6-K - TSM - Equibles

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 February 2025

(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: February 27, 2025	By	/s/ Wendell Huang
		Wendell Huang
		Senior Vice President and Chief Financial Officer

Exhibits

Exhibit Number	Exhibit Description
99.1	Consolidated Financial Statements for the Years Ended December 31, 202 4 and 202 3 and Independent Auditors’ Report pursuant to International Financial Reporting Standards adopted by ROC ("Taiwan-IFRSs")
99.2	Parent Company Only Financial Statements for the Years Ended December 31, 2024 and 2023 and Independent Auditors’ 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

Years Ended December 31, 2024 and 2023 and

Independent Auditors’ Report

REPRESENTATION LETTER

The companies required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the year ended December 31, 2024 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 “Consolidated Financial Statements”. Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED<br><br><br><br>By

C.C. Wei

Chairman

February 12, 2025

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’ REPORT

The Board of Directors and Shareholders

Taiwan Semiconductor Manufacturing Company Limited

Opinion

We have audited the accompanying consolidated financial statements of Taiwan Semiconductor Manufacturing Company Limited and its subsidiaries (the “Company”), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”).

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter for the Company’s consolidated financial statements for the year ended December 31, 2024 is stated as follows:

Property, plant and equipment (PP&E) – commencement of depreciation related to PP&E classified as equipment under installation and construction in progress (EUI/CIP)

Refer to Notes 4, 5 and 14 to the consolidated financial statements.

The Company’s evaluation of when to commence depreciation of EUI/CIP involves determining when the assets are available for their intended use. The criteria the Company uses to determine whether EUI/CIP are available for their intended use involves subjective judgments and assumptions about the conditions necessary for the assets to be capable of operating in the intended manner. Changes in these assumptions could have a significant impact on when depreciation is recognized.

Given the subjectivity in determining the date to commence depreciation of EUI/CIP, performing audit procedures to evaluate the reasonableness of the Company’s judgments and assumptions required a high degree of auditor judgment. Consequently, the validity of commencement of depreciation related to PP&E classified as EUI/CIP is identified as a key audit matter.

Our audit procedures related to the evaluation of when to commence depreciation of EUI/CIP included the following, among others:

1. We read the Company’s policy and understood the criteria used to determine when to commence depreciation.

2. We tested the effectiveness of the controls over the evaluation of when to commence depreciation of EUI/CIP.

3. We sampled the year-end balance of EUI/CIP and performed the following for each selection:

a. Evaluated whether the selection did not meet the criteria specified by the Company for commencement of depreciation.

b. Observed the assets and evaluated their status.

4. We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation during the year.

5. We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation subsequent to year end.

Other Matter

We have also audited the parent company only financial statements of Taiwan Semiconductor Manufacturing Company Limited as of and for the years ended December 31, 2024 and 2023 on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management

determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including members of the Audit and Risk Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2024 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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

Deloitte & Touche

Taipei, Taiwan

Republic of China

February 12, 2025

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 audit such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ 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’ report and consolidated financial statements shall prevail.

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)
	December 31, 2024				December 31, 2023
---	---	---	---	---	---	---	---	---	---
ASSETS	Amount		%		Amount			%
CURRENT ASSETS
Cash and cash equivalents (Note 6)		2,127,627,043		32		1,465,427,753			26
Financial assets at fair value through profit or loss (Note 7)				-					-
Financial assets at fair value through other comprehensive income (Note 8)				3					3
Financial assets at amortized cost (Note 9)				1					1
Hedging financial assets (Note 10)				-					-
Notes and accounts receivable, net (Note 11)				4					4
Receivables from related parties (Note 33)				-					-
Other receivables from related parties (Note 33)				-					-
Inventories (Notes 5 and 12)				4					5
Other financial assets (Notes 29, 30 and 34)				1					1
Other current assets				1					-
Total current assets				46					40
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
Investments accounted for using equity method (Note 13)				1					1
Property, plant and equipment (Notes 5, 14 and 29)				48					55
Right-of-use assets (Notes 5 and 15)				1					1
Intangible assets (Notes 5 and 16)				1					-
Deferred income tax assets (Notes 5 and 25)				1					1
Refundable deposits				-					-
Other noncurrent assets (Notes 29 and 30)				1					-
Total noncurrent assets				54					60
TOTAL		6,691,938,000		100		5,532,371,215			100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Financial liabilities at fair value through profit or loss (Note 7)		466,539		-		121,412			-
Hedging financial liabilities (Notes 10 and 30)				-					-
Accounts payable				1					1
Payables to related parties (Note 33)				-					-
Salary and bonus payable				1					1
Accrued profit sharing bonus to employees and compensation to directors (Note 28)				1					1
Payables to contractors and equipment suppliers				3					3
Cash dividends payable (Note 20)				3					3
Income tax payable (Notes 5 and 25)				2					2
Long-term liabilities - current portion (Notes 17, 18 and 30)				1					-
Accrued expenses and other current liabilities (Notes 5, 15, 21 and 30)				7					5
Total current liabilities				19					16
NONCURRENT LIABILITIES
Bonds payable (Notes 17 and 30)				14					17
Long-term bank loans (Notes 18 and 30)				-					-
Deferred income tax liabilities (Notes 5 and 25)				-					-
Lease liabilities (Notes 5, 15 and 30)				-					1
Net defined benefit liability (Note 19)				-					-
Guarantee deposits				-					-
Others (Note 21)				2					3
Total noncurrent liabilities				16					21
Total liabilities				35					37
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
Capital stock (Note 20)				4					5
Capital surplus (Notes 20 and 27)				2					1
Retained earnings (Note 20)
Appropriated as legal capital reserve				4					6
Unappropriated earnings				54					51
				58					57
Others (Notes 20 and 27)				-			)		-
Equity attributable to shareholders of the parent				64					63
NON - CONTROLLING INTERESTS				1					-
Total equity				65					63
TOTAL		6,691,938,000		100		5,532,371,215			100

All values are in US Dollars.

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

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
	2024					2023
---	---	---	---	---	---	---	---	---	---	---	---
	Amount			%		Amount			%
NET REVENUE (Notes 5, 21, 33 and 39)		2,894,307,699			100		2,161,735,841			100
COST OF REVENUE (Notes 5, 12, 28, 33 and 36)					44					46
GROSS PROFIT					56					54
OPERATING EXPENSES (Notes 5, 28 and 33)
Research and development					7					8
General and administrative					3					3
Marketing					-					-
Total operating expenses					10					11
OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14, 28 and 36)			)		-					-
INCOME FROM OPERATIONS (Note 39)					46					43
NON-OPERATING INCOME AND EXPENSES
Share of profits of associates					-					-
Interest income (Note 22)					3					3
Other income					-					-
Foreign exchange gain (loss), net (Note 37)					-			)		-
Finance costs (Note 23)			)		-			)		(1	)
Other gains and losses, net (Note 24)			)		-					-
Total non-operating income and expenses					3					2
INCOME BEFORE INCOME TAX					49					45
INCOME TAX EXPENSE (Notes 5 and 25)					8					6
NET INCOME					41					39
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 5, 19, 20 and 25)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit obligation					-			)		-
Unrealized gain 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 benefit (expense) related to items that will not be reclassified subsequently			)		-					-
					-					-

All values are in US Dollars.

(Continued)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
					2023
---	---	---	---	---	---	---	---	---	---	---
			%		Amount			%
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations	64,299,685			2		(14,464,353	)		(1	)
Unrealized gain on investments in debt instruments at fair value through other comprehensive income				-					-
Loss on hedging instruments		)		-			)		-
Share of other comprehensive income of associates				-					-
				2			)		(1	)
Other comprehensive income (loss), net of income tax				2			)		(1	)
TOTAL COMPREHENSIVE INCOME	1,244,017,405			43		828,953,873			38
NET INCOME ATTRIBUTABLE TO:
Shareholders of the parent	1,173,267,703			41		838,497,664			39
Non-controlling interests		)		-			)		-
	1,172,431,759			41		837,767,517			39
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Shareholders of the parent	1,245,836,616			43		830,509,542			38
Non-controlling interests		)		-			)		-
	1,244,017,405			43		828,953,873			38
EARNINGS PER SHARE (NT, Note 26)
Basic earnings per share	45.25					32.34
Diluted earnings per share	45.25					32.34

All values are in US Dollars.

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

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)
	Equity Attributable to Shareholders of the Parent
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
																					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		-			-			-			-		(3,154,310	)		3,154,310			-			-			-			-			-			-			-			-			-			-
Cash dividends to shareholders		-			-			-			-		-			(317,663,220	)		(317,663,220	)		-			-			-			-			-			-			(317,663,220	)		-			(317,663,220	)
Total		-			-			-			-		(3,154,310	)		(314,508,910	)		(317,663,220	)		-			-			-			-			-			-			(317,663,220	)		-			(317,663,220	)
Net income		-			-			-			-		-			838,497,664			838,497,664			-			-			-			-			-			-			838,497,664			(730,147	)		837,767,517
Other comprehensive income (loss), net of income tax		-			-			-			-		-			(484,898	)		(484,898	)		(13,573,468	)		6,108,369			(38,125	)		-			(7,503,224	)		-			(7,988,122	)		(825,522	)		(8,813,644	)
Total comprehensive income (loss)		-			-			-			-		-			838,012,766			838,012,766			(13,573,468	)		6,108,369			(38,125	)		-			(7,503,224	)		-			830,509,542			(1,555,669	)		828,953,873
Disposal of investments accounted for using equity method		-			-			(18,112	)		-		-			-			-			-			-			-			-			-			-			(18,112	)		(370	)		(18,482	)
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			-		-			-			-			-			-			-			(108,281	)		(108,281	)		-			477,687			-			477,687
Disposal of investments in equity instruments at fair value through other comprehensive income		-			-			-			-		-			151,944			151,944			-			(151,944	)		-			-			(151,944	)		-			-			-			-
Basis adjustment for loss on hedging instruments		-			-			-			-		-			-			-			-			-			(45,181	)		-			(45,181	)		-			(45,181	)		-			(45,181	)
Adjustments to share of changes in equities of associates		-			-			(43	)		-		-			-			-			-			-			-			-			-			-			(43	)		-			(43	)
From share of changes in equities of subsidiaries		-			-			(21,268	)		-		-			-			-			-			-			-			-			-			-			(21,268	)		11,265,933			11,244,665
Donation from shareholders		-			-			16,413			-		-			-			-			-			-			-			-			-			-			16,413			35			16,448
Decrease in non-controlling interests		-			-			-			-		-			-			-			-			-			-			-			-			-			-			(196,381	)		(196,381	)
BALANCE, DECEMBER 31, 2023		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		-			-			-			-		-			(414,915,586	)		(414,915,586	)		-			-			-			-			-			-			(414,915,586	)		-			(414,915,586	)
Total		-			-			-			-		-			(414,915,586	)		(414,915,586	)		-			-			-			-			-			-			(414,915,586	)		-			(414,915,586	)
Net income		-			-			-			-		-			1,173,267,703			1,173,267,703			-			-			-			-			-			-			1,173,267,703			(835,944	)		1,172,431,759
Other comprehensive income (loss), net of income tax		-			-			-			-		-			126,040			126,040			65,579,764			6,948,818			(85,709	)		-			72,442,873			-			72,568,913			(983,267			71,585,646
Total comprehensive income (loss)		-			-			-			-		-			1,173,393,743			1,173,393,743			65,579,764			6,948,818			(85,709	)		-			72,442,873			-			1,245,836,616			(1,819,211	)		1,244,017,405
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			-		-			-			-			-			-			-			(1,414,645	)		(1,414,645	)		-			1,222,742			-			1,222,742
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		-			-			-			-		-			3,772,747			3,772,747			-			(4,009,066	)		-			-			(4,009,066	)		-			(236,319	)		236,319			-
Basis adjustment for gain on hedging instruments		-			-			-			-		-			-			-			-			-			141			-			141			-			141			-			141
Adjustments to share of changes in equities of associates		-			-			870,000			-		-			-			-			-			-			-			-			-			-			870,000			-			870,000
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		-			-			(90,978	)		-		-			-			-			-			-			-			-			-			-			(90,978	)		6,918,796			6,827,818
Donation from shareholders		-			-			8,883			-		-			-			-			-			-			-			-			-			-			8,883			64			8,947
Increase in non-controlling interests		-			-			-			-		-			-			-			-			-			-			-			-			-			-			5,349,773			5,349,773
BALANCE, DECEMBER 31, 2024		25,932,733		$	259,327,332		$	73,260,765		$	311,146,899	$	-		$	3,606,105,124		$	3,917,252,023		$	40,262,995		$	(1,160,176	)	$	1,310,307		$	(1,708,079	)	$	38,705,047		$	-		$	4,288,545,167		$	35,030,698		$	4,323,575,865

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

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)
	2024			2023
---	---	---	---	---	---	---
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax		1,405,838,635			979,171,324
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
Loss (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
Gain on disposal of investments accounted for using equity method, net			)			)
Loss (gain) 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)

10 -

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)
	2024			2023
---	---	---	---	---	---	---
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Financial instruments at fair value through profit or loss		(1,178,766	)		(14,142,072	)
Financial assets at fair value through other comprehensive income			)			)
Financial assets at amortized cost			)			)
Investments accounted for using equity method			)
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)
Donation from shareholders
Increase in non-controlling interests
Net cash used in financing activities			)			)

All values are in US Dollars.

(Continued)

11 -

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)
	2024		2023
---	---	---	---	---	---
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		47,165,901		(8,338,829	)
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR		2,127,627,043		1,465,427,753

All values are in US Dollars.

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

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 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 February 12, 2025.

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 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	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

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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 other impacts of the above amended standards and on its financial position and financial performance from the initial adoption of the aforementioned standards or interpretations and related applicable period. The related impact will be disclosed when the Company completes its evaluation.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

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 the IFRS Accounting Standards endorsed by the FSC with the effective dates (collectively, “Taiwan-IFRS Accounting Standards”).

Basis of Preparation

The accompanying consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for the assets.

Basis of Consolidation

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

The consolidated financial statements incorporate the financial statements of TSMC and entities controlled by TSMC (its subsidiaries).

Income and expenses of subsidiaries acquired or disposed of are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate. Total comprehensive income of subsidiaries is attributed to the shareholders of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

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When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Company’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to shareholders of the parent.

When the Company loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between:

a. the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and

b. the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interest.

The Company shall account for all amounts recognized in other comprehensive income in relation to the subsidiary on the same basis as would be required if the Company had directly disposed of the related assets and liabilities.

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the cost on initial recognition of an investment in an associate.

The subsidiaries in the consolidated financial statements

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

			Establishment	Percentage of Ownership
Name of Investor	Name of Investee	Main Businesses and Products	and Operating Location	December 31,<br><br>2024	December 31,<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%	-
	TSMC Europe B.V. (TSMC Europe)	Customer service and supporting activities	Amsterdam, the Netherlands	100%	100%	a)
	TSMC Japan Limited (TSMC Japan)	Customer service and supporting activities	Yokohama, Japan	100%	100%	a)
	TSMC Design Technology Japan, Inc. (TSMC JDC)	Engineering support activities	Yokohama, Japan	100%	100%	a)
	TSMC Japan 3DIC R&D Center, Inc. (TSMC 3DIC)	Engineering support activities	Yokohama, Japan	100%	100%	a)
	TSMC Korea Limited (TSMC Korea)	Customer service and supporting activities	Seoul, Korea	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%	-
	TSMC Global Ltd. (TSMC Global)	Investment activities	Tortola, British Virgin Islands	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%	-
	TSMC Nanjing Company Limited (TSMC Nanjing)	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	Nanjing, China	100%	100%	-
	VisEra Technologies Company Ltd. (VisEra Tech)	Research, design, development, manufacturing, sales, packaging and test of color filter	Hsinchu, Taiwan	67%	67%	c)
	TSMC Arizona Corporation (TSMC Arizona)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Phoenix, Arizona, U.S.A.	100%	100%	-

(Continued)

15 -

			Establishment	Percentage of Ownership
Name of Investor	Name of Investee	Main Businesses and Products	and Operating Location	December 31,<br><br>2024	December 31,<br><br>2023	Note
TSMC	Japan Advanced Semiconductor Manufacturing, Inc. (JASM)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Kumamoto, Japan	73%	71%	d)
	European Semiconductor Manufacturing Company (ESMC) GmbH (ESMC)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Dresden, Germany	70%	100%	e)
	VentureTech Alliance Fund II, L.P. (VTAF II)	Investing in technology start-up companies	Cayman Islands	98%	98%	b), f)
	VentureTech Alliance Fund III, L.P. (VTAF III)	Investing in technology start-up companies	Cayman Islands	98%	98%	b), f)
	Emerging Fund, L.P. (Emerging Fund)	Investing in technology start-up companies	Cayman Islands	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%	-
	TSMC Technology, Inc. (TSMC Technology)	Engineering support activities	Delaware, U.S.A.	100%	100%	a)
	TSMC Design Technology Canada Inc. (TSMC Canada)	Engineering support activities	Ontario, Canada	100%	100%	a)
VTAF III	Growth Fund Limited (Growth Fund)	Investing in technology start-up companies	Cayman Islands	100%	100%	b), f)
TSMC Development	TSMC Washington, LLC (TSMC Washington)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Washington, U.S.A.	100%	100%	-

(Concluded)

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: 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 e: 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.

Note f: VTAF II, VTAF III and Growth Fund are under liquidation procedures.

Foreign Currencies

The financial statements of each individual consolidated entity were expressed in the currency which reflected its primary economic environment (functional currency). The functional currency of TSMC and presentation currency of the consolidated financial statements are both New Taiwan Dollars (NT$). In preparing the consolidated financial statements, the operating results and financial positions of each consolidated entity are translated into NT$.

In preparing the financial statements of each individual consolidated entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Such exchange differences are recognized in profit or loss in the year in which they arise. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the year except for exchange differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured in terms of historical cost in foreign currencies are not retranslated.

For the purposes of presenting consolidated financial statements, the assets and liabilities of the Company’s foreign operations are translated into NT$ using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).

16 -

Classification of Current and Noncurrent Assets and Liabilities

Current assets are assets held for trading purposes and assets expected to be converted to cash, sold or consumed within one year from the end of the reporting period. Current liabilities are obligations incurred for trading purposes and obligations expected to be settled within one year from the end of the reporting period. Assets and liabilities that are not classified as current are noncurrent assets and liabilities, respectively.

Cash Equivalents

Cash equivalents, for the purpose of meeting short-term cash commitments, consist of highly liquid time deposits and investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Financial Instruments

Financial assets and liabilities shall be recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and liabilities are initially recognized at fair values. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial Assets

The classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Regular way purchases or sales of financial assets are recognized and derecognized on a trade date or settlement date basis for which financial assets were classified in the same way, respectively. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

a. Category of financial assets and measurement

Financial assets are classified into the following categories: financial assets at FVTPL, investments in debt instruments and equity instruments at FVTOCI, and financial assets at amortized cost.

1) Financial asset at FVTPL

For certain financial assets which include debt instruments that do not meet the criteria of amortized cost or FVTOCI, it is mandatorily required to measure them at FVTPL. Any gain or loss arising from remeasurement is recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest earned on the financial asset.

2) Investments in debt instruments at FVTOCI

Debt instruments with contractual terms specifying that cash flows are solely payments of principal and interest on the principal amount outstanding, together with objective of collecting contractual cash flows and selling the financial assets, are measured at FVTOCI.

Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment gains or losses on investments in debt instruments at FVTOCI are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when these debt instruments are disposed.

17 -

3) Investments in equity instruments at FVTOCI

On initial recognition, the Company may irrevocably designate investments in equity investments that is not held for trading as at FVTOCI.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity.

Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the Company’s rights clearly represent a recovery of part of the cost of the investment.

4) Measured at amortized cost

Cash and cash equivalents, commercial paper, debt instrument investments, notes and accounts receivable (including related parties), other receivables, refundable deposits and temporary payments (including those classified under other current assets and other noncurrent assets) are measured at amortized cost.

Debt instruments with contractual terms specifying that cash flows are solely payments of principal and interest on the principal amount outstanding, together with objective of holding financial assets in order to collect contractual cash flows, are measured at amortized cost.

Subsequent to initial recognition, financial assets measured at amortized cost are measured at amortized cost, which equals to carrying amount determined by the effective interest method less any impairment loss.

b. Impairment of financial assets

At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable) and for investments in debt instruments that are measured at FVTOCI.

The loss allowance for accounts receivable is measured at an amount equal to lifetime expected credit losses. For financial assets at amortized cost and investments in debt instruments that are measured at FVTOCI, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from possible default events of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from all possible default events over the expected life of a financial instrument.

The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset.

c. Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset to another entity.

18 -

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

Financial Liabilities and Equity Instruments

Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Financial liabilities

Financial liabilities are subsequently measured either at amortized cost using effective interest method or at FVTPL.

Financial liabilities are classified as at fair value through profit or loss when the financial liability is either held for trading or is designated as at fair value through profit or loss.

Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss.

Financial liabilities other than those held for trading purposes and designated as at FVTPL are subsequently measured at amortized cost at the end of each reporting period.

Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.

Derivative Financial Instruments

Derivative financial instruments are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative financial instrument is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

19 -

Hedge Accounting

a. Fair value hedge

The Company designates certain hedging instruments, such as interest rate futures contracts, to partially hedge against the fair value change caused by interest rates fluctuation in the Company’s fixed income investments. Changes in the fair value of hedging instruments that are designated and qualify as fair value hedges are recognized in profit or loss immediately, together with any changes in the fair value of the hedged items that are attributable to the hedged risk.

b. Cash flow hedge

The Company designates certain hedging instruments, such as forward contracts, to partially hedge its foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures or issuance of debts). The effective portion of changes in the fair value of hedging instruments is recognized in other comprehensive income. When forecast transactions actually take place, the accumulated gains or losses that were recognized in other comprehensive income are transferred from equity to the initial cost of the hedged items, or reclassified to finance costs of hedged items in the same period or periods during which the hedged expected future cash flows affect profit or loss. The gains or losses from hedging instruments relating to the ineffective portion are recognized immediately in profit or loss.

The Company prospectively discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated or exercised.

c. Hedges of net investments in foreign operations

The Company designates certain hedging instruments, such as bank loans denominated in foreign currency, as a hedge of net investments in foreign operations to manage the exchange differences arising on translation of foreign operations due to currency fluctuations. Any gains or losses on the hedging instrument relating to the effective portion of the hedge are recognized in other comprehensive income and accumulated under the heading of foreign currency translation reserve. The gains or losses relating to the ineffective portion are recognized immediately in profit or loss.

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

Inventories

Inventories are stated at the lower of cost or net realizable value. Inventories are recorded at standard cost and adjusted to approximate weighted-average cost at the end of the reporting period. Net realizable value represents the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale.

Investments Accounted for Using Equity Method

Investments accounted for using the equity method are investments in associates.

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

20 -

The operating results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. Under the equity method, an investment in an associate is initially recognized in the consolidated statements of financial position at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the associate as well as the distribution received. The Company also recognizes its share in the changes in the equities of associates.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Company discontinues the use of the equity method from the date when the Company ceases to have significant influence over an associate. When the Company retains an interest in the former associate, the Company measures the retained interest at fair value at that date. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate is included in the determination of the gain or loss on disposal of the associate. In addition, the Company shall account for all amounts recognized in other comprehensive income in relation to that associate on the same basis as would be required if the associate had directly disposed of the related assets or liabilities. If the Company’s ownership interest in an associate is reduced as a result of disposal, but the investment continues to be an associate, the Company should reclassify to profit or loss only a proportionate amount of the gain or loss previously recognized in other comprehensive income.

When the Company subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the net assets of the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If the Company’s ownership interest is reduced due to the additional subscription to the shares of associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate shall be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

When a consolidated entity transacts with an associate, profits and losses resulting from the transactions with the associate are recognized in the Company’s consolidated financial statements only to the extent of interests in the associate that are not owned by the Company.

Property, Plant and Equipment

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment. Costs include any incremental costs that are directly attributable to the construction, acquisition of the item of property, plant and equipment or borrowing costs eligible for capitalization.

Property, plant and equipment in the course of construction for production, supply or administrative purposes are carried at cost, less any recognized impairment loss. Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other identical categories of property, plant and equipment, commences when the assets are available for their intended use.

21 -

Depreciation is recognized so as to write off the cost of the assets less their residual values over their useful lives, and it is computed using the straight-line method mainly over the following estimated useful lives: land improvements - 10 to 20 years; buildings (assets used by the Company and assets subject to operating leases) - 10 to 20 years; machinery and equipment (assets used by the Company and assets subject to operating leases) - 5 years; and office equipment - 5 years. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis. Land is not depreciated.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

Leases

For a contract that contains a lease component and non-lease component, the Company may elect to account for the lease and non-lease components as a single lease component.

The Company as lessor

Rental income from operating lease is recognized on a straight-line basis over the term of the lease.

The Company as lessee

Except for payments for low-value asset leases and short-term leases (leases of machinery and equipment and others) which are recognized as expenses on a straight-line basis, the Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of the lease.

Right-of-use assets are measured at cost. The cost of right-of-use assets comprises the initial measurement of lease liabilities adjusted for lease payments and initial direct costs made at or before the commencement date, plus an estimate of costs needed to restore the underlying assets. Subsequent measurement is calculated as cost less accumulated depreciation and accumulated impairment loss and adjusted for changes in lease liabilities as a result of lease term modifications or other related factors. Right-of-use assets are presented separately in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms. If the lease transfers ownership of the underlying assets to the Company by the end of the lease terms or if the cost of right-of-use assets reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use assets from the commencement dates to the end of the useful lives of the underlying assets.

Lease liabilities are measured at the present value of the lease payments. Lease payments comprise fixed payments, variable lease payments which depend on an index or a rate and the exercise price of a purchase option if the Company is reasonably certain to exercise that option. The lease payments are discounted using the lessee’s incremental borrowing rates.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in future lease payments resulting from a change in an index or a rate used to determine those payments, or a change in the assessment of an option to purchase an underlying asset, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. Lease liabilities are presented on a separate line in the consolidated balance sheets.

22 -

Intangible Assets

Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

Other intangible assets

Other separately acquired intangible assets with finite useful lives are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized using the straight-line method over the following estimated useful lives: Technology license fees - the estimated life of the technology or the term of the technology transfer contract; software and system design costs - 3 years or contract period; patent and others - the economic life or contract period. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Impairment of Tangible Assets, Right-of-use Assets and Intangible Assets

Goodwill

Goodwill is not amortized and instead is tested for impairment annually, or more frequently when there is an indication that the cash generating unit may be impaired. For the purpose of impairment testing, goodwill is allocated to each of the Company’s cash-generating units or groups of cash-generating units that are expected to benefit from the synergies of the combination. If the recoverable amount of a cash-generating unit is less than its carrying amount, the difference is allocated first to reduce the carrying amount of any goodwill allocated to such cash generating unit and then to the other assets of the cash generating unit pro rata based on the carrying amount of each asset in the cash generating unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

Tangible assets, right-of-use assets and other intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible assets (property, plant and equipment), right-of-use assets and other intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset or a cash-generating unit is increased to the revised estimate of its recoverable amount, but the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for

23 -

the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

Revenue Recognition

The Company recognizes revenue when performance obligations are satisfied. The performance obligations are satisfied when customers obtain control of the promised goods, which is generally when the goods are delivered to the customers’ specified locations.

Revenue from sale of goods is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Estimated sales returns and other allowances is generally made and adjusted based on historical experience and the consideration of varying contractual terms to recognize refund liabilities, which is classified under accrued expenses and other current liabilities.

In principle, payment term granted to customers is due 30 days from the invoice date or 15 days from the end of the month of when the invoice is issued. Due to the short term nature of the receivables from sale of goods with the immaterial discounted effect, the Company measures them at the original invoice amounts without discounting.

Employee Benefits

Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for service rendered by employees.

Retirement benefits

For defined contribution retirement benefit plans, payments to the benefit plan are recognized as an expense when the employees have rendered service entitling them to the contribution. For defined benefit retirement benefit plans, the cost of providing benefit is recognized based on actuarial calculations.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the Projected Unit Credit Method. Service cost (including current service cost), and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability represents the actual deficit in the Company’s defined benefit plan.

Treasury Stock

Treasury stock represents the outstanding shares that the Company buys back from market, which is stated at cost and shown as a deduction in shareholders’ equity. When the Company retires treasury stock, the treasury stock account is reduced and the common stock as well as the capital surplus - additional paid-in capital are reversed on a pro rata basis. When the book value of the treasury stock exceeds the sum of the par value and additional paid-in capital, the difference is charged to capital surplus - treasury stock transactions and to retained earnings for any remaining amount.

24 -

Share-based payment arrangements

a. Equity-settled share-based payment arrangements

Restricted shares for employees are expensed on a straight-line basis over the vesting period, based on the fair value at the grant date and the Company’s best estimate of the number expected to ultimately vest, with a corresponding increase in other equity - unearned stock-based employee compensation.

When restricted shares for employees are issued, other equity - unearned stock-based employee compensation is recognized on the grant date, with a corresponding increase in capital surplus - restricted shares for employees. Dividends paid to employees on restricted shares which do not need to be returned if employees resign in the vesting period are recognized as expenses upon the dividend declaration with a corresponding adjustment in retained earnings.

At the end of each reporting period, the Company revises its estimate of the number of restricted shares for employees that are expected to vest. The impact from such revision is recognized in profit or loss so that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capital surplus - restricted shares for employees.

b. Cash-settled share-based payment arrangements

For cash-settled share-based payments, a liability is recognized for the services acquired, measured at the fair value of the liability incurred. At the end of each reporting period until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognized in profit or loss.

Taxation

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

Current tax

Income tax on unappropriated earnings (excluding earnings from foreign consolidated subsidiaries) is expensed in the year the shareholders approved the appropriation of earnings which is the year subsequent to the year the earnings are generated.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, net operating loss carryforwards and tax credits for research and development expenses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

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The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered. The deferred tax assets which originally not recognized is also reviewed at the end of each reporting period and recognized to the extent that it is probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the year in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.

Government Grants

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received.

Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire noncurrent assets (mainly including land use right and depreciable assets) are recognized as a deduction from the carrying amount of the related assets and recognized as a reduced depreciation or amortization charge in profit or loss over the contract period or useful lives of the related assets. Government grants that are receivables as compensation for expenses already incurred are deducted from incurred expenses in the period in which they become receivables.

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

In the application of the aforementioned Company’s accounting policies, the Company is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years.

Material Accounting Judgments

Revenue Recognition

The Company recognizes revenue when the conditions described in Note 4 are satisfied.

Commencement of Depreciation Related to Property, Plant and Equipment Classified as Equipment under Installation and Construction in Progress (EUI/CIP)

As described in Note 4, commencement of depreciation related to EUI/CIP involves determining when the assets are available for their intended use. The criteria the Company uses to determine whether EUI/CIP are available for their intended use involves subjective judgments and assumptions about the conditions necessary for the assets to be capable of operating in the intended manner.

26 -

Judgments on Lease Terms

In determining a lease term, the Company considers all facts and circumstances that create an economic incentive to exercise or not to exercise an option, including any expected changes in facts and circumstances from the commencement date until the exercise date of the option. Main factors considered include contractual terms and conditions covered by the optional periods, and the importance of the underlying asset to the lessee’s operations, etc. The lease term is reassessed if a significant change in circumstances that are within the control of the Company occurs.

Key Sources of Estimation and Uncertainty

Estimation of Sales Returns and Allowances

Sales returns and other allowance is estimated and recorded based on historical experience and in consideration of different contractual terms. The amount is deducted from revenue in the same period the related revenue is recorded. The Company periodically reviews the reasonableness of the estimates.

Valuation of Inventory

Inventories are stated at the lower of cost or net realizable value, and the Company uses estimate to determine the net realizable value of inventory at the end of each reporting period.

The Company estimates the net realizable value of inventory for normal waste, obsolescence and unmarketable items at the end of reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is determined mainly based on assumptions of future demand within a specific time horizon.

Impairment of Tangible Assets, Right-of-use Assets and Intangible Assets Other than Goodwill

In the process of evaluating the potential impairment of tangible assets, right-of-use assets and intangible assets other than goodwill, the Company determines the independent cash flows, useful lives, expected future revenue and expenses related to the specific asset groups with the consideration of the nature of semiconductor industry. Any change in these estimates based on changed economic conditions or business strategies could result in significant impairment charges or reversal in future years.

Realization of Deferred Income Tax Assets

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which those deferred tax assets and unused tax losses can be utilized. Assessment of the realization of the deferred tax assets requires subjective judgment and estimate, including the future revenue growth and profitability, tax holidays, the amount of tax credits can be utilized and feasible tax planning strategies. Any changes in the global economic environment, the industry trends and relevant laws and regulations could result in significant adjustments to the deferred tax assets.

Determination of Lessees’ Incremental Borrowing Rates

In determining a lessee’s incremental borrowing rate used in discounting lease payments, the Company mainly takes into account the market risk-free rates, the estimated lessee’s credit spreads and secured status in a similar economic environment.

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6. CASH AND CASH EQUIVALENTS


Cash and deposits in banks	2,120,674,818	1,453,101,566
Money market funds
Repurchase agreements
Commercial paper
Government bonds/Agency bonds
	2,127,627,043	1,465,427,753

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


Financial assets
Mandatorily measured at FVTPL
Convertible preferred stocks	14,181,839	13,307,160
Mutual funds
Forward exchange contracts
Simple agreement for future equity
Convertible bonds
	15,407,542	14,342,093
Current	207,700	924,636
Noncurrent
	15,407,542	14,342,093
Financial liabilities
Held for trading
Forward exchange contracts	466,539	121,412

All values are in US Dollars.

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)
December 31, 2024
Sell US$	January 2025 to March 2025	US$	3,331,445
Sell JPY	January 2025	JPY	45,233,963

(Continued)

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		Contract Amount
	Maturity Date	(In Thousands)
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

(Concluded)

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME


Investments in debt instruments at FVTOCI
Corporate bonds	108,612,082	79,605,567
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

	200,025,541	161,739,485
Current	192,202,657	154,530,830
Noncurrent
	200,025,541	161,739,485

All values are in US Dollars.

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 years ended December 31, 2024 and 2023, as the Company adjusted its investment portfolio, equity investments designated at FVTOCI were divested for NT$6,189,982 thousand and NT$271,983 thousand, respectively. The related other equity-unrealized gain/loss on financial assets at FVTOCI of NT$3,772,747 thousand and NT$151,944 thousand were transferred to increase retained earnings, respectively.

As of December 31, 2024 and 2023, the cumulative loss allowance for expected credit loss of NT$63,092 thousand and NT$47,311 thousand was recognized under investments in debt instruments at FVTOCI, respectively. Refer to Note 32 for information relating to the credit risk management and expected credit loss.

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9. FINANCIAL ASSETS AT AMORTIZED COST


Corporate bonds	172,091,958		113,851,856
Commercial paper
Government bonds/Agency bonds
Less: Allowance for impairment loss		)		)
	190,567,864		145,960,588
Current	101,971,322		66,761,221
Noncurrent
	190,567,864		145,960,588

All values are in US Dollars.

Refer to Note 32 for information relating to credit risk management and expected credit loss for financial assets at amortized cost.

10. HEDGING FINANCIAL INSTRUMENTS


Financial assets- current
Fair value hedges
Interest rate futures contracts	10,959	-
Financial liabilities- current
Fair value hedges
Interest rate futures contracts	-	43,764
Hedges of net investments in foreign operations
Bank loans
	-	27,334,164

All values are in US Dollars.

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.

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

December 31, 2024

Hedging Instruments	Contract Amount<br><br>(US$ in Thousands)	Maturity
Interest rate futures contracts - US Treasury futures	US$ 40,400	March 2025
Hedged Items	Asset Carrying Amount	Accumulated Amount of Fair Value Hedge Adjustments
---	---	---
Financial assets at FVTOCI	$ 3,129,235	$ (10,959)

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 Fair Value Hedge Adjustments
---	---	---
Financial assets at FVTOCI	$ 3,959,523	$ 43,764

The effect for the years ended December 31, 2024 and 2023 is detailed below:

	Change in Value Used for Calculating Hedge Ineffectiveness
	Years Ended December 31
Hedging Instruments/Hedged Items	2024			2023
Hedging Instruments
Interest rate futures contracts - US Treasury futures		174,128			20,478
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.

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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 20 (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 years ended December 31, 2024 and 2023 is detailed below:

Hedging Instruments/Hedged Items	Change in Value Used for Calculating Hedge<br><br>Ineffectiveness
	Years Ended December 31
	2024			2023
Hedging Instruments
Forward exchange contracts	$	5,041		$	39,898
Hedged Items
Forecast transaction (capital expenditures)	$	(5,041	)	$	(39,898	)

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

The effect for the years ended December 31, 2024 and 2023 is detailed below:

	Change in Value Used for Calculating Hedge<br><br>Ineffectiveness
	Years Ended December 31
Hedging Instruments/Hedged Items	2024			2023
Hedging Instruments
Bank loans	$	793,830		$	618,180
Hedged Items
Net investments in foreign operations	$	(793,830	)	$	(618,180	)

32 -

11. NOTES AND ACCOUNTS RECEIVABLE, NET


At amortized cost
Notes and accounts receivable	265,223,660		196,434,151
Less: Loss allowance		)		)

At FVTOCI
	270,683,235		201,313,914

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


Not past due	255,669,647		183,188,499
Past due
Past due within 30 days
Past due over 31 days
Less: Loss allowance		)		)
	270,683,235		201,313,914

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

	Years Ended December 31
	2024			2023
Balance, beginning of year		531,554			331,646
Provision (Reversal)			)
Effect of exchange rate changes						)
Balance, end of year		453,009			531,554

All values are in US Dollars.

For the years ended December 31, 2024 and 2023, the changes in loss allowance were mainly due to the variations in the balance of accounts receivable of different risk levels.

33 -

12. INVENTORIES


Finished goods	35,177,009	34,511,032
Work in process
Raw materials
Supplies and spare parts
	287,868,810	250,997,088

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 36.

	Years Ended December 31
	2024		2023
Net inventory losses	$	888,682	$	3,494,638

13. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Associates consisted of the following:

		Place of	Carrying Amount				% of Ownership and Voting Rights Held by the Company
Name of Associate	Principal Activities	Incorporation and Operation	December 31,2024		December 31,2023		December 31,<br><br>2024	December 31,<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		18,300,373		13,590,430	28%	28%
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)	Manufacturing and sales of integrated circuits and other semiconductor devices	Singapore					39%	39%
Xintec Inc. (Xintec)	Wafer level chip size packaging and wafer level post passivation interconnection service	Taoyuan, Taiwan					41%	41%
Global Unichip Corporation (GUC)	Researching, developing, manufacturing, testing and marketing of integrated circuits	Hsinchu, Taiwan					35%	35%
				37,421,105		29,616,638

All values are in US Dollars.

The Company increased its investment in VIS for the amount of NT$3,738,753 thousand in 2024.

As of December 31, 2024 and 2023, no investments in associates are individually material to the Company. Please refer to the consolidated statements of comprehensive income for recognition of share of both profit (loss) and other comprehensive income (loss) of associates that are not individually material.

The market prices of the associates’ ownership held by the Company in publicly traded stocks calculated by the closing price are summarized as follows. The closing price represents the quoted price in active markets, the level 1 fair value measurement.

Name of Associate	December 31,<br><br>2024		December 31,<br><br>2023
GUC	$	63,495,488	$	81,236,875
VIS	$	50,620,261	$	37,834,215
Xintec	$	22,033,821	$	14,188,445

34 -

14. PROPERTY, PLANT AND EQUIPMENT


Assets used by the Company	3,234,778,389	3,064,424,259
Assets subject to operating leases
	3,234,980,070	3,064,474,984

All values are in US Dollars.

Assets used by the Company


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 December 31, 2024	13,054,161		959,133,864		5,852,202,689		105,434,750		1,080,284,237		8,010,109,701
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 December 31, 2024	608,531		440,369,241		4,262,882,850		70,679,950		790,740		4,775,331,312
Carrying amounts at December 31, 2024	12,445,630		518,764,623		1,589,319,839		34,754,800		1,079,493,497		3,234,778,389
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 December 31, 2023	7,621,997		817,822,975		5,384,985,648		99,825,084		908,289,751		7,218,545,455
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 December 31, 2023	558,074		387,013,911		3,699,008,492		66,749,979		790,740		4,154,121,196
Carrying amounts at December 31, 2023	7,063,923		430,809,064		1,685,977,156		33,075,105		907,499,011		3,064,424,259

All values are in US Dollars.

35 -

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 36.

Information about capitalized interest is set out in Note 23.

15. LEASE ARRANGEMENTS

a. Right-of-use assets


Carrying amounts
Land	36,980,971	37,437,179
Buildings
Office equipment
	40,128,391	40,424,830

All values are in US Dollars.

	Years Ended December 31
	2024		2023
Additions to right-of-use assets		4,579,647		2,145,431
Depreciation of right-of-use assets
Land		2,541,876		2,459,068
Buildings
Machinery and equipment
Office equipment
		3,679,507		3,458,968

All values are in US Dollars.

b. Lease liabilities


Carrying amounts
Current portion (classified under accrued expenses and other current liabilities)	3,049,032	2,810,551
Noncurrent portion
	31,804,374	31,492,386

All values are in US Dollars.

36 -

Ranges of discount rates for lease liabilities are as follows:

	December 31,<br><br>2024	December 31,<br><br>2023
Land	0.39%-2.30%	0.39%-2.30%
Buildings	0.40%-6.52%	0.57%-6.52%
Office equipment	0.28%-6.46%	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

	Years Ended December 31
	2024		2023
Expenses relating to short-term leases	$	181,245	$	1,215,147
Total cash outflow for leases	$	3,415,463	$	4,916,886

16. INTANGIBLE ASSETS


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 December 31, 2024	6,070,864		28,566,518		53,279,044		13,133,519		101,049,945
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 December 31, 2024	-		23,186,748		40,100,685		11,479,992		74,767,425
Carrying amounts at December 31, 2024	6,070,864		5,379,770		13,178,359		1,653,527		26,282,520
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		4,617				)
Balance at December 31, 2023	5,796,438		26,221,351		49,317,031		12,347,434		93,682,254

All values are in US Dollars.

(Continued)

37 -


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 December 31, 2023	-	20,490,070	39,846,671		10,578,769	70,915,510
Carrying amounts at December 31, 2023	5,796,438	5,731,281	9,470,360		1,768,665	22,766,744

All values are in US Dollars.

(Concluded)

The Company’s goodwill has been tested for impairment at the end of the annual reporting period and the recoverable amount is determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering the future five-year period, and the Company used annual discount rates of 9.3% and 9.0% in its test of impairment as of December 31, 2024 and 2023, respectively, to reflect the relevant specific risk in the cash-generating unit.

For the years ended December 31, 2024 and 2023, the Company did not recognize any impairment loss on goodwill.

17. BONDS PAYABLE


Domestic unsecured bonds	478,536,000		447,194,000
Overseas unsecured bonds
Less: Discounts on bonds payable		)		)
Less: Current portion		)		)
	926,604,506		913,899,843

All values are in US Dollars.

The major terms of domestic unsecured bonds are as follows:

Issuance	Issuance Period		Coupon Rate	Repayment and<br><br>Interest Payment
NT unsecured bonds
101-4	January 2013 to January 2023	3,000,000	1.49%	Bullet repayment; interest payable annually
102-1	February 2013 to February 2023		1.50%	The same as above
102-2	July 2013 to July 2023		1.70%	The same as above
102-4	September 2013 to March 2023		2.05%	The same as above
	September 2013 to September 2023		2.10%	The same as above

All values are in US Dollars.

(Continued)

38 -

Issuance	Tranche	Issuance Period		Coupon Rate	Repayment and<br><br>Interest Payment
109-1	A	March 2020 to March 2025	3,000,000	0.58%	Bullet repayment; interest payable annually
	B	March 2020 to March 2027		0.62%	The same as above
	C	March 2020 to March 2030		0.64%	The same as above
109-2	A	April 2020 to April 2025		0.52%	The same as above
	B	April 2020 to April 2027		0.58%	The same as above
	C	April 2020 to April 2030		0.60%	The same as above
109-3	A	May 2020 to May 2025		0.55%	The same as above
	B	May 2020 to May 2027		0.60%	The same as above
	C	May 2020 to May 2030		0.64%	The same as above
109-4	A	July 2020 to July 2025		0.58%	Two equal installments in last two years; interest payable annually
	B	July 2020 to July 2027		0.65%	The same as above
	C	July 2020 to July 2030		0.67%	The same as above
109-5	A	September 2020 to September 2025		0.50%	The same as above
	B	September 2020 to September 2027		0.58%	The same as above
	C	September 2020 to September 2030		0.60%	The same as above
109-6<br>(Green bond)	A	December 2020 to December 2025		0.40%	The same as above
	B	December 2020 to December 2027		0.44%	The same as above
	C	December 2020 to December 2030		0.48%	The same as above
109-7	A	December 2020 to December 2025		0.36%	The same as above
	B	December 2020 to December 2027		0.41%	The same as above
	C	December 2020 to December 2030		0.45%	The same as above
110-1	A	March 2021 to March 2026		0.50%	Bullet repayment; interest payable annually
	B	March 2021 to March 2028		0.55%	The same as above
	C	March 2021 to March 2031		0.60%	The same as above

All values are in US Dollars.

(Continued)

39 -

Issuance	Tranche	Issuance Period		Coupon Rate	Repayment and<br><br>Interest Payment
110-2	A	May 2021 to May 2026	5,200,000	0.50%	Bullet repayment; interest payable annually
	B	May 2021 to May 2028		0.58%	The same as above
	C	May 2021 to May 2031		0.65%	The same as above
110-3	A	June 2021 to June 2026		0.52%	The same as above
	B	June 2021 to June 2028		0.58%	The same as above
	C	June 2021 to June 2031		0.65%	The same as above
110-4	A	August 2021 to August 2025		0.485%	The same as above
	B	August 2021 to August 2026		0.50%	The same as above
	C	August 2021 to August 2028		0.55%	The same as above
	D	August 2021 to August 2031		0.62%	The same as above
110-6	A	October 2021 to April 2026		0.535%	The same as above
	B	October 2021 to October 2026		0.54%	The same as above
	C	October 2021 to October 2028		0.60%	The same as above
	D	October 2021 to October 2031		0.62%	The same as above
110-7	A	December 2021 to December 2026		0.65%	The same as above
	B	December 2021 to June 2027		0.675%	The same as above
	C	December 2021 to December 2028		0.72%	The same as above
111-1<br>(Green bond)	A	January 2022 to January 2027		0.63%	The same as above
	B	January 2022 to January 2029		0.72%	The same as above
111-2	A	March 2022 to September 2026		0.84%	The same as above
	B	March 2022 to March 2027		0.85%	The same as above
	C	March 2022 to March 2029		0.90%	The same as above
111-3 <br>(Green bond)	-	May 2022 to May 2027		1.50%	The same as above
111-4 <br>(Green bond)	A	July 2022 to July 2026		1.60%	The same as above
	B	July 2022 to July 2027		1.70%	The same as above

All values are in US Dollars.

(Continued)

40 -

Issuance	Tranche	Issuance Period		Coupon Rate	Repayment and<br><br>Interest Payment
111-4 <br>(Green bond)	C	July 2022 to July 2029	1,200,000	1.75%	Bullet repayment; interest payable annually
	D	July 2022 to July 2032		1.95%	The same as above
111-5	A	August 2022 to June 2027		1.65%	The same as above
	B	August 2022 to August 2027		1.65%	The same as above
	C	August 2022 to August 2029		1.65%	The same as above
	D	August 2022 to August 2032		1.82%	The same as above
111-6 <br>(Green bond)	A	October 2022 to October 2027		1.75%	The same as above
	B	October 2022 to October 2029		1.80%	The same as above
	C	October 2022 to October 2032		2.00%	The same as above
112-1<br>(Green bond)	A	March 2023 to March 2028		1.54%	The same as above
	B	March 2023 to March 2030		1.60%	The same as above
	C	March 2023 to March 2033		1.78%	The same as above
112-2<br>(Green bond)	A	May 2023 to May 2028		1.60%	The same as above
	B	May 2023 to May 2030		1.65%	The same as above
	C	May 2023 to May 2033		1.82%	The same as above
112-3	A	June 2023 to June 2028		1.60%	The same as above
	B	June 2023 to June 2030		1.65%	The same as above
	C	June 2023 to June 2033		1.80%	The same as above
112-4	A	August 2023 to August 2028		1.60%	The same as above
	B	August 2023 to August 2030		1.65%	The same as above
	C	August 2023 to August 2033		1.76%	The same as above
112-5	A	October 2023 to October 2028		1.62%	The same as above
	B	October 2023 to October 2033		1.76%	The same as above

All values are in US Dollars.

(Continued)

41 -

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

All values are in US Dollars.

(Concluded)

Issuance	Tranche	Issuance Period	Total Issue Amount (US$<br><br>in Thousands)	Coupon Rate	Repayment and<br><br>Interest Payment
US unsecured bonds
	-	September 2020 to September 2060	US$ 1,000,000	2.70%	Bullet repayment (callable on the 5th anniversary of the issue date and every anniversary thereafter); interest payable annually
	-	September 2021 to September 2051	1,000,000	3.10%	The same as above

All values are in US Dollars.

The major terms of overseas unsecured bonds are as follows:

Issuance Period	Total Issue 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)

42 -

Issuance Period	Total Issue 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


NT unsecured loans	4,410,833		6,706,389
unsecured loans
Less: Discounts on government grants		)		)
Less: Current portion		)		)
	31,824,386		4,382,965
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.

43 -

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant to the Act, TSMC and VisEra Tech have made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts. Furthermore, TSMC North America, TSMC Europe, TSMC Japan, TSMC JDC, TSMC 3DIC, TSMC China, TSMC Nanjing, TSMC Arizona, JASM, ESMC, TSMC Technology and TSMC Canada also make monthly contributions at certain percentages of the basic salary of their employees. Accordingly, the Company recognized expenses of NT$5,932,269 thousand and NT$5,365,458 thousand for the years ended December 31, 2024 and 2023, respectively.

b. Defined benefit plans

TSMC has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the Funds.

Amounts recognized in respect of these defined benefit plans were as follows:

	Years Ended December 31
	2024			2023
Current service cost		153,020			139,101
Net interest expense
Components of defined benefit costs recognized in profit or loss
Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense)			)			)
Actuarial loss arising from experience adjustments
Actuarial (gain) loss arising from changes in financial assumptions			)
Components of defined benefit costs recognized in other comprehensive income			)
Total		131,315			904,748

All values are in US Dollars.

The pension costs of the aforementioned defined benefit plans were recognized in profit or loss by the following categories:

	Years Ended December 31
	2024		2023
Cost of revenue		178,507		182,333
Research and development expenses
General and administrative expenses
Marketing expenses
		275,680		281,392

All values are in US Dollars.

44 -

The amounts arising from the defined benefit obligation of the Company were as follows:


Present value of defined benefit obligation	18,332,160		17,995,066
Fair value of plan assets		)		)
Net defined benefit liability	7,580,657		9,257,224

All values are in US Dollars.

Movements in the present value of the defined benefit obligation were as follows:

	Years Ended December 31
	2024			2023
Balance, beginning of year		17,995,066			17,483,951
Current service cost
Interest expense
Remeasurement:
Actuarial loss arising from experience adjustments
Actuarial (gain) loss arising from changes in financial assumptions			)
Benefits paid from plan assets			)			)
Benefits paid directly by the Company			)			)
Balance, end of year		18,332,160			17,995,066

All values are in US Dollars.

Movements in the fair value of the plan assets were as follows:

	Years Ended December 31
	2024			2023
Balance, beginning of year		8,737,842			8,162,860
Interest income
Remeasurement:
Return on plan assets (excluding amounts included in net interest expense)
Contributions from employer
Benefits paid from plan assets			)			)
Balance, end of year		10,751,503			8,737,842

All values are in US Dollars.

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


Cash	1,569,719	1,351,744
Equity instruments
Debt instruments
	10,751,503	8,737,842

All values are in US Dollars.

45 -

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions of the actuarial valuation were as follows:

	Measurement Date
	December 31,<br><br>2024	December 31,<br><br>2023
Discount rate	1.60%	1.40%
Future salary increase rate	4.00%	4.00%

Through the defined benefit plans under the R.O.C. Labor Standards Law, the Company is exposed to the following risks:

1) Investment risk: The pension funds are invested in equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the government’s designated authorities or under the mandated management. However, under the R.O.C. Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a two-year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return.

2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the debt investments of the plan assets.

Assuming a hypothetical decrease in interest rate at the end of the reporting period contributed to a decrease of 0.5% (and not below 0.0%) in the discount rate and all other assumptions were held constant, the present value of the defined benefit obligation would increase by NT$717,535 thousand and NT$757,663 thousand as of December 31, 2024 and 2023, respectively.

3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

Assuming the expected salary rate increases by 0.5% at the end of the reporting period and all other assumptions were held constant, the present value of the defined benefit obligation would increase by NT$697,715 thousand and NT$735,167 thousand as of December 31, 2024 and 2023, respectively.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability.

The Company expects to make contributions of NT$1,869,955 thousand to the defined benefit plans in the next year starting from December 31, 2024. The weighted average duration of the defined benefit obligation is 8 years.

46 -

20. EQUITY

a. Capital stock

	December 31,<br><br>2024		December 31,<br><br>2023
Authorized shares (in thousands)		28,050,000		28,050,000
Authorized capital	$	280,500,000	$	280,500,000
Issued and paid shares (in thousands)		25,932,733		25,932,071
Issued capital	$	259,327,332	$	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, TSMC 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 27 for information on RSAs.

On August 13, 2024, TSMC’s Board of Directors resolved to cancel 3,249 thousand treasury shares. Refer to Note 20(e) for further information.

As of December 31, 2024, TSMC’s total issued and outstanding ADSs were 1,062,769 thousand units, representing 5,313,844 thousand common shares.

b. Capital surplus

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


May be used to offset a deficit, distributed as cash dividends, or<br><br>transferred to share capital
Additional paid-in capital	24,809,704	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)

47 -


May only be used to offset a deficit
From share of changes in equities of subsidiaries	4,108,958	4,199,936
From share of changes in equities of associates
Donations - unclaimed dividend
May not be used for any purpose
Employee restricted shares
	73,260,765	69,876,381

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.

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:

	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Resolution Date of TSMC’s	of 2024		of 2024		of 2024		of 2024
Board of Directors in its	February 12,		November 12,		August 13,		May 10,
meeting	2025		2024		2024		2024
Special capital reserve	$	-	$	-	$	-	$	(28,020,822	)
Cash dividends to shareholders	$	116,697,300	$	116,697,300	$	103,721,521	$	103,734,517
Cash dividends per share (NT$)	$	4.50	$	4.50	$	4.00	$	4.00

48 -

	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:

	Year Ended December 31, 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 year		(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
Disposal of investments in equity instruments at fair value through other comprehensive income						)									)
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						)			)
Other comprehensive income transferred to profit or loss due to decline of equity method			)												)
Income tax effect						)									)
Balance, end of year		40,262,995			(1,160,176	)		1,310,307			(1,708,079	)		38,705,047

All values are in US Dollars.

49 -

	Year Ended December 31, 2023
	Foreign Currency Translation Reserve			Unrealized Gain (Loss) on Financial Assets at FVTOCI			Gain (Loss) on Hedging Instruments			Unearned Stock-BasedEmployee Compensation			Total
Balance, beginning of year		(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
Disposal of investments in equity instruments at fair value through other comprehensive income						)									)
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 year		(25,316,769	)		(4,099,928	)		1,395,875			(293,434	)		(28,314,256	)

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.

21. NET REVENUE

a. Disaggregation of revenue from contracts with customers

	Years Ended December 31
Product	2024		2023
Wafer		2,514,461,292		1,882,518,080
Others
		2,894,307,699		2,161,735,841

All values are in US Dollars.

50 -

	Years Ended December 31
Geography	2024		2023
Taiwan		270,413,546		149,777,343
United States
China
Japan
Europe, the Middle East and Africa
Others
		2,894,307,699		2,161,735,841

All values are in US Dollars.

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

	Years Ended December 31
Platform	2024		2023
High Performance Computing		1,476,890,566		934,768,625
Smartphone
Internet of Things
Automotive
Digital Consumer Electronics
Others
		2,894,307,699		2,161,735,841

All values are in US Dollars.

	Years Ended December 31
Resolution	2024		2023
3-nanometer		459,530,166		108,045,275
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		2,514,461,292		1,882,518,080

All values are in US Dollars.

b. Contract balances

	December 31,<br><br>2024		December 31,<br><br>2023		January 1,<br><br>2023
Contract liabilities (classified under accrued expenses and other current liabilities)	$	89,435,361	$	52,736,430	$	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.

51 -

The Company recognized revenue from the beginning balance of contract liability, which amounted to NT$51,578,433 thousand and NT$69,598,265 thousand for the years ended December 31, 2024 and 2023, respectively.

c. Temporary receipts from customers


Current portion (classified under accrued expenses and other current liabilities)	198,602,570	114,639,514
Noncurrent portion (classified under other noncurrent liabilities)
	291,101,832	278,294,642

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.

d. Refund liabilities

Estimated sales returns and other allowances is made and adjusted based on historical experience and the consideration of varying contractual terms. As of December 31, 2024 and 2023, the aforementioned refund liabilities amounted to NT$63,185,197 thousand and NT$37,847,605 thousand (classified under accrued expenses and other current liabilities), respectively.

22. INTEREST INCOME

	Years Ended December 31
	2024		2023
Interest income
Cash and cash equivalents		72,126,247		49,740,006
Financial assets at amortized cost
Financial assets at FVTOCI
		87,213,399		60,293,901

All values are in US Dollars.

23. FINANCE COSTS

	Years Ended December 31
	2024			2023
Interest expense
Corporate bonds		19,278,120			17,848,916
Lease liabilities
Bank loans
Others
Less: Capitalized interest under property, plant and equipment			)			)
		10,495,320			11,999,360

All values are in US Dollars.

52 -

Information about capitalized interest is as follows:

	Years Ended December 31
	2024	2023
Capitalization rate	1.20%-3.34%	1.08%-3.36%

24. OTHER GAINS AND LOSSES, NET

	Years Ended December 31
	2024			2023
Loss on disposal of financial assets, net
Investments in debt instruments at FVTOCI		(683,117	)		(473,897	)
Gain on disposal of investments accounted for using equity method, net
Gain (loss) on financial instruments at FVTPL, net
Mandatorily measured at FVTPL			)
Provision for expected credit loss for financial assets
Investments in debt instruments at FVTOCI			)			)
Financial assets at amortized cost			)			)
Other gains, net
		(8,379,393	)		6,961,579

All values are in US Dollars.

25. INCOME TAX

a. Income tax expense recognized in profit or loss

Income tax expense consisted of the following:

	Years Ended December 31
	2024			2023
Current income tax expense
Current tax expense recognized in the current year		238,079,019			136,931,127
Income tax adjustments for prior years			)
Other income tax adjustments

Deferred income tax expense
The origination and reversal of temporary differences
Income tax adjustments for prior years
Operating loss carryforward			)

Income tax expense recognized in profit or loss		233,406,876			141,403,807

All values are in US Dollars.

53 -

A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:

	Years Ended December 31
	2024			2023
Income before tax		1,405,838,635			979,171,324
Income tax expense at the statutory rate		280,827,733			197,906,699
Tax effect of adjusting items:
Adjusting items in determining taxable income			)			)
Additional income tax on unappropriated earnings
Unrecognized deductible temporary differences
Unrecognized operating loss carryforward
The origination and reversal of temporary differences
Operating loss carryforward			)
Income tax credits			)			)

Income tax adjustments for prior years			)
Other income tax adjustments
Income tax expense recognized in profit or loss		233,406,876			141,403,807

All values are in US Dollars.

For the years ended December 31, 2024 and 2023, the Company applied a tax rate of 20% for entities subject to the R.O.C. Income Tax Law; for other jurisdictions, taxes are calculated using the applicable tax rate for each individual jurisdiction.

b. Deferred income tax balance

The analysis of deferred income tax assets and liabilities was as follows:


Deferred income tax assets
Temporary differences
Depreciation	33,319,836		41,094,712
Refund liability
Unrealized exchange losses
Unrealized loss on inventories
Net defined benefit liability
Deferred compensation cost
Others
Operating loss carryforward
	65,943,300		64,175,787
Deferred income tax liabilities
Temporary differences
Subsidiary’s projected earnings distribution	(3,925,320	)	-
Others		)		)
	(3,988,482	)	(53,856	)

All values are in US Dollars.

54 -

	Year Ended December 31, 2024
				Recognized in
	Balance, Beginning of Year			Profit or Loss			Other Comprehensive Income			Effect of Exchange Rate Changes			Balance, End of Year
Deferred income tax assets
Temporary differences
Depreciation		41,094,712			(7,787,586	)		-			12,710			33,319,836
Refund liability
Unrealized exchange losses
Unrealized loss on inventories						)
Net defined benefit liability						)			)
Deferred compensation cost
Others									)
Operating loss carryforward												)
		64,175,787			1,747,416			(38,869	)		58,966			65,943,300
Deferred income tax liabilities
Temporary differences
Subsidiary’s projected earnings distribution		-			(3,925,320	)		-			-			(3,925,320	)
Others			)			)						)			)
		(53,856	)		(3,933,732	)		-			(894	)		(3,988,482	)

All values are in US Dollars.

	Year Ended December 31, 2023
				Recognized in
	Balance, Beginning of Year			Profit or Loss			Other Comprehensive Income			Effect of Exchange Rate Changes			Balance, End of Year
Deferred income tax assets
Temporary differences
Depreciation		45,299,310			(4,197,221	)		-			(7,377	)		41,094,712
Refund liability						)						)
Unrealized exchange losses
Unrealized loss on inventories												)
Net defined benefit liability						)
Deferred compensation cost												)
Others						)			)			)
		69,185,842			(5,112,812	)		124,646			(21,889	)		64,175,787
Deferred income tax liabilities
Temporary differences
Others		(1,031,383	)		976,821			-			706			(53,856	)

All values are in US Dollars.

c. The operating loss carryforward and deductible temporary differences for which no deferred income tax assets have been recognized

	December 31,<br><br>2024		December 31,<br><br>2023
Operating loss carryforward
No expiry date	$	11,896,888	$	639,831
Expire in succession after 2032	$	-	$	2,781,373
Deductible temporary differences	$	83,705,608	$	52,686,244

55 -

d. The information of unrecognized deferred income tax liabilities associated with investments

As of December 31, 2024 and 2023, the aggregate taxable temporary differences associated with investments in subsidiaries not recognized as deferred income tax liabilities amounted to NT$327,787,523 thousand and NT$254,182,901 thousand, respectively.

e. 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.

26. EARNINGS PER SHARE

	Years Ended December 31
	2024		2023
Basic EPS	$	45.25	$	32.34
Diluted EPS	$	45.25	$	32.34

EPS is computed as follows:

	Years Ended December 31
	2024		2023
Basic EPS
Net income available to common shareholders of the parent		1,173,267,703		838,497,664
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)
Basic EPS (in dollars)		45.25		32.34
Diluted EPS
Net income available to common shareholders of the parent		1,173,267,703		838,497,664
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)
Effects of all dilutive potential common shares (in thousands)
Weighted average number of common shares used in the computation of diluted EPS (in thousands)
Diluted EPS (in dollars)		45.25		32.34

All values are in US Dollars.

27. 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	-	-	-
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

56 -

Vesting conditions of the aforementioned arrangement are as follow:

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

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

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

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

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

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

TSMC’s TSR relative to the<br><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 year		-		-		2,110			694
Issuance of stocks		2,353		2,960		-			-
Canceled shares		-		-		(1,055	)		(347	)
Balance, end of year		2,353		2,960		1,055			347
Weighted-average fair value of RSAs (in dollars)	$	662.42	$	364.43	$	277.71		$	325.81

57 -

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 28 for the compensation costs of the RSAs recognized by TSMC.

b. Cash-settled share-based payment arrangements

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

	2023 Plan	2022 Plan	2021 Plan
Resolution Date of TSMC’s Board of Directors in its meeting	February 6, 2024	February 14, 2023	February 15, 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:

	Years Ended December 31
	2024						2023
	2023 Plan		2022 Plan		2021 Plan		2022 Plan		2021 Plan
Stock price at measurement date <br>(in dollars)		1,090		1,090		1,090		593		593
Expected price volatility
Residual life
Risk-free interest rate

All values are in US Dollars.

Refer to Note 28 for the compensation costs of the cash-settled share-based payment recognized by TSMC. As of December 31, 2024 and 2023, the liabilities under cash-settled share-based payment arrangement amounted to NT$455,728 thousand and NT$62,695 thousand, respectively.

28. ADDITIONAL INFORMATION OF EXPENSES BY NATURE

	Years Ended December 31
	2024		2023
a. Depreciation of property, plant and equipment and right-of-use assets
Recognized in cost of revenue		616,390,408		492,827,379
Recognized in operating expenses
Recognized in other operating income and expenses
		653,610,486		522,932,671

All values are in US Dollars.

58 -

	Years Ended December 31
	2024		2023
b. Amortization of intangible assets
Recognized in cost of revenue		6,342,310		6,538,107
Recognized in operating expenses
		9,186,149		9,258,250
c. Employee benefits expenses
Post-employment benefits
Defined contribution plans		5,932,269		5,365,458
Defined benefit plans

Share-based payments
Equity-settled
Cash-settled

Other employee benefits
		301,822,050		239,708,564
Employee benefits expense summarized by function
Recognized in cost of revenue		163,657,133		133,334,667
Recognized in operating expenses
		301,822,050		239,708,564

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:

	Years Ended December 31
	2024		2023
Profit sharing bonus to employees	$	70,296,283	$	50,090,533

TSMC’s profit sharing bonus to employees and compensation to directors for 2024, 2023 and 2022 had been approved by the Board of Directors of TSMC, as illustrated below:

	Years Ended December 31
	2024		2023		2022
Resolution Date of TSMC’s Board of	February 12,		February 6,		February 14,
Directors in its meeting	2025		2024		2023
Profit sharing bonus to employees	$	70,296,283	$	50,090,533	$	60,702,047
Compensation to directors	$	358,989	$	551,955	$	690,128

59 -

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2024, 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.

29. GOVERNMENT GRANTS

Subsidiaries such as TSMC Arizona, ESMC, JASM and TSMC Nanjing received subsidies from the governments of the United States, Germany, Japan and China, respectively, for local plant setup and operation, which were mainly used to subsidize the purchase costs of property, plant and equipment, as well as partial costs and expenses incurred from plant construction and production. For the years ended December 31, 2024 and 2023, TSMC received a total of NT$75,164,249 thousand and NT$47,545,898 thousand as government grants respectively.

The aforementioned subsidiaries have signed grant agreements with the local government. The agreements include the construction timelines and other conditions that must be complied with. TSMC Arizona is also eligible to apply for a 25% investment grant for qualified investments.

30. CASH FLOW INFORMATION

a. Non-cash transactions

	Years Ended December 31
	2024			2023
Additions of financial assets at FVTOCI		88,415,880			62,779,060
Discontinuation of significant influence from investment accounted for using the equity method						)
Conversion of convertible bonds into equity securities			)			)
Changes in accrued expenses and other current liabilities			)
Payments for acquisition of financial assets at FVTOCI		87,787,521			62,752,002
Disposal of financial assets at FVTOCI		67,560,138			35,346,897
Changes in other financial assets
Proceeds from disposal of financial assets at FVTOCI		67,684,556			35,698,575
Additions of property, plant and equipment		798,507,337			897,557,179
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		956,006,536			949,816,825

All values are in US Dollars.

60 -

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 December 31, 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		26,020,216			33,646,260			3,286,642		779,167		1,050,091,145

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 December 31, 2023
Hedging financial liabilities- bank loans		-		27,908,580			(618,180	)		-		-		27,290,400
Bonds payable
Long-term bank loans
Lease liabilities					)			)
Total		890,777,976		92,884,736			(62,187	)		2,002,728		755,607		986,358,860

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.

31. CAPITAL MANAGEMENT

The objective of the Company’s capital management is to maintain a capital structure that ensures liquidity and supports a solid investment grade credit rating. The capital structure includes both debt and equity. The Company adjusts its capital structure mainly through changes in the level of debt and adjustments of dividend payout to shareholders.

The Company’s capital management policy remained unchanged in 2024. TSMC’s current credit ratings are AA- from Standard & Poor’s and Aa3 from Moody’s, same as those as of December 31, 2023.

32. FINANCIAL INSTRUMENTS

a. Categories of financial instruments


Financial assets
FVTPL (Note 1)	15,407,542	14,342,093
FVTOCI (Note 2)
Hedging financial assets
Amortized cost (Note 3)
	2,942,675,881	2,023,905,526
Financial liabilities
FVTPL (Note 4)	466,539	121,412
Hedging financial liabilities
Amortized cost (Note 5)
	1,963,763,803	1,768,812,131

All values are in US Dollars.

61 -

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.

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 monetary assets and liabilities, net investments in foreign operations, and certain forecasted transactions. These hedges reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements on the assets and liabilities.

Based on a sensitivity analysis performed on the Company’s total monetary assets and liabilities for the years ended December 31, 2024 and 2023, a hypothetical adverse foreign currency exchange rate change of 10% would have decreased its net income by NT$1,906,338 thousand and NT$891,039 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.

62 -

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.

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$4,500,899 thousand and NT$3,841,994 thousand for the years ended December 31, 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$1,215,987 thousand and NT$1,073,397 thousand for the year ended December 31, 2024 and 2023, respectively, and the other comprehensive income would have decreased by NT$1,013,256 thousand and NT$954,925 thousand for the years ended December 31, 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 December 31, 2024 and 2023, the Company’s ten largest customers accounted for 93% and 91% 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.

63 -

The objective of the Company’s investment policy is to achieve a return that will allow the Company to preserve principal and support liquidity requirements. The policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer. The Company assesses whether there has been a significant increase in credit risk in the invested securities since initial recognition by reviewing changes in external credit ratings, financial market conditions and material information of the issuers.

The Company assesses the 12-month expected credit loss and lifetime expected credit loss based on the probability of default and loss given default provided by external credit rating agencies. The current credit risk assessment policies are as follows:

Category	Description	Basis for Recognizing 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 years ended December 31, 2024 and 2023, the expected credit loss increased NT$58,477 thousand and NT$35,751 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.


December 31, 2024
Non-derivative financial liabilities
Accounts payable (including related parties)	74,226,559	-	-	-	74,226,559
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

All values are in US Dollars.

(Continued)

64 -


Derivative financial instruments
Forward exchange contracts
Outflows	109,525,448		-	-	-	109,525,448
Inflows		)					)

	708,180,829		430,290,704	240,997,845	611,536,424	1,991,005,802
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

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
December 31, 2024
Lease liabilities	$	10,296,927	$	6,821,624	$	3,547,316	$	116,827	$	20,782,694
December 31, 2023
Lease liabilities	$	10,197,521	$	7,121,539	$	4,117,107	$	318,208	$	21,754,375

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

65 -

•Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The timing of transfers between levels within the fair value hierarchy is at the end of reporting period.

2) Fair value of financial instruments that are measured at fair value on a recurring basis

Fair value hierarchy

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

	December 31, 2024
	Level 1		Level 2		Level 3		Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Convertible preferred stocks		-		-		14,181,839		14,181,839
Mutual funds
Forward exchange contracts
Simple agreement for future equity
		-		207,700		15,199,842		15,407,542
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds		-		108,612,082		-		108,612,082
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
		25,488,691		172,626,550		7,822,884		205,938,125
Hedging financial assets
Fair value hedges
Interest rate futures contracts		10,959		-		-		10,959
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts		-		466,539		-		466,539

All values are in US Dollars.

	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

All values are in US Dollars.

(Continued)

66 -

	December 31, 2023
	Level 1		Level 2		Level 3		Total
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.

(Concluded)

Reconciliation of Level 3 fair value measurements of financial assets

The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTOCI and financial assets at FVTPL. Reconciliations for the years ended December 31, 2024 and 2023 are as follows:

	Years Ended December 31
	2024			2023
Balance, beginning of year		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 year		23,022,726			20,849,566

All values are in US Dollars.

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.

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•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 December 31, 2024 and 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$56,163 thousand and NT$52,704, 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 December 31, 2024, the Company mainly uses unobservable inputs, which include expected returns, discount rate of 8.6%, and discount for lack of marketability of 20%. On December 31, 2024, with other inputs remain equal, if discount rate increases by 1%, the fair value will decrease by NT$1,606,927 thousand; if discount for lack of marketability increases by 1%, the fair value will decrease by NT$140,819 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.

Fair value hierarchy

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

	December 31, 2024
	Carrying		Fair Value
	Amount		Level 1		Level 2		Total
Financial assets
Financial assets at amortized costs
Corporate bonds		171,980,179		-		172,518,474		172,518,474
Commercial paper
Government bonds/Agency bonds
		190,567,864		4,353,434		186,741,187		191,094,621
Financial liabilities
Financial liabilities at amortized costs
Bonds payable		983,752,385		-		900,344,663		900,344,663

All values are in US Dollars.

68 -

	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.

Valuation techniques and assumptions used in Level 2 fair value measurement

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

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

33. RELATED PARTY TRANSACTIONS

Intercompany balances and transactions between TSMC and its subsidiaries, which are related parties of TSMC, have been eliminated upon consolidation; therefore, those items are not disclosed in this note. The following is a summary of significant transactions between the Company and other related parties:

a. Related party name and categories

Related Party Name	Related Party Categories
GUC and its subsidiaries (GUC)	Associates
VIS and its subsidiaries (VIS)	Associates
SSMC	Associates
Xintec	Associates
TSMC Charity Foundation	Other related parties
TSMC Education and Culture Foundation	Other related parties

b. Net revenue

		Years Ended December 31
		2024		2023
Item	Related Party Categories
Net revenue from sale of goods	Associates	$	15,034,149	$	13,406,049

69 -

c. Purchases

	Years Ended December 31
	2024		2023
Related Party Categories
Associates	$	4,619,621	$	4,562,206

d. Receivables from related parties


Item	Related Party Name
Receivables from related	VIS	626,638	-
parties	GUC
	Others
		1,404,473	624,451
Other receivables from related	SSMC	251	58,093
parties	VIS
		251	71,871

All values are in US Dollars.

e. Payables to related parties


Item	Related Party Name
Payables to related parties	Xintec	987,992	1,020,226
	SSMC
	Others
		1,426,001	1,566,300

All values are in US Dollars.

f. Accrued expenses and other current liabilities

		December 31,<br><br>2024		December 31,<br><br>2023
Item	Related Party Categories
Temporary receipts	Associates	$	4,271,492	$	307,470

g. Others

		Years Ended December 31
		2024		2023
Item	Related Party Categories
Manufacturing expenses	Associates	$	5,232,777	$	5,043,545

70 -

The sales prices and payment terms to related parties were not significantly different from those of sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements.

The Company leased factory and office from associates. The lease terms and prices were both determined in accordance with mutual agreements. The rental expenses were paid to associates monthly; the related expenses were both classified under manufacturing expenses.

h. Compensation of key management personnel

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

	Years Ended December 31
	2024		2023
Short-term employee benefits		4,447,508		3,492,258
Post-employment benefits
Share-based payments
		5,808,770		4,021,936

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.

34. PLEDGED ASSETS

The Company provided certificate of deposits recorded in other financial assets as collateral mainly for building lease agreements. As of December 31, 2024 and 2023, the aforementioned other financial assets amounted to NT$132,077 thousand and NT$124,302 thousand, respectively.

35. 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

71 -

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 December 31, 2024 and 2023 were NT$489,882 thousand and NT$433,994 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 December 31, 2024 and 2023, the aforementioned guarantee amounted to NT$10,315,609 thousand and NT$8,012,973 thousand, respectively.

36. 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.

In January 2025, several earthquakes struck Taiwan. The resulting damage was mostly to inventories, machinery and equipment. Based on a preliminary assessment, the Company estimated related earthquake losses to be approximately NT$5.3 billion, net of insurance claim, and will recognize it in the first quarter of 2025.

37. 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:


December 31, 2024
Financial assets
Monetary items
	18,726,635	32.768		613,634,377
		34.102
		1.041	(Note2)
		0.2092

All values are in Euros.

(Continued)

72 -


Financial liabilities
Monetary items
	16,255,804	32.768		532,670,186
		34.102
		1.041	(Note 2)
		0.2092
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

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 years ended December 31, 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.

38. ADDITIONAL DISCLOSURES

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

a. Financings provided: See Table 1 attached;

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

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

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

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

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

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

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

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

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

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

l. Information on investment in mainland China

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

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

m. Information of major shareholders

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

39. OPERATING SEGMENTS INFORMATION

a. Operating segments, segment revenue and operating results

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

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

74 -

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

1) Geographic information

	December 31,		December 31,
Noncurrent Assets	2024		2023
Taiwan		2,613,112,149		2,525,608,435
United States
Japan
China
Europe, the Middle East and Africa
Others
		3,383,106,345		3,137,675,981

All values are in US Dollars.

Noncurrent assets include property, plant and equipment, right-of-use assets, intangible assets and other noncurrent assets.

2) Major customers representing at least 10% of net revenue

	Years Ended December 31
	2024				2023
	Amount		%		Amount		%
Customer A		624,345,477		22		546,550,925		25
Customer B				12				NA
Customer C				NA				11

All values are in US Dollars.

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

75 -

TABLE 1

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

FINANCINGS PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
No.			Counterparty	Financial Statement Account		Related Party		Maximum Balance for the Period (Foreign Currencies in Thousands)(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 Arizona	Other receivables from related parties		Yes									-		-	The need for short-term financing		-	Capacity installation and working capital		-	-		-		428,854,517		857,709,033
	(US				3,000,000		)
1			TSMC Nanjing	Other receivables from related parties		Yes						41,685,000				26,939,400	1.30%-1.50%	The need for short-term and long-term financing			Operating capital			-
	(RMB				8,800,000		)&		6,000,000		(RMB		6,000,000
	(US				450,000		)		450,000
2			TSMC Washington	Other receivables from related parties		Yes						1,966,080				983,040	-	The need for short-term financing			Operating capital			-
	(US				60,000		)		60,000		(US		30,000

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 and the aggregate amount of lending 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.

76 -

TABLE 2

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 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 for the Period (Foreign Currencies in Thousands)(Note 3)		Ending Balance (Foreign Currencies in Thousands)(Note 3)		Amount Actually Drawn(US in Thousands)		Amount of Endorsement/ Guarantee Collateralized by Properties		Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements		Maximum Endorsement/ Guarantee Amount Allowable(Notes 1 and 2)		Guarantee<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		1,715,418,067		2,726,733		2,726,733		2,726,733		-		0.06%		1,715,418,067	Yes	No	No
							(US$	83,213	(US$	83,213	(US$	83,213
				TSMC Global	Subsidiary		1,715,418,067		245,760,000		245,760,000		245,760,000		-		5.73%		1,715,418,067	Yes	No	No
							(US$	7,500,000	(US$	7,500,000	(US$	7,500,000
				TSMC Arizona	Subsidiary		1,715,418,067		470,136,259		470,136,259		312,358,339		-		10.96%		1,715,418,067	Yes	No	No
							(US$	14,347,420	(US$	14,347,420	(US$	9,532,420
1		TSMC Japan		TSMC JDC	The same parent company				276,144		276,144		276,144				0.01%			No	No	No
							(JPY	1,320,000	(JPY	1,320,000	(JPY	1,320,000

All values are in US Dollars.

Note 1: TSMC's individual endorsement/guarantee limits for TSMC North America, TSMC Global, and TSMC Arizona, as well as the total external endorsement/guarantee limits for TSMC and its subsidiaries, shall not exceed forty percent (40%) of TSMC’s net worth.

Note 2: The total amount of the endorsement/guarantee provided by TSMC Japan to TSMC JDC and the total amount of the endorsement/guarantee provided by TSMC Japan 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.

77 -

TABLE 3

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

MARKETABLE SECURITIES HELD

DECEMBER 31, 2024<br><br>(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	December 31, 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		505,114				10		505,114
		Shin-Etsu Handotai Taiwan Co., Ltd.	-	〃			10,500						7
		Global Investment Holding Inc.	-	〃			10,442						6
		Commercial paper
		Cathay Financial Holding Co., Ltd.	-	Financial assets at amortized cost			924						N/A
		Formosa Chemicals & Fibre Corporation	-	〃			250						N/A
		China Steel Corporation	-	〃			120						N/A
		Formosa Plastics Corporation	-	〃			100						N/A
		Nan Ya Plastics Corporation	-	〃			35						N/A
TSMC Partners		Fund
		Carbon Nature SCSp	-	Financial assets at fair value through Profit or Loss			-	US			11,413		18	US		11,413
		Matter Venture Partners Fund I, L.P.	-	〃			-	US			8,088		7	US		8,088
		Imprint Nature-Based Opportunities Offshore SCSp	-	〃			-	US			7,567		20	US		7,567
		Non-publicly traded equity investments
		Shanghai Walden Venture Capital Partnership (Limited Partnership)	-	Financial assets at fair value through other comprehensive income			-	US			20,014		6	US		20,014
		Walden Technology Ventures Investments II, L.P.	-	〃			-	US			13,512		9	US		13,512
		Walden Technology Ventures Investments III, L.P.	-	〃			-	US			11,688		4	US		11,688
		Tela Innovations	-	〃			6,942	US			-		22	US		-
		Publicly traded stocks
		ARM Holdings plc	-	Financial assets at fair value through other comprehensive income			1,111	US			137,026		-	US		137,026
		Movella Holdings Inc.	-	〃			3,095	US			62		6	US		62
TSMC Global		Corporate bond
		Bank of America Corporation	-	Financial assets at fair value through other comprehensive income			-	US			95,674		N/A	US		95,674
		Morgan Stanley	-	〃			-	US			87,312		N/A	US		87,312
		Wells Fargo & Company	-	〃			-	US			74,617		N/A	US		74,617
		The Goldman Sachs Group, Inc.	-	〃			-	US			73,642		N/A	US		73,642
		JPMorgan Chase & Co.	-	〃			-	US			72,101		N/A	US		72,101
		Citigroup Inc.	-	〃			-	US			56,810		N/A	US		56,810
		HSBC Holdings plc	-	〃			-	US			52,845		N/A	US		52,845
		Hyundai Capital America	-	〃			-	US			39,105		N/A	US		39,105
		BNP Paribas SA	-	〃			-	US			38,517		N/A	US		38,517
		Lloyds Banking Group plc	-	〃			-	US			36,440		N/A	US		36,440
		Sumitomo Mitsui Trust Bank, Limited	-	〃			-	US			36,329		N/A	US		36,329
		Barclays PLC	-	〃			-	US			35,715		N/A	US		35,715
		Nationwide Building Society	-	〃			-	US			35,644		N/A	US		35,644

All values are in US Dollars.

(Continued)

78 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		NatWest Group plc	-	Financial assets at fair value through other comprehensive income		-	US	34,193		N/A	US$	34,193
		Principal Life Global Funding II	-	〃		-	US	33,881		N/A	US$	33,881
		American Express Company	-	〃		-	US	31,036		N/A	US$	31,036
		Banco Santander, S.A.	-	〃		-	US	30,804		N/A	US$	30,804
		BPCE SA	-	〃		-	US	30,045		N/A	US$	30,045
		Toyota Motor Credit Corporation	-	〃		-	US	29,997		N/A	US$	29,997
		Credit Agricole SA London Branch	-	〃		-	US	28,366		N/A	US$	28,366
		Sumitomo Mitsui Financial Group, Inc.	-	〃		-	US	26,118		N/A	US$	26,118
		AIG Global Funding	-	〃		-	US	25,521		N/A	US$	25,521
		Athene Global Funding	-	〃		-	US	24,758		N/A	US$	24,758
		COÖPERATIEVE RABOBANK U.A., NEW YORK BRANCH	-	〃		-	US	24,228		N/A	US$	24,228
		Deutsche Bank AG - New York Branch	-	〃		-	US	23,782		N/A	US$	23,782
		The Toronto-Dominion Bank	-	〃		-	US	23,563		N/A	US$	23,563
		Penske Truck Leasing Co., L.P.	-	〃		-	US	23,519		N/A	US$	23,519
		Volkswagen Group of America Finance, LLC	-	〃		-	US	22,284		N/A	US$	22,284
		Banque Fédérative du Crédit Mutuel	-	〃		-	US	21,960		N/A	US$	21,960
		Equitable Financial Life Global Funding	-	〃		-	US	21,840		N/A	US$	21,840
		Glencore Funding LLC	-	〃		-	US	21,086		N/A	US$	21,086
		Royal Bank of Canada	-	〃		-	US	20,863		N/A	US$	20,863
		Capital One Financial Corporation	-	〃		-	US	20,724		N/A	US$	20,724
		General Motors Financial Company, Inc.	-	〃		-	US	20,625		N/A	US$	20,625
		The Bank of Nova Scotia	-	〃		-	US	20,432		N/A	US$	20,432
		Bunge Limited Finance Corp.	-	〃		-	US	20,202		N/A	US$	20,202
		Danske Bank A/S	-	〃		-	US	20,157		N/A	US$	20,157
		RGA Global Funding	-	〃		-	US	19,988		N/A	US$	19,988
		ABN AMRO Bank N.V.	-	〃		-	US	19,540		N/A	US$	19,540
		Daimler Trucks Finance North America LLC	-	〃		-	US	19,288		N/A	US$	19,288
		Bank of Montreal	-	〃		-	US	18,228		N/A	US$	18,228
		UnitedHealth Group Incorporated	-	〃		-	US	18,151		N/A	US$	18,151
		Mitsubishi UFJ Financial Group, Inc.	-	〃		-	US	18,083		N/A	US$	18,083
		Guardian Life Global Funding	-	〃		-	US	17,817		N/A	US$	17,817
		Metropolitan Life Global Funding I	-	〃		-	US	17,734		N/A	US$	17,734
		Fédération des caisses Desjardins du Québec	-	〃		-	US	17,415		N/A	US$	17,415
		Enel Finance International N.V.	-	〃		-	US	17,065		N/A	US$	17,065
		NatWest Markets Plc	-	〃		-	US	16,386		N/A	US$	16,386
		Coöperatieve Rabobank U.A.	-	〃		-	US	16,173		N/A	US$	16,173
		Mizuho Financial Group, Inc.	-	〃		-	US	15,789		N/A	US$	15,789
		NTT Finance Corporation	-	〃		-	US	15,768		N/A	US$	15,768
		CNO Global Funding	-	〃		-	US	15,565		N/A	US$	15,565
		Marsh & McLennan Companies, Inc.	-	〃		-	US	15,564		N/A	US$	15,564
		Ryder System, Inc.	-	〃		-	US	15,551		N/A	US$	15,551
		UBS Group AG	-	〃		-	US	15,481		N/A	US$	15,481
		U.S. Bancorp.	-	〃		-	US	15,440		N/A	US$	15,440
		Roper Technologies, Inc.	-	〃		-	US	15,407		N/A	US$	15,407
		Northwestern Mutual Global Funding	-	〃		-	US	15,298		N/A	US$	15,298
		New York Life Global Funding	-	〃		-	US	14,993		N/A	US$	14,993
		NextEra Energy Capital Holdings, Inc.	-	〃		-	US	14,664		N/A	US$	14,664
		BMW US Capital, LLC	-	〃		-	US	14,519		N/A	US$	14,519
		T-Mobile USA, Inc.	-	〃		-	US	14,433		N/A	US$	14,433
		Protective Life Global Funding	-	〃		-	US	14,389		N/A	US$	14,389
		Philip Morris International Inc.	-	〃		-	US	14,276		N/A	US$	14,276
		Quest Diagnostics Incorporated	-	〃		-	US	14,196		N/A	US$	14,196

All values are in US Dollars.

(Continued)

79 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		Santander Holdings USA, Inc.	-	Financial assets at fair value through other comprehensive income		-	US	14,143		N/A	US$	14,143
		AerCap Ireland Capital Designated Activity Company	-	〃		-	US	13,986		N/A	US$	13,986
		National Securities Clearing Corporation	-	〃		-	US	13,895		N/A	US$	13,895
		SMBC Aviation Capital Finance DAC	-	〃		-	US	13,873		N/A	US$	13,873
		Oracle Corporation	-	〃		-	US	13,824		N/A	US$	13,824
		Macquarie Bank Limited	-	〃		-	US	13,650		N/A	US$	13,650
		ING Groep N.V.	-	〃		-	US	13,616		N/A	US$	13,616
		Nomura Holdings, Inc.	-	〃		-	US	13,356		N/A	US$	13,356
		Truist Financial Corporation	-	〃		-	US	13,328		N/A	US$	13,328
		Standard Chartered PLC	-	〃		-	US	13,218		N/A	US$	13,218
		Mercedes-Benz Finance North America LLC	-	〃		-	US	13,022		N/A	US$	13,022
		Southern California Edison Company	-	〃		-	US	12,981		N/A	US$	12,981
		Amphenol Corporation	-	〃		-	US	12,833		N/A	US$	12,833
		American Honda Finance Corporation	-	〃		-	US	12,774		N/A	US$	12,774
		Jackson National Life Global Funding	-	〃		-	US	12,563		N/A	US$	12,563
		ONEOK, Inc.	-	〃		-	US	12,550		N/A	US$	12,550
		The Bank of New York Mellon Corporation	-	〃		-	US	12,428		N/A	US$	12,428
		BAE Systems plc	-	〃		-	US	12,425		N/A	US$	12,425
		Equifax Inc.	-	〃		-	US	12,106		N/A	US$	12,106
		Amazon.com, Inc.	-	〃		-	US	11,676		N/A	US$	11,676
		Bristol-Myers Squibb Company	-	〃		-	US	11,585		N/A	US$	11,585
		Swedbank AB (publ)	-	〃		-	US	11,541		N/A	US$	11,541
		AT&T Inc.	-	〃		-	US	11,326		N/A	US$	11,326
		Elevance Health, Inc.	-	〃		-	US	11,154		N/A	US$	11,154
		Prologis Targeted U.S. Logistics Fund L.P.	-	〃		-	US	11,127		N/A	US$	11,127
		MassMutual Global Funding II	-	〃		-	US	10,851		N/A	US$	10,851
		S&P Global Inc.	-	〃		-	US	10,723		N/A	US$	10,723
		Apple Inc.	-	〃		-	US	10,721		N/A	US$	10,721
		DTE Energy Company	-	〃		-	US	10,651		N/A	US$	10,651
		National Rural Utilities Cooperative Finance Corporation	-	〃		-	US	10,402		N/A	US$	10,402
		Svenska Handelsbanken AB (publ)	-	〃		-	US	10,026		N/A	US$	10,026
		Canadian Imperial Bank of Commerce	-	〃		-	US	10,020		N/A	US$	10,020
		Nordea Bank Abp	-	〃		-	US	9,873		N/A	US$	9,873
		Hewlett Packard Enterprise Company	-	〃		-	US	9,766		N/A	US$	9,766
		Enbridge Inc.	-	〃		-	US	9,712		N/A	US$	9,712
		Mutual Of Omaha Companies Global Funding	-	〃		-	US	9,552		N/A	US$	9,552
		Citibank, N.A.	-	〃		-	US	9,495		N/A	US$	9,495
		LSEG US Fin Corp.	-	〃		-	US	9,091		N/A	US$	9,091
		Realty Income Corporation	-	〃		-	US	9,079		N/A	US$	9,079
		Florida Power & Light Company	-	〃		-	US	9,072		N/A	US$	9,072
		Public Service Enterprise Group Incorporated	-	〃		-	US	9,018		N/A	US$	9,018
		Accenture Capital Inc.	-	〃		-	US	8,979		N/A	US$	8,979
		Amgen Inc.	-	〃		-	US	8,890		N/A	US$	8,890
		Equinor ASA	-	〃		-	US	8,823		N/A	US$	8,823
		Morgan Stanley Bank, N.A.	-	〃		-	US	8,542		N/A	US$	8,542
		Haleon US Capital LLC	-	〃		-	US	8,541		N/A	US$	8,541
		Pioneer Natural Resources Company	-	〃		-	US	8,457		N/A	US$	8,457
		Pfizer Investment Enterprises Pte. Ltd.	-	〃		-	US	8,329		N/A	US$	8,329
		Intel Corporation	-	〃		-	US	8,311		N/A	US$	8,311
		Goldman Sachs Bank USA	-	〃		-	US	8,272		N/A	US$	8,272
		KfW	-	〃		-	US	8,145		N/A	US$	8,145
		Lowe's Companies, Inc.	-	〃		-	US	8,137		N/A	US$	8,137

All values are in US Dollars.

(Continued)

80 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		Kimco Realty Corporation	-	Financial assets at fair value through other comprehensive income		-	US	8,060		N/A	US$	8,060
		Aon North America, Inc.	-	〃		-	US	8,039		N/A	US$	8,039
		ConocoPhillips Company	-	〃		-	US	8,021		N/A	US$	8,021
		Tampa Electric Company	-	〃		-	US	8,000		N/A	US$	8,000
		DNB Bank ASA	-	〃		-	US	7,986		N/A	US$	7,986
		Santander UK Group Holdings plc	-	〃		-	US	7,928		N/A	US$	7,928
		META PLATFORMS INC	-	〃		-	US	7,908		N/A	US$	7,908
		Constellation Energy Generation, LLC	-	〃		-	US	7,831		N/A	US$	7,831
		Macquarie Group Limited	-	〃		-	US	7,831		N/A	US$	7,831
		Intuit Inc.	-	〃		-	US	7,658		N/A	US$	7,658
		Roche Holdings, Inc.	-	〃		-	US	7,631		N/A	US$	7,631
		ERAC USA Finance LLC	-	〃		-	US	7,574		N/A	US$	7,574
		Chevron Corporation	-	〃		-	US	7,262		N/A	US$	7,262
		Johnson & Johnson	-	〃		-	US	7,130		N/A	US$	7,130
		Pacific Gas and Electric Company	-	〃		-	US	7,087		N/A	US$	7,087
		Bank of Ireland Group plc	-	〃		-	US	7,066		N/A	US$	7,066
		McKesson Corporation	-	〃		-	US	7,027		N/A	US$	7,027
		Intercontinental Exchange, Inc.	-	〃		-	US	7,008		N/A	US$	7,008
		KBC Group NV	-	〃		-	US	6,986		N/A	US$	6,986
		AstraZeneca Finance LLC	-	〃		-	US	6,963		N/A	US$	6,963
		Great-West Lifeco U.S. Finance 2020, Lp	-	〃		-	US	6,916		N/A	US$	6,916
		Cox Communications, Inc.	-	〃		-	US	6,915		N/A	US$	6,915
		Exelon Corporation	-	〃		-	US	6,885		N/A	US$	6,885
		Keurig Dr Pepper Inc.	-	〃		-	US	6,880		N/A	US$	6,880
		Consumers Energy Company	-	〃		-	US	6,792		N/A	US$	6,792
		The East Ohio Gas Company	-	〃		-	US	6,767		N/A	US$	6,767
		Pacific Life Global Funding II	-	〃		-	US	6,634		N/A	US$	6,634
		Fidelity National Information Services, Inc.	-	〃		-	US	6,632		N/A	US$	6,632
		The Cigna Group	-	〃		-	US	6,595		N/A	US$	6,595
		The Charles Schwab Corporation	-	〃		-	US	6,586		N/A	US$	6,586
		Health Care Service Corporation, a Mutual Legal Reserve Company	-	〃		-	US	6,345		N/A	US$	6,345
		Take-Two Interactive Software, Inc.	-	〃		-	US	6,273		N/A	US$	6,273
		Fiserv, Inc.	-	〃		-	US	6,242		N/A	US$	6,242
		WEC Energy Group, Inc.	-	〃		-	US	6,224		N/A	US$	6,224
		Empower Finance 2020, LP	-	〃		-	US	6,176		N/A	US$	6,176
		Eaton Corporation	-	〃		-	US	6,162		N/A	US$	6,162
		Schlumberger Holdings Corporation	-	〃		-	US	5,909		N/A	US$	5,909
		NBN Co Limited	-	〃		-	US	5,817		N/A	US$	5,817
		Scentre Group Trust 1	-	〃		-	US	5,811		N/A	US$	5,811
		NiSource Inc.	-	〃		-	US	5,795		N/A	US$	5,795
		HEICO Corporation	-	〃		-	US	5,773		N/A	US$	5,773
		Lockheed Martin Corporation	-	〃		-	US	5,764		N/A	US$	5,764
		National Bank of Canada	-	〃		-	US	5,749		N/A	US$	5,749
		Thermo Fisher Scientific Inc.	-	〃		-	US	5,737		N/A	US$	5,737
		ASB Bank Limited	-	〃		-	US	5,666		N/A	US$	5,666
		The Williams Companies, Inc.	-	〃		-	US	5,613		N/A	US$	5,613
		Ingersoll Rand Inc.	-	〃		-	US	5,594		N/A	US$	5,594
		Cencora, Inc.	-	〃		-	US	5,546		N/A	US$	5,546
		Marriott International, Inc.	-	〃		-	US	5,525		N/A	US$	5,525
		RTX Corporation	-	〃		-	US	5,491		N/A	US$	5,491
		MPLX LP	-	〃		-	US	5,401		N/A	US$	5,401

All values are in US Dollars.

(Continued)

81 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		Starbucks Corporation	-	Financial assets at fair value through other comprehensive income		-	US	5,351		N/A	US$	5,351
		Stryker Corporation	-	〃		-	US	5,329		N/A	US$	5,329
		Sydney Airport Finance Company Pty Ltd	-	〃		-	US	5,253		N/A	US$	5,253
		AstraZeneca PLC	-	〃		-	US	5,135		N/A	US$	5,135
		Virginia Electric and Power Company	-	〃		-	US	5,110		N/A	US$	5,110
		Newmont Corporation	-	〃		-	US	5,099		N/A	US$	5,099
		CGI Inc.	-	〃		-	US	5,055		N/A	US$	5,055
		John Deere Capital Corporation	-	〃		-	US	5,033		N/A	US$	5,033
		Merck & Co., Inc.	-	〃		-	US	5,033		N/A	US$	5,033
		Smith & Nephew plc	-	〃		-	US	5,033		N/A	US$	5,033
		Southwest Airlines Co.	-	〃		-	US	5,017		N/A	US$	5,017
		NATIONAL SECURITIES CLEARING CORP	-	〃		-	US	5,007		N/A	US$	5,007
		Mizuho Markets Cayman LP	-	〃		-	US	5,006		N/A	US$	5,006
		Bank of New Zealand	-	〃		-	US	4,979		N/A	US$	4,979
		BorgWarner Inc.	-	〃		-	US	4,975		N/A	US$	4,975
		Alabama Power Company	-	〃		-	US	4,973		N/A	US$	4,973
		AbbVie Inc.	-	〃		-	US	4,965		N/A	US$	4,965
		Brookfield Finance Inc.	-	〃		-	US	4,868		N/A	US$	4,868
		Ameren Corporation	-	〃		-	US	4,865		N/A	US$	4,865
		ANZ New Zealand (Int'l) Limited	-	〃		-	US	4,844		N/A	US$	4,844
		ONE Gas, Inc.	-	〃		-	US	4,817		N/A	US$	4,817
		HP Inc.	-	〃		-	US	4,768		N/A	US$	4,768
		Deutsche Telekom International Finance B.V.	-	〃		-	US	4,743		N/A	US$	4,743
		National Australia Bank Limited, New York Branch	-	〃		-	US	4,680		N/A	US$	4,680
		Société Générale Société anonyme	-	〃		-	US	4,618		N/A	US$	4,618
		Fifth Third Bancorp	-	〃		-	US	4,601		N/A	US$	4,601
		Georgia Power Company	-	〃		-	US	4,585		N/A	US$	4,585
		F&G Global Funding	-	〃		-	US	4,572		N/A	US$	4,572
		GA Global Funding Trust	-	〃		-	US	4,506		N/A	US$	4,506
		FirstEnergy Transmission, LLC	-	〃		-	US	4,502		N/A	US$	4,502
		ITC Holdings Corp.	-	〃		-	US	4,395		N/A	US$	4,395
		AutoZone, Inc.	-	〃		-	US	4,354		N/A	US$	4,354
		State Street Corporation	-	〃		-	US	4,324		N/A	US$	4,324
		Verizon Communications Inc.	-	〃		-	US	4,171		N/A	US$	4,171
		Labcorp Holdings Inc.	-	〃		-	US	4,129		N/A	US$	4,129
		AvalonBay Communities, Inc.	-	〃		-	US	4,056		N/A	US$	4,056
		Aptiv PLC	-	〃		-	US	4,055		N/A	US$	4,055
		Workday, Inc.	-	〃		-	US	4,042		N/A	US$	4,042
		Korea Electric Power Corporation	-	〃		-	US	4,023		N/A	US$	4,023
		Lincoln National Corporation	-	〃		-	US	4,008		N/A	US$	4,008
		State Street Bank and Trust Company	-	〃		-	US	3,996		N/A	US$	3,996
		Public Storage	-	〃		-	US	3,979		N/A	US$	3,979
		Mid-Atlantic Interstate Transmission, LLC	-	〃		-	US	3,970		N/A	US$	3,970
		Piedmont Natural Gas Company, Inc.	-	〃		-	US	3,962		N/A	US$	3,962
		Schlumberger Investment SA	-	〃		-	US	3,961		N/A	US$	3,961
		B.A.T. International Finance p.l.c.	-	〃		-	US	3,930		N/A	US$	3,930
		Novartis Capital Corporation	-	〃		-	US	3,894		N/A	US$	3,894
		GAIF Bond Issuer Pty Limited	-	〃		-	US	3,890		N/A	US$	3,890
		Alliant Energy Finance, LLC	-	〃		-	US	3,880		N/A	US$	3,880
		L3Harris Technologies, Inc.	-	〃		-	US	3,868		N/A	US$	3,868
		Duke Energy Carolinas, LLC	-	〃		-	US	3,844		N/A	US$	3,844
		Banco Bilbao Vizcaya Argentaria, S.A.	-	〃		-	US	3,837		N/A	US$	3,837

All values are in US Dollars.

(Continued)

82 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		Fortinet, Inc.	-	Financial assets at fair value through other comprehensive income		-	US	3,824		N/A	US$	3,824
		CNH Industrial Capital LLC	-	〃		-	US	3,814		N/A	US$	3,814
		Eli Lilly and Company	-	〃		-	US	3,755		N/A	US$	3,755
		Alimentation Couche-Tard Inc.	-	〃		-	US	3,700		N/A	US$	3,700
		Norsk Hydro ASA	-	〃		-	US	3,595		N/A	US$	3,595
		Parker-Hannifin Corporation	-	〃		-	US	3,565		N/A	US$	3,565
		Nutrien Ltd.	-	〃		-	US	3,544		N/A	US$	3,544
		CenterPoint Energy Resources Corp.	-	〃		-	US	3,490		N/A	US$	3,490
		Advocate Health & Hospitals Corporation	-	〃		-	US	3,482		N/A	US$	3,482
		Burlington Northern Santa Fe, LLC	-	〃		-	US	3,468		N/A	US$	3,468
		Magna International Inc.	-	〃		-	US	3,460		N/A	US$	3,460
		Kellanova	-	〃		-	US	3,444		N/A	US$	3,444
		Pfizer Inc.	-	〃		-	US	3,416		N/A	US$	3,416
		Sempra	-	〃		-	US	3,414		N/A	US$	3,414
		Meta Platforms, Inc.	-	〃		-	US	3,390		N/A	US$	3,390
		Comcast Corporation	-	〃		-	US	3,354		N/A	US$	3,354
		Chubb INA Holdings LLC	-	〃		-	US	3,343		N/A	US$	3,343
		Cisco Systems, Inc.	-	〃		-	US	3,317		N/A	US$	3,317
		DuPont de Nemours, Inc.	-	〃		-	US	3,181		N/A	US$	3,181
		Wisconsin Electric Power Company	-	〃		-	US	3,175		N/A	US$	3,175
		Corebridge Financial, Inc.	-	〃		-	US	3,160		N/A	US$	3,160
		Republic Services, Inc.	-	〃		-	US	3,158		N/A	US$	3,158
		UBS AG, London Branch	-	〃		-	US	3,145		N/A	US$	3,145
		Anheuser-Busch Companies, LLC	-	〃		-	US	3,120		N/A	US$	3,120
		Microchip Technology Incorporated	-	〃		-	US	3,120		N/A	US$	3,120
		Nestlé Holdings, Inc.	-	〃		-	US	3,100		N/A	US$	3,100
		Atmos Energy Corporation	-	〃		-	US	3,074		N/A	US$	3,074
		Tyco Electronics Group S.A.	-	〃		-	US	3,070		N/A	US$	3,070
		Duke Energy Corporation	-	〃		-	US	3,068		N/A	US$	3,068
		Met Tower Global Funding	-	〃		-	US	3,043		N/A	US$	3,043
		Archer-Daniels-Midland Company	-	〃		-	US	2,989		N/A	US$	2,989
		Caterpillar Financial Services Corporation	-	〃		-	US	2,988		N/A	US$	2,988
		The PNC Financial Services Group, Inc.	-	〃		-	US	2,979		N/A	US$	2,979
		Southern California Gas Company	-	〃		-	US	2,975		N/A	US$	2,975
		Citizens Bank, National Association	-	〃		-	US	2,971		N/A	US$	2,971
		Medtronic Global Holdings S.C.A.	-	〃		-	US	2,965		N/A	US$	2,965
		ORIX Corporation	-	〃		-	US	2,954		N/A	US$	2,954
		Prologis, L.P.	-	〃		-	US	2,950		N/A	US$	2,950
		Xcel Energy Inc.	-	〃		-	US	2,950		N/A	US$	2,950
		Ameriprise Financial, Inc.	-	〃		-	US	2,893		N/A	US$	2,893
		Rochester Gas and Electric Corporation	-	〃		-	US	2,869		N/A	US$	2,869
		BHP Billiton Finance (USA) Limited	-	〃		-	US	2,832		N/A	US$	2,832
		Rio Tinto Finance (USA) Limited	-	〃		-	US	2,832		N/A	US$	2,832
		CSL Finance plc	-	〃		-	US	2,827		N/A	US$	2,827
		The Brooklyn Union Gas Company	-	〃		-	US	2,756		N/A	US$	2,756
		Simon Property Group, L.P.	-	〃		-	US	2,748		N/A	US$	2,748
		Ventas Realty, Limited Partnership	-	〃		-	US	2,747		N/A	US$	2,747
		Oncor Electric Delivery Company LLC	-	〃		-	US	2,716		N/A	US$	2,716
		Invitation Homes Operating Partnership LP	-	〃		-	US	2,693		N/A	US$	2,693
		Chevron Phillips Chemical Company LLC	-	〃		-	US	2,683		N/A	US$	2,683
		Bayer US Finance LLC	-	〃		-	US	2,650		N/A	US$	2,650
		Masco Corporation	-	〃		-	US	2,647		N/A	US$	2,647

All values are in US Dollars.

(Continued)

83 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		Pennsylvania Electric Company	-	Financial assets at fair value through other comprehensive income		-	US	2,611		N/A	US$	2,611
		The Southern Company	-	〃		-	US	2,606		N/A	US$	2,606
		O'Reilly Automotive, Inc.	-	〃		-	US	2,595		N/A	US$	2,595
		Transcontinental Gas Pipe Line Company, LLC	-	〃		-	US	2,595		N/A	US$	2,595
		Air Products and Chemicals, Inc.	-	〃		-	US	2,585		N/A	US$	2,585
		American Electric Power Company, Inc.	-	〃		-	US	2,539		N/A	US$	2,539
		Siemens Financieringsmaatschappij N.V.	-	〃		-	US	2,519		N/A	US$	2,519
		Kraton Corporation	-	〃		-	US	2,509		N/A	US$	2,509
		CRH America, Inc.	-	〃		-	US	2,442		N/A	US$	2,442
		W. P. Carey Inc.	-	〃		-	US	2,423		N/A	US$	2,423
		Entergy Texas, Inc.	-	〃		-	US	2,422		N/A	US$	2,422
		Westpac Banking Corporation	-	〃		-	US	2,394		N/A	US$	2,394
		NBN CO LTD	-	〃		-	US	2,373		N/A	US$	2,373
		Yara International ASA	-	〃		-	US	2,360		N/A	US$	2,360
		CVS Health Corporation	-	〃		-	US	2,354		N/A	US$	2,354
		Boston Gas Company	-	〃		-	US	2,320		N/A	US$	2,320
		Cardinal Health, Inc.	-	〃		-	US	2,296		N/A	US$	2,296
		GE HealthCare Technologies Inc.	-	〃		-	US	2,253		N/A	US$	2,253
		Pricoa Global Funding I	-	〃		-	US	2,251		N/A	US$	2,251
		Boston Scientific Corporation	-	〃		-	US	2,190		N/A	US$	2,190
		Dominion Energy, Inc.	-	〃		-	US	2,186		N/A	US$	2,186
		Bimbo Bakeries USA, Inc.	-	〃		-	US	2,169		N/A	US$	2,169
		Humana Inc.	-	〃		-	US	2,115		N/A	US$	2,115
		Interstate Power and Light Company	-	〃		-	US	2,085		N/A	US$	2,085
		CMS Energy Corporation	-	〃		-	US	2,072		N/A	US$	2,072
		Air Lease Corporation	-	〃		-	US	2,046		N/A	US$	2,046
		Welltower Inc.	-	〃		-	US	2,043		N/A	US$	2,043
		Public Service Electric and Gas Company	-	〃		-	US	2,018		N/A	US$	2,018
		KODIT Global 2023-1 Co., Ltd.	-	〃		-	US	1,998		N/A	US$	1,998
		Olympus Corporation	-	〃		-	US	1,993		N/A	US$	1,993
		UBS Group Funding (Jersey) Ltd.	-	〃		-	US	1,980		N/A	US$	1,980
		Gulf Power Company	-	〃		-	US	1,936		N/A	US$	1,936
		Shinhan Financial Group Co., Ltd.	-	〃		-	US	1,926		N/A	US$	1,926
		NBK SPC Limited	-	〃		-	US	1,879		N/A	US$	1,879
		Element Fleet Management Corp.	-	〃		-	US	1,786		N/A	US$	1,786
		Mondelez International, Inc.	-	〃		-	US	1,785		N/A	US$	1,785
		Kentucky Utilities Company	-	〃		-	US	1,782		N/A	US$	1,782
		Eversource Energy	-	〃		-	US	1,778		N/A	US$	1,778
		CenterPoint Energy Houston Electric, LLC	-	〃		-	US	1,752		N/A	US$	1,752
		Evergy Kansas Central, Inc.	-	〃		-	US	1,728		N/A	US$	1,728
		Georgia-Pacific LLC	-	〃		-	US	1,718		N/A	US$	1,718
		University of California	-	〃		-	US	1,697		N/A	US$	1,697
		Gilead Sciences, Inc.	-	〃		-	US	1,694		N/A	US$	1,694
		KeySpan Corporation	-	〃		-	US	1,686		N/A	US$	1,686
		The Western Union Company	-	〃		-	US	1,673		N/A	US$	1,673
		Wells Fargo Bank, National Association	-	〃		-	US	1,669		N/A	US$	1,669
		Motorola Solutions, Inc.	-	〃		-	US	1,658		N/A	US$	1,658
		Walmart Inc.	-	〃		-	US	1,657		N/A	US$	1,657
		UniCredit S.p.A.	-	〃		-	US	1,656		N/A	US$	1,656
		eBay Inc.	-	〃		-	US	1,651		N/A	US$	1,651
		Gulfstream Natural Gas System, L.L.C.	-	〃		-	US	1,604		N/A	US$	1,604
		B.A.T Capital Corporation	-	〃		-	US	1,550		N/A	US$	1,550

All values are in US Dollars.

(Continued)

84 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		Jefferies Financial Group Inc.	-	Financial assets at fair value through other comprehensive income		-	US	1,545		N/A	US$	1,545
		Kinder Morgan, Inc.	-	〃		-	US	1,538		N/A	US$	1,538
		Zoetis Inc.	-	〃		-	US	1,533		N/A	US$	1,533
		APA Infrastructure Limited	-	〃		-	US	1,531		N/A	US$	1,531
		Cadence Design Systems, Inc.	-	〃		-	US	1,530		N/A	US$	1,530
		Genuine Parts Company	-	〃		-	US	1,529		N/A	US$	1,529
		Essex Portfolio, L.P.	-	〃		-	US	1,528		N/A	US$	1,528
		Wipro IT Services LLC	-	〃		-	US	1,527		N/A	US$	1,527
		Entergy Mississippi, LLC	-	〃		-	US	1,501		N/A	US$	1,501
		Phillips 66 Company	-	〃		-	US	1,501		N/A	US$	1,501
		Otis Worldwide Corporation	-	〃		-	US	1,494		N/A	US$	1,494
		Arthur J. Gallagher & Co.	-	〃		-	US	1,490		N/A	US$	1,490
		NSTAR Electric Company	-	〃		-	US	1,481		N/A	US$	1,481
		American International Group, Inc.	-	〃		-	US	1,479		N/A	US$	1,479
		Berkshire Hathaway Energy Company	-	〃		-	US	1,461		N/A	US$	1,461
		Duke Energy Florida, LLC	-	〃		-	US	1,460		N/A	US$	1,460
		Darden Restaurants, Inc.	-	〃		-	US	1,455		N/A	US$	1,455
		CenterPoint Energy, Inc.	-	〃		-	US	1,450		N/A	US$	1,450
		Dollar General Corporation	-	〃		-	US	1,445		N/A	US$	1,445
		Jersey Central Power & Light Company	-	〃		-	US	1,442		N/A	US$	1,442
		The Norinchukin Bank	-	〃		-	US	1,368		N/A	US$	1,368
		Northrop Grumman Corporation	-	〃		-	US	1,315		N/A	US$	1,315
		Aon Corporation	-	〃		-	US	1,314		N/A	US$	1,314
		Andrew W. Mellon Foundation, The	-	〃		-	US	1,292		N/A	US$	1,292
		Pernod Ricard International Finance LLC	-	〃		-	US	1,267		N/A	US$	1,267
		Texas Instruments Incorporated	-	〃		-	US	1,247		N/A	US$	1,247
		Becton, Dickinson and Company	-	〃		-	US	1,245		N/A	US$	1,245
		Union Pacific Corporation	-	〃		-	US	1,241		N/A	US$	1,241
		Ecolab Inc.	-	〃		-	US	1,208		N/A	US$	1,208
		Sysco Corporation	-	〃		-	US	1,200		N/A	US$	1,200
		Mondelez International Holdings Netherlands B.V.	-	〃		-	US	1,153		N/A	US$	1,153
		Solvay Finance (America), LLC	-	〃		-	US	1,148		N/A	US$	1,148
		Ferguson Finance PLC	-	〃		-	US	1,117		N/A	US$	1,117
		OGE Energy Corp.	-	〃		-	US	1,113		N/A	US$	1,113
		Nucor Corporation	-	〃		-	US	1,086		N/A	US$	1,086
		7-Eleven, Inc.	-	〃		-	US	1,080		N/A	US$	1,080
		Niagara Mohawk Power Corporation	-	〃		-	US	1,063		N/A	US$	1,063
		AIB Group plc	-	〃		-	US	1,057		N/A	US$	1,057
		EDP Finance B.V.	-	〃		-	US	1,045		N/A	US$	1,045
		New York State Electric & Gas Corporation	-	〃		-	US	1,024		N/A	US$	1,024
		CBRE Services, Inc.	-	〃		-	US	1,018		N/A	US$	1,018
		Sabine Pass Liquefaction, LLC	-	〃		-	US	1,010		N/A	US$	1,010
		PacifiCorp	-	〃		-	US	1,005		N/A	US$	1,005
		MORGAN STANLEY BANK NA FXD-FRN	-	〃		-	US	1,003		N/A	US$	1,003
		Santander UK plc	-	〃		-	US	996		N/A	US$	996
		Canadian Pacific Railway Company	-	〃		-	US	976		N/A	US$	976
		Juniper Networks, Inc.	-	〃		-	US	968		N/A	US$	968
		American Water Capital Corp.	-	〃		-	US	964		N/A	US$	964
		Bayer US Finance II LLC	-	〃		-	US	962		N/A	US$	962
		Lennar Corporation	-	〃		-	US	923		N/A	US$	923
		LYB Finance Company B.V.	-	〃		-	US	923		N/A	US$	923
		Assurant, Inc.	-	〃		-	US	922		N/A	US$	922

All values are in US Dollars.

(Continued)

85 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		AEP Texas Inc.	-	Financial assets at fair value through other comprehensive income		-	US	919		N/A	US$	919
		The Interpublic Group of Companies, Inc.	-	〃		-	US	918		N/A	US$	918
		TC PipeLines, LP	-	〃		-	US	904		N/A	US$	904
		BAE Systems Finance Inc.	-	〃		-	US	902		N/A	US$	902
		Brighthouse Financial Global Funding	-	〃		-	US	896		N/A	US$	896
		Metropolitan Edison Company	-	〃		-	US	811		N/A	US$	811
		CubeSmart, L.P.	-	〃		-	US	801		N/A	US$	801
		Cox Enterprises, Inc.	-	〃		-	US	788		N/A	US$	788
		Southwest Gas Corporation	-	〃		-	US	765		N/A	US$	765
		PACCAR Financial Corp.	-	〃		-	US	764		N/A	US$	764
		Voya Financial, Inc.	-	〃		-	US	762		N/A	US$	762
		Zimmer Biomet Holdings, Inc.	-	〃		-	US	762		N/A	US$	762
		BP Capital Markets America, Inc.	-	〃		-	US	760		N/A	US$	760
		Veralto Corporation	-	〃		-	US	758		N/A	US$	758
		Consolidated Edison Company of New York, Inc.	-	〃		-	US	752		N/A	US$	752
		TELUS Corporation	-	〃		-	US	752		N/A	US$	752
		Oklahoma Gas and Electric Company	-	〃		-	US	749		N/A	US$	749
		Mars, Incorporated	-	〃		-	US	743		N/A	US$	743
		Avangrid, Inc.	-	〃		-	US	736		N/A	US$	736
		Hyundai Capital Services, Inc.	-	〃		-	US	720		N/A	US$	720
		Sodexo, Inc.	-	〃		-	US	694		N/A	US$	694
		The Allstate Corporation	-	〃		-	US	694		N/A	US$	694
		Baxter International Inc.	-	〃		-	US	660		N/A	US$	660
		Automatic Data Processing, Inc.	-	〃		-	US	658		N/A	US$	658
		Reliance Standard Life Global Funding II	-	〃		-	US	656		N/A	US$	656
		International Business Machines Corporation	-	〃		-	US	653		N/A	US$	653
		Southern Power Company	-	〃		-	US	639		N/A	US$	639
		Florida Hurricane Catastrophe Fund Finance Corporation	-	〃		-	US	614		N/A	US$	614
		Infor, Inc.	-	〃		-	US	613		N/A	US$	613
		The Sherwin-Williams Company	-	〃		-	US	597		N/A	US$	597
		Burlington Resources Inc.	-	〃		-	US	588		N/A	US$	588
		Columbia Pipelines Holding Company, LLC	-	〃		-	US	562		N/A	US$	562
		Columbia Pipelines Operating Company LLC	-	〃		-	US	536		N/A	US$	536
		Skandinaviska Enskilda Banken AB (publ)	-	〃		-	US	536		N/A	US$	536
		State of Hawaii	-	〃		-	US	536		N/A	US$	536
		Arizona Public Service Company	-	〃		-	US	525		N/A	US$	525
		AIA Group Limited	-	〃		-	US	512		N/A	US$	512
		Mississippi Power Company	-	〃		-	US	511		N/A	US$	511
		Intesa Sanpaolo S.p.A.	-	〃		-	US	509		N/A	US$	509
		Monongahela Power Company	-	〃		-	US	509		N/A	US$	509
		Waste Management, Inc.	-	〃		-	US	503		N/A	US$	503
		Westpac New Zealand Limited	-	〃		-	US	499		N/A	US$	499
		Enterprise Products Operating LLC	-	〃		-	US	493		N/A	US$	493
		Trane Technologies Luxembourg Finance S.A.	-	〃		-	US	493		N/A	US$	493
		Altria Group, Inc.	-	〃		-	US	491		N/A	US$	491
		Commonwealth Bank of Australia	-	〃		-	US	489		N/A	US$	489
		Diageo Capital plc	-	〃		-	US	487		N/A	US$	487
		McCormick & Company, Incorporated	-	〃		-	US	485		N/A	US$	485
		Verisk Analytics, Inc.	-	〃		-	US	479		N/A	US$	479
		DENSO Corporation	-	〃		-	US	471		N/A	US$	471
		Aker BP ASA	-	〃		-	US	431		N/A	US$	431
		Phillips 66	-	〃		-	US	424		N/A	US$	424

All values are in US Dollars.

(Continued)

86 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		The Home Depot, Inc.	-	Financial assets at fair value through other comprehensive income		-	US	420		N/A	US$	420
		Aflac Incorporated	-	〃		-	US	407		N/A	US$	407
		Coca-Cola Consolidated, Inc.	-	〃		-	US	396		N/A	US$	396
		GlaxoSmithKline Capital Inc.	-	〃		-	US	391		N/A	US$	391
		Sierra Pacific Power Company	-	〃		-	US	389		N/A	US$	389
		Nuveen, LLC	-	〃		-	US	387		N/A	US$	387
		CSX Corporation	-	〃		-	US	365		N/A	US$	365
		Cargill, Incorporated	-	〃		-	US	360		N/A	US$	360
		Honeywell International Inc.	-	〃		-	US	355		N/A	US$	355
		Equitable Holdings, Inc.	-	〃		-	US	341		N/A	US$	341
		Mid-America Apartments, L.P.	-	〃		-	US	320		N/A	US$	320
		National Grid plc	-	〃		-	US	286		N/A	US$	286
		QatarEnergy	-	〃		-	US	283		N/A	US$	283
		Nordson Corporation	-	〃		-	US	281		N/A	US$	281
		Electricité de France S.A.	-	〃		-	US	203		N/A	US$	203
		Sprint Spectrum Co Llc	-	〃		-	US	116		N/A	US$	116
		Beth Israel Deaconess Medical Center, Inc.	-	〃		-	US	90		N/A	US$	90
		Bank of America Corporation	-	Financial assets at amortized cost		-	US	1,090,390		N/A	US$	1,094,564
		Wells Fargo & Company	-	〃		-	US	1,068,098		N/A	US$	1,075,639
		Citigroup Inc.	-	〃		-	US	744,664		N/A	US$	746,193
		Morgan Stanley	-	〃		-	US	571,972		N/A	US$	574,855
		JPMorgan Chase & Co.	-	〃		-	US	567,099		N/A	US$	569,835
		The Goldman Sachs Group, Inc.	-	〃		-	US	531,503		N/A	US$	529,294
		Goldman Sachs Finance Corp International Ltd	-	〃		-	US	209,799		N/A	US$	209,249
		BNP Paribas SA	-	〃		-	US	44,841		N/A	US$	44,846
		Morgan Stanley Bank, N.A.	-	〃		-	US	27,003		N/A	US$	27,116
		BPCE SA	-	〃		-	US	17,696		N/A	US$	17,699
		UBS Group AG	-	〃		-	US	15,308		N/A	US$	15,317
		Athene Global Funding	-	〃		-	US	14,814		N/A	US$	14,820
		Lloyds Banking Group plc	-	〃		-	US	13,275		N/A	US$	13,278
		ING Groep N.V.	-	〃		-	US	11,434		N/A	US$	11,487
		Nationwide Building Society	-	〃		-	US	10,636		N/A	US$	10,602
		Great-West Lifeco U.S. Finance 2020, Lp	-	〃		-	US	9,885		N/A	US$	9,863
		Credit Agricole SA London Branch	-	〃		-	US	9,748		N/A	US$	9,744
		NatWest Group plc	-	〃		-	US	9,696		N/A	US$	9,697
		Mizuho Financial Group, Inc.	-	〃		-	US	9,637		N/A	US$	9,741
		Macquarie Group Limited	-	〃		-	US	9,632		N/A	US$	9,635
		Danske Bank A/S	-	〃		-	US	9,625		N/A	US$	9,628
		HSBC Holdings plc	-	〃		-	US	9,570		N/A	US$	9,569
		Hyundai Capital America	-	〃		-	US	9,562		N/A	US$	9,566
		Barclays PLC	-	〃		-	US	9,536		N/A	US$	9,535
		Coöperatieve Rabobank U.A.	-	〃		-	US	9,430		N/A	US$	9,426
		Fédération des caisses Desjardins du Québec	-	〃		-	US	9,206		N/A	US$	9,201
		NongHyup Bank	-	〃		-	US	9,150		N/A	US$	9,142
		Nomura Holdings, Inc.	-	〃		-	US	9,112		N/A	US$	9,104
		Mitsubishi UFJ Financial Group, Inc.	-	〃		-	US	8,707		N/A	US$	8,704
		Banque Fédérative du Crédit Mutuel	-	〃		-	US	8,472		N/A	US$	8,503
		Canadian Imperial Bank of Commerce	-	〃		-	US	8,467		N/A	US$	8,466
		Ventas Realty, Limited Partnership	-	〃		-	US	8,383		N/A	US$	8,385
		Banco Santander, S.A.	-	〃		-	US	8,296		N/A	US$	8,307
		Enel Finance International N.V.	-	〃		-	US	8,288		N/A	US$	8,288
		Protective Life Global Funding	-	〃		-	US	8,075		N/A	US$	8,073

All values are in US Dollars.

(Continued)

87 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		CRH America, Inc.	-	Financial assets at amortized cost		-	US	8,002		N/A	US$	7,984
		Sydney Airport Finance Company Pty Ltd	-	〃		-	US	7,830		N/A	US$	7,827
		Sumitomo Mitsui Financial Group, Inc.	-	〃		-	US	7,801		N/A	US$	7,813
		AIG Global Funding	-	〃		-	US	7,776		N/A	US$	7,794
		Banco Bilbao Vizcaya Argentaria, S.A.	-	〃		-	US	7,314		N/A	US$	7,321
		Southern California Edison Company	-	〃		-	US	5,973		N/A	US$	5,983
		Santander UK Group Holdings plc	-	〃		-	US	5,682		N/A	US$	5,681
		NatWest Markets Plc	-	〃		-	US	5,583		N/A	US$	5,580
		F&G Global Funding	-	〃		-	US	5,520		N/A	US$	5,533
		Transurban Finance Company Pty Ltd	-	〃		-	US	5,349		N/A	US$	5,345
		Hyundai Capital Services, Inc.	-	〃		-	US	5,137		N/A	US$	5,131
		Svenska Handelsbanken AB (publ)	-	〃		-	US	4,810		N/A	US$	4,830
		QNB Finance Ltd.	-	〃		-	US	4,550		N/A	US$	4,560
		DNB Bank ASA	-	〃		-	US	4,364		N/A	US$	4,361
		Sumitomo Mitsui Trust Bank, Limited	-	〃		-	US	4,194		N/A	US$	4,195
		Deutsche Bank AG - New York Branch	-	〃		-	US	3,992		N/A	US$	3,988
		Volkswagen Group of America Finance, LLC	-	〃		-	US	3,932		N/A	US$	3,923
		Daimler Trucks Finance North America LLC	-	〃		-	US	3,912		N/A	US$	3,920
		Jackson National Life Global Funding	-	〃		-	US	3,365		N/A	US$	3,361
		ANZ New Zealand (Int'l) Limited	-	〃		-	US	3,314		N/A	US$	3,312
		Scottish Power Limited	-	〃		-	US	3,181		N/A	US$	3,189
		Spectra Energy Partners, LP	-	〃		-	US	2,872		N/A	US$	2,869
		Ryder System, Inc.	-	〃		-	US	2,868		N/A	US$	2,871
		Bank of Ireland Group plc	-	〃		-	US	2,822		N/A	US$	2,823
		PNC Bank, National Association	-	〃		-	US	2,799		N/A	US$	2,800
		Unum Group	-	〃		-	US	1,981		N/A	US$	1,984
		Georgia-Pacific LLC	-	〃		-	US	1,294		N/A	US$	1,297
		GA Global Funding Trust	-	〃		-	US	1,194		N/A	US$	1,196
		Agency mortgage-backed securities
		FEDERAL NATIONAL MORTGAGE ASSOCIATION	-	Financial assets at fair value through other comprehensive income		-	US	651,715		N/A	US$	651,715
		Federal Home Loan Mortgage Corporation	-	〃		-	US	496,172		N/A	US$	496,172
		Government National Mortgage Association	-	〃		-	US	274,580		N/A	US$	274,580
		Government bond/Agency bonds
		United States Department of The Treasury	-	Financial assets at fair value through other comprehensive income		-	US	630,062		N/A	US$	630,062
		United States Department of The Treasury	-	Financial assets at amortized cost		-	US	133,653		N/A	US$	132,856
		Asset-backed securities
		Wells Fargo Commercial Mortgage Trust 2016-Bnk1	-	Financial assets at fair value through other comprehensive income		-	US	10,286		N/A	US$	10,286
		Gm Financial Consumer Automobile Receivables Trust 2023-3	-	〃		-	US	8,998		N/A	US$	8,998
		Ford Credit Auto Owner Trust 2021-Rev2	-	〃		-	US	7,946		N/A	US$	7,946
		Honda Auto Receivables 2024-1 Owner Trust	-	〃		-	US	7,685		N/A	US$	7,685
		Toyota Auto Loan Extended Note Trust 2023-1	-	〃		-	US	7,350		N/A	US$	7,350
		Hyundai Auto Receivables Trust 2023-B	-	〃		-	US	7,188		N/A	US$	7,188
		Citigroup Commercial Mortgage Trust 2015-GC33	-	〃		-	US	7,181		N/A	US$	7,181
		Ford Credit Auto Owner Trust 2020-REV2	-	〃		-	US	7,167		N/A	US$	7,167
		G23-182I	-	〃		-	US	6,433		N/A	US$	6,433
		BBCMS Mortgage Trust 2020-C8	-	〃		-	US	6,346		N/A	US$	6,346
		Toyota Auto Receivables 2022-B Owner Trust	-	〃		-	US	6,328		N/A	US$	6,328
		Morgan Stanley Capital I Trust 2021-L6	-	〃		-	US	6,133		N/A	US$	6,133

All values are in US Dollars.

(Continued)

88 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		Honda Auto Receivables 2023-2 Owner Trust	-	Financial assets at fair value through other comprehensive income		-	US	6,031		N/A	US$	6,031
		Hudson Yards 2016-10HY Mortgage Trust	-	〃		-	US	6,013		N/A	US$	6,013
		Bank 2020-BNK26	-	〃		-	US	5,983		N/A	US$	5,983
		Benchmark 2019-B11 Mortgage Trust	-	〃		-	US	5,729		N/A	US$	5,729
		Bank 2017 - BNK7	-	〃		-	US	5,639		N/A	US$	5,639
		Citigroup Commercial Mortgage Trust 2021-PRM2	-	〃		-	US	5,593		N/A	US$	5,593
		Bank 2021-bnk33	-	〃		-	US	5,498		N/A	US$	5,498
		Benchmark 2019-B12 Mortgage Trust	-	〃		-	US	5,447		N/A	US$	5,447
		Morgan Stanley Bank America Merrill Lynch Trust 2016-C30	-	〃		-	US	5,437		N/A	US$	5,437
		Nissan Auto Receivables 2024-A Owner Trust	-	〃		-	US	5,272		N/A	US$	5,272
		MSWF Commercial Mortgage Trust 2023-1	-	〃		-	US	5,180		N/A	US$	5,180
		Benchmark 2023-B39 Mortgage Trust	-	〃		-	US	5,161		N/A	US$	5,161
		Bank 2023-BNK46	-	〃		-	US	5,105		N/A	US$	5,105
		Wells Fargo Commercial Mortgage Trust 2021-C59	-	〃		-	US	4,900		N/A	US$	4,900
		Morgan Stanley Capital I Trust 2016 - BNK2 Fund	-	〃		-	US	4,839		N/A	US$	4,839
		Wells Fargo Commercial Mortgage Trust 2016-C35	-	〃		-	US	4,839		N/A	US$	4,839
		CSAIL 2018-CX11	-	〃		-	US	4,793		N/A	US$	4,793
		GM Financial Revolving Receivables Trust 2021-1	-	〃		-	US	4,718		N/A	US$	4,718
		Bank 2017-BNK9	-	〃		-	US	4,241		N/A	US$	4,241
		Msbam 2016-C29	-	〃		-	US	4,109		N/A	US$	4,109
		Benchmark 2023-V3 Mortgage Trust	-	〃		-	US	4,094		N/A	US$	4,094
		Nissan Auto Receivables 2024-B Owner Trust	-	〃		-	US	3,966		N/A	US$	3,966
		Toyota Auto Receivables 2024-D Owner Trust	-	〃		-	US	3,926		N/A	US$	3,926
		FORDO_24-D	-	〃		-	US	3,752		N/A	US$	3,752
		Bmw Vehicle Owner Trust 2023-A	-	〃		-	US	3,633		N/A	US$	3,633
		Gm Financial Consumer Automobile Receivables Trust 2023-4	-	〃		-	US	3,622		N/A	US$	3,622
		Discover Card Execution Note Trust	-	〃		-	US	3,523		N/A	US$	3,523
		GM Financial Consumer Automobile Receivables Trust 2023-2	-	〃		-	US	3,384		N/A	US$	3,384
		American Express Credit Account Master Trust	-	〃		-	US	3,338		N/A	US$	3,338
		Citigroup Commercial Mortgage Trust 2019-Gc43	-	〃		-	US	3,277		N/A	US$	3,277
		Msbam 2016-C31	-	〃		-	US	3,113		N/A	US$	3,113
		Honda Auto Receivables 2023-4 Owner Trust	-	〃		-	US	3,048		N/A	US$	3,048
		Mercedes-Benz Auto Receivables Trust 2024-1	-	〃		-	US	3,009		N/A	US$	3,009
		Commerce 2015-CCRE24 Mortgage Trust	-	〃		-	US	2,892		N/A	US$	2,892
		Bank 2019-Bnk22	-	〃		-	US	2,889		N/A	US$	2,889
		Five 2023-V1 Mortgage Trust	-	〃		-	US	2,857		N/A	US$	2,857
		Sreit Commercial Mortgage Trust 2021-Mfp	-	〃		-	US	2,772		N/A	US$	2,772
		Bmo 2023-C5 Mortgage Trust	-	〃		-	US	2,766		N/A	US$	2,766
		CGCMT 2017-P8 Mortgage Trust	-	〃		-	US	2,727		N/A	US$	2,727
		Bank5 2023-5YR1	-	〃		-	US	2,674		N/A	US$	2,674
		Mercedes-Benz Auto Receivables Trust 2023-2	-	〃		-	US	2,585		N/A	US$	2,585
		Toyota Auto Receivables 2023-C Owner Trust	-	〃		-	US	2,520		N/A	US$	2,520
		Honda Auto Receivables 2023-1 Owner Trust	-	〃		-	US	2,506		N/A	US$	2,506
		Benchmark 2018-B3 Commercial Mortgage Trust	-	〃		-	US	2,499		N/A	US$	2,499
		Ford Credit Auto Owner Trust 2020-Rev1	-	〃		-	US	2,492		N/A	US$	2,492
		Gm Financial Consumer Automobile Receivables Trust 2024-1	-	〃		-	US	2,478		N/A	US$	2,478
		Benchmark 2019-B15 Mortgage Trust	-	〃		-	US	2,452		N/A	US$	2,452
		GS Mortgage Securities Trust 2015-GC32	-	〃		-	US	2,432		N/A	US$	2,432
		Hyundai Auto Receivables Trust 2021-B	-	〃		-	US	2,432		N/A	US$	2,432
		Citigroup Commercial Mortgage Trust 2016-C1	-	〃		-	US	2,362		N/A	US$	2,362
		Toyota Auto Receivables 2024-A Owner Trust	-	〃		-	US	2,305		N/A	US$	2,305

All values are in US Dollars.

(Continued)

89 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		Benchmark 2020-B18 Mortgage Trust	-	Financial assets at fair value through other comprehensive income		-	US	2,286		N/A	US$	2,286
		BANK5 2023-5YR4	-	〃		-	US	2,261		N/A	US$	2,261
		Citigroup Commercial Mortgage Trust 2015-P1	-	〃		-	US	2,231		N/A	US$	2,231
		Wells Fargo Commercial Mortgage Trust 2020-C55	-	〃		-	US	2,147		N/A	US$	2,147
		Bmark 2018-B5	-	〃		-	US	2,136		N/A	US$	2,136
		Toyota Auto Receivables 2023 D Owner Trust	-	〃		-	US	2,131		N/A	US$	2,131
		Ford Credit Auto Owner Trust 2023-C	-	〃		-	US	2,128		N/A	US$	2,128
		Ford Credit Auto Owner Trust 2023-A	-	〃		-	US	2,003		N/A	US$	2,003
		Benchmark 2018-B4 Mortgage Trust	-	〃		-	US	1,970		N/A	US$	1,970
		Ubs 2018-C13	-	〃		-	US	1,916		N/A	US$	1,916
		Dolp Trust 2021-NYC	-	〃		-	US	1,895		N/A	US$	1,895
		Bank 2017-Bnk6	-	〃		-	US	1,872		N/A	US$	1,872
		Mercedes-Benz Auto Receivables Trust 2023-1	-	〃		-	US	1,691		N/A	US$	1,691
		GM Financial Consumer Automobile Receivables Trust 2023-1	-	〃		-	US	1,689		N/A	US$	1,689
		Hyundai Auto Receivables Trust 2022-A	-	〃		-	US	1,569		N/A	US$	1,569
		Wells Fargo Commercial Mortgage Trust 2015-C30	-	〃		-	US	1,549		N/A	US$	1,549
		UBS Commercial Mortgage Trust 2018-C11	-	〃		-	US	1,522		N/A	US$	1,522
		American Express Credit Account Master Trust , series 2023-1	-	〃		-	US	1,508		N/A	US$	1,508
		Morgan Stanley Capital I Trust 2021-L5	-	〃		-	US	1,386		N/A	US$	1,386
		Wells Fargo Commercial Mortgage Trust 2015-C29	-	〃		-	US	1,277		N/A	US$	1,277
		Ford Credit Auto Owner Trust 2022-C	-	〃		-	US	1,251		N/A	US$	1,251
		Morgan Stanley Capital I Trust	-	〃		-	US	1,223		N/A	US$	1,223
		Gs Mortgage Securities Trust 2018-Gs10	-	〃		-	US	1,221		N/A	US$	1,221
		BANK 2017-BNK5	-	〃		-	US	1,146		N/A	US$	1,146
		Hyundai Auto Receivables Trust 2021-C	-	〃		-	US	1,145		N/A	US$	1,145
		FORD CREDIT AUTO OWNER TRUST 2023-REV2	-	〃		-	US	1,120		N/A	US$	1,120
		Wells Fargo Commercial Mortgage Trust 2018-C44	-	〃		-	US	1,005		N/A	US$	1,005
		Morgan Stanley Capital I Trust 2015 - UBS8	-	〃		-	US	986		N/A	US$	986
		Wells Fargo Commercial Mortgage Trust 2016-LC24	-	〃		-	US	967		N/A	US$	967
		Citigroup Commercial Mortgage Trust 2016-C3	-	〃		-	US	963		N/A	US$	963
		Hyundai Auto Receivables Trust 2022-B	-	〃		-	US	938		N/A	US$	938
		Toyota Auto Receivables 2024-B Owner Trust	-	〃		-	US	930		N/A	US$	930
		Ford Credit Auto Owner Trust 2022-A	-	〃		-	US	919		N/A	US$	919
		Benchmark 2021-B24 Mortgage Trust	-	〃		-	US	859		N/A	US$	859
		Bank 2023-Bnk45	-	〃		-	US	859		N/A	US$	859
		BBCMS Mortgage Trust 2018-C2	-	〃		-	US	852		N/A	US$	852
		Nissan Auto Receivables 2023-A Owner Trust	-	〃		-	US	832		N/A	US$	832
		DBJPM 2016-C1 Mortgage Trust	-	〃		-	US	776		N/A	US$	776
		JPMCC 2017-JP7	-	〃		-	US	758		N/A	US$	758
		Honda Auto Receivables 2022-2 Owner Trust	-	〃		-	US	745		N/A	US$	745
		Honda Auto Receivables 2021 - 4 Owner Trust	-	〃		-	US	710		N/A	US$	710
		Citigroup Commercial Mortgage Trust 2015-GC35	-	〃		-	US	700		N/A	US$	700
		Hyundai Auto Receivables Trust 2024-C	-	〃		-	US	697		N/A	US$	697
		Mhc Commercial Mortgage Trust 2021-Mhc	-	〃		-	US	697		N/A	US$	697
		Wells Fargo Commercial Mortgage Trust 2017-C40	-	〃		-	US	597		N/A	US$	597
		JPMBB Commercial Mortgage Securities Trust 2016-C1	-	〃		-	US	591		N/A	US$	591
		JPMCC Commercial Mortgage Securities Trust 2016 - JP3	-	〃		-	US	523		N/A	US$	523
		Wells Fargo Commercial Mortgage Trust 2015-C28	-	〃		-	US	473		N/A	US$	473
		JPMDB 2017-C7	-	〃		-	US	414		N/A	US$	414
		Toyota Auto Receivables 2021-C Owner Trust	-	〃		-	US	405		N/A	US$	405
		COMM Mortgage Trust Series 2015-LC19	-	〃		-	US	339		N/A	US$	339

All values are in US Dollars.

(Continued)

90 -

Held Company Name		Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)				Fair Value<br><br>(Foreign Currencies in Thousands)
TSMC Global		Citigroup Commercial Mortgage Trust 2018-C5	-	Financial assets at fair value through other comprehensive income		-	US	336		N/A	US$	336
		Gm Financial Consumer Automobile Receivables Trust 2022-3	-	〃		-	US	267		N/A	US$	267
		Ford Credit Auto Owner Trust 2023-B	-	〃		-	US	231		N/A	US$	231
		Ford Credit Auto Owner Trust 2022-B	-	〃		-	US	204		N/A	US$	204
		Toyota Auto Receivables 2021-D Owner Trust	-	〃		-	US	201		N/A	US$	201
		Porsche Financial Auto Securitization Trust 2023-1	-	〃		-	US	198		N/A	US$	198
		Nissan Auto Receivables 2022-B Owner Trust	-	〃		-	US	194		N/A	US$	194
		Wells Fargo Commercial Mortgage Trust 2015-NXS3	-	〃		-	US	132		N/A	US$	132
		Morgan Stanley Capital I Trust 2018-H3	-	〃		-	US	107		N/A	US$	107
		JPMCC 2015 - JP1	-	〃		-	US	91		N/A	US$	91
		Non-publicly traded equity investments
		Primavera Capital Fund II L.P.	-	Financial assets at fair value through other comprehensive income		-	US	78,780		4	US$	78,780
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		-	US	-		N/A	US$	-
		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
		Ayar Labs, Inc.	-	〃		345	US	5,400		1	US$	5,400
		Cerebras Systems, Inc.	-	〃		341	US	5,000		-	US$	5,000
		Empower Semiconductor, Inc.	-	〃		868	US	5,000		2	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
		NeuReality Ltd.	-	〃		1,217	US	4,302		2	US$	4,302
		Xsight Labs Ltd.	-	〃		500	US	4,002		1	US$	4,002
		SiMa Technologies, Inc.	-	〃		564	US	4,000		1	US$	4,000
		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
		Enfabrica Corporation	-	〃		1,048	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
		Raspberry Pi Holdings Plc	-	Financial assets at fair value through other comprehensive income		1,364	US	10,703		1	US$	10,703
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

All values are in US Dollars.

(Concluded)

91 -

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 YEAR ENDED DECEMBER 31, 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<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Shares/Units<br><br>(In Thousands)			Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Shares/Units<br><br>(In Thousands)			Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Carrying Value<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Gain/Loss on Disposal<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)					Shares/Units<br><br>(In Thousands)				Amount<br><br>(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		772,437,954
		TSMC Arizona	〃	-	-			10,500							7,350							-																	17,850
		JASM	〃	-	-			2,269							742							-																	3,011
		VIS	〃	-	-			464,223							42,486							-																	506,709
		ESMC	〃	-	-			100							665							30									)								735
		Emerging Fund	〃	-	-			-							-							-																	-
		VTAF III	〃	-	-			-							-							-																	-
		Commercial paper
		Cathay Financial Holding Co., Ltd.	Financial assets at amortized cost	-	-			697							1,356							1,129																	924
		Formosa Chemicals & Fibre Corporation	〃	-	-			100							740							590																	250
		China Steel Corporation	〃	-	-			200							920							1,000																	120
		Formosa Plastics Corporation	〃	-	-			100							350							350																	100
		Nan Ya Plastics Corporation	〃	-	-			600							485							1,050																	35
		CPC Corporation, Taiwan	〃	-	-			100							370							470																	-
		Taiwan Power Company	〃	-	-			50							245							295																	-
TSMC Partners		Fund
		Carbon Nature SCSp	Financial assets at fair value through Profit or Loss	-	-			-	US			-			-	US			13,939			-	US			-	US			-		US			-				-	US		11,413
		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		137,026
TSMC Global		Corporate bond
		Bank of America Corporation	Financial assets at fair value through other comprehensive income	-	-			-	US			86,588			-	US			42,071			-	US			34,981	US			35,186		US			205				-	US		95,674
		Morgan Stanley	〃	-	-			-	US			76,777			-	US			36,402			-	US			27,731	US			27,700		US			31				-	US		87,312
		Wells Fargo & Company	〃	-	-			-	US			58,351			-	US			35,405			-	US			20,340	US			20,524		US			(184	)			-	US		74,617
		The Goldman Sachs Group, Inc.	〃	-	-			-	US			58,554			-	US			32,401			-	US			18,875	US			18,911		US			(36	)			-	US		73,642
		JPMorgan Chase & Co.	〃	-	-			-	US			62,267			-	US			35,675			-	US			26,976	US			27,187		US			(211	)			-	US		72,101
		Citigroup Inc.	〃	-	-			-	US			50,436			-	US			23,833			-	US			18,431	US			18,508		US			(77	)			-	US		56,810
		HSBC Holdings plc	〃	-	-			-	US			30,124			-	US			31,600			-	US			9,371	US			9,596		US			(225	)			-	US		52,845
		Hyundai Capital America	〃	-	-			-	US			13,567			-	US			25,268			-	US			-	US			-		US			-				-	US		39,105
		BNP Paribas SA	〃	-	-			-	US			20,345			-	US			29,092			-	US			11,256	US			11,296		US			(40	)			-	US		38,517
		Lloyds Banking Group plc	〃	-	-			-	US			24,131			-	US			21,375			-	US			9,529	US			9,483		US			46				-	US		36,440

All values are in US Dollars.

(Continued)

92 -

Company Name		Marketable Securities <br>Type and Name	Financial Statement Account	Counterparty	Nature of Relationship
	Shares/Units<br><br>(In Thousands)					Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)									Amount<br><br>(Foreign<br><br>Currencies in<br><br>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$	36,329
		Barclays PLC	〃	-	-		-	US	35,277		-	US	14,596		-	US	14,240	US	14,156	US	84			-	US$	35,715
		Nationwide Building Society	〃	-	-		-	US	17,760		-	US	19,724		-	US	1,927	US	2,016	US	(89	)		-	US$	35,644
		NatWest Group plc	〃	-	-		-	US	6,360		-	US	29,473		-	US	1,699	US	1,680	US	19			-	US$	34,193
		Principal Life Global Funding II	〃	-	-		-	US	17,932		-	US	22,252		-	US	6,829	US	6,958	US	(129	)		-	US$	33,881
		American Express Company	〃	-	-		-	US	13,685		-	US	20,710		-	US	3,505	US	3,530	US	(25	)		-	US$	31,036
		Banco Santander, S.A.	〃	-	-		-	US	29,015		-	US	14,561		-	US	13,215	US	13,308	US	(93	)		-	US$	30,804
		BPCE SA	〃	-	-		-	US	23,875		-	US	12,832		-	US	6,939	US	6,947	US	(8	)		-	US$	30,045
		Toyota Motor Credit Corporation	〃	-	-		-	US	4,261		-	US	30,740		-	US	4,915	US	5,000	US	(85	)		-	US$	29,997
		Credit Agricole SA London Branch	〃	-	-		-	US	20,395		-	US	16,321		-	US	8,864	US	8,799	US	65			-	US$	28,366
		Sumitomo Mitsui Financial Group, Inc.	〃	-	-		-	US	45,172		-	US	2,412		-	US	21,791	US	21,906	US	(115	)		-	US$	26,118
		AIG Global Funding	〃	-	-		-	US	18,428		-	US	10,208		-	US	3,443	US	3,418	US	25			-	US$	25,521
		Athene Global Funding	〃	-	-		-	US	20,297		-	US	10,811		-	US	7,084	US	7,159	US	(75	)		-	US$	24,758
		COÖPERATIEVE RABOBANK U.A., NEW YORK BRANCH	〃	-	-		-	US	8,173		-	US	17,300		-	US	998	US	1,000	US	(2	)		-	US$	24,228
		Deutsche Bank AG - New York Branch	〃	-	-		-	US	10,454		-	US	21,424		-	US	8,470	US	8,500	US	(30	)		-	US$	23,782
		The Toronto-Dominion Bank	〃	-	-		-	US	30,523		-	US	4,588		-	US	11,779	US	11,856	US	(77	)		-	US$	23,563
		Penske Truck Leasing Co., L.P.	〃	-	-		-	US	13,095		-	US	10,628		-	US	381	US	399	US	(18	)		-	US$	23,519
		Volkswagen Group of America Finance, LLC	〃	-	-		-	US	16,251		-	US	15,690		-	US	10,063	US	10,056	US	7			-	US$	22,284
		Banque Fédérative du Crédit Mutuel	〃	-	-		-	US	14,439		-	US	11,057		-	US	3,620	US	3,592	US	28			-	US$	21,960
		Glencore Funding LLC	〃	-	-		-	US	1,556		-	US	19,310		-	US	-	US	-	US	-			-	US$	21,086
		Royal Bank of Canada	〃	-	-		-	US	25,469		-	US	8,890		-	US	13,689	US	13,841	US	(152	)		-	US$	20,863
		General Motors Financial Company, Inc.	〃	-	-		-	US	-		-	US	20,425		-	US	-	US	-	US	-			-	US$	20,625
		The Bank of Nova Scotia	〃	-	-		-	US	16,474		-	US	10,965		-	US	7,252	US	7,413	US	(161	)		-	US$	20,432
		Bunge Limited Finance Corp.	〃	-	-		-	US	-		-	US	20,603		-	US	-	US	-	US	-			-	US$	20,202
		Danske Bank A/S	〃	-	-		-	US	16,698		-	US	13,103		-	US	9,748	US	9,721	US	27			-	US$	20,157
		RGA Global Funding	〃	-	-		-	US	8,977		-	US	10,770		-	US	-	US	-	US	-			-	US$	19,988
		Daimler Trucks Finance North America LLC	〃	-	-		-	US	7,013		-	US	12,021		-	US	-	US	-	US	-			-	US$	19,288
		Bank of Montreal	〃	-	-		-	US	11,032		-	US	9,984		-	US	2,943	US	2,970	US	(27	)		-	US$	18,228
		Mitsubishi UFJ Financial Group, Inc.	〃	-	-		-	US	36,903		-	US	3,400		-	US	22,941	US	23,219	US	(278	)		-	US$	18,083
		CNO Global Funding	〃	-	-		-	US	3,967		-	US	11,731		-	US	309	US	315	US	(6	)		-	US$	15,565
		Marsh & McLennan Companies, Inc.	〃	-	-		-	US	747		-	US	14,975		-	US	-	US	-	US	-			-	US$	15,564
		U.S. Bancorp.	〃	-	-		-	US	16,962		-	US	12,369		-	US	14,047	US	14,129	US	(82	)		-	US$	15,440
		Roper Technologies, Inc.	〃	-	-		-	US	9,177		-	US	9,457		-	US	3,431	US	3,500	US	(69	)		-	US$	15,407
		BMW US Capital, LLC	〃	-	-		-	US	-		-	US	14,699		-	US	-	US	-	US	-			-	US$	14,519
		T-Mobile USA, Inc.	〃	-	-		-	US	1,526		-	US	13,003		-	US	-	US	-	US	-			-	US$	14,433
		Philip Morris International Inc.	〃	-	-		-	US	6,807		-	US	10,790		-	US	3,424	US	3,385	US	39			-	US$	14,276
		Quest Diagnostics Incorporated	〃	-	-		-	US	-		-	US	14,408		-	US	-	US	-	US	-			-	US$	14,196
		Santander Holdings USA, Inc.	〃	-	-		-	US	-		-	US	13,962		-	US	-	US	-	US	-			-	US$	14,143
		SMBC Aviation Capital Finance DAC	〃	-	-		-	US	1,747		-	US	11,997		-	US	-	US	-	US	-			-	US$	13,873
		Oracle Corporation	〃	-	-		-	US	23,751		-	US	4,995		-	US	14,995	US	15,662	US	(667	)		-	US$	13,824

All values are in US Dollars.

(Continued)

93 -

Company Name		Marketable Securities <br>Type and Name	Financial Statement Account	Counterparty	Nature of Relationship
	Shares/Units<br><br>(In Thousands)					Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)									Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)
TSMC Global		Macquarie Bank Limited	Financial assets at fair value through other comprehensive income	-	-		-	US	8,390		-	US	10,818		-	US	5,804	US	5,848	US	(44	)		-	US$	13,650
		Mercedes-Benz Finance North America LLC	〃	-	-		-	US	-		-	US	16,734		-	US	3,574	US	3,597	US	(23	)		-	US$	13,022
		Amphenol Corporation	〃	-	-		-	US	-		-	US	12,737		-	US	-	US	-	US	-			-	US$	12,833
		American Honda Finance Corporation	〃	-	-		-	US	2,087		-	US	19,874		-	US	8,989	US	8,918	US	71			-	US$	12,774
		Jackson National Life Global Funding	〃	-	-		-	US	3,563		-	US	12,386		-	US	3,652	US	3,712	US	(60	)		-	US$	12,563
		The Bank of New York Mellon Corporation	〃	-	-		-	US	16,064		-	US	5,984		-	US	9,757	US	9,402	US	355			-	US$	12,428
		BAE Systems plc	〃	-	-		-	US	-		-	US	12,292		-	US	-	US	-	US	-			-	US$	12,425
		Bristol-Myers Squibb Company	〃	-	-		-	US	4,604		-	US	21,106		-	US	14,572	US	14,275	US	297			-	US$	11,585
		Swedbank AB (publ)	〃	-	-		-	US	2,399		-	US	9,999		-	US	946	US	1,000	US	(54	)		-	US$	11,541
		Elevance Health, Inc.	〃	-	-		-	US	5,914		-	US	9,976		-	US	4,804	US	4,740	US	64			-	US$	11,154
		Prologis Targeted U.S. Logistics Fund L.P.	〃	-	-		-	US	-		-	US	10,940		-	US	-	US	-	US	-			-	US$	11,127
		MassMutual Global Funding II	〃	-	-		-	US	506		-	US	10,025		-	US	-	US	-	US	-			-	US$	10,851
		DTE Energy Company	〃	-	-		-	US	1,685		-	US	10,580		-	US	1,712	US	1,735	US	(23	)		-	US$	10,651
		National Rural Utilities Cooperative Finance Corporation	〃	-	-		-	US	1,445		-	US	9,899		-	US	950	US	999	US	(49	)		-	US$	10,402
		Hewlett Packard Enterprise Company	〃	-	-		-	US	-		-	US	9,989		-	US	-	US	-	US	-			-	US$	9,766
		Accenture Capital Inc.	〃	-	-		-	US	-		-	US	12,196		-	US	2,980	US	2,996	US	(16	)		-	US$	8,979
		Keurig Dr Pepper Inc.	〃	-	-		-	US	-		-	US	11,790		-	US	4,980	US	4,987	US	(7	)		-	US$	6,880
		Fiserv, Inc.	〃	-	-		-	US	6,745		-	US	10,068		-	US	10,634	US	10,662	US	(28	)		-	US$	6,242
		Marriott International, Inc.	〃	-	-		-	US	271		-	US	9,744		-	US	4,582	US	4,488	US	94			-	US$	5,525
		AbbVie Inc.	〃	-	-		-	US	26,895		-	US	8,427		-	US	30,655	US	30,962	US	(307	)		-	US$	4,965
		Société Générale Société anonyme	〃	-	-		-	US	16,589		-	US	-		-	US	12,218	US	12,345	US	(127	)		-	US$	4,618
		CVS Health Corporation	〃	-	-		-	US	24,591		-	US	-		-	US	22,083	US	21,803	US	280			-	US$	2,354
		The Kroger Co.	〃	-	-		-	US	-		-	US	14,886		-	US	15,049	US	14,887	US	162			-	US$	-
		Bank of America Corporation	Financial assets at amortized cost	-	-		-	US	799,449		-	US	558,380		-	US	279,000	US	278,987	US	13			-	US$	1,090,390
		Wells Fargo & Company	〃	-	-		-	US	619,830		-	US	577,074		-	US	144,000	US	143,976	US	24			-	US$	1,068,098
		Citigroup Inc.	〃	-	-		-	US	271,462		-	US	697,689		-	US	228,000	US	227,997	US	3			-	US$	744,664
		Morgan Stanley	〃	-	-		-	US	566,880		-	US	293,824		-	US	297,000	US	296,972	US	28			-	US$	571,972
		JPMorgan Chase & Co.	〃	-	-		-	US	391,868		-	US	335,127		-	US	171,000	US	170,999	US	1			-	US$	567,099
		The Goldman Sachs Group, Inc.	〃	-	-		-	US	432,811		-	US	362,921		-	US	267,000	US	267,000	US	-			-	US$	531,503
		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	39,266		-	US	4,000	US	4,000	US	-			-	US$	44,841
		Morgan Stanley Bank, N.A.	〃	-	-		-	US	-		-	US	27,014		-	US	-	US	-	US	-			-	US$	27,003
		BPCE SA	〃	-	-		-	US	7,874		-	US	9,633		-	US	-	US	-	US	-			-	US$	17,696
		Athene Global Funding	〃	-	-		-	US	5,122		-	US	9,583		-	US	-	US	-	US	-			-	US$	14,814
		Credit Agricole SA London Branch	〃	-	-		-	US	-		-	US	9,727		-	US	-	US	-	US	-			-	US$	9,748
		NatWest Group plc	〃	-	-		-	US	-		-	US	9,718		-	US	-	US	-	US	-			-	US$	9,696
		Macquarie Group Limited	〃	-	-		-	US	-		-	US	9,616		-	US	-	US	-	US	-			-	US$	9,632
		Danske Bank A/S	〃	-	-		-	US	-		-	US	9,613		-	US	-	US	-	US	-			-	US$	9,625
		HSBC Holdings plc	〃	-	-		-	US	-		-	US	9,582		-	US	-	US	-	US	-			-	US$	9,570

All values are in US Dollars.

(Continued)

94 -

Company Name		Marketable Securities <br>Type and Name	Financial Statement Account	Counterparty	Nature of Relationship
	Shares/Units<br><br>(In Thousands)					Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)									Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)
TSMC Global		Hyundai Capital America	Financial assets at amortized cost	-	-		-	US	-		-	US	9,541		-	US	-	US	-	US	-			-	US$	9,562
		Barclays PLC	〃	-	-		-	US	-		-	US	9,560		-	US	-	US	-	US	-			-	US$	9,536
		Coöperatieve Rabobank U.A.	〃	-	-		-	US	-		-	US	9,407		-	US	-	US	-	US	-			-	US$	9,430
		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	265,914		-	US	264,084	US	271,966	US	(7,882	)		-	US$	651,715
		Federal Home Loan Mortgage Corporation	〃	-	-		-	US	350,328		-	US	294,896		-	US	144,307	US	146,914	US	(2,607	)		-	US$	496,172
		Government National Mortgage Association	〃	-	-		-	US	225,310		-	US	124,487		-	US	70,649	US	71,381	US	(732	)		-	US$	274,580
		Government bond/Agency bonds
		United States Department of The Treasury	Financial assets at fair value through other comprehensive income	-	-		-	US	718,479		-	US	176,221		-	US	276,660	US	279,897	US	(3,237	)		-	US$	630,062
		Federal Home Loan Mortgage Corporation	〃	-	-		-	US	6,995		-	US	4,996		-	US	12,002	US	11,990	US	12			-	US$	-
		United States Department of The Treasury	Financial assets at amortized cost	-	-		-	US	88,940		-	US	44,399		-	US	-	US	-	US	-			-	US$	133,653
		Federal Home Loan Banks	〃	-	-		-	US	225,000		-	US	30,000		-	US	255,000	US	255,000	US	-			-	US$	-
		Federal Home Loan Mortgage Corporation	〃	-	-		-	US	135,000		-	US	30,000		-	US	165,000	US	165,000	US	-			-	US$	-
		Asset-backed securities
		G23-182I	Financial assets at fair value through other comprehensive income	-	-		-	US	-		-	US	10,151		-	US	3,734	US	3,735	US	(1	)		-	US$	6,433
		JPMBB Commercial Mortgage Securities Trust 2014-C24	〃	-	-		-	US	9,818		-	US	-		-	US	10,000	US	10,016	US	(16	)		-	US$	-
Emerging Fund		Publicly traded stocks
		Astera Labs, Inc.	Financial assets at fair value through other comprehensive income	-	-		744	US	9,680		-	US	-		744	US	64,393	US	5,000	US	59,393			-	US$	-
Growth Fund		Publicly traded stocks
		Astera Labs, Inc.	Financial assets at fair value through other comprehensive income	-	-		319	US	4,146		-	US	-		319	US	23,243	US	250	US	22,993			-	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)

95 -

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 YEAR ENDED DECEMBER 31, 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)

96 -

Company Name		Types of<br><br>Property				Counterparty
	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)

97 -

Company Name		Types of<br><br>Property				Counterparty
	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)

98 -

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)

99 -

Company Name		Types of<br><br>Property				Counterparty
	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)

100 -

Company Name		Types of<br><br>Property				Counterparty
	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.
						Mandartech Interiors Inc.

(Continued)

101 -

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.
									Mandartech Interiors Inc.

All values are in US Dollars.

(Continued)

102 -

Company Name		Types of<br><br>Property				Counterparty
	Owner		Relationships	Transfer Date	Amount
TSMC		Real estate				Cheng Deh Fire Protection Industrial Corp.
						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.

(Continued)

103 -

Company Name		Types of<br><br>Property				Counterparty
	Owner		Relationships	Transfer Date	Amount
TSMC		Real estate				Mandartech Interiors Inc.
						Marketech International Corp.
						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

(Continued)

104 -

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							Weltall Technology Corporation
									Wholetech System Hitech Limited
									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.
		Real estate		November 12, 2024<br><br>(Note)	US		11,215,000<br><br>(Note)	Based on the terms in the purchase order	113 counterparties (Note), including:	-	N/A	N/A	N/A	N/A	Price comparison and price negotiation	Manufacturing purpose	None
									ABB K.K
									Addtron Technology (Japan) Inc.
									Bilfinger Water Technologies GmbH
									Central Taiwan Science Park Bureau, National Science and Technology Council
									Chen Yuan International Co., Ltd.
									Drees & Sommer SE
									Exyte Central Europe Ltd.
									Hager+Elsässer GmbH
									IAQ technology
									Intega GmbH
									JAPAN MATERIAL Co., Ltd.
									JG Environmental Technology Co., Ltd.
									Kajima Corporation
									Kanto Chemical Engineering Co., Ltd.
									Kaohsiung City Government

All values are in US Dollars.

(Continued)

105 -

Company Name		Types of<br><br>Property				Counterparty
	Owner		Relationships	Transfer Date	Amount
TSMC		Real estate				KENDAI Co., Ltd.
						Kinetics Germany GmbH
						Kurita Water Industries Ltd.
						Lumax International Corp., Ltd.
						Marketech International Corporation
						ORGANO CORPORATION
						Shimizu Corporation
						Southern Taiwan Science Park Bureau, Ministry of Science and Technology
						Taikisha Ltd.
						Taiwan Puritic Corp.
						Taiwan Valqua Engineering International, Ltd.
						Taiyo Nippon Sanso Corporation
						Takenaka Corporation
						TOPLINE SYSTEM ENGINEERING CO., LTD.
						Toray Engineering West Co., Ltd.
						Tosei Technology Japan Co., Ltd.
						Uangyih-Tech Industrial Co., Ltd.
						United Integrated Services Co., Ltd.

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)

106 -

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 YEAR ENDED DECEMBER 31, 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		2,057,313,208			71		Net 30 days from invoice date (Note)	-	-		209,056,572			84
		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	-	-					-
		TSMC Nanjing		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					37		Net 30 days from the end of the month of when invoice is issued	-	-				)	4
		TSMC China		Subsidiary	Purchases					14		Net 30 days from the end of the month of when invoice is issued	-	-				)	2
		TSMC Arizona		Subsidiary	Purchases					-		Net 30 days from the end of the month of when invoice is issued	-	-				)	1
		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		7,285,137<br><br>227,111	)	-		Net 30 days from invoice date	-	-	(US		179,266<br><br>5,471	)	-
VisEra Tech		Xintec		Associate of TSMC	Sales					7		Net 60 days from the end of the month of when invoice is issued	-	-					9

All values are in US Dollars.

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

107 -

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

DECEMBER 31, 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 <br>(Note 1)	Overdue			Amounts Received in Subsequent Period		Allowance forBad Debts
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Amount					Action Taken
TSMC		TSMC North America	Subsidiary		214,106,805				32		-	-		-		-
		TSMC Arizona	Subsidiary						33			-
		VIS	Associate						Note 3			-
		GUC	Associate						24			-
TSMC North America		GUC	Associate of TSMC	(			179,266<br><br>5,471	)	6			-
TSMC JDC		TSMC	Parent company	(			144,709<br><br>691,723	)	Note 2			-
TSMC China		TSMC	Parent company	(RMB			1,848,450<br><br>411,693	)	28			-
		TSMC Nanjing	The same parent company	(RMB			27,086,790<br><br>6,032,827	)	Note 2			-
TSMC Nanjing		TSMC	Parent company	(RMB			4,473,370<br><br>996,324	)	25			-
VisEra Tech		Xintec	Associate of TSMC						59			-
TSMC Arizona		TSMC	Parent company	(			44,867,669<br><br>1,369,253	)	Note 2			-
TSMC Technology		TSMC	The ultimate parent of the Company	(			743,091<br><br>22,677	)	Note 2			-
TSMC Development		TSMC Washington	Subsidiary	(			983,040<br><br>30,000	)	Note 2			-
TSMC Washington		TSMC	The ultimate parent of the Company	(			529,200<br><br>16,150	)	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.

Note 3: The ending balance is primarily consisted of royalty receivables, collected in accordance with contractual terms, which is not applicable for the calculation of turnover days.

108 -

TABLE 8

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 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			2,057,313,208		-	71%
						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					-	2%
						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					-	-

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.

109 -

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 YEAR ENDED DECEMBER 31, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Investor Company		Investee Company	Location	Main Businesses and Products	Original Investment Amount										Balance as of December 31, 2024									Net Income (Losses) of the Investee(Foreign Currencies in Thousands)				Share of Profits/Losses of Investee(Note 1)(Foreign Currencies in Thousands)			Note
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	December 31,<br><br>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		772,437,954				37,342,396				37,342,396		Subsidiary
		TSMC Arizona	Phoenix, Arizona, U.S.A.	Manufacturing, sales and testing of integrated circuits and other semiconductor devices													17,850		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, and testing of integrated circuits and other semiconductor devices													3,011		73								)			)	Subsidiary
		VIS	Hsinchu, Taiwan	Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks													506,709		28												Associate
		ESMC	Dresden, Germany	Manufacturing, sales and testing of integrated circuits and other semiconductor devices													735		70								)			)	Subsidiary
		VisEra Tech	Hsinchu, 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
		Xintec	Taoyuan, Taiwan	Wafer level chip size packaging and wafer level post passivation interconnection service													111,282		41												Associate
		GUC	Hsinchu, Taiwan	Researching, developing, manufacturing, testing and marketing of integrated circuits													46,688		35												Associate
		Emerging Fund	Cayman Islands	Investing in technology start-up companies													-		99.9								)			)	Subsidiary
		TSMC 3DIC	Yokohama, Japan	Engineering support activities													49		100												Subsidiary
		TSMC Europe	Amsterdam, the Netherlands	Customer service and supporting activities													-		100												Subsidiary
		TSMC JDC	Yokohama, Japan	Engineering support activities													15		100												Subsidiary
		TSMC Japan	Yokohama, Japan	Customer service and supporting activities													6		100												Subsidiary
		TSMC Korea	Seoul, Korea	Customer service and supporting activities													80		100												Subsidiary
		VTAF III	Cayman Islands	Investing in technology start-up companies													-		98												Subsidiary
		VTAF II	Cayman Islands	Investing in technology start-up companies													-		98								)			)	Subsidiary
TSMC Partners		TSMC Development	Delaware, U.S.A	Investing in companies involved in semiconductor manufacturing	(US			19,232,811<br><br>586,939	)	(US			19,232,811<br><br>586,939	)			-		100	(US		39,971,252<br><br>1,219,826	)	(US		(346,954<br><br>(10,922	)<br><br>))				Subsidiary
		TSMC Technology	Delaware, U.S.A	Engineering support activities	(US			467,993<br><br>14,282	)	(US			467,993<br><br>14,282	)			-		100	(US		1,559,346<br><br>47,587	)	(US		351,561<br><br>10,949	)				Subsidiary
		TSMC Canada	Ontario, Canada	Engineering support activities	(US			75,366<br><br>2,300	)	(US			75,366<br><br>2,300	)			2,300		100	(US		424,072<br><br>12,942	)	(US		52,594<br><br>1,643	)				Subsidiary
VTAF III		Growth Fund	Cayman Islands	Investing in technology start-up companies	(US			40,498<br><br>1,236	)	(US			75,217<br><br>2,295	)			-		100					(US		4,254<br><br>132	)				Subsidiary
TSMC Development		TSMC Washington	Washington, U.S.A	Manufacturing, sales and testing of integrated circuits and other semiconductor devices													293,637		100	(US		5,186,093<br><br>158,267	)	(US		(1,001,385<br><br>(31,319	)<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.

110 -

TABLE 10

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 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 ofDecember 31, 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 December 31, 2024		Accumulated Inward Remittance of Earnings as of December 31, 2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Outflow(US in Thousands)			Inflow
TSMC China		$<br><br>(RMB	18,939,667<br><br>4,502,080	)	(Note 1)	(US	)		-		-	(US	)		11,273,152	100%		11,359,207<br><br>(Note 2)		110,272,686		-
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 as of December 31, 2024(US in Thousands)		Investment Amounts Authorized byInvestment Commission, MOEA(US in Thousands)		Upper Limit on Investment
(US	)	(US	)	$	2,594,145,519<br><br>(Note 3)

All values are in US Dollars.

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 audited 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.

111 -

TABLE 11

Taiwan Semiconductor Manufacturing Company Limited

INFORMATION ON MAJOR SHAREHOLDERS

DECEMBER 31, 2024
Shareholders (Note 1)		Shares
---	---	---	---	---
	Total Shares Owned		Ownership Percentage (Note 2)
ADR-Taiwan Semiconductor Manufacturing Company Ltd.		5,313,843,923		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.

112 -

Document

English Translation of Financial Statements Originally Issued in Chinese

Taiwan Semiconductor Manufacturing Company Limited

Parent Company Only Financial Statements for the

Years Ended December 31, 2024 and 2023 and

Independent Auditors’ 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’ REPORT

The Board of Directors and Shareholders

Taiwan Semiconductor Manufacturing Company Limited

Opinion

We have audited the accompanying parent company only financial statements of Taiwan Semiconductor Manufacturing Company Limited (the “Company”), which comprise the parent company only balance sheets as of December 31, 2024 and 2023, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the “parent company only financial statements”).

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2024 and 2023, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter for the Company’s parent company only financial statements for the year ended December 31, 2024 is stated as follows:

Property, plant and equipment (PP&E) – commencement of depreciation related to PP&E classified as equipment under installation and construction in progress (EUI/CIP)

Refer to Notes 4, 5 and 13 to the parent company only financial statements.

Our audit procedures related to the evaluation of when to commence depreciation of EUI/CIP included the following, among others:

1.We read the Company’s policy and understood the criteria used to determine when to commence depreciation.

2.We tested the effectiveness of the controls over the evaluation of when to commence depreciation of EUI/CIP.

3.We sampled the year-end balance of EUI/CIP and performed the following for each selection:

a.Evaluated whether the selection did not meet the criteria specified by the Company for commencement of depreciation.

b.Observed the assets and evaluated their status.

4.We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation during the year.

5.We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation subsequent to year end.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including members of the Audit and Risk Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,

individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1.Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

3.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4.Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5.Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6.Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2024 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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

Deloitte & Touche

Taipei, Taiwan

Republic of China

February 12, 2025

Notice to Readers

The accompanying parent company only financial statements are intended only to present the 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 audit such parent company only financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying parent company only 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’ report and parent company only financial statements shall prevail.

Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY BALANCE SHEETS

(In Thousands of New Taiwan Dollars)
	December 31, 2024				December 31, 2023
---	---	---	---	---	---	---	---	---	---	---
ASSETS	Amount		%		Amount			%
CURRENT ASSETS
Cash and cash equivalents (Note 6)		1,035,061,499		17		718,703,712			15
Financial assets at fair value through profit or loss (Note 7)				-					-
Financial assets at amortized cost (Note 8)				-					-
Notes and accounts receivable, net (Note 10)				1					1
Receivables from related parties (Note 30)				4					3
Other receivables from related parties (Note 30)				-					-
Inventories (Notes 5 and 11)				4					5
Other financial assets				-					-
Other current assets				1					-
Total current assets				27					24
NONCURRENT ASSETS
Financial assets at fair value through other comprehensive income				-					-
Investments accounted for using equity method (Note 12)				29					23
Property, plant and equipment (Notes 5 and 13)				42					50
Right-of-use assets (Notes 5 and 14)				1					1
Intangible assets (Notes 5 and 15)				-					-
Deferred income tax assets (Notes 5 and 23)				1					1
Refundable deposits				-					-
Other noncurrent assets (Note 30)				-					1
Total noncurrent assets				73					76
TOTAL		6,037,249,300		100		4,874,079,284			100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Financial liabilities at fair value through profit or loss (Note 7)		439,110		-		25,673			-
Hedging financial liabilities (Notes 9 and 27)				-					1
Accounts payable				1					1
Payables to related parties (Note 30)				-					-
Salary and bonus payable				1					1
Accrued profit sharing bonus to employees and compensation to directors (Note 26)				1					1
Payables to contractors and equipment suppliers				3					2
Cash dividends payable (Note 18)				4					3
Income tax payable (Notes 5 and 23)				2					2
Long-term liabilities - current portion (Notes 16 and 27)				-					-
Accrued expenses and other current liabilities (Notes 5, 14, 19, 27 and 30)				7					5
Total current liabilities				19					16
NONCURRENT LIABILITIES
Bonds payable (Notes 16 and 27)				8					9
Deferred income tax liabilities (Notes 5 and 23)				-					-
Lease liabilities (Notes 5, 14 and 27)				1					-
Net defined benefit liability (Note 17)				-					-
Guarantee deposits				-					-
Others (Notes 19 and 30)				1					4
Total noncurrent liabilities				10					13
Total liabilities				29					29
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
Capital stock (Note 18)				4					5
Capital surplus (Notes 18 and 25)				2					2
Retained earnings (Note 18)
Appropriated as legal capital reserve				5					6
Unappropriated earnings				60					59
				65					65
Others (Notes 18 and 25)				-			)		(1	)
Total equity				71					71
TOTAL		6,037,249,300		100		4,874,079,284			100

All values are in US Dollars.

The accompanying notes are an integral part of the parent company only financial statements.

Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
	2024					2023
---	---	---	---	---	---	---	---	---	---	---
	Amount			%		Amount			%
NET REVENUE (Notes 5, 19 and 30)		2,880,383,350			100		2,153,285,095			100
COST OF REVENUE (Notes 5, 11, 26, 30 and 32)					45					47
GROSS PROFIT					55					53
OPERATING EXPENSES (Notes 5, 26 and 30)
Research and development					7					9
General and administrative					2					2
Marketing					-					-
Total operating expenses					9					11
OTHER OPERATING INCOME AND EXPENSES, NET (Notes 13, 26 and 32)			)		-					-
INCOME FROM OPERATIONS					46					42
NON-OPERATING INCOME AND EXPENSES
Share of profits of subsidiaries and associates (Note 12)					2					2
Interest income (Note 20)					1					1
Other income					-					-
Foreign exchange gain (loss), net (Note 33)					-			)		-
Finance costs (Note 21)			)		-			)		-
Other gains and losses, net (Note 22)			)		-					-
Total non-operating income and expenses					3					3
INCOME BEFORE INCOME TAX					49					45
INCOME TAX EXPENSE (Notes 5 and 23)					8					6
NET INCOME					41					39
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 5, 12, 17, 18 and 23)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit obligation					-			)		-
Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income					-			)		-
Gain on hedging instruments					-					-
Share of other comprehensive gain of subsidiaries and associates					-					-
Income tax benefit (expense) related to items that will not be reclassified subsequently			)		-					-
					-					-

All values are in US Dollars.

(Continued)

Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
				2023
---	---	---	---	---	---	---	---	---
		%		Amount			%
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations	65,330,074		2		(13,645,829	)		-
Share of other comprehensive gain of subsidiaries and associates			-					-
			2			)		-
Other comprehensive income (loss), net of income tax			2			)		-
TOTAL COMPREHENSIVE INCOME	1,245,836,616		43		830,509,542			39
EARNINGS PER SHARE (NT, Note 24)
Basic earnings per share	45.25				32.34
Diluted earnings per share	45.25				32.34

All values are in US Dollars.

The accompanying notes are an integral part of the parent company only financial statements.

(Concluded)

Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)
																					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			Total
	(In Thousands)			Amount			Capital Surplus			Reserve		Reserve			Earnings			Total			Reserve			Income			Instruments			Compensation			Total			Stock			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
Appropriations of earnings
Special capital reserve		-												)
Cash dividends to shareholders		-															)			)																					)
Total		-												)			)			)																					)
Net income		-
Other comprehensive income (loss), net of income tax		-															)			)			)						)						)						)
Total comprehensive income (loss)		-																					)						)						)
Employee restricted shares retired		(419	)			)
Share-based payment arrangements		2,110																														)			)
Disposal of investments in equity instruments at fair value through other comprehensive income		-																								)									)
Basis adjustment for loss on hedging instruments		-																											)						)						)
Adjustments to share of changes in equities of associates		-							)																																)
From share of changes in equities of subsidiaries		-							)																																)
Donation from shareholders		-
BALANCE, DECEMBER 31, 2023		25,932,071																					)			)						)			)
Appropriations of earnings
Cash dividends to shareholders		-															)			)																					)
Total		-															)			)																					)
Net income		-
Other comprehensive income (loss), net of income tax		-																											)
Total comprehensive income (loss)		-																											)
Employee restricted shares retired		(1,402	)			)
Share-based payment arrangements		5,313																														)			)
Treasury stock acquired		-																																				)			)
Treasury stock retired		(3,249	)			)			)								)			)
Disposal of investments in equity instruments at fair value through other comprehensive income		-																								)									)						)
Basis adjustment for gain (loss) on hedging instruments		-
Adjustments to share of changes in equities of associates		-
From differences between equity purchase price and carrying amount arising from actual acquisition or disposal of subsidiaries		-
From share of changes in equities of subsidiaries		-							)																																)
Donation from shareholders		-
BALANCE, DECEMBER 31, 2024		25,932,733			259,327,332			73,260,765			311,146,899		-			3,606,105,124			3,917,252,023			40,262,995			(1,160,176	)		1,310,307			(1,708,079	)		38,705,047			-			4,288,545,167

All values are in US Dollars.

The accompanying notes are an integral part of the parent company only financial statements.

Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)
	2024			2023
---	---	---	---	---	---	---
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax		1,407,608,969			977,771,236
Adjustments for:
Depreciation expense
Amortization expense
Expected credit losses recognized (reversal) on investments in debt instruments			)
Finance costs
Share of profits of subsidiaries and 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
Gain on disposal of investments accounted for using equity method, 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
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Financial assets at amortized cost			)			)
Investments accounted for using equity method			)
Equity interest in subsidiary						)
Property, plant and equipment			)			)
Intangible assets			)			)
Proceeds from disposal or redemption of:
Financial assets at amortized cost
Property, plant and equipment
Intangible assets
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income

All values are in US Dollars.

(Continued)

Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)
	2024			2023
---	---	---	---	---	---	---
Interest received		26,599,749			16,851,011
Other dividends received
Dividends received from investments accounted for using equity method
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			)			)
Payments for transaction costs attributable to the issuance of bonds			)			)
Treasury stock acquired			)
Repayment of the principal portion of lease liabilities			)			)
Interest paid			)			)
Guarantee deposits received
Guarantee deposits refunded			)			)
Cash dividends			)			)
Disposal of ownership interests in subsidiaries (without losing control)
Payment of partial acquisition of interests in subsidiaries			)			)
Proceeds from partial disposal of interests in subsidiaries
Donation from shareholders
Net cash used in financing activities			)			)
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR		1,035,061,499			718,703,712

All values are in US Dollars.

The accompanying notes are an integral part of the parent company only financial statements.

(Concluded)

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Taiwan Semiconductor Manufacturing Company Limited

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

1. GENERAL

Taiwan Semiconductor Manufacturing Company Limited (the “Company” or “TSMC”), a Republic of China (R.O.C.) corporation, was incorporated on February 21, 1987. The Company is a dedicated foundry in 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, the Company’s shares were listed on the Taiwan Stock Exchange (TWSE). On October 8, 1997, the Company listed some of its shares of stock on the New York Stock Exchange (NYSE) in the form of American Depositary Shares (ADSs).

The address of its registered office and principal place of business is No. 8, Li-Hsin Rd. 6, Hsinchu Science Park, Taiwan.

2. THE AUTHORIZATION OF FINANCIAL STATEMENTS

The accompanying parent company only financial statements were approved and authorized for issue by the Board of Directors on February 12, 2025.

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 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 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	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

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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.

Except for the above impact, as of the date the accompanying parent company only financial statements were issued, the Company continues in evaluating other impacts of the above amended standards and interpretations 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

For the convenience of readers, the accompanying parent company only 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 parent company only financial statements shall prevail.

Statement of Compliance

The accompanying parent company only financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Accounting Standards Used in Preparation of the Parent Company Only Financial Statements”).

Basis of Preparation

The accompanying parent company only financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for the assets.

When preparing the parent company only financial statements, the Company account for subsidiaries and associates by using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the consolidated financial statements, the differences of the accounting treatment between the parent company only basis and the consolidated basis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries and associates and share of other comprehensive income of subsidiaries and associates in the parent company only financial statements.

Foreign Currencies

In preparing the parent company only financial statements, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the

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transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Such exchange differences are recognized in profit or loss in the year in which they arise. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the year except for exchange differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured in terms of historical cost in foreign currencies are not retranslated.

For the purposes of presenting parent company only financial statements, the assets and liabilities of the Company’s foreign operations are translated into NT$ using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity.

Classification of Current and Noncurrent Assets and Liabilities

Cash Equivalents

Financial Instruments

Financial assets and liabilities shall be recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial Assets

a. Category of financial assets and measurement

Financial assets are classified into the following categories: financial assets at FVTPL, investments in equity instruments at FVTOCI and financial assets at amortized cost.

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1) Financial asset at FVTPL

2) Investments in equity instruments at FVTOCI

On initial recognition, the Company may irrevocably designate investments in equity investments that is not held for trading as at FVTOCI.

3) Measured at amortized cost

Cash and cash equivalents, commercial paper, notes and accounts receivable (including related parties), other receivables, refundable deposits and temporary payments (including those classified under other current assets and other noncurrent assets) are measured at amortized cost.

b. Impairment of financial assets

At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable).

The loss allowance for accounts receivable is measured at an amount equal to lifetime expected credit losses. For financial assets at amortized cost, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from possible default events of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from all possible default events over the expected life of a financial instrument.

The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

c. Derecognition of financial assets

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loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

Financial Liabilities and Equity Instruments

Classification as debt or equity

Equity instruments

Financial liabilities

Financial liabilities are subsequently measured either at amortized cost using effective interest method or at FVTPL.

Financial liabilities are classified as at fair value through profit or loss when the financial liability is either held for trading or is designated as at fair value through profit or loss.

Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss.

Financial liabilities other than those held for trading purposes and designated as at FVTPL are subsequently measured at amortized cost at the end of each reporting period.

Derecognition of financial liabilities

Derivative Financial Instruments

Hedge Accounting

a. Cash flow hedge

The Company designates certain hedging instruments, such as forward contracts, to partially hedge its foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). The effective portion of changes in the fair value of hedging instruments is recognized in other comprehensive income. When forecast transactions actually take place, the accumulated gains or losses that were recognized in other comprehensive income are transferred from equity to the initial cost of the hedged items. The gains or losses from hedging instruments relating to the ineffective portion are recognized immediately in profit or loss.

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b. Hedges of net investments in foreign operations

Inventories

Investments Accounted for Using Equity Method

Investments accounted for using the equity method include investments in subsidiaries and associates.

Investment in subsidiaries

A subsidiary is an entity that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the subsidiary as well as the distribution received. The Company also recognized its share in the changes in the equity of subsidiaries.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amount of the subsidiary and the fair value of the consideration paid or received is recognized directly in equity.

When the Company loses control of a subsidiary, any retained investment of the former subsidiary is measured at the fair value at that date. A gain or loss is recognized in profit or loss and calculated as the difference between (a) the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and (b) the previous carrying amount of the investments in such subsidiary. In addition, the Company shall account for all amounts previously recognized in other comprehensive income in relation to the subsidiary on the same basis as would be required if the subsidiary had directly disposed of the related assets and liabilities.

When the Company transacts with its subsidiaries, profits and losses resulting from the transactions with the subsidiaries are recognized in the Company’s parent company only financial statements only to the extent of interests in the subsidiaries that are not owned by the Company.

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Investment in associates

The operating results and assets and liabilities of associates are incorporated in these parent company only financial statements using the equity method of accounting. Under the equity method, an investment in an associate is initially recognized in the statement of financial position at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the associate as well as the distribution received. The Company also recognizes its share in the changes in the equities of associates.

When the Company transacts with an associate, profits and losses resulting from the transactions with the associate are recognized in the Company’s parent company only financial statements only to the extent of interests in the associate that are not owned by the Company.

Property, Plant and Equipment

Depreciation is recognized so as to write off the cost of the assets less their residual values over their useful lives, and it is computed using the straight-line method mainly over the following estimated useful lives: buildings (assets used by the Company and assets subject to operating leases) - 10 to 20 years; machinery and equipment (assets used by the Company and assets subject to operating leases) - 5 years; and office equipment - 5 years. The estimated useful lives, residual values and depreciation method are reviewed at the end of each

17 -

reporting period, with the effect of any changes in estimates accounted for on a prospective basis. Land is not depreciated.

Leases

For a contract that contains a lease component and non-lease component, the Company may elect to account for the lease and non-lease components as a single lease component.

The Company as lessor

Rental income from operating lease is recognized on a straight-line basis over the term of the lease.

The Company as lessee

Intangible Assets

Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

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Other intangible assets

Impairment of Tangible Assets, Right-of-use Assets and Intangible Assets

Goodwill

Goodwill is not amortized and instead is tested for impairment annually, or more frequently when there is an indication that the cash generating unit may be impaired. For the purpose of impairment testing, goodwill is allocated to each of the Company’s cash generating units or groups of cash-generating units that are expected to benefit. If the recoverable amount of a cash generating unit is less than its carrying amount, the difference is allocated first to reduce the carrying amount of any goodwill allocated to such cash-generating unit and then to the other assets of the cash generating unit pro rata based on the carrying amount of each asset in the cash generating unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

Tangible assets, right-of-use assets and other intangible assets

Revenue Recognition

The Company recognizes revenue when performance obligations are satisfied. The performance obligations are satisfied when customers obtain control of the promised goods which is generally when the goods are delivered to the customers’ specified locations.

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Employee Benefits

Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for service rendered by employees.

Retirement benefits

Net defined benefit liability represents the actual deficit in the Company’s defined benefit plan.

Treasury Stock

Share-based payment arrangements

a. Equity-settled share-based payment arrangements

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b. Cash-settled share-based payment arrangements

Taxation

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

Current tax

Income tax on unappropriated earnings is expensed in the year the shareholders approved the appropriation of earnings which is the year subsequent to the year the earnings are generated.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the parent company only financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, net operating loss carryforwards and tax credits for research and development expenses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Current and deferred tax for the year

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

Material Accounting Judgments

Revenue Recognition

The Company recognizes revenue when the conditions described in Note 4 are satisfied.

Commencement of Depreciation Related to Property, Plant and Equipment Classified as Equipment under Installation and Construction in Progress (EUI/CIP)

Judgments on Lease Terms

Key Sources of Estimation and Uncertainty

Estimation of Sales Returns and Allowances

Valuation of Inventory

Inventories are stated at the lower of cost or net realizable value, and the Company uses estimate to determine the net realizable value of inventory at the end of each reporting period.

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Impairment of Tangible Assets, Right-of-use Assets and Intangible Assets Other than Goodwill

Realization of Deferred Income Tax Assets

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which those deferred tax assets can be utilized. Assessment of the realization of the deferred tax assets requires subjective judgment and estimate, including the future revenue growth and profitability, tax holidays, the amount of tax credits can be utilized and feasible tax planning strategies. Any changes in the global economic environment, the industry trends and relevant laws and regulations could result in significant adjustments to the deferred tax assets.

Determination of Lessees’ Incremental Borrowing Rates

6. CASH AND CASH EQUIVALENTS


Cash and deposits in banks	1,031,883,302	710,158,232
Commercial paper
Repurchase agreements
Money market funds
	1,035,061,499	718,703,712

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

	December 31,<br><br>2024		December 31,<br><br>2023
Financial assets
Mandatorily measured at FVTPL
Forward exchange contracts	$	13,174	$	624,685
Financial liabilities
Held for trading
Forward exchange contracts	$	439,110	$	25,673

23 -

Outstanding forward exchange contracts consisted of the following:

		Contract Amount
	Maturity Date	(In Thousands)
December 31, 2024
Sell US$	January 2025 to March 2025	US$	3,256,945
December 31, 2023
Sell NT$	January 2024	NT$	26,251,763
Sell US$	January 2024	US$	829,000

8. FINANCIAL ASSETS AT AMORTIZED COST


Commercial paper	14,221,737		18,387,835
Less: Allowance for impairment loss		)		)
	14,208,158		18,371,705

All values are in US Dollars.

Refer to Note 29 for information relating to the credit risk management and expected credit loss for financial assets at amortized cost.

9. HEDGING FINANCIAL INSTRUMENTS

	December 31,<br><br>2024		December 31,<br><br>2023
Financial liabilities- current
Hedges of net investments in foreign operations
Bank loans	$	-	$	27,290,400

Cash flow hedge

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

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

24 -

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 exchange contracts. No other sources of ineffectiveness have emerged from these hedging relationships during the hedging period. Refer to Note 18 (d) for gain or loss arising from changes in the fair value of hedging instruments and the amount transferred to initial carrying amount of hedged items.

The effect for the years ended December 31, 2024 and 2023 is detailed below:

	Change in Value Used for<br><br>Calculating Hedge Ineffectiveness
	Years Ended December 31
Hedging Instruments/Hedged Items	2024			2023
Hedging Instruments
Forward exchange contracts	$	5,041		$	39,898
Hedged Items
Forecast transaction (capital expenditures)	$	(5,041	)	$	(39,898	)

Hedges of net investments in foreign operations

The Company 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 18 (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 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

The effect for the years ended December 31, 2024 and 2023 is detailed below:

	Change in Value Used for<br><br>Calculating Hedge<br><br>Ineffectiveness
	Years Ended December 31
Hedging Instruments/Hedged Items	2024			2023
Hedging Instruments
Bank loans	$	793,830		$	618,180
Hedged Items
Net investments in foreign operations	$	(793,830	)	$	(618,180	)

25 -

10. NOTES AND ACCOUNTS RECEIVABLE, NET


At amortized cost
Notes and accounts receivable	34,036,332		28,676,101
Less: Loss allowance		)		)

At FVTOCI
	39,497,003		33,557,279

All values are in US Dollars.

Aging analysis of notes and accounts receivable


Not past due	38,633,320		33,618,149
Past due
Past due within 30 days
Less: Loss allowance		)		)
	39,497,003		33,557,279

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

	Years Ended December 31
	2024			2023
Balance, beginning of year		530,139			330,686
Provision (Reversal)			)
Balance, end of year		451,913			530,139

All values are in US Dollars.

For the years ended December 31, 2024 and 2023, the changes in loss allowance were mainly due to the variations in the balance of accounts receivable of different risk levels.

26 -

11. INVENTORIES


Finished goods	33,980,459	33,839,662
Work in process
Raw materials
Supplies and spare parts
	270,716,472	238,259,195

All values are in US Dollars.

	Years Ended December 31
	2024			2023
Net inventory losses (reversal of write-down of inventories)	$	(79,431	)	$	3,526,480

12. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Investments accounted for using the equity method consisted of the following:


Subsidiaries	1,721,166,777	1,065,078,454
Associates
	1,758,587,882	1,094,695,092

All values are in US Dollars.

a. Investments in subsidiaries

Subsidiaries consisted of the following:

		Place of	Carrying Amount				Percentage of Ownership
Subsidiaries	Principal Activities	Incorporation<br> and Operation	December 31,2024		December 31,2023		December 31,<br><br>2024	December 31,<br><br>2023
TSMC Global Ltd. (TSMC Global)	Investment activities	Tortola, British Virgin Islands		772,437,954		441,225,883	100%	100%
TSMC Arizona Corporation (TSMC Arizona)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Phoenix, Arizona, U.S.A.					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%
TSMC China Company Limited (TSMC China)	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	Shanghai, China					100%	100%
TSMC Partners, Ltd. (TSMC Partners)	Investing in companies involved in the design, manufacture, and other related business in the semiconductor industry and other investment activities	Tortola, British Virgin Islands					100%	100%

All values are in US Dollars.

(Continued)

27 -

		Place of	Carrying Amount				Percentage of Ownership
Subsidiaries	Principal Activities	Incorporation<br> and Operation	December 31,2024		December 31,2023		December 31,<br><br>2024		December 31,<br><br>2023
Japan Advanced Semiconductor Manufacturing, Inc. (JASM)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Kumamoto, Japan		57,173,512		47,087,140		73%		71%
European Semiconductor Manufacturing Company (ESMC) GmbH (ESMC)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Dresden, Germany						70%		100%
VisEra Technologies Company Ltd. (VisEra Tech)	Research, design, development, manufacturing, sales, packaging and test of color filter	Hsinchu, Taiwan						67%		67%
TSMC North America	Selling and marketing of integrated circuits and other semiconductor devices	San Jose, California, U.S.A.						100%		100%
Emerging Fund, L.P. (Emerging Fund)	Investing in technology start-up companies	Cayman Islands						99.9%		99.9%
TSMC Japan 3DIC R&D Center, Inc. (TSMC 3DIC)	Engineering support activities	Yokohama, Japan						100%		100%
TSMC Europe B.V. (TSMC Europe)	Customer service and supporting activities	Amsterdam, the Netherlands						100%		100%
TSMC Design Technology Japan, Inc. (TSMC JDC)	Engineering support activities	Yokohama, Japan						100%		100%
TSMC Japan Limited (TSMC Japan)	Customer service and supporting activities	Yokohama, Japan						100%		100%
TSMC Korea Limited (TSMC Korea)	Customer service and supporting activities	Seoul, Korea						100%		100%
VentureTech Alliance Fund III, L.P. (VTAF III)	Investing in technology start-up technology companies	Cayman Islands						98%		98%
VentureTech Alliance Fund II, L.P. (VTAF II)	Investing in technology start-up technology companies	Cayman Islands						98%		98%
				1,721,166,777		1,065,078,454

All values are in US Dollars.

(Concluded)

The Company increased its investment in TSMC Global for the amount of NT$261,677,200 thousand in 2024.

The Company increased its investment in TSMC Arizona for the amount of NT$236,121,500 thousand and NT$292,649,510 thousand in both of 2024 and 2023, respectively. As of December 31, 2024, an amount of NT$44,236,800 thousand is recorded under accrued expenses and other current liabilities.

The Company increased its investment in JASM for the amount of NT$15,754,106 thousand and NT$28,062,957 thousand in both of 2024 and 2023, respectively. 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.

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

ESMC was established in June 2023, and the Company increased its investment in ESMC for the amount of NT$13,299,041 thousand and NT$4,814,293 thousand in both of 2024 and 2023, respectively. The Company sold its 10% shares to Robert Bosch GmbH, Infineon Technologies AG and NXP Semiconductors N.V. in January 2024, respectively. After selling shares, The Company’s shareholding in ESMC decreased from 100% to 70%. This transaction was accounted for as an equity transaction since the transaction did not change the Company’s control over ESMC.

VTAF II, VTAF III and Growth Fund are under liquidation procedures.

28 -

b. Investments in associates

Associates consisted of the following:

		Place of	Carrying Amount				% of Ownership and Voting<br><br>Rights Held by the Company
Name of Associate	Principal Activities	Incorporation<br><br>and Operation	December 31, 2024		December 31, 2023		December 31,<br><br>2024	December 31,<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		18,300,373		13,590,430	28%	28%
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)	Manufacturing and sales of integrated circuits and other semiconductor devices	Singapore					39%	39%
Xintec Inc. (Xintec)	Wafer level chip size packaging and wafer level post passivation interconnection service	Taoyuan, Taiwan					41%	41%
Global Unichip Corporation (GUC)	Researching, developing, manufacturing, testing and marketing of integrated circuits	Hsinchu, Taiwan					35%	35%
				37,421,105		29,616,638

All values are in US Dollars.

The Company increased its investment in VIS for the amount of NT$3,738,753 thousand in 2024.

As of December 31, 2024 and 2023, no investments in associates are individually material to the Company. Please refer to the parent company only statements of comprehensive income for recognition of share of both profit (loss) and other comprehensive income (loss) of associates that are not individually material.

Name of Associate	December 31,<br><br>2024		December 31,<br><br>2023
GUC	$	63,495,488	$	81,236,875
VIS	$	50,620,261	$	37,834,215
Xintec	$	22,033,821	$	14,188,445

13. PROPERTY, PLANT AND EQUIPMENT


Assets used by the Company	2,537,292,598	2,453,454,729
Assets subject to operating leases
	2,537,292,611	2,453,465,322

All values are in US Dollars.

29 -

Assets used by the Company


Cost
Balance at January 1, 2024	3,212,000	758,806,526		5,131,811,792		92,701,801		396,791,113		6,383,323,232
Additions
Disposals or retirements			)		)		)				)
Transfers from assets subject to operating leases
Balance at December 31, 2024	3,212,000	814,289,467		5,561,479,710		94,303,529		575,842,844		7,049,127,550
Accumulated depreciation<br><br>and impairment
Balance at January 1, 2024	-	356,622,537		3,510,736,003		61,719,223		790,740		3,929,868,503
Additions
Disposals or retirements			)		)		)				)
Transfers from assets subject to operating leases
Impairment										1,102,946
Balance at December 31, 2024	-	404,675,421		4,041,389,852		64,978,939		790,740		4,511,834,952
Carrying amounts at December 31, 2024	3,212,000	409,614,046		1,520,089,858		29,324,590		575,052,104		2,537,292,598
Cost
Balance at January 1, 2023	3,212,000	588,665,721		4,073,634,985		78,940,726		1,157,545,820		5,901,999,252
Additions (deductions)									)
Disposals or retirements			)		)		)				)
Transfers from assets subject to operating leases
Transfers to assets subject to operating leases					)						)
Balance at December 31, 2023	3,212,000	758,806,526		5,131,811,792		92,701,801		396,791,113		6,383,323,232
Accumulated depreciation<br><br>and impairment
Balance at January 1, 2023	-	315,107,562		3,098,295,994		55,147,258		790,740		3,469,341,554
Additions
Disposals or retirements			)		)		)				)
Transfers from assets subject to operating leases
Transfers to assets subject to operating leases					)						)
Balance at December 31, 2023	-	356,622,537		3,510,736,003		61,719,223		790,740		3,929,868,503
Carrying amounts at December 31, 2023	3,212,000	402,183,989		1,621,075,789		30,982,578		396,000,373		2,453,454,729

All values are in US Dollars.

In the second quarter of 2024, the Company recognized an impairment loss due to partial machinery and equipment damage caused by an earthquake, which rendered them unusable. Please refer to the related earthquake losses in Note 32.

Information about capitalized interest is set out in Note 21.

30 -

14. LEASE ARRANGEMENTS

a. Right-of-use assets


Carrying amounts
Land	36,615,988	37,039,145
Buildings
Office equipment
	37,899,147	37,872,705

All values are in US Dollars.

	Years Ended December 31
	2024		2023
Additions to right-of-use assets		3,809,970		1,657,886
Depreciation of right-of-use assets
Land		2,523,492		2,439,615
Buildings
Office equipment
		2,961,143		2,786,169

All values are in US Dollars.

b. Lease liabilities


Carrying amounts
Current portion (classified under accrued expenses and other current liabilities)	2,497,939	2,122,132
Noncurrent portion
	29,704,804	29,081,567

All values are in US Dollars.

Ranges of discount rates for lease liabilities are as follows:

	December 31,<br><br>2024	December 31,<br><br>2023
Land	0.39%-2.30%	0.39%-2.30%
Buildings	0.40%-2.04%	0.57%-1.76%
Office equipment	0.28%-1.74%	0.28%-1.73%

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 22 years. The lease contracts for land located in the R.O.C. specify that lease payments will be adjusted every 2 years on the basis of changes in announced land value prices. The Company does not have purchase options to acquire the leasehold land and buildings at the end of the lease terms.

31 -

d. Other lease information

	Years Ended December 31
	2024		2023
Expenses relating to short-term leases	$	164,904	$	1,212,080
Total cash outflow for leases	$	2,807,980	$	4,128,092

15. INTANGIBLE ASSETS


Cost
Balance at January 1, 2024	1,567,756	26,166,275	47,949,736		12,216,770		87,900,537
Additions
Disposals or retirements				)		)		)
Balance at December 31, 2024	1,567,756	28,545,782	51,369,728		13,132,229		94,615,495
Accumulated amortization and<br><br>impairment
Balance at January 1, 2024	-	20,436,014	39,211,353		10,569,106		70,216,473
Additions
Disposals or retirements				)				)
Balance at December 31, 2024	-	23,166,013	39,442,474		11,554,926		74,163,413
Carrying amounts at December 31, 2024	1,567,756	5,379,769	11,927,254		1,577,303		20,452,082
Cost
Balance at January 1, 2023	1,567,756	25,706,243	47,821,483		11,668,271		86,763,753
Additions
Disposals or retirements				)					)
Balance at December 31, 2023	1,567,756	26,166,275	47,949,736		12,216,770		87,900,537
Accumulated amortization and<br><br>impairment
Balance at January 1, 2023	-	17,643,661	38,255,701		9,408,287		65,307,649
Additions
Disposals or retirements				)					)
Balance at December 31, 2023	-	20,436,014	39,211,353		10,569,106		70,216,473
Carrying amounts at December 31, 2023	1,567,756	5,730,261	8,738,383		1,647,664		17,684,064

All values are in US Dollars.

For the years ended December 31, 2024 and 2023, the Company did not recognize any impairment loss on goodwill.

32 -

16. BONDS PAYABLE


Domestic unsecured bonds	478,536,000		447,194,000
Less: Discounts on bonds payable		)		)
Less: Current portion		)		)
	453,839,281		439,869,855

All values are in US Dollars.

The major terms of domestic unsecured bonds are as follows:

Issuance	Issuance Period		Coupon<br><br>Rate	Repayment and<br><br>Interest Payment
NT unsecured bonds
101-4	January 2013 to January 2023	3,000,000	1.49%	Bullet repayment; interest payable annually
102-1	February 2013 to February 2023		1.50%	The same as above
102-2	July 2013 to July 2023		1.70%	The same as above
102-4	September 2013 to March 2023		2.05%	The same as above
	September 2013 to September 2023		2.10%	The same as above
109-1	March 2020 to March 2025		0.58%	The same as above
	March 2020 to March 2027		0.62%	The same as above
	March 2020 to March 2030		0.64%	The same as above
109-2	April 2020 to April 2025		0.52%	The same as above
	April 2020 to April 2027		0.58%	The same as above
	April 2020 to April 2030		0.60%	The same as above
109-3	May 2020 to May 2025		0.55%	The same as above
	May 2020 to May 2027		0.60%	The same as above
	May 2020 to May 2030		0.64%	The same as above

All values are in US Dollars.

(Continued)

33 -

Issuance	Tranche	Issuance Period		Coupon<br><br>Rate	Repayment and<br><br>Interest Payment
109-4	A	July 2020 to July 2025	5,700,000	0.58%	Two equal installments in last two years; interest payable annually
	B	July 2020 to July 2027		0.65%	The same as above
	C	July 2020 to July 2030		0.67%	The same as above
109-5	A	September 2020 to September 2025		0.50%	The same as above
	B	September 2020 to September 2027		0.58%	The same as above
	C	September 2020 to September 2030		0.60%	The same as above
109-6<br>(Green bond)	A	December 2020 to December 2025		0.40%	The same as above
	B	December 2020 to December 2027		0.44%	The same as above
	C	December 2020 to December 2030		0.48%	The same as above
109-7	A	December 2020 to December 2025		0.36%	The same as above
	B	December 2020 to December 2027		0.41%	The same as above
	C	December 2020 to December 2030		0.45%	The same as above
110-1	A	March 2021 to March 2026		0.50%	Bullet repayment; interest payable annually
	B	March 2021 to March 2028		0.55%	The same as above
	C	March 2021 to March 2031		0.60%	The same as above
110-2	A	May 2021 to May 2026		0.50%	The same as above
	B	May 2021 to May 2028		0.58%	The same as above
	C	May 2021 to May 2031		0.65%	The same as above
110-3	A	June 2021 to June 2026		0.52%	The same as above
	B	June 2021 to June 2028		0.58%	The same as above
	C	June 2021 to June 2031		0.65%	The same as above
110-4	A	August 2021 to August 2025		0.485%	The same as above
	B	August 2021 to August 2026		0.50%	The same as above
	C	August 2021 to August 2028		0.55%	The same as above
	D	August 2021 to August 2031		0.62%	The same as above

All values are in US Dollars.

(Continued)

34 -

Issuance	Tranche	Issuance Period		Coupon<br><br>Rate	Repayment and<br><br>Interest Payment
110-6	A	October 2021 to April 2026	3,200,000	0.535%	Bullet repayment; interest payable annually
	B	October 2021 to October 2026		0.54%	The same as above
	C	October 2021 to October 2028		0.60%	The same as above
	D	October 2021 to October 2031		0.62%	The same as above
110-7	A	December 2021 to December 2026		0.65%	The same as above
	B	December 2021 to June 2027		0.675%	The same as above
	C	December 2021 to December 2028		0.72%	The same as above
111-1<br>(Green bond)	A	January 2022 to January 2027		0.63%	The same as above
	B	January 2022 to January 2029		0.72%	The same as above
111-2	A	March 2022 to September 2026		0.84%	The same as above
	B	March 2022 to March 2027		0.85%	The same as above
	C	March 2022 to March 2029		0.90%	The same as above
111-3 <br>(Green bond)	-	May 2022 to May 2027		1.50%	The same as above
111-4 <br>(Green bond)	A	July 2022 to July 2026		1.60%	The same as above
	B	July 2022 to July 2027		1.70%	The same as above
	C	July 2022 to July 2029		1.75%	The same as above
	D	July 2022 to July 2032		1.95%	The same as above
111-5	A	August 2022 to June 2027		1.65%	The same as above
	B	August 2022 to August 2027		1.65%	The same as above
	C	August 2022 to August 2029		1.65%	The same as above
	D	August 2022 to August 2032		1.82%	The same as above
111-6 <br>(Green bond)	A	October 2022 to October 2027		1.75%	The same as above
	B	October 2022 to October 2029		1.80%	The same as above
	C	October 2022 to October 2032		2.00%	The same as above

All values are in US Dollars.

(Continued)

35 -

Issuance	Tranche	Issuance Period		Coupon<br><br>Rate	Repayment and<br><br>Interest Payment
112-1<br>(Green bond)	A	March 2023 to March 2028	12,200,000	1.54%	Bullet repayment; interest payable annually
	B	March 2023 to March 2030		1.60%	The same as above
	C	March 2023 to March 2033		1.78%	The same as above
112-2<br>(Green bond)	A	May 2023 to May 2028		1.60%	The same as above
	B	May 2023 to May 2030		1.65%	The same as above
	C	May 2023 to May 2033		1.82%	The same as above
112-3	A	June 2023 to June 2028		1.60%	The same as above
	B	June 2023 to June 2030		1.65%	The same as above
	C	June 2023 to June 2033		1.80%	The same as above
112-4	A	August 2023 to August 2028		1.60%	The same as above
	B	August 2023 to August 2030		1.65%	The same as above
	C	August 2023 to August 2033		1.76%	The same as above
112-5	A	October 2023 to October 2028		1.62%	The same as above
	B	October 2023 to October 2033		1.76%	The same as above
113-1<br>(Green bond)	A	March 2024 to March 2029		1.64%	The same as above
	B	March 2024 to March 2034		1.76%	The same as above
113-2<br>(Green bond)	A	May 2024 to May 2029		1.98%	The same as above
	B	May 2024 to May 2034		2.10%	The same as above

All values are in US Dollars.

(Concluded)

Issuance	Issuance Period	Total Issue Amount (US in Thousands)	Coupon<br><br>Rate	Repayment and<br><br>Interest Payment
US unsecured bonds
109-1	September 2020 to September 2060	US	2.70%	Bullet repayment (callable on the 5th anniversary of the issue date and every anniversary thereafter); interest payable annually
110-5	September 2021 to September 2051		3.10%	The same as above

All values are in US Dollars.

36 -

17. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant to the Act, the Company has made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts. Accordingly, the Company recognized expenses of NT$4,537,289 thousand and NT$4,154,345 thousand for the years ended December 31, 2024 and 2023, respectively.

b. Defined benefit plans

The Company has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the Funds.

Amounts recognized in respect of these defined benefit plans were as follows:

	Years Ended December 31
	2024			2023
Current service cost		153,020			139,101
Net interest expense
Components of defined benefit costs recognized in profit or loss
Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense)			)			)
Actuarial loss arising from experience adjustments
Actuarial (gain) loss arising from changes in financial assumptions			)
Components of defined benefit costs recognized in other comprehensive income			)
Total		131,315			904,748

All values are in US Dollars.

The pension costs of the aforementioned defined benefit plans were recognized in profit or loss by the following categories:

	Years Ended December 31
	2024		2023
Cost of revenue		178,507		182,333
Research and development expenses
General and administrative expenses
Marketing expenses
		275,680		281,392

All values are in US Dollars.

37 -

The amounts arising from the defined benefit obligation of the Company were as follows:


Present value of defined benefit obligation	18,332,160		17,995,066
Fair value of plan assets		)		)
Net defined benefit liability	7,580,657		9,257,224

All values are in US Dollars.

Movements in the present value of the defined benefit obligation were as follows:

	Years Ended December 31
	2024			2023
Balance, beginning of year		17,995,066			17,483,951
Current service cost
Interest expense
Remeasurement:
Actuarial loss arising from experience adjustments
Actuarial (gain) loss arising from changes in financial assumptions			)
Benefits paid from plan assets			)			)
Benefits paid directly by the Company			)			)
Balance, end of year		18,332,160			17,995,066

All values are in US Dollars.

Movements in the fair value of the plan assets were as follows:

	Years Ended December 31
	2024			2023
Balance, beginning of year		8,737,842			8,162,860
Interest income
Remeasurement:
Return on plan assets (excluding amounts included in net interest expense)
Contributions from employer
Benefits paid from plan assets			)			)
Balance, end of year		10,751,503			8,737,842

All values are in US Dollars.

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


Cash	1,569,719	1,351,744
Equity instruments
Debt instruments
	10,751,503	8,737,842

All values are in US Dollars.

38 -

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions of the actuarial valuation were as follows:

	Measurement Date
	December 31,<br><br>2024	December 31,<br><br>2023
Discount rate	1.60%	1.40%
Future salary increase rate	4.00%	4.00%

Through the defined benefit plans under the R.O.C. Labor Standards Law, the Company is exposed to the following risks:

39 -

18. EQUITY

a. Capital stock

	December 31,<br><br>2024		December 31,<br><br>2023
Authorized shares (in thousands)		28,050,000		28,050,000
Authorized capital	$	280,500,000	$	280,500,000
Issued and paid shares (in thousands)		25,932,733		25,932,071
Issued capital	$	259,327,332	$	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, the Company reclaimed 1,402 thousand and 419 thousand employee restricted shares, respectively, that were unvested. On June 5, 2024 and May 9, 2023, the Company’s Board of Directors resolved to cancel the aforementioned shares. Subsequently, the Company 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 18(e) for further information.

As of December 31, 2024, the Company’s total issued and outstanding ADSs were 1,062,769 thousand units, representing 5,313,844 thousand common shares.

b. Capital surplus

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


May be used to offset a deficit, distributed as cash dividends,<br><br>or transferred to share capital
Additional paid-in capital	24,809,704	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)

40 -


May only be used to offset a deficit
From share of changes in equities of subsidiaries	4,108,958	4,199,936
From share of changes in equities of associates
Donations - unclaimed dividend
May not be used for any purpose
Employee restricted shares
	73,260,765	69,876,381

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

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

The Company’s Articles of Incorporation also provide that profits of the Company may be distributed by way of cash dividend and/or stock dividend. However, distribution of earnings shall be made preferably by way of cash dividend. Distribution of earnings may also be made by way of stock dividend, provided that the ratio for stock dividend shall not exceed 50% of the total distribution.

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 and gain or loss from changes in fair value of hedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses.

The appropriations of 2024, 2023 and 2022 quarterly earnings have been approved by the Company’s Board of Directors in its meeting, respectively. The appropriations and cash dividends per share were as follows:

	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Resolution Date of TSMC’s	of 2024		of 2024		of 2024		of 2024
Board of Directors in its	February 12,		November 12,		August 13,		May 10,
meeting	2025		2024		2024		2024
Special capital reserve	$	-	$	-	$	-	$	(28,020,822	)
Cash dividends to shareholders	$	116,697,300	$	116,697,300	$	103,721,521	$	103,734,517
Cash dividends per share (NT$)	$	4.50	$	4.50	$	4.00	$	4.00

41 -

	Fourth Quarter		Third Quarter			Second Quarter			First Quarter
Resolution Date of the	of 2023		of 2023			of 2023			of 2023
Company’s Board of	February 6,		November 14,			August 8,			May 9,
Directors in its 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 the	of 2022		of 2022			of 2022			of 2022
Company’s Board of	February 14,		November 8,			August 9,			May 10,
Directors in its 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

d. Others

Changes in others were as follows:

	Year Ended December 31, 2024
	Foreign Currency Translation Reserve			Unrealized Gain (Loss) on Financial Assets at FVTOCI			Gain (Loss) on Hedging Instruments			Unearned Stock-BasedEmployee Compensation			Total
Balance, beginning of year		(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
Disposal of investments in equity instruments at fair value through other comprehensive income						)									)
Gain (loss) arising on changes in the fair value of hedging instruments
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 subsidiaries and associates									)
Income tax effect						)									)
Balance, end of year		40,262,995			(1,160,176	)		1,310,307			(1,708,079	)		38,705,047

All values are in US Dollars.

42 -

	Year Ended December 31, 2023
	Foreign Currency Translation Reserve			Unrealized Gain (Loss) on Financial Assets at FVTOCI			Gain (Loss) on Hedging Instruments			Unearned Stock-BasedEmployee Compensation			Total
Balance, beginning of year		(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						)									)
Disposal of investments in equity instruments at fair value through other comprehensive income						)									)
Gain (loss) arising on changes in the fair value of hedging instruments
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 subsidiaries and associates									)
Income tax effect						)									)
Balance, end of year		(25,316,769	)		(4,099,928	)		1,395,875			(293,434	)		(28,314,256	)

All values are in US Dollars.

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

e. Treasury stock

For the Company’s shareholders’ interests, the Company’s Board of Directors approved a share buyback program on June 5, 2024 to repurchase 3,249 thousand shares. The Company has completed this share buyback program during the second quarter of 2024. On August 13, 2024, the Company’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.

19. NET REVENUE

a. Disaggregation of revenue from contracts with customers

	Years Ended December 31
Product	2024		2023
Wafer		2,510,017,254		1,881,677,167
Others
		2,880,383,350		2,153,285,095

All values are in US Dollars.

	Years Ended December 31
Geography	2024		2023
Taiwan		270,413,546		149,777,343
United States
China
Japan
Europe, the Middle East and Africa
Others
		2,880,383,350		2,153,285,095

All values are in US Dollars.

43 -

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

	Years Ended December 31
Platform	2024		2023
High Performance Computing		1,468,508,854		931,334,614
Smartphone
Internet of Things
Automotive
Digital Consumer Electronics
Others
		2,880,383,350		2,153,285,095

All values are in US Dollars.

	Years Ended December 31
Resolution	2024		2023
3-nanometer		456,947,662		106,434,419
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		2,510,017,254		1,881,677,167

All values are in US Dollars.

b. Contract balances

	December 31,<br><br>2024		December 31,<br><br>2023		January 1,<br><br>2023
Contract liabilities (classified under accrued expenses and other current liabilities)	$	81,204,467	$	47,760,098	$	62,380,554

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$46,809,520 thousand and NT$61,349,317 thousand for the years ended December 31, 2024 and 2023, respectively.

44 -

c. Temporary receipts from customers


Current portion (classified under accrued expenses and other current liabilities)	198,602,570	114,639,514
Noncurrent portion (classified under other noncurrent liabilities)
	274,013,029	278,294,642

All values are in US Dollars.

d. Refund liabilities

Estimated sales returns and other allowances is made and adjusted based on historical experience and the consideration of varying contractual terms. As of December 31, 2024 and 2023, the aforementioned refund liabilities amounted to NT$60,197,285 thousand and NT$36,144,370 thousand (classified under accrued expenses and other current liabilities), respectively.

20. INTEREST INCOME

	Years Ended December 31
	2024		2023
Interest income
Cash and cash equivalents		27,032,709		17,414,490
Financial assets at amortized cost
		27,338,300		17,825,551

All values are in US Dollars.

21. FINANCE COSTS

	Years Ended December 31
	2024			2023
Interest expense
Corporate bonds		6,057,480			5,019,826
Lease liabilities
Bank loans
Others
Less: Capitalized interest under property, plant and equipment			)			)
		5,400,986			4,600,793

All values are in US Dollars.

Information about capitalized interest is as follows:

	Years Ended December 31
	2024	2023
Capitalization rate	1.20%-1.32%	1.08%-1.20%

45 -

22. OTHER GAINS AND LOSSES, NET

	Years Ended December 31
	2024			2023
Gain on disposal of investments accounted for using equity method, net		7,126			-
Gain (loss) on financial instruments at FVTPL, net
Mandatorily measured at FVTPL			)
Provision for (reversal of) expected credit loss for financial assets
Financial assets at amortized cost						)
Other gains, net
		(7,663,446	)		7,594,132

All values are in US Dollars.

23. INCOME TAX

a. Income tax expense recognized in profit or loss

Income tax expense consisted of the following:

	Years Ended December 31
	2024			2023
Current income tax expense
Current tax expense recognized in the current year		235,089,738			134,436,152
Income tax adjustments for prior years			)
Other income tax adjustments

Deferred income tax expense
Income tax adjustments for prior years
The origination and reversal of temporary differences

Income tax expense recognized in profit or loss		234,341,266			139,273,572

All values are in US Dollars.

A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:

	Years Ended December 31
	2024			2023
Income before tax		1,407,608,969			977,771,236
Income tax expense at the statutory rate		281,521,794			195,554,247
Tax effect of adjusting items:
Adjusting items in determining taxable income			)			)
Additional income tax on unappropriated earnings
The origination and reversal of temporary differences
Income tax credits			)			)

All values are in US Dollars.

(Continued)

46 -

	Years Ended December 31
	2024			2023
Income tax adjustments on prior years		(3,218,778	)		34,145
Other income tax adjustments
Income tax expense recognized in profit or loss		234,341,266			139,273,572

All values are in US Dollars.

(Concluded)

For the years ended December 31, 2024 and 2023, the Company applied a tax rate of 20% subject to the R.O.C. Income Tax Law.

b. Deferred income tax balance

The analysis of deferred income tax assets and liabilities was as follows:


Deferred income tax assets
Temporary differences
Depreciation	32,784,174		40,726,261
Refund liability
Unrealized exchange losses
Unrealized loss on inventories
Net defined benefit liability
Others
	60,178,345		62,356,061
Deferred income tax liabilities
Temporary differences
Subsidiary’s projected earnings distribution	(3,925,320	)	-

All values are in US Dollars.

	Year Ended December 31, 2024
			Recognized in
	Balance,					Other
	Beginning of					Comprehensive			Balance,
	Year		Profit or Loss			Income			End of Year
Deferred income tax assets
Temporary differences
Depreciation		40,726,261		(7,942,087	)		-			32,784,174
Refund liability
Unrealized exchange losses
Unrealized loss on inventories					)
Net defined benefit liability					)			)
Others								)
		62,356,061		(2,138,847	)		(38,869	)		60,178,345
Deferred income tax liabilities
Temporary differences
Subsidiary’s projected earnings distribution		-		(3,925,320	)		-			(3,925,320	)

All values are in US Dollars.

47 -

	Year Ended December 31, 2023
				Recognized in
	Balance,						Other
	Beginning of						Comprehensive			Balance,
	Year			Profit or Loss			Income			End of Year
Deferred income tax assets
Temporary differences
Depreciation		44,989,153			(4,262,892	)		-			40,726,261
Refund liability						)
Unrealized exchange losses
Unrealized loss on inventories
Net defined benefit liability						)
Others						)			)
		67,708,061			(5,476,646	)		124,646			62,356,061
Deferred income tax liabilities
Temporary differences
Others		(908,273	)		908,273			-			-

All values are in US Dollars.

c. The deductible temporary differences for which no deferred income tax assets have been recognized

As of December 31, 2024 and 2023, the aggregate deductible temporary differences for which no deferred income tax assets have been recognized amounted to NT$52,979,425 thousand and NT$52,686,244 thousand, respectively.

d. The information of unrecognized deferred income tax liabilities associated with investments

e. Income tax examination

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

24. EARNINGS PER SHARE

	Years Ended December 31
	2024		2023
Basic EPS	$	45.25	$	32.34
Diluted EPS	$	45.25	$	32.34

EPS is computed as follows:

	Years Ended December 31
	2024		2023
Basic EPS
Net income available to common shareholders		1,173,267,703		838,497,664
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)
Basic EPS (in dollars)		45.25		32.34

All values are in US Dollars.

(Continued)

48 -

	Years Ended December 31
	2024		2023
Diluted EPS
Net income available to common shareholders		1,173,267,703		838,497,664
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)
Effects of all dilutive potential common shares (in thousands)
Weighted average number of common shares used in the computation of diluted EPS (in thousands)
Diluted EPS (in dollars)		45.25		32.34

All values are in US Dollars.

(Concluded)

25. 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	-	-	-
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 or the subsidiaries on the last date of each vesting period;

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

•certain employee performance metrics and the Company’s or the subsidiaries’ business performance metrics are met.

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

49 -

The Company’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:

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 year		-		-		2,110			694
Issuance of stocks		2,353		2,960		-			-
Canceled shares		-		-		(1,055	)		(347	)
Balance, end of year		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 26 for the compensation costs of the RSAs recognized by the Company.

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 the Company’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 the Company’s common share when vested.

50 -

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.

	Years Ended December 31
	2024						2023
	2023 Plan		2022 Plan		2021 Plan		2022 Plan		2021 Plan
Stock price at measurement date <br>(in dollars)		1,090		1,090		1,090		593		593
Expected price volatility
Residual life
Risk-free interest rate

All values are in US Dollars.

Refer to Note 26 for the compensation costs of the cash-settled share-based payment recognized by the Company. As of December 31, 2024 and 2023, the liabilities under cash-settled share-based payment arrangement amounted to NT$455,728 thousand and NT$62,695 thousand, respectively.

26. ADDITIONAL INFORMATION OF EXPENSES BY NATURE

	Years Ended December 31
	2024		2023
a.Depreciation of property, plant and equipment and right-of-use<br><br>assets
Recognized in cost of revenue		590,881,553		471,343,567
Recognized in operating expenses
Recognized in other operating income and expenses
		625,747,423		500,300,771
b. Amortization of intangible assets
Recognized in cost of revenue		6,320,646		6,515,540
Recognized in operating expenses
		9,129,469		9,197,976
c. Employee benefits expenses
Post-employment benefits
Defined contribution plans		4,537,289		4,154,345
Defined benefit plans

Share-based payments
Equity-settled
Cash-settled

Other employee benefits
		254,914,614		200,590,589

All values are in US Dollars.

(Continued)

51 -

	Years Ended December 31
	2024		2023
Employee benefits expense summarized by function
Recognized in cost of revenue		152,156,491		122,143,462
Recognized in operating expenses
		254,914,614		200,590,589

All values are in US Dollars.

(Concluded)

According to the Company’s Articles of Incorporation, the Company shall allocate compensation to directors and profit sharing bonus to employees of the Company not more than 0.3% and not less than 1% of annual profits during the period, respectively.

The Company accrued profit sharing bonus to employees based on a percentage of net income before income tax, profit sharing bonus to employees and compensation to directors during the period; compensation to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual parent company only financial statements are authorized for issue, the differences are recorded as a change in accounting estimate. Accrued profit sharing bonus to employees is illustrated below:

	Years Ended December 31
	2024		2023
Profit sharing bonus to employees	$	70,296,283	$	50,090,533

The Company’s profit sharing bonus to employees and compensation to directors for 2024, 2023 and 2022 had been approved by the Board of Directors of the Company, as illustrated below:

	Years Ended December 31
	2024		2023		2022
Resolution Date of the Company’s Board of	February 12,		February 6,		February 14,
Directors in its meeting	2025		2024		2023
Profit sharing bonus to employees	$	70,296,283	$	50,090,533	$	60,702,047
Compensation to directors	$	358,989	$	551,955	$	690,128

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2024, 2023 and 2022, respectively.

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

27. CASH FLOW INFORMATION

a. Non-cash transactions

	Years Ended December 31
	2024			2023
Additions of property, plant and equipment		711,552,671			519,821,550
Exchange of assets			)			)
Changes in payables to contractors and equipment suppliers			)
Transferred to initial carrying amount of hedged items
Capitalized interests			)			)
Payments for acquisition of property, plant and equipment		644,734,446			634,971,543

All values are in US Dollars.

52 -

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 December 31, 2024
Hedging financial liabilities- bank loans		27,290,400		(26,496,570	)		(793,830	)		-		-		-
Bonds payable
Lease liabilities					)			)
Total		503,239,532		(1,820,060	)		3,244,212			2,879,155		398,627		507,941,466

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 December 31, 2023
Hedging financial liabilities- bank loans		-		27,908,580			(618,180	)		-		-		27,290,400
Bonds payable
Lease liabilities					)
Total		408,853,736		92,990,649			(550,264	)		1,552,584		392,827		503,239,532

All values are in US Dollars.

Note: Other changes include amortization of bonds payable and financial cost of lease liabilities.

28. CAPITAL MANAGEMENT

The Company’s capital management policy remained unchanged in 2024. The Company’s current credit ratings are AA- from Standard & Poor’s and Aa3 from Moody’s, same as those as of December 31, 2023.

29. FINANCIAL INSTRUMENTS

a. Categories of financial instruments


Financial assets
FVTPL (Note 1)	13,174	624,685
FVTOCI (Note 2)
Amortized cost (Note 3)
	1,313,143,593	951,949,968
Financial liabilities
FVTPL (Note 4)	439,110	25,673
Hedging financial liabilities
Amortized cost (Note 5)
	1,371,060,084	1,151,943,315

All values are in US Dollars.

Note 1: Financial assets mandatorily measured at FVTPL.

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

53 -

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

Note 4: Held for trading.

Note 5: Including accounts payable (including related parties), payables to contractors and equipment suppliers, cash dividends payable, accrued expenses and other current liabilities, bonds payable, guarantee deposits and other noncurrent liabilities.

b. Financial risk management objectives

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 dollars, would have an adverse impact on the revenue and operating profit as expressed in NT dollar. The Company uses foreign currency derivative contracts and non-derivative financial instruments, such as currency forwards, currency swaps and bank loans denominated in foreign currency, to protect against currency exchange rate risks associated with non-NT dollar-denominated monetary assets and liabilities, certain forecasted transactions, and net investments in foreign operations. These hedges reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements on the assets and liabilities.

Based on a sensitivity analysis performed on the Company’s total monetary assets and liabilities for the years ended December 31, 2024 and 2023, a hypothetical adverse foreign currency exchange rate change of 10% would have decreased its net income by NT$2,471,332 thousand and NT$726,145 thousand, respectively, after taking into account hedges and offsetting positions.

Interest rate risk

The Company is exposed to interest rate risks primarily in relation to its bank deposits and outstanding debt. Changes in interest rates affect the interest earned on the Company’s bank deposits, as well as the interest paid on its debt. Because all of the Company’s bonds issued are fixed-rate and measured at amortized cost, changes in interest rates would not affect the future cash flows or the carrying amount.

54 -

Other price risk

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

Assuming a hypothetical decrease of 10% in prices of the equity investments at the end of the reporting period for the years ended December 31, 2024 and 2023, the other comprehensive income would have decreased by NT$84,668 thousand and NT$76,876 thousand, respectively.

d. Credit risk management

Business related credit risk

As of December 31, 2024 and 2023, the Company’s ten largest customers accounted for 84% and 85% of accounts receivable, respectively. The Company considers the concentration of credit risk for the remaining accounts receivable not material.

Financial credit risk

Category	Description	Basis for Recognizing<br><br>Expected Credit Loss	Expected<br><br>Credit Loss<br><br>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	-

55 -

For the years ended December 31, 2024 and 2023, the expected credit loss decreased NT$2,551 thousand and increased NT$5,789 thousand, respectively. The changes were mainly due to increased investment amount and adjusted investment portfolio.

e. Liquidity risk management

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


December 31, 2024
Non-derivative financial liabilities
Accounts payable (including related parties)	74,191,888		-	-	-	74,191,888
Payables to contractors and equipment suppliers
Accrued expenses and other current liabilities
Bonds payable
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)
Others

Derivative financial instruments
Forward exchange contracts
Outflows
Inflows		)					)

	623,358,042		249,992,709	138,948,773	248,658,374	1,260,957,898
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
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)
Others

Derivative financial instruments
Forward exchange contracts
Outflows
Inflows		)					)
		)					)
	375,512,217		266,556,090	201,444,016	246,651,391	1,090,163,714

All values are in US Dollars.

56 -

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
December 31, 2024
Lease liabilities	$	9,910,952	$	6,805,189	$	3,540,742	$	116,827	$	20,373,710
December 31, 2023
Lease liabilities	$	9,629,306	$	7,088,110	$	4,101,046	$	318,208	$	21,136,670

f. Fair value of financial instruments

1) Fair value measurements recognized in the parent company only balance sheets

Fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

•Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;

•Level 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).

2) Fair value of financial instruments that are measured at fair value on a recurring basis

Fair value hierarchy

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

	December 31, 2024
	Level 2		Level 3		Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts		13,174		-		13,174
Financial assets at FVTOCI
Investments in equity instruments
Non-publicly traded equity investments		-		1,058,347		1,058,347
Notes and accounts receivable, net
		5,912,584		1,058,347		6,970,931
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts		439,110		-		439,110

All values are in US Dollars.

57 -

	December 31, 2023
	Level 2		Level 3		Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts		624,685		-		624,685
Financial assets at FVTOCI
Investments in equity instruments
Non-publicly traded equity investments		-		960,950		960,950
Notes and accounts receivable, net
		5,411,317		960,950		6,372,267
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts		25,673		-		25,673

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. Reconciliations for the years ended December 31, 2024 and 2023 were as follows:

	Years Ended December 31
	2024		2023
Balance, beginning of year		960,950		1,014,741
Recognized in other comprehensive income or loss					)
Disposals and proceeds from return of capital of investments					)
Balance, end of year		1,058,347		960,950

All values are in US Dollars.

Valuation techniques and assumptions used in Level 2 fair value measurement

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

•Forward exchange contracts are measured using forward exchange rates and discount rates derived from quoted market prices.

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

Valuation techniques and assumptions used in Level 3 fair value measurement

The fair values of non-publicly traded equity investments are mainly determined by using the asset approach and market approach.

The asset approach takes into account the net asset value measured at the fair value by independent parties.

58 -

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 parent company only financial statements that are not measured at fair value approximate their fair values.

Fair value hierarchy

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

	December 31, 2024
	Carrying		Level 2
	Amount		Fair Value
Financial assets
Financial assets at amortized costs
Commercial paper	$	14,208,158	$	14,222,713
Financial liabilities
Financial liabilities at amortized costs
Bonds payable	$	478,236,662	$	444,114,272
	December 31, 2023
---	---	---	---	---
	Carrying		Level 2
	Amount		Fair Value
Financial assets
Financial assets at amortized costs
Commercial paper	$	18,371,705	$	18,385,329
Financial liabilities
Financial liabilities at amortized costs
Bonds payable	$	446,867,565	$	418,841,652

Valuation techniques and assumptions used in Level 2 fair value measurement

The fair value of the Company’s bonds payable is determined by quoted market prices provided by third party pricing services.

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

59 -

30. RELATED PARTY TRANSACTIONS

The significant transactions between the Company and its related parties, other than those disclosed in other notes, are summarized as follows:

a. Related party name and categories

Related Party Name	Related Party Categories
TSMC Arizona	Subsidiaries
TSMC China	Subsidiaries
TSMC Nanjing	Subsidiaries
JASM	Subsidiaries
ESMC	Subsidiaries
VisEra Tech	Subsidiaries
TSMC North America	Subsidiaries
TSMC 3DIC	Subsidiaries
TSMC Europe	Subsidiaries
TSMC JDC	Subsidiaries
TSMC Japan	Subsidiaries
TSMC Korea	Subsidiaries
TSMC Design Technology Canada Inc. (TSMC Canada)	Indirect Subsidiaries
TSMC Technology, Inc. (TSMC Technology)	Indirect Subsidiaries
TSMC Washington, LLC (TSMC Washington)	Indirect Subsidiaries
GUC and its subsidiaries (GUC)	Associates
VIS and its subsidiaries (VIS)	Associates
SSMC	Associates
Xintec	Associates

b. Net revenue

		Years Ended December 31
		2024		2023
Item	Related Party Name/Categories
Net revenue from sale of goods	TSMC North America		2,057,313,208		1,459,559,406
	Associates
	Other subsidiaries
			2,066,082,970		1,469,042,641

All values are in US Dollars.

c. Purchases

	Years Ended December 31
	2024		2023
Related Party Categories
Subsidiaries		104,615,531		96,198,620
Associates
		109,235,152		100,760,826

All values are in US Dollars.

60 -

d. Receivables from related parties


Item	Related Party Name/Categories
Receivables from related	TSMC North America	209,056,572	154,789,324
parties	Associates
	Other subsidiaries
		210,300,175	155,261,877
Other receivables from related	TSMC North America	5,050,233	3,747,684
parties	Other subsidiaries
	Associates
		5,313,087	4,360,322

All values are in US Dollars.

e. Other noncurrent assets

		December 31,<br><br>2024		December 31,<br><br>2023
Item	Related Party Name
Temporary payments	JASM	$	-	$	12,132,766

f. Payables to related parties


Item	Related Party Name/Categories
Payables to related parties	TSMC Nanjing	4,473,370	5,064,282
	TSMC China
	Xintec
	Other subsidiaries
	Other associates
		10,137,811	10,119,695

All values are in US Dollars.

g. Accrued expenses and other current liabilities


Item	Related Party Name/Categories
Other payables and other	Subsidiaries	1,489,450	1,150,882
current liabilities	Associates
		1,489,450	2,816,995

All values are in US Dollars.

(Continued)

61 -


Temporary receipts	TSMC North America	178,396,827	99,904,122
	Associates
		179,068,828	100,057,857

All values are in US Dollars.

(Concluded)

h. Other noncurrent liabilities


Item	Related Party Name
Temporary receipts	TSMC North America	71,433,597	134,052,101
	Associates
		71,843,197	134,205,836

All values are in US Dollars.

i. Others

		Years Ended December 31
		2024		2023
Item	Related Party Categories
Manufacturing expenses	Associates		5,221,103		5,032,445
	Subsidiaries
			5,238,292		5,043,949
Research and development	Subsidiaries		7,181,542		5,865,252
expenses	Associates
			7,578,600		6,170,325

All values are in US Dollars.

The Company deferred the disposal gain or loss derived from sales of property, plant and equipment to related parties using equity method, and then recognized such gain or loss over the depreciable lives of the disposed assets.

62 -

j. Compensation of key management personnel

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

	Years Ended December 31
	2024		2023
Short-term employee benefits		4,230,478		3,271,057
Post-employment benefits
Share-based payments
		5,591,045		3,800,073

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 the Company in accordance with the individual performance and market trends.

31. 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 the Company can use up to 35% of the Company’s capacity provided the Company’s outstanding commitments to its customers are not prejudiced. The term of 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. The Company’s equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips spun-off its semiconductor subsidiary which was renamed as NXP B.V. Further, the Company and NXP B.V. purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, the Company and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. The Company and NXP B.V. are required, in the aggregate, to purchase at least 70% of SSMC’s capacity, but the Company alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment 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.The Company 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.The Company entered into a long-term purchase agreement of equipment. The relative fulfillment quantity and price are specified in the agreement.

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

f.As of the end of reporting period, the Company provided endorsement guarantees of NT$2,726,733 thousand to its subsidiary, TSMC North America, in respect of providing endorsement guarantees for office leasing contract.

63 -

g.As of the end of reporting period, the Company provided a NT$245,760,000 thousand endorsement guarantee for its subsidiary, TSMC Global, in respect of its issuance of US dollar-denominated senior unsecured corporate bonds.

h.As of the end of reporting period, the Company provided a NT$470,136,259 thousand endorsement guarantee for its subsidiary, TSMC Arizona, in respect of its issuance of US dollar-denominated senior unsecured corporate bonds and operation needs.

i.The Company entrusted financial institutions to provide performance guarantees mainly for import and export of goods, lease agreement and energy purchase agreement. As of December 31, 2024 and 2023, the aforementioned guarantee amounted to NT$10,315,609 thousand and NT$8,012,973 thousand, respectively.

32. SIGNIFICANT LOSS FROM DISASTER

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

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


December 31, 2024
Financial assets
Monetary items
	17,852,987	32.768	585,006,683
		34.102
		0.2092
Financial liabilities
Monetary items
		32.768
		34.102
		0.2092

All values are in Euros.

(Continued)

64 -


December 31, 2023
Financial assets
Monetary items
	13,930,953	30.747	428,335,022
		34.175
		0.2192
Financial liabilities
Monetary items
		30.747
		34.175
		0.2192

All values are in Euros.

(Concluded)

Note: Exchange rate represents the number of NT dollar for which one foreign currency could be exchanged.

Please refer to the parent company only statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss for the years ended December 31, 2024 and 2023, respectively. Since there were varieties of foreign currency transactions of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact.

34. ADDITIONAL DISCLOSURES

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

a.Financings provided: See Table 1 attached;

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

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

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

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

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

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

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

65 -

i.Information about the derivative financial instruments transaction: See Notes 7 and 9;

j.Names, locations, and related information of investees over which the Company exercises significant influence (excluding information on investment in mainland China): See Table 8 attached;

k.Information on investment in mainland China

l.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 10 attached.

35. OPERATING SEGMENTS INFORMATION

The Company has provided the operating segments disclosure in the consolidated financial statements.

66 -

TABLE 1

Taiwan Semiconductor Manufacturing Company Limited and Investees

FINANCINGS PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 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)				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		$<br><br>(US$	98,304,000<br><br>3,000,000	$<br><br>)							-	The need for short-term financing		-	Capacity installation and working capital		-		-		-		428,854,517		857,709,033
1		TSMC China	TSMC Nanjing	Other receivables from related parties	Yes		$<br><br>(RMB<br><br>(US$	54,256,720<br><br>8,800,000<br><br>450,000	$<br><br>)&<br><br>)	(RMB(US	41,685,000<br><br>6,000,000<br><br>450,000	$<br><br>)&<br><br>)	(RMB	26,939,400<br><br>6,000,000	)	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		$<br><br>(US$	1,966,080<br><br>60,000	$<br><br>)	(US	1,966,080<br><br>60,000	$<br><br>)	(US	983,040<br><br>30,000	)	-	The need for short-term financing			Operating capital				-

All values are in US Dollars.

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

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

67 -

TABLE 2

Taiwan Semiconductor Manufacturing Company Limited and Investees

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
No.		Endorsement/<br><br>Guarantee<br><br>Provider		Guaranteed Party		Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party(Notes 1 and 2)		Maximum<br><br>Balance <br>for the Period<br>(Foreign<br><br>Currencies in<br><br>Thousands)<br><br>(Note 3)			Ending Balance<br>(Foreign<br><br>Currencies in<br><br>Thousands)<br><br>(Note 3)			Amount Actually Drawn(US in Thousands)		Amount of Endorsement/ Guarantee Collateralized by Properties		Ratio of<br><br>Accumulated<br><br>Endorsement/<br><br>Guarantee to Net<br><br>Equity per<br><br>Latest Financial<br><br>Statements		Maximum Endorsement/ Guarantee Amount Allowable(Notes 1 and 2)		Guarantee<br><br>Provided by<br><br>Parent<br><br>Company	Guarantee<br><br>Provided by<br><br>A Subsidiary	Guarantee<br><br>Provided to<br><br>Subsidiaries<br><br>in Mainland<br><br>China
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Name		Nature of<br><br>Relationship
0		TSMC		TSMC North America	Subsidiary		1,715,418,067	$<br><br>(US$	2,726,733<br><br>83,213	)	$<br><br>(US$	2,726,733<br><br>83,213	)	(US	)		-		0.06%		1,715,418,067	Yes	No	No
				TSMC Global	Subsidiary			(US$	245,760,000<br><br>7,500,000	)	(US$	245,760,000<br><br>7,500,000	)	(US	)				5.73%			Yes	No	No
				TSMC Arizona	Subsidiary			(US$	470,136,259<br><br>14,347,420	)	(US$	470,136,259<br><br>14,347,420	)	(US	)				10.96%			Yes	No	No
1		TSMC Japan		TSMC JDC	The same parent company			(JPY	276,144<br><br>1,320,000	)	(JPY	276,144<br><br>1,320,000	)	(	)				0.01%			No	No	No

All values are in US Dollars.

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

68 -

TABLE 3

Taiwan Semiconductor Manufacturing Company Limited and Investees

MARKETABLE SECURITIES HELD

DECEMBER 31, 2024<br><br>(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	December 31, 2024											Note
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Shares/Units<br><br>(In Thousands)				Carrying Value<br><br>(Foreign Currencies in Thousands)								Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC		Non-publicly traded equity investments
		United Industrial Gases Co., Ltd.		-		Financial assets at fair value through other comprehensive income		21,230			505,114			10		505,114
		Shin-Etsu Handotai Taiwan Co., Ltd.		-		〃		10,500		448,560				7
		Global Investment Holding Inc.		-		〃		10,442		104,673				6
		Commercial paper
		Cathay Financial Holding Co., Ltd.		-		Financial assets at amortized cost		924		9,185,663				N/A
		Formosa Chemicals & Fibre Corporation		-		〃		250		2,479,351				N/A
		China Steel Corporation		-		〃		120		1,197,878				N/A
		Formosa Plastics Corporation		-		〃		100		996,353				N/A
		Nan Ya Plastics Corporation		-		〃		35		348,913				N/A
TSMC Partners		Fund
		Carbon Nature SCSp		-		Financial assets at fair value through Profit or Loss		-	US			11,413		18	US		11,413
		Matter Venture Partners Fund I, L.P.		-		〃		-	US			8,088		7	US		8,088
		Imprint Nature-Based Opportunities Offshore SCSp		-		〃		-	US			7,567		20	US		7,567
		Non-publicly traded equity investments
		Shanghai Walden Venture Capital Partnership (Limited Partnership)		-		Financial assets at fair value through other comprehensive income		-	US			20,014		6	US		20,014
		Walden Technology Ventures Investments II, L.P.		-		〃		-	US			13,512		9	US		13,512
		Walden Technology Ventures Investments III, L.P.		-		〃		-	US			11,688		4	US		11,688
		Tela Innovations		-		〃		6,942	US			-		22	US		-
		Publicly traded stocks
		ARM Holdings plc		-		Financial assets at fair value through other comprehensive income		1,111	US			137,026		-	US		137,026
		Movella Holdings Inc.		-		〃		3,095	US			62		6	US		62
TSMC Global		Corporate bond
		Bank of America Corporation		-		Financial assets at fair value through other comprehensive income		-	US			95,674		N/A	US		95,674
		Morgan Stanley		-		〃		-	US			87,312		N/A	US		87,312
		Wells Fargo & Company		-		〃		-	US			74,617		N/A	US		74,617
		The Goldman Sachs Group, Inc.		-		〃		-	US			73,642		N/A	US		73,642
		JPMorgan Chase & Co.		-		〃		-	US			72,101		N/A	US		72,101
		Citigroup Inc.		-		〃		-	US			56,810		N/A	US		56,810
		HSBC Holdings plc		-		〃		-	US			52,845		N/A	US		52,845
		Hyundai Capital America		-		〃		-	US			39,105		N/A	US		39,105
		BNP Paribas SA		-		〃		-	US			38,517		N/A	US		38,517
		Lloyds Banking Group plc		-		〃		-	US			36,440		N/A	US		36,440
		Sumitomo Mitsui Trust Bank, Limited		-		〃		-	US			36,329		N/A	US		36,329
		Barclays PLC		-		〃		-	US			35,715		N/A	US		35,715
		Nationwide Building Society		-		〃		-	US			35,644		N/A	US		35,644

All values are in US Dollars.

(Continued)

69 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		NatWest Group plc	-		Financial assets at fair value through other comprehensive income	-		US$	34,193		N/A	US$	34,193
		Principal Life Global Funding II	-		〃	-		US$	33,881		N/A	US$	33,881
		American Express Company	-		〃	-		US$	31,036		N/A	US$	31,036
		Banco Santander, S.A.	-		〃	-		US$	30,804		N/A	US$	30,804
		BPCE SA	-		〃	-		US$	30,045		N/A	US$	30,045
		Toyota Motor Credit Corporation	-		〃	-		US$	29,997		N/A	US$	29,997
		Credit Agricole SA London Branch	-		〃	-		US$	28,366		N/A	US$	28,366
		Sumitomo Mitsui Financial Group, Inc.	-		〃	-		US$	26,118		N/A	US$	26,118
		AIG Global Funding	-		〃	-		US$	25,521		N/A	US$	25,521
		Athene Global Funding	-		〃	-		US$	24,758		N/A	US$	24,758
		COÖPERATIEVE RABOBANK U.A., NEW YORK BRANCH	-		〃	-		US$	24,228		N/A	US$	24,228
		Deutsche Bank AG - New York Branch	-		〃	-		US$	23,782		N/A	US$	23,782
		The Toronto-Dominion Bank	-		〃	-		US$	23,563		N/A	US$	23,563
		Penske Truck Leasing Co., L.P.	-		〃	-		US$	23,519		N/A	US$	23,519
		Volkswagen Group of America Finance, LLC	-		〃	-		US$	22,284		N/A	US$	22,284
		Banque Fédérative du Crédit Mutuel	-		〃	-		US$	21,960		N/A	US$	21,960
		Equitable Financial Life Global Funding	-		〃	-		US$	21,840		N/A	US$	21,840
		Glencore Funding LLC	-		〃	-		US$	21,086		N/A	US$	21,086
		Royal Bank of Canada	-		〃	-		US$	20,863		N/A	US$	20,863
		Capital One Financial Corporation	-		〃	-		US$	20,724		N/A	US$	20,724
		General Motors Financial Company, Inc.	-		〃	-		US$	20,625		N/A	US$	20,625
		The Bank of Nova Scotia	-		〃	-		US$	20,432		N/A	US$	20,432
		Bunge Limited Finance Corp.	-		〃	-		US$	20,202		N/A	US$	20,202
		Danske Bank A/S	-		〃	-		US$	20,157		N/A	US$	20,157
		RGA Global Funding	-		〃	-		US$	19,988		N/A	US$	19,988
		ABN AMRO Bank N.V.	-		〃	-		US$	19,540		N/A	US$	19,540
		Daimler Trucks Finance North America LLC	-		〃	-		US$	19,288		N/A	US$	19,288
		Bank of Montreal	-		〃	-		US$	18,228		N/A	US$	18,228
		UnitedHealth Group Incorporated	-		〃	-		US$	18,151		N/A	US$	18,151
		Mitsubishi UFJ Financial Group, Inc.	-		〃	-		US$	18,083		N/A	US$	18,083
		Guardian Life Global Funding	-		〃	-		US$	17,817		N/A	US$	17,817
		Metropolitan Life Global Funding I	-		〃	-		US$	17,734		N/A	US$	17,734
		Fédération des caisses Desjardins du Québec	-		〃	-		US$	17,415		N/A	US$	17,415
		Enel Finance International N.V.	-		〃	-		US$	17,065		N/A	US$	17,065
		NatWest Markets Plc	-		〃	-		US$	16,386		N/A	US$	16,386
		Coöperatieve Rabobank U.A.	-		〃	-		US$	16,173		N/A	US$	16,173
		Mizuho Financial Group, Inc.	-		〃	-		US$	15,789		N/A	US$	15,789
		NTT Finance Corporation	-		〃	-		US$	15,768		N/A	US$	15,768
		CNO Global Funding	-		〃	-		US$	15,565		N/A	US$	15,565
		Marsh & McLennan Companies, Inc.	-		〃	-		US$	15,564		N/A	US$	15,564
		Ryder System, Inc.	-		〃	-		US$	15,551		N/A	US$	15,551
		UBS Group AG	-		〃	-		US$	15,481		N/A	US$	15,481
		U.S. Bancorp.	-		〃	-		US$	15,440		N/A	US$	15,440
		Roper Technologies, Inc.	-		〃	-		US$	15,407		N/A	US$	15,407
		Northwestern Mutual Global Funding	-		〃	-		US$	15,298		N/A	US$	15,298
		New York Life Global Funding	-		〃	-		US$	14,993		N/A	US$	14,993
		NextEra Energy Capital Holdings, Inc.	-		〃	-		US$	14,664		N/A	US$	14,664
		BMW US Capital, LLC	-		〃	-		US$	14,519		N/A	US$	14,519
		T-Mobile USA, Inc.	-		〃	-		US$	14,433		N/A	US$	14,433
		Protective Life Global Funding	-		〃	-		US$	14,389		N/A	US$	14,389
		Philip Morris International Inc.	-		〃	-		US$	14,276		N/A	US$	14,276
		Quest Diagnostics Incorporated	-		〃	-		US$	14,196		N/A	US$	14,196

(Continued)

70 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		Santander Holdings USA, Inc.	-		Financial assets at fair value through other comprehensive income	-		US$	14,143		N/A	US$	14,143
		AerCap Ireland Capital Designated Activity Company	-		〃	-		US$	13,986		N/A	US$	13,986
		National Securities Clearing Corporation	-		〃	-		US$	13,895		N/A	US$	13,895
		SMBC Aviation Capital Finance DAC	-		〃	-		US$	13,873		N/A	US$	13,873
		Oracle Corporation	-		〃	-		US$	13,824		N/A	US$	13,824
		Macquarie Bank Limited	-		〃	-		US$	13,650		N/A	US$	13,650
		ING Groep N.V.	-		〃	-		US$	13,616		N/A	US$	13,616
		Nomura Holdings, Inc.	-		〃	-		US$	13,356		N/A	US$	13,356
		Truist Financial Corporation	-		〃	-		US$	13,328		N/A	US$	13,328
		Standard Chartered PLC	-		〃	-		US$	13,218		N/A	US$	13,218
		Mercedes-Benz Finance North America LLC	-		〃	-		US$	13,022		N/A	US$	13,022
		Southern California Edison Company	-		〃	-		US$	12,981		N/A	US$	12,981
		Amphenol Corporation	-		〃	-		US$	12,833		N/A	US$	12,833
		American Honda Finance Corporation	-		〃	-		US$	12,774		N/A	US$	12,774
		Jackson National Life Global Funding	-		〃	-		US$	12,563		N/A	US$	12,563
		ONEOK, Inc.	-		〃	-		US$	12,550		N/A	US$	12,550
		The Bank of New York Mellon Corporation	-		〃	-		US$	12,428		N/A	US$	12,428
		BAE Systems plc	-		〃	-		US$	12,425		N/A	US$	12,425
		Equifax Inc.	-		〃	-		US$	12,106		N/A	US$	12,106
		Amazon.com, Inc.	-		〃	-		US$	11,676		N/A	US$	11,676
		Bristol-Myers Squibb Company	-		〃	-		US$	11,585		N/A	US$	11,585
		Swedbank AB (publ)	-		〃	-		US$	11,541		N/A	US$	11,541
		AT&T Inc.	-		〃	-		US$	11,326		N/A	US$	11,326
		Elevance Health, Inc.	-		〃	-		US$	11,154		N/A	US$	11,154
		Prologis Targeted U.S. Logistics Fund L.P.	-		〃	-		US$	11,127		N/A	US$	11,127
		MassMutual Global Funding II	-		〃	-		US$	10,851		N/A	US$	10,851
		S&P Global Inc.	-		〃	-		US$	10,723		N/A	US$	10,723
		Apple Inc.	-		〃	-		US$	10,721		N/A	US$	10,721
		DTE Energy Company	-		〃	-		US$	10,651		N/A	US$	10,651
		National Rural Utilities Cooperative Finance Corporation	-		〃	-		US$	10,402		N/A	US$	10,402
		Svenska Handelsbanken AB (publ)	-		〃	-		US$	10,026		N/A	US$	10,026
		Canadian Imperial Bank of Commerce	-		〃	-		US$	10,020		N/A	US$	10,020
		Nordea Bank Abp	-		〃	-		US$	9,873		N/A	US$	9,873
		Hewlett Packard Enterprise Company	-		〃	-		US$	9,766		N/A	US$	9,766
		Enbridge Inc.	-		〃	-		US$	9,712		N/A	US$	9,712
		Mutual Of Omaha Companies Global Funding	-		〃	-		US$	9,552		N/A	US$	9,552
		Citibank, N.A.	-		〃	-		US$	9,495		N/A	US$	9,495
		LSEG US Fin Corp.	-		〃	-		US$	9,091		N/A	US$	9,091
		Realty Income Corporation	-		〃	-		US$	9,079		N/A	US$	9,079
		Florida Power & Light Company	-		〃	-		US$	9,072		N/A	US$	9,072
		Public Service Enterprise Group Incorporated	-		〃	-		US$	9,018		N/A	US$	9,018
		Accenture Capital Inc.	-		〃	-		US$	8,979		N/A	US$	8,979
		Amgen Inc.	-		〃	-		US$	8,890		N/A	US$	8,890
		Equinor ASA	-		〃	-		US$	8,823		N/A	US$	8,823
		Morgan Stanley Bank, N.A.	-		〃	-		US$	8,542		N/A	US$	8,542
		Haleon US Capital LLC	-		〃	-		US$	8,541		N/A	US$	8,541
		Pioneer Natural Resources Company	-		〃	-		US$	8,457		N/A	US$	8,457
		Pfizer Investment Enterprises Pte. Ltd.	-		〃	-		US$	8,329		N/A	US$	8,329
		Intel Corporation	-		〃	-		US$	8,311		N/A	US$	8,311
		Goldman Sachs Bank USA	-		〃	-		US$	8,272		N/A	US$	8,272
		KfW	-		〃	-		US$	8,145		N/A	US$	8,145
		Lowe's Companies, Inc.	-		〃	-		US$	8,137		N/A	US$	8,137

(Continued)

71 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		Kimco Realty Corporation	-		Financial assets at fair value through other comprehensive income	-		US$	8,060		N/A	US$	8,060
		Aon North America, Inc.	-		〃	-		US$	8,039		N/A	US$	8,039
		ConocoPhillips Company	-		〃	-		US$	8,021		N/A	US$	8,021
		Tampa Electric Company	-		〃	-		US$	8,000		N/A	US$	8,000
		DNB Bank ASA	-		〃	-		US$	7,986		N/A	US$	7,986
		Santander UK Group Holdings plc	-		〃	-		US$	7,928		N/A	US$	7,928
		META PLATFORMS INC	-		〃	-		US$	7,908		N/A	US$	7,908
		Constellation Energy Generation, LLC	-		〃	-		US$	7,831		N/A	US$	7,831
		Macquarie Group Limited	-		〃	-		US$	7,831		N/A	US$	7,831
		Intuit Inc.	-		〃	-		US$	7,658		N/A	US$	7,658
		Roche Holdings, Inc.	-		〃	-		US$	7,631		N/A	US$	7,631
		ERAC USA Finance LLC	-		〃	-		US$	7,574		N/A	US$	7,574
		Chevron Corporation	-		〃	-		US$	7,262		N/A	US$	7,262
		Johnson & Johnson	-		〃	-		US$	7,130		N/A	US$	7,130
		Pacific Gas and Electric Company	-		〃	-		US$	7,087		N/A	US$	7,087
		Bank of Ireland Group plc	-		〃	-		US$	7,066		N/A	US$	7,066
		McKesson Corporation	-		〃	-		US$	7,027		N/A	US$	7,027
		Intercontinental Exchange, Inc.	-		〃	-		US$	7,008		N/A	US$	7,008
		KBC Group NV	-		〃	-		US$	6,986		N/A	US$	6,986
		AstraZeneca Finance LLC	-		〃	-		US$	6,963		N/A	US$	6,963
		Great-West Lifeco U.S. Finance 2020, Lp	-		〃	-		US$	6,916		N/A	US$	6,916
		Cox Communications, Inc.	-		〃	-		US$	6,915		N/A	US$	6,915
		Exelon Corporation	-		〃	-		US$	6,885		N/A	US$	6,885
		Keurig Dr Pepper Inc.	-		〃	-		US$	6,880		N/A	US$	6,880
		Consumers Energy Company	-		〃	-		US$	6,792		N/A	US$	6,792
		The East Ohio Gas Company	-		〃	-		US$	6,767		N/A	US$	6,767
		Pacific Life Global Funding II	-		〃	-		US$	6,634		N/A	US$	6,634
		Fidelity National Information Services, Inc.	-		〃	-		US$	6,632		N/A	US$	6,632
		The Cigna Group	-		〃	-		US$	6,595		N/A	US$	6,595
		The Charles Schwab Corporation	-		〃	-		US$	6,586		N/A	US$	6,586
		Health Care Service Corporation, a Mutual Legal Reserve Company	-		〃	-		US$	6,345		N/A	US$	6,345
		Take-Two Interactive Software, Inc.	-		〃	-		US$	6,273		N/A	US$	6,273
		Fiserv, Inc.	-		〃	-		US$	6,242		N/A	US$	6,242
		WEC Energy Group, Inc.	-		〃	-		US$	6,224		N/A	US$	6,224
		Empower Finance 2020, LP	-		〃	-		US$	6,176		N/A	US$	6,176
		Eaton Corporation	-		〃	-		US$	6,162		N/A	US$	6,162
		Schlumberger Holdings Corporation	-		〃	-		US$	5,909		N/A	US$	5,909
		NBN Co Limited	-		〃	-		US$	5,817		N/A	US$	5,817
		Scentre Group Trust 1	-		〃	-		US$	5,811		N/A	US$	5,811
		NiSource Inc.	-		〃	-		US$	5,795		N/A	US$	5,795
		HEICO Corporation	-		〃	-		US$	5,773		N/A	US$	5,773
		Lockheed Martin Corporation	-		〃	-		US$	5,764		N/A	US$	5,764
		National Bank of Canada	-		〃	-		US$	5,749		N/A	US$	5,749
		Thermo Fisher Scientific Inc.	-		〃	-		US$	5,737		N/A	US$	5,737
		ASB Bank Limited	-		〃	-		US$	5,666		N/A	US$	5,666
		The Williams Companies, Inc.	-		〃	-		US$	5,613		N/A	US$	5,613
		Ingersoll Rand Inc.	-		〃	-		US$	5,594		N/A	US$	5,594
		Cencora, Inc.	-		〃	-		US$	5,546		N/A	US$	5,546
		Marriott International, Inc.	-		〃	-		US$	5,525		N/A	US$	5,525
		RTX Corporation	-		〃	-		US$	5,491		N/A	US$	5,491
		MPLX LP	-		〃	-		US$	5,401		N/A	US$	5,401

(Continued)

72 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		Starbucks Corporation	-		Financial assets at fair value through other comprehensive income	-		US$	5,351		N/A	US$	5,351
		Stryker Corporation	-		〃	-		US$	5,329		N/A	US$	5,329
		Sydney Airport Finance Company Pty Ltd	-		〃	-		US$	5,253		N/A	US$	5,253
		AstraZeneca PLC	-		〃	-		US$	5,135		N/A	US$	5,135
		Virginia Electric and Power Company	-		〃	-		US$	5,110		N/A	US$	5,110
		Newmont Corporation	-		〃	-		US$	5,099		N/A	US$	5,099
		CGI Inc.	-		〃	-		US$	5,055		N/A	US$	5,055
		John Deere Capital Corporation	-		〃	-		US$	5,033		N/A	US$	5,033
		Merck & Co., Inc.	-		〃	-		US$	5,033		N/A	US$	5,033
		Smith & Nephew plc	-		〃	-		US$	5,033		N/A	US$	5,033
		Southwest Airlines Co.	-		〃	-		US$	5,017		N/A	US$	5,017
		NATIONAL SECURITIES CLEARING CORP	-		〃	-		US$	5,007		N/A	US$	5,007
		Mizuho Markets Cayman LP	-		〃	-		US$	5,006		N/A	US$	5,006
		Bank of New Zealand	-		〃	-		US$	4,979		N/A	US$	4,979
		BorgWarner Inc.	-		〃	-		US$	4,975		N/A	US$	4,975
		Alabama Power Company	-		〃	-		US$	4,973		N/A	US$	4,973
		AbbVie Inc.	-		〃	-		US$	4,965		N/A	US$	4,965
		Brookfield Finance Inc.	-		〃	-		US$	4,868		N/A	US$	4,868
		Ameren Corporation	-		〃	-		US$	4,865		N/A	US$	4,865
		ANZ New Zealand (Int'l) Limited	-		〃	-		US$	4,844		N/A	US$	4,844
		ONE Gas, Inc.	-		〃	-		US$	4,817		N/A	US$	4,817
		HP Inc.	-		〃	-		US$	4,768		N/A	US$	4,768
		Deutsche Telekom International Finance B.V.	-		〃	-		US$	4,743		N/A	US$	4,743
		National Australia Bank Limited, New York Branch	-		〃	-		US$	4,680		N/A	US$	4,680
		Société Générale Société anonyme	-		〃	-		US$	4,618		N/A	US$	4,618
		Fifth Third Bancorp	-		〃	-		US$	4,601		N/A	US$	4,601
		Georgia Power Company	-		〃	-		US$	4,585		N/A	US$	4,585
		F&G Global Funding	-		〃	-		US$	4,572		N/A	US$	4,572
		GA Global Funding Trust	-		〃	-		US$	4,506		N/A	US$	4,506
		FirstEnergy Transmission, LLC	-		〃	-		US$	4,502		N/A	US$	4,502
		ITC Holdings Corp.	-		〃	-		US$	4,395		N/A	US$	4,395
		AutoZone, Inc.	-		〃	-		US$	4,354		N/A	US$	4,354
		State Street Corporation	-		〃	-		US$	4,324		N/A	US$	4,324
		Verizon Communications Inc.	-		〃	-		US$	4,171		N/A	US$	4,171
		Labcorp Holdings Inc.	-		〃	-		US$	4,129		N/A	US$	4,129
		AvalonBay Communities, Inc.	-		〃	-		US$	4,056		N/A	US$	4,056
		Aptiv PLC	-		〃	-		US$	4,055		N/A	US$	4,055
		Workday, Inc.	-		〃	-		US$	4,042		N/A	US$	4,042
		Korea Electric Power Corporation	-		〃	-		US$	4,023		N/A	US$	4,023
		Lincoln National Corporation	-		〃	-		US$	4,008		N/A	US$	4,008
		State Street Bank and Trust Company	-		〃	-		US$	3,996		N/A	US$	3,996
		Public Storage	-		〃	-		US$	3,979		N/A	US$	3,979
		Mid-Atlantic Interstate Transmission, LLC	-		〃	-		US$	3,970		N/A	US$	3,970
		Piedmont Natural Gas Company, Inc.	-		〃	-		US$	3,962		N/A	US$	3,962
		Schlumberger Investment SA	-		〃	-		US$	3,961		N/A	US$	3,961
		B.A.T. International Finance p.l.c.	-		〃	-		US$	3,930		N/A	US$	3,930
		Novartis Capital Corporation	-		〃	-		US$	3,894		N/A	US$	3,894
		GAIF Bond Issuer Pty Limited	-		〃	-		US$	3,890		N/A	US$	3,890
		Alliant Energy Finance, LLC	-		〃	-		US$	3,880		N/A	US$	3,880
		L3Harris Technologies, Inc.	-		〃	-		US$	3,868		N/A	US$	3,868
		Duke Energy Carolinas, LLC	-		〃	-		US$	3,844		N/A	US$	3,844
		Banco Bilbao Vizcaya Argentaria, S.A.	-		〃	-		US$	3,837		N/A	US$	3,837

(Continued)

73 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		Fortinet, Inc.	-		Financial assets at fair value through other comprehensive income	-		US$	3,824		N/A	US$	3,824
		CNH Industrial Capital LLC	-		〃	-		US$	3,814		N/A	US$	3,814
		Eli Lilly and Company	-		〃	-		US$	3,755		N/A	US$	3,755
		Alimentation Couche-Tard Inc.	-		〃	-		US$	3,700		N/A	US$	3,700
		Norsk Hydro ASA	-		〃	-		US$	3,595		N/A	US$	3,595
		Parker-Hannifin Corporation	-		〃	-		US$	3,565		N/A	US$	3,565
		Nutrien Ltd.	-		〃	-		US$	3,544		N/A	US$	3,544
		CenterPoint Energy Resources Corp.	-		〃	-		US$	3,490		N/A	US$	3,490
		Advocate Health & Hospitals Corporation	-		〃	-		US$	3,482		N/A	US$	3,482
		Burlington Northern Santa Fe, LLC	-		〃	-		US$	3,468		N/A	US$	3,468
		Magna International Inc.	-		〃	-		US$	3,460		N/A	US$	3,460
		Kellanova	-		〃	-		US$	3,444		N/A	US$	3,444
		Pfizer Inc.	-		〃	-		US$	3,416		N/A	US$	3,416
		Sempra	-		〃	-		US$	3,414		N/A	US$	3,414
		Meta Platforms, Inc.	-		〃	-		US$	3,390		N/A	US$	3,390
		Comcast Corporation	-		〃	-		US$	3,354		N/A	US$	3,354
		Chubb INA Holdings LLC	-		〃	-		US$	3,343		N/A	US$	3,343
		Cisco Systems, Inc.	-		〃	-		US$	3,317		N/A	US$	3,317
		DuPont de Nemours, Inc.	-		〃	-		US$	3,181		N/A	US$	3,181
		Wisconsin Electric Power Company	-		〃	-		US$	3,175		N/A	US$	3,175
		Corebridge Financial, Inc.	-		〃	-		US$	3,160		N/A	US$	3,160
		Republic Services, Inc.	-		〃	-		US$	3,158		N/A	US$	3,158
		UBS AG, London Branch	-		〃	-		US$	3,145		N/A	US$	3,145
		Anheuser-Busch Companies, LLC	-		〃	-		US$	3,120		N/A	US$	3,120
		Microchip Technology Incorporated	-		〃	-		US$	3,120		N/A	US$	3,120
		Nestlé Holdings, Inc.	-		〃	-		US$	3,100		N/A	US$	3,100
		Atmos Energy Corporation	-		〃	-		US$	3,074		N/A	US$	3,074
		Tyco Electronics Group S.A.	-		〃	-		US$	3,070		N/A	US$	3,070
		Duke Energy Corporation	-		〃	-		US$	3,068		N/A	US$	3,068
		Met Tower Global Funding	-		〃	-		US$	3,043		N/A	US$	3,043
		Archer-Daniels-Midland Company	-		〃	-		US$	2,989		N/A	US$	2,989
		Caterpillar Financial Services Corporation	-		〃	-		US$	2,988		N/A	US$	2,988
		The PNC Financial Services Group, Inc.	-		〃	-		US$	2,979		N/A	US$	2,979
		Southern California Gas Company	-		〃	-		US$	2,975		N/A	US$	2,975
		Citizens Bank, National Association	-		〃	-		US$	2,971		N/A	US$	2,971
		Medtronic Global Holdings S.C.A.	-		〃	-		US$	2,965		N/A	US$	2,965
		ORIX Corporation	-		〃	-		US$	2,954		N/A	US$	2,954
		Prologis, L.P.	-		〃	-		US$	2,950		N/A	US$	2,950
		Xcel Energy Inc.	-		〃	-		US$	2,950		N/A	US$	2,950
		Ameriprise Financial, Inc.	-		〃	-		US$	2,893		N/A	US$	2,893
		Rochester Gas and Electric Corporation	-		〃	-		US$	2,869		N/A	US$	2,869
		BHP Billiton Finance (USA) Limited	-		〃	-		US$	2,832		N/A	US$	2,832
		Rio Tinto Finance (USA) Limited	-		〃	-		US$	2,832		N/A	US$	2,832
		CSL Finance plc	-		〃	-		US$	2,827		N/A	US$	2,827
		The Brooklyn Union Gas Company	-		〃	-		US$	2,756		N/A	US$	2,756
		Simon Property Group, L.P.	-		〃	-		US$	2,748		N/A	US$	2,748
		Ventas Realty, Limited Partnership	-		〃	-		US$	2,747		N/A	US$	2,747
		Oncor Electric Delivery Company LLC	-		〃	-		US$	2,716		N/A	US$	2,716
		Invitation Homes Operating Partnership LP	-		〃	-		US$	2,693		N/A	US$	2,693
		Chevron Phillips Chemical Company LLC	-		〃	-		US$	2,683		N/A	US$	2,683
		Bayer US Finance LLC	-		〃	-		US$	2,650		N/A	US$	2,650
		Masco Corporation	-		〃	-		US$	2,647		N/A	US$	2,647

(Continued)

74 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		Pennsylvania Electric Company	-		Financial assets at fair value through other comprehensive income	-		US$	2,611		N/A	US$	2,611
		The Southern Company	-		〃	-		US$	2,606		N/A	US$	2,606
		O'Reilly Automotive, Inc.	-		〃	-		US$	2,595		N/A	US$	2,595
		Transcontinental Gas Pipe Line Company, LLC	-		〃	-		US$	2,595		N/A	US$	2,595
		Air Products and Chemicals, Inc.	-		〃	-		US$	2,585		N/A	US$	2,585
		American Electric Power Company, Inc.	-		〃	-		US$	2,539		N/A	US$	2,539
		Siemens Financieringsmaatschappij N.V.	-		〃	-		US$	2,519		N/A	US$	2,519
		Kraton Corporation	-		〃	-		US$	2,509		N/A	US$	2,509
		CRH America, Inc.	-		〃	-		US$	2,442		N/A	US$	2,442
		W. P. Carey Inc.	-		〃	-		US$	2,423		N/A	US$	2,423
		Entergy Texas, Inc.	-		〃	-		US$	2,422		N/A	US$	2,422
		Westpac Banking Corporation	-		〃	-		US$	2,394		N/A	US$	2,394
		NBN CO LTD	-		〃	-		US$	2,373		N/A	US$	2,373
		Yara International ASA	-		〃	-		US$	2,360		N/A	US$	2,360
		CVS Health Corporation	-		〃	-		US$	2,354		N/A	US$	2,354
		Boston Gas Company	-		〃	-		US$	2,320		N/A	US$	2,320
		Cardinal Health, Inc.	-		〃	-		US$	2,296		N/A	US$	2,296
		GE HealthCare Technologies Inc.	-		〃	-		US$	2,253		N/A	US$	2,253
		Pricoa Global Funding I	-		〃	-		US$	2,251		N/A	US$	2,251
		Boston Scientific Corporation	-		〃	-		US$	2,190		N/A	US$	2,190
		Dominion Energy, Inc.	-		〃	-		US$	2,186		N/A	US$	2,186
		Bimbo Bakeries USA, Inc.	-		〃	-		US$	2,169		N/A	US$	2,169
		Humana Inc.	-		〃	-		US$	2,115		N/A	US$	2,115
		Interstate Power and Light Company	-		〃	-		US$	2,085		N/A	US$	2,085
		CMS Energy Corporation	-		〃	-		US$	2,072		N/A	US$	2,072
		Air Lease Corporation	-		〃	-		US$	2,046		N/A	US$	2,046
		Welltower Inc.	-		〃	-		US$	2,043		N/A	US$	2,043
		Public Service Electric and Gas Company	-		〃	-		US$	2,018		N/A	US$	2,018
		KODIT Global 2023-1 Co., Ltd.	-		〃	-		US$	1,998		N/A	US$	1,998
		Olympus Corporation	-		〃	-		US$	1,993		N/A	US$	1,993
		UBS Group Funding (Jersey) Ltd.	-		〃	-		US$	1,980		N/A	US$	1,980
		Gulf Power Company	-		〃	-		US$	1,936		N/A	US$	1,936
		Shinhan Financial Group Co., Ltd.	-		〃	-		US$	1,926		N/A	US$	1,926
		NBK SPC Limited	-		〃	-		US$	1,879		N/A	US$	1,879
		Element Fleet Management Corp.	-		〃	-		US$	1,786		N/A	US$	1,786
		Mondelez International, Inc.	-		〃	-		US$	1,785		N/A	US$	1,785
		Kentucky Utilities Company	-		〃	-		US$	1,782		N/A	US$	1,782
		Eversource Energy	-		〃	-		US$	1,778		N/A	US$	1,778
		CenterPoint Energy Houston Electric, LLC	-		〃	-		US$	1,752		N/A	US$	1,752
		Evergy Kansas Central, Inc.	-		〃	-		US$	1,728		N/A	US$	1,728
		Georgia-Pacific LLC	-		〃	-		US$	1,718		N/A	US$	1,718
		University of California	-		〃	-		US$	1,697		N/A	US$	1,697
		Gilead Sciences, Inc.	-		〃	-		US$	1,694		N/A	US$	1,694
		KeySpan Corporation	-		〃	-		US$	1,686		N/A	US$	1,686
		The Western Union Company	-		〃	-		US$	1,673		N/A	US$	1,673
		Wells Fargo Bank, National Association	-		〃	-		US$	1,669		N/A	US$	1,669
		Motorola Solutions, Inc.	-		〃	-		US$	1,658		N/A	US$	1,658
		Walmart Inc.	-		〃	-		US$	1,657		N/A	US$	1,657
		UniCredit S.p.A.	-		〃	-		US$	1,656		N/A	US$	1,656
		eBay Inc.	-		〃	-		US$	1,651		N/A	US$	1,651
		Gulfstream Natural Gas System, L.L.C.	-		〃	-		US$	1,604		N/A	US$	1,604
		B.A.T Capital Corporation	-		〃	-		US$	1,550		N/A	US$	1,550

(Continued)

75 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		Jefferies Financial Group Inc.	-		Financial assets at fair value through other comprehensive income	-		US$	1,545		N/A	US$	1,545
		Kinder Morgan, Inc.	-		〃	-		US$	1,538		N/A	US$	1,538
		Zoetis Inc.	-		〃	-		US$	1,533		N/A	US$	1,533
		APA Infrastructure Limited	-		〃	-		US$	1,531		N/A	US$	1,531
		Cadence Design Systems, Inc.	-		〃	-		US$	1,530		N/A	US$	1,530
		Genuine Parts Company	-		〃	-		US$	1,529		N/A	US$	1,529
		Essex Portfolio, L.P.	-		〃	-		US$	1,528		N/A	US$	1,528
		Wipro IT Services LLC	-		〃	-		US$	1,527		N/A	US$	1,527
		Entergy Mississippi, LLC	-		〃	-		US$	1,501		N/A	US$	1,501
		Phillips 66 Company	-		〃	-		US$	1,501		N/A	US$	1,501
		Otis Worldwide Corporation	-		〃	-		US$	1,494		N/A	US$	1,494
		Arthur J. Gallagher & Co.	-		〃	-		US$	1,490		N/A	US$	1,490
		NSTAR Electric Company	-		〃	-		US$	1,481		N/A	US$	1,481
		American International Group, Inc.	-		〃	-		US$	1,479		N/A	US$	1,479
		Berkshire Hathaway Energy Company	-		〃	-		US$	1,461		N/A	US$	1,461
		Duke Energy Florida, LLC	-		〃	-		US$	1,460		N/A	US$	1,460
		Darden Restaurants, Inc.	-		〃	-		US$	1,455		N/A	US$	1,455
		CenterPoint Energy, Inc.	-		〃	-		US$	1,450		N/A	US$	1,450
		Dollar General Corporation	-		〃	-		US$	1,445		N/A	US$	1,445
		Jersey Central Power & Light Company	-		〃	-		US$	1,442		N/A	US$	1,442
		The Norinchukin Bank	-		〃	-		US$	1,368		N/A	US$	1,368
		Northrop Grumman Corporation	-		〃	-		US$	1,315		N/A	US$	1,315
		Aon Corporation	-		〃	-		US$	1,314		N/A	US$	1,314
		Andrew W. Mellon Foundation, The	-		〃	-		US$	1,292		N/A	US$	1,292
		Pernod Ricard International Finance LLC	-		〃	-		US$	1,267		N/A	US$	1,267
		Texas Instruments Incorporated	-		〃	-		US$	1,247		N/A	US$	1,247
		Becton, Dickinson and Company	-		〃	-		US$	1,245		N/A	US$	1,245
		Union Pacific Corporation	-		〃	-		US$	1,241		N/A	US$	1,241
		Ecolab Inc.	-		〃	-		US$	1,208		N/A	US$	1,208
		Sysco Corporation	-		〃	-		US$	1,200		N/A	US$	1,200
		Mondelez International Holdings Netherlands B.V.	-		〃	-		US$	1,153		N/A	US$	1,153
		Solvay Finance (America), LLC	-		〃	-		US$	1,148		N/A	US$	1,148
		Ferguson Finance PLC	-		〃	-		US$	1,117		N/A	US$	1,117
		OGE Energy Corp.	-		〃	-		US$	1,113		N/A	US$	1,113
		Nucor Corporation	-		〃	-		US$	1,086		N/A	US$	1,086
		7-Eleven, Inc.	-		〃	-		US$	1,080		N/A	US$	1,080
		Niagara Mohawk Power Corporation	-		〃	-		US$	1,063		N/A	US$	1,063
		AIB Group plc	-		〃	-		US$	1,057		N/A	US$	1,057
		EDP Finance B.V.	-		〃	-		US$	1,045		N/A	US$	1,045
		New York State Electric & Gas Corporation	-		〃	-		US$	1,024		N/A	US$	1,024
		CBRE Services, Inc.	-		〃	-		US$	1,018		N/A	US$	1,018
		Sabine Pass Liquefaction, LLC	-		〃	-		US$	1,010		N/A	US$	1,010
		PacifiCorp	-		〃	-		US$	1,005		N/A	US$	1,005
		MORGAN STANLEY BANK NA FXD-FRN	-		〃	-		US$	1,003		N/A	US$	1,003
		Santander UK plc	-		〃	-		US$	996		N/A	US$	996
		Canadian Pacific Railway Company	-		〃	-		US$	976		N/A	US$	976
		Juniper Networks, Inc.	-		〃	-		US$	968		N/A	US$	968
		American Water Capital Corp.	-		〃	-		US$	964		N/A	US$	964
		Bayer US Finance II LLC	-		〃	-		US$	962		N/A	US$	962
		Lennar Corporation	-		〃	-		US$	923		N/A	US$	923
		LYB Finance Company B.V.	-		〃	-		US$	923		N/A	US$	923
		Assurant, Inc.	-		〃	-		US$	922		N/A	US$	922

(Continued)

76 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		AEP Texas Inc.	-		Financial assets at fair value through other comprehensive income	-		US$	919		N/A	US$	919
		The Interpublic Group of Companies, Inc.	-		〃	-		US$	918		N/A	US$	918
		TC PipeLines, LP	-		〃	-		US$	904		N/A	US$	904
		BAE Systems Finance Inc.	-		〃	-		US$	902		N/A	US$	902
		Brighthouse Financial Global Funding	-		〃	-		US$	896		N/A	US$	896
		Metropolitan Edison Company	-		〃	-		US$	811		N/A	US$	811
		CubeSmart, L.P.	-		〃	-		US$	801		N/A	US$	801
		Cox Enterprises, Inc.	-		〃	-		US$	788		N/A	US$	788
		Southwest Gas Corporation	-		〃	-		US$	765		N/A	US$	765
		PACCAR Financial Corp.	-		〃	-		US$	764		N/A	US$	764
		Voya Financial, Inc.	-		〃	-		US$	762		N/A	US$	762
		Zimmer Biomet Holdings, Inc.	-		〃	-		US$	762		N/A	US$	762
		BP Capital Markets America, Inc.	-		〃	-		US$	760		N/A	US$	760
		Veralto Corporation	-		〃	-		US$	758		N/A	US$	758
		Consolidated Edison Company of New York, Inc.	-		〃	-		US$	752		N/A	US$	752
		TELUS Corporation	-		〃	-		US$	752		N/A	US$	752
		Oklahoma Gas and Electric Company	-		〃	-		US$	749		N/A	US$	749
		Mars, Incorporated	-		〃	-		US$	743		N/A	US$	743
		Avangrid, Inc.	-		〃	-		US$	736		N/A	US$	736
		Hyundai Capital Services, Inc.	-		〃	-		US$	720		N/A	US$	720
		Sodexo, Inc.	-		〃	-		US$	694		N/A	US$	694
		The Allstate Corporation	-		〃	-		US$	694		N/A	US$	694
		Baxter International Inc.	-		〃	-		US$	660		N/A	US$	660
		Automatic Data Processing, Inc.	-		〃	-		US$	658		N/A	US$	658
		Reliance Standard Life Global Funding II	-		〃	-		US$	656		N/A	US$	656
		International Business Machines Corporation	-		〃	-		US$	653		N/A	US$	653
		Southern Power Company	-		〃	-		US$	639		N/A	US$	639
		Florida Hurricane Catastrophe Fund Finance Corporation	-		〃	-		US$	614		N/A	US$	614
		Infor, Inc.	-		〃	-		US$	613		N/A	US$	613
		The Sherwin-Williams Company	-		〃	-		US$	597		N/A	US$	597
		Burlington Resources Inc.	-		〃	-		US$	588		N/A	US$	588
		Columbia Pipelines Holding Company, LLC	-		〃	-		US$	562		N/A	US$	562
		Columbia Pipelines Operating Company LLC	-		〃	-		US$	536		N/A	US$	536
		Skandinaviska Enskilda Banken AB (publ)	-		〃	-		US$	536		N/A	US$	536
		State of Hawaii	-		〃	-		US$	536		N/A	US$	536
		Arizona Public Service Company	-		〃	-		US$	525		N/A	US$	525
		AIA Group Limited	-		〃	-		US$	512		N/A	US$	512
		Mississippi Power Company	-		〃	-		US$	511		N/A	US$	511
		Intesa Sanpaolo S.p.A.	-		〃	-		US$	509		N/A	US$	509
		Monongahela Power Company	-		〃	-		US$	509		N/A	US$	509
		Waste Management, Inc.	-		〃	-		US$	503		N/A	US$	503
		Westpac New Zealand Limited	-		〃	-		US$	499		N/A	US$	499
		Enterprise Products Operating LLC	-		〃	-		US$	493		N/A	US$	493
		Trane Technologies Luxembourg Finance S.A.	-		〃	-		US$	493		N/A	US$	493
		Altria Group, Inc.	-		〃	-		US$	491		N/A	US$	491
		Commonwealth Bank of Australia	-		〃	-		US$	489		N/A	US$	489
		Diageo Capital plc	-		〃	-		US$	487		N/A	US$	487
		McCormick & Company, Incorporated	-		〃	-		US$	485		N/A	US$	485
		Verisk Analytics, Inc.	-		〃	-		US$	479		N/A	US$	479
		DENSO Corporation	-		〃	-		US$	471		N/A	US$	471
		Aker BP ASA	-		〃	-		US$	431		N/A	US$	431
		Phillips 66	-		〃	-		US$	424		N/A	US$	424

(Continued)

77 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		The Home Depot, Inc.	-		Financial assets at fair value through other comprehensive income	-		US$	420		N/A	US$	420
		Aflac Incorporated	-		〃	-		US$	407		N/A	US$	407
		Coca-Cola Consolidated, Inc.	-		〃	-		US$	396		N/A	US$	396
		GlaxoSmithKline Capital Inc.	-		〃	-		US$	391		N/A	US$	391
		Sierra Pacific Power Company	-		〃	-		US$	389		N/A	US$	389
		Nuveen, LLC	-		〃	-		US$	387		N/A	US$	387
		CSX Corporation	-		〃	-		US$	365		N/A	US$	365
		Cargill, Incorporated	-		〃	-		US$	360		N/A	US$	360
		Honeywell International Inc.	-		〃	-		US$	355		N/A	US$	355
		Equitable Holdings, Inc.	-		〃	-		US$	341		N/A	US$	341
		Mid-America Apartments, L.P.	-		〃	-		US$	320		N/A	US$	320
		National Grid plc	-		〃	-		US$	286		N/A	US$	286
		QatarEnergy	-		〃	-		US$	283		N/A	US$	283
		Nordson Corporation	-		〃	-		US$	281		N/A	US$	281
		Electricité de France S.A.	-		〃	-		US$	203		N/A	US$	203
		Sprint Spectrum Co Llc	-		〃	-		US$	116		N/A	US$	116
		Beth Israel Deaconess Medical Center, Inc.	-		〃	-		US$	90		N/A	US$	90
		Bank of America Corporation	-		Financial assets at amortized cost	-		US$	1,090,390		N/A	US$	1,094,564
		Wells Fargo & Company	-		〃	-		US$	1,068,098		N/A	US$	1,075,639
		Citigroup Inc.	-		〃	-		US$	744,664		N/A	US$	746,193
		Morgan Stanley	-		〃	-		US$	571,972		N/A	US$	574,855
		JPMorgan Chase & Co.	-		〃	-		US$	567,099		N/A	US$	569,835
		The Goldman Sachs Group, Inc.	-		〃	-		US$	531,503		N/A	US$	529,294
		Goldman Sachs Finance Corp International Ltd	-		〃	-		US$	209,799		N/A	US$	209,249
		BNP Paribas SA	-		〃	-		US$	44,841		N/A	US$	44,846
		Morgan Stanley Bank, N.A.	-		〃	-		US$	27,003		N/A	US$	27,116
		BPCE SA	-		〃	-		US$	17,696		N/A	US$	17,699
		UBS Group AG	-		〃	-		US$	15,308		N/A	US$	15,317
		Athene Global Funding	-		〃	-		US$	14,814		N/A	US$	14,820
		Lloyds Banking Group plc	-		〃	-		US$	13,275		N/A	US$	13,278
		ING Groep N.V.	-		〃	-		US$	11,434		N/A	US$	11,487
		Nationwide Building Society	-		〃	-		US$	10,636		N/A	US$	10,602
		Great-West Lifeco U.S. Finance 2020, Lp	-		〃	-		US$	9,885		N/A	US$	9,863
		Credit Agricole SA London Branch	-		〃	-		US$	9,748		N/A	US$	9,744
		NatWest Group plc	-		〃	-		US$	9,696		N/A	US$	9,697
		Mizuho Financial Group, Inc.	-		〃	-		US$	9,637		N/A	US$	9,741
		Macquarie Group Limited	-		〃	-		US$	9,632		N/A	US$	9,635
		Danske Bank A/S	-		〃	-		US$	9,625		N/A	US$	9,628
		HSBC Holdings plc	-		〃	-		US$	9,570		N/A	US$	9,569
		Hyundai Capital America	-		〃	-		US$	9,562		N/A	US$	9,566
		Barclays PLC	-		〃	-		US$	9,536		N/A	US$	9,535
		Coöperatieve Rabobank U.A.	-		〃	-		US$	9,430		N/A	US$	9,426
		Fédération des caisses Desjardins du Québec	-		〃	-		US$	9,206		N/A	US$	9,201
		NongHyup Bank	-		〃	-		US$	9,150		N/A	US$	9,142
		Nomura Holdings, Inc.	-		〃	-		US$	9,112		N/A	US$	9,104
		Mitsubishi UFJ Financial Group, Inc.	-		〃	-		US$	8,707		N/A	US$	8,704
		Banque Fédérative du Crédit Mutuel	-		〃	-		US$	8,472		N/A	US$	8,503
		Canadian Imperial Bank of Commerce	-		〃	-		US$	8,467		N/A	US$	8,466
		Ventas Realty, Limited Partnership	-		〃	-		US$	8,383		N/A	US$	8,385
		Banco Santander, S.A.	-		〃	-		US$	8,296		N/A	US$	8,307
		Enel Finance International N.V.	-		〃	-		US$	8,288		N/A	US$	8,288
		Protective Life Global Funding	-		〃	-		US$	8,075		N/A	US$	8,073

(Continued)

78 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		CRH America, Inc.	-		Financial assets at amortized cost	-		US$	8,002		N/A	US$	7,984
		Sydney Airport Finance Company Pty Ltd	-		〃	-		US$	7,830		N/A	US$	7,827
		Sumitomo Mitsui Financial Group, Inc.	-		〃	-		US$	7,801		N/A	US$	7,813
		AIG Global Funding	-		〃	-		US$	7,776		N/A	US$	7,794
		Banco Bilbao Vizcaya Argentaria, S.A.	-		〃	-		US$	7,314		N/A	US$	7,321
		Southern California Edison Company	-		〃	-		US$	5,973		N/A	US$	5,983
		Santander UK Group Holdings plc	-		〃	-		US$	5,682		N/A	US$	5,681
		NatWest Markets Plc	-		〃	-		US$	5,583		N/A	US$	5,580
		F&G Global Funding	-		〃	-		US$	5,520		N/A	US$	5,533
		Transurban Finance Company Pty Ltd	-		〃	-		US$	5,349		N/A	US$	5,345
		Hyundai Capital Services, Inc.	-		〃	-		US$	5,137		N/A	US$	5,131
		Svenska Handelsbanken AB (publ)	-		〃	-		US$	4,810		N/A	US$	4,830
		QNB Finance Ltd.	-		〃	-		US$	4,550		N/A	US$	4,560
		DNB Bank ASA	-		〃	-		US$	4,364		N/A	US$	4,361
		Sumitomo Mitsui Trust Bank, Limited	-		〃	-		US$	4,194		N/A	US$	4,195
		Deutsche Bank AG - New York Branch	-		〃	-		US$	3,992		N/A	US$	3,988
		Volkswagen Group of America Finance, LLC	-		〃	-		US$	3,932		N/A	US$	3,923
		Daimler Trucks Finance North America LLC	-		〃	-		US$	3,912		N/A	US$	3,920
		Jackson National Life Global Funding	-		〃	-		US$	3,365		N/A	US$	3,361
		ANZ New Zealand (Int'l) Limited	-		〃	-		US$	3,314		N/A	US$	3,312
		Scottish Power Limited	-		〃	-		US$	3,181		N/A	US$	3,189
		Spectra Energy Partners, LP	-		〃	-		US$	2,872		N/A	US$	2,869
		Ryder System, Inc.	-		〃	-		US$	2,868		N/A	US$	2,871
		Bank of Ireland Group plc	-		〃	-		US$	2,822		N/A	US$	2,823
		PNC Bank, National Association	-		〃	-		US$	2,799		N/A	US$	2,800
		Unum Group	-		〃	-		US$	1,981		N/A	US$	1,984
		Georgia-Pacific LLC	-		〃	-		US$	1,294		N/A	US$	1,297
		GA Global Funding Trust	-		〃	-		US$	1,194		N/A	US$	1,196
		Agency mortgage-backed securities
		FEDERAL NATIONAL MORTGAGE ASSOCIATION	-		Financial assets at fair value through other comprehensive income	-		US$	651,715		N/A	US$	651,715
		Federal Home Loan Mortgage Corporation	-		〃	-		US$	496,172		N/A	US$	496,172
		Government National Mortgage Association	-		〃	-		US$	274,580		N/A	US$	274,580
		Government bond/Agency bonds
		United States Department of The Treasury	-		Financial assets at fair value through other comprehensive income	-		US$	630,062		N/A	US$	630,062
		United States Department of The Treasury	-		Financial assets at amortized cost	-		US$	133,653		N/A	US$	132,856
		Asset-backed securities
		Wells Fargo Commercial Mortgage Trust 2016-Bnk1	-		Financial assets at fair value through other comprehensive income	-		US$	10,286		N/A	US$	10,286
		Gm Financial Consumer Automobile Receivables Trust 2023-3	-		〃	-		US$	8,998		N/A	US$	8,998
		Ford Credit Auto Owner Trust 2021-Rev2	-		〃	-		US$	7,946		N/A	US$	7,946
		Honda Auto Receivables 2024-1 Owner Trust	-		〃	-		US$	7,685		N/A	US$	7,685
		Toyota Auto Loan Extended Note Trust 2023-1	-		〃	-		US$	7,350		N/A	US$	7,350
		Hyundai Auto Receivables Trust 2023-B	-		〃	-		US$	7,188		N/A	US$	7,188
		Citigroup Commercial Mortgage Trust 2015-GC33	-		〃	-		US$	7,181		N/A	US$	7,181
		Ford Credit Auto Owner Trust 2020-REV2	-		〃	-		US$	7,167		N/A	US$	7,167
		G23-182I	-		〃	-		US$	6,433		N/A	US$	6,433
		BBCMS Mortgage Trust 2020-C8	-		〃	-		US$	6,346		N/A	US$	6,346
		Toyota Auto Receivables 2022-B Owner Trust	-		〃	-		US$	6,328		N/A	US$	6,328
		Morgan Stanley Capital I Trust 2021-L6	-		〃	-		US$	6,133		N/A	US$	6,133

(Continued)

79 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		Honda Auto Receivables 2023-2 Owner Trust	-		Financial assets at fair value through other comprehensive income	-		US$	6,031		N/A	US$	6,031
		Hudson Yards 2016-10HY Mortgage Trust	-		〃	-		US$	6,013		N/A	US$	6,013
		Bank 2020-BNK26	-		〃	-		US$	5,983		N/A	US$	5,983
		Benchmark 2019-B11 Mortgage Trust	-		〃	-		US$	5,729		N/A	US$	5,729
		Bank 2017 - BNK7	-		〃	-		US$	5,639		N/A	US$	5,639
		Citigroup Commercial Mortgage Trust 2021-PRM2	-		〃	-		US$	5,593		N/A	US$	5,593
		Bank 2021-bnk33	-		〃	-		US$	5,498		N/A	US$	5,498
		Benchmark 2019-B12 Mortgage Trust	-		〃	-		US$	5,447		N/A	US$	5,447
		Morgan Stanley Bank America Merrill Lynch Trust 2016-C30	-		〃	-		US$	5,437		N/A	US$	5,437
		Nissan Auto Receivables 2024-A Owner Trust	-		〃	-		US$	5,272		N/A	US$	5,272
		MSWF Commercial Mortgage Trust 2023-1	-		〃	-		US$	5,180		N/A	US$	5,180
		Benchmark 2023-B39 Mortgage Trust	-		〃	-		US$	5,161		N/A	US$	5,161
		Bank 2023-BNK46	-		〃	-		US$	5,105		N/A	US$	5,105
		Wells Fargo Commercial Mortgage Trust 2021-C59	-		〃	-		US$	4,900		N/A	US$	4,900
		Morgan Stanley Capital I Trust 2016 - BNK2 Fund	-		〃	-		US$	4,839		N/A	US$	4,839
		Wells Fargo Commercial Mortgage Trust 2016-C35	-		〃	-		US$	4,839		N/A	US$	4,839
		CSAIL 2018-CX11	-		〃	-		US$	4,793		N/A	US$	4,793
		GM Financial Revolving Receivables Trust 2021-1	-		〃	-		US$	4,718		N/A	US$	4,718
		Bank 2017-BNK9	-		〃	-		US$	4,241		N/A	US$	4,241
		Msbam 2016-C29	-		〃	-		US$	4,109		N/A	US$	4,109
		Benchmark 2023-V3 Mortgage Trust	-		〃	-		US$	4,094		N/A	US$	4,094
		Nissan Auto Receivables 2024-B Owner Trust	-		〃	-		US$	3,966		N/A	US$	3,966
		Toyota Auto Receivables 2024-D Owner Trust	-		〃	-		US$	3,926		N/A	US$	3,926
		FORDO_24-D	-		〃	-		US$	3,752		N/A	US$	3,752
		Bmw Vehicle Owner Trust 2023-A	-		〃	-		US$	3,633		N/A	US$	3,633
		Gm Financial Consumer Automobile Receivables Trust 2023-4	-		〃	-		US$	3,622		N/A	US$	3,622
		Discover Card Execution Note Trust	-		〃	-		US$	3,523		N/A	US$	3,523
		GM Financial Consumer Automobile Receivables Trust 2023-2	-		〃	-		US$	3,384		N/A	US$	3,384
		American Express Credit Account Master Trust	-		〃	-		US$	3,338		N/A	US$	3,338
		Citigroup Commercial Mortgage Trust 2019-Gc43	-		〃	-		US$	3,277		N/A	US$	3,277
		Msbam 2016-C31	-		〃	-		US$	3,113		N/A	US$	3,113
		Honda Auto Receivables 2023-4 Owner Trust	-		〃	-		US$	3,048		N/A	US$	3,048
		Mercedes-Benz Auto Receivables Trust 2024-1	-		〃	-		US$	3,009		N/A	US$	3,009
		Commerce 2015-CCRE24 Mortgage Trust	-		〃	-		US$	2,892		N/A	US$	2,892
		Bank 2019-Bnk22	-		〃	-		US$	2,889		N/A	US$	2,889
		Five 2023-V1 Mortgage Trust	-		〃	-		US$	2,857		N/A	US$	2,857
		Sreit Commercial Mortgage Trust 2021-Mfp	-		〃	-		US$	2,772		N/A	US$	2,772
		Bmo 2023-C5 Mortgage Trust	-		〃	-		US$	2,766		N/A	US$	2,766
		CGCMT 2017-P8 Mortgage Trust	-		〃	-		US$	2,727		N/A	US$	2,727
		Bank5 2023-5YR1	-		〃	-		US$	2,674		N/A	US$	2,674
		Mercedes-Benz Auto Receivables Trust 2023-2	-		〃	-		US$	2,585		N/A	US$	2,585
		Toyota Auto Receivables 2023-C Owner Trust	-		〃	-		US$	2,520		N/A	US$	2,520
		Honda Auto Receivables 2023-1 Owner Trust	-		〃	-		US$	2,506		N/A	US$	2,506
		Benchmark 2018-B3 Commercial Mortgage Trust	-		〃	-		US$	2,499		N/A	US$	2,499
		Ford Credit Auto Owner Trust 2020-Rev1	-		〃	-		US$	2,492		N/A	US$	2,492
		Gm Financial Consumer Automobile Receivables Trust 2024-1	-		〃	-		US$	2,478		N/A	US$	2,478
		Benchmark 2019-B15 Mortgage Trust	-		〃	-		US$	2,452		N/A	US$	2,452
		GS Mortgage Securities Trust 2015-GC32	-		〃	-		US$	2,432		N/A	US$	2,432
		Hyundai Auto Receivables Trust 2021-B	-		〃	-		US$	2,432		N/A	US$	2,432
		Citigroup Commercial Mortgage Trust 2016-C1	-		〃	-		US$	2,362		N/A	US$	2,362
		Toyota Auto Receivables 2024-A Owner Trust	-		〃	-		US$	2,305		N/A	US$	2,305

(Continued)

80 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		Benchmark 2020-B18 Mortgage Trust	-		Financial assets at fair value through other comprehensive income	-		US$	2,286		N/A	US$	2,286
		BANK5 2023-5YR4	-		〃	-		US$	2,261		N/A	US$	2,261
		Citigroup Commercial Mortgage Trust 2015-P1	-		〃	-		US$	2,231		N/A	US$	2,231
		Wells Fargo Commercial Mortgage Trust 2020-C55	-		〃	-		US$	2,147		N/A	US$	2,147
		Bmark 2018-B5	-		〃	-		US$	2,136		N/A	US$	2,136
		Toyota Auto Receivables 2023 D Owner Trust	-		〃	-		US$	2,131		N/A	US$	2,131
		Ford Credit Auto Owner Trust 2023-C	-		〃	-		US$	2,128		N/A	US$	2,128
		Ford Credit Auto Owner Trust 2023-A	-		〃	-		US$	2,003		N/A	US$	2,003
		Benchmark 2018-B4 Mortgage Trust	-		〃	-		US$	1,970		N/A	US$	1,970
		Ubs 2018-C13	-		〃	-		US$	1,916		N/A	US$	1,916
		Dolp Trust 2021-NYC	-		〃	-		US$	1,895		N/A	US$	1,895
		Bank 2017-Bnk6	-		〃	-		US$	1,872		N/A	US$	1,872
		Mercedes-Benz Auto Receivables Trust 2023-1	-		〃	-		US$	1,691		N/A	US$	1,691
		GM Financial Consumer Automobile Receivables Trust 2023-1	-		〃	-		US$	1,689		N/A	US$	1,689
		Hyundai Auto Receivables Trust 2022-A	-		〃	-		US$	1,569		N/A	US$	1,569
		Wells Fargo Commercial Mortgage Trust 2015-C30	-		〃	-		US$	1,549		N/A	US$	1,549
		UBS Commercial Mortgage Trust 2018-C11	-		〃	-		US$	1,522		N/A	US$	1,522
		American Express Credit Account Master Trust , series 2023-1	-		〃	-		US$	1,508		N/A	US$	1,508
		Morgan Stanley Capital I Trust 2021-L5	-		〃	-		US$	1,386		N/A	US$	1,386
		Wells Fargo Commercial Mortgage Trust 2015-C29	-		〃	-		US$	1,277		N/A	US$	1,277
		Ford Credit Auto Owner Trust 2022-C	-		〃	-		US$	1,251		N/A	US$	1,251
		Morgan Stanley Capital I Trust	-		〃	-		US$	1,223		N/A	US$	1,223
		Gs Mortgage Securities Trust 2018-Gs10	-		〃	-		US$	1,221		N/A	US$	1,221
		BANK 2017-BNK5	-		〃	-		US$	1,146		N/A	US$	1,146
		Hyundai Auto Receivables Trust 2021-C	-		〃	-		US$	1,145		N/A	US$	1,145
		FORD CREDIT AUTO OWNER TRUST 2023-REV2	-		〃	-		US$	1,120		N/A	US$	1,120
		Wells Fargo Commercial Mortgage Trust 2018-C44	-		〃	-		US$	1,005		N/A	US$	1,005
		Morgan Stanley Capital I Trust 2015 - UBS8	-		〃	-		US$	986		N/A	US$	986
		Wells Fargo Commercial Mortgage Trust 2016-LC24	-		〃	-		US$	967		N/A	US$	967
		Citigroup Commercial Mortgage Trust 2016-C3	-		〃	-		US$	963		N/A	US$	963
		Hyundai Auto Receivables Trust 2022-B	-		〃	-		US$	938		N/A	US$	938
		Toyota Auto Receivables 2024-B Owner Trust	-		〃	-		US$	930		N/A	US$	930
		Ford Credit Auto Owner Trust 2022-A	-		〃	-		US$	919		N/A	US$	919
		Benchmark 2021-B24 Mortgage Trust	-		〃	-		US$	859		N/A	US$	859
		Bank 2023-Bnk45	-		〃	-		US$	859		N/A	US$	859
		BBCMS Mortgage Trust 2018-C2	-		〃	-		US$	852		N/A	US$	852
		Nissan Auto Receivables 2023-A Owner Trust	-		〃	-		US$	832		N/A	US$	832
		DBJPM 2016-C1 Mortgage Trust	-		〃	-		US$	776		N/A	US$	776
		JPMCC 2017-JP7	-		〃	-		US$	758		N/A	US$	758
		Honda Auto Receivables 2022-2 Owner Trust	-		〃	-		US$	745		N/A	US$	745
		Honda Auto Receivables 2021 - 4 Owner Trust	-		〃	-		US$	710		N/A	US$	710
		Citigroup Commercial Mortgage Trust 2015-GC35	-		〃	-		US$	700		N/A	US$	700
		Hyundai Auto Receivables Trust 2024-C	-		〃	-		US$	697		N/A	US$	697
		Mhc Commercial Mortgage Trust 2021-Mhc	-		〃	-		US$	697		N/A	US$	697
		Wells Fargo Commercial Mortgage Trust 2017-C40	-		〃	-		US$	597		N/A	US$	597
		JPMBB Commercial Mortgage Securities Trust 2016-C1	-		〃	-		US$	591		N/A	US$	591
		JPMCC Commercial Mortgage Securities Trust 2016 - JP3	-		〃	-		US$	523		N/A	US$	523
		Wells Fargo Commercial Mortgage Trust 2015-C28	-		〃	-		US$	473		N/A	US$	473
		JPMDB 2017-C7	-		〃	-		US$	414		N/A	US$	414
		Toyota Auto Receivables 2021-C Owner Trust	-		〃	-		US$	405		N/A	US$	405
		COMM Mortgage Trust Series 2015-LC19	-		〃	-		US$	339		N/A	US$	339

(Continued)

81 -

Held Company Name		Marketable Securities Type and Name			Financial Statement Account
	Shares/Units<br><br>(In Thousands)			Carrying Value<br><br>(Foreign Currencies<br><br>in Thousands)			Percentage of<br><br>Ownership (%)			Fair Value<br><br>(Foreign Currencies<br><br>in Thousands)
TSMC Global		Citigroup Commercial Mortgage Trust 2018-C5	-		Financial assets at fair value through other comprehensive income	-		US$	336		N/A	US$	336
		Gm Financial Consumer Automobile Receivables Trust 2022-3	-		〃	-		US$	267		N/A	US$	267
		Ford Credit Auto Owner Trust 2023-B	-		〃	-		US$	231		N/A	US$	231
		Ford Credit Auto Owner Trust 2022-B	-		〃	-		US$	204		N/A	US$	204
		Toyota Auto Receivables 2021-D Owner Trust	-		〃	-		US$	201		N/A	US$	201
		Porsche Financial Auto Securitization Trust 2023-1	-		〃	-		US$	198		N/A	US$	198
		Nissan Auto Receivables 2022-B Owner Trust	-		〃	-		US$	194		N/A	US$	194
		Wells Fargo Commercial Mortgage Trust 2015-NXS3	-		〃	-		US$	132		N/A	US$	132
		Morgan Stanley Capital I Trust 2018-H3	-		〃	-		US$	107		N/A	US$	107
		JPMCC 2015 - JP1	-		〃	-		US$	91		N/A	US$	91
		Non-publicly traded equity investments
		Primavera Capital Fund II L.P.	-		Financial assets at fair value through other comprehensive income	-		US$	78,780		4	US$	78,780
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	-		US$	-		N/A	US$	-
		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
		Ayar Labs, Inc.	-		〃	345		US$	5,400		1	US$	5,400
		Cerebras Systems, Inc.	-		〃	341		US$	5,000		-	US$	5,000
		Empower Semiconductor, Inc.	-		〃	868		US$	5,000		2	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
		NeuReality Ltd.	-		〃	1,217		US$	4,302		2	US$	4,302
		Xsight Labs Ltd.	-		〃	500		US$	4,002		1	US$	4,002
		SiMa Technologies, Inc.	-		〃	564		US$	4,000		1	US$	4,000
		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
		Enfabrica Corporation	-		〃	1,048		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
		Raspberry Pi Holdings Plc	-		Financial assets at fair value through other comprehensive income	1,364		US$	10,703		1	US$	10,703
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

(Concluded)

82 -

TABLE 4

Taiwan Semiconductor Manufacturing Company Limited and Investees

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 YEAR ENDED DECEMBER 31, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Company Name		Marketable Securities <br>Type and Name	Financial Statement<br><br>Account	Counterparty			Nature of<br><br>Relationship		Beginning Balance							Acquisition							Disposal																	Ending Balance (Note )
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Shares/Units<br><br>(In Thousands)					Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Shares/Units<br><br>(In Thousands)							Shares/Units<br><br>(In Thousands)							Carrying Value<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Gain/Loss on<br><br>Disposal<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)				Shares/Units<br><br>(In Thousands)
TSMC		Non-publicly traded equity investments
		TSMC Global	Investments accounted for using equity method		-			-			11			441,225,883				8			261,677,200				-		-				-						-				19		772,437,954
		TSMC Arizona	〃		-			-			10,500		298,604,975					7,350		236,121,500					-											-					17,850
		JASM	〃		-			-			2,269		47,087,140					742		15,754,106					-											-					3,011
		VIS	〃		-			-			464,223		13,590,430					42,486		3,738,753					-											-					506,709
		ESMC	〃		-			-			100		4,768,013					665		13,299,041					30									)		5,284					735
		Emerging Fund	〃		-			-			-		1,901,742					-		1,185,722					-											-					-
		VTAF III	〃		-			-			-		257,540					-		-					-											-					-
		Commercial paper
		Cathay Financial Holding Co., Ltd.	Financial assets at amortized cost		-			-			697		6,924,665					1,356		13,474,803					1,129											-					924
		Formosa Chemicals & Fibre Corporation	〃		-			-			100		994,540					740		7,352,476					590											-					250
		China Steel Corporation	〃		-			-			200		1,985,094					920		9,136,858					1,000											-					120
		Formosa Plastics Corporation	〃		-			-			100		996,260					350		3,477,989					350											-					100
		Nan Ya Plastics Corporation	〃		-			-			600		5,976,677					485		4,821,161					1,050											-					35
		CPC Corporation, Taiwan	〃		-			-			100		995,553					370		3,677,952					470											-					-
		Taiwan Power Company	〃		-			-			50		498,916					245		2,427,071					295											-					-
TSMC Partners		Fund
		Carbon Nature SCSp	Financial assets at fair value through Profit or Loss		-			-			-	US			-			-	US			13,939			-	US			-	US			-		US			-			-	US		11,413
		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		137,026
TSMC Global		Corporate bond
		Bank of America Corporation	Financial assets at fair value through other comprehensive income		-			-			-	US			86,588			-	US			42,071			-	US			34,981	US			35,186		US			205			-	US		95,674
		Morgan Stanley	〃		-			-			-	US			76,777			-	US			36,402			-	US			27,731	US			27,700		US			31			-	US		87,312
		Wells Fargo & Company	〃		-			-			-	US			58,351			-	US			35,405			-	US			20,340	US			20,524		US			(184	)		-	US		74,617
		The Goldman Sachs Group, Inc.	〃		-			-			-	US			58,554			-	US			32,401			-	US			18,875	US			18,911		US			(36	)		-	US		73,642
		JPMorgan Chase & Co.	〃		-			-			-	US			62,267			-	US			35,675			-	US			26,976	US			27,187		US			(211	)		-	US		72,101
		Citigroup Inc.	〃		-			-			-	US			50,436			-	US			23,833			-	US			18,431	US			18,508		US			(77	)		-	US		56,810
		HSBC Holdings plc	〃		-			-			-	US			30,124			-	US			31,600			-	US			9,371	US			9,596		US			(225	)		-	US		52,845
		Hyundai Capital America	〃		-			-			-	US			13,567			-	US			25,268			-	US			-	US			-		US			-			-	US		39,105
		BNP Paribas SA	〃		-			-			-	US			20,345			-	US			29,092			-	US			11,256	US			11,296		US			(40	)		-	US		38,517
		Lloyds Banking Group plc	〃		-			-			-	US			24,131			-	US			21,375			-	US			9,529	US			9,483		US			46			-	US		36,440

All values are in US Dollars.

(Continued)

83 -

Company Name		Marketable Securities <br>Type and Name	Financial Statement<br><br>Account
	Shares/Units<br><br>(In Thousands)				Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)		Shares/Units<br><br>(In Thousands)		Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)			Shares/Units<br><br>(In Thousands)		Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)			Carrying Value<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)						Amount<br><br>(Foreign<br><br>Currencies in<br><br>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$	36,329
		Barclays PLC	〃	-		-		-		US$	35,277		-		US$	14,596		-	US	14,240	US	14,156		US$	84		-	US$	35,715
		Nationwide Building Society	〃	-		-		-		US$	17,760		-		US$	19,724		-	US	1,927	US	2,016		US$	(89	)	-	US$	35,644
		NatWest Group plc	〃	-		-		-		US$	6,360		-		US$	29,473		-	US	1,699	US	1,680		US$	19		-	US$	34,193
		Principal Life Global Funding II	〃	-		-		-		US$	17,932		-		US$	22,252		-	US	6,829	US	6,958		US$	(129	)	-	US$	33,881
		American Express Company	〃	-		-		-		US$	13,685		-		US$	20,710		-	US	3,505	US	3,530		US$	(25	)	-	US$	31,036
		Banco Santander, S.A.	〃	-		-		-		US$	29,015		-		US$	14,561		-	US	13,215	US	13,308		US$	(93	)	-	US$	30,804
		BPCE SA	〃	-		-		-		US$	23,875		-		US$	12,832		-	US	6,939	US	6,947		US$	(8	)	-	US$	30,045
		Toyota Motor Credit Corporation	〃	-		-		-		US$	4,261		-		US$	30,740		-	US	4,915	US	5,000		US$	(85	)	-	US$	29,997
		Credit Agricole SA London Branch	〃	-		-		-		US$	20,395		-		US$	16,321		-	US	8,864	US	8,799		US$	65		-	US$	28,366
		Sumitomo Mitsui Financial Group, Inc.	〃	-		-		-		US$	45,172		-		US$	2,412		-	US	21,791	US	21,906		US$	(115	)	-	US$	26,118
		AIG Global Funding	〃	-		-		-		US$	18,428		-		US$	10,208		-	US	3,443	US	3,418		US$	25		-	US$	25,521
		Athene Global Funding	〃	-		-		-		US$	20,297		-		US$	10,811		-	US	7,084	US	7,159		US$	(75	)	-	US$	24,758
		COÖPERATIEVE RABOBANK U.A., NEW YORK BRANCH	〃	-		-		-		US$	8,173		-		US$	17,300		-	US	998	US	1,000		US$	(2	)	-	US$	24,228
		Deutsche Bank AG - New York Branch	〃	-		-		-		US$	10,454		-		US$	21,424		-	US	8,470	US	8,500		US$	(30	)	-	US$	23,782
		The Toronto-Dominion Bank	〃	-		-		-		US$	30,523		-		US$	4,588		-	US	11,779	US	11,856		US$	(77	)	-	US$	23,563
		Penske Truck Leasing Co., L.P.	〃	-		-		-		US$	13,095		-		US$	10,628		-	US	381	US	399		US$	(18	)	-	US$	23,519
		Volkswagen Group of America Finance, LLC	〃	-		-		-		US$	16,251		-		US$	15,690		-	US	10,063	US	10,056		US$	7		-	US$	22,284
		Banque Fédérative du Crédit Mutuel	〃	-		-		-		US$	14,439		-		US$	11,057		-	US	3,620	US	3,592		US$	28		-	US$	21,960
		Glencore Funding LLC	〃	-		-		-		US$	1,556		-		US$	19,310		-	US	-	US	-		US$	-		-	US$	21,086
		Royal Bank of Canada	〃	-		-		-		US$	25,469		-		US$	8,890		-	US	13,689	US	13,841		US$	(152	)	-	US$	20,863
		General Motors Financial Company, Inc.	〃	-		-		-		US$	-		-		US$	20,425		-	US	-	US	-		US$	-		-	US$	20,625
		The Bank of Nova Scotia	〃	-		-		-		US$	16,474		-		US$	10,965		-	US	7,252	US	7,413		US$	(161	)	-	US$	20,432
		Bunge Limited Finance Corp.	〃	-		-		-		US$	-		-		US$	20,603		-	US	-	US	-		US$	-		-	US$	20,202
		Danske Bank A/S	〃	-		-		-		US$	16,698		-		US$	13,103		-	US	9,748	US	9,721		US$	27		-	US$	20,157
		RGA Global Funding	〃	-		-		-		US$	8,977		-		US$	10,770		-	US	-	US	-		US$	-		-	US$	19,988
		Daimler Trucks Finance North America LLC	〃	-		-		-		US$	7,013		-		US$	12,021		-	US	-	US	-		US$	-		-	US$	19,288
		Bank of Montreal	〃	-		-		-		US$	11,032		-		US$	9,984		-	US	2,943	US	2,970		US$	(27	)	-	US$	18,228
		Mitsubishi UFJ Financial Group, Inc.	〃	-		-		-		US$	36,903		-		US$	3,400		-	US	22,941	US	23,219		US$	(278	)	-	US$	18,083
		CNO Global Funding	〃	-		-		-		US$	3,967		-		US$	11,731		-	US	309	US	315		US$	(6	)	-	US$	15,565
		Marsh & McLennan Companies, Inc.	〃	-		-		-		US$	747		-		US$	14,975		-	US	-	US	-		US$	-		-	US$	15,564
		U.S. Bancorp.	〃	-		-		-		US$	16,962		-		US$	12,369		-	US	14,047	US	14,129		US$	(82	)	-	US$	15,440
		Roper Technologies, Inc.	〃	-		-		-		US$	9,177		-		US$	9,457		-	US	3,431	US	3,500		US$	(69	)	-	US$	15,407
		BMW US Capital, LLC	〃	-		-		-		US$	-		-		US$	14,699		-	US	-	US	-		US$	-		-	US$	14,519
		T-Mobile USA, Inc.	〃	-		-		-		US$	1,526		-		US$	13,003		-	US	-	US	-		US$	-		-	US$	14,433
		Philip Morris International Inc.	〃	-		-		-		US$	6,807		-		US$	10,790		-	US	3,424	US	3,385		US$	39		-	US$	14,276
		Quest Diagnostics Incorporated	〃	-		-		-		US$	-		-		US$	14,408		-	US	-	US	-		US$	-		-	US$	14,196
		Santander Holdings USA, Inc.	〃	-		-		-		US$	-		-		US$	13,962		-	US	-	US	-		US$	-		-	US$	14,143
		SMBC Aviation Capital Finance DAC	〃	-		-		-		US$	1,747		-		US$	11,997		-	US	-	US	-		US$	-		-	US$	13,873
		Oracle Corporation	〃	-		-		-		US$	23,751		-		US$	4,995		-	US	14,995	US	15,662		US$	(667	)	-	US$	13,824

All values are in US Dollars.

(Continued)

84 -

Company Name		Marketable Securities <br>Type and Name	Financial Statement<br><br>Account
	Shares/Units<br><br>(In Thousands)				Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)		Shares/Units<br><br>(In Thousands)		Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)			Shares/Units<br><br>(In Thousands)		Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)			Carrying Value<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)						Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)
TSMC Global		Macquarie Bank Limited	Financial assets at fair value through other comprehensive income	-		-		-		US$	8,390		-		US$	10,818		-	US	5,804	US	5,848		US$	(44	)	-	US$	13,650
		Mercedes-Benz Finance North America LLC	〃	-		-		-		US$	-		-		US$	16,734		-	US	3,574	US	3,597		US$	(23	)	-	US$	13,022
		Amphenol Corporation	〃	-		-		-		US$	-		-		US$	12,737		-	US	-	US	-		US$	-		-	US$	12,833
		American Honda Finance Corporation	〃	-		-		-		US$	2,087		-		US$	19,874		-	US	8,989	US	8,918		US$	71		-	US$	12,774
		Jackson National Life Global Funding	〃	-		-		-		US$	3,563		-		US$	12,386		-	US	3,652	US	3,712		US$	(60	)	-	US$	12,563
		The Bank of New York Mellon Corporation	〃	-		-		-		US$	16,064		-		US$	5,984		-	US	9,757	US	9,402		US$	355		-	US$	12,428
		BAE Systems plc	〃	-		-		-		US$	-		-		US$	12,292		-	US	-	US	-		US$	-		-	US$	12,425
		Bristol-Myers Squibb Company	〃	-		-		-		US$	4,604		-		US$	21,106		-	US	14,572	US	14,275		US$	297		-	US$	11,585
		Swedbank AB (publ)	〃	-		-		-		US$	2,399		-		US$	9,999		-	US	946	US	1,000		US$	(54	)	-	US$	11,541
		Elevance Health, Inc.	〃	-		-		-		US$	5,914		-		US$	9,976		-	US	4,804	US	4,740		US$	64		-	US$	11,154
		Prologis Targeted U.S. Logistics Fund L.P.	〃	-		-		-		US$	-		-		US$	10,940		-	US	-	US	-		US$	-		-	US$	11,127
		MassMutual Global Funding II	〃	-		-		-		US$	506		-		US$	10,025		-	US	-	US	-		US$	-		-	US$	10,851
		DTE Energy Company	〃	-		-		-		US$	1,685		-		US$	10,580		-	US	1,712	US	1,735		US$	(23	)	-	US$	10,651
		National Rural Utilities Cooperative Finance Corporation	〃	-		-		-		US$	1,445		-		US$	9,899		-	US	950	US	999		US$	(49	)	-	US$	10,402
		Hewlett Packard Enterprise Company	〃	-		-		-		US$	-		-		US$	9,989		-	US	-	US	-		US$	-		-	US$	9,766
		Accenture Capital Inc.	〃	-		-		-		US$	-		-		US$	12,196		-	US	2,980	US	2,996		US$	(16	)	-	US$	8,979
		Keurig Dr Pepper Inc.	〃	-		-		-		US$	-		-		US$	11,790		-	US	4,980	US	4,987		US$	(7	)	-	US$	6,880
		Fiserv, Inc.	〃	-		-		-		US$	6,745		-		US$	10,068		-	US	10,634	US	10,662		US$	(28	)	-	US$	6,242
		Marriott International, Inc.	〃	-		-		-		US$	271		-		US$	9,744		-	US	4,582	US	4,488		US$	94		-	US$	5,525
		AbbVie Inc.	〃	-		-		-		US$	26,895		-		US$	8,427		-	US	30,655	US	30,962		US$	(307	)	-	US$	4,965
		Société Générale Société anonyme	〃	-		-		-		US$	16,589		-		US$	-		-	US	12,218	US	12,345		US$	(127	)	-	US$	4,618
		CVS Health Corporation	〃	-		-		-		US$	24,591		-		US$	-		-	US	22,083	US	21,803		US$	280		-	US$	2,354
		The Kroger Co.	〃	-		-		-		US$	-		-		US$	14,886		-	US	15,049	US	14,887		US$	162		-	US$	-
		Bank of America Corporation	Financial assets at amortized cost	-		-		-		US$	799,449		-		US$	558,380		-	US	279,000	US	278,987		US$	13		-	US$	1,090,390
		Wells Fargo & Company	〃	-		-		-		US$	619,830		-		US$	577,074		-	US	144,000	US	143,976		US$	24		-	US$	1,068,098
		Citigroup Inc.	〃	-		-		-		US$	271,462		-		US$	697,689		-	US	228,000	US	227,997		US$	3		-	US$	744,664
		Morgan Stanley	〃	-		-		-		US$	566,880		-		US$	293,824		-	US	297,000	US	296,972		US$	28		-	US$	571,972
		JPMorgan Chase & Co.	〃	-		-		-		US$	391,868		-		US$	335,127		-	US	171,000	US	170,999		US$	1		-	US$	567,099
		The Goldman Sachs Group, Inc.	〃	-		-		-		US$	432,811		-		US$	362,921		-	US	267,000	US	267,000		US$	-		-	US$	531,503
		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$	39,266		-	US	4,000	US	4,000		US$	-		-	US$	44,841
		Morgan Stanley Bank, N.A.	〃	-		-		-		US$	-		-		US$	27,014		-	US	-	US	-		US$	-		-	US$	27,003
		BPCE SA	〃	-		-		-		US$	7,874		-		US$	9,633		-	US	-	US	-		US$	-		-	US$	17,696
		Athene Global Funding	〃	-		-		-		US$	5,122		-		US$	9,583		-	US	-	US	-		US$	-		-	US$	14,814
		Credit Agricole SA London Branch	〃	-		-		-		US$	-		-		US$	9,727		-	US	-	US	-		US$	-		-	US$	9,748
		NatWest Group plc	〃	-		-		-		US$	-		-		US$	9,718		-	US	-	US	-		US$	-		-	US$	9,696
		Macquarie Group Limited	〃	-		-		-		US$	-		-		US$	9,616		-	US	-	US	-		US$	-		-	US$	9,632
		Danske Bank A/S	〃	-		-		-		US$	-		-		US$	9,613		-	US	-	US	-		US$	-		-	US$	9,625
		HSBC Holdings plc	〃	-		-		-		US$	-		-		US$	9,582		-	US	-	US	-		US$	-		-	US$	9,570

All values are in US Dollars.

(Continued)

85 -

Company Name		Marketable Securities <br>Type and Name	Financial Statement<br><br>Account
	Shares/Units<br><br>(In Thousands)				Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)		Shares/Units<br><br>(In Thousands)		Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)			Shares/Units<br><br>(In Thousands)		Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)			Carrying Value<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)						Amount<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)
TSMC Global		Hyundai Capital America	Financial assets at amortized cost	-		-		-		US$	-		-		US$	9,541		-	US	-	US	-		US$	-		-	US$	9,562
		Barclays PLC	〃	-		-		-		US$	-		-		US$	9,560		-	US	-	US	-		US$	-		-	US$	9,536
		Coöperatieve Rabobank U.A.	〃	-		-		-		US$	-		-		US$	9,407		-	US	-	US	-		US$	-		-	US$	9,430
		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$	265,914		-	US	264,084	US	271,966		US$	(7,882	)	-	US$	651,715
		Federal Home Loan Mortgage Corporation	〃	-		-		-		US$	350,328		-		US$	294,896		-	US	144,307	US	146,914		US$	(2,607	)	-	US$	496,172
		Government National Mortgage Association	〃	-		-		-		US$	225,310		-		US$	124,487		-	US	70,649	US	71,381		US$	(732	)	-	US$	274,580
		Government bond/Agency bonds
		United States Department of The Treasury	Financial assets at fair value through other comprehensive income	-		-		-		US$	718,479		-		US$	176,221		-	US	276,660	US	279,897		US$	(3,237	)	-	US$	630,062
		Federal Home Loan Mortgage Corporation	〃	-		-		-		US$	6,995		-		US$	4,996		-	US	12,002	US	11,990		US$	12		-	US$	-
		United States Department of The Treasury	Financial assets at amortized cost	-		-		-		US$	88,940		-		US$	44,399		-	US	-	US	-		US$	-		-	US$	133,653
		Federal Home Loan Banks	〃	-		-		-		US$	225,000		-		US$	30,000		-	US	255,000	US	255,000		US$	-		-	US$	-
		Federal Home Loan Mortgage Corporation	〃	-		-		-		US$	135,000		-		US$	30,000		-	US	165,000	US	165,000		US$	-		-	US$	-
		Asset-backed securities
		G23-182I	Financial assets at fair value through other comprehensive income	-		-		-		US$	-		-		US$	10,151		-	US	3,734	US	3,735		US$	(1	)	-	US$	6,433
		JPMBB Commercial Mortgage Securities Trust 2014-C24	〃	-		-		-		US$	9,818		-		US$	-		-	US	10,000	US	10,016		US$	(16	)	-	US$	-
Emerging Fund		Publicly traded stocks
		Astera Labs, Inc.	Financial assets at fair value through other comprehensive income	-		-		744		US$	9,680		-		US$	-		744	US	64,393	US	5,000		US$	59,393		-	US$	-
Growth Fund		Publicly traded stocks
		Astera Labs, Inc.	Financial assets at fair value through other comprehensive income	-		-		319		US$	4,146		-		US$	-		319	US	23,243	US	250		US$	22,993		-	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)

86 -

TABLE 5

Taiwan Semiconductor Manufacturing Company Limited and Investees

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

FOR THE YEAR ENDED DECEMBER 31, 2024<br><br>(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Company<br><br>Name		Types of<br><br>Property		Transaction Date	Transaction Amount(Foreign Currencies in Thousands)	Payment Term		Counterparty	Nature of<br><br>Relationships	Prior Transaction of Related Counterparty				Price<br><br>Reference	Purpose of<br><br>Acquisition	Other<br><br>Terms
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Owner		Relationships				Amount
TSMC		Real estate		February 06, 2024<br><br>(Note)	US 2,155,000(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)

87 -

Company<br><br>Name		Types of<br><br>Property				Counterparty
	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)

88 -

Company<br><br>Name		Types of<br><br>Property				Counterparty
	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)

89 -

Company<br><br>Name		Types of<br><br>Property		Transaction Date	Transaction Amount(Foreign Currencies in Thousands)	Payment Term		Counterparty	Nature of<br><br>Relationships	Prior Transaction of Related Counterparty				Price<br><br>Reference	Purpose of<br><br>Acquisition	Other<br><br>Terms
	Owner		Relationships				Amount
TSMC		Real estate		June 05, 2024<br><br>(Note)	US 11,014,000(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)

90 -

Company<br><br>Name		Types of<br><br>Property				Counterparty
	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)

91 -

Company<br><br>Name		Types of<br><br>Property				Counterparty
	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.
						Mandartech Interiors Inc.

(Continued)

92 -

Company<br><br>Name		Types of<br><br>Property		Transaction Date	Transaction Amount(Foreign Currencies in Thousands)	Payment Term		Counterparty	Nature of<br><br>Relationships	Prior Transaction of Related Counterparty				Price<br><br>Reference	Purpose of<br><br>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(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.
								Mandartech Interiors Inc.

All values are in US Dollars.

(Continued)

93 -

Company<br><br>Name		Types of<br><br>Property				Counterparty
	Owner		Relationships	Transfer Date	Amount
TSMC		Real estate				Cheng Deh Fire Protection Industrial Corp.
						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.

(Continued)

94 -

Company<br><br>Name		Types of<br><br>Property				Counterparty
	Owner		Relationships	Transfer Date	Amount
TSMC		Real estate				Mandartech Interiors Inc.
						Marketech International Corp.
						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

(Continued)

95 -

Company<br><br>Name		Types of<br><br>Property		Transaction Date	Transaction Amount(Foreign Currencies in Thousands)	Payment Term		Counterparty	Nature of<br><br>Relationships	Prior Transaction of Related Counterparty				Price<br><br>Reference	Purpose of<br><br>Acquisition	Other<br><br>Terms
	Owner		Relationships				Amount
TSMC		Real estate						Weltall Technology Corporation
								Wholetech System Hitech Limited
								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.
		Real estate		November 12, 2024<br><br>(Note)	US 11,215,000(Note)	Based on the terms in the purchase order		113 counterparties (Note), including:	-	N/A	N/A	N/A	N/A	Price comparison and price negotiation	Manufacturing purpose	None
								ABB K.K
								Addtron Technology (Japan) Inc.
								Bilfinger Water Technologies GmbH
								Central Taiwan Science Park Bureau, National Science and Technology Council
								Chen Yuan International Co., Ltd.
								Drees & Sommer SE
								Exyte Central Europe Ltd.
								Hager+Elsässer GmbH
								IAQ technology
								Intega GmbH
								JAPAN MATERIAL Co., Ltd.
								JG Environmental Technology Co., Ltd.
								Kajima Corporation
								Kanto Chemical Engineering Co., Ltd.
								Kaohsiung City Government

All values are in US Dollars.

(Continued)

96 -

Company<br><br>Name		Types of<br><br>Property				Counterparty
	Owner		Relationships	Transfer Date	Amount
TSMC		Real estate				KENDAI Co., Ltd.
						Kinetics Germany GmbH
						Kurita Water Industries Ltd.
						Lumax International Corp., Ltd.
						Marketech International Corporation
						ORGANO CORPORATION
						Shimizu Corporation
						Southern Taiwan Science Park Bureau, Ministry of Science and Technology
						Taikisha Ltd.
						Taiwan Puritic Corp.
						Taiwan Valqua Engineering International, Ltd.
						Taiyo Nippon Sanso Corporation
						Takenaka Corporation
						TOPLINE SYSTEM ENGINEERING CO., LTD.
						Toray Engineering West Co., Ltd.
						Tosei Technology Japan Co., Ltd.
						Uangyih-Tech Industrial Co., Ltd.
						United Integrated Services Co., Ltd.

(Concluded)

97 -

TABLE 6

Taiwan Semiconductor Manufacturing Company Limited and Investees

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 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<br><br>in Thousands)					% to<br><br>Total		Payment Terms	Unit Price			Payment Terms	Ending Balance<br><br>(Foreign Currencies<br><br>in Thousands)			% to<br><br>Total
TSMC		TSMC North America		Subsidiary	Sales		2,057,313,208			71		Net 30 days from invoice date (Note)		-	-		209,056,572			84
		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		-	-					-
		TSMC Nanjing		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					37		Net 30 days from the end of the month of when invoice is issued		-	-				)	4
		TSMC China		Subsidiary	Purchases					14		Net 30 days from the end of the month of when invoice is issued		-	-				)	2
		TSMC Arizona		Subsidiary	Purchases					-		Net 30 days from the end of the month of when invoice is issued		-	-				)	1
		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		7,285,137<br><br>227,111	)	-		Net 30 days from invoice date		-	-	(US		179,266<br><br>5,471	)	-
VisEra Tech		Xintec		Associate of TSMC	Sales					7		Net 60 days from the end of the month of when invoice is issued		-	-					9

All values are in US Dollars.

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

98 -

TABLE 7

Taiwan Semiconductor Manufacturing Company Limited and Investees

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

DECEMBER 31, 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 <br>(Note 1)		Overdue			Amounts Received in Subsequent Period		Allowance forBad Debts
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Amount					Action Taken
TSMC		TSMC North America	Subsidiary		214,106,805					32		-	-		-		-
		TSMC Arizona	Subsidiary							33			-
		VIS	Associate							Note 3			-
		GUC	Associate							24			-
TSMC North America		GUC	Associate of TSMC	(			179,266<br><br>5,471	)		6			-
TSMC JDC		TSMC	Parent company	(			144,709<br><br>691,723	)		Note 2			-
TSMC China		TSMC	Parent company	(RMB			1,848,450<br><br>411,693	)		28			-
		TSMC Nanjing	The same parent company	(RMB			27,086,790<br><br>6,032,827	)		Note 2			-
TSMC Nanjing		TSMC	Parent company	(RMB			4,473,370<br><br>996,324	)		25			-
VisEra Tech		Xintec	Associate of TSMC							59			-
TSMC Arizona		TSMC	Parent company	(			44,867,669<br><br>1,369,253	)		Note 2			-
TSMC Technology		TSMC	The ultimate parent of the Company	(			743,091<br><br>22,677	)		Note 2			-
TSMC Development		TSMC Washington	Subsidiary	(			983,040<br><br>30,000	)		Note 2			-
TSMC Washington		TSMC	The ultimate parent of the Company	(			529,200<br><br>16,150	)		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.

Note 3: The ending balance is primarily consisted of royalty receivables, collected in accordance with contractual terms, which is not applicable for the calculation of turnover days.

99 -

TABLE 8

Taiwan Semiconductor Manufacturing Company Limited and Investees

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN MAINLAND CHINA)

FOR THE YEAR ENDED DECEMBER 31, 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)						Note
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	December 31,<br><br>2024<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)						December 31,<br><br>2023<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)					Shares (In<br><br>Thousands)			Percentage of<br><br>Ownership		Carrying Value<br><br>(Foreign<br><br>Currencies in<br><br>Thousands)
TSMC		TSMC Global	Tortola, British Virgin Islands	Investment activities		616,839,509					355,162,309					19		100		772,437,954				37,342,396			37,342,396		Subsidiary
		TSMC Arizona	Phoenix, Arizona, U.S.A.	Manufacturing, sales and testing of integrated circuits and other semiconductor devices												17,850		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, and testing of integrated circuits and other semiconductor devices												3,011		73								)		)	Subsidiary
		VIS	Hsinchu, Taiwan	Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks												506,709		28											Associate
		ESMC	Dresden, Germany	Manufacturing, sales and testing of integrated circuits and other semiconductor devices												735		70								)		)	Subsidiary
		VisEra Tech	Hsinchu, 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
		Xintec	Taoyuan, Taiwan	Wafer level chip size packaging and wafer level post passivation interconnection service												111,282		41											Associate
		GUC	Hsinchu, Taiwan	Researching, developing, manufacturing, testing and marketing of integrated circuits												46,688		35											Associate
		Emerging Fund	Cayman Islands	Investing in technology start-up companies												-		99.9								)		)	Subsidiary
		TSMC 3DIC	Yokohama, Japan	Engineering support activities												49		100											Subsidiary
		TSMC Europe	Amsterdam, the Netherlands	Customer service and supporting activities												-		100											Subsidiary
		TSMC JDC	Yokohama, Japan	Engineering support activities												15		100											Subsidiary
		TSMC Japan	Yokohama, Japan	Customer service and supporting activities												6		100											Subsidiary
		TSMC Korea	Seoul, Korea	Customer service and supporting activities												80		100											Subsidiary
		VTAF III	Cayman Islands	Investing in technology start-up companies												-		98											Subsidiary
		VTAF II	Cayman Islands	Investing in technology start-up companies												-		98								)		)	Subsidiary
TSMC Partners		TSMC Development	Delaware, U.S.A	Investing in companies involved in semiconductor manufacturing	(US			19,232,811<br><br>586,939	$<br><br>)	(US			19,232,811<br><br>586,939	)		-		100	(US		39,971,252<br><br>1,219,826	$<br><br>)	(US		(346,954<br><br>(10,922	)))			Subsidiary
		TSMC Technology	Delaware, U.S.A	Engineering support activities	(US			467,993<br><br>14,282	$<br><br>)	(US			467,993<br><br>14,282	)		-		100	(US		1,559,346<br><br>47,587	$<br><br>)	(US		351,561<br><br>10,949	)			Subsidiary
		TSMC Canada	Ontario, Canada	Engineering support activities	(US			75,366<br><br>2,300	$<br><br>)	(US			75,366<br><br>2,300	)		2,300		100	(US		424,072<br><br>12,942	$<br><br>)	(US		52,594<br><br>1,643	)			Subsidiary
VTAF III		Growth Fund	Cayman Islands	Investing in technology start-up companies	(US			40,498<br><br>1,236	$<br><br>)	(US			75,217<br><br>2,295	)		-		100					(US		4,254<br><br>132	)			Subsidiary
TSMC Development		TSMC Washington	Washington, U.S.A	Manufacturing, sales and testing of integrated circuits and other semiconductor devices												293,637		100	(US		5,186,093<br><br>158,267	$<br><br>)	(US		(1,001,385<br><br>(31,319	)))			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.

100 -

TABLE 9

Taiwan Semiconductor Manufacturing Company Limited and Investees

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2024

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Investee Company		Total Amount of<br><br>Paid-in Capital<br><br>(RMB in Thousands)			Method of<br><br>Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2024(US in Thousands)		Investment Flows				Accumulated Outflow of Investment from Taiwan as ofDecember 31, 2024 (US in Thousands)		Net Income (Losses) of the Investee Company		Percentage of<br><br>Ownership		Share of Profits/Losses			Carrying Amount as of Balance as of December 31, 2024		Accumulated Inward Remittance of Earnings as of December 31, 2024
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Outflow(US in Thousands)			Inflow
TSMC China		$<br><br>(RMB	18,939,667<br><br>4,502,080	)	(Note 1)	(US	)		-		-	(US	)		11,273,152		100%		11,359,207<br><br>(Note 2	)		110,272,686		-
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 December 31, 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)	$ 2,594,145,519<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 audited 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.

101 -

TABLE 10

Taiwan Semiconductor Manufacturing Company Limited

INFORMATION ON MAJOR SHAREHOLDERS

DECEMBER 31, 2024
Shareholders (Note 1)		Shares
---	---	---	---	---	---
	Total Shares Owned			Ownership Percentage (Note 2)
ADR-Taiwan Semiconductor Manufacturing Company Ltd.			5,313,843,923		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.

102 -

THE CONTENTS OF STATEMENTS OF MAJOR

ACCOUNTING ITEMS

ITEM	STATEMENT INDEX
MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY
STATEMENT OF CASH AND CASH EQUIVALENTS		1
STATEMENT OF NOTES AND ACCOUNTS RECEIVABLE, NET		2
STATEMENT OF RECEIVABLES FROM RELATED PARTIES		3
STATEMENT OF INVENTORIES		4
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD		5
STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT		Note 13
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION AND ACCUMULATED IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT		Note 13
STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS		6
STATEMENT OF CHANGES IN INTANGIBLE ASSETS		Note 15
STATEMENT OF DEFERRED INCOME TAX ASSETS / LIABILITIES		Note 23
STATEMENT OF ACCOUNTS PAYABLES		7
STATEMENT OF PAYABLES TO RELATED PARTIES		8
STATEMENT OF PAYABLES TO CONTRACTORS AND EQUIPMENT SUPPLIERS		9
STATEMENT OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES		10
STATEMENT OF BONDS PAYABLE		11
STATEMENT OF LEASE LIABILITIES		12
MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS
STATEMENT OF NET REVENUE		13
STATEMENT OF COST OF REVENUE		14
STATEMENT OF OPERATING EXPENSES		15
STATEMENT OF FINANCE COSTS		Note 21
STATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION		16

103 -

STATEMENT 1

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Item	Description
---	---	---
Cash
Petty cash		450
Cash in banks
Checking accounts and demand deposits
Foreign currency deposits	Including US1,687,954 thousand @32.768, 65,913,663 thousand @0.2092 and 3,141 thousand @34.102
Time deposits	From 2024.07.22 to 2025.09.30, interest rates at 0.30%-5.19%, including NT664,681,500 thousand, US8,133,745 thousand @32.768, 50,000,000 thousand @0.2092 and 580,296 thousand @34.102
Cash equivalents
Commercial papers	Expired by 2025.01.15, interest rates at 1.74%
Repurchase agreements	Expired by 2025.01.23, interest rates at 4.87%
Total		1,035,061,499

All values are in US Dollars.

104 -

STATEMENT 2

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF NOTES AND ACCOUNTS RECEIVABLE, NET

DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)
Client Name	Amount
---	---	---	---
Client A		14,659,725
Client B
Client C
Client D
Others (Note)

Less: Allowance for doubtful accounts			)
Total		39,497,003

All values are in US Dollars.

Note: The amount of individual client included in others does not exceed 5% of the account balance.

105 -

STATEMENT 3

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF RECEIVABLES FROM RELATED PARTIES

DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)
Client Name	Amount
---	---	---
TSMC North America		209,056,572
Others (Note)
Total		210,300,175

All values are in US Dollars.

Note: The amount of individual client included in others does not exceed 5% of the account balance.

106 -

STATEMENT 4

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF INVENTORIES

DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)
	Amount
---	---	---	---	---
Item	Cost		Net Realizable Value
Finished goods		33,980,459		114,855,433
Work in process
Raw materials
Supplies and spare parts
Total		270,716,472		1,030,205,348

All values are in US Dollars.

107 -

STATEMENT 5

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
															Increase
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
															(Decrease)
															in Using the									Market Value or
	Balance, January 1, 2024				Additions in Investment				Decrease in Investment						Equity Method			Balance, December 31, 2024						Net Assets Value
	Shares				Shares				Shares						Amount			Shares						Unit Price
Investees	(In Thousands)		Amount		(In Thousands)		Amount		(In Thousands)			Amount			(Note 2)			(In Thousands)		%		Amount		(NT)			Total Amount		Collateral
Stocks
TSMC Global		11		441,225,883		8		261,677,200		-			-			69,534,871			19		100		772,437,954		-			772,437,954		Nil
TSMC Arizona		10,500				7,350				-									17,850		100									Nil
TSMC Partners		988,268				-				-									988,268		100									Nil
JASM		2,269				742				-							)		3,011		73									Nil
VIS		464,223				42,486				-									506,709		28					)				Nil
ESMC		100				665				(30	)						)		735		70									Nil
VisEra Tech		213,619				-				-									213,619		67					)				Nil
SSMC		314				-				-									314		39									Nil
TSMC North America		11,000				-				-									11,000		100									Nil
Xintec		111,282				-				-									111,282		41					)				Nil
GUC		46,688				-				-									46,688		35					)				Nil
TSMC 3DIC		49				-				-									49		100									Nil
TSMC Europe		-				-				-									-		100									Nil
TSMC JDC		15				-				-									15		100									Nil
TSMC Japan		6				-				-							)		6		100									Nil
TSMC Korea		80				-				-							)		80		100									Nil
Subtotal
Capital
TSMC Nanjing		-				-				-									-		100									Nil
TSMC China		-				-				-									-		100									Nil
Emerging Fund		-				-				-				)					-		99.9									Nil
VTAF III		-				-				-				)					-		98									Nil
VTAF II		-				-				-				)			)		-		98									Nil
Subtotal														)
Total				1,094,695,092				531,776,322					(941,738	)		133,058,206							1,758,587,882					1,922,816,836

All values are in US Dollars.

Note 1: The unit price is calculated by closing price of the Taipei Exchange or the TWSE as of December 31, 2024.

Note 2: Mainly including share of profit or loss of subsidiaries and associates, share of other comprehensive income or loss of subsidiaries and associates, cash dividends received from subsidiaries and associates, etc.

108 -

STATEMENT 6

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)
Item	Land			Buildings			Office Equipment			Total
---	---	---	---	---	---	---	---	---	---	---	---	---
Cost
Balance at January 1, 2024		45,554,886			1,813,535			58,183			47,426,604
Additions
Deductions			)			)			)			)
Balance at December 31, 2024		47,535,869			2,686,676			50,962			50,273,507
Accumulated depreciation
Balance at January 1, 2024		8,515,741			1,002,498			35,660			9,553,899
Additions
Deductions			)						)			)
Balance at December 31, 2024		10,919,881			1,423,766			30,713			12,374,360
Carrying amounts at December 31, 2024		36,615,988			1,262,910			20,249			37,899,147

All values are in US Dollars.

109 -

STATEMENT 7

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF ACCOUNTS PAYABLES

DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)
Vendor Name	Amount
---	---	---
Vendor A		3,287,759
Others (Note)
Total		64,054,077

All values are in US Dollars.

Note: The amount of individual vendor included in others does not exceed 5% of the account balance.

110 -

STATEMENT 8

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF PAYABLES TO RELATED PARTIES

DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)
Vendor Name	Amount
---	---	---
TSMC Nanjing		4,473,370
TSMC China
Xintec
TSMC Technology
TSMC Arizona
TSMC Washington
Others (Note)
Total		10,137,811

All values are in US Dollars.

Note: The amount of individual vendor in others does not exceed 5% of the account balance.

111 -

STATEMENT 9

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF PAYABLES TO CONTRACTORS AND EQUIPMENT SUPPLIERS

DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)
Vendor Name	Amount
---	---	---
Vendor A		19,022,363
Vendor B
Vendor C
Vendor D
Vendor E
Others (Note)
Total		150,280,751

All values are in US Dollars.

Note: The amount of individual vendor included in others does not exceed 5% of the account balance.

112 -

STATEMENT 10

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)
Item	Amount
---	---	---
Temporary receipts from customers		198,602,570
Contract liabilities
Refund liability
Payables for capital injection
Others (Note)
Total		449,236,841

All values are in US Dollars.

Note: The amount of each item in others does not exceed 5% of the account balance.

113 -

STATEMENT 11

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF BONDS PAYABLE

DECEMBER 31, 2024<br><br>(In Thousands of New Taiwan Dollars)
						Amount
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
			Interest	Coupon				Repayment		Balance,		Premiums
Bonds Name	Trustee	Issuance Date	Payment Date	Rate (%)		Total Amount		Paid		End of Year		(Discounts)			Carrying Value		Unamortized Repayment	Collateral
Domestic unsecured bonds-109-1
-A	Taipei Fubon Commercial Bank Co., Ltd.	2020.03.23	On 03.23 annually		0.58		3,000,000		-		3,000,000		(131	)		2,999,869	Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2020.03.23	On 03.23 annually		0.62									)			Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2020.03.23	On 03.23 annually		0.64									)			Bullet repayment		Nil
Domestic unsecured bonds-109-2
-A	Taipei Fubon Commercial Bank Co., Ltd.	2020.04.15	On 04.15 annually		0.52									)			Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2020.04.15	On 04.15 annually		0.58									)			Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2020.04.15	On 04.15 annually		0.60									)			Bullet repayment		Nil
Domestic unsecured bonds-109-3
-A	Taipei Fubon Commercial Bank Co., Ltd.	2020.05.29	On 05.29 annually		0.55									)			Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2020.05.29	On 05.29 annually		0.60									)			Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2020.05.29	On 05.29 annually		0.64									)			Bullet repayment		Nil
Domestic unsecured bonds-109-4
-A	Taipei Fubon Commercial Bank Co., Ltd.	2020.07.14	On 07.14 annually		0.58									)			Two equal installments in last two years		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2020.07.14	On 07.14 annually		0.65									)			Two equal installments in last two years		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2020.07.14	On 07.14 annually		0.67									)			Two equal installments in last two years		Nil
Domestic unsecured bonds-109-5
-A	Taipei Fubon Commercial Bank Co., Ltd.	2020.09.03	On 09.03 annually		0.50									)			Two equal installments in last two years		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2020.09.03	On 09.03 annually		0.58									)			Two equal installments in last two years		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2020.09.03	On 09.03 annually		0.60									)			Two equal installments in last two years		Nil
Domestic unsecured bonds-109-6
-A	Taipei Fubon Commercial Bank Co., Ltd.	2020.12.02	On 12.02 annually		0.40									)			Two equal installments in last two years		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2020.12.02	On 12.02 annually		0.44									)			Two equal installments in last two years		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2020.12.02	On 12.02 annually		0.48									)			Two equal installments in last two years		Nil
Domestic unsecured bonds-109-7
-A	Taipei Fubon Commercial Bank Co., Ltd.	2020.12.29	On 12.29 annually		0.36									)			Two equal installments in last two years		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2020.12.29	On 12.29 annually		0.41									)			Two equal installments in last two years		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2020.12.29	On 12.29 annually		0.45									)			Two equal installments in last two years		Nil
Domestic US$ unsecured bonds-109-1	Mega International Commercial Bank Co., Ltd.	2020.09.22	On 09.22 annually		2.70									)			Bullet repayment (callable on the 5th anniversary of the issue date and every anniversary thereafter)		Nil
Domestic unsecured bonds-110-1
-A	Taipei Fubon Commercial Bank Co., Ltd.	2021.03.30	On 03.30 annually		0.50									)			Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2021.03.30	On 03.30 annually		0.55									)			Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2021.03.30	On 03.30 annually		0.60									)			Bullet repayment		Nil
Domestic unsecured bonds-110-2
-A	Taipei Fubon Commercial Bank Co., Ltd.	2021.05.03	On 05.03 annually		0.50									)			Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2021.05.03	On 05.03 annually		0.58									)			Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2021.05.03	On 05.03 annually		0.65									)			Bullet repayment		Nil
Domestic unsecured bonds-110-3
-A	Taipei Fubon Commercial Bank Co., Ltd.	2021.06.25	On 06.25 annually		0.52									)			Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2021.06.25	On 06.25 annually		0.58									)			Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2021.06.25	On 06.25 annually		0.65									)			Bullet repayment		Nil
Domestic unsecured bonds-110-4
-A	Taipei Fubon Commercial Bank Co., Ltd.	2021.08.19	On 08.19 annually		0.485									)			Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2021.08.19	On 08.19 annually		0.50									)			Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2021.08.19	On 08.19 annually		0.55									)			Bullet repayment		Nil
-D	Taipei Fubon Commercial Bank Co., Ltd.	2021.08.19	On 08.19 annually		0.62									)			Bullet repayment		Nil
Domestic US$ unsecured bonds-110-5	Mega International Commercial Bank Co., Ltd.	2021.09.23	On 09.23 annually		3.10									)			Bullet repayment (callable on the 5th anniversary of the issue date and every anniversary thereafter)		Nil
Domestic unsecured bonds-110-6
-A	Taipei Fubon Commercial Bank Co., Ltd.	2021.10.05	On 10.05 annually		0.535									)			Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2021.10.05	On 10.05 annually		0.54									)			Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2021.10.05	On 10.05 annually		0.60									)			Bullet repayment		Nil
-D	Taipei Fubon Commercial Bank Co., Ltd.	2021.10.05	On 10.05 annually		0.62									)			Bullet repayment		Nil

All values are in US Dollars.

(Continued)

114 -

						Amount
			Interest	Coupon				Repayment		Balance,		Premiums
Bonds Name	Trustee	Issuance Date	Payment Date	Rate (%)		Total Amount		Paid		End of Year		(Discounts)			Carrying Value			Unamortized Repayment	Collateral
Domestic unsecured bonds-110-7
-A	Taipei Fubon Commercial Bank Co., Ltd.	2021.12.09	On 12.09 annually		0.65		7,700,000		-		7,700,000		(3,158	)		7,696,842		Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2021.12.09	On 12.09 annually		0.675									)				Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2021.12.09	On 12.09 annually		0.72									)				Bullet repayment		Nil
Domestic unsecured bonds-111-1
-A	Taipei Fubon Commercial Bank Co., Ltd.	2022.01.12	On 01.12 annually		0.63									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2022.01.12	On 01.12 annually		0.72									)				Bullet repayment		Nil
Domestic unsecured bonds-111-2
-A	Taipei Fubon Commercial Bank Co., Ltd.	2022.03.29	On 03.29 annually		0.84									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2022.03.29	On 03.29 annually		0.85									)				Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2022.03.29	On 03.29 annually		0.90									)				Bullet repayment		Nil
Domestic unsecured bonds-111-3	Taipei Fubon Commercial Bank Co., Ltd.	2022.05.20	On 05.20 annually		1.50									)				Bullet repayment		Nil
Domestic unsecured bonds-111-4
-A	Taipei Fubon Commercial Bank Co., Ltd.	2022.07.27	On 07.27 annually		1.60									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2022.07.27	On 07.27 annually		1.70									)				Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2022.07.27	On 07.27 annually		1.75									)				Bullet repayment		Nil
-D	Taipei Fubon Commercial Bank Co., Ltd.	2022.07.27	On 07.27 annually		1.95									)				Bullet repayment		Nil
Domestic unsecured bonds-111-5
-A	Taipei Fubon Commercial Bank Co., Ltd.	2022.08.25	On 08.25 annually		1.65									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2022.08.25	On 08.25 annually		1.65									)				Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2022.08.25	On 08.25 annually		1.65									)				Bullet repayment		Nil
-D	Taipei Fubon Commercial Bank Co., Ltd.	2022.08.25	On 08.25 annually		1.82									)				Bullet repayment		Nil
Domestic unsecured bonds-111-6
-A	Taipei Fubon Commercial Bank Co., Ltd.	2022.10.20	On 10.20 annually		1.75									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2022.10.20	On 10.20 annually		1.80									)				Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2022.10.20	On 10.20 annually		2.00									)				Bullet repayment		Nil
Domestic unsecured bonds-112-1
-A	Taipei Fubon Commercial Bank Co., Ltd.	2023.03.28	On 03.28 annually		1.54									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2023.03.28	On 03.28 annually		1.60									)				Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2023.03.28	On 03.28 annually		1.78									)				Bullet repayment		Nil
Domestic unsecured bonds-112-2
-A	Taipei Fubon Commercial Bank Co., Ltd.	2023.05.03	On 05.03 annually		1.60									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2023.05.03	On 05.03 annually		1.65									)				Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2023.05.03	On 05.03 annually		1.82									)				Bullet repayment		Nil
Domestic unsecured bonds-112-3
-A	Taipei Fubon Commercial Bank Co., Ltd.	2023.06.01	On 06.01 annually		1.60									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2023.06.01	On 06.01 annually		1.65									)				Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2023.06.01	On 06.01 annually		1.80									)				Bullet repayment		Nil
Domestic unsecured bonds-112-4
-A	Taipei Fubon Commercial Bank Co., Ltd.	2023.08.16	On 08.16 annually		1.60									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2023.08.16	On 08.16 annually		1.65									)				Bullet repayment		Nil
-C	Taipei Fubon Commercial Bank Co., Ltd.	2023.08.16	On 08.16 annually		1.76									)				Bullet repayment		Nil
Domestic unsecured bonds-112-5
-A	Taipei Fubon Commercial Bank Co., Ltd.	2023.10.16	On 10.16 annually		1.62									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2023.10.16	On 10.16 annually		1.76									)				Bullet repayment		Nil
Domestic unsecured bonds-113-1
-A	Taipei Fubon Commercial Bank Co., Ltd.	2024.03.15	On 03.15 annually		1.64									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2024.03.15	On 03.15 annually		1.76									)				Bullet repayment		Nil
Domestic unsecured bonds-113-2
-A	Taipei Fubon Commercial Bank Co., Ltd.	2024.05.17	On 05.17 annually		1.98									)				Bullet repayment		Nil
-B	Taipei Fubon Commercial Bank Co., Ltd.	2024.05.17	On 05.17 annually		2.10									)				Bullet repayment		Nil
TOTAL							485,536,000		7,000,000		478,536,000		(299,338	)
Less: Current portion																	)
																453,839,281

All values are in US Dollars.

(Concluded)

115 -

STATEMENT 12

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF LEASE LIABILITIES

DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)
Item	Description	Lease Term	Discount <br>Rate (%)	Balance, End of Year
---	---	---	---	---	---	---
Land	Mainly for the use of plants and offices	1 to 22 years	0.39-2.30		28,372,425
Buildings	Mainly for the use of offices	1 to 12 years	0.40-2.04
Office equipment	For operation use	3 to 5 years	0.28-1.74

Less: Current portion						)
Noncurrent portion					27,206,865

All values are in US Dollars.

116 -

STATEMENT 13

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF NET REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Item	Shipments<br><br>(Piece) (Note)	Amount
---	---	---	---
Wafer	12,908,524		2,510,017,254
Other
Net revenue			2,880,383,350

All values are in US Dollars.

Note: 12-inch equivalent wafers.

117 -

STATEMENT 14

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF COST OF REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)
Item	Amount
---	---	---	---
Raw materials used
Balance, beginning of year		37,279,545
Raw material purchased
Raw materials, end of year			)
Transferred to manufacturing or operating expenses			)
Others			)
Subtotal
Direct labor
Manufacturing expenses
Manufacturing cost
Work in process, beginning of year
Work in process, end of year			)
Transferred to manufacturing or operating expenses			)
Cost of finished goods
Finished goods, beginning of year
Finished goods purchased
Finished goods, end of year			)
Transferred to manufacturing or operating expenses			)
Scrapped			)
Subtotal
Others
Total		1,306,140,916

All values are in US Dollars.

118 -

STATEMENT 15

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)
Item	Research and Development Expenses		General and Administrative Expenses		Selling Expenses
---	---	---	---	---	---	---
Payroll and related expense		73,416,941		24,732,935		4,608,247
Consumables
Depreciation expense
Repair and maintenance expense
Management fees of the Science Park Administration
Patents
Commission
Others (Note)
Total		198,449,799		50,832,908		6,264,188

All values are in US Dollars.

Note: The amount of each item in others does not exceed 5% of the account balance.

119 -

STATEMENT 16

Taiwan Semiconductor Manufacturing Company Limited

STATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
	Year Ended December 31, 2024								Year Ended December 31, 2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
					Classified as								Classified as
					Other								Other
			Classified as		Operating						Classified as		Operating
	Classified as		Operating		Income				Classified as		Operating		Income
	Cost of Revenue		Expenses		and Expenses		Total		Cost of Revenue		Expenses		and Expenses		Total
Labor cost
Salary and bonus		138,658,016		94,485,677		-		233,143,693		110,396,275		71,163,228		-		181,559,503
Labor and health insurance
Pension
Board compensation
Others
		152,156,491		102,758,123		-		254,914,614		122,143,462		78,447,127		-		200,590,589
Depreciation		590,881,553		34,858,056		7,814		625,747,423		471,343,567		28,951,931		5,273		500,300,771
Amortization		6,320,646		2,808,823		-		9,129,469		6,515,540		2,682,436		-		9,197,976

All values are in US Dollars.

Note 1: For the year of 2024 and 2023, the Company had average 70,037 and 66,336 employees, respectively, which included 9 non-employee directors for both years.

Note 2: Average labor cost for the years ended December 31, 2024 and 2023 were NT$3,633 thousand and NT$3,015 thousand, respectively.

Note 3: Average salary and bonus for the years ended December 31, 2024 and 2023 were NT$3,329 thousand and NT$2,737 thousand, respectively. The average salary and bonus increased by 21.63% year over year.

Note 4: The Company did not have supervisors for the years ended December 31, 2024 and 2023. Therefore, there was no compensation to the supervisor.

Note 5: The Company’s compensation policies: The Company’s employees are entitled to a comprehensive compensation and benefits program above the industry average. The compensation program includes a monthly salary, business performance bonuses based on quarterly business results, a profit sharing bonus based on annual profits, and a subsidy based on Employee Stock Purchase Plan. The Company determines the amount of the business performance bonus and profit sharing based on operating results and industry practice in the R.O.C.. The amount and distribution of the bonus and profit sharing are recommended by the Compensation and People Development Committee to the Board of Directors for approval. Individual rewards are based on each employee’s job responsibility, contribution and performance.

Note 6: The total compensation paid to the executive officers is decided based on their job responsibility, contribution, company performance and projected future risks the Company will face. It is reviewed by the Compensation and People Development Committee then submitted to the Board of Directors for approval.

Note 7: According to the Company’s Articles of Incorporation, the Board of Directors is authorized to determine the salary for the Chairman, Vice Chairman and Directors, taking into account the extent and value of the services provided for the management of the Company and the standards of the industry within the R.O.C. and overseas. The Articles of Incorporation also provide that the compensation to directors shall be no more than 0.3% of annual profits and directors who also serve as executive officers of the Company are not entitled to receive compensation to directors. The distribution of compensation to directors shall be made in accordance with the Company’s “Rules for Distribution of Compensation to Directors” based on the following principles: (1) directors who also serve as executive officers of the Company are not entitled to receive compensation; (2) the compensation for independent directors may be higher than the other directors, as all independent directors also serve as members of the Audit and Risk Committee and the Compensation and People Development Committee and thus participate in the discussions as well as resolutions of related committee meetings in accordance with the charter of each committee; and (3) the compensation for overseas independent directors may be higher than domestic independent directors.

120 -