# EDGAR Filing Document

**Accession Number:** 0001046179
**File Stem:** 0001046179-26-000278
**Filing Date:** 2026-5
**Character Count:** 182354
**Document Hash:** a9251d7c3af2c943953b3cd363a0592c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001046179-26-000278.hdr.sgml**: 20260515

**ACCESSION NUMBER**: 0001046179-26-000278

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260515

**DATE AS OF CHANGE**: 20260515

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD
- **CENTRAL INDEX KEY:** 0001046179
- **STANDARD INDUSTRIAL CLASSIFICATION:** SEMICONDUCTORS & RELATED DEVICES [3674]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14700
- **FILM NUMBER:** 26982335

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NO. 8, LI-HSIN ROAD 6
- **STREET 2:** HSINCHU SCIENCE PARK
- **CITY:** HSINCHU
- **PROVINCE COUNTRY:** F5
- **BUSINESS PHONE:** 886-3-5636688

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NO. 8, LI-HSIN ROAD 6
- **STREET 2:** HSINCHU SCIENCE PARK
- **CITY:** HSINCHU
- **PROVINCE COUNTRY:** F5

1934 Act Registration No. 1-14700

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

_____________________________

**FORM 6-K**

_____________________________

**REPORT OF FOREIGN PRIVATE ISSUER**

**PURSUANT TO RULE 13a-16 OR 15d-16 UNDER**

**THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of May 2026**

**(Commission File Number: 001-14700)**

_____________________________

**Taiwan Semiconductor Manufacturing Company Limited**

**(Translation of Registrant's Name Into English)**

_____________________________

**No. 8, Li-Hsin Road 6**

**Hsinchu Science Park**

**Hsinchu 300-096, Taiwan**

**Republic of China**

**(Address of Principal Executive Offices)**

_____________________________

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ⌧&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form 40-F □

Indicate by check mark if the registrant is submitting the Form 6-K in papers as permitted by Regulation S-T Rule 101(b)(1): □

Indicate by check mark if the registrant is submitting the Form 6-K in papers as permitted by Regulation S-T Rule 101(b)(7): □

------

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| |
|:---|
| **SIGNATURES** |
| Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |

---

---

| | | |
|:---|:---|:---|
| | Taiwan Semiconductor Manufacturing Company Limited | Taiwan Semiconductor Manufacturing Company Limited |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date: May 15, 2026 | By | &nbsp;&nbsp;&nbsp;&nbsp;/s/ Wendell Huang |
| | | &nbsp;&nbsp;&nbsp;&nbsp;Wendell Huang |
| | | &nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President and Chief Financial Officer |

---

------

**Exhibits**

---

| | |
|:---|:---|
| **Exhibit Number** | **Exhibit Description** |
| 99.1 | <u>[Consolidated Financial Statements for the Three Months Ended March 31, 2026 and 2025 and Independent Auditors' Review Report pursuant to International Financial Reporting Standards adopted by ROC ("Taiwan-IFRSs")](a2026q1consolidatedreport-.htm)</u> |

---

## Exhibit 99.1

<u>English Translation of Financial Statements Originally Issued in Chinese</u>

**Taiwan Semiconductor Manufacturing** 

**Company Limited and Subsidiaries**

**Consolidated Financial Statements for the** 

**Three Months Ended March 31, 2026 and 2025 and**

**Independent Auditors' Review Report**

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel :+886 (2) 2725-9988

Fax:+886 (2) 4051-6888

www.deloitte.com.tw

**INDEPENDENT AUDITORS' REVIEW REPORT**

The Board of Directors and Shareholders

Taiwan Semiconductor Manufacturing Company Limited

**Introduction**

We have reviewed the accompanying consolidated balance sheets of Taiwan Semiconductor

Manufacturing Company Limited and its subsidiaries (collectively, the "Company") as of March 31,

2026 and 2025, the related consolidated statements of comprehensive income, changes in equity and

cash flows for the three months then ended, and the related notes to the consolidated financial

statements, including material accounting policy information (collectively referred to as 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 International Accounting Standard 34

"Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory

Commission of the Republic of China. Our responsibility is to express a conclusion on the

consolidated financial statements based on our reviews.

**Scope of Review**

We conducted our reviews in accordance with the Standards on Review Engagements of the Republic

of China 2410 "Review of Interim Financial Information Performed by the Independent Auditor of

the Entity". A review of consolidated financial statements consists of making inquiries, primarily of

persons responsible for financial and accounting matters, and applying analytical and other review

procedures. A review is substantially less in scope than an audit and consequently does not enable us

to obtain assurance that we would become aware of all significant matters that might be identified in

an audit. Accordingly, we do not express an audit opinion.

**Conclusion**

Based on our reviews, nothing has come to our attention that caused us to believe that the

accompanying consolidated financial statements do not present fairly, in all material respects, the

consolidated financial position of the Company as of March 31, 2026 and 2025, its consolidated

financial performance and its consolidated cash flows for the three months ended March 31, 2026 and

2025 in accordance with the Regulations Governing the Preparation of Financial Reports by

Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed

and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are Shih

Tsung Wu and Yen Chun Chen.

![imagea.jpg](imagea.jpg)

Deloitte & Touche

Taipei, Taiwan

Republic of China

May 12, 2026

*<u>Notice to Readers</u>*

*The accompanying consolidated financial statements are intended only to present the consolidated* 

*financial position, financial performance and cash flows in accordance with accounting principles* 

*and practices generally accepted in the Republic of China and not those of any other jurisdictions.* 

*The standards, procedures and practices to review such consolidated financial statements are those* 

*generally applied in the Republic of China.*

*For the convenience of readers, the independent auditors' review report and the accompanying* 

*consolidated financial statements have been translated into English from the original Chinese version* 

*prepared and used in the Republic of China. 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 independent auditors' review report and consolidated financial statements shall prevail.*

---

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

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **December 31, 2025** | **December 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
| **ASSETS** |  |  |  |  |  |  |
| CURRENT ASSETS |  |  |  |  |  |  |
| Cash and cash equivalents (Note 6) | $3035637228 | 35 | $2767856402 | 35 | $2394804250 | 34 |
| Financial assets at fair value through profit or loss (Note 7) | 5408 | - | 100200 | - | 54369 | - |
| Financial assets at fair value through other comprehensive income (Note 8) | 194897632 | 2 | 175692690 | 2 | 189928311 | 3 |
| Financial assets at amortized cost (Note 9) | 153049764 | 2 | 124945519 | 2 | 118298376 | 2 |
| Hedging financial assets (Note 10) | 11578 | - | - | - | - | - |
| Notes and accounts receivable, net (Note 11) | 357742772 | 4 | 279051553 | 3 | 241682270 | 3 |
| Receivables from related parties (Note 31) | 5262358 | - | 2739500 | - | 2267052 | - |
| Other receivables from related parties (Note 31) | 1684818 | - | 268115 | - | 252 | - |
| Inventories (Note 12) | 311453459 | 4 | 288109485 | 4 | 293387615 | 4 |
| Other financial assets (Notes 28, 29 and 32) | 69393965 | 1 | 59702922 | 1 | 59537615 | 1 |
| Other current assets (Notes 28 and 29) | 136373194 | 1 | 118664431 | 1 | 45703772 | - |
| Total current assets | 4265512176 | 49 | 3817130817 | 48 | 3345663882 | 47 |
| NONCURRENT ASSETS |  |  |  |  |  |  |
| Financial assets at fair value through profit or loss (Note 7) | 15582292 | - | 15032128 | - | 15485300 | - |
| Financial assets at fair value through other comprehensive income (Note 8) | 9704803 | - | 8797170 | - | 8337662 | - |
| Financial assets at amortized cost (Note 9) | 103514079 | 1 | 110507804 | 1 | 98203676 | 1 |
| Investments accounted for using equity method (Note 13) | 37765362 | - | 38033271 | 1 | 38766658 | 1 |
| Property, plant and equipment (Notes 14 and 28) | 3954679396 | 46 | 3691840916 | 47 | 3400806154 | 48 |
| Right-of-use assets (Note 15) | 45965593 | 1 | 43918910 | 1 | 41303416 | 1 |
| Intangible assets (Note 16) | 24728596 | - | 24952615 | - | 25450343 | - |
| Deferred income tax assets (Note 4) | 65327650 | 1 | 62940253 | 1 | 66666777 | 1 |
| Refundable deposits | 4356387 | - | 4242553 | - | 5583601 | - |
| Other noncurrent assets (Notes 28 and 29) | 133813351 | 2 | 115627441 | 1 | 87019951 | 1 |
| Total noncurrent assets | 4395437509 | 51 | 4115893061 | 52 | 3787623538 | 53 |
| TOTAL | $8660949685 | 100 | $7933023878 | 100 | $7133287420 | 100 |
| **LIABILITIES AND EQUITY** |  |  |  |  |  |  |
| CURRENT LIABILITIES |  |  |  |  |  |  |
| Financial liabilities at fair value through profit or loss (Note 7) | $3076876 | - | $3083883 | - | $2069289 | - |
| Hedging financial liabilities (Note 10) | - | - | 817 | - | 3462 | - |
| Accounts payable | 98055133 | 1 | 82551595 | 1 | 75637284 | 1 |
| Payables to related parties (Note 31) | 1800925 | - | 1778730 | - | 1216344 | - |
| Salary and bonus payable | 61526478 | 1 | 63872882 | 1 | 40951448 | - |
| Accrued profit sharing bonus to employees and compensation to directors (Note 27) | 137670588 | 1 | 103355278 | 1 | 92607250 | 1 |
| Payables to contractors and equipment suppliers | 243926716 | 3 | 177730306 | 2 | 199087045 | 3 |
| Cash dividends payable (Note 19) | 311190294 | 4 | 285258060 | 4 | 233394600 | 3 |
| Income tax payable (Note 4) | 318839088 | 4 | 202337872 | 2 | 217332999 | 3 |
| Long-term liabilities - current portion (Notes 17, 18 and 29) | 156241738 | 2 | 136925710 | 2 | 61771648 | 1 |
| Accrued expenses and other current liabilities (Notes 15, 20 and 29) | 381925612 | 4 | 401124156 | 5 | 475731629 | 7 |
| Total current liabilities | 1714253448 | 20 | 1458019289 | 18 | 1399802998 | 19 |
| NONCURRENT LIABILITIES |  |  |  |  |  |  |
| Bonds payable (Notes 17 and 29) | 860026070 | 10 | 856227503 | 11 | 948256974 | 13 |
| Long-term bank loans (Note 18) | 40991672 | 1 | 39834496 | 1 | 38726925 | 1 |
| Deferred income tax liabilities (Note 4) | 3881756 | - | 3888795 | - | 3968524 | - |
| Lease liabilities (Note 15) | 33509235 | - | 31594992 | - | 29121821 | - |
| Net defined benefit liability (Note 4) | 5940382 | - | 6012286 | - | 5378586 | - |
| Guarantee deposits | 777505 | - | 764178 | - | 854533 | - |
| Others (Note 20) | 69180696 | 1 | 75887056 | 1 | 105552602 | 2 |
| Total noncurrent liabilities | 1014307316 | 12 | 1014209306 | 13 | 1131859965 | 16 |
| Total liabilities | 2728560764 | 32 | 2472228595 | 31 | 2531662963 | 35 |
| EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT  |  |  |  |  |  |  |
| Capital stock (Note 19) | 259323701 | 3 | 259325245 | 3 | 259326155 | 4 |
| Capital surplus (Notes 19 and 26) | 73665831 | 1 | 73445601 | 1 | 73307187 | 1 |
| Retained earnings (Note 19) |  |  |  |  |  |  |
| Appropriated as legal capital reserve | 311146899 | 4 | 311146899 | 4 | 311146899 | 4 |
| Appropriated as special capital reserve | 16199411 | - | 87284496 | 1 | - | - |
| Unappropriated earnings | 5193142174 | 60 | 4705070165 | 59 | 3851130370 | 54 |
|  | 5520488484 | 64 | 5103501560 | 64 | 4162277269 | 58 |
| Others (Notes 19 and 26) | 37482236 | - | (16676412) | - | 69251969 | 1 |
| Equity attributable to shareholders of the parent | 5890960252 | 68 | 5419595994 | 68 | 4564162580 | 64 |
| NON - CONTROLLING INTERESTS | 41428669 | - | 41199289 | 1 | 37461877 | 1 |
| Total equity | 5932388921 | 68 | 5460795283 | 69 | 4601624457 | 65 |
| TOTAL  | $8660949685 | 100 | $7933023878 | 100 | $7133287420 | 100 |

---

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

---

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

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2026** | **2025** | **2025** |
|  | **Amount** | **%** | **Amount** | **%** |
| NET REVENUE (Notes 20, 31 and 37) | $1134103440 | 100 | $839253664 | 100 |
| COST OF REVENUE (Notes 12, 27, 31 and 34) | 382808019 | 34 | 345858588 | 41 |
| GROSS PROFIT | 751295421 | 66 | 493395076 | 59 |
| OPERATING EXPENSES (Notes 27 and 31) |  |  |  |  |
| Research and development | 67756685 | 6 | 56547493 | 7 |
| General and administrative | 21833650 | 2 | 24883748 | 3 |
| Marketing | 4415322 | - | 3754815 | - |
| Total operating expenses | 94005657 | 8 | 85186056 | 10 |
| OTHER OPERATING INCOME AND EXPENSES, NET <br>(Notes 14, 27 and 34)<br>| 1676378 | - | (1128212) | - |
| INCOME FROM OPERATIONS (Note 37) | 658966142 | 58 | 407080808 | 49 |
| NON-OPERATING INCOME AND EXPENSES |  |  |  |  |
| Share of profits of associates | 1684904 | - | 1368307 | - |
| Interest income (Note 21) | 28862263 | 3 | 24859312 | 3 |
| Other income | 124339 | - | 51509 | - |
| Foreign exchange gain, net (Note 35) | 6178922 | 1 | 3538319 | - |
| Finance costs (Note 22) | (2716862) | - | (2677274) | - |
| Other gains and losses, net (Note 23) | (5300021) | (1) | (3325569) | (1) |
| Total non-operating income and expenses | 28833545 | 3 | 23814604 | 2 |
| INCOME BEFORE INCOME TAX | 687799687 | 61 | 430895412 | 51 |
| INCOME TAX EXPENSE (Notes 4 and 24) | 114998383 | 10 | 70162751 | 8 |
| NET INCOME | 572801304 | 51 | 360732661 | 43 |
| OTHER COMPREHENSIVE INCOME (LOSS) (Note 19) |  |  |  |  |
| Items that will not be reclassified subsequently to profit <br>or loss:<br>|  |  |  |  |
| Unrealized gain (loss) on investments in equity <br>instruments at fair value through other <br>comprehensive income<br>| 2551451 | - | (373521) | - |
| Share of other comprehensive income (loss) of <br>associates<br>| 88414 | - | (68654) | - |
|  | 2639865 | - | (442175) | - |
|  |  |  | (Continued) | (Continued) |

---

---

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

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2026** | **2025** | **2025** |
|  | **Amount** | **%** | **Amount** | **%** |
| Items that may be reclassified subsequently to profit or <br>loss:<br>|  |  |  |  |
| Exchange differences arising on translation of foreign <br>operations<br>| $52958177 | 4 | $30220692 | 4 |
| Unrealized gain (loss) on investments in debt <br>instruments at fair value through other <br>comprehensive income<br>| (1854480) | - | 2053235 | - |
| Loss on hedging instruments | (21091) | - | (21068) | - |
| Share of other comprehensive income of associates | 273180 | - | 86244 | - |
|  | 51355786 | 4 | 32339103 | 4 |
| Other comprehensive income, net of income tax | 53995651 | 4 | 31896928 | 4 |
| TOTAL COMPREHENSIVE INCOME | $626796955 | 55 | $392629589 | 47 |
| NET INCOME ATTRIBUTABLE TO: |  |  |  |  |
| Shareholders of the parent | $572479752 | 50 | $361564128 | 43 |
| Non-controlling interests | 321552 | 1 | (831467) | - |
|  | $572801304 | 51 | $360732661 | 43 |
| TOTAL COMPREHENSIVE INCOME <br>ATTRIBUTABLE TO:<br>|  |  |  |  |
| Shareholders of the parent | $626591326 | 55 | $391813092 | 47 |
| Non-controlling interests | 205629 | - | 816497 | - |
|  | $626796955 | 55 | $392629589 | 47 |
| EARNINGS PER SHARE (NT$, Note 25) |  |  |  |  |
| Basic earnings per share | $22.08 |  | $13.95 |  |
| Diluted earnings per share | $22.08 |  | $13.94 |  |
| The accompanying notes are an integral part of the consolidated financial statements. | The accompanying notes are an integral part of the consolidated financial statements. | The accompanying notes are an integral part of the consolidated financial statements. | (Concluded) | (Concluded) |

---

---

| |
|:---|
| **Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries** |
| **CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY** |
| **(In Thousands of New Taiwan Dollars)** |

---

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** | **Equity Attributable to Shareholders of the Parent** |  |  |
|  |  |  |  |  |  |  |  | **Others** | **Others** | **Others** | **Others** | **Others** |  |  |  |
|  | **Capital Stock - Common Stock** | **Capital Stock - Common Stock** |  | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Foreign**<br>**Currency**<br>**Translation**<br>**Reserve** | **Unrealized**<br>**Gain (Loss) on**<br>**Financial**<br>**Assets at Fair**<br>**Value Through**<br>**Other**<br>**Comprehensive**<br>**Income** | **Gain (Loss) on**<br>**Hedging**<br>**Instruments** | **Unearned** <br>**Stock-Based**<br>**Employee**<br>**Compensation** | **Total** | **Total** | **Non-controlling**<br>**Interests** | **Total**<br>**Equity** |
|  | **Shares** |  |  | **Legal Capital** | **Special Capital** | **Unappropriated** |  | **Foreign**<br>**Currency**<br>**Translation**<br>**Reserve** | **Unrealized**<br>**Gain (Loss) on**<br>**Financial**<br>**Assets at Fair**<br>**Value Through**<br>**Other**<br>**Comprehensive**<br>**Income** | **Gain (Loss) on**<br>**Hedging**<br>**Instruments** | **Unearned** <br>**Stock-Based**<br>**Employee**<br>**Compensation** | **Total** | **Total** | **Non-controlling**<br>**Interests** | **Total**<br>**Equity** |
|  | **(In Thousands)** | **Amount** | **Capital Surplus** | **Reserve** | **Reserve** | **Earnings** | **Total** | **Foreign**<br>**Currency**<br>**Translation**<br>**Reserve** | **Unrealized**<br>**Gain (Loss) on**<br>**Financial**<br>**Assets at Fair**<br>**Value Through**<br>**Other**<br>**Comprehensive**<br>**Income** | **Gain (Loss) on**<br>**Hedging**<br>**Instruments** | **Unearned** <br>**Stock-Based**<br>**Employee**<br>**Compensation** | **Total** | **Total** | **Non-controlling**<br>**Interests** | **Total**<br>**Equity** |
| BALANCE, JANUARY 1, 2025 | 25932733 | $259327332 | $73260765 | $311146899 | $- | $3606105124 | $3917252023 | $40262995 | $(1160176) | $1310307 | $(1708079) | $38705047 | $4288545167 | $35030698 | $4323575865 |
| Appropriations of earnings  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Cash dividends to shareholders | - | - | - | - | - | (116697300) | (116697300) | - | - | - | - | - | (116697300) | - | (116697300) |
| Total | - | - | - | - | - | (116697300) | (116697300) | - | - | - | - | - | (116697300) | - | (116697300) |
| Net income  | - | - | - | - | - | 361564128 | 361564128 | - | - | - | - | - | 361564128 | (831467) | 360732661 |
| Other comprehensive income (loss), net of <br>income tax<br>| - | - | - | - | - | (35) | (35) | 28659020 | 1596114 | (6135) | - | 30248999 | 30248964 | 1647964 | 31896928 |
| Total comprehensive income (loss) | - | - | - | - | - | 361564093 | 361564093 | 28659020 | 1596114 | (6135) | - | 30248999 | 391813092 | 816497 | 392629589 |
| Employee restricted shares retired | (118) | (1177) | 1177 | - | - | 2459 | 2459 | - | - | - | - | - | 2459 | - | 2459 |
| Share-based payment arrangements | - | - | - | - | - | - | - | - | - | - | 452782 | 452782 | 452782 | - | 452782 |
| Disposal of investments in equity instruments <br>at fair value through other comprehensive <br>income<br>| - | - | - | - | - | 155994 | 155994 | - | (155994) | - | - | (155994) | - | - | - |
| Basis adjustment for gain on hedging <br>instruments<br>| - | - | - | - | - | - | - | - | - | 1135 | - | 1135 | 1135 | - | 1135 |
| Adjustments to share of changes in equities of <br>associates<br>| - | - | 57046 | - | - | - | - | - | - | - | - | - | 57046 | - | 57046 |
| From share of changes in equities of <br>subsidiaries<br>| - | - | (11801) | - | - | - | - | - | - | - | - | - | (11801) | 4837 | (6964) |
| Increase in non-controlling interests | - | - | - | - | - | - | - | - | - | - | - | - | - | 1609845 | 1609845 |
| BALANCE, MARCH 31, 2025 | 25932615 | $259326155 | $73307187 | $311146899 | $- | $3851130370 | $4162277269 | $68922015 | $279944 | $1305307 | $(1255297) | $69251969 | $4564162580 | $37461877 | $4601624457 |
| BALANCE, JANUARY 1, 2026 | 25932524 | $259325245 | $73445601 | $311146899 | $87284496 | $4705070165 | $5103501560 | $(21019144) | $3591483 | $1228250 | $(477001) | $(16676412) | $5419595994 | $41199289 | $5460795283 |
| Appropriations of earnings  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Special capital reserve | - | - | - | - | (71085085) | 71085085 | - | - | - | - | - | - | - | - | - |
| Cash dividends to shareholders | - | - | - | - | - | (155595147) | (155595147) | - | - | - | - | - | (155595147) | - | (155595147) |
| Total | - | - | - | - | (71085085) | (84510062) | (155595147) | - | - | - | - | - | (155595147) | - | (155595147) |
| Net income  | - | - | - | - | - | 572479752 | 572479752 | - | - | - | - | - | 572479752 | 321552 | 572801304 |
| Other comprehensive income (loss), net of <br>income tax<br>| - | - | - | - | - | - | - | 53348140 | 762077 | 1357 | - | 54111574 | 54111574 | (115923) | 53995651 |
| Total comprehensive income (loss) | - | - | - | - | - | 572479752 | 572479752 | 53348140 | 762077 | 1357 | - | 54111574 | 626591326 | 205629 | 626796955 |
| Employee restricted shares retired | (154) | (1544) | 1544 | - | - | 5334 | 5334 | - | - | - | - | - | 5334 | - | 5334 |
| Share-based payment arrangements | - | - | (62128) | - | - | - | - | - | - | - | 146545 | 146545 | 84417 | - | 84417 |
| Disposal of investments in equity instruments <br>at fair value through other comprehensive <br>income<br>| - | - | - | - | - | 96985 | 96985 | - | (97542) | - | - | (97542) | (557) | 557 | - |
| Basis adjustment for loss on hedging <br>instruments<br>| - | - | - | - | - | - | - | - | - | (1929) | - | (1929) | (1929) | - | (1929) |
| Adjustments to share of changes in equities of <br>associates<br>| - | - | 280814 | - | - | - | - | - | - | - | - | - | 280814 | - | 280814 |
| Increase in non-controlling interests | - | - | - | - | - | - | - | - | - | - | - | - | - | 23194 | 23194 |
| BALANCE, MARCH 31, 2026 | 25932370 | $259323701 | $73665831 | $311146899 | $16199411 | $5193142174 | $5520488484 | $32328996 | $4256018 | $1227678 | $(330456) | $37482236 | $5890960252 | $41428669 | $5932388921 |

---

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

---

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

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Income before income tax | $687799687 | $430895412 |
| Adjustments for: |  |  |
| Depreciation expense | 163312605 | 173004927 |
| Amortization expense | 2137832 | 2134152 |
| Expected credit losses recognized (reversal) on investments in debt <br>instruments<br>| 17283 | (8360) |
| Finance costs | 2716862 | 2677274 |
| Share of profits of associates | (1684904) | (1368307) |
| Interest income | (28862263) | (24859312) |
| Share-based compensation | 113979 | 455241 |
| Loss (gain) on disposal or retirement of property, plant and equipment, net | (605807) | 781375 |
| Impairment loss on property, plant and equipment | - | 1297218 |
| Gain on financial instruments at fair value through profit or loss, net | (50482) | (21700) |
| Loss on disposal of investments in debt instruments at fair value through <br>other comprehensive income, net<br>| 25414 | 50240 |
| Loss from disposal of subsidiary | - | 167986 |
| Loss (gain) on foreign exchange, net | (3465430) | 3884055 |
| Dividend income | (124339) | (51509) |
| Others | (43517) | 247618 |
| Changes in operating assets and liabilities: |  |  |
| Financial instruments at fair value through profit or loss | 5165216 | 1763120 |
| Notes and accounts receivable, net | (78691219) | 29000965 |
| Receivables from related parties | (2522858) | (862579) |
| Other receivables from related parties | (483880) | (1) |
| Inventories | (23343974) | (5518805) |
| Other financial assets | 213958 | (14480808) |
| Other current assets | (20099311) | (1692072) |
| Other noncurrent assets | (16723337) | (2483523) |
| Accounts payable | 15503538 | 2836726 |
| Payables to related parties | 22195 | (209657) |
| Salary and bonus payable | (2346404) | (6500061) |
| Accrued profit sharing bonus to employees and compensation to directors | 34315310 | 21736100 |
| Accrued expenses and other current liabilities | (33017188) | 14097144 |
| Other noncurrent liabilities | 1270340 | 2340161 |
| Net defined benefit liability | (71904) | (2202071) |
| Cash generated from operations | 700477402 | 627110949 |
| Income taxes paid | (1501137) | (1537277) |
| Net cash generated by operating activities | 698976265 | 625573672 |
|  |  | (Continued) |

---

---

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

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| Acquisitions of: |  |  |
| Financial instruments at fair value through profit or loss | $(199549) | $(60235) |
| Financial assets at fair value through other comprehensive income | (39021167) | (23341809) |
| Financial assets at amortized cost | (52400523) | (47339382) |
| Property, plant and equipment | (350762799) | (330826730) |
| Intangible assets | (933027) | (2285615) |
| Proceeds from disposal or redemption of: |  |  |
| Financial assets at fair value through other comprehensive income | 22786201 | 29048286 |
| Financial assets at amortized cost | 38519146 | 24877973 |
| Property, plant and equipment  | 1812754 | 127764 |
| Derecognition of derivative financial instruments | (5077020) | - |
| Proceeds from return of capital of investments in equity instruments at fair <br>value through other comprehensive income<br>| 185918 | 1112 |
| Derecognition of hedging financial instruments | (178) | (29621) |
| Interest received | 26745717 | 24418735 |
| Proceeds from government grants - property, plant and equipment | 505000 | 35149257 |
| Other dividends received | 124339 | 94878 |
| Dividends received from investments accounted for using equity method | 916967 | - |
| Increase in prepayments for leases  | (10202) | (11212) |
| Refundable deposits paid | (104983) | (47164) |
| Refundable deposits refunded | 59650 | 31337 |
| Net cash used in investing activities | (356853756) | (290192426) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| Decrease in hedging financial liabilities - bank loans | (182380) | - |
| Proceeds from issuance of bonds | 17200000 | 19200000 |
| Repayment of bonds | (4800000) | (3000000) |
| Proceeds from long-term bank loans | 2020000 | 5395000 |
| Repayment of long-term bank loans | (389722) | (719167) |
| Payments for transaction costs attributable to the issuance of bonds | (17574) | (20246) |
| Repayment of the principal portion of lease liabilities | (1328422) | (891185) |
| Interest paid | (2747192) | (2516219) |
| Guarantee deposits received | 4244 | 1000 |
| Guarantee deposits refunded | (5618) | (3099) |
| Cash dividends | (129662913) | (103721521) |
| Increase (decrease) in non-controlling interests | (1035) | 1609845 |
| Net cash used in financing activities | (119910612) | (84665592) |
|  |  | (Continued) |

---

---

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

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH <br>EQUIVALENTS<br>| $45568929 | $16461553 |
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 267780826 | 267177207 |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2767856402 | 2127627043 |
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $3035637228 | $2394804250 |
| The accompanying notes are an integral part of the consolidated financial statements. | The accompanying notes are an integral part of the consolidated financial statements. | (Concluded) |

---

**Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**<br>**FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025**<br>**(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)**<br>

**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 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. 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 issuance by the

Board of Directors on May 12, 2026.

**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, "IFRS Accounting Standards") endorsed and issued into effect by the Financial

Supervisory Commission (FSC)

The initial application of the amendments to the IFRS Accounting Standards endorsed and issued into

effect by the FSC did not have a material impact on the accounting policies of TSMC and its

subsidiaries (collectively as the "Company").

b.The IFRS Accounting Standards issued by IASB, but not yet endorsed and issued into effect by the FSC

---

| | |
|:---|:---|
| **New, Amended and Revised Standards and Interpretations** | **Effective Date Issued** <br>**by IASB** <br>|
| Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets <br>between an Investor and its Associate or Joint Venture"<br>| To be determined by IASB |
| IFRS 18 "Presentation and Disclosure in Financial Statements" | January 1, 2027 (Note) |

---

Note : On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January

1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the

endorsement of IFRS 18 by the FSC.

<u>IFRS 18 "Presentation and Disclosure in Financial Statements" and consequential amendments</u>

IFRS 18 will supersede IAS 1" Presentation of Financial Statements". The main changes comprise:

• Items of income and expenses included in the statement of profit or loss shall be classified into the

operating, investing, financing, income taxes and discontinued operations categories.

• The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or

loss before financing and income taxes and profit or loss.

• Provides guidance to enhance the requirements of aggregation and disaggregation: The Company

shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from

individual transactions or other events and shall classify and aggregate them into groups based on

shared characteristics, so as to result in the presentation in the primary financial statements of line

items that have at least one similar characteristic. The Company shall disaggregate items with

dissimilar characteristics in the primary financial statements and in the notes. The Company labels

items as "other" only if it cannot find a more informative label.

In addition, a consequential amendment has been made to IAS 7 "Statement of Cash Flows", requiring

the Company to use operating profit or loss as the starting point when presenting cash flows from

operating activities under the indirect method.

Except for the above impact, as of the date the accompanying consolidated financial statements were

issued, the Company continues in evaluating other impacts of the above amended standards and on its

financial position and financial performance from the initial 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 MATERIAL ACCOUNTING POLICY INFORMATION**

Except for the following, the accounting policies applied in these consolidated financial statements are

consistent with those applied in the consolidated financial statements for the year ended December 31,

2025. For 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 IAS 34, "Interim

Financial Reporting," endorsed and issued into effect by the FSC. The consolidated financial statements do

not present all the disclosures required for a complete set of annual consolidated financial statements

prepared under the IFRS Accounting Standards endorsed and issued into effect by the FSC (collectively,

the "Taiwan-IFRS Accounting Standards").

**Basis of Consolidation** 

<u>The basis of preparation and the basis for the consolidated financial statements</u>

The basis of preparation and the basis for the consolidated financial statements applied in these

consolidated financial statements are consistent with those applied in the consolidated financial statements

for the year ended December 31, 2025.

<u>The subsidiaries in the consolidated financial statements</u>

The detail information of the subsidiaries at the end of reporting period was as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name of Investor** | **Name of Investee** | **Main Businesses and Products** | **Establishment** | **Percentage of Ownership** | **Percentage of Ownership** | **Percentage of Ownership** |  |
| **Name of Investor** | **Name of Investee** | **Main Businesses and Products** | **and Operating** <br>**Location**<br>| **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>| **Note** |
| TSMC | TSMC North America | Sales and marketing of integrated <br>circuits and other semiconductor <br>devices<br>| San Jose, California, <br>U.S.A.<br>| 100% | 100% | 100% | - |
|  | TSMC Europe B.V. <br>(TSMC Europe)<br>| Customer service and supporting <br>activities<br>| Amsterdam, the <br>Netherlands<br>| 100% | 100% | 100% | a) |
|  | TSMC Japan Limited <br>(TSMC Japan)<br>| Customer service and supporting <br>activities<br>| Yokohama, Japan | 100% | 100% | 100% | a) |
|  | TSMC Design Technology <br>Japan, Inc. (TSMC JDC)<br>| Engineering support activities | Yokohama, Japan | 100% | 100% | 100% | a) |
|  | TSMC Japan 3DIC R&D <br>Center, Inc. (TSMC <br>3DIC)<br>| Engineering support activities | Yokohama, Japan | 100% | 100% | 100% | a) |
|  | TSMC Korea Limited <br>(TSMC Korea)<br>| Customer service and supporting <br>activities<br>| Seoul, Korea | 100% | 100% | 100% | a) |
|  | TSMC Partners, Ltd. <br>(TSMC Partners)<br>| Investing in companies involved <br>in the semiconductor design and <br>manufacturing, and other <br>investment activities<br>| Tortola, British <br>Virgin Islands<br>| 100% | 100% | 100% | - |
|  | TSMC Global Ltd. (TSMC <br>Global)<br>| Investment activities | Tortola, British <br>Virgin Islands<br>| 100% | 100% | 100% | - |
|  | TSMC China Company <br>Limited (TSMC China)<br>| Manufacturing, sales, testing and <br>computer-aided design of <br>integrated circuits and other <br>semiconductor devices<br>| Shanghai, China | 100% | 100% | 100% | - |
|  | TSMC Nanjing Company <br>Limited (TSMC Nanjing)<br>| Manufacturing, sales, testing and <br>computer-aided design of <br>integrated circuits and other <br>semiconductor devices<br>| Nanjing, China | 100% | 100% | 100% | - |
|  | VisEra Technologies <br>Company Ltd. (VisEra <br>Tech)<br>| Research, design, development, <br>manufacturing, sales, packaging <br>and test of color filter<br>| Hsinchu, Taiwan | 67% | 67% | 67% | - |
|  | TSMC Arizona <br>Corporation (TSMC <br>Arizona)<br>| Manufacturing, sales and testing <br>of integrated circuits and other <br>semiconductor devices<br>| Phoenix, Arizona, <br>U.S.A.<br>| 100% | 100% | 100% | - |
|  | Japan Advanced <br>Semiconductor <br>Manufacturing, Inc. <br>(JASM)<br>| Manufacturing, sales and testing <br>of integrated circuits and other <br>semiconductor devices<br>| Kumamoto, Japan | 73% | 73% | 73% | - |
|  | European Semiconductor <br>Manufacturing Company <br>(ESMC) GmbH (ESMC)<br>| Manufacturing, sales and testing <br>of integrated circuits and other <br>semiconductor devices<br>| Dresden, Germany | 70% | 70% | 70% | - |
|  | Emerging Fund, L.P. <br>(Emerging Fund)<br>| Investing in technology start-up <br>companies<br>| Cayman Islands | 99.9% | 99.9% | 99.9% | b) |
| TSMC Partners | TSMC Development, Inc. <br>(TSMC Development)<br>| Investing in companies involved <br>in semiconductor manufacturing<br>| Delaware, U.S.A. | 100% | 100% | 100% | - |
|  | TSMC Technology, Inc. <br>(TSMC Technology)<br>| Engineering support activities | Delaware, U.S.A. | 100% | 100% | 100% | a) |
|  | TSMC Design Technology <br>Canada Inc. (TSMC <br>Canada)<br>| Engineering support activities | Ontario, Canada | 100% | 100% | 100% | a) |
| TSMC Development | TSMC Washington, LLC <br>(TSMC Washington)<br>| Manufacturing, sales and testing <br>of integrated circuits and other <br>semiconductor devices<br>| Washington, U.S.A. | 100% | 100% | 100% | - |

---

Note a:This is an immaterial subsidiary for which the consolidated financial statements are neither reviewed nor audited by the Company's independent auditors.

Note b: This is an immaterial subsidiary for which the consolidated financial statements for the year ended, are audited by the Company's independent auditors.

**Retirement Benefits**

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined

pension cost rate at the end of the prior financial year.

**Taxation**

Income tax expense represents the sum of the tax currently payable and deferred tax. The interim period

income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings,

that is, the estimated average annual effective income tax rate applied to the pre-tax income of the interim

period.

**5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND** 

**UNCERTAINTY**

The same material accounting judgments and key sources of estimates and uncertainty have been followed

in these consolidated financial statements as were applied in the preparation of the Company's consolidated

financial statements for the year ended December 31, 2025.

**6. CASH AND CASH EQUIVALENTS**

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Cash and deposits in banks | $3030871905 | $2761829868 | $2373616720 |
| Money market funds | 2769832 | 2056733 | 17984089 |
| Repurchase agreements | 1231258 | 1342659 | 2107626 |
| Government bonds/Agency bonds | 764233 | 2627142 | - |
| Commercial paper | - | - | 1095815 |
|  | $3035637228 | $2767856402 | $2394804250 |

---

Deposits in banks consisted of highly liquid time deposits that were readily convertible to known amounts

of cash and were subject to an insignificant risk of changes in value.

**7. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS**

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| <u>Financial assets</u> |  |  |  |
| Convertible preferred stocks | $13877152 | $13608819 | $14370972 |
| Mutual funds | 1576884 | 1297533 | 981508 |
| Simple agreement for future equity | 128256 | 125776 | 132820 |
| Forward exchange contracts | 5408 | 100200 | 54369 |
|  | $15587700 | $15132328 | $15539669 |
| Current | $5408 | $100200 | $54369 |
| Noncurrent | 15582292 | 15032128 | 15485300 |
|  | $15587700 | $15132328 | $15539669 |
| <u>Financial liabilities</u> |  |  |  |
| Forward exchange contracts | $3076876 | $3083883 | $2069289 |

---

The Company entered into forward exchange contracts to manage exposures due to fluctuations of foreign

exchange 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:

---

| | | |
|:---|:---|:---|
|  |  | **Contract Amount** |
|  | **Maturity Date** | **(In Thousands)** |
| <u>March 31, 2026</u> |  |  |
| Sell US$ | April 2026 to June 2026 | US$6,822,000 |
| <u>December 31, 2025</u> |  |  |
| Sell US$ | January 2026 to March 2026 | US$9,234,000 |
| Sell JPY | January 2026 | JPY6,095,977 |
| <u>March 31, 2025</u> |  |  |
| Sell US$ | April 2025 to June 2025 | US$6,977,081 |
| Sell JPY | April 2025 | JPY54,982,913 |

---

**8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME**

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Investments in debt instruments at FVTOCI |  |  |  |
| Corporate bonds | $102384998 | $88636098 | $98352454 |
| Agency mortgage-backed securities | 50999655 | 49150771 | 51252453 |
| Government bonds/Agency bonds | 27966498 | 25437560 | 25701271 |
| Asset-backed securities | 7874285 | 8512188 | 10622969 |
|  | 189225436 | 171736617 | 185929147 |
| Investments in equity instruments at FVTOCI |  |  |  |
| Non-publicly traded equity investments | 9704803 | 8797170 | 8337662 |
| Publicly traded stocks | 5672196 | 3956073 | 3999164 |
|  | 15376999 | 12753243 | 12336826 |
|  | $204602435 | $184489860 | $198265973 |
| Current | $194897632 | $175692690 | $189928311 |
| Noncurrent | 9704803 | 8797170 | 8337662 |
|  | $204602435 | $184489860 | $198265973 |

---

These investments in equity instruments are held for medium to long-term purposes and therefore are

accounted for as financial assets at 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 three months ended March 31, 2026 and 2025, as the Company adjusted its investment portfolio,

equity investments designated at FVTOCI were divested for NT$246,801 thousand and NT$284,890

thousand, respectively. The related other equity-unrealized gain/loss on financial assets at FVTOCI of

NT$96,985 thousand and NT$155,994 thousand were transferred to increase retained earnings,

respectively.

As of March 31, 2026 and 2025, the cumulative loss allowance for expected credit loss of NT$49,253

thousand and NT$52,383 thousand was recognized under investments in debt instruments at FVTOCI,

respectively. Refer to Note 30 for information relating to the credit risk management and expected credit

loss.

**9. FINANCIAL ASSETS AT AMORTIZED COST**

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Corporate bonds | $252414240 | $231374019 | $200156770 |
| Government bonds/Agency bonds | 4299402 | 4213491 | 4440747 |
| Commercial paper | - | - | 12034516 |
| Less: Allowance for impairment loss | (149799) | (134187) | (129981) |
|  | $256563843 | $235453323 | $216502052 |
| Current | $153049764 | $124945519 | $118298376 |
| Noncurrent | 103514079 | 110507804 | 98203676 |
|  | $256563843 | $235453323 | $216502052 |

---

Refer to Note 30 for information relating to credit risk management and expected credit loss for financial

assets at amortized cost.

**10. HEDGING FINANCIAL INSTRUMENTS**

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| <u>Financial assets - current</u> |  |  |  |
| Fair value hedges |  |  |  |
| Interest rate futures contracts  | $11578 | $- | $- |
| <u>Financial liabilities - current</u> |  |  |  |
| Fair value hedges |  |  |  |
| Interest rate futures contracts  | $- | $817 | $3462 |

---

<u>Fair value hedge</u>

The Company entered into interest rate futures contracts, which are used to partially hedge against the fair

value 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 the

hedged 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

sources of ineffectiveness have 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.

The following tables summarize the information relating to the hedges of interest rate risks.

<u>March 31, 2026</u>

---

| | | |
|:---|:---|:---|
| **Hedging Instruments** | **Contract Amount**<br>**(US$ in Thousands)**<br>| **Maturity** |
| Interest rate futures contracts - US Treasury <br>futures<br>| US$33,900 | June 2026 |

---

---

| | | |
|:---|:---|:---|
| **Hedged Items** | **Asset Carrying** <br>**Amount**<br>| **Accumulated Amount of**<br>**Fair Value Hedge** <br>**Adjustments**<br>|
| Financial assets at FVTOCI | $2184474 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$(11578)  |

---

<u>December 31, 2025</u>

---

| | | |
|:---|:---|:---|
| **Hedging Instruments** | **Contract Amount**<br>**(US$ in Thousands)**<br>| **Maturity** |
| Interest rate futures contracts - US Treasury <br>futures<br>| US$23,700 | March 2026 |

---

---

| | | |
|:---|:---|:---|
| **Hedged Items** | **Asset Carrying** <br>**Amount**<br>| **Accumulated Amount of**<br>**Fair Value Hedge** <br>**Adjustments**<br>|
| Financial assets at FVTOCI | $711878 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$817  |

---

<u>March 31, 2025</u>

---

| | | |
|:---|:---|:---|
| **Hedging Instruments** | **Contract Amount**<br>**(US$ in Thousands)**<br>| **Maturity** |
| Interest rate futures contracts - US Treasury <br>futures<br>| US$14,800 | June 2025 |

---

---

| | | |
|:---|:---|:---|
| **Hedged Items** | **Asset Carrying** <br>**Amount**<br>| **Accumulated Amount of**<br>**Fair Value Hedge** <br>**Adjustments**<br>|
| Financial assets at FVTOCI | $1596110 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$3462  |

---

The effect for the three months ended March 31, 2026 and 2025 is detailed below:

---

| | | |
|:---|:---|:---|
|  | **Change in Value Used for** <br>**Calculating Hedge Ineffectiveness** | **Change in Value Used for** <br>**Calculating Hedge Ineffectiveness** |
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
| **Hedging Instruments/Hedged Items** | **2026** | **2025** |
| Hedging Instruments |  |  |
| Interest rate futures contracts - US Treasury futures | $12049 | $(44044) |
| Hedged Items |  |  |
| Financial assets at FVTOCI | (12049) | 44044 |
|  | $- | $- |

---

<u>Hedges of net investments in foreign operations</u>

TSMC has designated the bank loans denominated in foreign currency as a hedge of net investments in

foreign operations to manage its foreign currency risk arising from investment in overseas subsidiaries.

The main source of hedge ineffectiveness in these hedging relationships is driven by the material difference

between the notional amount of bank loans denominated in foreign currency and the net investment in

foreign operations. No other sources of ineffectiveness have emerged from these hedging relationships

during the hedging period. Refer to Note 19 (d) for gain or loss arising from changes in the fair value of

hedging instruments.

The effect for the three months ended March 31, 2026 is detailed below:

---

| | |
|:---|:---|
|  | **Change in Value** <br>**Used for** <br>**Calculating** <br>**Hedge** <br>**Ineffectiveness**<br>|
|  | **Three Months** <br>**Ended March 31**<br>|
| **Hedging Instruments/Hedged Items** | **2026** |
| Hedging Instruments |  |
| Bank loans | $(182380) |
| Hedged Items |  |
| Net investments in foreign operations | $182380 |

---

**11. NOTES AND ACCOUNTS RECEIVABLE, NET**

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| At amortized cost |  |  |  |
| Notes and accounts receivable | $350247669 | $271835077 | $234443474 |
| Less: Loss allowance | (576710) | (478617) | (415051) |
|  | 349670959 | 271356460 | 234028423 |
| At FVTOCI | 8071813 | 7695093 | 7653847 |
|  | $357742772 | $279051553 | $241682270 |

---

The Company signed a contract with the bank to sell certain accounts receivable without recourse and

transaction 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 15 days from

the 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 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.

<u>Aging analysis of notes and accounts receivable</u>

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Not past due | $340247189 | $263766991 | $231331692 |
| Past due |  |  |  |
| Past due within 30 days | 18072040 | 15762377 | 10751604 |
| Past due over 31 days | 253 | 802 | 14025 |
| Less: Loss allowance | (576710) | (478617) | (415051) |
|  | $357742772 | $279051553 | $241682270 |

---

All of the Company's accounts receivable classified as at FVTOCI were not past due.

<u>Movements of the loss allowance for accounts receivable</u>

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Balance, beginning of period | $478617 | $453009 |
| Provision (Reversal) | 98080 | (37966) |
| Effect of exchange rate changes | 13 | 8 |
| Balance, end of period | $576710 | $415051 |

---

For the three months ended March 31, 2026 and 2025, the changes in loss allowance were mainly due to

the variations in the balance of accounts receivable across different risk levels.

**12. INVENTORIES**

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Finished goods | $31888061 | $29412948 | $34263618 |
| Work in process | 212974385 | 188014421 | 187068666 |
| Raw materials | 42034026 | 45863351 | 46880887 |
| Supplies and spare parts | 24556987 | 24818765 | 25174444 |
|  | $311453459 | $288109485 | $293387615 |

---

Write-down of inventories to net realizable value (excluding earthquake losses) and reversal of write-down

of inventories resulting from the increase in net realizable value were included in the cost of revenue,

which were as follows. Please refer to related earthquake losses in Note 34.

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Net inventory losses | $2634802 | $2526465 |

---

**13. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD**

Associates consisted of the following:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name of Associate** | **Principal Activities** | **Place of** | **Carrying Amount** | **Carrying Amount** | **Carrying Amount** | **% of Ownership and Voting Rights Held by the** <br>**Company** | **% of Ownership and Voting Rights Held by the** <br>**Company** | **% of Ownership and Voting Rights Held by the** <br>**Company** |
| **Name of Associate** | **Principal Activities** | **Incorporation** <br>**and Operation**<br>| **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>| **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Vanguard International <br>Semiconductor <br>Corporation (VIS)<br>| Manufacturing, sales, <br>packaging, testing and <br>computer-aided design of <br>integrated circuits and <br>other semiconductor <br>devices and the <br>manufacturing and design <br>service of masks<br>| Hsinchu, <br>Taiwan<br>| $19193955 | $18166267 | $19031412 | 28% | 28% | 28% |
| Systems on Silicon <br>Manufacturing Company <br>Pte Ltd. (SSMC)<br>| Manufacturing and sales of <br>integrated circuits and <br>other semiconductor <br>devices<br>| Singapore | 11136415 | 12419167 | 11768652 | 39% | 39% | 39% |
| Xintec Inc. (Xintec) | Wafer level chip size <br>packaging and wafer level <br>post passivation <br>interconnection service<br>| Taoyuan, <br>Taiwan<br>| 4645631 | 4495255 | 4361292 | 41% | 41% | 41% |
| Global Unichip Corporation <br>(GUC) | Researching, developing, <br>manufacturing, testing <br>and marketing of <br>integrated circuits | Hsinchu, <br>Taiwan | 2789361 | 2952582 | 3605302 | 35% | 35% | 35% |
| Global Unichip Corporation <br>(GUC) | Researching, developing, <br>manufacturing, testing <br>and marketing of <br>integrated circuits | Hsinchu, <br>Taiwan |  |  |  |  |  |  |
|  |  |  | $37765362 | $38033271 | $38766658 |  |  |  |

---

The market prices of the associates' ownership held by the Company in publicly traded stocks calculated

base on the closing price are summarized as follows. The closing price represents the quoted price in active

markets, the level 1 fair value measurement.

---

| | | | |
|:---|:---|:---|:---|
| **Name of Associate** | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| GUC | $101079214 | $99211700 | $49022252 |
| VIS | $58778281 | $46667928 | $47174638 |
| Xintec | $17081775 | $15468187 | $15857674 |

---

**14. PROPERTY, PLANT AND EQUIPMENT**

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Assets used by the Company | $3953500782 | $3690642070 | $3400609937 |
| Assets subject to operating leases | 1178614 | 1198846 | 196217 |
|  | $3954679396 | $3691840916 | $3400806154 |

---

<u>Assets used by the Company</u>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Land and Land** <br>**Improvements**<br>| **Buildings** | **Machinery and** <br>**Equipment**<br>| **Office** <br>**Equipment**<br>| **Equipment under** <br>**Installation and** <br>**Construction in** <br>**Progress**<br>| **Total** |
| <u>Cost</u> |  |  |  |  |  |  |
| Balance at January 1, 2026 | $13445772 | $1191861820 | $6236677716 | $124264120 | $1518996210 | $9085245638 |
| Additions | - | 53964734 | 136525233 | 5552185 | 219282429 | 415324581 |
| Disposals or retirements | - | (100198) | (61165702) | (825767) | - | (62091667) |
| Effect of exchange rate changes | 48120 | 5064046 | 10971420 | 336013 | 3696069 | 20115668 |
| Balance at March 31, 2026 | $13493892 | $1250790402 | $6323008667 | $129326551 | $1741974708 | $9458594220 |
| Accumulated depreciation and <br>impairment<br>|  |  |  |  |  |  |
| Balance at January 1, 2026 | $603856 | $511294326 | $4799921522 | $82783864 | $- | $5394603568 |
| Additions | 4991 | 19657576 | 138786079 | 3611038 | - | 162059684 |
| Disposals or retirements | - | (97307) | (59592194) | (825741) | - | (60515242) |
| Effect of exchange rate changes | 11981 | 1293992 | 7465876 | 173579 | - | 8945428 |
| Balance at March 31, 2026 | $620828 | $532148587 | $4886581283 | $85742740 | $- | $5505093438 |
| Carrying amounts at January 1, <br>2026<br>| $12841916 | $680567494 | $1436756194 | $41480256 | $1518996210 | $3690642070 |
| Carrying amounts at March 31, <br>2026<br>| $12873064 | $718641815 | $1436427384 | $43583811 | $1741974708 | $3953500782 |
|  |  |  |  |  |  | (Continued) |
| <u>Cost</u> |  |  |  |  |  |  |
| Balance at January 1, 2025 | $13054161 | $959133864 | $5852202689 | $105434750 | $1080284237 | $8010109701 |
| Additions (deductions) | 45793 | 236932128 | 249090469 | 10529881 | (173113992) | 323484279 |
| Disposals or retirements | - | (26520) | (8360693) | (618534) | - | (9005747) |
| Effect of exchange rate changes | 382170 | 7763994 | 7526228 | 421100 | 5568357 | 21661849 |
| Balance at March 31, 2025 | $13482124 | $1203803466 | $6100458693 | $115767197 | $912738602 | $8346250082 |
| Accumulated depreciation and <br>impairment<br>|  |  |  |  |  |  |
| Balance at January 1, 2025 | $608531 | $440369241 | $4262882850 | $70679950 | $790740 | $4775331312 |
| Additions | 5017 | 14980174 | 153758437 | 3282424 | - | 172026052 |
| Disposals or retirements | - | (23144) | (7454933) | (618211) | - | (8096288) |
| Impairment losses | - | - | 1297218 | - | - | 1297218 |
| Effect of exchange rate changes | 8165 | 692224 | 4270774 | 110688 | - | 5081851 |
| Balance at March 31, 2025 | $621713 | $456018495 | $4414754346 | $73454851 | $790740 | $4945640145 |
| Carrying amounts at January 1, <br>2025<br>| $12445630 | $518764623 | $1589319839 | $34754800 | $1079493497 | $3234778389 |
| Carrying amounts at March 31, <br>2025<br>| $12860411 | $747784971 | $1685704347 | $42312346 | $911947862 | $3400609937 |

---

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 2025, the Company recognized impairment losses due to partial machinery and

equipment damage caused by earthquakes, which rendered them unusable. Please refer to the related

earthquake losses in Note 34.

The Company assesses impairment and recognizes impairment losses or reversal gains based on the asset's

usage status and expected usage plan. These are recorded under other operating income and expenses.

Information about capitalized interest is set out in Note 22.

**15. LEASE ARRANGEMENTS**

a.Right-of-use assets

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| <u>Carrying amounts</u> |  |  |  |
| Land | $41297926 | $39873344 | $38057144 |
| Buildings | 4630684 | 4005321 | 3204286 |
| Office equipment | 36983 | 40245 | 41986 |
|  | $45965593 | $43918910 | $41303416 |

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Additions to right-of-use assets | $3470239 | $2190130 |

---

---

| | | |
|:---|:---|:---|
| Depreciation of right-of-use assets |  |  |
| Land | $839273 | $690350 |
| Buildings | 387723 | 277637 |
| Office equipment | 5693 | 5424 |
|  | $1232689 | $973411 |

---

b.Lease liabilities

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| <u>Carrying amounts</u> |  |  |  |
| Current portion (classified under accrued <br>expenses and other current liabilities)<br>| $3601073 | $3833015 | $3147525 |
| Noncurrent portion | 33509235 | 31594992 | 29121821 |
|  | $37110308 | $35428007 | $32269346 |

---

Ranges of discount rates for lease liabilities are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Land | 0.39%~3.50% | 0.39%~3.50% | 0.39%~3.30% |
| Buildings | 0.40%~6.52% | 0.40%~6.52% | 0.40%~6.52% |
| Office equipment | 0.54%~7.13% | 0.28%~6.46% | 0.28%~6.46% |

---

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 have

purchase options to acquire the leasehold land and buildings at the end of the lease terms.

d.Other lease information

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Total cash outflow for leases | $1490249 | $1088662 |

---

**16. INTANGIBLE ASSETS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Goodwill** | **Technology** <br>**License Fees**<br>| **Software and** <br>**System Design** <br>**Costs**<br>| **Patent and** <br>**Others**<br>| **Total** |
| <u>Cost</u> |  |  |  |  |  |
| Balance at January 1, 2026 | $5891082 | $29702421 | $58451384 | $13337085 | $107381972 |
| Additions | - | 140294 | 1615616 | 116521 | 1872431 |
| Disposals or retirements | - | - | (412324) | (51892) | (464216) |
| Effect of exchange rate changes | 84188 | 163 | 28717 | 3403 | 116471 |
| Balance at March 31, 2026 | $5975270 | $29842878 | $59683393 | $13405117 | $108906658 |
| Accumulated amortization and <br>&nbsp;&nbsp;&nbsp;&nbsp;impairment<br>|  |  |  |  |  |
| Balance at January 1, 2026 | $- | $24513166 | $45879452 | $12036739 | $82429357 |
| Additions | - | 348496 | 1682759 | 106577 | 2137832 |
| Disposals or retirements | - | - | (412324) | - | (412324) |
| Effect of exchange rate changes | - | 164 | 20890 | 2143 | 23197 |
| Balance at March 31, 2026 | $- | $24861826 | $47170777 | $12145459 | $84178062 |
| Carrying amounts at January 1, 2026 | $5891082 | $5189255 | $12571932 | $1300346 | $24952615 |
| Carrying amounts at March 31, 2026 | $5975270 | $4981052 | $12512616 | $1259658 | $24728596 |
| <u>Cost</u> |  |  |  |  |  |
| Balance at January 1, 2025 | $6070864 | $28566518 | $53279044 | $13133519 | $101049945 |
| Additions | - | 17298 | 1111089 | 96214 | 1224601 |
| Disposals or retirements | - | (82471) | (94300) | (41460) | (218231) |
| Effect of exchange rate changes | 59339 | 722 | 70283 | 3411 | 133755 |
| Balance at March 31, 2025 | $6130203 | $28502067 | $54366116 | $13191684 | $102190070 |
| Accumulated amortization and <br>&nbsp;&nbsp;&nbsp;&nbsp;impairment<br>|  |  |  |  |  |
| Balance at January 1, 2025 | $- | $23186748 | $40100685 | $11479992 | $74767425 |
| Additions | - | 378751 | 1512273 | 243128 | 2134152 |
| Disposals or retirements | - | (82471) | (94300) | - | (176771) |
| Effect of exchange rate changes | - | 722 | 12999 | 1200 | 14921 |
| Balance at March 31, 2025 | $- | $23483750 | $41531657 | $11724320 | $76739727 |
| Carrying amounts at January 1, 2025 | $6070864 | $5379770 | $13178359 | $1653527 | $26282520 |
| Carrying amounts at March 31, 2025 | $6130203 | $5018317 | $12834459 | $1467364 | $25450343 |

---

The Company's goodwill has been tested for impairment at the end of the annual reporting period and the

recoverable 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

annual discount rate of 9.5% in its test of impairment as of December 31, 2025 to reflect the relevant

specific risk in the cash-generating unit.

(Continued)

**17**. **BONDS PAYABLE**

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Domestic unsecured bonds | $552028000 | $538388000 | $495610000 |
| Overseas unsecured bonds | 464928000 | 455938000 | 514677500 |
| Less: Discounts on bonds payable | (2253609) | (2292509) | (2639433) |
| Less: Current portion | (154676321) | (135805988) | (59391093) |
|  | $860026070 | $856227503 | $948256974 |

---

The Company issued domestic unsecured bonds for the three months ended March 31, 2026. The major

terms are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Issuance** | **Issuance Period** | **Total Issue** <br>**Amount**<br>| **Coupon** <br>**Rate**<br>| **Repayment and** <br>**Interest Payment**<br>|
| NT$ unsecured <br>bonds<br>|  |  |  |  |
| 115-1<br> A | March 2026 to <br>March 2031<br>| $12600000 | 1.72% | Bullet repayment; <br>interest payable <br>annually<br>|
| B | March 2026 to <br>March 2036<br>| 4600000 | 1.78% | The same as above |

---

The major terms of overseas unsecured bonds are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Issuance Period** | **Total Issue Amount** <br>**(US$ in Thousands)**<br>| **Coupon** <br>**Rate**<br>| **Repayment and Interest Payment** |
| September 2020 <br>to September <br>2025<br>| US$1,000,000 | 0.75% | Bullet repayment (callable at any time, in <br>whole or in part, at the relevant redemption <br>price according to relevant agreements); <br>interest payable semi-annually<br>|
| September 2020 <br>to September <br>2027<br>| 750000 | 1.00% | The same as above |
| September 2020 <br>to September <br>2030<br>| 1250000 | 1.375% | The same as above |
| April 2021 to <br>April 2026<br>| 1100000 | 1.25% | The same as above |
| April 2021 to <br>April 2028<br>| 900000 | 1.75% | The same as above |
| April 2021 to <br>April 2031<br>| 1500000 | 2.25% | The same as above |

---

(Concluded)

---

| | | | |
|:---|:---|:---|:---|
| **Issuance Period** | **Total Issue Amount** <br>**(US$ in Thousands)**<br>| **Coupon** <br>**Rate**<br>| **Repayment and Interest Payment** |
| October 2021 to <br>October 2026<br>| US$1,250,000 | 1.75% | Bullet repayment (callable at any time, in <br>whole or in part, at the relevant redemption <br>price according to relevant agreements); <br>interest payable semi-annually<br>|
| October 2021 to <br>October 2031<br>| 1250000 | 2.50% | The same as above |
| October 2021 to <br>October 2041<br>| 1000000 | 3.125% | The same as above |
| October 2021 to <br>October 2051<br>| 1000000 | 3.25% | The same as above |
| April 2022 to <br>April 2027<br>| 1000000 | 3.875% | The same as above |
| April 2022 to <br>April 2029<br>| 500000 | 4.125% | The same as above |
| April 2022 to <br>April 2032<br>| 1000000 | 4.25% | The same as above |
| April 2022 to <br>April 2052<br>| 1000000 | 4.50% | The same as above |
| July 2022 to July <br>2027<br>| 400000 | 4.375% | The same as above |
| July 2022 to July <br>2032<br>| 600000 | 4.625% | The same as above |

---

**18. LONG-TERM BANK LOANS**

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| NT$ unsecured loans | $1311111 | $1700833 | $3691666 |
| JPY unsecured loans | 41246000 | 39253500 | 37416600 |
| Less: Discounts on government grants | (22) | (115) | (786) |
| Less: Current portion | (1565417) | (1119722) | (2380555) |
|  | $40991672 | $39834496 | $38726925 |
| Loan content |  |  |  |
| Annual interest rate | 1.03%~1.78% | 0.79%~1.78% | 0.13%~1.78% |
| Maturity date | Due by December <br>2030<br>| Due by December <br>2030<br>| Due by December <br>2030<br>|

---

The long-term bank loans of the Company are used for plants setup, procurement of machinery and

equipment, and operating capital. The partial long-term bank loans are with preferential interest rates

subsidized by the government, and the loans are used to fund capital expenditure qualifying for the subsidy.

The Company is required to maintain certain financial covenants during the borrowing period, including

the annual equity of the subsidiary receiving the loan not to fall below a specific amount; its debt-to-equity

ratio must not exceed a certain ratio; and the ratio of the Company's annual debt to earnings before interest,

taxes, depreciation, and amortization (EBITDA) not to exceed a certain multiple.

**19. EQUITY**

a.Capital stock

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Authorized shares (in thousands) | 28050000 | 28050000 | 28050000 |
| Authorized capital | $280500000 | $280500000 | $280500000 |
| Issued and paid shares (in thousands) | 25932524 | 25932524 | 25932733 |
| Shares awaiting retirement (in thousands) | (154) | - | (118) |
| Capital stock (in thousands) | 25932370 | 25932524 | 25932615 |
| Issued capital | $259325245 | $259325245 | $259327332 |
| Share capital awaiting retirement | (1544) | - | (1177) |
| Capital stock | $259323701 | $259325245 | $259326155 |

---

The par value of issued common shares is NT$10 per share. A holder of common shares has one vote

for each common share and is entitled to receive dividends.

The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock

options.

During the first quarter of 2026, TSMC reclaimed 154 thousand employee restricted shares which were

unvested (classified under share capital awaiting retirement). On May 12, 2026, TSMC's Board of

Directors resolved to cancel the aforementioned shares.

During the third quarter of 2025 and the first quarter of 2025, TSMC reclaimed 91 thousand and 118

thousand employee restricted shares, respectively, that were unvested. On November 11, 2025 and May

13, 2025, TSMC's Board of Directors resolved to cancel the aforementioned shares. Subsequently,

TSMC completed the registration for share cancellation. Refer to Note 26 for information on RSAs.

As of March 31, 2026, TSMC's total issued and outstanding ADSs were 1,062,690 thousand units,

representing 5,313,451 thousand common shares.

b.Capital surplus

The categories of uses and the sources of capital surplus based on regulations were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| May be used to offset a deficit, distributed as <br>cash dividends, or transferred to share <br>capital<br>|  |  |  |
| Additional paid-in capital | $26726501 | $26343550 | $25586161 |
| From merger | 22800434 | 22800434 | 22800434 |
| From convertible bonds | 8891257 | 8891257 | 8891257 |
| From difference between the consideration <br>received and the carrying amount of the <br>subsidiaries' net assets during actual <br>disposal<br>| 8411566 | 8411566 | 8411566 |
| Donations - donated by shareholders | 11280 | 11280 | 11275 |
| <u>May only be used to offset a deficit</u> |  |  |  |
| From share of changes in equities of <br>subsidiaries<br>| 4093999 | 4093999 | 4097157 |
| From share of changes in equities of <br>associates <br>| 1646064 | 1365250 | 1229442 |
| Donations - unclaimed dividend | 105684 | 105684 | 78976 |
| <u>May not be used for any purpose</u> |  |  |  |
| Employee restricted shares | 979046 | 1422581 | 2200919 |
|  | $73665831 | $73445601 | $73307187 |

---

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 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.

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 an additional special capital

reserve equivalent to the net debit balance of the other components of stockholders' equity, such as the

accumulated balance of the foreign currency translation reserve, the effectiveness of hedges of net

investments in foreign operations, unrealized valuation gain or loss from fair value through other

comprehensive income financial assets, gain or loss from changes in fair value of hedging instruments

in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders' equity,

any special reserve appropriated may be reversed to the extent that the net debit balance reverses.

The appropriations of 2026, 2025 and 2024 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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fourth Quarter** | **Third Quarter** | **Second Quarter** | **First Quarter** |
| **Resolution Date of TSMC's**  | **of 2026** | **of 2026** | **of 2026** | **of 2026** |
| **Board of Directors in its** | **February 10,** | **November 11,** | **August 12,** | **May 12,** |
| **meeting** | **2026** | **2025** | **2025** | **2026** |
| Special capital reserve | $- | $- | $- | $(16199411) |
| Cash dividends to shareholders | $- | $- | $- | $181526591 |
| Cash dividends per share (NT$) |  |  |  | $7.00 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fourth Quarter** | **Third Quarter** | **Second Quarter** | **First Quarter** |
| **Resolution Date of TSMC's**  | **of 2025** | **of 2025** | **of 2025** | **of 2025** |
| **Board of Directors in its** | **February 10,** | **November 11,** | **August 12,** | **May 13,** |
| **meeting** | **2026** | **2025** | **2025** | **2025** |
| Special capital reserve | $(71085085) | $(94270352) | $181554848 | $- |
| Cash dividends to shareholders | $155595147 | $155595147 | $129662913 | $129663078 |
| Cash dividends per share (NT$) | $6.00 | $6.00 | $5.00 | $5.00 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fourth Quarter** | **Third Quarter** | **Second Quarter** | **First Quarter** |
| **Resolution Date of TSMC's**  | **of 2024** | **of 2024** | **of 2024** | **of 2024** |
| **Board of Directors in its** | **February 12,** | **November 12,** | **August 13,** | **May 10,** |
| **meeting** | **2025** | **2024** | **2024** | **2024** |
| Special capital reserve | $- | $- | $- | $(28020822) |
| Cash dividends to shareholders | $116697300 | $116697300 | $103721521 | $103734517 |
| Cash dividends per share (NT$) | $4.50 | $4.50 | $4.00 | $4.00 |

---

The special capital reserve for 2025 is to be presented for approval in TSMC's shareholders' meeting to

be held on June 4, 2026 (expected).

The quarterly cash dividends per share is affected by the subsequent number of outstanding ordinary

shares, the information of the actual payout is available at the Market Observation Post System website.

d.Others

Changes in others were as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** |
|  | **Foreign** <br>**Currency** <br>**Translation** <br>**Reserve**<br>| **Unrealized** <br>**Gain (Loss) on** <br>**Financial** <br>**Assets at** <br>**FVTOCI**<br>| **Gain (Loss) on** <br>**Hedging** <br>**Instruments**<br>| **Unearned** <br>**Stock-Based** <br>**Employee** <br>**Compensation**<br>| **Total** |
| Balance, beginning of period | $(21019144) | $3591483 | $1228250 | $(477001) | $(16676412) |
| Exchange differences arising on translation of <br>foreign operations<br>| 53257340 | - | - | - | 53257340 |
| Gain (loss) on hedging instruments designated as <br>hedges of net investments in foreign operations<br>| (182380) | - | - | - | (182380) |
| Unrealized gain (loss) on financial assets at <br>FVTOCI<br>|  |  |  |  |  |
| Equity instruments | - | 2550591 | - | - | 2550591 |
| Debt instruments | - | (1884401) | - | - | (1884401) |
| Disposal of investments in equity instruments at <br>FVTOCI<br>| - | (97542) | - | - | (97542) |
| Cumulative unrealized gain (loss) of debt <br>instruments at FVTOCI transferred to profit or <br>loss due to disposal<br>| - | 25414 | - | - | 25414 |
| Loss allowance adjustments from debt instruments <br>at FVTOCI<br>| - | 4507 | - | - | 4507 |
| Gain (loss) arising on changes in the fair value of <br>hedging instruments and hedged item affects <br>profit or loss<br>| - | - | (21091) | - | (21091) |
| Transferred to initial carrying amount of hedged <br>items<br>| - | - | (1929) | - | (1929) |
| Share-based payment expenses recognized | - | - | - | 146545 | 146545 |
| Share of other comprehensive income (loss) of <br>associates<br>| 273180 | 65966 | 22448 | - | 361594 |
| Balance, end of period | $32328996 | $4256018 | $1227678 | $(330456) | $37482236 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
|  | **Foreign** <br>**Currency** <br>**Translation** <br>**Reserve**<br>| **Unrealized** <br>**Gain (Loss) on** <br>**Financial** <br>**Assets at** <br>**FVTOCI**<br>| **Gain (Loss) on** <br>**Hedging** <br>**Instruments**<br>| **Unearned** <br>**Stock-Based**<br>**Employee** <br>**Compensation**<br>| **Total** |
| Balance, beginning of period | $40262995 | $(1160176) | $1310307 | $(1708079) | $38705047 |
| Exchange differences arising on translation of <br>foreign operations<br>| 28572776 | - | - | - | 28572776 |
| Unrealized gain (loss) on financial assets at <br>FVTOCI<br>|  |  |  |  |  |
| Equity instruments | - | (373569) | - | - | (373569) |
| Debt instruments | - | 2014432 | - | - | 2014432 |
| Disposal of investments in equity instruments at <br>FVTOCI<br>| - | (155994) | - | - | (155994) |
| Cumulative unrealized gain (loss) of debt <br>instruments at FVTOCI transferred to profit <br>or loss due to disposal<br>| - | 50240 | - | - | 50240 |
| Loss allowance adjustments from debt <br>instruments at FVTOCI<br>| - | (11437) | - | - | (11437) |
| Gain (loss) arising on changes in the fair value <br>of hedging instruments and hedged item <br>affects profit or loss<br>| - | - | (21068) | - | (21068) |
| Transferred to initial carrying amount of hedged <br>items<br>| - | - | 1135 | - | 1135 |
| Share-based payment expenses recognized | - | - | - | 452782 | 452782 |
| Share of other comprehensive income (loss) of <br>associates<br>| 86244 | (83552) | 14933 | - | 17625 |
| Balance, end of period | $68922015 | $279944 | $1305307 | $(1255297) | $69251969 |

---

The aforementioned other equity includes the changes in other equities of TSMC and TSMC's share of

its subsidiaries and associates.

**20. NET REVENUE**

a.Disaggregation of revenue from contracts with customers

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
| **Product** | **2026** | **2025** |
| Wafer | $968112334 | $714028927 |
| Others | 165991106 | 125224737 |
|  | $1134103440 | $839253664 |

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
| **Geography** | **2026** | **2025** |
| Taiwan | $85396949 | $66493510 |
| United States | 847738269 | 632438786 |
| China | 85841877 | 62222351 |
| Japan | 41705982 | 35757682 |
| Europe, the Middle East and Africa | 46694158 | 25526977 |
| Others | 26726205 | 16814358 |
|  | $1134103440 | $839253664 |

---

The Company categorized the net revenue mainly based on the countries where the customers are

headquartered.

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
| **Platform** | **2026** | **2025** |
| High Performance Computing | $694743789 | $493223146 |
| Smartphone | 294121844 | 233611388 |
| Internet of Things | 61590503 | 38723190 |
| Automotive | 46587613 | 43028245 |
| Digital Consumer Electronics | 12043031 | 11552466 |
| Others | 25016660 | 19115229 |
|  | $1134103440 | $839253664 |

---

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
| **Resolution** | **2026** | **2025** |
| 3-nanometer | $245950127 | $160180187 |
| 5-nanometer | 351196799 | 254408255 |
| 7-nanometer | 128849905 | 108196547 |
| 16-nanometer | 64335880 | 47336847 |
| 20-nanometer | 1223971 | 1182574 |
| 28-nanometer | 69438615 | 52743689 |
| 40/45-nanometer | 24315393 | 20331363 |
| 65-nanometer | 38262100 | 26550958 |
| 90-nanometer | 5560407 | 5137987 |
| 0.11/0.13 micron | 11384828 | 12269773 |
| 0.15/0.18 micron | 23031617 | 21220625 |
| 0.25 micron and above | 4562692 | 4470122 |
| Wafer revenue | $968112334 | $714028927 |

---

b.Contract balances

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>| **January 1,** <br>**2025**<br>|
| Contract liabilities (classified <br>under accrued expenses and <br>other current liabilities)<br>| $50425399 | $49954384 | $102047887 | $89435361 |

---

The changes in the contract liability balances primarily result from the timing difference between the

satisfaction of performance obligation and the customer's payment.

The Company recognized revenue from the beginning balance of contract liability, which amounted to

NT$11,706,743 thousand and NT$43,655,565 thousand for the three months ended March 31, 2026 and

2025, respectively.

c.Temporary receipts from customers

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Current portion (classified under accrued <br>expenses and other current liabilities)<br>| $117675257 | $146559275 | $166477077 |
| Noncurrent portion (classified under other <br>noncurrent liabilities)<br>| 32006610 | 43298936 | 86982769 |
|  | $149681867 | $189858211 | $253459846 |

---

The Company's temporary receipts from customer are payments made by customers to the Company to

retain the Company's capacity. When the terms and conditions set forth in the agreements are

subsequently satisfied, the treatment of temporary receipts, either by refund or by accounts receivable

offsetting, will be determined by mutual consent.

**21. INTEREST INCOME**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Interest income |  |  |
| Cash and cash equivalents | $23181607 | $20259748 |
| Financial assets at amortized cost | 2812143 | 2646901 |
| Financial assets at FVTOCI  | 1991819 | 1952663 |
| Government grants receivable | 876694 | - |
|  | $28862263 | $24859312 |

---

**22. FINANCE COSTS**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Interest expense |  |  |
| Corporate bonds | $5090758 | $4950966 |
| Others | 287572 | 191255 |
| Less: Capitalized interest under property, plant and equipment | (2661468) | (2464947) |
|  | $2716862 | $2677274 |

---

Information about capitalized interest is as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Capitalization rate | 1.44%-3.34% | 1.32%-3.34% |

---

**23. OTHER GAINS AND LOSSES, NET**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Loss on disposal of financial assets, net |  |  |
| Investments in debt instruments at FVTOCI | $(25414) | $(50240) |
| Loss on disposal of subsidiaries | - | (167986) |
| Loss on financial instruments at FVTPL, net | (5114734) | (3091058) |
| Reversal of (provision for) expected credit loss of financial assets |  |  |
| Investments in debt instruments at FVTOCI | (4507) | 11437 |
| Financial assets at amortized cost | (12776) | (3077) |
| Other losses, net | (142590) | (24645) |
|  | $(5300021) | $(3325569) |

---

**24. INCOME TAX**

a.Income tax expense recognized in profit or loss

Income tax expense consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Current income tax expense  |  |  |
| Current tax expense recognized in the current period | $117155553 | $70266030 |
| Income tax adjustments on prior years | 34656 | 279640 |
| Other income tax adjustments | 90941 | 96538 |
|  | 117281150 | 70642208 |
| Deferred income tax expense (benefit) |  |  |
| The origination and reversal of temporary differences | 1538416 | 1270276 |
| Operating loss carryforward | (3821183) | (1749733) |
|  | (2282767) | (479457) |
| Income tax expense recognized in profit or loss | $114998383 | $70162751 |

---

b.Income tax examination

The tax authorities have examined income tax returns of TSMC through 2023. All investment tax credit

adjustments assessed by the tax authorities have been recognized accordingly.

**25. EARNINGS PER SHARE**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Basic EPS | $22.08 | $13.95 |
| Diluted EPS | $22.08 | $13.94 |

---

EPS is computed as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Basic EPS |  |  |
| Net income available to common shareholders of the parent | $572479752 | $361564128 |
| Weighted average number of common shares outstanding used in <br>the computation of basic EPS (in thousands)<br>| 25929767 | 25926789 |
| Basic EPS (in dollars) | $22.08 | $13.95 |
| Diluted EPS |  |  |
| Net income available to common shareholders of the parent | $572479752 | $361564128 |
| Weighted average number of common shares outstanding used in <br>the computation of basic EPS (in thousands)<br>| 25929767 | 25926789 |
| Effects of all dilutive potential common shares (in thousands) | 1518 | 2010 |
| Weighted average number of common shares used in the <br>computation of diluted EPS (in thousands)<br>| 25931285 | 25928799 |
| Diluted EPS (in dollars) | $22.08 | $13.94 |

---

**26. SHARE-BASED PAYMENT ARRANGEMENTS** 

a.Equity-settled share-based payment- RSAs

The RSAs in each year are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2024 RSAs** | **2023 RSAs** | **2022 RSAs** |
| Resolution Date of TSMC's shareholders in its meeting | June 4, 2024 | June 6, 2023 | June 8, 2022 |
| Resolution Date of TSMC's Board of Directors in its <br>meeting<br>| August 13, 2024 | February 6, 2024 | February 14, 2023 |
| Issuance of stocks (in thousands) | 2353 | 2960 | 2110 |
| Available for issuance (in thousands) | 1832 | - | - |
| Eligible employees | Executive officers | Executive officers | Executive officers |
| Grant date/Issuance date | September 1, 2024 | March 1, 2024 | March 1, 2023 |

---

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 be

vested 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

each year 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 to determine the number of RSAs to be vested; this number will be further subject to a

modifier to increase or decrease up to 10% based on the Compensation and People Development

Committee's evaluation of TSMC's Environmental, Social, and Governance ("ESG")

achievements. The number of shares so calculated should be rounded down to the nearest integral.

---

| | |
|:---|:---|
| **TSMC's TSR relative to the** <br>**TSR of S&P 500 IT Index**<br>| **Ratio of Shares to be Vested** |
| Above the Index by X percentage points | 50% + X \* 2.5%, with the maximum of 100% |
| Equal to the Index | 50% |
| Below the Index by X percentage points | 50% - X \* 2.5%, with the minimum of 0% |

---

4)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.

Any other 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 TSMC.

5)Details of granted RSAs in each year are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2024 RSAs** | **2023 RSAs** | **2022 RSAs** |
|  | **Number of Shares**<br>**(In Thousands)**<br>| **Number of Shares**<br>**(In Thousands)**<br>| **Number of Shares**<br>**(In Thousands)**<br>|
| Balance, beginning of period | 1160 | 1480 | 527 |
| Vested shares | - | (696) | (495) |
| Shares awaiting retirement | (41) | (81) | (32) |
| Balance, end of period | 1119 | 703 | - |
| Weighted-average fair value of RSAs (in dollars) | $662.42 | $364.43 | $277.71 |

---

The RSAs in each year are measured at fair value at grant date by using the binominal tree

approach. Relevant information is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **2024 RSAs** | **2023 RSAs** | **2022 RSAs** |
|  | **September 1, 2024** | **March 1, 2024** | **March 1, 2023** |
| Stock price at measurement date (in dollars) | $944 | $689 | $511 |
| Expected price volatility | 25.51%-29.87% | 24.77%-26.12% | 29.34%-32.11% |
| Expected life | 1-3 years | 1-3 years | 1-3 years |
| Risk-free interest rate | 1.40% | 1.16% | 1.06% |

---

Refer to Note 27 for the compensation costs of the RSAs recognized by TSMC.

b.Cash-settled share-based payment arrangements

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

---

| | | |
|:---|:---|:---|
|  | **2023 Plan** | **2022 Plan** |
| Resolution Date of TSMC's Board of Directors <br>in its meeting<br>| February 6, 2024 | February 14, 2023 |
| Issuance of units (in thousands) (Note) | 550 | 400 |
| Grant date | March 1, 2024 | March 1, 2023 |

---

Note:One unit of the right represents a right to the market value of one TSMC's common share when

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 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:

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** | **2025** |
|  | **2023 Plan** | **2023 Plan** | **2022 Plan** |
| Stock price at measurement date (in dollars) | $1820 | $952 | $952 |
| Expected price volatility | 23.62%-30.61% | 25.40%-31.02% | 25.40%-31.02% |
| Residual life | 1 year | 1-2 years | 1 year |
| Risk-free interest rate | 1.39% | 1.43% | 1.39% |

---

Refer to Note 27 for the compensation costs of the cash-settled share-based payment recognized by

TSMC. As of March 31, 2026, December 31, 2025 and March 31, 2025, the liabilities under cash-

settled share-based payment arrangement amounted to NT$151,339 thousand, NT$330,836 thousand

and NT$101,908 thousand, respectively.

**27. ADDITIONAL INFORMATION OF EXPENSES BY NATURE**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| a.Depreciation of property, plant and equipment and right-of-use <br>assets<br>|  |  |
| Recognized in cost of revenue | $151370802 | $161648245 |
| Recognized in operating expenses | 11921571 | 11351218 |
| Recognized in other operating income and expenses | 20232 | 5464 |
|  | $163312605 | $173004927 |
| b.Amortization of intangible assets |  |  |
| Recognized in cost of revenue | $1263376 | $1410729 |
| Recognized in operating expenses | 874456 | 723423 |
|  | $2137832 | $2134152 |
| c.Employee benefits expenses |  |  |
| Post-employment benefits  |  |  |
| Defined contribution plans | $1758452 | $1614682 |
| Defined benefit plans | 58318 | 62057 |
|  | 1816770 | 1676739 |
| Share-based payments |  |  |
| Equity-settled | 113979 | 455241 |
| Cash-settled | 287174 | 69962 |
|  | 401153 | 525203 |
| Other employee benefits | 118077916 | 86097562 |
|  | $120295839 | $88299504 |
| Employee benefits expense summarized by function |  |  |
| Recognized in cost of revenue | $71900074 | $48006765 |
| Recognized in operating expenses | 48395765 | 40292739 |
|  | $120295839 | $88299504 |

---

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 the

period, respectively (among which not less than 30% as profit sharing bonuses to entry-level employees).

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 the annual consolidated 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:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Profit sharing bonus to employees | $34348790 | $21693850 |

---

TSMC's accrued profit sharing bonus to employees and compensation to directors 2025 and 2024 are

illustrated below:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31** | **Years Ended December 31** |
|  | **2025** | **2024** |
| Profit sharing bonus to employees | $103072958 | $70296283 |
| Compensation to directors | $156305 | $358989 |

---

There is no significant difference between the aforementioned approved amounts and the amounts charged

against earnings of 2025 and 2024, 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.

**28. GOVERNMENT GRANTS**

Subsidiaries such as TSMC Arizona, ESMC, JASM and TSMC Nanjing received subsidies from the

governments of the United States, Germany, Japan and China, respectively, for local plant setup and

operation, which were mainly used to subsidize the purchase costs of property, plant and equipment, as

well as partial costs and expenses incurred from plant construction and production. For the three months

ended March 31, 2026 and 2025, the Company received a total of NT$505,000 thousand and

NT$35,149,257 thousand as government grants, respectively.

The aforementioned subsidiaries have signed grant agreements with the local government. The agreements

include the construction timelines and other conditions that must be complied with. TSMC Arizona is also

eligible to apply for a 25% investment credit for its qualified investments. Furthermore, in line with

revisions to relevant regulations, effective January 1, 2026, the credit percentage will be increased to 35%

of the qualified investments.

**29. CASH FLOW INFORMATION**

a.Non-cash transactions

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Additions of property, plant and equipment | $414530014 | $323484279 |
| Changes in other receivables | 1046069 | 2326950 |
| Exchange of assets | (140129) | - |
| Changes in payables to contractors and equipment suppliers | (65169539) | (2415721) |
| Changes in accrued expenses and other current liabilities | 3157852 | 9896169 |
| Capitalized interests | (2661468) | (2464947) |
| Payments for acquisition of property, plant and equipment | $350762799 | $330826730 |

---

b.Reconciliation of liabilities arising from financing activities

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | **Non-cash Changes** | **Non-cash Changes** |  |
|  | **Balance as of**<br> **January 1,**<br>**2026**<br>| **Financing Cash** <br>**Flow**<br>| **Foreign** <br>**Exchange** <br>**Movement**<br>| **Other Changes**<br>**(Note)**<br>| **Balance as of** <br>**March 31,**<br>**2026**<br>|
| Bonds payable | $992033491 | $12382426 | $10191015 | $95459 | $1014702391 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | **Non-cash Changes** | **Non-cash Changes** |  |
|  | **Balance as of**<br>**January 1,**<br>**2025**<br>| **Financing Cash** <br>**Flow**<br>| **Foreign** <br>**Exchange** <br>**Movement**<br>| **Other Changes**<br>**(Note)**<br>| **Balance as of** <br>**March 31,**<br>**2025**<br>|
| Bonds payable | $983752385 | $16179754 | $7615641 | $100287 | $1007648067 |

---

Note:Other changes include amortization of bonds payable.

**30. FINANCIAL INSTRUMENTS**

a.Categories of financial instruments

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| Financial assets |  |  |  |
| FVTPL  | $15587700 | $15132328 | $15539669 |
| FVTOCI (Note 1) | 212674248 | 192184953 | 205919820 |
| Hedging financial assets | 11578 | - | - |
| Amortized cost (Note 2) | 3767122443 | 3368760773 | 2973250822 |
|  | $3995395969 | $3576078054 | $3194710311 |
| Financial liabilities |  |  |  |
| FVTPL | $3076876 | $3083883 | $2069289 |
| Hedging financial liabilities | - | 817 | 3462 |
| Amortized cost (Note 3) | 2076717390 | 1974710221 | 2019207007 |
|  | $2079794266 | $1977794921 | $2021279758 |

---

Note 1:Including notes and accounts receivable (net), equity and debt investments.

Note 2:Including cash and cash equivalents, financial assets at amortized cost, notes and accounts

receivable (including related parties), other receivables from related parties, other financial

assets, refundable deposits and temporary payments (including those classified under other

noncurrent assets).

Note 3:Including 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 and Risk Committee and/or Board

of Directors in accordance with procedures required by relevant regulations or internal controls. During

the implementation of such plans, the Company 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 prices. A portion of these risks is hedged.

<u>Foreign currency risk</u>

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, and non-derivative

financial instruments, such as foreign currency bank loans and bank deposits, to protect against

currency exchange rate risks associated with non-NT dollar-denominated monetary assets and

liabilities, net investments in foreign operations, 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 the

three months ended March 31, 2026 and 2025, a hypothetical adverse foreign currency exchange rate

change of 10% would have decreased its net income by NT$576,921 thousand and NT$889,382

thousand ,respectively, after taking into account hedges and offsetting positions.

<u>Interest rate risk</u>

The Company is exposed to interest rate risks primarily in relation to its investment portfolio and

outstanding 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 majority of the Company's fixed income investments are fixed-rate securities, which are classified

as financial assets at FVTOCI or at amortized cost. For those fixed income investments classified as

financial assets at FVTOCI, changes in their fair value are recognized through other comprehensive

income; for those classified as financial assets at amortized cost, changes in their fair value are not

reflected in the carrying amount. Both classifications recognized in profit or loss if the assets are sold.

Based on a sensitivity analysis performed on the Company's fixed income investments at the end of the

reporting period, interest rates increase of 100 basis points (1.00%) across all maturities would have

decreased the Company's other comprehensive income by NT$4,385,342 thousand and NT$4,476,317

thousand for the three months ended March 31, 2026 and 2025, respectively.

The majority of the Company's 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.

The Company has entered and may in the future enter into interest rate derivatives to partially hedge 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.

<u>Other price risk</u>

The Company is exposed to convertible preferred stocks, equity instrument investments, and other

investments price risk arising from financial assets at FVTPL and FVTOCI.

Assuming a hypothetical decrease of 10% in prices of the investments mentioned above at the end of

the reporting period, the net income would have decreased by NT$1,246,583 thousand and

NT$1,238,824 thousand for the three months ended March 31, 2026 and 2025, respectively, and the

other comprehensive income would have decreased by NT$1,230,160 thousand and NT$986,946

thousand for the three months ended March 31, 2026 and 2025, respectively.

d.Credit risk management

Credit risk refers to the risk that a counterparty may 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 and financial 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.

<u>Business related credit risk</u>

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

such procedures will effectively eliminate losses resulting from its credit risk. This risk is heightened

during periods when economic conditions worsen.

As of March 31, 2026, December 31, 2025 and March 31, 2025, the Company's ten largest customers

accounted for 84%, 84% and 84% of accounts receivable, respectively. The Company considers the

concentration of credit risk for the remaining accounts receivable not material.

<u>Financial credit risk</u>

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

and reviews the limit applied to counterparties and adjusts the limit according to market conditions and

the credit standing of the counterparties.

The objective of the Company's investment policy is to achieve a return that will allow the Company to

preserve principal and support liquidity requirements. The policy generally requires securities to be

investment 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

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 the

probability of default and loss given default provided by external credit rating agencies. The current

credit risk assessment policies are as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Category** | **Description** | **Basis for Recognizing** <br>**Expected Credit Loss**<br>| **Expected** <br>**Credit Loss** <br>**Ratio**<br>|
| Performing | Credit rating is investment grade on <br>valuation date<br>| 12 months expected credit <br>loss<br>| 0-0.1% |
| Doubtful | Credit rating is non-investment grade <br>on valuation date<br>| Lifetime expected credit <br>loss-not credit impaired<br>| - |
| In default | Credit rating is CC or below on <br>valuation date<br>| Lifetime expected credit <br>loss-credit impaired<br>| - |
| Write-off | There is evidence indicating that the <br>debtor is in severe financial <br>difficulty and the Company has no <br>realistic prospect of recovery <br>| Amount is written off | - |

---

For the three months ended March 31, 2026 and 2025, the expected credit loss increased NT$21,050

thousand and decreased NT$6,086 thousand, respectively. The changes were mainly due to adjusted

investment portfolio and fluctuations in exchange rates.

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 amortized

cost-current and sufficient cost-efficient funding.

The table below summarizes the maturity profile of the Company's financial liabilities based on

contractual undiscounted payments, including principal and interest.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Less Than** <br>**1 Year**<br>| **1-3 Years** | **3-5 Years** | **More Than** <br>**5 Years**<br>| **Total** |
| <u>March 31, 2026</u> |  |  |  |  |  |
| <u>Non-derivative financial liabilities</u> |  |  |  |  |  |
| Accounts payable (including related <br>parties)<br>| $99856058 | $- | $- | $- | $99856058 |
| Payables to contractors and equipment <br>suppliers<br>| 243926716 | - | - | - | 243926716 |
| Accrued expenses and other current <br>liabilities<br>| 324597278 | - | - | - | 324597278 |
| Bonds payable | 174342361 | 307007510 | 211345461 | 517593230 | 1210288562 |
| Long-term bank loans | 2065452 | 10711565 | 31568139 | - | 44345156 |
| Lease liabilities (including those <br>classified under accrued expenses <br>and other current liabilities) (Note)<br>| 4197292 | 7048697 | 6027649 | 23798102 | 41071740 |
| Others | - | 25568225 | 5499331 | 8040359 | 39107915 |
|  | 848985157 | 350335997 | 254440580 | 549431691 | 2003193425 |
| <u>Derivative financial instruments</u> |  |  |  |  |  |
| Forward exchange contracts |  |  |  |  |  |
| Outflows | 205732428 | - | - | - | 205732428 |
| Inflows | (202968093) | - | - | - | (202968093) |
|  | 2764335 | - | - | - | 2764335 |
|  | $851749492 | $350335997 | $254440580 | $549431691 | $2005957760 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Less Than** <br>**1 Year**<br>| **1-3 Years** | **3-5 Years** | **More Than** <br>**5 Years**<br>| **Total** |
| <u>December 31, 2025</u> |  |  |  |  |  |
| <u>Non-derivative financial liabilities</u> |  |  |  |  |  |
| Accounts payable (including related <br>parties)<br>| $84330325 | $- | $- | $- | $84330325 |
| Payables to contractors and equipment <br>suppliers<br>| 177730306 | - | - | - | 177730306 |
| Accrued expenses and other current <br>liabilities<br>| 344034962 | - | - | - | 344034962 |
| Bonds payable | 155291157 | 310496642 | 209405344 | 512306851 | 1187499994 |
| Long-term bank loans | 1530435 | 11349870 | 29477805 | - | 42358110 |
| Lease liabilities (including those <br>classified under accrued expenses <br>and other current liabilities) (Note)<br>| 4381382 | 6573701 | 5804479 | 22709939 | 39469501 |
| Others | - | 35208665 | 6060461 | 8333478 | 49602604 |
|  | 767298567 | 363628878 | 250748089 | 543350268 | 1925025802 |
| <u>Derivative financial instruments</u> |  |  |  |  |  |
| Forward exchange contracts |  |  |  |  |  |
| Outflows | 279876485 | - | - | - | 279876485 |
| Inflows | (276880302) | - | - | - | (276880302) |
|  | 2996183 | - | - | - | 2996183 |
|  | $770294750 | $363628878 | $250748089 | $543350268 | $1928021985 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Less Than** <br>**1 Year**<br>| **1-3 Years** | **3-5 Years** | **More Than** <br>**5 Years**<br>| **Total** |
| <u>March 31, 2025</u> |  |  |  |  |  |
| <u>Non-derivative financial liabilities</u> |  |  |  |  |  |
| Accounts payable (including related <br>parties)<br>| $76853628 | $- | $- | $- | $76853628 |
| Payables to contractors and equipment <br>suppliers<br>| 199087045 | - | - | - | 199087045 |
| Accrued expenses and other current <br>liabilities<br>| 367308567 | - | - | - | 367308567 |
| Bonds payable | 79180865 | 355977247 | 199574108 | 586060547 | 1220792767 |
| Long-term bank loans | 2708527 | 5353088 | 25472236 | 8909136 | 42442987 |
| Lease liabilities (including those <br>classified under accrued expenses <br>and other current liabilities) (Note)<br>| 3628656 | 5695999 | 4924098 | 21291773 | 35540526 |
| Others | - | 82046217 | 10904756 | - | 92950973 |
|  | 728767288 | 449072551 | 240875198 | 616261456 | 2034976493 |
| <u>Derivative financial instruments</u> |  |  |  |  |  |
| Forward exchange contracts |  |  |  |  |  |
| Outflows | $231869244 | $- | $- | $- | $231869244 |
| Inflows | (229561459) | - | - | - | (229561459) |
|  | 2307785 | - | - | - | 2307785 |
|  | $731075073 | $449072551 | $240875198 | $616261456 | $2037284278 |

---

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

(Continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **5-10 Years** | **10-15 Years** | **15-20 Years** | **More Than** <br>**20 Years**<br>| **Total** |
| <u>March 31, 2026</u> |  |  |  |  |  |
| Lease liabilities | $11470745 | $7919574 | $4237076 | $170707 | $23798102 |
| <u>December 31, 2025</u> |  |  |  |  |  |
| Lease liabilities | $10974203 | $7513615 | $4002476 | $219645 | $22709939 |
| <u>March 31, 2025</u> |  |  |  |  |  |
| Lease liabilities | $10446365 | $7023891 | $3679414 | $142103 | $21291773 |

---

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;

• 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) or

indirectly (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

<u>Fair value hierarchy</u>

The following table presents the Company's financial assets and liabilities measured at fair value on

a recurring basis:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| <u>Financial assets at FVTPL</u> |  |  |  |  |
| Convertible preferred stocks | $- | $- | $13877152 | $13877152 |
| Mutual funds | - | - | 1576884 | 1576884 |
| Simple agreement for future equity | - | - | 128256 | 128256 |
| Forward exchange contracts | - | 5408 | - | 5408 |
|  | $- | $5408 | $15582292 | $15587700 |
| <u>Financial assets at FVTOCI</u> |  |  |  |  |
| Investments in debt instruments |  |  |  |  |
| Corporate bonds | $- | $102384998 | $- | $102384998 |
| Agency mortgage-backed securities | - | 50999655 | - | 50999655 |
| Government bonds/Agency bonds | 27840097 | 126401 | - | 27966498 |
| Asset-backed securities | - | 7874285 | - | 7874285 |

---

(Concluded)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Investments in equity instruments |  |  |  |  |
| Non-publicly traded equity <br>investments<br>| $- | $- | $9704803 | $9704803 |
| Publicly traded stocks | 5672196 | - | - | 5672196 |
| Notes and accounts receivable, net | - | 8071813 | - | 8071813 |
|  | $33512293 | $169457152 | $9704803 | $212674248 |
| <u>Hedging financial assets</u> |  |  |  |  |
| Fair value hedges |  |  |  |  |
| Interest rate futures contracts | $11578 | $- | $- | $11578 |
| <u>Financial liabilities at FVTPL</u> |  |  |  |  |
| Forward exchange contracts | $- | $3076876 | $- | $3076876 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| <u>Financial assets at FVTPL</u> |  |  |  |  |
| Convertible preferred stocks | $- | $- | $13608819 | $13608819 |
| Mutual funds | - | - | 1297533 | 1297533 |
| Simple agreement for future equity | - | - | 125776 | 125776 |
| Forward exchange contracts | - | 100200 | - | 100200 |
|  | $- | $100200 | $15032128 | $15132328 |
| <u>Financial assets at FVTOCI</u> |  |  |  |  |
| Investments in debt instruments |  |  |  |  |
| Corporate bonds | $- | $88636098 | $- | $88636098 |
| Agency mortgage-backed securities | - | 49150771 | - | 49150771 |
| Government bonds/Agency bonds | 25437560 | - | - | 25437560 |
| Asset-backed securities | - | 8512188 | - | 8512188 |
| Investments in equity instruments |  |  |  |  |
| Non-publicly traded equity <br>investments<br>| - | - | 8797170 | 8797170 |
| Publicly traded stocks | 3956073 | - | - | 3956073 |
| Notes and accounts receivable, net | - | 7695093 | - | 7695093 |
|  | $29393633 | $153994150 | $8797170 | $192184953 |
| <u>Financial liabilities at FVTPL</u> |  |  |  |  |
| Forward exchange contracts | $- | $3083883 | $- | $3083883 |
| <u>Hedging financial liabilities</u> |  |  |  |  |
| Fair value hedges |  |  |  |  |
| Interest rate futures contracts | $817 | $- | $- | $817 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| <u>Financial assets at FVTPL</u> |  |  |  |  |
| Convertible preferred stocks | $- | $- | $14370972 | $14370972 |
| Mutual funds | - | - | 981508 | 981508 |
| Simple agreement for future equity | - | - | 132820 | 132820 |
| Forward exchange contracts  | - | 54369 | - | 54369 |
|  | $- | $54369 | $15485300 | $15539669 |
| <u>Financial assets at FVTOCI</u> |  |  |  |  |
| Investments in debt instruments |  |  |  |  |
| Corporate bonds | $- | $98352454 | $- | $98352454 |
| Agency mortgage-backed securities | - | 51252453 | - | 51252453 |
| Government bonds/Agency bonds | 25471792 | 229479 | - | 25701271 |
| Asset-backed securities | - | 10622969 | - | 10622969 |
| Investments in equity instruments |  |  |  |  |
| Non-publicly traded equity <br>investments<br>| - | - | 8337662 | 8337662 |
| Publicly traded stocks | 3999164 | - | - | 3999164 |
| Notes and accounts receivable, net | - | 7653847 | - | 7653847 |
|  | $29470956 | $168111202 | $8337662 | $205919820 |
| <u>Financial liabilities at FVTPL</u> |  |  |  |  |
| Forward exchange contracts | $- | $2069289 | $- | $2069289 |
| <u>Hedging financial liabilities</u> |  |  |  |  |
| Fair value hedges |  |  |  |  |
| Interest rate futures contracts | $3462 | $- | $- | $3462 |

---

<u>Reconciliation of Level 3 fair value measurements of financial assets</u>

The financial assets measured at Level 3 fair value were financial assets at FVTPL and equity

investments classified as financial assets at FVTOCI. Reconciliations for the three months ended

March 31, 2026 and 2025 are as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Balance, beginning of period | $23829298 | $23022726 |
| Additions | 294325 | 241385 |
| Recognized in profit or loss | 50482 | 21700 |
| Recognized in other comprehensive income or loss | 1053960 | 240879 |
| Disposals and proceeds from return of capital of investments | (402442) | (1112) |
| Effect of exchange rate changes | 461472 | 297384 |
| Balance, end of period | $25287095 | $23822962 |

---

<u>Valuation techniques and assumptions used in Level 2 fair value measurement</u>

The fair values of financial assets and financial liabilities are determined as follows:

• The fair values of debt investments designated at FVTOCI are determined by market prices

provided by third party pricing services, or measured using inputs that are observable either

directly or indirectly.

• The fair values of forward exchange 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

value of future cash flows based on the discount rate that reflects the credit risk of

counterparties.

<u>Valuation techniques and assumptions used in Level 3 fair value measurement</u>

The fair values of financial assets at FVTPL and non-publicly traded equity investments are mainly

determined by using the asset approach, income approach or market approach.

The asset approach takes into account the net asset value measured at the fair value. On March 31,

2026, December 31, 2025 and March 31, 2025, the Company uses unobservable inputs derived

from discount for lack of marketability of 10%. When other inputs remain equal, the fair value will

decrease by NT$67,361 thousand, NT$64,123 thousand and NT$59,454 thousand, respectively, if

discounts for lack of marketability increase by 1%.

The income approach utilizes discounted cash flows to determine the present value of the expected

future economic benefits that will be derived from the investment. On March 31, 2026,

December 31, 2025 and March 31, 2025, the Company mainly uses unobservable inputs, which

include expected returns, discount rate of 8.8%, 8.9% and 8.8%, respectively and discount for lack

of marketability of 20%. With other inputs remain equal, if discount rate increases by 1%, the fair

value will decrease by NT$1,912,859 thousand, NT$1,812,408 thousand and NT$586,129

thousand, respectively; if discount for lack of marketability increases by 1%, the fair value will

decrease by NT$141,912 thousand, NT$133,626 thousand and NT$155,838 thousand, respectively.

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 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 of

financial instruments in the consolidated financial statements that are not measured at fair value

approximate their fair values.

<u>Fair value hierarchy</u>

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:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | **Carrying**  | **Fair Value** | **Fair Value** | **Fair Value** |
|  | **Amount** | **Level 1** | **Level 2** | **Total** |
| <u>Financial assets</u> |  |  |  |  |
| Financial assets at amortized costs |  |  |  |  |
| Corporate bonds | $252264441 | $- | $252166113 | $252166113 |
| Government bonds/Agency <br>bonds<br>| 4299402 | 4330500 | - | 4330500 |
|  | $256563843 | $4330500 | $252166113 | $256496613 |
| <u>Financial liabilities</u> |  |  |  |  |
| Financial liabilities at amortized <br>costs<br>|  |  |  |  |
| Bonds payable | $1014702391 | $- | $958345421 | $958345421 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
|  | **Carrying**  | **Fair Value** | **Fair Value** | **Fair Value** |
|  | **Amount** | **Level 1** | **Level 2** | **Total** |
| <u>Financial assets</u> |  |  |  |  |
| Financial assets at amortized costs |  |  |  |  |
| Corporate bonds | $231239832 | $- | $232259166 | $232259166 |
| Government bonds/Agency <br>bonds<br>| 4213491 | 4284607 | - | 4284607 |
|  | $235453323 | $4284607 | $232259166 | $236543773 |
| <u>Financial liabilities</u> |  |  |  |  |
| Financial liabilities at amortized <br>costs<br>|  |  |  |  |
| Bonds payable | $992033491 | $- | $939475287 | $939475287 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | **Carrying**  | **Fair Value** | **Fair Value** | **Fair Value** |
|  | **Amount** | **Level 1** | **Level 2** | **Total** |
| <u>Financial assets</u> |  |  |  |  |
| Financial assets at amortized costs |  |  |  |  |
| Corporate bonds | $200037909 | $- | $200927445 | $200927445 |
| Commercial paper | 12023396 | - | 12035073 | 12035073 |
| Government bonds/Agency <br>bonds<br>| 4440747 | 4473583 | - | 4473583 |
|  | $216502052 | $4473583 | $212962518 | $217436101 |
| <u>Financial liabilities</u> |  |  |  |  |
| Financial liabilities at amortized <br>costs<br>|  |  |  |  |
| Bonds payable | $1007648067 | $- | $930273718 | $930273718 |

---

<u>Valuation techniques and assumptions used in Level 2 fair value measurement</u>

The fair values of financial assets and liabilities at amortized cost are determined by market prices

provided by third party pricing services, or measured using inputs that are observable either directly

or indirectly.

**31. RELATED PARTY TRANSACTIONS**

Intercompany 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 and its subsidiaries (GUC) | Associates |
| VIS and its subsidiaries (VIS) | Associates |
| SSMC | Associates |
| Xintec | Associates |
| TSMC Charity Foundation | Other related parties |
| TSMC Education and Culture Foundation | Other related parties |

---

b.Net revenue

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  |  | **2026** | **2025** |
| <u>Item</u> | <u>Related Party Categories</u> |  |  |
| Sales revenue | Associates | $12704466 | $7736472 |

---

c.Purchases

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| <u>Related Party Categories</u> |  |  |
| Associates | $1499852 | $1062416 |

---

d.Receivables from related parties

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| <u>Item</u> | <u>Related Party</u> <br><u>Name</u><br>|  |  |  |
| Receivables from related <br>parties | GUC | $3756641 | $1651010 | $1092244 |
| Receivables from related <br>parties | VIS | 1400103 | 945224 | 1028233 |
|  | Others | 105614 | 143266 | 146575 |
|  |  | $5262358 | $2739500 | $2267052 |
| Other receivables from <br>related parties | SSMC | $933087 | $307 | $252 |
| Other receivables from <br>related parties | VIS | 751731 | 267808 | - |
|  |  | $1684818 | $268115 | $252 |

---

e.Payables to related parties

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| <u>Item</u> | <u>Related Party</u> <br><u>Name</u><br>|  |  |  |
| Payables to related parties | Xintec | $1081709 | $1298672 | $808463 |
|  | SSMC  | 614258 | 374088 | 314804 |
|  | Others | 104958 | 105970 | 93077 |
|  |  | $1800925 | $1778730 | $1216344 |

---

f.Accrued expenses and other current liabilities

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **March 31,**<br>**2026**<br>| **December 31,**<br>**2025**<br>| **March 31,**<br>**2025**<br>|
| <u>Item</u> | <u>Related Party Categories</u> |  |  |  |
| Temporary receipts | Associates | $839964 | $638804 | $4380204 |

---

g.Others

---

| | | | |
|:---|:---|:---|:---|
|  |  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  |  | **2026** | **2025** |
| <u>Item</u> | <u>Related Party Categories</u> |  |  |
| Manufacturing expenses | Associates | $1422849 | $1062424 |

---

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

with mutual agreements.

The Company leased factory and office from associates. The lease terms and prices were both

determined in 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:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31** | **Three Months Ended March 31** |
|  | **2026** | **2025** |
| Short-term employee benefits | $2287495 | $1441279 |
| Post-employment benefits | 719 | 1001 |
| Share-based payments | 78751 | 452154 |
|  | $2366965 | $1894434 |

---

The compensation to directors and other key management personnel were determined by the

Compensation and People Development Committee of TSMC in accordance with the individual

performance and market trends.

**32. PLEDGED ASSETS**

The Company provided negotiable certificates of deposit and time deposits recorded in other financial

assets as collateral mainly for court deposit and building lease agreements. As of March 31, 2026,

December 31, 2025 and March 31, 2025, the aforementioned other financial assets amounted to

NT$381,920 thousand, NT$129,385 thousand and NT$134,029 thousand, respectively.

**33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS**

Significant contingent liabilities and unrecognized commitments of the Company as of the end of the

reporting 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

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 purchase more 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 as of the end of reporting period.

c.In February 2025, Longitude Licensing Ltd. and Marlin Semiconductor Limited (collectively, "Marlin")

filed complaints with the U.S. International Trade Commission ("ITC") and the U.S. District Court for

the Eastern District of Texas alleging that TSMC and its customers infringe five U.S. patents. The ITC

instituted an investigation on March 21, 2025 and the lawsuit in the Eastern District Court for Texas

was statutorily stayed on April 23, 2025 pending the ITC investigation. 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, manufacturing services

and agreements of waste disposal with multiple suppliers. The relative minimum fulfillment quantity

and price are specified in the agreements.

e.TSMC entered into long-term purchase agreement of equipment and maintenance service. The relative

fulfillment period, quantity and price 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 March 31, 2026, December 31, 2025 and

March 31, 2025 were NT$447,293 thousand, NT$438,643 thousand and NT$496,415 thousand,

respectively.

h.The Company entrusted financial institutions to provide performance guarantees mainly for import and

export of goods, lease agreement and apply for subsidy. As of March 31, 2026, December 31, 2025 and

March 31, 2025, the aforementioned guarantee amounted to NT$24,039,125 thousand, NT$23,375,215

thousand, and NT$8,687,244 thousand, respectively.

**34. SIGNIFICANT LOSS FROM DISASTER**

In January 2025, several earthquakes struck Taiwan. The resulting damage was mostly to inventories,

machinery and equipment. In the first quarter of 2025, the Company recognized related earthquake losses

to be approximately NT$5.3 billion, net of insurance claim. Such losses were primarily included in the cost

of revenue and other operating income and expenses in net amounts.

On April 3, 2024, an earthquake struck Taiwan. The resulting damage was mostly to inventories, plant

facilities and machinery and equipment. In the second quarter of 2024, the Company recognized related

earthquake losses to be approximately NT$3 billion, net of insurance claim. Such losses were primarily

included in the cost of revenue and other operating income and expenses in net amounts.

**35. EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND** 

**LIABILITIES**

The 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

the functional currency. The significant financial assets and liabilities denominated in foreign currencies

were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Foreign** <br>**Currencies**<br>**(In Thousands)**<br>| **Exchange Rate** <br>**(Note 1)** | **Carrying** <br>**Amount**<br>**(In Thousands)**<br>|
| <u>March 31, 2026</u> |  |  |  |
| <u>Financial assets</u> |  |  |  |
| Monetary items |  |  |  |
| USD | $19033768 | 32.064 | $610298727 |
| EUR | 1689308 | 36.768 | 62112489 |
| JPY | 191452342 | 0.2012 | 38520211 |
| <u>Financial liabilities</u> |  |  |  |
| Monetary items |  |  |  |
| USD | 12548938 | 32.064 | 402369135 |
| EUR | 1609695 | 36.768 | 59185260 |
| JPY | 181252720 | 0.2012 | 36468047 |
| <u>December 31, 2025</u> |  |  |  |
| <u>Financial assets</u> |  |  |  |
| Monetary items |  |  |  |
| USD | 20847509 | 31.444 | 655529057 |
| EUR | 1110573 | 37.003 | 41094543 |
| JPY | 132541455 | 0.2013 | 26680595 |
|  |  |  | (Continued) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Foreign** <br>**Currencies**<br>**(In Thousands)**<br>| **Exchange Rate** <br>**(Note 1)** | **Carrying** <br>**Amount**<br>**(In Thousands)**<br>|
| <u>Financial liabilities</u> |  |  |  |
| Monetary items |  |  |  |
| USD | $12688419 | 31.444 | $398974654 |
| EUR | 1016157 | 37.003 | 37600861 |
| JPY | 131018646 | 0.2013 | 26374053 |
| <u>March 31, 2025</u> |  |  |  |
| <u>Financial assets</u> |  |  |  |
| Monetary items |  |  |  |
| USD | 20280414 | 33.205 | 673411158 |
| EUR | 795560 | 35.928 | 28582881 |
| JPY | 143636004 | 0.2214 | 31801011 |
| <u>Financial liabilities</u> |  |  |  |
| Monetary items |  |  |  |
| USD | 14011933 | 33.205 | 465266251 |
| EUR | 937784 | 35.928 | 33692689 |
| JPY | 147104858 | 0.2214 | 32569016 |
|  |  |  | (Concluded) |

---

Note 1:Except as otherwise noted, exchange rate represents the number of NT dollar for which one

foreign currency 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 three months ended March 31, 2026 and 2025, respectively. Since

there were varieties of foreign currency transactions and functional currencies within the subsidiaries of the

Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency

with significant impact.

**36. 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): there are no

significant securities that need to be listed separately;

d.Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital:

See Table 3 attached;

e.Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital:

See Table 4 attached;

f.Others: The business relationship between the parent and the subsidiaries and significant transactions

between them: See Table 5 attached;

g.Names, locations, and related information of investees over which TSMC exercises significant

influence (excluding information on investment in mainland China): See Table 6 attached;

h.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 7 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 5 attached.

**37. OPERATING SEGMENTS INFORMATION**

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 of

financial statements. Please refer to the consolidated statements of comprehensive income for the related

segment revenue and operating results.

**<u>TABLE 1</u>**

**Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries**

**FINANCINGS PROVIDED** <br>**FOR THE THREE MONTHS ENDED MARCH 31, 2026**<br>**(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)**<br>

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **No.** | **Financing** <br>**Company** | **Counterparty** | **Financial Statement** <br>**Account** | **Related** <br>**Party** | **Maximum** <br>**Balance for the** <br>**Period (Foreign** <br>**Currencies in** <br>**Thousands) (Note 3)** | **Ending Balance** <br>**(Foreign Currencies** <br>**in Thousands)** <br>**(Note 3)** | **Amount Actually** <br>**Drawn**<br>**(Foreign** <br>**Currencies in** <br>**Thousands)** | **Interest Rate** | **Nature for Financing** | **Transaction** <br>**Amounts** | **Reason for** <br>**Financing** | **Allowance for Bad** <br>**Debt** | **Collateral** | **Collateral** | **Financing Limits** <br>**for Each** <br>**Borrowing** <br>**Company**<br>**(Notes 1 and 2)** | **Financing** <br>**Company's Total** <br>**Financing Amount** <br>**Limits** <br>**(Notes 1 and 2)** |
| **No.** | **Financing** <br>**Company** | **Counterparty** | **Financial Statement** <br>**Account** | **Related** <br>**Party** | **Maximum** <br>**Balance for the** <br>**Period (Foreign** <br>**Currencies in** <br>**Thousands) (Note 3)** | **Ending Balance** <br>**(Foreign Currencies** <br>**in Thousands)** <br>**(Note 3)** | **Amount Actually** <br>**Drawn**<br>**(Foreign** <br>**Currencies in** <br>**Thousands)** | **Interest Rate** | **Nature for Financing** | **Transaction** <br>**Amounts** | **Reason for** <br>**Financing** | **Allowance for Bad** <br>**Debt** | **Item** | **Value** | **Financing Limits** <br>**for Each** <br>**Borrowing** <br>**Company**<br>**(Notes 1 and 2)** | **Financing** <br>**Company's Total** <br>**Financing Amount** <br>**Limits** <br>**(Notes 1 and 2)** |
| 1 | TSMC China | TSMC Nanjing | Other receivables from <br>related parties | Yes | $15787560 | $11144160 | $11144160 | 1.50% | The need for short-term <br>financing | $- | Operating capital | $- | - | $- | $129569624 | $129569624 |
|  | TSMC China | TSMC Nanjing | Other receivables from <br>related parties | Yes | (RMB3,400,000)  | (RMB2,400,000)  | (RMB2,400,000)  |  | The need for short-term <br>financing |  |  |  |  |  |  |  |
| 2 | TSMC <br>Development | TSMC <br>Washington | Other receivables from <br>related parties | Yes | 3847680 | 3847680 | 2885760 | - | The need for short-term <br>financing | - | Operating capital | - | - | - | 34462953 | 34462953 |
|  | TSMC <br>Development | TSMC <br>Washington | Other receivables from <br>related parties | Yes | (US$120,000)  | (US$120,000)  | (US$90,000)  |  | The need for short-term <br>financing |  |  |  |  |  |  |  |
| Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. | Note 1:The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China. |
| Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. | Note 2:The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development. |
| Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 3:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. |

---

**<u>TABLE 2</u>**

**Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries**

**ENDORSEMENTS/GUARANTEES PROVIDED**<br>**FOR THE THREE MONTHS ENDED MARCH 31, 2026**<br>**(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)**<br>

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| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **No.** | **Endorsement/**<br>**Guarantee** <br>**Provider** | **Guaranteed Party** | **Guaranteed Party** | **Limits on** <br>**Endorsement/** <br>**Guarantee** <br>**Amount** <br>**Provided to Each** <br>**Guaranteed** <br>**Party**<br>**(Note 1)** | **Maximum** <br>**Balance** <br>**for the Period**<br>**(Foreign** <br>**Currencies in** <br>**Thousands)**<br>**(Note 2)** | **Ending Balance**<br>**(Foreign** <br>**Currencies in** <br>**Thousands)**<br>**(Note 2)** | **Amount Actually** <br>**Drawn**<br>**(US$ in** <br>**Thousands)** | **Amount of** <br>**Endorsement/** <br>**Guarantee** <br>**Collateralized by** <br>**Properties** | **Ratio of** <br>**Accumulated** <br>**Endorsement/** <br>**Guarantee to Net** <br>**Equity per** <br>**Latest Financial** <br>**Statements** | **Maximum** <br>**Endorsement/** <br>**Guarantee** <br>**Amount** <br>**Allowable**<br>**(Notes 1 and 2)** | **Guarantee**<br>**Provided by**<br>**Parent** <br>**Company** | **Guarantee**<br>**Provided by**<br>**A Subsidiary** | **Guarantee**<br>**Provided to** <br>**Subsidiaries** <br>**in Mainland** <br>**China** |
| **No.** | **Endorsement/**<br>**Guarantee** <br>**Provider** | **Name** | **Nature of** <br>**Relationship**<br>| **Limits on** <br>**Endorsement/** <br>**Guarantee** <br>**Amount** <br>**Provided to Each** <br>**Guaranteed** <br>**Party**<br>**(Note 1)** | **Maximum** <br>**Balance** <br>**for the Period**<br>**(Foreign** <br>**Currencies in** <br>**Thousands)**<br>**(Note 2)** | **Ending Balance**<br>**(Foreign** <br>**Currencies in** <br>**Thousands)**<br>**(Note 2)** | **Amount Actually** <br>**Drawn**<br>**(US$ in** <br>**Thousands)** | **Amount of** <br>**Endorsement/** <br>**Guarantee** <br>**Collateralized by** <br>**Properties** | **Ratio of** <br>**Accumulated** <br>**Endorsement/** <br>**Guarantee to Net** <br>**Equity per** <br>**Latest Financial** <br>**Statements** | **Maximum** <br>**Endorsement/** <br>**Guarantee** <br>**Amount** <br>**Allowable**<br>**(Notes 1 and 2)** | **Guarantee**<br>**Provided by**<br>**Parent** <br>**Company** | **Guarantee**<br>**Provided by**<br>**A Subsidiary** | **Guarantee**<br>**Provided to** <br>**Subsidiaries** <br>**in Mainland** <br>**China** |
| 0 | TSMC | TSMC North <br>America | Subsidiary | $2356384101 | $2668151 | $2668151 | $2668151 | $- | 0.05% | $2356384101 | Yes | No | No |
| 0 |  | TSMC North <br>America | Subsidiary |  | (US$83,213) | (US$83,213) | (US$83,213) |  |  |  |  |  |  |
|  |  | TSMC Global | Subsidiary | 2356384101 | 208416000 | 208416000 | 208416000 | - | 3.54% | 2356384101 | Yes | No | No |
|  |  | TSMC Global | Subsidiary |  | (US$6,500,000) | (US$6,500,000) | (US$6,500,000) |  |  |  |  |  |  |
|  |  | TSMC Arizona | Subsidiary | 2356384101 | 480669372 | 480669372 | 350410398 | - | 8.16% | 2356384101 | Yes | No | No |
|  |  | TSMC Arizona | Subsidiary |  | (US$14,990,936) | (US$14,990,936) | (US$10,928,468) |  |  |  |  |  |  |
| Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. | Note 1:TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent <br>(40%) of TSMC's net worth. |
| Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. | Note 2:The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. |

---

**<u>TABLE 3</u>**

**Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries**

**TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL**<br>**FOR THE THREE MONTHS ENDED MARCH 31, 2026**<br>**(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)**<br>

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company Name** | **Related Party** | **Nature of Relationships** | **Transaction Details** | **Transaction Details** | **Transaction Details** | **Transaction Details** | **Abnormal Transaction** | **Abnormal Transaction** | **Notes/Accounts Payable or** <br>**Receivable** | **Notes/Accounts Payable or** <br>**Receivable** | **Note** |
| **Company Name** | **Related Party** | **Nature of Relationships** | **Purchases/**<br>**Sales**<br>| **Amount**<br>**(Foreign Currencies** <br>**in Thousands)**<br>| **% to** <br>**Total**<br>| **Payment Terms** | **Unit Price** | **Payment Terms** | **Ending Balance**<br>**(Foreign Currencies** <br>**in Thousands)**<br>| **% to** <br>**Total**<br>| **Note** |
| TSMC | TSMC North America | Subsidiary | Sales | $863512267 | 77 | Net 30 days from invoice date <br>(Note)<br>| - | - | $285255389 | 85 |  |
|  | JASM | Subsidiary | Sales | 495544 | - | Net 30 days from the end of the <br>month of when invoice is issued<br>| - | - | 484985 | - |  |
|  | GUC | Associate | Sales | 2233905 | - | Net 30 days from invoice date | - | - | 299025 | - |  |
|  | VIS | Associate | Sales | 647952 | - | Net 30 days from the end of the <br>month of when invoice is issued<br>| - | - | 1400104 | - |  |
|  | TSMC Arizona | Subsidiary | Purchases | 38749910 | 42 | Net 30 days from the end of the <br>month of when invoice is issued<br>| - | - | (14038018) | 12 |  |
|  | TSMC Nanjing | Subsidiary | Purchases | 21031620 | 23 | Net 30 days from the end of the <br>month of when invoice is issued<br>| - | - | (6788965) | 6 |  |
|  | TSMC China | Subsidiary | Purchases | 6835064 | 7 | Net 30 days from the end of the <br>month of when invoice is issued<br>| - | - | (2487330) | 2 |  |
|  | TSMC Washington | Indirect subsidiary | Purchases | 1815459 | 2 | Net 30 days from the end of the <br>month of when invoice is issued<br>| - | - | (554879) | - |  |
|  | SSMC | Associate | Purchases | 1277528 | 1 | Net 30 days from the end of the <br>month of when invoice is issued<br>| - | - | (614258) | 1 |  |
|  | VIS | Associate | Purchases | 222324 | - | Net 30 days from the end of the <br>month of when invoice is issued<br>| - | - | (81799) | - |  |
| TSMC North America | GUC | Associate of TSMC | Sales | 9692577 | 1 | Net 30 days from invoice date | - | - | 3457617 | 1 |  |
| TSMC North America |  |  |  | (US$306,805) |  |  |  |  | (US$107,835) |  |  |

---

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

**<u>TABLE 4</u>**

**Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries**

**RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL**<br>**March 31, 2026**<br>**(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)**<br>

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company Name** | **Related Party** | **Nature of Relationships** | **Ending Balance**<br>**(Foreign Currencies** <br>**in Thousands)** | **Turnover Days** <br>**(Note 1)** | **Overdue** | **Overdue** | **Amounts Received in** <br>**Subsequent Period** | **Allowance for**<br>**Bad Debts** |
| **Company Name** | **Related Party** | **Nature of Relationships** | **Ending Balance**<br>**(Foreign Currencies** <br>**in Thousands)** | **Turnover Days** <br>**(Note 1)** | **Amount** | **Action Taken** | **Amounts Received in** <br>**Subsequent Period** | **Allowance for**<br>**Bad Debts** |
| TSMC | TSMC North America | Subsidiary | $289716664 | 26 | $- | - | $- | $- |
|  | JASM | Subsidiary | 485006 | Note 2 | - | - | - | - |
|  | VIS | Associate | 2151835 | Note 2 | - | - | - | - |
|  | SSMC | Associate | 998430 | Note 2 | - | - | - | - |
|  | GUC | Associate | 299025 | 14 | - | - | - | - |
| TSMC North America | GUC | Associate of TSMC | 3457617 | 22 | - | - | - | - |
|  |  |  | (US$107,835) |  |  |  |  |  |
| TSMC Europe | TSMC | Parent company | 101999 | Note 2 | - | - | - | - |
|  |  |  | (EUR 2,774) |  |  |  |  |  |
| TSMC JDC | TSMC | Parent company | 133751 | Note 2 | - | - | - | - |
|  |  |  | (JPY 664,766) |  |  |  |  |  |
| TSMC China | TSMC | Parent company | 2487330 | 31 | - | - | - | - |
| TSMC China |  |  | (RMB 535,671) |  |  |  |  |  |
| TSMC China | TSMC Nanjing | The same parent company | 11196871 | Note 2 | - | - | - | - |
| TSMC China |  |  | (RMB 2,411,352) |  |  |  |  |  |
| TSMC Nanjing | TSMC | Parent company | 6788965 | 21 | - | - | - | - |
| TSMC Nanjing |  |  | (RMB 1,462,071) |  |  |  |  |  |
| TSMC Arizona | TSMC | Parent company | 14038018 | 27 | - | - | - | - |
|  |  |  | (US$437,812) |  |  |  |  |  |
| TSMC Technology | TSMC | The ultimate parent of the Company | 972121 | Note 2 | - | - | - | - |
|  |  |  | (US$30,318) |  |  |  |  |  |
| TSMC Development | TSMC Washington | Subsidiary | 2885760 | Note 2 | - | - | - | - |
|  |  |  | (US$90,000) |  |  |  |  |  |
| TSMC Washington | TSMC | The ultimate parent of the Company | 554879 | 28 | - | - | - | - |
|  |  |  | (US$17,305) |  |  |  |  |  |

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

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

**<u>TABLE 5</u>**

**Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries**

**INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS**<br>**FOR THE THREE MONTHS ENDED MARCH 31, 2026**<br>**(Amounts in Thousands of New Taiwan Dollars)**<br>

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **No.** | **Company Name** | **Counterparty** | **Nature of** <br>**Relationship**<br>**(Note 1)** | **Intercompany Transactions** | **Intercompany Transactions** | **Intercompany Transactions** | **Intercompany Transactions** |
| **No.** | **Company Name** | **Counterparty** | **Nature of** <br>**Relationship**<br>**(Note 1)** | **Financial Statements Item** | **Amount** | **Terms**<br>**(Note 2)**<br>| **Percentage of** <br>**Consolidated** <br>**Net Revenue** <br>**or Total Assets**<br>|
| 0 | TSMC | TSMC North America | 1 | Sales revenue | $863512267 | － | 76% |
|  |  |  |  | Receivables from related parties | 285255389 | － | 3% |
|  |  |  |  | Accrued expenses and other current liabilities | 73300725 | － | 1% |
|  |  | TSMC Nanjing | 1 | Purchases | 21031620 | － | 2% |
|  |  | TSMC Arizona | 1 | Purchases | 38749910 | － | 3% |

---

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

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.

**<u>TABLE 6</u>**

**Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries**

**NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN MAINLAND CHINA)**<br>**FOR THE THREE MONTHS ENDED MARCH 31, 2026**<br>**(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)**<br>

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investor Company** | **Investee Company** | **Location** | **Main Businesses and Products** | **Original Investment Amount** | **Original Investment Amount** | **Balance as of March 31, 2026** | **Balance as of March 31, 2026** | **Balance as of March 31, 2026** | **Net Income** <br>**(Losses) of the** <br>**Investee**<br>**(Foreign** <br>**Currencies in** <br>**Thousands)** | **Share of** <br>**Profits/Losses** <br>**of Investee**<br>**(Note 1)**<br>**(Foreign** <br>**Currencies in** <br>**Thousands)** | **Note** |
| **Investor Company** | **Investee Company** | **Location** | **Main Businesses and Products** | **March 31,** <br>**2026**<br>**(Foreign**<br>**Currencies in**<br>**Thousands)**<br>| **December 31,** <br>**2025**<br>**(Foreign**<br>**Currencies in**<br>**Thousands)**<br>| **Shares (In** <br>**Thousands)**<br>| **Percentage of** <br>**Ownership**<br>| **Carrying** <br>**Value** <br>**(Foreign** <br>**Currencies in** <br>**Thousands)**<br>| **Net Income** <br>**(Losses) of the** <br>**Investee**<br>**(Foreign** <br>**Currencies in** <br>**Thousands)** | **Share of** <br>**Profits/Losses** <br>**of Investee**<br>**(Note 1)**<br>**(Foreign** <br>**Currencies in** <br>**Thousands)** | **Note** |
| TSMC | TSMC Global | Tortola, British Virgin Islands | Investment activities | $1285638909 | $1178213709 | 40 | 100 | $1501555620 | $15951199 | $15951199 | Subsidiary |
|  | TSMC Arizona | Phoenix, Arizona, U.S.A. | Manufacturing, sales and testing of integrated circuits <br>and other semiconductor devices<br>| 759561260 | 672616510 | 24000 | 100 | 762123304 | 18807633 | 16909276 | Subsidiary |
|  | TSMC Partners | Tortola, British Virgin Islands | Investing in companies involved in the semiconductor <br>design and manufacturing, and other investment <br>activities<br>| 31456130 | 31456130 | 988268 | 100 | 79027513 | 386617 | 386617 | Subsidiary |
|  | JASM | Kumamoto, Japan | Manufacturing, sales and testing of integrated circuits <br>and other semiconductor devices<br>| 68384148 | 68384148 | 3011 | 73 | 48849998 | 951388 | 691183 | Subsidiary |
|  | ESMC | Dresden, Germany | Manufacturing, sales and testing of integrated circuits <br>and other semiconductor devices<br>| 38221667 | 38221667 | 805 | 70 | 39030970 | (278113) | (194679) | Subsidiary |
|  | VIS | Hsinchu, Taiwan | Manufacturing, sales, packaging, testing and computer-<br>aided design of integrated circuits and other <br>semiconductor devices and the manufacturing and <br>design service of masks<br>| 13919430 | 13919430 | 506709 | 28 | 19193955 | 2246078 | 617571 | Associate |
|  | VisEra Tech | Hsinchu, Taiwan | Research, design, development, manufacturing, sales, <br>packaging and test of color filter<br>| 4224082 | 4224082 | 213619 | 67 | 12244267 | 475899 | 297289 | Subsidiary |
|  | SSMC | Singapore | Manufacturing and sales of integrated circuits and other <br>semiconductor devices<br>| 5120028 | 5120028 | 314 | 39 | 11136415 | 866547 | 336133 | Associate |
|  | TSMC North America | San Jose, California, U.S.A. | Sales and marketing of integrated circuits and other <br>semiconductor devices<br>| 333718 | 333718 | 11000 | 100 | 9059100 | 114082 | 114082 | Subsidiary |
|  | Xintec | Taoyuan, Taiwan | Wafer level chip size packaging and wafer level post <br>passivation interconnection service<br>| 1988317 | 1988317 | 111282 | 41 | 4645631 | 384417 | 157650 | Associate |
|  | Emerging Fund | Cayman Islands | Investing in technology start-up companies | 2878378 | 3014372 | - | 99.9 | 4617329 | 4814 | 4809 | Subsidiary |
|  | GUC | Hsinchu, Taiwan | Researching, developing, manufacturing, testing and <br>marketing of integrated circuits<br>| 386568 | 386568 | 46688 | 35 | 2789361 | 1646240 | 573550 | Associate |
|  | TSMC 3DIC | Yokohama, Japan | Engineering support activities | 1144356 | 1144356 | 49 | 100 | 1523066 | 21754 | 21754 | Subsidiary |
|  | TSMC Europe | Amsterdam, the Netherlands | Customer service and supporting activities | 15749 | 15749 | - | 100 | 778075 | 15652 | 15652 | Subsidiary |
|  | TSMC JDC | Yokohama, Japan | Engineering support activities | 410680 | 410680 | 15 | 100 | 447251 | 14197 | 14197 | Subsidiary |
|  | TSMC Japan | Yokohama, Japan | Customer service and supporting activities | 83760 | 83760 | 6 | 100 | 131703 | 2626 | 2626 | Subsidiary |
|  | TSMC Korea | Seoul, Korea | Customer service and supporting activities | 13656 | 13656 | 80 | 100 | 42776 | 169 | 169 | Subsidiary |
| TSMC Partners | TSMC Development | Delaware, U.S.A. | Investing in companies involved in semiconductor <br>manufacturing<br>| 18819606 | 18819606 | - | 100 | 39148275 | (79014) | Note 2 | Subsidiary |
|  |  |  |  | (US$586,939) | (US$586,939) |  |  | (US$1,220,942) | (US$(2501)) |  |  |
|  | TSMC Technology | Delaware, U.S.A. | Engineering support activities | 457939 | 457939 | - | 100 | 1996699 | 46567 | Note 2 | Subsidiary |
|  |  |  |  | (US$14,282) | (US$14,282) |  |  | (US$62,272) | (US$1,474) |  |  |
|  | TSMC Canada | Ontario, Canada | Engineering support activities | 73747 | 73747 | 2300 | 100 | 487977 | 14249 | Note 2 | Subsidiary |
|  |  |  |  | (US$2,300) | (US$2,300) |  |  | (US$15,219) | (US$451) |  |  |
| TSMC <br>Development<br>| TSMC Washington | Washington, U.S.A. | Manufacturing, sales and testing of integrated circuits <br>and other semiconductor devices<br>| - | - | 293637 | 100 | 4465673 | (192884) | Note 2 | Subsidiary |
|  |  |  |  |  |  |  |  | (US$139,274) | (US$(6105)) |  |  |

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Note 1:The share of profits/losses of investee includes the effect of unrealized gross profit on intercompany transactions.

Note 2: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.

**<u>TABLE 7</u>**

**Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries**

**INFORMATION ON INVESTMENT IN MAINLAND CHINA**<br>**FOR THE THREE MONTHS ENDED MARCH 31, 2026**<br>**(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)**<br>

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investee Company** | **Main Businesses and** <br>**Products** | **Total Amount of** <br>**Paid-in Capital** <br>**(RMB in Thousands)** | **Method of** <br>**Investment** | **Accumulated** <br>**Outflow of** <br>**Investment from** <br>**Taiwan as of** <br>**January 1, 2026** <br>**(US$ in Thousands)** | **Investment Flows** | **Investment Flows** | **Accumulated** <br>**Outflow of** <br>**Investment from** <br>**Taiwan as of** <br>**March 31, 2026** <br>**(US$ in** <br>**Thousands)** | **Net Income** <br>**(Losses) of the** <br>**Investee** <br>**Company** | **Percentage of** <br>**Ownership** | **Share of** <br>**Profits/Losses** | **Carrying** <br>**Amount** <br>**as of** <br>**Balance as of** <br>**March 31, 2026** | **Accumulated** <br>**Inward** <br>**Remittance of** <br>**Earnings as of** <br>**March 31, 2026** |
| **Investee Company** | **Main Businesses and** <br>**Products** | **Total Amount of** <br>**Paid-in Capital** <br>**(RMB in Thousands)** | **Method of** <br>**Investment** | **Accumulated** <br>**Outflow of** <br>**Investment from** <br>**Taiwan as of** <br>**January 1, 2026** <br>**(US$ in Thousands)** | **Outflow**<br>**(US$ in** <br>**Thousands)**<br>| **Inflow** | **Accumulated** <br>**Outflow of** <br>**Investment from** <br>**Taiwan as of** <br>**March 31, 2026** <br>**(US$ in** <br>**Thousands)** | **Net Income** <br>**(Losses) of the** <br>**Investee** <br>**Company** | **Percentage of** <br>**Ownership** | **Share of** <br>**Profits/Losses** | **Carrying** <br>**Amount** <br>**as of** <br>**Balance as of** <br>**March 31, 2026** | **Accumulated** <br>**Inward** <br>**Remittance of** <br>**Earnings as of** <br>**March 31, 2026** |
| TSMC China | Manufacturing, sales, <br>testing and computer-<br>aided design of <br>integrated circuits and <br>other semiconductor <br>devices | $18939667 | (Note 1) | $18939667 | $- | $- | $18939667 | $2825328 | 100% | $2842661 | $129346799 | $- |
| TSMC China | Manufacturing, sales, <br>testing and computer-<br>aided design of <br>integrated circuits and <br>other semiconductor <br>devices | (RMB4,502,080) |  | (US$596,000) |  |  | (US$596,000) |  |  | (Note 2) |  |  |
| TSMC Nanjing | Manufacturing, sales, <br>testing and computer-<br>aided design of <br>integrated circuits and <br>other semiconductor <br>devices | 30521412 | (Note 1) | 30521412 | - | - | 30521412 | 7589124 | 100% | 7593489 | 158058509 | - |
| TSMC Nanjing | Manufacturing, sales, <br>testing and computer-<br>aided design of <br>integrated circuits and <br>other semiconductor <br>devices | (RMB6,650,119) |  | (US$1,000,000) |  |  | (US$1,000,000) |  |  | (Note 2) |  |  |

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| | | |
|:---|:---|:---|
| **Accumulated Investment in Mainland China** <br>**as of March 31, 2026** <br>**(US$ in Thousands)**<br>| **Investment Amounts Authorized by**<br>**Investment Commission, MOEA**<br>**(US$ in Thousands)**<br>| **Upper Limit on Investment** |
| $49461079 | $119412667 | $3559433353 |
| (US$1,596,000) | (US$3,596,000) | (Note 3) |

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Note 1:TSMC directly invested US$596,000 thousand in TSMC China and US$1,000,000 thousands in TSMC Nanjing.

Note 2:Amount was recognized based on the reviewed financial statements.

Note 3:The upper limit on investment in mainland China is determined by sixty percent (60%) of the Company's consolidated net worth.