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Equibles

6-K

Taiwan Semiconductor Manufacturing Co Ltd (TSM)

6-K 2024-11-14 For: 2024-09-30
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Added on April 07, 2026

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 2024

(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

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, 2024 By /s/ Wendell Huang
Wendell Huang
Senior Vice President and Chief Financial Officer

Exhibits

Exhibit Number Exhibit Description
99.1 Consolidated Financial Statements for theNineMonths EndedSeptember30, 2024 and 2023 and Independent Auditors’ Review Report pursuant to International Financial Reporting Standards adopted by ROC ("Taiwan-IFRSs")

Document

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, 2024 and 2023 and

Independent Auditors’ Review Report

勤業眾信

勤業眾信聯合會計師事務所

110016 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 110016, 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, 2024 and 2023, the related consolidated statements of comprehensive income for the three months ended September 30, 2024 and 2023 and for the nine months ended September 30, 2024 and 2023, 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, 2024 and 2023, its consolidated financial performance for the three months ended September 30, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2024 and 2023 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.

  • 1 -

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

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Deloitte & Touche

Taipei, Taiwan

Republic of China

November 12, 2024

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.

  • 2 -

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)
September 30, 2024 December 31, 2023 September 30, 2023
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
ASSETS Amount % Amount % Amount %
CURRENT ASSETS
Cash and cash equivalents (Note 6) 1,886,780,555 31 1,465,427,753 26 1,311,806,535 24
Financial assets at fair value through profit or loss (Note 7) - - -
Financial assets at fair value through other comprehensive income (Note 8) 3 3 3
Financial assets at amortized cost (Note 9) 1 1 2
Hedging financial assets (Note 10) - - -
Notes and accounts receivable, net (Note 11) 4 4 4
Receivables from related parties (Note 31) - - -
Other receivables from related parties (Note 31) - - -
Inventories (Note 12) 5 5 5
Other financial assets (Notes 28 and 32) 1 1 -
Other current assets - - -
Total current assets 45 40 38
NONCURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7) - - -
Financial assets at fair value through other comprehensive income (Note 8) - - -
Financial assets at amortized cost (Note 9) 1 2 2
Investments accounted for using equity method (Note 13) 1 1 1
Property, plant and equipment (Notes 14 and 28) 50 55 57
Right-of-use assets (Note 15) 1 1 1
Intangible assets (Note 16) - - -
Deferred income tax assets (Note 4) 1 1 1
Refundable deposits - - -
Other noncurrent assets (Notes 28 and 29) 1 - -
Total noncurrent assets 55 60 62
TOTAL 6,165,658,176 100 5,532,371,215 100 5,484,556,381 100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Financial liabilities at fair value through profit or loss (Note 7) 34,277 - 121,412 - 132,768 -
Hedging financial liabilities (Notes 10 and 29) - - -
Accounts payable 1 1 1
Payables to related parties (Note 31) - - -
Salary and bonus payable 1 1 1
Accrued profit sharing bonus to employees and compensation to directors (Note 27) 1 1 1
Payables to contractors and equipment suppliers 2 3 4
Cash dividends payable (Note 19) 4 3 3
Income tax payable (Note 4) 1 2 2
Long-term liabilities - current portion (Notes 17, 18 and 29) 1 - -
Accrued expenses and other current liabilities (Notes 15, 20 and 29) 7 5 6
Total current liabilities 18 16 18
NONCURRENT LIABILITIES
Bonds payable (Notes 17 and 29) 15 17 17
Long-term bank loans (Notes 18 and 29) - - -
Deferred income tax liabilities (Note 4) - - -
Lease liabilities (Notes 15 and 29) - 1 1
Net defined benefit liability (Note 4) - - -
Guarantee deposits - - -
Others (Note 20) 2 3 3
Total noncurrent liabilities 17 21 21
Total liabilities 35 37 39
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
Capital stock (Note 19) 4 5 5
Capital surplus (Notes 19 and 26) 1 1 1
Retained earnings (Note 19)
Appropriated as legal capital reserve 5 6 6
Appropriated as special capital reserve - - -
Unappropriated earnings 55 51 49
60 57 55
Others (Notes 19 and 26) - ) - -
Equity attributable to shareholders of the parent 65 63 61
NON - CONTROLLING INTERESTS - - -
Total equity 65 63 61
TOTAL 6,165,658,176 100 5,532,371,215 100 5,484,556,381 100

All values are in US Dollars.

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

  • 3 -

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
For the Nine Months Ended September 30
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
2023 2024 2023
% Amount % Amount % Amount %
NET REVENUE (Notes 20, 31 and 37) 759,692,143 100 546,732,758 100 2,025,846,521 100 1,536,206,985 100
COST OF REVENUE (Notes 12, 27, 31 and 34) 42 46 45 45
GROSS PROFIT 58 54 55 55
OPERATING EXPENSES (Notes 27 and 31)
Research and development 7 9 7 9
General and administrative 3 3 3 3
Marketing 1 - 1 -
Total operating expenses 11 12 11 12
OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14, 27 and 34) - - ) - -
INCOME FROM OPERATIONS (Note 37) 47 42 44 43
NON-OPERATING INCOME AND EXPENSES
Share of profits of associates - - - -
Interest income (Note 21) 3 3 3 3
Other income - - - -
Foreign exchange gain (loss), net (Note 35) - ) - - ) -
Finance costs (Note 22) ) - ) (1 ) ) - ) -
Other gains and losses, net (Note 23) 1 - ) - -
Total non-operating income and expenses 4 2 3 3
INCOME BEFORE INCOME TAX 51 44 47 46
INCOME TAX EXPENSE (Notes 4 and 24) 8 5 8 7
NET INCOME 43 39 39 39
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 ) - ) - - -
Gain on hedging instruments - - - -
Share of other comprehensive income (loss) of associates ) - - ) - -
Income tax expense related to items that will not be reclassified subsequently - - ) - ) -
) - - - -
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations ) (4 ) 5 1 2
Unrealized gain/(loss) on investments in debt instruments at fair value through other comprehensive income 1 ) (1 ) 1 ) -
Loss on hedging instruments ) - ) - ) - ) -
Share of other comprehensive income (loss) of associates ) - - - -
) (3 ) 4 2 2
Other comprehensive income (loss), net of income tax ) (3 ) 4 2 2
TOTAL COMPREHENSIVE INCOME 304,023,892 40 236,844,499 43 831,645,140 41 627,873,872 41
NET INCOME ATTRIBUTABLE TO:
Shareholders of the parent 325,257,571 43 210,999,939 39 798,587,976 39 599,785,521 39
Non-controlling interests ) - ) - ) - ) -
325,080,170 43 210,795,274 39 797,962,871 39 599,461,316 39
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Shareholders of the parent 302,100,323 40 237,285,511 43 831,764,315 41 629,307,238 41
Non-controlling interests - ) - ) - ) -
304,023,892 40 236,844,499 43 831,645,140 41 627,873,872 41
EARNINGS PER SHARE (NT, Note 25)
Basic earnings per share 12.55 8.14 30.80 23.13
Diluted earnings per share 12.54 8.14 30.80 23.13

All values are in US Dollars.

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, 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
BALANCE, JANUARY 1, 2024 25,932,071 $ 259,320,710 $ 69,876,381 $ 311,146,899 $ - $ 2,846,883,893 $ 3,158,030,792 $ (25,316,769 ) $ (4,099,928 ) $ 1,395,875 $ (293,434 ) $ (28,314,256 ) $ - $ 3,458,913,627 $ 24,349,220 $ 3,483,262,847
Appropriations of earnings
Cash dividends to shareholders - - - - - (298,218,286 ) (298,218,286 ) - - - - - - (298,218,286 ) - (298,218,286 )
Total - - - - - (298,218,286 ) (298,218,286 ) - - - - - - (298,218,286 ) - (298,218,286 )
Net income - - - - - 798,587,976 798,587,976 - - - - - - 798,587,976 (625,105 ) 797,962,871
Other comprehensive income (loss), net of income tax - - - - - - - 23,487,853 9,734,732 (46,246 ) - 33,176,339 - 33,176,339 505,930 33,682,269
Total comprehensive income (loss) - - - - - 798,587,976 798,587,976 23,487,853 9,734,732 (46,246 ) - 33,176,339 - 831,764,315 (119,175 ) 831,645,140
Employee restricted shares retired (1,402 ) (14,018 ) 14,018 - - 19,934 19,934 - - - - - - 19,934 - 19,934
Share-based payment arrangements 5,313 53,130 2,584,257 - - - - - - - (1,921,617 ) (1,921,617 ) - 715,770 - 715,770
Treasury stock acquired - - - - - - - - - - - - (3,089,177 ) (3,089,177 ) - (3,089,177 )
Treasury stock retired (3,249 ) (32,490 ) (7,080 ) - - (3,049,607 ) (3,049,607 ) - - - - - 3,089,177 - - -
Disposal of investments in equity instruments at fair value through other comprehensive income - - - - - 2,008,432 2,008,432 - (2,008,432 ) - - (2,008,432 ) - - - -
Basis adjustment for loss on hedging instruments - - - - - - - - - (9,626 ) - (9,626 ) - (9,626 ) - (9,626 )
Adjustments to share of changes in equities of associates - - 3,433 - - - - - - - - - - 3,433 - 3,433
From difference between the consideration received and the carrying amount of the subsidiaries' net assets during actual disposal - - 5,284 - - - - - - - - - - 5,284 (4,263 ) 1,021
From share of changes in equities of subsidiaries - - (86,121 ) - - - - - - - - - - (86,121 ) 6,913,938 6,827,817
Increase in non-controlling interests - - - - - - - - - - - - - - 763,418 763,418
BALANCE, SEPTEMBER 30, 2024 25,932,733 $ 259,327,332 $ 72,390,172 $ 311,146,899 $ - $ 3,346,232,342 $ 3,657,379,241 $ (1,828,916 ) $ 3,626,372 $ 1,340,003 $ (2,215,051 ) $ 922,408 $ - $ 3,990,019,153 $ 31,903,138 $ 4,021,922,291

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 CASH FLOWS

(In Thousands of New Taiwan Dollars)
Nine Months Ended September 30
--- --- --- --- --- --- ---
2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax 957,040,631 700,890,335
Adjustments for:
Depreciation expense
Amortization expense
Expected credit losses recognized on investments in debt instruments
Finance costs
Share of profits of associates ) )
Interest income ) )
Share-based compensation
Loss on disposal or retirement of property, plant and equipment, net
Gain on disposal or retirement of intangible assets, net )
Impairment loss on property, plant and equipment
Loss (gain) on financial instruments at fair value through profit or loss, net )
Loss on disposal of investments in debt instruments at fair value through other comprehensive income, net
Loss on foreign exchange, net
Dividend income ) )
Others ) )
Changes in operating assets and liabilities:
Financial instruments at fair value through profit or loss )
Notes and accounts receivable, net )
Receivables from related parties
Other receivables from related parties ) )
Inventories ) )
Other financial assets )
Other current assets ) )
Other noncurrent assets ) )
Accounts payable )
Payables to related parties )
Salary and bonus payable )
Accrued profit sharing bonus to employees and compensation to directors ) )
Accrued expenses and other current liabilities )
Other noncurrent liabilities
Net defined benefit liability ) )
Cash generated from operations
Income taxes paid ) )
Net cash generated by operating activities

All values are in US Dollars.

(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
--- --- --- --- --- --- ---
2024 2023
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Financial instruments at fair value through profit or loss (1,097,618 ) (323,973 )
Financial assets at fair value through other comprehensive income ) )
Financial assets at amortized cost ) )
Property, plant and equipment ) )
Intangible assets ) )
Proceeds from disposal or redemption of:
Financial assets at fair value through other comprehensive income
Financial assets at amortized cost
Property, plant and equipment
Intangible assets
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income
Derecognition of hedging financial instruments
Interest received
Proceeds from government grants - property, plant and equipment
Proceeds from government grants - others
Other dividends received
Dividends received from investments accounted for using equity method
Increase in prepayments for leases ) )
Refundable deposits paid ) )
Refundable deposits refunded
Net cash used in investing activities ) )
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in hedging financial liabilities - bank loans )
Proceeds from issuance of bonds
Repayment of bonds ) )
Proceeds from long-term bank loans
Repayment of long-term bank loans ) )
Payments for transaction costs attributable to the issuance of bonds ) )
Treasury stock acquired )
Repayment of the principal portion of lease liabilities ) )
Interest paid ) )
Guarantee deposits received
Guarantee deposits refunded ) )
Cash dividends ) )
Disposal of ownership interests in subsidiaries (without losing control)
Increase in non-controlling interests
Net cash used in financing activities ) )

All values are in US Dollars.

(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
--- --- --- --- --- ---
2024 2023
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 13,873,746 25,182,665
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS )
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
CASH AND CASH EQUIVALENTS, END OF PERIOD 1,886,780,555 1,311,806,535

All values are in US Dollars.

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

(Concluded)

  • 8 -

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(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 12, 2024.

3.    APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

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

The initial application of the amendments to the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the accounting policies of TSMC and its subsidiaries (collectively as the “Company”).

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

New, Amended and Revised Standards and Interpretations Effective Date Issued <br>by IASB
Annual Improvements to IFRS Accounting Standards - Volume 11 January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” January 1, 2026
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
IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027
  • 9 -

IFRS 18 “Presentation and Disclosure in Financial Statements”

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

•Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.

•The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

•Provides guidance to enhance the requirements of aggregation and disaggregation: The Company shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Company labels items as ”other” only if it cannot find a more informative label.

Except for the above impact, 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, 2023.

For the convenience of readers, the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the R.O.C. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language consolidated financial statements shall prevail.

Statement of Compliance

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, “Interim Financial Reporting,” endorsed and issued into effect by the FSC. The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements prepared under the IFRS Accounting Standards endorsed and issued into effect by the FSC (collectively, the “Taiwan-IFRS Accounting Standards”).

Basis of Consolidation

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, 2023.

  • 10 -

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<br><br>Location September 30,<br><br>2024 December 31,<br><br>2023 September 30,<br><br>2023 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 67% 67% 68% c)
TSMC Arizona Corporation (TSMC Arizona) Manufacturing, sales and testing of integrated circuits and other semiconductor devices Phoenix, Arizona, U.S.A. 100% 100% 100% d)
Japan Advanced Semiconductor Manufacturing, Inc. (JASM) Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices Kumamoto, Japan 73% 71% 71% e)
European Semiconductor Manufacturing Company (ESMC) GmbH (ESMC) Manufacturing, sales and testing of integrated circuits and other semiconductor devices Dresden, Germany 70% 100% 100% a), f)
VentureTech Alliance Fund II, L.P. (VTAF II) Investing in technology start-up companies Cayman Islands 98% 98% 98% b)
VentureTech Alliance Fund III, L.P. (VTAF III) Investing in technology start-up companies Cayman Islands 98% 98% 98% b)
Emerging Fund, L.P. (Emerging Fund) Investing in technology start-up companies Cayman Islands 99.9% 99.9% 99.9% b)
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% b)
TSMC Development TSMC Washington, LLC (TSMC Washington) 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:    This is an immaterial subsidiary for which the consolidated financial statements for the year ended, are audited by the Company’s independent auditors.

Note c:    As VisEra’s employees continue to exercise their employee share options, TSMC’s ownership in VisEra continues to decline. This transaction was accounted for as an equity transaction since the transaction did not change TSMC’s control over VisEra.

Note d:    TSMC Arizona signed an agreement with the U.S. Department of Commerce in November 2024, based on the “CHIPS and Science Act,” which could provide a subsidy of up to US$6.6 billion, aligned with the construction schedule of the TSMC Arizona facility. The contract also includes the construction timeline and other conditions that TSMC Arizona must comply with. TSMC Arizona is also eligible to apply for a 25% investment grant for qualified investments.

Note e:    JASM has increased its capital and converted its preferred shares to common shares in July 2024. The increase in capital, resulted in changes in shareholding rights from 71% to 73% and voting rights from 81% to 73%, respectively.

Note f:    ESMC was established in June 2023. TSMC sold its 10% shares to Robert Bosch GmbH, Infineon Technologies AG and NXP Semiconductors N.V. in January 2024, respectively. After selling shares, TSMC’s shareholding in ESMC decreased from 100% to 70%. This transaction was accounted for as an equity transaction since the transaction did not change TSMC’s control over ESMC.

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.

  • 11 -

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 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, 2023.

6.    CASH AND CASH EQUIVALENTS

September 30,2024 December 31,2023 September 30,2023
Cash and deposits in banks 1,879,710,837 1,453,101,566 1,297,689,297
Money market funds
Repurchase agreements
Government bonds/Agency bonds
Commercial paper
1,886,780,555 1,465,427,753 1,311,806,535

All values are in US Dollars.

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 30,2024 December 31,2023 September 30,2023
Financial assets
Mandatorily measured at FVTPL
Convertible preferred stocks 13,692,780 13,307,160 -
Forward exchange contracts
Mutual funds
Simple agreement for future equity
Convertible bonds
15,566,035 14,342,093 490,163
Current 971,386 924,636 378,526
Noncurrent
15,566,035 14,342,093 490,163

All values are in US Dollars.

(Continued)

  • 12 -
September 30,<br><br>2024 December 31,<br><br>2023 September 30,<br><br>2023
Financial liabilities
Held for trading
Forward exchange contracts $ 34,277 $ 121,412 $ 132,768

(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, 2024
Sell NT$ October 2024 to November 2024 NT$ 5,984,214
Sell US$ October 2024 to December 2024 US$ 2,608,500
December 31, 2023
Sell NT$ January 2024 NT$ 26,251,763
Sell US$ January 2024 to March 2024 US$ 1,112,000
Sell JPY January 2024 JPY 20,000,000
September 30, 2023
Sell NT$ October 2023 NT$ 10,026,983
Sell US$ October 2023 to November 2023 US$ 173,000

8.    FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

September 30,2024 December 31,2023 September 30,2023
Investments in debt instruments at FVTOCI
Corporate bonds 106,675,983 79,605,567 80,389,109
Agency mortgage-backed securities
Government bonds/Agency bonds
Asset-backed securities
Investments in equity instruments at FVTOCI
Non-publicly traded equity investments
Publicly traded stocks
197,152,287 161,739,485 162,772,189

All values are in US Dollars.

(Continued)

  • 13 -
September 30,2024 December 31,2023 September 30,2023
Current 189,649,314 154,530,830 154,838,390
Noncurrent
197,152,287 161,739,485 162,772,189

All values are in US Dollars.

(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, 2024 and 2023, as the Company adjusted its investment portfolio, equity investments designated at FVTOCI were divested for NT$3,486,190 thousand and NT$189,390 thousand, respectively. The related other equity-unrealized gain/loss on financial assets at FVTOCI of NT$2,008,432 thousand and NT$118,948 thousand were transferred to increase retained earnings, respectively.

As of September 30, 2024 and 2023, the cumulative loss allowance for expected credit loss of NT$61,721 thousand and NT$49,497 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 30,2024 December 31,2023 September 30,2023
Corporate bonds 137,366,565 113,851,856 126,268,615
Commercial paper
Government bonds/Agency bonds
Less: Allowance for impairment loss ) ) )
164,464,159 145,960,588 163,640,740
Current 90,197,355 66,761,221 84,261,089
Noncurrent
164,464,159 145,960,588 163,640,740

All values are in US Dollars.

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

10.    HEDGING FINANCIAL INSTRUMENTS

September 30,<br><br>2024 December 31,<br><br>2023 September 30,<br><br>2023
Financial assets - current
Fair value hedges
Interest rate futures contracts $ 1,079 $ - $ 37,451

(Continued)

  • 14 -
September 30,2024 December 31,2023 September 30,2023
Financial liabilities - current
Fair value hedges
Interest rate futures contracts 1,875 43,764 -
Hedges of net investments in foreign operations
Bank loans
1,875 27,334,164 26,879,550

All values are in US Dollars.

(Concluded)

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 risks.

September 30, 2024

Hedging Instruments Contract Amount<br><br>(US$ in Thousands) Maturity
Interest rate futures contracts - US Treasury futures US$    48,300 December 2024
Hedged Items Asset Carrying Amount Accumulated Amount of <br>Fair Value Hedge <br>Adjustments
--- --- ---
Financial assets at FVTOCI $    3,881,468 $    796

December 31, 2023

Hedging Instruments Contract Amount<br><br>(US$ in Thousands) Maturity
Interest rate futures contracts - US Treasury futures US$    48,600 March 2024
Hedged Items Asset Carrying Amount Accumulated Amount of <br>Fair Value Hedge <br>Adjustments
--- --- ---
Financial assets at FVTOCI $    3,959,523 $    43,764
  • 15 -

September 30, 2023

Hedging Instruments Contract Amount<br><br>(US$ in Thousands) Maturity
Interest rate futures contracts - US Treasury futures US$    54,400 December 2023
Hedged Items Asset Carrying Amount Accumulated Amount of <br>Fair Value Hedge <br>Adjustments
--- --- ---
Financial assets at FVTOCI $    3,615,318 $    (37,451)

The effect for the nine months ended September 30, 2024 and 2023 is detailed below:

Change in Value Used for Calculating Hedge Ineffectiveness
Nine Months Ended September 30
Hedging Instruments/Hedged Items 2024 2023
Hedging Instruments
Interest rate futures contracts - US Treasury futures 72,897 101,369
Hedged Items
Financial assets at FVTOCI ) )
- -

All values are in US Dollars.

Cash flow hedge

The Company entered into forward contracts to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). 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.

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. Refer to Note 19 (d) for gain or loss arising from changes in the fair value of hedging instruments and hedged item affects profit or loss, and the amount transferred to initial carrying amount of hedged items.

The effect for the nine months ended September 30, 2024 and 2023 is detailed below:

Change in Value Used for Calculating Hedge<br><br>Ineffectiveness
Nine Months Ended September 30
Hedging Instruments/Hedged Items 2024 2023
Hedging Instruments
Forward exchange contracts $ 5,042 $ 39,898

(Continued)

  • 16 -
Change in Value Used for Calculating Hedge<br><br>Ineffectiveness
Nine Months Ended September 30
Hedging Instruments/Hedged Items 2024 2023
Hedged Items
Forecast transaction (capital expenditures) $ (5,042 ) $ (39,898 )

(Concluded)

Hedges of net investments in foreign operations

TSMC has designated the bank loans denominated in foreign currency as a hedge of net investments in foreign operations to manage its foreign currency risk arising from investment in overseas subsidiaries.

The main source of hedge ineffectiveness in these hedging relationships is driven by the material difference between the notional amount of bank loans denominated in foreign currency and the net investment in foreign operations. No other sources of ineffectiveness have emerged from these hedging relationships during the hedging period. Refer to Note 19 (d) for gain or loss arising from changes in the fair value of hedging instruments.

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

December 31, 2023

Hedging Instruments Contract<br><br>Amount<br><br>(In Thousands) Annual <br>Interest Rate Maturity Balance in<br><br>Other Equity<br><br>(Continuing<br><br>Hedges)
Bank loans JPY    124,500,000 0% Due by April 2024 $ 618,180

September 30, 2023

Hedging Instruments Contract<br><br>Amount<br><br>(In Thousands) Annual <br>Interest Rate Maturity Balance in<br><br>Other Equity<br><br>(Continuing<br><br>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, 2024 and 2023 is detailed below:

Change in Value Used for<br><br>Calculating Hedge<br><br>Ineffectiveness
Nine Months Ended September 30
Hedging Instruments/Hedged Items 2024 2023
Hedging Instruments
Bank loans $ 793,830 $ 1,029,030
Hedged Items
Net investments in foreign operations $ (793,830 ) $ (1,029,030 )
  • 17 -

11.    NOTES AND ACCOUNTS RECEIVABLE, NET

September 30,2024 December 31,2023 September 30,2023
At amortized cost
Notes and accounts receivable 244,095,134 196,434,151 218,688,626
Less: Loss allowance ) ) )
At FVTOCI
249,570,573 201,313,914 222,467,653

All values are in US Dollars.

The Company signed a contract with the bank to sell certain accounts receivable without recourse and transaction cost required. These accounts receivable are classified as at FVTOCI because they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.

In principle, the payment term granted to customers is due 30 days from the invoice date or 15 days from the end of the month when the invoice is issued. Aside from recognizing impairment loss for credit-impaired accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio of customers by different risk levels with consideration of factors of historical loss ratios and customers’ financial conditions, competitiveness and business outlook. For accounts receivable past due over 90 days without collaterals or guarantees, the Company recognizes loss allowance at full amount.

Aging analysis of notes and accounts receivable

September 30,2024 December 31,2023 September 30,2023
Not past due 236,368,821 183,188,499 207,436,935
Past due
Past due within 30 days
Past due over 31 days
Less: Loss allowance ) ) )
249,570,573 201,313,914 222,467,653

All values are in US Dollars.

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
2024 2023
Balance, beginning of period 531,554 331,646
Provision (Reversal) )
Effect of exchange rate changes
Balance, end of period 496,026 752,380

All values are in US Dollars.

For the nine months ended September 30, 2024 and 2023, the changes in loss allowance were mainly due to the variations in the balance of accounts receivable of different risk levels.

  • 18 -

12.    INVENTORIES

September 30,2024 December 31,2023 September 30,2023
Finished goods 34,782,721 34,511,032 35,048,480
Work in process
Raw materials
Supplies and spare parts
292,883,930 250,997,088 262,090,072

All values are in US Dollars.

Write-down of inventories to net realizable value (excluding earthquake losses) and reversal of write-down of inventories resulting from the increase in net realizable value were included in the cost of revenue, which were as follows. Please refer to related earthquake losses in Note 34.

Three Months Ended<br><br>September 30 Nine Months Ended<br><br>September 30
2024 2023 2024 2023
Net inventory losses (reversal of write-down of inventories) $ 137,620 $ (1,090,783 ) $ (1,898,656 ) $ 1,830,238

13.    INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Associates consisted of the following:

Place of Carrying Amount % of Ownership and Voting Rights<br><br>Held by the Company
Name of Associate Principal Activities Incorporation and Operation September 30,2024 December 31,2023 September 30,2023 September 30,<br><br>2024 December 31,<br><br>2023 September 30,<br><br>2023
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 13,105,023 13,590,430 13,103,470 28% 28% 28%
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC) Manufacturing and sales of integrated circuits and other semiconductor devices Singapore 39% 39% 39%
Xintec Inc. (Xintec) Wafer level chip size packaging and wafer level post passivation interconnection service Taoyuan, Taiwan 41% 41% 41%
Global Unichip Corporation (GUC) Researching, developing, manufacturing, testing and marketing of integrated circuits Hsinchu, Taiwan 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 - - 28%
30,967,916 29,616,638 28,921,558

All values are in US Dollars.

Due to the decrease in shareholding to 17%, the Company consequently ceased to have significant influence over Mutual-Pak. Therefore, the investment in Mutual-Pak was classified as financial assets at FVTOCI starting November 2023.

  • 19 -

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,<br><br>2024 December 31,<br><br>2023 September 30,<br><br>2023
GUC $ 51,356,645 $ 81,236,875 $ 63,728,928
VIS $ 48,047,132 $ 37,834,215 $ 31,567,198
Xintec $ 22,868,436 $ 14,188,445 $ 13,075,626

14.    PROPERTY, PLANT AND EQUIPMENT

September 30,2024 December 31,2023 September 30,2023
Assets used by the Company 3,071,391,628 3,064,424,259 3,132,660,998
Assets subject to operating leases
3,071,599,327 3,064,474,984 3,132,664,367

All values are in US Dollars.

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, 2024 7,621,997 817,822,975 5,384,985,648 99,825,084 908,289,751 7,218,545,455
Additions
Disposals or retirements ) ) ) ) )
Transfers from assets subject to operating leases
Transfers to assets subject to operating leases ) )
Effect of exchange rate changes
Balance at September 30, 2024 13,140,057 868,200,908 5,745,822,632 101,296,835 957,855,982 7,686,316,414
Accumulated depreciation<br><br>and impairment
Balance at January 1, 2024 558,074 387,013,911 3,699,008,492 66,749,979 790,740 4,154,121,196
Additions
Disposals or retirements ) ) ) )
Transfers from assets subject to operating leases
Transfers to assets subject to operating leases ) )
Impairment
Effect of exchange rate changes
Balance at September 30, 2024 582,717 426,670,293 4,118,436,637 68,444,399 790,740 4,614,924,786
Carrying amounts at January 1, 2024 7,063,923 430,809,064 1,685,977,156 33,075,105 907,499,011 3,064,424,259
Carrying amounts at September 30, 2024 12,557,340 441,530,615 1,627,385,995 32,852,436 957,065,242 3,071,391,628

All values are in US Dollars.

(Continued)

  • 20 -
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) )
Disposals or retirements ) ) ) )
Transfers from right-of-use assets
Transfers from assets subject to operating leases
Transfers to assets subject to operating leases ) )
Effect of exchange rate changes
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<br><br>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
Disposals or retirements ) ) ) )
Transfers from right-of-use assets
Transfers from assets subject to operating leases
Transfers to assets subject to operating leases ) )
Effect of exchange rate changes
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

All values are in US Dollars.

(Concluded)

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

In the second quarter of 2024, the Company recognized an impairment loss due to partial plant facilities and machinery and equipment damage caused by an earthquake, which rendered them unusable. Please refer to the related earthquake losses in Note 34.

Information about capitalized interest is set out in Note 22.

15.    LEASE ARRANGEMENTS

a.    Right-of-use assets

September 30,2024 December 31,2023 September 30,2023
Carrying amounts
Land 36,725,766 37,437,179 38,056,493
Buildings
Office equipment
39,698,749 40,424,830 41,254,711

All values are in US Dollars.

  • 21 -
Nine Months Ended September 30
2024 2023
Additions to right-of-use assets $ 3,214,068 $ 2,006,983
Three Months Ended September 30 Nine Months Ended September 30
--- --- --- --- --- --- --- --- ---
2024 2023 2024 2023
Depreciation of right-of-use assets
Land 639,841 618,681 1,874,273 1,838,310
Buildings
Machinery and equipment
Office equipment
888,290 881,047 2,738,986 2,594,949

All values are in US Dollars.

b.    Lease liabilities

September 30,2024 December 31,2023 September 30,2023
Carrying amounts
Current portion (classified under accrued expenses and other current liabilities) 2,899,784 2,810,551 2,775,196
Noncurrent portion
31,108,505 31,492,386 32,190,521

All values are in US Dollars.

Ranges of discount rates for lease liabilities are as follows:

September 30,<br><br>2024 December 31,<br><br>2023 September 30,<br><br>2023
Land 0.39%-2.30% 0.39%-2.30% 0.39%-2.30%
Buildings 0.40%-6.52% 0.57%-6.52% 0.47%-6.52%
Office equipment 0.28%-6.45% 0.28%-7.13% 0.28%-7.13%

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<br><br>September 30 Nine Months Ended<br><br>September 30
2024 2023 2024 2023
Expenses relating to short-term leases $ 62,182 $ 155,708 $ 121,651 $ 1,170,143
  • 22 -
Nine Months Ended September 30
2024 2023
Total cash outflow for leases $ 2,613,735 $ 4,052,060

16.    INTANGIBLE ASSETS

Goodwill Technology License Fees Software and System Design Costs Patent and Others Total
Cost
Balance at January 1, 2024 5,796,438 26,221,351 49,317,031 12,347,434 93,682,254
Additions
Disposals or retirements ) ) ) )
Effect of exchange rate changes
Balance at September 30, 2024 5,917,424 26,954,464 49,375,158 13,114,078 95,361,124
Accumulated amortization and<br><br>impairment
Balance at January 1, 2024 - 20,490,070 39,846,671 10,578,769 70,915,510
Additions
Disposals or retirements ) ) ) )
Effect of exchange rate changes
Balance at September 30, 2024 - 22,536,540 39,517,691 11,223,862 73,278,093
Carrying amounts at January 1, 2024 5,796,438 5,731,281 9,470,360 1,768,665 22,766,744
Carrying amounts at September 30, 2024 5,917,424 4,417,924 9,857,467 1,890,216 22,083,031
Cost
Balance at January 1, 2023 5,791,821 25,759,019 48,675,794 11,701,892 91,928,526
Additions
Disposals or retirements ) )
Effect of exchange rate changes
Balance at September 30, 2023 6,004,735 26,163,791 52,203,757 11,831,728 96,204,011
Accumulated amortization and<br><br>impairment
Balance at January 1, 2023 - 17,696,437 38,838,394 9,394,540 65,929,371
Additions
Disposals or retirements ) )
Effect of exchange rate changes
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

All values are in US Dollars.

The Company’s goodwill has been tested for impairment at the end of the annual reporting period and the recoverable amount is determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering the future five-year period, and the Company used annual discount rate of 9.0% in its test of impairment as of December 31, 2023 to reflect the relevant specific risk in the cash-generating unit.

  • 23 -

17.    BONDS PAYABLE

September 30,2024 December 31,2023 September 30,2023
Domestic unsecured bonds 478,026,000 447,194,000 440,462,000
Overseas unsecured bonds
Less: Discounts on bonds payable ) ) )
Less: Current portion ) ) )
909,703,588 913,899,843 932,479,423

All values are in US Dollars.

The Company issued domestic unsecured bonds for the nine months ended September 30, 2024. The major terms are as follows:

Issuance Issuance Period Total Amount Coupon <br>Rate Repayment and <br>Interest Payment
NT unsecured   bonds
113-1(Green bond) March 2024 to March 2029 12,000,000 1.64% Bullet repayment; interest payable annually
March 2024 to March 2034 1.76% The same as above
113-2(Green bond) May 2024 to May 2029 1.98% The same as above
May 2024 to May 2034 2.10% The same as above

All values are in US Dollars.

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 1.00% The same as above
September 2020 to September 2030 1.375% The same as above
April 2021 to April 2026 1.25% The same as above
April 2021 to April 2028 1.75% The same as above
April 2021 to April 2031 2.25% The same as above

All values are in US Dollars.

(Continued)

  • 24 -
Issuance Period Total Amount (US in Thousands) Coupon Rate Repayment and Interest Payment
October 2021 to October 2026 US 1,250,000 1.75% Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually
October 2021 to October 2031 2.50% The same as above
October 2021 to October 2041 3.125% The same as above
October 2021 to October 2051 3.25% The same as above
April 2022 to April 2027 3.875% The same as above
April 2022 to April 2029 4.125% The same as above
April 2022 to April 2032 4.25% The same as above
April 2022 to April 2052 4.50% The same as above
July 2022 to July 2027 4.375% The same as above
July 2022 to July 2032 4.625% The same as above

All values are in US Dollars.

(Concluded)

18.    LONG-TERM BANK LOANS

December 31,2023 September 30,2023
NT unsecured loans 5,046,667 6,706,389 7,218,889
unsecured loans
Less: Discounts on government grants ) ) )
Less: Current portion ) ) )
26,459,677 4,382,965 5,013,050
Loan content
Annual interest rate
Maturity date

All values are in Japanese Yen.

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

The Company is required to maintain certain financial covenants during the borrowing period, including the annual equity of the subsidiary receiving the partial loan not to fall below a specific amount; its debt-to-equity ratio must not exceed a certain ratio; and the ratio of the Company’s annual debt to earnings before interest, taxes, depreciation, and amortization (EBITDA) not to exceed a certain multiple.

  • 25 -

19.    EQUITY

a.    Capital stock

September 30,<br><br>2024 December 31,<br><br>2023 September 30,<br><br>2023
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) 25,932,733 25,932,071 25,932,071
Issued capital $ 259,327,332 $ 259,320,710 $ 259,320,710

The par value of issued common shares is NT$10 per share. A holder of common shares has one vote for each common share and is entitled to receive dividends.

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

On September 1, 2024, March 1, 2024 and March 1, 2023, the Company issued employee restricted stock awards (RSAs) for its employees in a total of 2,353 thousand shares, 2,960 thousand shares and 2,110 thousand shares, respectively, with a par value of NT$10 per share. The aforementioned issuance of new shares was approved by the relevant authority and the registration has been completed.

During the first quarter of 2024 and 2023, TSMC reclaimed 1,402 thousand and 419 thousand employee restricted shares, respectively, that were unvested. On June 5, 2024 and 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 August 13, 2024, TSMC’s Board of Directors resolved to cancel 3,249 thousand treasury shares. Refer to Note 19(e) for the information.

As of September 30, 2024, TSMC’s total issued and outstanding ADSs were 1,062,819 thousand units, representing 5,314,096 thousand common shares.

b.    Capital surplus

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

September 30,2024 December 31,2023 September 30,2023
May be used to offset a deficit, distributed as<br><br>cash dividends, or transferred to share<br><br>capital
Additional paid-in capital 24,809,704 24,406,854 24,406,854
From merger
From convertible bonds
From difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal
Donations - donated by shareholders

All values are in US Dollars.

(Continued)

  • 26 -
September 30,2024 December 31,2023 September 30,2023
May only be used to offset a deficit
From share of changes in equities of subsidiaries 4,113,816 4,199,936 4,210,955
From share of changes in equities of associates
Donations - unclaimed dividend
May not be used for any purpose
Employee restricted shares
72,390,172 69,876,381 69,879,218

All values are in US Dollars.

(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 -

The appropriations of 2024, 2023 and 2022 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 2024 of 2024 of 2024
Board of Directors in its November 12, August 13, May 10,
meeting 2024 2024 2024
Special capital reserve $ - $ - $ (28,020,822 )
Cash dividends to shareholders $ 116,697,300 $ 103,721,521 $ 103,734,517
Cash dividends per share (NT$) $ 4.50 $ 4.00 $ 4.00
Fourth Quarter Third Quarter Second Quarter First Quarter
--- --- --- --- --- --- --- --- --- --- ---
Resolution Date of TSMC’s of 2023 of 2023 of 2023 of 2023
Board of Directors in its February 6, November 14, August 8, May 9,
meeting 2024 2023 2023 2023
Special capital reserve $ 28,020,822 $ (17,228,363 ) $ (6,365,562 ) $ 3,273,452
Cash dividends to shareholders $ 90,762,248 $ 90,762,248 $ 77,796,213 $ 77,796,213
Cash dividends per share (NT$) $ 3.50 $ 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

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, 2024
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 (25,316,769 ) (4,099,928 ) 1,395,875 (293,434 ) (28,314,256 )
Exchange differences arising on translation of foreign operations
Gain (loss) on hedging instruments designated as hedges of net investments in foreign operations
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments
Debt instruments
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal ) )
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal

All values are in US Dollars.

(Continued)

  • 28 -
Nine Months Ended September 30, 2024
Foreign Currency Translation Reserve Unrealized Gain (Loss) on Financial Assets at FVTOCI Gain (Loss) on Hedging Instruments Unearned Stock-Based Employee Compensation Total
Loss allowance adjustments from debt instruments - 13,079 - - 13,079
Gain (loss) arising on changes in the fair value of hedging instruments and hedged item affects profit or loss ) )
Transferred to initial carrying amount of hedged items ) )
Issuance of employee restricted stock ) )
Share-based payment expenses recognized
Share of other comprehensive income (loss) of associates )
Income tax effect ) )
Balance, end of period (1,828,916 ) 3,626,372 1,340,003 (2,215,051 ) 922,408

All values are in US Dollars.

(Concluded)

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
Gain (loss) on hedging instruments designated as hedges of net investments in foreign operations
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments
Debt instruments ) )
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal ) )
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal
Loss allowance adjustments from debt instruments
Gain (loss) arising on changes in the fair value of hedging instruments and hedged item affects profit or loss ) )
Transferred to initial carrying amount of hedged items ) )
Issuance of employee restricted stock ) )
Share-based payment expenses recognized
Share of other comprehensive income (loss) of associates
Income tax effect ) )
Balance, end of period 18,198,873 (10,609,427 ) 1,448,219 (420,735 ) 8,616,930

All values are in US Dollars.

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 June 5, 2024 to repurchase 3,249 thousand shares. TSMC has completed this share buyback program during the second quarter of 2024. On August 13, 2024, TSMC’s Board of Directors resolved to cancel the 3,249 thousand shares and set September 1, 2024 as the record date for capital reduction. The registration for share cancellation was completed on September 11, 2024.

  • 29 -

20.    NET REVENUE

a.    Disaggregation of revenue from contracts with customers

Three Months Ended September 30 Nine Months Ended September 30
Product 2024 2023 2024 2023
Wafer 645,121,210 473,037,347 1,763,258,801 1,342,457,631
Others
759,692,143 546,732,758 2,025,846,521 1,536,206,985

All values are in US Dollars.

Three Months Ended September 30 Nine Months Ended September 30
Geography 2024 2023 2024 2023
Taiwan 72,582,081 36,868,992 201,443,281 104,596,734
United States
China
Japan
Europe, the Middle East and Africa
Others
759,692,143 546,732,758 2,025,846,521 1,536,206,985

All values are in US Dollars.

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 2024 2023 2024 2023
High Performance Computing 389,309,409 227,816,587 1,015,474,913 667,707,961
Smartphone
Internet of Things
Automotive
Digital Consumer Electronics
Others
759,692,143 546,732,758 2,025,846,521 1,536,206,985

All values are in US Dollars.

Three Months Ended September 30 Nine Months Ended September 30
Resolution 2024 2023 2024 2023
3-nanometer 129,922,709 28,994,752 265,482,929 29,478,462
5-nanometer
7-nanometer
16-nanometer
20-nanometer
28-nanometer
40/45-nanometer
65-nanometer
90-nanometer
0.11/0.13 micron
0.15/0.18 micron
0.25 micron and above
Wafer revenue 645,121,210 473,037,347 1,763,258,801 1,342,457,631

All values are in US Dollars.

  • 30 -

b.    Contract balances

September 30,<br><br>2024 December 31,<br><br>2023 September 30,<br><br>2023 January 1,<br><br>2023
Contract liabilities (classified under accrued expenses and other current liabilities) $ 86,939,340 $ 52,736,430 $ 50,852,364 $ 70,806,617

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$2,522,193 thousand and NT$5,620,410 thousand for the three months ended September 30, 2024 and 2023, respectively; and NT$51,163,255 thousand and NT$69,030,566 thousand for the nine months ended September 30, 2024 and 2023, respectively.

c.    Temporary receipts from customers

September 30,2024 December 31,2023 September 30,2023
Current portion (classified under accrued expenses and other current liabilities) 188,664,298 114,639,514 152,751,076
Noncurrent portion (classified under other noncurrent liabilities)
267,997,223 278,294,642 301,664,852

All values are in US Dollars.

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
2024 2023 2024 2023
Interest income
Cash and cash equivalents 18,702,813 12,607,398 52,156,310 35,717,276
Financial assets at FVTOCI
Financial assets at amortized cost
22,601,654 15,595,274 62,940,059 42,885,113

All values are in US Dollars.

  • 31 -

22.    FINANCE COSTS

Three Months Ended September 30 Nine Months Ended September 30
2024 2023 2024 2023
Interest expense
Corporate bonds 4,885,516 4,594,570 14,394,417 13,177,497
Lease liabilities
Bank loans
Others
Less: Capitalized interest under property, plant and equipment ) ) ) )
2,635,790 3,111,922 7,972,185 9,080,763

All values are in US Dollars.

Information about capitalized interest is as follows:

Three Months Ended<br><br>September 30 Nine Months Ended<br><br>September 30
2024 2023 2024 2023
Capitalization rate 1.32%-3.34% 1.20%-3.36% 1.20%-3.34% 1.08%-3.36%

23.    OTHER GAINS AND LOSSES, NET

Three Months Ended September 30 Nine Months Ended September 30
2024 2023 2024 2023
Loss on disposal of financial assets, net
Investments in debt instruments at FVTOCI (81,416 ) (115,078 ) (286,502 ) (372,631 )
Gain (loss) on financial instruments at FVTPL, net
Mandatorily measured at FVTPL )
The accrual of expected credit loss of financial assets
Investments in debt instruments at FVTOCI ) ) ) )
Financial assets at amortized cost ) ) ) )
Other (losses) gains, net )
1,650,403 938,648 (3,759,023 ) 3,919,901

All values are in US Dollars.

  • 32 -

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
2024 2023 2024 2023
Current income tax expense
Current tax expense recognized in the current period 59,666,969 33,869,144 167,602,133 103,890,142
Income tax adjustments on prior years ) ) ) )
Other income tax adjustments
Deferred income tax expense (benefit)
The origination and reversal of temporary differences ) )
Investment tax credits and operating loss carryforward ) )
) ) ) )
Income tax expense recognized in profit or loss 59,106,682 31,145,221 159,077,760 101,429,019

All values are in US Dollars.

b.    Income tax examination

The tax authorities have examined income tax returns of TSMC through 2022. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.

25.    EARNINGS PER SHARE

Three Months Ended<br><br>September 30 Nine Months Ended<br><br>September 30
2024 2023 2024 2023
Basic EPS $ 12.55 $ 8.14 $ 30.80 $ 23.13
Diluted EPS $ 12.54 $ 8.14 $ 30.80 $ 23.13

EPS is computed as follows:

Three Months Ended<br><br>September 30 Nine Months Ended<br><br>September 30
2024 2023 2024 2023
Basic EPS
Net income available to common shareholders of the parent $ 325,257,571 $ 210,999,939 $ 798,587,976 $ 599,785,521

(Continued)

  • 33 -
Three Months Ended<br><br>September 30 Nine Months Ended<br><br>September 30
2024 2023 2024 2023
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands) 25,926,018 25,929,267 25,928,074 25,929,208
Basic EPS (in dollars) $ 12.55 $ 8.14 $ 30.80 $ 23.13
Diluted EPS
Net income available to common shareholders of the parent $ 325,257,571 $ 210,999,939 $ 798,587,976 $ 599,785,521
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands) 25,926,018 25,929,267 25,928,074 25,929,208
Effects of all dilutive potential common shares (in thousands) 2,206 91 1,637 130
Weighted average number of common shares used in the computation of diluted EPS (in thousands) 25,928,224 25,929,358 25,929,711 25,929,338
Diluted EPS (in dollars) $ 12.54 $ 8.14 $ 30.80 $ 23.13

(Concluded)

26.    SHARE-BASED PAYMENT ARRANGEMENTS

a.    Equity-settled share-based payment-RSAs

The RSAs in each year are as follows:

2024 RSAs 2023 RSAs 2022 RSAs 2021 RSAs
Resolution Date of TSMC’s shareholders in its meeting June 4, 2024 June 6, 2023 June 8, 2022 July 26, 2021
Resolution Date of TSMC’s Board of Directors in its meeting August 13, 2024 February 6, 2024 February 14, 2023 February 15, 2022
Issuance of stocks (in thousands) 2,353 2,960 2,110 1,387
Available for issuance (in thousands) 1,832 3,289 - -
Eligible employees Executive officers Executive officers Executive officers Executive officers
Grant date/Issuance date September 1, 2024 March 1, 2024 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.

  • 34 -

2)    The maximum percentage of granted RSAs that may be vested each year shall be as follows: one-year anniversary of the grant: 50%; two-year anniversary of the grant: 25%; and three-year anniversary of the grant: 25%; provided that the actual percentage and number of the RSAs to be vested in each year will be calculated based on the achievement of TSMC’s business performance metrics.

3)    For eligible executive officers of TSMC: The maximum number of RSAs that may be vested in each year will be set as 110%, among which 100% will be subject to a calculation based on TSMC’s relative Total Shareholder Return (”TSR”, including capital gains and dividends) achievement to determine the number of RSAs to be vested; this number will be further subject to a modifier to increase or decrease up to 10% based on the Compensation and People Development Committee’s evaluation of TSMC’s Environmental, Social, and Governance (”ESG”) achievements. The number of shares so calculated should be rounded down to the nearest integral.

TSMC’s TSR relative to the<br><br>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:

2024 RSAs 2023 RSAs 2022 RSAs 2021 RSAs
Number of Shares<br><br>(In Thousands) Number of Shares<br><br>(In Thousands) Number of Shares<br><br>(In Thousands) Number of Shares<br><br>(In Thousands)
Balance, beginning of period - - 2,110 694
Issuance of stocks 2,353 2,960 - -
Canceled shares - - (1,055 ) (347 )
Balance, end of period 2,353 2,960 1,055 347
Weighted-average fair value of RSAs (in dollars) $ 662.42 $ 364.43 $ 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:

2024 RSAs 2023 RSAs 2022 RSAs 2021 RSAs
September 1, 2024 March 1, 2024 March 1, 2023 March 1, 2022
Stock price at measurement date (in dollars) 944 689 511 604
Expected price volatility
Expected life
Risk-free interest rate

All values are in US Dollars.

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

  • 35 -

b.    Cash-settled share-based payment arrangements

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

2023 Plan 2022 Plan 2021 Plan
Resolution Date of TSMC’s Board of Directors in its meeting February 6,<br><br>2024 February 14,<br><br>2023 February 15,<br><br>2022
Issuance of units (in thousands) (Note) 550 400 236
Grant date March 1, 2024 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
2024 2023
2023 Plan 2022 Plan 2021 Plan 2022 Plan 2021 Plan
Stock price at measurement date <br>(in dollars) 1,000 1,000 1,000 522 522
Expected price volatility
Residual life
Risk-free interest rate

All values are in US Dollars.

Refer to Note 27 for the compensation costs of the cash-settled share-based payment recognized by TSMC. As of September 30, 2024, December 31, 2023 and September 30, 2023, the liabilities under cash-settled share-based payment arrangement amounted to NT$312,357 thousand, NT$62,695 thousand and NT$50,222 thousand, respectively.

27.    ADDITIONAL INFORMATION OF EXPENSES BY NATURE

Three Months Ended September 30 Nine Months Ended September 30
2024 2023 2024 2023
a.    Depreciation of property, plant and equipment and right-of-use assets
Recognized in cost of revenue 156,176,635 137,203,831 458,796,761 352,150,676
Recognized in operating expenses
Recognized in other operating income and expenses
165,915,135 144,926,830 485,541,546 374,654,167

All values are in US Dollars.

  • 36 -
Three Months Ended September 30 Nine Months Ended September 30
2024 2023 2024 2023
b.    Amortization of intangible assets
Recognized in cost of revenue 1,584,940 1,672,325 4,752,015 4,859,139
Recognized in operating expenses
2,313,422 2,353,332 6,876,767 6,888,324
c.    Employee benefits expenses
Post-employment benefits
Defined contribution plans 1,507,484 1,355,745 4,387,257 3,980,104
Defined benefit plans
Share-based payments
Equity-settled
Cash-settled
Other employee benefits
80,395,226 60,266,683 213,086,855 174,386,397
Employee benefits expense summarized by function
Recognized in cost of revenue 43,538,300 33,519,721 115,999,386 98,158,663
Recognized in operating expenses
80,395,226 60,266,683 213,086,855 174,386,397

All values are in US Dollars.

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<br><br>September 30 Nine Months Ended<br><br>September 30
2024 2023 2024 2023
Profit sharing bonus to employees $ 19,517,346 $ 12,607,089 $ 47,815,500 $ 35,832,625
  • 37 -

TSMC’s profit sharing bonus to employees and compensation to directors for 2023 and 2022 had been approved by the Board of Directors of TSMC, as illustrated below:

Years Ended December 31
2023 2022
Resolution Date of TSMC’s Board of Directors in its meeting February 6,<br><br>2024 February 14,<br><br>2023
Profit sharing bonus to employees $ 50,090,533 $ 60,702,047
Compensation to directors $ 551,955 $ 690,128

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2023 and 2022, respectively.

The information about the appropriations of TSMC’s profit sharing bonus to employees and compensation to directors is available at the Market Observation Post System website.

28.    GOVERNMENT GRANTS

Subsidiaries such as TSMC Arizona, JASM and TSMC Nanjing received subsidies from the governments of the United States, Japan and China, respectively, for local plant setup and operation, which were mainly used to subsidize the purchase costs of property, plant and equipment, as well as partial costs and expenses incurred from plant construction and production. For the nine months ended September 30, 2024 and 2023, the Company received a total of NT$16,043,339 thousand and NT$20,757,802 thousand as government grants, respectively.

29.    CASH FLOW INFORMATION

a.    Non-cash transactions

Nine Months Ended September 30
2024 2023
Additions of financial assets at FVTOCI 67,243,640 56,055,303
Conversion of convertible bonds into equity securities ) )
Changes in accrued expenses and other current liabilities ) )
Payments for acquisition of financial assets at FVTOCI 64,117,242 54,832,622
Disposal of financial assets at FVTOCI 45,501,690 28,988,810
Changes in other financial assets ) )
Proceeds from disposal of financial assets at FVTOCI 43,454,000 28,804,766
Additions of property, plant and equipment 475,365,683 796,779,912
Changes in other receivables
Exchange of assets ) )
Changes in payables to contractors and equipment suppliers )
Changes in accrued expenses and other current liabilities
Transferred to initial carrying amount of hedged items
Capitalized interests ) )
Payments for acquisition of property, plant and equipment 594,058,374 779,656,605

All values are in US Dollars.

  • 38 -

b.    Reconciliation of liabilities arising from financing activities

Non-cash Changes
Balance as of January 1, 2024 Financing Cash Flow Foreign Exchange Movement Leases Modifications Other Changes(Note) Balance as of September 30, 2024
Hedging financial liabilities- bank loans 27,290,400 (26,496,570 ) (793,830 ) - - -
Bonds payable
Long-term bank loans
Lease liabilities ) )
Total 986,358,860 21,733,814 15,477,431 1,925,844 580,804 1,026,076,753

All values are in US Dollars.

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
Long-term bank loans
Lease liabilities )
Total 890,777,976 84,423,818 26,301,528 1,919,167 560,187 1,003,982,676

All values are in US Dollars.

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

30.    FINANCIAL INSTRUMENTS

a.    Categories of financial instruments

September 30,2024 December 31,2023 September 30,2023
Financial assets
FVTPL (Note 1) 15,566,035 14,342,093 490,163
FVTOCI (Note 2)
Hedging financial assets
Amortized cost (Note 3)
2,601,831,244 2,023,905,526 1,897,225,822
Financial liabilities
FVTPL (Note 4) 34,277 121,412 132,768
Hedging financial liabilities
Amortized cost (Note 5)
1,849,030,240 1,768,812,131 1,847,376,223

All values are in US Dollars.

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.

  • 39 -

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 prices. A portion of these risks is hedged.

Foreign currency risk

Substantially all the Company’s sales are denominated in U.S. dollars and over half of its capital expenditures are denominated in currencies other than NT dollars, primarily in U.S. dollars, Japanese yen and Euros. As a result, any significant fluctuations to its disadvantage in the exchanges rate of NT dollar against such currencies, in particular a weakening of U.S. dollar against NT dollar, would have an adverse impact on the revenue and operating profit as expressed in NT dollars. The Company uses foreign currency derivative contracts, such as currency forwards or currency swaps, and non-derivative financial instruments, such as foreign currency denominated debts, to protect against currency exchange rate risks associated with non-NT dollar-denominated assets and liabilities, investments in foreign operations, and certain forecasted transactions. These hedges reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements on the assets and liabilities.

Based on a sensitivity analysis performed on the Company’s total monetary assets and liabilities for the nine months ended September 30, 2024 and 2023, a hypothetical adverse foreign currency exchange rate change of 10% would have decreased its net income by NT$4,748,405 thousand and NT$362,316 thousand respectively.

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 or at amortized cost. For those fixed income investments classified as financial assets at FVTOCI, changes in their fair value are recognized through other comprehensive income; for those classified as financial assets at amortized cost, changes in their fair value are not reflected in the carrying amount. Both classifications recognized in profit or loss if the assets are sold. 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.

  • 40 -

Based on a sensitivity analysis performed on the Company’s fixed income investments at the end of the reporting period, interest rates increase of 100 basis points (1.00%) across all maturities would have decreased the Company’s other comprehensive income by NT$4,473,470 thousand and NT$3,887,322 thousand for the nine months ended September 30, 2024 and 2023, 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 convertible preferred stocks, equity instrument investments, and other investments price risk arising from financial assets at FVTPL and FVTOCI.

Assuming a hypothetical decrease of 10% in prices of the investments mentioned above at the end of the reporting period, the net income would have decreased by NT$1,167,572 thousand for the nine months ended September 30, 2024, and the other comprehensive income would have decreased by NT$1,148,393 thousand and NT$925,125 thousand for the nine months ended September 30, 2024 and 2023, 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, 2024, December 31, 2023 and September 30, 2023, the Company’s ten largest customers accounted for 88%, 91% and 85% 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 -

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, 2024 and 2023, the expected credit loss increased NT$38,190 thousand and NT$46,881 thousand, respectively. The changes were mainly due to adjusted investment portfolio and fluctuations in exchange rates.

e.    Liquidity risk management

The objective of liquidity risk management is to ensure the Company has sufficient liquidity to fund its business operations over the next 12 months. The Company manages its liquidity risk by maintaining adequate cash and cash equivalents, financial assets at FVTOCI-current, financial assets at amortized cost-current and sufficient cost-efficient funding.

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments, including principal and interest.

Less Than 1 Year 1-3 Years 3-5 Years More Than 5 Years Total
September 30, 2024
Non-derivative financial liabilities
Accounts payable (including related parties) 70,820,047 - - - 70,820,047
Payables to contractors and equipment suppliers
Accrued expenses and other current liabilities
Bonds payable
Long-term bank loans
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)
Others
Derivative financial instruments
Forward exchange contracts
Outflows
Inflows ) )
) )
640,164,777 400,532,699 239,865,096 605,334,612 1,885,897,184

All values are in US Dollars.

(Continued)

  • 42 -
Less Than 1 Year 1-3 Years 3-5 Years More Than 5 Years Total
December 31, 2023
Non-derivative financial liabilities
Hedging financial liabilities-bank loans 27,290,400 - - - 27,290,400
Accounts payable (including related parties)
Payables to contractors and equipment suppliers
Accrued expenses and other current liabilities
Bonds payable
Long-term bank loans
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)
Others
Derivative financial instruments
Forward exchange contracts
Outflows
Inflows ) )
) )
527,072,895 398,388,735 315,076,373 608,027,208 1,848,565,211
September 30, 2023
Non-derivative financial liabilities
Hedging financial liabilities-bank loans 26,879,864 - - - 26,879,864
Accounts payable (including related parties)
Payables to contractors and equipment suppliers
Accrued expenses and other current liabilities
Bonds payable
Long-term bank loans
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)
Others
Derivative financial instruments
Forward exchange contracts
Outflows
Inflows ) )
) )
612,865,487 322,737,283 379,991,015 638,838,455 1,954,432,240

All values are in US Dollars.

(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<br><br>20 Years Total
September 30, 2024
Lease liabilities $ 10,174,011 $ 6,731,154 $ 3,523,977 $ 67,996 $ 20,497,138

(Continued)

  • 43 -
5-10 Years 10-15 Years 15-20 Years More Than<br><br>20 Years Total
December 31, 2023
Lease liabilities $ 10,197,521 $ 7,121,539 $ 4,117,107 $ 318,208 $ 21,754,375
September 30, 2023
Lease liabilities $ 10,347,093 $ 7,277,535 $ 4,244,674 $ 474,955 $ 22,344,257

(Concluded)

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, 2024
Level 1 Level 2 Level 3 Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Convertible preferred stocks - - 13,692,780 13,692,780
Forward exchange contracts
Mutual funds
Simple agreement for future equity
- 971,386 14,594,649 15,566,035
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds - 106,675,983 - 106,675,983
Agency mortgage-backed securities
Government bonds/Agency bonds
Asset-backed securities

All values are in US Dollars.

(Continued)

  • 44 -
September 30, 2024
Level 1 Level 2 Level 3 Total
Investments in equity instruments
Non-publicly traded equity investments - - 7,502,973 7,502,973
Publicly traded stocks
Notes and accounts receivable, net
27,566,763 168,054,016 7,502,973 203,123,752
Hedging financial assets
Fair value hedges
Interest rate futures contracts 1,079 - - 1,079
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts - 34,277 - 34,277
Hedging financial liabilities
Fair value hedges
Interest rate futures contracts 1,875 - - 1,875

All values are in US Dollars.

(Concluded)

December 31, 2023
Level 1 Level 2 Level 3 Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Convertible preferred stocks - - 13,307,160 13,307,160
Forward exchange contracts
Convertible bonds
Mutual funds
- 701,182 13,640,911 14,342,093
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds - 79,605,567 - 79,605,567
Agency mortgage-backed securities
Government bonds/Agency bonds
Asset-backed securities
Investments in equity instruments
Non-publicly traded equity investments
Publicly traded stocks
Notes and accounts receivable, net
26,818,992 133,123,155 7,208,655 167,150,802
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts - 121,412 - 121,412
Hedging financial liabilities
Fair value hedges
Interest rate futures contracts 43,764 - - 43,764

All values are in US Dollars.

  • 45 -
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
Mutual funds
- 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
Government bonds/Agency bonds
Asset-backed securities
Investments in equity instruments
Non-publicly traded equity investments
Publicly traded stocks
Notes and accounts receivable, net
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

All values are in US Dollars.

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, 2024 and 2023 are as follows:

Nine Months Ended September 30
2024 2023
Balance, beginning of period 20,849,566 6,282,052
Additions
Recognized in profit or loss )
Recognized in other comprehensive income or loss )
Disposals and proceeds from return of capital of investments ) )
Transfers out of level 3 (Note) )
Effect of exchange rate changes
Balance, end of period 22,097,622 8,276,458

All values are in US Dollars.

  • 46 -

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 convertible preferred stocks, convertible bonds, simple agreement for future equity, mutual funds and non-publicly traded equity investments (excluding those trading on the Emerging Stock Board) are mainly determined by using the asset approach, income approach and market approach.

The asset approach takes into account the net asset value measured at the fair value by independent parties. On September 30, 2024, December 31, 2023 and September 30, 2023, 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$53,470 thousand, NT$52,704 thousand and NT$59,572 thousand, respectively, if discounts for lack of marketability increase by 1%.

The income approach utilizes discounted cash flows to determine the present value of the expected future economic benefits that will be derived from the investment. On September 30, 2024, the Company mainly uses unobservable inputs, which include expected returns, discount rate of 7.9%, and discount for lack of marketability of 20%. On September 30, 2024, with other inputs remain equal, if discount rate increases by 1%, the fair value will decrease by NT$590,127 thousand; if discount for lack of marketability increases by 1%, the fair value will decrease by NT$142,378 thousand.

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

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

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

  • 47 -

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, 2024
Carrying Fair Value
Amount Level 1 Level 2 Total
Financial assets
Financial assets at amortized costs
Corporate bonds 137,277,630 - 138,689,936 138,689,936
Commercial paper
Government bonds/Agency bonds
164,464,159 4,326,268 161,669,622 165,995,890
Financial liabilities
Financial liabilities at amortized costs
Bonds payable 965,715,237 - 900,337,602 900,337,602

All values are in US Dollars.

December 31, 2023
Carrying Fair Value
Amount Level 1 Level 2 Total
Financial assets
Financial assets at amortized costs
Corporate bonds 113,785,324 - 113,694,397 113,694,397
Commercial paper
Government bonds/Agency bonds
145,960,588 2,751,893 143,132,960 145,884,853
Financial liabilities
Financial liabilities at amortized costs
Bonds payable 920,897,553 - 849,236,882 849,236,882

All values are in US Dollars.

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
Government bonds/Agency bonds
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

All values are in US Dollars.

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.

  • 48 -

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 Charity Foundation Other related parties
TSMC Education and Culture Foundation Other related parties

b.    Net revenue

Three Months Ended<br><br>September 30 Nine Months Ended<br><br>September 30
2024 2023 2024 2023
Item Related Party Categories
Net revenue from sale of goods Associates $ 3,729,245 $ 2,707,687 $ 11,394,850 $ 9,934,126

c.    Purchases

Three Months Ended<br><br>September 30 Nine Months Ended<br><br>September 30
2024 2023 2024 2023
Related Party Categories
Associates $ 1,282,865 $ 922,561 $ 3,545,858 $ 3,303,946

d.    Receivables from related parties

September 30,2024 December 31,2023 September 30,2023
Item Related Party Name
Receivables from GUC 259,441 514,819 199,068
related parties Xintec
403,379 624,451 356,257
Other receivables SSMC 57,564 58,093 60,333
from related VIS
parties
74,477 71,871 82,363

All values are in US Dollars.

  • 49 -

e.    Payables to related parties

September 30,2024 December 31,2023 September 30,2023
Item Related Party Name
Payables to related Xintec 1,165,016 1,020,226 1,186,773
parties SSMC
Others
1,685,850 1,566,300 1,621,423

All values are in US Dollars.

f.    Others

Three Months Ended<br><br>September 30 Nine Months Ended<br><br>September 30
2024 2023 2024 2023
Item Related Party Categories
Manufacturing expenses Associates $ 1,683,167 $ 1,536,508 $ 3,780,950 $ 3,454,397

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.

g.    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
2024 2023 2024 2023
Short-term employee benefits 1,086,604 817,111 3,028,668 2,454,401
Post-employment benefits
Share-based payments
1,409,429 952,226 3,883,126 2,844,204

All values are in US Dollars.

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, 2024, December 31, 2023 and September 30, 2023, the aforementioned other financial assets amounted to NT$127,743 thousand, NT$124,302 thousand and NT$128,861 thousand, respectively.

  • 50 -

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.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.

d.TSMC entered into a long-term purchase agreement of equipment. The relative fulfillment quantity and price are specified in the agreement.

e.TSMC entered into long-term energy purchase agreements with multiple suppliers. The relative fulfillment period, quantity and price are specified in the agreements.

f.Amounts available under unused letters of credit as of September 30, 2024, December 31, 2023 and September 30, 2023 were NT$472,988 thousand, NT$433,994 thousand and NT$391,084 thousand, respectively.

g.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, 2024, December 31, 2023 and September 30, 2023, the aforementioned guarantee amounted to NT$10,144,487 thousand, NT$8,012,973 thousand, and NT$8,064,025 thousand, respectively.

34.    SIGNIFICANT LOSS FROM DISASTER

On April 3, 2024, an earthquake struck Taiwan. The resulting damage was mostly to inventories, plant facilities and machinery and equipment. In the second quarter of 2024, the Company recognized related earthquake losses to be approximately NT$3 billion, net of insurance claim. Such losses were primarily included in the cost of revenue and other operating income and expenses in net amounts.

  • 51 -

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

The following information was summarized according to the foreign currencies other than the functional currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant financial assets and liabilities denominated in foreign currencies were as follows:

Exchange Rate<br><br>(Note 1) Carrying Amount(In Thousands)
September 30, 2024
Financial assets
Monetary items
16,643,822 31.638 526,577,229
35.412
1.119 (Note 2)
0.2222
Financial liabilities
Monetary items
31.638
35.412
1.119 (Note 2)
0.2222
December 31, 2023
Financial assets
Monetary items
30.747
34.175
1.111 (Note 2)
0.2192
Financial liabilities
Monetary items
30.747
34.175
1.111 (Note 2)
0.2192
September 30, 2023
Financial assets
Monetary items
32.281
33.989
1.053 (Note 2)
0.2159

All values are in Euros.

(Continued)

  • 52 -
Exchange Rate<br><br>(Note 1) Carrying Amount(In Thousands)
Financial liabilities
Monetary items
14,086,103 32.281 454,713,480
33.989
1.053 (Note 2)
0.2159

All values are in Euros.

(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 U.S. dollar for which one Euro could be exchanged.

Please refer to the consolidated statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss for the three months and the nine months ended September 30, 2024 and 2023, respectively. Since there were varieties of foreign currency transactions and functional currencies within the subsidiaries of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact.

36.    ADDITIONAL DISCLOSURES

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

a.Financings provided: See Table 1 attached;

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

c.Marketable securities held (excluding investments in subsidiaries and associates): 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;

  • 53 -

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.

37.    OPERATING SEGMENTS INFORMATION

TSMC’s chief operating decision makers periodically review operating results, focusing on operating income generated by foundry segment. Operating results are used for resource allocation and/or performance assessment. As a result, the Company has only one operating segment, the foundry segment. The foundry segment engages mainly in the manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks.

The basis for the measurement of income from operations is the same as that for the preparation of financial statements. Please refer to the consolidated statements of comprehensive income for the related segment revenue and operating results.

  • 54 -

TABLE 1

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

FINANCINGS PROVIDED

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
No. Financing Company Counterparty Financial Statement Account Related Party Maximum<br><br>Balance for the Period (Foreign Currencies in Thousands)<br><br>(Note 4) Ending Balance (Foreign Currencies in Thousands) (Note 4) 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 to 3) Financing Company’s Total Financing Amount Limits (Notes 1 to 3)
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Item Value
0 TSMC TSMC Arizona Other receivables from related parties Yes $<br><br>(US$ 94,914,000<br><br>3,000,000 $<br><br>) - The need for short-term financing - Capacity installation and working capital - - - 399,001,915 798,003,831
1 TSMC China TSMC Nanjing Other receivables from related parties Yes $<br><br>(RMB<br><br>(US$ 53,928,620<br><br>8,800,000<br><br>450,000 $<br><br>)&<br><br>) (RMB(US 50,320,300<br><br>8,000,000<br><br>450,000 $<br><br>)&<br><br>) (RMB 36,083,200<br><br>8,000,000 $<br><br>) 1.30%-1.50% The need for short-term and long-term financing Operating capital -
2 TSMC Development TSMC Washington Other receivables from related parties Yes $<br><br>(US$ 1,898,280<br><br>60,000 $<br><br>) (US 1,898,280<br><br>60,000 $<br><br>) (US 949,140<br><br>30,000 $<br><br>) - The need for short-term financing Operating capital -

All values are in US Dollars.

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 aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development.

Note 4: The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.

  • 55 -

TABLE 2

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
No. Endorsement/<br><br>Guarantee Provider Guaranteed Party Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party(Notes 1 and 2) Maximum Balance <br>for the Period<br>(Foreign Currencies in Thousands)<br><br>(Note 3) Ending Balance<br>(Foreign Currencies in Thousands)<br><br>(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<br><br>Provided by<br><br>Parent Company Guarantee<br><br>Provided by<br><br>A Subsidiary Guarantee<br><br>Provided to Subsidiaries in Mainland China
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Name Nature of Relationship
0 TSMC TSMC North America Subsidiary 1,596,007,661 $<br><br>(US$ 2,632,702<br><br>83,213 ) $<br><br>(US$ 2,632,702<br><br>83,213 ) (US ) - 0.07% 1,596,007,661 Yes No No
TSMC Global Subsidiary (US$ 237,285,000<br><br>7,500,000 ) (US$ 237,285,000<br><br>7,500,000 ) (US ) 5.95% Yes No No
TSMC Arizona Subsidiary (US$ 380,681,704<br><br>12,032,420 ) (US$ 380,681,704<br><br>12,032,420 ) (US ) 9.54% Yes No No
1 TSMC Japan TSMC JDC The same parent company (JPY 293,304<br><br>1,320,000 ) (JPY 293,304<br><br>1,320,000 ) ( ) 0.01% No No No

All values are in US Dollars.

Note 1:    TSMC provides endorsements and guarantees for TSMC North America, TSMC Global and TSMC Arizona. Both individual and total endorsements and guarantees 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 -

TABLE 3

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

MARKETABLE SECURITIES HELD

SEPTEMBER 30, 2024

(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, 2024 Note
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Percentage of Ownership (%) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Non-publicly traded equity investments
United Industrial Gases Co., Ltd. - Financial assets at fair value through other comprehensive income 21,230 486,601 10 486,601
Shin-Etsu Handotai Taiwan Co., Ltd. - 〃 10,500 7
Global Investment Holding Inc. - 〃 10,442 6
Commercial paper
China Steel Corporation - Financial assets at amortized cost 770 N/A
Cathay Financial Holding Co., Ltd. - 〃 432 N/A
Formosa Chemicals & Fibre Corporation - 〃 250 N/A
Taiwan Power Company - 〃 245 N/A
CPC Corporation, Taiwan - 〃 220 N/A
Formosa Plastics Corporation - 〃 200 N/A
Nan Ya Plastics Corporation - 〃 185 N/A
TSMC Partners Fund
Carbon Nature SCSp - Financial assets at fair value through Profit or Loss - US 9,487 18 US 9,487
Imprint Nature-Based Opportunities Offshore SCSp - 〃 - US 7,567 5 US 7,567
Matter Venture Partners Fund I, L.P. - 〃 - US 7,452 7 US 7,452
Non-publicly traded equity investments
Shanghai Walden Venture Capital Enterprise - Financial assets at fair value through other comprehensive income - US 21,709 6 US 21,709
Walden Technology Ventures Investments II, L.P. - 〃 - US 19,310 9 US 19,310
Walden Technology Ventures Investments III, L.P. - 〃 - US 11,703 4 US 11,703
Tela Innovations - 〃 6,942 22
Publicly traded stocks
ARM Holdings plc - Financial assets at fair value through other comprehensive income 1,111 US 158,853 - US 158,853
Movella Holdings Inc. - 〃 3,095 US 48 6 US 48
TSMC Global Corporate bond
Bank of America Corporation - Financial assets at fair value through other comprehensive income - US 102,697 N/A US 102,697
Morgan Stanley - 〃 - US 89,991 N/A US 89,991
Wells Fargo & Company - 〃 - US 83,317 N/A US 83,317
JPMorgan Chase & Co. - 〃 - US 82,887 N/A US 82,887
The Goldman Sachs Group, Inc. - 〃 - US 75,146 N/A US 75,146
Citigroup Inc. - 〃 - US 59,091 N/A US 59,091
HSBC Holdings plc - 〃 - US 39,159 N/A US 39,159
BNP Paribas SA - 〃 - US 38,615 N/A US 38,615
Principal Life Global Funding II - 〃 - US 37,419 N/A US 37,419
Sumitomo Mitsui Trust Bank, Limited - 〃 - US 36,782 N/A US 36,782
NatWest Group plc - 〃 - US 36,613 N/A US 36,613
Banco Santander, S.A. - 〃 - US 36,174 N/A US 36,174

All values are in US Dollars.

(Continued)

  • 57 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global Nationwide Building Society - Financial assets at fair value through other comprehensive income - US 35,691 N/A US$ 35,691
Credit Agricole SA London Branch - 〃 - US 35,136 N/A US$ 35,136
BPCE SA - 〃 - US 34,215 N/A US$ 34,215
Barclays PLC - 〃 - US 33,769 N/A US$ 33,769
Lloyds Banking Group plc - 〃 - US 30,488 N/A US$ 30,488
Hyundai Capital America - 〃 - US 30,065 N/A US$ 30,065
Sumitomo Mitsui Financial Group, Inc. - 〃 - US 29,686 N/A US$ 29,686
American Express Company - 〃 - US 27,950 N/A US$ 27,950
Volkswagen Group of America Finance, LLC - 〃 - US 25,924 N/A US$ 25,924
Athene Global Funding - 〃 - US 25,494 N/A US$ 25,494
Toyota Motor Credit Corporation - 〃 - US 24,607 N/A US$ 24,607
Deutsche Bank AG - New York Branch - 〃 - US 24,278 N/A US$ 24,278
Penske Truck Leasing Co., L.P. - 〃 - US 23,943 N/A US$ 23,943
The Toronto-Dominion Bank - 〃 - US 23,788 N/A US$ 23,788
The Bank of Nova Scotia - 〃 - US 22,925 N/A US$ 22,925
AIG Global Funding - 〃 - US 22,750 N/A US$ 22,750
Banque Fédérative du Crédit Mutuel - 〃 - US 22,198 N/A US$ 22,198
Glencore Funding LLC - 〃 - US 21,501 N/A US$ 21,501
Bank of Montreal - 〃 - US 21,320 N/A US$ 21,320
Capital One Financial Corporation - 〃 - US 21,026 N/A US$ 21,026
Equitable Financial Life Global Funding - 〃 - US 20,951 N/A US$ 20,951
General Motors Financial Company, Inc. - 〃 - US 20,925 N/A US$ 20,925
Bunge Limited Finance Corp. - 〃 - US 20,812 N/A US$ 20,812
Mizuho Financial Group, Inc. - 〃 - US 20,765 N/A US$ 20,765
RGA Global Funding - 〃 - US 20,555 N/A US$ 20,555
ABN AMRO Bank N.V. - 〃 - US 19,731 N/A US$ 19,731
Macquarie Bank Limited - 〃 - US 19,610 N/A US$ 19,610
Daimler Trucks Finance North America LLC - 〃 - US 19,479 N/A US$ 19,479
Danske Bank A/S - 〃 - US 18,583 N/A US$ 18,583
UnitedHealth Group Incorporated - 〃 - US 18,527 N/A US$ 18,527
Mitsubishi UFJ Financial Group, Inc. - 〃 - US 18,193 N/A US$ 18,193
NTT Finance Corporation - 〃 - US 18,130 N/A US$ 18,130
Royal Bank of Canada - 〃 - US 18,101 N/A US$ 18,101
Metropolitan Life Global Funding I - 〃 - US 17,946 N/A US$ 17,946
Guardian Life Global Funding - 〃 - US 17,932 N/A US$ 17,932
Fédération des caisses Desjardins du Québec - 〃 - US 17,484 N/A US$ 17,484
Enel Finance International N.V. - 〃 - US 17,228 N/A US$ 17,228
NatWest Markets Plc - 〃 - US 16,586 N/A US$ 16,586
Coöperatieve Rabobank U.A. - 〃 - US 16,418 N/A US$ 16,418
New York Life Global Funding - 〃 - US 16,383 N/A US$ 16,383
Oracle Corporation - 〃 - US 16,068 N/A US$ 16,068
U.S. Bancorp. - 〃 - US 15,863 N/A US$ 15,863
Roper Technologies, Inc. - 〃 - US 15,619 N/A US$ 15,619
UBS Group AG - 〃 - US 15,560 N/A US$ 15,560
Northwestern Mutual Global Funding - 〃 - US 15,512 N/A US$ 15,512
Jackson National Life Global Funding - 〃 - US 15,419 N/A US$ 15,419
Philip Morris International Inc. - 〃 - US 15,229 N/A US$ 15,229
Protective Life Global Funding - 〃 - US 15,116 N/A US$ 15,116
NextEra Energy Capital Holdings, Inc. - 〃 - US 15,061 N/A US$ 15,061
The Kroger Co. - 〃 - US 15,035 N/A US$ 15,035
BMW US Capital, LLC - 〃 - US 14,866 N/A US$ 14,866

All values are in US Dollars.

(Continued)

  • 58 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global Quest Diagnostics Incorporated - Financial assets at fair value through other comprehensive income - US 14,634 N/A US$ 14,634
ING Groep N.V. - 〃 - US 14,469 N/A US$ 14,469
AerCap Ireland Capital Designated Activity Company - 〃 - US 14,283 N/A US$ 14,283
Santander Holdings USA, Inc. - 〃 - US 14,190 N/A US$ 14,190
SMBC Aviation Capital Finance DAC - 〃 - US 14,183 N/A US$ 14,183
National Securities Clearing Corporation - 〃 - US 14,060 N/A US$ 14,060
Ryder System, Inc. - 〃 - US 13,860 N/A US$ 13,860
Standard Chartered PLC - 〃 - US 13,687 N/A US$ 13,687
The Bank of New York Mellon Corporation - 〃 - US 13,602 N/A US$ 13,602
Southern California Edison Company - 〃 - US 13,276 N/A US$ 13,276
COÖPERATIEVE RABOBANK U.A., NEW YORK BRANCH - 〃 - US 13,240 N/A US$ 13,240
Amphenol Corporation - 〃 - US 13,191 N/A US$ 13,191
ONEOK, Inc. - 〃 - US 12,808 N/A US$ 12,808
BAE Systems plc - 〃 - US 12,801 N/A US$ 12,801
Equifax Inc. - 〃 - US 12,371 N/A US$ 12,371
CNO Global Funding - 〃 - US 11,978 N/A US$ 11,978
Mercedes-Benz Finance North America LLC - 〃 - US 11,928 N/A US$ 11,928
Bristol-Myers Squibb Company - 〃 - US 11,926 N/A US$ 11,926
Truist Financial Corporation - 〃 - US 11,849 N/A US$ 11,849
Amazon.com, Inc. - 〃 - US 11,637 N/A US$ 11,637
National Rural Utilities Cooperative Finance Corporation - 〃 - US 11,436 N/A US$ 11,436
Nomura Holdings, Inc. - 〃 - US 11,436 N/A US$ 11,436
AT&T Inc. - 〃 - US 11,422 N/A US$ 11,422
Prologis Targeted U.S. Logistics Fund L.P. - 〃 - US 11,356 N/A US$ 11,356
MassMutual Global Funding II - 〃 - US 11,170 N/A US$ 11,170
ERAC USA Finance LLC - 〃 - US 11,002 N/A US$ 11,002
DTE Energy Company - 〃 - US 10,968 N/A US$ 10,968
S&P Global Inc. - 〃 - US 10,845 N/A US$ 10,845
Apple Inc. - 〃 - US 10,815 N/A US$ 10,815
Canadian Imperial Bank of Commerce - 〃 - US 10,137 N/A US$ 10,137
Macquarie Group Limited - 〃 - US 10,134 N/A US$ 10,134
Svenska Handelsbanken AB (publ) - 〃 - US 10,060 N/A US$ 10,060
T-Mobile USA, Inc. - 〃 - US 10,039 N/A US$ 10,039
Hewlett Packard Enterprise Company - 〃 - US 10,003 N/A US$ 10,003
Enbridge Inc. - 〃 - US 9,948 N/A US$ 9,948
John Deere Capital Corporation - 〃 - US 9,943 N/A US$ 9,943
Nordea Bank Abp - 〃 - US 9,919 N/A US$ 9,919
The Charles Schwab Corporation - 〃 - US 9,568 N/A US$ 9,568
Realty Income Corporation - 〃 - US 9,273 N/A US$ 9,273
Merck & Co., Inc. - 〃 - US 9,263 N/A US$ 9,263
LSEG US Fin Corp. - 〃 - US 9,223 N/A US$ 9,223
Public Service Enterprise Group Incorporated - 〃 - US 9,219 N/A US$ 9,219
Florida Power & Light Company - 〃 - US 9,173 N/A US$ 9,173
American Honda Finance Corporation - 〃 - US 9,134 N/A US$ 9,134
Amgen Inc. - 〃 - US 9,108 N/A US$ 9,108
Equinor ASA - 〃 - US 8,801 N/A US$ 8,801
Haleon US Capital LLC - 〃 - US 8,659 N/A US$ 8,659
Pioneer Natural Resources Company - 〃 - US 8,579 N/A US$ 8,579
Morgan Stanley Bank, N.A. - 〃 - US 8,577 N/A US$ 8,577
Pfizer Investment Enterprises Pte. Ltd. - 〃 - US 8,566 N/A US$ 8,566
Goldman Sachs Bank USA - 〃 - US 8,347 N/A US$ 8,347

All values are in US Dollars.

(Continued)

  • 59 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global Aon North America, Inc. - Financial assets at fair value through other comprehensive income - US 8,285 N/A US$ 8,285
Verizon Communications Inc. - 〃 - US 8,272 N/A US$ 8,272
Citibank, N.A. - 〃 - US 8,233 N/A US$ 8,233
Lowe's Companies, Inc. - 〃 - US 8,227 N/A US$ 8,227
Tampa Electric Company - 〃 - US 8,222 N/A US$ 8,222
META PLATFORMS INC - 〃 - US 8,144 N/A US$ 8,144
Kimco Realty Corporation - 〃 - US 8,132 N/A US$ 8,132
KfW - 〃 - US 8,126 N/A US$ 8,126
Société Générale Société anonyme - 〃 - US 8,038 N/A US$ 8,038
Constellation Energy Generation, LLC - 〃 - US 8,025 N/A US$ 8,025
Santander UK Group Holdings plc - 〃 - US 7,960 N/A US$ 7,960
Intuit Inc. - 〃 - US 7,776 N/A US$ 7,776
Roche Holdings, Inc. - 〃 - US 7,755 N/A US$ 7,755
AstraZeneca Finance LLC - 〃 - US 7,519 N/A US$ 7,519
Johnson & Johnson - 〃 - US 7,349 N/A US$ 7,349
Bank of Ireland Group plc - 〃 - US 7,272 N/A US$ 7,272
Pacific Gas and Electric Company - 〃 - US 7,261 N/A US$ 7,261
Chevron Corporation - 〃 - US 7,215 N/A US$ 7,215
McKesson Corporation - 〃 - US 7,201 N/A US$ 7,201
Keurig Dr Pepper Inc. - 〃 - US 7,101 N/A US$ 7,101
Intercontinental Exchange, Inc. - 〃 - US 7,052 N/A US$ 7,052
Cox Communications, Inc. - 〃 - US 7,047 N/A US$ 7,047
AstraZeneca PLC - 〃 - US 7,039 N/A US$ 7,039
Consumers Energy Company - 〃 - US 7,020 N/A US$ 7,020
Exelon Corporation - 〃 - US 7,005 N/A US$ 7,005
Novartis Capital Corporation - 〃 - US 6,907 N/A US$ 6,907
Great-West Lifeco U.S. Finance 2020, Lp - 〃 - US 6,863 N/A US$ 6,863
The Cigna Group - 〃 - US 6,775 N/A US$ 6,775
The East Ohio Gas Company - 〃 - US 6,711 N/A US$ 6,711
WEC Energy Group, Inc. - 〃 - US 6,699 N/A US$ 6,699
Fidelity National Information Services, Inc. - 〃 - US 6,666 N/A US$ 6,666
Pacific Life Global Funding II - 〃 - US 6,648 N/A US$ 6,648
Met Tower Global Funding - 〃 - US 6,643 N/A US$ 6,643
Swedbank AB (publ) - 〃 - US 6,584 N/A US$ 6,584
Health Care Service Corporation, a Mutual Legal Reserve Company - 〃 - US 6,531 N/A US$ 6,531
Take-Two Interactive Software, Inc. - 〃 - US 6,363 N/A US$ 6,363
Eaton Corporation - 〃 - US 6,306 N/A US$ 6,306
Empower Finance 2020, LP - 〃 - US 6,245 N/A US$ 6,245
Schlumberger Holdings Corporation - 〃 - US 6,064 N/A US$ 6,064
NBN Co Limited - 〃 - US 5,933 N/A US$ 5,933
HEICO Corporation - 〃 - US 5,912 N/A US$ 5,912
National Bank of Canada - 〃 - US 5,910 N/A US$ 5,910
Thermo Fisher Scientific Inc. - 〃 - US 5,905 N/A US$ 5,905
NiSource Inc. - 〃 - US 5,829 N/A US$ 5,829
Scentre Group Trust 1 - 〃 - US 5,820 N/A US$ 5,820
The Williams Companies, Inc. - 〃 - US 5,753 N/A US$ 5,753
Ingersoll Rand Inc. - 〃 - US 5,741 N/A US$ 5,741
Marriott International, Inc. - 〃 - US 5,687 N/A US$ 5,687
ASB Bank Limited - 〃 - US 5,686 N/A US$ 5,686
Workday, Inc. - 〃 - US 5,686 N/A US$ 5,686

All values are in US Dollars.

(Continued)

  • 60 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global Ameriprise Financial, Inc. - Financial assets at fair value through other comprehensive income - US 5,680 N/A US$ 5,680
Medtronic Global Holdings S.C.A. - 〃 - US 5,660 N/A US$ 5,660
RTX Corporation - 〃 - US 5,638 N/A US$ 5,638
Magna International Inc. - 〃 - US 5,548 N/A US$ 5,548
Starbucks Corporation - 〃 - US 5,521 N/A US$ 5,521
BorgWarner Inc. - 〃 - US 5,458 N/A US$ 5,458
Stryker Corporation - 〃 - US 5,453 N/A US$ 5,453
MPLX LP - 〃 - US 5,406 N/A US$ 5,406
Intel Corporation - 〃 - US 5,293 N/A US$ 5,293
Newmont Corporation - 〃 - US 5,268 N/A US$ 5,268
Sydney Airport Finance Company Pty Ltd - 〃 - US 5,268 N/A US$ 5,268
Inter-American Development Bank - 〃 - US 5,215 N/A US$ 5,215
Virginia Electric and Power Company - 〃 - US 5,181 N/A US$ 5,181
NATIONAL SECURITIES CLEARING CORP - 〃 - US 5,175 N/A US$ 5,175
Southwest Airlines Co. - 〃 - US 5,096 N/A US$ 5,096
Smith & Nephew plc - 〃 - US 5,093 N/A US$ 5,093
CGI Inc. - 〃 - US 5,062 N/A US$ 5,062
Spire Inc. - 〃 - US 5,060 N/A US$ 5,060
Bank of New Zealand - 〃 - US 5,037 N/A US$ 5,037
AbbVie Inc. - 〃 - US 5,028 N/A US$ 5,028
Mizuho Markets Cayman LP - 〃 - US 4,999 N/A US$ 4,999
ONE Gas, Inc. - 〃 - US 4,969 N/A US$ 4,969
Ameren Corporation - 〃 - US 4,951 N/A US$ 4,951
Alabama Power Company - 〃 - US 4,949 N/A US$ 4,949
Brookfield Finance Inc. - 〃 - US 4,944 N/A US$ 4,944
Deutsche Telekom International Finance B.V. - 〃 - US 4,874 N/A US$ 4,874
ANZ New Zealand (Int'l) Limited - 〃 - US 4,865 N/A US$ 4,865
HP Inc. - 〃 - US 4,771 N/A US$ 4,771
National Australia Bank Limited, New York Branch - 〃 - US 4,762 N/A US$ 4,762
Fifth Third Bancorp - 〃 - US 4,699 N/A US$ 4,699
Georgia Power Company - 〃 - US 4,694 N/A US$ 4,694
F&G Global Funding - 〃 - US 4,606 N/A US$ 4,606
GA Global Funding Trust - 〃 - US 4,598 N/A US$ 4,598
ITC Holdings Corp. - 〃 - US 4,466 N/A US$ 4,466
State Street Corporation - 〃 - US 4,412 N/A US$ 4,412
AutoZone, Inc. - 〃 - US 4,386 N/A US$ 4,386
Brighthouse Financial Global Funding - 〃 - US 4,271 N/A US$ 4,271
Labcorp Holdings Inc. - 〃 - US 4,254 N/A US$ 4,254
Lincoln National Corporation - 〃 - US 4,132 N/A US$ 4,132
AvalonBay Communities, Inc. - 〃 - US 4,129 N/A US$ 4,129
Piedmont Natural Gas Company, Inc. - 〃 - US 4,073 N/A US$ 4,073
Korea Electric Power Corporation - 〃 - US 4,065 N/A US$ 4,065
Public Storage - 〃 - US 4,065 N/A US$ 4,065
Mid-Atlantic Interstate Transmission, LLC - 〃 - US 4,062 N/A US$ 4,062
Schlumberger Investment SA - 〃 - US 4,060 N/A US$ 4,060
L3Harris Technologies, Inc. - 〃 - US 3,985 N/A US$ 3,985
Duke Energy Carolinas, LLC - 〃 - US 3,970 N/A US$ 3,970
Banco Bilbao Vizcaya Argentaria, S.A. - 〃 - US 3,962 N/A US$ 3,962
Alliant Energy Finance, LLC - 〃 - US 3,939 N/A US$ 3,939
CNH Industrial Capital LLC - 〃 - US 3,929 N/A US$ 3,929
B.A.T. International Finance p.l.c. - 〃 - US 3,928 N/A US$ 3,928

All values are in US Dollars.

(Continued)

  • 61 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global GAIF Bond Issuer Pty Limited - Financial assets at fair value through other comprehensive income - US 3,918 N/A US$ 3,918
Eli Lilly and Company - 〃 - US 3,876 N/A US$ 3,876
Fortinet, Inc. - 〃 - US 3,818 N/A US$ 3,818
Alimentation Couche-Tard Inc. - 〃 - US 3,780 N/A US$ 3,780
Appalachian Power Company - 〃 - US 3,715 N/A US$ 3,715
Walmart Inc. - 〃 - US 3,715 N/A US$ 3,715
Texas Instruments Incorporated - 〃 - US 3,690 N/A US$ 3,690
Norsk Hydro ASA - 〃 - US 3,653 N/A US$ 3,653
Parker-Hannifin Corporation - 〃 - US 3,617 N/A US$ 3,617
Nutrien Ltd. - 〃 - US 3,616 N/A US$ 3,616
Advocate Health & Hospitals Corporation - 〃 - US 3,601 N/A US$ 3,601
CenterPoint Energy Resources Corp. - 〃 - US 3,572 N/A US$ 3,572
Burlington Northern Santa Fe, LLC - 〃 - US 3,549 N/A US$ 3,549
Meta Platforms, Inc. - 〃 - US 3,480 N/A US$ 3,480
Cisco Systems, Inc. - 〃 - US 3,457 N/A US$ 3,457
Comcast Corporation - 〃 - US 3,455 N/A US$ 3,455
Sempra - 〃 - US 3,452 N/A US$ 3,452
Chubb INA Holdings LLC - 〃 - US 3,438 N/A US$ 3,438
Pfizer Inc. - 〃 - US 3,391 N/A US$ 3,391
DuPont de Nemours, Inc. - 〃 - US 3,278 N/A US$ 3,278
Wisconsin Electric Power Company - 〃 - US 3,276 N/A US$ 3,276
Republic Services, Inc. - 〃 - US 3,255 N/A US$ 3,255
Lundin Energy Finance BV - 〃 - US 3,236 N/A US$ 3,236
Corebridge Financial, Inc. - 〃 - US 3,202 N/A US$ 3,202
Fiserv, Inc. - 〃 - US 3,169 N/A US$ 3,169
Tyco Electronics Group S.A. - 〃 - US 3,167 N/A US$ 3,167
Atmos Energy Corporation - 〃 - US 3,161 N/A US$ 3,161
UBS AG, London Branch - 〃 - US 3,148 N/A US$ 3,148
Nestlé Holdings, Inc. - 〃 - US 3,142 N/A US$ 3,142
Anheuser-Busch Companies, LLC - 〃 - US 3,137 N/A US$ 3,137
Duke Energy Corporation - 〃 - US 3,111 N/A US$ 3,111
Mutual Of Omaha Companies Global Funding - 〃 - US 3,071 N/A US$ 3,071
The PNC Financial Services Group, Inc. - 〃 - US 3,062 N/A US$ 3,062
Caterpillar Financial Services Corporation - 〃 - US 3,047 N/A US$ 3,047
ORIX Corporation - 〃 - US 3,025 N/A US$ 3,025
Prologis, L.P. - 〃 - US 3,024 N/A US$ 3,024
Archer-Daniels-Midland Company - 〃 - US 3,012 N/A US$ 3,012
Southern California Gas Company - 〃 - US 3,008 N/A US$ 3,008
Citizens Bank, National Association - 〃 - US 3,003 N/A US$ 3,003
Xcel Energy Inc. - 〃 - US 2,946 N/A US$ 2,946
Fortive Corporation - 〃 - US 2,943 N/A US$ 2,943
Rio Tinto Finance (USA) Limited - 〃 - US 2,909 N/A US$ 2,909
Rochester Gas and Electric Corporation - 〃 - US 2,906 N/A US$ 2,906
BHP Billiton Finance (USA) Limited - 〃 - US 2,885 N/A US$ 2,885
Lockheed Martin Corporation - 〃 - US 2,876 N/A US$ 2,876
CSL Finance plc - 〃 - US 2,867 N/A US$ 2,867
7-Eleven, Inc. - 〃 - US 2,833 N/A US$ 2,833
Simon Property Group, L.P. - 〃 - US 2,784 N/A US$ 2,784
Invitation Homes Operating Partnership LP - 〃 - US 2,783 N/A US$ 2,783
Oncor Electric Delivery Company LLC - 〃 - US 2,769 N/A US$ 2,769
Ventas Realty, Limited Partnership - 〃 - US 2,728 N/A US$ 2,728

All values are in US Dollars.

(Continued)

  • 62 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global Weyerhaeuser Company - Financial assets at fair value through other comprehensive income - US 2,720 N/A US$ 2,720
Chevron Phillips Chemical Company LLC - 〃 - US 2,703 N/A US$ 2,703
Bayer US Finance LLC - 〃 - US 2,695 N/A US$ 2,695
Masco Corporation - 〃 - US 2,686 N/A US$ 2,686
Eastern Energy Gas Holdings, LLC - 〃 - US 2,678 N/A US$ 2,678
The Estée Lauder Companies Inc. - 〃 - US 2,651 N/A US$ 2,651
Pennsylvania Electric Company - 〃 - US 2,647 N/A US$ 2,647
The Southern Company - 〃 - US 2,640 N/A US$ 2,640
O'Reilly Automotive, Inc. - 〃 - US 2,634 N/A US$ 2,634
Transcontinental Gas Pipe Line Company, LLC - 〃 - US 2,631 N/A US$ 2,631
Avangrid, Inc. - 〃 - US 2,624 N/A US$ 2,624
Air Products and Chemicals, Inc. - 〃 - US 2,617 N/A US$ 2,617
KBC Group NV - 〃 - US 2,612 N/A US$ 2,612
Kraton Corporation - 〃 - US 2,556 N/A US$ 2,556
Otis Worldwide Corporation - 〃 - US 2,541 N/A US$ 2,541
Siemens Financieringsmaatschappij N.V. - 〃 - US 2,536 N/A US$ 2,536
American Electric Power Company, Inc. - 〃 - US 2,524 N/A US$ 2,524
Nuveen Finance, LLC - 〃 - US 2,497 N/A US$ 2,497
Entergy Texas, Inc. - 〃 - US 2,486 N/A US$ 2,486
W. P. Carey Inc. - 〃 - US 2,443 N/A US$ 2,443
CRH America, Inc. - 〃 - US 2,435 N/A US$ 2,435
Westpac Banking Corporation - 〃 - US 2,419 N/A US$ 2,419
NBN CO LTD - 〃 - US 2,407 N/A US$ 2,407
DNB Bank ASA - 〃 - US 2,379 N/A US$ 2,379
Yara International ASA - 〃 - US 2,369 N/A US$ 2,369
CVS Health Corporation - 〃 - US 2,368 N/A US$ 2,368
Boston Gas Company - 〃 - US 2,353 N/A US$ 2,353
Cardinal Health, Inc. - 〃 - US 2,316 N/A US$ 2,316
GE HealthCare Technologies Inc. - 〃 - US 2,294 N/A US$ 2,294
Pricoa Global Funding I - 〃 - US 2,267 N/A US$ 2,267
Bimbo Bakeries USA, Inc. - 〃 - US 2,247 N/A US$ 2,247
Enel Finance America, LLC - 〃 - US 2,233 N/A US$ 2,233
Dominion Energy, Inc. - 〃 - US 2,184 N/A US$ 2,184
Humana Inc. - 〃 - US 2,134 N/A US$ 2,134
Phillips 66 - 〃 - US 2,120 N/A US$ 2,120
Welltower Inc. - 〃 - US 2,097 N/A US$ 2,097
CMS Energy Corporation - 〃 - US 2,090 N/A US$ 2,090
Air Lease Corporation - 〃 - US 2,054 N/A US$ 2,054
Public Service Electric and Gas Company - 〃 - US 2,039 N/A US$ 2,039
KODIT Global 2023-1 Co., Ltd. - 〃 - US 2,018 N/A US$ 2,018
Olympus Corporation - 〃 - US 2,004 N/A US$ 2,004
UBS Group Funding (Jersey) Ltd. - 〃 - US 1,992 N/A US$ 1,992
Tucson Electric Power Company - 〃 - US 1,982 N/A US$ 1,982
FirstEnergy Transmission, LLC - 〃 - US 1,973 N/A US$ 1,973
Gulf Power Company - 〃 - US 1,969 N/A US$ 1,969
Shinhan Financial Group Co., Ltd. - 〃 - US 1,924 N/A US$ 1,924
Mitsubishi Corporation - 〃 - US 1,894 N/A US$ 1,894
NBK SPC Limited - 〃 - US 1,885 N/A US$ 1,885
Aptiv PLC - 〃 - US 1,823 N/A US$ 1,823
Eversource Energy - 〃 - US 1,813 N/A US$ 1,813
Engie SA - 〃 - US 1,809 N/A US$ 1,809

All values are in US Dollars.

(Continued)

  • 63 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global Mondelez International, Inc. - Financial assets at fair value through other comprehensive income - US 1,804 N/A US$ 1,804
CenterPoint Energy Houston Electric, LLC - 〃 - US 1,797 N/A US$ 1,797
Kentucky Utilities Company - 〃 - US 1,782 N/A US$ 1,782
Element Fleet Management Corp. - 〃 - US 1,778 N/A US$ 1,778
KeySpan Corporation - 〃 - US 1,742 N/A US$ 1,742
Evergy Kansas Central, Inc. - 〃 - US 1,730 N/A US$ 1,730
Georgia-Pacific LLC - 〃 - US 1,713 N/A US$ 1,713
Motorola Solutions, Inc. - 〃 - US 1,707 N/A US$ 1,707
Wells Fargo Bank, National Association - 〃 - US 1,691 N/A US$ 1,691
University of California - 〃 - US 1,685 N/A US$ 1,685
The Western Union Company - 〃 - US 1,671 N/A US$ 1,671
eBay Inc. - 〃 - US 1,651 N/A US$ 1,651
Emerson Electric Co. - 〃 - US 1,641 N/A US$ 1,641
International Business Machines Corporation - 〃 - US 1,620 N/A US$ 1,620
Gulfstream Natural Gas System, L.L.C. - 〃 - US 1,613 N/A US$ 1,613
Jefferies Financial Group Inc. - 〃 - US 1,578 N/A US$ 1,578
B.A.T Capital Corporation - 〃 - US 1,573 N/A US$ 1,573
Cadence Design Systems, Inc. - 〃 - US 1,571 N/A US$ 1,571
Genuine Parts Company - 〃 - US 1,564 N/A US$ 1,564
Kinder Morgan, Inc. - 〃 - US 1,555 N/A US$ 1,555
Zoetis Inc. - 〃 - US 1,554 N/A US$ 1,554
Essex Portfolio, L.P. - 〃 - US 1,551 N/A US$ 1,551
Wipro IT Services LLC - 〃 - US 1,530 N/A US$ 1,530
APA Infrastructure Limited - 〃 - US 1,529 N/A US$ 1,529
Phillips 66 Company - 〃 - US 1,529 N/A US$ 1,529
Entergy Mississippi, LLC - 〃 - US 1,525 N/A US$ 1,525
American International Group, Inc. - 〃 - US 1,520 N/A US$ 1,520
CenterPoint Energy, Inc. - 〃 - US 1,486 N/A US$ 1,486
NSTAR Electric Company - 〃 - US 1,480 N/A US$ 1,480
Duke Energy Florida, LLC - 〃 - US 1,478 N/A US$ 1,478
Berkshire Hathaway Energy Company - 〃 - US 1,471 N/A US$ 1,471
Dollar General Corporation - 〃 - US 1,455 N/A US$ 1,455
Jersey Central Power & Light Company - 〃 - US 1,445 N/A US$ 1,445
IDEX Corporation - 〃 - US 1,373 N/A US$ 1,373
Aon Corporation - 〃 - US 1,350 N/A US$ 1,350
Northrop Grumman Corporation - 〃 - US 1,339 N/A US$ 1,339
Eastern Gas Transmission and Storage, Inc. - 〃 - US 1,337 N/A US$ 1,337
Andrew W. Mellon Foundation, The - 〃 - US 1,309 N/A US$ 1,309
Elevance Health, Inc. - 〃 - US 1,300 N/A US$ 1,300
Pernod Ricard International Finance LLC - 〃 - US 1,289 N/A US$ 1,289
Becton, Dickinson and Company - 〃 - US 1,261 N/A US$ 1,261
Union Pacific Corporation - 〃 - US 1,257 N/A US$ 1,257
Ecolab Inc. - 〃 - US 1,229 N/A US$ 1,229
Sysco Corporation - 〃 - US 1,221 N/A US$ 1,221
Solvay Finance (America), LLC - 〃 - US 1,180 N/A US$ 1,180
Mondelez International Holdings Netherlands B.V. - 〃 - US 1,157 N/A US$ 1,157
OGE Energy Corp. - 〃 - US 1,143 N/A US$ 1,143
Ferguson Finance PLC - 〃 - US 1,131 N/A US$ 1,131
Niagara Mohawk Power Corporation - 〃 - US 1,085 N/A US$ 1,085
Nucor Corporation - 〃 - US 1,085 N/A US$ 1,085
AIB Group plc - 〃 - US 1,083 N/A US$ 1,083

All values are in US Dollars.

(Continued)

  • 64 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global EDP Finance B.V. - Financial assets at fair value through other comprehensive income - US 1,060 N/A US$ 1,060
CBRE Services, Inc. - 〃 - US 1,045 N/A US$ 1,045
New York State Electric & Gas Corporation - 〃 - US 1,045 N/A US$ 1,045
PacifiCorp - 〃 - US 1,035 N/A US$ 1,035
MORGAN STANLEY BANK NA FXD-FRN - 〃 - US 1,022 N/A US$ 1,022
Sabine Pass Liquefaction, LLC - 〃 - US 1,018 N/A US$ 1,018
Bayer US Finance II LLC - 〃 - US 990 N/A US$ 990
American Water Capital Corp. - 〃 - US 987 N/A US$ 987
Canadian Pacific Railway Company - 〃 - US 979 N/A US$ 979
Juniper Networks, Inc. - 〃 - US 959 N/A US$ 959
LYB Finance Company B.V. - 〃 - US 942 N/A US$ 942
AEP Texas Inc. - 〃 - US 940 N/A US$ 940
Lennar Corporation - 〃 - US 939 N/A US$ 939
The Interpublic Group of Companies, Inc. - 〃 - US 937 N/A US$ 937
Assurant, Inc. - 〃 - US 935 N/A US$ 935
BAE Systems Finance Inc. - 〃 - US 921 N/A US$ 921
TC PipeLines, LP - 〃 - US 913 N/A US$ 913
County of Palm Beach, Florida - 〃 - US 855 N/A US$ 855
Metropolitan Edison Company - 〃 - US 830 N/A US$ 830
CubeSmart, L.P. - 〃 - US 821 N/A US$ 821
Cox Enterprises, Inc. - 〃 - US 801 N/A US$ 801
BP Capital Markets America, Inc. - 〃 - US 780 N/A US$ 780
Zimmer Biomet Holdings, Inc. - 〃 - US 780 N/A US$ 780
Southwest Gas Corporation - 〃 - US 779 N/A US$ 779
The Brooklyn Union Gas Company - 〃 - US 777 N/A US$ 777
Consolidated Edison Company of New York, Inc. - 〃 - US 769 N/A US$ 769
Veralto Corporation - 〃 - US 767 N/A US$ 767
Oklahoma Gas and Electric Company - 〃 - US 766 N/A US$ 766
Voya Financial, Inc. - 〃 - US 766 N/A US$ 766
PACCAR Financial Corp. - 〃 - US 765 N/A US$ 765
TELUS Corporation - 〃 - US 763 N/A US$ 763
Visa Inc. - 〃 - US 761 N/A US$ 761
Marsh & McLennan Companies, Inc. - 〃 - US 760 N/A US$ 760
Mars, Incorporated - 〃 - US 760 N/A US$ 760
Sprint Spectrum Co Llc - 〃 - US 730 N/A US$ 730
Hyundai Capital Services, Inc. - 〃 - US 718 N/A US$ 718
The Allstate Corporation - 〃 - US 695 N/A US$ 695
Sodexo, Inc. - 〃 - US 692 N/A US$ 692
Automatic Data Processing, Inc. - 〃 - US 670 N/A US$ 670
Baxter International Inc. - 〃 - US 664 N/A US$ 664
Reliance Standard Life Global Funding II - 〃 - US 657 N/A US$ 657
Southern Power Company - 〃 - US 637 N/A US$ 637
The Sherwin-Williams Company - 〃 - US 620 N/A US$ 620
Florida Hurricane Catastrophe Fund Finance Corporation - 〃 - US 610 N/A US$ 610
Infor, Inc. - 〃 - US 607 N/A US$ 607
Burlington Resources Inc. - 〃 - US 592 N/A US$ 592
Columbia Pipelines Holding Company, LLC - 〃 - US 573 N/A US$ 573
Columbia Pipelines Operating Company LLC - 〃 - US 553 N/A US$ 553
Skandinaviska Enskilda Banken AB (publ) - 〃 - US 533 N/A US$ 533
State of Hawaii - 〃 - US 533 N/A US$ 533
Arizona Public Service Company - 〃 - US 531 N/A US$ 531

All values are in US Dollars.

(Continued)

  • 65 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global AIA Group Limited - Financial assets at fair value through other comprehensive income - US 522 N/A US$ 522
Mississippi Power Company - 〃 - US 520 N/A US$ 520
Waste Management, Inc. - 〃 - US 518 N/A US$ 518
Monongahela Power Company - 〃 - US 516 N/A US$ 516
Intesa Sanpaolo S.p.A. - 〃 - US 512 N/A US$ 512
Westpac New Zealand Limited - 〃 - US 510 N/A US$ 510
Commonwealth Bank of Australia - 〃 - US 500 N/A US$ 500
Enterprise Products Operating LLC - 〃 - US 500 N/A US$ 500
Diageo Capital plc - 〃 - US 498 N/A US$ 498
Trane Technologies Luxembourg Finance S.A. - 〃 - US 495 N/A US$ 495
McCormick & Company, Incorporated - 〃 - US 491 N/A US$ 491
Altria Group, Inc. - 〃 - US 487 N/A US$ 487
Verisk Analytics, Inc. - 〃 - US 478 N/A US$ 478
DENSO Corporation - 〃 - US 472 N/A US$ 472
Aker BP ASA - 〃 - US 441 N/A US$ 441
The Home Depot, Inc. - 〃 - US 426 N/A US$ 426
Aflac Incorporated - 〃 - US 407 N/A US$ 407
Coca-Cola Consolidated, Inc. - 〃 - US 407 N/A US$ 407
GlaxoSmithKline Capital Inc. - 〃 - US 399 N/A US$ 399
Nuveen, LLC - 〃 - US 399 N/A US$ 399
Gilead Sciences, Inc. - 〃 - US 397 N/A US$ 397
Sierra Pacific Power Company - 〃 - US 390 N/A US$ 390
University of Massachusetts Building Authority - 〃 - US 390 N/A US$ 390
The Norinchukin Bank - 〃 - US 376 N/A US$ 376
CSX Corporation - 〃 - US 373 N/A US$ 373
Honeywell International Inc. - 〃 - US 366 N/A US$ 366
Cargill, Incorporated - 〃 - US 363 N/A US$ 363
Equitable Holdings, Inc. - 〃 - US 347 N/A US$ 347
Mid-America Apartments, L.P. - 〃 - US 321 N/A US$ 321
National Grid plc - 〃 - US 293 N/A US$ 293
Nordson Corporation - 〃 - US 288 N/A US$ 288
QatarEnergy - 〃 - US 284 N/A US$ 284
Electricité de France S.A. - 〃 - US 209 N/A US$ 209
Beth Israel Deaconess Medical Center, Inc. - 〃 - US 92 N/A US$ 92
Wells Fargo & Company - Financial assets at amortized cost - US 1,100,584 N/A US$ 1,116,453
Bank of America Corporation - 〃 - US 854,118 N/A US$ 862,830
Citigroup Inc. - 〃 - US 553,527 N/A US$ 556,788
JPMorgan Chase & Co. - 〃 - US 484,448 N/A US$ 489,884
Morgan Stanley - 〃 - US 459,800 N/A US$ 466,657
The Goldman Sachs Group, Inc. - 〃 - US 360,560 N/A US$ 363,122
Goldman Sachs Finance Corp International Ltd - 〃 - US 209,799 N/A US$ 211,020
BNP Paribas SA - 〃 - US 37,668 N/A US$ 37,702
Morgan Stanley Bank, N.A. - 〃 - US 27,004 N/A US$ 27,049
Nationwide Building Society - 〃 - US 10,559 N/A US$ 10,533
Daimler Trucks Finance North America LLC - 〃 - US 9,859 N/A US$ 9,862
Great-West Lifeco U.S. Finance 2020, Lp - 〃 - US 9,798 N/A US$ 9,787
Mizuho Financial Group, Inc. - 〃 - US 9,587 N/A US$ 9,789
UBS Group AG - 〃 - US 9,227 N/A US$ 9,274
Fédération des caisses Desjardins du Québec - 〃 - US 9,201 N/A US$ 9,225
Nomura Holdings, Inc. - 〃 - US 9,123 N/A US$ 9,118
NongHyup Bank - 〃 - US 9,070 N/A US$ 9,095

All values are in US Dollars.

(Continued)

  • 66 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global Banque Fédérative du Crédit Mutuel - Financial assets at amortized cost - US 8,463 N/A US$ 8,542
Canadian Imperial Bank of Commerce - 〃 - US 8,454 N/A US$ 8,471
Ventas Realty, Limited Partnership - 〃 - US 8,356 N/A US$ 8,356
Banco Santander, S.A. - 〃 - US 8,297 N/A US$ 8,333
Enel Finance International N.V. - 〃 - US 8,278 N/A US$ 8,281
Protective Life Global Funding - 〃 - US 8,051 N/A US$ 8,039
BPCE SA - 〃 - US 8,005 N/A US$ 7,999
CRH America, Inc. - 〃 - US 7,989 N/A US$ 7,963
Sydney Airport Finance Company Pty Ltd - 〃 - US 7,803 N/A US$ 7,805
Sumitomo Mitsui Financial Group, Inc. - 〃 - US 7,734 N/A US$ 7,766
AIG Global Funding - 〃 - US 7,698 N/A US$ 7,740
Banco Bilbao Vizcaya Argentaria, S.A. - 〃 - US 7,242 N/A US$ 7,284
Southern California Edison Company - 〃 - US 5,957 N/A US$ 5,978
NatWest Markets Plc - 〃 - US 5,565 N/A US$ 5,561
F&G Global Funding - 〃 - US 5,518 N/A US$ 5,530
ING Groep N.V. - 〃 - US 5,277 N/A US$ 5,357
Athene Global Funding - 〃 - US 5,208 N/A US$ 5,204
Hyundai Capital Services, Inc. - 〃 - US 5,105 N/A US$ 5,104
Svenska Handelsbanken AB (publ) - 〃 - US 4,787 N/A US$ 4,823
QNB Finance Ltd. - 〃 - US 4,516 N/A US$ 4,534
Sumitomo Mitsui Trust Bank, Limited - 〃 - US 4,186 N/A US$ 4,189
Lloyds Banking Group plc - 〃 - US 3,989 N/A US$ 3,991
Deutsche Bank AG - New York Branch - 〃 - US 3,987 N/A US$ 3,990
Volkswagen Group of America Finance, LLC - 〃 - US 3,911 N/A US$ 3,909
Mitsubishi UFJ Financial Group, Inc. - 〃 - US 3,826 N/A US$ 3,827
Jackson National Life Global Funding - 〃 - US 3,360 N/A US$ 3,353
ANZ New Zealand (Int'l) Limited - 〃 - US 3,298 N/A US$ 3,291
Scottish Power Limited - 〃 - US 3,183 N/A US$ 3,196
Spectra Energy Partners, LP - 〃 - US 2,866 N/A US$ 2,860
Georgia-Pacific LLC - 〃 - US 1,283 N/A US$ 1,293
GA Global Funding Trust - 〃 - US 1,189 N/A US$ 1,193
Reliance Standard Life Global Funding II - 〃 - US 1,102 N/A US$ 1,103
AIA Group Limited - 〃 - US 594 N/A US$ 596
Agency mortgage-backed securities
FEDERAL NATIONAL MORTGAGE ASSOCIATION - Financial assets at fair value through other comprehensive income - US 710,226 N/A US$ 710,226
Federal Home Loan Mortgage Corporation - 〃 - US 399,950 N/A US$ 399,950
Government National Mortgage Association - 〃 - US 271,358 N/A US$ 271,358
Government bond/Agency bonds
United States Department of The Treasury - Financial assets at fair value through other comprehensive income - US 654,745 N/A US$ 654,745
Federal Home Loan Mortgage Corporation - 〃 - US 5,003 N/A US$ 5,003
United States Department of The Treasury - Financial assets at amortized cost - US 133,566 N/A US$ 136,743
Asset-backed securities
Wells Fargo Commercial Mortgage Trust 2016-Bnk1 - Financial assets at fair value through other comprehensive income - US 10,273 N/A US$ 10,273
Gm Financial Consumer Automobile Receivables Trust 2023-3 - 〃 - US 9,045 N/A US$ 9,045
G23-182I - 〃 - US 8,560 N/A US$ 8,560
Ford Credit Auto Owner Trust 2021-Rev2 - 〃 - US 7,966 N/A US$ 7,966
Honda Auto Receivables 2024-1 Owner Trust - 〃 - US 7,766 N/A US$ 7,766
Toyota Auto Receivables 2022-B Owner Trust - 〃 - US 7,705 N/A US$ 7,705

All values are in US Dollars.

(Continued)

  • 67 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global Toyota Auto Loan Extended Note Trust 2023-1 - Financial assets at fair value through other comprehensive income - US 7,488 N/A US$ 7,488
Citigroup Commercial Mortgage Trust 2015-GC33 - 〃 - US 7,232 N/A US$ 7,232
Hyundai Auto Receivables Trust 2023-B - 〃 - US 7,228 N/A US$ 7,228
Ford Credit Auto Owner Trust 2020-REV2 - 〃 - US 7,110 N/A US$ 7,110
BBCMS Mortgage Trust 2020-C8 - 〃 - US 6,409 N/A US$ 6,409
Morgan Stanley Capital I Trust 2021-L6 - 〃 - US 6,145 N/A US$ 6,145
Bank 2020-BNK26 - 〃 - US 6,137 N/A US$ 6,137
Honda Auto Receivables 2023-2 Owner Trust - 〃 - US 6,092 N/A US$ 6,092
Hudson Yards 2016-10HY Mortgage Trust - 〃 - US 6,012 N/A US$ 6,012
Benchmark 2019-B11 Mortgage Trust - 〃 - US 5,767 N/A US$ 5,767
Bank 2017 - BNK7 - 〃 - US 5,702 N/A US$ 5,702
Bank 2021-bnk33 - 〃 - US 5,606 N/A US$ 5,606
Benchmark 2019-B12 Mortgage Trust - 〃 - US 5,604 N/A US$ 5,604
Citigroup Commercial Mortgage Trust 2021-PRM2 - 〃 - US 5,572 N/A US$ 5,572
Morgan Stanley Bank America Merrill Lynch Trust 2016-C30 - 〃 - US 5,435 N/A US$ 5,435
Nissan Auto Receivables 2024-A Owner Trust - 〃 - US 5,381 N/A US$ 5,381
Bank 2023-BNK46 - 〃 - US 5,290 N/A US$ 5,290
MSWF Commercial Mortgage Trust 2023-1 - 〃 - US 5,278 N/A US$ 5,278
Benchmark 2023-B39 Mortgage Trust - 〃 - US 5,276 N/A US$ 5,276
BBCMS 2018-Tall Mortgage Trust - 〃 - US 5,176 N/A US$ 5,176
Wells Fargo Commercial Mortgage Trust 2021-C59 - 〃 - US 5,006 N/A US$ 5,006
Wells Fargo Commercial Mortgage Trust 2016-C35 - 〃 - US 4,944 N/A US$ 4,944
CSAIL 2018-CX11 - 〃 - US 4,940 N/A US$ 4,940
Morgan Stanley Capital I Trust 2016 - BNK2 Fund - 〃 - US 4,854 N/A US$ 4,854
GM Financial Revolving Receivables Trust 2021-1 - 〃 - US 4,717 N/A US$ 4,717
Bank 2017-BNK9 - 〃 - US 4,306 N/A US$ 4,306
Benchmark 2023-V3 Mortgage Trust - 〃 - US 4,177 N/A US$ 4,177
Msbam 2016-C29 - 〃 - US 4,099 N/A US$ 4,099
MRCD 2019-Prkc Mortgage Trust - 〃 - US 4,051 N/A US$ 4,051
Gm Financial Consumer Automobile Receivables Trust 2023-4 - 〃 - US 3,652 N/A US$ 3,652
Bmw Vehicle Owner Trust 2023-A - 〃 - US 3,648 N/A US$ 3,648
Discover Card Execution Note Trust - 〃 - US 3,549 N/A US$ 3,549
GM Financial Consumer Automobile Receivables Trust 2023-2 - 〃 - US 3,409 N/A US$ 3,409
American Express Credit Account Master Trust - 〃 - US 3,388 N/A US$ 3,388
Citigroup Commercial Mortgage Trust 2019-Gc43 - 〃 - US 3,319 N/A US$ 3,319
Msbam 2016-C31 - 〃 - US 3,118 N/A US$ 3,118
Honda Auto Receivables 2023-4 Owner Trust - 〃 - US 3,074 N/A US$ 3,074
Mercedes-Benz Auto Receivables Trust 2024-1 - 〃 - US 3,069 N/A US$ 3,069
Bank 2019-Bnk22 - 〃 - US 2,964 N/A US$ 2,964
Five 2023-V1 Mortgage Trust - 〃 - US 2,906 N/A US$ 2,906
Commerce 2015-CCRE24 Mortgage Trust - 〃 - US 2,877 N/A US$ 2,877
Bmo 2023-C5 Mortgage Trust - 〃 - US 2,830 N/A US$ 2,830
Sreit Commercial Mortgage Trust 2021-Mfp - 〃 - US 2,761 N/A US$ 2,761
CGCMT 2017-P8 Mortgage Trust - 〃 - US 2,750 N/A US$ 2,750
Bank5 2023-5YR1 - 〃 - US 2,723 N/A US$ 2,723
Mercedes-Benz Auto Receivables Trust 2023-2 - 〃 - US 2,642 N/A US$ 2,642
Hyundai Auto Receivables Trust 2021-C - 〃 - US 2,562 N/A US$ 2,562
Benchmark 2019-B15 Mortgage Trust - 〃 - US 2,555 N/A US$ 2,555
Benchmark 2018-B3 Commercial Mortgage Trust - 〃 - US 2,551 N/A US$ 2,551
Honda Auto Receivables 2023-1 Owner Trust - 〃 - US 2,539 N/A US$ 2,539
Toyota Auto Receivables 2023-C Owner Trust - 〃 - US 2,534 N/A US$ 2,534

All values are in US Dollars.

(Continued)

  • 68 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global Gm Financial Consumer Automobile Receivables Trust 2024-1 - Financial assets at fair value through other comprehensive income - US 2,503 N/A US$ 2,503
Ford Credit Auto Owner Trust 2020-Rev1 - 〃 - US 2,473 N/A US$ 2,473
GS Mortgage Securities Trust 2015-GC32 - 〃 - US 2,423 N/A US$ 2,423
Hyundai Auto Receivables Trust 2021-B - 〃 - US 2,413 N/A US$ 2,413
Citigroup Commercial Mortgage Trust 2016-C1 - 〃 - US 2,356 N/A US$ 2,356
Toyota Auto Receivables 2024-A Owner Trust - 〃 - US 2,350 N/A US$ 2,350
Benchmark 2020-B18 Mortgage Trust - 〃 - US 2,315 N/A US$ 2,315
BANK5 2023-5YR4 - 〃 - US 2,314 N/A US$ 2,314
WFRBS Commercial Mortgage Trust 2014-C25 - 〃 - US 2,263 N/A US$ 2,263
Citigroup Commercial Mortgage Trust 2015-P1 - 〃 - US 2,227 N/A US$ 2,227
Wells Fargo Commercial Mortgage Trust 2020-C55 - 〃 - US 2,213 N/A US$ 2,213
Bmark 2018-B5 - 〃 - US 2,178 N/A US$ 2,178
Toyota Auto Receivables 2023 D Owner Trust - 〃 - US 2,154 N/A US$ 2,154
Ford Credit Auto Owner Trust 2023-C - 〃 - US 2,147 N/A US$ 2,147
Ford Credit Auto Owner Trust 2023-A - 〃 - US 2,007 N/A US$ 2,007
Benchmark 2018-B4 Mortgage Trust - 〃 - US 1,979 N/A US$ 1,979
Dolp Trust 2021-NYC - 〃 - US 1,973 N/A US$ 1,973
Ubs 2018-C13 - 〃 - US 1,942 N/A US$ 1,942
Mhc Commercial Mortgage Trust 2021-Mhc - 〃 - US 1,913 N/A US$ 1,913
Bank 2017-Bnk6 - 〃 - US 1,906 N/A US$ 1,906
Mercedes-Benz Auto Receivables Trust 2023-1 - 〃 - US 1,706 N/A US$ 1,706
GM Financial Consumer Automobile Receivables Trust 2023-1 - 〃 - US 1,702 N/A US$ 1,702
Hyundai Auto Receivables Trust 2022-A - 〃 - US 1,562 N/A US$ 1,562
Wells Fargo Commercial Mortgage Trust 2015-C30 - 〃 - US 1,548 N/A US$ 1,548
American Express Credit Account Master Trust , series 2023-1 - 〃 - US 1,520 N/A US$ 1,520
UBS Commercial Mortgage Trust 2018-C11 - 〃 - US 1,518 N/A US$ 1,518
COMM 2020-CBM Mortgage Trust - 〃 - US 1,513 N/A US$ 1,513
Morgan Stanley Capital I Trust 2021-L5 - 〃 - US 1,437 N/A US$ 1,437
Wells Fargo Commercial Mortgage Trust 2015-C29 - 〃 - US 1,272 N/A US$ 1,272
Ford Credit Auto Owner Trust 2022-C - 〃 - US 1,257 N/A US$ 1,257
Gs Mortgage Securities Trust 2018-Gs10 - 〃 - US 1,257 N/A US$ 1,257
Morgan Stanley Capital I Trust - 〃 - US 1,255 N/A US$ 1,255
Honda Auto Receivables 2021 - 4 Owner Trust - 〃 - US 1,222 N/A US$ 1,222
BANK 2017-BNK5 - 〃 - US 1,158 N/A US$ 1,158
Citigroup Commercial Mortgage Trust 2015-GC27 - 〃 - US 1,156 N/A US$ 1,156
FORD CREDIT AUTO OWNER TRUST 2023-REV2 - 〃 - US 1,141 N/A US$ 1,141
Wells Fargo Commercial Mortgage Trust 2018-C44 - 〃 - US 1,090 N/A US$ 1,090
JPMBB Commercial Mortgage Securities Trust 2015-C27 - 〃 - US 1,037 N/A US$ 1,037
Morgan Stanley Capital I Trust 2015 - UBS8 - 〃 - US 984 N/A US$ 984
Citigroup Commercial Mortgage Trust 2016-C3 - 〃 - US 969 N/A US$ 969
Wells Fargo Commercial Mortgage Trust 2016-LC24 - 〃 - US 966 N/A US$ 966
Toyota Auto Receivables 2024-B Owner Trust - 〃 - US 949 N/A US$ 949
Hyundai Auto Receivables Trust 2022-B - 〃 - US 939 N/A US$ 939
Ford Credit Auto Owner Trust 2022-A - 〃 - US 912 N/A US$ 912
Benchmark 2021-B24 Mortgage Trust - 〃 - US 883 N/A US$ 883
Bank 2023-Bnk45 - 〃 - US 874 N/A US$ 874
BBCMS Mortgage Trust 2018-C2 - 〃 - US 872 N/A US$ 872
Nissan Auto Receivables 2023-A Owner Trust - 〃 - US 834 N/A US$ 834
COMM Mortgage Trust Series 2015-LC19 - 〃 - US 795 N/A US$ 795
DBJPM 2016-C1 Mortgage Trust - 〃 - US 775 N/A US$ 775
JPMCC 2017-JP7 - 〃 - US 770 N/A US$ 770

All values are in US Dollars.

(Continued)

  • 69 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Percentage of Ownership (%) Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global Honda Auto Receivables 2022-2 Owner Trust - Financial assets at fair value through other comprehensive income - US 744 N/A US 744
Citigroup Commercial Mortgage Trust 2015-GC35 - 〃 - US 698 N/A US 698
Wells Fargo Commercial Mortgage Trust 2017-C40 - 〃 - US 641 N/A US 641
JPMCC Commercial Mortgage Securities Trust 2016 - JP3 - 〃 - US 599 N/A US 599
JPMBB Commercial Mortgage Securities Trust 2016-C1 - 〃 - US 591 N/A US 591
Wells Fargo Commercial Mortgage Trust 2015-C28 - 〃 - US 527 N/A US 527
JPMDB 2017-C7 - 〃 - US 457 N/A US 457
Toyota Auto Receivables 2021-C Owner Trust - 〃 - US 401 N/A US 401
Citigroup Commercial Mortgage Trust 2018-C5 - 〃 - US 363 N/A US 363
Toyota Auto Receivables 2021-D Owner Trust - 〃 - US 341 N/A US 341
Gm Financial Consumer Automobile Receivables Trust 2022-3 - 〃 - US 268 N/A US 268
Ford Credit Auto Owner Trust 2023-B - 〃 - US 234 N/A US 234
Ford Credit Auto Owner Trust 2022-B - 〃 - US 204 N/A US 204
Porsche Financial Auto Securitization Trust 2023-1 - 〃 - US 201 N/A US 201
Nissan Auto Receivables 2022-B Owner Trust - 〃 - US 195 N/A US 195
Wells Fargo Commercial Mortgage Trust 2015-NXS3 - 〃 - US 164 N/A US 164
JPMBB Commercial Mortgage Securities Trust 2015-C28 - 〃 - US 157 N/A US 157
JPMCC 2015 - JP1 - 〃 - US 112 N/A US 112
Morgan Stanley Capital I Trust 2018-H3 - 〃 - US 106 N/A US 106
JPMDB Commercial Mortgage Securities Trust 2019-COR6 - 〃 - US 16 N/A US 16
COMM 2015-CCRE22 Mortgage Trust - 〃 - US 13 N/A US 13
BBCMS Mortgage Trust 2020-C7 - 〃 - US 8 N/A US 8
Non-publicly traded equity investments
Primavera Capital Fund II L.P. - Financial assets at fair value through other comprehensive income - US 71,501 4 US 71,501
VTAF II Non-publicly traded equity investments
Aether Systems, Inc. - Financial assets at fair value through other comprehensive income 1,085 US 2 20 US 2
5V Technologies, Inc. - 〃 1 -
Publicly traded stocks
Sentelic Corporation - Financial assets at fair value through other comprehensive income 882 US 2,354 3 US 2,354
VTAF III Non-publicly traded equity investments
Mutual-Pak - Financial assets at fair value through other comprehensive income 1,701 US 337 17 US 337
Neoconix, Inc. - 〃 4,147 US 174 - US 174
LiquidLeds Lighting Corp. - 〃 1,952 US 35 14 US 35
Emerging Fund Simple Agreement for Future Equity
Eliyan Corp. - Financial assets at fair value through Profit or Loss - US 4,000 N/A US 4,000
Convertible bonds
Movandi Corporation - Financial assets at fair value through Profit or Loss - N/A
Non-publicly traded equity investments
Lyte AI, Inc. - Financial assets at fair value through other comprehensive income 1,325 US 10,757 4 US 10,757
Encharge AI, Inc. - 〃 445 US 6,098 2 US 6,098
Avicenatech Corp. - 〃 730 US 5,894 2 US 5,894

All values are in US Dollars.

(Continued)

  • 70 -
Held Company Name Marketable Securities Type and Name Relationship with the Company Financial Statement Account September 30, 2024 Note
Shares/Units<br><br>(In Thousands) Carrying Value<br><br>(Foreign Currencies in Thousands) Percentage of Ownership (%) Fair Value<br><br>(Foreign Currencies in Thousands)
Emerging Fund Ayar Labs, Inc. - Financial assets at fair value through other comprehensive income 345 US 5,470 1 US 5,470
Cerebras Systems, Inc. - 〃 341 US 5,000 - 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
RiVos, Inc. - 〃 2,568 US 5,000 1 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
Xsight Labs Ltd. - 〃 500 US 4,000 1 US 4,000
NeuReality Ltd. - 〃 122 US 3,991 2 US 3,991
xMEMS Labs, Inc. - 〃 3,000 US 3,240 2 US 3,240
Atlas Magnetics, Co. - 〃 1,500 US 3,000 3 US 3,000
Ambiq Micro, Inc. - 〃 3,318 US 3,000 1 US 3,000
Kinara, Inc. - 〃 2,138 US 2,980 2 US 2,980
Reed Semiconductor Corp. - 〃 500 US 2,000 1 US 2,000
Publicly traded stocks
Astera Labs, Inc. - Financial assets at fair value through other comprehensive income 644 US 33,728 - US 33,728
Raspberry Pi Holdings Plc - 〃 1,364 US 7,058 1 US 7,058
TSMC Development Convertible preferred stocks
IMS Nanofabrication Global, LLC - Financial assets at fair value through Profit or Loss - US 432,795 10 US 432,795
Growth Fund Non-publicly traded equity investments
CNEX Labs, Inc. - Financial assets at fair value through other comprehensive income 33 -
Publicly traded stocks
Astera Labs, Inc. - Financial assets at fair value through other comprehensive income 262 US 13,731 - US 13,731
Marvell Technology Group Ltd. - 〃 11 US 801 - US 801

All values are in US Dollars.

(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, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Company Name Marketable Securities <br>Type and Name Financial Statement Account Counterparty Nature of Relationship Beginning Balance Acquisition Disposal Ending Balance (Note )
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Shares/Units<br><br>(In Thousands) Amount (Foreign<br><br>Currencies in<br><br>Thousands) Shares/Units<br><br>(In Thousands) Amount (Foreign<br><br>Currencies in<br><br>Thousands) Shares/Units<br><br>(In Thousands) Amount (Foreign<br><br>Currencies in<br><br>Thousands) Carrying Value (Foreign<br><br>Currencies in<br><br>Thousands) Gain/Loss on Disposal (Foreign<br><br>Currencies in<br><br>Thousands) Shares/Units<br><br>(In Thousands) Amount (Foreign<br><br>Currencies in<br><br>Thousands)
TSMC Non-publicly traded equity investments
TSMC Global Investments accounted for using equity method - - 11 441,225,883 8 261,677,200 - - - - 19 737,933,677
TSMC Arizona 〃 - - 10,500 5,000 - 15,500
JASM 〃 - - 2,269 742 - 3,011
ESMC 〃 - - 100 648 30 ) 718
Emerging Fund 〃 - - - - - -
Commercial paper
China Steel Corporation Financial assets at amortized cost - - 200 920 350 770
Cathay Financial Holding Co., Ltd. 〃 - - 697 432 697 432
Formosa Chemicals & Fibre Corporation 〃 - - 100 490 340 250
Taiwan Power Company 〃 - - 50 245 50 245
CPC Corporation, Taiwan 〃 - - 100 370 250 220
Formosa Plastics Corporation 〃 - - 100 300 200 200
Nan Ya Plastics Corporation 〃 - - 600 485 900 185
TSMC Partners Fund
Carbon Nature SCSp Financial assets at fair value through Profit or Loss - - - US - - US 12,011 - US - US - US - - US 9,487
Publicly traded stocks
ARM Holdings plc Financial assets at fair value through other comprehensive income - - 1,961 US 147,353 - US - 850 US 101,535 US 43,350 US 58,185 1,111 US 158,853
TSMC Global Corporate bond
Bank of America Corporation Financial assets at fair value through other comprehensive income - - - US 86,588 - US 42,071 - US 29,128 US 29,347 US (219 ) - US 102,697
Morgan Stanley 〃 - - - US 76,777 - US 34,651 - US 24,641 US 24,610 US 31 - US 89,991
Wells Fargo & Company 〃 - - - US 58,351 - US 35,405 - US 12,771 US 12,898 US (127 ) - US 83,317
JPMorgan Chase & Co. 〃 - - - US 62,267 - US 33,675 - US 15,566 US 15,703 US (137 ) - US 82,887
The Goldman Sachs Group, Inc. 〃 - - - US 58,554 - US 30,408 - US 16,404 US 16,469 US (65 ) - US 75,146
Citigroup Inc. 〃 - - - US 50,436 - US 23,833 - US 16,901 US 16,978 US (77 ) - US 59,091
HSBC Holdings plc 〃 - - - US 30,124 - US 17,339 - US 9,371 US 9,596 US (225 ) - US 39,159
BNP Paribas SA 〃 - - - US 20,345 - US 26,435 - US 9,376 US 9,416 US (40 ) - US 38,615
Principal Life Global Funding II 〃 - - - US 17,932 - US 22,252 - US 3,893 US 3,994 US (101 ) - US 37,419

All values are in US Dollars.

(Continued)

  • 72 -
Company Name Marketable Securities <br>Type and Name Financial Statement Account Counterparty Nature of Relationship Beginning Balance Acquisition Disposal Ending Balance (Note )
Shares/Units<br><br>(In Thousands) Amount (Foreign Currencies in Thousands) Amount (Foreign Currencies in Thousands) Amount (Foreign Currencies in Thousands) Amount (Foreign Currencies in Thousands)
TSMC Global Sumitomo Mitsui Trust Bank, Limited Financial assets at fair value through other comprehensive income - - - US 17,286 - US 23,089 - US 4,594 US 4,650 US (56 ) - US$ 36,782
NatWest Group plc 〃 - - - US 6,360 - US 29,473 - US - US - US - - US$ 36,613
Banco Santander, S.A. 〃 - - - US 29,015 - US 14,561 - US 8,240 US 8,308 US (68 ) - US$ 36,174
Nationwide Building Society 〃 - - - US 17,760 - US 18,150 - US 981 US 1,017 US (36 ) - US$ 35,691
Credit Agricole SA London Branch 〃 - - - US 20,395 - US 16,321 - US 2,389 US 2,440 US (51 ) - US$ 35,136
BPCE SA 〃 - - - US 23,875 - US 12,832 - US 3,272 US 3,244 US 28 - US$ 34,215
Barclays PLC 〃 - - - US 35,277 - US 9,994 - US 12,078 US 12,036 US 42 - US$ 33,769
Lloyds Banking Group plc 〃 - - - US 24,131 - US 15,025 - US 9,529 US 9,483 US 46 - US$ 30,488
Hyundai Capital America 〃 - - - US 13,567 - US 15,803 - US - US - US - - US$ 30,065
Sumitomo Mitsui Financial Group, Inc. 〃 - - - US 45,172 - US 2,412 - US 18,587 US 18,736 US (149 ) - US$ 29,686
American Express Company 〃 - - - US 13,685 - US 17,156 - US 3,505 US 3,530 US (25 ) - US$ 27,950
Volkswagen Group of America Finance, LLC 〃 - - - US 16,251 - US 15,690 - US 6,637 US 6,623 US 14 - US$ 25,924
Athene Global Funding 〃 - - - US 20,297 - US 10,811 - US 6,476 US 6,544 US (68 ) - US$ 25,494
Toyota Motor Credit Corporation 〃 - - - US 4,261 - US 24,742 - US 4,915 US 5,000 US (85 ) - US$ 24,607
Deutsche Bank AG - New York Branch 〃 - - - US 10,454 - US 21,424 - US 8,470 US 8,500 US (30 ) - US$ 24,278
Penske Truck Leasing Co., L.P. 〃 - - - US 13,095 - US 10,628 - US 381 US 399 US (18 ) - US$ 23,943
The Bank of Nova Scotia 〃 - - - US 16,474 - US 10,965 - US 4,900 US 5,038 US (138 ) - US$ 22,925
Banque Fédérative du Crédit Mutuel 〃 - - - US 14,439 - US 11,057 - US 3,620 US 3,592 US 28 - US$ 22,198
Glencore Funding LLC 〃 - - - US 1,556 - US 19,310 - US - US - US - - US$ 21,501
Bank of Montreal 〃 - - - US 11,032 - US 9,984 - US - US - US - - US$ 21,320
General Motors Financial Company, Inc. 〃 - - - US - - US 20,425 - US - US - US - - US$ 20,925
Bunge Limited Finance Corp. 〃 - - - US - - US 20,603 - US - US - US - - US$ 20,812
RGA Global Funding 〃 - - - US 8,977 - US 10,770 - US - US - US - - US$ 20,555
Macquarie Bank Limited 〃 - - - US 8,390 - US 10,818 - US - US - US - - US$ 19,610
Daimler Trucks Finance North America LLC 〃 - - - US 7,013 - US 12,021 - US - US - US - - US$ 19,479
Danske Bank A/S 〃 - - - US 16,698 - US 11,180 - US 9,748 US 9,721 US 27 - US$ 18,583
Mitsubishi UFJ Financial Group, Inc. 〃 - - - US 36,903 - US 3,400 - US 22,941 US 23,219 US (278 ) - US$ 18,193
Royal Bank of Canada 〃 - - - US 25,469 - US 3,930 - US 11,804 US 11,843 US (39 ) - US$ 18,101
Oracle Corporation 〃 - - - US 23,751 - US 4,995 - US 13,078 US 13,662 US (584 ) - US$ 16,068
U.S. Bancorp. 〃 - - - US 16,962 - US 12,369 - US 14,047 US 14,129 US (82 ) - US$ 15,863
Roper Technologies, Inc. 〃 - - - US 9,177 - US 9,457 - US 3,431 US 3,500 US (69 ) - US$ 15,619
Jackson National Life Global Funding 〃 - - - US 3,563 - US 12,386 - US 995 US 1,025 US (30 ) - US$ 15,419
The Kroger Co. 〃 - - - US - - US 14,886 - US - US - US - - US$ 15,035
BMW US Capital, LLC 〃 - - - US - - US 14,699 - US - US - US - - US$ 14,866
Quest Diagnostics Incorporated 〃 - - - US - - US 14,408 - US - US - US - - US$ 14,634
Santander Holdings USA, Inc. 〃 - - - US - - US 13,962 - US - US - US - - US$ 14,190
SMBC Aviation Capital Finance DAC 〃 - - - US 1,747 - US 11,997 - US - US - US - - US$ 14,183
Amphenol Corporation 〃 - - - US - - US 12,737 - US - US - US - - US$ 13,191
BAE Systems plc 〃 - - - US - - US 12,292 - US - US - US - - US$ 12,801

All values are in US Dollars.

(Continued)

  • 73 -
Company Name Marketable Securities <br>Type and Name Financial Statement Account Counterparty Nature of Relationship Beginning Balance Acquisition Disposal Ending Balance (Note )
Shares/Units<br><br>(In Thousands) Amount (Foreign Currencies in Thousands) Amount (Foreign Currencies in Thousands) Amount (Foreign Currencies in Thousands) Amount (Foreign Currencies in Thousands)
TSMC Global Mercedes-Benz Finance North America LLC Financial assets at fair value through other comprehensive income - - - US - - US 15,325 - US 3,574 US 3,597 US (23 ) - US$ 11,928
Bristol-Myers Squibb Company 〃 - - - US 4,604 - US 21,106 - US 14,572 US 14,275 US 297 - US$ 11,926
National Rural Utilities Cooperative Finance Corporation 〃 - - - US 1,445 - US 9,899 - US - US - US - - US$ 11,436
Prologis Targeted U.S. Logistics Fund L.P. 〃 - - - US - - US 10,940 - US - US - US - - US$ 11,356
MassMutual Global Funding II 〃 - - - US 506 - US 10,025 - US - US - US - - US$ 11,170
DTE Energy Company 〃 - - - US 1,685 - US 10,580 - US 1,712 US 1,735 US (23 ) - US$ 10,968
Hewlett Packard Enterprise Company 〃 - - - US - - US 9,989 - US - US - US - - US$ 10,003
American Honda Finance Corporation 〃 - - - US 2,087 - US 15,878 - US 8,989 US 8,918 US 71 - US$ 9,134
Keurig Dr Pepper Inc. 〃 - - - US - - US 11,790 - US 4,980 US 4,987 US (7 ) - US$ 7,101
Marriott International, Inc. 〃 - - - US 271 - US 9,744 - US 4,582 US 4,488 US 94 - US$ 5,687
AbbVie Inc. 〃 - - - US 26,895 - US 8,427 - US 30,655 US 30,962 US (307 ) - US$ 5,028
Fiserv, Inc. 〃 - - - US 6,745 - US 6,887 - US 10,634 US 10,662 US (28 ) - US$ 3,169
CVS Health Corporation 〃 - - - US 24,591 - US - - US 22,083 US 21,803 US 280 - US$ 2,368
Wells Fargo & Company Financial assets at amortized cost - - - US 619,830 - US 485,315 - US 15,000 US 15,000 US - - US$ 1,100,584
Bank of America Corporation 〃 - - - US 799,449 - US 270,251 - US 223,000 US 222,991 US 9 - US$ 854,118
Citigroup Inc. 〃 - - - US 271,462 - US 487,398 - US 208,000 US 207,997 US 3 - US$ 553,527
JPMorgan Chase & Co. 〃 - - - US 391,868 - US 205,845 - US 121,000 US 120,999 US 1 - US$ 484,448
Morgan Stanley 〃 - - - US 566,880 - US 183,053 - US 297,000 US 296,972 US 28 - US$ 459,800
The Goldman Sachs Group, Inc. 〃 - - - US 432,811 - US 93,192 - US 168,000 US 168,000 US - - US$ 360,560
Goldman Sachs Finance Corp International Ltd 〃 - - - US 99,905 - US 210,000 - US 100,000 US 100,000 US - - US$ 209,799
BNP Paribas SA 〃 - - - US 9,265 - US 32,354 - US 4,000 US 4,000 US - - US$ 37,668
Morgan Stanley Bank, N.A. 〃 - - - US - - US 27,014 - US - US - US - - US$ 27,004
Citigroup Global Markets Holdings Inc. 〃 - - - US 99,968 - US - - US 100,000 US 100,000 US - - US$ -
Citigroup Global Markets Inc. 〃 - - - US 149,951 - US - - US 150,000 US 150,000 US - - US$ -
Agency mortgage-backed securities
FEDERAL NATIONAL MORTGAGE ASSOCIATION Financial assets at fair value through other comprehensive income - - - US 658,944 - US 137,177 - US 103,749 US 104,160 US (411 ) - US$ 710,226
Federal Home Loan Mortgage Corporation 〃 - - - US 350,328 - US 107,798 - US 68,771 US 69,505 US (734 ) - US$ 399,950
Government National Mortgage Association 〃 - - - US 225,310 - US 92,222 - US 50,662 US 50,983 US (321 ) - US$ 271,358
Government bond/Agency bonds
United States Department of The Treasury Financial assets at fair value through other comprehensive income - - - US 718,479 - US 103,857 - US 187,655 US 190,151 US (2,496 ) - US$ 654,745
United States Department of The Treasury Financial assets at amortized cost - - - US 88,940 - US 44,399 - US - US - US - - US$ 133,566
Federal Home Loan Mortgage Corporation 〃 - - - US 135,000 - US 30,000 - US 165,000 US 165,000 US - - US$ -
Federal Home Loan Banks 〃 - - - US 225,000 - US 30,000 - US 255,000 US 255,000 US - - US$ -

All values are in US Dollars.

(Continued)

  • 74 -
Company Name Marketable Securities <br>Type and Name Financial Statement Account Counterparty Nature of Relationship Beginning Balance Acquisition Disposal Ending Balance (Note )
Shares/Units<br><br>(In Thousands) Amount (Foreign Currencies in Thousands) Amount (Foreign Currencies in Thousands) Amount (Foreign Currencies in Thousands) Amount (Foreign Currencies in Thousands)
TSMC Global Asset-backed securities
G23-182I Financial assets at fair value through other comprehensive income - - - US - - US 10,151 - US 1,637 US 1,638 US (1 ) - US$ 8,560
JPMBB Commercial Mortgage Securities Trust 2014-C24 〃 - - - US 9,818 - US - - US 10,000 US 10,016 US (16 ) - US$ -

All values are in US Dollars.

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

(Concluded)

  • 75 -

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, 2024<br><br>(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Company Name Types of<br><br>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<br><br>Terms
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Owner Relationships Amount
TSMC Real estate February 06, 2024<br><br>(Note) US 2,155,000<br><br>(Note) Based on the terms in the purchase order 96 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
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.

All values are in US Dollars.

(Continued)

  • 76 -
Company Name Types of<br><br>Property Transaction Date Transaction Amount<br><br>(Foreign Currencies in Thousands) Payment Term Counterparty Nature of Relationships Prior Transaction of Related Counterparty Price Reference Purpose of Acquisition Other<br><br>Terms
Owner Relationships Transfer Date Amount
TSMC Real estate CTCI Smart Engineering Corporation
Da-Cin Construction Co., Ltd.
Desiccant Technology Co., Ltd.
Evergreen Steel Corporation
Exyte Taiwan Co., Ltd.
Fortune Electric Co., Ltd.
Fu Tsu Construction Co., Ltd.
Gang-Wei Construction 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
JG Environmental Technology Co., Ltd.
JJmr-Clean-Air Solution Tech.Services Co., Ltd.
Jusun Instruments Co., Ltd.
Kaohsiung City Government
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 Integrated Pte Ltd.
Mega Union Technology Incorporated
Organo Technology Co., Ltd.
Ovivo Taiwan Co., Ltd.
Pan Asia (Engineers & Constructors) Corporation

(Continued)

  • 77 -
Company Name Types of<br><br>Property Transaction Date Transaction Amount<br><br>(Foreign Currencies in Thousands) Payment Term Counterparty Nature of Relationships Prior Transaction of Related Counterparty Price Reference Purpose of Acquisition Other<br><br>Terms
Owner Relationships Transfer Date Amount
TSMC Real estate 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.
Transcene Corporation
Trusval Technology Co., Ltd.
Tung Kang Steel Structure Corp.
Uangyih-Tech Industrial Co., Ltd.
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.
YUNG CHING CONSTRUCTION CO., LTD.
Zhao-Cheng Corp.

(Continued)

  • 78 -
Company Name Types of<br><br>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<br><br>Terms
Owner Relationships Amount
TSMC Real estate June 05, 2024<br><br>(Note) US 11,014,000<br><br>(Note) Based on the terms in the purchase order 182 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.
Allied Supreme Corp.
Allis Electric Co., Ltd.
Am-Power Machine International Enterprise Co., Ltd.
Apollo Sheet Metal, Inc.
Atlas Copco Taiwan Ltd.
Atlas Technology Corp.
Brycon Corporation
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.
Corbins, LLC
CTCI Corporation
Currie and Brown Inc.
Da-Cin Construction Co., Ltd.
Desiccant Technology Co., Ltd.

All values are in US Dollars.

(Continued)

  • 79 -
Company Name Types of<br><br>Property Transaction Date Transaction Amount<br><br>(Foreign Currencies in Thousands) Payment Term Counterparty Nature of Relationships Prior Transaction of Related Counterparty Price Reference Purpose of Acquisition Other<br><br>Terms
Owner Relationships Transfer Date Amount
TSMC Real estate EnerMech Mechanical Services, Inc.
Evergreen Steel Corporation
Exyte Taiwan Co., Ltd.
Fortune Electric Co., Ltd.
Fu Tsu Construction Co., Ltd.
GCON, Inc.
Gold Stone Development 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
Jack B. Henderson Construction Company, Inc.
Jaie Haour Industry Corporation
JG Environmental Technology Co., Ltd.
JJmr-Clean-Air Solution Tech.Services Co., Ltd.
Job Brokers, Inc.
Johnson Controls, Inc.
Jusun Instruments Co., Ltd.
Kedge Construction Co., Ltd.
Kinetic Systems, Inc.
Kinetics Technology Corporation
L&K Engineering Co., Ltd.
Lead-Fu Industrials Corporation
Lee Ming Construction Co., Ltd.
Li Jin Engineering Co., Ltd.
Lumax International Corp., Ltd.
Mandartech Interiors Inc.

(Continued)

  • 80 -
Company Name Types of<br><br>Property Transaction Date Transaction Amount<br><br>(Foreign Currencies in Thousands) Payment Term Counterparty Nature of Relationships Prior Transaction of Related Counterparty Price Reference Purpose of Acquisition Other<br><br>Terms
Owner Relationships Transfer Date Amount
TSMC Real estate Marketech Integrated Pte Ltd.
Mega Union Technology Incorporated
MornstAir Inc.
MSR-FSR, LLC
OBR Cooling Towers, Inc.
Okland Construction Company, Inc.
Organo Technology Co., Ltd.
Ovivo Taiwan Co., Ltd.
Pan Asia (Engineers & Constructors) Corporation
Prime Controls LP
Propersys Corp
Rosendin Electric, Inc.
Ruentex Engineering & Construction Co., Ltd.
San Fu Chemical Co., Ltd.
Schneider Electric Taiwan Co., Ltd.
Shihlin Electric & Engineering Corporation
Siemens Limited
Solomon Technology Corporation
Southland Industries
SSOE Inc.
Swift Engineering Co., Ltd.
T C Boiler Inc.
Taiwan Gleno Enterprise Co., Ltd.
Taiwan Obayashi Corporation
Taiwan Puritic Corp.
Taiwan Valqua Engineering International, Ltd.
TASA Construction Corporation
Techgo Industrial Co., Ltd.
Trusval Technology Co., Ltd.
TUN YI Industrial Co., Ltd.
Tung Kang Steel Structure Corp.
Uangyih-Tech Industrial Co., Ltd.

(Continued)

  • 81 -
Company Name Types of<br><br>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<br><br>Terms
Owner Relationships Amount
TSMC Real estate Unelectra International Corp.
United Integrated Services Co., Ltd.
Verde Clean, LLC
Versum Materials Taiwan Co., Ltd.
Wei Shung Technology Corporation
Weltall Technology Corporation
Wholetech System Hitech Limited
World Wide Professional Solutions
Yangtech Engineering Co., Ltd.
Yankey Engineering Co., Ltd.
YE SIANG Enterprise Co., Ltd.
Ying Pao Technology Inc.
Yung Ching Construction Co., Ltd.
Zhao-Cheng Corp.
TSMC Real estate August 13, 2024<br><br>(Note) US 8,320,000<br><br>(Note) Based on the terms in the purchase order 91 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
Chang Chun Petrochemical Co., Ltd.
Chen Yuan International Co., Ltd.
Chenfull International Co., Ltd.
Cheng Deh Fire Protection Industrial Corp.

All values are in US Dollars.

(Continued)

  • 82 -
Company Name Types of<br><br>Property Transaction Date Transaction Amount<br><br>(Foreign Currencies in Thousands) Payment Term Counterparty Nature of Relationships Prior Transaction of Related Counterparty Price Reference Purpose of Acquisition Other<br><br>Terms
Owner Relationships Transfer Date Amount
TSMC Real estate Chern Shuo System Technology Co., Ltd.
China Steel Structure Co., Ltd.
Chun Yuan Steel Industry Co., Ltd.
Cica-Huntek Chemical Technology Taiwan Co., Ltd.
Confederate Technology Co., Ltd.
Da-Cin Construction Co., Ltd.
Desiccant Technology Co., Ltd.
Evergreen Steel Corporation
Exyte Taiwan Co., Ltd.
Fortune Electric Co., Ltd.
Fu Tsu Construction Co., Ltd.
Gang-Wei Construction Ltd.
Hantech Engineering Co., Ltd.
Hsieh Kun Co., Ltd.
Hueng Luei Process Industry Co., Ltd.
Ingersoll-Rand Southeast Asia (Pte) Ltd. Taiwan Branch (Singapore)
Jaie Haour Industry Corporation
JG Environmental Technology Co., Ltd.
JJmr-Clean-Air Solution Tech.Services Co., Ltd.
JJP Architects and Planners
Jusun Instruments Co., Ltd.
Kedge Construction Co., Ltd.
Kinetics Technology Corporation
L&K Engineering Co., Ltd.
Lee Ming Construction Co., Ltd.
Mandartech Interiors Inc.
Marketech International Corp.

(Continued)

  • 83 -
Company Name Types of<br><br>Property Transaction Date Transaction Amount<br><br>(Foreign Currencies in Thousands) Payment Term Counterparty Nature of Relationships Prior Transaction of Related Counterparty Price Reference Purpose of Acquisition Other<br><br>Terms
Owner Relationships Transfer Date Amount
TSMC Real estate Mega Union Technology Incorporated
Organo Technology Co., Ltd.
Ovivo Taiwan Co., Ltd.
REIJU Construction Co., Ltd.
San Fu Chemical Co., Ltd.
Schneider Electric Taiwan Co., Ltd.
Shihlin Electric & Engineering Corporation
Siemens Limited
Solomon Technology Corporation
Southern Taiwan Science Park Bureau, National Science and Technology Council
Swift Engineering Co., Ltd.
Taiwan Gleno Enterprise Co., Ltd.
TAIWAN POWER COMPANY
Taiwan Puritic Corp.
TASA Construction Corporation
Techgo Industrial Co., Ltd.
Tianding construction industry Co., Ltd.
Trusval Technology Co., Ltd.
Tung Kang Steel Structure Corp.
Uangyih-Tech Industrial Co., Ltd.
Unelectra International Corp.
United Integrated Services Co., Ltd.
Versum Materials Taiwan Co., Ltd.
Wei Shung Technology Corporation
Weltall Technology Corporation
Wholetech System Hitech Limited

(Continued)

  • 84 -
Company Name Types of<br><br>Property Transaction Date Transaction Amount<br><br>(Foreign Currencies in Thousands) Payment Term Counterparty Nature of Relationships Prior Transaction of Related Counterparty Price Reference Purpose of Acquisition Other<br><br>Terms
Owner Relationships Transfer Date Amount
TSMC Real estate Yangtech Engineering Co., Ltd.
Yankey Engineering Co., Ltd.
Ying Pao Technology Inc.
Yuan Yi Construction Co., Ltd.
Yuanshuo Archi & Construction COMPANY LIMITED
YUNG CHING CONSTRUCTION CO., LTD.
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)

  • 85 -

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, 2024

(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/<br><br>Sales Amount<br><br>(Foreign Currencies in Thousands) % to Total Payment Terms Unit Price Payment Terms Ending Balance<br><br>(Foreign Currencies in Thousands) % to Total
TSMC TSMC North America Subsidiary Sales 1,402,325,384 70 Net 30 days from invoice date (Note) - - 187,845,310 81
TSMC Arizona Subsidiary Sales - Net 30 days from the end of the month of when invoice is issued - - -
JASM Subsidiary Sales - Net 30 days from the end of the month of when invoice is issued - - -
GUC Associate Sales - Net 30 days from invoice date - - -
VIS Associate Sales - Net 30 days from the end of the month of when invoice is issued - - -
TSMC Nanjing Subsidiary Purchases 39 Net 30 days from the end of the month of when invoice is issued - - ) 3
TSMC China Subsidiary Purchases 14 Net 30 days from the end of the month of when invoice is issued - - ) 2
TSMC Washington Indirect subsidiary Purchases 3 Net 30 days from the end of the month of when invoice is issued - - ) -
SSMC Associate Purchases 2 Net 30 days from the end of the month of when invoice is issued - - ) -
VIS Associate Purchases - Net 30 days from the end of the month of when invoice is issued - - ) -
TSMC North America GUC Associate of TSMC Sales (US 5,639,697<br><br>176,174 ) - Net 30 days from invoice date - - (US 121,891<br><br>3,853 ) -
VisEra Tech Xintec Associate of TSMC Sales 7 Net 60 days from the end of the month of when invoice is issued - - 12

All values are in US Dollars.

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

  • 86 -

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, 2024

(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 forBad Debts
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Amount Action Taken
TSMC TSMC North America Subsidiary 192,350,551 33 - - - -
GUC Associate 16 -
TSMC North America TSMC Parent company (US 122,093<br><br>3,859 ) Note 2 - -
GUC Associate of TSMC (US 121,891<br><br>3,853 ) 4 - -
TSMC Japan 3DIC R&D Center TSMC Parent company ( 123,731<br><br>556,843 ) Note 2 - -
TSMC China TSMC Parent company 32 -
(RMB 515,730 )
TSMC Nanjing The same parent company Note 2 -
(RMB 8,021,817 )
TSMC Nanjing TSMC Parent company 23 -
(RMB 990,485 )
VisEra Tech Xintec Associate of TSMC 68 -
TSMC Arizona Corporation TSMC Parent company (US 56,949,180<br><br>1,800,025 ) Note 2 - -
TSMC Technology TSMC The ultimate parent of the Company (US 712,398<br><br>22,517 ) Note 2 -
TSMC Development TSMC Washington Subsidiary (US 551,402<br><br>17,428 ) Note 2 -
TSMC Washington TSMC The ultimate parent of the Company (US 426,121<br><br>13,468 ) 22 -

All values are in US Dollars.

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.

  • 87 -

TABLE 8

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

(Amounts in Thousands of New Taiwan Dollars)
No. Company Name Counterparty Nature of Relationship<br><br>(Note 1) Intercompany Transactions
--- --- --- --- --- --- --- --- --- --- --- --- ---
Financial Statements Item Amount Terms<br><br>(Note 2) Percentage of Consolidated Net Revenue or Total Assets
0 TSMC TSMC North America 1 Net revenue from sale of goods 1,402,325,384 - 69%
Receivables from related parties - 3%
Other receivables from related parties - -
Accrued expenses and other current liabilities - 3%
Other noncurrent liabilities - 1%
TSMC China 1 Purchases - 1%
TSMC Nanjing 1 Purchases - 3%
Payables to related parties - -
TSMC Technology 1 Research and development expenses - -
TSMC Washington 1 Purchases - -
1 TSMC China TSMC Nanjing 3 Other receivables from related parties - 1%

All values are in US Dollars.

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.

  • 88 -

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, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Investor Company Investee Company Location Main Businesses and Products Original Investment Amount 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, 2024<br><br>(Foreign Currencies in Thousands) December 31,<br><br>2023<br><br>(Foreign Currencies in Thousands) Shares (In Thousands) Percentage of Ownership Carrying Value<br><br>(Foreign Currencies in Thousands)
TSMC TSMC Global Tortola, British Virgin Islands Investment activities 616,839,509 355,162,309 19 100 737,933,677 26,305,867 26,305,867 Subsidiary
TSMC Arizona Phoenix, Arizona, U.S.A. Manufacturing, sales and testing of integrated circuits and other semiconductor devices 15,500 100 ) ) Subsidiary
TSMC Partners Tortola, British Virgin Islands Investing in companies involved in the semiconductor design and manufacturing, and other investment activities 988,268 100 Subsidiary
JASM Kumamoto, Japan Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices 3,011 73 ) ) 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 464,223 28 Associate
VisEra Tech Hsin-Chu, Taiwan Research, design, development, manufacturing, sales, packaging and test of color filter 213,619 67 Subsidiary
SSMC Singapore Manufacturing and sales of integrated circuits and other semiconductor devices 314 39 Associate
TSMC North America San Jose, California, U.S.A. Sales and marketing of integrated circuits and other semiconductor devices 11,000 100 Subsidiary
ESMC Dresden, Germany Manufacturing, sales and testing of integrated circuits and other semiconductor devices 718 70 ) ) Subsidiary
Emerging Fund Cayman Islands Investing in technology start-up companies - 99.9 ) ) Subsidiary
Xintec Taoyuan, Taiwan Wafer level chip size packaging and wafer level post passivation interconnection service 111,282 41 Associate
GUC Hsin-Chu, Taiwan Researching, developing, manufacturing, testing and marketing of integrated circuits 46,688 35 Associate
TSMC 3DIC Yokohama, Japan Engineering support activities 49 100 Subsidiary
TSMC Europe Amsterdam, the Netherlands Customer service and supporting activities - 100 Subsidiary
VTAF III Cayman Islands Investing in technology start-up companies - 98 ) ) Subsidiary
TSMC JDC Yokohama, Japan Engineering support activities 15 100 Subsidiary
TSMC Japan Yokohama, Japan Customer service and supporting activities 6 100 Subsidiary
VTAF II Cayman Islands Investing in technology start-up companies - 98 Subsidiary
TSMC Korea Seoul, Korea Customer service and supporting activities 80 100 Subsidiary
TSMC Partners TSMC Development Delaware, U.S.A. Investing in companies involved in semiconductor manufacturing (US 18,569,570<br><br>586,939 $<br><br>) (US 18,569,570<br><br>586,939 ) - 100 (US 38,501,631<br><br>1,216,943 $<br><br>) (US (440,092<br><br>(13,806 )<br><br>)) Subsidiary
TSMC Technology Delaware, U.S.A. Engineering support activities - 100 Subsidiary
(US 14,282 ) (US 14,282 ) (US 44,104 ) (US 7,466 )
TSMC Canada Ontario, Canada Engineering support activities 2,300 100 Subsidiary
(US 2,300 ) (US 2,300 ) (US 13,463 ) (US 1,369 )
VTAF III Growth Fund Cayman Islands Investing in technology start-up companies - 100 ) Subsidiary
(US 2,295 ) (US 2,295 ) (US 18,758 ) (US (20 ))
TSMC Development TSMC Washington Washington, U.S.A. Manufacturing, sales and testing of integrated circuits and other semiconductor devices 293,637 100 (US 5,068,119<br><br>160,191 $<br><br>) (US (939,236<br><br>(29,395 )<br><br>)) Subsidiary

All values are in US Dollars.

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.

  • 89 -

TABLE 10

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Investee Company Total Amount of Paid-in Capital<br><br>(RMB in Thousands) Method of Investment Accumulated Outflow of Investment from Taiwan as of January 1, 2024(US in Thousands) Investment Flows Accumulated Outflow of Investment from Taiwan as ofSeptember 30, 2024 (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, 2024 Accumulated Inward Remittance of Earnings as of September 30, 2024
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Outflow(US in Thousands) Inflow
TSMC China $<br><br>(RMB 18,939,667<br><br>4,502,080 $<br><br>) (Note 1) (US ) - - (US ) 8,451,304 100% 8,518,183<br><br>(Note 2) 107,924,536 -
TSMC Nanjing (RMB 30,521,412<br><br>6,650,119 ) (Note 1) (US ) (US ) 100%

All values are in US Dollars.

Accumulated Investment in Mainland China<br><br>as of September 30, 2024<br><br>(US$ in Thousands) Investment Amounts Authorized by<br><br>Investment Commission, MOEA<br><br>(US$ in Thousands) Upper Limit on Investment
$    49,461,079<br><br>(US$    1,596,000) $    119,412,667<br><br>(US$    3,596,000) $    2,413,153,375<br><br>(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.

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TABLE 11

Taiwan Semiconductor Manufacturing Company Limited

INFORMATION ON MAJOR SHAREHOLDERS

SEPTEMBER 30, 2024
Shareholders (Note 1) Shares
--- --- --- --- ---
Total Shares Owned Ownership Percentage (Note 2)
ADR-Taiwan Semiconductor Manufacturing Company Ltd. 5,314,095,558 20.49%
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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