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 November 2023

(Commission File Number: 001-14700)

_____________________________

Taiwan Semiconductor Manufacturing Company Ltd.

(Translation of Registrant’s Name Into English)

_____________________________

No. 8, Li-Hsin Rd. 6,

Hsinchu Science Park,

Taiwan, R.O.C.

(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  x            Form 40-F  o

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): o

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): o

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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 Ltd.

Date:   November 14, 2023

By

/s/ Wendell Huang

Wendell Huang

Vice President and Chief Financial Officer

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Exhibits

			Exhibit Number			Exhibit Description
			99.1			Consolidated Financial Statements for the Nine Months Ended September 30, 2023 and 2022 and Independent Auditors’ Review Report pursuant to International Financial Reporting Standards adopted by ROC ("Taiwan-IFRSs")

English Translation of Financial Statements Originally Issued in Chinese

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

Consolidated Financial Statements for the

Nine Months Ended September 30, 2023 and 2022 and

Independent Auditors’ Review Report

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勤業眾信

勤業眾信聯合會計師事務所

11073 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 11073, 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 September 30, 2023 and 2022, the related consolidated statements of comprehensive income for the three months ended September 30, 2023 and 2022 and for the nine months ended September 30, 2023 and 2022, the consolidated statements of changes in equity and cash flows for the nine 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 September 30, 2023 and 2022, its consolidated financial performance for the three months ended September 30, 2023 and 2022, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2023 and 2022 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.

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The engagement partners on the reviews resulting in this independent auditors’ review report are Shih Tsung Wu and Shang Chih Lin.

Deloitte & Touche

Taipei, Taiwan

Republic of China

November 14, 2023

Notice to Readers

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.

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

						September 30, 2023																											December 31, 2022																											September 30, 2022
ASSETS						Amount															%												Amount															%												Amount															%
CURRENT ASSETS
Cash and cash equivalents (Note 6)						$	1,311,806,535																	24									$	1,342,814,083																	27									$	1,296,012,784																	28
Financial assets at fair value through profit or loss (Note 7)									378,526															-												1,070,398															-												4,705,434															-
Financial assets at fair value through other comprehensive income (Note 8)									154,838,390															3												122,998,543															2												126,209,422															3
Financial assets at amortized cost (Note 9)									84,261,089															2												94,600,219															2												71,857,468															1
Hedging financial assets (Note 10)									37,451															-												2,329															-												88,431															-
Notes and accounts receivable, net (Note 11)									222,467,653															4												229,755,887															5												260,447,134															6
Receivables from related parties (Note 31)									356,257															-												1,583,958															-												1,091,174															-
Other receivables from related parties (Note 31)									82,363															-												68,975															-												76,143															-
Inventories (Note 12)									262,090,072															5												221,149,148															4												218,335,874															5
Other financial assets (Note 32)									26,938,240															-												25,964,428															1												24,855,999															-
Other current assets									19,221,060															-												12,888,776															-												10,552,495															-
Total current assets									2,082,477,636															38												2,052,896,744															41												2,014,232,358															43
NONCURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7)									111,637															-												-															-												-															-
Financial assets at fair value through other comprehensive income (Note 8)									7,933,799															-												6,159,200															-												6,784,978															-
Financial assets at amortized cost (Note 9)									79,379,651															2												35,127,215															1												42,347,584															1
Investments accounted for using equity method (Note 13)									28,921,558															1												27,641,505															1												26,663,336															1
Property, plant and equipment (Note 14)									3,132,664,367															57												2,693,836,970															54												2,411,490,251															52
Right-of-use assets (Note 15)									41,254,711															1												41,914,136															1												42,349,743															1
Intangible assets (Note 16)									23,410,569															-												25,999,155															1												26,706,552															1
Deferred income tax assets (Note 4)									71,030,144															1												69,185,842															1												63,058,097															1
Refundable deposits									8,388,839															-												4,467,022															-												4,451,490															-
Other noncurrent assets									8,983,470															-												7,551,089															-												5,217,377															-
Total noncurrent assets									3,402,078,745															62												2,911,882,134															59												2,629,069,408															57
TOTAL						$	5,484,556,381																	100									$	4,964,778,878																	100									$	4,643,301,766																	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Financial liabilities at fair value through profit or loss (Note 7)						$	132,768																	-									$	116,215																	-									$	611,010																	-
Hedging financial liabilities (Note 10)									26,879,550															-												813															-												-															-
Accounts payable									52,150,883															1												54,879,708															1												60,147,405															1
Payables to related parties (Note 31)									1,621,423															-												1,642,637															-												1,870,819															-
Salary and bonus payable									28,657,288															1												36,435,509															1												31,380,029															1
Accrued profit sharing bonus to employees and compensation to directors (Note 27)									37,708,203															1												61,748,574															1												45,041,965															1
Payables to contractors and equipment suppliers									230,848,866															4												213,499,613															4												159,780,369															3
Cash dividends payable (Note 19)									155,592,426															3												142,617,093															3												142,617,093															3
Income tax payable (Note 4)									102,953,391															2												120,801,814															3												76,005,324															2
Long-term liabilities - current portion (Notes 17, 18 and 29)									7,420,132															-												19,313,889															-												23,426,667															1
Accrued expenses and other current liabilities (Notes 15, 20, 29 and 31)									326,069,886															6												293,170,952															6												266,550,606															6
Total current liabilities									970,034,816															18												944,226,817															19												807,431,287															18
NONCURRENT LIABILITIES
Bonds payable (Notes 17 and 29)									932,479,423															17												834,336,439															17												842,386,471															18
Long-term bank loans (Notes 18 and 29)									5,013,050															-												4,760,047															-												3,055,178															-
Deferred income tax liabilities (Note 4)									212,549															-												1,031,383															-												1,466,389															-
Lease liabilities (Notes 15 and 29)									29,415,325															1												29,764,097															-												30,182,353															1
Net defined benefit liability (Note 4)									8,615,678															-												9,321,091															-												8,503,262															-
Guarantee deposits									983,928															-												892,021															-												907,991															-
Others (Note 20)									164,983,505															3												179,958,116															4												197,052,676															4
Total noncurrent liabilities									1,141,703,458															21												1,060,063,194															21												1,083,554,320															23
Total liabilities									2,111,738,274															39												2,004,290,011															40												1,890,985,607															41
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
Capital stock (Notes 19)									259,320,710															5												259,303,805															5												259,303,805															6
Capital surplus (Notes 19 and 26)									69,879,218															1												69,330,328															1												69,316,391															1
Retained earnings (Notes 19)
Appropriated as legal capital reserve									311,146,899															6												311,146,899															6												311,146,899															7
Appropriated as special capital reserve									17,228,363															-												3,154,310															-												35,064,663															1
Unappropriated earnings									2,682,157,537															49												2,323,223,479															47												2,066,562,035															44
									3,010,532,799															55												2,637,524,688															53												2,412,773,597															52
Others (Notes 19 and 26)									8,616,930															-												(20,505,626						)									-												(3,419,487						)									-
Equity attributable to shareholders of the parent									3,348,349,657															61												2,945,653,195															59												2,737,974,306															59
NON - CONTROLLING INTERESTS									24,468,450															-												14,835,672															1												14,341,853															-
Total equity									3,372,818,107															61												2,960,488,867															60												2,752,316,159															59
TOTAL						$	5,484,556,381																	100									$	4,964,778,878																	100									$	4,643,301,766																	100

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

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

						For the Three Months Ended September 30																																																						For the Nine Months Ended September 30
						2023																											2022																											2023																											2022
						Amount															%												Amount															%												Amount															%												Amount															%
NET REVENUE (Notes 20, 31 and 36)						$	546,732,758																	100									$	613,142,743																	100									$	1,536,206,985																	100									$	1,638,359,424																	100
COST OF REVENUE (Notes 12, 27 and 31)									250,090,294															46												242,644,026															40												692,864,282															45												679,189,547															41
GROSS PROFIT									296,642,464															54												370,498,717															60												843,342,703															55												959,169,877															59
OPERATING EXPENSES (Notes 27 and 31)
Research and development									51,137,762															9												42,977,507															7												131,960,076															9												118,675,177															7
General and administrative									14,998,124															3												14,499,002															2												42,637,461															3												36,567,623															2
Marketing									2,572,905															-												2,709,953															-												7,615,158															-												6,929,370															1
Total operating expenses									68,708,791															12												60,186,462															9												182,212,695															12												162,172,170															10
OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14 and 27)									131,230															-												11,959															-												131,095															-												(759,626						)									-
INCOME FROM OPERATIONS (Note 36)									228,064,903															42												310,324,214															51												661,261,103															43												796,238,081															49
NON-OPERATING INCOME AND EXPENSES
Share of profits of associates									1,166,970															-												2,077,809															-												3,339,974															-												6,061,304															-
Interest income (Note 21)									15,595,274															3												6,615,044															1												42,885,113															3												11,834,868															1
Other income									78,165															-												120,905															-												403,727															-												941,465															-
Foreign exchange gain (loss), net (Note 34)									(791,543						)									-												(3,748,421						)									(1			)									(1,838,720						)									-												5,859,265															-
Finance costs (Note 22)									(3,111,922						)									(1			)									(3,370,018						)									-												(9,080,763						)									-												(8,415,015						)									(1			)
Other gains and losses, net (Note 23)									938,648															-												4,671,334															1												3,919,901															-												(2,999,124						)									-
Total non-operating income and expenses									13,875,592															2												6,366,653															1												39,629,232															3												13,282,763															-
INCOME BEFORE INCOME TAX									241,940,495															44												316,690,867															52												700,890,335															46												809,520,844															49
INCOME TAX EXPENSE (Notes 4 and 24)									31,145,221															5												35,722,460															6												101,429,019															7												88,498,811															5
NET INCOME									210,795,274															39												280,968,407															46												599,461,316															39												721,022,033															44
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 19 and 24)
Items that will not be reclassified subsequently to profit or loss:
Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income									(8,655						)									-												(103,591						)									-												987,893															-												68,610															-
Gain on hedging instruments									-															-												-															-												39,898															-												-															-
Share of other comprehensive income of associates									107,972															-												21,431															-												62,956															-												76,518															-
Income tax benefit (expense) related to items that will not be reclassified subsequently									-															-												31															-												(25						)									-												262															-
									99,317															-												(82,129						)									-												1,090,722															-												145,390															-
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations									27,637,865															5												34,872,636															5												28,594,668															2												68,084,934															4
Unrealized loss on investments in debt instruments at fair value through other comprehensive income									(1,856,201						)									(1			)									(2,973,821						)									-												(1,455,025						)									-												(11,263,186						)									-
Gain (loss) on hedging instruments									(19,068						)									-												4,989															-												(55,327						)									-												1,347,573															-
Share of other comprehensive income of associates									187,312															-												299,724															-												237,518															-												591,374															-
Income tax benefit related to items that may be reclassified subsequently									-															-												-															-												-															-												6,036															-
									25,949,908															4												32,203,528															5												27,321,834															2												58,766,731															4
Other comprehensive income, net of income tax									26,049,225															4												32,121,399															5												28,412,556															2												58,912,121															4
TOTAL COMPREHENSIVE INCOME						$	236,844,499																	43									$	313,089,806																	51									$	627,873,872																	41									$	779,934,154																	48
NET INCOME ATTRIBUTABLE TO:
Shareholders of the parent						$	210,999,939																	39									$	280,865,780																	46									$	599,785,521																	39									$	720,626,072																	44
Non-controlling interests									(204,665						)									-												102,627															-												(324,205						)									-												395,961															-
						$	210,795,274																	39									$	280,968,407																	46									$	599,461,316																	39									$	721,022,033																	44
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Shareholders of the parent						$	237,285,511																	43									$	312,889,198																	51									$	629,307,238																	41									$	780,221,513																	48
Non-controlling interests									(441,012						)									-												200,608															-												(1,433,366						)									-												(287,359						)									-
						$	236,844,499																	43									$	313,089,806																	51									$	627,873,872																	41									$	779,934,154																	48
EARNINGS PER SHARE (NT$, Note 25)
Basic earnings per share						$	8.14																										$	10.83																										$	23.13																										$	27.79
Diluted earnings per share						$	8.14																										$	10.83																										$	23.13																										$	27.79

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

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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
																																																																								Others
																																																																																	Unrealized
																																																																																	Gain (Loss) on
																																																																																	Financial
																																																																																	Assets at Fair
																																																																								Foreign									Value Through																		Unearned
						Capital Stock - Common Stock																														Retained Earnings																																				Currency									Other									Gain (Loss) on									Stock-Based
						Shares																														Legal Capital									Special Capital									Unappropriated																		Translation									Comprehensive									Hedging									Employee																		Treasury																		Non-controlling									Total
						(In Thousands)												Amount									Capital Surplus									Reserve									Reserve									Earnings									Total									Reserve									Income									Instruments									Compensation									Total									Stock									Total									Interests									Equity
BALANCE, JANUARY 1, 2022									25,930,380									$	259,303,805								$	64,761,602								$	311,146,899								$	59,304,212								$	1,536,378,550								$	1,906,829,661								$			(63,303,361			)			$	574,310								$	120,536								$			-						$			(62,608,515			)			$			-						$	2,168,286,553								$	2,446,652								$	2,170,733,205
Appropriations of earnings
Special capital reserve									-												-									-									-									(24,239,549			)						24,239,549									-									-									-									-									-									-									-									-									-									-
Cash dividends to shareholders									-												-									-									-									-									(213,925,638			)						(213,925,638			)						-									-									-									-									-									-									(213,925,638			)						-									(213,925,638)
Total									-												-									-									-									(24,239,549			)						(189,686,089			)						(213,925,638			)						-									-									-									-									-									-									(213,925,638			)						-									(213,925,638)
Net income									-												-									-									-									-									720,626,072									720,626,072									-									-									-									-									-									-									720,626,072									395,961									721,022,033
Other comprehensive income (loss), net of income tax									-												-									-									-									-									-									-									69,359,198									(11,207,118			)						1,443,361									-									59,595,441									-									59,595,441									(683,320			)						58,912,121
Total comprehensive income (loss)									-												-									-									-									-									720,626,072									720,626,072									69,359,198									(11,207,118			)						1,443,361									-									59,595,441									-									780,221,513									(287,359			)						779,934,154
Share-based payment arrangements									1,387												13,870									438,029									-									-									-									-									-									-									-									(265,177			)						(265,177			)						-									186,722									-									186,722
Treasury stock acquired									-												-									-									-									-									-									-									-									-									-									-									-									(871,566			)						(871,566			)						-									(871,566)
Treasury stock retired									(1,387			)									(13,870			)						(2,989			)						-									-									(854,707			)						(854,707			)						-									-									-									-									-									871,566									-									-									-
Disposal of investments in equity instruments at fair value through other comprehensive income									-												-									-									-									-									98,209									98,209									-									(98,209			)						-									-									(98,209			)						-									-									-									-
Basis adjustment for loss on hedging instruments									-												-									-									-									-									-									-									-									-									(43,027			)						-									(43,027			)						-									(43,027			)						-									(43,027)
Adjustments to share of changes in equities of associates									-												-									2,582									-									-									-									-									-									-									-									-									-									-									2,582									-									2,582
From share of changes in equities of subsidiaries									-												-									4,117,167									-									-									-									-									-									-									-									-									-									-									4,117,167									12,348,992									16,466,159
Decrease in non-controlling interests									-												-									-									-									-									-									-									-									-									-									-									-									-									-									(166,432			)						(166,432)
BALANCE, SEPTEMBER 30, 2022									25,930,380									$	259,303,805								$	69,316,391								$	311,146,899								$	35,064,663								$	2,066,562,035								$	2,412,773,597								$	6,055,837								$			(10,731,017			)			$	1,520,870								$			(265,177			)			$			(3,419,487			)			$			-						$	2,737,974,306								$	14,341,853								$	2,752,316,159
BALANCE, JANUARY 1, 2023									25,930,380									$	259,303,805								$	69,330,328								$	311,146,899								$	3,154,310								$	2,323,223,479								$	2,637,524,688								$			(11,743,301			)			$			(10,056,353			)			$	1,479,181								$			(185,153			)			$			(20,505,626			)			$			-						$	2,945,653,195								$	14,835,672								$	2,960,488,867
Appropriations of earnings
Special capital reserve									-												-									-									-									14,074,053									(14,074,053			)						-									-									-									-									-									-									-									-									-									-
Cash dividends to shareholders									-												-									-									-									-									(226,900,972			)						(226,900,972			)						-									-									-									-									-									-									(226,900,972			)						-									(226,900,972)
Total									-												-									-									-									14,074,053									(240,975,025			)						(226,900,972			)						-									-									-									-									-									-									(226,900,972			)						-									(226,900,972)
Net income									-												-									-									-									-									599,785,521									599,785,521									-									-									-									-									-									-									599,785,521									(324,205			)						599,461,316
Other comprehensive income (loss), net of income tax									-												-									-									-									-									-									-									29,942,174									(434,126			)						13,669									-									29,521,717									-									29,521,717									(1,109,161			)						28,412,556
Total comprehensive income (loss)									-												-									-									-									-									599,785,521									599,785,521									29,942,174									(434,126			)						13,669									-									29,521,717									-									629,307,238									(1,433,366			)						627,873,872
Employee restricted shares retired									(419			)									(4,195			)						4,195									-									-									4,614									4,614									-									-									-									-									-									-									4,614									-									4,614
Share-based payment arrangements									2,110												21,100									564,868									-									-									-									-									-									-									-									(235,582			)						(235,582			)						-									350,386									-									350,386
Disposal of investments in equity instruments at fair value through other comprehensive income									-												-									-									-									-									118,948									118,948									-									(118,948			)						-									-									(118,948			)						-									-									-									-
Basis adjustment for loss on hedging instruments									-												-									-									-									-									-									-									-									-									(44,631			)						-									(44,631			)						-									(44,631			)						-									(44,631)
Adjustments to share of changes in equities of associates									-												-									(1,236			)						-									-									-									-									-									-									-									-									-									-									(1,236			)						-									(1,236)
From share of changes in equities of subsidiaries									-												-									(18,937			)						-									-									-									-									-									-									-									-									-									-									(18,937			)						11,264,847									11,245,910
Decrease in non-controlling interests									-												-									-									-									-									-									-									-									-									-									-									-									-									-									(198,703			)						(198,703)
BALANCE, SEPTEMBER 30, 2023									25,932,071									$	259,320,710								$	69,879,218								$	311,146,899								$	17,228,363								$	2,682,157,537								$	3,010,532,799								$	18,198,873								$			(10,609,427			)			$	1,448,219								$			(420,735			)			$	8,616,930								$			-						$	3,348,349,657								$	24,468,450								$	3,372,818,107

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

- 5 -

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

						Nine Months Ended September 30
						2023															2022
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax						$	700,890,335														$	809,520,844
Adjustments for:
Depreciation expense									374,654,167															323,122,219
Amortization expense									6,888,324															6,550,157
Expected credit losses recognized on investments in debt instruments									41,161															33,282
Finance costs									9,080,763															8,415,015
Share of profits of associates									(3,339,974						)									(6,061,304						)
Interest income									(42,885,113						)									(11,834,868						)
Share-based compensation									355,701															222,091
Loss on disposal or retirement of property, plant and equipment, net									335,393															91,532
Gain on disposal or retirement of intangible assets, net									(2,308						)									-
Impairment loss on property, plant and equipment									-															790,740
Gain on financial instruments at fair value through profit or loss, net									(27,022						)									-
Loss on disposal of investments in debt instruments at fair value through other comprehensive income, net									372,631															346,125
Loss on foreign exchange, net									4,178,853															12,532,183
Dividend income									(387,837						)									(260,534						)
Others									(280,262						)									(292,572						)
Changes in operating assets and liabilities:
Financial instruments at fair value through profit or loss									857,225															(4,622,312						)
Notes and accounts receivable, net									7,288,198															(62,861,124						)
Receivables from related parties									1,227,701															(375,850						)
Other receivables from related parties									(13,388						)									(14,612						)
Inventories									(40,940,924						)									(25,233,553						)
Other financial assets									263,031															(4,371,124						)
Other current assets									(5,852,289						)									(1,072,295						)
Other noncurrent assets									(378,730						)									-
Accounts payable									(2,728,825						)									12,861,802
Payables to related parties									(21,214						)									433,633
Salary and bonus payable									(7,778,221						)									7,577,929
Accrued profit sharing bonus to employees and compensation to directors									(24,040,371						)									8,517,224
Accrued expenses and other current liabilities									(34,382,658						)									38,582,192
Other noncurrent liabilities									26,776,501															100,127,809
Net defined benefit liability									(705,413						)									(2,533,617						)
Cash generated from operations									969,445,435															1,210,191,012
Income taxes paid									(122,307,435						)									(86,473,728						)
Net cash generated by operating activities									847,138,000															1,123,717,284

(Continued)

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

						Nine Months Ended September 30
						2023															2022
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Financial instruments at fair value through profit or loss						$						(323,973			)						$						-
Financial assets at fair value through other comprehensive income									(54,832,622						)									(49,269,573						)
Financial assets at amortized cost									(115,641,029						)									(123,508,899						)
Property, plant and equipment									(779,656,605						)									(745,827,757						)
Intangible assets									(3,387,581						)									(5,471,086						)
Proceeds from disposal or redemption of:
Financial assets at fair value through other comprehensive income									28,804,766															41,221,410
Financial assets at amortized cost									89,166,171															20,620,129
Property, plant and equipment									391,764															801,029
Intangible assets									2,308															-
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income									117,897															300
Derecognition of hedging financial instruments									66,776															1,591,074
Interest received									41,015,135															9,440,363
Proceeds from government grants - property, plant and equipment									20,756,650															462,822
Proceeds from government grants - others									1,152															874
Other dividends received									387,837															260,534
Dividends received from investments accounted for using equity method									3,076,482															2,749,667
Increase in prepayments for leases									(50,173						)									-
Refundable deposits paid									(4,053,259						)									(1,904,318						)
Refundable deposits refunded									357,210															437,209
Net cash used in investing activities									(773,801,094						)									(848,396,222						)
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term loans									-															(111,959,992						)
Increase in hedging financial liabilities - bank loans									27,908,580															-
Proceeds from issuance of bonds									75,900,000															188,093,561
Repayment of bonds									(18,100,000						)									-
Proceeds from long-term bank loans									2,450,000															500,000
Repayment of long-term bank loans									(1,244,444						)									-
Payments for transaction costs attributable to the issuance of bonds									(78,448						)									(403,162						)
Treasury stock acquired									-															(871,566						)
Repayment of the principal portion of lease liabilities									(2,132,449						)									(1,767,753						)
Interest paid									(11,363,895						)									(6,498,170						)
Guarantee deposits received									230,116															199,190
Guarantee deposits refunded									(217,446						)									(43,314						)
Cash dividends									(213,925,639						)									(213,925,639						)
Increase in non-controlling interests									11,046,506															16,264,358
Net cash used in financing activities									(129,527,119						)									(130,412,487						)

(Continued)

- 7 -

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

						Nine Months Ended September 30
						2023															2022
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS						$	25,182,665														$	86,114,017
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS									(31,007,548						)									231,022,592
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD									1,342,814,083															1,064,990,192
CASH AND CASH EQUIVALENTS, END OF PERIOD						$	1,311,806,535														$	1,296,012,784

(Concluded)

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

- 8 -

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1.    GENERAL

Taiwan Semiconductor Manufacturing Company Limited (TSMC), a Republic of China (R.O.C.) corporation, was incorporated on February 21, 1987. TSMC is a dedicated foundry in the semiconductor industry which engages mainly in the manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks.

On September 5, 1994, TSMC’s shares were listed on the Taiwan Stock Exchange (TWSE). On October 8, 1997, TSMC listed some of its shares of stock on the New York Stock Exchange (NYSE) in the form 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 issue by the Board of Directors on November 14, 2023.

3.    APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

a.    Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

Except for the following, the initial application of the amendments to the IFRSs 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”):

Amendments to IAS 12 “International Tax Reform - Pillar Two Model Rules”

The amendments introduce a temporary exception to the requirements in IAS 12 by stipulating that the Company should neither recognize nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. The amendments also require the Company to disclose that it has applied the exception and separately disclose its current tax expense (income) related to Pillar Two income taxes. In addition, for periods in which Pillar Two legislation is enacted or substantively enacted but not yet in effect, the Company should disclose qualitative and quantitative information that helps users of financial statements understand the Company’s exposure to Pillar Two income taxes. The requirement that the Company applies the exception and the requirement to disclose that fact is applied immediately upon issuance of the amendments in May 2023. The remaining disclosure requirements are applied for annual reporting periods beginning on or after January 1, 2023, but not for any interim period ending on or before December 31, 2023.

- 9 -

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b.    The IFRSs issued by International Accounting Standards Board (IASB) and endorsed by the FSC with effective date starting 2024

New, Amended and Revised Standards and Interpretations						Effective Date Issued by IASB
Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” and “Non-current Liabilities with Covenants”						January 1, 2024

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

New, Amended and Revised Standards and Interpretations						Effective Date Issued by IASB
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”						To be determined by IASB

As of the date the accompanying consolidated financial statements were issued, the Company continues in evaluating the impact 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, 2022.

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 IFRSs endorsed and issued into effect by the FSC (collectively, the “Taiwan-IFRSs”).

Basis of Consolidation

The basis of preparation and the basis for the consolidated financial statements

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, 2022.

- 10 -

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The subsidiaries in the consolidated financial statements

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

																		Establishment						Percentage of Ownership
Name of Investor						Name of Investee						Main Businesses and Products						and Operating Location						September 30, 2023						December 31, 2022						September 30, 2022						Note
TSMC						TSMC North America						Sales and marketing of integrated circuits and other semiconductor devices						San Jose, California, U.S.A.						100%						100%						100%						-
						TSMC Europe B.V. (TSMC Europe)						Customer service and supporting activities						Amsterdam, the Netherlands						100%						100%						100%						a)
						TSMC Japan Limited (TSMC Japan)						Customer service and supporting activities						Yokohama, Japan						100%						100%						100%						a)
						TSMC Design Technology Japan, Inc. (TSMC JDC)						Engineering support activities						Yokohama, Japan						100%						100%						100%						a)
						TSMC Japan 3DIC R&D Center, Inc. (TSMC 3DIC)						Engineering support activities						Yokohama, Japan						100%						100%						100%						a)
						TSMC Korea Limited (TSMC Korea)						Customer service and supporting activities						Seoul, Korea						100%						100%						100%						a)
						TSMC Partners, Ltd. (TSMC Partners)						Investing in companies involved in the semiconductor design and manufacturing, and other investment activities						Tortola, British Virgin Islands						100%						100%						100%						-
						TSMC Global, Ltd. (TSMC Global)						Investment activities						Tortola, British Virgin Islands						100%						100%						100%						-
						TSMC China Company Limited (TSMC China)						Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices						Shanghai, China						100%						100%						100%						-
						TSMC Nanjing Company Limited (TSMC Nanjing)						Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices						Nanjing, China						100%						100%						100%						-
						VisEra Technologies Company Ltd. (VisEra Tech)						Research, design, development, manufacturing, sales, packaging and test of color filter						Hsin-Chu, Taiwan						68%						68%						68%						-
						TSMC Arizona Corporation (TSMC Arizona)						Manufacturing, sales and testing of integrated circuits and other semiconductor devices						Phoenix, Arizona, U.S.A.						100%						100%						100%						b)
						Japan Advanced Semiconductor Manufacturing, Inc. (JASM)						Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices						Kumamoto, Japan						71%						71%						71%						a), c)
						European Semiconductor Manufacturing Company GmbH (ESMC)						Manufacturing, sales and testing of integrated circuits and other semiconductor devices						Dresden, Germany						100%						-						-						a), d)
						VentureTech Alliance Fund II, L.P. (VTAF II)						Investing in technology start-up companies						Cayman Islands						98%						98%						98%						a)
						VentureTech Alliance Fund III, L.P. (VTAF III)						Investing in technology start-up companies						Cayman Islands						98%						98%						98%						a)
						Emerging Fund L.P. (Emerging Fund)						Investing in technology start-up companies						Cayman Islands						99.9%						99.9%						99.9%						a)
TSMC Partners						TSMC Development, Inc. (TSMC Development)						Investing in companies involved in semiconductor manufacturing						Delaware, U.S.A.						100%						100%						100%						-
						TSMC Technology, Inc. (TSMC Technology)						Engineering support activities						Delaware, U.S.A.						100%						100%						100%						a)
						TSMC Design Technology Canada Inc. (TSMC Canada)						Engineering support activities						Ontario, Canada						100%						100%						100%						a)
VTAF III						Growth Fund Limited (Growth Fund)						Investing in technology start-up companies						Cayman Islands						100%						100%						100%						a)
TSMC Development						WaferTech, LLC (WaferTech)						Manufacturing, sales and testing of integrated circuits and other semiconductor devices						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:    Under the terms of the development agreement entered into between TSMC Arizona and the City of Phoenix, the City of Phoenix commits approximately US$205 million toward various public infrastructure projects in the area of the proposed manufacturing facility, conditioned on TSMC Arizona’s achieving a minimum project scale with defined spending and job-creation thresholds.

Note c:    TSMC’s shareholding and the proportion of voting rights in JASM are 71% and 81%, respectively.

Note d:    ESMC is established in June 2023.

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.

Hedge Accounting

Hedges of net investments in foreign operations

Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gains or losses on the hedging instrument relating to the effective portion of the hedge are recognized in other

- 11 -

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comprehensive income and accumulated under the heading of foreign currency translation reserve. The gains or losses relating to the ineffective portion are recognized immediately in profit or loss.

The gains and losses on the hedging instrument relating to the effective portion of the hedge, which were accumulated in the foreign currency translation reserve, are reclassified to profit or loss on the disposal or partial disposal of a foreign operation.

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, 2022.

6.    CASH AND CASH EQUIVALENTS

						September 30, 2023															December 31, 2022															September 30, 2022
Cash and deposits in banks						$	1,297,689,297														$	1,327,884,602														$	1,277,760,695
Commercial paper									9,408,778															9,566,430															16,458,450
Money market funds									3,336,162															1,406,792															-
Repurchase agreements									1,229,906															1,133,310															-
Government bonds/Agency bonds									142,392															2,451,570															1,793,639
Corporate bonds									-															371,379															-
						$	1,311,806,535														$	1,342,814,083														$	1,296,012,784

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

						September 30, 2023															December 31, 2022															September 30, 2022
Financial assets
Mandatorily measured at FVTPL
Convertible bonds						$	231,022														$	122,852														$						-
Forward exchange contracts									147,504															947,546															4,705,434
Mutual funds									111,637															-															-
						$	490,163														$	1,070,398														$	4,705,434

(Continued)

- 12 -

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						September 30, 2023															December 31, 2022															September 30, 2022
Current						$	378,526														$	1,070,398														$	4,705,434
Noncurrent									111,637															-															-
						$	490,163														$	1,070,398														$	4,705,434
Financial liabilities
Held for trading
Forward exchange contracts						$	132,768														$	116,215														$	611,010

(Concluded)

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)

September 30, 2023

Sell NT$

October 2023

NT$

10,026,983

Sell US$

October 2023 to November 2023

US$

173,000

December 31, 2022

Sell NT$

January 2023 to March 2023

NT$

79,610,590

Sell US$

January 2023 to March 2023

US$

752,486

Sell RMB

January 2023 to March 2023

RMB

1,448,371

September 30, 2022

Sell NT$

October 2022 to November 2022

NT$

104,780,845

Sell US$

October 2022 to December 2022

US$

1,871,955

Sell RMB

October 2022 to November 2022

RMB

1,481,748

8.    FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

						September 30, 2023															December 31, 2022															September 30, 2022
Investments in debt instruments at FVTOCI
Corporate bonds						$	80,389,109														$	66,116,166														$	66,420,737
Agency mortgage-backed securities									36,337,585															28,367,926															29,680,882
Government bonds/Agency bonds									24,061,844															18,961,888															20,259,681
Asset-backed securities									10,419,593															9,274,697															9,580,806
									151,208,131															122,720,677															125,942,106

(Continued)

- 13 -

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						September 30, 2023															December 31, 2022															September 30, 2022
Investments in equity instruments at FVTOCI
Non-publicly traded equity investments						$	7,933,799														$	6,159,200														$	6,784,978
Publicly traded stocks									3,630,259															277,866															267,316
									11,564,058															6,437,066															7,052,294
						$	162,772,189														$	129,157,743														$	132,994,400
Current						$	154,838,390														$	122,998,543														$	126,209,422
Noncurrent									7,933,799															6,159,200															6,784,978
						$	162,772,189														$	129,157,743														$	132,994,400

(Concluded)

These investments in equity instruments are held for medium to long-term purposes and therefore are accounted for as FVTOCI. For dividends recognized from these investments, please refer to consolidated statements of cash flows. All of the dividends are mainly from investments held at the end of the reporting period.

For the nine months ended September 30, 2023 and 2022, as the Company adjusted its investment portfolio, equity investments designated at FVTOCI were divested for NT$189,390 thousand and NT$195,301 thousand, respectively. The related other equity-unrealized gain/loss on financial assets at FVTOCI of NT$118,948 thousand and NT$98,209 thousand were transferred to increase retained earnings, respectively.

As of September 30, 2023 and 2022, the cumulative loss allowance for expected credit loss of NT$49,497 thousand and NT$38,718 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

						September 30, 2023															December 31, 2022															September 30, 2022
Corporate bonds						$	126,268,615														$	81,041,056														$	70,840,021
Commercial paper									22,166,254															48,742,817															43,404,235
Government bonds/Agency bonds									15,297,477															-															-
Less: Allowance for impairment loss									(91,606						)									(56,439						)									(39,204						)
						$	163,640,740														$	129,727,434														$	114,205,052
Current						$	84,261,089														$	94,600,219														$	71,857,468
Noncurrent									79,379,651															35,127,215															42,347,584
						$	163,640,740														$	129,727,434														$	114,205,052

Refer to Note 30 for information relating to credit risk management and expected credit loss for financial assets at amortized cost.

- 14 -

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10.    HEDGING FINANCIAL INSTRUMENTS

						September 30, 2023															December 31, 2022															September 30, 2022
Financial assets - current
Fair value hedges
Interest rate futures contracts						$	37,451														$	2,329														$	88,431
Financial liabilities - current
Fair value hedges
Interest rate futures contracts						$						-									$	813														$						-
Hedges of net investments in foreign operations
Bank loans									26,879,550															-															-
						$	26,879,550														$	813														$						-

Fair value hedge

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 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 risk.

September 30, 2023

Hedging Instruments

Contract Amount (US$ in Thousands)

Maturity

Interest rate futures contracts - US Treasury futures

US$    54,400

December 2023

Hedged Items

Asset Carrying Amount

Accumulated Amount of Fair Value Hedge Adjustments

Financial assets at FVTOCI

$    3,615,318

$    (37,451)

December 31, 2022

Hedging Instruments

Contract Amount (US$ in Thousands)

Maturity

Interest rate futures contracts - US Treasury futures

US$    74,300

March 2023

- 15 -

---

Hedged Items

Asset Carrying Amount

Accumulated Amount of Fair Value Hedge Adjustments

Financial assets at FVTOCI

$    4,008,179

$    (1,516)

September 30, 2022

Hedging Instruments

Contract Amount (US$ in Thousands)

Maturity

Interest rate futures contracts - US Treasury futures

US$    78,900

December 2022

Hedged Items

Asset Carrying Amount

Accumulated Amount of Fair Value Hedge Adjustments

Financial assets at FVTOCI

$    4,148,778

$    (88,431)

The effect for the nine months ended September 30, 2023 and 2022 is detailed below:

						Change in Value Used for Calculating Hedge Ineffectiveness
						Nine Months Ended September 30
Hedging Instruments/Hedged Items						2023															2022
Hedging Instruments
Interest rate futures contracts - US Treasury futures						$	101,369														$	276,460
Hedged Items
Financial assets at FVTOCI									(101,369						)									(276,460						)
						$						-									$						-

Cash flow hedge

The Company entered into forward contracts to partially hedge foreign exchange rate risks or interest rate risks associated with certain highly probable forecast transactions (capital expenditures or issuance of debts). The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%. The forward contracts have maturities of 12 months or less.

On the basis of economic relationships, the Company expects that the value of forward contracts and the value of hedged transactions will change in opposite directions in response to movements in foreign exchange rates or interest rates.

The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of the counterparty’s own credit risk on the fair value of forward contracts. No other sources of ineffectiveness have emerged from these hedging relationships during the hedging period. For the nine months ended September 30, 2023 and 2022, refer to Note 19 (d) for gain or loss arising from changes in the fair value of hedging instruments, the amount transferred to initial carrying amount of hedged items and the amount reclassified to finance costs of hedged items.

- 16 -

---

The effect for the nine months ended September 30, 2023 and 2022 is detailed below:

						Change in Value Used for Calculating Hedge Ineffectiveness
						Nine Months Ended September 30
Hedging Instruments/Hedged Items						2023															2022
Hedging Instruments
Forward exchange contracts (capital expenditures)						$	39,898														$						-
Forward interest rate contracts (issuance of debts)						$						-									$	1,378,928
Hedged Items
Forecast transaction (capital expenditures)						$						(39,898			)						$						-
Forecast transaction (issuance of debts)						$						-									$						(1,378,928			)

Hedges of net investments in foreign operations

TSMC has designated the foreign currency bank loans 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 foreign currency bank loans and the net investment in foreign operations. No other sources of ineffectiveness have emerged from these hedging relationships during the hedging period. For the nine months ended September 30, 2023, refer to Note 19 (d) for gain or loss arising from changes in the fair value of hedging instruments.

The following tables summarize the information relating to the hedges of net investments in foreign operations.

September 30, 2023

Hedging Instruments

Contract Amount (In Thousands)

Annual Interest Rate

Maturity

Balance in Other Equity (Continuing Hedges)

Bank loans

JPY    124,500,000

0%-0.06%

Due by February 2024

$1,029,030

The effect for the nine months ended September 30, 2023 is detailed below:

												Change in Value Used for Calculating Hedge Ineffectiveness
Hedging Instruments/Hedged Items												Nine Months Ended September 30, 2023
Hedging Instruments
Bank loans												$	1,029,030
Hedged Items
Net investments in foreign operations												$						(1,029,030			)

- 17 -

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11.    NOTES AND ACCOUNTS RECEIVABLE, NET

						September 30, 2023															December 31, 2022															September 30, 2022
At amortized cost
Notes and accounts receivable						$	218,688,626														$	222,761,927														$	254,776,451
Less: Loss allowance									(752,380						)									(331,646						)									(375,054						)
									217,936,246															222,430,281															254,401,397
At FVTOCI									4,531,407															7,325,606															6,045,737
						$	222,467,653														$	229,755,887														$	260,447,134

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 during the reporting period is due 30 days from the invoice date or 15-30 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.

Aging analysis of notes and accounts receivable

						September 30, 2023															December 31, 2022															September 30, 2022
Not past due						$	207,436,935														$	205,053,142														$	252,863,359
Past due
Past due within 30 days									15,751,218															24,516,277															7,958,446
Past due over 31 days									31,880															518,114															383
Less: Loss allowance									(752,380						)									(331,646						)									(375,054						)
						$	222,467,653														$	229,755,887														$	260,447,134

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

Movements of the loss allowance for accounts receivable

						Nine Months Ended September 30
						2023															2022
Balance, beginning of period						$	331,646														$	347,020
Provision									420,698															27,935
Effect of exchange rate changes									36															99
Balance, end of period						$	752,380														$	375,054

For the nine months ended September 30, 2023 and 2022, the changes in loss allowance were mainly due to the variations in the balance of accounts receivable of different risk levels.

- 18 -

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12.    INVENTORIES

						September 30, 2023															December 31, 2022															September 30, 2022
Finished goods						$	35,048,480														$	54,818,402														$	38,572,060
Work in process									171,354,152															125,661,912															144,337,075
Raw materials									35,076,818															20,389,115															14,998,114
Supplies and spare parts									20,610,622															20,279,719															20,428,625
						$	262,090,072														$	221,149,148														$	218,335,874

Write-down of inventories to net realizable value and reversal of write-down of inventories resulting from the increase in net realizable value were included in the cost of revenue. The amounts are illustrated below:

						Three Months Ended September 30																								Nine Months Ended September 30
						2023												2022												2023												2022
Net inventory losses (reversal of write-down of inventories)						$			(1,090,783			)						$	1,710,080											$	1,830,238											$	2,967,546

13.    INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Associates consisted of the following:

												Place of						Carrying Amount																																													% of Ownership and Voting Rights Held by the Company
Name of Associate						Principal Activities						Incorporation and Operation						September 30, 2023															December 31, 2022															September 30, 2022															September 30, 2023						December 31, 2022						September 30, 2022
Vanguard International Semiconductor Corporation (VIS)						Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks						Hsinchu, Taiwan						$	13,103,470														$	13,492,653														$	12,763,668														28%						28%						28%
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)						Manufacturing and sales of integrated circuits and other semiconductor devices						Singapore									9,985,558															8,934,731															8,845,688												39%						39%						39%
Xintec Inc. (Xintec)						Wafer level chip size packaging and wafer level post passivation interconnection service						Taoyuan, Taiwan									3,580,425															3,528,417															3,340,497												41%						41%						41%
Global Unichip Corporation (GUC)						Researching, developing, manufacturing, testing and marketing of integrated circuits						Hsinchu, Taiwan									2,238,136															1,666,651															1,693,668												35%						35%						35%
Mutual-Pak Technology Co., Ltd. (Mutual-Pak)						Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID						New Taipei, Taiwan									13,969															19,053															19,815												28%						28%						28%
																		$	28,921,558														$	27,641,505														$	26,663,336

The market prices of the associates’ ownership held by the Company in publicly traded stocks calculated by 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						September 30, 2023												December 31, 2022												September 30, 2022
GUC						$	63,728,928											$	29,926,918											$	27,499,149
VIS						$	31,567,198											$	35,977,321											$	30,174,527
Xintec						$	13,075,626											$	10,716,449											$	10,683,065

- 19 -

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14.    PROPERTY, PLANT AND EQUIPMENT

						September 30, 2023															December 31, 2022															September 30, 2022
Assets used by the Company						$	3,132,660,998														$	2,693,815,688														$	2,411,465,486
Assets subject to operating leases									3,369															21,282															24,765
						$	3,132,664,367														$	2,693,836,970														$	2,411,490,251

Assets used by the Company

						Land and Land Improvements															Buildings															Machinery and Equipment															Office Equipment															Equipment under Installation and Construction in Progress															Total
Cost
Balance at January 1, 2023						$	7,661,817														$	637,046,949														$	4,295,942,530														$	85,028,040														$	1,336,842,608														$	6,362,521,944
Additions (deductions)									-															165,720,355															938,930,779															14,788,418															(322,659,640						)									796,779,912
Disposals or retirements									-															(484,812						)									(19,043,355						)									(529,565						)									-															(20,057,732						)
Transfers from right-of-use assets									-															-															4,444															-															-															4,444
Transfers from assets subject to operating leases									-															-															80,370															-															-															80,370
Transfers to assets subject to operating leases									-															-															(14,592						)									-															-															(14,592						)
Effect of exchange rate changes									135,207															365,755															2,727,400															107,811															14,648,846															17,985,019
Balance at September 30, 2023						$	7,797,024														$	802,648,247														$	5,218,627,576														$	99,394,704														$	1,028,831,814														$	7,157,299,365
Accumulated depreciation   and impairment
Balance at January 1, 2023						$	556,161														$	342,938,359														$	3,264,880,880														$	59,540,116														$	790,740														$	3,668,706,256
Additions									979															32,551,748															331,772,027															7,730,495															-															372,055,249
Disposals or retirements									-															(482,318						)									(18,272,627						)									(528,515						)									-															(19,283,460						)
Transfers from right-of-use assets									-															-															1,851															-															-															1,851
Transfers from assets subject to operating leases									-															-															53,537															-															-															53,537
Transfers to assets subject to operating leases									-															-															(1,702						)									-															-															(1,702						)
Effect of exchange rate changes									28,436															383,964															2,598,645															95,591															-															3,106,636
Balance at September 30, 2023						$	585,576														$	375,391,753														$	3,581,032,611														$	66,837,687														$	790,740														$	4,024,638,367
Carrying amounts at January 1, 2023						$	7,105,656														$	294,108,590														$	1,031,061,650														$	25,487,924														$	1,336,051,868														$	2,693,815,688
Carrying amounts at September 30, 2023						$						7,211,448									$	427,256,494														$						1,637,594,965									$						32,557,017									$						1,028,041,074									$						3,132,660,998
Cost
Balance at January 1, 2022						$	6,488,230														$	576,597,777														$	3,984,749,236														$	76,154,170														$	593,155,733														$	5,237,145,146
Additions									702,377															44,034,103															270,334,176															6,208,437															426,656,999															747,936,092
Disposals or retirements									-															(83,302						)									(17,020,612						)									(890,753						)									-															(17,994,667						)
Transfers to assets subject to operating leases									-															-															(65,779						)									-															-															(65,779						)
Effect of exchange rate changes									445,035															2,002,705															9,896,845															366,624															8,982,282															21,693,491
Balance at September 30, 2022						$	7,635,642														$	622,551,283														$	4,247,893,866														$	81,838,478														$	1,028,795,014														$	5,988,714,283
Accumulated depreciation   and impairment
Balance at January 1, 2022						$	499,826														$	306,165,242														$	2,903,539,441														$	51,826,663														$						-									$	3,262,031,172
Additions									1,042															26,567,909															287,390,332															6,921,986															-															320,881,269
Disposals or retirements									-															(72,173						)									(16,176,281						)									(890,323						)									-															(17,138,777						)
Transfers to assets subject to operating leases									-															-															(40,266						)									-															-															(40,266						)
Impairment									-															-															-															-															790,740															790,740
Effect of exchange rate changes									73,997															1,514,039															8,843,768															292,855															-															10,724,659
Balance at September 30, 2022						$	574,865														$	334,175,017														$	3,183,556,994														$	58,151,181														$	790,740														$	3,577,248,797
Carrying amounts at January 1, 2022						$	5,988,404														$	270,432,535														$	1,081,209,795														$	24,327,507														$	593,155,733														$	1,975,113,974
Carrying amounts at September 30, 2022						$	7,060,777														$	288,376,266														$	1,064,336,872														$	23,687,297														$	1,028,004,274														$	2,411,465,486

- 20 -

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The significant part of the Company’s buildings includes main plants, mechanical and electrical power equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20 years, 10 years and 10 years, respectively.

In the first quarter of 2022, the Company recognized an impairment loss of NT$790,740 thousand for certain machinery and equipment that were assessed to have no future use, and the recoverable amount of the aforementioned assets were nil. Such impairment loss was recognized in other operating income and expenses.

Information about capitalized interest is set out in Note 22.

15.    LEASE ARRANGEMENTS

a.    Right-of-use assets

						September 30, 2023															December 31, 2022															September 30, 2022
Carrying amounts
Land						$	38,056,493														$	38,525,856														$	39,025,511
Buildings									3,163,900															3,356,700															3,290,126
Machinery and equipment									-															2,965															3,298
Office equipment									34,318															28,615															30,808
						$	41,254,711														$	41,914,136														$	42,349,743

						Nine Months Ended September 30
						2023												2022
Additions to right-of-use assets						$	2,006,983											$	12,187,065

						Three Months Ended September 30																														Nine Months Ended September 30
						2023															2022															2023															2022
Depreciation of right-of-use assets
Land						$	618,681														$	571,074														$	1,838,310														$	1,519,635
Buildings									256,734															247,566															738,607															697,566
Machinery and equipment									-															219															369															635
Office equipment									5,632															5,929															17,663															17,636
						$	881,047														$	824,788														$	2,594,949														$	2,235,472

b.    Lease liabilities

						September 30, 2023															December 31, 2022															September 30, 2022
Carrying amounts
Current portion (classified under accrued expenses and other current liabilities)						$	2,775,196														$	2,603,504														$	2,564,228
Noncurrent portion									29,415,325															29,764,097															30,182,353
						$	32,190,521														$	32,367,601														$	32,746,581

- 21 -

---

Ranges of discount rates for lease liabilities are as follows:

						September 30, 2023						December 31, 2022						September 30, 2022
Land						0.39%-2.30%						0.39%-2.30%						0.39%-1.89%
Buildings						0.47%-6.52%						0.39%-5.63%						0.39%-3.88%
Machinery and equipment						-						0.71%						0.71%
Office equipment						0.28%-7.13%						0.28%-4.71%						0.28%-3.88%

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 September 30																								Nine Months Ended September 30
						2023												2022												2023												2022
Expenses relating to short-term leases						$	155,708											$	1,181,261											$	1,170,143											$	3,499,639

						Nine Months Ended September 30
						2023												2022
Total cash outflow for leases						$	4,052,060											$	5,421,545

16.    INTANGIBLE ASSETS

						Goodwill															Technology License Fees															Software and System Design Costs															Patent and Others															Total
Cost
Balance at January 1, 2023						$	5,791,821														$	25,759,019														$	48,675,794														$	11,701,892														$	91,928,526
Additions									-															401,909															3,575,195															102,337															4,079,441
Disposals or retirements									-															-															(54,677						)									-															(54,677						)
Effect of exchange rate changes									212,914															2,863															7,445															27,499															250,721
Balance at September 30, 2023						$	6,004,735														$	26,163,791														$	52,203,757														$	11,831,728														$	96,204,011
Accumulated amortization and   impairment
Balance at January 1, 2023						$						-									$	17,696,437														$	38,838,394														$	9,394,540														$	65,929,371
Additions									-															2,105,832															3,923,467															859,025															6,888,324
Disposals or retirements									-															-															(54,677						)									-															(54,677						)
Effect of exchange rate changes									-															2,863															91															27,470															30,424
Balance at September 30, 2023						$						-									$	19,805,132														$	42,707,275														$	10,281,035														$	72,793,442
Carrying amounts at January 1, 2023						$	5,791,821														$	8,062,582														$	9,837,400														$	2,307,352														$	25,999,155
Carrying amounts at September 30, 2023						$	6,004,735														$	6,358,659														$	9,496,482														$	1,550,693														$	23,410,569

(Continued)

- 22 -

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						Goodwill															Technology License Fees															Software and System Design Costs															Patent and Others															Total
Cost
Balance at January 1, 2022						$	5,379,164														$	23,533,959														$	43,650,957														$	11,497,309														$	84,061,389
Additions									-															2,257,739															3,431,703															185,092															5,874,534
Disposals or retirements									-															-															(55,727						)									-															(55,727						)
Effect of exchange rate changes									555,641															3,329															18,700															2,723															580,393
Balance at September 30, 2022						$	5,934,805														$	25,795,027														$	47,045,633														$	11,685,124														$	90,460,589
Accumulated amortization and   impairment
Balance at January 1, 2022						$						-									$	14,912,293														$	34,121,578														$	8,205,821														$	57,239,692
Additions									-															2,076,582															3,583,345															890,230															6,550,157
Disposals or retirements									-															-															(55,727						)									-															(55,727						)
Effect of exchange rate changes									-															3,329															15,282															1,304															19,915
Balance at September 30, 2022						$						-									$	16,992,204														$	37,664,478														$	9,097,355														$	63,754,037
Carrying amounts at January 1, 2022						$	5,379,164														$	8,621,666														$	9,529,379														$	3,291,488														$	26,821,697
Carrying amounts at September 30, 2022						$	5,934,805														$	8,802,823														$	9,381,155														$	2,587,769														$	26,706,552

(Concluded)

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 8.7% in its test of impairment as of December 31, 2022 to reflect the relevant specific risk in the cash-generating unit.

17.    BONDS PAYABLE

						September 30, 2023															December 31, 2022															September 30, 2022
Domestic unsecured bonds						$	440,462,000														$	379,526,000														$	375,832,000
Overseas unsecured bonds									500,355,500															476,051,500															492,373,000
Less: Discounts on bonds payable									(3,090,167						)									(3,141,061						)									(3,318,529						)
Less: Current portion									(5,247,910						)									(18,100,000						)									(22,500,000						)
						$	932,479,423														$	834,336,439														$	842,386,471

The Company issued domestic unsecured bonds for the nine months ended September 30, 2023. The major terms are as follows:

Issuance

Tranche

Issuance Period

Total Amount

Coupon Rate

Repayment and Interest Payment

NT$ unsecured   bonds

112-1 (Green bond)

A

March 2023 to March 2028

$

12,200,000

1.54%

Bullet repayment; interest payable annually

B

March 2023 to March 2030

2,300,000

1.60%

The same as above

C

March 2023 to March 2033

4,800,000

1.78%

The same as above

(Continued)

- 23 -

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Issuance

Tranche

Issuance Period

Total Amount

Coupon Rate

Repayment and Interest Payment

112-2 (Green bond)

A

May 2023 to May 2028

$

13,100,000

1.60%

Bullet repayment; interest payable annually

B

May 2023 to May 2030

2,300,000

1.65%

The same as above

C

May 2023 to May 2033

5,300,000

1.82%

The same as above

112-3

A

June 2023 to June 2028

11,400,000

1.60%

The same as above

B

June 2023 to June 2030

2,600,000

1.65%

The same as above

C

June 2023 to June 2033

6,000,000

1.80%

The same as above

112-4

A

August 2023 to August 2028

7,300,000

1.60%

The same as above

B

August 2023 to August 2030

700,000

1.65%

The same as above

C

August 2023 to August 2033

7,900,000

1.76%

The same as above

(Concluded)

The Company issued domestic unsecured bonds during the period from October 1, 2023 to November 14, 2023. The major terms are as follows:

Issuance

Tranche

Issuance Period

Total Amount

Coupon Rate

Repayment and Interest Payment

NT$ unsecured   bonds

112-5

A

October 2023 to October 2028

$

4,300,000

1.62%

Bullet repayment; interest payable annually

B

October 2023 to October 2033

5,500,000

1.76%

The same as above

The major terms of overseas unsecured bonds are as follows:

Issuance Period

Total Amount (US$ in Thousands)

Coupon Rate

Repayment and Interest Payment

September 2020 to September 2025

US$

1,000,000

0.75%

Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually

September 2020 to September 2027

750,000

1.00%

The same as above

September 2020 to September 2030

1,250,000

1.375%

The same as above

(Continued)

- 24 -

---

Issuance Period						Total Amount (US$ in Thousands)															Coupon Rate						Repayment and Interest Payment
April 2021 to April 2026						US$						1,100,000									1.25%						Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually
April 2021 to April 2028									900,000												1.75%						The same as above
April 2021 to April 2031									1,500,000												2.25%						The same as above
October 2021 to October 2026									1,250,000												1.75%						The same as above
October 2021 to October 2031									1,250,000												2.50%						The same as above
October 2021 to October 2041									1,000,000												3.125%						The same as above
October 2021 to October 2051									1,000,000												3.25%						The same as above
April 2022 to April 2027									1,000,000												3.875%						The same as above
April 2022 to April 2029									500,000												4.125%						The same as above
April 2022 to April 2032									1,000,000												4.25%						The same as above
April 2022 to April 2052									1,000,000												4.50%						The same as above
July 2022 to July 2027									400,000												4.375%						The same as above
July 2022 to July 2032									600,000												4.625%						The same as above

(Concluded)

18.    LONG-TERM BANK LOANS

						September 30, 2023															December 31, 2022															September 30, 2022
Unsecured loans						$	7,218,889														$	6,013,333														$	4,010,000
Less: Discounts on government grants									(33,617						)									(39,397						)									(28,155						)
Less: Current portion									(2,172,222						)									(1,213,889						)									(926,667						)
						$	5,013,050														$	4,760,047														$	3,055,178
Loan content
Annual interest rate									1.15%-1.35%															1.03%-1.23%															0.40%-1.10%
Maturity date									Due by December 2027															Due by December 2027																		Due by May 2027

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

- 25 -

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19.    EQUITY

a.    Capital stock

						September 30, 2023												December 31, 2022												September 30, 2022
Authorized shares (in thousands)									28,050,000												28,050,000												28,050,000
Authorized capital						$	280,500,000											$	280,500,000											$	280,500,000
Issued and paid shares (in thousands)									25,932,071												25,930,380												25,930,380
Issued capital						$	259,320,710											$	259,303,805											$	259,303,805

A holder of issued common shares with par value of NT$10 is entitled to vote and to receive dividends.

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

On March 1, 2023 and March 1, 2022, the Company issued employee restricted stock awards (RSAs) for its employees in a total of 2,110 and 1,387 thousand shares, respectively, with a par value of NT$10. The aforementioned issuance of new shares was approved by the relevant authority and the registration has been completed.

During the first quarter of 2023, TSMC reclaimed 419 thousand employee restricted shares that were unvested. On May 9, 2023, 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.

On May 10, 2022, TSMC’s Board of Directors resolved to cancel 1,387 thousand treasury shares. Refer to Note 19 (e) for information.

As of September 30, 2023, TSMC’s total issued and outstanding ADSs were 1,063,213 thousand units, representing 5,316,067 thousand common shares.

b.    Capital surplus

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

						September 30, 2023															December 31, 2022															September 30, 2022
May be used to offset a deficit, distributed as   cash dividends, or transferred to share   capital
Additional paid-in capital						$	24,406,854														$	24,183,645														$	24,183,645
From merger									22,803,291															22,803,291															22,803,291
From convertible bonds									8,892,371															8,892,371															8,892,371
From difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal									8,406,282															8,406,282															8,406,282
Donations - donated by shareholders									11,275															11,275															11,275

(Continued)

- 26 -

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						September 30, 2023															December 31, 2022															September 30, 2022
May only be used to offset a deficit
From share of changes in equities of subsidiaries						$	4,210,955														$	4,229,892														$	4,231,119
From share of changes in equities of associates									310,627															311,863															309,904
Donations - unclaimed dividend									53,680															53,680															40,475
May not be used for any purpose
Employee restricted shares									783,883															438,029															438,029
						$	69,879,218														$	69,330,328														$	69,316,391

(Concluded)

If such capital surplus is distributed as transferred to share capital, it is limited to a certain percentage of the Company’s paid-in capital each year.

c.    Retained earnings and dividend policy

TSMC’s Articles of Incorporation provide that, earnings distribution may be made on a quarterly basis after the close of each quarter. Distribution of earnings by way of cash dividends should be approved by TSMC’s Board of Directors and reported to TSMC’s shareholders in its meeting. When allocating earnings, TSMC shall first estimate and reserve the taxes to be paid, offset its losses, set aside a legal capital reserve at 10% of the remaining earnings (until the accumulated legal capital reserve equals TSMC’s paid-in capital), then set aside a special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge. Any balance left over shall be allocated according to relevant laws and TSMC’s Articles of Incorporation.

TSMC’s Articles of Incorporation also provide that profits of TSMC may be distributed by way of cash dividend and/or stock dividend. However, distribution of earnings shall be made preferably by way 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.

- 27 -

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The appropriations of 2023, 2022 and 2021 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:

												Third Quarter												Second Quarter												First Quarter
Resolution Date of TSMC’s												of 2023												of 2023												of 2023
Board of Directors in its												November 14,												August 8,												May 9,
meeting												2023												2023												2023
Special capital reserve												$			(17,228,363			)						$			(6,365,562			)						$	3,273,452
Cash dividends to shareholders												$			90,762,248									$	77,796,213											$	77,796,213
Cash dividends per share (NT$)												$			3.50									$	3.00											$	3.00

						Fourth Quarter												Third Quarter												Second Quarter												First Quarter
Resolution Date of TSMC’s						of 2022												of 2022												of 2022												of 2022
Board of Directors in its						February 14,												November 8,												August 9,												May 10,
meeting						2023												2022												2022												2022
Special capital reserve						$	17,166,163											$			(31,910,353			)						$			(12,002,798			)						$			(15,541,054			)
Cash dividends to shareholders						$	71,308,546											$	71,308,547											$	71,308,546											$	71,308,546
Cash dividends per share (NT$)						$	2.75											$	2.75											$	2.75											$	2.75

						Fourth Quarter												Third Quarter												Second Quarter												First Quarter
Resolution Date of TSMC’s						of 2021												of 2021												of 2021												of 2021
Board of Directors in its						February 15,												November 9,												August 10,												June 9,
meeting						2022												2021												2021												2021
Special capital reserve						$	3,304,303											$	710,169											$	10,201,220											$			(6,287,050			)
Cash dividends to shareholders						$	71,308,546											$	71,308,547											$	71,308,546											$	71,308,546
Cash dividends per share (NT$)						$	2.75											$	2.75											$	2.75											$	2.75

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:

						Nine Months Ended September 30, 2023
						Foreign Currency Translation Reserve															Unrealized Gain (Loss) on Financial Assets at FVTOCI															Gain (Loss) on Hedging Instruments															Unearned Stock-Based Employee Compensation															Total
Balance, beginning of period						$						(11,743,301			)						$						(10,056,353			)						$	1,479,181														$						(185,153			)						$						(20,505,626			)
Exchange differences arising on translation of foreign operations									28,675,626															-															-															-															28,675,626
Gain (Loss) on hedging instruments designated as hedges of net investments in foreign operations									1,029,030															-															-															-															1,029,030
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments									-															987,066															-															-															987,066
Debt instruments									-															(1,837,009						)									-															-															(1,837,009						)
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal									-															(118,948						)									-															-															(118,948						)
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal									-															372,631															-															-															372,631
Loss allowance adjustments from debt instruments									-															9,353															-															-															9,353

(Continued)

- 28 -

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						Nine Months Ended September 30, 2023
						Foreign Currency Translation Reserve															Unrealized Gain (Loss) on Financial Assets at FVTOCI															Gain (Loss) on Hedging Instruments															Unearned Stock-Based Employee Compensation															Total
Gain (loss) arising on changes in the fair value of hedging instruments						$						-									$						-									$						(15,429			)						$						-									$						(15,429			)
Transferred to initial carrying amount of hedged items									-															-															(44,631						)									-															(44,631						)
Issuance of shares									-															-															-															(585,968						)									(585,968						)
Share-based payment expenses recognized									-															-															-															350,386															350,386
Share of other comprehensive income (loss) of associates									237,518															33,858															29,098															-															300,474
Income tax effect									-															(25						)									-															-															(25						)
Balance, end of period						$	18,198,873														$						(10,609,427			)						$	1,448,219														$						(420,735			)						$	8,616,930

(Concluded)

						Nine Months Ended September 30, 2022
						Foreign Currency Translation Reserve															Unrealized Gain (Loss) on Financial Assets at FVTOCI															Gain (Loss) on Hedging Instruments															Unearned Stock-Based Employee Compensation															Total
Balance, beginning of period						$						(63,303,361			)						$	574,310														$	120,536														$						-									$						(62,608,515			)
Exchange differences arising on translation of foreign operations									68,767,824															-															-															-															68,767,824
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments									-															69,040															-															-															69,040
Debt instruments									-															(11,609,864						)									-															-															(11,609,864						)
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal									-															(98,209						)									-															-															(98,209						)
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal									-															346,125															-															-															346,125
Loss allowance adjustments from debt instruments									-															553															-															-															553
Gain (loss) arising on changes in the fair value of hedging instruments									-															-															1,347,573															-															1,347,573
Transferred to initial carrying amount of hedged items									-															-															(43,027						)									-															(43,027						)
Issuance of shares									-															-															-															(451,899						)									(451,899						)
Share-based payment expenses recognized									-															-															-															186,722															186,722
Share of other comprehensive income (loss) of associates									591,374															(13,234						)									89,752															-															667,892
Income tax effect									-															262															6,036															-															6,298
Balance, end of period						$	6,055,837														$						(10,731,017			)						$	1,520,870														$						(265,177			)						$						(3,419,487			)

The aforementioned other equity includes the changes in other equities of TSMC and TSMC’s share of its subsidiaries and associates.

e.    Treasury stock

For TSMC’s shareholders’ interests, TSMC’s Board of Directors approved a share buyback program on February 15, 2022 to repurchase 1,387 thousand shares. TSMC has completed the aforementioned share buyback program during the first quarter of 2022. On May 10, 2022, TSMC’s Board of Directors resolved to cancel the 1,387 thousand shares. Subsequently, TSMC completed the registration for share cancellation.

- 29 -

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20.    NET REVENUE

a.Disaggregation of revenue from contracts with customers

						Three Months Ended September 30																														Nine Months Ended September 30
Product						2023															2022															2023															2022
Wafer						$	473,037,347														$	540,209,881														$	1,342,457,631														$	1,454,627,869
Others									73,695,411															72,932,862															193,749,354															183,731,555
						$	546,732,758														$						613,142,743									$	1,536,206,985														$	1,638,359,424

						Three Months Ended September 30																														Nine Months Ended September 30
Geography						2023															2022															2023															2022
Taiwan						$	36,868,992														$	51,983,021														$	104,596,734														$	173,512,993
United States									360,671,111															432,369,098															969,078,250															1,072,532,079
China									67,735,985															48,832,450															200,699,087															171,635,229
Japan									31,507,219															29,592,683															100,697,479															81,396,101
Europe, the Middle East and Africa									24,986,738															31,192,872															92,761,775															87,590,071
Others									24,962,713															19,172,619															68,373,660															51,692,951
						$	546,732,758														$	613,142,743														$	1,536,206,985														$	1,638,359,424

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

						Three Months Ended September 30																														Nine Months Ended September 30
Platform						2023															2022															2023															2022
High Performance Computing						$	227,816,587														$	238,237,286														$	667,707,961														$	669,423,118
Smartphone									212,001,177															251,069,572															545,740,324															648,625,225
Internet of Things									47,409,811															59,410,567															128,299,154															143,104,893
Automotive									28,338,188															31,203,686															101,636,345															81,976,301
Digital Consumer Electronics									13,570,337															14,900,562															38,157,300															44,625,094
Others									17,596,658															18,321,070															54,665,901															50,604,793
						$	546,732,758														$	613,142,743														$	1,536,206,985														$	1,638,359,424

						Three Months Ended September 30																														Nine Months Ended September 30
Resolution						2023															2022															2023															2022
3-nanometer						$	28,994,752														$						-									$	29,478,462														$						-
5-nanometer									173,185,785															148,812,933															440,305,826															335,834,446
7-nanometer									78,277,122															142,152,179															264,307,983															417,396,526
10-nanometer									3,500															4,480															20,401															17,837
16-nanometer									44,470,242															66,299,632															146,737,652															191,645,300
20-nanometer									2,788,643															2,124,614															8,710,398															6,409,003
28-nanometer									47,211,672															52,861,617															146,858,837															149,841,720
40/45-nanometer									29,417,131															37,855,129															91,585,761															108,326,372
65-nanometer									26,323,837															25,338,814															81,748,326															69,063,607
90-nanometer									5,044,479															11,311,235															20,590,275															31,089,564
0.11/0.13 micron									13,072,664															16,732,222															33,590,386															42,810,676
0.15/0.18 micron									20,137,375															29,754,752															64,474,177															82,486,441
0.25 micron and above									4,110,145															6,962,274															14,049,147															19,706,377
Wafer revenue						$	473,037,347														$	540,209,881														$	1,342,457,631														$	1,454,627,869

- 30 -

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b.    Contract balances

						September 30, 2023												December 31, 2022												September 30, 2022												January 1, 2022
Contract liabilities (classified under accrued expenses and other current liabilities)						$	50,852,364											$	70,806,617											$	56,941,335											$	39,762,588

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$5,620,410 thousand and NT$1,502,974 thousand for the three months ended September 30, 2023 and 2022, respectively; and NT$69,030,566 thousand and NT$37,198,089 thousand for the nine months ended September 30, 2023 and 2022, respectively.

c.    Temporary receipts from customers

						September 30, 2023															December 31, 2022															September 30, 2022
Current portion (classified under accrued expenses and other current liabilities)						$	152,751,076														$	107,723,580														$	97,843,204
Noncurrent portion (classified under other noncurrent liabilities)									148,913,776															168,399,207															190,225,981
						$	301,664,852														$	276,122,787														$	288,069,185

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 September 30																														Nine Months Ended September 30
						2023															2022															2023															2022
Interest income
Cash and cash equivalents						$	12,607,398														$	5,294,717														$	35,717,276														$	8,960,401
Financial assets at amortized cost									1,844,769															650,010															4,257,022															1,061,539
Financial assets at FVTOCI									1,143,107															670,317															2,910,815															1,812,928
						$	15,595,274														$	6,615,044														$	42,885,113														$	11,834,868

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22.    FINANCE COSTS

						Three Months Ended September 30																														Nine Months Ended September 30
						2023															2022															2023															2022
Interest expense
Corporate bonds						$	4,594,570														$	4,051,243														$	13,177,497														$	9,781,682
Lease liabilities									96,148															85,705															286,653															183,008
Bank loans									24,689															6,882															71,914															21,527
Others									371															328															1,486															503
Less: Capitalized interest under property, plant and equipment									(1,603,856						)									(774,140						)									(4,456,787						)									(1,571,705						)
						$	3,111,922														$	3,370,018														$	9,080,763														$	8,415,015

Information about capitalized interest is as follows:

						Three Months Ended September 30												Nine Months Ended September 30
						2023						2022						2023						2022
Capitalization rate						1.20%-3.36%						0.84%-3.36%						1.08%-3.36%						0.56%-3.36%

23.    OTHER GAINS AND LOSSES, NET

						Three Months Ended September 30																														Nine Months Ended September 30
						2023															2022															2023															2022
Loss on disposal of financial assets, net
Investments in debt instruments at FVTOCI						$						(115,078			)						$						(100,974			)						$						(372,631			)						$						(346,125			)
Gain (loss) on financial instruments at FVTPL, net
Mandatorily measured at FVTPL									1,148,784															4,884,964															3,982,692															(2,537,012						)
The accrual of expected credit loss of financial assets
Investments in debt instruments at FVTOCI									(2,748						)									(1,085						)									(9,353						)									(553						)
Financial assets at amortized cost									(18,099						)									(9,319						)									(31,808						)									(32,729						)
Other (losses) gains, net									(74,211						)									(102,252						)									351,001															(82,705						)
						$	938,648														$	4,671,334														$	3,919,901														$						(2,999,124			)

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24.    INCOME TAX

a.    Income tax expense recognized in profit or loss

Income tax expense consisted of the following:

						Three Months Ended September 30																														Nine Months Ended September 30
						2023															2022															2023															2022
Current income tax expense
Current tax expense recognized in the current period						$	33,869,144														$	40,291,507														$	103,890,142														$	103,055,761
Income tax adjustments on prior years									(14,038						)									-															(9,698						)									(523,244						)
Other income tax adjustments									51,012															55,481															166,838															142,285
									33,906,118															40,346,988															104,047,282															102,674,802
Deferred income tax benefit
The origination and reversal of temporary differences									(2,760,897						)									(5,731,478						)									(3,563,301						)									(15,260,364						)
Investment tax credits									-															1,106,950															945,038															1,084,373
									(2,760,897						)									(4,624,528						)									(2,618,263						)									(14,175,991						)
Income tax expense recognized in profit or loss						$	31,145,221														$	35,722,460														$	101,429,019														$	88,498,811

b.    Income tax examination

The tax authorities have examined income tax returns of TSMC through 2021. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.

25.    EARNINGS PER SHARE

						Three Months Ended September 30																								Nine Months Ended September 30
						2023												2022												2023												2022
Basic EPS						$	8.14											$	10.83											$	23.13											$	27.79
Diluted EPS						$	8.14											$	10.83											$	23.13											$	27.79

EPS is computed as follows:

						Three Months Ended September 30																														Nine Months Ended September 30
						2023															2022															2023															2022
Basic EPS
Net income available to common shareholders of the parent						$	210,999,939														$	280,865,780														$	599,785,521														$	720,626,072
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)									25,929,267															25,928,993															25,929,208															25,929,256
Basic EPS (in dollars)						$	8.14														$	10.83														$	23.13														$	27.79

(Continued)

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						Three Months Ended September 30																														Nine Months Ended September 30
						2023															2022															2023															2022
Diluted EPS
Net income available to common shareholders of the parent						$	210,999,939														$	280,865,780														$	599,785,521														$	720,626,072
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)									25,929,267															25,928,993															25,929,208															25,929,256
Effects of all dilutive potential common shares (in thousands)									91															172															130															137
Weighted average number of common shares used in the computation of diluted EPS (in thousands)									25,929,358															25,929,165															25,929,338															25,929,393
Diluted EPS (in dollars)						$	8.14														$	10.83														$	23.13														$	27.79

(Concluded)

26.    SHARE-BASED PAYMENT ARRANGEMENTS

a.    Equity-settled share-based payment-RSAs

The RSAs in each year are as follows:

2022 RSAs

2021 RSAs

Resolution Date of TSMC’s shareholders in its meeting

June 8, 2022

July 26, 2021

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

February 14, 2023

February 15, 2022

Issuance of stocks (in thousands)

2,110

1,387

Eligible employees

Executive officers

Executive officers

Grant date/Issuance date

March 1, 2023

March 1, 2022

Vesting conditions of the aforementioned arrangement are as follow:

1)    The RSAs granted to eligible employees can only be vested if

•the employee remains employed by the Company on the last date of each vesting period;

•during the vesting period, the employee may not breach any agreement with the Company or violate the Company’s work rules; and

•certain employee performance metrics and TSMC’s business performance metrics are met.

2)    The maximum percentage of granted RSAs that may be vested each year shall be as follows: one-year anniversary of the grant: 50%; two-year anniversary of the grant: 25%; and three-year anniversary of the grant: 25%; provided that the actual percentage and number of the RSAs to 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

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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 TSR of S&P 500 IT Index			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:

						2022 RSAs												2021 RSAs
						Number of Shares (In Thousands)												Number of Shares (In Thousands)
Balance, beginning of period									-												1,387
Issuance of stocks									2,110												-
Vested shares									-												(274			)
Canceled shares									-												(419			)
Balance, end of period									2,110												694
Weighted-average fair value of RSAs (in dollars)						$	277.71											$	325.81

The RSAs in each year are measured at fair value at grant date by using the binominal tree approach. Relevant information is as follows:

						2022 RSAs															2021 RSAs
						March 1, 2023															March 1, 2022
Stock price at measurement date (in dollars)						$	511														$	604
Expected price volatility									29.34%-32.11%															25.34%-28.28%
Expected life									1-3 years															1-3 years
Risk-free interest rate									1.06%															0.57%

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

The issuance of RSAs for year 2023 of no more than 6,249 thousand common shares has been approved by TSMC’s shareholders’ meeting held on June 6, 2023. The grants will be made free of charge.

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b.    Cash-settled share-based payment arrangements

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

2022 Plan

2021 Plan

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

February 14, 2023

February 15, 2022

Issuance of units (in thousands) (Note)

400

236

Grant date

March 1, 2023

March 1, 2022

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:

						Nine Months Ended September 30
						2023																														2022
						2022 Plan															2021 Plan															2021 Plan
Stock price at measurement date (in dollars)						$	522														$	522														$	476.5
Expected price volatility									25.20%-26.65%															25.20%-26.65%															26.72%-30.73%
Residual life									1-3 years															1-2 years															1-3 years
Risk-free interest rate									1.08%															1.05%															1.18%

Refer to Note 27 for the compensation costs of the cash-settled share-based payment recognized by TSMC. As of September 30, 2023, December 31, 2022 and September 30, 2022, the liabilities under cash-settled share-based payment arrangement amounted to NT$50,222 thousand, NT$30,757 thousand and NT$23,537 thousand, respectively.

27.    ADDITIONAL INFORMATION OF EXPENSES BY NATURE

						Three Months Ended September 30																														Nine Months Ended September 30
						2023															2022															2023															2022
a.    Depreciation of property, plant and equipment and right-of-use assets
Recognized in cost of revenue						$	137,203,831														$	95,904,327														$	352,150,676														$	301,364,537
Recognized in operating expenses									7,722,319															7,239,604															22,499,522															21,752,204
Recognized in other operating income and expenses									680															3,288															3,969															5,478
						$	144,926,830														$	103,147,219														$	374,654,167														$	323,122,219

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						Three Months Ended September 30																														Nine Months Ended September 30
						2023															2022															2023															2022
b.    Amortization of intangible assets
Recognized in cost of revenue						$	1,672,325														$	1,536,479														$	4,859,139														$	4,548,103
Recognized in operating expenses									681,007															661,968															2,029,185															2,002,054
						$	2,353,332														$	2,198,447														$	6,888,324														$	6,550,157
c.    Employee benefits expenses
Post-employment benefits
Defined contribution plans						$	1,355,745														$	1,194,939														$	3,980,104														$	3,342,703
Defined benefit plans									70,335															52,626															211,018															157,187
									1,426,080															1,247,565															4,191,122															3,499,890
Share-based payments
Equity-settled									127,349															80,290															355,701															222,091
Cash-settled									9,124															7,536															47,303															24,835
									136,473															87,826															403,004															246,926
Other employee benefits									58,704,130															63,077,715															169,792,271															168,008,855
						$	60,266,683														$	64,413,106														$	174,386,397														$	171,755,671
Employee benefits expense summarized by function
Recognized in cost of revenue						$	33,519,721														$	37,344,903														$	98,158,663														$	100,859,986
Recognized in operating expenses									26,746,962															27,068,203															76,227,734															70,895,685
						$	60,266,683														$	64,413,106														$	174,386,397														$	171,755,671

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.

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 September 30																								Nine Months Ended September 30
						2023												2022												2023												2022
Profit sharing bonus to employees						$	12,607,089											$	16,771,157											$	35,832,625											$	43,031,392

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

						Years Ended December 31
						2022												2021
Resolution Date of TSMC’s Board of Directors in its meeting						February 14, 2023												February 15, 2022
Profit sharing bonus to employees						$	60,702,047											$	35,601,449
Compensation to directors						$	690,128											$	487,537

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2022 and 2021, 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 JASM and TSMC Nanjing received subsidies from the governments of Japan and China, respectively, for local plants setup and operation, which were mainly used to subsidize the purchase costs of property, plant and equipment as well as partial costs and expenses incurred from plant construction and production. For the nine months ended September 30, 2023 and 2022, the Company received a total of NT$20,757,802 thousand and NT$463,696 thousand as government grants, respectively.

29.    CASH FLOW INFORMATION

a.    Non-cash transactions

						Nine Months Ended September 30
						2023															2022
Additions of financial assets at FVTOCI						$	56,055,303														$	40,812,439
Conversion of convertible bonds into equity securities									(145,144						)									-
Changes in accrued expenses and other current liabilities									(1,077,537						)									8,458,351
Changes in other financial assets									-															(1,217						)
Payments for acquisition of financial assets at FVTOCI						$	54,832,622														$	49,269,573
Disposal of financial assets at FVTOCI						$	28,988,810														$	38,683,380
Changes in other financial assets									(184,044						)									2,538,030
Proceeds from disposal of financial assets at FVTOCI						$	28,804,766														$	41,221,410
Additions of property, plant and equipment						$	796,779,912														$	747,936,092
Changes in other financial assets									44,432															5,599,717
Exchange of assets									(59,387						)									-
Changes in payables to contractors and equipment suppliers									(12,887,052						)									(6,733,136						)
Changes in accrued expenses and other current liabilities									195,589															596,789
Transferred to initial carrying amount of hedged items									39,898															-
Capitalized interests									(4,456,787						)									(1,571,705						)
Payments for acquisition of property, plant and equipment						$	779,656,605														$	745,827,757

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b.    Reconciliation of liabilities arising from financing activities

																																				Non-cash Changes
						Balance as of January 1, 2023															Financing Cash Flow															Foreign Exchange Movement															Leases Modifications															Other Changes (Note)															Balance as of September 30, 2023
Hedging financial liabilities- bank loans						$						-									$	27,908,580														$						(1,029,030			)						$						-									$						-									$	26,879,550
Bonds payable									852,436,439															57,721,552															27,301,588															-															267,754															937,727,333
Long-term bank loans									5,973,936															1,205,556															-															-															5,780															7,185,272
Lease liabilities									32,367,601															(2,411,870						)									28,970															1,919,167															286,653															32,190,521
Total						$	890,777,976														$	84,423,818														$	26,301,528														$	1,919,167														$	560,187														$	1,003,982,676

																																				Non-cash Changes
						Balance as of January 1, 2022															Financing Cash Flow															Foreign Exchange Movement															Leases Modifications															Other Changes (Note)															Balance as of September 30, 2022
Short-term loans						$	114,921,333														$						(111,959,992			)						$						(2,372,053			)						$						-									$						(589,288			)						$						-
Bonds payable									614,470,652															187,690,399															62,510,018															-															215,402															864,886,471
Long-term bank loans									3,475,798															500,000															-															-															6,047															3,981,845
Lease liabilities									22,940,665															(1,941,321						)									147,704															11,416,525															183,008															32,746,581
Total						$	755,808,448														$	74,289,086														$	60,285,669														$	11,416,525														$						(184,831			)						$	901,614,897

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

30.    FINANCIAL INSTRUMENTS

a.    Categories of financial instruments

						September 30, 2023															December 31, 2022															September 30, 2022
Financial assets
FVTPL (Note 1)						$	490,163														$	1,070,398														$	4,705,434
FVTOCI (Note 2)									167,303,596															136,483,349															139,040,137
Hedging financial assets									37,451															2,329															88,431
Amortized cost (Note 3)									1,729,394,612															1,727,306,556															1,695,094,039
						$	1,897,225,822														$	1,864,862,632														$	1,838,928,041
Financial liabilities
FVTPL (Note 4)						$	132,768														$	116,215														$	611,010
Hedging financial liabilities									26,879,550															813															-
Amortized cost (Note 5)									1,820,363,905															1,669,270,659															1,635,913,770
						$	1,847,376,223														$	1,669,387,687														$	1,636,524,780

Note 1:    Financial assets mandatorily measured at FVTPL.

Note 2:    Including notes and accounts receivable (net), equity and debt investments.

Note 3:    Including cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable (including related parties), other receivables, refundable deposits and temporary payments (including those classified under other current assets and other noncurrent assets).

Note 4:    Held for trading.

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Note 5:    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 investment prices. A portion of these risks is hedged.

Foreign currency risk

Substantially all the Company’s sales are denominated in U.S. dollars and over half of its capital expenditures and equity investments 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 and non-derivative financial instruments, such as currency forwards, currency swaps and foreign currency bank loans, to protect against currency exchange rate risks associated with non-NT dollar-denominated assets and liabilities, certain forecasted transactions, and net investments in foreign operations. 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 nine months ended September 30, 2023 and 2022, a hypothetical adverse foreign currency exchange rate change of 10% would have decreased its net income by NT$362,316 thousand and NT$697,072 thousand respectively, after taking into account hedges and offsetting positions.

Interest rate risk

The Company is exposed to interest rate risks primarily in relation to its investment portfolio 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 and amortized cost. Those classified as FVTOCI may have their fair value adversely affected due to an increase in interest rates, but for those classified as amortized cost, their carrying amount will not be affected by changes in interest rates. At the same time, if interest rates fall, cash and cash equivalents may generate less interest income than expected. 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.

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---

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$3,887,322 thousand and NT$4,065,956 thousand for the nine months ended September 30, 2023 and 2022, 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.

Other price risk

The Company is exposed to equity price risk arising from financial assets at FVTOCI.

Assuming a hypothetical decrease of 10% in prices of the equity investments at the end of the reporting period for the nine months ended September 30, 2023 and 2022, the other comprehensive income would have decreased by NT$925,125 thousand and NT$692,880 thousand, 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.

Business related credit risk

The Company’s accounts receivable are from its customers worldwide. The majority of the Company’s outstanding accounts receivable are not covered by collaterals or guarantees. While the Company has procedures to monitor and manage credit risk exposure on accounts receivable, there is no assurance such procedures will effectively eliminate losses resulting from its credit risk. This risk is heightened during periods when economic conditions worsen.

As of September 30, 2023, December 31, 2022 and September 30, 2022, the Company’s ten largest customers accounted for 85%, 82% and 82% of accounts receivable, respectively. The Company considers the concentration of credit risk for the remaining accounts receivable not material.

Financial credit risk

The Company mitigates its financial credit risk by selecting counterparties with investment grade credit ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors 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.

- 41 -

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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 Expected Credit Loss

Expected Credit Loss Ratio

Performing

Credit rating is investment grade on valuation date

12 months expected credit loss

0-0.1%

Doubtful

Credit rating is non-investment grade on valuation date

Lifetime expected credit loss-not credit impaired

-

In default

Credit rating is CC or below on valuation date

Lifetime expected credit loss-credit impaired

-

Write-off

There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery

Amount is written off

-

For the nine months ended September 30, 2023 and 2022, the expected credit loss increased NT$46,881 thousand and NT$41,636 thousand, respectively. The changes were mainly due to increased investment amount and adjusted investment portfolio.

e.    Liquidity risk management

The objective of liquidity risk management is to ensure the Company has sufficient liquidity to fund its business operations over the next 12 months. The Company manages its liquidity risk by maintaining adequate cash and cash equivalents, financial assets at FVTOCI-current, financial assets at 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 1 Year															1-3 Years															3-5 Years															More Than 5 Years															Total
September 30, 2023
Non-derivative financial liabilities
Hedging financial liabilities-bank loans						$	26,879,864														$						-									$						-									$						-									$	26,879,864
Accounts payable (including related parties)									53,772,306															-															-															-															53,772,306
Payables to contractors and equipment suppliers									230,848,866															-															-															-															230,848,866
Accrued expenses and other current liabilities									272,295,549															-															-															-															272,295,549
Bonds payable									23,690,820															169,555,796															358,616,332															613,998,069															1,165,861,017
Long-term bank loans									2,254,821															4,331,666															794,526															-															7,381,013
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)									3,135,408															5,381,609															4,733,050															22,344,257															35,594,324
Others									-															143,468,212															15,847,107															2,496,129															161,811,448
									612,877,634															322,737,283															379,991,015															638,838,455															1,954,444,387
Derivative financial instruments
Forward exchange contracts
Outflows									13,751,704															-															-															-															13,751,704
Inflows									(13,763,851						)									-															-															-															(13,763,851						)
									(12,147						)									-															-															-															(12,147						)
						$	612,865,487														$	322,737,283														$	379,991,015														$	638,838,455														$	1,954,432,240

(Continued)

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						Less Than 1 Year															1-3 Years															3-5 Years															More Than 5 Years															Total
December 31, 2022
Non-derivative financial liabilities
Accounts payable (including related parties)						$	56,522,345														$						-									$						-									$						-									$	56,522,345
Payables to contractors and equipment suppliers									213,499,613															-															-															-															213,499,613
Accrued expenses and other current liabilities									219,587,908															-															-															-															219,587,908
Bonds payable									34,668,909															94,869,159															320,211,460															625,049,539															1,074,799,067
Long-term bank loans									1,278,130															3,533,152															1,360,549															-															6,171,831
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)									2,999,840															5,367,809															4,754,007															22,589,117															35,710,773
Others									-															166,266,718															10,518,481															783,182															177,568,381
									528,556,745															270,036,838															336,844,497															648,421,838															1,783,859,918
Derivative financial instruments
Forward exchange contracts
Outflows									103,617,399															-															-															-															103,617,399
Inflows									(104,600,085						)									-															-															-															(104,600,085						)
									(982,686						)									-															-															-															(982,686						)
						$	527,574,059														$	270,036,838														$	336,844,497														$	648,421,838														$	1,782,877,232
September 30, 2022
Non-derivative financial liabilities
Accounts payable (including related parties)						$	62,018,224														$						-									$						-									$						-									$	62,018,224
Payables to contractors and equipment suppliers									159,780,369															-															-															-															159,780,369
Accrued expenses and other current liabilities									206,908,541															-															-															-															206,908,541
Bonds payable									39,450,837															94,867,341															314,685,674															648,515,423															1,097,519,275
Long-term bank loans									963,041															2,601,517															524,867															-															4,089,425
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)									2,946,938															5,278,010															4,749,791															23,213,612															36,188,351
Others									-															191,095,118															3,581,616															-															194,676,734
									472,067,950															293,841,986															323,541,948															671,729,035															1,761,180,919
Derivative financial instruments
Forward exchange contracts
Outflows									170,881,226															-															-															-															170,881,226
Inflows									(175,119,667						)									-															-															-															(175,119,667						)
									(4,238,441						)									-															-															-															(4,238,441						)
						$	467,829,509														$	293,841,986														$	323,541,948														$	671,729,035														$	1,756,942,478

(Concluded)

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

						5-10 Years															10-15 Years															15-20 Years															More Than 20 Years															Total
September 30, 2023
Lease liabilities						$	10,347,093														$	7,277,535														$	4,244,674														$	474,955														$	22,344,257
December 31, 2022
Lease liabilities						$	10,241,734														$	7,329,012														$	4,233,886														$	784,485														$	22,589,117
September 30, 2022
Lease liabilities						$	10,373,309														$	7,513,470														$	4,390,162														$	936,671														$	23,213,612

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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

Fair value hierarchy

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis:

						September 30, 2023
						Level 1															Level 2															Level 3															Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Convertible bonds						$						-									$						-									$	231,022														$	231,022
Forward exchange contracts									-															147,504															-															147,504
Mutual funds									-															-															111,637															111,637
						$						-									$	147,504														$	342,659														$	490,163
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds						$						-									$	80,389,109														$						-									$	80,389,109
Agency mortgage-backed securities									-															36,337,585															-															36,337,585
Government bonds/Agency bonds									23,706,398															355,446															-															24,061,844
Asset-backed securities									-															10,419,593															-															10,419,593
Investments in equity instruments
Non-publicly traded equity investments									-															-															7,933,799															7,933,799
Publicly traded stocks									3,630,259															-															-															3,630,259
Notes and accounts receivable, net									-															4,531,407															-															4,531,407
						$	27,336,657														$	132,033,140														$	7,933,799														$	167,303,596
Hedging financial assets
Fair value hedges
Interest rate futures contracts						$	37,451														$						-									$						-									$	37,451
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts						$						-									$	132,768														$						-									$	132,768

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						December 31, 2022
						Level 1															Level 2															Level 3															Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts						$						-									$	947,546														$						-									$	947,546
Convertible bonds									-															-															122,852															122,852
						$						-									$	947,546														$	122,852														$	1,070,398
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds						$						-									$	66,116,166														$						-									$	66,116,166
Agency mortgage-backed securities									-															28,367,926															-															28,367,926
Government bonds/Agency bonds									18,845,577															116,311															-															18,961,888
Asset-backed securities									-															9,274,697															-															9,274,697
Investments in equity instruments
Non-publicly traded equity investments									-															-															6,159,200															6,159,200
Publicly traded stocks									277,866															-															-															277,866
Notes and accounts receivable, net									-															7,325,606															-															7,325,606
						$	19,123,443														$	111,200,706														$	6,159,200														$	136,483,349
Hedging financial assets
Fair value hedges
Interest rate futures contracts						$	2,329														$						-									$						-									$	2,329
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts						$						-									$	116,215														$						-									$	116,215
Hedging financial liabilities
Fair value hedges
Interest rate futures contracts						$	813														$						-									$						-									$	813

						September 30, 2022
						Level 1															Level 2															Level 3															Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts						$						-									$	4,705,434														$						-									$	4,705,434
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds						$						-									$	66,420,737														$						-									$	66,420,737
Agency mortgage-backed securities									-															29,680,882															-															29,713,881
Government bonds/Agency bonds									20,139,588															120,093															-															20,226,682
Asset-backed securities									-															9,580,806															-															9,580,806
Investments in equity instruments
Non-publicly traded equity investments									-															-															6,784,978															6,784,978
Publicly traded stocks									267,316															-															-															267,316
Notes and accounts receivable, net									-															6,045,737															-															6,045,737
						$	20,406,904														$	111,848,255														$	6,784,978														$	139,040,137

(Continued)

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						September 30, 2022
						Level 1															Level 2															Level 3															Total
Hedging financial assets
Fair value hedges
Interest rate futures contracts						$	88,431														$						-									$						-									$	88,431
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts						$						-									$	611,010														$						-									$	611,010

(Concluded)

Reconciliation of Level 3 fair value measurements of financial assets

The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTOCI and financial assets at FVTPL. Reconciliations for the nine months ended September 30, 2023 and 2022 are as follows:

						Nine Months Ended September 30
						2023															2022
Balance, beginning of period						$	6,282,052														$	5,887,892
Additions									1,034,748															315,772
Recognized in profit or loss									27,022															-
Recognized in other comprehensive income or loss									695,099															(11,606						)
Disposals and proceeds from return of capital of investments									(117,897						)									-
Transfers out of level 3 (Note)									-															(139,770						)
Effect of exchange rate changes									355,434															732,690
Balance, end of period						$	8,276,458														$	6,784,978

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

Valuation techniques and assumptions used in Level 2 fair value measurement

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

•The fair values of corporate bonds, agency bonds, agency mortgage-backed securities, asset-backed securities and government bonds are determined by quoted market prices provided by third party pricing services.

•The fair values of forward contracts are measured using forward rates and discount rates derived from quoted market prices.

•The fair value of accounts receivable classified as at FVTOCI is determined by the present value of future cash flows based on the discount rate that reflects the credit risk of counterparties.

Valuation techniques and assumptions used in Level 3 fair value measurement

The fair values of non-publicly traded equity investments (excluding those trading on the Emerging Stock Board) and mutual funds are mainly determined by using the asset approach and market approach.

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The asset approach takes into account the net asset value measured at the fair value by independent parties. On September 30, 2023, December 31, 2022 and September 30, 2022, 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$59,572 thousand, NT$48,704 thousand and NT$56,247 thousand, respectively, if discounts for lack of marketability increase by 1%.

For the remaining few investments, the market approach is used to arrive at their fair values, for which the recent financing activities of investees, the market transaction prices of the similar companies and market conditions are considered.

In addition, the fair values of convertible bonds are prior transaction prices.

3)    Fair value of financial instruments that are not measured at fair value

Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments in the consolidated financial statements that are not measured at fair value approximate their fair values.

Fair value hierarchy

The table below sets out the fair value hierarchy for the Company’s financial assets and liabilities which are not required to be measured at fair value:

						September 30, 2023
						Carrying															Fair Value
						Amount															Level 1															Level 2															Total
Financial assets
Financial assets at amortized costs
Corporate bonds						$	126,195,790														$						-									$	124,215,176														$	124,215,176
Commercial paper									22,147,473															-															22,166,534															22,166,534
Government bonds/Agency bonds									15,297,477															2,787,162															12,327,040															15,114,202
						$	163,640,740														$	2,787,162														$	158,708,750														$	161,495,912
Financial liabilities
Financial liabilities at amortized costs
Bonds payable						$	937,727,333														$						-									$	829,219,281														$	829,219,281

						December 31, 2022
						Carrying															Fair Value
						Amount															Level 1															Level 2															Total
Financial assets
Financial assets at amortized costs
Corporate bonds						$	80,994,958														$						-									$	80,236,142														$	80,236,142
Commercial paper									48,732,476															-															48,882,028															48,882,028
						$	129,727,434														$						-									$	129,118,170														$	129,118,170
Financial liabilities
Financial liabilities at amortized costs
Bonds payable						$	852,436,439														$						-									$	765,301,535														$	765,301,535

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						September 30, 2022
						Carrying															Fair Value
						Amount															Level 1															Level 2															Total
Financial assets
Financial assets at amortized costs
Corporate bonds						$	70,800,817														$						-									$	69,466,149														$	69,466,149
Commercial paper									43,404,235															-															43,517,466															43,517,466
						$	114,205,052														$						-									$	112,983,615														$	112,983,615
Financial liabilities
Financial liabilities at amortized costs
Bonds payable						$	864,886,471														$						-									$	765,664,981														$	765,664,981

Valuation techniques and assumptions used in Level 2 fair value measurement

The fair values of corporate bonds, the Company’s bonds payable and agency bonds are determined by quoted market prices provided by third party pricing services.

The fair value of commercial paper is determined by the present value of future cash flows based on the discounted curves that are derived from the quoted market prices.

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						Associates
VIS						Associates
SSMC						Associates
Xintec						Associates
TSMC Education and Culture Foundation						Other related parties

b.    Net revenue

												Three Months Ended September 30																								Nine Months Ended September 30
												2023												2022												2023												2022
Item						Related Party Categories
Net revenue from sale of goods						Associates						$	2,707,687											$	3,392,845											$	9,934,126											$	9,363,166

c.    Purchases

						Three Months Ended September 30																								Nine Months Ended September 30
						2023												2022												2023												2022
Related Party Categories
Associates						$	922,561											$	1,699,804											$	3,303,946											$	4,797,872

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d.    Receivables from related parties

												September 30, 2023															December 31, 2022															September 30, 2022
Item						Related Party Name
Receivables from						GUC						$	199,068														$	1,471,351														$	934,086
related parties						Xintec									157,189															112,607															157,088
												$	356,257														$	1,583,958														$	1,091,174
Other receivables						SSMC						$	60,333														$	68,277														$	70,674
from related						VIS									22,030															669															5,469
parties						Others									-															29															-
												$	82,363														$	68,975														$	76,143

e.    Payables to related parties

												September 30, 2023															December 31, 2022															September 30, 2022
Item						Related Party Name
Payables to related						Xintec						$	1,186,773														$	1,047,452														$	1,181,914
parties						SSMC									295,730															385,979															527,944
						VIS									47,914															190,587															141,586
						Others									91,006															18,619															19,375
												$	1,621,423														$	1,642,637														$	1,870,819

f.    Accrued expenses and other current liabilities

												September 30, 2023												December 31, 2022												September 30, 2022
Item						Related Party Categories
Contract liabilities						Associates						$	1,210,736											$	1,075,659											$	837,482

g.    Others

												Three Months Ended September 30																								Nine Months Ended September 30
												2023												2022												2023												2022
Item						Related Party Categories
Manufacturing expenses						Associates						$	1,536,508											$	1,624,663											$	3,454,397											$	4,489,117

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.

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h.    Compensation of key management personnel

The compensation to directors and other key management personnel were as follows:

						Three Months Ended September 30																														Nine Months Ended September 30
						2023															2022															2023															2022
Short-term employee benefits						$	817,111														$	1,138,271														$	2,454,401														$	3,122,981
Post-employment benefits									1,049															698															2,965															2,373
Share-based payments									134,066															82,887															386,838															203,008
						$	952,226														$	1,221,856														$	2,844,204														$	3,328,362

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 certificate of deposits recorded in other financial assets as collateral mainly for building lease agreements. As of September 30, 2023, December 31, 2022 and September 30, 2022, the aforementioned other financial assets amounted to NT$128,861 thousand, NT$129,138 thousand and NT$131,995 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 September 2022, Daedalus Prime LLC (“Daedalus”) filed complaints in the U.S. International Trade Commission (“ITC”) and the U.S. District Court for the Eastern District of Texas alleging that TSMC, TSMC North America, and other companies infringe four U.S. patents. The ITC instituted an investigation in October 2022. In June 2023, Daedalus dropped two of the asserted patents in the ITC.

- 50 -

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Also in June 2023, Daedalus filed another complaint in the Eastern District of Texas alleging that TSMC infringes five U.S. patents. In September 2023, the ITC granted the parties’ joint motion to suspend the procedural schedule while the parties finalize the settlement agreement and then request termination of the ITC Investigation and related litigations. In October 2023, the parties jointly requested the ITC to terminate the investigation and Eastern District of Texas to dismiss the related litigations. The related litigations in the Eastern District of Texas have been dismissed.

d.TSMC entered into long-term purchase agreements of materials and supplies and agreements of waste disposal with multiple suppliers. The relative minimum fulfillment quantity and price are specified in the agreements.

e.TSMC entered into a long-term purchase agreement of equipment. The relative fulfillment 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 September 30, 2023, December 31, 2022 and September 30, 2022 were NT$391,084 thousand, NT$383,974 thousand and NT$238,309 thousand, respectively.

h.The Company entrusted financial institutions to provide performance guarantees mainly for import and export of goods, lease agreement and energy purchase agreement. As of September 30, 2023, December 31, 2022 and September 30, 2022, the aforementioned guarantee amounted to NT$8,064,025 thousand, NT$7,623,262 thousand, and NT$7,603,958 thousand, respectively.

34.    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 Currencies (In Thousands)															Exchange Rate (Note 1)												Carrying Amount (In Thousands)
September 30, 2023
Financial assets
Monetary items
USD						$	14,024,503																	32.281									$	452,724,972
EUR									284,709															33.989												9,676,990
EUR									172,497															1.053			(Note2)									5,863,012
JPY									63,541,086															0.2159												13,718,520
Financial liabilities
Monetary items
USD									14,086,103															32.281												454,713,480
EUR									436,807															33.989												14,846,641
EUR									165,914															1.053			(Note2)									5,639,262
JPY									188,152,004															0.2159												40,622,018

(Continued)

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						Foreign Currencies (In Thousands)															Exchange Rate (Note 1)												Carrying Amount (In Thousands)
December 31, 2022
Financial assets
Monetary items
USD						$	15,214,896																	30.713									$	467,295,097
EUR									8,375															32.838												275,006
EUR									29,161															7.432			(Note3)									957,587
JPY									133,034,271															0.2331												31,010,288
Financial liabilities
Monetary items
USD									15,190,659															30.713												466,550,704
EUR									2,375,378															32.838												78,002,647
JPY									134,608,488															0.2331												31,377,239
September 30, 2022
Financial assets
Monetary items
USD									12,210,697															31.766												387,884,990
USD									712,465															7.093			(Note4)									22,632,159
EUR									1,546															31.121												48,100
EUR									20,774															6.949			(Note3)									646,523
JPY									93,019,566															0.2202												20,482,908
JPY									6,683,505															0.0492			(Note5)									1,471,708
Financial liabilities
Monetary items
USD									14,953,889															31.766												475,025,231
EUR									1,180,147															31.121												36,727,345
JPY									93,842,663															0.2202												20,664,154
JPY									6,697,526															0.0492			(Note5)									1,474,795

(Concluded)

Note 1:    Except as otherwise noted, exchange rate represents the number of NT dollar for which one foreign currency could be exchanged.

Note 2:    The exchange rate represents the number of one U.S. dollar for which one Euro could be exchanged.

Note 3:    The exchange rate represents the number of RMB for which one Euro could be exchanged.

Note 4:    The exchange rate represents the number of RMB for which one U.S. dollar could be exchanged.

Note 5:    The exchange rate represents the number of RMB for which one Japanese yen could be exchanged.

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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 and the nine months ended September 30, 2023 and 2022, 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.

35.    ADDITIONAL DISCLOSURES

Following are the additional disclosures required by the Securities and Futures Bureau for TSMC:

a.    Financings provided: See Table 1 attached;

b.    Endorsement/guarantee provided: See Table 2 attached;

c.    Marketable securities held (excluding investments in subsidiaries and associates): See Table 3 attached;

d.    Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: See Table 4 attached;

e.    Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in capital: See Table 5 attached;

f.    Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None;

g.    Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: See Table 6 attached;

h.    Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 7 attached;

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

j.    Others: The business relationship between the parent and the subsidiaries and significant transactions between them: See Table 8 attached;

k.    Names, locations, and related information of investees over which TSMC exercises significant influence (excluding information on investment in mainland China): See Table 9 attached;

l.    Information on investment in mainland China

1)    The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: See Table 10 attached.

2)    Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland China on financial reports: See Table 8 attached.

m.    Information of major shareholders

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

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36.    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.

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TABLE 1

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

FINANCINGS PROVIDED

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

No.			Financing Company			Counterparty			Financial Statement Account			Related Party			Maximum Balance for the Period (Foreign Currencies in Thousands) (Note 3)												Ending Balance (Foreign Currencies in Thousands) (Note 3)												Amount Actually Drawn (Foreign Currencies in Thousands)															Interest Rate			Nature for Financing			Transaction Amounts												Reason for Financing			Allowance for Bad Debt												Collateral															Financing Limits for Each Borrowing Company (Notes 1 and 2)												Financing Company’s Total Financing Amount Limits (Notes 1 and 2)
																																																																																							Item			Value
0			TSMC			TSMC Arizona			Other receivables from related parties			Yes			$ (US$						96,843,000 3,000,000			$ )			$ (US$						96,843,000 3,000,000			$ )			$						-									-			The need for short-term financing			$						-						Capacity installation and working capital			$						-						-			$						-						$	334,834,966											$	669,669,931
1			TSMC China			TSMC Nanjing			Other receivables from related parties			Yes			$ (RMB (US$						76,035,870 8,800,000 1,150,000			$ )& )			$ (RMB (US$						53,439,170 8,800,000 450,000			$ )& )			$ (RMB									38,912,720 8,800,000			$ )			1.30%-1.50%			The need for short-term and long-term financing						-									Operating capital						-									-						-												94,962,438												94,962,438

Note 1:    The amount available for lending to TSMC Arizona from TSMC shall not exceed ten percent (10%) of the net worth of TSMC, and the total amount available for lending from TSMC to borrowers shall not exceed twenty percent (20%) of the net worth of TSMC.

Note 2:    The aggregate amount available for lending to TSMC Nanjing from TSMC China shall not exceed the net worth of TSMC China.

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

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TABLE 2

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

No.			Endorsement/ Guarantee Provider			Guaranteed Party						Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Notes 1 and 2)												Maximum Balance for the Period (Foreign Currencies in Thousands) (Note 3)												Ending Balance (Foreign Currencies in Thousands) (Note 3)												Amount Actually Drawn (US$ in Thousands)												Amount of Endorsement/ Guarantee Collateralized by Properties												Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements			Maximum Endorsement/ Guarantee Amount Allowable (Notes 1 and 2)												Guarantee Provided by Parent Company			Guarantee Provided by A Subsidiary			Guarantee Provided to Subsidiaries in Mainland China
						Name			Nature of Relationship
0			TSMC			TSMC North America			Subsidiary			$	1,339,339,863											$ (US$						2,686,209 83,213			$ )			$ (US$						2,686,209 83,213			$ )			$ (US$						2,686,209 83,213			$ )			$						-						0.08%			$	1,339,339,863											Yes			No			No
						TSMC Global			Subsidiary						1,339,339,863									$ (US$						242,107,500 7,500,000			$ )			$ (US$						242,107,500 7,500,000			$ )			$ (US$						242,107,500 7,500,000			$ )						-									7.23%						1,339,339,863									Yes			No			No
						TSMC Arizona			Subsidiary						1,339,339,863									$ (US$						388,418,550 12,032,420			$ )			$ (US$						388,418,550 12,032,420			$ )			$ (US$						259,294,550 8,032,420			$ )						-									11.60%						1,339,339,863									Yes			No			No
						TSMC Development			Subsidiary									1,339,339,863						$ (US$						13,971,217 432,800			$ )			$ (US$						13,971,217 432,800			$ )			$ (US$						13,971,055 432,795			$ )						-									0.42%									1,339,339,863						Yes			No			No
1			TSMC Japan			TSMC JDC			The same parent company						325,873									$ (JPY						284,988 1,320,000			$ )			$ (JPY						284,988 1,320,000			$ )			$ (JPY						284,988 1,320,000			$ )						-									0.01%						325,873									No			No			No

Note 1:    The total amount of the endorsement/guarantee provided by TSMC to TSMC North America, TSMC Global, TSMC Arizona and TSMC Development shall not exceed forty percent (40%) of TSMC’s net worth.

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

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

- 56 -

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TABLE 3

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

MARKETABLE SECURITIES HELD

SEPTEMBER 30, 2023 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																																																Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)															Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC			Non-publicly traded equity investments
			Shin-Etsu Handotai Taiwan Co., Ltd.			-			Financial assets at fair value through other comprehensive income						10,500						$	438,648																	7						$	438,648
			United Industrial Gases Co., Ltd.			-			〃						21,230									435,139															10									435,139
			Global Investment Holding Inc.			-			〃						10,442									102,595															6									102,595
			Crimson Asia Capital			-			〃						-									-															1									-
			Commercial paper
			Nan Ya Plastics Corporation			-			Financial assets at amortized cost						850									8,479,423															N/A									8,487,558
			Cathay Financial Holding Co., Ltd.			-			〃						620									6,184,269															N/A									6,190,369
			Formosa Chemicals & Fibre Corporation			-			〃						500									4,987,514															N/A									4,992,430
			Taiwan Power Company			-			〃						200									1,996,620															N/A									1,996,514
			CPC Corporation, Taiwan			-			〃						50									499,647															N/A									499,663
TSMC Partners			Fund
			Matter Venture Partners Fund I, L.P.			-			Financial assets at fair value through Profit or Loss						-						US$									3,458									9						US$									3,458
			Non-publicly traded equity investments
			Shanghai Walden Venture Capital Enterprise			-			Financial assets at fair value through other comprehensive income						-						US$									32,792									6						US$									32,792
			Walden Technology Ventures Investments II, L.P.			-			〃						-						US$									23,347									9						US$									23,347
			Walden Technology Ventures Investments III, L.P.			-			〃						-						US$									13,139									4						US$									13,139
			Tela Innovations			-			〃						6,942									-															22									-
			Publicly traded stocks
			ARM Holdings plc			-			Financial assets at fair value through other comprehensive income						1,961						US$									104,941									-						US$									104,941
			Movella Holdings Inc.			-			〃						3,095						US$									1,660									6						US$									1,660
TSMC Global			Corporate bond
			Bank of America Corporation			-			Financial assets at fair value through other comprehensive income						-						US$									87,259									N/A						US$									87,259
			Morgan Stanley			-			〃						-						US$									79,716									N/A						US$									79,716
			The Goldman Sachs Group, Inc.			-			〃						-						US$									57,185									N/A						US$									57,185
			JPMorgan Chase & Co.			-			〃						-						US$									56,152									N/A						US$									56,152
			Wells Fargo & Company			-			〃						-						US$									55,625									N/A						US$									55,625
			Citigroup Inc.			-			〃						-						US$									49,067									N/A						US$									49,067
			Sumitomo Mitsui Financial Group, Inc.			-			〃						-						US$									44,494									N/A						US$									44,494
			Mitsubishi UFJ Financial Group, Inc.			-			〃						-						US$									38,159									N/A						US$									38,159
			Barclays PLC			-			〃						-						US$									36,403									N/A						US$									36,403
			HSBC Holdings plc			-			〃						-						US$									29,551									N/A						US$									29,551
			AbbVie Inc.			-			〃						-						US$									26,463									N/A						US$									26,463
			Royal Bank of Canada			-			〃						-						US$									26,323									N/A						US$									26,323
			Banco Santander, S.A.			-			〃						-						US$									25,041									N/A						US$									25,041

(Continued)

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Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			CVS Health Corporation			-			Financial assets at fair value through other comprehensive income			-			US$						23,574						N/A			US$						23,574
			Lloyds Banking Group plc			-			〃			-			US$						23,376						N/A			US$						23,376
			Oracle Corporation			-			〃			-			US$						22,718						N/A			US$						22,718
			The Toronto-Dominion Bank			-			〃			-			US$						21,877						N/A			US$						21,877
			Capital One Financial Corporation			-			〃			-			US$						20,473						N/A			US$						20,473
			BPCE SA			-			〃			-			US$						20,201						N/A			US$						20,201
			BNP Paribas SA			-			〃			-			US$						19,963						N/A			US$						19,963
			Credit Agricole SA London Branch			-			〃			-			US$						19,755						N/A			US$						19,755
			Athene Global Funding			-			〃			-			US$						19,737						N/A			US$						19,737
			Metropolitan Life Global Funding I			-			〃			-			US$						19,027						N/A			US$						19,027
			Fédération des caisses Desjardins du Québec			-			〃			-			US$						18,942						N/A			US$						18,942
			Equitable Financial Life Global Funding			-			〃			-			US$						18,357						N/A			US$						18,357
			National Securities Clearing Corporation			-			〃			-			US$						18,089						N/A			US$						18,089
			AIG Global Funding			-			〃			-			US$						17,928						N/A			US$						17,928
			Sumitomo Mitsui Trust Bank, Limited			-			〃			-			US$						17,475						N/A			US$						17,475
			Principal Life Global Funding II			-			〃			-			US$						17,469						N/A			US$						17,469
			Société Générale Société anonyme			-			〃			-			US$						17,245						N/A			US$						17,245
			Guardian Life Global Funding			-			〃			-			US$						16,589						N/A			US$						16,589
			Danske Bank A/S			-			〃			-			US$						16,412						N/A			US$						16,412
			The Bank of Nova Scotia			-			〃			-			US$						15,972						N/A			US$						15,972
			Volkswagen Group of America Finance, LLC			-			〃			-			US$						15,893						N/A			US$						15,893
			Nomura Holdings, Inc.			-			〃			-			US$						15,155						N/A			US$						15,155
			Hyundai Capital America			-			〃			-			US$						14,524						N/A			US$						14,524
			Santander UK Group Holdings plc			-			〃			-			US$						14,263						N/A			US$						14,263
			Standard Chartered PLC			-			〃			-			US$						14,038						N/A			US$						14,038
			Banque Fédérative du Crédit Mutuel Société anonyme			-			〃			-			US$						13,898						N/A			US$						13,898
			U.S. Bancorp.			-			〃			-			US$						13,859						N/A			US$						13,859
			UBS Group AG			-			〃			-			US$						13,836						N/A			US$						13,836
			NTT Finance Corporation			-			〃			-			US$						13,270						N/A			US$						13,270
			American Express Company			-			〃			-			US$						13,205						N/A			US$						13,205
			UnitedHealth Group Incorporated			-			〃			-			US$						13,176						N/A			US$						13,176
			Protective Life Global Funding			-			〃			-			US$						13,140						N/A			US$						13,140
			Amgen Inc.			-			〃			-			US$						12,938						N/A			US$						12,938
			Deutsche Bank AG - New York Branch			-			〃			-			US$						12,926						N/A			US$						12,926
			AerCap Ireland Capital Designated Activity Company			-			〃			-			US$						12,746						N/A			US$						12,746
			Penske Truck Leasing Co., L.P.			-			〃			-			US$						12,673						N/A			US$						12,673
			Enel Finance International N.V.			-			〃			-			US$						12,650						N/A			US$						12,650
			Truist Financial Corporation			-			〃			-			US$						12,564						N/A			US$						12,564
			Pfizer Investment Enterprises Pte. Ltd.			-			〃			-			US$						12,147						N/A			US$						12,147
			Intuit Inc.			-			〃			-			US$						12,139						N/A			US$						12,139
			Apple Inc.			-			〃			-			US$						12,134						N/A			US$						12,134
			New York Life Global Funding			-			〃			-			US$						11,958						N/A			US$						11,958
			ING Groep N.V.			-			〃			-			US$						11,878						N/A			US$						11,878
			Nationwide Building Society			-			〃			-			US$						11,823						N/A			US$						11,823
			Amazon.com, Inc.			-			〃			-			US$						11,591						N/A			US$						11,591
			NatWest Markets Plc			-			〃			-			US$						11,577						N/A			US$						11,577
			Mizuho Financial Group, Inc.			-			〃			-			US$						11,364						N/A			US$						11,364
			Nordea Bank Abp			-			〃			-			US$						11,291						N/A			US$						11,291
			ASB Bank Limited			-			〃			-			US$						11,175						N/A			US$						11,175

(Continued)

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---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Northwestern Mutual Global Funding			-			Financial assets at fair value through other comprehensive income			-			US$						10,966						N/A			US$						10,966
			NextEra Energy Capital Holdings, Inc.			-			〃			-			US$						10,857						N/A			US$						10,857
			Bank of Montreal			-			〃			-			US$						10,607						N/A			US$						10,607
			Verizon Communications Inc.			-			〃			-			US$						10,595						N/A			US$						10,595
			Southern California Edison Company			-			〃			-			US$						10,498						N/A			US$						10,498
			The Bank of New York Mellon Corporation			-			〃			-			US$						10,467						N/A			US$						10,467
			Ryder System, Inc.			-			〃			-			US$						10,200						N/A			US$						10,200
			S&P Global Inc.			-			〃			-			US$						10,190						N/A			US$						10,190
			Equifax Inc.			-			〃			-			US$						10,066						N/A			US$						10,066
			Macquarie Group Limited			-			〃			-			US$						9,935						N/A			US$						9,935
			ABN AMRO Bank N.V.			-			〃			-			US$						9,858						N/A			US$						9,858
			ONEOK, Inc.			-			〃			-			US$						9,720						N/A			US$						9,720
			Svenska Handelsbanken AB (publ)			-			〃			-			US$						9,622						N/A			US$						9,622
			John Deere Capital Corporation			-			〃			-			US$						9,426						N/A			US$						9,426
			AT&T Inc.			-			〃			-			US$						9,369						N/A			US$						9,369
			Haleon US Capital LLC			-			〃			-			US$						9,008						N/A			US$						9,008
			Roper Technologies, Inc.			-			〃			-			US$						8,992						N/A			US$						8,992
			Equinor ASA			-			〃			-			US$						8,865						N/A			US$						8,865
			Exelon Corporation			-			〃			-			US$						8,843						N/A			US$						8,843
			Florida Power & Light Company			-			〃			-			US$						8,775						N/A			US$						8,775
			Merck & Co., Inc.			-			〃			-			US$						8,651						N/A			US$						8,651
			Honeywell International Inc.			-			〃			-			US$						8,330						N/A			US$						8,330
			Fifth Third Bancorp			-			〃			-			US$						8,305						N/A			US$						8,305
			Macquarie Bank Limited			-			〃			-			US$						8,240						N/A			US$						8,240
			The PNC Financial Services Group, Inc.			-			〃			-			US$						8,040						N/A			US$						8,040
			Rabobank Nederland - New York Branch			-			〃			-			US$						7,962						N/A			US$						7,962
			AstraZeneca Finance LLC			-			〃			-			US$						7,812						N/A			US$						7,812
			Daimler Trucks Finance North America LLC			-			〃			-			US$						7,793						N/A			US$						7,793
			Lowe's Companies, Inc.			-			〃			-			US$						7,768						N/A			US$						7,768
			TORONTO-DOMINION BANK/THE			-			〃			-			US$						7,764						N/A			US$						7,764
			International Bank for Reconstruction and Development			-			〃			-			US$						7,704						N/A			US$						7,704
			KfW			-			〃			-			US$						7,640						N/A			US$						7,640
			Constellation Energy Generation, LLC			-			〃			-			US$						7,599						N/A			US$						7,599
			Lockheed Martin Corporation			-			〃			-			US$						7,549						N/A			US$						7,549
			Intel Corporation			-			〃			-			US$						7,482						N/A			US$						7,482
			Coöperatieve Rabobank U.A.			-			〃			-			US$						7,420						N/A			US$						7,420
			Great-West Lifeco U.S. Finance 2020, Lp			-			〃			-			US$						7,406						N/A			US$						7,406
			Inter-American Development Bank			-			〃			-			US$						7,375						N/A			US$						7,375
			Suncorp-Metway Limited			-			〃			-			US$						7,368						N/A			US$						7,368
			Cox Communications, Inc.			-			〃			-			US$						7,315						N/A			US$						7,315
			Chevron Corporation			-			〃			-			US$						6,892						N/A			US$						6,892
			The East Ohio Gas Company			-			〃			-			US$						6,821						N/A			US$						6,821
			Fiserv, Inc.			-			〃			-			US$						6,733						N/A			US$						6,733
			Fidelity National Information Services, Inc.			-			〃			-			US$						6,664						N/A			US$						6,664
			Philip Morris International Inc.			-			〃			-			US$						6,592						N/A			US$						6,592
			AstraZeneca PLC			-			〃			-			US$						6,574						N/A			US$						6,574
			Pacific Life Global Funding II			-			〃			-			US$						6,538						N/A			US$						6,538
			UBS AG, London Branch			-			〃			-			US$						6,430						N/A			US$						6,430
			Met Tower Global Funding			-			〃			-			US$						6,383						N/A			US$						6,383

(Continued)

- 59 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			WEC Energy Group, Inc.			-			Financial assets at fair value through other comprehensive income			-			US$						6,319						N/A			US$						6,319
			MPLX LP			-			〃			-			US$						6,306						N/A			US$						6,306
			Roche Holdings, Inc.			-			〃			-			US$						6,293						N/A			US$						6,293
			Georgia Power Company			-			〃			-			US$						6,251						N/A			US$						6,251
			NatWest Group plc			-			〃			-			US$						6,141						N/A			US$						6,141
			The Charles Schwab Corporation			-			〃			-			US$						6,106						N/A			US$						6,106
			Take-Two Interactive Software, Inc.			-			〃			-			US$						6,008						N/A			US$						6,008
			Ameren Corporation			-			〃			-			US$						5,973						N/A			US$						5,973
			Eaton Corporation			-			〃			-			US$						5,952						N/A			US$						5,952
			Huntington Bancshares Incorporated			-			〃			-			US$						5,889						N/A			US$						5,889
			Intercontinental Exchange, Inc.			-			〃			-			US$						5,794						N/A			US$						5,794
			Exxon Mobil Corporation			-			〃			-			US$						5,769						N/A			US$						5,769
			Elevance Health, Inc.			-			〃			-			US$						5,737						N/A			US$						5,737
			ERAC USA Finance LLC			-			〃			-			US$						5,575						N/A			US$						5,575
			Scentre Group Trust 1			-			〃			-			US$						5,559						N/A			US$						5,559
			Anheuser-Busch Companies, LLC			-			〃			-			US$						5,540						N/A			US$						5,540
			WPP Finance 2010			-			〃			-			US$						5,490						N/A			US$						5,490
			NBN Co Limited			-			〃			-			US$						5,356						N/A			US$						5,356
			Medtronic Global Holdings S.C.A.			-			〃			-			US$						5,342						N/A			US$						5,342
			Discover Bank (New Castle, Delaware)			-			〃			-			US$						5,294						N/A			US$						5,294
			Fox Corporation			-			〃			-			US$						5,274						N/A			US$						5,274
			Alabama Power Company			-			〃			-			US$						5,246						N/A			US$						5,246
			Comcast Corporation			-			〃			-			US$						5,182						N/A			US$						5,182
			NiSource Inc.			-			〃			-			US$						5,144						N/A			US$						5,144
			CNH Industrial Capital LLC			-			〃			-			US$						5,115						N/A			US$						5,115
			McKesson Corporation			-			〃			-			US$						5,090						N/A			US$						5,090
			Sydney Airport Finance Company Pty Ltd			-			〃			-			US$						5,056						N/A			US$						5,056
			Lincoln National Corporation			-			〃			-			US$						4,931						N/A			US$						4,931
			Ventas Realty, Limited Partnership			-			〃			-			US$						4,925						N/A			US$						4,925
			Siemens Financieringsmaatschappij N.V.			-			〃			-			US$						4,904						N/A			US$						4,904
			Virginia Electric and Power Company			-			〃			-			US$						4,896						N/A			US$						4,896
			Southwest Airlines Co.			-			〃			-			US$						4,856						N/A			US$						4,856
			CGI Inc.			-			〃			-			US$						4,695						N/A			US$						4,695
			Huntington National Bank			-			〃			-			US$						4,666						N/A			US$						4,666
			Brookfield Finance Inc.			-			〃			-			US$						4,591						N/A			US$						4,591
			HEICO Corporation			-			〃			-			US$						4,559						N/A			US$						4,559
			Bristol-Myers Squibb Company			-			〃			-			US$						4,550						N/A			US$						4,550
			ANZ New Zealand (Int'l) Limited			-			〃			-			US$						4,536						N/A			US$						4,536
			HP Inc.			-			〃			-			US$						4,469						N/A			US$						4,469
			Pioneer Natural Resources Company			-			〃			-			US$						4,456						N/A			US$						4,456
			Nutrien Ltd.			-			〃			-			US$						4,394						N/A			US$						4,394
			W. P. Carey Inc.			-			〃			-			US$						4,371						N/A			US$						4,371
			CenterPoint Energy, Inc.			-			〃			-			US$						4,367						N/A			US$						4,367
			Otis Worldwide Corporation			-			〃			-			US$						4,305						N/A			US$						4,305
			ITC Holdings Corp.			-			〃			-			US$						4,264						N/A			US$						4,264
			Skandinaviska Enskilda Banken AB (publ)			-			〃			-			US$						4,216						N/A			US$						4,216
			Citizens Bank, National Association			-			〃			-			US$						4,192						N/A			US$						4,192
			Brighthouse Financial Global Funding			-			〃			-			US$						4,172						N/A			US$						4,172
			Toyota Motor Credit Corporation			-			〃			-			US$						4,167						N/A			US$						4,167

(Continued)

- 60 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Dollar General Corporation			-			Financial assets at fair value through other comprehensive income			-			US$						4,039						N/A			US$						4,039
			F&G Global Funding			-			〃			-			US$						4,036						N/A			US$						4,036
			Korea Electric Power Corporation			-			〃			-			US$						3,968						N/A			US$						3,968
			Element Fleet Management Corp.			-			〃			-			US$						3,941						N/A			US$						3,941
			Monongahela Power Company			-			〃			-			US$						3,918						N/A			US$						3,918
			CNO Global Funding			-			〃			-			US$						3,852						N/A			US$						3,852
			Schlumberger Investment SA			-			〃			-			US$						3,846						N/A			US$						3,846
			AvalonBay Communities, Inc.			-			〃			-			US$						3,829						N/A			US$						3,829
			Stryker Corporation			-			〃			-			US$						3,768						N/A			US$						3,768
			Public Storage			-			〃			-			US$						3,735						N/A			US$						3,735
			Walmart Inc.			-			〃			-			US$						3,708						N/A			US$						3,708
			B.A.T. International Finance p.l.c.			-			〃			-			US$						3,672						N/A			US$						3,672
			Appalachian Power Company			-			〃			-			US$						3,590						N/A			US$						3,590
			Norsk Hydro ASA			-			〃			-			US$						3,582						N/A			US$						3,582
			Fortinet, Inc.			-			〃			-			US$						3,563						N/A			US$						3,563
			AutoZone, Inc.			-			〃			-			US$						3,560						N/A			US$						3,560
			The Israel Electric Corporation Ltd			-			〃			-			US$						3,548						N/A			US$						3,548
			V.F. Corporation			-			〃			-			US$						3,505						N/A			US$						3,505
			Jackson National Life Global Funding			-			〃			-			US$						3,486						N/A			US$						3,486
			GA Global Funding Trust			-			〃			-			US$						3,470						N/A			US$						3,470
			DNB Bank ASA			-			〃			-			US$						3,453						N/A			US$						3,453
			Eversource Energy			-			〃			-			US$						3,450						N/A			US$						3,450
			Parker-Hannifin Corporation			-			〃			-			US$						3,434						N/A			US$						3,434
			CenterPoint Energy Resources Corp.			-			〃			-			US$						3,399						N/A			US$						3,399
			BorgWarner Inc.			-			〃			-			US$						3,368						N/A			US$						3,368
			Baxter International Inc.			-			〃			-			US$						3,365						N/A			US$						3,365
			Sempra			-			〃			-			US$						3,342						N/A			US$						3,342
			Morgan Stanley Bank, N.A.			-			〃			-			US$						3,334						N/A			US$						3,334
			Kimco Realty Corporation			-			〃			-			US$						3,319						N/A			US$						3,319
			Meta Platforms, Inc.			-			〃			-			US$						3,301						N/A			US$						3,301
			B.A.T Capital Corporation			-			〃			-			US$						3,246						N/A			US$						3,246
			Ross Stores, Inc.			-			〃			-			US$						3,225						N/A			US$						3,225
			Advocate Health & Hospitals Corporation			-			〃			-			US$						3,216						N/A			US$						3,216
			Pfizer Inc.			-			〃			-			US$						3,209						N/A			US$						3,209
			Highmark Inc.			-			〃			-			US$						3,192						N/A			US$						3,192
			Verisk Analytics, Inc.			-			〃			-			US$						3,150						N/A			US$						3,150
			Realty Income Corporation			-			〃			-			US$						3,126						N/A			US$						3,126
			Truist Bank			-			〃			-			US$						3,101						N/A			US$						3,101
			ONE Gas, Inc.			-			〃			-			US$						3,041						N/A			US$						3,041
			Wells Fargo Bank, National Association			-			〃			-			US$						3,026						N/A			US$						3,026
			Corebridge Financial, Inc.			-			〃			-			US$						3,003						N/A			US$						3,003
			Lundin Energy Finance BV			-			〃			-			US$						2,994						N/A			US$						2,994
			EIDP, Inc.			-			〃			-			US$						2,988						N/A			US$						2,988
			Mutual Of Omaha Companies Global Funding			-			〃			-			US$						2,965						N/A			US$						2,965
			CNA Financial Corporation			-			〃			-			US$						2,963						N/A			US$						2,963
			CMS Energy Corporation			-			〃			-			US$						2,947						N/A			US$						2,947
			Coca-Cola Europacific Partners PLC			-			〃			-			US$						2,944						N/A			US$						2,944
			Atmos Energy Corporation			-			〃			-			US$						2,902						N/A			US$						2,902
			Nestlé Holdings, Inc.			-			〃			-			US$						2,894						N/A			US$						2,894

(Continued)

- 61 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Johnson & Johnson			-			Financial assets at fair value through other comprehensive income			-			US$						2,891						N/A			US$						2,891
			Prologis, L.P.			-			〃			-			US$						2,854						N/A			US$						2,854
			Xcel Energy Inc.			-			〃			-			US$						2,832						N/A			US$						2,832
			Southern California Gas Company			-			〃			-			US$						2,827						N/A			US$						2,827
			Rio Tinto Finance (USA) Limited			-			〃			-			US$						2,816						N/A			US$						2,816
			7-Eleven, Inc.			-			〃			-			US$						2,782						N/A			US$						2,782
			Diageo Capital plc			-			〃			-			US$						2,775						N/A			US$						2,775
			BHP Billiton Finance (USA) Limited			-			〃			-			US$						2,772						N/A			US$						2,772
			Canadian Imperial Bank of Commerce			-			〃			-			US$						2,763						N/A			US$						2,763
			Baxalta Incorporated			-			〃			-			US$						2,710						N/A			US$						2,710
			Novartis Capital Corporation			-			〃			-			US$						2,705						N/A			US$						2,705
			Dominion Energy, Inc.			-			〃			-			US$						2,688						N/A			US$						2,688
			Weyerhaeuser Company			-			〃			-			US$						2,631						N/A			US$						2,631
			Oncor Electric Delivery Company LLC			-			〃			-			US$						2,615						N/A			US$						2,615
			Eastern Energy Gas Holdings, LLC			-			〃			-			US$						2,601						N/A			US$						2,601
			Chevron Phillips Chemical Company LLC			-			〃			-			US$						2,571						N/A			US$						2,571
			National Australia Bank Limited, New York Branch			-			〃			-			US$						2,543						N/A			US$						2,543
			Black Hills Corporation			-			〃			-			US$						2,540						N/A			US$						2,540
			Avangrid, Inc.			-			〃			-			US$						2,536						N/A			US$						2,536
			Simon Property Group, L.P.			-			〃			-			US$						2,533						N/A			US$						2,533
			The Estée Lauder Companies Inc.			-			〃			-			US$						2,509						N/A			US$						2,509
			Bank of New Zealand			-			〃			-			US$						2,506						N/A			US$						2,506
			Masco Corporation			-			〃			-			US$						2,489						N/A			US$						2,489
			The Southern Company			-			〃			-			US$						2,464						N/A			US$						2,464
			Santander UK plc			-			〃			-			US$						2,440						N/A			US$						2,440
			Air Products and Chemicals, Inc.			-			〃			-			US$						2,433						N/A			US$						2,433
			Nuveen Finance, LLC			-			〃			-			US$						2,426						N/A			US$						2,426
			American Electric Power Company, Inc.			-			〃			-			US$						2,369						N/A			US$						2,369
			CRH America, Inc.			-			〃			-			US$						2,368						N/A			US$						2,368
			Bayer US Finance II LLC			-			〃			-			US$						2,357						N/A			US$						2,357
			Swedbank AB (publ)			-			〃			-			US$						2,321						N/A			US$						2,321
			Workday, Inc.			-			〃			-			US$						2,317						N/A			US$						2,317
			USAA Capital Corp.			-			〃			-			US$						2,303						N/A			US$						2,303
			Texas Instruments Incorporated			-			〃			-			US$						2,299						N/A			US$						2,299
			Chevron U.S.A. Inc.			-			〃			-			US$						2,290						N/A			US$						2,290
			Air Lease Corporation			-			〃			-			US$						2,282						N/A			US$						2,282
			Magellan Midstream Partners, L.P.			-			〃			-			US$						2,273						N/A			US$						2,273
			Yara International ASA			-			〃			-			US$						2,262						N/A			US$						2,262
			Mitsubishi HC Capital Inc.			-			〃			-			US$						2,212						N/A			US$						2,212
			RGA Global Funding			-			〃			-			US$						2,196						N/A			US$						2,196
			Cardinal Health, Inc.			-			〃			-			US$						2,194						N/A			US$						2,194
			GE HealthCare Technologies Inc.			-			〃			-			US$						2,193						N/A			US$						2,193
			Empower Finance 2020, LP			-			〃			-			US$						2,177						N/A			US$						2,177
			Sprint Spectrum Co Llc			-			〃			-			US$						2,169						N/A			US$						2,169
			The Western Union Company			-			〃			-			US$						2,130						N/A			US$						2,130
			Georgia-Pacific LLC			-			〃			-			US$						2,107						N/A			US$						2,107
			Health Care Service Corporation, a Mutual Legal Reserve Company			-			〃			-			US$						2,073						N/A			US$						2,073
			American Honda Finance Corporation			-			〃			-			US$						2,030						N/A			US$						2,030

(Continued)

- 62 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Phillips 66			-			Financial assets at fair value through other comprehensive income			-			US$						2,004						N/A			US$						2,004
			Bank of America, National Association			-			〃			-			US$						1,984						N/A			US$						1,984
			Pricoa Global Funding I			-			〃			-			US$						1,967						N/A			US$						1,967
			KODIT Global 2023-1 Co., Ltd.			-			〃			-			US$						1,961						N/A			US$						1,961
			Magna International Inc.			-			〃			-			US$						1,935						N/A			US$						1,935
			Mead Johnson Nutrition Company			-			〃			-			US$						1,934						N/A			US$						1,934
			Public Service Electric and Gas Company			-			〃			-			US$						1,930						N/A			US$						1,930
			Tucson Electric Power Company			-			〃			-			US$						1,920						N/A			US$						1,920
			UBS Group Funding (Jersey) Ltd.			-			〃			-			US$						1,898						N/A			US$						1,898
			Public Service Enterprise Group Incorporated			-			〃			-			US$						1,890						N/A			US$						1,890
			Ameriprise Financial, Inc.			-			〃			-			US$						1,887						N/A			US$						1,887
			National Rural Utilities Cooperative Finance Corporation			-			〃			-			US$						1,885						N/A			US$						1,885
			Welltower Inc.			-			〃			-			US$						1,877						N/A			US$						1,877
			Marriott International, Inc.			-			〃			-			US$						1,868						N/A			US$						1,868
			Olympus Corporation			-			〃			-			US$						1,863						N/A			US$						1,863
			Gulf Power Company			-			〃			-			US$						1,848						N/A			US$						1,848
			Marsh & McLennan Companies, Inc.			-			〃			-			US$						1,843						N/A			US$						1,843
			CSX Corporation			-			〃			-			US$						1,839						N/A			US$						1,839
			Shinhan Financial Group Co., Ltd.			-			〃			-			US$						1,810						N/A			US$						1,810
			NBK SPC Limited			-			〃			-			US$						1,773						N/A			US$						1,773
			Mitsubishi Corporation			-			〃			-			US$						1,768						N/A			US$						1,768
			Caterpillar Financial Services Corporation			-			〃			-			US$						1,764						N/A			US$						1,764
			Berkshire Hathaway Energy Company			-			〃			-			US$						1,744						N/A			US$						1,744
			Citibank, N.A.			-			〃			-			US$						1,743						N/A			US$						1,743
			Kentucky Utilities Company			-			〃			-			US$						1,718						N/A			US$						1,718
			CenterPoint Energy Houston Electric, LLC			-			〃			-			US$						1,712						N/A			US$						1,712
			Mondelez International, Inc.			-			〃			-			US$						1,692						N/A			US$						1,692
			SMBC Aviation Capital Finance DAC			-			〃			-			US$						1,691						N/A			US$						1,691
			Enbridge Inc.			-			〃			-			US$						1,687						N/A			US$						1,687
			DTE Energy Company			-			〃			-			US$						1,660						N/A			US$						1,660
			Evergy Kansas Central, Inc.			-			〃			-			US$						1,657						N/A			US$						1,657
			University of California			-			〃			-			US$						1,600						N/A			US$						1,600
			Gulfstream Natural Gas System, L.L.C.			-			〃			-			US$						1,572						N/A			US$						1,572
			CSL Finance plc			-			〃			-			US$						1,552						N/A			US$						1,552
			Burlington Northern Santa Fe, LLC			-			〃			-			US$						1,547						N/A			US$						1,547
			eBay Inc.			-			〃			-			US$						1,544						N/A			US$						1,544
			Emerson Electric Co.			-			〃			-			US$						1,525						N/A			US$						1,525
			Glencore Funding LLC			-			〃			-			US$						1,519						N/A			US$						1,519
			Westpac Banking Corporation			-			〃			-			US$						1,516						N/A			US$						1,516
			International Business Machines Corporation			-			〃			-			US$						1,508						N/A			US$						1,508
			APA Infrastructure Limited			-			〃			-			US$						1,490						N/A			US$						1,490
			Duke Energy Corporation			-			〃			-			US$						1,482						N/A			US$						1,482
			Jefferies Financial Group Inc.			-			〃			-			US$						1,476						N/A			US$						1,476
			Zoetis Inc.			-			〃			-			US$						1,464						N/A			US$						1,464
			Kinder Morgan, Inc.			-			〃			-			US$						1,452						N/A			US$						1,452
			Microchip Technology Incorporated			-			〃			-			US$						1,450						N/A			US$						1,450
			Amcor Flexibles North America Inc.			-			〃			-			US$						1,448						N/A			US$						1,448
			Phillips 66 Company			-			〃			-			US$						1,445						N/A			US$						1,445
			Commonwealth Bank of Australia			-			〃			-			US$						1,432						N/A			US$						1,432

(Continued)

- 63 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Wipro IT Services LLC			-			Financial assets at fair value through other comprehensive income			-			US$						1,429						N/A			US$						1,429
			NSTAR Electric Company			-			〃			-			US$						1,425						N/A			US$						1,425
			Essex Portfolio, L.P.			-			〃			-			US$						1,407						N/A			US$						1,407
			Duke Energy Florida, LLC			-			〃			-			US$						1,402						N/A			US$						1,402
			Alimentation Couche-Tard Inc.			-			〃			-			US$						1,383						N/A			US$						1,383
			Alliant Energy Finance, LLC			-			〃			-			US$						1,345						N/A			US$						1,345
			The Cigna Group			-			〃			-			US$						1,311						N/A			US$						1,311
			Eastern Gas Transmission and Storage, Inc.			-			〃			-			US$						1,300						N/A			US$						1,300
			BOC Aviation Limited			-			〃			-			US$						1,264						N/A			US$						1,264
			American International Group, Inc.			-			〃			-			US$						1,239						N/A			US$						1,239
			The Williams Companies, Inc.			-			〃			-			US$						1,220						N/A			US$						1,220
			Andrew W. Mellon Foundation, The			-			〃			-			US$						1,207						N/A			US$						1,207
			Union Pacific Corporation			-			〃			-			US$						1,186						N/A			US$						1,186
			Ecolab Inc.			-			〃			-			US$						1,162						N/A			US$						1,162
			Reliance Standard Life Global Funding II			-			〃			-			US$						1,082						N/A			US$						1,082
			Mondelez International Holdings Netherlands B.V.			-			〃			-			US$						1,075						N/A			US$						1,075
			Ferguson Finance PLC			-			〃			-			US$						1,073						N/A			US$						1,073
			Nucor Corporation			-			〃			-			US$						1,055						N/A			US$						1,055
			State Street Corporation			-			〃			-			US$						1,036						N/A			US$						1,036
			Enterprise Products Operating LLC			-			〃			-			US$						1,008						N/A			US$						1,008
			AIB Group plc			-			〃			-			US$						1,003						N/A			US$						1,003
			Scottish Power Limited			-			〃			-			US$						997						N/A			US$						997
			Sabine Pass Liquefaction, LLC			-			〃			-			US$						996						N/A			US$						996
			New York State Electric & Gas Corporation			-			〃			-			US$						986						N/A			US$						986
			Lennox International Inc.			-			〃			-			US$						980						N/A			US$						980
			Suntory Holdings Limited			-			〃			-			US$						960						N/A			US$						960
			AIA Group Limited			-			〃			-			US$						936						N/A			US$						936
			Canadian Pacific Railway Company			-			〃			-			US$						936						N/A			US$						936
			LYB Finance Company B.V.			-			〃			-			US$						926						N/A			US$						926
			Juniper Networks, Inc.			-			〃			-			US$						901						N/A			US$						901
			Amcor Finance (USA), Inc.			-			〃			-			US$						894						N/A			US$						894
			Lennar Corporation			-			〃			-			US$						890						N/A			US$						890
			The Sherwin-Williams Company			-			〃			-			US$						890						N/A			US$						890
			T-Mobile USA, Inc.			-			〃			-			US$						886						N/A			US$						886
			Piedmont Natural Gas Company, Inc.			-			〃			-			US$						884						N/A			US$						884
			Unilever Capital Corporation			-			〃			-			US$						884						N/A			US$						884
			AEP Texas Inc.			-			〃			-			US$						875						N/A			US$						875
			Reynolds American Inc.			-			〃			-			US$						874						N/A			US$						874
			The Interpublic Group of Companies, Inc.			-			〃			-			US$						868						N/A			US$						868
			Harcourt General, Inc.			-			〃			-			US$						866						N/A			US$						866
			Kenvue Inc.			-			〃			-			US$						847						N/A			US$						847
			Hormel Foods Corporation			-			〃			-			US$						841						N/A			US$						841
			County of Palm Beach, Florida			-			〃			-			US$						810						N/A			US$						810
			TransCanada PipeLines Limited			-			〃			-			US$						806						N/A			US$						806
			Niagara Mohawk Power Corporation			-			〃			-			US$						754						N/A			US$						754
			Veralto Corporation			-			〃			-			US$						746						N/A			US$						746
			CubeSmart, L.P.			-			〃			-			US$						742						N/A			US$						742
			Manufacturers and Traders Trust Company			-			〃			-			US$						735						N/A			US$						735
			BP Capital Markets America, Inc.			-			〃			-			US$						733						N/A			US$						733

(Continued)

- 64 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Sysco Corporation			-			Financial assets at fair value through other comprehensive income			-			US$						733						N/A			US$						733
			The Brooklyn Union Gas Company			-			〃			-			US$						731						N/A			US$						731
			Southern Power Company			-			〃			-			US$						730						N/A			US$						730
			Voya Financial, Inc.			-			〃			-			US$						727						N/A			US$						727
			Mars, Incorporated			-			〃			-			US$						724						N/A			US$						724
			Consolidated Edison Company of New York, Inc.			-			〃			-			US$						721						N/A			US$						721
			TELUS Corporation			-			〃			-			US$						720						N/A			US$						720
			PACCAR Financial Corp.			-			〃			-			US$						718						N/A			US$						718
			Oklahoma Gas and Electric Company			-			〃			-			US$						715						N/A			US$						715
			Waste Management, Inc.			-			〃			-			US$						713						N/A			US$						713
			Visa Inc.			-			〃			-			US$						711						N/A			US$						711
			Sky Limited			-			〃			-			US$						686						N/A			US$						686
			Hyundai Capital Services, Inc.			-			〃			-			US$						671						N/A			US$						671
			QNB Finance Ltd.			-			〃			-			US$						663						N/A			US$						663
			The Allstate Corporation			-			〃			-			US$						655						N/A			US$						655
			Sodexo, Inc.			-			〃			-			US$						651						N/A			US$						651
			Bell Canada, Inc.			-			〃			-			US$						634						N/A			US$						634
			Automatic Data Processing, Inc.			-			〃			-			US$						619						N/A			US$						619
			MetLife, Inc.			-			〃			-			US$						593						N/A			US$						593
			L3Harris Technologies, Inc.			-			〃			-			US$						590						N/A			US$						590
			Burlington Resources Inc.			-			〃			-			US$						588						N/A			US$						588
			Florida Hurricane Catastrophe Fund Finance Corporation			-			〃			-			US$						580						N/A			US$						580
			Infor, Inc.			-			〃			-			US$						573						N/A			US$						573
			Starbucks Corporation			-			〃			-			US$						572						N/A			US$						572
			American Water Capital Corp.			-			〃			-			US$						555						N/A			US$						555
			Columbia Pipelines Holding Company, LLC			-			〃			-			US$						547						N/A			US$						547
			Shell International Finance B.V.			-			〃			-			US$						529						N/A			US$						529
			Columbia Pipelines Operating Co. LLC			-			〃			-			US$						512						N/A			US$						512
			Intesa Sanpaolo S.p.A.			-			〃			-			US$						505						N/A			US$						505
			ConocoPhillips Company			-			〃			-			US$						502						N/A			US$						502
			State of Hawaii			-			〃			-			US$						502						N/A			US$						502
			Arizona Public Service Company			-			〃			-			US$						498						N/A			US$						498
			Mississippi Power Company			-			〃			-			US$						487						N/A			US$						487
			MassMutual Global Funding II			-			〃			-			US$						486						N/A			US$						486
			Westpac New Zealand Limited			-			〃			-			US$						481						N/A			US$						481
			Haleon UK Capital plc			-			〃			-			US$						479						N/A			US$						479
			Trane Technologies Luxembourg Finance S.A.			-			〃			-			US$						474						N/A			US$						474
			Deutsche Telekom International Finance B.V.			-			〃			-			US$						472						N/A			US$						472
			Genuine Parts Company			-			〃			-			US$						471						N/A			US$						471
			Altria Group, Inc.			-			〃			-			US$						467						N/A			US$						467
			McCormick & Company, Incorporated			-			〃			-			US$						461						N/A			US$						461
			Tyson Foods, Inc.			-			〃			-			US$						442						N/A			US$						442
			DENSO Corporation			-			〃			-			US$						440						N/A			US$						440
			Gilead Sciences, Inc.			-			〃			-			US$						438						N/A			US$						438
			Brazos Higher Education Authority Inc			-			〃			-			US$						434						N/A			US$						434
			Pernod Ricard International Finance LLC			-			〃			-			US$						415						N/A			US$						415
			Aker BP ASA			-			〃			-			US$						414						N/A			US$						414
			Target Corporation			-			〃			-			US$						404						N/A			US$						404
			National Australia Bank Limited			-			〃			-			US$						403						N/A			US$						403

(Continued)

- 65 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			The Home Depot, Inc.			-			Financial assets at fair value through other comprehensive income			-			US$						402						N/A			US$						402
			Entergy Corporation			-			〃			-			US$						385						N/A			US$						385
			University of Massachusetts Building Authority			-			〃			-			US$						384						N/A			US$						384
			Banco del Estado de Chile			-			〃			-			US$						383						N/A			US$						383
			Aflac Incorporated			-			〃			-			US$						380						N/A			US$						380
			GlaxoSmithKline Capital Inc.			-			〃			-			US$						378						N/A			US$						378
			Oregon Health & Science University			-			〃			-			US$						370						N/A			US$						370
			Sierra Pacific Power Company			-			〃			-			US$						370						N/A			US$						370
			PepsiCo, Inc.			-			〃			-			US$						358						N/A			US$						358
			Cargill, Incorporated			-			〃			-			US$						351						N/A			US$						351
			The Norinchukin Bank			-			〃			-			US$						350						N/A			US$						350
			RTX Corporation			-			〃			-			US$						320						N/A			US$						320
			The Walt Disney Company			-			〃			-			US$						308						N/A			US$						308
			Mid-America Apartments, L.P.			-			〃			-			US$						299						N/A			US$						299
			Electricité de France S.A.			-			〃			-			US$						293						N/A			US$						293
			Consumers Energy Company			-			〃			-			US$						292						N/A			US$						292
			Salesforce, Inc.			-			〃			-			US$						288						N/A			US$						288
			Aptiv PLC			-			〃			-			US$						285						N/A			US$						285
			National Grid plc			-			〃			-			US$						276						N/A			US$						276
			Nordson Corporation			-			〃			-			US$						272						N/A			US$						272
			Barclays Bank PLC			-			〃			-			US$						271						N/A			US$						271
			QatarEnergy			-			〃			-			US$						267						N/A			US$						267
			NetApp, Inc.			-			〃			-			US$						257						N/A			US$						257
			Pennsylvania Electric Company			-			〃			-			US$						230						N/A			US$						230
			KBC Group NV			-			〃			-			US$						229						N/A			US$						229
			Children's Hospital Of Orange County			-			〃			-			US$						221						N/A			US$						221
			Riverside County Infrastructure Financing Authority			-			〃			-			US$						204						N/A			US$						204
			Marathon Petroleum Corporation			-			〃			-			US$						196						N/A			US$						196
			Hoover Alabama Board Of Education			-			〃			-			US$						103						N/A			US$						103
			Republic Services, Inc.			-			〃			-			US$						99						N/A			US$						99
			Beth Israel Deaconess Medical Center, Inc.			-			〃			-			US$						84						N/A			US$						84
			County of Pima, Arizona			-			〃			-			US$						78						N/A			US$						78
			Metropolitan Edison Company			-			〃			-			US$						78						N/A			US$						78
			State of Wisconsin			-			〃			-			US$						63						N/A			US$						63
			Aon Corporation			-			〃			-			US$						50						N/A			US$						50
			County of Nueces, Texas			-			〃			-			US$						25						N/A			US$						25
			Bank of America Corporation			-			Financial assets at amortized cost			-			US$						758,760						N/A			US$						746,945
			The Goldman Sachs Group, Inc.			-			〃			-			US$						614,148						N/A			US$						594,996
			Morgan Stanley			-			〃			-			US$						458,073						N/A			US$						451,022
			Wells Fargo & Company			-			〃			-			US$						457,149						N/A			US$						448,959
			JPMorgan Chase & Co.			-			〃			-			US$						374,897						N/A			US$						371,486
			Citigroup Global Markets Inc.			-			〃			-			US$						349,886						N/A			US$						348,143
			Citigroup Inc.			-			〃			-			US$						209,009						N/A			US$						208,348
			Citigroup Global Markets Holdings Inc.			-			〃			-			US$						149,951						N/A			US$						148,254
			Goldman Sachs Finance Corp International Ltd			-			〃			-			US$						149,857						N/A			US$						148,409
			Jpmorgan LLC			-			〃			-			US$						49,984						N/A			US$						49,674
			Nationwide Building Society			-			〃			-			US$						10,266						N/A			US$						9,972
			ING Groep N.V.			-			〃			-			US$						9,730						N/A			US$						9,665
			Daimler Trucks Finance North America LLC			-			〃			-			US$						9,630						N/A			US$						9,479

(Continued)

- 66 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Great-West Lifeco U.S. Finance 2020, Lp			-			Financial assets at amortized cost			-			US$						9,469						N/A			US$						9,140
			Mizuho Financial Group, Inc.			-			〃			-			US$						9,399						N/A			US$						9,320
			BNP Paribas SA			-			〃			-			US$						9,246						N/A			US$						9,131
			Fédération des caisses Desjardins du Québec			-			〃			-			US$						9,180						N/A			US$						8,904
			GA Global Funding Trust			-			〃			-			US$						9,174						N/A			US$						9,122
			Nomura Holdings, Inc.			-			〃			-			US$						9,166						N/A			US$						8,904
			UBS Group AG			-			〃			-			US$						9,155						N/A			US$						8,919
			Deutsche Bank AG - New York Branch			-			〃			-			US$						9,151						N/A			US$						9,042
			Athene Global Funding			-			〃			-			US$						9,087						N/A			US$						8,906
			NongHyup Bank			-			〃			-			US$						8,764						N/A			US$						8,595
			Svenska Handelsbanken AB (publ)			-			〃			-			US$						8,707						N/A			US$						8,657
			Canadian Imperial Bank of Commerce			-			〃			-			US$						8,610						N/A			US$						8,394
			Banque Fédérative du Crédit Mutuel Société anonyme			-			〃			-			US$						8,426						N/A			US$						8,256
			Banco Santander, S.A.			-			〃			-			US$						8,302						N/A			US$						8,113
			Ventas Realty, Limited Partnership			-			〃			-			US$						8,253						N/A			US$						8,075
			Enel Finance International N.V.			-			〃			-			US$						8,241						N/A			US$						8,058
			Volkswagen Group of America Finance, LLC			-			〃			-			US$						8,040						N/A			US$						7,929
			Protective Life Global Funding			-			〃			-			US$						7,960						N/A			US$						7,753
			CRH America, Inc.			-			〃			-			US$						7,942						N/A			US$						7,744
			Mercedes-Benz Finance North America LLC			-			〃			-			US$						7,872						N/A			US$						7,828
			BPCE SA			-			〃			-			US$						7,832						N/A			US$						7,631
			Sydney Airport Finance Company Pty Ltd			-			〃			-			US$						7,702						N/A			US$						7,538
			Sumitomo Mitsui Financial Group, Inc.			-			〃			-			US$						7,474						N/A			US$						7,338
			AIG Global Funding			-			〃			-			US$						7,407						N/A			US$						7,235
			Banco Bilbao Vizcaya Argentaria, S.A.			-			〃			-			US$						6,976						N/A			US$						6,830
			Southern California Edison Company			-			〃			-			US$						5,899						N/A			US$						5,836
			F&G Global Funding			-			〃			-			US$						5,509						N/A			US$						5,358
			NatWest Markets Plc			-			〃			-			US$						5,498						N/A			US$						5,390
			Bayer US Finance II LLC			-			〃			-			US$						4,993						N/A			US$						4,978
			Hyundai Capital Services, Inc.			-			〃			-			US$						4,976						N/A			US$						4,863
			Ecolab Inc.			-			〃			-			US$						4,971						N/A			US$						4,949
			Jackson Financial Inc.			-			〃			-			US$						4,784						N/A			US$						4,772
			Bristol-Myers Squibb Company			-			〃			-			US$						4,777						N/A			US$						4,766
			Kinder Morgan, Inc.			-			〃			-			US$						4,636						N/A			US$						4,637
			Five Corners Funding Trust			-			〃			-			US$						4,395						N/A			US$						4,381
			QNB Finance Ltd.			-			〃			-			US$						4,390						N/A			US$						4,357
			Danone S.A.			-			〃			-			US$						4,191						N/A			US$						4,186
			Sumitomo Mitsui Trust Bank, Limited			-			〃			-			US$						4,158						N/A			US$						4,046
			Lloyds Banking Group plc			-			〃			-			US$						3,976						N/A			US$						3,883
			Mitsubishi UFJ Financial Group, Inc.			-			〃			-			US$						3,721						N/A			US$						3,650
			Enbridge Inc.			-			〃			-			US$						3,495						N/A			US$						3,497
			Jackson National Life Global Funding			-			〃			-			US$						3,340						N/A			US$						3,212
			ANZ New Zealand (Int'l) Limited			-			〃			-			US$						3,236						N/A			US$						3,156
			Scottish Power Limited			-			〃			-			US$						3,189						N/A			US$						3,174
			Spectra Energy Partners, LP			-			〃			-			US$						2,846						N/A			US$						2,772
			Ryder System, Inc.			-			〃			-			US$						2,555						N/A			US$						2,549
			National Bank of Canada			-			〃			-			US$						2,069						N/A			US$						2,056
			Georgia-Pacific LLC			-			〃			-			US$						1,245						N/A			US$						1,222
			Reliance Standard Life Global Funding II			-			〃			-			US$						1,077						N/A			US$						1,055
			Baxter International Inc.			-			〃			-			US$						800						N/A			US$						798

(Continued)

- 67 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Barclays Bank PLC			-			Financial assets at amortized cost			-			US$						742						N/A			US$						739
			AIA Group Limited			-			〃			-			US$						581						N/A			US$						579
			Abbott Laboratories			-			〃			-			US$						362						N/A			US$						360
			Agency mortgage-backed securities
			FEDERAL NATIONAL MORTGAGE ASSOCIATION			-			Financial assets at fair value through other comprehensive income			-			US$						583,615						N/A			US$						583,615
			Federal Home Loan Mortgage Corporation			-			〃			-			US$						334,400						N/A			US$						334,400
			Government National Mortgage Association			-			〃			-			US$						207,650						N/A			US$						207,650
			Government bond/Agency bonds
			United States Department of The Treasury			-			Financial assets at fair value through other comprehensive income			-			US$						734,376						N/A			US$						734,376
			Federal Home Loan Mortgage Corporation			-			〃			-			US$						9,962						N/A			US$						9,962
			FEDERAL NATIONAL MORTGAGE ASSOCIATION			-			〃			-			US$						1,049						N/A			US$						1,049
			Federal Home Loan Banks			-			Financial assets at amortized cost			-			US$						225,000						N/A			US$						222,749
			Federal Home Loan Mortgage Corporation			-			〃			-			US$						160,000						N/A			US$						159,118
			United States Department of The Treasury			-			〃			-			US$						88,885						N/A			US$						86,341
			Asset-backed securities
			JPMBB Commercial Mortgage Securities Trust 2014-C24			-			Financial assets at fair value through other comprehensive income			-			US$						9,711						N/A			US$						9,711
			Wells Fargo Commercial Mortgage Trust 2016-Bnk1			-			〃			-			US$						9,623						N/A			US$						9,623
			Toyota Auto Receivables 2022-B Owner Trust			-			〃			-			US$						9,592						N/A			US$						9,592
			Hyundai Auto Receivables Trust 2021-C			-			〃			-			US$						9,105						N/A			US$						9,105
			Gm Financial Consumer Automobile Receivables Trust 2023-3			-			〃			-			US$						8,870						N/A			US$						8,870
			Ford Credit Auto Owner Trust 2021-Rev2			-			〃			-			US$						7,402						N/A			US$						7,402
			Toyota Auto Loan Extended Note Trust 2023-1			-			〃			-			US$						7,090						N/A			US$						7,090
			Citigroup Commercial Mortgage Trust 2015-GC33			-			〃			-			US$						6,973						N/A			US$						6,973
			Ford Credit Auto Owner Trust 2020-REV2			-			〃			-			US$						6,689						N/A			US$						6,689
			Hyundai Auto Receivables Trust 2023-B			-			〃			-			US$						6,179						N/A			US$						6,179
			Morgan Stanley Capital I Trust 2021-L6			-			〃			-			US$						6,165						N/A			US$						6,165
			Morgan Stanley Bank America Merrill Lynch Trust 2016-C30			-			〃			-			US$						5,983						N/A			US$						5,983
			Honda Auto Receivables 2023-2 Owner Trust			-			〃			-			US$						5,919						N/A			US$						5,919
			BBCMS Mortgage Trust 2020-C8			-			〃			-			US$						5,859						N/A			US$						5,859
			Hudson Yards 2016-10HY Mortgage Trust			-			〃			-			US$						5,633						N/A			US$						5,633
			Benchmark 2019-B11 Mortgage Trust			-			〃			-			US$						5,559						N/A			US$						5,559
			Bank 2020-BNK26			-			〃			-			US$						5,508						N/A			US$						5,508
			Citigroup Commercial Mortgage Trust 2021-PRM2			-			〃			-			US$						5,474						N/A			US$						5,474
			Bank 2021-bnk33			-			〃			-			US$						5,150						N/A			US$						5,150
			Benchmark 2019-B12 Mortgage Trust			-			〃			-			US$						5,115						N/A			US$						5,115
			BBCMS 2018-Tall Mortgage Trust			-			〃			-			US$						5,087						N/A			US$						5,087
			Bank 2023-BNK46			-			〃			-			US$						5,044						N/A			US$						5,044
			Benchmark 2023-B39 Mortgage Trust			-			〃			-			US$						5,025						N/A			US$						5,025
			MSWF Commercial Mortgage Trust 2023-1			-			〃			-			US$						4,966						N/A			US$						4,966
			Wells Fargo Commercial Mortgage Trust 2016-C35			-			〃			-			US$						4,890						N/A			US$						4,890
			Bank 2017-Bnk6			-			〃			-			US$						4,807						N/A			US$						4,807
			CSAIL 2018-CX11			-			〃			-			US$						4,642						N/A			US$						4,642
			Wells Fargo Commercial Mortgage Trust 2021-C59			-			〃			-			US$						4,525						N/A			US$						4,525
			Morgan Stanley Capital I Trust 2016 - BNK2 Fund			-			〃			-			US$						4,505						N/A			US$						4,505
			GM Financial Revolving Receivables Trust 2021-1			-			〃			-			US$						4,387						N/A			US$						4,387

(Continued)

- 68 -

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Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			MRCD 2019-Prkc Mortgage Trust			-			Financial assets at fair value through other comprehensive income			-			US$						4,240						N/A			US$						4,240
			Citigroup Commercial Mortgage Trust 2014-GC21			-			〃			-			US$						4,197						N/A			US$						4,197
			Msbam 2016-C29			-			〃			-			US$						4,020						N/A			US$						4,020
			Bank 2017-BNK9			-			〃			-			US$						4,007						N/A			US$						4,007
			Benchmark 2023-V3 Mortgage Trust			-			〃			-			US$						3,953						N/A			US$						3,953
			Bank 2017 - BNK7			-			〃			-			US$						3,911						N/A			US$						3,911
			Five 2023-V1 Mortgage Trust			-			〃			-			US$						3,855						N/A			US$						3,855
			Honda Auto Receivables 2021 - 4 Owner Trust			-			〃			-			US$						3,754						N/A			US$						3,754
			JPMCC 2017-JP7			-			〃			-			US$						3,744						N/A			US$						3,744
			Bmw Vehicle Owner Trust 2023-A			-			〃			-			US$						3,584						N/A			US$						3,584
			BANK 2017-BNK5			-			〃			-			US$						3,381						N/A			US$						3,381
			Citigroup Commercial Mortgage Trust 2019-Gc43			-			〃			-			US$						3,046						N/A			US$						3,046
			Bank 2019-Bnk22			-			〃			-			US$						2,967						N/A			US$						2,967
			Commerce 2015-CCRE24 Mortgage Trust			-			〃			-			US$						2,941						N/A			US$						2,941
			Msbam 2016-C31			-			〃			-			US$						2,934						N/A			US$						2,934
			WFRBS Commercial Mortgage Trust 2014-C25			-			〃			-			US$						2,896						N/A			US$						2,896
			Sreit Commercial Mortgage Trust 2021-Mfp			-			〃			-			US$						2,845						N/A			US$						2,845
			Bmo 2023-C5 Mortgage Trust			-			〃			-			US$						2,695						N/A			US$						2,695
			Benchmark 2019-B15 Mortgage Trust			-			〃			-			US$						2,505						N/A			US$						2,505
			JPMDB 2017-C7			-			〃			-			US$						2,480						N/A			US$						2,480
			Toyota Auto Receivables 2023-C Owner Trust			-			〃			-			US$						2,474						N/A			US$						2,474
			DCENT_23-2			-			〃			-			US$						2,463						N/A			US$						2,463
			GS Mortgage Securities Trust 2015-GC32			-			〃			-			US$						2,437						N/A			US$						2,437
			Benchmark 2018-B3 Commercial Mortgage Trust			-			〃			-			US$						2,375						N/A			US$						2,375
			Ford Credit Auto Owner Trust 2020-Rev1			-			〃			-			US$						2,368						N/A			US$						2,368
			Citigroup Commercial Mortgage Trust 2016-C1			-			〃			-			US$						2,248						N/A			US$						2,248
			Citigroup Commercial Mortgage Trust 2015-P1			-			〃			-			US$						2,142						N/A			US$						2,142
			Mhc Commercial Mortgage Trust 2021-Mhc			-			〃			-			US$						2,083						N/A			US$						2,083
			Citigroup Commercial Mortgage Trust 2015-GC27			-			〃			-			US$						2,077						N/A			US$						2,077
			Wells Fargo Commercial Mortgage Trust 2020-C55			-			〃			-			US$						1,972						N/A			US$						1,972
			Ford Credit Auto Owner Trust 2023-A			-			〃			-			US$						1,959						N/A			US$						1,959
			Bank 2019-Bnk17			-			〃			-			US$						1,928						N/A			US$						1,928
			Benchmark 2018-B4 Mortgage Trust			-			〃			-			US$						1,879						N/A			US$						1,879
			Morgan Stanley Capital I Trust			-			〃			-			US$						1,809						N/A			US$						1,809
			Dolp Trust 2021-NYC			-			〃			-			US$						1,673						N/A			US$						1,673
			UBS Commercial Mortgage Trust 2018-C11			-			〃			-			US$						1,605						N/A			US$						1,605
			CGCMT 2017-P8 Mortgage Trust			-			〃			-			US$						1,588						N/A			US$						1,588
			Wells Fargo Commercial Mortgage Trust 2015-C30			-			〃			-			US$						1,548						N/A			US$						1,548
			Hyundai Auto Receivables Trust 2022-A			-			〃			-			US$						1,495						N/A			US$						1,495
			Honda Auto Receivables 2023-1 Owner Trust			-			〃			-			US$						1,491						N/A			US$						1,491
			JPMBB Commercial Mortgage Securities Trust 2015-C27			-			〃			-			US$						1,485						N/A			US$						1,485
			COMM 2020-CBM Mortgage Trust			-			〃			-			US$						1,452						N/A			US$						1,452
			Wells Fargo Commercial Mortgage Trust 2018-C44			-			〃			-			US$						1,338						N/A			US$						1,338
			Morgan Stanley Capital I Trust 2021-L5			-			〃			-			US$						1,270						N/A			US$						1,270
			Wells Fargo Commercial Mortgage Trust 2015-C29			-			〃			-			US$						1,223						N/A			US$						1,223
			Ford Credit Auto Owner Trust 2022-C			-			〃			-			US$						1,219						N/A			US$						1,219
			GM Financial Consumer Automobile Receivables Trust 2023-1			-			〃			-			US$						1,194						N/A			US$						1,194
			FORD CREDIT AUTO OWNER TRUST			-			〃			-			US$						1,083						N/A			US$						1,083
			Toyota Auto Receivables 2021-D Owner Trust			-			〃			-			US$						997						N/A			US$						997

(Continued)

- 69 -

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Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			American Express Credit Account Master Trust			-			Financial assets at fair value through other comprehensive income			-			US$						995						N/A			US$						995
			Ford Credit Auto Owner Trust 2022-B			-			〃			-			US$						994						N/A			US$						994
			JPMBB Commercial Mortgage Securities Trust 2015-C28			-			〃			-			US$						988						N/A			US$						988
			Morgan Stanley Capital I Trust 2015 - UBS8			-			〃			-			US$						939						N/A			US$						939
			Wells Fargo Commercial Mortgage Trust 2016-LC24			-			〃			-			US$						911						N/A			US$						911
			Commerce 2013-CCRE12 Mortgage Trust			-			〃			-			US$						880						N/A			US$						880
			Ford Credit Auto Owner Trust 2022-A			-			〃			-			US$						870						N/A			US$						870
			Bank 2023-Bnk45			-			〃			-			US$						830						N/A			US$						830
			Nissan Auto Receivables 2023-A Owner Trust			-			〃			-			US$						818						N/A			US$						818
			Benchmark 2021-B24 Mortgage Trust			-			〃			-			US$						778						N/A			US$						778
			COMM Mortgage Trust Series 2015-LC19			-			〃			-			US$						767						N/A			US$						767
			Honda Auto Receivables 2022-2 Owner Trust			-			〃			-			US$						721						N/A			US$						721
			Citigroup Commercial Mortgage Trust 2015-GC35			-			〃			-			US$						670						N/A			US$						670
			Wells Fargo Commercial Mortgage Trust 2017-C40			-			〃			-			US$						637						N/A			US$						637
			Honda Auto Receivables 2021-2 Owner Trust			-			〃			-			US$						592						N/A			US$						592
			JPMCC Commercial Mortgage Securities Trust 2016 - JP3			-			〃			-			US$						592						N/A			US$						592
			JPMBB Commercial Mortgage Securities Trust 2016-C1			-			〃			-			US$						563						N/A			US$						563
			Wells Fargo Commercial Mortgage Trust 2015-C28			-			〃			-			US$						521						N/A			US$						521
			Citigroup Commercial Mortgage Trust 2018-C5			-			〃			-			US$						436						N/A			US$						436
			Toyota Auto Receivables 2021-C Owner Trust			-			〃			-			US$						379						N/A			US$						379
			Benchmark 2019-B14 Mortgage Trust			-			〃			-			US$						325						N/A			US$						325
			WFRBS Commercial Mortgage Trust 2013-UBS1			-			〃			-			US$						315						N/A			US$						315
			UBS Commercial Mortgage Trust 2018-C10			-			〃			-			US$						297						N/A			US$						297
			Wells Fargo Commercial Mortgage Trust 2015-NXS3			-			〃			-			US$						282						N/A			US$						282
			Bank 2019-BNK23			-			〃			-			US$						250						N/A			US$						250
			Morgan Stanley Capital I Trust 2019-H6			-			〃			-			US$						232						N/A			US$						232
			GS Mortgage Securities Trust 2014-GC24			-			〃			-			US$						227						N/A			US$						227
			JPMCC 2015 - JP1			-			〃			-			US$						197						N/A			US$						197
			GS Mortgage Securities Trust 2014-GC22			-			〃			-			US$						191						N/A			US$						191
			COMM 2015-CCRE22 Mortgage Trust			-			〃			-			US$						188						N/A			US$						188
			Morgan Stanley Capital I Trust 2019-H7			-			〃			-			US$						179						N/A			US$						179
			JPMDB Commercial Mortgage Securities Trust 2019-COR6			-			〃			-			US$						145						N/A			US$						145
			Citigroup Commercial Mortgage Trust 2014-GC23			-			〃			-			US$						134						N/A			US$						134
			Commerce 2014-Ccre17 Mortgage Trust			-			〃			-			US$						129						N/A			US$						129
			CF 2019-CF1 Mortgage Trust			-			〃			-			US$						124						N/A			US$						124
			Wells Fargo Commercial Mortgage Trust 2015-LC20			-			〃			-			US$						122						N/A			US$						122
			Morgan Stanley Capital I Trust 2018-H3			-			〃			-			US$						103						N/A			US$						103
			GS Mortgage Securities Trust 2014-GC26			-			〃			-			US$						88						N/A			US$						88
			BBCMS Mortgage Trust 2020-C7			-			〃			-			US$						47						N/A			US$						47
			Citigroup Commercial Mortgage Trust 2014-GC19			-			〃			-			US$						13						N/A			US$						13
			Non-publicly traded equity investments
			Primavera Capital Fund II L.P.			-			Financial assets at fair value through other comprehensive income			-			US$						90,518						4			US$						90,518
VTAF II			Non-publicly traded equity investments
			Aether Systems, Inc.			-			Financial assets at fair value through other comprehensive income			1,085						-									20						-
			5V Technologies, Inc.			-			〃			1						-									-						-
			Publicly traded stocks
			Sentelic Corporation			-			Financial assets at fair value through other comprehensive income			971			US$						2,200						3			US$						2,200

(Continued)

- 70 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			September 30, 2023																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
VTAF III			Non-publicly traded equity investments
			LiquidLeds Lighting Corp.			-			Financial assets at fair value through other comprehensive income						1,952						US$						800									14						US$						800
			Neoconix, Inc.			-			〃						4,147						US$						174									-						US$						174
Emerging Fund			Convertible bonds
			Movandi Corporation			-			Financial assets at fair value through Profit or Loss						-						US$						4,118									N/A						US$						4,118
			Encharge AI, Inc.			-			〃						-						US$						3,039									N/A						US$						3,039
			Non-publicly traded equity investments
			Astera Labs, Inc.			-			Financial assets at fair value through other comprehensive income						1,487						US$						9,680									-						US$						9,680
			Ayar Labs, Inc.			-			〃						345						US$						5,000									1						US$						5,000
			Empower Semiconductor, Inc.			-			〃						868						US$						5,000									3						US$						5,000
			Ethernovia Inc.			-			〃						1,021						US$						5,000									3						US$						5,000
			Lyte AI, Inc.			-			〃						1,128						US$						5,000									4						US$						5,000
			EdgeQ, Inc.			-			〃						1,176						US$						4,771									2						US$						4,771
			SiMa Technologies, Inc.			-			〃						564						US$						4,000									1						US$						4,000
			NeuReality Ltd.			-			〃						122						US$						3,194									2						US$						3,194
			Kinara, Inc.			-			〃						2,015						US$						3,000									2						US$						3,000
			xMEMS Labs, Inc.			-			〃						3,000						US$						3,000									3						US$						3,000
			RiVos, Inc.			-			〃						1,430						US$						2,833									1						US$						2,833
			Publicly traded stocks
			Credo Technology Group Holding Ltd			-			Financial assets at fair value through other comprehensive income						135						US$						2,055									-						US$						2,055
Growth Fund			Non-publicly traded equity investments
			Astera Labs, Inc.			-			Financial assets at fair value through other comprehensive income						637						US$						4,146									-						US$						4,146
			CNEX Labs, Inc.			-			〃						33						US$						133									-						US$						133
			Publicly traded stocks
			Marvell Technology Group Ltd.			-			Financial assets at fair value through other comprehensive income						30						US$						1,603									-						US$						1,603

(Concluded)

- 71 -

---

TABLE 4

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company Name			Marketable Securities Type and Name			Financial Statement Account			Counterparty			Nature of Relationship			Beginning Balance																								Acquisition																								Disposal																																																						Ending Balance (Note 1)
															Shares/Units (In Thousands)									Amount (Foreign Currencies in Thousands)															Shares/Units (In Thousands)									Amount (Foreign Currencies in Thousands)															Shares/Units (In Thousands)									Amount (Foreign Currencies in Thousands)															Carrying Value (Foreign Currencies in Thousands)															Gain/Loss on Disposal (Foreign Currencies in Thousands)															Shares/Units (In Thousands)									Amount (Foreign Currencies in Thousands)
TSMC			Non-publicly traded equity   investments
			TSMC Arizona			Investments accounted for using equity method			-			-						1,270						$	25,639,079																	3,130						$	96,782,910																	-						$						-									$						-									$						-												4,400						$	119,394,567
			JASM			〃			-			-						1,020									23,330,125															1,249									28,062,957															-									-															-															-															2,269									47,543,240
			Emerging Fund			〃			-			-						-									1,760,885															-									641,536															-									-															198,287															-															-									2,130,468
			Commercial paper
			Nan Ya Plastics Corporation			Financial assets at amortized cost			-			-						450									4,476,301															1,250									12,444,432															850									8,500,000															8,500,000															-															850									8,479,423
			Cathay Financial Holding Co., Ltd.			〃			-			-						-									-															990									9,855,438															370									3,700,000															3,700,000															-															620									6,184,269
			Formosa Chemicals & Fibre Corporation			〃			-			-						250									2,485,666															500									4,975,243															250									2,500,000															2,500,000															-															500									4,987,514
			Taiwan Power Company			〃			-			-						2,950									29,335,729															550									5,473,392															3,300									33,000,000															33,000,000															-															200									1,996,620
			CPC Corporation, Taiwan			〃			-			-						750									7,458,936															50									497,451															750									7,500,000															7,500,000															-															50									499,647
			Formosa Plastics Corporation			〃			-			-						200									1,990,459															-									-															200									2,000,000															2,000,000															-															-									-
			Formosa Petrochemical Corporation			〃			-			-						300									2,985,385															-									-															300									3,000,000															3,000,000															-															-									-
TSMC Partners			Fund
			Matter Venture Partners Fund I, L.P. (Note 2)			Financial assets at fair value through Profit or Loss			-			-						-						US$									-									-						US$									3,500									-						US$									-						US$									-						US$									-									-						US$									3,458
			Publicly traded stocks
			ARM Holdings plc			Financial assets at fair value through other comprehensive income			-			-						-						US$									-									1,961						US$									100,000									-						US$									-						US$									-						US$									-									1,961						US$									104,941
TSMC Global			Corporate bond
			Bank of America Corporation			Financial assets at fair value through other comprehensive income			-			-						-						US$									76,626									-						US$									32,499									-						US$									22,362						US$									22,449						US$									(87			)						-						US$									87,259
			Morgan Stanley			〃			-			-						-						US$									83,242									-						US$									19,579									-						US$									23,350						US$									23,429						US$									(79			)						-						US$									79,716
			The Goldman Sachs Group, Inc.			〃			-			-						-						US$									51,439									-						US$									18,957									-						US$									13,225						US$									13,300						US$									(75			)						-						US$									57,185
			JPMorgan Chase & Co.			〃			-			-						-						US$									50,629									-						US$									19,051									-						US$									13,490						US$									13,604						US$									(114			)						-						US$									56,152
			Wells Fargo & Company			〃			-			-						-						US$									59,735									-						US$									10,955									-						US$									14,783						US$									14,824						US$									(41			)						-						US$									55,625
			Citigroup Inc.			〃			-			-						-						US$									61,493									-						US$									18,408									-						US$									31,203						US$									31,317						US$									(114			)						-						US$									49,067
			Sumitomo Mitsui Financial Group, Inc.			〃			-			-						-						US$									27,658									-						US$									22,091									-						US$									5,340						US$									5,480						US$									(140			)						-						US$									44,494
			Mitsubishi UFJ Financial Group, Inc.			〃			-			-						-						US$									32,949									-						US$									14,983									-						US$									10,179						US$									10,225						US$									(46			)						-						US$									38,159
			Barclays PLC			〃			-			-						-						US$									11,263									-						US$									26,220									-						US$									974						US$									1,000						US$									(26			)						-						US$									36,403
			HSBC Holdings plc			〃			-			-						-						US$									32,402									-						US$									7,361									-						US$									10,424						US$									10,271						US$									153									-						US$									29,551
			CVS Health Corporation			〃			-			-						-						US$									4,750									-						US$									26,311									-						US$									6,822						US$									6,886						US$									(64			)						-						US$									23,574
			Lloyds Banking Group plc			〃			-			-						-						US$									10,533									-						US$									12,835									-						US$									-						US$									-						US$									-									-						US$									23,376

(Continued)

- 72 -

---

Company Name			Marketable Securities Type and Name			Financial Statement Account			Counterparty			Nature of Relationship			Beginning Balance															Acquisition															Disposal																																							Ending Balance (Note 1)
															Shares/Units (In Thousands)			Amount (Foreign Currencies in Thousands)												Shares/Units (In Thousands)			Amount (Foreign Currencies in Thousands)												Shares/Units (In Thousands)			Amount (Foreign Currencies in Thousands)												Carrying Value (Foreign Currencies in Thousands)												Gain/Loss on Disposal (Foreign Currencies in Thousands)												Shares/Units (In Thousands)			Amount (Foreign Currencies in Thousands)
TSMC Global			Oracle Corporation			Financial assets at fair value through other comprehensive income			-			-			-			US$						21,865						-			US$						15,752						-			US$						14,576						US$						14,653						US$						(77			)			-			US$						22,718
			BPCE SA			〃			-			-			-			US$						14,691						-			US$						11,433						-			US$						5,840						US$						5,850						US$						(10			)			-			US$						20,201
			Credit Agricole SA London Branch			〃			-			-			-			US$						11,611						-			US$						10,744						-			US$						2,624						US$						2,627						US$						(3			)			-			US$						19,755
			Metropolitan Life Global Funding I			〃			-			-			-			US$						24,408						-			US$						4,577						-			US$						9,953						US$						9,974						US$						(21			)			-			US$						19,027
			AIG Global Funding			〃			-			-			-			US$						8,209						-			US$						12,370						-			US$						2,660						US$						2,699						US$						(39			)			-			US$						17,928
			Danske Bank A/S			〃			-			-			-			US$						6,149						-			US$						17,235						-			US$						7,452						US$						7,260						US$						192						-			US$						16,412
			Amgen Inc.			〃			-			-			-			US$						310						-			US$						18,377						-			US$						5,611						US$						5,568						US$						43						-			US$						12,938
			AerCap Ireland Capital Designated Activity Company			〃			-			-			-			US$						-						-			US$						12,899						-			US$						-						US$						-						US$						-						-			US$						12,746
			Pfizer Investment Enterprises Pte. Ltd.			〃			-			-			-			US$						-						-			US$						12,584						-			US$						-						US$						-						US$						-						-			US$						12,147
			ABN AMRO Bank N.V.			〃			-			-			-			US$						-						-			US$						9,900						-			US$						-						US$						-						US$						-						-			US$						9,858
			ONEOK, Inc.			〃			-			-			-			US$						-						-			US$						9,843						-			US$						-						US$						-						US$						-						-			US$						9,720
			Credit Suisse AG, New York Branch			〃			-			-			-			US$						12,688						-			US$						-						-			US$						12,569						US$						14,369						US$						(1,800			)			-			US$						-
			Bank of America Corporation			Financial assets at amortized cost			-			-			-			US$						324,757						-			US$						631,777						-			US$						202,000						US$						201,456						US$						544						-			US$						758,760
			The Goldman Sachs Group, Inc.			〃			-			-			-			US$						440,655						-			US$						187,813						-			US$						15,000						US$						15,000						US$						-						-			US$						614,148
			Morgan Stanley			〃			-			-			-			US$						60,207						-			US$						396,008						-			US$						-						US$						-						US$						-						-			US$						458,073
			Wells Fargo & Company			〃			-			-			-			US$						274,713						-			US$						338,364						-			US$						159,000						US$						158,626						US$						374						-			US$						457,149
			JPMorgan Chase & Co.			〃			-			-			-			US$						280,213						-			US$						367,749						-			US$						278,000						US$						277,685						US$						315						-			US$						374,897
			Citigroup Inc.			〃			-			-			-			US$						174,540						-			US$						191,148						-			US$						159,000						US$						158,612						US$						388						-			US$						209,009
			Agency mortgage-backed   securities
			FEDERAL NATIONAL MORTGAGE ASSOCIATION			Financial assets at fair value through other comprehensive income			-			-			-			US$						463,645						-			US$						201,475						-			US$						53,459						US$						54,256						US$						(797			)			-			US$						583,615
			Federal Home Loan Mortgage Corporation			〃			-			-			-			US$						284,933						-			US$						116,248						-			US$						51,171						US$						51,480						US$						(309			)			-			US$						334,400
			Government National Mortgage Association			〃			-			-			-			US$						175,067						-			US$						58,957						-			US$						17,529						US$						18,077						US$						(548			)			-			US$						207,650
			Government bond/Agency bonds
			United States Department of The Treasury			Financial assets at fair value through other comprehensive income			-			-			-			US$						613,603						-			US$						246,670						-			US$						121,969						US$						125,781						US$						(3,812			)			-			US$						734,376
			Federal Home Loan Mortgage Corporation			〃			-			-			-			US$						-						-			US$						9,993						-			US$						-						US$						-						US$						-						-			US$						9,962
			Federal Home Loan Banks			Financial assets at amortized cost			-			-			-			US$						-						-			US$						225,000						-			US$						-						US$						-						US$						-						-			US$						225,000
			Federal Home Loan Mortgage Corporation			〃			-			-			-			US$						-						-			US$						160,000						-			US$						-						US$						-						US$						-						-			US$						160,000
			United States Department of The Treasury			〃			-			-			-			US$						-						-			US$						88,826						-			US$						-						US$						-						US$						-						-			US$						88,885
			Asset-backed securities
			BX Trust 2022-LBA6			Financial assets at fair value through other comprehensive income			-			-			-			US$						9,655						-			US$						-						-			US$						9,794						US$						10,000						US$						(206			)			-			US$						-

Note 1:    The ending balance includes the realized gain/loss on equity investment, the amortization of premium/discount on bonds investments and other related adjustment.

Note 2:    TSMC Partners expects to invest US$ 20,000 thousand in Matter Venture Partners Fund I based on the resolution of the board of directors. As of the end of this quarter, US$ 3,500 thousand has been remitted.

(Concluded)

- 73 -

---

TABLE 5

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

ACQUISITION OF INDIVIDUAL REAL ESTATE PROPERTIES AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

February 14, 2023 (Note)

US$ 1,881,000 (Note)

Based on the terms in the purchase order

65 counterparties (Note), including:

-

N/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB Ltd.

Accudevice Co., Ltd.

Air Liquide Far Eastern Ltd.

Allis Electric Co., Ltd.

Am-Power Machine International Enterprise Co., Ltd.

Atlas Copco Taiwan Ltd.

Atlas Technology Corp.

Capital Machinery Limited

Chen Yuan International Co., Ltd.

Chenfull International Co., Ltd.

Cheng Deh Fire Protection Industrial Corp.

Cica-Huntek Chemical Technology Taiwan Co., Ltd.

Confederate Technology Co., Ltd.

Desiccant Technology Corporation

Exyte Taiwan Co., Ltd.

Fortune Electric Co., Ltd.

Hantech Engineering Co., Ltd.

Hsieh Kun Co., Ltd.

Hueng Luei Process Industry Co., Ltd.

(Continued)

- 74 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Ingersoll-Rand Southeast Asia (Pte) Ltd. Taiwan Branch (Singapore)

JG Environmental Technology Co., Ltd.

JJmr-Clean-Air Solution Tech.Services Co., Ltd.

Jusun Instruments Co., Ltd.

Kinetics Technology Corporation

L&K Engineering Co., Ltd.

Marketech International Corp.

Mega Union Technology Incorporated

Organo Technology Co., Ltd.

Ovivo Taiwan Co., Ltd.

San Fu Chemical Co., Ltd.

Schneider Electric Taiwan Co., Ltd.

Shihlin Electric & Engineering Corporation

Siemens Limited

Solomon Technology Corporation

Swift Engineering Co., Ltd.

Taiwan Gleno Enterprise Co., Ltd.

Taiwan Puritic Corp.

Techgo Industrial Co., Ltd.

Trusval Technology Co., Ltd.

Uangyih-Tech Industrial Co., Ltd.

Unelectra International Corp.

United Integrated Services Co., Ltd.

Versum Materials Taiwan Co., Ltd.

Weltall Technology Corporation

Wholetech System Hitech Limited

Yangtech Engineering Co., Ltd.

Yankey Engineering Co., Ltd.

Ying Pao Technology Inc.

(Continued)

- 75 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

May 9, 2023 (Note)

US$ 366,000 (Note)

Based on the terms in the purchase order

65 counterparties (Note), including:

-

N/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB Ltd.

Accudevice Co., Ltd.

Air Liquide Far Eastern Ltd.

Allis Electric Co., Ltd.

Am-Power Machine International Enterprise Co., Ltd.

Atlas Copco Taiwan Ltd.

Atlas Technology Corp.

Capital Machinery Limited

Chen Yuan International Co., Ltd.

Chenfull International Co., Ltd.

Cheng Deh Fire Protection Industrial Corp.

Cica-Huntek Chemical Technology Taiwan Co., Ltd.

Confederate Technology Co., Ltd.

Desiccant Technology Corporation

Exyte Taiwan Co., Ltd.

Fortune Electric Co., Ltd.

Hantech Engineering Co., Ltd.

Hsieh Kun Co., Ltd.

Hueng Luei Process Industry Co., Ltd.

Ingersoll-Rand Southeast Asia (Pte) Ltd. Taiwan Branch (Singapore)

JG Environmental Technology Co., Ltd.

JJmr-Clean-Air Solution Tech.Services Co., Ltd.

Jusun Instruments Co., Ltd.

Kinetics Technology Corporation

L&K Engineering Co., Ltd.

Marketech International Corp.

(Continued)

- 76 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Mega Union Technology Incorporated

Organo Technology Co., Ltd.

Ovivo Taiwan Co., Ltd.

San Fu Chemical Co., Ltd.

Schneider Electric Taiwan Co., Ltd.

Shihlin Electric & Engineering Corporation

Siemens Limited

Solomon Technology Corporation

Swift Engineering Co., Ltd.

Taiwan Gleno Enterprise Co., Ltd.

Taiwan Puritic Corp.

Techgo Industrial Co., Ltd.

Trusval Technology Co., Ltd.

Uangyih-Tech Industrial Co., Ltd.

Unelectra International Corp.

United Integrated Services Co., Ltd.

Versum Materials Taiwan Co., Ltd.

Weltall Technology Corporation

Wholetech System Hitech Limited

Yangtech Engineering Co., Ltd.

Yankey Engineering Co., Ltd.

Ying Pao Technology Inc.

Real estate

August 8, 2023 (Note)

US$ 4,363,000 (Note)

Based on the terms in the purchase order

90 counterparties (Note), including:

-

N/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB Ltd.

Accudevice Co., Ltd.

Air Liquide Far Eastern Ltd.

All-Bau AG + Co. Gewerbepark KG

Allis Electric Co., Ltd.

Am-Power Machine International Enterprise Co., Ltd.

(Continued)

- 77 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Areal Holding Gesellschaft mbH, Dresden

Atlas Copco Taiwan Ltd.

Atlas Technology Corp.

Capital Machinery Limited

Chang Chun Petrochemical Co., Ltd.

Chen Yuan International Co., Ltd.

Chenfull International Co., Ltd.

Cheng Deh Fire Protection Industrial Corp.

Chien Kuo Construction Co., Ltd.

China Steel Structure Co., Ltd.

Chun Yuan Steel Industry Co., Ltd.

Chung-Lin General Contractors, Ltd.

Cica-Huntek Chemical Technology Taiwan Co., Ltd.

Confederate Technology Co., Ltd.

Da-Cin Construction Co., Ltd.

Desiccant Technology Corporation

Evergreen Steel Corporation

Exyte Taiwan Co., Ltd.

f6 Cigarettenfabrik GmbH & Co. KG

Fortune Electric Co., Ltd.

Fu Tsu Construction Co., Ltd.

Hantech Engineering Co., Ltd.

Hsieh Kun Co., Ltd.

Hueng Luei Process Industry Co., Ltd.

Ingersoll-Rand Southeast Asia (Pte) Ltd. Taiwan Branch (Singapore)

J.C. Yang Architect and Associates

(Continued)

- 78 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

JG Environmental Technology Co., Ltd.

JJmr-Clean-Air Solution Tech.Services Co., Ltd.

Jusun Instruments Co., Ltd.

Kedge Construction Co., Ltd.

Kinetics Technology Corporation

L&K Engineering Co., Ltd.

Lead-Fu Industrials Corporation

Lee Ming Construction Co., Ltd.

Li Jin Engineering Co., Ltd

Mandartech Interiors Inc.

Marketech International Corp.

Mega Union Technology Incorporated

Organo Technology Co., Ltd.

Ovivo Taiwan Co., Ltd.

Pan Asia (Engineers & Constructors) Corporation

Ruentex Engineering & Construction Co., Ltd.

San Fu Chemical Co., Ltd.

Schneider Electric Taiwan Co., Ltd.

Shihlin Electric & Engineering Corporation

Siemens Limited

Solomon Technology Corporation

Swift Engineering Co., Ltd.

Taiwan Gleno Enterprise Co., Ltd.

Taiwan Obayashi Corporation

Taiwan Puritic Corp.

TASA Construction Corporation

Techgo Industrial Co., Ltd.

Trusval Technology Co., Ltd.

Tung Kang Steel Structure Corp.

Uangyih-Tech Industrial Co., Ltd.

(Continued)

- 79 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Unelectra International Corp.

United Integrated Services Co., Ltd.

Versum Materials Taiwan Co., Ltd.

Wei Shung Technology Corporation

Weltall Technology Corporation

Wholetech System Hitech Limited

Yangtech Engineering Co., Ltd.

Yankey Engineering Co., Ltd.

Ying Pao Technology Inc.

Zhao-Cheng Corp.

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

(Concluded)

- 80 -

---

TABLE 6

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

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company Name			Related Party			Nature of Relationships			Transaction Details																														Abnormal Transaction						Notes/Accounts Payable or Receivable																					Note
									Purchases/ Sales			Amount (Foreign Currencies in Thousands)															% to Total									Payment Terms			Unit Price			Payment Terms			Ending Balance (Foreign Currencies in Thousands)												% to Total
TSMC			TSMC North America			Subsidiary			Sales			$	1,002,877,644																	66						Net 30 days from invoice date (Note)			-			-			$	176,130,842														83
			GUC			Associate			Sales						6,110,300															-						Net 30 days from invoice date			-			-						204,565												-
			TSMC Nanjing			Subsidiary			Purchases						46,857,435															35						Net 30 days from the end of the month of when invoice is issued			-			-						(3,881,452						)						7
			TSMC China			Subsidiary			Purchases						19,000,827															14						Net 30 days from the end of the month of when invoice is issued			-			-						(1,840,852						)						3
			WaferTech			Indirect subsidiary			Purchases						6,868,902															5						Net 30 days from the end of the month of when invoice is issued			-			-						(503,258						)						1
			SSMC			Associate			Purchases						2,430,163															2						Net 30 days from the end of the month of when invoice is issued			-			-						(295,730						)						1
			VIS			Associate			Purchases						873,783															1						Net 30 days from the end of the month of when invoice is issued			-			-						(47,914						)						-
TSMC North America			GUC			Associate of TSMC			Sales						3,365,729															-						Net 30 days from invoice date			-			-						-												-
												(US$									109,502			)
VisEra Tech			Xintec			Associate of TSMC			Sales						452,948															8						Net 60 days from the end of the month of when invoice is issued			-			-						157,189												17

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

- 81 -

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TABLE 7

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

SEPTEMBER 30, 2023

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company Name			Related Party			Nature of Relationships			Ending Balance (Foreign Currencies in Thousands)															Turnover Days (Note 1)			Overdue															Amounts Received in Subsequent Period												Allowance for Bad Debts
																											Amount												Action Taken
TSMC			TSMC North America			Subsidiary			$	180,276,196														47			$	5,725,886											-			$	103,020,387											$						-
			GUC			Associate						204,565												34						-									-						-												-
TSMC North America			TSMC			Parent company			(US$									101,830 3,152			)			(Note 2)						-									-						-												-
TSMC China			TSMC			Parent company						1,840,852												29						-									-						-												-
									(RMB									416,300			)
			TSMC Nanjing			The same parent company						39,071,244												(Note 2)						-									-						-												-
									(RMB									8,835,850			)
TSMC Nanjing			TSMC			Parent company						3,881,452												23						-									-						-												-
									(RMB									877,772			)
VisEra Tech			Xintec			Associate of TSMC						157,189												82						-									-						-												-
TSMC Technology			TSMC			The ultimate parent of the Company			(US$									379,865 11,767			)			(Note 2)						-									-						-												-
WaferTech			TSMC			The ultimate parent of the Company			(US$									503,258 15,590			)			27						-									-						-												-
			TSMC Development			Parent company						266,477												(Note 2)						-									-						-												-
												8,255

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

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

- 82 -

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TABLE 8

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023

(Amounts in Thousands of New Taiwan Dollars)

No.			Company Name			Counterparty			Nature of Relationship (Note 1)			Intercompany Transactions
												Financial Statements Item			Amount												Terms (Note 2)			Percentage of Consolidated Net Revenue or Total Assets
0			TSMC			TSMC North America			1			Net revenue from sale of goods			$	1,002,877,644											-						65%
												Receivables from related parties						176,130,842									-						3%
												Other receivables from related parties						4,145,354									-						-
												Accrued expenses and other current liabilities						136,026,838									-						2%
												Other noncurrent liabilities						119,729,879									-						2%
						JASM			1			Other noncurrent assets						11,373,403									-						-
						TSMC JDC			1			Research and development expenses						596,527									-						-
						TSMC 3DIC			1			Research and development expenses						568,186									-						-
						TSMC Europe			1			Marketing expenses-commission						475,738									-						-
						TSMC China			1			Purchases						19,000,827									-						1%
												Payables to related parties						1,840,852									-						-
						TSMC Nanjing			1			Purchases						46,857,435									-						3%
												Proceeds from disposal of property, plant and equipment						336,934									-						-
												Payables to related parties						3,881,452									-						-
						TSMC Technology			1			Research and development expenses						2,870,037									-						-
						WaferTech			1			Purchases						6,868,902									-						-
												Payables to related parties						503,258									-						-
1			TSMC China			TSMC Nanjing			3			Interest income						448,245									-						-
												Other receivables from related parties						39,071,244									-						1%

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

No. 3 represents the transactions between subsidiaries.

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.

- 83 -

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TABLE 9

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)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Investor Company			Investee Company			Location			Main Businesses and Products			Original Investment Amount																														Balance as of September 30, 2023																																	Net Income (Losses) of the Investee (Foreign Currencies in Thousands)															Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands)												Note
												September 30, 2023 (Foreign Currencies in Thousands)															December 31, 2022 (Foreign Currencies in Thousands)															Shares (In Thousands)									Percentage of Ownership									Carrying Value (Foreign Currencies in Thousands)
TSMC			TSMC Global			Tortola, British Virgin Islands			Investment activities			$	355,162,309														$	355,162,309																	11									100						$	450,233,116														$	17,508,870														$	17,508,870											Subsidiary
			TSMC Arizona			Phoenix, Arizona, U.S.A.			Manufacturing, sales and testing of integrated circuits and other semiconductor devices						133,798,710															37,015,800															4,400									100									119,394,567															(8,203,552									)						(8,203,552						)			Subsidiary
			TSMC Partners			Tortola, British Virgin Islands			Investing in companies involved in the semiconductor design and manufacturing, and other investment activities						31,456,130															31,456,130															988,268									100									70,167,087															2,517,922															2,517,922									Subsidiary
			JASM			Kumamoto, Japan			Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices						52,630,042															24,567,085															2,269									71									47,543,240															(1,509,102									)						(1,080,189						)			Subsidiary
			VIS			Hsin-Chu, Taiwan			Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks						10,180,677															10,180,677															464,223									28									13,103,470															4,982,328															1,407,612									Associate
			VisEra Tech			Hsin-Chu, Taiwan			Research, design, development, manufacturing, sales, packaging and test of color filter						4,224,082															4,224,082															213,619									68									11,241,528															323,809															218,974									Subsidiary
			SSMC			Singapore			Manufacturing and sales of integrated circuits and other semiconductor devices						5,120,028															5,120,028															314									39									9,985,558															1,488,865															577,531									Associate
			TSMC North America			San Jose, California, U.S.A			Sales and marketing of integrated circuits and other semiconductor devices						333,718															333,718															11,000									100									6,235,197															483,735															483,735									Subsidiary
			Xintec			Taoyuan, Taiwan			Wafer level chip size packaging and wafer level post passivation interconnection service						1,988,317															1,988,317															111,282									41									3,580,425															940,912															385,854									Associate
			GUC			Hsin-Chu, Taiwan			Researching, developing, manufacturing, testing and marketing of integrated circuits						386,568															386,568															46,688									35									2,238,136															2,795,883															974,059									Associate
			Emerging Fund			Cayman Islands			Investing in technology start-up companies						1,712,674															1,269,425															-									99.9									2,130,468															19,602															19,582									Subsidiary
			TSMC 3DIC			Yokohama, Japan			Engineering support activities						1,144,356															1,144,356															49									100									1,174,258															91,131															91,131									Subsidiary
			TSMC Europe			Amsterdam, the Netherlands			Customer service and supporting activities						15,749															15,749															-									100									569,867															23,295															23,295									Subsidiary
			TSMC JDC			Yokohama, Japan			Engineering support activities						410,680															410,680															15									100									371,800															24,384															24,384									Subsidiary
			VTAF III			Cayman Islands			Investing in technology start-up companies						1,242,679															1,239,621															-									98									267,497															(7,849									)						(7,692						)			Subsidiary
			TSMC Japan			Yokohama, Japan			Customer service and supporting activities						83,760															83,760															6									100									130,349															5,987															5,987									Subsidiary
			VTAF II			Cayman Islands			Investing in technology start-up companies						260,300															260,300															-									98									99,903															498															488									Subsidiary
			TSMC Korea			Seoul, Korea			Customer service and supporting activities						13,656															13,656															80									100									44,746															1,750															1,750									Subsidiary
			ESMC			Dresden, Germany			Manufacturing, sales and testing of integrated circuits and other semiconductor devices						3,359															-															-									100									2,331															(1,084									)						(1,084						)			Subsidiary
TSMC Partners			TSMC Development			Delaware, U.S.A			Investing in companies involved in semiconductor manufacturing			$ (US$									18,946,972 586,939			$ )			$ (US$									18,946,972 586,939			$ )						-									100						$ (US$									39,842,511 1,234,240			$ )			$ (US$									1,303,093 42,252			$ )						Note2									Subsidiary
			TSMC Technology			Delaware, U.S.A			Engineering support activities						461,038															461,038															-									100									1,217,826															165,596															Note2									Subsidiary
												(US$									14,282			)			(US$									14,282			)																					(US$									37,726			)			(US$									5,371			)
			TSMC Canada			Ontario, Canada			Engineering support activities						74,246															74,246															2,300									100									375,241															35,357															Note2									Subsidiary
												(US$									2,300			)			(US$									2,300			)																					(US$									11,624			)			(US$									1,142			)
VTAF III			Growth Fund			Cayman Islands			Investing in technology start-up companies						74,100															70,871															-									100									192,788															(723									)						Note2									Subsidiary
												(US$									2,295			)			(US$									2,195			)																					(US$									5,972			)			(US$									(23			))
			Mutual-Pak			New Taipei, Taiwan			Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID			$ (US$									51,435 1,593			$ )			$ (US$									51,435 1,593			$ )						4,693									28						$ (US$									13,969 433			$ )			$ (US$									(17,934 (579			) ))						Note2									Associate

(Continued)

- 84 -

---

Investor Company

Investee Company

Location

Main Businesses and Products

Original Investment Amount

Balance as of September 30, 2023

Net Income (Losses) of the Investee (Foreign Currencies in Thousands)

Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands)

Note

September 30, 2023 (Foreign Currencies in Thousands)

December 31, 2022 (Foreign Currencies in Thousands)

Shares (In Thousands)

Percentage of Ownership

Carrying Value (Foreign Currencies in Thousands)

TSMC Development

WaferTech

Washington, U.S.A

Manufacturing, sales and testing of integrated circuits and other semiconductor devices

$

-

$

-

293,637

100

$ (US$

7,148,865 221,457

$ )

$ (US$

549,602 17,924

$ )

Note 2

Subsidiary

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.

    (Concluded)

- 85 -

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TABLE 10

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR THE NINE MONTHS END SEPTEMBER 30, 2023 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Investee Company			Main Businesses and Products			Total Amount of Paid-in Capital (RMB in Thousands)												Method of Investment			Accumulated Outflow of Investment from Taiwan as of January 1, 2023 (US$ in Thousands)												Investment Flows																								Accumulated Outflow of Investment from Taiwan as of September 30, 2023 (US$ in Thousands)												Net Income (Losses) of the Investee Company												Percentage of Ownership			Share of Profits/Losses															Carrying Amount as of Balance as of September 30, 2023												Accumulated Inward Remittance of Earnings as of September 30, 2023
																																	Outflow (US$ in Thousands)												Inflow
TSMC China			Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices			$ (RMB						18,939,667 4,502,080			$ )			(Note 1)			$ (US$						18,939,667 596,000			$ )			$						-						$						-						$ (US$						18,939,667 596,000			$ )			$	7,422,379											100%			$									7,489,134 (Note2			$ )			$	94,591,954											$						-
TSMC Nanjing			Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices			$ (RMB						30,521,412 6,650,119			$ )			(Note 1)			$ (US$						30,521,412 1,000,000			$ )						-												-									$ (US$						30,521,412 1,000,000			$ )						15,334,763									100%									15,345,502 (Note2						$ )						82,952,291												-

Accumulated Investment in Mainland China as of September 30, 2023 (US$ in Thousands)			Investment Amounts Authorized by Investment Commission, MOEA (US$ in Thousands)			Upper Limit on Investment
$    49,461,079 (US$    1,596,000)			$    119,412,667 (US$    3,596,000)			$ 2,023,690,864 (Note 3)

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.

- 86 -

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TABLE 11

Taiwan Semiconductor Manufacturing Company Limited

INFORMATION ON MAJOR SHAREHOLDERS

SEPTEMBER 30, 2023

Shareholders (Note 1)			Shares
			Total Shares Owned			Ownership Percentage (Note 2)
ADR-Taiwan Semiconductor Manufacturing Company Ltd.			5,316,067,058			20.50%
National Development Fund, Executive Yuan			1,653,709,980			6.38%

Note 1:    Major shareholders shows the list of all shareholders with ownership of 5 percent or greater.

Note 2:    The calculation of ownership percentage is rounded to two decimal places.

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