EX-99.1 2 tsmc2024q3consolidatedfina.htm EX-99.1 Document
English Translation of Financial Statements Originally Issued in Chinese
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

Consolidated Financial Statements for the
Nine Months Ended September 30, 2024 and 2023 and
Independent Auditors’ Review Report



勤業眾信
勤業眾信聯合會計師事務所
110016 台北市信義區松仁路100號20樓

Deloitte & Touche
20F, Taipei Nan Shan Plaza
No. 100, Songren Rd.,
Xinyi Dist., Taipei 110016, Taiwan

Tel :+886 (2) 2725-9988
Fax:+886 (2) 4051-6888
www.deloitte.com.tw

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders
Taiwan Semiconductor Manufacturing Company Limited

Introduction

We have reviewed the accompanying consolidated balance sheets of Taiwan Semiconductor Manufacturing Company Limited and its subsidiaries (collectively, the “Company”) as of September 30, 2024 and 2023, the related consolidated statements of comprehensive income for the three months ended September 30, 2024 and 2023 and for the nine months ended September 30, 2024 and 2023, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company as of September 30, 2024 and 2023, its consolidated financial performance for the three months ended September 30, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2024 and 2023 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

- 1 -

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

xa.jpg
Deloitte & Touche
Taipei, Taiwan
Republic of China

November 12, 2024





























Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.
- 2 -

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED BALANCE SHEETS
(In Thousands of New Taiwan Dollars)


September 30, 2024
December 31, 2023
September 30, 2023
ASSETS
Amount
%
Amount
%
Amount
%







CURRENT ASSETS






Cash and cash equivalents (Note 6)
$
1,886,780,555


31

$
1,465,427,753


26

$
1,311,806,535


24

Financial assets at fair value through profit or loss (Note 7)

971,386


-


924,636


-


378,526


-

Financial assets at fair value through other comprehensive income (Note 8)

189,649,314


3


154,530,830


3


154,838,390


3

Financial assets at amortized cost (Note 9)

90,197,355


1


66,761,221


1


84,261,089


2

Hedging financial assets (Note 10)

1,079


-


-


-


37,451


-

Notes and accounts receivable, net (Note 11)

249,570,573


4


201,313,914


4


222,467,653


4

Receivables from related parties (Note 31)

403,379


-


624,451


-


356,257


-

Other receivables from related parties (Note 31)

74,477


-


71,871


-


82,363


-

Inventories (Note 12)

292,883,930


5


250,997,088


5


262,090,072


5

Other financial assets (Notes 28 and 32)

35,301,765


1


27,158,766


1


26,938,240


-

Other current assets

28,080,050


-


26,222,380


-


19,221,060


-




















Total current assets

2,773,913,863


45


2,194,032,910


40


2,082,477,636


38




















NONCURRENT ASSETS


















Financial assets at fair value through profit or loss (Note 7)

14,594,649


-


13,417,457


-


111,637


-

Financial assets at fair value through other comprehensive income (Note 8)

7,502,973


-


7,208,655


-


7,933,799


-

Financial assets at amortized cost (Note 9)

74,266,804


1


79,199,367


2


79,379,651


2

Investments accounted for using equity method (Note 13)

30,967,916


1


29,616,638


1


28,921,558


1

Property, plant and equipment (Notes 14 and 28)

3,071,599,327


50


3,064,474,984


55


3,132,664,367


57

Right-of-use assets (Note 15)

39,698,749


1


40,424,830


1


41,254,711


1

Intangible assets (Note 16)

22,083,031


-


22,766,744


-


23,410,569


-

Deferred income tax assets (Note 4)

65,944,214


1


64,175,787


1


71,030,144


1

Refundable deposits

4,483,344


-


7,044,420


-


8,388,839


-

Other noncurrent assets (Notes 28 and 29)

60,603,306


1


10,009,423


-


8,983,470


-




















Total noncurrent assets

3,391,744,313


55


3,338,338,305


60


3,402,078,745


62




















TOTAL

$
6,165,658,176



100


$
5,532,371,215



100


$
5,484,556,381



100




















LIABILITIES AND EQUITY





































CURRENT LIABILITIES


















Financial liabilities at fair value through profit or loss (Note 7)
$
34,277


-

$
121,412


-

$
132,768


-

Hedging financial liabilities (Notes 10 and 29)

1,875


-


27,334,164


-


26,879,550


-

Accounts payable

69,134,197


1


55,726,757


1


52,150,883


1

Payables to related parties (Note 31)

1,685,850


-


1,566,300


-


1,621,423


-

Salary and bonus payable

37,714,425


1


33,200,563


1


28,657,288


1

Accrued profit sharing bonus to employees and compensation to directors (Note 27)

49,399,323


1


50,716,944


1


37,708,203


1

Payables to contractors and equipment suppliers

125,132,085


2


171,484,616


3


230,848,866


4

Cash dividends payable (Note 19)

207,456,038


4


168,558,461


3


155,592,426


3

Income tax payable (Note 4)

77,422,729


1


98,912,902


2


102,953,391


2

Long-term liabilities - current portion (Notes 17, 18 and 29)

58,804,983


1


9,293,266


-


7,420,132


-

Accrued expenses and other current liabilities (Notes 15, 20 and 29)

453,613,317


7


296,667,931


5


326,069,886


6




















Total current liabilities

1,080,399,099


18


913,583,316


16


970,034,816


18




















NONCURRENT LIABILITIES


















Bonds payable (Notes 17 and 29)

909,703,588


15


913,899,843


17


932,479,423


17

Long-term bank loans (Notes 18 and 29)

26,459,677


-


4,382,965


-


5,013,050


-

Deferred income tax liabilities (Note 4)

61,376


-


53,856


-


212,549


-

Lease liabilities (Notes 15 and 29)

28,208,721


-


28,681,835


1


29,415,325


1

Net defined benefit liability (Note 4)

7,704,373


-


9,257,224


-


8,615,678


-

Guarantee deposits

914,462


-


923,164


-


983,928


-

Others (Note 20)

90,284,589


2


178,326,165


3


164,983,505


3




















Total noncurrent liabilities

1,063,336,786


17


1,135,525,052


21


1,141,703,458


21




















Total liabilities

2,143,735,885


35


2,049,108,368


37


2,111,738,274


39




















EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT


















Capital stock (Note 19)

259,327,332


4


259,320,710


5


259,320,710


5

Capital surplus (Notes 19 and 26)

72,390,172


1


69,876,381


1


69,879,218


1

Retained earnings (Note 19)


















Appropriated as legal capital reserve

311,146,899


5


311,146,899


6


311,146,899


6

Appropriated as special capital reserve

-


-


-


-


17,228,363


-

Unappropriated earnings

3,346,232,342


55


2,846,883,893


51


2,682,157,537


49



3,657,379,241


60


3,158,030,792


57


3,010,532,799


55

Others (Notes 19 and 26)

922,408


-


(28,314,256
)

-


8,616,930


-




















Equity attributable to shareholders of the parent

3,990,019,153


65


3,458,913,627


63


3,348,349,657


61




















NON - CONTROLLING INTERESTS

31,903,138


-


24,349,220


-


24,468,450


-




















Total equity

4,021,922,291


65


3,483,262,847


63


3,372,818,107


61




















TOTAL

$
6,165,658,176



100


$
5,532,371,215



100


$
5,484,556,381



100






















The accompanying notes are an integral part of the consolidated financial statements.
- 3 -

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)



For the Three Months Ended September 30
For the Nine Months Ended September 30

2024202320242023

Amount

%
Amount

%
Amount

%

Amount

%


            
            

            
            

            
            
            
            
NET REVENUE (Notes 20, 31 and 37)

$
759,692,143


100


$
546,732,758


100


$
2,025,846,521


100

$
1,536,206,985


100





























COST OF REVENUE (Notes 12, 27, 31 and 34)


320,346,477


42



250,090,294


46



913,871,108


45


692,864,282


45





























GROSS PROFIT


439,345,666


58



296,642,464


54



1,111,975,413


55


843,342,703


55





























OPERATING EXPENSES (Notes 27 and 31)



























Research and development


52,783,826


7



51,137,762


9



146,950,466


7


131,960,076


9

General and administrative


22,890,591


3



14,998,124


3



58,317,959


3


42,637,461


3

Marketing


3,404,487


1



2,572,905


-



9,463,070


1


7,615,158


-





























Total operating expenses


79,078,904


11



68,708,791


12



214,731,495


11


182,212,695


12





























OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14, 27 and 34)


499,527


-



131,230


-



(903,781
)

-


131,095


-





























INCOME FROM OPERATIONS (Note 37)


360,766,289


47



228,064,903


42



896,340,137


44


661,261,103


43





























NON-OPERATING INCOME AND EXPENSES



























Share of profits of associates


1,560,733


-



1,166,970


-



3,590,959


-


3,339,974


-

Interest income (Note 21)


22,601,654


3



15,595,274


3



62,940,059


3


42,885,113


3

Other income


40,921


-



78,165


-



316,056


-


403,727


-

Foreign exchange gain (loss), net (Note 35)


202,642


-



(791,543
)

-



5,584,628


-


(1,838,720
)

-

Finance costs (Note 22)


(2,635,790
)

-



(3,111,922
)

(1
)


(7,972,185
)

-


(9,080,763
)

-

Other gains and losses, net (Note 23)


1,650,403


1



938,648


-



(3,759,023
)

-


3,919,901


-





























Total non-operating income and expenses


23,420,563


4



13,875,592


2



60,700,494


3


39,629,232


3





























INCOME BEFORE INCOME TAX


384,186,852


51



241,940,495


44



957,040,631


47


700,890,335


46





























INCOME TAX EXPENSE (Notes 4 and 24)


59,106,682


8



31,145,221


5



159,077,760


8


101,429,019


7





























NET INCOME


325,080,170


43



210,795,274


39



797,962,871


39


599,461,316


39





























OTHER COMPREHENSIVE INCOME (LOSS) (Notes 19 and 24)



























Items that will not be reclassified subsequently to profit or loss:



























Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income


(1,050,696
)

-



(8,655
)

-



4,612,885


-


987,893


-

Gain on hedging instruments


5,041


-



-


-



5,041


-


39,898


-

Share of other comprehensive income (loss) of associates


(37,704
)

-



107,972


-



(40,064
)

-


62,956


-

Income tax expense related to items that will not be reclassified subsequently


-


-



-


-



(9,996
)

-


(25
)

-

  


(1,083,359
)

-



99,317


-



4,567,866


-


1,090,722


-

Items that may be reclassified subsequently to profit or loss:



























Exchange differences arising on translation of foreign operations


(25,381,768
)

(4
)


27,637,865


5



23,796,799


1


28,594,668


2

Unrealized gain/(loss) on investments in debt instruments at fair value through other comprehensive income


5,455,766


1



(1,856,201
)

(1
)


5,188,559


1


(1,455,025
)

-

Loss on hedging instruments


(20,291
)

-



(19,068
)

-



(59,707
)

-


(55,327
)

-

Share of other comprehensive income (loss) of associates


(26,626
)

-



187,312


-



188,752


-


237,518


-

  


(19,972,919
)

(3
)


25,949,908


4



29,114,403


2


27,321,834


2

  



























Other comprehensive income (loss), net of income tax


(21,056,278
)

(3
)


26,049,225


4



33,682,269


2


28,412,556


2

  



























TOTAL COMPREHENSIVE INCOME

$
304,023,892



40


$
236,844,499



43


$
831,645,140



41


$
627,873,872



41

  



























NET INCOME ATTRIBUTABLE TO:



























Shareholders of the parent

$
325,257,571


43


$
210,999,939


39


$
798,587,976


39

$
599,785,521


39

Non-controlling interests


(177,401
)

-



(204,665
)

-



(625,105
)

-


(324,205
)

-

  



























  

$
325,080,170



43


$
210,795,274



39


$
797,962,871



39


$
599,461,316



39

  



























TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:



























Shareholders of the parent

$
302,100,323


40


$
237,285,511


43


$
831,764,315


41

$
629,307,238


41

Non-controlling interests


1,923,569


-



(441,012
)

-



(119,175
)

-


(1,433,366
)

-

  



























  

$
304,023,892



40


$
236,844,499



43


$
831,645,140



41


$
627,873,872



41

  



























EARNINGS PER SHARE (NT$, Note 25)



























Basic earnings per share

$
12.55






$
8.14






$
30.80






$
23.13





Diluted earnings per share

$
12.54






$
8.14






$
30.80






$
23.13

































The accompanying notes are an integral part of the consolidated financial statements.
- 4 -



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

TranslationComprehensiveHedgingEmployeeTreasury Non-controllingTotal
(In Thousands)AmountCapital SurplusReserve

Reserve

EarningsTotalReserveIncomeInstrumentsCompensationTotalStockTotalInterestsEquity

            

            

            

            

            

            

            

            

            

            

            

            

            

            

            

            

BALANCE, JANUARY 1, 2023

25,930,380


$
259,303,805

$
69,330,328

$
311,146,899

$
3,154,310

$
2,323,223,479

$
2,637,524,688

$
(11,743,301
)
$
(10,056,353
)
$
1,479,181

$
(185,153
)
$
(20,505,626
)
$
-

$
2,945,653,195

$
14,835,672

$
2,960,488,867



















































Appropriations of earnings

















































Special capital reserve

-



-


-


-


14,074,053


(14,074,053
)

-


-


-


-


-


-


-


-


-


-

Cash dividends to shareholders

-



-


-


-


-


(226,900,972
)

(226,900,972
)

-


-


-


-


-


-


(226,900,972
)

-


(226,900,972
)
Total

-



-


-


-


14,074,053


(240,975,025
)

(226,900,972
)

-


-


-


-


-


-


(226,900,972
)

-


(226,900,972
)


















































Net income

-



-


-


-


-


599,785,521


599,785,521


-


-


-


-


-


-


599,785,521


(324,205
)

599,461,316



















































Other comprehensive income (loss), net of income tax

-



-


-


-


-


-


-


29,942,174


(434,126
)

13,669


-


29,521,717


-


29,521,717


(1,109,161
)

28,412,556



















































Total comprehensive income (loss)

-



-


-


-


-


599,785,521


599,785,521


29,942,174


(434,126
)

13,669


-


29,521,717


-


629,307,238


(1,433,366
)

627,873,872



















































Employee restricted shares retired

(419
)


(4,195
)

4,195


-


-


4,614


4,614


-


-


-


-


-


-


4,614


-


4,614



















































Share-based payment arrangements

2,110



21,100


564,868


-


-


-


-


-


-


-


(235,582
)

(235,582
)

-


350,386


-


350,386



















































Disposal of investments in equity instruments at fair value through other comprehensive income

-



-


-


-


-


118,948


118,948


-


(118,948
)

-


-


(118,948
)

-


-


-


-



















































Basis adjustment for loss on hedging instruments

-



-


-


-


-


-


-


-


-


(44,631
)

-


(44,631
)

-


(44,631
)

-


(44,631
)


















































Adjustments to share of changes in equities of associates

-



-


(1,236
)

-


-


-


-


-


-


-


-


-


-


(1,236
)

-


(1,236
)


















































From share of changes in equities of subsidiaries

-



-


(18,937
)

-


-


-


-


-


-


-


-


-


-


(18,937
)

11,264,847


11,245,910



















































Decrease in non-controlling interests

-



-


-


-


-


-


-


-


-


-


-


-


-


-


(198,703
)

(198,703
)


















































BALANCE, SEPTEMBER 30, 2023


25,932,071


$
259,320,710

$
69,879,218

$
311,146,899

$
17,228,363

$
2,682,157,537

$
3,010,532,799

$
18,198,873

$
(10,609,427
)
$
1,448,219

$
(420,735
)
$
8,616,930

$
-

$
3,348,349,657

$
24,468,450

$
3,372,818,107



















































BALANCE, JANUARY 1, 2024

25,932,071


$
259,320,710

$
69,876,381

$
311,146,899

$
-

$
2,846,883,893

$
3,158,030,792

$
(25,316,769
)
$
(4,099,928
)
$
1,395,875

$
(293,434
)
$
(28,314,256
)
$
-

$
3,458,913,627

$
24,349,220

$
3,483,262,847



















































Appropriations of earnings

















































Cash dividends to shareholders

-



-


-


-


-


(298,218,286
)

(298,218,286
)

-


-


-


-


-


-


(298,218,286
)

-


(298,218,286
)
Total

-



-


-


-


-


(298,218,286
)

(298,218,286
)

-


-


-


-


-


-


(298,218,286
)

-


(298,218,286
)


















































Net income

-



-


-


-


-


798,587,976


798,587,976


-


-


-


-


-


-


798,587,976


(625,105
)

797,962,871



















































Other comprehensive income (loss), net of income tax

-



-


-


-


-


-


-


23,487,853


9,734,732


(46,246
)

-


33,176,339


-


33,176,339


505,930


33,682,269



















































Total comprehensive income (loss)

-



-


-


-


-


798,587,976


798,587,976


23,487,853


9,734,732


(46,246
)

-


33,176,339


-


831,764,315


(119,175
)

831,645,140



















































Employee restricted shares retired

(1,402
)


(14,018
)

14,018


-


-


19,934


19,934


-


-


-


-


-


-


19,934


-


19,934



















































Share-based payment arrangements

5,313



53,130


2,584,257


-


-


-


-


-


-


-


(1,921,617
)

(1,921,617
)

-


715,770


-


715,770



















































Treasury stock acquired

-



-


-


-


-


-


-


-


-


-


-


-


(3,089,177
)

(3,089,177
)

-


(3,089,177
)


















































Treasury stock retired

(3,249
)


(32,490
)

(7,080
)

-


-


(3,049,607
)

(3,049,607
)

-


-


-


-


-


3,089,177


-


-


-



















































Disposal of investments in equity instruments at fair value through other comprehensive income

-



-


-


-


-


2,008,432


2,008,432


-


(2,008,432
)

-


-


(2,008,432
)

-


-


-


-



















































Basis adjustment for loss on hedging instruments

-



-


-


-


-


-


-


-


-


(9,626
)

-


(9,626
)

-


(9,626
)

-


(9,626
)


















































Adjustments to share of changes in equities of associates

-



-


3,433


-


-


-


-


-


-


-


-


-


-


3,433


-


3,433



















































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

-



-


5,284


-


-


-


-


-


-


-


-


-


-


5,284


(4,263
)

1,021



















































From share of changes in equities of subsidiaries

-



-


(86,121
)

-


-


-


-


-


-


-


-


-


-


(86,121
)

6,913,938


6,827,817



















































Increase in non-controlling interests

-



-


-


-


-


-


-


-


-


-


-


-


-


-


763,418


763,418



















































BALANCE, SEPTEMBER 30, 2024


25,932,733


$
259,327,332

$
72,390,172

$
311,146,899

$
-

$
3,346,232,342

$
3,657,379,241

$
(1,828,916
)
$
3,626,372

$
1,340,003

$
(2,215,051
)
$
922,408

$
-

$
3,990,019,153

$
31,903,138

$
4,021,922,291





















































The accompanying notes are an integral part of the consolidated financial statements.
- 5 -


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)


Nine Months Ended September 30
2024

2023




CASH FLOWS FROM OPERATING ACTIVITIES
            

            
Income before income tax
$
957,040,631


$
700,890,335

Adjustments for:







Depreciation expense

485,541,546



374,654,167

Amortization expense

6,876,767



6,888,324

Expected credit losses recognized on investments in debt instruments

35,268



41,161

Finance costs

7,972,185



9,080,763

Share of profits of associates

(3,590,959
)


(3,339,974
)
Interest income

(62,940,059
)


(42,885,113
)
Share-based compensation

735,748



355,701

Loss on disposal or retirement of property, plant and equipment, net

1,965,956



335,393

Gain on disposal or retirement of intangible assets, net

-



(2,308
)
Impairment loss on property, plant and equipment

1,150,485



-

Loss (gain) on financial instruments at fair value through profit or loss, net

139,280



(27,022
)
Loss on disposal of investments in debt instruments at fair value through other comprehensive income, net

286,502



372,631

Loss on foreign exchange, net

2,239,835



4,178,853

Dividend income

(316,056
)


(387,837
)
Others

(294,299
)


(280,262
)
Changes in operating assets and liabilities:







Financial instruments at fair value through profit or loss

(349,840
)


857,225

Notes and accounts receivable, net

(48,256,709
)


7,288,198

Receivables from related parties

221,072



1,227,701

Other receivables from related parties

(2,606
)


(13,388
)
Inventories

(41,886,842
)


(40,940,924
)
Other financial assets

(2,927,759
)


263,031

Other current assets

(1,139,833
)


(5,852,289
)
Other noncurrent assets

(2,513,775
)


(378,730
)
Accounts payable

13,407,440



(2,728,825
)
Payables to related parties

119,550



(21,214
)
Salary and bonus payable

4,513,862



(7,778,221
)
Accrued profit sharing bonus to employees and compensation to directors

(1,317,621
)


(24,040,371
)
Accrued expenses and other current liabilities

61,336,839



(34,382,658
)
Other noncurrent liabilities

11,927,551



26,776,501

Net defined benefit liability

(1,552,851
)


(705,413
)
Cash generated from operations

1,388,421,308



969,445,435

Income taxes paid

(182,449,523
)


(122,307,435
)








Net cash generated by operating activities

1,205,971,785



847,138,000

(Continued)

- 6 -


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)


Nine Months Ended September 30
2024

2023

            

            
CASH FLOWS FROM INVESTING ACTIVITIES
            

            
Acquisitions of:
            

            
Financial instruments at fair value through profit or loss
$
(1,097,618
)

$
(323,973
)
Financial assets at fair value through other comprehensive income

(64,117,242
)


(54,832,622
)
Financial assets at amortized cost

(98,056,800
)


(115,641,029
)
Property, plant and equipment

(594,058,374
)


(779,656,605
)
Intangible assets

(5,827,476
)


(3,387,581
)
Proceeds from disposal or redemption of:







Financial assets at fair value through other comprehensive income

43,454,000



28,804,766

Financial assets at amortized cost

85,696,380



89,166,171

Property, plant and equipment

639,042



391,764

Intangible assets

49,293



2,308

Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income

319,518



117,897

Derecognition of hedging financial instruments

28,704



66,776

Interest received

57,961,207



41,015,135

Proceeds from government grants - property, plant and equipment

16,043,072



20,756,650

Proceeds from government grants - others

267



1,152

Other dividends received

334,348



387,837

Dividends received from investments accounted for using equity method

2,965,201



3,076,482

Increase in prepayments for leases

(87,426
)


(50,173
)
Refundable deposits paid

(253,793
)


(4,053,259
)
Refundable deposits refunded

3,083,455



357,210









Net cash used in investing activities

(552,924,242
)


(773,801,094
)








CASH FLOWS FROM FINANCING ACTIVITIES







Increase (decrease) in hedging financial liabilities - bank loans

(26,496,570
)


27,908,580

Proceeds from issuance of bonds

34,300,000



75,900,000

Repayment of bonds

(5,250,000
)


(18,100,000
)
Proceeds from long-term bank loans

23,442,000



2,450,000

Repayment of long-term bank loans

(1,659,722
)


(1,244,444
)
Payments for transaction costs attributable to the issuance of bonds

(35,681
)


(78,448
)
Treasury stock acquired

(3,089,177
)


-

Repayment of the principal portion of lease liabilities

(2,212,890
)


(2,132,449
)
Interest paid

(12,804,370
)


(11,363,895
)
Guarantee deposits received

2,573



230,116

Guarantee deposits refunded

(36,155
)


(217,446
)
Cash dividends

(259,320,708
)


(213,925,639
)
Disposal of ownership interests in subsidiaries (without losing control)

1,021



-

Increase in non-controlling interests

7,591,192



11,046,506









Net cash used in financing activities

(245,568,487
)


(129,527,119
)
(Continued)

- 7 -


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)


Nine Months Ended September 30
2024

2023

            

            
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
$
13,873,746


$
25,182,665









NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

421,352,802



(31,007,548
)








CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

1,465,427,753



1,342,814,083









CASH AND CASH EQUIVALENTS, END OF PERIOD
$
1,886,780,555


$
1,311,806,535











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

- 8 -

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)


1.    GENERAL

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

On September 5, 1994, TSMC’s shares were listed on the Taiwan Stock Exchange (TWSE). On October 8, 1997, TSMC listed some of its shares of stock on the New York Stock Exchange (NYSE) in the form of American Depositary Shares (ADSs).

The address of its registered office and principal place of business is No. 8, Li-Hsin Rd. 6, Hsinchu Science Park, Taiwan. The principal operating activities of TSMC’s subsidiaries are described in Note 4.


2.    THE AUTHORIZATION OF FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved and authorized for issue by the Board of Directors on November 12, 2024.


3.    APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

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

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

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

New, Amended and Revised Standards and Interpretations

Effective Date Issued
by IASB



Annual Improvements to IFRS Accounting Standards - Volume 11
January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”
January 1, 2026
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”
To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”
January 1, 2027


- 9 -

IFRS 18 “Presentation and Disclosure in Financial Statements”

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

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

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

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

Except for the above impact, as of the date the accompanying consolidated financial statements were issued, the Company continues in evaluating the impact on its financial position and financial performance from the initial adoption of the aforementioned standards or interpretations and related applicable period. The related impact will be disclosed when the Company completes its evaluation.


4.    SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

Except for the following, the accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2023.

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

Statement of Compliance

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

Basis of Consolidation

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

The basis of preparation and the basis for the consolidated financial statements applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2023.


- 10 -

The subsidiaries in the consolidated financial statements

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

EstablishmentPercentage of Ownership
Name of InvestorName of InvesteeMain Businesses and Products
and Operating
Location
September 30,
2024
December 31,
2023
September 30,
2023
Note











TSMC

TSMC North America

Sales and marketing of integrated circuits and other semiconductor devices

San Jose, California, U.S.A.

100%

100%

100%

-


TSMC Europe B.V. (TSMC Europe)

Customer service and supporting activities

Amsterdam, the Netherlands

100%

100%

100%

a)


TSMC Japan Limited (TSMC Japan)

Customer service and supporting activities

Yokohama, Japan

100%

100%

100%

a)


TSMC Design Technology Japan, Inc. (TSMC JDC)

Engineering support activities

Yokohama, Japan

100%

100%

100%

a)


TSMC Japan 3DIC R&D Center, Inc. (TSMC 3DIC)

Engineering support activities

Yokohama, Japan

100%

100%

100%

a)


TSMC Korea Limited (TSMC Korea)

Customer service and supporting activities

Seoul, Korea

100%

100%

100%

a)


TSMC Partners, Ltd. (TSMC Partners)

Investing in companies involved in the semiconductor design and manufacturing, and other investment activities

Tortola, British Virgin Islands

100%

100%

100%

-


TSMC Global Ltd. (TSMC Global)

Investment activities

Tortola, British Virgin Islands

100%

100%

100%

-


TSMC China Company Limited (TSMC China)

Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices

Shanghai, China

100%

100%

100%

-


TSMC Nanjing Company Limited (TSMC Nanjing)

Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices

Nanjing, China

100%

100%

100%

-


VisEra Technologies Company Ltd. (VisEra Tech)

Research, design, development, manufacturing, sales, packaging and test of color filter

Hsin-Chu, Taiwan

67%

67%

68%

c)


TSMC Arizona Corporation (TSMC Arizona)

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

Phoenix, Arizona, U.S.A.

100%

100%

100%

d)


Japan Advanced Semiconductor Manufacturing, Inc. (JASM)

Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices

Kumamoto, Japan

73%

71%

71%

e)


European Semiconductor Manufacturing Company (ESMC) GmbH (ESMC)

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

Dresden, Germany

70%

100%

100%

a), f)


VentureTech Alliance Fund II, L.P. (VTAF II)

Investing in technology start-up companies

Cayman Islands

98%

98%

98%

b)


VentureTech Alliance Fund III, L.P. (VTAF III)

Investing in technology start-up companies

Cayman Islands

98%

98%

98%

b)


Emerging Fund, L.P. (Emerging Fund)

Investing in technology start-up companies

Cayman Islands

99.9%

99.9%

99.9%

b)
TSMC Partners

TSMC Development, Inc. (TSMC Development)

Investing in companies involved in semiconductor manufacturing

Delaware, U.S.A.

100%

100%

100%

-


TSMC Technology, Inc. (TSMC Technology)

Engineering support activities

Delaware, U.S.A.

100%

100%

100%

a)


TSMC Design Technology Canada Inc. (TSMC Canada)

Engineering support activities

Ontario, Canada

100%

100%

100%

a)
VTAF III

Growth Fund Limited (Growth Fund)

Investing in technology start-up companies

Cayman Islands

100%

100%

100%

b)
TSMC Development

TSMC Washington, LLC (TSMC Washington)

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

Washington, U.S.A.

100%

100%

100%

-

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

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

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

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

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

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

Retirement Benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year.

- 11 -

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. The interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the pre-tax income of the interim period.


5.    MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The same material accounting judgments and key sources of estimates and uncertainty have been followed in these consolidated financial statements as were applied in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2023.


6.    CASH AND CASH EQUIVALENTS


September 30,
2024

December 31,
2023

September 30,
2023






Cash and deposits in banks
$
1,879,710,837


$
1,453,101,566


$
1,297,689,297

Money market funds

4,455,181



10,898,720



3,336,162

Repurchase agreements

2,614,537



1,346,719



1,229,906

Government bonds/Agency bonds

-



50,787



142,392

Commercial paper

-



29,961



9,408,778













    
$
1,886,780,555


$
1,465,427,753


$
1,311,806,535


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


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


September 30,
2024

December 31,
2023

September 30,
2023






Financial assets











Mandatorily measured at FVTPL





Convertible preferred stocks
$
13,692,780


$
13,307,160


$
-

Forward exchange contracts

971,386



701,182



147,504

Mutual funds

775,317



110,297



111,637

Simple agreement for future equity

126,552



-



-

Convertible bonds

-



223,454



231,022













    
$
15,566,035


$
14,342,093


$
490,163













Current
$
971,386


$
924,636


$
378,526

Noncurrent

14,594,649



13,417,457



111,637













    
$
15,566,035


$
14,342,093


$
490,163

(Continued)

- 12 -


September 30,
2024

December 31,
2023

September 30,
2023






Financial liabilities











Held for trading





Forward exchange contracts
$
34,277


$
121,412


$
132,768

(Concluded)

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

Outstanding forward exchange contracts consisted of the following:

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


8.    FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME


September 30,
2024

December 31,
2023

September 30,
2023






Investments in debt instruments at FVTOCI
        

        


Corporate bonds

$
106,675,983


$
79,605,567


$
80,389,109

Agency mortgage-backed securities


43,708,974



37,959,691



36,337,585

Government bonds/Agency bonds


20,873,108



22,338,901



24,061,844

Asset-backed securities


11,539,314



9,898,766



10,419,593

    


182,797,379



149,802,925



151,208,131

Investments in equity instruments at FVTOCI












Non-publicly traded equity investments


7,502,973



7,208,655



7,933,799

Publicly traded stocks


6,851,935



4,727,905



3,630,259

    


14,354,908



11,936,560



11,564,058














        

$
197,152,287


$
161,739,485


$
162,772,189

(Continued)

- 13 -



September 30,
2024

December 31,
2023

September 30,
2023






Current

$
189,649,314


$
154,530,830


$
154,838,390

Noncurrent


7,502,973



7,208,655



7,933,799














    

$
197,152,287


$
161,739,485


$
162,772,189

(Concluded)

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

For the nine months ended September 30, 2024 and 2023, as the Company adjusted its investment portfolio, equity investments designated at FVTOCI were divested for NT$3,486,190 thousand and NT$189,390 thousand, respectively. The related other equity-unrealized gain/loss on financial assets at FVTOCI of NT$2,008,432 thousand and NT$118,948 thousand were transferred to increase retained earnings, respectively.

As of September 30, 2024 and 2023, the cumulative loss allowance for expected credit loss of NT$61,721 thousand and NT$49,497 thousand was recognized under investments in debt instruments at FVTOCI, respectively. Refer to Note 30 for information relating to the credit risk management and expected credit loss.


9.    FINANCIAL ASSETS AT AMORTIZED COST


September 30,
2024

December 31,
2023

September 30,
2023






Corporate bonds

$
137,366,565


$
113,851,856


$
126,268,615

Commercial paper


22,978,287



18,387,835



22,166,254

Government bonds/Agency bonds


4,225,749



13,803,559



15,297,477

Less: Allowance for impairment loss


(106,442
)


(82,662
)


(91,606
)













    

$
164,464,159


$
145,960,588


$
163,640,740














Current

$
90,197,355


$
66,761,221


$
84,261,089

Noncurrent


74,266,804



79,199,367



79,379,651














    

$
164,464,159


$
145,960,588


$
163,640,740


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


10.    HEDGING FINANCIAL INSTRUMENTS

September 30,
2024

December 31,
2023

September 30,
2023







Financial assets - current













Fair value hedges






Interest rate futures contracts

$
1,079


$
-


$
37,451

(Continued)
- 14 -



September 30,
2024

December 31,
2023

September 30,
2023






Financial liabilities - current













Fair value hedges






Interest rate futures contracts

$
1,875


$
43,764


$
-

Hedges of net investments in foreign operations












Bank loans


-



27,290,400



26,879,550
















$
1,875


$
27,334,164


$
26,879,550

(Concluded)

Fair value hedge

The Company entered into interest rate futures contracts, which are used to partially hedge against the fair value changes caused by interest rate fluctuation in the Company’s fixed income investments. The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%.

On the basis of economic relationships, the value of the interest rate futures contracts and the value of the hedged financial assets change in opposite directions in response to movements in interest rates.

The main source of hedge ineffectiveness in these hedging relationships is the credit risk of the hedged financial assets, which is not reflected in the fair value of the interest rate futures contracts. No other sources of ineffectiveness emerged from these hedging relationships during the hedging period. Amount of hedge ineffectiveness recognized in profit or loss is classified under other gains and losses, net.

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

September 30, 2024

Hedging Instruments
Contract Amount
(US$ in Thousands)
Maturity

Interest rate futures contracts - US Treasury futures
        US$    48,300
December 2024

Hedged ItemsAsset Carrying AmountAccumulated Amount of
Fair Value Hedge
Adjustments

Financial assets at FVTOCI
$    3,881,468

$    796

December 31, 2023

Hedging Instruments
Contract Amount
(US$ in Thousands)
Maturity

Interest rate futures contracts - US Treasury futures
US$    48,600
March 2024

Hedged ItemsAsset Carrying Amount Accumulated Amount of
Fair Value Hedge
Adjustments
Financial assets at FVTOCI
$    3,959,523

$    43,764

- 15 -

September 30, 2023

Hedging Instruments
Contract Amount
(US$ in Thousands)
Maturity

Interest rate futures contracts - US Treasury futures
US$    54,400
December 2023

Hedged ItemsAsset Carrying Amount Accumulated Amount of
Fair Value Hedge
Adjustments



Financial assets at FVTOCI
$    3,615,318

$    (37,451)

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

Change in Value Used for
Calculating Hedge Ineffectiveness
Nine Months Ended September 30
Hedging Instruments/Hedged Items
2024

2023



Hedging Instruments



Interest rate futures contracts - US Treasury futures

$
72,897


$
101,369

Hedged Items








Financial assets at FVTOCI


(72,897
)


(101,369
)









    

$
-


$
-


Cash flow hedge

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

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

The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of the counterparty’s own credit risk on the fair value of forward contracts. No other sources of ineffectiveness have emerged from these hedging relationships during the hedging period. Refer to Note 19 (d) for gain or loss arising from changes in the fair value of hedging instruments and hedged item affects profit or loss, and the amount transferred to initial carrying amount of hedged items.

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

Change in Value Used for Calculating Hedge
Ineffectiveness
Nine Months Ended September 30
Hedging Instruments/Hedged Items
2024
2023



Hedging Instruments



Forward exchange contracts

$
5,042


$
39,898

(Continued)

- 16 -


Change in Value Used for Calculating Hedge
Ineffectiveness
Nine Months Ended September 30
Hedging Instruments/Hedged Items
2024
2023





Hedged Items

    

    
Forecast transaction (capital expenditures)

$
(5,042
)

$
(39,898
)
(Concluded)

Hedges of net investments in foreign operations

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

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

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

December 31, 2023
Hedging Instruments
Contract
Amount
(In Thousands)
Annual
Interest Rate		Maturity
Balance in
Other Equity
(Continuing
Hedges)

Bank loans
    JPY    124,500,000
0%
Due by April 2024
$
618,180


September 30, 2023

Hedging Instruments
Contract
Amount
(In Thousands)
Annual
Interest Rate		Maturity
Balance in
Other Equity
(Continuing
Hedges)

Bank loans
    JPY    124,500,000
0%-0.06%
Due by February 2024
$
1,029,030


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

Change in Value Used for
Calculating Hedge
Ineffectiveness
Nine Months Ended September 30
    Hedging Instruments/Hedged Items
2024
2023



Hedging Instruments



Bank loans

$
793,830


$
1,029,030










Hedged Items








Net investments in foreign operations

$
(793,830
)

$
(1,029,030
)

- 17 -

11.    NOTES AND ACCOUNTS RECEIVABLE, NET


September 30,
2024

December 31,
2023

September 30,
2023






At amortized cost





Notes and accounts receivable
$
244,095,134


$
196,434,151


$
218,688,626

Less: Loss allowance

(496,026
)


(531,554
)


(752,380
)
    

243,599,108



195,902,597



217,936,246

At FVTOCI

5,971,465



5,411,317



4,531,407












        
$
249,570,573


$
201,313,914


$
222,467,653


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

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

Aging analysis of notes and accounts receivable


September 30,
2024

December 31,
2023

September 30,
2023






Not past due

$
236,368,821


$
183,188,499


$
207,436,935

Past due












Past due within 30 days


13,695,921



18,641,148



15,751,218

Past due over 31 days


1,857



15,821



31,880

Less: Loss allowance


(496,026
)


(531,554
)


(752,380
)













    

$
249,570,573


$
201,313,914


$
222,467,653


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

Movements of the loss allowance for accounts receivable


Nine Months Ended September 30

2024
2023





Balance, beginning of period

$
531,554


$
331,646

Provision (Reversal)


(35,578
)


420,698

Effect of exchange rate changes


50



36










Balance, end of period

$
496,026


$
752,380


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

- 18 -



12.    INVENTORIES


September 30,
2024

December 31,
2023

September 30,
2023






Finished goods
$
34,782,721


$
34,511,032


$
35,048,480

Work in process

190,951,410



156,498,469



171,354,152

Raw materials

43,402,647



38,818,273



35,076,818

Supplies and spare parts

23,747,152



21,169,314



20,610,622












    
$
292,883,930


$
250,997,088


$
262,090,072


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



Three Months Ended
September 30

Nine Months Ended
September 30


2024

2023

2024

2023
Net inventory losses (reversal of write-down of inventories)

$
137,620


$
(1,090,783
)

$
(1,898,656
)

$
1,830,238



13.    INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Associates consisted of the following:

Place of
Carrying Amount
% of Ownership and Voting Rights
Held by the Company
Name of AssociatePrincipal ActivitiesIncorporation and Operation
September 30,
2024
December 31,
2023
September 30,
2023
September 30,
2024
December 31,
2023
September 30,
2023









Vanguard International Semiconductor Corporation (VIS)

Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks
Hsinchu, Taiwan
$
13,105,023


$
13,590,430

$
13,103,470

28%
28%
28%
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)

Manufacturing and sales of integrated circuits and other semiconductor devices
Singapore

10,713,507



9,728,801


9,985,558

39%
39%
39%
Xintec Inc. (Xintec)

Wafer level chip size packaging and wafer level post passivation interconnection service
Taoyuan, Taiwan

4,028,681



3,759,701


3,580,425

41%
41%
41%
Global Unichip Corporation (GUC)

Researching, developing, manufacturing, testing and marketing of integrated circuits
Hsinchu, Taiwan

3,120,705



2,537,706


2,238,136

35%
35%
35%
Mutual-Pak Technology Co., Ltd. (Mutual-Pak)

Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID
New Taipei, Taiwan

-



-


13,969

--
28%













    





$
30,967,916


$
29,616,638


$
28,921,558








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


- 19 -


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

  Name of Associate
September 30,
2024

December 31,
2023

September 30,
2023






GUC
$
51,356,645


$
81,236,875


$
63,728,928

VIS
$
48,047,132


$
37,834,215


$
31,567,198

Xintec
$
22,868,436


$
14,188,445


$
13,075,626



14.    PROPERTY, PLANT AND EQUIPMENT


September 30,
2024
December 31,
2023
September 30,
2023







Assets used by the Company

$
3,071,391,628


$
3,064,424,259


$
3,132,660,998

Assets subject to operating leases


207,699



50,725



3,369














    

$
3,071,599,327


$
3,064,474,984


$
3,132,664,367


Assets used by the Company


Land and Land Improvements

Buildings

Machinery and Equipment

Office
Equipment

Equipment under Installation and Construction in Progress

Total












Cost























Balance at January 1, 2024
$
7,621,997


$
817,822,975


$
5,384,985,648


$
99,825,084


$
908,289,751


$
7,218,545,455

Additions

5,484,191



48,758,424



377,421,855



8,643,558



35,057,655



475,365,683

Disposals or retirements

(278,309
)

(91,915
)

(26,826,751
)

(7,421,476
)

-


(34,618,451
)
Transfers from assets subject to operating leases

-



-



39,825



-



-



39,825

Transfers to assets subject to operating leases

-



(197,752
)


-



-



-



(197,752
)
Effect of exchange rate changes

312,178



1,909,176



10,202,055



249,669



14,508,576



27,181,654

























Balance at September 30, 2024

$
13,140,057


$
868,200,908


$
5,745,822,632


$
101,296,835


$
957,855,982


$
7,686,316,414
























Accumulated depreciation
  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

8,647



38,602,180



435,226,444



8,941,089



-



482,778,360

Disposals or retirements

-



(89,743
)


(24,295,865
)


(7,420,365
)


-



(31,805,973
)
Transfers from assets subject to operating leases

-


-


37,614


-


-


37,614

Transfers to assets subject to operating leases

-


(14,367
)

-


-


-


(14,367
)
Impairment

-



47,539



1,102,946



-



-



1,150,485

Effect of exchange rate changes

15,996



1,110,773



7,357,006



173,696



-



8,657,471

























Balance at September 30, 2024

$
582,717


$
426,670,293


$
4,118,436,637


$
68,444,399


$
790,740


$
4,614,924,786

























Carrying amounts at January 1, 2024

$
7,063,923


$
430,809,064


$
1,685,977,156


$
33,075,105


$
907,499,011


$
3,064,424,259

Carrying amounts at September 30, 2024

$
12,557,340


$
441,530,615


$
1,627,385,995


$
32,852,436


$
957,065,242


$
3,071,391,628

(Continued)

- 20 -



Land and Land Improvements

Buildings

Machinery and Equipment

Office
Equipment

Equipment under Installation and Construction in Progress

Total












Cost























Balance at January 1, 2023
$
7,661,817


$
637,046,949


$
4,295,942,530


$
85,028,040


$
1,336,842,608


$
6,362,521,944

Additions (deductions)

-



165,720,355



938,930,779



14,788,418



(322,659,640
)


796,779,912

Disposals or retirements

-


(484,812
)

(19,043,355
)

(529,565
)

-


(20,057,732
)
Transfers from right-of-use assets

-



-



4,444



-



-



4,444

Transfers from assets subject to operating leases

-



-



80,370



-



-



80,370

Transfers to assets subject to operating leases

-



-



(14,592
)


-



-



(14,592
)
Effect of exchange rate changes

135,207



365,755



2,727,400



107,811



14,648,846



17,985,019

























Balance at September 30, 2023

$
7,797,024


$
802,648,247


$
5,218,627,576


$
99,394,704


$
1,028,831,814


$
7,157,299,365
























Accumulated depreciation
  and impairment                















































Balance at January 1, 2023
$
556,161


$
342,938,359


$
3,264,880,880


$
59,540,116


$
790,740


$
3,668,706,256

Additions

979



32,551,748



331,772,027



7,730,495



-



372,055,249

Disposals or retirements

-



(482,318
)


(18,272,627
)


(528,515
)


-



(19,283,460
)
Transfers from right-of-use assets

-


-


1,851


-


-


1,851

Transfers from assets subject to operating leases

-


-


53,537


-


-


53,537

Transfers to assets subject to operating leases

-


-


(1,702
)

-


-


(1,702
)
Effect of exchange rate changes

28,436



383,964



2,598,645



95,591



-



3,106,636

























Balance at September 30, 2023

$
585,576


$
375,391,753


$
3,581,032,611


$
66,837,687


$
790,740


$
4,024,638,367

























Carrying amounts at January 1, 2023

$
7,105,656


$
294,108,590


$
1,031,061,650


$
25,487,924


$
1,336,051,868


$
2,693,815,688

Carrying amounts at September 30, 2023

$
7,211,448


$
427,256,494


$
1,637,594,965


$
32,557,017


$
1,028,041,074


$
3,132,660,998

(Concluded)

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

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

Information about capitalized interest is set out in Note 22.


15.    LEASE ARRANGEMENTS

a.    Right-of-use assets


September 30,
2024

December 31,
2023

September 30,
2023





Carrying amounts










Land
$
36,725,766


$
37,437,179


$
38,056,493

Buildings

2,929,760



2,946,008



3,163,900

Office equipment

43,223



41,643



34,318













    
$
39,698,749


$
40,424,830


$
41,254,711



- 21 -



Nine Months Ended September 30

2024
2023



Additions to right-of-use assets
$
3,214,068


$
2,006,983



Three Months Ended
September 30

Nine Months Ended
September 30

2024

2023

2024

2023








Depreciation of right-of-use assets

        

        

    

        
Land

$
639,841


$
618,681


$
1,874,273


$
1,838,310

Buildings


242,627



256,734



846,997



738,607

Machinery and equipment


-



-



-



369

Office equipment


5,822



5,632



17,716



17,663


















    

$
888,290


$
881,047


$
2,738,986


$
2,594,949


b.    Lease liabilities


September 30,
2024

December 31,
2023

September 30,
2023





Carrying amounts











Current portion (classified under accrued expenses and other current liabilities)
$
2,899,784


$
2,810,551


$
2,775,196

Noncurrent portion

28,208,721



28,681,835



29,415,325













    
$
31,108,505


$
31,492,386


$
32,190,521


Ranges of discount rates for lease liabilities are as follows:


September 30,
2024
December 31,
2023
September 30,
2023


Land
0.39%-2.30%

0.39%-2.30%
0.39%-2.30%
Buildings
0.40%-6.52%

0.57%-6.52%
0.47%-6.52%
Office equipment
0.28%-6.45%

0.28%-7.13%
0.28%-7.13%

c.    Material terms of right-of-use assets

The Company leases land and buildings mainly for the use of plants and offices with lease terms of 1 to 36 years. The lease contracts for land located in the R.O.C. specify that lease payments will be adjusted every 2 years on the basis of changes in announced land value prices. The Company does not have purchase options to acquire the leasehold land and buildings at the end of the lease terms.

d.    Other lease information


Three Months Ended
September 30

Nine Months Ended
September 30

2024

2023

2024

2023








Expenses relating to short-term leases

$
62,182


$
155,708


$
121,651


$
1,170,143


- 22 -


Nine Months Ended September 30

2024

2023




Total cash outflow for leases
$
2,613,735


$
4,052,060



16.    INTANGIBLE ASSETS


Goodwill

Technology
License Fees

Software and
System Design
Costs

Patent and
Others



Total










Cost



















Balance at January 1, 2024

$
5,796,438


$
26,221,351


$
49,317,031


$
12,347,434


$
93,682,254

Additions

-



764,988



4,424,018



949,425



6,138,431

Disposals or retirements

-



(32,460
)


(4,420,290
)


(202,681
)


(4,655,431
)
Effect of exchange rate changes

120,986



585



54,399



19,900



195,870





















Balance at September 30, 2024

$
5,917,424


$
26,954,464


$
49,375,158


$
13,114,078


$
95,361,124





















Accumulated amortization and
  impairment                                







































Balance at January 1, 2024

$
-


$
20,490,070


$
39,846,671


$
10,578,769


$
70,915,510

Additions

-



2,078,442



4,068,778



729,547



6,876,767

Disposals or retirements

-



(32,460
)


(4,420,290
)


(102,000
)


(4,554,750
)
Effect of exchange rate changes


-



488



22,532



17,546



40,566




















Balance at September 30, 2024

$
-


$
22,536,540


$
39,517,691


$
11,223,862


$
73,278,093




















Carrying amounts at January 1, 2024

$
5,796,438


$
5,731,281


$
9,470,360


$
1,768,665


$
22,766,744

Carrying amounts at September 30, 2024

$
5,917,424


$
4,417,924


$
9,857,467


$
1,890,216


$
22,083,031






















Cost







































Balance at January 1, 2023

$
5,791,821


$
25,759,019


$
48,675,794


$
11,701,892


$
91,928,526

Additions

-



401,909



3,575,195



102,337



4,079,441

Disposals or retirements

-



-



(54,677
)


-



(54,677
)
Effect of exchange rate changes

212,914



2,863



7,445



27,499



250,721





















Balance at September 30, 2023

$
6,004,735


$
26,163,791


$
52,203,757


$
11,831,728


$
96,204,011





















Accumulated amortization and
  impairment                                







































Balance at January 1, 2023

$
-


$
17,696,437


$
38,838,394


$
9,394,540


$
65,929,371

Additions

-



2,105,832



3,923,467



859,025



6,888,324

Disposals or retirements

-



-



(54,677
)


-



(54,677
)
Effect of exchange rate changes


-



2,863



91



27,470



30,424




















Balance at September 30, 2023

$
-


$
19,805,132


$
42,707,275


$
10,281,035


$
72,793,442




















Carrying amounts at January 1, 2023

$
5,791,821


$
8,062,582


$
9,837,400


$
2,307,352


$
25,999,155

Carrying amounts at September 30, 2023

$
6,004,735


$
6,358,659


$
9,496,482


$
1,550,693


$
23,410,569


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


- 23 -


17.    BONDS PAYABLE

September 30,
2024

December 31,
2023

September 30,
2023






Domestic unsecured bonds
$
478,026,000


$
447,194,000


$
440,462,000

Overseas unsecured bonds

490,389,000



476,578,500



500,355,500

Less: Discounts on bonds payable


(2,699,763
)


(2,874,947
)


(3,090,167
)
Less: Current portion


(56,011,649
)


(6,997,710
)


(5,247,910
)












    
$
909,703,588


$
913,899,843


$
932,479,423


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

Issuance

Tranche
Issuance PeriodTotal AmountCoupon
Rate		Repayment and
Interest Payment






NT$ unsecured
  bonds                











113-1
(Green bond)

A
March 2024 to March 2029
$
12,000,000

1.64%
Bullet repayment; interest payable annually


B
March 2024 to March 2034

10,800,000

1.76%
The same as above
113-2
(Green bond)

A
May 2024 to May 2029

4,900,000

1.98%
The same as above


B
May 2024 to May 2034

6,600,000

2.10%
The same as above

The major terms of overseas unsecured bonds are as follows:

Issuance Period

Total Amount (US$
in Thousands)
Coupon RateRepayment and Interest Payment




September 2020 to September 2025

US$
1,000,000

0.75%
Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually
September 2020 to September 2027


750,000

1.00%
The same as above
September 2020 to September 2030


1,250,000

1.375%

The same as above
April 2021 to April 2026


1,100,000

1.25%
The same as above
April 2021 to April 2028


900,000

1.75%
The same as above
April 2021 to April 2031


1,500,000

2.25%
The same as above
(Continued)

- 24 -


Issuance Period

Total Amount (US$
in Thousands)
Coupon RateRepayment 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


1,250,000

2.50%
The same as above
October 2021 to October 2041


1,000,000

3.125%The same as above
October 2021 to October 2051


1,000,000

3.25%
The same as above
April 2022 to April 2027


1,000,000

3.875%
The same as above
April 2022 to April 2029


500,000

4.125%
The same as above
April 2022 to April 2032


1,000,000

4.25%
The same as above
April 2022 to April 2052


1,000,000

4.50%
The same as above
July 2022 to July 2027


400,000

4.375%
The same as above
July 2022 to July 2032


600,000

4.625%
The same as above
(Concluded)


18.    LONG-TERM BANK LOANS

September 30,
2024

December 31,
2023

September 30,
2023






NT$ unsecured loans
$
5,046,667


$
6,706,389


$
7,218,889

JPY unsecured loans

24,219,800



-



-

Less: Discounts on government grants

(13,456
)


(27,868
)


(33,617
)
Less: Current portion


(2,793,334
)


(2,295,556
)


(2,172,222
)












    

$
26,459,677


$
4,382,965


$
5,013,050













Loan content











Annual interest rate

0.13%-1.48%



1.15%-1.35%



1.15%-1.35%

Maturity date

Due by December 2030



Due by December 2027



Due by December 2027


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

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


- 25 -


19.    EQUITY

a.    Capital stock


September 30,
2024

December 31,
2023

September 30,
2023






Authorized shares (in thousands)

28,050,000



28,050,000



28,050,000

Authorized capital
$
280,500,000


$
280,500,000


$
280,500,000

Issued and paid shares (in thousands)

25,932,733



25,932,071



25,932,071

Issued capital
$
259,327,332


$
259,320,710


$
259,320,710


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

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

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

During the first quarter of 2024 and 2023, TSMC reclaimed 1,402 thousand and 419 thousand employee restricted shares, respectively, that were unvested. On June 5, 2024 and May 9, 2023, TSMC’s Board of Directors resolved to cancel the aforementioned shares. Subsequently, TSMC completed the registration for share cancellation. Refer to Note 26 for information on RSAs.

On August 13, 2024, TSMC’s Board of Directors resolved to cancel 3,249 thousand treasury shares. Refer to Note 19(e) for the information.

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

b.    Capital surplus

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


September 30,
2024

December 31,
2023

September 30,
2023






May be used to offset a deficit, distributed as
  cash dividends, or transferred to share
  capital                                                            











Additional paid-in capital
$
24,809,704


$
24,406,854


$
24,406,854

From merger

22,800,434



22,803,291



22,803,291

From convertible bonds

8,891,257



8,892,371



8,892,371

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

8,411,566



8,406,282



8,406,282

Donations - donated by shareholders

11,275



11,275



11,275

(Continued)

- 26 -



September 30,
2024

December 31,
2023

September 30,
2023






May only be used to offset a deficit











From share of changes in equities of subsidiaries
$
4,113,816


$
4,199,936


$
4,210,955

From share of changes in equities of associates

305,828



302,396



310,627

Donations - unclaimed dividend

70,093



70,093



53,680













May not be used for any purpose























Employee restricted shares

2,976,199



783,883



783,883













    
$
72,390,172


$
69,876,381


$
69,879,218

(Concluded)

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

c.    Retained earnings and dividend policy

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

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

The legal capital reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Company incurs no loss.

Pursuant to existing regulations, the Company is required to set aside an additional special capital reserve equivalent to the net debit balance of the other components of stockholders’ equity, such as the accumulated balance of the foreign currency translation reserve, the effectiveness of hedges of net investments in foreign operations, unrealized valuation gain or loss from fair value through other comprehensive income financial assets, gain or loss from changes in fair value of hedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses.


- 27 -

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



Third Quarter

Second Quarter

First Quarter
Resolution Date of TSMC’s

of 2024

of 2024

of 2024
  Board of Directors in its
November 12,

August 13,

May 10,
  meeting
2024

2024

2024








Special capital reserve



$
-


$
-


$
(28,020,822
)
Cash dividends to shareholders



$
116,697,300


$
103,721,521


$
103,734,517

Cash dividends per share (NT$)



$
4.50


$
4.00


$
4.00



Fourth Quarter
Third Quarter

Second Quarter

First Quarter
Resolution Date of TSMC’s
of 2023
of 2023

of 2023

of 2023
  Board of Directors in its
February 6,
November 14,

August 8,

May 9,
  meeting
2024
2023

2023

2023








Special capital reserve

$
28,020,822


$
(17,228,363
)

$
(6,365,562
)

$
3,273,452

Cash dividends to shareholders

$
90,762,248


$
90,762,248


$
77,796,213


$
77,796,213

Cash dividends per share (NT$)

$
3.50


$
3.50


$
3.00


$
3.00



Fourth Quarter
Third Quarter

Second Quarter

First Quarter
Resolution Date of TSMC’s
of 2022
of 2022

of 2022

of 2022
  Board of Directors in its
February 14,
November 8,

August 9,

May 10,
  meeting
2023
2022

2022

2022








Special capital reserve

$
17,166,163


$
(31,910,353
)

$
(12,002,798
)

$
(15,541,054
)
Cash dividends to shareholders

$
71,308,546


$
71,308,547


$
71,308,546


$
71,308,546

Cash dividends per share (NT$)

$
2.75


$
2.75


$
2.75


$
2.75


The quarterly cash dividends per share is affected by the subsequent number of outstanding ordinary shares, the information of the actual payout is available at the Market Observation Post System website.

d.    Others

Changes in others were as follows:



Nine Months Ended September 30, 2024


Foreign Currency Translation Reserve

Unrealized Gain (Loss) on Financial Assets at FVTOCI

Gain (Loss) on Hedging Instruments

Unearned Stock-Based Employee Compensation

Total











Balance, beginning of period
$
(25,316,769
)

$
(4,099,928
)

$
1,395,875


$
(293,434
)

$
(28,314,256
)
Exchange differences arising on translation of foreign operations

22,505,271



-



-



-



22,505,271

Gain (loss) on hedging instruments designated as hedges of net investments in foreign operations

793,830



-



-



-



793,830

Unrealized gain (loss) on financial assets at FVTOCI



















Equity instruments

-



4,604,652



-



-



4,604,652

Debt instruments

-



4,888,979



-



-



4,888,979

Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal


-



(2,008,432
)


-



-



(2,008,432
)
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal


-



286,502



-



-



286,502

(Continued)

- 28 -




Nine Months Ended September 30, 2024


Foreign Currency Translation Reserve

Unrealized Gain (Loss) on Financial Assets at FVTOCI

Gain (Loss) on Hedging Instruments

Unearned Stock-Based Employee Compensation

Total











Loss allowance adjustments from debt instruments

$
-


$
13,079


$
-


$
-


$
13,079

Gain (loss) arising on changes in the fair value of hedging instruments and hedged item affects profit or loss


-



-



(54,666
)


-



(54,666
)
Transferred to initial carrying amount of hedged items


-



-



(9,626
)


-



(9,626
)
Issuance of employee restricted stock


-



-



-



(2,637,387
)


(2,637,387
)
Share-based payment expenses recognized


-



-



-



715,770



715,770

Share of other comprehensive income (loss) of associates


188,752



(48,484
)


8,420



-



148,688

Income tax effect


-



(9,996
)


-



-



(9,996
)





















Balance, end of period

$
(1,828,916
)

$
3,626,372


$
1,340,003


$
(2,215,051
)

$
922,408

(Concluded)



Nine Months Ended September 30, 2023


Foreign Currency Translation Reserve

Unrealized Gain (Loss) on Financial Assets at FVTOCI

Gain (Loss) on Hedging Instruments

Unearned Stock-Based Employee Compensation

Total











Balance, beginning of period
$
(11,743,301
)

$
(10,056,353
)

$
1,479,181


$
(185,153
)

$
(20,505,626
)
Exchange differences arising on translation of foreign operations

28,675,626



-



-



-



28,675,626

Gain (loss) on hedging instruments designated as hedges of net investments in foreign operations

1,029,030



-



-



-



1,029,030

Unrealized gain (loss) on financial assets at FVTOCI



















Equity instruments

-



987,066



-



-



987,066

Debt instruments

-



(1,837,009
)


-



-



(1,837,009
)
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal


-



(118,948
)


-



-



(118,948
)
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal


-



372,631



-



-



372,631

Loss allowance adjustments from debt instruments


-



9,353



-



-



9,353

Gain (loss) arising on changes in the fair value of hedging instruments and hedged item affects profit or loss


-



-



(15,429
)


-



(15,429
)
Transferred to initial carrying amount of hedged items


-



-



(44,631
)


-



(44,631
)
Issuance of employee restricted stock


-



-



-



(585,968
)


(585,968
)
Share-based payment expenses recognized


-



-



-



350,386



350,386

Share of other comprehensive income (loss) of associates


237,518



33,858



29,098



-



300,474

Income tax effect


-



(25
)


-



-



(25
)





















Balance, end of period

$
18,198,873


$
(10,609,427
)

$
1,448,219


$
(420,735
)

$
8,616,930


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

e.    Treasury stock

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

- 29 -

20.    NET REVENUE

a.    Disaggregation of revenue from contracts with customers


Three Months Ended
September 30

Nine Months Ended
September 30
   Product
2024

2023

2024

2023








Wafer

$
645,121,210


$
473,037,347


$
1,763,258,801


$
1,342,457,631

Others


114,570,933



73,695,411



262,587,720



193,749,354


















    

$
759,692,143


$
546,732,758


$
2,025,846,521


$
1,536,206,985



Three Months Ended
September 30

Nine Months Ended
September 30
   Geography
2024

2023

2024

2023







Taiwan

$
72,582,081


$
36,868,992


$
201,443,281


$
104,596,734

United States


497,682,699



360,671,111



1,310,631,705



969,078,250

China


92,849,486



67,735,985



254,781,394



200,699,087

Japan


40,162,106



31,507,219



112,382,966



100,697,479

Europe, the Middle East and Africa


27,310,571



24,986,738



74,295,603



92,761,775

Others


29,105,200



24,962,713



72,311,572



68,373,660


















    

$
759,692,143


$
546,732,758


$
2,025,846,521


$
1,536,206,985


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

Three Months Ended
September 30

Nine Months Ended
September 30
   Platform
2024

2023

2024

2023








High Performance Computing

$
389,309,409

$
227,816,587

$
1,015,474,913

$
667,707,961

Smartphone


257,495,611


212,001,177


705,071,120


545,740,324

Internet of Things


50,255,327



47,409,811


122,922,544


128,299,154

Automotive


35,671,522



28,338,188


101,556,018


101,636,345

Digital Consumer Electronics


11,404,721



13,570,337


37,261,882


38,157,300

Others


15,555,553



17,596,658


43,560,044


54,665,901







    

$
759,692,143


$
546,732,758


$
2,025,846,521


$
1,536,206,985



Three Months Ended
September 30

Nine Months Ended
September 30
   Resolution
2024

2023

2024

2023








3-nanometer
$
129,922,709


$
28,994,752


$
265,482,929


$
29,478,462

5-nanometer

205,265,439



173,185,785



605,528,724



440,305,826

7-nanometer


110,118,632



78,280,622



311,614,860



264,328,384

16-nanometer


50,836,959



44,470,242



151,990,234



146,737,652

20-nanometer


671,100



2,788,643



3,147,487



8,710,398

28-nanometer


47,499,161



47,211,672



141,075,995



146,858,837

40/45-nanometer


29,856,699



29,417,131



84,557,230



91,585,761

65-nanometer


24,121,011



26,323,837



66,126,266



81,748,326

90-nanometer


5,217,346



5,044,479



16,322,736



20,590,275

0.11/0.13 micron


13,443,588



13,072,664



38,139,676



33,590,386

0.15/0.18 micron


23,941,303



20,137,375



67,669,341



64,474,177

0.25 micron and above


4,227,263



4,110,145



11,603,323



14,049,147





Wafer revenue

$
645,121,210


$
473,037,347


$
1,763,258,801


$
1,342,457,631



- 30 -

b.    Contract balances


September 30,
2024
December 31,
2023
September 30,
2023
January 1,
2023









Contract liabilities (classified under accrued expenses and other current liabilities)
$
86,939,340

$
52,736,430


$
50,852,364

$
70,806,617


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

The Company recognized revenue from the beginning balance of contract liability, which amounted to NT$2,522,193 thousand and NT$5,620,410 thousand for the three months ended September 30, 2024 and 2023, respectively; and NT$51,163,255 thousand and NT$69,030,566 thousand for the nine months ended September 30, 2024 and 2023, respectively.

c.    Temporary receipts from customers

September 30,
2024

December 31,
2023

September 30,
2023






Current portion (classified under accrued expenses and other current liabilities)

$
188,664,298


$
114,639,514


$
152,751,076

Noncurrent portion (classified under other noncurrent liabilities)


79,332,925



163,655,128



148,913,776














    

$
267,997,223


$
278,294,642


$
301,664,852


The Company’s temporary receipts from customer are payments made by customers to the Company to retain the Company’s capacity. When the terms and conditions set forth in the agreements are subsequently satisfied, the treatment of temporary receipts, either by refund or by accounts receivable offsetting, will be determined by mutual consent.


21.    INTEREST INCOME


Three Months Ended
September 30

Nine Months Ended
September 30

2024

2023

2024

2023








Interest income








Cash and cash equivalents

$
18,702,813


$
12,607,398


$
52,156,310


$
35,717,276

Financial assets at FVTOCI
    

1,714,763



1,143,107



4,695,873



2,910,815

Financial assets at amortized cost


2,184,078



1,844,769



6,087,876



4,257,022


















    

$
22,601,654


$
15,595,274


$
62,940,059


$
42,885,113




- 31 -



22.    FINANCE COSTS


Three Months Ended
September 30

Nine Months Ended
September 30

2024

2023

2024

2023








Interest expense








Corporate bonds
$
4,885,516


$
4,594,570


$
14,394,417


$
13,177,497

Lease liabilities

92,551



96,148



277,012



286,653

Bank loans

47,208



24,689



97,255



71,914

Others

4,594



371



14,296



1,486

Less: Capitalized interest under property, plant and equipment


(2,394,079
)


(1,603,856
)


(6,810,795
)


(4,456,787
)

















    
$
2,635,790


$
3,111,922


$
7,972,185


$
9,080,763


Information about capitalized interest is as follows:


Three Months Ended
September 30

Nine Months Ended
September 30

2024

2023

2024

2023








Capitalization rate

1.32%-3.34%

1.20%-3.36%

1.20%-3.34%

1.08%-3.36%


23.    OTHER GAINS AND LOSSES, NET


Three Months Ended
September 30

Nine Months Ended
September 30

2024

2023

2024

2023








Loss on disposal of financial assets, net








Investments in debt instruments at FVTOCI
$
(81,416
)

$
(115,078
)

$
(286,502
)

$
(372,631
)
Gain (loss) on financial instruments at FVTPL, net















Mandatorily measured at FVTPL

1,702,731



1,148,784



(3,730,753
)


3,982,692

The accrual of expected credit loss of financial assets















Investments in debt instruments at FVTOCI

(3,472
)


(2,748
)


(13,079
)


(9,353
)
Financial assets at amortized cost

(13,041
)


(18,099
)


(22,189
)


(31,808
)
Other (losses) gains, net

45,601



(74,211
)


293,500



351,001

 
















    
$
1,650,403


$
938,648


$
(3,759,023
)

$
3,919,901



- 32 -


24.    INCOME TAX

a.    Income tax expense recognized in profit or loss

Income tax expense consisted of the following:


Three Months Ended
September 30

Nine Months Ended
September 30

2024

2023
2024

2023








Current income tax expense







Current tax expense recognized in the current period
$
59,666,969


$
33,869,144


$
167,602,133


$
103,890,142

Income tax adjustments on prior years

(108
)


(14,038
)


(7,142,581
)


(9,698
)
Other income tax adjustments

91,862



51,012



227,823



166,838

    

59,758,723



33,906,118



160,687,375



104,047,282

Deferred income tax expense (benefit)















The origination and reversal of temporary differences

707,227



(2,760,897
)


543,057



(3,563,301
)
Investment tax credits and operating loss carryforward

(1,359,268
)


-



(2,152,672
)


945,038

    

(652,041
)


(2,760,897
)


(1,609,615
)


(2,618,263
)















Income tax expense recognized in profit or loss
$
59,106,682


$
31,145,221


$
159,077,760


$
101,429,019


b.    Income tax examination

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


25.    EARNINGS PER SHARE


Three Months Ended
September 30

Nine Months Ended
September 30

20242023

20242023








Basic EPS
$
12.55


$
8.14


$
30.80


$
23.13

Diluted EPS
$
12.54


$
8.14


$
30.80


$
23.13


EPS is computed as follows:


Three Months Ended
September 30

Nine Months Ended
September 30

20242023

20242023








Basic EPS







Net income available to common shareholders of the parent
$
325,257,571


$
210,999,939


$
798,587,976


$
599,785,521

(Continued)

- 33 -


Three Months Ended
September 30

Nine Months Ended
September 30

20242023

20242023








Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)

25,926,018



25,929,267



25,928,074



25,929,208

Basic EPS (in dollars)
$
12.55


$
8.14


$
30.80


$
23.13

















Diluted EPS















Net income available to common shareholders of the parent
$
325,257,571


$
210,999,939


$
798,587,976


$
599,785,521

Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)

25,926,018



25,929,267



25,928,074



25,929,208

Effects of all dilutive potential common shares (in thousands)

2,206



91



1,637



130

















Weighted average number of common shares used in the computation of diluted EPS (in thousands)

25,928,224



25,929,358



25,929,711



25,929,338

Diluted EPS (in dollars)
$
12.54


$
8.14


$
30.80


$
23.13

(Concluded)


26.    SHARE-BASED PAYMENT ARRANGEMENTS

a.    Equity-settled share-based payment-RSAs

The RSAs in each year are as follows:


2024 RSAs 2023 RSAs 2022 RSAs 2021 RSAs









Resolution Date of TSMC’s shareholders in its meeting
June 4, 2024
June 6, 2023

June 8, 2022
July 26, 2021
Resolution Date of TSMC’s Board of Directors in its meeting
August 13, 2024
February 6, 2024

February 14, 2023
February 15, 2022
Issuance of stocks (in thousands)
2,353
2,960

2,110
1,387
Available for issuance (in thousands)
1,832
3,289

-
-
Eligible employees
Executive officers
Executive officers

Executive officers
Executive officers
Grant date/Issuance date
September 1, 2024
March 1, 2024

March 1, 2023
March 1, 2022

Vesting conditions of the aforementioned arrangement are as follow:

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

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

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

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


- 34 -

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

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

TSMC’s TSR relative to the
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
(In Thousands)
Number of Shares
(In Thousands)
Number of Shares
(In Thousands)
Number of Shares
(In Thousands)
Balance, beginning of period
-
-
2,110
694
Issuance of stocks
2,353
2,960
-
-
Canceled shares
-
-
(1,055
)
(347
)
Balance, end of period
2,353
2,960
1,055
347
Weighted-average fair value of RSAs (in dollars)
$
662.42
$
364.43
$
277.71
$
325.81

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


2024 RSAs2023 RSAs2022 RSAs2021 RSAs

September 1, 2024March 1, 2024March 1, 2023March 1, 2022
Stock price at measurement date (in dollars)
$
944


$
689


$
511


$
604

Expected price volatility

25.51%-29.87%



24.77%-26.12%



29.34%-32.11%



25.34%-28.28%

Expected life

1-3 years



1-3 years



1-3 years



1-3 years

Risk-free interest rate

1.40%



1.16%



1.06%



0.57%


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


- 35 -

b.    Cash-settled share-based payment arrangements

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



2023 Plan

2022 Plan

2021 Plan







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

February 6,
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:


Nine Months Ended September 30

2024

2023

2023 Plan

2022 Plan

2021 Plan

2022 Plan

2021 Plan










Stock price at measurement date
(in dollars)

$
1,000


$
1,000


$
1,000


$
522


$
522

Expected price volatility


25.77%-30.55%



25.77%-30.55%



25.77%-30.55%



25.20%-26.65%



25.20%-26.65%

Residual life


1-3 years



1-2 years



1 year



1-3 years



1-2 years

Risk-free interest rate


1.39%



1.37%



1.36%



1.08%



1.05%


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


27.    ADDITIONAL INFORMATION OF EXPENSES BY NATURE


Three Months Ended
September 30

Nine Months Ended
September 30

20242023

20242023








a.    Depreciation of property, plant and equipment and right-of-use assets
















Recognized in cost of revenue
$
156,176,635

$
137,203,831


$
458,796,761


$
352,150,676

Recognized in operating expenses

9,730,876


7,722,319



26,720,585



22,499,522

Recognized in other operating income and expenses

7,624


680



24,200



3,969
















    
$
165,915,135

$
144,926,830


$
485,541,546


$
374,654,167



- 36 -



Three Months Ended
September 30

Nine Months Ended
September 30

20242023

20242023







b.    Amortization of intangible assets














Recognized in cost of revenue
$
1,584,940


$
1,672,325


$
4,752,015


$
4,859,139

Recognized in operating expenses

728,482



681,007



2,124,752



2,029,185


















$
2,313,422


$
2,353,332


$
6,876,767


$
6,888,324

















c.    Employee benefits expenses































Post-employment benefits















Defined contribution plans
$
1,507,484

$
1,355,745


$
4,387,257


$
3,980,104

Defined benefit plans

68,908


70,335



206,734



211,018

    

1,576,392


1,426,080



4,593,991



4,191,122

Share-based payments














Equity-settled

322,961


127,349



735,748



355,701

Cash-settled

117,470


9,124



256,879



47,303



440,431


136,473



992,627



403,004

Other employee benefits

78,378,403


58,704,130



207,500,237



169,792,271
















        
$
80,395,226

$
60,266,683


$
213,086,855


$
174,386,397
















Employee benefits expense summarized by function














Recognized in cost of revenue
$
43,538,300

$
33,519,721


$
115,999,386


$
98,158,663

Recognized in operating expenses

36,856,926


26,746,962



97,087,469



76,227,734
















    
$
80,395,226

$
60,266,683


$
213,086,855


$
174,386,397


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

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


Three Months Ended
September 30

Nine Months Ended
September 30

20242023

20242023








Profit sharing bonus to employees

$
19,517,346


$
12,607,089


$
47,815,500


$
35,832,625



- 37 -


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


Years Ended December 31


2023

2022

Resolution Date of TSMC’s Board of Directors in its meeting
February 6,
2024
February 14,
2023
Profit sharing bonus to employees
$
50,090,533


$
60,702,047

Compensation to directors
$
551,955


$
690,128


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

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


28.    GOVERNMENT GRANTS

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


29.    CASH FLOW INFORMATION

a.    Non-cash transactions



Nine Months Ended September 30


2024

2023





Additions of financial assets at FVTOCI

$
67,243,640


$
56,055,303

Conversion of convertible bonds into equity securities


(387,592
)


(145,144
)
Changes in accrued expenses and other current liabilities


(2,738,806
)


(1,077,537
)









Payments for acquisition of financial assets at FVTOCI

$
64,117,242


$
54,832,622










Disposal of financial assets at FVTOCI

$
45,501,690


$
28,988,810

Changes in other financial assets


(2,047,690
)


(184,044
)









Proceeds from disposal of financial assets at FVTOCI

$
43,454,000


$
28,804,766










Additions of property, plant and equipment

$
475,365,683


$
796,779,912

Changes in other receivables


49,114,375



44,432

Exchange of assets


(109,273
)


(59,387
)
Changes in payables to contractors and equipment suppliers


49,519,008



(12,887,052
)
Changes in accrued expenses and other current liabilities


26,974,334



195,589

Transferred to initial carrying amount of hedged items


5,042



39,898

Capitalized interests


(6,810,795
)


(4,456,787
)









Payments for acquisition of property, plant and equipment

$
594,058,374


$
779,656,605



- 38 -


b.    Reconciliation of liabilities arising from financing activities





Non-cash Changes


Balance as of
January 1, 2024

Financing Cash
Flow

Foreign
Exchange
Movement

Leases
Modifications

Other Changes
(Note)

Balance as of
September 30,
2024











Hedging financial liabilities- bank loans

$
27,290,400


$
(26,496,570
)

$
(793,830
)

$
-


$
-


$
-

Bonds payable


920,897,553



29,014,319



15,513,985



-



289,380



965,715,237

Long-term bank loans


6,678,521



21,782,278



777,800



-



14,412



29,253,011

Lease liabilities


31,492,386



(2,566,213
)


(20,524
)


1,925,844



277,012



31,108,505


























Total

$
986,358,860


$
21,733,814


$
15,477,431


$
1,925,844


$
580,804


$
1,026,076,753






Non-cash Changes


Balance as of
January 1, 2023

Financing Cash
Flow

Foreign
Exchange
Movement

Leases
Modifications

Other Changes
(Note)

Balance as of
September 30,
2023











Hedging financial liabilities- bank loans

$
-


$
27,908,580


$
(1,029,030
)

$
-


$
-


$
26,879,550

Bonds payable


852,436,439



57,721,552



27,301,588



-



267,754



937,727,333

Long-term bank loans


5,973,936



1,205,556



-



-



5,780



7,185,272

Lease liabilities


32,367,601



(2,411,870
)


28,970



1,919,167



286,653



32,190,521


























Total

$
890,777,976


$
84,423,818


$
26,301,528


$
1,919,167


$
560,187


$
1,003,982,676


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


30.    FINANCIAL INSTRUMENTS

a.    Categories of financial instruments


September 30,
2024

December 31,
2023

September 30,
2023






Financial assets






FVTPL (Note 1)

$
15,566,035


$
14,342,093


$
490,163

FVTOCI (Note 2)


203,123,752



167,150,802



167,303,596

Hedging financial assets


1,079



-



37,451

Amortized cost (Note 3)


2,383,140,378



1,842,412,631



1,729,394,612














    

$
2,601,831,244


$
2,023,905,526


$
1,897,225,822













Financial liabilities











FVTPL (Note 4)

$
34,277


$
121,412


$
132,768

Hedging financial liabilities


1,875



27,334,164



26,879,550

Amortized cost (Note 5)


1,848,994,088



1,741,356,555



1,820,363,905














    

$
1,849,030,240


$
1,768,812,131


$
1,847,376,223


Note 1: Financial assets mandatorily measured at FVTPL.

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

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

Note 4: Held for trading.


- 39 -

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

b.    Financial risk management objectives

The Company manages its exposure to foreign currency risk, interest rate risk, equity price risk, credit risk and liquidity risk with the objective to reduce the potentially adverse effects the market uncertainties may have on its financial performance.

The plans for material treasury activities are reviewed by the Audit and Risk Committee and/or Board of Directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, the Company must comply with certain treasury procedures that provide guiding principles for overall financial risk management and segregation of duties.

c.    Market risk

The Company is exposed to the financial market risks, primarily changes in foreign currency exchange rates, interest rates and equity prices. A portion of these risks is hedged.

Foreign currency risk

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

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

Interest rate risk

The Company is exposed to interest rate risks primarily in relation to its investment portfolio and outstanding debt. Changes in interest rates affect the interest earned on the Company’s cash and cash equivalents and fixed income securities, the fair value of those securities, as well as the interest paid on its debt.

The majority of the Company’s fixed income investments are fixed-rate securities, which are classified as financial assets at FVTOCI or at amortized cost. For those fixed income investments classified as financial assets at FVTOCI, changes in their fair value are recognized through other comprehensive income; for those classified as financial assets at amortized cost, changes in their fair value are not reflected in the carrying amount. Both classifications recognized in profit or loss if the assets are sold. The Company has entered and may in the future enter into interest rate derivatives to partially hedge the interest rate risk on its fixed income investments and anticipated debt issuance. However, these hedges can offset only a limited portion of the financial impact from movements in interest rates.

- 40 -


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

The majority of the Company’s debt is fixed-rate and measured at amortized cost and as such, changes in interest rates would not affect future cash flows or the carrying amount.

Other price risk

The Company is exposed to convertible preferred stocks, equity instrument investments, and other investments price risk arising from financial assets at FVTPL and FVTOCI.

Assuming a hypothetical decrease of 10% in prices of the investments mentioned above at the end of the reporting period, the net income would have decreased by NT$1,167,572 thousand for the nine months ended September 30, 2024, and the other comprehensive income would have decreased by NT$1,148,393 thousand and NT$925,125 thousand for the nine months ended September 30, 2024 and 2023, respectively.

d.    Credit risk management

Credit risk refers to the risk that a counterparty may default on its contractual obligations resulting in financial losses to the Company. The Company is exposed to credit risks from operating activities, primarily accounts receivable, and from investing activities, primarily deposits, fixed-income investments and other financial instruments with banks. Credit risk is managed separately for business related and financial related exposures. As of the end of the reporting period, the Company’s maximum credit risk exposure is equal to the carrying amount of financial assets.

Business related credit risk

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

As of September 30, 2024, December 31, 2023 and September 30, 2023, the Company’s ten largest customers accounted for 88%, 91% and 85% of accounts receivable, respectively. The Company considers the concentration of credit risk for the remaining accounts receivable not material.

Financial credit risk

The Company mitigates its financial credit risk by selecting counterparties with investment grade credit ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors and reviews the limit applied to counterparties and adjusts the limit according to market conditions and the credit standing of the counterparties.

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


- 41 -

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

Category
Description
Basis for Recognizing Expected Credit Loss

Expected Credit Loss Ratio




Performing

Credit rating is investment grade on valuation date

12 months expected credit loss

0-0.1%
Doubtful

Credit rating is non-investment grade on valuation date

Lifetime expected credit loss-not credit impaired

-
In default

Credit rating is CC or below on valuation date

Lifetime expected credit loss-credit impaired

-
Write-off

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

Amount is written off

-

For the nine months ended September 30, 2024 and 2023, the expected credit loss increased NT$38,190 thousand and NT$46,881 thousand, respectively. The changes were mainly due to adjusted investment portfolio and fluctuations in exchange rates.

e.    Liquidity risk management

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

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


Less Than
1 Year

1-3 Years

3-5 Years

More Than
5 Years

Total









September 30, 2024


















Non-derivative financial liabilities



















Accounts payable (including related parties)
$
70,820,047


$
-


$
-


$
-


$
70,820,047

Payables to contractors and equipment suppliers

125,132,085



-



-



-



125,132,085

Accrued expenses and other current liabilities

363,772,111



-



-



-



363,772,111

Bonds payable

74,901,590



318,464,019



202,710,564



580,737,650



1,176,813,823

Long-term bank loans

2,968,389



2,658,030



20,989,844



3,351,665



29,967,928

Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)

3,292,322



5,704,657



4,689,825



20,497,138



34,183,942

Others

-



73,705,993



11,474,863



748,159



85,929,015

    

640,886,544



400,532,699



239,865,096



605,334,612



1,886,618,951





















Derivative financial instruments







































Forward exchange contracts



















Outflows

88,511,937



-



-



-



88,511,937

Inflows

(89,233,704
)


-



-



-



(89,233,704
)
    

(721,767
)


-



-



-



(721,767
)




















        

$
640,164,777


$
400,532,699


$
239,865,096


$
605,334,612


$
1,885,897,184

(Continued)

- 42 -


Less Than
1 Year

1-3 Years

3-5 Years

More Than
5 Years

Total










December 31, 2023



















Non-derivative financial liabilities



















Hedging financial liabilities-bank loans
$
27,290,400


$
-


$
-


$
-


$
27,290,400

Accounts payable (including related parties)

57,293,057



-



-



-



57,293,057

Payables to contractors and equipment suppliers

171,484,616



-



-



-



171,484,616

Accrued expenses and other current liabilities

241,118,948



-



-



-



241,118,948

Bonds payable

24,890,500



224,062,937



303,525,276



583,364,167



1,135,842,880

Long-term bank loans

2,371,296



3,889,029



585,094



-



6,845,419

Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)

3,181,651



5,248,337



4,662,868



21,754,375



34,847,231

Others

-



165,188,432



6,303,135



2,908,666



174,400,233

    

527,630,468



398,388,735



315,076,373



608,027,208



1,849,122,784




















Derivative financial instruments







































Forward exchange contracts



















Outflows

64,826,427



-



-



-



64,826,427

Inflows

(65,384,000
)


-



-



-



(65,384,000
)
    

(557,573
)


-



-



-



(557,573
)




















        

$
527,072,895


$
398,388,735


$
315,076,373


$
608,027,208


$
1,848,565,211




















September 30, 2023






































Non-derivative financial liabilities







































Hedging financial liabilities-bank loans
$
26,879,864


$
-


$
-


$
-


$
26,879,864

Accounts payable (including related parties)

53,772,306



-



-



-



53,772,306

Payables to contractors and equipment suppliers

230,848,866



-



-



-



230,848,866

Accrued expenses and other current liabilities

272,295,549



-



-



-



272,295,549

Bonds payable

23,690,820



169,555,796



358,616,332



613,998,069



1,165,861,017

Long-term bank loans

2,254,821



4,331,666



794,526



-



7,381,013

Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)

3,135,408



5,381,609



4,733,050



22,344,257



35,594,324

Others

-



143,468,212



15,847,107



2,496,129



161,811,448

    

612,877,634



322,737,283



379,991,015



638,838,455



1,954,444,387





















Derivative financial instruments







































Forward exchange contracts



















Outflows

13,751,704



-



-



-



13,751,704

Inflows

(13,763,851
)


-



-



-



(13,763,851
)
    

(12,147
)


-



-



-



(12,147
)




















        

$
612,865,487


$
322,737,283


$
379,991,015


$
638,838,455


$
1,954,432,240

(Concluded)

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



5-10 Years

10-15 Years

15-20 Years

More Than
20 Years

Total











September 30, 2024





















Lease liabilities

$
10,174,011


$
6,731,154


$
3,523,977


$
67,996


$
20,497,138

(Continued)

- 43 -



5-10 Years

10-15 Years

15-20 Years

More Than
20 Years

Total











December 31, 2023





















Lease liabilities

$
10,197,521


$
7,121,539


$
4,117,107


$
318,208


$
21,754,375






















September 30, 2023









































Lease liabilities

$
10,347,093


$
7,277,535


$
4,244,674


$
474,955


$
22,344,257

(Concluded)

f.     Fair value of financial instruments

1) Fair value measurements recognized in the consolidated balance sheets

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

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

•Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

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

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

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

Fair value hierarchy

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


September 30, 2024

Level 1

Level 2

Level 3

Total







Financial assets at FVTPL














Mandatorily measured at FVTPL







Convertible preferred stocks
$
-


$
-


$
13,692,780


$
13,692,780

Forward exchange contracts

-



971,386



-



971,386

Mutual funds

-



-



775,317



775,317

Simple agreement for future equity

-



-



126,552



126,552

















    

$
-


$
971,386


$
14,594,649


$
15,566,035

















Financial assets at FVTOCI































Investments in debt instruments















Corporate bonds
$
-


$
106,675,983


$
-


$
106,675,983

Agency mortgage-backed securities

-



43,708,974



-



43,708,974

Government bonds/Agency bonds

20,714,828



158,280



-



20,873,108

Asset-backed securities

-



11,539,314



-



11,539,314

(Continued)

- 44 -



September 30, 2024

Level 1

Level 2

Level 3

Total








Investments in equity instruments







Non-publicly traded equity investments
$
-


$
-


$
7,502,973


$
7,502,973

Publicly traded stocks

6,851,935



-



-



6,851,935

Notes and accounts receivable, net

-



5,971,465



-



5,971,465

















    

$
27,566,763


$
168,054,016


$
7,502,973


$
203,123,752
















Hedging financial assets






























Fair value hedges















Interest rate futures contracts

$
1,079


$
-


$
-


$
1,079
















Financial liabilities at FVTPL






























Held for trading















Forward exchange contracts

$
-


$
34,277


$
-


$
34,277
















Hedging financial liabilities






























Fair value hedges















Interest rate futures contracts

$
1,875


$
-


$
-


$
1,875

(Concluded)



December 31, 2023

Level 1

Level 2

Level 3

Total







Financial assets at FVTPL














Mandatorily measured at FVTPL







Convertible preferred stocks
$
-


$
-


$
13,307,160


$
13,307,160

Forward exchange contracts

-



701,182



-



701,182

Convertible bonds

-



-



223,454



223,454

Mutual funds

-



-



110,297



110,297

















    

$
-


$
701,182


$
13,640,911


$
14,342,093

















Financial assets at FVTOCI































Investments in debt instruments















Corporate bonds
$
-


$
79,605,567


$
-


$
79,605,567

Agency mortgage-backed securities

-



37,959,691



-



37,959,691

Government bonds/Agency bonds

22,091,087



247,814



-



22,338,901

Asset-backed securities

-



9,898,766



-



9,898,766

Investments in equity instruments















Non-publicly traded equity investments

-



-



7,208,655



7,208,655

Publicly traded stocks

4,727,905



-



-



4,727,905

Notes and accounts receivable, net

-



5,411,317



-



5,411,317

















    

$
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


- 45 -



September 30, 2023

Level 1

Level 2

Level 3

Total







Financial assets at FVTPL














Mandatorily measured at FVTPL







Convertible bonds
$
-


$
-


$
231,022


$
231,022

Forward exchange contracts

-



147,504



-



147,504

Mutual funds

-



-



111,637



111,637

















    

$
-


$
147,504


$
342,659


$
490,163
















Financial assets at FVTOCI































Investments in debt instruments















Corporate bonds
$
-


$
80,389,109


$
-


$
80,389,109

Agency mortgage-backed securities

-



36,337,585



-



36,337,585

Government bonds/Agency bonds

23,706,398



355,446



-



24,061,844

Asset-backed securities

-



10,419,593



-



10,419,593

Investments in equity instruments















Non-publicly traded equity investments

-



-



7,933,799



7,933,799

Publicly traded stocks

3,630,259



-



-



3,630,259

Notes and accounts receivable, net

-



4,531,407



-



4,531,407

















    

$
27,336,657


$
132,033,140


$
7,933,799


$
167,303,596


















Hedging financial assets






























Fair value hedges















Interest rate futures contracts

$
37,451


$
-


$
-


$
37,451
















Financial liabilities at FVTPL






























Held for trading















Forward exchange contracts

$
-


$
132,768


$
-


$
132,768


Reconciliation of Level 3 fair value measurements of financial assets

The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTOCI and financial assets at FVTPL. Reconciliations for the nine months ended September 30, 2024 and 2023 are as follows:



Nine Months Ended September 30


2024

2023




Balance, beginning of period
$
20,849,566


$
6,282,052

Additions

1,828,697



1,034,748

Recognized in profit or loss

(139,280
)


27,022

Recognized in other comprehensive income or loss

(518,075
)


695,099

Disposals and proceeds from return of capital of investments

(319,518
)


(117,897
)
Transfers out of level 3 (Note)

(164,860
)


-

Effect of exchange rate changes

561,092



355,434








Balance, end of period
$
22,097,622


$
8,276,458



- 46 -


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

Valuation techniques and assumptions used in Level 2 fair value measurement

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

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

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

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

Valuation techniques and assumptions used in Level 3 fair value measurement

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

The asset approach takes into account the net asset value measured at the fair value by independent parties. On September 30, 2024, December 31, 2023 and September 30, 2023, the Company uses unobservable inputs derived from discount for lack of marketability of 10%. When other inputs remain equal, the fair value will decrease by NT$53,470 thousand, NT$52,704 thousand and NT$59,572 thousand, respectively, if discounts for lack of marketability increase by 1%.

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

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

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

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


- 47 -

Fair value hierarchy

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

September 30, 2024

Carrying

Fair Value

Amount

Level 1

Level 2

Total
Financial assets















Financial assets at amortized costs







Corporate bonds
$
137,277,630


$
-


$
138,689,936


$
138,689,936

Commercial paper

22,960,780



-



22,979,686



22,979,686

Government bonds/Agency bonds

4,225,749



4,326,268



-



4,326,268



















$
164,464,159


$
4,326,268


$
161,669,622


$
165,995,890

















Financial liabilities































Financial liabilities at amortized costs















Bonds payable

$
965,715,237


$
-


$
900,337,602


$
900,337,602



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

18,371,705



-



18,385,329



18,385,329

Government bonds/Agency bonds

13,803,559



2,751,893



11,053,234



13,805,127



















$
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



September 30, 2023

Carrying

Fair Value

Amount

Level 1

Level 2

Total








Financial assets















Financial assets at amortized costs







Corporate bonds
$
126,195,790


$
-


$
124,215,176


$
124,215,176

Commercial paper

22,147,473



-



22,166,534



22,166,534

Government bonds/Agency bonds

15,297,477



2,787,162



12,327,040



15,114,202


















$
163,640,740


$
2,787,162


$
158,708,750


$
161,495,912

















Financial liabilities































Financial liabilities at amortized costs















Bonds payable
$
937,727,333


$
-


$
829,219,281


$
829,219,281


Valuation techniques and assumptions used in Level 2 fair value measurement

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


- 48 -

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


31.    RELATED PARTY TRANSACTIONS

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

a.    Related party name and categories

Related Party NameRelated Party Categories


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

b.    Net revenue




Three Months Ended
September 30

Nine Months Ended
September 30



2024

2023

2024

2023










Item
Related Party Categories



















Net revenue from sale of goods
Associates

$
3,729,245


$
2,707,687


$
11,394,850


$
9,934,126


c.    Purchases


Three Months Ended
September 30

Nine Months Ended
September 30

2024

2023

2024

2023








Related Party Categories















Associates
$
1,282,865


$
922,561


$
3,545,858


$
3,303,946


d.    Receivables from related parties



September 30,
2024

December 31,
2023

September 30,
2023








Item
Related Party Name















Receivables from

GUC

$
259,441


$
514,819


$
199,068

related parties

Xintec


143,938



109,632



157,189


















    

$
403,379


$
624,451


$
356,257















Other receivables

SSMC

$
57,564


$
58,093


$
60,333

from related

VIS


16,913



13,778



22,030

parties
















    

$
74,477


$
71,871


$
82,363



- 49 -

e.    Payables to related parties



September 30,
2024

December 31,
2023

September 30,
2023








Item
Related Party Name















Payables to related

Xintec

$
1,165,016


$
1,020,226


$
1,186,773

parties

SSMC


393,729



457,348



295,730



Others


127,105



88,726



138,920


















    

$
1,685,850


$
1,566,300


$
1,621,423


f.    Others




Three Months Ended
September 30

Nine Months Ended
September 30



2024

2023

2024

2023










Item

Related Party Categories


















Manufacturing expenses
Associates

$
1,683,167


$
1,536,508


$
3,780,950


$
3,454,397


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

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

g.    Compensation of key management personnel

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


Three Months Ended September 30

Nine Months Ended
September 30

2024

2023

2024

2023








Short-term employee benefits
$
1,086,604


$
817,111


$
3,028,668


$
2,454,401

Post-employment benefits

808



1,049



3,054



2,965

Share-based payments

322,017



134,066



851,404



386,838

















    
$
1,409,429


$
952,226


$
3,883,126


$
2,844,204


The compensation to directors and other key management personnel were determined by the Compensation and People Development Committee of TSMC in accordance with the individual performance and market trends.


32.    PLEDGED ASSETS

The Company provided certificate of deposits recorded in other financial assets as collateral mainly for building lease agreements. As of September 30, 2024, December 31, 2023 and September 30, 2023, the aforementioned other financial assets amounted to NT$127,743 thousand, NT$124,302 thousand and NT$128,861 thousand, respectively.



- 50 -

33.    SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Significant contingent liabilities and unrecognized commitments of the Company as of the end of the reporting period, excluding those disclosed in other notes, were as follows:

a.Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C. Government or its designee approved by TSMC can use up to 35% of TSMC’s capacity provided TSMC’s outstanding commitments to its customers are not prejudiced. The term of this agreement is for five years beginning from January 1, 1987 and is automatically renewed for successive periods of five years unless otherwise terminated by either party with one year prior notice. As of the end of reporting period, the R.O.C. Government did not invoke such right.

b.Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in Singapore. TSMC’s equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips spun-off its semiconductor subsidiary which was renamed as NXP B.V. Further, TSMC and NXP B.V. purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, TSMC and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. TSMC and NXP B.V. are required, in the aggregate, to purchase at least 70% of SSMC’s capacity, but TSMC alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a specific percentage of its capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. There was no default from the aforementioned commitment as of the end of reporting period.

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

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

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

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

g.The Company entrusted financial institutions to provide performance guarantees mainly for import and export of goods, lease agreement and energy purchase agreement. As of September 30, 2024, December 31, 2023 and September 30, 2023, the aforementioned guarantee amounted to NT$10,144,487 thousand, NT$8,012,973 thousand, and NT$8,064,025 thousand, respectively.


34.    SIGNIFICANT LOSS FROM DISASTER

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


- 51 -

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

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

Foreign
Currencies
(In Thousands)

Exchange Rate
(Note 1)

Carrying
Amount
(In Thousands)







September 30, 2024













Financial assets













Monetary items






USD

$
16,643,822



31.638


$
526,577,229

EUR


846,618



35.412



29,980,440

EUR


124,264



1.119
(Note 2)


4,400,425

JPY


70,644,061



0.2222



15,697,110














Financial liabilities






















Monetary items











USD

15,476,747



31.638



489,653,327

EUR

623,972



35.412



22,096,101

EUR

123,422



1.119
(Note 2)


4,370,625

JPY

74,865,167



0.2222



16,635,040












December 31, 2023























Financial assets






















Monetary items











USD

14,756,970



30.747



453,732,565

EUR

432,124



34.175



14,767,835

EUR

484,580



1.111
(Note 2)


16,560,515

JPY

13,320,705



0.2192



2,919,899












Financial liabilities






















Monetary items











USD

14,121,653



30.747



434,198,454

EUR

803,472



34.175



27,458,643

EUR

482,869



1.111
(Note 2)


16,502,044

JPY

199,911,305



0.2192



43,820,558














September 30, 2023

























Financial assets

























Monetary items












USD


14,024,503



32.281



452,724,972

EUR


284,709



33.989



9,676,990

EUR


172,497



1.053
(Note 2)


5,863,012

JPY


63,541,086



0.2159



13,718,520

(Continued)
- 52 -



Foreign
Currencies
(In Thousands)

Exchange Rate
(Note 1)

Carrying
Amount
(In Thousands)






Financial liabilities










Monetary items





USD
$
14,086,103



32.281


$
454,713,480

EUR

436,807



33.989



14,846,641

EUR

165,914



1.053
(Note 2)


5,639,262

JPY

188,152,004



0.2159



40,622,018

(Concluded)

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

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

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


36.    ADDITIONAL DISCLOSURES

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

a.Financings provided: See Table 1 attached;

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

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

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

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

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

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

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

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

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

- 53 -

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

l.Information on investment in mainland China

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

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

m.Information of major shareholders

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


37.    OPERATING SEGMENTS INFORMATION

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

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

- 54 -


TABLE 1


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

FINANCINGS PROVIDED
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)


No.Financing CompanyCounterpartyFinancial Statement AccountRelated 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 RateNature for FinancingTransaction AmountsReason for FinancingAllowance for Bad DebtCollateral
Financing Limits for Each Borrowing Company
(Notes 1 to 3)
Financing Company’s Total Financing Amount Limits
(Notes 1 to 3)
ItemValue















0
TSMC
TSMC Arizona
Other receivables from related parties
Yes
$
(US$
94,914,000
3,000,000
$
)
$
-

$
-

-
The need for short-term financing
$
-

Capacity installation and working capital
$
-

-
$
-

$
399,001,915

$
798,003,831

1
TSMC China
TSMC Nanjing
Other receivables from related parties
Yes
$
(RMB
(US$
53,928,620
8,800,000
450,000
$
)&
)
$
(RMB
(US$
50,320,300
8,000,000
450,000
$
)&
)
$
(RMB
36,083,200
8,000,000
$
)
1.30%-1.50%
The need for short-term and long-term financing

-

Operating capital

-

-

-


108,188,209


108,188,209

2
TSMC Development
TSMC Washington
Other receivables from related parties
Yes
$
(US$
1,898,280
60,000
$
)
$
(US$
1,898,280
60,000
$
)
$
(US$
949,140
30,000
$
)
-
The need for short-term financing

-

Operating capital

-

-

-


33,878,572


33,878,572




































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

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

Note 3: The aggregate amount available for lending to TSMC Washington from TSMC Development and the aggregate amount of lending from TSMC Development shall not exceed the net worth of TSMC Development.

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

- 55 -

TABLE 2


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)


No.
Endorsement/
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 PropertiesRatio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements
Maximum Endorsement/ Guarantee Amount Allowable
(Notes 1 and 2)
Guarantee
Provided by
Parent Company
Guarantee
Provided by
A Subsidiary
Guarantee
Provided to Subsidiaries in Mainland China
NameNature of Relationship











0
TSMC
TSMC North America
Subsidiary
$
1,596,007,661

$
(US$
2,632,702
83,213

)
$
(US$
2,632,702
83,213

)
$
(US$
2,632,702
83,213

)
$
-

0.07%
$
1,596,007,661

Yes
No
No

TSMC Global
Subsidiary

1,596,007,661


(US$
237,285,000
7,500,000

)

(US$
237,285,000
7,500,000

)

(US$
237,285,000
7,500,000

)

-

5.95%

1,596,007,661

Yes
No
No

TSMC Arizona
Subsidiary

1,596,007,661


(US$
380,681,704
12,032,420

)

(US$
380,681,704
12,032,420

)

(US$
254,129,704
8,032,420

)

-

9.54%

1,596,007,661

Yes
No
No
1TSMC Japan
TSMC JDC
The same parent company

364,605


(JPY
293,304
1,320,000

)

(JPY
293,304
1,320,000

)

(JPY
293,304
1,320,000

)

-

0.01%

364,605

No
No
No


























Note 1:    TSMC provides endorsements and guarantees for TSMC North America, TSMC Global and TSMC Arizona. Both individual and total endorsements and guarantees shall not exceed forty percent (40%) of TSMC’s net worth.

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

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

- 56 -

TABLE 3


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

MARKETABLE SECURITIES HELD
SEPTEMBER 30, 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC
Non-publicly traded equity investments


            
            

            


United Industrial Gases Co., Ltd.
-
Financial assets at fair value through other comprehensive income

21,230

$
486,601


    10

$
486,601



Shin-Etsu Handotai Taiwan Co., Ltd.
-
〃

10,500


456,372


    7


456,372



Global Investment Holding Inc.
-
〃

10,442


106,825


    6


106,825




















Commercial paper
















China Steel Corporation
-
Financial assets at amortized cost

770


7,678,160


    N/A


7,685,830



Cathay Financial Holding Co., Ltd.
-
〃

432


4,308,592


    N/A


4,313,146



Formosa Chemicals & Fibre Corporation
-
〃

250


2,492,368


    N/A


2,494,976



Taiwan Power Company
-
〃

245


2,446,341


    N/A


2,446,407



CPC Corporation, Taiwan
-
〃

220


2,196,535


    N/A


2,196,755



Formosa Plastics Corporation
-
〃

200


1,993,861


    N/A


1,995,800



Nan Ya Plastics Corporation
-
〃

185


1,844,923


    N/A


1,846,772



















TSMC Partners
Fund
















Carbon Nature SCSp
-
Financial assets at fair value through Profit or Loss

-

US$
9,487


    18

US$
9,487



Imprint Nature-Based Opportunities Offshore SCSp
-
〃

-

US$
7,567


    5

US$
7,567



Matter Venture Partners Fund I, L.P.
-
〃

-

US$
7,452


    7

US$
7,452




















Non-publicly traded equity investments
















Shanghai Walden Venture Capital Enterprise
-
Financial assets at fair value through other comprehensive income

-

US$
21,709


    6

US$
21,709



Walden Technology Ventures Investments II, L.P.
-
〃

-

US$
19,310


    9

US$
19,310



Walden Technology Ventures Investments III, L.P.
-
〃

-

US$
11,703


    4

US$
11,703



Tela Innovations
-
〃

6,942


-


    22


-




















Publicly traded stocks
















ARM Holdings plc
-
Financial assets at fair value through other comprehensive income

1,111

US$
158,853


    -

US$
158,853



Movella Holdings Inc.
-
〃

3,095

US$
48


    6

US$
48



















TSMC Global
Corporate bond
















Bank of America Corporation
-
Financial assets at fair value through other comprehensive income

-

US$
102,697


    N/A

US$
102,697



Morgan Stanley
-
〃

-

US$
89,991


    N/A

US$
89,991



Wells Fargo & Company
-
〃

-

US$
83,317


    N/A

US$
83,317



JPMorgan Chase & Co.
-
〃

-

US$
82,887


    N/A

US$
82,887



The Goldman Sachs Group, Inc.
-
〃

-

US$
75,146


    N/A

US$
75,146



Citigroup Inc.
-
〃

-

US$
59,091


    N/A

US$
59,091



HSBC Holdings plc
-
〃

-

US$
39,159


    N/A

US$
39,159



BNP Paribas SA
-
〃

-

US$
38,615


    N/A

US$
38,615



Principal Life Global Funding II
-
〃

-

US$
37,419


    N/A

US$
37,419



Sumitomo Mitsui Trust Bank, Limited
-
〃

-

US$
36,782


    N/A

US$
36,782



NatWest Group plc
-
〃

-

US$
36,613


    N/A

US$
36,613



Banco Santander, S.A.
-
〃

-

US$
36,174


    N/A

US$
36,174



















(Continued)

- 57 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
Nationwide Building Society
-
Financial assets at fair value through other comprehensive income
            -
US$
35,691

    N/A
US$
35,691



Credit Agricole SA London Branch
-
〃
            -
US$
35,136

    N/A
US$
35,136



BPCE SA
-
〃
            -
US$
34,215

    N/A
US$
34,215



Barclays PLC
-
〃
            -
US$
33,769

    N/A
US$
33,769



Lloyds Banking Group plc
-
〃
            -
US$
30,488

    N/A
US$
30,488



Hyundai Capital America
-
〃
            -
US$
30,065

    N/A
US$
30,065



Sumitomo Mitsui Financial Group, Inc.
-
〃
            -
US$
29,686

    N/A
US$
29,686



American Express Company
-
〃
            -
US$
27,950

    N/A
US$
27,950



Volkswagen Group of America Finance, LLC
-
〃
            -
US$
25,924

    N/A
US$
25,924



Athene Global Funding
-
〃
            -
US$
25,494

    N/A
US$
25,494



Toyota Motor Credit Corporation
-
〃
            -
US$
24,607

    N/A
US$
24,607



Deutsche Bank AG - New York Branch
-
〃
            -
US$
24,278

    N/A
US$
24,278



Penske Truck Leasing Co., L.P.
-
〃
            -
US$
23,943

    N/A
US$
23,943



The Toronto-Dominion Bank
-
〃
            -
US$
23,788

    N/A
US$
23,788



The Bank of Nova Scotia
-
〃
            -
US$
22,925

    N/A
US$
22,925



AIG Global Funding
-
〃
            -
US$
22,750

    N/A
US$
22,750



Banque Fédérative du Crédit Mutuel
-
〃
            -
US$
22,198

    N/A
US$
22,198



Glencore Funding LLC
-
〃
            -
US$
21,501

    N/A
US$
21,501



Bank of Montreal
-
〃
            -
US$
21,320

    N/A
US$
21,320



Capital One Financial Corporation
-
〃
            -
US$
21,026

    N/A
US$
21,026



Equitable Financial Life Global Funding
-
〃
            -
US$
20,951

    N/A
US$
20,951



General Motors Financial Company, Inc.
-
〃
            -
US$
20,925

    N/A
US$
20,925



Bunge Limited Finance Corp.
-
〃
            -
US$
20,812

    N/A
US$
20,812



Mizuho Financial Group, Inc.
-
〃
            -
US$
20,765

    N/A
US$
20,765



RGA Global Funding
-
〃
            -
US$
20,555

    N/A
US$
20,555



ABN AMRO Bank N.V.
-
〃
            -
US$
19,731

    N/A
US$
19,731



Macquarie Bank Limited
-
〃
            -
US$
19,610

    N/A
US$
19,610



Daimler Trucks Finance North America LLC
-
〃
            -
US$
19,479

    N/A
US$
19,479



Danske Bank A/S
-
〃
            -
US$
18,583

    N/A
US$
18,583



UnitedHealth Group Incorporated
-
〃
            -
US$
18,527

    N/A
US$
18,527



Mitsubishi UFJ Financial Group, Inc.
-
〃
            -
US$
18,193

    N/A
US$
18,193



NTT Finance Corporation
-
〃
            -
US$
18,130

    N/A
US$
18,130



Royal Bank of Canada
-
〃
            -
US$
18,101

    N/A
US$
18,101



Metropolitan Life Global Funding I
-
〃
            -
US$
17,946

    N/A
US$
17,946



Guardian Life Global Funding
-
〃
            -
US$
17,932

    N/A
US$
17,932



Fédération des caisses Desjardins du Québec
-
〃
            -
US$
17,484

    N/A
US$
17,484



Enel Finance International N.V.
-
〃
            -
US$
17,228

    N/A
US$
17,228



NatWest Markets Plc
-
〃
            -
US$
16,586

    N/A
US$
16,586



Coöperatieve Rabobank U.A.
-
〃
            -
US$
16,418

    N/A
US$
16,418



New York Life Global Funding
-
〃
            -
US$
16,383

    N/A
US$
16,383



Oracle Corporation
-
〃
            -
US$
16,068

    N/A
US$
16,068



U.S. Bancorp.
-
〃
            -
US$
15,863

    N/A
US$
15,863



Roper Technologies, Inc.
-
〃
            -
US$
15,619

    N/A
US$
15,619



UBS Group AG
-
〃
            -
US$
15,560

    N/A
US$
15,560



Northwestern Mutual Global Funding
-
〃
            -
US$
15,512

    N/A
US$
15,512



Jackson National Life Global Funding
-
〃
            -
US$
15,419

    N/A
US$
15,419



Philip Morris International Inc.
-
〃
            -
US$
15,229

    N/A
US$
15,229



Protective Life Global Funding
-
〃
            -
US$
15,116

    N/A
US$
15,116



NextEra Energy Capital Holdings, Inc.
-
〃
            -
US$
15,061

    N/A
US$
15,061



The Kroger Co.
-
〃
            -
US$
15,035

    N/A
US$
15,035



BMW US Capital, LLC
-
〃
            -
US$
14,866

    N/A
US$
14,866















(Continued)

- 58 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
Quest Diagnostics Incorporated
-
Financial assets at fair value through other comprehensive income
            -
US$
14,634

    N/A
US$
14,634



ING Groep N.V.
-
〃
            -
US$
14,469

    N/A
US$
14,469



AerCap Ireland Capital Designated Activity Company
-
〃
            -
US$
14,283

    N/A
US$
14,283



Santander Holdings USA, Inc.
-
〃
            -
US$
14,190

    N/A
US$
14,190



SMBC Aviation Capital Finance DAC
-
〃
            -
US$
14,183

    N/A
US$
14,183



National Securities Clearing Corporation
-
〃
            -
US$
14,060

    N/A
US$
14,060



Ryder System, Inc.
-
〃
            -
US$
13,860

    N/A
US$
13,860



Standard Chartered PLC
-
〃
            -
US$
13,687

    N/A
US$
13,687



The Bank of New York Mellon Corporation
-
〃
            -
US$
13,602

    N/A
US$
13,602



Southern California Edison Company
-
〃
            -
US$
13,276

    N/A
US$
13,276



COÖPERATIEVE RABOBANK U.A., NEW YORK BRANCH
-
〃
            -
US$
13,240

    N/A
US$
13,240



Amphenol Corporation
-
〃
            -
US$
13,191

    N/A
US$
13,191



ONEOK, Inc.
-
〃
            -
US$
12,808

    N/A
US$
12,808



BAE Systems plc
-
〃
            -
US$
12,801

    N/A
US$
12,801



Equifax Inc.
-
〃
            -
US$
12,371

    N/A
US$
12,371



CNO Global Funding
-
〃
            -
US$
11,978

    N/A
US$
11,978



Mercedes-Benz Finance North America LLC
-
〃
            -
US$
11,928

    N/A
US$
11,928



Bristol-Myers Squibb Company
-
〃
            -
US$
11,926

    N/A
US$
11,926



Truist Financial Corporation
-
〃
            -
US$
11,849

    N/A
US$
11,849



Amazon.com, Inc.
-
〃
            -
US$
11,637

    N/A
US$
11,637



National Rural Utilities Cooperative Finance Corporation
-
〃
            -
US$
11,436

    N/A
US$
11,436



Nomura Holdings, Inc.
-
〃
            -
US$
11,436

    N/A
US$
11,436



AT&T Inc.
-
〃
            -
US$
11,422

    N/A
US$
11,422



Prologis Targeted U.S. Logistics Fund L.P.
-
〃
            -
US$
11,356

    N/A
US$
11,356



MassMutual Global Funding II
-
〃
            -
US$
11,170

    N/A
US$
11,170



ERAC USA Finance LLC
-
〃
            -
US$
11,002

    N/A
US$
11,002



DTE Energy Company
-
〃
            -
US$
10,968

    N/A
US$
10,968



S&P Global Inc.
-
〃
            -
US$
10,845

    N/A
US$
10,845



Apple Inc.
-
〃
            -
US$
10,815

    N/A
US$
10,815



Canadian Imperial Bank of Commerce
-
〃
            -
US$
10,137

    N/A
US$
10,137



Macquarie Group Limited
-
〃
            -
US$
10,134

    N/A
US$
10,134



Svenska Handelsbanken AB (publ)
-
〃
            -
US$
10,060

    N/A
US$
10,060



T-Mobile USA, Inc.
-
〃
            -
US$
10,039

    N/A
US$
10,039



Hewlett Packard Enterprise Company
-
〃
            -
US$
10,003

    N/A
US$
10,003



Enbridge Inc.
-
〃
            -
US$
9,948

    N/A
US$
9,948



John Deere Capital Corporation
-
〃
            -
US$
9,943

    N/A
US$
9,943



Nordea Bank Abp
-
〃
            -
US$
9,919

    N/A
US$
9,919



The Charles Schwab Corporation
-
〃
            -
US$
9,568

    N/A
US$
9,568



Realty Income Corporation
-
〃
            -
US$
9,273

    N/A
US$
9,273



Merck & Co., Inc.
-
〃
            -
US$
9,263

    N/A
US$
9,263



LSEG US Fin Corp.
-
〃
            -
US$
9,223

    N/A
US$
9,223



Public Service Enterprise Group Incorporated
-
〃
            -
US$
9,219

    N/A
US$
9,219



Florida Power & Light Company
-
〃
            -
US$
9,173

    N/A
US$
9,173



American Honda Finance Corporation
-
〃
            -
US$
9,134

    N/A
US$
9,134



Amgen Inc.
-
〃
            -
US$
9,108

    N/A
US$
9,108



Equinor ASA
-
〃
            -
US$
8,801

    N/A
US$
8,801



Haleon US Capital LLC
-
〃
            -
US$
8,659

    N/A
US$
8,659



Pioneer Natural Resources Company
-
〃
            -
US$
8,579

    N/A
US$
8,579



Morgan Stanley Bank, N.A.
-
〃
            -
US$
8,577

    N/A
US$
8,577



Pfizer Investment Enterprises Pte. Ltd.
-
〃
            -
US$
8,566

    N/A
US$
8,566



Goldman Sachs Bank USA
-
〃
            -
US$
8,347

    N/A
US$
8,347















(Continued)

- 59 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
Aon North America, Inc.
-
Financial assets at fair value through other comprehensive income
            -
US$
8,285

    N/A
US$
8,285



Verizon Communications Inc.
-
〃
            -
US$
8,272

    N/A
US$
8,272



Citibank, N.A.
-
〃
            -
US$
8,233

    N/A
US$
8,233



Lowe's Companies, Inc.
-
〃
            -
US$
8,227

    N/A
US$
8,227



Tampa Electric Company
-
〃
            -
US$
8,222

    N/A
US$
8,222



META PLATFORMS INC
-
〃
            -
US$
8,144

    N/A
US$
8,144



Kimco Realty Corporation
-
〃
            -
US$
8,132

    N/A
US$
8,132



KfW
-
〃
            -
US$
8,126

    N/A
US$
8,126



Société Générale Société anonyme
-
〃
            -
US$
8,038

    N/A
US$
8,038



Constellation Energy Generation, LLC
-
〃
            -
US$
8,025

    N/A
US$
8,025



Santander UK Group Holdings plc
-
〃
            -
US$
7,960

    N/A
US$
7,960



Intuit Inc.
-
〃
            -
US$
7,776

    N/A
US$
7,776



Roche Holdings, Inc.
-
〃
            -
US$
7,755

    N/A
US$
7,755



AstraZeneca Finance LLC
-
〃
            -
US$
7,519

    N/A
US$
7,519



Johnson & Johnson
-
〃
            -
US$
7,349

    N/A
US$
7,349



Bank of Ireland Group plc
-
〃
            -
US$
7,272

    N/A
US$
7,272



Pacific Gas and Electric Company
-
〃
            -
US$
7,261

    N/A
US$
7,261



Chevron Corporation
-
〃
            -
US$
7,215

    N/A
US$
7,215



McKesson Corporation
-
〃
            -
US$
7,201

    N/A
US$
7,201



Keurig Dr Pepper Inc.
-
〃
            -
US$
7,101

    N/A
US$
7,101



Intercontinental Exchange, Inc.
-
〃
            -
US$
7,052

    N/A
US$
7,052



Cox Communications, Inc.
-
〃
            -
US$
7,047

    N/A
US$
7,047



AstraZeneca PLC
-
〃
            -
US$
7,039

    N/A
US$
7,039



Consumers Energy Company
-
〃
            -
US$
7,020

    N/A
US$
7,020



Exelon Corporation
-
〃
            -
US$
7,005

    N/A
US$
7,005



Novartis Capital Corporation
-
〃
            -
US$
6,907

    N/A
US$
6,907



Great-West Lifeco U.S. Finance 2020, Lp
-
〃
            -
US$
6,863

    N/A
US$
6,863



The Cigna Group
-
〃
            -
US$
6,775

    N/A
US$
6,775



The East Ohio Gas Company
-
〃
            -
US$
6,711

    N/A
US$
6,711



WEC Energy Group, Inc.
-
〃
            -
US$
6,699

    N/A
US$
6,699



Fidelity National Information Services, Inc.
-
〃
            -
US$
6,666

    N/A
US$
6,666



Pacific Life Global Funding II
-
〃
            -
US$
6,648

    N/A
US$
6,648



Met Tower Global Funding
-
〃
            -
US$
6,643

    N/A
US$
6,643



Swedbank AB (publ)
-
〃
            -
US$
6,584

    N/A
US$
6,584



Health Care Service Corporation, a Mutual Legal Reserve Company
-
〃
            -
US$
6,531

    N/A
US$
6,531



Take-Two Interactive Software, Inc.
-
〃
            -
US$
6,363

    N/A
US$
6,363



Eaton Corporation
-
〃
            -
US$
6,306

    N/A
US$
6,306



Empower Finance 2020, LP
-
〃
            -
US$
6,245

    N/A
US$
6,245



Schlumberger Holdings Corporation
-
〃
            -
US$
6,064

    N/A
US$
6,064



NBN Co Limited
-
〃
            -
US$
5,933

    N/A
US$
5,933



HEICO Corporation
-
〃
            -
US$
5,912

    N/A
US$
5,912



National Bank of Canada
-
〃
            -
US$
5,910

    N/A
US$
5,910



Thermo Fisher Scientific Inc.
-
〃
            -
US$
5,905

    N/A
US$
5,905



NiSource Inc.
-
〃
            -
US$
5,829

    N/A
US$
5,829



Scentre Group Trust 1
-
〃
            -
US$
5,820

    N/A
US$
5,820



The Williams Companies, Inc.
-
〃
            -
US$
5,753

    N/A
US$
5,753



Ingersoll Rand Inc.
-
〃
            -
US$
5,741

    N/A
US$
5,741



Marriott International, Inc.
-
〃
            -
US$
5,687

    N/A
US$
5,687



ASB Bank Limited
-
〃
            -
US$
5,686

    N/A
US$
5,686



Workday, Inc.
-
〃
            -
US$
5,686

    N/A
US$
5,686















(Continued)

- 60 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
Ameriprise Financial, Inc.
-
Financial assets at fair value through other comprehensive income
            -
US$
5,680

    N/A
US$
5,680



Medtronic Global Holdings S.C.A.
-
〃
            -
US$
5,660

    N/A
US$
5,660



RTX Corporation
-
〃
            -
US$
5,638

    N/A
US$
5,638



Magna International Inc.
-
〃
            -
US$
5,548

    N/A
US$
5,548



Starbucks Corporation
-
〃
            -
US$
5,521

    N/A
US$
5,521



BorgWarner Inc.
-
〃
            -
US$
5,458

    N/A
US$
5,458



Stryker Corporation
-
〃
            -
US$
5,453

    N/A
US$
5,453



MPLX LP
-
〃
            -
US$
5,406

    N/A
US$
5,406



Intel Corporation
-
〃
            -
US$
5,293

    N/A
US$
5,293



Newmont Corporation
-
〃
            -
US$
5,268

    N/A
US$
5,268



Sydney Airport Finance Company Pty Ltd
-
〃
            -
US$
5,268

    N/A
US$
5,268



Inter-American Development Bank
-
〃
            -
US$
5,215

    N/A
US$
5,215



Virginia Electric and Power Company
-
〃
            -
US$
5,181

    N/A
US$
5,181



NATIONAL SECURITIES CLEARING CORP
-
〃
            -
US$
5,175

    N/A
US$
5,175



Southwest Airlines Co.
-
〃
            -
US$
5,096

    N/A
US$
5,096



Smith & Nephew plc
-
〃
            -
US$
5,093

    N/A
US$
5,093



CGI Inc.
-
〃
            -
US$
5,062

    N/A
US$
5,062



Spire Inc.
-
〃
            -
US$
5,060

    N/A
US$
5,060



Bank of New Zealand
-
〃
            -
US$
5,037

    N/A
US$
5,037



AbbVie Inc.
-
〃
            -
US$
5,028

    N/A
US$
5,028



Mizuho Markets Cayman LP
-
〃
            -
US$
4,999

    N/A
US$
4,999



ONE Gas, Inc.
-
〃
            -
US$
4,969

    N/A
US$
4,969



Ameren Corporation
-
〃
            -
US$
4,951

    N/A
US$
4,951



Alabama Power Company
-
〃
            -
US$
4,949

    N/A
US$
4,949



Brookfield Finance Inc.
-
〃
            -
US$
4,944

    N/A
US$
4,944



Deutsche Telekom International Finance B.V.
-
〃
            -
US$
4,874

    N/A
US$
4,874



ANZ New Zealand (Int'l) Limited
-
〃
            -
US$
4,865

    N/A
US$
4,865



HP Inc.
-
〃
            -
US$
4,771

    N/A
US$
4,771



National Australia Bank Limited, New York Branch
-
〃
            -
US$
4,762

    N/A
US$
4,762



Fifth Third Bancorp
-
〃
            -
US$
4,699

    N/A
US$
4,699



Georgia Power Company
-
〃
            -
US$
4,694

    N/A
US$
4,694



F&G Global Funding
-
〃
            -
US$
4,606

    N/A
US$
4,606



GA Global Funding Trust
-
〃
            -
US$
4,598

    N/A
US$
4,598



ITC Holdings Corp.
-
〃
            -
US$
4,466

    N/A
US$
4,466



State Street Corporation
-
〃
            -
US$
4,412

    N/A
US$
4,412



AutoZone, Inc.
-
〃
            -
US$
4,386

    N/A
US$
4,386



Brighthouse Financial Global Funding
-
〃
            -
US$
4,271

    N/A
US$
4,271



Labcorp Holdings Inc.
-
〃
            -
US$
4,254

    N/A
US$
4,254



Lincoln National Corporation
-
〃
            -
US$
4,132

    N/A
US$
4,132



AvalonBay Communities, Inc.
-
〃
            -
US$
4,129

    N/A
US$
4,129



Piedmont Natural Gas Company, Inc.
-
〃
            -
US$
4,073

    N/A
US$
4,073



Korea Electric Power Corporation
-
〃
            -
US$
4,065

    N/A
US$
4,065



Public Storage
-
〃
            -
US$
4,065

    N/A
US$
4,065



Mid-Atlantic Interstate Transmission, LLC
-
〃
            -
US$
4,062

    N/A
US$
4,062



Schlumberger Investment SA
-
〃
            -
US$
4,060

    N/A
US$
4,060



L3Harris Technologies, Inc.
-
〃
            -
US$
3,985

    N/A
US$
3,985



Duke Energy Carolinas, LLC
-
〃
            -
US$
3,970

    N/A
US$
3,970



Banco Bilbao Vizcaya Argentaria, S.A.
-
〃
            -
US$
3,962

    N/A
US$
3,962



Alliant Energy Finance, LLC
-
〃
            -
US$
3,939

    N/A
US$
3,939



CNH Industrial Capital LLC
-
〃
            -
US$
3,929

    N/A
US$
3,929



B.A.T. International Finance p.l.c.
-
〃
            -
US$
3,928

    N/A
US$
3,928















(Continued)

- 61 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
GAIF Bond Issuer Pty Limited
-
Financial assets at fair value through other comprehensive income
            -
US$
3,918

    N/A
US$
3,918



Eli Lilly and Company
-
〃
            -
US$
3,876

    N/A
US$
3,876



Fortinet, Inc.
-
〃
            -
US$
3,818

    N/A
US$
3,818



Alimentation Couche-Tard Inc.
-
〃
            -
US$
3,780

    N/A
US$
3,780



Appalachian Power Company
-
〃
            -
US$
3,715

    N/A
US$
3,715



Walmart Inc.
-
〃
            -
US$
3,715

    N/A
US$
3,715



Texas Instruments Incorporated
-
〃
            -
US$
3,690

    N/A
US$
3,690



Norsk Hydro ASA
-
〃
            -
US$
3,653

    N/A
US$
3,653



Parker-Hannifin Corporation
-
〃
            -
US$
3,617

    N/A
US$
3,617



Nutrien Ltd.
-
〃
            -
US$
3,616

    N/A
US$
3,616



Advocate Health & Hospitals Corporation
-
〃
            -
US$
3,601

    N/A
US$
3,601



CenterPoint Energy Resources Corp.
-
〃
            -
US$
3,572

    N/A
US$
3,572



Burlington Northern Santa Fe, LLC
-
〃
            -
US$
3,549

    N/A
US$
3,549



Meta Platforms, Inc.
-
〃
            -
US$
3,480

    N/A
US$
3,480



Cisco Systems, Inc.
-
〃
            -
US$
3,457

    N/A
US$
3,457



Comcast Corporation
-
〃
            -
US$
3,455

    N/A
US$
3,455



Sempra
-
〃
            -
US$
3,452

    N/A
US$
3,452



Chubb INA Holdings LLC
-
〃
            -
US$
3,438

    N/A
US$
3,438



Pfizer Inc.
-
〃
            -
US$
3,391

    N/A
US$
3,391



DuPont de Nemours, Inc.
-
〃
            -
US$
3,278

    N/A
US$
3,278



Wisconsin Electric Power Company
-
〃
            -
US$
3,276

    N/A
US$
3,276



Republic Services, Inc.
-
〃
            -
US$
3,255

    N/A
US$
3,255



Lundin Energy Finance BV
-
〃
            -
US$
3,236

    N/A
US$
3,236



Corebridge Financial, Inc.
-
〃
            -
US$
3,202

    N/A
US$
3,202



Fiserv, Inc.
-
〃
            -
US$
3,169

    N/A
US$
3,169



Tyco Electronics Group S.A.
-
〃
            -
US$
3,167

    N/A
US$
3,167



Atmos Energy Corporation
-
〃
            -
US$
3,161

    N/A
US$
3,161



UBS AG, London Branch
-
〃
            -
US$
3,148

    N/A
US$
3,148



Nestlé Holdings, Inc.
-
〃
            -
US$
3,142

    N/A
US$
3,142



Anheuser-Busch Companies, LLC
-
〃
            -
US$
3,137

    N/A
US$
3,137



Duke Energy Corporation
-
〃
            -
US$
3,111

    N/A
US$
3,111



Mutual Of Omaha Companies Global Funding
-
〃
            -
US$
3,071

    N/A
US$
3,071



The PNC Financial Services Group, Inc.
-
〃
            -
US$
3,062

    N/A
US$
3,062



Caterpillar Financial Services Corporation
-
〃
            -
US$
3,047

    N/A
US$
3,047



ORIX Corporation
-
〃
            -
US$
3,025

    N/A
US$
3,025



Prologis, L.P.
-
〃
            -
US$
3,024

    N/A
US$
3,024



Archer-Daniels-Midland Company
-
〃
            -
US$
3,012

    N/A
US$
3,012



Southern California Gas Company
-
〃
            -
US$
3,008

    N/A
US$
3,008



Citizens Bank, National Association
-
〃
            -
US$
3,003

    N/A
US$
3,003



Xcel Energy Inc.
-
〃
            -
US$
2,946

    N/A
US$
2,946



Fortive Corporation
-
〃
            -
US$
2,943

    N/A
US$
2,943



Rio Tinto Finance (USA) Limited
-
〃
            -
US$
2,909

    N/A
US$
2,909



Rochester Gas and Electric Corporation
-
〃
            -
US$
2,906

    N/A
US$
2,906



BHP Billiton Finance (USA) Limited
-
〃
            -
US$
2,885

    N/A
US$
2,885



Lockheed Martin Corporation
-
〃
            -
US$
2,876

    N/A
US$
2,876



CSL Finance plc
-
〃
            -
US$
2,867

    N/A
US$
2,867



7-Eleven, Inc.
-
〃
            -
US$
2,833

    N/A
US$
2,833



Simon Property Group, L.P.
-
〃
            -
US$
2,784

    N/A
US$
2,784



Invitation Homes Operating Partnership LP
-
〃
            -
US$
2,783

    N/A
US$
2,783



Oncor Electric Delivery Company LLC
-
〃
            -
US$
2,769

    N/A
US$
2,769



Ventas Realty, Limited Partnership
-
〃
            -
US$
2,728

    N/A
US$
2,728















(Continued)

- 62 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
Weyerhaeuser Company
-
Financial assets at fair value through other comprehensive income
            -
US$
2,720

    N/A
US$
2,720



Chevron Phillips Chemical Company LLC
-
〃
            -
US$
2,703

    N/A
US$
2,703



Bayer US Finance LLC
-
〃
            -
US$
2,695

    N/A
US$
2,695



Masco Corporation
-
〃
            -
US$
2,686

    N/A
US$
2,686



Eastern Energy Gas Holdings, LLC
-
〃
            -
US$
2,678

    N/A
US$
2,678



The Estée Lauder Companies Inc.
-
〃
            -
US$
2,651

    N/A
US$
2,651



Pennsylvania Electric Company
-
〃
            -
US$
2,647

    N/A
US$
2,647



The Southern Company
-
〃
            -
US$
2,640

    N/A
US$
2,640



O'Reilly Automotive, Inc.
-
〃
            -
US$
2,634

    N/A
US$
2,634



Transcontinental Gas Pipe Line Company, LLC
-
〃
            -
US$
2,631

    N/A
US$
2,631



Avangrid, Inc.
-
〃
            -
US$
2,624

    N/A
US$
2,624



Air Products and Chemicals, Inc.
-
〃
            -
US$
2,617

    N/A
US$
2,617



KBC Group NV
-
〃
            -
US$
2,612

    N/A
US$
2,612



Kraton Corporation
-
〃
            -
US$
2,556

    N/A
US$
2,556



Otis Worldwide Corporation
-
〃
            -
US$
2,541

    N/A
US$
2,541



Siemens Financieringsmaatschappij N.V.
-
〃
            -
US$
2,536

    N/A
US$
2,536



American Electric Power Company, Inc.
-
〃
            -
US$
2,524

    N/A
US$
2,524



Nuveen Finance, LLC
-
〃
            -
US$
2,497

    N/A
US$
2,497



Entergy Texas, Inc.
-
〃
            -
US$
2,486

    N/A
US$
2,486



W. P. Carey Inc.
-
〃
            -
US$
2,443

    N/A
US$
2,443



CRH America, Inc.
-
〃
            -
US$
2,435

    N/A
US$
2,435



Westpac Banking Corporation
-
〃
            -
US$
2,419

    N/A
US$
2,419



NBN CO LTD
-
〃
            -
US$
2,407

    N/A
US$
2,407



DNB Bank ASA
-
〃
            -
US$
2,379

    N/A
US$
2,379



Yara International ASA
-
〃
            -
US$
2,369

    N/A
US$
2,369



CVS Health Corporation
-
〃
            -
US$
2,368

    N/A
US$
2,368



Boston Gas Company
-
〃
            -
US$
2,353

    N/A
US$
2,353



Cardinal Health, Inc.
-
〃
            -
US$
2,316

    N/A
US$
2,316



GE HealthCare Technologies Inc.
-
〃
            -
US$
2,294

    N/A
US$
2,294



Pricoa Global Funding I
-
〃
            -
US$
2,267

    N/A
US$
2,267



Bimbo Bakeries USA, Inc.
-
〃
            -
US$
2,247

    N/A
US$
2,247



Enel Finance America, LLC
-
〃
            -
US$
2,233

    N/A
US$
2,233



Dominion Energy, Inc.
-
〃
            -
US$
2,184

    N/A
US$
2,184



Humana Inc.
-
〃
            -
US$
2,134

    N/A
US$
2,134



Phillips 66
-
〃
            -
US$
2,120

    N/A
US$
2,120



Welltower Inc.
-
〃
            -
US$
2,097

    N/A
US$
2,097



CMS Energy Corporation
-
〃
            -
US$
2,090

    N/A
US$
2,090



Air Lease Corporation
-
〃
            -
US$
2,054

    N/A
US$
2,054



Public Service Electric and Gas Company
-
〃
            -
US$
2,039

    N/A
US$
2,039



KODIT Global 2023-1 Co., Ltd.
-
〃
            -
US$
2,018

    N/A
US$
2,018



Olympus Corporation
-
〃
            -
US$
2,004

    N/A
US$
2,004



UBS Group Funding (Jersey) Ltd.
-
〃
            -
US$
1,992

    N/A
US$
1,992



Tucson Electric Power Company
-
〃
            -
US$
1,982

    N/A
US$
1,982



FirstEnergy Transmission, LLC
-
〃
            -
US$
1,973

    N/A
US$
1,973



Gulf Power Company
-
〃
            -
US$
1,969

    N/A
US$
1,969



Shinhan Financial Group Co., Ltd.
-
〃
            -
US$
1,924

    N/A
US$
1,924



Mitsubishi Corporation
-
〃
            -
US$
1,894

    N/A
US$
1,894



NBK SPC Limited
-
〃
            -
US$
1,885

    N/A
US$
1,885



Aptiv PLC
-
〃
            -
US$
1,823

    N/A
US$
1,823



Eversource Energy
-
〃
            -
US$
1,813

    N/A
US$
1,813



Engie SA
-
〃
            -
US$
1,809

    N/A
US$
1,809















(Continued)

- 63 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
Mondelez International, Inc.
-
Financial assets at fair value through other comprehensive income
            -
US$
1,804

    N/A
US$
1,804



CenterPoint Energy Houston Electric, LLC
-
〃
            -
US$
1,797

    N/A
US$
1,797



Kentucky Utilities Company
-
〃
            -
US$
1,782

    N/A
US$
1,782



Element Fleet Management Corp.
-
〃
            -
US$
1,778

    N/A
US$
1,778



KeySpan Corporation
-
〃
            -
US$
1,742

    N/A
US$
1,742



Evergy Kansas Central, Inc.
-
〃
            -
US$
1,730

    N/A
US$
1,730



Georgia-Pacific LLC
-
〃
            -
US$
1,713

    N/A
US$
1,713



Motorola Solutions, Inc.
-
〃
            -
US$
1,707

    N/A
US$
1,707



Wells Fargo Bank, National Association
-
〃
            -
US$
1,691

    N/A
US$
1,691



University of California
-
〃
            -
US$
1,685

    N/A
US$
1,685



The Western Union Company
-
〃
            -
US$
1,671

    N/A
US$
1,671



eBay Inc.
-
〃
            -
US$
1,651

    N/A
US$
1,651



Emerson Electric Co.
-
〃
            -
US$
1,641

    N/A
US$
1,641



International Business Machines Corporation
-
〃
            -
US$
1,620

    N/A
US$
1,620



Gulfstream Natural Gas System, L.L.C.
-
〃
            -
US$
1,613

    N/A
US$
1,613



Jefferies Financial Group Inc.
-
〃
            -
US$
1,578

    N/A
US$
1,578



B.A.T Capital Corporation
-
〃
            -
US$
1,573

    N/A
US$
1,573



Cadence Design Systems, Inc.
-
〃
            -
US$
1,571

    N/A
US$
1,571



Genuine Parts Company
-
〃
            -
US$
1,564

    N/A
US$
1,564



Kinder Morgan, Inc.
-
〃
            -
US$
1,555

    N/A
US$
1,555



Zoetis Inc.
-
〃
            -
US$
1,554

    N/A
US$
1,554



Essex Portfolio, L.P.
-
〃
            -
US$
1,551

    N/A
US$
1,551



Wipro IT Services LLC
-
〃
            -
US$
1,530

    N/A
US$
1,530



APA Infrastructure Limited
-
〃
            -
US$
1,529

    N/A
US$
1,529



Phillips 66 Company
-
〃
            -
US$
1,529

    N/A
US$
1,529



Entergy Mississippi, LLC
-
〃
            -
US$
1,525

    N/A
US$
1,525



American International Group, Inc.
-
〃
            -
US$
1,520

    N/A
US$
1,520



CenterPoint Energy, Inc.
-
〃
            -
US$
1,486

    N/A
US$
1,486



NSTAR Electric Company
-
〃
            -
US$
1,480

    N/A
US$
1,480



Duke Energy Florida, LLC
-
〃
            -
US$
1,478

    N/A
US$
1,478



Berkshire Hathaway Energy Company
-
〃
            -
US$
1,471

    N/A
US$
1,471



Dollar General Corporation
-
〃
            -
US$
1,455

    N/A
US$
1,455



Jersey Central Power & Light Company
-
〃
            -
US$
1,445

    N/A
US$
1,445



IDEX Corporation
-
〃
            -
US$
1,373

    N/A
US$
1,373



Aon Corporation
-
〃
            -
US$
1,350

    N/A
US$
1,350



Northrop Grumman Corporation
-
〃
            -
US$
1,339

    N/A
US$
1,339



Eastern Gas Transmission and Storage, Inc.
-
〃
            -
US$
1,337

    N/A
US$
1,337



Andrew W. Mellon Foundation, The
-
〃
            -
US$
1,309

    N/A
US$
1,309



Elevance Health, Inc.
-
〃
            -
US$
1,300

    N/A
US$
1,300



Pernod Ricard International Finance LLC
-
〃
            -
US$
1,289

    N/A
US$
1,289



Becton, Dickinson and Company
-
〃
            -
US$
1,261

    N/A
US$
1,261



Union Pacific Corporation
-
〃
            -
US$
1,257

    N/A
US$
1,257



Ecolab Inc.
-
〃
            -
US$
1,229

    N/A
US$
1,229



Sysco Corporation
-
〃
            -
US$
1,221

    N/A
US$
1,221



Solvay Finance (America), LLC
-
〃
            -
US$
1,180

    N/A
US$
1,180



Mondelez International Holdings Netherlands B.V.
-
〃
            -
US$
1,157

    N/A
US$
1,157



OGE Energy Corp.
-
〃
            -
US$
1,143

    N/A
US$
1,143



Ferguson Finance PLC
-
〃
            -
US$
1,131

    N/A
US$
1,131



Niagara Mohawk Power Corporation
-
〃
            -
US$
1,085

    N/A
US$
1,085



Nucor Corporation
-
〃
            -
US$
1,085

    N/A
US$
1,085



AIB Group plc
-
〃
            -
US$
1,083

    N/A
US$
1,083















(Continued)

- 64 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
EDP Finance B.V.
-
Financial assets at fair value through other comprehensive income
            -
US$
1,060

    N/A
US$
1,060



CBRE Services, Inc.
-
〃
            -
US$
1,045

    N/A
US$
1,045



New York State Electric & Gas Corporation
-
〃
            -
US$
1,045

    N/A
US$
1,045



PacifiCorp
-
〃
            -
US$
1,035

    N/A
US$
1,035



MORGAN STANLEY BANK NA FXD-FRN
-
〃
            -
US$
1,022

    N/A
US$
1,022



Sabine Pass Liquefaction, LLC
-
〃
            -
US$
1,018

    N/A
US$
1,018



Bayer US Finance II LLC
-
〃
            -
US$
990

    N/A
US$
990



American Water Capital Corp.
-
〃
            -
US$
987

    N/A
US$
987



Canadian Pacific Railway Company
-
〃
            -
US$
979

    N/A
US$
979



Juniper Networks, Inc.
-
〃
            -
US$
959

    N/A
US$
959



LYB Finance Company B.V.
-
〃
            -
US$
942

    N/A
US$
942



AEP Texas Inc.
-
〃
            -
US$
940

    N/A
US$
940



Lennar Corporation
-
〃
            -
US$
939

    N/A
US$
939



The Interpublic Group of Companies, Inc.
-
〃
            -
US$
937

    N/A
US$
937



Assurant, Inc.
-
〃
            -
US$
935

    N/A
US$
935



BAE Systems Finance Inc.
-
〃
            -
US$
921

    N/A
US$
921



TC PipeLines, LP
-
〃
            -
US$
913

    N/A
US$
913



County of Palm Beach, Florida
-
〃
            -
US$
855

    N/A
US$
855



Metropolitan Edison Company
-
〃
            -
US$
830

    N/A
US$
830



CubeSmart, L.P.
-
〃
            -
US$
821

    N/A
US$
821



Cox Enterprises, Inc.
-
〃
            -
US$
801

    N/A
US$
801



BP Capital Markets America, Inc.
-
〃
            -
US$
780

    N/A
US$
780



Zimmer Biomet Holdings, Inc.
-
〃
            -
US$
780

    N/A
US$
780



Southwest Gas Corporation
-
〃
            -
US$
779

    N/A
US$
779



The Brooklyn Union Gas Company
-
〃
            -
US$
777

    N/A
US$
777



Consolidated Edison Company of New York, Inc.
-
〃
            -
US$
769

    N/A
US$
769



Veralto Corporation
-
〃
            -
US$
767

    N/A
US$
767



Oklahoma Gas and Electric Company
-
〃
            -
US$
766

    N/A
US$
766



Voya Financial, Inc.
-
〃
            -
US$
766

    N/A
US$
766



PACCAR Financial Corp.
-
〃
            -
US$
765

    N/A
US$
765



TELUS Corporation
-
〃
            -
US$
763

    N/A
US$
763



Visa Inc.
-
〃
            -
US$
761

    N/A
US$
761



Marsh & McLennan Companies, Inc.
-
〃
            -
US$
760

    N/A
US$
760



Mars, Incorporated
-
〃
            -
US$
760

    N/A
US$
760



Sprint Spectrum Co Llc
-
〃
            -
US$
730

    N/A
US$
730



Hyundai Capital Services, Inc.
-
〃
            -
US$
718

    N/A
US$
718



The Allstate Corporation
-
〃
            -
US$
695

    N/A
US$
695



Sodexo, Inc.
-
〃
            -
US$
692

    N/A
US$
692



Automatic Data Processing, Inc.
-
〃
            -
US$
670

    N/A
US$
670



Baxter International Inc.
-
〃
            -
US$
664

    N/A
US$
664



Reliance Standard Life Global Funding II
-
〃
            -
US$
657

    N/A
US$
657



Southern Power Company
-
〃
            -
US$
637

    N/A
US$
637



The Sherwin-Williams Company
-
〃
            -
US$
620

    N/A
US$
620



Florida Hurricane Catastrophe Fund Finance Corporation
-
〃
            -
US$
610

    N/A
US$
610



Infor, Inc.
-
〃
            -
US$
607

    N/A
US$
607



Burlington Resources Inc.
-
〃
            -
US$
592

    N/A
US$
592



Columbia Pipelines Holding Company, LLC
-
〃
            -
US$
573

    N/A
US$
573



Columbia Pipelines Operating Company LLC
-
〃
            -
US$
553

    N/A
US$
553



Skandinaviska Enskilda Banken AB (publ)
-
〃
            -
US$
533

    N/A
US$
533



State of Hawaii
-
〃
            -
US$
533

    N/A
US$
533



Arizona Public Service Company
-
〃
            -
US$
531

    N/A
US$
531















(Continued)

- 65 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
AIA Group Limited
-
Financial assets at fair value through other comprehensive income
            -
US$
522

    N/A
US$
522



Mississippi Power Company
-
〃
            -
US$
520

    N/A
US$
520



Waste Management, Inc.
-
〃
            -
US$
518

    N/A
US$
518



Monongahela Power Company
-
〃
            -
US$
516

    N/A
US$
516



Intesa Sanpaolo S.p.A.
-
〃
            -
US$
512

    N/A
US$
512



Westpac New Zealand Limited
-
〃
            -
US$
510

    N/A
US$
510



Commonwealth Bank of Australia
-
〃
            -
US$
500

    N/A
US$
500



Enterprise Products Operating LLC
-
〃
            -
US$
500

    N/A
US$
500



Diageo Capital plc
-
〃
            -
US$
498

    N/A
US$
498



Trane Technologies Luxembourg Finance S.A.
-
〃
            -
US$
495

    N/A
US$
495



McCormick & Company, Incorporated
-
〃
            -
US$
491

    N/A
US$
491



Altria Group, Inc.
-
〃
            -
US$
487

    N/A
US$
487



Verisk Analytics, Inc.
-
〃
            -
US$
478

    N/A
US$
478



DENSO Corporation
-
〃
            -
US$
472

    N/A
US$
472



Aker BP ASA
-
〃
            -
US$
441

    N/A
US$
441



The Home Depot, Inc.
-
〃
            -
US$
426

    N/A
US$
426



Aflac Incorporated
-
〃
            -
US$
407

    N/A
US$
407



Coca-Cola Consolidated, Inc.
-
〃
            -
US$
407

    N/A
US$
407



GlaxoSmithKline Capital Inc.
-
〃
            -
US$
399

    N/A
US$
399



Nuveen, LLC
-
〃
            -
US$
399

    N/A
US$
399



Gilead Sciences, Inc.
-
〃
            -
US$
397

    N/A
US$
397



Sierra Pacific Power Company
-
〃
            -
US$
390

    N/A
US$
390



University of Massachusetts Building Authority
-
〃
            -
US$
390

    N/A
US$
390



The Norinchukin Bank
-
〃
            -
US$
376

    N/A
US$
376



CSX Corporation
-
〃
            -
US$
373

    N/A
US$
373



Honeywell International Inc.
-
〃
            -
US$
366

    N/A
US$
366



Cargill, Incorporated
-
〃
            -
US$
363

    N/A
US$
363



Equitable Holdings, Inc.
-
〃
            -
US$
347

    N/A
US$
347



Mid-America Apartments, L.P.
-
〃
            -
US$
321

    N/A
US$
321



National Grid plc
-
〃
            -
US$
293

    N/A
US$
293



Nordson Corporation
-
〃
            -
US$
288

    N/A
US$
288



QatarEnergy
-
〃
            -
US$
284

    N/A
US$
284



Electricité de France S.A.
-
〃
            -
US$
209

    N/A
US$
209



Beth Israel Deaconess Medical Center, Inc.
-
〃
            -
US$
92

    N/A
US$
92



Wells Fargo & Company
-
Financial assets at amortized cost
            -
US$
1,100,584

    N/A
US$
1,116,453



Bank of America Corporation
-
〃
            -
US$
854,118

    N/A
US$
862,830



Citigroup Inc.
-
〃
            -
US$
553,527

    N/A
US$
556,788



JPMorgan Chase & Co.
-
〃
            -
US$
484,448

    N/A
US$
489,884



Morgan Stanley
-
〃
            -
US$
459,800

    N/A
US$
466,657



The Goldman Sachs Group, Inc.
-
〃
            -
US$
360,560

    N/A
US$
363,122



Goldman Sachs Finance Corp International Ltd
-
〃
            -
US$
209,799

    N/A
US$
211,020



BNP Paribas SA
-
〃
            -
US$
37,668

    N/A
US$
37,702



Morgan Stanley Bank, N.A.
-
〃
            -
US$
27,004

    N/A
US$
27,049



Nationwide Building Society
-
〃
            -
US$
10,559

    N/A
US$
10,533



Daimler Trucks Finance North America LLC
-
〃
            -
US$
9,859

    N/A
US$
9,862



Great-West Lifeco U.S. Finance 2020, Lp
-
〃
            -
US$
9,798

    N/A
US$
9,787



Mizuho Financial Group, Inc.
-
〃
            -
US$
9,587

    N/A
US$
9,789



UBS Group AG
-
〃
            -
US$
9,227

    N/A
US$
9,274



Fédération des caisses Desjardins du Québec
-
〃
            -
US$
9,201

    N/A
US$
9,225



Nomura Holdings, Inc.
-
〃
            -
US$
9,123

    N/A
US$
9,118



NongHyup Bank
-
〃
            -
US$
9,070

    N/A
US$
9,095















(Continued)

- 66 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
Banque Fédérative du Crédit Mutuel
-
Financial assets at amortized cost
            -
US$
8,463

    N/A
US$
8,542



Canadian Imperial Bank of Commerce
-
〃
            -
US$
8,454

    N/A
US$
8,471



Ventas Realty, Limited Partnership
-
〃
            -
US$
8,356

    N/A
US$
8,356



Banco Santander, S.A.
-
〃
            -
US$
8,297

    N/A
US$
8,333



Enel Finance International N.V.
-
〃
            -
US$
8,278

    N/A
US$
8,281



Protective Life Global Funding
-
〃
            -
US$
8,051

    N/A
US$
8,039



BPCE SA
-
〃
            -
US$
8,005

    N/A
US$
7,999



CRH America, Inc.
-
〃
            -
US$
7,989

    N/A
US$
7,963



Sydney Airport Finance Company Pty Ltd
-
〃
            -
US$
7,803

    N/A
US$
7,805



Sumitomo Mitsui Financial Group, Inc.
-
〃
            -
US$
7,734

    N/A
US$
7,766



AIG Global Funding
-
〃
            -
US$
7,698

    N/A
US$
7,740



Banco Bilbao Vizcaya Argentaria, S.A.
-
〃
            -
US$
7,242

    N/A
US$
7,284



Southern California Edison Company
-
〃
            -
US$
5,957

    N/A
US$
5,978



NatWest Markets Plc
-
〃
            -
US$
5,565

    N/A
US$
5,561



F&G Global Funding
-
〃
            -
US$
5,518

    N/A
US$
5,530



ING Groep N.V.
-
〃
            -
US$
5,277

    N/A
US$
5,357



Athene Global Funding
-
〃
            -
US$
5,208

    N/A
US$
5,204



Hyundai Capital Services, Inc.
-
〃
            -
US$
5,105

    N/A
US$
5,104



Svenska Handelsbanken AB (publ)
-
〃
            -
US$
4,787

    N/A
US$
4,823



QNB Finance Ltd.
-
〃
            -
US$
4,516

    N/A
US$
4,534



Sumitomo Mitsui Trust Bank, Limited
-
〃
            -
US$
4,186

    N/A
US$
4,189



Lloyds Banking Group plc
-
〃
            -
US$
3,989

    N/A
US$
3,991



Deutsche Bank AG - New York Branch
-
〃
            -
US$
3,987

    N/A
US$
3,990



Volkswagen Group of America Finance, LLC
-
〃
            -
US$
3,911

    N/A
US$
3,909



Mitsubishi UFJ Financial Group, Inc.
-
〃
            -
US$
3,826

    N/A
US$
3,827



Jackson National Life Global Funding
-
〃
            -
US$
3,360

    N/A
US$
3,353



ANZ New Zealand (Int'l) Limited
-
〃
            -
US$
3,298

    N/A
US$
3,291



Scottish Power Limited
-
〃
            -
US$
3,183

    N/A
US$
3,196



Spectra Energy Partners, LP
-
〃
            -
US$
2,866

    N/A
US$
2,860



Georgia-Pacific LLC
-
〃
            -
US$
1,283

    N/A
US$
1,293



GA Global Funding Trust
-
〃
            -
US$
1,189

    N/A
US$
1,193



Reliance Standard Life Global Funding II
-
〃
            -
US$
1,102

    N/A
US$
1,103



AIA Group Limited
-
〃
            -
US$
594

    N/A
US$
596






            









Agency mortgage-backed securities


            









FEDERAL NATIONAL MORTGAGE ASSOCIATION
-
Financial assets at fair value through other comprehensive income
            -
US$
710,226

    N/A
US$
710,226



Federal Home Loan Mortgage Corporation
-
〃
            -
US$
399,950

    N/A
US$
399,950



Government National Mortgage Association
-
〃
            -
US$
271,358

    N/A
US$
271,358






            









Government bond/Agency bonds


            









United States Department of The Treasury
-
Financial assets at fair value through other comprehensive income
            -
US$
654,745

    N/A
US$
654,745



Federal Home Loan Mortgage Corporation
-
〃
            -
US$
5,003

    N/A
US$
5,003



United States Department of The Treasury
-
Financial assets at amortized cost
            -
US$
133,566

    N/A
US$
136,743






            









Asset-backed securities


            









Wells Fargo Commercial Mortgage Trust 2016-Bnk1
-
Financial assets at fair value through other comprehensive income
            -
US$
10,273

    N/A
US$
10,273



Gm Financial Consumer Automobile Receivables Trust 2023-3
-
〃
            -
US$
9,045

    N/A
US$
9,045



G23-182I
-
〃
            -
US$
8,560

    N/A
US$
8,560



Ford Credit Auto Owner Trust 2021-Rev2
-
〃
            -
US$
7,966

    N/A
US$
7,966



Honda Auto Receivables 2024-1 Owner Trust
-
〃
            -
US$
7,766

    N/A
US$
7,766



Toyota Auto Receivables 2022-B Owner Trust
-
〃
            -
US$
7,705

    N/A
US$
7,705















(Continued)

- 67 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
Toyota Auto Loan Extended Note Trust 2023-1
-
Financial assets at fair value through other comprehensive income
            -
US$
7,488

    N/A
US$
7,488



Citigroup Commercial Mortgage Trust 2015-GC33
-
〃
            -
US$
7,232

    N/A
US$
7,232



Hyundai Auto Receivables Trust 2023-B
-
〃
            -
US$
7,228

    N/A
US$
7,228



Ford Credit Auto Owner Trust 2020-REV2
-
〃
            -
US$
7,110

    N/A
US$
7,110



BBCMS Mortgage Trust 2020-C8
-
〃
            -
US$
6,409

    N/A
US$
6,409



Morgan Stanley Capital I Trust 2021-L6
-
〃
            -
US$
6,145

    N/A
US$
6,145



Bank 2020-BNK26
-
〃
            -
US$
6,137

    N/A
US$
6,137



Honda Auto Receivables 2023-2 Owner Trust
-
〃
            -
US$
6,092

    N/A
US$
6,092



Hudson Yards 2016-10HY Mortgage Trust
-
〃
            -
US$
6,012

    N/A
US$
6,012



Benchmark 2019-B11 Mortgage Trust
-
〃
            -
US$
5,767

    N/A
US$
5,767



Bank 2017 - BNK7
-
〃
            -
US$
5,702

    N/A
US$
5,702



Bank 2021-bnk33
-
〃
            -
US$
5,606

    N/A
US$
5,606



Benchmark 2019-B12 Mortgage Trust
-
〃
            -
US$
5,604

    N/A
US$
5,604



Citigroup Commercial Mortgage Trust 2021-PRM2
-
〃
            -
US$
5,572

    N/A
US$
5,572



Morgan Stanley Bank America Merrill Lynch Trust 2016-C30
-
〃
            -
US$
5,435

    N/A
US$
5,435



Nissan Auto Receivables 2024-A Owner Trust
-
〃
            -
US$
5,381

    N/A
US$
5,381



Bank 2023-BNK46
-
〃
            -
US$
5,290

    N/A
US$
5,290



MSWF Commercial Mortgage Trust 2023-1
-
〃
            -
US$
5,278

    N/A
US$
5,278



Benchmark 2023-B39 Mortgage Trust
-
〃
            -
US$
5,276

    N/A
US$
5,276



BBCMS 2018-Tall Mortgage Trust
-
〃
            -
US$
5,176

    N/A
US$
5,176



Wells Fargo Commercial Mortgage Trust 2021-C59
-
〃
            -
US$
5,006

    N/A
US$
5,006



Wells Fargo Commercial Mortgage Trust 2016-C35
-
〃
            -
US$
4,944

    N/A
US$
4,944



CSAIL 2018-CX11
-
〃
            -
US$
4,940

    N/A
US$
4,940



Morgan Stanley Capital I Trust 2016 - BNK2 Fund
-
〃
            -
US$
4,854

    N/A
US$
4,854



GM Financial Revolving Receivables Trust 2021-1
-
〃
            -
US$
4,717

    N/A
US$
4,717



Bank 2017-BNK9
-
〃
            -
US$
4,306

    N/A
US$
4,306



Benchmark 2023-V3 Mortgage Trust
-
〃
            -
US$
4,177

    N/A
US$
4,177



Msbam 2016-C29
-
〃
            -
US$
4,099

    N/A
US$
4,099



MRCD 2019-Prkc Mortgage Trust
-
〃
            -
US$
4,051

    N/A
US$
4,051



Gm Financial Consumer Automobile Receivables Trust 2023-4
-
〃
            -
US$
3,652

    N/A
US$
3,652



Bmw Vehicle Owner Trust 2023-A
-
〃
            -
US$
3,648

    N/A
US$
3,648



Discover Card Execution Note Trust
-
〃
            -
US$
3,549

    N/A
US$
3,549



GM Financial Consumer Automobile Receivables Trust 2023-2
-
〃
            -
US$
3,409

    N/A
US$
3,409



American Express Credit Account Master Trust
-
〃
            -
US$
3,388

    N/A
US$
3,388



Citigroup Commercial Mortgage Trust 2019-Gc43
-
〃
            -
US$
3,319

    N/A
US$
3,319



Msbam 2016-C31
-
〃
            -
US$
3,118

    N/A
US$
3,118



Honda Auto Receivables 2023-4 Owner Trust
-
〃
            -
US$
3,074

    N/A
US$
3,074



Mercedes-Benz Auto Receivables Trust 2024-1
-
〃
            -
US$
3,069

    N/A
US$
3,069



Bank 2019-Bnk22
-
〃
            -
US$
2,964

    N/A
US$
2,964



Five 2023-V1 Mortgage Trust
-
〃
            -
US$
2,906

    N/A
US$
2,906



Commerce 2015-CCRE24 Mortgage Trust
-
〃
            -
US$
2,877

    N/A
US$
2,877



Bmo 2023-C5 Mortgage Trust
-
〃
            -
US$
2,830

    N/A
US$
2,830



Sreit Commercial Mortgage Trust 2021-Mfp
-
〃
            -
US$
2,761

    N/A
US$
2,761



CGCMT 2017-P8 Mortgage Trust
-
〃
            -
US$
2,750

    N/A
US$
2,750



Bank5 2023-5YR1
-
〃
            -
US$
2,723

    N/A
US$
2,723



Mercedes-Benz Auto Receivables Trust 2023-2
-
〃
            -
US$
2,642

    N/A
US$
2,642



Hyundai Auto Receivables Trust 2021-C
-
〃
            -
US$
2,562

    N/A
US$
2,562



Benchmark 2019-B15 Mortgage Trust
-
〃
            -
US$
2,555

    N/A
US$
2,555



Benchmark 2018-B3 Commercial Mortgage Trust
-
〃
            -
US$
2,551

    N/A
US$
2,551



Honda Auto Receivables 2023-1 Owner Trust
-
〃
            -
US$
2,539

    N/A
US$
2,539



Toyota Auto Receivables 2023-C Owner Trust
-
〃
            -
US$
2,534

    N/A
US$
2,534















(Continued)

- 68 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
Gm Financial Consumer Automobile Receivables Trust 2024-1
-
Financial assets at fair value through other comprehensive income
            -
US$
2,503

    N/A
US$
2,503



Ford Credit Auto Owner Trust 2020-Rev1
-
〃
            -
US$
2,473

    N/A
US$
2,473



GS Mortgage Securities Trust 2015-GC32
-
〃
            -
US$
2,423

    N/A
US$
2,423



Hyundai Auto Receivables Trust 2021-B
-
〃
            -
US$
2,413

    N/A
US$
2,413



Citigroup Commercial Mortgage Trust 2016-C1
-
〃
            -
US$
2,356

    N/A
US$
2,356



Toyota Auto Receivables 2024-A Owner Trust
-
〃
            -
US$
2,350

    N/A
US$
2,350



Benchmark 2020-B18 Mortgage Trust
-
〃
            -
US$
2,315

    N/A
US$
2,315



BANK5 2023-5YR4
-
〃
            -
US$
2,314

    N/A
US$
2,314



WFRBS Commercial Mortgage Trust 2014-C25
-
〃
            -
US$
2,263

    N/A
US$
2,263



Citigroup Commercial Mortgage Trust 2015-P1
-
〃
            -
US$
2,227

    N/A
US$
2,227



Wells Fargo Commercial Mortgage Trust 2020-C55
-
〃
            -
US$
2,213

    N/A
US$
2,213



Bmark 2018-B5
-
〃
            -
US$
2,178

    N/A
US$
2,178



Toyota Auto Receivables 2023 D Owner Trust
-
〃
            -
US$
2,154

    N/A
US$
2,154



Ford Credit Auto Owner Trust 2023-C
-
〃
            -
US$
2,147

    N/A
US$
2,147



Ford Credit Auto Owner Trust 2023-A
-
〃
            -
US$
2,007

    N/A
US$
2,007



Benchmark 2018-B4 Mortgage Trust
-
〃
            -
US$
1,979

    N/A
US$
1,979



Dolp Trust 2021-NYC
-
〃
            -
US$
1,973

    N/A
US$
1,973



Ubs 2018-C13
-
〃
            -
US$
1,942

    N/A
US$
1,942



Mhc Commercial Mortgage Trust 2021-Mhc
-
〃
            -
US$
1,913

    N/A
US$
1,913



Bank 2017-Bnk6
-
〃
            -
US$
1,906

    N/A
US$
1,906



Mercedes-Benz Auto Receivables Trust 2023-1
-
〃
            -
US$
1,706

    N/A
US$
1,706



GM Financial Consumer Automobile Receivables Trust 2023-1
-
〃
            -
US$
1,702

    N/A
US$
1,702



Hyundai Auto Receivables Trust 2022-A
-
〃
            -
US$
1,562

    N/A
US$
1,562



Wells Fargo Commercial Mortgage Trust 2015-C30
-
〃
            -
US$
1,548

    N/A
US$
1,548



American Express Credit Account Master Trust , series 2023-1
-
〃
            -
US$
1,520

    N/A
US$
1,520



UBS Commercial Mortgage Trust 2018-C11
-
〃
            -
US$
1,518

    N/A
US$
1,518



COMM 2020-CBM Mortgage Trust
-
〃
            -
US$
1,513

    N/A
US$
1,513



Morgan Stanley Capital I Trust 2021-L5
-
〃
            -
US$
1,437

    N/A
US$
1,437



Wells Fargo Commercial Mortgage Trust 2015-C29
-
〃
            -
US$
1,272

    N/A
US$
1,272



Ford Credit Auto Owner Trust 2022-C
-
〃
            -
US$
1,257

    N/A
US$
1,257



Gs Mortgage Securities Trust 2018-Gs10
-
〃
            -
US$
1,257

    N/A
US$
1,257



Morgan Stanley Capital I Trust
-
〃
            -
US$
1,255

    N/A
US$
1,255



Honda Auto Receivables 2021 - 4 Owner Trust
-
〃
            -
US$
1,222

    N/A
US$
1,222



BANK 2017-BNK5
-
〃
            -
US$
1,158

    N/A
US$
1,158



Citigroup Commercial Mortgage Trust 2015-GC27
-
〃
            -
US$
1,156

    N/A
US$
1,156



FORD CREDIT AUTO OWNER TRUST 2023-REV2
-
〃
            -
US$
1,141

    N/A
US$
1,141



Wells Fargo Commercial Mortgage Trust 2018-C44
-
〃
            -
US$
1,090

    N/A
US$
1,090



JPMBB Commercial Mortgage Securities Trust 2015-C27
-
〃
            -
US$
1,037

    N/A
US$
1,037



Morgan Stanley Capital I Trust 2015 - UBS8
-
〃
            -
US$
984

    N/A
US$
984



Citigroup Commercial Mortgage Trust 2016-C3
-
〃
            -
US$
969

    N/A
US$
969



Wells Fargo Commercial Mortgage Trust 2016-LC24
-
〃
            -
US$
966

    N/A
US$
966



Toyota Auto Receivables 2024-B Owner Trust
-
〃
            -
US$
949

    N/A
US$
949



Hyundai Auto Receivables Trust 2022-B
-
〃
            -
US$
939

    N/A
US$
939



Ford Credit Auto Owner Trust 2022-A
-
〃
            -
US$
912

    N/A
US$
912



Benchmark 2021-B24 Mortgage Trust
-
〃
            -
US$
883

    N/A
US$
883



Bank 2023-Bnk45
-
〃
            -
US$
874

    N/A
US$
874



BBCMS Mortgage Trust 2018-C2
-
〃
            -
US$
872

    N/A
US$
872



Nissan Auto Receivables 2023-A Owner Trust
-
〃
            -
US$
834

    N/A
US$
834



COMM Mortgage Trust Series 2015-LC19
-
〃
            -
US$
795

    N/A
US$
795



DBJPM 2016-C1 Mortgage Trust
-
〃
            -
US$
775

    N/A
US$
775



JPMCC 2017-JP7
-
〃
            -
US$
770

    N/A
US$
770















(Continued)

- 69 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









TSMC Global
Honda Auto Receivables 2022-2 Owner Trust
-
Financial assets at fair value through other comprehensive income

-

US$
744


    N/A

US$
744



Citigroup Commercial Mortgage Trust 2015-GC35
-
〃

-

US$
698


    N/A

US$
698



Wells Fargo Commercial Mortgage Trust 2017-C40
-
〃

-

US$
641


    N/A

US$
641



JPMCC Commercial Mortgage Securities Trust 2016 - JP3
-
〃

-

US$
599


    N/A

US$
599



JPMBB Commercial Mortgage Securities Trust 2016-C1
-
〃

-

US$
591


    N/A

US$
591



Wells Fargo Commercial Mortgage Trust 2015-C28
-
〃

-

US$
527


    N/A

US$
527



JPMDB 2017-C7
-
〃

-

US$
457


    N/A

US$
457



Toyota Auto Receivables 2021-C Owner Trust
-
〃

-

US$
401


    N/A

US$
401



Citigroup Commercial Mortgage Trust 2018-C5
-
〃

-

US$
363


    N/A

US$
363



Toyota Auto Receivables 2021-D Owner Trust
-
〃

-

US$
341


    N/A

US$
341



Gm Financial Consumer Automobile Receivables Trust 2022-3
-
〃

-

US$
268


    N/A

US$
268



Ford Credit Auto Owner Trust 2023-B
-
〃

-

US$
234


    N/A

US$
234



Ford Credit Auto Owner Trust 2022-B
-
〃

-

US$
204


    N/A

US$
204



Porsche Financial Auto Securitization Trust 2023-1
-
〃

-

US$
201


    N/A

US$
201



Nissan Auto Receivables 2022-B Owner Trust
-
〃

-

US$
195


    N/A

US$
195



Wells Fargo Commercial Mortgage Trust 2015-NXS3
-
〃

-

US$
164


    N/A

US$
164



JPMBB Commercial Mortgage Securities Trust 2015-C28
-
〃

-

US$
157


    N/A

US$
157



JPMCC 2015 - JP1
-
〃

-

US$
112


    N/A

US$
112



Morgan Stanley Capital I Trust 2018-H3
-
〃

-

US$
106


    N/A

US$
106



JPMDB Commercial Mortgage Securities Trust 2019-COR6
-
〃

-

US$
16


    N/A

US$
16



COMM 2015-CCRE22 Mortgage Trust
-
〃

-

US$
13


    N/A

US$
13



BBCMS Mortgage Trust 2020-C7
-
〃

-

US$
8


    N/A

US$
8



Non-publicly traded equity investments
















Primavera Capital Fund II L.P.
-
Financial assets at fair value through other comprehensive income

-

US$
71,501


    4

US$
71,501



















VTAF II
Non-publicly traded equity investments
















Aether Systems, Inc.
-
Financial assets at fair value through other comprehensive income

1,085

US$
2


    20

US$
2



5V Technologies, Inc.
-
〃

1


-


    -


-




















Publicly traded stocks
















Sentelic Corporation
-
Financial assets at fair value through other comprehensive income

882

US$
2,354


    3

US$
2,354



















VTAF III
Non-publicly traded equity investments
















Mutual-Pak
-
Financial assets at fair value through other comprehensive income

1,701

US$
337


    17

US$
337



Neoconix, Inc.
-
〃

4,147

US$
174


    -

US$
174



LiquidLeds Lighting Corp.
-
〃

1,952

US$
35


    14

US$
35



















Emerging Fund
Simple Agreement for Future Equity
















Eliyan Corp.
-
Financial assets at fair value through Profit or Loss

-

US$
4,000


    N/A

US$
4,000




















Convertible bonds
















Movandi Corporation
-
Financial assets at fair value through Profit or Loss

-


-


    N/A


-




















Non-publicly traded equity investments
















Lyte AI, Inc.
-
Financial assets at fair value through other comprehensive income

1,325

US$
10,757


    4

US$
10,757



Encharge AI, Inc.
-
〃

445

US$
6,098


    2

US$
6,098



Avicenatech Corp.
-
〃

730

US$
5,894


    2

US$
5,894



















(Continued)

- 70 -


Held Company NameMarketable Securities Type and NameRelationship with the CompanyFinancial Statement AccountSeptember 30, 2024Note
Shares/Units
(In Thousands)
Carrying Value
(Foreign Currencies in Thousands)
Percentage of Ownership (%)
Fair Value
(Foreign Currencies in Thousands)









Emerging Fund
Ayar Labs, Inc.
-
Financial assets at fair value through other comprehensive income

345

US$
5,470


    1

US$
5,470



Cerebras Systems, Inc.
-
〃

341

US$
5,000


    -

US$
5,000



Empower Semiconductor, Inc.
-
〃

868

US$
5,000


    3

US$
5,000



Ethernovia Inc.
-
〃

1,021

US$
5,000


    3

US$
5,000



RiVos, Inc.
-
〃

2,568

US$
5,000


    1

US$
5,000



EdgeQ, Inc.
-
〃

1,176

US$
4,771


    2

US$
4,771



SiMa Technologies, Inc.
-
〃

564

US$
4,000


    1

US$
4,000



Xsight Labs Ltd.
-
〃

500

US$
4,000


    1

US$
4,000



NeuReality Ltd.
-
〃

122

US$
3,991


    2

US$
3,991



xMEMS Labs, Inc.
-
〃

3,000

US$
3,240


    2

US$
3,240



Atlas Magnetics, Co.
-
〃

1,500

US$
3,000


    3

US$
3,000



Ambiq Micro, Inc.
-
〃

3,318

US$
3,000


    1

US$
3,000



Kinara, Inc.
-
〃

2,138

US$
2,980


    2

US$
2,980



Reed Semiconductor Corp.
-
〃

500

US$
2,000


    1

US$
2,000




















Publicly traded stocks
















Astera Labs, Inc.
-
Financial assets at fair value through other comprehensive income

644

US$
33,728


    -

US$
33,728



Raspberry Pi Holdings Plc
-
〃

1,364

US$
7,058


    1

US$
7,058



















TSMC Development
Convertible preferred stocks
















IMS Nanofabrication Global, LLC
-
Financial assets at fair value through Profit or Loss

-

US$
432,795


    10

US$
432,795



















Growth Fund
Non-publicly traded equity investments
















CNEX Labs, Inc.
-
Financial assets at fair value through other comprehensive income

33


-


    -


-




















Publicly traded stocks
















Astera Labs, Inc.
-
Financial assets at fair value through other comprehensive income

262

US$
13,731


    -

US$
13,731



Marvell Technology Group Ltd.
-
〃

11

US$
801


    -

US$
801



















(Concluded)

- 71 -

TABLE 4


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)


Company NameMarketable Securities
Type and Name		Financial Statement AccountCounterpartyNature of Relationship
Beginning Balance
Acquisition
DisposalEnding Balance (Note )
Shares/Units
(In Thousands)
Amount (Foreign
Currencies in
Thousands)
Shares/Units
(In Thousands)
Amount (Foreign
Currencies in
Thousands)
Shares/Units
(In Thousands)
Amount (Foreign
Currencies in
Thousands)
Carrying Value (Foreign
Currencies in
Thousands)
Gain/Loss on Disposal (Foreign
Currencies in
Thousands)
Shares/Units
(In Thousands)
Amount (Foreign
Currencies in
Thousands)















TSMC
Non-publicly traded equity investments



        
            
        
            
        
            
            
            
        
        

TSMC Global
Investments accounted for using equity method
-
-

11

$
441,225,883


8

$
261,677,200


-

$
-

$
-

$
-


19

$
737,933,677


TSMC Arizona
〃
-
-

10,500


298,604,975


5,000


160,056,800


-


-


-


-


15,500


456,201,309


JASM
〃
-
-

2,269


47,087,140


742


15,754,106


-


-


-


-


3,011


61,654,610


ESMC
〃
-
-

100


4,768,013


648


2,002,168


30


1,021


(4,263
)

5,284


718


6,694,782


Emerging Fund
〃
-
-

-


1,901,742


-


1,089,770


-


-


-


-


-


4,107,090





































Commercial paper


































China Steel Corporation
Financial assets at amortized cost
-
-

200


1,985,094


920


9,136,858


350


3,500,000


3,500,000


-


770


7,678,160


Cathay Financial Holding Co., Ltd.
〃
-
-

697


6,924,665


432


4,300,978


697


6,970,000


6,970,000


-


432


4,308,592


Formosa Chemicals & Fibre Corporation
〃
-
-

100


994,540


490


4,874,121


340


3,400,000


3,400,000


-


250


2,492,368


Taiwan Power Company
〃
-
-

50


498,916


245


2,427,071


50


500,000


500,000


-


245


2,446,341


CPC Corporation, Taiwan
〃
-
-

100


995,553


370


3,677,952


250


2,500,000


2,500,000


-


220


2,196,535


Formosa Plastics Corporation
〃
-
-

100


996,260


300


2,981,418


200


2,000,000


2,000,000


-


200


1,993,861


Nan Ya Plastics Corporation
〃
-
-

600


5,976,677


485


4,821,161


900


9,000,000


9,000,000


-


185


1,844,923




































TSMC Partners
Fund


































Carbon Nature SCSp
Financial assets at fair value through Profit or Loss
-
-

-

US$
-


-

US$
12,011


-

US$
-

US$
-

US$
-


-

US$
9,487





































Publicly traded stocks


































ARM Holdings plc
Financial assets at fair value through other comprehensive income
-
-

1,961

US$
147,353


-

US$
-


850

US$
101,535

US$
43,350

US$
58,185


1,111

US$
158,853




































TSMC Global
Corporate bond


































Bank of America Corporation
Financial assets at fair value through other comprehensive income
-
-

-

US$
86,588


-

US$
42,071


-

US$
29,128

US$
29,347

US$
(219
)

-

US$
102,697


Morgan Stanley
〃
-
-

-

US$
76,777


-

US$
34,651


-

US$
24,641

US$
24,610

US$
31


-

US$
89,991


Wells Fargo & Company
〃
-
-

-

US$
58,351


-

US$
35,405


-

US$
12,771

US$
12,898

US$
(127
)

-

US$
83,317


JPMorgan Chase & Co.
〃
-
-

-

US$
62,267


-

US$
33,675


-

US$
15,566

US$
15,703

US$
(137
)

-

US$
82,887


The Goldman Sachs Group, Inc.
〃
-
-

-

US$
58,554


-

US$
30,408


-

US$
16,404

US$
16,469

US$
(65
)

-

US$
75,146


Citigroup Inc.
〃
-
-

-

US$
50,436


-

US$
23,833


-

US$
16,901

US$
16,978

US$
(77
)

-

US$
59,091


HSBC Holdings plc
〃
-
-

-

US$
30,124


-

US$
17,339


-

US$
9,371

US$
9,596

US$
(225
)

-

US$
39,159


BNP Paribas SA
〃
-
-

-

US$
20,345


-

US$
26,435


-

US$
9,376

US$
9,416

US$
(40
)

-

US$
38,615


Principal Life Global Funding II
〃
-
-

-

US$
17,932


-

US$
22,252


-

US$
3,893

US$
3,994

US$
(101
)

-

US$
37,419




































(Continued)

- 72 -


Company NameMarketable Securities
Type and Name		Financial Statement AccountCounterpartyNature of Relationship
Beginning Balance
Acquisition
DisposalEnding Balance (Note )
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)
Carrying Value (Foreign Currencies in Thousands)
Gain/Loss on Disposal (Foreign Currencies in Thousands)
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)















TSMC Global
Sumitomo Mitsui Trust Bank, Limited
Financial assets at fair value through other comprehensive income
-
-
            -
US$
17,286

            -
US$
23,089

            -
US$
4,594

US$
4,650

US$
(56
)
            -
US$
36,782


NatWest Group plc
〃
-
-
            -
US$
6,360

            -
US$
29,473

            -
US$
-

US$
-

US$
-

            -
US$
36,613


Banco Santander, S.A.
〃
-
-
            -
US$
29,015

            -
US$
14,561

            -
US$
8,240

US$
8,308

US$
(68
)
            -
US$
36,174


Nationwide Building Society
〃
-
-
            -
US$
17,760

            -
US$
18,150

            -
US$
981

US$
1,017

US$
(36
)
            -
US$
35,691


Credit Agricole SA London Branch
〃
-
-
            -
US$
20,395

            -
US$
16,321

            -
US$
2,389

US$
2,440

US$
(51
)
            -
US$
35,136


BPCE SA
〃
-
-
            -
US$
23,875

            -
US$
12,832

            -
US$
3,272

US$
3,244

US$
28

            -
US$
34,215


Barclays PLC
〃
-
-
            -
US$
35,277

            -
US$
9,994

            -
US$
12,078

US$
12,036

US$
42

            -
US$
33,769


Lloyds Banking Group plc
〃
-
-
            -
US$
24,131

            -
US$
15,025

            -
US$
9,529

US$
9,483

US$
46

            -
US$
30,488


Hyundai Capital America
〃
-
-
            -
US$
13,567

            -
US$
15,803

            -
US$
-

US$
-

US$
-

            -
US$
30,065


Sumitomo Mitsui Financial Group, Inc.
〃
-
-
            -
US$
45,172

            -
US$
2,412

            -
US$
18,587

US$
18,736

US$
(149
)
            -
US$
29,686


American Express Company
〃
-
-
            -
US$
13,685

            -
US$
17,156

            -
US$
3,505

US$
3,530

US$
(25
)
            -
US$
27,950


Volkswagen Group of America Finance, LLC
〃
-
-
            -
US$
16,251

            -
US$
15,690

            -
US$
6,637

US$
6,623

US$
14

            -
US$
25,924


Athene Global Funding
〃
-
-
            -
US$
20,297

            -
US$
10,811

            -
US$
6,476

US$
6,544

US$
(68
)
            -
US$
25,494


Toyota Motor Credit Corporation
〃
-
-
            -
US$
4,261

            -
US$
24,742

            -
US$
4,915

US$
5,000

US$
(85
)
            -
US$
24,607


Deutsche Bank AG - New York Branch
〃
-
-
            -
US$
10,454

            -
US$
21,424

            -
US$
8,470

US$
8,500

US$
(30
)
            -
US$
24,278


Penske Truck Leasing Co., L.P.
〃
-
-
            -
US$
13,095

            -
US$
10,628

            -
US$
381

US$
399

US$
(18
)
            -
US$
23,943


The Bank of Nova Scotia
〃
-
-
            -
US$
16,474

            -
US$
10,965

            -
US$
4,900

US$
5,038

US$
(138
)
            -
US$
22,925


Banque Fédérative du Crédit Mutuel
〃
-
-
            -
US$
14,439

            -
US$
11,057

            -
US$
3,620

US$
3,592

US$
28

            -
US$
22,198


Glencore Funding LLC
〃
-
-
            -
US$
1,556

            -
US$
19,310

            -
US$
-

US$
-

US$
-

            -
US$
21,501


Bank of Montreal
〃
-
-
            -
US$
11,032

            -
US$
9,984

            -
US$
-

US$
-

US$
-

            -
US$
21,320


General Motors Financial Company, Inc.
〃
-
-
            -
US$
-

            -
US$
20,425

            -
US$
-

US$
-

US$
-

            -
US$
20,925


Bunge Limited Finance Corp.
〃
-
-
            -
US$
-

            -
US$
20,603

            -
US$
-

US$
-

US$
-

            -
US$
20,812


RGA Global Funding
〃
-
-
            -
US$
8,977

            -
US$
10,770

            -
US$
-

US$
-

US$
-

            -
US$
20,555


Macquarie Bank Limited
〃
-
-
            -
US$
8,390

            -
US$
10,818

            -
US$
-

US$
-

US$
-

            -
US$
19,610


Daimler Trucks Finance North America LLC
〃
-
-
            -
US$
7,013

            -
US$
12,021

            -
US$
-

US$
-

US$
-

            -
US$
19,479


Danske Bank A/S
〃
-
-
            -
US$
16,698

            -
US$
11,180

            -
US$
9,748

US$
9,721

US$
27

            -
US$
18,583


Mitsubishi UFJ Financial Group, Inc.
〃
-
-
            -
US$
36,903

            -
US$
3,400

            -
US$
22,941

US$
23,219

US$
(278
)
            -
US$
18,193


Royal Bank of Canada
〃
-
-
            -
US$
25,469

            -
US$
3,930

            -
US$
11,804

US$
11,843

US$
(39
)
            -
US$
18,101


Oracle Corporation
〃
-
-
            -
US$
23,751

            -
US$
4,995

            -
US$
13,078

US$
13,662

US$
(584
)
            -
US$
16,068


U.S. Bancorp.
〃
-
-
            -
US$
16,962

            -
US$
12,369

            -
US$
14,047

US$
14,129

US$
(82
)
            -
US$
15,863


Roper Technologies, Inc.
〃
-
-
            -
US$
9,177

            -
US$
9,457

            -
US$
3,431

US$
3,500

US$
(69
)
            -
US$
15,619


Jackson National Life Global Funding
〃
-
-
            -
US$
3,563

            -
US$
12,386

            -
US$
995

US$
1,025

US$
(30
)
            -
US$
15,419


The Kroger Co.
〃
-
-
            -
US$
-

            -
US$
14,886

            -
US$
-

US$
-

US$
-

            -
US$
15,035


BMW US Capital, LLC
〃
-
-
            -
US$
-

            -
US$
14,699

            -
US$
-

US$
-

US$
-

            -
US$
14,866


Quest Diagnostics Incorporated
〃
-
-
            -
US$
-

            -
US$
14,408

            -
US$
-

US$
-

US$
-

            -
US$
14,634


Santander Holdings USA, Inc.
〃
-
-
            -
US$
-

            -
US$
13,962

            -
US$
-

US$
-

US$
-

            -
US$
14,190


SMBC Aviation Capital Finance DAC
〃
-
-
            -
US$
1,747

            -
US$
11,997

            -
US$
-

US$
-

US$
-

            -
US$
14,183


Amphenol Corporation
〃
-
-
            -
US$
-

            -
US$
12,737

            -
US$
-

US$
-

US$
-

            -
US$
13,191


BAE Systems plc
〃
-
-
            -
US$
-

            -
US$
12,292

            -
US$
-

US$
-

US$
-

            -
US$
12,801




























(Continued)

- 73 -


Company NameMarketable Securities
Type and Name		Financial Statement AccountCounterpartyNature of Relationship
Beginning Balance
Acquisition
DisposalEnding Balance (Note )
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)
Carrying Value (Foreign Currencies in Thousands)
Gain/Loss on Disposal (Foreign Currencies in Thousands)
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)















TSMC Global
Mercedes-Benz Finance North America LLC
Financial assets at fair value through other comprehensive income
-
-
            -
US$
-

            -
US$
15,325

            -
US$
3,574

US$
3,597

US$
(23
)
            -
US$
11,928


Bristol-Myers Squibb Company
〃
-
-
            -
US$
4,604

            -
US$
21,106

            -
US$
14,572

US$
14,275

US$
297

            -
US$
11,926


National Rural Utilities Cooperative Finance Corporation
〃
-
-
            -
US$
1,445

            -
US$
9,899

            -
US$
-

US$
-

US$
-

            -
US$
11,436


Prologis Targeted U.S. Logistics Fund L.P.
〃
-
-
            -
US$
-

            -
US$
10,940

            -
US$
-

US$
-

US$
-

            -
US$
11,356


MassMutual Global Funding II
〃
-
-
            -
US$
506

            -
US$
10,025

            -
US$
-

US$
-

US$
-

            -
US$
11,170


DTE Energy Company
〃
-
-
            -
US$
1,685

            -
US$
10,580

            -
US$
1,712

US$
1,735

US$
(23
)
            -
US$
10,968


Hewlett Packard Enterprise Company
〃
-
-
            -
US$
-

            -
US$
9,989

            -
US$
-

US$
-

US$
-

            -
US$
10,003


American Honda Finance Corporation
〃
-
-
            -
US$
2,087

            -
US$
15,878

            -
US$
8,989

US$
8,918

US$
71

            -
US$
9,134


Keurig Dr Pepper Inc.
〃
-
-
            -
US$
-

            -
US$
11,790

            -
US$
4,980

US$
4,987

US$
(7
)
            -
US$
7,101


Marriott International, Inc.
〃
-
-
            -
US$
271

            -
US$
9,744

            -
US$
4,582

US$
4,488

US$
94

            -
US$
5,687


AbbVie Inc.
〃
-
-
            -
US$
26,895

            -
US$
8,427

            -
US$
30,655

US$
30,962

US$
(307
)
            -
US$
5,028


Fiserv, Inc.
〃
-
-
            -
US$
6,745

            -
US$
6,887

            -
US$
10,634

US$
10,662

US$
(28
)
            -
US$
3,169


CVS Health Corporation
〃
-
-
            -
US$
24,591

            -
US$
-

            -
US$
22,083

US$
21,803

US$
280

            -
US$
2,368


Wells Fargo & Company
Financial assets at amortized cost
-
-
            -
US$
619,830

            -
US$
485,315

            -
US$
15,000

US$
15,000

US$
-

            -
US$
1,100,584


Bank of America Corporation
〃
-
-
            -
US$
799,449

            -
US$
270,251

            -
US$
223,000

US$
222,991

US$
9

            -
US$
854,118


Citigroup Inc.
〃
-
-
            -
US$
271,462

            -
US$
487,398

            -
US$
208,000

US$
207,997

US$
3

            -
US$
553,527


JPMorgan Chase & Co.
〃
-
-
            -
US$
391,868

            -
US$
205,845

            -
US$
121,000

US$
120,999

US$
1

            -
US$
484,448


Morgan Stanley
〃
-
-
            -
US$
566,880

            -
US$
183,053

            -
US$
297,000

US$
296,972

US$
28

            -
US$
459,800


The Goldman Sachs Group, Inc.
〃
-
-
            -
US$
432,811

            -
US$
93,192

            -
US$
168,000

US$
168,000

US$
-

            -
US$
360,560


Goldman Sachs Finance Corp International Ltd
〃
-
-
            -
US$
99,905

            -
US$
210,000

            -
US$
100,000

US$
100,000

US$
-

            -
US$
209,799


BNP Paribas SA
〃
-
-
            -
US$
9,265

            -
US$
32,354

            -
US$
4,000

US$
4,000

US$
-

            -
US$
37,668


Morgan Stanley Bank, N.A.
〃
-
-
            -
US$
-

            -
US$
27,014

            -
US$
-

US$
-

US$
-

            -
US$
27,004


Citigroup Global Markets Holdings Inc.
〃
-
-
            -
US$
99,968

            -
US$
-

            -
US$
100,000

US$
100,000

US$
-

            -
US$
-


Citigroup Global Markets Inc.
〃
-
-
            -
US$
149,951

            -
US$
-

            -
US$
150,000

US$
150,000

US$
-

            -
US$
-

























Agency mortgage-backed securities






















FEDERAL NATIONAL MORTGAGE ASSOCIATION
Financial assets at fair value through other comprehensive income
-
-
            -
US$
658,944

            -
US$
137,177

            -
US$
103,749

US$
104,160

US$
(411
)
            -
US$
710,226


Federal Home Loan Mortgage Corporation
〃
-
-
            -
US$
350,328

            -
US$
107,798

            -
US$
68,771

US$
69,505

US$
(734
)
            -
US$
399,950


Government National Mortgage Association
〃
-
-
            -
US$
225,310

            -
US$
92,222

            -
US$
50,662

US$
50,983

US$
(321
)
            -
US$
271,358

























Government bond/Agency bonds






















United States Department of The Treasury
Financial assets at fair value through other comprehensive income
-
-
            -
US$
718,479

            -
US$
103,857

            -
US$
187,655

US$
190,151

US$
(2,496
)
            -
US$
654,745


United States Department of The Treasury
Financial assets at amortized cost
-
-
            -
US$
88,940

            -
US$
44,399

            -
US$
-

US$
-

US$
-

            -
US$
133,566


Federal Home Loan Mortgage Corporation
〃
-
-
            -
US$
135,000

            -
US$
30,000

            -
US$
165,000

US$
165,000

US$
-

            -
US$
-


Federal Home Loan Banks
〃
-
-
            -
US$
225,000

            -
US$
30,000

            -
US$
255,000

US$
255,000

US$
-

            -
US$
-




























(Continued)

- 74 -

Company NameMarketable Securities
Type and Name		Financial Statement AccountCounterpartyNature of Relationship
Beginning Balance
Acquisition
DisposalEnding Balance (Note )
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)
Carrying Value (Foreign Currencies in Thousands)
Gain/Loss on Disposal (Foreign Currencies in Thousands)
Shares/Units
(In Thousands)
Amount (Foreign Currencies in Thousands)















TSMC Global
Asset-backed securities














G23-182I
Financial assets at fair value through other comprehensive income
-
-
            -
US$
-

            -
US$
10,151

            -
US$
1,637

US$
1,638

US$
(1
)
            -
US$
8,560


JPMBB Commercial Mortgage Securities Trust 2014-C24
〃
-
-
            -
US$
9,818

            -
US$
-

            -
US$
10,000

US$
10,016

US$
(16
)
            -
US$
-





























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

- 75 -

TABLE 5


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

ACQUISITION OF INDIVIDUAL REAL ESTATE PROPERTIES AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)


Company Name
Types of
Property
Transaction Date
Transaction Amount
(Foreign Currencies in Thousands)
Payment TermCounterpartyNature of RelationshipsPrior Transaction of Related CounterpartyPrice ReferencePurpose of Acquisition
Other
Terms
OwnerRelationshipsTransfer DateAmount








TSMC
Real estate
February 06, 2024
(Note)
US$
2,155,000
(Note)
Based on the terms in the purchase order
96 counterparties (Note), including:
-N/AN/AN/AN/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.












(Continued)

- 76 -


Company Name
Types of
Property
Transaction Date
Transaction Amount
(Foreign Currencies in Thousands)
Payment TermCounterpartyNature of RelationshipsPrior Transaction of Related CounterpartyPrice ReferencePurpose of Acquisition
Other
Terms
OwnerRelationshipsTransfer DateAmount








TSMC
Real estate

        

CTCI Smart Engineering Corporation





        

Da-Cin Construction Co., Ltd.





        

Desiccant Technology Co., Ltd.





        

Evergreen Steel Corporation





        

Exyte Taiwan Co., Ltd.





        

Fortune Electric Co., Ltd.





        

Fu Tsu Construction Co., Ltd.





        

Gang-Wei Construction Ltd.





        

Hantech Engineering Co., Ltd.





        

Hsieh Kun Co., Ltd.





        

Hueng Luei Process Industry Co., Ltd.





        

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





        

J.C. Yang Architect and Associates





        

JG Environmental Technology Co., Ltd.





        

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





        

Jusun Instruments Co., Ltd.





        

Kaohsiung City Government





        

Kedge Construction Co., Ltd.





        

Kinetics Technology Corporation





        

L&K Engineering Co., Ltd.





        

Lead-Fu Industrials Corporation





        

Lee Ming Construction Co., Ltd.





        

Li Jin Engineering Co., Ltd.





        

Mandartech Interiors Inc.





        

Marketech Integrated Pte Ltd.





        

Mega Union Technology Incorporated





        

Organo Technology Co., Ltd.





        

Ovivo Taiwan Co., Ltd.





        

Pan Asia (Engineers & Constructors) Corporation










(Continued)

- 77 -


Company Name
Types of
Property
Transaction Date
Transaction Amount
(Foreign Currencies in Thousands)
Payment TermCounterpartyNature of RelationshipsPrior Transaction of Related CounterpartyPrice ReferencePurpose of Acquisition
Other
Terms
OwnerRelationshipsTransfer DateAmount








TSMC
Real estate

        

Ruentex Engineering & Construction Co., Ltd.





        

San Fu Chemical Co., Ltd.





        

Schneider Electric Taiwan Co., Ltd.





        

Shihlin Electric & Engineering Corporation





        

Siemens Limited





        

Solomon Technology Corporation





        

Swift Engineering Co., Ltd.





        

Taiwan Gleno Enterprise Co., Ltd.





        

Taiwan Obayashi Corporation





        

Taiwan Puritic Corp.





        

TASA Construction Corporation





        

Techgo Industrial Co., Ltd.





        

Transcene Corporation





        

Trusval Technology Co., Ltd.





        

Tung Kang Steel Structure Corp.





        

Uangyih-Tech Industrial Co., Ltd.





        

Unelectra International Corp.





        

United Integrated Services Co., Ltd.





        

Versum Materials Taiwan Co., Ltd.





        

Wei Shung Technology Corporation





        

Weltall Technology Corporation





        

Wholetech System Hitech Limited





        

Yangtech Engineering Co., Ltd.





        

Yankey Engineering Co., Ltd.





        

Ying Pao Technology Inc.





        

YUNG CHING CONSTRUCTION CO., LTD.





        

Zhao-Cheng Corp.










(Continued)

- 78 -


Company Name
Types of
Property
Transaction Date
Transaction Amount
(Foreign Currencies in Thousands)
Payment TermCounterpartyNature of RelationshipsPrior Transaction of Related CounterpartyPrice ReferencePurpose of Acquisition
Other
Terms
OwnerRelationshipsTransfer DateAmount








TSMC
Real estate
June 05, 2024
(Note)
US$
11,014,000
(Note)


Based on the terms in the purchase order
182 counterparties (Note), including:
-N/AN/AN/AN/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.












(Continued)

- 79 -


Company Name
Types of
Property
Transaction Date
Transaction Amount
(Foreign Currencies in Thousands)
Payment TermCounterpartyNature of RelationshipsPrior Transaction of Related CounterpartyPrice ReferencePurpose of Acquisition
Other
Terms
OwnerRelationshipsTransfer DateAmount








TSMC
Real estate

        

EnerMech Mechanical Services, Inc.





        

Evergreen Steel Corporation





        

Exyte Taiwan Co., Ltd.





        

Fortune Electric Co., Ltd.





        

Fu Tsu Construction Co., Ltd.





        

GCON, Inc.





        

Gold Stone Development Co., Ltd.





        

Hantech Engineering Co., Ltd.





        

Hsieh Kun Co., Ltd.





        

Hueng Luei Process Industry Co., Ltd.





        

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





        

J.C. Yang Architect and Associates





        

Jack B. Henderson Construction Company, Inc.





        

Jaie Haour Industry Corporation





        

JG Environmental Technology Co., Ltd.





        

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





        

Job Brokers, Inc.





        

Johnson Controls, Inc.





        

Jusun Instruments Co., Ltd.





        

Kedge Construction Co., Ltd.





        

Kinetic Systems, Inc.





        

Kinetics Technology Corporation





        

L&K Engineering Co., Ltd.





        

Lead-Fu Industrials Corporation





        

Lee Ming Construction Co., Ltd.





        

Li Jin Engineering Co., Ltd.





        

Lumax International Corp., Ltd.





        

Mandartech Interiors Inc.










(Continued)

- 80 -


Company Name
Types of
Property
Transaction Date
Transaction Amount
(Foreign Currencies in Thousands)
Payment TermCounterpartyNature of RelationshipsPrior Transaction of Related CounterpartyPrice ReferencePurpose of Acquisition
Other
Terms
OwnerRelationshipsTransfer DateAmount








TSMC
Real estate

        

Marketech Integrated Pte Ltd.





        

Mega Union Technology Incorporated





        

MornstAir Inc.





        

MSR-FSR, LLC





        

OBR Cooling Towers, Inc.





        

Okland Construction Company, Inc.





        

Organo Technology Co., Ltd.





        

Ovivo Taiwan Co., Ltd.





        

Pan Asia (Engineers & Constructors) Corporation





        

Prime Controls LP





        

Propersys Corp





        

Rosendin Electric, Inc.





        

Ruentex Engineering & Construction Co., Ltd.





        

San Fu Chemical Co., Ltd.





        

Schneider Electric Taiwan Co., Ltd.





        

Shihlin Electric & Engineering Corporation





        

Siemens Limited





        

Solomon Technology Corporation





        

Southland Industries





        

SSOE Inc.





        

Swift Engineering Co., Ltd.





        

T C Boiler Inc.





        

Taiwan Gleno Enterprise Co., Ltd.





        

Taiwan Obayashi Corporation





        

Taiwan Puritic Corp.





        

Taiwan Valqua Engineering International, Ltd.





        

TASA Construction Corporation





        

Techgo Industrial Co., Ltd.





        

Trusval Technology Co., Ltd.





        

TUN YI Industrial Co., Ltd.





        

Tung Kang Steel Structure Corp.





        

Uangyih-Tech Industrial Co., Ltd.










(Continued)

- 81 -


Company Name
Types of
Property
Transaction Date
Transaction Amount
(Foreign Currencies in Thousands)
Payment TermCounterpartyNature of RelationshipsPrior Transaction of Related CounterpartyPrice ReferencePurpose of Acquisition
Other
Terms
OwnerRelationshipsTransfer DateAmount








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
(Note)
US$
8,320,000
(Note)
Based on the terms in the purchase order
91 counterparties (Note), including:
-N/AN/AN/AN/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.












(Continued)

- 82 -


Company Name
Types of
Property
Transaction Date
Transaction Amount
(Foreign Currencies in Thousands)
Payment TermCounterpartyNature of RelationshipsPrior Transaction of Related CounterpartyPrice ReferencePurpose of Acquisition
Other
Terms
OwnerRelationshipsTransfer DateAmount








TSMC
Real estate

        

Chern Shuo System Technology Co., Ltd.





        

China Steel Structure Co., Ltd.





        

Chun Yuan Steel Industry Co., Ltd.





        

Cica-Huntek Chemical Technology Taiwan Co., Ltd.





        

Confederate Technology Co., Ltd.





        

Da-Cin Construction Co., Ltd.





        

Desiccant Technology Co., Ltd.





        

Evergreen Steel Corporation





        

Exyte Taiwan Co., Ltd.





        

Fortune Electric Co., Ltd.





        

Fu Tsu Construction Co., Ltd.





        

Gang-Wei Construction Ltd.





        

Hantech Engineering Co., Ltd.





        

Hsieh Kun Co., Ltd.







Hueng Luei Process Industry Co., Ltd.







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







Jaie Haour Industry Corporation







JG Environmental Technology Co., Ltd.







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







JJP Architects and Planners







Jusun Instruments Co., Ltd.







Kedge Construction Co., Ltd.







Kinetics Technology Corporation







L&K Engineering Co., Ltd.







Lee Ming Construction Co., Ltd.







Mandartech Interiors Inc.







Marketech International Corp.










(Continued)

- 83 -


Company Name
Types of
Property
Transaction Date
Transaction Amount
(Foreign Currencies in Thousands)
Payment TermCounterpartyNature of RelationshipsPrior Transaction of Related CounterpartyPrice ReferencePurpose of Acquisition
Other
Terms
OwnerRelationshipsTransfer DateAmount








TSMC
Real estate



Mega Union Technology Incorporated





        

Organo Technology Co., Ltd.





        

Ovivo Taiwan Co., Ltd.





        

REIJU Construction Co., Ltd.





        

San Fu Chemical Co., Ltd.





        

Schneider Electric Taiwan Co., Ltd.





        

Shihlin Electric & Engineering Corporation





        

Siemens Limited





        

Solomon Technology Corporation





        

Southern Taiwan Science Park Bureau, National Science and Technology Council





        

Swift Engineering Co., Ltd.





        

Taiwan Gleno Enterprise Co., Ltd.





        

TAIWAN POWER COMPANY





        

Taiwan Puritic Corp.





        

TASA Construction Corporation







Techgo Industrial Co., Ltd.







Tianding construction industry Co., Ltd.







Trusval Technology Co., Ltd.







Tung Kang Steel Structure Corp.







Uangyih-Tech Industrial Co., Ltd.







Unelectra International Corp.







United Integrated Services Co., Ltd.







Versum Materials Taiwan Co., Ltd.







Wei Shung Technology Corporation







Weltall Technology Corporation







Wholetech System Hitech Limited










(Continued)

- 84 -


Company Name
Types of
Property
Transaction Date
Transaction Amount
(Foreign Currencies in Thousands)
Payment TermCounterpartyNature of RelationshipsPrior Transaction of Related CounterpartyPrice ReferencePurpose of Acquisition
Other
Terms
OwnerRelationshipsTransfer DateAmount








TSMC
Real estate



Yangtech Engineering Co., Ltd.







Yankey Engineering Co., Ltd.







Ying Pao Technology Inc.





        

Yuan Yi Construction Co., Ltd.





        

Yuanshuo Archi & Construction COMPANY LIMITED





        

YUNG CHING CONSTRUCTION CO., LTD.





        

Zhao-Cheng Corp.











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

- 85 -

TABLE 6


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)


Company NameRelated PartyNature of RelationshipsTransaction DetailsAbnormal TransactionNotes/Accounts Payable or ReceivableNote
Purchases/
Sales
Amount
(Foreign Currencies in Thousands)
% to TotalPayment TermsUnit PricePayment Terms
Ending Balance
(Foreign Currencies in Thousands)
% to Total








TSMC
TSMC North America
Subsidiary
Sales
$
1,402,325,384


70

Net 30 days from invoice date (Note)
--
$
187,845,310


81


TSMC Arizona
Subsidiary
Sales

989,652


-

Net 30 days from the end of the month of when invoice is issued
--

-


-


JASM
Subsidiary
Sales

359,588


-

Net 30 days from the end of the month of when invoice is issued
--

-


-


GUC
Associate
Sales

5,085,620


-

Net 30 days from invoice date
--

137,550


-


VIS
Associate
Sales

158,688


-

Net 30 days from the end of the month of when invoice is issued
--

-


-


TSMC Nanjing
Subsidiary
Purchases

55,871,369


39

Net 30 days from the end of the month of when invoice is issued
--

(4,467,518
)

3


TSMC China
Subsidiary
Purchases

20,018,244


14

Net 30 days from the end of the month of when invoice is issued
--

(2,326,167
)

2


TSMC Washington
Indirect subsidiary
Purchases

4,064,032


3

Net 30 days from the end of the month of when invoice is issued
--

(426,121
)

-


SSMC
Associate
Purchases

3,009,228


2

Net 30 days from the end of the month of when invoice is issued
--

(393,729
)

-


VIS
Associate
Purchases

536,630


-

Net 30 days from the end of the month of when invoice is issued
--

(60,376
)

-

















TSMC North America
GUC
Associate of TSMC
Sales

(US$
5,639,697
176,174

)

-

Net 30 days from invoice date
--

(US$
121,891
3,853

)

-

















VisEra Tech
Xintec
Associate of TSMC
Sales

509,265


7

Net 60 days from the end of the month of when invoice is issued
--

143,938


12


















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

- 86 -

TABLE 7


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
SEPTEMBER 30, 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)


Company NameRelated PartyNature of Relationships
Ending Balance
(Foreign Currencies in Thousands)
Turnover Days (Note 1)OverdueAmounts Received in Subsequent Period
Allowance for
Bad Debts
AmountAction Taken








TSMC
TSMC North America
Subsidiary
$
192,350,551


33

$
-

-
$
-

$
-


GUC
Associate

137,550


16


-

-

-


-



















TSMC North America
TSMC
Parent company

(US$
122,093
3,859

)

Note 2


-

-

-


-


GUC
Associate of TSMC

(US$
121,891
3,853

)

4


-

-

-


-



















TSMC Japan 3DIC R&D Center
TSMC
Parent company

(JPY
123,731
556,843

)

Note 2


-

-

-


-



















TSMC China
TSMC
Parent company

2,326,167


32


-

-

-


-




(RMB
515,730
)













TSMC Nanjing
The same parent company

36,181,603


Note 2


-

-

-


-




(RMB
8,021,817
)






























TSMC Nanjing
TSMC
Parent company

4,467,518


23


-

-

-


-




(RMB
990,485
)






























VisEra Tech
Xintec
Associate of TSMC

143,938


68


-

-

-


-



















TSMC Arizona Corporation
TSMC
Parent company

(US$
56,949,180
1,800,025

)

Note 2


-

-

-


-



















TSMC Technology
TSMC
The ultimate parent of the Company

(US$
712,398
22,517

)

Note 2


-

-

-


-



















TSMC Development
TSMC Washington
Subsidiary

(US$
551,402
17,428

)

Note 2


-

-

-


-



















TSMC Washington
TSMC
The ultimate parent of the Company

(US$
426,121
13,468

)

22


-

-

-


-




















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

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

- 87 -

TABLE 8


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
(Amounts in Thousands of New Taiwan Dollars)


No.Company NameCounterparty
Nature of Relationship
(Note 1)
Intercompany Transactions
Financial Statements ItemAmount
Terms
(Note 2)
Percentage of Consolidated Net Revenue or Total Assets
0
TSMC
TSMC North America
1
Net revenue from sale of goods
$
1,402,325,384

-

69%



Receivables from related parties

187,845,310

-

3%



Other receivables from related parties

4,505,241

-

-



Accrued expenses and other current liabilities

172,469,488

-

3%



Other noncurrent liabilities

54,926,487

-

1%


TSMC China
1
Purchases

20,018,244

-

1%


TSMC Nanjing
1
Purchases

55,871,369

-

3%



Payables to related parties

4,467,518

-

-


TSMC Technology
1
Research and development expenses

3,641,919

-

-


TSMC Washington
1
Purchases

4,064,032

-

-

1
TSMC China
TSMC Nanjing
3
Other receivables from related parties

36,181,603

-

1%











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

No. 3 represents the transactions between subsidiaries.

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

- 88 -

TABLE 9


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN MAINLAND CHINA)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)


Investor CompanyInvestee CompanyLocationMain Businesses and Products
Original Investment Amount
Balance as of September 30, 2024
Net Income (Losses) of the Investee
(Foreign Currencies in Thousands)
Share of Profits/Losses
of Investee
(Note 1)
(Foreign Currencies in Thousands)
Note
September 30, 2024
(Foreign Currencies in Thousands)
December 31,
2023
(Foreign Currencies in Thousands)
Shares (In Thousands)Percentage of Ownership
Carrying Value
(Foreign Currencies in Thousands)












TSMC
TSMC Global
Tortola, British Virgin Islands
Investment activities
$
616,839,509

$
355,162,309


19


    100

$
737,933,677

$
26,305,867

$
26,305,867

Subsidiary

TSMC Arizona
Phoenix, Arizona, U.S.A.
Manufacturing, sales and testing of integrated circuits and other semiconductor devices

489,722,110


329,665,310


15,500


    100


456,201,309


(9,318,835
)

(9,318,835
)
Subsidiary

TSMC Partners
Tortola, British Virgin Islands
Investing in companies involved in the semiconductor design and manufacturing, and other investment activities

31,456,130


31,456,130


988,268


    100


74,200,714


906,661


906,661

Subsidiary

JASM
Kumamoto, Japan
Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices

68,384,148


52,630,042


3,011


    73


61,654,610


(3,188,226
)

(2,276,700
)
Subsidiary

VIS
Hsin-Chu, Taiwan
Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks

10,180,677


10,180,677


464,223


    28


13,105,023


5,199,773


1,469,192

Associate

VisEra Tech
Hsin-Chu, Taiwan
Research, design, development, manufacturing, sales, packaging and test of color filter

4,224,082


4,224,082


213,619


    67


11,834,032


1,181,725


796,315

Subsidiary

SSMC
Singapore
Manufacturing and sales of integrated circuits and other semiconductor devices

5,120,028


5,120,028


314


    39


10,713,507


1,849,649


717,479

Associate

TSMC North America
San Jose, California, U.S.A.
Sales and marketing of integrated circuits and other semiconductor devices

333,718


333,718


11,000


    100


7,230,009


778,203


778,203

Subsidiary

ESMC
Dresden, Germany
Manufacturing, sales and testing of integrated circuits and other semiconductor devices

6,815,453


4,814,293


718


    70


6,694,782


(329,737
)

(230,816
)
Subsidiary

Emerging Fund
Cayman Islands
Investing in technology start-up companies

2,756,355


1,666,585


-


    99.9


4,107,090


(22,654
)

(22,631
)
Subsidiary

Xintec
Taoyuan, Taiwan
Wafer level chip size packaging and wafer level post passivation interconnection service

1,988,317


1,988,317


111,282


    41


4,028,681


1,212,382


497,189

Associate

GUC
Hsin-Chu, Taiwan
Researching, developing, manufacturing, testing and marketing of integrated circuits

386,568


386,568


46,688


    35


3,120,705


2,603,691


907,099

Associate

TSMC 3DIC
Yokohama, Japan
Engineering support activities

1,144,356


1,144,356


49


    100


1,395,714


148,105


148,105

Subsidiary

TSMC Europe
Amsterdam, the Netherlands
Customer service and supporting activities

15,749


15,749


-


    100


645,254


30,790


30,790

Subsidiary

VTAF III
Cayman Islands
Investing in technology start-up companies

1,242,679


1,242,679


-


    98


630,039


(2,307
)

(2,260
)
Subsidiary

TSMC JDC
Yokohama, Japan
Engineering support activities

410,680


410,680


15


    100


428,720


27,822


27,822

Subsidiary

TSMC Japan
Yokohama, Japan
Customer service and supporting activities

83,760


83,760


6


    100


145,842


12,924


12,924

Subsidiary

VTAF II
Cayman Islands
Investing in technology start-up companies

260,300


260,300


-


    98


112,748


70


69

Subsidiary

TSMC Korea
Seoul, Korea
Customer service and supporting activities

13,656


13,656


80


    100


47,418


1,842


1,842

Subsidiary


























TSMC Partners
TSMC Development
Delaware, U.S.A.
Investing in companies involved in semiconductor manufacturing
$
(US$
18,569,570
586,939
$
)
$
(US$
18,569,570
586,939
$
)

-


    100

$
(US$
38,501,631
1,216,943
$
)
$
(US$
(440,092
(13,806
)
))

Note 2

Subsidiary

TSMC Technology
Delaware, U.S.A.
Engineering support activities

451,855


451,855


-


    100


1,395,372


239,040


Note 2

Subsidiary




(US$
14,282
)
(US$
14,282
)






(US$
44,104
)
(US$
7,466
)





TSMC Canada
Ontario, Canada
Engineering support activities

72,767


72,767


2,300


    100


425,944


43,768


Note 2

Subsidiary




(US$
2,300
)
(US$
2,300
)






(US$
13,463
)
(US$
1,369
)






























VTAF III
Growth Fund
Cayman Islands
Investing in technology start-up companies

72,624


72,624


-


    100


593,453


(660
)

Note 2

Subsidiary




(US$
2,295
)
(US$
2,295
)






(US$
18,758
)
(US$
(20
))






























TSMC Development
TSMC Washington
Washington, U.S.A.
Manufacturing, sales and testing of integrated circuits and other semiconductor devices

-


-


293,637


    100

$
(US$
5,068,119
160,191
$
)
$
(US$
(939,236
(29,395
)
))

Note 2

Subsidiary



























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

Note 2:    The share of profits/losses of the investee company is not reflected herein as such amount is already included in the share of profits/losses of the investor company.

- 89 -

TABLE 10


Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INFORMATION ON INVESTMENT IN MAINLAND CHINA
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)


Investee CompanyMain Businesses and Products
Total Amount of Paid-in Capital
(RMB in Thousands)
Method of Investment
Accumulated Outflow of Investment from Taiwan as of January 1, 2024
(US$ in Thousands)
Investment Flows
Accumulated Outflow of Investment from Taiwan as of
September 30, 2024 (US$ in Thousands)
Net Income (Losses) of the Investee CompanyPercentage of OwnershipShare of Profits/Losses
Carrying Amount
as of
Balance as of September 30, 2024
Accumulated Inward Remittance of Earnings as of
September 30, 2024
Outflow
(US$ in Thousands)
Inflow












TSMC China
Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices
$
(RMB
18,939,667
4,502,080
$
)
(Note 1)
$
(US$
18,939,667
596,000

)
$
-

$
-

$
(US$
18,939,667
596,000

)
$
8,451,304

    100%
$
8,518,183
(Note 2)

$
107,924,536

$
-

TSMC Nanjing
Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices

(RMB
30,521,412
6,650,119

)
(Note 1)

(US$
30,521,412
1,000,000

)

-


-


(US$
30,521,412
1,000,000

)

21,927,027

    100%

21,932,741
(Note 2)


113,358,614


-

































Accumulated Investment in Mainland China
as of September 30, 2024
(US$ in Thousands)
Investment Amounts Authorized by
Investment Commission, MOEA
(US$ in Thousands)
Upper Limit on Investment



$    49,461,079
(US$    1,596,000)
$    119,412,667
(US$    3,596,000)
$    2,413,153,375
(Note 3)




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

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

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

- 90 -

TABLE 11


Taiwan Semiconductor Manufacturing Company Limited

INFORMATION ON MAJOR SHAREHOLDERS
SEPTEMBER 30, 2024


Shareholders (Note 1)Shares
Total Shares OwnedOwnership Percentage (Note 2)



ADR-Taiwan Semiconductor Manufacturing Company Ltd.
5,314,095,558
20.49%
National Development Fund, Executive Yuan
1,653,709,980
 6.38%




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

Note 2:    The calculation of ownership percentage is rounded to two decimal places.
- 91 -