EX-99.1 2 tsmc2024q4consolidatedfina.htm EX-99.1

English Translation of Financial Statements Originally Issued in Chinese

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

Consolidated Financial Statements for the

Years Ended December 31, 2024 and 2023 and

Independent Auditors’ Report

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REPRESENTATION LETTER

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

Very truly yours,

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED By

C.C. Wei

Chairman

February 12, 2025

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勤業眾信

勤業眾信聯合會計師事務所

110016 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110016, Taiwan

Tel :+886 (2) 2725-9988

Fax:+886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders

Taiwan Semiconductor Manufacturing Company Limited

Opinion

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

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

Basis for Opinion

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

Key Audit Matters

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

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

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

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

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

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

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

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

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

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

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

b.    Observed the assets and evaluated their status.

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

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

Other Matter

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

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

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

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

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

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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

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

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

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

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

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

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

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

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

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

Deloitte & Touche

Taipei, Taiwan

Republic of China

February 12, 2025

Notice to Readers

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

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

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

						December 31, 2024																											December 31, 2023
ASSETS						Amount															%												Amount															%
CURRENT ASSETS
Cash and cash equivalents (Note 6)						$						2,127,627,043												32									$						1,465,427,753												26
Financial assets at fair value through profit or loss (Note 7)									207,700															-												924,636															-
Financial assets at fair value through other comprehensive income (Note 8)									192,202,657															3												154,530,830															3
Financial assets at amortized cost (Note 9)									101,971,322															1												66,761,221															1
Hedging financial assets (Note 10)									10,959															-												-															-
Notes and accounts receivable, net (Note 11)									270,683,235															4												201,313,914															4
Receivables from related parties (Note 33)									1,404,473															-												624,451															-
Other receivables from related parties (Note 33)									251															-												71,871															-
Inventories (Notes 5 and 12)									287,868,810															4												250,997,088															5
Other financial assets (Notes 29, 30 and 34)									63,138,316															1												27,158,766															1
Other current assets									43,237,354															1												26,222,380															-
Total current assets									3,088,352,120															46												2,194,032,910															40
NONCURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7)									15,199,842															-												13,417,457															-
Financial assets at fair value through other comprehensive income (Note 8)									7,822,884															-												7,208,655															-
Financial assets at amortized cost (Note 9)									88,596,542															1												79,199,367															2
Investments accounted for using equity method (Note 13)									37,421,105															1												29,616,638															1
Property, plant and equipment (Notes 5, 14 and 29)									3,234,980,070															48												3,064,474,984															55
Right-of-use assets (Notes 5 and 15)									40,128,391															1												40,424,830															1
Intangible assets (Notes 5 and 16)									26,282,520															1												22,766,744															-
Deferred income tax assets (Notes 5 and 25)									65,943,300															1												64,175,787															1
Refundable deposits									5,495,862															-												7,044,420															-
Other noncurrent assets (Notes 29 and 30)									81,715,364															1												10,009,423															-
Total noncurrent assets									3,603,585,880															54												3,338,338,305															60
TOTAL						$						6,691,938,000												100									$						5,532,371,215												100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Financial liabilities at fair value through profit or loss (Note 7)						$						466,539												-									$						121,412												-
Hedging financial liabilities (Notes 10 and 30)									-															-												27,334,164															-
Accounts payable									72,800,558															1												55,726,757															1
Payables to related parties (Note 33)									1,426,001															-												1,566,300															-
Salary and bonus payable									47,451,509															1												33,200,563															1
Accrued profit sharing bonus to employees and compensation to directors (Note 28)									70,871,150															1												50,716,944															1
Payables to contractors and equipment suppliers									192,635,173															3												171,484,616															3
Cash dividends payable (Note 20)									220,418,821															3												168,558,461															3
Income tax payable (Notes 5 and 25)									147,438,423															2												98,912,902															2
Long-term liabilities - current portion (Notes 17, 18 and 30)									59,857,879															1												9,293,266															-
Accrued expenses and other current liabilities (Notes 5, 15, 21 and 30)									451,158,911															7												296,667,931															5
Total current liabilities									1,264,524,964															19												913,583,316															16
NONCURRENT LIABILITIES
Bonds payable (Notes 17 and 30)									926,604,506															14												913,899,843															17
Long-term bank loans (Notes 18 and 30)									31,824,386															-												4,382,965															-
Deferred income tax liabilities (Notes 5 and 25)									3,988,482															-												53,856															-
Lease liabilities (Notes 5, 15 and 30)									28,755,342															-												28,681,835															1
Net defined benefit liability (Note 19)									7,580,657															-												9,257,224															-
Guarantee deposits									845,581															-												923,164															-
Others (Note 21)									104,238,217															2												178,326,165															3
Total noncurrent liabilities									1,103,837,171															16												1,135,525,052															21
Total liabilities									2,368,362,135															35												2,049,108,368															37
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
Capital stock (Note 20)									259,327,332															4												259,320,710															5
Capital surplus (Notes 20 and 27)									73,260,765															2												69,876,381															1
Retained earnings (Note 20)
Appropriated as legal capital reserve									311,146,899															4												311,146,899															6
Unappropriated earnings									3,606,105,124															54												2,846,883,893															51
									3,917,252,023															58												3,158,030,792															57
Others (Notes 20 and 27)									38,705,047															-												(28,314,256						)									-
Equity attributable to shareholders of the parent									4,288,545,167															64												3,458,913,627															63
NON - CONTROLLING INTERESTS									35,030,698															1												24,349,220															-
Total equity									4,323,575,865															65												3,483,262,847															63
TOTAL						$						6,691,938,000												100									$						5,532,371,215												100

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

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

						2024																											2023
						Amount															%												Amount															%
NET REVENUE (Notes 5, 21, 33 and 39)						$						2,894,307,699												100									$						2,161,735,841												100
COST OF REVENUE (Notes 5, 12, 28, 33 and 36)									1,269,954,135															44												986,625,213															46
GROSS PROFIT									1,624,353,564															56												1,175,110,628															54
OPERATING EXPENSES (Notes 5, 28 and 33)
Research and development									204,181,823															7												182,370,170															8
General and administrative									83,744,968															3												60,872,841															3
Marketing									13,143,524															-												10,590,705															-
Total operating expenses									301,070,315															10												253,833,716															11
OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14, 28 and 36)									(1,230,199						)									-												188,694															-
INCOME FROM OPERATIONS (Note 39)									1,322,053,050															46												921,465,606															43
NON-OPERATING INCOME AND EXPENSES
Share of profits of associates									4,879,367															-												4,655,098															-
Interest income (Note 22)									87,213,399															3												60,293,901															3
Other income									566,879															-												479,984															-
Foreign exchange gain (loss), net (Note 37)									10,000,653															-												(2,685,484						)									-
Finance costs (Note 23)									(10,495,320						)									-												(11,999,360						)									(1			)
Other gains and losses, net (Note 24)									(8,379,393						)									-												6,961,579															-
Total non-operating income and expenses									83,785,585															3												57,705,718															2
INCOME BEFORE INCOME TAX									1,405,838,635															49												979,171,324															45
INCOME TAX EXPENSE (Notes 5 and 25)									233,406,876															8												141,403,807															6
NET INCOME									1,172,431,759															41												837,767,517															39
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 5, 19, 20 and 25)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit obligation									144,365															-												(623,356						)									-
Unrealized gain on investments in equity instruments at fair value through other comprehensive income									5,091,916															-												1,954,563															-
Gain on hedging instruments									5,041															-												39,898															-
Share of other comprehensive income (loss) of associates									(69,435						)									-												42,554															-
Income tax benefit (expense) related to items that will not be reclassified subsequently									(38,869						)									-												124,646															-
									5,133,018															-												1,538,305															-

(Continued)

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

						2024																											2023
						Amount															%												Amount															%
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations						$						64,299,685												2									$						(14,464,353			)									(1			)
Unrealized gain on investments in debt instruments at fair value through other comprehensive income									1,949,865															-												4,123,201															-
Loss on hedging instruments									(80,198						)									-												(74,735						)									-
Share of other comprehensive income of associates									283,276															-												63,938															-
									66,452,628															2												(10,351,949						)									(1			)
Other comprehensive income (loss), net of income tax									71,585,646															2												(8,813,644						)									(1			)
TOTAL COMPREHENSIVE INCOME						$						1,244,017,405												43									$						828,953,873												38
NET INCOME ATTRIBUTABLE TO:
Shareholders of the parent						$						1,173,267,703												41									$						838,497,664												39
Non-controlling interests									(835,944						)									-												(730,147						)									-
						$						1,172,431,759												41									$						837,767,517												39
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Shareholders of the parent						$						1,245,836,616												43									$						830,509,542												38
Non-controlling interests									(1,819,211						)									-												(1,555,669						)									-
						$						1,244,017,405												43									$						828,953,873												38
EARNINGS PER SHARE (NT$, Note 26)
Basic earnings per share						$						45.25																					$						32.34
Diluted earnings per share						$						45.25																					$						32.34

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

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

						Equity Attributable to Shareholders of the Parent
																																																																								Others
																																																																																	Unrealized
																																																																																	Gain (Loss) on
																																																																																	Financial
																																																																																	Assets at Fair
																																																																								Foreign									Value Through																		Unearned
						Capital Stock - Common Stock																														Retained Earnings																																				Currency									Other									Gain (Loss) on									Stock-Based
						Shares																														Legal Capital									Special Capital									Unappropriated																		Translation									Comprehensive									Hedging									Employee																		Treasury																		Non-controlling									Total
						(In Thousands)												Amount									Capital Surplus									Reserve									Reserve									Earnings									Total									Reserve									Income									Instruments									Compensation									Total									Stock									Total									Interests									Equity
BALANCE, JANUARY 1, 2023									25,930,380									$			259,303,805						$			69,330,328						$			311,146,899						$			3,154,310						$			2,323,223,479						$			2,637,524,688						$			(11,743,301			)			$			(10,056,353			)			$			1,479,181						$			(185,153			)			$			(20,505,626			)			$			-						$			2,945,653,195						$			14,835,672						$			2,960,488,867
Appropriations of earnings
Special capital reserve									-												-									-									-									(3,154,310			)						3,154,310									-									-									-									-									-									-									-									-									-									-
Cash dividends to shareholders									-												-									-									-									-									(317,663,220			)						(317,663,220			)						-									-									-									-									-									-									(317,663,220			)						-									(317,663,220			)
Total									-												-									-									-									(3,154,310			)						(314,508,910			)						(317,663,220			)						-									-									-									-									-									-									(317,663,220			)						-									(317,663,220			)
Net income									-												-									-									-									-									838,497,664									838,497,664									-									-									-									-									-									-									838,497,664									(730,147			)						837,767,517
Other comprehensive income (loss), net of income tax									-												-									-									-									-									(484,898			)						(484,898			)						(13,573,468			)						6,108,369									(38,125			)						-									(7,503,224			)						-									(7,988,122			)						(825,522			)						(8,813,644			)
Total comprehensive income (loss)									-												-									-									-									-									838,012,766									838,012,766									(13,573,468			)						6,108,369									(38,125			)						-									(7,503,224			)						-									830,509,542									(1,555,669			)						828,953,873
Disposal of investments accounted for using equity method									-												-									(18,112			)						-									-									-									-									-									-									-									-									-									-									(18,112			)						(370			)						(18,482			)
Employee restricted shares retired									(419			)									(4,195			)						4,195									-									-									4,614									4,614									-									-									-									-									-									-									4,614									-									4,614
Share-based payment arrangements									2,110												21,100									564,868									-									-									-									-									-									-									-									(108,281			)						(108,281			)						-									477,687									-									477,687
Disposal of investments in equity instruments at fair value through other comprehensive income									-												-									-									-									-									151,944									151,944									-									(151,944			)						-									-									(151,944			)						-									-									-									-
Basis adjustment for loss on hedging instruments									-												-									-									-									-									-									-									-									-									(45,181			)						-									(45,181			)						-									(45,181			)						-									(45,181			)
Adjustments to share of changes in equities of associates									-												-									(43			)						-									-									-									-									-									-									-									-									-									-									(43			)						-									(43			)
From share of changes in equities of subsidiaries									-												-									(21,268			)						-									-									-									-									-									-									-									-									-									-									(21,268			)						11,265,933									11,244,665
Donation from shareholders									-												-									16,413									-									-									-									-									-									-									-									-									-									-									16,413									35									16,448
Decrease in non-controlling interests									-												-									-									-									-									-									-									-									-									-									-									-									-									-									(196,381			)						(196,381			)
BALANCE, DECEMBER 31, 2023									25,932,071												259,320,710									69,876,381									311,146,899									-									2,846,883,893									3,158,030,792									(25,316,769			)						(4,099,928			)						1,395,875									(293,434			)						(28,314,256			)						-									3,458,913,627									24,349,220									3,483,262,847
Appropriations of earnings
Cash dividends to shareholders									-												-									-									-									-									(414,915,586			)						(414,915,586			)						-									-									-									-									-									-									(414,915,586			)						-									(414,915,586			)
Total									-												-									-									-									-									(414,915,586			)						(414,915,586			)						-									-									-									-									-									-									(414,915,586			)						-									(414,915,586			)
Net income									-												-									-									-									-									1,173,267,703									1,173,267,703									-									-									-									-									-									-									1,173,267,703									(835,944			)						1,172,431,759
Other comprehensive income (loss), net of income tax									-												-									-									-									-									126,040									126,040									65,579,764									6,948,818									(85,709			)						-									72,442,873									-									72,568,913									(983,267									71,585,646
Total comprehensive income (loss)									-												-									-									-									-									1,173,393,743									1,173,393,743									65,579,764									6,948,818									(85,709			)						-									72,442,873									-									1,245,836,616									(1,819,211			)						1,244,017,405
Employee restricted shares retired									(1,402			)									(14,018			)						14,018									-									-									19,934									19,934									-									-									-									-									-									-									19,934									-									19,934
Share-based payment arrangements									5,313												53,130									2,584,257									-									-									-									-									-									-									-									(1,414,645			)						(1,414,645			)						-									1,222,742									-									1,222,742
Treasury stock acquired									-												-									-									-									-									-									-									-									-									-									-									-									(3,089,177			)						(3,089,177			)						-									(3,089,177			)
Treasury stock retired									(3,249			)									(32,490			)						(7,080			)						-									-									(3,049,607			)						(3,049,607			)						-									-									-									-									-									3,089,177									-									-									-
Disposal of investments in equity instruments at fair value through other comprehensive income									-												-									-									-									-									3,772,747									3,772,747									-									(4,009,066			)						-									-									(4,009,066			)						-									(236,319			)						236,319									-
Basis adjustment for gain on hedging instruments									-												-									-									-									-									-									-									-									-									141									-									141									-									141									-									141
Adjustments to share of changes in equities of associates									-												-									870,000									-									-									-									-									-									-									-									-									-									-									870,000									-									870,000
From difference between the consideration received and the carrying amount of the subsidiaries' net assets during actual disposal									-												-									5,284									-									-									-									-									-									-									-									-									-									-									5,284									(4,263			)						1,021
From share of changes in equities of subsidiaries									-												-									(90,978			)						-									-									-									-									-									-									-									-									-									-									(90,978			)						6,918,796									6,827,818
Donation from shareholders									-												-									8,883									-									-									-									-									-									-									-									-									-									-									8,883									64									8,947
Increase in non-controlling interests									-												-									-									-									-									-									-									-									-									-									-									-									-									-									5,349,773									5,349,773
BALANCE, DECEMBER 31, 2024									25,932,733									$			259,327,332						$			73,260,765						$			311,146,899						$			-						$			3,606,105,124						$			3,917,252,023						$			40,262,995						$			(1,160,176			)			$			1,310,307						$			(1,708,079			)			$			38,705,047						$			-						$			4,288,545,167						$			35,030,698						$			4,323,575,865

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

- 9 -

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

						2024															2023
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax						$						1,405,838,635									$						979,171,324
Adjustments for:
Depreciation expense									653,610,486															522,932,671
Amortization expense									9,186,149															9,258,250
Expected credit losses recognized on investments in debt instruments									49,907															35,745
Finance costs									10,495,320															11,999,360
Share of profits of associates									(4,879,367						)									(4,655,098						)
Interest income									(87,213,399						)									(60,293,901						)
Share-based compensation									1,242,719															483,050
Loss on disposal or retirement of property, plant and equipment, net									2,597,927															369,140
Loss (gain) on disposal or retirement of intangible assets, net									34															(3,045						)
Impairment loss on property, plant and equipment									1,150,485															-
Loss (gain) on financial instruments at fair value through profit or loss, net									137,694															(12,355						)
Loss on disposal of investments in debt instruments at fair value through other comprehensive income, net									683,117															473,897
Gain on disposal of investments accounted for using equity method, net									(7,126						)									(15,758						)
Loss (gain) on foreign exchange, net									4,576,295															(246,695						)
Dividend income									(566,879						)									(464,094						)
Others									(435,644						)									(337,935						)
Changes in operating assets and liabilities:
Financial instruments at fair value through profit or loss									842,623															289,570
Notes and accounts receivable, net									(69,369,394						)									28,441,987
Receivables from related parties									(780,022						)									959,507
Other receivables from related parties									71,620															(2,896						)
Inventories									(36,871,722						)									(29,847,940						)
Other financial assets									(2,377,515						)									1,878,712
Other current assets									(15,537,261						)									(12,530,880						)
Other noncurrent assets									(3,862,018						)									(720,278						)
Accounts payable									17,073,801															847,049
Payables to related parties									(140,299						)									(76,337						)
Salary and bonus payable									14,250,946															(3,234,946						)
Accrued profit sharing bonus to employees and compensation to directors									20,154,206															(11,031,630						)
Accrued expenses and other current liabilities									74,659,388															(44,466,734						)
Other noncurrent liabilities									16,768,683															13,329,895
Net defined benefit liability									(1,532,202						)									(687,223						)
Cash generated from operations									2,009,817,187															1,401,842,412
Income taxes paid									(183,640,119						)									(159,875,065						)
Net cash generated by operating activities									1,826,177,068															1,241,967,347

(Continued)

- 10 -

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

						2024															2023
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Financial instruments at fair value through profit or loss						$						(1,178,766			)						$						(14,142,072			)
Financial assets at fair value through other comprehensive income									(87,787,521						)									(62,752,002						)
Financial assets at amortized cost									(151,656,371						)									(149,387,898						)
Investments accounted for using equity method									(3,738,753						)									-
Property, plant and equipment									(956,006,536						)									(949,816,825						)
Intangible assets									(8,875,660						)									(5,518,414						)
Proceeds from disposal or redemption of:
Financial assets at fair value through other comprehensive income									67,684,556															35,698,575
Financial assets at amortized cost									118,350,898															134,605,822
Property, plant and equipment									894,573															703,904
Intangible assets									57,182															3,078
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income									325,952															127,963
Derecognition of hedging financial instruments									118,320															68,237
Interest received									76,434,070															55,887,164
Proceeds from government grants - property, plant and equipment									75,163,982															47,544,746
Proceeds from government grants - others									267															1,152
Other dividends received									541,803															445,129
Dividends received from investments accounted for using equity method									2,965,201															3,076,482
Increase in prepayments for leases									(99,427						)									(63,153						)
Refundable deposits paid									(1,304,815						)									(4,056,496						)
Refundable deposits refunded									3,268,276															1,454,012
Net cash used in investing activities									(864,842,769						)									(906,120,596						)
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															85,700,000
Repayment of bonds									(7,000,000						)									(18,100,000						)
Proceeds from long-term bank loans									30,897,000															2,450,000
Repayment of long-term bank loans									(2,295,556						)									(1,756,944						)
Payments for transaction costs attributable to the issuance of bonds									(35,681						)									(88,681						)
Treasury stock acquired									(3,089,177						)									-
Repayment of the principal portion of lease liabilities									(2,873,640						)									(2,854,344						)
Interest paid									(18,751,233						)									(17,358,981						)
Guarantee deposits received									4,990															230,116
Guarantee deposits refunded									(93,332						)									(367,375						)
Cash dividends									(363,055,226						)									(291,721,852						)
Disposal of ownership interests in subsidiaries (without losing control)									1,021															-
Donation from shareholders									8,947															16,448
Increase in non-controlling interests									12,177,547															11,048,781
Net cash used in financing activities									(346,300,910						)									(204,894,252						)

(Continued)

- 11 -

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

						2024															2023
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS						$						47,165,901									$						(8,338,829			)
NET INCREASE IN CASH AND CASH EQUIVALENTS									662,199,290															122,613,670
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR									1,465,427,753															1,342,814,083
CASH AND CASH EQUIVALENTS, END OF YEAR						$						2,127,627,043									$						1,465,427,753

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

- 12 -

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

1.    GENERAL

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

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

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

2.    THE AUTHORIZATION OF FINANCIAL STATEMENTS

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

3.    APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

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

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

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

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

- 13 -

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IFRS 18 “Presentation and Disclosure in Financial Statements”

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

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

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

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

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

4.    SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

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

Statement of Compliance

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS Accounting Standards endorsed by the FSC with the effective dates (collectively, “Taiwan-IFRS Accounting Standards”).

Basis of Preparation

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

Basis of Consolidation

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

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

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

- 14 -

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

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

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

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

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

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

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

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

The subsidiaries in the consolidated financial statements

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

Establishment

Percentage of Ownership

Name of Investor

Name of Investee

Main Businesses and Products

and Operating Location

December 31, 2024

December 31, 2023

Note

TSMC

TSMC North America

Sales and marketing of integrated circuits and other semiconductor devices

San Jose, California, U.S.A.

100%

100%

-

TSMC Europe B.V. (TSMC Europe)

Customer service and supporting activities

Amsterdam, the Netherlands

100%

100%

a)

TSMC Japan Limited (TSMC Japan)

Customer service and supporting activities

Yokohama, Japan

100%

100%

a)

TSMC Design Technology Japan, Inc. (TSMC JDC)

Engineering support activities

Yokohama, Japan

100%

100%

a)

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

Engineering support activities

Yokohama, Japan

100%

100%

a)

TSMC Korea Limited (TSMC Korea)

Customer service and supporting activities

Seoul, Korea

100%

100%

a)

TSMC Partners, Ltd. (TSMC Partners)

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

Tortola, British Virgin Islands

100%

100%

-

TSMC Global Ltd. (TSMC Global)

Investment activities

Tortola, British Virgin Islands

100%

100%

-

TSMC China Company Limited (TSMC China)

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

Shanghai, China

100%

100%

-

TSMC Nanjing Company Limited (TSMC Nanjing)

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

Nanjing, China

100%

100%

-

VisEra Technologies Company Ltd. (VisEra Tech)

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

Hsinchu, Taiwan

67%

67%

c)

TSMC Arizona Corporation (TSMC Arizona)

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

Phoenix, Arizona, U.S.A.

100%

100%

-

(Continued)

- 15 -

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Establishment

Percentage of Ownership

Name of Investor

Name of Investee

Main Businesses and Products

and Operating Location

December 31, 2024

December 31, 2023

Note

TSMC

Japan Advanced Semiconductor Manufacturing, Inc. (JASM)

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

Kumamoto, Japan

73%

71%

d)

European Semiconductor Manufacturing Company (ESMC) GmbH (ESMC)

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

Dresden, Germany

70%

100%

e)

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

Investing in technology start-up companies

Cayman Islands

98%

98%

b), f)

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

Investing in technology start-up companies

Cayman Islands

98%

98%

b), f)

Emerging Fund, L.P. (Emerging Fund)

Investing in technology start-up companies

Cayman Islands

99.9%

99.9%

b)

TSMC Partners

TSMC Development, Inc. (TSMC Development)

Investing in companies involved in semiconductor manufacturing

Delaware, U.S.A.

100%

100%

-

TSMC Technology, Inc. (TSMC Technology)

Engineering support activities

Delaware, U.S.A.

100%

100%

a)

TSMC Design Technology Canada Inc. (TSMC Canada)

Engineering support activities

Ontario, Canada

100%

100%

a)

VTAF III

Growth Fund Limited (Growth Fund)

Investing in technology start-up companies

Cayman Islands

100%

100%

b), f)

TSMC Development

TSMC Washington, LLC (TSMC Washington)

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

Washington, U.S.A.

100%

100%

-

(Concluded)

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

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

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

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

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

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

Foreign Currencies

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

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

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

- 16 -

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Classification of Current and Noncurrent Assets and Liabilities

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

Cash Equivalents

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

Financial Instruments

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

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

Financial Assets

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

a.    Category of financial assets and measurement

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

1)    Financial asset at FVTPL

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

2)    Investments in debt instruments at FVTOCI

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

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

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3)    Investments in equity instruments at FVTOCI

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

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

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

4)    Measured at amortized cost

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

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

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

b.    Impairment of financial assets

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

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

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

c.    Derecognition of financial assets

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

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

Financial Liabilities and Equity Instruments

Classification as debt or equity

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

Equity instruments

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

Financial liabilities

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

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

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

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

Derecognition of financial liabilities

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

Derivative Financial Instruments

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

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Hedge Accounting

a.    Fair value hedge

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

b.    Cash flow hedge

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

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

c.    Hedges of net investments in foreign operations

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

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

Inventories

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

Investments Accounted for Using Equity Method

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

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

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

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

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

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

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

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

Property, Plant and Equipment

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

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

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

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

Leases

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

The Company as lessor

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

The Company as lessee

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

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

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

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

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

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Intangible Assets

Goodwill

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

Other intangible assets

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

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

Goodwill

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

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

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

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

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

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

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

Revenue Recognition

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

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

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

Employee Benefits

Short-term employee benefits

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

Retirement benefits

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

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

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

Treasury Stock

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

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Share-based payment arrangements

a.    Equity-settled share-based payment arrangements

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

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

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

b.    Cash-settled share-based payment arrangements

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

Taxation

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

Current tax

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

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

Deferred tax

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

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

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

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

Current and deferred tax for the year

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

Government Grants

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

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

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

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

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

Material Accounting Judgments

Revenue Recognition

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

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

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

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Judgments on Lease Terms

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

Key Sources of Estimation and Uncertainty

Estimation of Sales Returns and Allowances

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

Valuation of Inventory

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

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

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

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

Realization of Deferred Income Tax Assets

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

Determination of Lessees’ Incremental Borrowing Rates

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

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6.    CASH AND CASH EQUIVALENTS

						December 31, 2024															December 31, 2023
Cash and deposits in banks						$						2,120,674,818									$						1,453,101,566
Money market funds									2,826,701															10,898,720
Repurchase agreements									2,126,975															1,346,719
Commercial paper									1,998,549															29,961
Government bonds/Agency bonds									-															50,787
						$						2,127,627,043									$						1,465,427,753

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

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

						December 31, 2024															December 31, 2023
Financial assets
Mandatorily measured at FVTPL
Convertible preferred stocks						$						14,181,839									$						13,307,160
Mutual funds									886,931															110,297
Forward exchange contracts									207,700															701,182
Simple agreement for future equity									131,072															-
Convertible bonds									-															223,454
						$						15,407,542									$						14,342,093
Current						$						207,700									$						924,636
Noncurrent									15,199,842															13,417,457
						$						15,407,542									$						14,342,093
Financial liabilities
Held for trading
Forward exchange contracts						$						466,539									$						121,412

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

Outstanding forward exchange contracts consisted of the following:

Contract Amount

Maturity Date

(In Thousands)

December 31, 2024

Sell US$

January 2025 to March 2025

US$

3,331,445

Sell JPY

January 2025

JPY

45,233,963

(Continued)

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Contract Amount

Maturity Date

(In Thousands)

December 31, 2023

Sell NT$

January 2024

NT$

26,251,763

Sell US$

January 2024 to March 2024

US$

1,112,000

Sell JPY

January 2024

JPY

20,000,000

(Concluded)

8.    FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

						December 31, 2024															December 31, 2023
Investments in debt instruments at FVTOCI
Corporate bonds						$						108,612,082									$						79,605,567
Agency mortgage-backed securities									46,611,373															37,959,691
Government bonds/Agency bonds									20,645,877															22,338,901
Asset-backed securities									11,490,511															9,898,766
									187,359,843															149,802,925
Investments in equity instruments at FVTOCI
Non-publicly traded equity investments									7,822,884															7,208,655
Publicly traded stocks									4,842,814															4,727,905
									12,665,698															11,936,560
						$						200,025,541									$						161,739,485
Current						$						192,202,657									$						154,530,830
Noncurrent									7,822,884															7,208,655
						$						200,025,541									$						161,739,485

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

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

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

- 29 -

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9.    FINANCIAL ASSETS AT AMORTIZED COST

						December 31, 2024															December 31, 2023
Corporate bonds						$						172,091,958									$						113,851,856
Commercial paper									14,221,737															18,387,835
Government bonds/Agency bonds									4,379,527															13,803,559
Less: Allowance for impairment loss									(125,358						)									(82,662						)
						$						190,567,864									$						145,960,588
Current						$						101,971,322									$						66,761,221
Noncurrent									88,596,542															79,199,367
						$						190,567,864									$						145,960,588

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

10.    HEDGING FINANCIAL INSTRUMENTS

						December 31, 2024															December 31, 2023
Financial assets- current
Fair value hedges
Interest rate futures contracts						$						10,959									$						-
Financial liabilities- current
Fair value hedges
Interest rate futures contracts						$						-									$						43,764
Hedges of net investments in foreign operations
Bank loans									-															27,290,400
						$						-									$						27,334,164

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.

- 30 -

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

December 31, 2024

Hedging Instruments

Contract Amount (US$ in Thousands)

Maturity

Interest rate futures contracts - US Treasury futures

US$    40,400

March 2025

Hedged Items

Asset Carrying Amount

Accumulated Amount of Fair Value Hedge Adjustments

Financial assets at FVTOCI

$    3,129,235

$    (10,959)

December 31, 2023

Hedging Instruments

Contract Amount (US$ in Thousands)

Maturity

Interest rate futures contracts - US Treasury futures

US$    48,600

March 2024

Hedged Items

Asset Carrying Amount

Accumulated Amount of Fair Value Hedge Adjustments

Financial assets at FVTOCI

$    3,959,523

$    43,764

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

						Change in Value Used for Calculating Hedge Ineffectiveness
						Years Ended December 31
Hedging Instruments/Hedged Items						2024															2023
Hedging Instruments
Interest rate futures contracts - US Treasury futures						$						174,128									$						20,478
Hedged Items
Financial assets at FVTOCI									(174,128						)									(20,478						)
						$						-									$						-

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.

- 31 -

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The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of the counterparty’s own credit risk on the fair value of forward contracts. No other sources of ineffectiveness have emerged from these hedging relationships during the hedging period. Refer to Note 20 (d) for gain or loss arising from changes in the fair value of hedging instruments and hedged item affects profit or loss, and the amount transferred to initial carrying amount of hedged items.

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

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

Hedges of net investments in foreign operations

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

The main source of hedge ineffectiveness in these hedging relationships is driven by the material difference between the notional amount of bank loans denominated in foreign currency and the net investment in foreign operations. No other sources of ineffectiveness have emerged from these hedging relationships during the hedging period. Refer to Note 20 (d) for gain or loss arising from changes in the fair value of hedging instruments.

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

December 31, 2023

Hedging Instruments

Contract Amount (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

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

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

- 32 -

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11.    NOTES AND ACCOUNTS RECEIVABLE, NET

						December 31, 2024															December 31, 2023
At amortized cost
Notes and accounts receivable						$						265,223,660									$						196,434,151
Less: Loss allowance									(453,009						)									(531,554						)
									264,770,651															195,902,597
At FVTOCI									5,912,584															5,411,317
						$						270,683,235									$						201,313,914

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

						December 31, 2024															December 31, 2023
Not past due						$						255,669,647									$						183,188,499
Past due
Past due within 30 days									15,464,122															18,641,148
Past due over 31 days									2,475															15,821
Less: Loss allowance									(453,009						)									(531,554						)
						$						270,683,235									$						201,313,914

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

Movements of the loss allowance for accounts receivable

						Years Ended December 31
						2024															2023
Balance, beginning of year						$						531,554									$						331,646
Provision (Reversal)									(78,618						)									199,922
Effect of exchange rate changes									73															(14						)
Balance, end of year						$						453,009									$						531,554

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

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12.    INVENTORIES

						December 31, 2024															December 31, 2023
Finished goods						$						35,177,009									$						34,511,032
Work in process									181,198,808															156,498,469
Raw materials									46,449,249															38,818,273
Supplies and spare parts									25,043,744															21,169,314
						$						287,868,810									$						250,997,088

Write-down of inventories to net realizable value (excluding earthquake losses) and reversal of write-down of inventories resulting from the increase in net realizable value were included in the cost of revenue, which were as follows. Please refer to related earthquake losses in Note 36.

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

13.    INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Associates consisted of the following:

												Place of						Carrying Amount																														% of Ownership and Voting Rights Held by the Company
Name of Associate						Principal Activities						Incorporation and Operation						December 31, 2024															December 31, 2023															December 31, 2024						December 31, 2023
Vanguard International Semiconductor Corporation (VIS)						Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks						Hsinchu, Taiwan						$						18,300,373									$						13,590,430									28%						28%
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)						Manufacturing and sales of integrated circuits and other semiconductor devices						Singapore									11,387,185															9,728,801												39%						39%
Xintec Inc. (Xintec)						Wafer level chip size packaging and wafer level post passivation interconnection service						Taoyuan, Taiwan									4,220,609															3,759,701												41%						41%
Global Unichip Corporation (GUC)						Researching, developing, manufacturing, testing and marketing of integrated circuits						Hsinchu, Taiwan									3,512,938															2,537,706												35%						35%
																		$						37,421,105									$						29,616,638

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

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

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

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

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14.    PROPERTY, PLANT AND EQUIPMENT

						December 31, 2024															December 31, 2023
Assets used by the Company						$						3,234,778,389									$						3,064,424,259
Assets subject to operating leases									201,681															50,725
						$						3,234,980,070									$						3,064,474,984

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									5,542,937															141,097,129															490,799,015															13,719,182															147,349,074															798,507,337
Disposals or retirements									(278,309						)									(119,819						)									(34,140,462						)									(8,334,071						)									-															(42,872,661									)
Transfers from assets subject to operating leases									-															-															56,487															-															-															56,487
Transfers to assets subject to operating leases									-															(197,752						)									-															-															-															(197,752									)
Effect of exchange rate changes									167,536															531,331															10,502,001															224,555															24,645,412															36,070,835
Balance at December 31, 2024						$						13,054,161									$						959,133,864									$						5,852,202,689									$						105,434,750									$						1,080,284,237									$						8,010,109,701
Accumulated depreciation   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									13,577															52,205,135															585,635,125															12,047,479															-															649,901,316
Disposals or retirements									-															(114,665						)									(30,823,269						)									(8,332,458						)									-															(39,270,392									)
Transfers from assets subject to operating leases									-															-															53,721															-															-															53,721
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									36,880															1,231,688															7,905,835															214,950															-															9,389,353
Balance at December 31, 2024						$						608,531									$						440,369,241									$						4,262,882,850									$						70,679,950									$						790,740									$						4,775,331,312
Carrying amounts at December 31, 2024						$						12,445,630									$						518,764,623									$						1,589,319,839									$						34,754,800									$						1,079,493,497									$						3,234,778,389
Cost
Balance at January 1, 2023						$						7,661,817									$						637,046,949									$						4,295,942,530									$						85,028,040									$						1,336,842,608									$						6,362,521,944
Additions (deductions)									-															182,033,268															1,120,848,716															18,205,541															(423,568,764						)									897,518,761
Disposals or retirements									-															(585,487						)									(28,525,908						)									(3,325,297						)									-															(32,436,692						)
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									-															-															(71,078						)									-															-															(71,078						)
Effect of exchange rate changes									(39,820						)									(671,755						)									(3,293,426						)									(83,200						)									(4,984,093						)									(9,072,294						)
Balance at December 31, 2023						$						7,621,997									$						817,822,975									$						5,384,985,648									$						99,825,084									$						908,289,751									$						7,218,545,455
Accumulated depreciation   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									1,315															45,052,891															463,825,315															10,586,695															-															519,466,216
Disposals or retirements									-															(582,993						)									(27,407,731						)									(3,324,247						)									-															(31,314,971						)
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									-															-															(45,731						)									-															-															(45,731						)
Effect of exchange rate changes									598															(394,346						)									(2,299,629						)									(52,585						)									-															(2,745,962						)
Balance at December 31, 2023						$						558,074									$						387,013,911									$						3,699,008,492									$						66,749,979									$						790,740									$						4,154,121,196
Carrying amounts at December 31, 2023						$						7,063,923									$						430,809,064									$						1,685,977,156									$						33,075,105									$						907,499,011									$						3,064,424,259

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

In the second quarter of 2024, the Company recognized an impairment loss due to partial plant facilities and machinery and equipment damage caused by an earthquake, which rendered them unusable. Please refer to the related earthquake losses in Note 36.

Information about capitalized interest is set out in Note 23.

15.    LEASE ARRANGEMENTS

a.    Right-of-use assets

						December 31, 2024															December 31, 2023
Carrying amounts
Land						$						36,980,971									$						37,437,179
Buildings									3,103,902															2,946,008
Office equipment									43,518															41,643
						$						40,128,391									$						40,424,830

						Years Ended December 31
						2024															2023
Additions to right-of-use assets						$						4,579,647									$						2,145,431
Depreciation of right-of-use assets
Land						$						2,541,876									$						2,459,068
Buildings									1,114,297															976,097
Machinery and equipment									-															369
Office equipment									23,334															23,434
						$						3,679,507									$						3,458,968

b.    Lease liabilities

						December 31, 2024															December 31, 2023
Carrying amounts
Current portion (classified under accrued expenses and other current liabilities)						$						3,049,032									$						2,810,551
Noncurrent portion									28,755,342															28,681,835
						$						31,804,374									$						31,492,386

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Ranges of discount rates for lease liabilities are as follows:

						December 31, 2024						December 31, 2023
Land						0.39%-2.30%						0.39%-2.30%
Buildings						0.40%-6.52%						0.57%-6.52%
Office equipment						0.28%-6.46%						0.28%-7.13%

c.    Material terms of right-of-use assets

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

d.    Other lease information

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

16.    INTANGIBLE ASSETS

									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															-																											2,378,392															9,166,377															977,434															12,522,203
Disposals or retirements															-																											(32,460						)									(5,235,383						)									(210,570						)									(5,478,413						)
Effect of exchange rate changes															274,426																											(765						)									31,019															19,221															323,901
Balance at December 31, 2024									$												6,070,864																		$						28,566,518									$						53,279,044									$						13,133,519									$						101,049,945
Accumulated amortization and   impairment
Balance at January 1, 2024									$												-																		$						20,490,070									$						39,846,671									$						10,578,769									$						70,915,510
Additions															-																											2,729,998															5,470,204															985,947															9,186,149
Disposals or retirements															-																											(32,460						)									(5,235,349						)									(102,000						)									(5,369,809						)
Effect of exchange rate changes															-																											(860						)									19,159															17,276															35,575
Balance at December 31, 2024									$												-																		$						23,186,748									$						40,100,685									$						11,479,992									$						74,767,425
Carrying amounts at December 31, 2024									$												6,070,864																		$						5,379,770									$						13,178,359									$						1,653,527									$						26,282,520
Cost
Balance at January 1, 2023									$															5,791,821															$						25,759,019									$						48,675,794									$						11,701,892									$						91,928,526
Additions																								-																		461,089															4,947,364															621,312															6,029,765
Disposals or retirements																								-																		-															(4,289,185						)									-															(4,289,185						)
Effect of exchange rate changes																								4,617																		1,243															(16,942						)									24,230															13,148
Balance at December 31, 2023									$												5,796,438																		$						26,221,351									$						49,317,031									$						12,347,434									$						93,682,254

(Continued)

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									Goodwill																					Technology License Fees															Software and System Design Costs															Patent and Others															Total
Accumulated amortization and   impairment
Balance at January 1, 2023												$						-												$						17,696,437									$						38,838,394									$						9,394,540									$						65,929,371
Additions															-																		2,792,353															5,308,109															1,157,788															9,258,250
Disposals or retirements															-																		-															(4,289,152						)									-															(4,289,152						)
Effect of exchange rate changes															-																		1,280															(10,680						)									26,441															17,041
Balance at December 31, 2023												$						-												$						20,490,070									$						39,846,671									$						10,578,769									$						70,915,510
Carrying amounts at December 31, 2023												$						5,796,438												$						5,731,281									$						9,470,360									$						1,768,665									$						22,766,744

(Concluded)

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

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

17.    BONDS PAYABLE

						December 31, 2024															December 31, 2023
Domestic unsecured bonds						$						478,536,000									$						447,194,000
Overseas unsecured bonds									507,904,000															476,578,500
Less: Discounts on bonds payable									(2,687,615						)									(2,874,947						)
Less: Current portion									(57,147,879						)									(6,997,710						)
						$						926,604,506									$						913,899,843

The major terms of domestic unsecured bonds are as follows:

Issuance						Tranche						Issuance Period						Total Issue Amount															Coupon Rate						Repayment and Interest Payment
NT$ unsecured   bonds
101-4						C						January 2013 to January 2023						$						3,000,000									1.49%						Bullet repayment; interest payable annually
102-1						C						February 2013 to February 2023									3,600,000												1.50%						The same as above
102-2						B						July 2013 to July 2023									3,500,000												1.70%						The same as above
102-4						E						September 2013 to March 2023									5,400,000												2.05%						The same as above
						F						September 2013 to September 2023									2,600,000												2.10%						The same as above

(Continued)

- 38 -

---

Issuance						Tranche						Issuance Period						Total Issue Amount															Coupon Rate						Repayment and Interest Payment
109-1						A						March 2020 to March 2025						$						3,000,000									0.58%						Bullet repayment; interest payable annually
						B						March 2020 to March 2027									10,500,000												0.62%						The same as above
						C						March 2020 to March 2030									10,500,000												0.64%						The same as above
109-2						A						April 2020 to April 2025									5,900,000												0.52%						The same as above
						B						April 2020 to April 2027									10,400,000												0.58%						The same as above
						C						April 2020 to April 2030									5,300,000												0.60%						The same as above
109-3						A						May 2020 to May 2025									4,500,000												0.55%						The same as above
						B						May 2020 to May 2027									7,500,000												0.60%						The same as above
						C						May 2020 to May 2030									2,400,000												0.64%						The same as above
109-4						A						July 2020 to July 2025									5,700,000												0.58%						Two equal installments in last two years; interest payable annually
						B						July 2020 to July 2027									6,300,000												0.65%						The same as above
						C						July 2020 to July 2030									1,900,000												0.67%						The same as above
109-5						A						September 2020 to September 2025									4,800,000												0.50%						The same as above
						B						September 2020 to September 2027									8,000,000												0.58%						The same as above
						C						September 2020 to September 2030									2,800,000												0.60%						The same as above
109-6 (Green bond)						A						December 2020 to December 2025									1,600,000												0.40%						The same as above
						B						December 2020 to December 2027									5,600,000												0.44%						The same as above
						C						December 2020 to December 2030									4,800,000												0.48%						The same as above
109-7						A						December 2020 to December 2025									1,900,000												0.36%						The same as above
						B						December 2020 to December 2027									10,200,000												0.41%						The same as above
						C						December 2020 to December 2030									6,400,000												0.45%						The same as above
110-1						A						March 2021 to March 2026									4,800,000												0.50%						Bullet repayment; interest payable annually
						B						March 2021 to March 2028									11,400,000												0.55%						The same as above
						C						March 2021 to March 2031									4,900,000												0.60%						The same as above

(Continued)

- 39 -

---

Issuance						Tranche						Issuance Period						Total Issue Amount															Coupon Rate						Repayment and Interest Payment
110-2						A						May 2021 to May 2026						$						5,200,000									0.50%						Bullet repayment; interest payable annually
						B						May 2021 to May 2028									8,400,000												0.58%						The same as above
						C						May 2021 to May 2031									5,600,000												0.65%						The same as above
110-3						A						June 2021 to June 2026									6,900,000												0.52%						The same as above
						B						June 2021 to June 2028									7,900,000												0.58%						The same as above
						C						June 2021 to June 2031									4,900,000												0.65%						The same as above
110-4						A						August 2021 to August 2025									4,000,000												0.485%						The same as above
						B						August 2021 to August 2026									8,000,000												0.50%						The same as above
						C						August 2021 to August 2028									5,400,000												0.55%						The same as above
						D						August 2021 to August 2031									4,200,000												0.62%						The same as above
110-6						A						October 2021 to April 2026									3,200,000												0.535%						The same as above
						B						October 2021 to October 2026									6,900,000												0.54%						The same as above
						C						October 2021 to October 2028									4,600,000												0.60%						The same as above
						D						October 2021 to October 2031									1,600,000												0.62%						The same as above
110-7						A						December 2021 to December 2026									7,700,000												0.65%						The same as above
						B						December 2021 to June 2027									3,500,000												0.675%						The same as above
						C						December 2021 to December 2028									5,500,000												0.72%						The same as above
111-1 (Green bond)						A						January 2022 to January 2027									2,100,000												0.63%						The same as above
						B						January 2022 to January 2029									3,300,000												0.72%						The same as above
111-2						A						March 2022 to September 2026									3,000,000												0.84%						The same as above
						B						March 2022 to March 2027									9,600,000												0.85%						The same as above
						C						March 2022 to March 2029									1,600,000												0.90%						The same as above
111-3 (Green bond)						-						May 2022 to May 2027									6,100,000												1.50%						The same as above
111-4 (Green bond)						A						July 2022 to July 2026									1,200,000												1.60%						The same as above
						B						July 2022 to July 2027									10,100,000												1.70%						The same as above

(Continued)

- 40 -

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Issuance

Tranche

Issuance Period

Total Issue Amount

Coupon Rate

Repayment and Interest Payment

111-4 (Green bond)

C

July 2022 to July 2029

$

1,200,000

1.75%

Bullet repayment; interest payable annually

D

July 2022 to July 2032

1,400,000

1.95%

The same as above

111-5

A

August 2022 to June 2027

2,000,000

1.65%

The same as above

B

August 2022 to August 2027

8,900,000

1.65%

The same as above

C

August 2022 to August 2029

2,200,000

1.65%

The same as above

D

August 2022 to August 2032

2,500,000

1.82%

The same as above

111-6 (Green bond)

A

October 2022 to October 2027

5,700,000

1.75%

The same as above

B

October 2022 to October 2029

1,000,000

1.80%

The same as above

C

October 2022 to October 2032

3,500,000

2.00%

The same as above

112-1 (Green bond)

A

March 2023 to March 2028

12,200,000

1.54%

The same as above

B

March 2023 to March 2030

2,300,000

1.60%

The same as above

C

March 2023 to March 2033

4,800,000

1.78%

The same as above

112-2 (Green bond)

A

May 2023 to May 2028

13,100,000

1.60%

The same as above

B

May 2023 to May 2030

2,300,000

1.65%

The same as above

C

May 2023 to May 2033

5,300,000

1.82%

The same as above

112-3

A

June 2023 to June 2028

11,400,000

1.60%

The same as above

B

June 2023 to June 2030

2,600,000

1.65%

The same as above

C

June 2023 to June 2033

6,000,000

1.80%

The same as above

112-4

A

August 2023 to August 2028

7,300,000

1.60%

The same as above

B

August 2023 to August 2030

700,000

1.65%

The same as above

C

August 2023 to August 2033

7,900,000

1.76%

The same as above

112-5

A

October 2023 to October 2028

4,300,000

1.62%

The same as above

B

October 2023 to October 2033

5,500,000

1.76%

The same as above

(Continued)

- 41 -

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Issuance

Tranche

Issuance Period

Total Issue Amount

Coupon Rate

Repayment and Interest Payment

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

(Concluded)

Issuance

Tranche

Issuance Period

Total Issue Amount (US$ in Thousands)

Coupon Rate

Repayment and Interest Payment

US$ unsecured   bonds

109-1

-

September 2020 to September 2060

US$    1,000,000

2.70%

Bullet repayment (callable on the 5th anniversary of the issue date and every anniversary thereafter); interest payable annually

110-5

-

September 2021 to September 2051

1,000,000

3.10%

The same as above

The major terms of overseas unsecured bonds are as follows:

Issuance Period						Total Issue Amount (US$ in Thousands)															Coupon Rate						Repayment and Interest Payment
September 2020 to September 2025						US$						1,000,000									0.75%						Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually
September 2020 to September 2027									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)

- 42 -

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Issuance Period						Total Issue Amount (US$ in Thousands)															Coupon Rate						Repayment and Interest Payment
October 2021 to October 2026						US$						1,250,000									1.75%						Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually
October 2021 to October 2031									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

						December 31, 2024															December 31, 2023
NT$ unsecured loans						$						4,410,833									$						6,706,389
JPY unsecured loans									30,124,800															-
Less: Discounts on government grants									(1,247						)									(27,868						)
Less: Current portion									(2,710,000						)									(2,295,556						)
						$						31,824,386									$						4,382,965
Loan content
Annual interest rate									0.13%-1.78%															1.15%-1.35%
Maturity date									Due by December 2030															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.

- 43 -

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19.    RETIREMENT BENEFIT PLANS

a.    Defined contribution plans

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

b.    Defined benefit plans

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

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

						Years Ended December 31
						2024															2023
Current service cost						$						153,020									$						139,101
Net interest expense									122,660															142,291
Components of defined benefit costs recognized in profit or loss									275,680															281,392
Remeasurement on the net defined benefit liability:
Return on plan assets (excluding amounts included in net interest expense)									(774,583						)									(16,252						)
Actuarial loss arising from experience adjustments									911,752															68,342
Actuarial (gain) loss arising from changes in financial assumptions									(281,534						)									571,266
Components of defined benefit costs recognized in other comprehensive income									(144,365						)									623,356
Total						$						131,315									$						904,748

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

						Years Ended December 31
						2024															2023
Cost of revenue						$						178,507									$						182,333
Research and development expenses									75,259															76,120
General and administrative expenses									18,424															19,248
Marketing expenses									3,490															3,691
						$						275,680									$						281,392

- 44 -

---

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

						December 31, 2024															December 31, 2023
Present value of defined benefit obligation						$						18,332,160									$						17,995,066
Fair value of plan assets									(10,751,503						)									(8,737,842						)
Net defined benefit liability						$						7,580,657									$						9,257,224

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

						Years Ended December 31
						2024															2023
Balance, beginning of year						$						17,995,066									$						17,483,951
Current service cost									153,020															139,101
Interest expense									242,788															303,970
Remeasurement:
Actuarial loss arising from experience adjustments									911,752															68,342
Actuarial (gain) loss arising from changes in financial assumptions									(281,534						)									571,266
Benefits paid from plan assets									(679,084						)									(556,455						)
Benefits paid directly by the Company									(9,848						)									(15,109						)
Balance, end of year						$						18,332,160									$						17,995,066

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

						Years Ended December 31
						2024															2023
Balance, beginning of year						$						8,737,842									$						8,162,860
Interest income									120,128															161,679
Remeasurement:
Return on plan assets (excluding amounts included in net interest expense)									774,583															16,252
Contributions from employer									1,798,034															953,506
Benefits paid from plan assets									(679,084						)									(556,455						)
Balance, end of year						$						10,751,503									$						8,737,842

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

						December 31, 2024															December 31, 2023
Cash						$						1,569,719									$						1,351,744
Equity instruments									6,245,548															4,998,919
Debt instruments									2,936,236															2,387,179
						$						10,751,503									$						8,737,842

- 45 -

---

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

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

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

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

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

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

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

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

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

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

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

- 46 -

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20.    EQUITY

a.    Capital stock

						December 31, 2024												December 31, 2023
Authorized shares (in thousands)									28,050,000												28,050,000
Authorized capital						$			280,500,000									$			280,500,000
Issued and paid shares (in thousands)									25,932,733												25,932,071
Issued capital						$			259,327,332									$			259,320,710

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

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

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

During the first quarter of 2024 and 2023, TSMC reclaimed 1,402 thousand and 419 thousand employee restricted shares, respectively, that were unvested. On June 5, 2024 and May 9, 2023, TSMC’s Board of Directors resolved to cancel the aforementioned shares. Subsequently, TSMC completed the registration for share cancellation. Refer to Note 27 for information on RSAs.

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

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

b.    Capital surplus

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

						December 31, 2024															December 31, 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
From merger									22,800,434															22,803,291
From convertible bonds									8,891,257															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
Donations - donated by shareholders									11,275															11,275

(Continued)

- 47 -

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						December 31, 2024															December 31, 2023
May only be used to offset a deficit
From share of changes in equities of subsidiaries						$						4,108,958									$						4,199,936
From share of changes in equities of associates									1,172,396															302,396
Donations - unclaimed dividend									78,976															70,093
May not be used for any purpose
Employee restricted shares									2,976,199															783,883
						$						73,260,765									$						69,876,381

(Concluded)

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

c.    Retained earnings and dividend policy

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

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

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

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

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

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

- 48 -

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						Fourth Quarter												Third Quarter												Second Quarter												First Quarter
Resolution Date of TSMC’s						of 2023												of 2023												of 2023												of 2023
Board of Directors in its						February 6,												November 14,												August 8,												May 9,
meeting						2024												2023												2023												2023
Special capital reserve						$			28,020,822									$			(17,228,363			)						$			(6,365,562			)						$			3,273,452
Cash dividends to shareholders						$			90,762,248									$			90,762,248									$			77,796,213									$			77,796,213
Cash dividends per share (NT$)						$			3.50									$			3.50									$			3.00									$			3.00

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

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

d.    Others

Changes in others were as follows:

						Year Ended December 31, 2024
						Foreign Currency Translation Reserve															Unrealized Gain (Loss) on Financial Assets at FVTOCI															Gain (Loss) on Hedging Instruments															Unearned Stock-Based Employee Compensation															Total
Balance, beginning of year						$						(25,316,769			)						$						(4,099,928			)						$						1,395,875									$						(293,434			)						$						(28,314,256			)
Exchange differences arising on translation of foreign operations									64,502,658															-															-															-															64,502,658
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									-															5,078,380															-															-															5,078,380
Debt instruments									-															1,254,491															-															-															1,254,491
Disposal of investments in equity instruments at fair value through other comprehensive income									-															(4,009,066						)									-															-															(4,009,066						)
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal									-															683,117															-															-															683,117
Loss allowance adjustments from debt instruments									-															12,257															-															-															12,257
Gain (loss) arising on changes in the fair value of hedging instruments and hedged item affects profit or loss									-															-															(75,157						)									-															(75,157						)
Transferred to initial carrying amount of hedged items									-															-															141															-															141
Issuance of employee restricted stock									-															-															-															(2,637,387						)									(2,637,387						)
Share-based payment expenses recognized									-															-															-															1,222,742															1,222,742
Share of other comprehensive income (loss) of associates									290,402															(69,431						)									(10,552						)									-															210,419
Other comprehensive income transferred to profit or loss due to decline of equity method									(7,126						)									-															-															-															(7,126						)
Income tax effect									-															(9,996						)									-															-															(9,996						)
Balance, end of year						$						40,262,995									$						(1,160,176			)						$						1,310,307									$						(1,708,079			)						$						38,705,047

- 49 -

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						Year Ended December 31, 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 year						$						(11,743,301			)						$						(10,056,353			)						$						1,479,181									$						(185,153			)						$						(20,505,626			)
Exchange differences arising on translation of foreign operations									(14,255,586						)									-															-															-															(14,255,586						)
Gain (loss) on hedging instruments designated as hedges of net investments in foreign operations									618,180															-															-															-															618,180
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments									-															1,953,138															-															-															1,953,138
Debt instruments									-															3,639,779															-															-															3,639,779
Disposal of investments in equity instruments at fair value through other comprehensive income									-															(151,944						)									-															-															(151,944						)
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal									-															473,897															-															-															473,897
Loss allowance adjustments from debt instruments									-															9,525															-															-															9,525
Gain (loss) arising on changes in the fair value of hedging instruments and hedged item affects profit or loss									-															-															(34,837						)									-															(34,837						)
Transferred to initial carrying amount of hedged items									-															-															(45,181						)									-															(45,181						)
Issuance of employee restricted stock									-															-															-															(585,968						)									(585,968						)
Share-based payment expenses recognized									-															-															-															477,687															477,687
Share of other comprehensive income (loss) of associates									63,938															32,055															(3,288						)									-															92,705
Income tax effect									-															(25						)									-															-															(25						)
Balance, end of year						$						(25,316,769			)						$						(4,099,928			)						$						1,395,875									$						(293,434			)						$						(28,314,256			)

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

e.    Treasury stock

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

21.    NET REVENUE

a.    Disaggregation of revenue from contracts with customers

						Years Ended December 31
Product						2024															2023
Wafer						$						2,514,461,292									$						1,882,518,080
Others									379,846,407															279,217,761
						$						2,894,307,699									$						2,161,735,841

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						Years Ended December 31
Geography						2024															2023
Taiwan						$						270,413,546									$						149,777,343
United States									1,992,280,443															1,408,841,921
China									331,673,315															267,154,140
Japan									144,239,882															132,072,000
Europe, the Middle East and Africa									102,760,879															117,348,237
Others									52,939,634															86,542,200
						$						2,894,307,699									$						2,161,735,841

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

						Years Ended December 31
Platform						2024															2023
High Performance Computing						$						1,476,890,566									$						934,768,625
Smartphone									1,005,130,484															814,914,287
Internet of Things									165,516,214															161,916,543
Automotive									139,323,096															133,654,276
Digital Consumer Electronics									47,960,415															46,999,803
Others									59,486,924															69,482,307
						$						2,894,307,699									$						2,161,735,841

						Years Ended December 31
Resolution						2024															2023
3-nanometer						$						459,530,166									$						108,045,275
5-nanometer									861,318,861															629,300,387
7-nanometer									416,790,303															357,270,697
16-nanometer									202,383,718															191,306,073
20-nanometer									4,077,241															10,359,042
28-nanometer									188,155,011															186,924,916
40/45-nanometer									108,468,215															114,667,360
65-nanometer									93,120,068															107,425,400
90-nanometer									21,509,306															25,642,010
0.11/0.13 micron									52,442,826															47,149,333
0.15/0.18 micron									90,796,791															86,614,213
0.25 micron and above									15,868,786															17,813,374
Wafer revenue						$						2,514,461,292									$						1,882,518,080

b.    Contract balances

						December 31, 2024												December 31, 2023												January 1, 2023
Contract liabilities (classified under accrued expenses and other current liabilities)						$			89,435,361									$			52,736,430									$			70,806,617

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

- 51 -

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

c.    Temporary receipts from customers

						December 31, 2024															December 31, 2023
Current portion (classified under accrued expenses and other current liabilities)						$						198,602,570									$						114,639,514
Noncurrent portion (classified under other noncurrent liabilities)									92,499,262															163,655,128
						$						291,101,832									$						278,294,642

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

d.    Refund liabilities

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

22.    INTEREST INCOME

						Years Ended December 31
						2024															2023
Interest income
Cash and cash equivalents						$						72,126,247									$						49,740,006
Financial assets at amortized cost									8,458,156															6,363,684
Financial assets at FVTOCI									6,628,996															4,190,211
						$						87,213,399									$						60,293,901

23.    FINANCE COSTS

						Years Ended December 31
						2024															2023
Interest expense
Corporate bonds						$						19,278,120									$						17,848,916
Lease liabilities									373,383															382,041
Bank loans									150,752															95,366
Others									3,352															2,755
Less: Capitalized interest under property, plant and equipment									(9,310,287						)									(6,329,718						)
						$						10,495,320									$						11,999,360

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Information about capitalized interest is as follows:

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

24.    OTHER GAINS AND LOSSES, NET

						Years Ended December 31
						2024															2023
Loss on disposal of financial assets, net
Investments in debt instruments at FVTOCI						$						(683,117			)						$						(473,897			)
Gain on disposal of investments accounted for using equity method, net									7,126															15,758
Gain (loss) on financial instruments at FVTPL, net
Mandatorily measured at FVTPL									(8,204,688						)									6,523,084
Provision for expected credit loss for financial assets
Investments in debt instruments at FVTOCI									(12,257						)									(9,525						)
Financial assets at amortized cost									(37,650						)									(26,220						)
Other gains, net									551,193															932,379
						$						(8,379,393			)						$						6,961,579

25.    INCOME TAX

a.    Income tax expense recognized in profit or loss

Income tax expense consisted of the following:

						Years Ended December 31
						2024															2023
Current income tax expense
Current tax expense recognized in the current year						$						238,079,019									$						136,931,127
Income tax adjustments for prior years									(7,229,862						)									92,331
Other income tax adjustments									371,403															244,358
									231,220,560															137,267,816
Deferred income tax expense
The origination and reversal of temporary differences									915,964															4,135,991
Income tax adjustments for prior years									3,925,320															-
Operating loss carryforward									(2,654,968						)									-
									2,186,316															4,135,991
Income tax expense recognized in profit or loss						$						233,406,876									$						141,403,807

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

						Years Ended December 31
						2024															2023
Income before tax						$						1,405,838,635									$						979,171,324
Income tax expense at the statutory rate						$						280,827,733									$						197,906,699
Tax effect of adjusting items:
Adjusting items in determining taxable income									(5,647,246						)									(7,613,159						)
Additional income tax on unappropriated earnings									6,483,623															9,468,943
Unrecognized deductible temporary differences									729,232															-
Unrecognized operating loss carryforward									2,263,127															-
The origination and reversal of temporary differences									915,964															3,210,032
Operating loss carryforward									(2,654,968						)									-
Income tax credits									(46,577,450						)									(61,905,397						)
									236,340,015															141,067,118
Income tax adjustments for prior years									(3,304,542						)									92,331
Other income tax adjustments									371,403															244,358
Income tax expense recognized in profit or loss						$						233,406,876									$						141,403,807

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

b.    Deferred income tax balance

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

						December 31, 2024															December 31, 2023
Deferred income tax assets
Temporary differences
Depreciation						$						33,319,836									$						41,094,712
Refund liability									13,274,374															9,414,971
Unrealized exchange losses									9,078,242															7,100,019
Unrealized loss on inventories									2,749,256															2,771,188
Net defined benefit liability									1,415,948															1,729,672
Deferred compensation cost									588,829															489,609
Others									2,902,370															1,575,616
Operating loss carryforward									2,614,445															-
						$						65,943,300									$						64,175,787
Deferred income tax liabilities
Temporary differences
Subsidiary’s projected earnings distribution						$						(3,925,320			)						$						-
Others									(63,162						)									(53,856						)
						$						(3,988,482			)						$						(53,856			)

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						Year Ended December 31, 2024
																					Recognized in
						Balance, Beginning of Year															Profit or Loss															Other Comprehensive Income															Effect of Exchange Rate Changes															Balance, End of Year
Deferred income tax assets
Temporary differences
Depreciation						$						41,094,712									$						(7,787,586			)						$						-									$						12,710									$						33,319,836
Refund liability									9,414,971															3,856,774															-															2,629															13,274,374
Unrealized exchange losses									7,100,019															1,978,223															-															-															9,078,242
Unrealized loss on inventories									2,771,188															(25,966						)									-															4,034															2,749,256
Net defined benefit liability									1,729,672															(284,851						)									(28,873						)									-															1,415,948
Deferred compensation cost									489,609															66,055															-															33,165															588,829
Others									1,575,616															1,289,799															(9,996						)									46,951															2,902,370
Operating loss carryforward									-															2,654,968															-															(40,523						)									2,614,445
						$						64,175,787									$						1,747,416									$						(38,869			)						$						58,966									$						65,943,300
Deferred income tax liabilities
Temporary differences
Subsidiary’s projected earnings distribution						$						-									$						(3,925,320			)						$						-									$						-									$						(3,925,320			)
Others									(53,856						)									(8,412						)									-															(894						)									(63,162						)
						$						(53,856			)						$						(3,933,732			)						$						-									$						(894			)						$						(3,988,482			)

						Year Ended December 31, 2023
																					Recognized in
						Balance, Beginning of Year															Profit or Loss															Other Comprehensive Income															Effect of Exchange Rate Changes															Balance, End of Year
Deferred income tax assets
Temporary differences
Depreciation						$						45,299,310									$						(4,197,221			)						$						-									$						(7,377			)						$						41,094,712
Refund liability									12,089,451															(2,673,474						)									-															(1,006						)									9,414,971
Unrealized exchange losses									5,782,345															1,317,674															-															-															7,100,019
Unrealized loss on inventories									2,305,328															466,186															-															(326						)									2,771,188
Net defined benefit liability									1,722,005															(117,004						)									124,671															-															1,729,672
Deferred compensation cost									361,241															129,852															-															(1,484						)									489,609
Others									1,626,162															(38,825						)									(25						)									(11,696						)									1,575,616
						$						69,185,842									$						(5,112,812			)						$						124,646									$						(21,889			)						$						64,175,787
Deferred income tax liabilities
Temporary differences
Others						$						(1,031,383			)						$						976,821									$						-									$						706									$						(53,856			)

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

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

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

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

e.    Income tax examination

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

26.    EARNINGS PER SHARE

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

EPS is computed as follows:

						Years Ended December 31
						2024															2023
Basic EPS
Net income available to common shareholders of the parent						$						1,173,267,703									$						838,497,664
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)									25,927,556															25,929,223
Basic EPS (in dollars)						$						45.25									$						32.34
Diluted EPS
Net income available to common shareholders of the parent						$						1,173,267,703									$						838,497,664
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)									25,927,556															25,929,223
Effects of all dilutive potential common shares (in thousands)									2,089															44
Weighted average number of common shares used in the computation of diluted EPS (in thousands)									25,929,645															25,929,267
Diluted EPS (in dollars)						$						45.25									$						32.34

27.    SHARE-BASED PAYMENT ARRANGEMENTS

a.    Equity-settled share-based payment-RSAs

The RSAs in each year are as follows:

2024 RSAs

2023 RSAs

2022 RSAs

2021 RSAs

Resolution Date of TSMC’s shareholders in its meeting

June 4, 2024

June 6, 2023

June 8, 2022

July 26, 2021

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

August 13, 2024

February 6, 2024

February 14, 2023

February 15, 2022

Issuance of stocks (in thousands)

2,353

2,960

2,110

1,387

Available for issuance (in thousands)

1,832

-

-

-

Eligible employees

Executive officers

Executive officers

Executive officers

Executive officers

Grant date/Issuance date

September 1, 2024

March 1, 2024

March 1, 2023

March 1, 2022

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Vesting conditions of the aforementioned arrangement are as follow:

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

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

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

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

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

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

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

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

						2024 RSAs															2023 RSAs															2022 RSAs															2021 RSAs
						September 1, 2024															March 1, 2024															March 1, 2023															March 1, 2022
Stock price at measurement date (in dollars)						$						944									$						689									$						511									$						604
Expected price volatility									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 28 for the compensation costs of the RSAs recognized by TSMC.

b.    Cash-settled share-based payment arrangements

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

2023 Plan

2022 Plan

2021 Plan

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

February 6, 2024

February 14, 2023

February 15, 2022

Issuance of units (in thousands) (Note)

550

400

236

Grant date

March 1, 2024

March 1, 2023

March 1, 2022

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

The vesting conditions and the ratio of units to be vested for key management personnel of the plan are the same as the aforementioned RSAs.

The fair value of compensation costs for the cash-settled share-based payment was measured by using binominal tree approach and will be measured at each reporting period until settlement. Relevant information is as follows:

						Years Ended December 31
						2024																																													2023
						2023 Plan															2022 Plan															2021 Plan															2022 Plan															2021 Plan
Stock price at measurement date (in dollars)						$						1,090									$						1,090									$						1,090									$						593									$						593
Expected price volatility									25.61%-30.78%															25.61%-30.78%															25.61%-30.78%															24.76%-29.05%															24.76%-29.05%
Residual life									1-3 years															1-2 years															1 years															1-3 years															1-2 years
Risk-free interest rate									1.45%															1.41%															1.37%															1.15%															1.14%

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

28.    ADDITIONAL INFORMATION OF EXPENSES BY NATURE

						Years Ended December 31
						2024															2023
a.    Depreciation of property, plant and equipment and right-of-use assets
Recognized in cost of revenue						$						616,390,408									$						492,827,379
Recognized in operating expenses									37,190,415															30,097,805
Recognized in other operating income and expenses									29,663															7,487
						$						653,610,486									$						522,932,671

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						Years Ended December 31
						2024															2023
b.    Amortization of intangible assets
Recognized in cost of revenue						$						6,342,310									$						6,538,107
Recognized in operating expenses									2,843,839															2,720,143
						$						9,186,149									$						9,258,250
c.    Employee benefits expenses
Post-employment benefits
Defined contribution plans						$						5,932,269									$						5,365,458
Defined benefit plans									275,680															281,392
									6,207,949															5,646,850
Share-based payments
Equity-settled									1,242,719															483,050
Cash-settled									403,486															61,329
									1,646,205															544,379
Other employee benefits									293,967,896															233,517,335
						$						301,822,050									$						239,708,564
Employee benefits expense summarized by function
Recognized in cost of revenue						$						163,657,133									$						133,334,667
Recognized in operating expenses									138,164,917															106,373,897
						$						301,822,050									$						239,708,564

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

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

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

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

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

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

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

29.    GOVERNMENT GRANTS

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

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

30.    CASH FLOW INFORMATION

a.    Non-cash transactions

						Years Ended December 31
						2024															2023
Additions of financial assets at FVTOCI						$						88,415,880									$						62,779,060
Discontinuation of significant influence from investment accounted for using the equity method									-															(10,728						)
Conversion of convertible bonds into equity securities									(387,592						)									(145,144						)
Changes in accrued expenses and other current liabilities									(240,767						)									128,814
Payments for acquisition of financial assets at FVTOCI						$						87,787,521									$						62,752,002
Disposal of financial assets at FVTOCI						$						67,560,138									$						35,346,897
Changes in other financial assets									124,418															351,678
Proceeds from disposal of financial assets at FVTOCI						$						67,684,556									$						35,698,575
Additions of property, plant and equipment						$						798,507,337									$						897,557,179
Changes in other receivables									140,289,660															44,431
Exchange of assets									(109,273						)									(78,034						)
Changes in payables to contractors and equipment suppliers									(17,988,093						)									40,750,228
Changes in accrued expenses and other current liabilities									44,612,151															17,832,841
Transferred to initial carrying amount of hedged items									5,041															39,898
Capitalized interests									(9,310,287						)									(6,329,718						)
Payments for acquisition of property, plant and equipment						$						956,006,536									$						949,816,825

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b.    Reconciliation of liabilities arising from financing activities

																																				Non-cash Changes
						Balance as of January 1, 2024															Financing Cash Flow															Foreign Exchange Movement															Leases Modifications															Other Changes (Note)															Balance as of December 31, 2024
Hedging financial liabilities- bank loans						$						27,290,400									$						(26,496,570			)						$						(793,830			)						$						-									$						-									$						-
Bonds payable									920,897,553															27,264,319															35,202,758															-															387,755															983,752,385
Long-term bank loans									6,678,521															28,601,444															(763,608						)									-															18,029															34,534,386
Lease liabilities									31,492,386															(3,348,977						)									940															3,286,642															373,383															31,804,374
Total						$						986,358,860									$						26,020,216									$						33,646,260									$						3,286,642									$						779,167									$						1,050,091,145

																																				Non-cash Changes
						Balance as of January 1, 2023															Financing Cash Flow															Foreign Exchange Movement															Leases Modifications															Other Changes (Note)															Balance as of December 31, 2023
Hedging financial liabilities- bank loans						$						-									$						27,908,580									$						(618,180			)						$						-									$						-									$						27,290,400
Bonds payable									852,436,439															67,511,319															587,758															-															362,037															920,897,553
Long-term bank loans									5,973,936															693,056															-															-															11,529															6,678,521
Lease liabilities									32,367,601															(3,228,219						)									(31,765						)									2,002,728															382,041															31,492,386
Total						$						890,777,976									$						92,884,736									$						(62,187			)						$						2,002,728									$						755,607									$						986,358,860

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

31.    CAPITAL MANAGEMENT

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

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

32.    FINANCIAL INSTRUMENTS

a.    Categories of financial instruments

						December 31, 2024															December 31, 2023
Financial assets
FVTPL (Note 1)						$						15,407,542									$						14,342,093
FVTOCI (Note 2)									205,938,125															167,150,802
Hedging financial assets									10,959															-
Amortized cost (Note 3)									2,721,319,255															1,842,412,631
						$						2,942,675,881									$						2,023,905,526
Financial liabilities
FVTPL (Note 4)						$						466,539									$						121,412
Hedging financial liabilities									-															27,334,164
Amortized cost (Note 5)									1,963,297,264															1,741,356,555
						$						1,963,763,803									$						1,768,812,131

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Note 1:    Financial assets mandatorily measured at FVTPL.

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

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

Note 4:    Held for trading.

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

b.    Financial risk management objectives

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

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

c.    Market risk

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

Foreign currency risk

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

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

Interest rate risk

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

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

Based on a sensitivity analysis performed on the Company’s fixed income investments at the end of the reporting period, interest rates increase of 100 basis points (1.00%) across all maturities would have decreased the Company’s other comprehensive income by NT$4,500,899 thousand and NT$3,841,994 thousand for the years ended December 31, 2024 and 2023, respectively.

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

Other price risk

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

Assuming a hypothetical decrease of 10% in prices of the investments mentioned above at the end of the reporting period, the net income would have decreased by NT$1,215,987 thousand and NT$1,073,397 thousand for the year ended December 31, 2024 and 2023, respectively, and the other comprehensive income would have decreased by NT$1,013,256 thousand and NT$954,925 thousand for the years ended December 31, 2024 and 2023, respectively.

d.    Credit risk management

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

Business related credit risk

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

As of December 31, 2024 and 2023, the Company’s ten largest customers accounted for 93% and 91% of accounts receivable, respectively. The Company considers the concentration of credit risk for the remaining accounts receivable not material.

Financial credit risk

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

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

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

Category

Description

Basis for Recognizing Expected Credit Loss

Expected Credit Loss Ratio

Performing

Credit rating is investment grade on valuation date

12 months expected credit loss

0-0.1%

Doubtful

Credit rating is non-investment grade on valuation date

Lifetime expected credit loss-not credit impaired

-

In default

Credit rating is CC or below on valuation date

Lifetime expected credit loss-credit impaired

-

Write-off

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

Amount is written off

-

For the years ended December 31, 2024 and 2023, the expected credit loss increased NT$58,477 thousand and NT$35,751 thousand, respectively. The changes were mainly due to adjusted investment portfolio and fluctuations in exchange rates.

e.    Liquidity risk management

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

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

						Less Than 1 Year															1-3 Years															3-5 Years															More Than 5 Years															Total
December 31, 2024
Non-derivative financial liabilities
Accounts payable (including related parties)						$						74,226,559									$						-									$						-									$						-									$						74,226,559
Payables to contractors and equipment suppliers									192,635,173															-															-															-															192,635,173
Accrued expenses and other current liabilities									358,165,686															-															-															-															358,165,686
Bonds payable									76,460,812															335,240,849															197,389,127															587,602,550															1,196,693,338
Long-term bank loans									2,935,154															2,275,524															27,044,881															3,151,180															35,406,739
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)									3,483,523															5,794,816															4,826,752															20,782,694															34,887,785
Others									-															86,979,515															11,737,085															-															98,716,600
									707,906,907															430,290,704															240,997,845															611,536,424															1,990,731,880

(Continued)

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						Less Than 1 Year															1-3 Years															3-5 Years															More Than 5 Years															Total
Derivative financial instruments
Forward exchange contracts
Outflows						$						109,525,448									$						-									$						-									$						-									$						109,525,448
Inflows									(109,251,526						)									-															-															-															(109,251,526						)
									273,922															-															-															-															273,922
						$						708,180,829									$						430,290,704									$						240,997,845									$						611,536,424									$						1,991,005,802
December 31, 2023
Non-derivative financial liabilities
Hedging financial liabilities-bank loans						$						27,290,400									$						-									$						-									$						-									$						27,290,400
Accounts payable (including related parties)									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

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

f.    Fair value of financial instruments

1)    Fair value measurements recognized in the consolidated balance sheets

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

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

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

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

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

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

Fair value hierarchy

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

						December 31, 2024
						Level 1															Level 2															Level 3															Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Convertible preferred stocks						$						-									$						-									$						14,181,839									$						14,181,839
Mutual funds									-															-															886,931															886,931
Forward exchange contracts									-															207,700															-															207,700
Simple agreement for future equity									-															-															131,072															131,072
						$						-									$						207,700									$						15,199,842									$						15,407,542
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds						$						-									$						108,612,082									$						-									$						108,612,082
Agency mortgage-backed securities									-															46,611,373															-															46,611,373
Government bonds/Agency bonds									20,645,877															-															-															20,645,877
Asset-backed securities									-															11,490,511															-															11,490,511
Investments in equity instruments
Non-publicly traded equity investments									-															-															7,822,884															7,822,884
Publicly traded stocks									4,842,814															-															-															4,842,814
Notes and accounts receivable, net									-															5,912,584															-															5,912,584
						$						25,488,691									$						172,626,550									$						7,822,884									$						205,938,125
Hedging financial assets
Fair value hedges
Interest rate futures contracts						$						10,959									$						-									$						-									$						10,959
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts						$						-									$						466,539									$						-									$						466,539

						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

(Continued)

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						December 31, 2023
						Level 1															Level 2															Level 3															Total
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds						$						-									$						79,605,567									$						-									$						79,605,567
Agency mortgage-backed securities									-															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

(Concluded)

Reconciliation of Level 3 fair value measurements of financial assets

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

						Years Ended December 31
						2024															2023
Balance, beginning of year						$						20,849,566									$						6,282,052
Additions									2,007,343															14,887,187
Recognized in profit or loss									(137,694						)									12,355
Recognized in other comprehensive income or loss									(499,041						)									262,380
Disposals and proceeds from return of capital of investments									(347,769						)									(127,963						)
Transfers out of level 3 (Note)									(164,860						)									-
Effect of exchange rate changes									1,315,181															(466,445						)
Balance, end of year						$						23,022,726									$						20,849,566

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

Valuation techniques and assumptions used in Level 2 fair value measurement

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

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

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

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

Valuation techniques and assumptions used in Level 3 fair value measurement

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

The asset approach takes into account the net asset value measured at the fair value by independent parties. On December 31, 2024 and 2023, the Company uses unobservable inputs derived from discount for lack of marketability of 10%. When other inputs remain equal, the fair value will decrease by NT$56,163 thousand and NT$52,704, respectively, if discounts for lack of marketability increase by 1%.

The income approach utilizes discounted cash flows to determine the present value of the expected future economic benefits that will be derived from the investment. On December 31, 2024, the Company mainly uses unobservable inputs, which include expected returns, discount rate of 8.6%, and discount for lack of marketability of 20%. On December 31, 2024, with other inputs remain equal, if discount rate increases by 1%, the fair value will decrease by NT$1,606,927 thousand; if discount for lack of marketability increases by 1%, the fair value will decrease by NT$140,819 thousand.

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

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

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

Fair value hierarchy

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

						December 31, 2024
						Carrying															Fair Value
						Amount															Level 1															Level 2															Total
Financial assets
Financial assets at amortized costs
Corporate bonds						$						171,980,179									$						-									$						172,518,474									$						172,518,474
Commercial paper									14,208,158															-															14,222,713															14,222,713
Government bonds/Agency bonds									4,379,527															4,353,434															-															4,353,434
						$						190,567,864									$						4,353,434									$						186,741,187									$						191,094,621
Financial liabilities
Financial liabilities at amortized costs
Bonds payable						$						983,752,385									$						-									$						900,344,663									$						900,344,663

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						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

Valuation techniques and assumptions used in Level 2 fair value measurement

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

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

33.    RELATED PARTY TRANSACTIONS

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

a.    Related party name and categories

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

b.    Net revenue

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

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c.    Purchases

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

d.    Receivables from related parties

												December 31, 2024															December 31, 2023
Item						Related Party Name
Receivables from related						VIS						$						626,638									$						-
parties						GUC									610,027															514,819
						Others									167,808															109,632
												$						1,404,473									$						624,451
Other receivables from related						SSMC						$						251									$						58,093
parties						VIS									-															13,778
												$						251									$						71,871

e.    Payables to related parties

												December 31, 2024															December 31, 2023
Item						Related Party Name
Payables to related parties						Xintec						$						987,992									$						1,020,226
						SSMC									308,424															457,348
						Others									129,585															88,726
												$						1,426,001									$						1,566,300

f.    Accrued expenses and other current liabilities

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

g.    Others

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

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

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

h.    Compensation of key management personnel

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

						Years Ended December 31
						2024															2023
Short-term employee benefits						$						4,447,508									$						3,492,258
Post-employment benefits									3,830															3,870
Share-based payments									1,357,432															525,808
						$						5,808,770									$						4,021,936

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

34.    PLEDGED ASSETS

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

35.    SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

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

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

b.    Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in Singapore. TSMC’s equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips spun-off its semiconductor subsidiary which was renamed as NXP B.V. Further, TSMC and NXP B.V. purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, TSMC and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. TSMC and NXP B.V. are required, in the aggregate, to purchase at least 70% of SSMC’s capacity, but TSMC alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a specific percentage of its capacity, the defaulting party is required to compensate

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SSMC for all related unavoidable costs. There was no default from the aforementioned commitment as of the end of reporting period.

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

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

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

f.    Amounts available under unused letters of credit as of December 31, 2024 and 2023 were NT$489,882 thousand and NT$433,994 thousand, respectively.

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

36.    SIGNIFICANT LOSS FROM DISASTER

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

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

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

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

						Foreign Currencies (In Thousands)															Exchange Rate (Note 1)												Carrying Amount (In Thousands)
December 31, 2024
Financial assets
Monetary items
USD						$						18,726,635												32.768									$						613,634,377
EUR									596,978															34.102												20,358,132
EUR									169,266															1.041			(Note2)									5,772,303
JPY									128,926,508															0.2092												26,971,425

(Continued)

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						Foreign Currencies (In Thousands)															Exchange Rate (Note 1)												Carrying Amount (In Thousands)
Financial liabilities
Monetary items
USD						$						16,255,804												32.768									$						532,670,186
EUR									821,105															34.102												28,001,335
EUR									168,550															1.041			(Note 2)									5,747,886
JPY									129,345,682															0.2092												27,059,117
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

(Concluded)

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

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

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

38.    ADDITIONAL DISCLOSURES

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

a.    Financings provided: See Table 1 attached;

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

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

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

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

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

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

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

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

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

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

l.    Information on investment in mainland China

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

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

m.    Information of major shareholders

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

39.    OPERATING SEGMENTS INFORMATION

a.    Operating segments, segment revenue and operating results

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

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

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

1)    Geographic information

						December 31,															December 31,
Noncurrent Assets						2024															2023
Taiwan						$						2,613,112,149									$						2,525,608,435
United States									541,836,347															420,093,092
Japan									126,600,621															94,558,890
China									82,405,764															97,268,882
Europe, the Middle East and Africa									19,150,044															146,247
Others									1,420															435
						$						3,383,106,345									$						3,137,675,981

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

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

						Years Ended December 31
						2024																											2023
						Amount															%												Amount															%
Customer A						$						624,345,477												22									$						546,550,925												25
Customer B									352,271,213															12												NA (Note)															NA
Customer C									NA (Note)															NA												241,152,357															11

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

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TABLE 1

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

FINANCINGS PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2024

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

No.			Financing Company			Counterparty			Financial Statement Account			Related Party			Maximum Balance for the Period (Foreign Currencies in Thousands) (Note 4)												Ending Balance (Foreign Currencies in Thousands) (Note 4)															Amount Actually Drawn (Foreign Currencies in Thousands)															Interest Rate			Nature for Financing			Transaction Amounts												Reason for Financing			Allowance for Bad Debt												Collateral															Financing Limits for Each Borrowing Company (Notes 1 to 3)												Financing Company’s Total Financing Amount Limits (Notes 1 to 3)
																																																																																										Item			Value
0			TSMC			TSMC Arizona			Other receivables from related parties			Yes			$						98,304,000						$						-									$						-									-			The need for short-term financing			$						-						Capacity installation and working capital			$						-						-			$						-						$						428,854,517						$						857,709,033
															(US$						3,000,000			)
1			TSMC China			TSMC Nanjing			Other receivables from related parties			Yes									54,256,720															41,685,000															26,939,400						1.30%-1.50%			The need for short-term and long-term financing						-									Operating capital						-									-						-												110,511,314												110,511,314
															(RMB						8,800,000			)&			(RMB									6,000,000			)&			(RMB									6,000,000			)
															(US$						450,000			)			(US$									450,000			)
2			TSMC Development			TSMC Washington			Other receivables from related parties			Yes									1,966,080															1,966,080															983,040						-			The need for short-term financing						-									Operating capital						-									-						-												35,183,067												35,183,067
															(US$						60,000			)			(US$									60,000			)			(US$									30,000			)

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

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

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

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

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TABLE 2

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2024

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

No.			Endorsement/ Guarantee Provider			Guaranteed Party						Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Notes 1 and 2)												Maximum Balance for the Period (Foreign Currencies in Thousands) (Note 3)												Ending Balance (Foreign Currencies in Thousands) (Note 3)												Amount Actually Drawn (US$ in Thousands)												Amount of Endorsement/ Guarantee Collateralized by Properties												Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements									Maximum Endorsement/ Guarantee Amount Allowable (Notes 1 and 2)												Guarantee Provided by Parent Company			Guarantee Provided by A Subsidiary			Guarantee Provided to Subsidiaries in Mainland China
						Name			Nature of Relationship
0			TSMC			TSMC North America			Subsidiary			$						1,715,418,067						$						2,726,733						$						2,726,733						$						2,726,733						$						-									0.06%						$						1,715,418,067						Yes			No			No
																								(US$						83,213			)			(US$						83,213			)			(US$						83,213			)
						TSMC Global			Subsidiary									1,715,418,067												245,760,000												245,760,000												245,760,000												-									5.73%												1,715,418,067						Yes			No			No
																								(US$						7,500,000			)			(US$						7,500,000			)			(US$						7,500,000			)
						TSMC Arizona			Subsidiary									1,715,418,067												470,136,259												470,136,259												312,358,339												-									10.96%												1,715,418,067						Yes			No			No
																								(US$						14,347,420			)			(US$						14,347,420			)			(US$						9,532,420			)
1			TSMC Japan			TSMC JDC			The same parent company						323,065															276,144												276,144												276,144									-												0.01%									323,065									No			No			No
																								(JPY						1,320,000			)			(JPY						1,320,000			)			(JPY						1,320,000			)

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

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

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

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TABLE 3

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

MARKETABLE SECURITIES HELD

DECEMBER 31, 2024 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																																Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)															Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC			Non-publicly traded equity investments
			United Industrial Gases Co., Ltd.			-			Financial assets at fair value through other comprehensive income						21,230						$						505,114												10						$						505,114
			Shin-Etsu Handotai Taiwan Co., Ltd.			-			〃						10,500									448,560															7									448,560
			Global Investment Holding Inc.			-			〃						10,442									104,673															6									104,673
			Commercial paper
			Cathay Financial Holding Co., Ltd.			-			Financial assets at amortized cost						924									9,185,663															N/A									9,195,051
			Formosa Chemicals & Fibre Corporation			-			〃						250									2,479,351															N/A									2,481,860
			China Steel Corporation			-			〃						120									1,197,878															N/A									1,199,118
			Formosa Plastics Corporation			-			〃						100									996,353															N/A									997,398
			Nan Ya Plastics Corporation			-			〃						35									348,913															N/A									349,286
TSMC Partners			Fund
			Carbon Nature SCSp			-			Financial assets at fair value through Profit or Loss						-						US$									11,413									18						US$									11,413
			Matter Venture Partners Fund I, L.P.			-			〃						-						US$									8,088									7						US$									8,088
			Imprint Nature-Based Opportunities Offshore SCSp			-			〃						-						US$									7,567									20						US$									7,567
			Non-publicly traded equity investments
			Shanghai Walden Venture Capital Partnership (Limited Partnership)			-			Financial assets at fair value through other comprehensive income						-						US$									20,014									6						US$									20,014
			Walden Technology Ventures Investments II, L.P.			-			〃						-						US$									13,512									9						US$									13,512
			Walden Technology Ventures Investments III, L.P.			-			〃						-						US$									11,688									4						US$									11,688
			Tela Innovations			-			〃						6,942						US$									-									22						US$									-
			Publicly traded stocks
			ARM Holdings plc			-			Financial assets at fair value through other comprehensive income						1,111						US$									137,026									-						US$									137,026
			Movella Holdings Inc.			-			〃						3,095						US$									62									6						US$									62
TSMC Global			Corporate bond
			Bank of America Corporation			-			Financial assets at fair value through other comprehensive income						-						US$									95,674									N/A						US$									95,674
			Morgan Stanley			-			〃						-						US$									87,312									N/A						US$									87,312
			Wells Fargo & Company			-			〃						-						US$									74,617									N/A						US$									74,617
			The Goldman Sachs Group, Inc.			-			〃						-						US$									73,642									N/A						US$									73,642
			JPMorgan Chase & Co.			-			〃						-						US$									72,101									N/A						US$									72,101
			Citigroup Inc.			-			〃						-						US$									56,810									N/A						US$									56,810
			HSBC Holdings plc			-			〃						-						US$									52,845									N/A						US$									52,845
			Hyundai Capital America			-			〃						-						US$									39,105									N/A						US$									39,105
			BNP Paribas SA			-			〃						-						US$									38,517									N/A						US$									38,517
			Lloyds Banking Group plc			-			〃						-						US$									36,440									N/A						US$									36,440
			Sumitomo Mitsui Trust Bank, Limited			-			〃						-						US$									36,329									N/A						US$									36,329
			Barclays PLC			-			〃						-						US$									35,715									N/A						US$									35,715
			Nationwide Building Society			-			〃						-						US$									35,644									N/A						US$									35,644

(Continued)

- 78 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			NatWest Group plc			-			Financial assets at fair value through other comprehensive income						-						US$						34,193									N/A						US$						34,193
			Principal Life Global Funding II			-			〃						-						US$						33,881									N/A						US$						33,881
			American Express Company			-			〃						-						US$						31,036									N/A						US$						31,036
			Banco Santander, S.A.			-			〃						-						US$						30,804									N/A						US$						30,804
			BPCE SA			-			〃						-						US$						30,045									N/A						US$						30,045
			Toyota Motor Credit Corporation			-			〃						-						US$						29,997									N/A						US$						29,997
			Credit Agricole SA London Branch			-			〃						-						US$						28,366									N/A						US$						28,366
			Sumitomo Mitsui Financial Group, Inc.			-			〃						-						US$						26,118									N/A						US$						26,118
			AIG Global Funding			-			〃						-						US$						25,521									N/A						US$						25,521
			Athene Global Funding			-			〃						-						US$						24,758									N/A						US$						24,758
			COÖPERATIEVE RABOBANK U.A., NEW YORK BRANCH			-			〃						-						US$						24,228									N/A						US$						24,228
			Deutsche Bank AG - New York Branch			-			〃						-						US$						23,782									N/A						US$						23,782
			The Toronto-Dominion Bank			-			〃						-						US$						23,563									N/A						US$						23,563
			Penske Truck Leasing Co., L.P.			-			〃						-						US$						23,519									N/A						US$						23,519
			Volkswagen Group of America Finance, LLC			-			〃						-						US$						22,284									N/A						US$						22,284
			Banque Fédérative du Crédit Mutuel			-			〃						-						US$						21,960									N/A						US$						21,960
			Equitable Financial Life Global Funding			-			〃						-						US$						21,840									N/A						US$						21,840
			Glencore Funding LLC			-			〃						-						US$						21,086									N/A						US$						21,086
			Royal Bank of Canada			-			〃						-						US$						20,863									N/A						US$						20,863
			Capital One Financial Corporation			-			〃						-						US$						20,724									N/A						US$						20,724
			General Motors Financial Company, Inc.			-			〃						-						US$						20,625									N/A						US$						20,625
			The Bank of Nova Scotia			-			〃						-						US$						20,432									N/A						US$						20,432
			Bunge Limited Finance Corp.			-			〃						-						US$						20,202									N/A						US$						20,202
			Danske Bank A/S			-			〃						-						US$						20,157									N/A						US$						20,157
			RGA Global Funding			-			〃						-						US$						19,988									N/A						US$						19,988
			ABN AMRO Bank N.V.			-			〃						-						US$						19,540									N/A						US$						19,540
			Daimler Trucks Finance North America LLC			-			〃						-						US$						19,288									N/A						US$						19,288
			Bank of Montreal			-			〃						-						US$						18,228									N/A						US$						18,228
			UnitedHealth Group Incorporated			-			〃						-						US$						18,151									N/A						US$						18,151
			Mitsubishi UFJ Financial Group, Inc.			-			〃						-						US$						18,083									N/A						US$						18,083
			Guardian Life Global Funding			-			〃						-						US$						17,817									N/A						US$						17,817
			Metropolitan Life Global Funding I			-			〃						-						US$						17,734									N/A						US$						17,734
			Fédération des caisses Desjardins du Québec			-			〃						-						US$						17,415									N/A						US$						17,415
			Enel Finance International N.V.			-			〃						-						US$						17,065									N/A						US$						17,065
			NatWest Markets Plc			-			〃						-						US$						16,386									N/A						US$						16,386
			Coöperatieve Rabobank U.A.			-			〃						-						US$						16,173									N/A						US$						16,173
			Mizuho Financial Group, Inc.			-			〃						-						US$						15,789									N/A						US$						15,789
			NTT Finance Corporation			-			〃						-						US$						15,768									N/A						US$						15,768
			CNO Global Funding			-			〃						-						US$						15,565									N/A						US$						15,565
			Marsh & McLennan Companies, Inc.			-			〃						-						US$						15,564									N/A						US$						15,564
			Ryder System, Inc.			-			〃						-						US$						15,551									N/A						US$						15,551
			UBS Group AG			-			〃						-						US$						15,481									N/A						US$						15,481
			U.S. Bancorp.			-			〃						-						US$						15,440									N/A						US$						15,440
			Roper Technologies, Inc.			-			〃						-						US$						15,407									N/A						US$						15,407
			Northwestern Mutual Global Funding			-			〃						-						US$						15,298									N/A						US$						15,298
			New York Life Global Funding			-			〃						-						US$						14,993									N/A						US$						14,993
			NextEra Energy Capital Holdings, Inc.			-			〃						-						US$						14,664									N/A						US$						14,664
			BMW US Capital, LLC			-			〃						-						US$						14,519									N/A						US$						14,519
			T-Mobile USA, Inc.			-			〃						-						US$						14,433									N/A						US$						14,433
			Protective Life Global Funding			-			〃						-						US$						14,389									N/A						US$						14,389
			Philip Morris International Inc.			-			〃						-						US$						14,276									N/A						US$						14,276
			Quest Diagnostics Incorporated			-			〃						-						US$						14,196									N/A						US$						14,196

(Continued)

- 79 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			Santander Holdings USA, Inc.			-			Financial assets at fair value through other comprehensive income						-						US$						14,143									N/A						US$						14,143
			AerCap Ireland Capital Designated Activity Company			-			〃						-						US$						13,986									N/A						US$						13,986
			National Securities Clearing Corporation			-			〃						-						US$						13,895									N/A						US$						13,895
			SMBC Aviation Capital Finance DAC			-			〃						-						US$						13,873									N/A						US$						13,873
			Oracle Corporation			-			〃						-						US$						13,824									N/A						US$						13,824
			Macquarie Bank Limited			-			〃						-						US$						13,650									N/A						US$						13,650
			ING Groep N.V.			-			〃						-						US$						13,616									N/A						US$						13,616
			Nomura Holdings, Inc.			-			〃						-						US$						13,356									N/A						US$						13,356
			Truist Financial Corporation			-			〃						-						US$						13,328									N/A						US$						13,328
			Standard Chartered PLC			-			〃						-						US$						13,218									N/A						US$						13,218
			Mercedes-Benz Finance North America LLC			-			〃						-						US$						13,022									N/A						US$						13,022
			Southern California Edison Company			-			〃						-						US$						12,981									N/A						US$						12,981
			Amphenol Corporation			-			〃						-						US$						12,833									N/A						US$						12,833
			American Honda Finance Corporation			-			〃						-						US$						12,774									N/A						US$						12,774
			Jackson National Life Global Funding			-			〃						-						US$						12,563									N/A						US$						12,563
			ONEOK, Inc.			-			〃						-						US$						12,550									N/A						US$						12,550
			The Bank of New York Mellon Corporation			-			〃						-						US$						12,428									N/A						US$						12,428
			BAE Systems plc			-			〃						-						US$						12,425									N/A						US$						12,425
			Equifax Inc.			-			〃						-						US$						12,106									N/A						US$						12,106
			Amazon.com, Inc.			-			〃						-						US$						11,676									N/A						US$						11,676
			Bristol-Myers Squibb Company			-			〃						-						US$						11,585									N/A						US$						11,585
			Swedbank AB (publ)			-			〃						-						US$						11,541									N/A						US$						11,541
			AT&T Inc.			-			〃						-						US$						11,326									N/A						US$						11,326
			Elevance Health, Inc.			-			〃						-						US$						11,154									N/A						US$						11,154
			Prologis Targeted U.S. Logistics Fund L.P.			-			〃						-						US$						11,127									N/A						US$						11,127
			MassMutual Global Funding II			-			〃						-						US$						10,851									N/A						US$						10,851
			S&P Global Inc.			-			〃						-						US$						10,723									N/A						US$						10,723
			Apple Inc.			-			〃						-						US$						10,721									N/A						US$						10,721
			DTE Energy Company			-			〃						-						US$						10,651									N/A						US$						10,651
			National Rural Utilities Cooperative Finance Corporation			-			〃						-						US$						10,402									N/A						US$						10,402
			Svenska Handelsbanken AB (publ)			-			〃						-						US$						10,026									N/A						US$						10,026
			Canadian Imperial Bank of Commerce			-			〃						-						US$						10,020									N/A						US$						10,020
			Nordea Bank Abp			-			〃						-						US$						9,873									N/A						US$						9,873
			Hewlett Packard Enterprise Company			-			〃						-						US$						9,766									N/A						US$						9,766
			Enbridge Inc.			-			〃						-						US$						9,712									N/A						US$						9,712
			Mutual Of Omaha Companies Global Funding			-			〃						-						US$						9,552									N/A						US$						9,552
			Citibank, N.A.			-			〃						-						US$						9,495									N/A						US$						9,495
			LSEG US Fin Corp.			-			〃						-						US$						9,091									N/A						US$						9,091
			Realty Income Corporation			-			〃						-						US$						9,079									N/A						US$						9,079
			Florida Power & Light Company			-			〃						-						US$						9,072									N/A						US$						9,072
			Public Service Enterprise Group Incorporated			-			〃						-						US$						9,018									N/A						US$						9,018
			Accenture Capital Inc.			-			〃						-						US$						8,979									N/A						US$						8,979
			Amgen Inc.			-			〃						-						US$						8,890									N/A						US$						8,890
			Equinor ASA			-			〃						-						US$						8,823									N/A						US$						8,823
			Morgan Stanley Bank, N.A.			-			〃						-						US$						8,542									N/A						US$						8,542
			Haleon US Capital LLC			-			〃						-						US$						8,541									N/A						US$						8,541
			Pioneer Natural Resources Company			-			〃						-						US$						8,457									N/A						US$						8,457
			Pfizer Investment Enterprises Pte. Ltd.			-			〃						-						US$						8,329									N/A						US$						8,329
			Intel Corporation			-			〃						-						US$						8,311									N/A						US$						8,311
			Goldman Sachs Bank USA			-			〃						-						US$						8,272									N/A						US$						8,272
			KfW			-			〃						-						US$						8,145									N/A						US$						8,145
			Lowe's Companies, Inc.			-			〃						-						US$						8,137									N/A						US$						8,137

(Continued)

- 80 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			Kimco Realty Corporation			-			Financial assets at fair value through other comprehensive income						-						US$						8,060									N/A						US$						8,060
			Aon North America, Inc.			-			〃						-						US$						8,039									N/A						US$						8,039
			ConocoPhillips Company			-			〃						-						US$						8,021									N/A						US$						8,021
			Tampa Electric Company			-			〃						-						US$						8,000									N/A						US$						8,000
			DNB Bank ASA			-			〃						-						US$						7,986									N/A						US$						7,986
			Santander UK Group Holdings plc			-			〃						-						US$						7,928									N/A						US$						7,928
			META PLATFORMS INC			-			〃						-						US$						7,908									N/A						US$						7,908
			Constellation Energy Generation, LLC			-			〃						-						US$						7,831									N/A						US$						7,831
			Macquarie Group Limited			-			〃						-						US$						7,831									N/A						US$						7,831
			Intuit Inc.			-			〃						-						US$						7,658									N/A						US$						7,658
			Roche Holdings, Inc.			-			〃						-						US$						7,631									N/A						US$						7,631
			ERAC USA Finance LLC			-			〃						-						US$						7,574									N/A						US$						7,574
			Chevron Corporation			-			〃						-						US$						7,262									N/A						US$						7,262
			Johnson & Johnson			-			〃						-						US$						7,130									N/A						US$						7,130
			Pacific Gas and Electric Company			-			〃						-						US$						7,087									N/A						US$						7,087
			Bank of Ireland Group plc			-			〃						-						US$						7,066									N/A						US$						7,066
			McKesson Corporation			-			〃						-						US$						7,027									N/A						US$						7,027
			Intercontinental Exchange, Inc.			-			〃						-						US$						7,008									N/A						US$						7,008
			KBC Group NV			-			〃						-						US$						6,986									N/A						US$						6,986
			AstraZeneca Finance LLC			-			〃						-						US$						6,963									N/A						US$						6,963
			Great-West Lifeco U.S. Finance 2020, Lp			-			〃						-						US$						6,916									N/A						US$						6,916
			Cox Communications, Inc.			-			〃						-						US$						6,915									N/A						US$						6,915
			Exelon Corporation			-			〃						-						US$						6,885									N/A						US$						6,885
			Keurig Dr Pepper Inc.			-			〃						-						US$						6,880									N/A						US$						6,880
			Consumers Energy Company			-			〃						-						US$						6,792									N/A						US$						6,792
			The East Ohio Gas Company			-			〃						-						US$						6,767									N/A						US$						6,767
			Pacific Life Global Funding II			-			〃						-						US$						6,634									N/A						US$						6,634
			Fidelity National Information Services, Inc.			-			〃						-						US$						6,632									N/A						US$						6,632
			The Cigna Group			-			〃						-						US$						6,595									N/A						US$						6,595
			The Charles Schwab Corporation			-			〃						-						US$						6,586									N/A						US$						6,586
			Health Care Service Corporation, a Mutual Legal Reserve Company			-			〃						-						US$						6,345									N/A						US$						6,345
			Take-Two Interactive Software, Inc.			-			〃						-						US$						6,273									N/A						US$						6,273
			Fiserv, Inc.			-			〃						-						US$						6,242									N/A						US$						6,242
			WEC Energy Group, Inc.			-			〃						-						US$						6,224									N/A						US$						6,224
			Empower Finance 2020, LP			-			〃						-						US$						6,176									N/A						US$						6,176
			Eaton Corporation			-			〃						-						US$						6,162									N/A						US$						6,162
			Schlumberger Holdings Corporation			-			〃						-						US$						5,909									N/A						US$						5,909
			NBN Co Limited			-			〃						-						US$						5,817									N/A						US$						5,817
			Scentre Group Trust 1			-			〃						-						US$						5,811									N/A						US$						5,811
			NiSource Inc.			-			〃						-						US$						5,795									N/A						US$						5,795
			HEICO Corporation			-			〃						-						US$						5,773									N/A						US$						5,773
			Lockheed Martin Corporation			-			〃						-						US$						5,764									N/A						US$						5,764
			National Bank of Canada			-			〃						-						US$						5,749									N/A						US$						5,749
			Thermo Fisher Scientific Inc.			-			〃						-						US$						5,737									N/A						US$						5,737
			ASB Bank Limited			-			〃						-						US$						5,666									N/A						US$						5,666
			The Williams Companies, Inc.			-			〃						-						US$						5,613									N/A						US$						5,613
			Ingersoll Rand Inc.			-			〃						-						US$						5,594									N/A						US$						5,594
			Cencora, Inc.			-			〃						-						US$						5,546									N/A						US$						5,546
			Marriott International, Inc.			-			〃						-						US$						5,525									N/A						US$						5,525
			RTX Corporation			-			〃						-						US$						5,491									N/A						US$						5,491
			MPLX LP			-			〃						-						US$						5,401									N/A						US$						5,401

(Continued)

- 81 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			Starbucks Corporation			-			Financial assets at fair value through other comprehensive income						-						US$						5,351									N/A						US$						5,351
			Stryker Corporation			-			〃						-						US$						5,329									N/A						US$						5,329
			Sydney Airport Finance Company Pty Ltd			-			〃						-						US$						5,253									N/A						US$						5,253
			AstraZeneca PLC			-			〃						-						US$						5,135									N/A						US$						5,135
			Virginia Electric and Power Company			-			〃						-						US$						5,110									N/A						US$						5,110
			Newmont Corporation			-			〃						-						US$						5,099									N/A						US$						5,099
			CGI Inc.			-			〃						-						US$						5,055									N/A						US$						5,055
			John Deere Capital Corporation			-			〃						-						US$						5,033									N/A						US$						5,033
			Merck & Co., Inc.			-			〃						-						US$						5,033									N/A						US$						5,033
			Smith & Nephew plc			-			〃						-						US$						5,033									N/A						US$						5,033
			Southwest Airlines Co.			-			〃						-						US$						5,017									N/A						US$						5,017
			NATIONAL SECURITIES CLEARING CORP			-			〃						-						US$						5,007									N/A						US$						5,007
			Mizuho Markets Cayman LP			-			〃						-						US$						5,006									N/A						US$						5,006
			Bank of New Zealand			-			〃						-						US$						4,979									N/A						US$						4,979
			BorgWarner Inc.			-			〃						-						US$						4,975									N/A						US$						4,975
			Alabama Power Company			-			〃						-						US$						4,973									N/A						US$						4,973
			AbbVie Inc.			-			〃						-						US$						4,965									N/A						US$						4,965
			Brookfield Finance Inc.			-			〃						-						US$						4,868									N/A						US$						4,868
			Ameren Corporation			-			〃						-						US$						4,865									N/A						US$						4,865
			ANZ New Zealand (Int'l) Limited			-			〃						-						US$						4,844									N/A						US$						4,844
			ONE Gas, Inc.			-			〃						-						US$						4,817									N/A						US$						4,817
			HP Inc.			-			〃						-						US$						4,768									N/A						US$						4,768
			Deutsche Telekom International Finance B.V.			-			〃						-						US$						4,743									N/A						US$						4,743
			National Australia Bank Limited, New York Branch			-			〃						-						US$						4,680									N/A						US$						4,680
			Société Générale Société anonyme			-			〃						-						US$						4,618									N/A						US$						4,618
			Fifth Third Bancorp			-			〃						-						US$						4,601									N/A						US$						4,601
			Georgia Power Company			-			〃						-						US$						4,585									N/A						US$						4,585
			F&G Global Funding			-			〃						-						US$						4,572									N/A						US$						4,572
			GA Global Funding Trust			-			〃						-						US$						4,506									N/A						US$						4,506
			FirstEnergy Transmission, LLC			-			〃						-						US$						4,502									N/A						US$						4,502
			ITC Holdings Corp.			-			〃						-						US$						4,395									N/A						US$						4,395
			AutoZone, Inc.			-			〃						-						US$						4,354									N/A						US$						4,354
			State Street Corporation			-			〃						-						US$						4,324									N/A						US$						4,324
			Verizon Communications Inc.			-			〃						-						US$						4,171									N/A						US$						4,171
			Labcorp Holdings Inc.			-			〃						-						US$						4,129									N/A						US$						4,129
			AvalonBay Communities, Inc.			-			〃						-						US$						4,056									N/A						US$						4,056
			Aptiv PLC			-			〃						-						US$						4,055									N/A						US$						4,055
			Workday, Inc.			-			〃						-						US$						4,042									N/A						US$						4,042
			Korea Electric Power Corporation			-			〃						-						US$						4,023									N/A						US$						4,023
			Lincoln National Corporation			-			〃						-						US$						4,008									N/A						US$						4,008
			State Street Bank and Trust Company			-			〃						-						US$						3,996									N/A						US$						3,996
			Public Storage			-			〃						-						US$						3,979									N/A						US$						3,979
			Mid-Atlantic Interstate Transmission, LLC			-			〃						-						US$						3,970									N/A						US$						3,970
			Piedmont Natural Gas Company, Inc.			-			〃						-						US$						3,962									N/A						US$						3,962
			Schlumberger Investment SA			-			〃						-						US$						3,961									N/A						US$						3,961
			B.A.T. International Finance p.l.c.			-			〃						-						US$						3,930									N/A						US$						3,930
			Novartis Capital Corporation			-			〃						-						US$						3,894									N/A						US$						3,894
			GAIF Bond Issuer Pty Limited			-			〃						-						US$						3,890									N/A						US$						3,890
			Alliant Energy Finance, LLC			-			〃						-						US$						3,880									N/A						US$						3,880
			L3Harris Technologies, Inc.			-			〃						-						US$						3,868									N/A						US$						3,868
			Duke Energy Carolinas, LLC			-			〃						-						US$						3,844									N/A						US$						3,844
			Banco Bilbao Vizcaya Argentaria, S.A.			-			〃						-						US$						3,837									N/A						US$						3,837

(Continued)

- 82 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			Fortinet, Inc.			-			Financial assets at fair value through other comprehensive income						-						US$						3,824									N/A						US$						3,824
			CNH Industrial Capital LLC			-			〃						-						US$						3,814									N/A						US$						3,814
			Eli Lilly and Company			-			〃						-						US$						3,755									N/A						US$						3,755
			Alimentation Couche-Tard Inc.			-			〃						-						US$						3,700									N/A						US$						3,700
			Norsk Hydro ASA			-			〃						-						US$						3,595									N/A						US$						3,595
			Parker-Hannifin Corporation			-			〃						-						US$						3,565									N/A						US$						3,565
			Nutrien Ltd.			-			〃						-						US$						3,544									N/A						US$						3,544
			CenterPoint Energy Resources Corp.			-			〃						-						US$						3,490									N/A						US$						3,490
			Advocate Health & Hospitals Corporation			-			〃						-						US$						3,482									N/A						US$						3,482
			Burlington Northern Santa Fe, LLC			-			〃						-						US$						3,468									N/A						US$						3,468
			Magna International Inc.			-			〃						-						US$						3,460									N/A						US$						3,460
			Kellanova			-			〃						-						US$						3,444									N/A						US$						3,444
			Pfizer Inc.			-			〃						-						US$						3,416									N/A						US$						3,416
			Sempra			-			〃						-						US$						3,414									N/A						US$						3,414
			Meta Platforms, Inc.			-			〃						-						US$						3,390									N/A						US$						3,390
			Comcast Corporation			-			〃						-						US$						3,354									N/A						US$						3,354
			Chubb INA Holdings LLC			-			〃						-						US$						3,343									N/A						US$						3,343
			Cisco Systems, Inc.			-			〃						-						US$						3,317									N/A						US$						3,317
			DuPont de Nemours, Inc.			-			〃						-						US$						3,181									N/A						US$						3,181
			Wisconsin Electric Power Company			-			〃						-						US$						3,175									N/A						US$						3,175
			Corebridge Financial, Inc.			-			〃						-						US$						3,160									N/A						US$						3,160
			Republic Services, Inc.			-			〃						-						US$						3,158									N/A						US$						3,158
			UBS AG, London Branch			-			〃						-						US$						3,145									N/A						US$						3,145
			Anheuser-Busch Companies, LLC			-			〃						-						US$						3,120									N/A						US$						3,120
			Microchip Technology Incorporated			-			〃						-						US$						3,120									N/A						US$						3,120
			Nestlé Holdings, Inc.			-			〃						-						US$						3,100									N/A						US$						3,100
			Atmos Energy Corporation			-			〃						-						US$						3,074									N/A						US$						3,074
			Tyco Electronics Group S.A.			-			〃						-						US$						3,070									N/A						US$						3,070
			Duke Energy Corporation			-			〃						-						US$						3,068									N/A						US$						3,068
			Met Tower Global Funding			-			〃						-						US$						3,043									N/A						US$						3,043
			Archer-Daniels-Midland Company			-			〃						-						US$						2,989									N/A						US$						2,989
			Caterpillar Financial Services Corporation			-			〃						-						US$						2,988									N/A						US$						2,988
			The PNC Financial Services Group, Inc.			-			〃						-						US$						2,979									N/A						US$						2,979
			Southern California Gas Company			-			〃						-						US$						2,975									N/A						US$						2,975
			Citizens Bank, National Association			-			〃						-						US$						2,971									N/A						US$						2,971
			Medtronic Global Holdings S.C.A.			-			〃						-						US$						2,965									N/A						US$						2,965
			ORIX Corporation			-			〃						-						US$						2,954									N/A						US$						2,954
			Prologis, L.P.			-			〃						-						US$						2,950									N/A						US$						2,950
			Xcel Energy Inc.			-			〃						-						US$						2,950									N/A						US$						2,950
			Ameriprise Financial, Inc.			-			〃						-						US$						2,893									N/A						US$						2,893
			Rochester Gas and Electric Corporation			-			〃						-						US$						2,869									N/A						US$						2,869
			BHP Billiton Finance (USA) Limited			-			〃						-						US$						2,832									N/A						US$						2,832
			Rio Tinto Finance (USA) Limited			-			〃						-						US$						2,832									N/A						US$						2,832
			CSL Finance plc			-			〃						-						US$						2,827									N/A						US$						2,827
			The Brooklyn Union Gas Company			-			〃						-						US$						2,756									N/A						US$						2,756
			Simon Property Group, L.P.			-			〃						-						US$						2,748									N/A						US$						2,748
			Ventas Realty, Limited Partnership			-			〃						-						US$						2,747									N/A						US$						2,747
			Oncor Electric Delivery Company LLC			-			〃						-						US$						2,716									N/A						US$						2,716
			Invitation Homes Operating Partnership LP			-			〃						-						US$						2,693									N/A						US$						2,693
			Chevron Phillips Chemical Company LLC			-			〃						-						US$						2,683									N/A						US$						2,683
			Bayer US Finance LLC			-			〃						-						US$						2,650									N/A						US$						2,650
			Masco Corporation			-			〃						-						US$						2,647									N/A						US$						2,647

(Continued)

- 83 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			Pennsylvania Electric Company			-			Financial assets at fair value through other comprehensive income						-						US$						2,611									N/A						US$						2,611
			The Southern Company			-			〃						-						US$						2,606									N/A						US$						2,606
			O'Reilly Automotive, Inc.			-			〃						-						US$						2,595									N/A						US$						2,595
			Transcontinental Gas Pipe Line Company, LLC			-			〃						-						US$						2,595									N/A						US$						2,595
			Air Products and Chemicals, Inc.			-			〃						-						US$						2,585									N/A						US$						2,585
			American Electric Power Company, Inc.			-			〃						-						US$						2,539									N/A						US$						2,539
			Siemens Financieringsmaatschappij N.V.			-			〃						-						US$						2,519									N/A						US$						2,519
			Kraton Corporation			-			〃						-						US$						2,509									N/A						US$						2,509
			CRH America, Inc.			-			〃						-						US$						2,442									N/A						US$						2,442
			W. P. Carey Inc.			-			〃						-						US$						2,423									N/A						US$						2,423
			Entergy Texas, Inc.			-			〃						-						US$						2,422									N/A						US$						2,422
			Westpac Banking Corporation			-			〃						-						US$						2,394									N/A						US$						2,394
			NBN CO LTD			-			〃						-						US$						2,373									N/A						US$						2,373
			Yara International ASA			-			〃						-						US$						2,360									N/A						US$						2,360
			CVS Health Corporation			-			〃						-						US$						2,354									N/A						US$						2,354
			Boston Gas Company			-			〃						-						US$						2,320									N/A						US$						2,320
			Cardinal Health, Inc.			-			〃						-						US$						2,296									N/A						US$						2,296
			GE HealthCare Technologies Inc.			-			〃						-						US$						2,253									N/A						US$						2,253
			Pricoa Global Funding I			-			〃						-						US$						2,251									N/A						US$						2,251
			Boston Scientific Corporation			-			〃						-						US$						2,190									N/A						US$						2,190
			Dominion Energy, Inc.			-			〃						-						US$						2,186									N/A						US$						2,186
			Bimbo Bakeries USA, Inc.			-			〃						-						US$						2,169									N/A						US$						2,169
			Humana Inc.			-			〃						-						US$						2,115									N/A						US$						2,115
			Interstate Power and Light Company			-			〃						-						US$						2,085									N/A						US$						2,085
			CMS Energy Corporation			-			〃						-						US$						2,072									N/A						US$						2,072
			Air Lease Corporation			-			〃						-						US$						2,046									N/A						US$						2,046
			Welltower Inc.			-			〃						-						US$						2,043									N/A						US$						2,043
			Public Service Electric and Gas Company			-			〃						-						US$						2,018									N/A						US$						2,018
			KODIT Global 2023-1 Co., Ltd.			-			〃						-						US$						1,998									N/A						US$						1,998
			Olympus Corporation			-			〃						-						US$						1,993									N/A						US$						1,993
			UBS Group Funding (Jersey) Ltd.			-			〃						-						US$						1,980									N/A						US$						1,980
			Gulf Power Company			-			〃						-						US$						1,936									N/A						US$						1,936
			Shinhan Financial Group Co., Ltd.			-			〃						-						US$						1,926									N/A						US$						1,926
			NBK SPC Limited			-			〃						-						US$						1,879									N/A						US$						1,879
			Element Fleet Management Corp.			-			〃						-						US$						1,786									N/A						US$						1,786
			Mondelez International, Inc.			-			〃						-						US$						1,785									N/A						US$						1,785
			Kentucky Utilities Company			-			〃						-						US$						1,782									N/A						US$						1,782
			Eversource Energy			-			〃						-						US$						1,778									N/A						US$						1,778
			CenterPoint Energy Houston Electric, LLC			-			〃						-						US$						1,752									N/A						US$						1,752
			Evergy Kansas Central, Inc.			-			〃						-						US$						1,728									N/A						US$						1,728
			Georgia-Pacific LLC			-			〃						-						US$						1,718									N/A						US$						1,718
			University of California			-			〃						-						US$						1,697									N/A						US$						1,697
			Gilead Sciences, Inc.			-			〃						-						US$						1,694									N/A						US$						1,694
			KeySpan Corporation			-			〃						-						US$						1,686									N/A						US$						1,686
			The Western Union Company			-			〃						-						US$						1,673									N/A						US$						1,673
			Wells Fargo Bank, National Association			-			〃						-						US$						1,669									N/A						US$						1,669
			Motorola Solutions, Inc.			-			〃						-						US$						1,658									N/A						US$						1,658
			Walmart Inc.			-			〃						-						US$						1,657									N/A						US$						1,657
			UniCredit S.p.A.			-			〃						-						US$						1,656									N/A						US$						1,656
			eBay Inc.			-			〃						-						US$						1,651									N/A						US$						1,651
			Gulfstream Natural Gas System, L.L.C.			-			〃						-						US$						1,604									N/A						US$						1,604
			B.A.T Capital Corporation			-			〃						-						US$						1,550									N/A						US$						1,550

(Continued)

- 84 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			Jefferies Financial Group Inc.			-			Financial assets at fair value through other comprehensive income						-						US$						1,545									N/A						US$						1,545
			Kinder Morgan, Inc.			-			〃						-						US$						1,538									N/A						US$						1,538
			Zoetis Inc.			-			〃						-						US$						1,533									N/A						US$						1,533
			APA Infrastructure Limited			-			〃						-						US$						1,531									N/A						US$						1,531
			Cadence Design Systems, Inc.			-			〃						-						US$						1,530									N/A						US$						1,530
			Genuine Parts Company			-			〃						-						US$						1,529									N/A						US$						1,529
			Essex Portfolio, L.P.			-			〃						-						US$						1,528									N/A						US$						1,528
			Wipro IT Services LLC			-			〃						-						US$						1,527									N/A						US$						1,527
			Entergy Mississippi, LLC			-			〃						-						US$						1,501									N/A						US$						1,501
			Phillips 66 Company			-			〃						-						US$						1,501									N/A						US$						1,501
			Otis Worldwide Corporation			-			〃						-						US$						1,494									N/A						US$						1,494
			Arthur J. Gallagher & Co.			-			〃						-						US$						1,490									N/A						US$						1,490
			NSTAR Electric Company			-			〃						-						US$						1,481									N/A						US$						1,481
			American International Group, Inc.			-			〃						-						US$						1,479									N/A						US$						1,479
			Berkshire Hathaway Energy Company			-			〃						-						US$						1,461									N/A						US$						1,461
			Duke Energy Florida, LLC			-			〃						-						US$						1,460									N/A						US$						1,460
			Darden Restaurants, Inc.			-			〃						-						US$						1,455									N/A						US$						1,455
			CenterPoint Energy, Inc.			-			〃						-						US$						1,450									N/A						US$						1,450
			Dollar General Corporation			-			〃						-						US$						1,445									N/A						US$						1,445
			Jersey Central Power & Light Company			-			〃						-						US$						1,442									N/A						US$						1,442
			The Norinchukin Bank			-			〃						-						US$						1,368									N/A						US$						1,368
			Northrop Grumman Corporation			-			〃						-						US$						1,315									N/A						US$						1,315
			Aon Corporation			-			〃						-						US$						1,314									N/A						US$						1,314
			Andrew W. Mellon Foundation, The			-			〃						-						US$						1,292									N/A						US$						1,292
			Pernod Ricard International Finance LLC			-			〃						-						US$						1,267									N/A						US$						1,267
			Texas Instruments Incorporated			-			〃						-						US$						1,247									N/A						US$						1,247
			Becton, Dickinson and Company			-			〃						-						US$						1,245									N/A						US$						1,245
			Union Pacific Corporation			-			〃						-						US$						1,241									N/A						US$						1,241
			Ecolab Inc.			-			〃						-						US$						1,208									N/A						US$						1,208
			Sysco Corporation			-			〃						-						US$						1,200									N/A						US$						1,200
			Mondelez International Holdings Netherlands B.V.			-			〃						-						US$						1,153									N/A						US$						1,153
			Solvay Finance (America), LLC			-			〃						-						US$						1,148									N/A						US$						1,148
			Ferguson Finance PLC			-			〃						-						US$						1,117									N/A						US$						1,117
			OGE Energy Corp.			-			〃						-						US$						1,113									N/A						US$						1,113
			Nucor Corporation			-			〃						-						US$						1,086									N/A						US$						1,086
			7-Eleven, Inc.			-			〃						-						US$						1,080									N/A						US$						1,080
			Niagara Mohawk Power Corporation			-			〃						-						US$						1,063									N/A						US$						1,063
			AIB Group plc			-			〃						-						US$						1,057									N/A						US$						1,057
			EDP Finance B.V.			-			〃						-						US$						1,045									N/A						US$						1,045
			New York State Electric & Gas Corporation			-			〃						-						US$						1,024									N/A						US$						1,024
			CBRE Services, Inc.			-			〃						-						US$						1,018									N/A						US$						1,018
			Sabine Pass Liquefaction, LLC			-			〃						-						US$						1,010									N/A						US$						1,010
			PacifiCorp			-			〃						-						US$						1,005									N/A						US$						1,005
			MORGAN STANLEY BANK NA FXD-FRN			-			〃						-						US$						1,003									N/A						US$						1,003
			Santander UK plc			-			〃						-						US$						996									N/A						US$						996
			Canadian Pacific Railway Company			-			〃						-						US$						976									N/A						US$						976
			Juniper Networks, Inc.			-			〃						-						US$						968									N/A						US$						968
			American Water Capital Corp.			-			〃						-						US$						964									N/A						US$						964
			Bayer US Finance II LLC			-			〃						-						US$						962									N/A						US$						962
			Lennar Corporation			-			〃						-						US$						923									N/A						US$						923
			LYB Finance Company B.V.			-			〃						-						US$						923									N/A						US$						923
			Assurant, Inc.			-			〃						-						US$						922									N/A						US$						922

(Continued)

- 85 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			AEP Texas Inc.			-			Financial assets at fair value through other comprehensive income						-						US$						919									N/A						US$						919
			The Interpublic Group of Companies, Inc.			-			〃						-						US$						918									N/A						US$						918
			TC PipeLines, LP			-			〃						-						US$						904									N/A						US$						904
			BAE Systems Finance Inc.			-			〃						-						US$						902									N/A						US$						902
			Brighthouse Financial Global Funding			-			〃						-						US$						896									N/A						US$						896
			Metropolitan Edison Company			-			〃						-						US$						811									N/A						US$						811
			CubeSmart, L.P.			-			〃						-						US$						801									N/A						US$						801
			Cox Enterprises, Inc.			-			〃						-						US$						788									N/A						US$						788
			Southwest Gas Corporation			-			〃						-						US$						765									N/A						US$						765
			PACCAR Financial Corp.			-			〃						-						US$						764									N/A						US$						764
			Voya Financial, Inc.			-			〃						-						US$						762									N/A						US$						762
			Zimmer Biomet Holdings, Inc.			-			〃						-						US$						762									N/A						US$						762
			BP Capital Markets America, Inc.			-			〃						-						US$						760									N/A						US$						760
			Veralto Corporation			-			〃						-						US$						758									N/A						US$						758
			Consolidated Edison Company of New York, Inc.			-			〃						-						US$						752									N/A						US$						752
			TELUS Corporation			-			〃						-						US$						752									N/A						US$						752
			Oklahoma Gas and Electric Company			-			〃						-						US$						749									N/A						US$						749
			Mars, Incorporated			-			〃						-						US$						743									N/A						US$						743
			Avangrid, Inc.			-			〃						-						US$						736									N/A						US$						736
			Hyundai Capital Services, Inc.			-			〃						-						US$						720									N/A						US$						720
			Sodexo, Inc.			-			〃						-						US$						694									N/A						US$						694
			The Allstate Corporation			-			〃						-						US$						694									N/A						US$						694
			Baxter International Inc.			-			〃						-						US$						660									N/A						US$						660
			Automatic Data Processing, Inc.			-			〃						-						US$						658									N/A						US$						658
			Reliance Standard Life Global Funding II			-			〃						-						US$						656									N/A						US$						656
			International Business Machines Corporation			-			〃						-						US$						653									N/A						US$						653
			Southern Power Company			-			〃						-						US$						639									N/A						US$						639
			Florida Hurricane Catastrophe Fund Finance Corporation			-			〃						-						US$						614									N/A						US$						614
			Infor, Inc.			-			〃						-						US$						613									N/A						US$						613
			The Sherwin-Williams Company			-			〃						-						US$						597									N/A						US$						597
			Burlington Resources Inc.			-			〃						-						US$						588									N/A						US$						588
			Columbia Pipelines Holding Company, LLC			-			〃						-						US$						562									N/A						US$						562
			Columbia Pipelines Operating Company LLC			-			〃						-						US$						536									N/A						US$						536
			Skandinaviska Enskilda Banken AB (publ)			-			〃						-						US$						536									N/A						US$						536
			State of Hawaii			-			〃						-						US$						536									N/A						US$						536
			Arizona Public Service Company			-			〃						-						US$						525									N/A						US$						525
			AIA Group Limited			-			〃						-						US$						512									N/A						US$						512
			Mississippi Power Company			-			〃						-						US$						511									N/A						US$						511
			Intesa Sanpaolo S.p.A.			-			〃						-						US$						509									N/A						US$						509
			Monongahela Power Company			-			〃						-						US$						509									N/A						US$						509
			Waste Management, Inc.			-			〃						-						US$						503									N/A						US$						503
			Westpac New Zealand Limited			-			〃						-						US$						499									N/A						US$						499
			Enterprise Products Operating LLC			-			〃						-						US$						493									N/A						US$						493
			Trane Technologies Luxembourg Finance S.A.			-			〃						-						US$						493									N/A						US$						493
			Altria Group, Inc.			-			〃						-						US$						491									N/A						US$						491
			Commonwealth Bank of Australia			-			〃						-						US$						489									N/A						US$						489
			Diageo Capital plc			-			〃						-						US$						487									N/A						US$						487
			McCormick & Company, Incorporated			-			〃						-						US$						485									N/A						US$						485
			Verisk Analytics, Inc.			-			〃						-						US$						479									N/A						US$						479
			DENSO Corporation			-			〃						-						US$						471									N/A						US$						471
			Aker BP ASA			-			〃						-						US$						431									N/A						US$						431
			Phillips 66			-			〃						-						US$						424									N/A						US$						424

(Continued)

- 86 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			The Home Depot, Inc.			-			Financial assets at fair value through other comprehensive income						-						US$						420									N/A						US$						420
			Aflac Incorporated			-			〃						-						US$						407									N/A						US$						407
			Coca-Cola Consolidated, Inc.			-			〃						-						US$						396									N/A						US$						396
			GlaxoSmithKline Capital Inc.			-			〃						-						US$						391									N/A						US$						391
			Sierra Pacific Power Company			-			〃						-						US$						389									N/A						US$						389
			Nuveen, LLC			-			〃						-						US$						387									N/A						US$						387
			CSX Corporation			-			〃						-						US$						365									N/A						US$						365
			Cargill, Incorporated			-			〃						-						US$						360									N/A						US$						360
			Honeywell International Inc.			-			〃						-						US$						355									N/A						US$						355
			Equitable Holdings, Inc.			-			〃						-						US$						341									N/A						US$						341
			Mid-America Apartments, L.P.			-			〃						-						US$						320									N/A						US$						320
			National Grid plc			-			〃						-						US$						286									N/A						US$						286
			QatarEnergy			-			〃						-						US$						283									N/A						US$						283
			Nordson Corporation			-			〃						-						US$						281									N/A						US$						281
			Electricité de France S.A.			-			〃						-						US$						203									N/A						US$						203
			Sprint Spectrum Co Llc			-			〃						-						US$						116									N/A						US$						116
			Beth Israel Deaconess Medical Center, Inc.			-			〃						-						US$						90									N/A						US$						90
			Bank of America Corporation			-			Financial assets at amortized cost						-						US$						1,090,390									N/A						US$						1,094,564
			Wells Fargo & Company			-			〃						-						US$						1,068,098									N/A						US$						1,075,639
			Citigroup Inc.			-			〃						-						US$						744,664									N/A						US$						746,193
			Morgan Stanley			-			〃						-						US$						571,972									N/A						US$						574,855
			JPMorgan Chase & Co.			-			〃						-						US$						567,099									N/A						US$						569,835
			The Goldman Sachs Group, Inc.			-			〃						-						US$						531,503									N/A						US$						529,294
			Goldman Sachs Finance Corp International Ltd			-			〃						-						US$						209,799									N/A						US$						209,249
			BNP Paribas SA			-			〃						-						US$						44,841									N/A						US$						44,846
			Morgan Stanley Bank, N.A.			-			〃						-						US$						27,003									N/A						US$						27,116
			BPCE SA			-			〃						-						US$						17,696									N/A						US$						17,699
			UBS Group AG			-			〃						-						US$						15,308									N/A						US$						15,317
			Athene Global Funding			-			〃						-						US$						14,814									N/A						US$						14,820
			Lloyds Banking Group plc			-			〃						-						US$						13,275									N/A						US$						13,278
			ING Groep N.V.			-			〃						-						US$						11,434									N/A						US$						11,487
			Nationwide Building Society			-			〃						-						US$						10,636									N/A						US$						10,602
			Great-West Lifeco U.S. Finance 2020, Lp			-			〃						-						US$						9,885									N/A						US$						9,863
			Credit Agricole SA London Branch			-			〃						-						US$						9,748									N/A						US$						9,744
			NatWest Group plc			-			〃						-						US$						9,696									N/A						US$						9,697
			Mizuho Financial Group, Inc.			-			〃						-						US$						9,637									N/A						US$						9,741
			Macquarie Group Limited			-			〃						-						US$						9,632									N/A						US$						9,635
			Danske Bank A/S			-			〃						-						US$						9,625									N/A						US$						9,628
			HSBC Holdings plc			-			〃						-						US$						9,570									N/A						US$						9,569
			Hyundai Capital America			-			〃						-						US$						9,562									N/A						US$						9,566
			Barclays PLC			-			〃						-						US$						9,536									N/A						US$						9,535
			Coöperatieve Rabobank U.A.			-			〃						-						US$						9,430									N/A						US$						9,426
			Fédération des caisses Desjardins du Québec			-			〃						-						US$						9,206									N/A						US$						9,201
			NongHyup Bank			-			〃						-						US$						9,150									N/A						US$						9,142
			Nomura Holdings, Inc.			-			〃						-						US$						9,112									N/A						US$						9,104
			Mitsubishi UFJ Financial Group, Inc.			-			〃						-						US$						8,707									N/A						US$						8,704
			Banque Fédérative du Crédit Mutuel			-			〃						-						US$						8,472									N/A						US$						8,503
			Canadian Imperial Bank of Commerce			-			〃						-						US$						8,467									N/A						US$						8,466
			Ventas Realty, Limited Partnership			-			〃						-						US$						8,383									N/A						US$						8,385
			Banco Santander, S.A.			-			〃						-						US$						8,296									N/A						US$						8,307
			Enel Finance International N.V.			-			〃						-						US$						8,288									N/A						US$						8,288
			Protective Life Global Funding			-			〃						-						US$						8,075									N/A						US$						8,073

(Continued)

- 87 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			CRH America, Inc.			-			Financial assets at amortized cost						-						US$						8,002									N/A						US$						7,984
			Sydney Airport Finance Company Pty Ltd			-			〃						-						US$						7,830									N/A						US$						7,827
			Sumitomo Mitsui Financial Group, Inc.			-			〃						-						US$						7,801									N/A						US$						7,813
			AIG Global Funding			-			〃						-						US$						7,776									N/A						US$						7,794
			Banco Bilbao Vizcaya Argentaria, S.A.			-			〃						-						US$						7,314									N/A						US$						7,321
			Southern California Edison Company			-			〃						-						US$						5,973									N/A						US$						5,983
			Santander UK Group Holdings plc			-			〃						-						US$						5,682									N/A						US$						5,681
			NatWest Markets Plc			-			〃						-						US$						5,583									N/A						US$						5,580
			F&G Global Funding			-			〃						-						US$						5,520									N/A						US$						5,533
			Transurban Finance Company Pty Ltd			-			〃						-						US$						5,349									N/A						US$						5,345
			Hyundai Capital Services, Inc.			-			〃						-						US$						5,137									N/A						US$						5,131
			Svenska Handelsbanken AB (publ)			-			〃						-						US$						4,810									N/A						US$						4,830
			QNB Finance Ltd.			-			〃						-						US$						4,550									N/A						US$						4,560
			DNB Bank ASA			-			〃						-						US$						4,364									N/A						US$						4,361
			Sumitomo Mitsui Trust Bank, Limited			-			〃						-						US$						4,194									N/A						US$						4,195
			Deutsche Bank AG - New York Branch			-			〃						-						US$						3,992									N/A						US$						3,988
			Volkswagen Group of America Finance, LLC			-			〃						-						US$						3,932									N/A						US$						3,923
			Daimler Trucks Finance North America LLC			-			〃						-						US$						3,912									N/A						US$						3,920
			Jackson National Life Global Funding			-			〃						-						US$						3,365									N/A						US$						3,361
			ANZ New Zealand (Int'l) Limited			-			〃						-						US$						3,314									N/A						US$						3,312
			Scottish Power Limited			-			〃						-						US$						3,181									N/A						US$						3,189
			Spectra Energy Partners, LP			-			〃						-						US$						2,872									N/A						US$						2,869
			Ryder System, Inc.			-			〃						-						US$						2,868									N/A						US$						2,871
			Bank of Ireland Group plc			-			〃						-						US$						2,822									N/A						US$						2,823
			PNC Bank, National Association			-			〃						-						US$						2,799									N/A						US$						2,800
			Unum Group			-			〃						-						US$						1,981									N/A						US$						1,984
			Georgia-Pacific LLC			-			〃						-						US$						1,294									N/A						US$						1,297
			GA Global Funding Trust			-			〃						-						US$						1,194									N/A						US$						1,196
			Agency mortgage-backed securities
			FEDERAL NATIONAL MORTGAGE ASSOCIATION			-			Financial assets at fair value through other comprehensive income						-						US$						651,715									N/A						US$						651,715
			Federal Home Loan Mortgage Corporation			-			〃						-						US$						496,172									N/A						US$						496,172
			Government National Mortgage Association			-			〃						-						US$						274,580									N/A						US$						274,580
			Government bond/Agency bonds
			United States Department of The Treasury			-			Financial assets at fair value through other comprehensive income						-						US$						630,062									N/A						US$						630,062
			United States Department of The Treasury			-			Financial assets at amortized cost						-						US$						133,653									N/A						US$						132,856
			Asset-backed securities
			Wells Fargo Commercial Mortgage Trust 2016-Bnk1			-			Financial assets at fair value through other comprehensive income						-						US$						10,286									N/A						US$						10,286
			Gm Financial Consumer Automobile Receivables Trust 2023-3			-			〃						-						US$						8,998									N/A						US$						8,998
			Ford Credit Auto Owner Trust 2021-Rev2			-			〃						-						US$						7,946									N/A						US$						7,946
			Honda Auto Receivables 2024-1 Owner Trust			-			〃						-						US$						7,685									N/A						US$						7,685
			Toyota Auto Loan Extended Note Trust 2023-1			-			〃						-						US$						7,350									N/A						US$						7,350
			Hyundai Auto Receivables Trust 2023-B			-			〃						-						US$						7,188									N/A						US$						7,188
			Citigroup Commercial Mortgage Trust 2015-GC33			-			〃						-						US$						7,181									N/A						US$						7,181
			Ford Credit Auto Owner Trust 2020-REV2			-			〃						-						US$						7,167									N/A						US$						7,167
			G23-182I			-			〃						-						US$						6,433									N/A						US$						6,433
			BBCMS Mortgage Trust 2020-C8			-			〃						-						US$						6,346									N/A						US$						6,346
			Toyota Auto Receivables 2022-B Owner Trust			-			〃						-						US$						6,328									N/A						US$						6,328
			Morgan Stanley Capital I Trust 2021-L6			-			〃						-						US$						6,133									N/A						US$						6,133

(Continued)

- 88 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			Honda Auto Receivables 2023-2 Owner Trust			-			Financial assets at fair value through other comprehensive income						-						US$						6,031									N/A						US$						6,031
			Hudson Yards 2016-10HY Mortgage Trust			-			〃						-						US$						6,013									N/A						US$						6,013
			Bank 2020-BNK26			-			〃						-						US$						5,983									N/A						US$						5,983
			Benchmark 2019-B11 Mortgage Trust			-			〃						-						US$						5,729									N/A						US$						5,729
			Bank 2017 - BNK7			-			〃						-						US$						5,639									N/A						US$						5,639
			Citigroup Commercial Mortgage Trust 2021-PRM2			-			〃						-						US$						5,593									N/A						US$						5,593
			Bank 2021-bnk33			-			〃						-						US$						5,498									N/A						US$						5,498
			Benchmark 2019-B12 Mortgage Trust			-			〃						-						US$						5,447									N/A						US$						5,447
			Morgan Stanley Bank America Merrill Lynch Trust 2016-C30			-			〃						-						US$						5,437									N/A						US$						5,437
			Nissan Auto Receivables 2024-A Owner Trust			-			〃						-						US$						5,272									N/A						US$						5,272
			MSWF Commercial Mortgage Trust 2023-1			-			〃						-						US$						5,180									N/A						US$						5,180
			Benchmark 2023-B39 Mortgage Trust			-			〃						-						US$						5,161									N/A						US$						5,161
			Bank 2023-BNK46			-			〃						-						US$						5,105									N/A						US$						5,105
			Wells Fargo Commercial Mortgage Trust 2021-C59			-			〃						-						US$						4,900									N/A						US$						4,900
			Morgan Stanley Capital I Trust 2016 - BNK2 Fund			-			〃						-						US$						4,839									N/A						US$						4,839
			Wells Fargo Commercial Mortgage Trust 2016-C35			-			〃						-						US$						4,839									N/A						US$						4,839
			CSAIL 2018-CX11			-			〃						-						US$						4,793									N/A						US$						4,793
			GM Financial Revolving Receivables Trust 2021-1			-			〃						-						US$						4,718									N/A						US$						4,718
			Bank 2017-BNK9			-			〃						-						US$						4,241									N/A						US$						4,241
			Msbam 2016-C29			-			〃						-						US$						4,109									N/A						US$						4,109
			Benchmark 2023-V3 Mortgage Trust			-			〃						-						US$						4,094									N/A						US$						4,094
			Nissan Auto Receivables 2024-B Owner Trust			-			〃						-						US$						3,966									N/A						US$						3,966
			Toyota Auto Receivables 2024-D Owner Trust			-			〃						-						US$						3,926									N/A						US$						3,926
			FORDO_24-D			-			〃						-						US$						3,752									N/A						US$						3,752
			Bmw Vehicle Owner Trust 2023-A			-			〃						-						US$						3,633									N/A						US$						3,633
			Gm Financial Consumer Automobile Receivables Trust 2023-4			-			〃						-						US$						3,622									N/A						US$						3,622
			Discover Card Execution Note Trust			-			〃						-						US$						3,523									N/A						US$						3,523
			GM Financial Consumer Automobile Receivables Trust 2023-2			-			〃						-						US$						3,384									N/A						US$						3,384
			American Express Credit Account Master Trust			-			〃						-						US$						3,338									N/A						US$						3,338
			Citigroup Commercial Mortgage Trust 2019-Gc43			-			〃						-						US$						3,277									N/A						US$						3,277
			Msbam 2016-C31			-			〃						-						US$						3,113									N/A						US$						3,113
			Honda Auto Receivables 2023-4 Owner Trust			-			〃						-						US$						3,048									N/A						US$						3,048
			Mercedes-Benz Auto Receivables Trust 2024-1			-			〃						-						US$						3,009									N/A						US$						3,009
			Commerce 2015-CCRE24 Mortgage Trust			-			〃						-						US$						2,892									N/A						US$						2,892
			Bank 2019-Bnk22			-			〃						-						US$						2,889									N/A						US$						2,889
			Five 2023-V1 Mortgage Trust			-			〃						-						US$						2,857									N/A						US$						2,857
			Sreit Commercial Mortgage Trust 2021-Mfp			-			〃						-						US$						2,772									N/A						US$						2,772
			Bmo 2023-C5 Mortgage Trust			-			〃						-						US$						2,766									N/A						US$						2,766
			CGCMT 2017-P8 Mortgage Trust			-			〃						-						US$						2,727									N/A						US$						2,727
			Bank5 2023-5YR1			-			〃						-						US$						2,674									N/A						US$						2,674
			Mercedes-Benz Auto Receivables Trust 2023-2			-			〃						-						US$						2,585									N/A						US$						2,585
			Toyota Auto Receivables 2023-C Owner Trust			-			〃						-						US$						2,520									N/A						US$						2,520
			Honda Auto Receivables 2023-1 Owner Trust			-			〃						-						US$						2,506									N/A						US$						2,506
			Benchmark 2018-B3 Commercial Mortgage Trust			-			〃						-						US$						2,499									N/A						US$						2,499
			Ford Credit Auto Owner Trust 2020-Rev1			-			〃						-						US$						2,492									N/A						US$						2,492
			Gm Financial Consumer Automobile Receivables Trust 2024-1			-			〃						-						US$						2,478									N/A						US$						2,478
			Benchmark 2019-B15 Mortgage Trust			-			〃						-						US$						2,452									N/A						US$						2,452
			GS Mortgage Securities Trust 2015-GC32			-			〃						-						US$						2,432									N/A						US$						2,432
			Hyundai Auto Receivables Trust 2021-B			-			〃						-						US$						2,432									N/A						US$						2,432
			Citigroup Commercial Mortgage Trust 2016-C1			-			〃						-						US$						2,362									N/A						US$						2,362
			Toyota Auto Receivables 2024-A Owner Trust			-			〃						-						US$						2,305									N/A						US$						2,305

(Continued)

- 89 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			Benchmark 2020-B18 Mortgage Trust			-			Financial assets at fair value through other comprehensive income						-						US$						2,286									N/A						US$						2,286
			BANK5 2023-5YR4			-			〃						-						US$						2,261									N/A						US$						2,261
			Citigroup Commercial Mortgage Trust 2015-P1			-			〃						-						US$						2,231									N/A						US$						2,231
			Wells Fargo Commercial Mortgage Trust 2020-C55			-			〃						-						US$						2,147									N/A						US$						2,147
			Bmark 2018-B5			-			〃						-						US$						2,136									N/A						US$						2,136
			Toyota Auto Receivables 2023 D Owner Trust			-			〃						-						US$						2,131									N/A						US$						2,131
			Ford Credit Auto Owner Trust 2023-C			-			〃						-						US$						2,128									N/A						US$						2,128
			Ford Credit Auto Owner Trust 2023-A			-			〃						-						US$						2,003									N/A						US$						2,003
			Benchmark 2018-B4 Mortgage Trust			-			〃						-						US$						1,970									N/A						US$						1,970
			Ubs 2018-C13			-			〃						-						US$						1,916									N/A						US$						1,916
			Dolp Trust 2021-NYC			-			〃						-						US$						1,895									N/A						US$						1,895
			Bank 2017-Bnk6			-			〃						-						US$						1,872									N/A						US$						1,872
			Mercedes-Benz Auto Receivables Trust 2023-1			-			〃						-						US$						1,691									N/A						US$						1,691
			GM Financial Consumer Automobile Receivables Trust 2023-1			-			〃						-						US$						1,689									N/A						US$						1,689
			Hyundai Auto Receivables Trust 2022-A			-			〃						-						US$						1,569									N/A						US$						1,569
			Wells Fargo Commercial Mortgage Trust 2015-C30			-			〃						-						US$						1,549									N/A						US$						1,549
			UBS Commercial Mortgage Trust 2018-C11			-			〃						-						US$						1,522									N/A						US$						1,522
			American Express Credit Account Master Trust , series 2023-1			-			〃						-						US$						1,508									N/A						US$						1,508
			Morgan Stanley Capital I Trust 2021-L5			-			〃						-						US$						1,386									N/A						US$						1,386
			Wells Fargo Commercial Mortgage Trust 2015-C29			-			〃						-						US$						1,277									N/A						US$						1,277
			Ford Credit Auto Owner Trust 2022-C			-			〃						-						US$						1,251									N/A						US$						1,251
			Morgan Stanley Capital I Trust			-			〃						-						US$						1,223									N/A						US$						1,223
			Gs Mortgage Securities Trust 2018-Gs10			-			〃						-						US$						1,221									N/A						US$						1,221
			BANK 2017-BNK5			-			〃						-						US$						1,146									N/A						US$						1,146
			Hyundai Auto Receivables Trust 2021-C			-			〃						-						US$						1,145									N/A						US$						1,145
			FORD CREDIT AUTO OWNER TRUST 2023-REV2			-			〃						-						US$						1,120									N/A						US$						1,120
			Wells Fargo Commercial Mortgage Trust 2018-C44			-			〃						-						US$						1,005									N/A						US$						1,005
			Morgan Stanley Capital I Trust 2015 - UBS8			-			〃						-						US$						986									N/A						US$						986
			Wells Fargo Commercial Mortgage Trust 2016-LC24			-			〃						-						US$						967									N/A						US$						967
			Citigroup Commercial Mortgage Trust 2016-C3			-			〃						-						US$						963									N/A						US$						963
			Hyundai Auto Receivables Trust 2022-B			-			〃						-						US$						938									N/A						US$						938
			Toyota Auto Receivables 2024-B Owner Trust			-			〃						-						US$						930									N/A						US$						930
			Ford Credit Auto Owner Trust 2022-A			-			〃						-						US$						919									N/A						US$						919
			Benchmark 2021-B24 Mortgage Trust			-			〃						-						US$						859									N/A						US$						859
			Bank 2023-Bnk45			-			〃						-						US$						859									N/A						US$						859
			BBCMS Mortgage Trust 2018-C2			-			〃						-						US$						852									N/A						US$						852
			Nissan Auto Receivables 2023-A Owner Trust			-			〃						-						US$						832									N/A						US$						832
			DBJPM 2016-C1 Mortgage Trust			-			〃						-						US$						776									N/A						US$						776
			JPMCC 2017-JP7			-			〃						-						US$						758									N/A						US$						758
			Honda Auto Receivables 2022-2 Owner Trust			-			〃						-						US$						745									N/A						US$						745
			Honda Auto Receivables 2021 - 4 Owner Trust			-			〃						-						US$						710									N/A						US$						710
			Citigroup Commercial Mortgage Trust 2015-GC35			-			〃						-						US$						700									N/A						US$						700
			Hyundai Auto Receivables Trust 2024-C			-			〃						-						US$						697									N/A						US$						697
			Mhc Commercial Mortgage Trust 2021-Mhc			-			〃						-						US$						697									N/A						US$						697
			Wells Fargo Commercial Mortgage Trust 2017-C40			-			〃						-						US$						597									N/A						US$						597
			JPMBB Commercial Mortgage Securities Trust 2016-C1			-			〃						-						US$						591									N/A						US$						591
			JPMCC Commercial Mortgage Securities Trust 2016 - JP3			-			〃						-						US$						523									N/A						US$						523
			Wells Fargo Commercial Mortgage Trust 2015-C28			-			〃						-						US$						473									N/A						US$						473
			JPMDB 2017-C7			-			〃						-						US$						414									N/A						US$						414
			Toyota Auto Receivables 2021-C Owner Trust			-			〃						-						US$						405									N/A						US$						405
			COMM Mortgage Trust Series 2015-LC19			-			〃						-						US$						339									N/A						US$						339

(Continued)

- 90 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			December 31, 2024																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
TSMC Global			Citigroup Commercial Mortgage Trust 2018-C5			-			Financial assets at fair value through other comprehensive income						-						US$						336									N/A						US$						336
			Gm Financial Consumer Automobile Receivables Trust 2022-3			-			〃						-						US$						267									N/A						US$						267
			Ford Credit Auto Owner Trust 2023-B			-			〃						-						US$						231									N/A						US$						231
			Ford Credit Auto Owner Trust 2022-B			-			〃						-						US$						204									N/A						US$						204
			Toyota Auto Receivables 2021-D Owner Trust			-			〃						-						US$						201									N/A						US$						201
			Porsche Financial Auto Securitization Trust 2023-1			-			〃						-						US$						198									N/A						US$						198
			Nissan Auto Receivables 2022-B Owner Trust			-			〃						-						US$						194									N/A						US$						194
			Wells Fargo Commercial Mortgage Trust 2015-NXS3			-			〃						-						US$						132									N/A						US$						132
			Morgan Stanley Capital I Trust 2018-H3			-			〃						-						US$						107									N/A						US$						107
			JPMCC 2015 - JP1			-			〃						-						US$						91									N/A						US$						91
			Non-publicly traded equity investments
			Primavera Capital Fund II L.P.			-			Financial assets at fair value through other comprehensive income						-						US$						78,780									4						US$						78,780
Emerging Fund			Simple Agreement for Future Equity
			Eliyan Corp.			-			Financial assets at fair value through Profit or Loss						-						US$						4,000									N/A						US$						4,000
			Convertible bonds
			Movandi Corporation			-			Financial assets at fair value through Profit or Loss						-						US$						-									N/A						US$						-
			Non-publicly traded equity investments
			Lyte AI, Inc.			-			Financial assets at fair value through other comprehensive income						1,325						US$						10,757									4						US$						10,757
			Encharge AI, Inc.			-			〃						445						US$						6,098									2						US$						6,098
			Avicenatech Corp.			-			〃						730						US$						5,894									2						US$						5,894
			Ayar Labs, Inc.			-			〃						345						US$						5,400									1						US$						5,400
			Cerebras Systems, Inc.			-			〃						341						US$						5,000									-						US$						5,000
			Empower Semiconductor, Inc.			-			〃						868						US$						5,000									2						US$						5,000
			Ethernovia Inc.			-			〃						1,021						US$						5,000									3						US$						5,000
			RiVos, Inc.			-			〃						2,568						US$						5,000									1						US$						5,000
			EdgeQ, Inc.			-			〃						1,176						US$						4,771									2						US$						4,771
			NeuReality Ltd.			-			〃						1,217						US$						4,302									2						US$						4,302
			Xsight Labs Ltd.			-			〃						500						US$						4,002									1						US$						4,002
			SiMa Technologies, Inc.			-			〃						564						US$						4,000									1						US$						4,000
			xMEMS Labs, Inc.			-			〃						3,000						US$						3,240									2						US$						3,240
			Atlas Magnetics, Co.			-			〃						1,500						US$						3,000									3						US$						3,000
			Ambiq Micro, Inc.			-			〃						3,318						US$						3,000									1						US$						3,000
			Enfabrica Corporation			-			〃						1,048						US$						3,000									1						US$						3,000
			Kinara, Inc.			-			〃						2,138						US$						2,980									2						US$						2,980
			Reed Semiconductor Corp.			-			〃						500						US$						2,000									1						US$						2,000
			Publicly traded stocks
			Raspberry Pi Holdings Plc			-			Financial assets at fair value through other comprehensive income						1,364						US$						10,703									1						US$						10,703
TSMC Development			Convertible preferred stocks
			IMS Nanofabrication Global, LLC			-			Financial assets at fair value through Profit or Loss						-						US$						432,795									10						US$						432,795

(Concluded)

- 91 -

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TABLE 4

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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

FOR THE YEAR ENDED DECEMBER 31, 2024

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

Company Name			Marketable Securities Type and Name			Financial Statement Account			Counterparty			Nature of Relationship			Beginning Balance																								Acquisition																								Disposal																																																						Ending 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						$						772,437,954
			TSMC Arizona			〃			-			-						10,500									298,604,975															7,350									236,121,500															-									-															-															-															17,850									544,359,678
			JASM			〃			-			-						2,269									47,087,140															742									15,754,106															-									-															-															-															3,011									57,173,512
			VIS			〃			-			-						464,223									13,590,430															42,486									3,738,753															-									-															-															-															506,709									18,300,373
			ESMC			〃			-			-						100									4,768,013															665									13,299,041															30									1,021															(4,263									)						5,284															735									17,510,070
			Emerging Fund			〃			-			-						-									1,901,742															-									1,185,722															-									-															163,392															-															-									3,214,022
			VTAF III			〃			-			-						-									257,540															-									-															-									-															680,703															-															-									23,334
			Commercial paper
			Cathay Financial Holding Co., Ltd.			Financial assets at amortized cost			-			-						697									6,924,665															1,356									13,474,803															1,129									11,290,000															11,290,000															-															924									9,185,663
			Formosa Chemicals & Fibre Corporation			〃			-			-						100									994,540															740									7,352,476															590									5,900,000															5,900,000															-															250									2,479,351
			China Steel Corporation			〃			-			-						200									1,985,094															920									9,136,858															1,000									10,000,000															10,000,000															-															120									1,197,878
			Formosa Plastics Corporation			〃			-			-						100									996,260															350									3,477,989															350									3,500,000															3,500,000															-															100									996,353
			Nan Ya Plastics Corporation			〃			-			-						600									5,976,677															485									4,821,161															1,050									10,500,000															10,500,000															-															35									348,913
			CPC Corporation, Taiwan			〃			-			-						100									995,553															370									3,677,952															470									4,700,000															4,700,000															-															-									-
			Taiwan Power Company			〃			-			-						50									498,916															245									2,427,071															295									2,950,000															2,950,000															-															-									-
TSMC Partners			Fund
			Carbon Nature SCSp			Financial assets at fair value through Profit or Loss			-			-						-						US$									-									-						US$									13,939									-						US$									-						US$									-						US$									-									-						US$									11,413
			Publicly traded stocks
			ARM Holdings plc			Financial assets at fair value through other comprehensive income			-			-						1,961						US$									147,353									-						US$									-									850						US$									101,535						US$									43,350						US$									58,185									1,111						US$									137,026
TSMC Global			Corporate bond
			Bank of America Corporation			Financial assets at fair value through other comprehensive income			-			-						-						US$									86,588									-						US$									42,071									-						US$									34,981						US$									35,186						US$									205									-						US$									95,674
			Morgan Stanley			〃			-			-						-						US$									76,777									-						US$									36,402									-						US$									27,731						US$									27,700						US$									31									-						US$									87,312
			Wells Fargo & Company			〃			-			-						-						US$									58,351									-						US$									35,405									-						US$									20,340						US$									20,524						US$									(184			)						-						US$									74,617
			The Goldman Sachs Group, Inc.			〃			-			-						-						US$									58,554									-						US$									32,401									-						US$									18,875						US$									18,911						US$									(36			)						-						US$									73,642
			JPMorgan Chase & Co.			〃			-			-						-						US$									62,267									-						US$									35,675									-						US$									26,976						US$									27,187						US$									(211			)						-						US$									72,101
			Citigroup Inc.			〃			-			-						-						US$									50,436									-						US$									23,833									-						US$									18,431						US$									18,508						US$									(77			)						-						US$									56,810
			HSBC Holdings plc			〃			-			-						-						US$									30,124									-						US$									31,600									-						US$									9,371						US$									9,596						US$									(225			)						-						US$									52,845
			Hyundai Capital America			〃			-			-						-						US$									13,567									-						US$									25,268									-						US$									-						US$									-						US$									-									-						US$									39,105
			BNP Paribas SA			〃			-			-						-						US$									20,345									-						US$									29,092									-						US$									11,256						US$									11,296						US$									(40			)						-						US$									38,517
			Lloyds Banking Group plc			〃			-			-						-						US$									24,131									-						US$									21,375									-						US$									9,529						US$									9,483						US$									46									-						US$									36,440

(Continued)

- 92 -

---

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

(Continued)

- 93 -

---

Company Name			Marketable Securities Type and Name			Financial Statement Account			Counterparty			Nature of Relationship			Beginning Balance																					Acquisition																					Disposal																																													Ending 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			Macquarie Bank Limited			Financial assets at fair value through other comprehensive income			-			-						-						US$						8,390									-						US$						10,818									-						US$						5,804						US$						5,848						US$						(44			)						-						US$						13,650
			Mercedes-Benz Finance North America LLC			〃			-			-						-						US$						-									-						US$						16,734									-						US$						3,574						US$						3,597						US$						(23			)						-						US$						13,022
			Amphenol Corporation			〃			-			-						-						US$						-									-						US$						12,737									-						US$						-						US$						-						US$						-									-						US$						12,833
			American Honda Finance Corporation			〃			-			-						-						US$						2,087									-						US$						19,874									-						US$						8,989						US$						8,918						US$						71									-						US$						12,774
			Jackson National Life Global Funding			〃			-			-						-						US$						3,563									-						US$						12,386									-						US$						3,652						US$						3,712						US$						(60			)						-						US$						12,563
			The Bank of New York Mellon Corporation			〃			-			-						-						US$						16,064									-						US$						5,984									-						US$						9,757						US$						9,402						US$						355									-						US$						12,428
			BAE Systems plc			〃			-			-						-						US$						-									-						US$						12,292									-						US$						-						US$						-						US$						-									-						US$						12,425
			Bristol-Myers Squibb Company			〃			-			-						-						US$						4,604									-						US$						21,106									-						US$						14,572						US$						14,275						US$						297									-						US$						11,585
			Swedbank AB (publ)			〃			-			-						-						US$						2,399									-						US$						9,999									-						US$						946						US$						1,000						US$						(54			)						-						US$						11,541
			Elevance Health, Inc.			〃			-			-						-						US$						5,914									-						US$						9,976									-						US$						4,804						US$						4,740						US$						64									-						US$						11,154
			Prologis Targeted U.S. Logistics Fund L.P.			〃			-			-						-						US$						-									-						US$						10,940									-						US$						-						US$						-						US$						-									-						US$						11,127
			MassMutual Global Funding II			〃			-			-						-						US$						506									-						US$						10,025									-						US$						-						US$						-						US$						-									-						US$						10,851
			DTE Energy Company			〃			-			-						-						US$						1,685									-						US$						10,580									-						US$						1,712						US$						1,735						US$						(23			)						-						US$						10,651
			National Rural Utilities Cooperative Finance Corporation			〃			-			-						-						US$						1,445									-						US$						9,899									-						US$						950						US$						999						US$						(49			)						-						US$						10,402
			Hewlett Packard Enterprise Company			〃			-			-						-						US$						-									-						US$						9,989									-						US$						-						US$						-						US$						-									-						US$						9,766
			Accenture Capital Inc.			〃			-			-						-						US$						-									-						US$						12,196									-						US$						2,980						US$						2,996						US$						(16			)						-						US$						8,979
			Keurig Dr Pepper Inc.			〃			-			-						-						US$						-									-						US$						11,790									-						US$						4,980						US$						4,987						US$						(7			)						-						US$						6,880
			Fiserv, Inc.			〃			-			-						-						US$						6,745									-						US$						10,068									-						US$						10,634						US$						10,662						US$						(28			)						-						US$						6,242
			Marriott International, Inc.			〃			-			-						-						US$						271									-						US$						9,744									-						US$						4,582						US$						4,488						US$						94									-						US$						5,525
			AbbVie Inc.			〃			-			-						-						US$						26,895									-						US$						8,427									-						US$						30,655						US$						30,962						US$						(307			)						-						US$						4,965
			Société Générale Société anonyme			〃			-			-						-						US$						16,589									-						US$						-									-						US$						12,218						US$						12,345						US$						(127			)						-						US$						4,618
			CVS Health Corporation			〃			-			-						-						US$						24,591									-						US$						-									-						US$						22,083						US$						21,803						US$						280									-						US$						2,354
			The Kroger Co.			〃			-			-						-						US$						-									-						US$						14,886									-						US$						15,049						US$						14,887						US$						162									-						US$						-
			Bank of America Corporation			Financial assets at amortized cost			-			-						-						US$						799,449									-						US$						558,380									-						US$						279,000						US$						278,987						US$						13									-						US$						1,090,390
			Wells Fargo & Company			〃			-			-						-						US$						619,830									-						US$						577,074									-						US$						144,000						US$						143,976						US$						24									-						US$						1,068,098
			Citigroup Inc.			〃			-			-						-						US$						271,462									-						US$						697,689									-						US$						228,000						US$						227,997						US$						3									-						US$						744,664
			Morgan Stanley			〃			-			-						-						US$						566,880									-						US$						293,824									-						US$						297,000						US$						296,972						US$						28									-						US$						571,972
			JPMorgan Chase & Co.			〃			-			-						-						US$						391,868									-						US$						335,127									-						US$						171,000						US$						170,999						US$						1									-						US$						567,099
			The Goldman Sachs Group, Inc.			〃			-			-						-						US$						432,811									-						US$						362,921									-						US$						267,000						US$						267,000						US$						-									-						US$						531,503
			Goldman Sachs Finance Corp International Ltd			〃			-			-						-						US$						99,905									-						US$						210,000									-						US$						100,000						US$						100,000						US$						-									-						US$						209,799
			BNP Paribas SA			〃			-			-						-						US$						9,265									-						US$						39,266									-						US$						4,000						US$						4,000						US$						-									-						US$						44,841
			Morgan Stanley Bank, N.A.			〃			-			-						-						US$						-									-						US$						27,014									-						US$						-						US$						-						US$						-									-						US$						27,003
			BPCE SA			〃			-			-						-						US$						7,874									-						US$						9,633									-						US$						-						US$						-						US$						-									-						US$						17,696
			Athene Global Funding			〃			-			-						-						US$						5,122									-						US$						9,583									-						US$						-						US$						-						US$						-									-						US$						14,814
			Credit Agricole SA London Branch			〃			-			-						-						US$						-									-						US$						9,727									-						US$						-						US$						-						US$						-									-						US$						9,748
			NatWest Group plc			〃			-			-						-						US$						-									-						US$						9,718									-						US$						-						US$						-						US$						-									-						US$						9,696
			Macquarie Group Limited			〃			-			-						-						US$						-									-						US$						9,616									-						US$						-						US$						-						US$						-									-						US$						9,632
			Danske Bank A/S			〃			-			-						-						US$						-									-						US$						9,613									-						US$						-						US$						-						US$						-									-						US$						9,625
			HSBC Holdings plc			〃			-			-						-						US$						-									-						US$						9,582									-						US$						-						US$						-						US$						-									-						US$						9,570

(Continued)

- 94 -

---

Company Name			Marketable Securities Type and Name			Financial Statement Account			Counterparty			Nature of Relationship			Beginning Balance																					Acquisition																					Disposal																																													Ending 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			Hyundai Capital America			Financial assets at amortized cost			-			-						-						US$						-									-						US$						9,541									-						US$						-						US$						-						US$						-									-						US$						9,562
			Barclays PLC			〃			-			-						-						US$						-									-						US$						9,560									-						US$						-						US$						-						US$						-									-						US$						9,536
			Coöperatieve Rabobank U.A.			〃			-			-						-						US$						-									-						US$						9,407									-						US$						-						US$						-						US$						-									-						US$						9,430
			Citigroup Global Markets Holdings Inc.			〃			-			-						-						US$						99,968									-						US$						-									-						US$						100,000						US$						100,000						US$						-									-						US$						-
			Citigroup Global Markets Inc.			〃			-			-						-						US$						149,951									-						US$						-									-						US$						150,000						US$						150,000						US$						-									-						US$						-
			Agency mortgage-backed securities
			FEDERAL NATIONAL MORTGAGE ASSOCIATION			Financial assets at fair value through other comprehensive income			-			-						-						US$						658,944									-						US$						265,914									-						US$						264,084						US$						271,966						US$						(7,882			)						-						US$						651,715
			Federal Home Loan Mortgage Corporation			〃			-			-						-						US$						350,328									-						US$						294,896									-						US$						144,307						US$						146,914						US$						(2,607			)						-						US$						496,172
			Government National Mortgage Association			〃			-			-						-						US$						225,310									-						US$						124,487									-						US$						70,649						US$						71,381						US$						(732			)						-						US$						274,580
			Government bond/Agency bonds
			United States Department of The Treasury			Financial assets at fair value through other comprehensive income			-			-						-						US$						718,479									-						US$						176,221									-						US$						276,660						US$						279,897						US$						(3,237			)						-						US$						630,062
			Federal Home Loan Mortgage Corporation			〃			-			-						-						US$						6,995									-						US$						4,996									-						US$						12,002						US$						11,990						US$						12									-						US$						-
			United States Department of The Treasury			Financial assets at amortized cost			-			-						-						US$						88,940									-						US$						44,399									-						US$						-						US$						-						US$						-									-						US$						133,653
			Federal Home Loan Banks			〃			-			-						-						US$						225,000									-						US$						30,000									-						US$						255,000						US$						255,000						US$						-									-						US$						-
			Federal Home Loan Mortgage Corporation			〃			-			-						-						US$						135,000									-						US$						30,000									-						US$						165,000						US$						165,000						US$						-									-						US$						-
			Asset-backed securities
			G23-182I			Financial assets at fair value through other comprehensive income			-			-						-						US$						-									-						US$						10,151									-						US$						3,734						US$						3,735						US$						(1			)						-						US$						6,433
			JPMBB Commercial Mortgage Securities Trust 2014-C24			〃			-			-						-						US$						9,818									-						US$						-									-						US$						10,000						US$						10,016						US$						(16			)						-						US$						-
Emerging Fund			Publicly traded stocks
			Astera Labs, Inc.			Financial assets at fair value through other comprehensive income			-			-						744						US$						9,680									-						US$						-									744						US$						64,393						US$						5,000						US$						59,393									-						US$						-
Growth Fund			Publicly traded stocks
			Astera Labs, Inc.			Financial assets at fair value through other comprehensive income			-			-						319						US$						4,146									-						US$						-									319						US$						23,243						US$						250						US$						22,993									-						US$						-

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

(Concluded)

- 95 -

---

TABLE 5

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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

FOR THE YEAR ENDED DECEMBER 31, 2024 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

February 06, 2024 (Note)

US$

2,155,000 (Note)

Based on the terms in the purchase order

96 counterparties (Note), including:

-

N/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB Ltd.

Accudevice Co., Ltd.

Air Liquide Far Eastern Ltd.

Allis Electric Co., Ltd.

Am-Power Machine International Enterprise Co., Ltd.

Atlas Copco Taiwan Ltd.

Atlas Technology Corp.

Capital Machinery Limited

Chang Chun Petrochemical Co., Ltd.

Chen Yuan International Co., Ltd.

Chenfull International Co., Ltd.

Cheng Deh Fire Protection Industrial Corp.

Chien Kuo Construction Co., Ltd.

China Steel Structure Co., Ltd.

Chun Yuan Steel Industry Co., Ltd.

Chung-Lin General Contractors, Ltd.

Cica-Huntek Chemical Technology Taiwan Co., Ltd.

Confederate Technology Co., Ltd.

(Continued)

- 96 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

CTCI Smart Engineering Corporation

Da-Cin Construction Co., Ltd.

Desiccant Technology Co., Ltd.

Evergreen Steel Corporation

Exyte Taiwan Co., Ltd.

Fortune Electric Co., Ltd.

Fu Tsu Construction Co., Ltd.

Gang-Wei Construction Ltd.

Hantech Engineering Co., Ltd.

Hsieh Kun Co., Ltd.

Hueng Luei Process Industry Co., Ltd.

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

J.C. Yang Architect and Associates

JG Environmental Technology Co., Ltd.

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

Jusun Instruments Co., Ltd.

Kaohsiung City Government

Kedge Construction Co., Ltd.

Kinetics Technology Corporation

L&K Engineering Co., Ltd.

Lead-Fu Industrials Corporation

Lee Ming Construction Co., Ltd.

Li Jin Engineering Co., Ltd

Mandartech Interiors Inc.

Marketech Integrated Pte Ltd

Mega Union Technology Incorporated

Organo Technology Co., Ltd.

Ovivo Taiwan Co., Ltd.

Pan Asia (Engineers & Constructors) Corporation

(Continued)

- 97 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Ruentex Engineering & Construction Co., Ltd.

San Fu Chemical Co., Ltd.

Schneider Electric Taiwan Co., Ltd.

Shihlin Electric & Engineering Corporation

Siemens Limited

Solomon Technology Corporation

Swift Engineering Co., Ltd.

Taiwan Gleno Enterprise Co., Ltd.

Taiwan Obayashi Corporation

Taiwan Puritic Corp.

TASA Construction Corporation

Techgo Industrial Co., Ltd.

Transcene Corporation

Trusval Technology Co., Ltd.

Tung Kang Steel Structure Corp.

Uangyih-Tech Industrial Co., Ltd.

Unelectra International Corp.

United Integrated Services Co., Ltd

Versum Materials Taiwan Co., Ltd.

Wei Shung Technology Corporation

Weltall Technology Corporation

Wholetech System Hitech Limited

Yangtech Engineering Co., Ltd.

Yankey Engineering Co., Ltd.

Ying Pao Technology Inc.

YUNG CHING CONSTRUCTION CO., LTD.

Zhao-Cheng Corp.

(Continued)

- 98 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

June 05, 2024 (Note)

US$

11,014,000 (Note)

Based on the terms in the purchase order

182 counterparties (Note), including:

-

N/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB Ltd.

Accudevice Co., Ltd.

Air Liquide Far Eastern Ltd.

Allied Supreme Corp.

Allis Electric Co., Ltd.

Am-Power Machine International Enterprise Co., Ltd.

Apollo Sheet Metal, Inc.

Atlas Copco Taiwan Ltd.

Atlas Technology Corp.

Brycon Corporation

Capital Machinery Limited

Chang Chun Petrochemical Co., Ltd.

Chen Yuan International Co., Ltd.

Chenfull International Co., Ltd.

Cheng Deh Fire Protection Industrial Corp.

Chien Kuo Construction Co., Ltd.

China Steel Structure Co., Ltd.

Chun Yuan Steel Industry Co., Ltd.

Chung-Lin General Contractors, Ltd.

Cica-Huntek Chemical Technology Taiwan Co., Ltd.

Confederate Technology Co., Ltd.

Corbins, LLC

CTCI Corporation

Currie and Brown Inc

Da-Cin Construction Co., Ltd.

Desiccant Technology Co., Ltd.

(Continued)

- 99 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

EnerMech Mechanical Services, Inc.

Evergreen Steel Corporation

Exyte Taiwan Co., Ltd.

Fortune Electric Co., Ltd.

Fu Tsu Construction Co., Ltd.

GCON, Inc.

Gold Stone Development Co., Ltd.

Hantech Engineering Co., Ltd.

Hsieh Kun Co., Ltd.

Hueng Luei Process Industry Co., Ltd.

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

J.C. Yang Architect and Associates

Jack B. Henderson Construction Company, Inc.

Jaie Haour Industry Corporation

JG Environmental Technology Co., Ltd.

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

Job Brokers, Inc.

Johnson Controls, Inc.

Jusun Instruments Co., Ltd.

Kedge Construction Co., Ltd.

Kinetic Systems, Inc.

Kinetics Technology Corporation

L&K Engineering Co., Ltd.

Lead-Fu Industrials Corporation

Lee Ming Construction Co., Ltd.

Li Jin Engineering Co., Ltd

Lumax International Corp., Ltd

Mandartech Interiors Inc.

(Continued)

- 100 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Marketech Integrated Pte Ltd

Mega Union Technology Incorporated

MornstAir Inc.

MSR-FSR, LLC

OBR Cooling Towers, Inc

Okland Construction Company, Inc.

Organo Technology Co., Ltd.

Ovivo Taiwan Co., Ltd.

Pan Asia (Engineers & Constructors) Corporation

Prime Controls LP

Propersys Corp

Rosendin Electric, Inc.

Ruentex Engineering & Construction Co., Ltd.

San Fu Chemical Co., Ltd.

Schneider Electric Taiwan Co., Ltd.

Shihlin Electric & Engineering Corporation

Siemens Limited

Solomon Technology Corporation

Southland Industries

SSOE Inc.

Swift Engineering Co., Ltd.

T C Boiler Inc

Taiwan Gleno Enterprise Co., Ltd.

Taiwan Obayashi Corporation

Taiwan Puritic Corp.

Taiwan Valqua Engineering International, Ltd.

TASA Construction Corporation

Techgo Industrial Co., Ltd.

Trusval Technology Co., Ltd.

TUN YI Industrial Co., Ltd.

Tung Kang Steel Structure Corp.

Uangyih-Tech Industrial Co., Ltd.

Mandartech Interiors Inc.

(Continued)

- 101 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Unelectra International Corp.

United Integrated Services Co., Ltd

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/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB Ltd.

Accudevice Co., Ltd.

Air Liquide Far Eastern Ltd.

Allis Electric Co., Ltd.

Am-Power Machine International Enterprise Co., Ltd.

Atlas Copco Taiwan Ltd.

Atlas Technology Corp.

Capital Machinery Limited

Chang Chun Petrochemical Co., Ltd.

Chen Yuan International Co., Ltd.

Chenfull International Co., Ltd.

Mandartech Interiors Inc.

(Continued)

- 102 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Cheng Deh Fire Protection Industrial Corp.

Chern Shuo System Technology Co., Ltd.

China Steel Structure Co., Ltd.

Chun Yuan Steel Industry Co., Ltd.

Cica-Huntek Chemical Technology Taiwan Co., Ltd.

Confederate Technology Co., Ltd.

Da-Cin Construction Co., Ltd.

Desiccant Technology Co., Ltd.

Evergreen Steel Corporation

Exyte Taiwan Co., Ltd.

Fortune Electric Co., Ltd.

Fu Tsu Construction Co., Ltd.

Gang-Wei Construction Ltd.

Hantech Engineering Co., Ltd.

Hsieh Kun Co., Ltd.

Hueng Luei Process Industry Co., Ltd.

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

Jaie Haour Industry Corporation

JG Environmental Technology Co., Ltd.

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

JJP Architects and Planners

Jusun Instruments Co., Ltd.

Kedge Construction Co., Ltd.

Kinetics Technology Corporation

L&K Engineering Co., Ltd.

Lee Ming Construction Co., Ltd.

(Continued)

- 103 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Mandartech Interiors Inc.

Marketech International Corp.

Mega Union Technology Incorporated

Organo Technology Co., Ltd.

Ovivo Taiwan Co., Ltd.

REIJU Construction Co., Ltd.

San Fu Chemical Co., Ltd.

Schneider Electric Taiwan Co., Ltd.

Shihlin Electric & Engineering Corporation

Siemens Limited

Solomon Technology Corporation

Southern Taiwan Science Park Bureau, National Science and Technology Council

Swift Engineering Co., Ltd.

Taiwan Gleno Enterprise Co., Ltd.

TAIWAN POWER COMPANY

Taiwan Puritic Corp.

TASA Construction Corporation

Techgo Industrial Co., Ltd.

Tianding construction industry Co., Ltd.

Trusval Technology Co., Ltd.

Tung Kang Steel Structure Corp.

Uangyih-Tech Industrial Co., Ltd.

Unelectra International Corp.

United Integrated Services Co., Ltd.

Versum Materials Taiwan Co., Ltd.

Wei Shung Technology Corporation

(Continued)

- 104 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Weltall Technology Corporation

Wholetech System Hitech Limited

Yangtech Engineering Co., Ltd.

Yankey Engineering Co., Ltd.

Ying Pao Technology Inc.

Yuan Yi Construction Co., Ltd.

Yuanshuo Archi & Construction COMPANY LIMITED

YUNG CHING CONSTRUCTION CO., LTD.

Zhao-Cheng Corp.

Real estate

November 12, 2024 (Note)

US$

11,215,000 (Note)

Based on the terms in the purchase order

113 counterparties (Note), including:

-

N/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB K.K

Addtron Technology (Japan) Inc.

Bilfinger Water Technologies GmbH

Central Taiwan Science Park Bureau, National Science and Technology Council

Chen Yuan International Co., Ltd.

Drees & Sommer SE

Exyte Central Europe Ltd.

Hager+Elsässer GmbH

IAQ technology

Intega GmbH

JAPAN MATERIAL Co., Ltd.

JG Environmental Technology Co., Ltd.

Kajima Corporation

Kanto Chemical Engineering Co., Ltd.

Kaohsiung City Government

(Continued)

- 105 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

KENDAI Co., Ltd.

Kinetics Germany GmbH

Kurita Water Industries Ltd.

Lumax International Corp., Ltd.

Marketech International Corporation

ORGANO CORPORATION

Shimizu Corporation

Southern Taiwan Science Park Bureau, Ministry of Science and Technology

Taikisha Ltd.

Taiwan Puritic Corp.

Taiwan Valqua Engineering International, Ltd.

Taiyo Nippon Sanso Corporation

Takenaka Corporation

TOPLINE SYSTEM ENGINEERING CO., LTD.

Toray Engineering West Co., Ltd.

Tosei Technology Japan Co., Ltd.

Uangyih-Tech Industrial Co., Ltd.

United Integrated Services Co., Ltd.

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

(Concluded)

- 106 -

---

TABLE 6

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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

FOR THE YEAR ENDED DECEMBER 31, 2024

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

Company Name			Related Party			Nature of Relationships			Transaction Details																														Abnormal Transaction						Notes/Accounts Payable or Receivable																								Note
									Purchases/ Sales			Amount (Foreign Currencies in Thousands)															% to Total									Payment Terms			Unit Price			Payment Terms			Ending Balance (Foreign Currencies in Thousands)															% to Total
TSMC			TSMC North America			Subsidiary			Sales			$						2,057,313,208												71						Net 30 days from invoice date (Note)			-			-			$						209,056,572												84
			TSMC Arizona			Subsidiary			Sales						1,133,926															-						Net 30 days from the end of the month of when invoice is issued			-			-						102,021															-
			JASM			Subsidiary			Sales						383,136															-						Net 30 days from the end of the month of when invoice is issued			-			-						12,851															-
			TSMC Nanjing			Subsidiary			Sales						104,279															-						Net 30 days from the end of the month of when invoice is issued			-			-						5,136															-
			GUC			Associate			Sales						6,803,593															-						Net 30 days from invoice date			-			-						430,761															-
			VIS			Associate			Sales						275,630															-						Net 30 days from the end of the month of when invoice is issued			-			-						117,282															-
			TSMC Nanjing			Subsidiary			Purchases						71,242,715															37						Net 30 days from the end of the month of when invoice is issued			-			-						(4,473,370									)						4
			TSMC China			Subsidiary			Purchases						26,598,235															14						Net 30 days from the end of the month of when invoice is issued			-			-						(1,848,450									)						2
			TSMC Arizona			Subsidiary			Purchases						789,759															-						Net 30 days from the end of the month of when invoice is issued			-			-						(630,869									)						1
			TSMC Washington			Indirect subsidiary			Purchases						5,984,353															3						Net 30 days from the end of the month of when invoice is issued			-			-						(529,200									)						-
			SSMC			Associate			Purchases						3,861,026															2						Net 30 days from the end of the month of when invoice is issued			-			-						(308,424									)						-
			VIS			Associate			Purchases						758,595															-						Net 30 days from the end of the month of when invoice is issued			-			-						(110,224									)						-
TSMC North America			GUC			Associate of TSMC			Sales			(US$									7,285,137 227,111			)						-						Net 30 days from invoice date			-			-			(US$									179,266 5,471			)						-
VisEra Tech			Xintec			Associate of TSMC			Sales						668,021															7						Net 60 days from the end of the month of when invoice is issued			-			-						104,765															9

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

- 107 -

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TABLE 7

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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

DECEMBER 31, 2024

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

Company Name			Related Party			Nature of Relationships			Ending Balance (Foreign Currencies in Thousands)															Turnover Days (Note 1)			Overdue															Amounts Received in Subsequent Period												Allowance for Bad Debts
																											Amount												Action Taken
TSMC			TSMC North America			Subsidiary			$						214,106,805									32			$						-						-			$						-						$						-
			TSMC Arizona			Subsidiary						256,605												33						-									-						-												-
			VIS			Associate						626,638												Note 3						-									-						-												-
			GUC			Associate						430,761												24						-									-						-												-
TSMC North America			GUC			Associate of TSMC			(USD									179,266 5,471			)			6						-									-						-												-
TSMC JDC			TSMC			Parent company			(JPY									144,709 691,723			)			Note 2						-									-						-												-
TSMC China			TSMC			Parent company			(RMB									1,848,450 411,693			)			28						-									-						-												-
			TSMC Nanjing			The same parent company			(RMB									27,086,790 6,032,827			)			Note 2						-									-						-												-
TSMC Nanjing			TSMC			Parent company			(RMB									4,473,370 996,324			)			25						-									-						-												-
VisEra Tech			Xintec			Associate of TSMC						104,765												59						-									-						-												-
TSMC Arizona			TSMC			Parent company			(USD									44,867,669 1,369,253			)			Note 2						-									-						-												-
TSMC Technology			TSMC			The ultimate parent of the Company			(USD									743,091 22,677			)			Note 2						-									-						-												-
TSMC Development			TSMC Washington			Subsidiary			(USD									983,040 30,000			)			Note 2						-									-						-												-
TSMC Washington			TSMC			The ultimate parent of the Company			(USD									529,200 16,150			)			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.

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

- 108 -

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TABLE 8

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2024

(Amounts in Thousands of New Taiwan Dollars)

No.			Company Name			Counterparty			Nature of Relationship (Note 1)			Intercompany Transactions
												Financial Statements Item			Amount												Terms (Note 2)			Percentage of Consolidated Net Revenue or Total Assets
0			TSMC			TSMC North America			1			Net revenue from sale of goods			$						2,057,313,208						-						71%
												Receivables from related parties						209,056,572									-						3%
												Other receivables from related parties						5,050,233									-						-
												Accrued expenses and other current liabilities						179,886,276									-						3%
												Other noncurrent liabilities						71,433,597									-						1%
						TSMC China			1			Purchases						26,598,235									-						1%
						TSMC Nanjing			1			Purchases						71,242,715									-						2%
												Payables to related parties						4,473,370									-						-
						TSMC Technology			1			Research and development expenses						4,916,181									-						-
						TSMC Washington			1			Purchases						5,984,353									-						-
1			TSMC China			TSMC Nanjing			3			Other receivables from related parties						27,086,790									-						-

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

No. 3 represents the transactions between subsidiaries.

Note 2:    The sales prices and payment terms of intercompany sales are not significantly different from those to third parties. For other intercompany transactions, prices and terms are determined in accordance with mutual agreements.

- 109 -

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TABLE 9

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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

FOR THE YEAR ENDED DECEMBER 31, 2024

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

Investor Company			Investee Company			Location			Main Businesses and Products			Original Investment Amount																														Balance as of December 31, 2024																																	Net Income (Losses) of the Investee (Foreign Currencies in Thousands)															Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands)												Note
												December 31, 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						$						772,437,954									$						37,342,396									$						37,342,396						Subsidiary
			TSMC Arizona			Phoenix, Arizona, U.S.A.			Manufacturing, sales and testing of integrated circuits and other semiconductor devices						565,786,810															329,665,310															17,850									100									544,359,678															(14,298,315									)						(14,298,315						)			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									76,694,630															1,723,648															1,723,648									Subsidiary
			JASM			Kumamoto, Japan			Manufacturing, sales, and testing of integrated circuits and other semiconductor devices						68,384,148															52,630,042															3,011									73									57,173,512															(4,375,561									)						(3,139,299						)			Subsidiary
			VIS			Hsinchu, Taiwan			Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks						13,919,430															10,180,677															506,709									28									18,300,373															7,046,424															1,981,445									Associate
			ESMC			Dresden, Germany			Manufacturing, sales and testing of integrated circuits and other semiconductor devices						18,112,326															4,814,293															735									70									17,510,070															(556,876									)						(389,813						)			Subsidiary
			VisEra Tech			Hsinchu, Taiwan			Research, design, development, manufacturing, sales, packaging and test of color filter						4,224,082															4,224,082															213,619									67									12,204,760															1,738,905															1,171,464									Subsidiary
			SSMC			Singapore			Manufacturing and sales of integrated circuits and other semiconductor devices						5,120,028															5,120,028															314									39									11,387,185															2,606,393															1,011,020									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									7,856,923															1,141,666															1,141,666									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									4,220,609															1,669,720															684,743									Associate
			GUC			Hsinchu, Taiwan			Researching, developing, manufacturing, testing and marketing of integrated circuits						386,568															386,568															46,688									35									3,512,938															3,450,587															1,202,159									Associate
			Emerging Fund			Cayman Islands			Investing in technology start-up companies						2,688,915															1,666,585															-									99.9									3,214,022															(17,367									)						(17,349						)			Subsidiary
			TSMC 3DIC			Yokohama, Japan			Engineering support activities						1,144,356															1,144,356															49									100									1,343,370															177,952															177,952									Subsidiary
			TSMC Europe			Amsterdam, the Netherlands			Customer service and supporting activities						15,749															15,749															-									100									631,939															41,506															41,506									Subsidiary
			TSMC JDC			Yokohama, Japan			Engineering support activities						410,680															410,680															15									100									418,383															42,836															42,836									Subsidiary
			TSMC Japan			Yokohama, Japan			Customer service and supporting activities						83,760															83,760															6									100									129,226															4,694															4,694									Subsidiary
			TSMC Korea			Seoul, Korea			Customer service and supporting activities						13,656															13,656															80									100									43,764															1,913															1,913									Subsidiary
			VTAF III			Cayman Islands			Investing in technology start-up companies						561,975															1,242,679															-									98									23,334															1,062															1,041									Subsidiary
			VTAF II			Cayman Islands			Investing in technology start-up companies						158,394															260,300															-									98									6,246															(3,177									)						(3,113						)			Subsidiary
TSMC Partners			TSMC Development			Delaware, U.S.A			Investing in companies involved in semiconductor manufacturing			(US$									19,232,811 586,939			)			(US$									19,232,811 586,939			)						-									100						(US$									39,971,252 1,219,826			)			(US$									(346,954 (10,922			) ))						Note 2									Subsidiary
			TSMC Technology			Delaware, U.S.A			Engineering support activities			(US$									467,993 14,282			)			(US$									467,993 14,282			)						-									100						(US$									1,559,346 47,587			)			(US$									351,561 10,949			)						Note 2									Subsidiary
			TSMC Canada			Ontario, Canada			Engineering support activities			(US$									75,366 2,300			)			(US$									75,366 2,300			)						2,300									100						(US$									424,072 12,942			)			(US$									52,594 1,643			)						Note 2									Subsidiary
VTAF III			Growth Fund			Cayman Islands			Investing in technology start-up companies			(US$									40,498 1,236			)			(US$									75,217 2,295			)						-									100									-												(US$									4,254 132			)						Note 2									Subsidiary
TSMC Development			TSMC Washington			Washington, U.S.A			Manufacturing, sales and testing of integrated circuits and other semiconductor devices						-															-															293,637									100						(US$									5,186,093 158,267			)			(US$									(1,001,385 (31,319			) ))						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.

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TABLE 10

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2024

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

Investee Company			Main Businesses and Products			Total Amount of Paid-in Capital (RMB in Thousands)												Method of Investment			Accumulated Outflow of Investment from Taiwan as of January 1, 2024 (US$ in Thousands)												Investment Flows																								Accumulated Outflow of Investment from Taiwan as of December 31, 2024 (US$ in Thousands)												Net Income (Losses) of the Investee Company												Percentage of Ownership			Share of Profits/Losses															Carrying Amount as of Balance as of December 31, 2024												Accumulated Inward Remittance of Earnings as of December 31, 2024
																																	Outflow (US$ in Thousands)												Inflow
TSMC China			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			)			$						11,273,152						100%			$									11,359,207 (Note 2)						$						110,272,686						$						-
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			)						25,954,842									100%									25,960,901 (Note 2)												116,846,280												-

Accumulated Investment in Mainland China as of December 31, 2024 (US$ in Thousands)									Investment Amounts Authorized by Investment Commission, MOEA (US$ in Thousands)									Upper Limit on Investment
$ (US$			49,461,079 1,596,000			)			$ (US$			119,412,667 3,596,000			)			$			2,594,145,519 (Note 3)

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

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

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

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TABLE 11

Taiwan Semiconductor Manufacturing Company Limited

INFORMATION ON MAJOR SHAREHOLDERS

DECEMBER 31, 2024

Shareholders (Note 1)			Shares
			Total Shares Owned			Ownership Percentage (Note 2)
ADR-Taiwan Semiconductor Manufacturing Company Ltd.			5,313,843,923			20.49%
National Development Fund, Executive Yuan			1,653,709,980			6.38%

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

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

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