( US$12,032,420 ) ( US$ 8,032,420 )
336,399
307,692
307,692
307,692( JPY 1,320,000 ) ( JPY 1,320,000 ) ( JPY 1,320,000 )$ 736,413,299

Limits onEndorsement/
Guarantee
AmountProvided to Each
Guaranteed
Party(Notes 1 and 2)- 181- 181 - -Note 3: The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.

Note 2: The total amount of the endorsement/guarantee provided by TSMC Japan to TSMC JDC shall not exceed two hundred and fifty percent (250%) of TSMC Japan’s net worth.

No

Yes

Yes

Yes

Guarantee
Provided byParentCompany

Note 1: The total amount of the endorsement/guarantee provided by TSMC to TSMC North America, TSMC Global and TSMC Arizona shall not exceed twenty-five percent (25%) of TSMC’s net worth.

TSMC

0

Endorsement/
No.
Guarantee Provider

Guaranteed Party

ENDORSEMENTS/GUARANTEES PROVIDEDFOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Investees

No

No

No

No

No

No

No

No

Guarantee
Guarantee
Provided toProvided by Subsidiaries
A Subsidiary in Mainland
China

TABLE 2

TSMC Global

TSMC Partners

TSMC

Held Company Name-

Corporate bondMorgan Stanley

Bank of America Corporation
Citigroup Inc.
Wells Fargo & Company
The Goldman Sachs Group, Inc.
JPMorgan Chase & Co.
Mitsubishi UFJ Financial Group, Inc.
HSBC Holdings plc
AbbVie Inc.
Sumitomo Mitsui Financial Group, Inc.
Banco Santander, S.A.
Metropolitan Life Global Funding I
Athene Global Funding
Oracle Corporation
Royal Bank of Canada
Principal Life Global Funding II
The Toronto-Dominion Bank
Equitable Financial Life Global Funding
BNP Paribas SA-

China Walden Venture Investments II, L.P.
China Walden Venture Investments III, L.P.
Tela Innovations
Movella Inc.

-

United Industrial Gases Co., Ltd.
Global Investment Holding Inc.
Crimson Asia Capital--

Non-publicly traded equity investments
Shin-Etsu Handotai Taiwan Co., Ltd.

Non-publicly traded equity investments
Shanghai Walden Venture Capital Enterprise-

Relationship with the Company

Commercial paper
Taiwan Power Company
CPC Corporation, Taiwan
Nan Ya Plastics Corporation
Formosa Petrochemical Corporation
Formosa Chemicals & Fibre Corporation
Formosa Plastics Corporation

Marketable Securities Type and Name

MARKETABLE SECURITIES HELD
December 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Investees- 182- 182 - -Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial assets at fair value through othercomprehensive income〃〃〃〃

Financial assets at fair value through othercomprehensive income〃〃〃

Financial assets at amortized cost
〃
〃
〃
〃
〃

Financial Statement Account

-

-

6,942
6,333

-

21,23010,442-

10,500

2,950
750
450
300
250
200

Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

US$
US$

US$

$

76,626
61,49359,73551,43950,62932,94932,402
27,892
27,65826,257
24,40823,191
21,865
21,423
19,76819,51018,97918,931

83,242

18,454
13,602-

26,441

443,461
97,772-473,508

29,335,729
7,458,936
4,476,301
2,985,385
2,485,666
1,990,459

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

9
4
22
9

6

10
6
1

7

N/A
N/A
N/A
N/A
N/A
N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

US$
US$

US$

$

76,626
61,49359,73551,43950,62932,94932,402
27,892
27,65826,257
24,40823,191
21,865
21,423
19,76819,51018,97918,931

83,242

18,454
13,602-

26,441

443,461
97,772-473,508

29,421,735
7,481,537
4,492,086
2,994,951
2,494,159
1,997,560

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TABLE 3

TSMC Global

Held Company Name-

Fédération des caisses Desjardins du Québec
Sumitomo Mitsui Trust Bank, Limited
Guardian Life Global Funding
Mizuho Financial Group, Inc.
Deutsche Bank AG - New York Branch
Hyundai Capital America
Volkswagen Group of America Finance, LLC
Nationwide Building Society
NatWest Markets Plc
Bank of Montreal
Protective Life Global Funding
BPCE SA
Capital One Financial Corporation
ING Groep N.V.
NTT Finance Corporation
Svenska Handelsbanken AB (publ)Société Générale Société anonyme
The Bank of Nova Scotia
Credit Suisse AG, New York BranchApple Inc.
Macquarie Group Limited
Santander UK Group Holdings plc
Credit Agricole SA London Branch
Toyota Motor Credit Corporation
Standard Chartered PLC
UBS Group AG
The Bank of New York Mellon Corporation
Barclays PLC
Fifth Third Bancorp
National Securities Clearing Corporation
Banque Fédérative du Crédit Mutuel Société anonyme
Lloyds Banking Group plc
AT&T Inc.
S&P Global Inc.
Nomura Holdings, Inc.
U.S. Bancorp
Verizon Communications Inc.
Citizens Bank, National Association
Enel Finance International N.V.
Roper Technologies, Inc.
Equifax Inc.
Equinor ASA
Amazon.com, Inc.
Merck & Co., Inc.
Bristol-Myers Squibb Company
GSK Consumer Healthcare Capital US LLCAIG Global Funding
New York Life Global Funding

Relationship with the Company

Nordea Bank Abp

Marketable Securities Type and Name

- 183
- 183 - -Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
18,086
17,15816,412
16,16916,03815,807
15,613
15,375
15,314
15,224
15,045
14,691
14,125
14,05013,744
13,50813,327
12,914
12,688
12,233
11,654
11,628
11,611
11,60911,541
11,473
11,282
11,263
10,917
10,878
10,738
10,533
10,528
10,246
10,195
9,781
9,765
9,364
9,104
9,035
8,925
8,832
8,820
8,616
8,441
8,314
8,209
8,192

18,263
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

18,086
17,15816,412
16,16916,03815,807
15,613
15,375
15,314
15,224
15,045
14,691
14,125
14,05013,744
13,50813,327
12,914
12,688
12,233
11,654
11,628
11,611
11,60911,541
11,473
11,282
11,263
10,917
10,878
10,738
10,533
10,528
10,246
10,195
9,781
9,765
9,364
9,104
9,035
8,925
8,832
8,820
8,616
8,441
8,314
8,209
8,192

18,263

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Truist Financial Corporation
International Bank for Reconstruction and Development
KfW
UnitedHealth Group Incorporated
AstraZeneca Finance LLC
Canadian Imperial Bank of Commerce
Inter-American Development Bank
Suncorp-Metway Limited
Great-West Lifeco U.S. Finance 2020, Lp
Lowe's Companies, Inc.
Northwestern Mutual Global Funding
Chevron Corporation
Fidelity National Information Services, Inc.
AstraZeneca PLC
Prudential Funding Corp.
John Deere Capital Corporation
Intuit Inc.
Cargill, Incorporated
Daimler Trucks Finance North America LLC
Roche Holdings, Inc.
The East Ohio Gas Company
Jackson National Life Global Funding
Danske Bank A/S
Ameren Corporation
Huntington Bancshares Incorporated
Discover Bank (New Castle, Delaware)
Exxon Mobil Corporation
Swedbank AB (publ)
Fox Corporation
ANZ New Zealand (Int'l) Limited
Exelon Corporation
Take-Two Interactive Software, Inc.
Macquarie Bank Limited
Scentre Group Trust 1
WEC Energy Group, Inc.
WPP Finance 2010
Huntington National BankIntercontinental Exchange, Inc.
UBS AG, London Branch
Pacific Life Global Funding II
Siemens Financieringsmaatschappij N.V.
The Charles Schwab Corporation
Alabama Power Company
Pioneer Natural Resources Company
ASB Bank Limited
Cox Communications, Inc.
Intel Corporation
Nutrien Ltd.

Relationship with the Company

American Express Company

Marketable Securities Type and Name

- 184
- 184 - -Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
7,851
7,608
7,594
7,504
7,477
7,443
7,346
7,315
7,287
7,135
6,853
6,838
6,619
6,500
6,447
6,437
6,421
6,378
6,367
6,339
6,333
6,283
6,149
5,960
5,865
5,864
5,749
5,733
5,630
5,604
5,591
5,576
5,541
5,525
5,498
5,459
5,415
5,388
5,387
5,359
5,302
5,292
5,263
5,254
5,239
5,112
5,109
5,048

8,037
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

7,851
7,608
7,594
7,504
7,477
7,443
7,346
7,315
7,287
7,135
6,853
6,838
6,619
6,500
6,447
6,437
6,421
6,378
6,367
6,339
6,333
6,283
6,149
5,960
5,865
5,864
5,749
5,733
5,630
5,604
5,591
5,576
5,541
5,525
5,498
5,459
5,415
5,388
5,387
5,359
5,302
5,292
5,263
5,254
5,239
5,112
5,109
5,048

8,037

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Fiserv, Inc.
Five Corners Funding Trust
Penske Truck Leasing Co., L.P.
CVS Health Corporation
CGI Inc.
Brookfield Finance Inc.
Thermo Fisher Scientific Inc.
Virginia Electric and Power Company
NextEra Energy Capital Holdings, Inc.
W. P. Carey Inc.
HP Inc.
CenterPoint Energy, Inc.
CNH Industrial Capital LLC
Comcast Corporation
Bank of New ZealandEversource Energy
Brighthouse Financial Global Funding
Mercedes-Benz Finance North America LLC
Korea Electric Power Corporation
Florida Power & Light Company
Dollar General Corporation
F&G Global Funding
7-Eleven, Inc.
Element Fleet Management Corp.
CNO Global Funding
Coca-Cola Europacific Partners PLC
AvalonBay Communities, Inc.
European Bank for Reconstruction and Development
Mondelez International, Inc.
B.A.T. International Finance p.l.c.
Appalachian Power Company
Public Storage
V.F. Corporation
Monongahela Power Company
DNB Bank ASA
Ryder System, Inc.
Truist Bank
BorgWarner Inc.
OGE Energy Corp.
Welltower Inc.
HSBC Bank Canada
Kimco Realty Corporation
Diageo Capital plc
Ross Stores, Inc.
Sprint Spectrum Co Llc
SMBC Aviation Capital Finance DAC
U.S. Bancorp.
Pfizer Inc.

Relationship with the Company

Southern California Edison Company

Marketable Securities Type and Name

- 185
- 185 - -Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
4,999
4,958
4,774
4,750
4,713
4,601
4,558
4,468
4,439
4,414
4,388
4,342
4,260
4,232
4,231
4,185
4,100
4,089
4,037
4,026
4,005
4,003
3,981
3,873
3,858
3,837
3,831
3,802
3,696
3,619
3,618
3,506
3,503
3,415
3,407
3,399
3,397
3,392
3,390
3,389
3,351
3,348
3,339
3,275
3,248
3,222
3,205
3,174

5,017
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

4,999
4,958
4,774
4,750
4,713
4,601
4,558
4,468
4,439
4,414
4,388
4,342
4,260
4,232
4,231
4,185
4,100
4,089
4,037
4,026
4,005
4,003
3,981
3,873
3,858
3,837
3,831
3,802
3,696
3,619
3,618
3,506
3,503
3,415
3,407
3,399
3,397
3,392
3,390
3,389
3,351
3,348
3,339
3,275
3,248
3,222
3,205
3,174

5,017

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Dominion Energy, Inc.
Verisk Analytics, Inc.
Realty Income Corporation
ERAC USA Finance LLC
Anheuser-Busch Companies, LLC
Xcel Energy Inc.
Simon Property Group, L.P.
ONE Gas, Inc.
Public Service Enterprise Group Incorporated
The Western Union Company
Gilead Sciences, Inc.
CNA Financial Corporation
MPLX LP
Atmos Energy Corporation
Johnson & Johnson
Rio Tinto Finance (USA) Limited
Oncor Electric Delivery Company LLC
Nestlé Holdings, Inc.
Air Lease Corporation
Avangrid, Inc.
Southern California Gas Company
Parker-Hannifin Corporation
TORONTO-DOMINION BANK/THE
Coöperatieve Rabobank U.A.
Novartis Capital Corporation
Baxalta Incorporated
PPL Electric Utilities Corporation
Amazon.com, Inc
Ameriprise Financial, Inc.
B.A.T Capital Corporation
Hewlett Packard Enterprise Company
Ventas Realty, Limited Partnership
Eastern Energy Gas Holdings, LLC
Chevron Phillips Chemical Company LLC
Mondelez International Holdings Netherlands B.V.
Masco Corporation
GA Global Funding Trust
Baxter International Inc.
NBN Co Limited
M&T Bank Corporation
Air Products and Chemicals, Inc.
International Business Machines Corporation
Nuveen Finance, LLC
Cigna Corporation
The PNC Financial Services Group, Inc.
Santander UK plc
Pinnacle West Capital Corporation
Bayer US Finance II LLC

Relationship with the Company

Highmark Inc.

Marketable Securities Type and Name

- 186
- 186 - -Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
3,167
3,163
3,162
3,112
3,035
3,029
3,018
3,012
2,996
2,983
2,970
2,950
2,941
2,934
2,914
2,908
2,905
2,905
2,895
2,861
2,848
2,768
2,768
2,767
2,734
2,728
2,718
2,691
2,677
2,671
2,635
2,600
2,598
2,579
2,577
2,519
2,484
2,469
2,461
2,459
2,447
2,445
2,437
2,426
2,424
2,417
2,397
2,374

3,171
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

3,167
3,163
3,162
3,112
3,035
3,029
3,018
3,012
2,996
2,983
2,970
2,950
2,941
2,934
2,914
2,908
2,905
2,905
2,895
2,861
2,848
2,768
2,768
2,767
2,734
2,728
2,718
2,691
2,677
2,671
2,635
2,600
2,598
2,579
2,577
2,519
2,484
2,469
2,461
2,459
2,447
2,445
2,437
2,426
2,424
2,417
2,397
2,374

3,171

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-CRH America, Inc.
Phillips 66
American Electric Power Company, Inc.
Workday, Inc.
CMS Energy Corporation
Magellan Midstream Partners, L.P.
Georgia Power Company
Texas Instruments Incorporated
Chevron U.S.A. Inc.
USAA Capital Corp.
Reynolds American Inc.
BOC Aviation Limited
O'Reilly Automotive, Inc.
RGA Global Funding
Yara International ASA
National Australia Bank - New York Branch
NiSource Inc.
Berkshire Hathaway Inc.
Empower Finance 2020, LP
Union Pacific Corporation
Health Care Service Corporation, a Mutual Legal Reserve
Company
Georgia-Pacific LLC
General Electric Company
The Sherwin-Williams Company
Mead Johnson Nutrition Company
Magna International Inc.
Reliance Standard Life Global Funding II
Public Service Electric and Gas Company
Tucson Electric Power Company
Gulf Power Company
National Rural Utilities Cooperative Finance Corporation
Duke Energy Corporation
Olympus Corporation
Otis Worldwide Corporation
Kinder Morgan, Inc.
Shinhan Financial Group Co., Ltd.
NBK SPC Limited
Mitsubishi Corporation
Sydney Airport Finance Company Pty Ltd.
Caterpillar Financial Services Corporation
Kentucky Utilities Company
Wipro IT Services LLC
Enbridge Inc.
Infor, Inc.
Evergy Kansas Central, Inc.
DTE Energy Company
Tyson Foods, Inc.
--

Relationship with the Company

AutoZone, Inc.

Marketable Securities Type and Name

- 187
- 187 - -

〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account

-

-

-

Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

2,028
1,991
1,967
1,961
1,956
1,948
1,948
1,918
1,884
1,881
1,871
1,860
1,859
1,787
1,785
1,754
1,752
1,733
1,726
1,717
1,674
1,672
1,670
1,658
1,647
1,624

2,371
2,352
2,343
2,333
2,324
2,299
2,281
2,279
2,262
2,242
2,228
2,223
2,223
2,216
2,215
2,200
2,178
2,161
2,129
2,082
2,065

2,373

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

2,028
1,991
1,967
1,961
1,956
1,948
1,948
1,918
1,884
1,881
1,871
1,860
1,859
1,787
1,785
1,754
1,752
1,733
1,726
1,717
1,674
1,672
1,670
1,658
1,647
1,624

2,371
2,352
2,343
2,333
2,324
2,299
2,281
2,279
2,262
2,242
2,228
2,223
2,223
2,216
2,215
2,200
2,178
2,161
2,129
2,082
2,065

2,373

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Gulfstream Natural Gas System, L.L.C.
NatWest Group plc
Burlington Northern Santa Fe, LLC
Berkshire Hathaway Energy Company
Walmart Inc.
University of California
CSL Finance plc
Raytheon Technologies Corporation
AIA Group Limited
Midwest Connector Capital Company LLC
eBay Inc.
UBS AG (LONDON BRANCH)
Emerson Electric Co.
MetLife, Inc.
Westpac Banking Corporation
Glencore Funding LLC
APA Infrastructure Limited
Brookfield Finance LLC
CK Hutchison International (19) Limited
Amcor Flexibles North America Inc.
Microchip Technology Incorporated
Commonwealth Bank of Australia
UBS Group Funding (Jersey) Ltd.
Marsh & McLennan Companies, Inc.
The Southern Company
NSTAR Electric Company
Duke Energy Florida, LLC
Marathon Petroleum Corporation
Essex Portfolio, L.P.
Alimentation Couche-Tard Inc.
ITC Holdings Corp.
Alliant Energy Finance, LLC
Eastern Gas Transmission and Storage, Inc.
NetApp, Inc.
Amphenol Corporation
PACCAR Financial Corp.
State Of Tennessee
Met Tower Global Funding
Elevance Health Inc.
Andrew W. Mellon Foundation, The
American Honda Finance Corporation
Corebridge Financial, Inc.
Banco Bilbao Vizcaya Argentaria, S.A.
The Curators of the University of Missouri
Ferguson Finance PLC
Nucor Corporation
Baker Hughes Holdings LLC
State Street Corporation

Relationship with the Company

Quest Diagnostics Incorporated

Marketable Securities Type and Name

- 188
- 188 - -Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
1,595
1,594
1,591
1,587
1,583
1,578
1,577
1,576
1,554
1,551
1,532
1,522
1,508
1,507
1,503
1,493
1,483
1,473
1,465
1,461
1,458
1,452
1,443
1,427
1,423
1,420
1,419
1,411
1,409
1,389
1,353
1,321
1,299
1,265
1,256
1,227
1,225
1,223
1,215
1,208
1,174
1,167
1,162
1,080
1,077
1,067
1,038
1,035

1,601
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

1,595
1,594
1,591
1,587
1,583
1,578
1,577
1,576
1,554
1,551
1,532
1,522
1,508
1,507
1,503
1,493
1,483
1,473
1,465
1,461
1,458
1,452
1,443
1,427
1,423
1,420
1,419
1,411
1,409
1,389
1,353
1,321
1,299
1,265
1,256
1,227
1,225
1,223
1,215
1,208
1,174
1,167
1,162
1,080
1,077
1,067
1,038
1,035

1,601

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name

- 189
- 189 - -

-

〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
-

-

-

-

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃

Shares/Units(In Thousands)

〃
〃
〃
〃
〃

-

Financial Statement Account--

IBERDROLA INTL BV
The Cleveland Electric Illuminating Company
Baltimore Gas and Electric Company
Sinopec Group Overseas Development (2014) Ltd.
Entergy Mississippi, LLC
Foxconn (Far East) Limited
MassMutual Global Funding II
BBVA México, S.A., Institución de Banca Múltiple, Grupo
Financiero BBVA México
Denver City & County Housing Authority
Pricoa Global Funding I
Kansas City Southern
Suntory Holdings Limited
Shire Acquisitions Investments Ireland Designated Activity
Company
Unilever Capital Corporation
KeyBank National AssociationQNB Finance Ltd.
AmerisourceBergen Corporation
Hormel Foods Corporation
BMW US Capital, LLC
Palm Beach County, Florida
Sinopec Capital (2013) Ltd.
BHP Billiton Finance (USA) Limited
TransCanada PipeLines Limited
Oregon Health & Science University
Tencent Holdings Limited
Niagara Mohawk Power Corporation
CubeSmart, L.P.
The Walt Disney Company
Southern Power Company
Visa Inc.
Canadian Natural Resources Limited
Sky Limited
Hyundai Capital Services, Inc.
State Of Washington
Abbott Laboratories
Sodexo, Inc.
Norsk Hydro ASA
Stryker Corporation
Automatic Data Processing, Inc.
Bell Canada, Inc.
Keurig Dr Pepper Inc.
QUALCOMM Incorporated
Republic Services, Inc.
Florida Hurricane Catastrophe Fund Finance Corporation
Lincoln National Corporation
Port of Morrow
American Water Capital Corp.

Relationship with the Company

Enterprise Products Operating LLC

Marketable Securities Type and Name

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$

US$

873
864
859
834
820
797
795
795
795
787
772
749
745
735
732
718
717
700
684
652
645
643
640
639
635
626
617
594
592
578
572
571
565
558

973
963
940
939
919

1,015
1,005
993
993
989
987
987
985

1,028

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$

US$

873
864
859
834
820
797
795
795
795
787
772
749
745
735
732
718
717
700
684
652
645
643
640
639
635
626
617
594
592
578
572
571
565
558

973
963
940
939
919

1,015
1,005
993
993
989
987
987
985

1,028

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Duke Energy Progress, LLC
Shell International Finance B.V.
American International Group, Inc.
Intesa Sanpaolo S.p.A.
Arizona Public Service Company
ConocoPhillips Company
State of Hawaii
United Parcel Service, Inc.
Skandinaviska Enskilda Banken AB (publ)
Gsk Consumer Healthcare Capital Uk Plc
Trane Technologies Luxembourg Finance S.A.
Genuine Parts Company
Altria Group, Inc.
McCormick & Company, Incorporated
Ecolab Inc.
DENSO Corporation
Brazos Higher Education Authority Inc
PayPal Holdings, Inc.
The Home Depot, Inc.
Target Corporation
National Australia Bank Limited
Aetna Inc.
Boston Properties Limited Partnership
University of Massachusetts Building Authority
Comerica BankEntergy Corporation
Aflac Incorporated
Banco del Estado de Chile
McKesson Corporation
Sierra Pacific Power Company
Honeywell International Inc.
NIKE, Inc.
PepsiCo, Inc.
First Republic Bank
The Norinchukin Bank
Principal Financial Group, Inc.
Rabobank Nederland - New York Branch
Amgen Inc.
Philip Morris International Inc.
Mid-America Apartments, L.P.
The Allstate Corporation
Alabama State Federal Aid Highway Finance Authority
TotalEnergies Capital International
BOC Aviation (USA) Corporation
Aptiv PLC
Salesforce, Inc.
Barclays Bank PLC
Johnson Controls International plc

Relationship with the Company

Fifth Third Bank, National Association

Marketable Securities Type and Name

- 190
- 190 - -Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
544
524
518
510
501
499
498
493
491
476
472
467
466
466
465
435
429
407
406
404
397
396
394
387
384
379
377
377
374
372
370
359
357
349
349
348
334
310
297
295
293
292
287
285
282
282
270
269

549
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

544
524
518
510
501
499
498
493
491
476
472
467
466
466
465
435
429
407
406
404
397
396
394
387
384
379
377
377
374
372
370
359
357
349
349
348
334
310
297
295
293
292
287
285
282
282
270
269

549

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-

Sales Tax Securitization Corporation Of Chicago
Equitable Holdings, Inc.
Starbucks Corporation
E. I. du Pont de Nemours and Company
Waste Management, Inc.
Entergy Louisiana, LLC
Children's Hospital Of Orange County
The Pennsylvania State University
Martin Marietta Materials, Inc.
Riverside County Infrastructure Financing Authority
Deere & Company
Saudi Arabian Oil Company
Los Angeles Department of Water and Power, California
NongHyup Bank
Hoover Alabama Board Of Education
Dormitory Authority of the State of New York
Oregon Education Districts
Electricité de France S.A.
Beth Israel Deaconess Medical Center, Inc.
Pima County, ArizonaState of Wisconsin
Aon Corporation
Huntington Beach California
Nueces County
The Goldman Sachs Group, Inc.
Citigroup Global Markets Inc.
Bank of America Corporation
JPMorgan Chase & Co.
Wells Fargo & Company
Citigroup Inc.
Citigroup Global Markets Holdings Inc.
Goldman Sachs Finance Corp International Ltd.
Morgan Stanley
Jpmorgan LLC
Banco Bilbao Vizcaya Argentaria, S.A.
Hyundai Capital Services, Inc.
Great-West Lifeco U.S. Finance 2020, Lp
Nomura Holdings, Inc.
Fédération des caisses Desjardins du Québec
UBS Group AG
Sumitomo Mitsui Trust Bank, Limited
Deutsche Bank AG - New York Branch
Lloyds Banking Group plc
NatWest Markets Plc
Athene Global Funding
NongHyup BankBPCE SA
Banco Santander, S.A.

Relationship with the Company

QatarEnergy

Marketable Securities Type and Name

- 191
- 191 - -Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
Financial assets at amortized cost
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
250
243
237
227
224
218
214
206
205
198
192
192
191
187
175
154
152
96
85
76
61
51
49
24
440,655
349,886
324,757
280,213274,713
174,540
149,951
149,870
60,20749,984
10,534
9,278
9,233
9,197
9,165
9,104
9,057
9,023
8,972
8,956
8,915
8,545
8,431
8,307

266
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

250
243
237
227
224
218
214
206
205
198
192
192
191
187
175
154
152
96
85
76
61
51
49
24
436,003347,251
323,371
278,222
273,120
174,301
146,964
146,872
60,26749,077
10,440
9,068
8,994
9,009
8,997
9,061
8,910
8,923
8,891
8,834
8,733
8,431
8,243
8,223

266

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name

Enel Finance International N.V.
Ventas Realty, Limited Partnership
Protective Life Global Funding
Volkswagen Group of America Finance, LLC
Sydney Airport Finance Company Pty Ltd.
BNP Paribas SA
AIG Global Funding
Nationwide Building Society
KeyBank National Association
GA Global Funding Trust
Canadian Imperial Bank of Commerce
Mitsubishi UFJ Financial Group, Inc.
CRH America, Inc.
Sumitomo Mitsui Financial Group, Inc.
Daimler Trucks Finance North America LLC
Swedbank AB (publ)
F&G Global Funding
Bayer US Finance II LLC
Ecolab Inc.
Kinder Morgan, Inc.
Jackson Financial Inc.
Bristol-Myers Squibb Company
ING Groep N.V.
Toyota Motor Credit Corporation
Five Corners Funding Trust
Svenska Handelsbanken AB (publ)Danone S.A.
National Australia Bank - New York Branch
Société Générale Société anonyme
Mercedes-Benz Finance North America LLC
Mizuho Financial Group, Inc.
BMW US Capital, LLC
Penske Truck Leasing Co., L.P.
Georgia-Pacific LLC
Simon Property Group, L.P.
SMBC Aviation Capital Finance DAC
Philip Morris International Inc.
Danske Bank A/S
The Bank of Nova Scotia
Komatsu Finance America, Inc.
Nordea Bank Abp
Shire Acquisitions Investments Ireland Designated Activity
Company
Georgia Power Company
Enbridge Inc.
Central Japan Railway Company
Jackson National Life Global Funding
Nestlé Holdings, Inc.
ANZ New Zealand (Int'l) Limited
Spectra Energy Partners, LP

Marketable Securities Type and Name--

Relationship with the Company- 192- 192 - -

〃
〃
〃
〃
〃
〃
〃

Financial assets at amortized cost
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
3,553
3,423
3,389
3,326
3,276
3,191
2,831

8,215
8,181
8,088
8,058
7,631
7,552
7,200
7,200
7,014
6,285
6,167
6,062
5,975
5,754
5,706
5,248
5,185
4,988
4,878
4,681
4,678
4,674
4,504
4,497
4,415
4,182
4,156
4,005
4,005
4,002
4,000
3,999
3,998
3,996
3,987
3,979
3,969
3,966
3,914
3,912
3,788
3,740
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

3,532
3,382
3,361
3,242
3,237
3,122
2,770

8,062
8,076
7,913
7,937
7,476
7,448
7,151
6,971
6,844
6,185
6,065
5,983
5,822
5,702
5,582
5,173
5,098
4,929
4,812
4,643
4,632
4,621
4,465
4,449
4,356
4,105
4,113
3,979
3,965
3,979
3,991
3,983
3,978
3,963
3,960
3,961
3,950
3,921
3,875
3,879
3,751
3,703

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name

-

-

-

-

Government bondUnited States Department of The Treasury

Emirate of Abu Dhabi
Qatar

Agency bonds/Agency mortgage-backed securities
FEDERAL NATIONAL MORTGAGE ASSOCIATION

Federal Home Loan Mortgage Corporation
Government National Mortgage Association

Asset-backed securities
Hyundai Auto Receivables Trust 2021-C

BX Trust 2022-LBA6
JPMBB Commercial Mortgage Securities Trust 2014-C24
Toyota Auto Receivables 2022-B Owner Trust
Wells Fargo Commercial Mortgage Trust 2016-Bnk1
Ford Credit Auto Owner Trust 2021-Rev2
Citigroup Commercial Mortgage Trust 2015-GC33
BX Trust 2022-CLS
Ford Credit Auto Owner Trust 2020-REV2
Morgan Stanley Capital I Trust 2021-L6
JPMBB Commercial Mortgage Securities Trust 2016-C1
Morgan Stanley Bank America Merrill Lynch Trust 2016-C30
BBCMS Mortgage Trust 2020-C8
Benchmark 2019-B11 Mortgage Trust
Bank 2020-BNK26
Hudson Yards 2016-10HY Mortgage Trust
Citigroup Commercial Mortgage Trust 2021-PRM2
Wells Fargo Commercial Mortgage Trust 2016-C35
Bank 2021-bnk33
Bank 2017-Bnk6
Benchmark 2019-B12 Mortgage Trust
BBCMS 2018-Tall Mortgage TrustMorgan Stanley Bank America Merrill Lynch Trust 2013-C10
CSAIL 2018-CX11
Wells Fargo Commercial Mortgage Trust 2021-C59
GM Financial Revolving Receivables Trust 2021-1
Honda Auto Receivables 2021 - 4 Owner Trust

Relationship with the Company

Reliance Standard Life Global Funding II
Ryder System, Inc.
Southern California Edison Company
American Honda Finance Corporation
Oracle Corporation
Baxter International Inc.
Fidelity National Information Services, Inc.
Abbott Laboratories
Metropolitan Life Global Funding I

Marketable Securities Type and Name

- 193
- 193 - -Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial assets at fair value through othercomprehensive income〃〃

Financial assets at fair value through othercomprehensive income〃〃

Financial assets at amortized cost
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account

-

-

-

-

-

-

-

Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

US$
US$

US$

US$
US$

US$

US$
US$
US$
US$
US$
US$
US$
US$
US$

9,655
9,612
9,543
8,910
7,307
7,101
6,865
6,603
6,163
6,085
5,990
5,924
5,796
5,741
5,552
5,388
5,318
5,307
5,305
5,231
5,080
4,697
4,670
4,662
4,350
4,329

10,395284,933
175,067

464,686

1,453
1,293

613,603

2,671
2,553
2,273
1,964
888
783
596
362
147

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

N/A
N/A

N/A

N/A
N/A

N/A

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

US$
US$

US$

US$
US$

US$

US$
US$
US$
US$
US$
US$
US$
US$
US$

9,655
9,612
9,543
8,910
7,307
7,101
6,865
6,603
6,163
6,085
5,990
5,924
5,796
5,741
5,552
5,388
5,318
5,307
5,305
5,231
5,080
4,697
4,670
4,662
4,350
4,329

10,395284,933
175,067

464,686

1,453
1,293

613,603

2,657
2,527
2,262
1,943
879
774
595
358
146

Fair Value(Foreign Currencies
in Thousands)(Continued)

Note

TSMC Global

Held Company Name-Bank 2017-BNK9
Citigroup Commercial Mortgage Trust 2014-GC21
Bank 2017 - BNK7Bank 2019-Bnk17
JPMCC 2017-JP7
BANK 2017-BNK5
Msbam 2016-C29
Bank 2019-Bnk22
Citigroup Commercial Mortgage Trust 2019-Gc43
Commerce 2015-CCRE24 Mortgage Trust
Msbam 2016-C31
WFRBS Commercial Mortgage Trust 2014-C25
Ford Credit Auto Owner Trust 2022-B
Benchmark 2019-B15 Mortgage Trust
Sreit Commercial Mortgage Trust 2021-Mfp
GS Mortgage Securities Corporation Trust 2018-RIVR
JPMDB 2017-C7
GS Mortgage Securities Trust 2015-GC32
Benchmark 2018-B3 Commercial Mortgage Trust
Ford Credit Auto Owner Trust 2020-Rev1
GS Mortgage Securities Trust 2013-GCJ12
Mhc Commercial Mortgage Trust 2021-Mhc
Citigroup Commercial Mortgage Trust 2015-P1
GM Financial Consumer Automobile Receivables Trust 2021-4
Citigroup Commercial Mortgage Trust 2015-GC27
Wells Fargo Commercial Mortgage Trust 2020-C55
UBS Commercial Mortgage Trust 2018-C11
Morgan Stanley Capital I Trust 2018-H3
Commerce 2013-CCRE12 Mortgage Trust
Benchmark 2018-B4 Mortgage TrustMorgan Stanley Capital I Trust
Dolp Trust 2021-NYC
CGCMT 2017-P8 Mortgage Trust
JPMBB Commercial Mortgage Securities Trust 2015-C28
Wells Fargo Commercial Mortgage Trust 2015-C30
JPMBB Commercial Mortgage Securities Trust 2015-C27
Wells Fargo Commercial Mortgage Trust 2018-C44
JPMBB Commercial Mortgage Securities Trust 2013-C12
COMM 2020-CBM Mortgage TrustMorgan Stanley Capital I Trust 2021-L5
Dbgs 2018-Biod Mortgage Trust
Wells Fargo Commercial Mortgage Trust 2015-C29
WFRBS Commercial Mortgage Trust 2013-UBS1
Honda Auto Receivables 2021-2 Owner TrustWFRBS Commercial Mortgage Trust 2013-C13
Toyota Auto Receivables 2021-D Owner Trust
Wells Fargo Commercial Mortgage Trust 2017-C40
Morgan Stanley Capital I Trust 2015 - UBS8

Relationship with the Company

MRCD 2019-Prkc Mortgage Trust

Marketable Securities Type and Name

- 194
- 194 - -Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account--Shares/Units(In Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$
4,245
4,127
3,967
3,904
3,849
3,458
3,433
3,270
3,162
3,030
2,983
2,882
2,850
2,790
2,789
2,787
2,622
2,600
2,473
2,343
2,313
2,221
2,144
2,069
2,055
2,046
1,983
1,970
1,962
1,946
1,830
1,759
1,690
1,585
1,547
1,498
1,455
1,450
1,421
1,331
1,257
1,225
1,217
1,209
1,164
1,131
1,054
946

4,306
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

4,245
4,127
3,967
3,904
3,849
3,458
3,433
3,270
3,162
3,030
2,983
2,882
2,850
2,790
2,789
2,787
2,622
2,600
2,473
2,343
2,313
2,221
2,144
2,069
2,055
2,046
1,983
1,970
1,962
1,946
1,830
1,759
1,690
1,585
1,547
1,498
1,455
1,450
1,421
1,331
1,257
1,225
1,217
1,209
1,164
1,131
1,054
946

4,306

Fair Value(Foreign Currencies
in Thousands)(Continued)

NoteVTAF II

TSMC Global

Held Company Name--

5V Technologies, Inc.

Publicly traded stocks
Sentelic Corporation-

Non-publicly traded equity investments
Primavera Capital Fund II L.P.

--

JPMCC Commercial Mortgage Securities Trust 2016 - JP3
UBS Barclays Commercial Mortgage Trust 2013-C6
BX Trust 2021-BXMF
280 Park Avenue Trust 2017 - 280P
Elp Commercial Mortgage Trust 2021-Elp
COMM Mortgage Trust Series 2015-LC19
UBS Commercial Mortgage Trust 2018-C10
Equs 2021-Eqaz Mortgage Trust
Benchmark 2019-B14 Mortgage Trust
Bx 2021-21M Mortgage Trust
Gs Mortgage Securities Corporation Trust 2020-Uptn
Wells Fargo Commercial Mortgage Trust 2015-C28
Bx Commercial Mortgage Trust 2021-CIP
Commerce 2014-Ccre17 Mortgage TrustMorgan Stanley Capital I Trust 2019-H6
GS Mortgage Securities Trust 2014-GC22
Citigroup Commercial Mortgage Trust 2018-C5
Wells Fargo Commercial Mortgage Trust 2015-LC20
GS Mortgage Securities Trust 2014-GC24
Bank 2019-BNK23
Wells Fargo Commercial Mortgage Trust 2015-NXS3WFRBSCommercial Mortgage Trust 2013-C17
Morgan Stanley Capital I Trust 2019-H7
CF 2019-CF1 Mortgage Trust
Benchmark 2019-B9 Mortgage Trust
JPMBB Commercial Mortgage Securities Trust 2014-C19
Citigroup Commercial Mortgage Trust 2014-GC23
COMM 2015-CCRE22 Mortgage Trust
JPMCC 2015 - JP1
JPMDB Commercial Mortgage Securities Trust 2019-COR6
Citigroup Commercial Mortgage Trust 2015-GC35
GS Mortgage Securities Trust 2014-GC26
Citigroup Commercial Mortgage Trust 2014-GC19
Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C12
BBCMS Mortgage Trust 2020-C7
Bank 2020-BNK28
Wells Fargo Commercial Mortgage Trust 2015-NXS1

Non-publicly traded equity investments
Aether Systems, Inc.

-

Relationship with the Company

Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C13

Marketable Securities Type and Name

- 195
- 195 - -Financial assets at fair value through othercomprehensive income

Financial assets at fair value through othercomprehensive income〃

Financial assets at fair value through othercomprehensive income

Financial assets at fair value through othercomprehensive income
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃
〃

Financial Statement Account

971

1

1,085

-

-

-

Shares/Units(In Thousands)

US$

US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

1,422

-

-

81,039

838
836
815
810
768
763
750
577
576
573
539
532
531
518
516
505
482
478
470
392
373
365
349
336
328
315
308
301
269
237
203
170
137
117
69
25
3

874

3

-

20

4

N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A

N/A

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$

US$

US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$
US$

US$

1,422

-

-

81,039

838
836
815
810
768
763
750
577
576
573
539
532
531
518
516
505
482
478
470
392
373
365
349
336
328
315
308
301
269
237
203
170
137
117
69
25
3

874

Fair Value(Foreign Currencies
in Thousands)(Continued)

NoteEmerging Fund

Growth Fund

VTAF III

Held Company Name--

Non-publicly traded equity investments
Astera Labs, Inc.

Empower Semiconductor, Inc.
Kinara, Inc.
NeuReality Ltd.
RiVos, Inc.

Publicly traded stocks
Credo Technology Group Holding Ltd.

-

Publicly traded stocks
Marvell Technology Group Ltd.

--

Convertible bonds
EdgeQ Inc.

-

CNEX Labs, Inc.

-

Neoconix, Inc.

Non-publicly traded equity investments
Astera Labs, Inc.

-

Relationship with the Company

Non-publicly traded equity investments
LiquidLeds Lighting Corp.

Marketable Securities Type and Name

- 196
- 196 - -Financial assets at fair value through othercomprehensive income

Financial assets at fair value through othercomprehensive income〃〃〃〃

Financial assets at fair value through profit or
loss

Financial assets at fair value through othercomprehensive income

Financial assets at fair value through othercomprehensive income〃

Financial assets at fair value through othercomprehensive income〃

Financial Statement Account

491

868
2,015
122
750

1,487

-

30

33

637

4,147

1,952

Shares/Units(In Thousands)

US$

US$
US$
US$
US$

US$

US$

US$

US$

US$

US$

US$

6,529

5,000
3,000
3,000
2,000

9,680

4,000

1,097

166

4,146

174

800

-

3
2
3
-

-

N/A

-

-

-

-

14

December 31, 2022
Carrying Value
Percentage of(Foreign Currencies
Ownership (%)
in Thousands)

US$

US$
US$
US$
US$

US$

US$

US$

US$

US$

US$

US$

6,529

5,000
3,000
3,000
2,000

9,680

4,000

1,097

166

4,146

174

800

Fair Value(Foreign Currencies
in Thousands)(Concluded)

Note

TSMC Global

TSMC

Company Name-〃

Investments accounted forusing equity method

-

-

-

-

-

-

-

-

-

-

Nature ofRelationship

-

-

-

-

-

〃

Investments accounted forusing equity method
〃
〃

-

-

Counterparty

Financial assets at amortized
cost
〃
〃
〃

Financial Statement
Account

Financial assets at fair value
through othercomprehensive income
Bank of America Corporation〃
Citigroup Inc.
〃
Wells Fargo & Company〃
The Goldman Sachs Group, Inc.
〃
JPMorgan Chase & Co.
〃
Banco Santander, S.A.
〃
Metropolitan Life Global Funding〃I
The Toronto-Dominion Bank〃
Bank of Montreal〃
The Bank of New York Mellon〃
Corporation
Lloyds Banking Group plc〃
S&P Global Inc.
〃
The Goldman Sachs Group, Inc. Financial assets at amortizedcost

Corporate bondMorgan Stanley

CapitalEmerging FundJASM
TSMC 3DIC

Non-publicly traded equity
investments
TSMC Arizona

CPC Corporation, Taiwan
Nan Ya Plastics Corporation
Formosa Petrochemical
Corporation
Formosa Chemicals & Fibre
Corporation
Formosa Plastics Corporation

Commercial paper
Taiwan Power Company

Marketable Securities
Type and Name

-

-

-

-

-

58
11

770

-

-

-

-

Shares/Units(In Thousands)

-

-

-

-

21,67551,347

14,7866,295
6,072

75,26549,29838,43953,75645,332
18,461
17,341- 197- 197 - -

US$
US$
US$

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

65,115286,205

1,383,554
270,513

16,667,696

US$$Amount(Foreign
Currencies inThousands)

Beginning Balance

-

-

-

-

-

962
38

500

200

250

3,009
450
300

5,610

Shares/Units(In Thousands)

15,598
14,842
11,29020,231
21,41624,45615,99812,125
10,094
10,75827,545US$2,210
US$ 14,096
US$ 561,607

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

US$

1,033,339

23,150,164
865,370

15,372,500

1,992,183

2,487,819

29,969,655
4,480,179
2,987,971$ 55,830,298

Amount(Foreign
Currencies inThousands)

Acquisition

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITALFOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Investees

-

-

-

-

-

-

-

-

-

2,259
-

2,660

Shares/Units(In Thousands)

9,344
5,076
6,177

13,6805,787
14,852
3,842
410
3,000

4,750

US$ 12,370
US$
2,893
US$ 171,000

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

US$

-

-

-

-

-

22,590,000-$ 26,600,000

9,685
4,999
6,165

13,631
5,779
14,906
3,869
420
3,000

4,678

US$ 12,339
US$
2,934
US$ 171,000

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

US$

62,532----

22,590,000-$ 26,600,000

Carrying Value(Foreign
Currencies inThousands)

DisposalAmount(Foreign
Currencies inThousands)

US$
US$
US$

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

US$

$

31
(41)
-

(341)
77
12

49
8
(54)
(27)
(10)
-

72

-

-

-

-

-

-

-

Gain/Loss on
Disposal(Foreign
Currencies inThousands)

-

-

-

-

-

1,020
49

1,270

200

250

750
450
300

2,950

Shares/Units(In Thousands)

19,51015,224
11,282

76,626
61,49359,73551,43950,62926,257
24,40883,242(Continued)

US$ 10,533
US$ 10,246
US$ 440,655

US$
US$
US$

US$
US$
US$
US$
US$
US$
US$

US$

1,760,885

23,330,125
1,172,706

25,639,079

1,990,459

2,485,666

7,458,936
4,476,301
2,985,385$ 29,335,729

Amount(Foreign
Currencies inThousands)Ending Balance (Note)

TABLE 4

Note:-〃〃〃〃

Non-publicly traded equity
investments
Solanium Labs, Ltd.

Financial assets at fair value
through othercomprehensive income

Agency bonds/Agency
mortgage-backed securities
FEDERAL NATIONAL
Financial assets at fair value
MORTGAGE ASSOCIATION
through othercomprehensive income
Federal Home Loan Mortgage〃
Corporation
Government National Mortgage〃
Association
-

-

-

-

-

-

-

-

-

-

-

-

Nature ofRelationship

-

-

-

-

Counterparty

Financial assets at amortized
cost
〃
〃
〃
〃
〃

Financial Statement
Account

Government bondUnited States Department of The Financial assets at fair value
Treasury
through othercomprehensive income

Bank of America Corporation
JPMorgan Chase & Co.
Wells Fargo & Company
Citigroup Inc.
Citigroup Global Markets
Holdings Inc.
Goldman Sachs Finance Corp
International Ltd.
Morgan Stanley
Jpmorgan LLC
Banco Bilbao Vizcaya Argentaria,
S.A.

Citigroup Global Markets Inc.

Marketable Securities
Type and Name

-

-

-

-

-

-

-

-

-

Shares/Units(In Thousands)--

10,05430,399-99,968US$-

US$ 285,581

US$ 253,075

US$ 460,205

US$ 768,483

US$
US$
US$

US$

US$
US$
US$
US$
US$

US$

1,429

- 198
- 198 - -

-

-

-

-

-

-

-

-

Shares/Units(In Thousands)

448,254
268,126
243,897
188,138
150,000

93,07860,25550,00010,418

US$

US$

5,000

75,508

US$ 146,242

US$ 251,791

US$

US$
US$
US$

US$ 150,000

US$
US$
US$
US$
US$

US$ 350,000

Amount(Foreign
Currencies inThousands)

Acquisition

The ending balance includes the realized gain/loss on equity investment, the amortization of premium/discount on bonds investments and other related adjustment.

Emerging Fund

TSMC Global

Company Name

Amount(Foreign
Currencies inThousands)

Beginning Balance

1,429

-

-

-

-

-

-

-

-

Shares/Units(In Thousands)--

74,099US$

11,370

US$ 158,836

US$

US$ 170,673

US$ 193,697

US$
US$
US$

US$

US$ 124,000
US$US$
US$ 14,000
US$-

US$ 100,000--

75,623US$

5,000

US$ 162,184

US$

US$ 174,005

US$ 195,409

US$
US$
US$

US$

US$ 123,818
US$US$
US$ 14,000
US$-

US$ 100,000

Carrying Value(Foreign
Currencies inThousands)

DisposalAmount(Foreign
Currencies inThousands)

US$

US$

US$

US$

US$

US$
US$
US$

US$

US$
US$
US$
US$
US$

US$

6,370

(3,348)(1,524)(3,332)(1,712)

-

-

182
-

-

Gain/Loss on
Disposal(Foreign
Currencies inThousands)

-

-

-

-

-

-

-

-

-

Shares/Units(In Thousands)

324,757
280,213274,713
174,540
149,951

60,20749,984
10,534-(Concluded)US$

US$ 175,067

US$ 284,933

US$ 464,686

US$ 613,603

US$
US$
US$

US$ 149,870

US$
US$
US$
US$
US$

US$ 349,886

Amount(Foreign
Currencies inThousands)Ending Balance (Note)February 15, 2022
(Note)

TSMC

Real estateTransaction Date

Company Types ofName
Property$ 213,300,000(Note)

Transaction
Amount(Foreign
Currencies inThousands)
Based on the terms in
the purchase order

Payment Term

-

- 199
- 199 - -Chen Yuan International Co.,Ltd.
Chenfull International Co.,Ltd.
Cheng Deh Fire Protection
Industrial Corp.
Chien Kuo Construction Co.,
Ltd.
China Steel Structure Co.,Ltd.
Chun Yuan Steel Industry
Co., Ltd.

Capital Machinery Limited

Atlas Technology Corp.

Am-Power MachineInternational EnterpriseCo., Ltd.
Atlas Copco Taiwan Ltd.

Air Water Plant Engineering
Co., Ltd.
Allis Electric Co., Ltd.

Air Liquide Far Eastern Ltd.

Air Liquid Japan G.K.

Addtron Technology (Japan),Inc.
Aegis Technology Co.

Accudevice Co., Ltd.

ABB Ltd.

122 counterparties (Note),
including:Counterparty

Nature ofRelationships

N/A

Owner

N/A

Relationships

N/A

Transfer Date

N/A

AmountPrior Transaction of Related Counterparty

ACQUISITION OF INDIVIDUAL REAL ESTATE PROPERTIES AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITALFOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Investees

Pricecomparisonand pricenegotiation

Price
Reference

Manufacturing
purpose

Purpose of
Acquisition(Continued)

None

Other
Terms

TABLE 5

TSMC

Real estate

Company Types ofName
Property

Transaction Date

Transaction
Amount(Foreign
Currencies inThousands)
Payment Term

JG Environmental
Technology Co., Ltd.
Jienshian Information
Engineering Co., Ltd.
JJmr-Clean-Air Solution
Tech.Services Co., Ltd.

- 200
- 200 - -Hueng Luei Process Industry
Co., Ltd.
Ingersoll-Rand Southeast
Asia (Pte) Ltd. Taiwan
Branch (Singapore)
J.C. Yang Architect andAssociates
Japan Material Co., Ltd.

Hsieh Kun Co., Ltd.

Fuji Furukawa E&C Co.,
Ltd.
Green Partners Industry Co.,Ltd.
Hantech Engineering Co.,Ltd.
Hitachi Energy Ltd.

Fu Tsu Construction Co.,Ltd.
Fuji Electric Co., Ltd.

Fortune Electric Co., Ltd.

Exyte Taiwan Co., Ltd.

Evergreen Steel Corporation

Chung-Lin General
Contractors, Ltd.
Chunghwa Telecom Japan
Co., Ltd.
Cica-Huntek Chemical
Technology Taiwan Co.,Ltd.
Confederate Technology Co.,Ltd.
Da-Cin Construction Co.,Ltd.
Desiccant Technology
Corporation
Eaton Electric JapanCounterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition(Continued)

Other
Terms

TSMC

Real estate

Company Types ofName
Property

Transaction Date

Transaction
Amount(Foreign
Currencies inThousands)
Payment Term

Ovivo Taiwan Co., Ltd.

- 201
- 201 - -Organo Technology Co., Ltd.

Organo Corporation

NEC Facilities, Ltd.

Marketech International
Corp.
Mega Union Technology
Incorporated
Mitsubishi Heavy Industries
Air-Conditioning &Refrigeration Corporation
Mitsubishi Heavy Industries,Ltd.
NAGASE & CO. LTD.

Lead-Fu Industrials
Corporation
Lee Ming Construction Co.,Ltd.
Lumax International Corp.,
Ltd.
Mandartech Interiors Inc.

L&K Engineering Co., Ltd.

Kurita Water Industries Ltd.,
TaiwanKyudenko Corporation

Kuken Kogyo Co., Ltd.

Kinetics Technology
Corporation
Koei International Corp.

Kanto Chemical Engineering
Co., Ltd.
Kao Hsin Engineering Co.,Ltd.
Kedge Construction Co., Ltd.

Kajima Corporation

Johnson Controls York
Taiwan Co, Ltd.
Jusun Instruments Co., Ltd.

Counterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition(Continued)

Other
Terms

TSMC

Real estate

Company Types ofName
Property

Transaction Date

Transaction
Amount(Foreign
Currencies inThousands)
Payment Term

Trane Taiwan Distribution
LimitedToshiba Mitsubishi-ElectricIndustrial Systems
Corporation
Toyoko Kagaku Co., Ltd.

Taiyo Nippon Sanso
Corporation
TASA Construction
Corporation
Techgo Industrial Co., Ltd.

- 202
- 202 - -Taiwan Gleno Enterprise Co.,Ltd.
Taiwan Obayashi
Corporation
Taiwan Puritic Corp.

Taisei Corporation

Taikisha Ltd.

Swift Engineering Co., Ltd.

Solomon Technology
Corporation
Sumitomo Corporation

SN Tech Corporation

Siemens Limited

Shihlin Electric &Engineering Corporation
Shimizu Corporation

Schneider Electric Taiwan
Co., Ltd.
Seibu Giken Co., Ltd.

San Fu Chemical Co., Ltd.

Pan Asia (Engineers &Constructors) Corporation
Quicken System Integration
Co., Ltd.
Ruentex Engineering &Construction Co., Ltd.
SACHEM Inc.

Counterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition(Continued)

Other
Terms

TSMC

May 10, 2022
(Note)

November 8, 2022
(Note)

Real estateTransaction Date

Real estate

Real estate

Company Types ofName
Property

US$ 1,119,000(Note)

US$ 2,147,000(Note)

Transaction
Amount(Foreign
Currencies inThousands)

Based on the terms in
the purchase order

Based on the terms in
the purchase order

Payment Term

Am-Power MachineInternational EnterpriseCo., Ltd.
Atlas Copco Taiwan Ltd.

Allis Electric Co., Ltd.

-

-

- 203
- 203 - -Air Liquide Far Eastern Ltd.

Accudevice Co., Ltd.

ABB Ltd.

Southern Taiwan Science
Park Bureau, Ministry of
Science and Technology
115 counterparties (Note),
including:

19 counterparties (Note),
including:Zhao-Cheng Corp.

Weltall Technology
Corporation
Wholetech System Hitech
Limited
Yangtech Engineering Co.,Ltd.
Yankey Engineering Co.,Ltd.
Ying Pao Technology Inc.

United Integrated Services
Co., Ltd.
Versum Materials Taiwan
Co., Ltd.
VertivTung Kang Steel Structure
Corp.
Uangyih-Tech Industrial Co.,Ltd.
Unelectra International Corp.

Trusval Technology Co., Ltd.

Counterparty

Nature ofRelationships

N/A

N/A

Owner

N/A

N/A

Relationships

N/A

N/A

Transfer Date

N/A

N/A

AmountPrior Transaction of Related Counterparty

Pricecomparisonand pricenegotiationPricecomparisonand pricenegotiation

Price
Reference

Manufacturing
purposeManufacturing
purpose

Purpose of
Acquisition(Continued)

None

None

Other
Terms

TSMC

Real estate

Company Types ofName
Property

Transaction Date

Transaction
Amount(Foreign
Currencies inThousands)
Payment Term

- 204
- 204 - -Hsinchu Science Park
Bureau, Ministry of
Science and Technology
Hueng Luei Process Industry
Co., Ltd.

Fu Tsu Construction Co.,Ltd.
Hantech Engineering Co.,
Ltd.
Hsieh Kun Co., Ltd.

Fortune Electric Co., Ltd.

Exyte Taiwan Co., Ltd.

Central Taiwan Science Park
Bureau, Ministry of
Science and Technology
Century Iron and Steel
Industrial Co., Ltd.
Chen Yuan International Co.,Ltd.
Chenfull International Co.,Ltd.
Cheng Deh Fire Protection
Industrial Corp.
Chien Kuo Construction Co.,
Ltd.
China Steel Structure Co.,Ltd.
Chun Yuan Steel Industry
Co., Ltd.
Chung-Lin General
Contractors, Ltd.
Cica-Huntek Chemical
Technology Taiwan Co.,Ltd.
Confederate Technology Co.,Ltd.
Da-Cin Construction Co.,Ltd.
Desiccant Technology
Corporation
Evergreen Steel Corporation

Capital Machinery Limited

Atlas Technology Corp.

Counterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition(Continued)

Other
Terms

TSMC

Real estate

Company Types ofName
Property

Transaction Date

Transaction
Amount(Foreign
Currencies inThousands)
Payment Term

Schneider Electric Taiwan
Co., Ltd.
Shihlin Electric &Engineering Corporation- 205- 205 - -Pan Asia (Engineers &Constructors) Corporation
Ruentex Engineering &Construction Co., Ltd.
San Fu Chemical Co., Ltd.

Ovivo Taiwan Co., Ltd.

Marketech International
Corp.
Mega Union Technology
Incorporated
Organo Technology Co., Ltd.

Mandartech Interiors Inc.

Lead-Fu Industrials
Corporation
Lee Ming Construction Co.,Ltd.
Li Jin Engineering Co., Ltd.

Kinetics Technology
Corporation
L&K Engineering Co., Ltd.

Kedge Construction Co., Ltd.

Jusun Instruments Co., Ltd.

Immense Team Construction& Building Co., Ltd.
Ingersoll-Rand Southeast
Asia (Pte) Ltd. Taiwan
Branch (Singapore)
J.C. Yang Architect andAssociates
Jaie Haour Industry
Corporation
JG Environmental
Technology Co., Ltd.
JJmr-Clean-Air Solution
Tech.Services Co., Ltd.
Ju Yao Construction Co., Ltd.

Counterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition(Continued)

Other
Terms

Note:

TSMC

Transaction Date

Transaction
Amount(Foreign
Currencies inThousands)
Payment Term

Zhao-Cheng Corp.

United Integrated Services
Co., Ltd.
Versum Materials Taiwan
Co., Ltd.
Weltall Technology
Corporation
Wholetech System Hitech
Limited
Yangtech Engineering Co.,Ltd.
Yankey Engineering Co.,Ltd.
Ying Pao Technology Inc.

Tung Kang Steel Structure
Corp.
Uangyih-Tech Industrial Co.,Ltd.
Unelectra International Corp.

Trusval Technology Co., Ltd.

TASA Construction
Corporation
Techgo Industrial Co., Ltd.

Taiwan Gleno Enterprise Co.,Ltd.
Taiwan Obayashi
Corporation
Taiwan Puritic Corp.

Solomon Technology
Corporation
Southern Taiwan Science
Park Bureau, Ministry of
Science and Technology
Swift Engineering Co., Ltd.

Siemens Limited

Counterparty

Nature ofRelationships
Owner

Relationships

Transfer Date

AmountPrior Transaction of Related Counterparty
Price
Reference

Purpose of
Acquisition- 206- 206 - -The disclosures are expected information based on the capital appropriation approved by the Board of Directors (Right-of-use assets are included). The actual information shall be subject to the final purchase order of TSMC.

Real estate

Company Types ofName
Property(Concluded)

Other
Terms

Indirect subsidiary

Associate

Associate

WaferTech

SSMC

VIS

Note:

Associate of TSMC

Sales

Sales

Purchases

Purchases

Purchases

Purchases

Purchases

Sales

Sales

Sales

(US$

$

9

-

1

3

6

17

26

1

-

68

% to
Total

- 207
- 207 - -787,7023,204,489
106,695)

1,849,937

4,572,894

10,336,735

28,400,454

43,186,122

11,346,289

155,024

1,538,849,403

AmountPurchases/(Foreign Currencies
Sales
in Thousands)

The tenor is determined by the payment terms granted to its clients by TSMC North America.

XintecSubsidiary

TSMC China

VisEra Tech

Subsidiary

TSMC Nanjing

Associate of TSMC

Associate

GUC

GUC

Subsidiary

TSMC Nanjing

Nature of Relationships

Subsidiary

Related Party

TSMC North America

TSMC North America

TSMC

Company Name
Payment Terms

Net 60 days from the end of themonth of when invoice isissuedNet 30 days from invoice date

Net 30 days from invoice date
(Note)Net 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedNet 30 days from the end of themonth of when invoice isissuedTransaction Details

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITALFOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Investees

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(Note)(US$$

112,607

171,049
5,569)(190,587)(385,979)(855,952)(2,296,083)(4,105,919)

1,300,302-

171,738,863

15

-

-

1

1

4

7

1

-

80

Notes/Accounts Payable or
Receivable
Ending Balance% toUnit Price Payment Terms (Foreign Currencies
Total
in Thousands)
Abnormal Transaction

Note

TABLE 6

Parent company
The same parent company

TSMC

TSMC

TSMC Nanjing

TSMC JDCTSMC China

The ultimate parent of theCompany
Parent company

TSMC

TSMC

TSMC Development

TSMC Technology

WaferTech

108,835
466,905)

(US$

(US$

(US$

(RMB

Note 229

Note 2

53

29

Note 2

26

Note 222

37
27

Turnover Days
(Note 1)

- 208
- 208 - -Note 2: The ending balance is primarily consisted of other receivables, which is not applicable for the calculation of turnover days.

192,719
6,275)

855,952
27,869)744,620
24,244)112,607

4,105,919
929,191)

2,296,083(RMB 519,682)
45,353,940(RMB10,265,253)(JPY

171,078
5,570)

177,923,661
1,300,302(US$$

Note 1: The calculation of turnover days excludes other receivables from related parties.

The ultimate parent of theCompany

Associate of TSMC

XintecVisEra Tech

Parent company

TSMC

TSMC Nanjing

Parent company

Associate of TSMC

GUC

TSMC North
America

Subsidiary
Associate

Nature of Relationships

TSMC North America
GUC

Related Party

TSMC

Company Name

Ending Balance(Foreign Currencies
in Thousands)$

AmountRECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
December 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Investees

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Action Taken

Overdue

$

-

-

-

-

-

-

-

-

-

-

Amounts Received
in Subsequent
Period$Allowance for
Bad Debts

-

-

-

-

-

-

-

-

-

-

TABLE 7

VTAF IIITSMC Partners

TSMC

Investor Company

San Jose, California, U.S.A
Taoyuan, Taiwan
Cayman Islands
Hsin-Chu, Taiwan
Yokohama, Japan
Amsterdam, the Netherlands
Yokohama, Japan
Cayman Islands
Yokohama, Japan
Cayman Islands
Seoul, Korea

TSMC North America

XintecEmerging Fund
GUC

TSMC 3DIC
TSMC Europe
TSMC JDC
VTAF IIITSMC Japan
VTAF II
TSMC Korea

Cayman Islands
New Taipei, Taiwan

Growth Fund

Mutual-Pak

Ontario, Canada

Singapore

SSMC

TSMC Canada

Hsin-Chu, Taiwan

VisEra Tech

Delaware, U.S.A

Hsin-Chu, Taiwan

VIS

TSMC Technology

Kumamoto, JapanJASM

Delaware, U.S.A

Phoenix, Arizona, U.S.A.

TSMC Arizona

TSMC Development

Tortola, British Virgin Islands
Tortola, British Virgin Islands

Location

TSMC Global
TSMC Partners

Investee Company- 209- 209 - -Manufacturing of electronic parts, wholesaling
and retailing of electronic materials, andresearching, developing and testing of RFID

Investing in technology start-up companies

Engineering support activities

Investing in companies involved insemiconductor manufacturing
Engineering support activities

278,986
15,749410,680
1,321,594
83,760260,300
13,656298,618
386,568

1,988,317

333,718

5,120,028

4,224,082

10,180,677

1,416,921

21,643,300$ 355,162,309
31,456,130

December 31,
2021(Foreign
Currencies inThousands)

(US$

(US$

67,4292,195) (US$48,937
1,593) (US$79,9702,604)
48,937
1,593)

18,026,652
18,026,652(US$ 586,939) (US$ 586,939)
438,644438,644(US$ 14,282) (US$ 14,282)
70,64070,640(US$2,300) (US$2,300)

Investment activities$ 355,162,309
Investing in companies involved in the
31,456,130
semiconductor design and manufacturing, andother investment activities
Manufacturing, sales and testing of integrated
37,015,800
circuits and other semiconductor devices
Manufacturing, sales, testing and computer-aided
24,567,085
design of integrated circuits and othersemiconductor devices
Manufacturing, sales, packaging, testing and
10,180,677
computer-aided design of integrated circuits
and other semiconductor devices and the
manufacturing and design service of masks
Research, design, development, manufacturing,
4,224,082
sales, packaging and test of color filter
Manufacturing and sales of integrated circuits and5,120,028
other semiconductor devices
Sales and marketing of integrated circuits and333,718
other semiconductor devices
Wafer level chip size packaging and wafer level
1,988,317
post passivation interconnection service
Investing in technology start-up companies
1,269,425
Researching, developing, manufacturing, testing
386,568
and marketing of integrated circuits
Engineering support activities
1,144,356
Customer service and supporting activities
15,749Engineering support activities
410,680
Investing in technology start-up companies
1,239,621
Customer service and supporting activities
83,760Investing in technology start-up companies
260,300
Customer service and supporting activities
13,656Main Businesses and Products

December 31,
2022(Foreign
Currencies inThousands)

Original Investment Amount

4,693

-

2,300

-

-

49
15
6
80

46,688111,282

11,000314

213,619464,223

1,020

1,270

11
988,268

Shares (InThousands)

28

100

100

100

100

100
100
100
98
100
98
100

99.9
35

41

100

39

68

28

71

100

100
100

$

27,950(4,926)
20,303(6,700)
6,559
319
1,408

(6,917)3,710,442

1,983,736

62,213

3,540,176

1,765,796

15,280,388(593,429)(9,430,070)

7,308,722
3,135,764

166,549(609)
5,423) (US$(21))
19,053(13,738)(US$620) (US$(464))(US$

36,609,536
2,620,596(US$1,191,988) (US$ 87,795)
993,700
66,998(US$ 32,354) (US$2,150)
321,059
31,997(US$ 10,454) (US$1,071)

1,172,706
527,693
376,176
246,702134,560
71,42944,082

1,760,885
1,666,651

3,528,417

5,449,755

8,934,731

11,467,860

13,492,653

23,330,125

25,639,079$ 411,992,426
63,697,217

$

Note

Note 2 Associate(Continued)

Note 2 Subsidiary

Note 2 Subsidiary

Note 2 Subsidiary

Note 2 Subsidiary

27,950 Subsidiary(4,926) Subsidiary
20,303 Subsidiary(6,566) Subsidiary
6,559 Subsidiary
313 Subsidiary
1,408 Subsidiary(6,910) Subsidiary
1,292,705 Associate

813,516 Associate

62,213 Subsidiary

1,373,234 Associate

1,253,986 Subsidiary

4,322,799 Associate(452,020) Subsidiary(9,430,070) Subsidiary

7,308,722 Subsidiary
3,135,764 Subsidiary

Share ofNet Income
Profits/Losses(Losses) of theof Investee
Carrying Value
Investee(Note 1)
Percentage of(Foreign(Foreign(Foreign
Ownership
Currencies in
Currencies in
Currencies inThousands)
Thousands)
Thousands)

Balance as of December 31, 2022

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN MAINLAND CHINA)FOR THE YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Investees

TABLE 8$

- 210
- 210 - -The share of profits/losses of the investee company is not reflected herein as such amount is already included in the share of profits/losses of the investor company.

Manufacturing, sales and testing of integrated
circuits and other semiconductor devices

Main Businesses and Products

Note 2:

Washington, U.S.A

Location

The share of profits/losses of investee includes the effect of unrealized gross profit on intercompany transactions.

WaferTech

Investee Company

Note 1:

TSMC Development

Investor Company

-

$

-

December 31,
2021(Foreign
Currencies inThousands)

Original Investment Amount
December 31,
2022(Foreign
Currencies inThousands)
293,637

Shares (InThousands)

100$ 6,251,109 $ 2,299,054(US$ 203,533) (US$ 77,303)

Note(Concluded)Note 2 Subsidiary

Share ofNet Income
Profits/Losses(Losses) of theof Investee
Carrying Value
Investee(Note 1)
Percentage of(Foreign(Foreign(Foreign
Ownership
Currencies in
Currencies in
Currencies inThousands)
Thousands)
Thousands)

Balance as of December 31, 2022

Note 1
(US$

$

-

-

$ 1,776,293,320(Note 3)Note 1: TSMC directly invested US$596,000 thousand in TSMC China and US$ 1,000,000 thousand in TSMC Nanjing.

-

30,521,412(US$ 1,000,000)- $ 18,939,667(US$ 596,000)- 211- 211 - -$20,486,591

12,411,290

Accumulated
Outflow of
Net Income
Investment from
(Losses) of the
Taiwan as ofInvestee
December 31,
Company2022 (US$ in
Thousands)

Note 3: The upper limit on investment in mainland China is determined by sixty percent (60%) of the Company’s consolidated net worth.

Note 2: Amount was recognized based on the audited financial statements.

$

Upper Limit on Investment

30,521,412
1,000,000)$
18,939,667(US$
596,000)$ 119,412,667(US$ 3,596,000)

30,521,412
6,650,119)

Note 1$ 49,461,079(US$ 1,596,000)(RMB$
18,939,667(RMB 4,502,080)

Investment Amounts Authorized by
Investment Commission, MOEA
(US$ in Thousands)

Manufacturing, sales,
testing andcomputer-aided
design of integrated
circuits and othersemiconductor
devices
Manufacturing, sales,
testing andcomputer-aided
design of integrated
circuits and othersemiconductor
devicesAccumulated Investment in Mainland China
as of S December 31, 2022
(US$ in Thousands)

TSMC Nanjing

TSMC China

Investment Flows
Accumulated
Outflow of
Total Amount ofMain Businesses andMethod ofInvestment from
Outflow
Investee Company
Paid-in Capital
Products
Investment
Taiwan as of(US$ in
Inflow(RMB in Thousands)
January 1, 2022 Thousands)(US$ in Thousands)

INFORMATION ON INVESTMENT IN MAINLAND CHINA
FOR YEAR ENDED DECEMBER 31, 2022
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited and Investees

100%

100%

Percentage ofOwnership$

20,473,263(Note 2)

12,223,165(Note 2)

Share of
Profits/Losses$

67,385,300

87,028,722

Carrying
Amountas ofBalance as ofDecember 31,
2022

$

-

-

Accumulated
InwardRemittance ofEarnings as ofDecember 31,
2022

TABLE 9

Note:

Major shareholders shows the list of all shareholders with ownership of 5 percent or greater.

ADR-Taiwan Semiconductor Manufacturing Company, Ltd.
National Development Fund, Executive Yuan

Shareholders (Note)

INFORMATION ON MAJOR SHAREHOLDERSDECEMBER 31, 2022

Taiwan Semiconductor Manufacturing Company Limited- 212- 212 - -5,319,233,558
1,653,709,980

Total Shares Owned

Shares20.51%
6.38%

Ownership Percentage

TABLE 10

THE CONTENTS OF STATEMENTS OF MAJOR
ACCOUNTING ITEMSITEMSTATEMENT INDEXMAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND
EQUITYSTATEMENT OF CASH AND CASH EQUIVALENTS
STATEMENT OF NOTES AND ACCOUNTS RECEIVABLE,NET
STATEMENT OF RECEIVABLES FROM RELATED PARTIESSTATEMENT OF INVENTORIESSTATEMENT OF CHANGES IN INVESTMENTS
ACCOUNTED FOR USING EQUITY METHODSTATEMENT OF CHANGES IN PROPERTY, PLANT AND
EQUIPMENTSTATEMENT OF CHANGES IN ACCUMULATED
DEPRECIATION AND ACCUMULATED IMPAIRMENT OF
PROPERTY, PLANT AND EQUIPMENT
STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETSSTATEMENT OF CHANGES IN INTANGIBLE ASSETSSTATEMENT OF DEFERRED INCOME TAX ASSETS /LIABILITIESSTATEMENT OF ACCOUNTS PAYABLESSTATEMENT OF PAYABLES TO RELATED PARTIESSTATEMENT OF PAYABLES TO CONTRACTORS AND
EQUIPMENT SUPPLIERS
STATEMENT OF ACCRUED EXPENSES AND OTHER
CURRENT LIABILITIESSTATEMENT OF BONDS PAYABLE
STATEMENT OF LEASE LIABILITIESMAJOR ACCOUNTING ITEMS IN PROFIT OR LOSSSTATEMENT OF NET REVENUE
STATEMENT OF COST OF REVENUE
STATEMENT OF OPERATING EXPENSES
STATEMENT OF FINANCE COSTSSTATEMENT OF LABOR, DEPRECIATION AND
AMORTIZATION BY FUNCTION- 213 - 213 -

1
2
3
4
5
Note 13
Note 13

6
Note 15
Note 24
7
8
9
10
11
12
13
14
15
Note 22
16

STATEMENT 1

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF CASH AND CASH EQUIVALENTSDECEMBER 31, 2022
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Item
Cash
Petty cash
Cash in banks
Checking accounts and demand deposits
Foreign currency deposits

Time deposits

Cash equivalents
Commercial paper
Repurchase agreements

Description

Amount$Including US$2,463,043 thousand@30.713, JPY123,900,844 thousand@0.2331 and EUR6,524 thousand@32.838
From 2022.01.12 to 2023.03.30, interest
rates at 0.76%-4.65%, including
NT$385,064,635 thousand andUS$3,926,603 thousand @30.713
Expired by 2023.01.16, interest rates at
1.455%-1.540%
Expired by 2023.01.12, interest rates at
4.70%

Total

280
8,043,873
104,742,973

505,662,377

9,566,430
859,964$ 628,875,897- 214 - 214 -STATEMENT 2

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF NOTES AND ACCOUNTS RECEIVABLE, NET
DECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Client Name

AmountClient A$

7,847,666

Client B

4,112,546

Client C

2,570,139

Client D

2,264,267

Client E

2,237,477

Client F

2,186,979

Client G

2,108,254

Others (Note)

18,315,194
41,642,522

Less: Allowance for doubtful accounts(330,686)

Total
Note:

$ 41,311,836
The amount of individual client included in others does not exceed 5% of the account balance.

- 215 - 215 -STATEMENT 3

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF RECEIVABLES FROM RELATED PARTIESDECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Client Name

Amount

TSMC North America$ 171,738,863

Others (Note)

1,305,949

Total
Note:

$ 173,044,812
The amount of individual client included in others does not exceed 5% of the account balance.

- 216 - 216 -STATEMENT 4

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF INVENTORIESDECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Item

Cost

AmountNet Realizable
Value

Finished goods$ 52,318,299$ 187,696,734

Work in process

120,893,772

499,205,556

Raw materials

19,750,618

19,750,618

Supplies and spare parts

15,320,206

15,320,206$ 208,282,895$ 721,973,114

Total- 217 - 217 -

1,033,339
1,033,339

15,372,500
23,150,164
865,370
39,388,034$ 40,421,373

$

-

-

$

$

(144,505)(62,532)(81,973)(144,505)-$ 85,027,757

13,558,094
21,225,806
503,873
28,274(40,891)
35,275,156$ 37,353,020
8,729,032(6,401,117)(1,203,593)
2,879,526
4,946,629
2,139,032
578,606
481,456
181,968
36,823
17,813
8,032
2,149
3,225
49,752,601-

11
988,268
1,270
1,020
464,223
213,619314
11,000111,282
46,688
49
15
6
80

- 218
- 218 --

Mainly including share of profit or loss of subsidiaries and associates, share of other comprehensive income of subsidiaries and associates, cash dividends received from subsidiaries and associates, etc.

-

500
962
38
-

100
100
99.9
98
98

100
100
100
71
28
68
39
100
41
35
100
100
100
100
100

$ 727,947,169

87,028,722
67,385,300
1,760,885
246,70271,429156,493,038$ 411,992,426
63,697,217
25,639,079
23,330,125
13,492,653
11,467,860
8,934,731
5,449,755
3,528,417
1,666,651
1,172,706
527,693
376,176
134,560
44,082571,454,131

Balance, December 31, 2022
Shares(In Thousands)%
AmountNote 2:$ 602,642,544

73,470,628
46,159,494
286,205
300,401
112,320
120,329,048$ 374,639,406
54,968,185
16,667,696
1,383,554
10,613,127
6,521,231
6,795,699
4,871,149
3,046,961
1,484,683
270,513509,880
368,144
132,41140,857482,313,496

Decrease in Investment
Shares(In Thousands)
AmountThe unit price is calculated by closing price of the Taipei Exchange or the TWSE as of December 30,2022.

-

11
988,268770
58464,223
213,619314
11,000111,282
46,6881115
680

Additions in Investment
Shares(In Thousands)
AmountIncrease(Decrease)in Using theEquity Method
Amount(Note 2)

Note 1:

Total

Capital
TSMC China
TSMC Nanjing
Emerging Fund
VTAF III
VTAF II
Subtotal

Stocks
TSMC Global
TSMC Partners
TSMC Arizona
JASM
VIS
VisEra Tech
SSMC
TSMC North America
XintecGUC
TSMC 3DIC
TSMC Europe
TSMC JDCTSMC Japan
TSMC Korea
Subtotal

Investees

Balance, January 1, 2022
Shares(In Thousands)
Amount

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHODFOR THE YEAR ENDED DECEMBER 31, 2022
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited$-

78 (Note 1)
194 (Note 1)
96 (Note 1)
641 (Note 1)-$ 816,102,092

87,432,993
67,501,436
1,760,885
223,399
65,183
156,983,896$ 411,992,426
63,772,657
25,639,110
23,330,125
35,977,321
41,335,277
8,722,941
5,449,755
10,716,449
29,926,918
1,172,706
527,693
376,176
134,560
44,082
659,118,196

Market Value or
Net Assets Value
Unit Price(NT$)
Total Amount

Nil
Nil
Nil
Nil
Nil

Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil

Collateral

STATEMENT 5STATEMENT 6

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF CHANGE IN RIGHT-OF-USE ASSETSFOR THE YEAR ENDED DECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Land

Item
Cost
Balance at January 1, 2022
Additions
Deductions
Balance at December 31, 2022
Accumulated depreciation
Balance at January 1, 2022
Additions
Deductions
Balance at December 31, 2022
Carrying amounts at December 31,
2022

Buildings

OfficeEquipment

Total$ 33,561,636
10,854,473(218,148)$

1,014,324
941,481(239,215)$

46,394
12,637(7,180)$ 34,622,354
11,808,591(464,543)$ 44,197,961$

1,716,590$

51,851$ 45,966,402$

4,035,848
2,102,934(62,656)$

440,315
365,167-$

23,13915,728(5,500)$4,499,302
2,483,829(68,156)$

6,076,126$805,482$

33,367$

6,914,975$ 38,121,835$

911,108$

18,484$ 39,051,427- 219 - 219 -STATEMENT 7

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF ACCOUNTS PAYABLESDECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Vendor Name

AmountVendor A$

4,194,602

Vendor B

2,914,140

Others (Note)

41,623,800

Total
Note:

$ 48,732,542
The amount of individual vendor included in others does not exceed 5% of the account balance.

- 220 - 220 -STATEMENT 8

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF PAYABLES TO RELATED PARTIESDECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Vendor Name

Amount

TSMC Nanjing$

4,105,919

TSMC China

2,296,083

Xintec1,047,374

WaferTech

855,952

TSMC Technology

744,620

Others (Note)

1,001,096

Total
Note:

$ 10,051,044
The amount of individual vendor in others does not exceed 5% of the account balance.

- 221 - 221 -STATEMENT 9

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF PAYABLES TO CONTRACTORS AND EQUIPMENT SUPPLIERSDECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Vendor Name

AmountVendor A$ 68,126,719

Vendor B

23,307,326

Vendor C

12,817,271

Vendor D

12,757,447

Vendor E

10,621,411

Others (Note)

72,415,844

Total
Note:

$ 200,046,018
The amount of individual vendor included in others does not exceed 5% of the account balance.

- 222 - 222 -STATEMENT 10

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIESDECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Item

AmountTemporary receipts from customers$ 107,723,580

Contract liabilities

62,380,554

Refund liability

50,980,669

Others (Note)

45,818,270

Total
Note:

$ 266,903,073
The amount of each item in others does not exceed 5% of the account balance.

- 223 - 223 -2013.09.25
2013.09.25
2020.03.23
2020.03.23
2020.03.23
2020.04.15
2020.04.15
2020.04.15
2020.05.29
2020.05.29
2020.05.29
2020.07.14

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.

Mega International Commercial Bank Co.,Ltd.

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

Domestic unsecured bonds-110-1
-A
-B
-C

Taipei Fubon Commercial Bank Co., Ltd.

-C

Domestic US$ unsecured bonds-109-1

Taipei Fubon Commercial Bank Co., Ltd.

-B

Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.

-C

Domestic unsecured bonds-109-7-A

Taipei Fubon Commercial Bank Co., Ltd.

2021.03.30
2021.03.30
2021.03.30

2020.09.22

2020.12.29

2020.12.29

2020.12.29

2020.12.02

2020.12.02

2020.12.02

2020.09.03

Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.

2020.09.03

2020.09.03

2020.07.14

Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.

-B

Domestic unsecured bonds-109-6
-A

-C

-B

Domestic unsecured bonds-109-5-A

Taipei Fubon Commercial Bank Co., Ltd.

2013.07.16

Taipei Fubon Commercial Bank Co., Ltd.

-C

2013.02.06

Taipei Fubon Commercial Bank Co., Ltd.

2020.07.14

2013.01.04

Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.

2012.10.09

Issuance Date

Taipei Fubon Commercial Bank Co., Ltd.

Trustee-B

Domestic unsecured bonds-101-3
Domestic unsecured bonds-101-4-C
Domestic unsecured bonds-102-1-C
Domestic unsecured bonds-102-2-B
Domestic unsecured bonds-102-4-E-F
Domestic unsecured bonds-109-1-A-B-C
Domestic unsecured bonds-109-2-A-B-C
Domestic unsecured bonds-109-3-A-B-C
Domestic unsecured bonds-109-4-A

Bonds Name

STATEMENT OF BONDS PAYABLEDECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Taiwan Semiconductor Manufacturing Company Limited

On 03.30 annually
On 03.30 annually
On 03.30 annually

On 09.22 annually

On 12.29 annually

On 12.29 annually

On 12.29 annually

On 12.02 annually

On 12.02 annually

On 12.02 annually

On 09.03 annually

On 09.03 annually

On 09.03 annually

On 07.14 annually

On 07.14 annually

On 07.14 annually

On 05.29 annually
On 05.29 annually
On 05.29 annually

On 04.15 annually
On 04.15 annually
On 04.15 annually

On 03.23 annually
On 03.23 annually
On 03.23 annually

On 09.25 annually
On 09.25 annually

On 07.16 annually

On 02.06 annually

On 01.04 annually

On 10.09 annuallyInterest
Payment Date

0.50
0.55
0.60

2.70

0.45

0.41

0.36

0.48

0.44

0.40

0.60

0.58

0.50

0.67

0.65

0.58

0.55
0.60
0.64

0.52
0.58
0.60

0.58
0.62
0.64

2.05
2.10

1.70

1.50

1.49

1.53

CouponRate (%)

4,800,000
11,400,000
4,900,000

30,713,000

6,400,000

10,200,000

1,900,000

4,800,000

5,600,000

1,600,000

2,800,000

8,000,000

4,800,000

1,900,000

6,300,000

5,700,000

4,500,000
7,500,000
2,400,000

5,900,000
10,400,000
5,300,000

3,000,000
10,500,000
10,500,000

5,400,000
2,600,000

3,500,000

3,600,000

3,000,000

4,400,000- 224- 224 --$

Total Amount
$

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

4,400,000

Repayment
Paid
$

-

4,800,000
11,400,000
4,900,000

30,713,000

6,400,000

10,200,000

1,900,000

4,800,000

5,600,000

1,600,000

2,800,000

8,000,000

4,800,000

1,900,000

6,300,000

5,700,000

4,500,000
7,500,000
2,400,000

5,900,000
10,400,000
5,300,000

3,000,000
10,500,000
10,500,000

5,400,000
2,600,000

3,500,000

3,600,000

3,000,000

AmountBalance,End of Year
$

-

-

-

-

-

(3,218)(8,828)(4,181)(30,824)(5,245)(7,302)(1,091)(4,254)(4,316)(978)(2,215)(5,361)(2,426)(1,484)(4,108)(2,706)(2,277)(4,953)(1,872)(2,785)(6,562)(3,986)(1,394)(6,634)(7,929)Premiums(Discounts)$

4,796,782
11,391,172
4,895,819

30,682,176

6,394,755

10,192,698

1,898,909

4,795,746

5,595,684

1,599,022

2,797,785

7,994,639

4,797,574

1,898,516

6,295,892

5,697,294

4,497,723
7,495,047
2,398,128

5,897,215
10,393,438
5,296,014

2,998,606
10,493,366
10,492,071

5,400,000
2,600,000

3,500,000

3,600,000

3,000,000

Carrying Value-

Bullet repayment
Bullet repayment
Bullet repayment

Two equal installments
in last two years
Two equal installments
in last two years
Two equal installments
in last two years
Bullet repayment(callable on the 5th
anniversary of theissue date and every
anniversary
thereafter)

Two equal installments
in last two years
Two equal installments
in last two years
Two equal installments
in last two years

Two equal installments
in last two years
Two equal installments
in last two years
Two equal installments
in last two years

Two equal installments
in last two years
Two equal installments
in last two years
Two equal installments
in last two years

Bullet repayment
Bullet repayment
Bullet repayment

Bullet repayment
Bullet repayment
Bullet repayment

Bullet repayment
Bullet repayment
Bullet repayment

Bullet repayment
Bullet repayment

Bullet repayment

Bullet repayment

Bullet repayment

Bullet repayment

Unamortized
Repayment(Continued)

Nil
Nil
Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil
Nil
Nil

Nil
Nil
Nil

Nil
Nil
Nil

Nil
Nil

Nil

Nil

Nil

Nil

Collateral

STATEMENT 11

Less: Current portion

TOTAL

Domestic unsecured bonds-110-6
-A
-B
-C
-D
Domestic unsecured bonds-110-7-A-B-C
Domestic unsecured bonds-111-1-A-B
Domestic unsecured bonds-111-2-A-B-C
Domestic unsecured bonds-111-3
Domestic unsecured bonds-111-4
-A
-B
-C
-D
Domestic unsecured bonds-111-5
-A
-B
-C
-D
Domestic unsecured bonds-111-6
-A
-B
-C

Domestic unsecured bonds-110-2-A-B-C
Domestic unsecured bonds-110-3-A-B-C
Domestic unsecured bonds-110-4
-A
-B
-C
-D
Domestic US$ unsecured bonds-110-5

Bonds Name

2021.12.09
2021.12.09
2021.12.09
2022.01.12
2022.01.12
2022.03.29
2022.03.29
2022.03.29
2022.05.20
2022.07.27
2022.07.27
2022.07.27
2022.07.27
2022.08.25
2022.08.25
2022.08.25
2022.08.25
2022.10.20
2022.10.20
2022.10.20

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

2021.08.19
2021.08.19
2021.08.19
2021.08.19
2021.09.23

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Mega International Commercial Bank Co.,Ltd.

2021.10.05
2021.10.05
2021.10.05
2021.10.05

2021.06.25
2021.06.25
2021.06.25

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

2021.05.03
2021.05.03
2021.05.03

Issuance Date

Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.
Taipei Fubon Commercial Bank Co., Ltd.

TrusteeOn 10.20 annually
On 10.20 annually
On 10.20 annually

On 08.25 annually
On 08.25 annually
On 08.25 annually
On 08.25 annually

On 07.27 annually
On 07.27 annually
On 07.27 annually
On 07.27 annually

On 03.29 annually
On 03.29 annually
On 03.29 annually
On 05.20 annually

On 01.12 annually
On 01.12 annually

On 12.09 annually
On 12.09 annually
On 12.09 annually

On 10.05 annually
On 10.05 annually
On 10.05 annually
On 10.05 annually

On 08.19 annually
On 08.19 annually
On 08.19 annually
On 08.19 annually
On 09.23 annually

On 06.25 annually
On 06.25 annually
On 06.25 annually

On 05.03 annually
On 05.03 annually
On 05.03 annuallyInterest
Payment Date

1.75
1.80
2.00

1.65
1.65
1.65
1.82

1.60
1.70
1.75
1.95

0.84
0.85
0.90
1.50

0.63
0.72

0.65
0.675
0.72

0.535
0.54
0.60
0.62

0.485
0.50
0.55
0.62
3.10

0.52
0.58
0.65

0.50
0.58
0.65

CouponRate (%)

383,926,000

5,700,000
1,000,000
3,500,000

2,000,000
8,900,000
2,200,000
2,500,000

1,200,000
10,100,000
1,200,000
1,400,000

3,000,000
9,600,000
1,600,000
6,100,000

2,100,000
3,300,000

7,700,000
3,500,000
5,500,000

3,200,000
6,900,000
4,600,000
1,600,000

4,000,000
8,000,000
5,400,000
4,200,000
30,713,000

6,900,000
7,900,000
4,900,000

5,200,000
8,400,000
5,600,000- 225- 225 --$$

Total Amount

$

$

-

-

-

-

-

-

-

-

-

-

4,400,000

Repayment
Paid

$

$

379,526,000

5,700,000
1,000,000
3,500,000

2,000,000
8,900,000
2,200,000
2,500,000

1,200,000
10,100,000
1,200,000
1,400,000

3,000,000
9,600,000
1,600,000
6,100,000

2,100,000
3,300,000

7,700,000
3,500,000
5,500,000

3,200,000
6,900,000
4,600,000
1,600,000

4,000,000
8,000,000
5,400,000
4,200,000
30,713,000

6,900,000
7,900,000
4,900,000

5,200,000
8,400,000
5,600,000

AmountBalance,End of Year$$

(295,526)(6,000)(1,070)(3,768)(1,907)(8,503)(2,153)(2,487)(1,122)(9,636)(1,180)(1,403)(2,579)(8,417)(1,482)(5,961)(2,083)(3,498)(6,251)(2,908)(4,820)(2,386)(5,344)(3,904)(1,447)(2,687)(5,928)(4,435)(3,708)(30,811)(4,963)(6,396)(4,294)(3,592)(6,633)(4,841)

Premiums(Discounts)$$

361,130,474(18,100,000)

379,230,474

5,694,000
998,930
3,496,232

1,998,093
8,891,497
2,197,847
2,497,513

1,198,878
10,090,364
1,198,820
1,398,597

2,997,421
9,591,583
1,598,518
6,094,039

2,097,917
3,296,502

7,693,749
3,497,092
5,495,180

3,197,614
6,894,656
4,596,096
1,598,553

3,997,313
7,994,072
5,395,565
4,196,292
30,682,189

6,895,037
7,893,604
4,895,706

5,196,408
8,393,367
5,595,159

Carrying Value

Bullet repayment
Bullet repayment
Bullet repayment

Bullet repayment
Bullet repayment
Bullet repayment
Bullet repayment

Bullet repayment
Bullet repayment
Bullet repayment
Bullet repayment

Bullet repayment
Bullet repayment
Bullet repayment
Bullet repayment

Bullet repayment
Bullet repayment

Bullet repayment
Bullet repayment
Bullet repayment

Bullet repayment
Bullet repayment
Bullet repayment
Bullet repayment

Bullet repayment
Bullet repayment
Bullet repayment
Bullet repayment
Bullet repayment(callable on the 5th
anniversary of theissue date and every
anniversary
thereafter)

Bullet repayment
Bullet repayment
Bullet repayment

Bullet repayment
Bullet repayment
Bullet repayment

Unamortized
Repayment(Concluded)

Nil
Nil
Nil

Nil
Nil
Nil
Nil

Nil
Nil
Nil
Nil

Nil
Nil
Nil
Nil

Nil
Nil

Nil
Nil
Nil

Nil
Nil
Nil
Nil

Nil
Nil
Nil
Nil
Nil

Nil
Nil
Nil

Nil
Nil
Nil

Collateral

STATEMENT 12

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF LEASE LIABILITIESDECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Item

Description

Lease Term

Discount
Rate (%)

Balance,End of YearLand

Mainly for the use of plants
and offices

1 to 22 years

0.39-2.30$ 28,728,579

Buildings

Mainly for the use of offices

2 to 12 years

0.39-1.76

875,258

Office equipment

For operation use

3 to 5 years

0.28-1.73

19,42529,623,262

Less: Current portion(2,029,362)

Noncurrent portion$ 27,593,900- 226 - 226 -STATEMENT 13

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF NET REVENUEFOR THE YEAR ENDED DECEMBER 31, 2022
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Shipments(Piece) (Note)

Item
Wafer
Other

15,252,882

Net revenue
Note:

Amount$ 1,989,174,117
263,146,444$ 2,252,320,561

12-inch equivalent wafers.

- 227 - 227 -STATEMENT 14

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF COST OF REVENUEFOR THE YEAR ENDED DECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Item

AmountRaw materials used
Balance, beginning of year
Raw material purchased
Raw materials, end of year
Transferred to manufacturing or operating expenses
OthersSubtotal
Direct labor
Manufacturing expenses
Manufacturing cost
Work in process, beginning of year
Work in process, end of year
Transferred to manufacturing or operating expenses
Cost of finished goods
Finished goods, beginning of year
Finished goods purchased
Finished goods, end of year
Transferred to manufacturing or operating expenses
Scrapped
Subtotal
Others$ 10,368,446
76,596,173(19,750,618)(11,776,664)(281,987)
55,155,350
23,183,318
845,383,788
923,722,456
134,097,879(120,893,772)(54,417,005)
882,509,558
32,290,346
90,043,394(52,318,299)(23,135,990)(294,302)
929,094,707
22,832,966

Total$ 951,927,673- 228 - 228 -STATEMENT 15

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF OPERATING EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2022
(In Thousands of New Taiwan Dollars)

Research andDevelopment
Expenses

General and
Administrative
Expenses$ 61,119,834$ 19,188,325

Consumables

49,628,294

657,200

12

Depreciation expense

25,971,756

1,940,529

27,393

Repair and maintenance expense

6,645,607

3,770,902

3,695Management fees of the Science Park Administration-

4,162,547-

Patents-

2,937,121-

Commission--

1,160,080

Others (Note)

17,448,142

10,108,018

308,468$ 160,813,633$ 42,764,642

Item
Payroll and related expense

Total
Note:

The amount of each item in others does not exceed 5% of the account balance.

- 229 - 229 -Selling
Expenses$$

4,560,001

6,059,649

$2,637,232

$

$

$

$

-

8,189

-

-

$

8,706,961$ 413,595,082$ 213,582,711$ 196,120,585
8,729,355
3,872,184
743,990
4,116,597

Total

$

5,510,463$ 375,608,062$ 90,226,056$ 81,828,800
4,214,578
2,084,604
2,098,074

Classified as
Cost of Revenue$

2,590,267$ 27,176,646$ 56,889,553$ 51,640,741
2,511,734
1,135,950
507,304
1,093,824

$

$

$

$

$

8,100,730$ 402,931,257$ 147,115,609$ 133,469,541
6,726,312
3,220,554
507,304
3,191,898

Total

- 230
- 230 - -Note 7: According to the Company’s Articles of Incorporation, the Board of Directors is authorized to determine the salary for the Chairman, Vice Chairman and Directors, taking into account the extent and value of the services provided for the
management of the Company and the standards of the industry within the R.O.C. and overseas. The Articles of Incorporation also provide that the compensation to directors shall be no more than 0.3% of annual profits and directors who
also serve as executive officers of the Company are not entitled to receive compensation to directors. The distribution of compensation to directors shall be made in accordance with the Company’s “Rules for Distribution of Compensation
to Directors” based on the following principles: (1) directors who also serve as executive officers of the Company are not entitled to receive compensation; (2) the compensation for independent directors may be higher than the other directors,
as all independent directors also serve as members of the Audit Committee (Note 9) and the Compensation Committee (Note 8) and thus participate in the discussions as well as resolutions of related committee meetings in accordance withthe charter of each committee; and (3) the compensation for overseas independent directors may be higher than domestic independent directors.
Note 8: Compensation Committee renamed to Compensation and People Development Committee from February 14, 2023.
Note 9: Audit Committee renamed to Audit and Risk Committee from February 14, 2023.

Note 6: The total compensation paid to the executive officers is decided based on their job responsibility, contribution, company performance and projected future risks the Company will face. It is reviewed by the Compensation Committee (Note8) then submitted to the Board of Directors for approval.

Note 5: The Company’s compensation policies: The Company’s employees are entitled to a comprehensive compensation and benefits program above the industry average. The compensation program includes a monthly salary, business performancebonuses based on quarterly business results, a profit sharing bonus based on annual profits, and a subsidy based on Employee Stock Purchase Plan. The Company determines the amount of the business performance bonus and profit sharing
based on operating results and industry practice in the R.O.C.. The amount and distribution of the bonus and profit sharing are recommended by the Compensation Committee (Note 8) to the Board of Directors for approval. Individual
rewards are based on each employee’s job responsibility, contribution and performance.

Note 4: The Company did not have supervisors for the years ended December 31, 2022 and 2021. Therefore, there was no compensation to the supervisor.

-

146,549--

Year Ended December 31, 2021
Classified as
OtherClassified as
OperatingOperating
IncomeExpensesand Expenses

Note 3: Average salary and bonus for the years ended December 31, 2022 and 2021 were NT$3,175 thousand and 2,463 thousand, respectively. The average salary and bonus increased by 28.91% year over year.

Note 2: Average labor cost for the years ended December 31, 2022 and 2021 were NT$3,446 thousand and 2,706 thousand, respectively.

Note 1: As of December 31, 2022 and 2021, the Company had 61,777 and 54,193 employees, respectively. There were both 9 non-employee directors.

6,069,729$

Amortization$ 27,939,678$ 84,868,160$ 128,714,551$ 385,647,215$ 78,041,998
3,306,536
1,364,188743,990
1,411,448

Year Ended December 31, 2022
Classified as
OtherClassified as
OperatingOperating
IncomeExpensesand Expenses$ 118,078,587
5,422,819
2,507,996
2,705,149

Classified as
Cost of Revenue

Depreciation

Labor cost
Salary and bonus
Labor and health insurance
PensionBoard compensation
OthersSTATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION
FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT 16

8, Li-Hsin Rd. 6, Hsinchu Science Park,
Hsinchu 300-096, Taiwan, R.O.C.
Tel: +886-3-5636688 Fax: +886-3-5637000
https://www.tsmc.com

Taiwan Semiconductor Manufacturing Company, Ltd.

Mark Liu, Chairman