EX-99.1 2 tsmc2023q2consolidatedfina.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

Six Months Ended June 30, 2023 and 2022 and

Independent Auditors’ Review Report

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勤業眾信

勤業眾信聯合會計師事務所

11073 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 11073, Taiwan

Tel :+886 (2) 2725-9988

Fax:+886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders

Taiwan Semiconductor Manufacturing Company Limited

Introduction

We have reviewed the accompanying consolidated balance sheets of Taiwan Semiconductor Manufacturing Company Limited and its subsidiaries (collectively, the “Company”) as of June 30, 2023 and 2022, the related consolidated statements of comprehensive income for the three months ended June 30, 2023 and 2022 and for the six months ended June 30, 2023 and 2022, the consolidated statements of changes in equity and cash flows for the six months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company as of June 30, 2023 and 2022, its consolidated financial performance for the three months ended June 30, 2023 and 2022, and its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 2023 and 2022 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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

Deloitte & Touche

Taipei, Taiwan

Republic of China

August 8, 2023

Notice to Readers

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

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

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

						June 30, 2023																											December 31, 2022																											June 30, 2022
ASSETS						Amount															%												Amount															%												Amount															%
CURRENT ASSETS
Cash and cash equivalents (Note 6)						$	1,276,723,984																	25									$	1,342,814,083																	27									$	1,253,189,197																	29
Financial assets at fair value through profit or loss (Note 7)									975,584															-												1,070,398															-												214,215															-
Financial assets at fair value through other comprehensive income (Note 8)									140,774,929															3												122,998,543															2												120,954,506															3
Financial assets at amortized cost (Note 9)									71,452,494															1												94,600,219															2												51,165,762															1
Hedging financial assets (Note 10)									29,704															-												2,329															-												44,686															-
Notes and accounts receivable, net (Note 11)									190,164,242															4												229,755,887															5												220,996,537															5
Receivables from related parties (Note 32)									862,572															-												1,583,958															-												1,072,699															-
Other receivables from related parties (Note 32)									2,521,323															-												68,975															-												2,518,059															-
Inventories (Note 12)									234,332,949															5												221,149,148															4												217,438,091															5
Other financial assets (Note 33)									25,698,767															-												25,964,428															1												24,931,373															1
Other current assets									16,427,659															-												12,888,776															-												13,341,271															-
Total current assets									1,959,964,207															38												2,052,896,744															41												1,905,866,396															44
NONCURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7)									108,955															-												-															-												-															-
Financial assets at fair value through other comprehensive income (Note 8)									7,516,718															-												6,159,200															-												6,503,252															-
Financial assets at amortized cost (Note 9)									60,139,036															1												35,127,215															1												34,139,722															1
Investments accounted for using equity method (Note 13)									26,845,396															1												27,641,505															1												23,797,518															-
Property, plant and equipment (Note 14)									2,947,233,393															57												2,693,836,970															54												2,248,318,787															52
Right-of-use assets (Note 15)									41,595,010															1												41,914,136															1												34,293,532															1
Intangible assets (Note 16)									23,849,933															1												25,999,155															1												27,208,993															1
Deferred income tax assets (Note 4)									68,379,721															1												69,185,842															1												57,848,313															1
Refundable deposits									5,814,759															-												4,467,022															-												4,125,907															-
Other noncurrent assets									8,017,917															-												7,551,089															-												3,838,915															-
Total noncurrent assets									3,189,500,838															62												2,911,882,134															59												2,440,074,939															56
TOTAL						$	5,149,465,045																	100									$	4,964,778,878																	100									$	4,345,941,335																	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans (Notes 17 and 30)						$						-												-									$						-												-									$	115,584,794																	3
Financial liabilities at fair value through profit or loss (Note 7)									195,001															-												116,215															-												716,981															-
Hedging financial liabilities (Note 10)									7,237,440															-												813															-												-															-
Accounts payable									47,794,115															1												54,879,708															1												58,024,952															1
Payables to related parties (Note 32)									1,178,664															-												1,642,637															-												1,793,114															-
Salary and bonus payable									24,704,515															1												36,435,509															1												25,716,367															1
Accrued profit sharing bonus to employees and compensation to directors (Note 28)									85,142,595															2												61,748,574															1												63,171,737															1
Payables to contractors and equipment suppliers									140,753,488															3												213,499,613															4												160,489,081															4
Cash dividends payable (Note 20)									149,309,000															3												142,617,093															3												142,805,490															3
Income tax payable (Note 4)									70,060,259															1												120,801,814															3												62,063,783															1
Long-term liabilities - current portion (Notes 18, 19 and 30)									8,125,556															-												19,313,889															-												17,059,167															-
Accrued expenses and other current liabilities (Notes 15, 21, 30 and 32)									276,328,374															5												293,170,952															6												197,815,515															5
Total current liabilities									810,829,007															16												944,226,817															19												845,240,981															19
NONCURRENT LIABILITIES
Bonds payable (Notes 18 and 30)									901,710,299															17												834,336,439															17												753,889,823															17
Long-term bank loans (Notes 19 and 30)									5,611,138															-												4,760,047															-												3,318,773															-
Deferred income tax liabilities (Note 4)									373,563															-												1,031,383															-												940,675															-
Lease liabilities (Notes 15 and 30)									29,734,633															1												29,764,097															-												22,510,412															1
Net defined benefit liability (Note 4)									8,604,642															-												9,321,091															-												8,513,260															-
Guarantee deposits									953,163															-												892,021															-												834,170															-
Others (Note 21)									186,180,401															4												179,958,116															4												200,231,116															5
Total noncurrent liabilities									1,133,167,839															22												1,060,063,194															21												990,238,229															23
Total liabilities									1,943,996,846															38												2,004,290,011															40												1,835,479,210															42
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
Capital stock (Note 20)									259,320,710															5												259,303,805															5												259,303,805															6
Capital surplus (Notes 20 and 27)									69,895,542															1												69,330,328															1												69,333,650															1
Retained earnings (Note 20)
Appropriated as legal capital reserve									311,146,899															6												311,146,899															6												311,146,899															7
Appropriated as special capital reserve									23,593,925															1												3,154,310															-												47,067,461															1
Unappropriated earnings									2,542,569,779															49												2,323,223,479															47												1,844,911,241															43
									2,877,310,603															56												2,637,524,688															53												2,203,125,601															51
Others (Notes 20 and 27)									(17,776,400						)									-												(20,505,626						)									-												(35,409,864						)									(1)
Equity attributable to shareholders of the parent									3,188,750,455															62												2,945,653,195															59												2,496,353,192															57
NON - CONTROLLING INTERESTS									16,717,744															-												14,835,672															1												14,108,933															1
Total equity									3,205,468,199															62												2,960,488,867															60												2,510,462,125															58
TOTAL						$	5,149,465,045																	100									$	4,964,778,878																	100									$	4,345,941,335																	100

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

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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

						For the Three Months Ended June 30																																																			For the Six Months Ended June 30
						2023																											2022																								2023																											2022
						Amount															%												Amount												%												Amount															%												Amount															%
NET REVENUE (Notes 21, 32 and 37)						$	480,841,254																	100									$	534,140,808														100									$	989,474,227																	100									$	1,025,216,681																	100
COST OF REVENUE (Notes 12, 28 and 32)												220,641,407												46												218,672,814												41												442,773,988															45															436,545,521												43
GROSS PROFIT												260,199,847												54												315,467,994												59												546,700,239															55															588,671,160												57
OPERATING EXPENSES (Notes 28 and 32)
Research and development												41,665,278												9												39,649,130												8												80,822,314															8															75,697,670												7
General and administrative												14,163,389												3												11,568,594												2												27,639,337															3															22,068,621												2
Marketing												2,365,893												-												2,156,794												-												5,042,253															-															4,219,417												1
Total operating expenses												58,194,560												12												53,374,518												10												113,503,904															11															101,985,708												10
OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14 and 28)												(47,244			)									-												30,273												-												(135						)									-															(771,585			)									-
INCOME FROM OPERATIONS (Note 37)												201,958,043												42												262,123,749												49												433,196,200															44															485,913,867												47
NON-OPERATING INCOME AND EXPENSES
Share of profits of associates												1,134,187												-												2,258,005												-												2,173,004															-															3,983,495												-
Interest income (Note 22)												13,672,021												3												3,545,945												1												27,289,839															3															5,219,824												1
Other income												237,652												-												512,177												-												325,562															-															820,560												-
Foreign exchange gain (loss), net (Note 35)												(1,002,814			)									-												7,864,798												2												(1,047,177						)									-															9,607,686												1
Finance costs (Note 23)												(3,005,155			)									-												(2,904,231			)									(1			)									(5,968,841						)									(1			)												(5,044,997			)									-
Other gains and losses, net (Note 24)												1,680,975												-												(7,402,162			)									(1			)									2,981,253															-															(7,670,458			)									(1			)
Total non-operating income and expenses												12,716,866												3												3,874,532												1												25,753,640															2															6,916,110												1
INCOME BEFORE INCOME TAX												214,674,909												45												265,998,281												50												458,949,840															46															492,829,977												48
INCOME TAX EXPENSE (Notes 4 and 25)												32,957,903												7												28,818,029												6												70,283,798															7															52,776,351												5
NET INCOME												181,717,006												38												237,180,252												44												388,666,042															39															440,053,626												43
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 20 and 25)
Items that will not be reclassified subsequently to profit or loss:
Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income												435,975												-												(143,758			)									-												996,548															1															172,201												-
Gain on hedging instruments												1,088												-												-												-												39,898															-															-												-
Share of other comprehensive income (loss) of associates												(40,581			)									-												11,248												-												(45,016						)									-															55,087												-
Income tax benefit (expense) related to items that will not be reclassified subsequently												(1			)									-												246												-												(25						)									-															231												-
												396,481												-												(132,264			)									-												991,405															1															227,519												-
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations												6,158,012												1												13,866,707												2												956,803															-															33,212,298												4
Unrealized gain/(loss) on investments in debt instruments at fair value through other comprehensive income												(950,705			)									-												(3,184,221			)									1												401,176															-															(8,289,365			)									(1			)
Gain (loss) on hedging instruments												(18,296			)									-												648,756												-												(36,259						)									-															1,342,584												-
Share of other comprehensive income of associates												73,612												-												127,191												-												50,206															-															291,650												-
Income tax benefit related to items that may be reclassified subsequently												-												-												53,336												-												-															-															6,036												-
												5,262,623												1												11,511,769												3												1,371,926															-															26,563,203												3
Other comprehensive income, net of income tax												5,659,104												1												11,379,505												3												2,363,331															1															26,790,722												3
TOTAL COMPREHENSIVE INCOME						$	187,376,110																	39									$	248,559,757														47									$	391,029,373																	40									$	466,844,348																	46
NET INCOME ATTRIBUTABLE TO:
Shareholders of the parent						$	181,799,021																	38									$	237,027,317														44									$	388,785,582																	39									$	439,760,292																	43
Non-controlling interests												(82,015			)									-												152,935												-												(119,540						)									-															293,334												-
						$	181,717,006																	38									$	237,180,252														44									$	388,666,042																	39									$	440,053,626																	43
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Shareholders of the parent						$	188,187,010																	39									$	249,048,661														47									$	392,021,727																	40									$	467,332,315																	46
Non-controlling interests												(810,900			)									-												(488,904			)									-												(992,354						)									-															(487,967			)									-
						$	187,376,110																	39									$	248,559,757														47									$	391,029,373																	40									$	466,844,348																	46
EARNINGS PER SHARE (NT$, Note 26)
Basic earnings per share						$	7.01																										$	9.14																							$	14.99																										$	16.96
Diluted earnings per share						$	7.01																										$	9.14																							$	14.99																										$	16.96

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

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

						Equity Attributable to Shareholders of the Parent
																																																																								Others
																																																																																	Unrealized
																																																																																	Gain (Loss) on
																																																																																	Financial
																																																																																	Assets at Fair
																																																																								Foreign									Value Through																		Unearned
						Capital Stock - Common Stock																														Retained Earnings																																				Currency									Other									Gain (Loss) on									Stock-Based
						Shares																														Legal Capital									Special Capital									Unappropriated																		Translation									Comprehensive									Hedging									Employee																		Treasury																		Non-controlling									Total
						(In Thousands)												Amount									Capital Surplus									Reserve									Reserve									Earnings									Total									Reserve									Income									Instruments									Compensation									Total									Stock									Total									Interests									Equity
BALANCE, JANUARY 1, 2022									25,930,380									$	259,303,805								$	64,761,602								$	311,146,899								$	59,304,212								$	1,536,378,550								$	1,906,829,661								$			(63,303,361			)			$	574,310								$	120,536								$			-						$			(62,608,515			)			$			-						$	2,168,286,553								$	2,446,652								$    2,170,733,205
Appropriations of earnings
Special capital reserve									-												-									-									-									(12,236,751			)						12,236,751									-									-									-									-									-									-									-									-									-						-
Cash dividends to shareholders									-												-									-									-									-									(142,617,092			)						(142,617,092			)						-									-									-									-									-									-									(142,617,092			)						-						(142,617,092)
Total									-												-									-									-									(12,236,751			)						(130,380,341			)						(142,617,092			)						-									-									-									-									-									-									(142,617,092			)						-						(142,617,092)
Net income									-												-									-									-									-									439,760,292									439,760,292									-									-									-									-									-									-									439,760,292									293,334						440,053,626
Other comprehensive income (loss), net of income tax									-												-									-									-									-									-									-									34,285,148									(8,118,334			)						1,405,209									-									27,572,023									-									27,572,023									(781,301			)			26,790,722
Total comprehensive income (loss)									-												-									-									-									-									439,760,292									439,760,292									34,285,148									(8,118,334			)						1,405,209									-									27,572,023									-									467,332,315									(487,967			)			466,844,348
Share-based payment arrangements									1,387												13,870									438,029									-									-									-									-									-									-									-									(345,201			)						(345,201			)						-									106,698									-						106,698
Treasury stock acquired									-												-									-									-									-									-									-									-									-									-									-									-									(871,566			)						(871,566			)						-						(871,566)
Treasury stock retired									(1,387			)									(13,870			)						(2,989			)						-									-									(854,707			)						(854,707			)						-									-									-									-									-									871,566									-									-						-
Disposal of investments in equity instruments at fair value through other comprehensive income									-												-									-									-									-									7,447									7,447									-									(7,447			)						-									-									(7,447			)						-									-									-						-
Basis adjustment for loss on hedging instruments									-												-									-									-									-									-									-									-									-									(20,724			)						-									(20,724			)						-									(20,724			)						-						(20,724)
Adjustments to share of changes in equities of associates									-												-									1,616									-									-									-									-									-									-									-									-									-									-									1,616									-						1,616
From share of changes in equities of subsidiaries									-												-									4,135,392									-									-									-									-									-									-									-									-									-									-									4,135,392									12,330,767						16,466,159
Decrease in non-controlling interests									-												-									-									-									-									-									-									-									-									-									-									-									-									-									(180,519			)			(180,519)
BALANCE, JUNE 30, 2022									25,930,380									$	259,303,805								$	69,333,650								$	311,146,899								$	47,067,461								$	1,844,911,241								$	2,203,125,601								$			(29,018,213			)			$			(7,551,471			)			$	1,505,021								$			(345,201			)			$			(35,409,864			)			$			-						$	2,496,353,192								$	14,108,933					$	2,510,462,125
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									-												-									-									-									20,439,615									(20,439,615			)						-									-									-									-									-									-									-									-									-						-
Cash dividends to shareholders									-												-									-									-									-									(149,104,759			)						(149,104,759			)						-									-									-									-									-									-									(149,104,759			)						-						(149,104,759)
Total									-												-									-									-									20,439,615									(169,544,374			)						(149,104,759			)						-									-									-									-									-									-									(149,104,759			)						-						(149,104,759)
Net income									-												-									-									-									-									388,785,582									388,785,582									-									-									-									-									-									-									388,785,582									(119,540			)			388,666,042
Other comprehensive income (loss), net of income tax									-												-									-									-									-									-									-									1,880,562									1,344,400									11,183									-									3,236,145									-									3,236,145									(872,814			)			2,363,331
Total comprehensive income (loss)									-												-									-									-									-									388,785,582									388,785,582									1,880,562									1,344,400									11,183									-									3,236,145									-									392,021,727									(992,354			)			391,029,373
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									-									-									-									-									-									-									-									(362,884			)						(362,884			)						-									223,084									-						223,084
Disposal of investments in equity instruments at fair value through other comprehensive income									-												-									-									-									-									100,478									100,478									-									(100,478			)						-									-									(100,478			)						-									-									-						-
Basis adjustment for loss on hedging instruments									-												-									-									-									-									-									-									-									-									(43,557			)						-									(43,557			)						-									(43,557			)						-						(43,557)
Adjustments to share of changes in equities of associates									-												-									1,000									-									-									-									-									-									-									-									-									-									-									1,000									-						1,000
From share of changes in equities of subsidiaries									-												-									(4,849			)						-									-									-									-									-									-									-									-									-									-									(4,849			)						3,079,417						3,074,568
Decrease in non-controlling interests									-												-									-									-									-									-									-									-									-									-									-									-									-									-									(204,991			)			(204,991)
BALANCE, JUNE 30, 2023									25,932,071									$	259,320,710								$	69,895,542								$	311,146,899								$	23,593,925								$	2,542,569,779								$	2,877,310,603								$			(9,862,739			)			$			(8,812,431			)			$	1,446,807								$			(548,037			)			$			(17,776,400			)			$			-						$	3,188,750,455								$	16,717,744								$    3,205,468,199

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

- 5 -

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

						Six Months Ended June 30
						2023															2022
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax						$	458,949,840														$	492,829,977
Adjustments for:
Depreciation expense									229,727,337															219,975,000
Amortization expense									4,534,992															4,351,710
Expected credit losses recognized on investments in debt instruments									20,314															22,878
Finance costs									5,968,841															5,044,997
Share of profits of associates									(2,173,004						)									(3,983,495						)
Interest income									(27,289,839						)									(5,219,824						)
Share-based compensation									228,352															141,801
Loss on disposal or retirement of property, plant and equipment, net									333,707															59,370
Gain on disposal or retirement of intangible assets, net									(1,539						)									-
Impairment loss on property, plant and equipment									-															790,740
Gain on financial instruments at fair value through profit or loss, net									(25,519						)									-
Loss on disposal of investments in debt instruments at fair value through other comprehensive income, net									257,553															245,151
Loss on foreign exchange, net									519,590															1,760,843
Dividend income									(309,672						)									(240,840						)
Others									(10,497						)									(260,642						)
Changes in operating assets and liabilities:
Financial instruments at fair value through profit or loss									315,337															(22,297						)
Notes and accounts receivable, net									39,591,637															(23,410,483						)
Receivables from related parties									721,386															(357,375						)
Other receivables from related parties									(29,497						)									(33,677						)
Inventories									(13,183,801						)									(24,335,770						)
Other financial assets									1,288,753															(2,794,688						)
Other current assets									(3,545,808						)									(3,834,683						)
Accounts payable									(7,085,593						)									10,739,349
Payables to related parties									(463,973						)									355,928
Salary and bonus payable									(11,730,994						)									1,914,267
Accrued profit sharing bonus to employees and compensation to directors									23,394,021															26,646,996
Accrued expenses and other current liabilities									(42,705,588						)									1,512,486
Other noncurrent liabilities									16,746,143															71,747,862
Net defined benefit liability									(716,449						)									(2,523,619						)
Cash generated from operations									673,326,030															771,121,962
Income taxes paid									(120,833,306						)									(60,102,845						)
Net cash generated by operating activities									552,492,724															711,019,117

(Continued)

- 6 -

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

						Six Months Ended June 30
						2023															2022
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Financial instruments at fair value through profit or loss						$						(229,044			)						$						-
Financial assets at fair value through other comprehensive income									(33,464,026						)									(40,949,130						)
Financial assets at amortized cost									(74,998,619						)									(80,240,090						)
Property, plant and equipment									(553,032,845						)									(479,857,668						)
Intangible assets									(2,220,933						)									(3,805,347						)
Proceeds from disposal or redemption of:
Financial assets at fair value through other comprehensive income									20,019,915															32,886,262
Financial assets at amortized cost									75,503,314															1,970,939
Property, plant and equipment									243,445															672,885
Intangible assets									1,539															-
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income									105,981															300
Derecognition of hedging financial instruments									(1,367						)									1,519,511
Interest received									26,625,674															4,322,973
Proceeds from government grants - property, plant and equipment									10,310,668															336,599
Proceeds from government grants - others									1,152															874
Other dividends received									241,947															204,090
Dividends received from investments accounted for using equity method									653,631															326,816
Increase in prepayments for leases									(33,489						)									-
Refundable deposits paid									(1,557,269						)									(1,768,173						)
Refundable deposits refunded									272,455															373,262
Net cash used in investing activities									(531,557,871						)									(564,005,897						)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term loans									-															4,048,589
Increase in hedging financial liabilities - bank loans									7,674,240															-
Proceeds from issuance of bonds									60,000,000															128,442,844
Repayment of bonds									(12,000,000						)									-
Proceeds from long-term bank loans									2,450,000															500,000
Repayment of long-term bank loans									(786,944						)									-
Payments for transaction costs attributable to the issuance of bonds									(62,070						)									(285,272						)
Treasury stock acquired									-															(871,566						)
Repayment of the principal portion of lease liabilities									(1,400,882						)									(1,122,427						)
Interest paid									(7,421,274						)									(4,657,300						)
Guarantee deposits received									184,899															123,240
Guarantee deposits refunded									(169,956						)									(5,683						)
Cash dividends									(142,617,093						)									(142,617,093						)
Increase in non-controlling interests									3,073,165															16,438,934
Net cash used in financing activities									(91,075,915						)									(5,734						)

(Continued)

- 7 -

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

						Six Months Ended June 30
						2023															2022
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS						$	4,050,963														$	41,191,519
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS												(66,090,099			)									188,199,005
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD												1,342,814,083												1,064,990,192
CASH AND CASH EQUIVALENTS, END OF PERIOD						$	1,276,723,984														$	1,253,189,197

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

(Concluded)

- 8 -

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

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

1.    GENERAL

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

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

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

2.    THE AUTHORIZATION OF FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved and authorized for issue by the Board of Directors on August 8, 2023.

3.    APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

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

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

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

New, Revised or Amended Standards and Interpretations						Effective Date Issued by IASB
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”						To be determined by IASB
Amendments to IAS 12 “International Tax Reform - Pillar Two Model Rules”						Note
Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” and “Non-current Liabilities with Covenants”						January 1, 2024

Note:    The requirement that the Company applies the exception and the requirement to disclose that fact is applied immediately upon issuance of the amendments in May 2023. The remaining disclosure requirements are applied for annual reporting periods beginning on or after January 1, 2023, but not for any interim period ending on or before December 31, 2023.

- 9 -

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

4.    SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

Except for the following, the accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2022.

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

Statement of Compliance

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

Basis of Consolidation

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

The basis of preparation and the basis for the consolidated financial statements applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2022.

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						June 30, 2023															December 31, 2022												June 30, 2022									Note
TSMC						TSMC North America						Sales and marketing of integrated circuits and other semiconductor devices						San Jose, California, U.S.A.									100%															100%												100%						-
						TSMC Europe B.V. (TSMC Europe)						Customer service and supporting activities						Amsterdam, the Netherlands									100%															100%												100%						a)
						TSMC Japan Limited (TSMC Japan)						Customer service and supporting activities						Yokohama, Japan									100%															100%												100%						a)
						TSMC Design Technology Japan, Inc. (TSMC JDC)						Engineering support activities						Yokohama, Japan									100%															100%												100%						a)
						TSMC Japan 3DIC R&D Center, Inc. (TSMC 3DIC)						Engineering support activities						Yokohama, Japan									100%															100%												100%						a)
						TSMC Korea Limited (TSMC Korea)						Customer service and supporting activities						Seoul, Korea									100%															100%												100%						a)
						TSMC Partners, Ltd. (TSMC Partners)						Investing in companies involved in the semiconductor design and manufacturing, and other investment activities						Tortola, British Virgin Islands									100%															100%												100%						-
						TSMC Global, Ltd. (TSMC Global)						Investment activities						Tortola, British Virgin Islands									100%															100%												100%						-
						TSMC China Company Limited (TSMC China)						Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices						Shanghai, China									100%															100%												100%						-
						TSMC Nanjing Company Limited (TSMC Nanjing)						Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices						Nanjing, China									100%															100%												100%						-

(Continued)

- 10 -

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Establishment

Percentage of Ownership

Name of Investor

Name of Investee

Main Businesses and Products

and Operating Location

June 30, 2023

December 31, 2022

June 30, 2022

Note

TSMC

VisEra Technologies Company Ltd. (VisEra Tech)

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

Hsin-Chu, Taiwan

68%

68%

68%

-

TSMC Arizona Corporation (TSMC Arizona)

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

Phoenix, Arizona, U.S.A.

100%

100%

100%

b)

Japan Advanced Semiconductor Manufacturing, Inc.（JASM）

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

Kumamoto, Japan

71%

71%

71%

a), c)

European Semiconductor Manufacturing Company GmbH (ESMC)

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

Dresden, Germany

100%

-

-

a), d)

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

Investing in technology start-up companies

Cayman Islands

98%

98%

98%

a)

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

Investing in technology start-up companies

Cayman Islands

98%

98%

98%

a)

Emerging Fund L.P. (Emerging Fund)

Investing in technology start-up companies

Cayman Islands

99.9%

99.9%

99.9%

a)

TSMC Partners

TSMC Development, Inc. (TSMC Development)

Investing in companies involved in semiconductor manufacturing

Delaware, U.S.A.

100%

100%

100%

-

TSMC Technology, Inc. (TSMC Technology)

Engineering support activities

Delaware, U.S.A.

100%

100%

100%

a)

TSMC Design Technology Canada Inc. (TSMC Canada)

Engineering support activities

Ontario, Canada

100%

100%

100%

a)

TSMC Development

WaferTech, LLC (WaferTech)

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

Washington, U.S.A.

100%

100%

100%

-

VTAF III

Growth Fund Limited (Growth Fund)

Investing in technology start-up companies

Cayman Islands

100%

100%

100%

a)

(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:    Under the terms of the development agreement entered into between TSMC Arizona and the City of Phoenix, the City of Phoenix commits approximately US$205 million toward various public infrastructure projects in the area of the proposed manufacturing facility, conditioned on TSMC Arizona’s achieving a minimum project scale with defined spending and job-creation thresholds.

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

Note d:    ESMC is established in June 2023.

Retirement Benefits

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

Hedge Accounting

Hedges of net investments in foreign operations

Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gains or losses on the hedging instrument relating to the effective portion of the hedge are recognized in other comprehensive income and accumulated under the heading of foreign currency translation reserve. The gains or losses relating to the ineffective portion are recognized immediately in profit or loss.

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

Taxation

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

- 11 -

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

The same material accounting judgments and key sources of estimates and uncertainty have been followed in these consolidated financial statements as were applied in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2022.

6.    CASH AND CASH EQUIVALENTS

						June 30, 2023															December 31, 2022															June 30, 2022
Cash and deposits in banks						$	1,246,793,642														$	1,327,884,602														$	1,243,646,154
Commercial paper									18,279,404																		9,566,430															5,192,945
Money market funds									9,995,312																		1,406,792															595,128
Repurchase agreements									1,229,635																		1,133,310															-
Government bonds/Agency bonds									425,991																		2,451,570															3,754,970
Corporate bonds									-																		371,379															-
						$	1,276,723,984														$	1,342,814,083														$	1,253,189,197

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

						June 30, 2023															December 31, 2022															June 30, 2022
Financial assets
Mandatorily measured at FVTPL
Forward exchange contracts						$	848,966														$	947,546														$	214,215
Convertible bonds									126,618															122,852															-
Mutual funds									108,955															-															-
						$	1,084,539														$	1,070,398														$	214,215
Current						$	975,584														$	1,070,398														$	214,215
Noncurrent									108,955															-															-
						$	1,084,539														$	1,070,398														$	214,215
Financial liabilities
Held for trading
Forward exchange contracts						$	195,001														$	116,215														$	716,981

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.

- 12 -

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Outstanding forward exchange contracts consisted of the following:

Contract Amount

Maturity Date

(In Thousands)

June 30, 2023

Sell NT$

July 2023 to October 2023

NT$

69,835,705

Sell US$

July 2023 to August 2023

US$

507,500

Sell RMB

July 2023 to August 2023

RMB

1,073,640

December 31, 2022

Sell NT$

January 2023 to March 2023

NT$

79,610,590

Sell US$

January 2023 to March 2023

US$

752,486

Sell RMB

January 2023 to March 2023

RMB

1,448,371

June 30, 2022

Sell NT$

July 2022 to August 2022

NT$

97,269,884

Sell US$

July 2022 to September 2022

US$

1,313,561

Sell RMB

July 2022 to August 2022

RMB

1,484,671

8.    FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

						June 30, 2023															December 31, 2022															June 30, 2022
Investments in debt instruments at FVTOCI
Corporate bonds						$	72,934,420														$	66,116,166														$	61,646,977
Agency mortgage-backed securities									34,297,965															28,367,926															30,091,899
Government bonds/ Agency bonds									23,649,717															18,961,888															20,173,783
Asset-backed securities									9,469,578															9,274,697															8,642,271
									140,351,680															122,720,677															120,554,930
Investments in equity instruments at FVTOCI
Non-publicly traded equity investments									7,516,718															6,159,200															6,503,252
Publicly traded stocks									423,249															277,866															399,576
									7,939,967															6,437,066															6,902,828
						$	148,291,647														$	129,157,743														$	127,457,758
Current						$	140,774,929														$	122,998,543														$	120,954,506
Noncurrent									7,516,718															6,159,200															6,503,252
						$	148,291,647														$	129,157,743														$	127,457,758

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.

- 13 -

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For the six months ended June 30, 2023 and 2022, as the Company adjusted its investment portfolio, equity investments designated at FVTOCI were divested for NT$158,109 thousand and NT$36,025 thousand, respectively. The related other equity-unrealized gain/loss on financial assets at FVTOCI of NT$100,478 thousand and NT$7,447 thousand were transferred to increase retained earnings, respectively.

As of June 30, 2023 and 2022, the cumulative loss allowance for expected credit loss of NT$45,029 thousand and NT$35,164 thousand was recognized under investments in debt instruments at FVTOCI, respectively. Refer to Note 31 for information relating to the credit risk management and expected credit loss.

9.    FINANCIAL ASSETS AT AMORTIZED COST

						June 30, 2023															December 31, 2022															June 30, 2022
Corporate bonds						$	107,485,902														$	81,041,056														$	48,153,344
Commercial paper									15,635,258															48,742,817															37,179,685
Government bonds/Agency bonds									8,541,426															-															-
Less: Allowance for impairment loss									(71,056						)									(56,439						)									(27,545						)
						$	131,591,530														$	129,727,434														$	85,305,484
Current						$	71,452,494														$	94,600,219														$	51,165,762
Noncurrent									60,139,036															35,127,215															34,139,722
						$	131,591,530														$	129,727,434														$	85,305,484

Refer to Note 31 for information relating to credit risk management and expected credit loss for financial assets at amortized cost.

10.    HEDGING FINANCIAL INSTRUMENTS

						June 30, 2023															December 31, 2022															June 30, 2022
Financial assets - current
Fair value hedges
Interest rate futures contracts						$	29,704														$	2,329														$	44,686
Financial liabilities - current
Fair value hedges
Interest rate futures contracts						$						-									$	813														$						-
Hedges of net investments in foreign operations
Bank loans									7,237,440															-															-
						$	7,237,440														$	813														$						-

Fair value hedge

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

- 14 -

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

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

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

June 30, 2023

Hedging Instruments

Contract Amount (US$ in Thousands)

Maturity

Interest rate futures contracts - US Treasury futures

US$

55,800

September 2023

Hedged Items						Asset Carrying Amount												Accumulated Amount of Fair Value Hedge Adjustments
Financial assets at FVTOCI						$	3,475,661											$			(29,704)

December 31, 2022

Hedging Instruments

Contract Amount (US$ in Thousands)

Maturity

Interest rate futures contracts - US Treasury futures

US$

74,300

March 2023

Hedged Items						Asset Carrying Amount												Accumulated Amount of Fair Value Hedge Adjustments
Financial assets at FVTOCI						$	4,008,179											$			(1,516)

June 30, 2022

Hedging Instruments

Contract Amount (US$ in Thousands)

Maturity

Interest rate futures contracts - US Treasury futures

US$

83,800

September 2022

Hedged Items						Asset Carrying Amount												Accumulated Amount of Fair Value Hedge Adjustments
Financial assets at FVTOCI						$	4,199,391											$			(44,686)

- 15 -

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The effect for the six months ended June 30, 2023 and 2022 is detailed below:

						Change in Value Used for Calculating Hedge Ineffectiveness
						Six Months Ended June 30
Hedging Instruments/Hedged Items						2023															2022
Hedging Instruments
Interest rate futures contracts - US Treasury futures						$	26,709														$	188,504
Hedged Items
Financial assets at FVTOCI									(26,709						)									(188,504						)
						$						-									$						-

Cash flow hedge

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

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

The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of the counterparty’s own credit risk on the fair value of forward contracts. No other sources of ineffectiveness have emerged from these hedging relationships during the hedging period. For the six months ended June 30, 2023 and 2022, refer to Note 20 (d) for gain or loss arising from changes in the fair value of hedging instruments, the amount transferred to initial carrying amount of hedged items and the amount reclassified to finance costs of hedged items.

The effect for the six months ended June 30, 2023 and 2022 is detailed below:

						Change in Value Used for Calculating Hedge Ineffectiveness
						Six Months Ended June 30
Hedging Instruments/Hedged Items						2023															2022
Hedging Instruments
Forward exchange contracts (capital expenditures)						$	39,898														$						-
Forward interest rate contracts (issuance of debts)						$						-									$	1,356,697
Hedged Items
Forecast transaction (capital expenditures)						$						(39,898			)						$						-
Forecast transaction (issuance of debts)						$						-									$						(1,356,697			)

Hedges of net investments in foreign operations

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

- 16 -

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The main source of hedge ineffectiveness in these hedging relationships is driven by the material difference between the notional amount of foreign currency bank loans and the net investment in foreign operations. No other sources of ineffectiveness have emerged from these hedging relationships during the hedging period. For the six months ended June 30, 2023, 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.

June 30, 2023

Hedging Instruments

Contract Amount (In Thousands)

Annual interest rate

Maturity

Balance in Other Equity (Continuing Hedges)

Bank loans

JPY

33,600,000

0.06%

October 2023

$

436,800

The effect for the six months ended June 30, 2023 is detailed below:

												Change in Value Used for Calculating Hedge Ineffectiveness
Hedging Instruments/Hedged Items												Six Months Ended June 30, 2023
Hedging Instruments
Bank loans												$	436,800
Hedged Items
Net investments in foreign operations												$						(436,800			)

11.    NOTES AND ACCOUNTS RECEIVABLE, NET

						June 30, 2023															December 31, 2022															June 30, 2022
At amortized cost
Notes and accounts receivable						$	186,145,621														$	222,761,927														$	215,927,656
Less: Loss allowance									(588,769						)									(331,646						)									(302,959						)
									185,556,852															222,430,281															215,624,697
At FVTOCI									4,607,390															7,325,606															5,371,840
						$	190,164,242														$	229,755,887														$	220,996,537

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.

- 17 -

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

Aging analysis of notes and accounts receivable

						June 30, 2023															December 31, 2022															June 30, 2022
Not past due						$	173,149,323														$	205,053,142														$	215,112,852
Past due
Past due within 30 days									17,591,617															24,516,277															6,180,424
Past due over 31 days									12,071															518,114															6,220
Less: Loss allowance									(588,769						)									(331,646						)									(302,959						)
						$	190,164,242														$	229,755,887														$	220,996,537

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

Movements of the loss allowance for accounts receivable

						Six Months Ended June 30
						2023															2022
Balance, beginning of period						$	331,646														$	347,020
Provision (Reversal)									257,115															(44,116						)
Effect of exchange rate changes									8															55
Balance, end of period						$	588,769														$	302,959

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

12.    INVENTORIES

						June 30, 2023															December 31, 2022															June 30, 2022
Finished goods						$	30,939,982														$	54,818,402														$	37,577,314
Work in process									155,465,029															125,661,912															150,299,451
Raw materials									28,893,383															20,389,115															11,536,389
Supplies and spare parts									19,034,555															20,279,719															18,024,937
						$	234,332,949														$	221,149,148														$	217,438,091

- 18 -

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

						Three Months Ended June 30																								Six Months Ended June 30
						2023												2022												2023												2022
Net inventory losses (reversal of write-down of inventories)						$			(1,231,061			)						$	1,318,633											$	2,921,021											$	1,257,466

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						June 30, 2023												December 31, 2022												June 30, 2022															June 30, 2023												December 31, 2022												June 30, 2022
Vanguard International Semiconductor Corporation (VIS)						Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks						Hsinchu, Taiwan						$	12,362,214											$	13,492,653											$	11,387,537																	28%												28%												28%
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)						Manufacturing and sales of integrated circuits and other semiconductor devices						Singapore									9,495,090												8,934,731															7,914,636												39%												39%												39%
Xintec Inc. (Xintec)						Wafer level chip size packaging and wafer level post passivation interconnection service						Taoyuan, Taiwan									3,369,676												3,528,417															3,092,962												41%												41%												41%
Global Unichip Corporation (GUC)						Researching, developing, manufacturing, testing and marketing of integrated circuits						Hsinchu, Taiwan									1,602,458												1,666,651															1,381,336												35%												35%												35%
Mutual-Pak Technology Co., Ltd. (Mutual-Pak)						Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID						New Taipei, Taiwan									15,958												19,053															21,047												28%												28%												28%
																		$	26,845,396											$	27,641,505											$	23,797,518

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						June 30, 2023												December 31, 2022												June 30, 2022
GUC						$	74,934,014											$	29,926,918											$	22,456,860
VIS						$	40,851,667											$	35,977,321											$	35,652,364
Xintec						$	14,299,727											$	10,716,449											$	14,299,727

14.    PROPERTY, PLANT AND EQUIPMENT

						June 30, 2023															December 31, 2022															June 30, 2022
Assets used by the Company						$	2,947,218,157														$	2,693,815,688														$	2,248,294,450
Assets subject to operating leases									15,236																		21,282															24,337
						$	2,947,233,393														$	2,693,836,970														$	2,248,318,787

- 19 -

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Assets used by the Company

						Land and Land Improvements															Buildings															Machinery and Equipment															Office Equipment															Equipment under Installation and Construction in Progress															Total
Cost
Balance at January 1, 2023						$	7,661,817														$	637,046,949														$	4,295,942,530														$	85,028,040														$	1,336,842,608														$	6,362,521,944
Additions (deductions)									-															151,309,857																		816,891,540												12,105,714															(496,885,682						)												483,421,429
Disposals or retirements									-															(430,721						)												(7,695,699			)									(499,746						)									-																		(8,626,166			)
Transfers from right-of-use assets									-															-																		4,444												-															-																		4,444
Transfers from assets subject to operating leases									-															-																		65,779												-															-																		65,779
Transfers to assets subject to operating leases									-															-																		(14,592			)									-															-																		(14,592			)
Effect of exchange rate changes									(5,526						)									(1,108,367						)												(4,572,099			)									(93,334						)									754,081																		(5,025,245			)
Balance at June 30, 2023						$	7,656,291														$	786,817,718														$	5,100,621,903														$	96,540,674														$	840,711,007														$	6,832,347,593
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									645															20,316,376																		202,739,563												4,953,562															-																		228,010,146
Disposals or retirements									-															(428,886						)												(7,144,882			)									(498,696						)									-																		(8,072,464			)
Transfers from right-of-use assets									-															-																		1,851												-															-																		1,851
Transfers from assets subject to operating leases									-															-																		50,132												-															-																		50,132
Transfers to assets subject to operating leases									-															-																		(1,702			)									-															-																		(1,702			)
Effect of exchange rate changes									7,563															(521,007						)												(2,996,087			)									(55,252						)									-																		(3,564,783			)
Balance at June 30, 2023						$	564,369														$	362,304,842														$	3,457,529,755														$	63,939,730														$	790,740														$	3,885,129,436
Carrying amounts at January 1, 2023						$	7,105,656														$	294,108,590														$	1,031,061,650														$	25,487,924														$	1,336,051,868														$	2,693,815,688
Carrying amounts at June 30, 2023						$						7,091,922									$	424,512,876														$			1,643,092,148												$						32,600,944									$						839,920,267									$			2,947,218,157
Cost
Balance at January 1, 2022						$	6,488,230														$	576,597,777														$	3,984,749,236														$	76,154,170														$	593,155,733														$	5,237,145,146
Additions									702,377															17,408,443																		189,771,300												3,934,410															277,066,417																		488,882,947
Disposals or retirements									-															(59,270						)												(12,787,092			)									(104,176						)									-																		(12,950,538			)
Transfers to assets subject to operating leases									-															-																		(54,042			)									-															-																		(54,042			)
Effect of exchange rate changes									191,565															1,189,079																		5,660,892												192,520															3,371,590																		10,605,646
Balance at June 30, 2022						$	7,382,172														$	595,136,029														$	4,167,340,294														$	80,176,924														$	873,593,740														$	5,723,629,159
Accumulated depreciation   and impairment
Balance at January 1, 2022						$	499,826														$	306,165,242														$	2,903,539,441														$	51,826,663														$						-									$	3,262,031,172
Additions									682															17,675,386																		196,242,367												4,643,691															-																		218,562,126
Disposals or retirements									-															(48,143						)												(12,076,798			)									(103,804						)									-																		(12,228,745			)
Transfers to assets subject to operating leases									-															-																		(32,245			)									-															-																		(32,245			)
Impairment									-															-																		-												-															790,740																		790,740
Effect of exchange rate changes									37,014															878,755																		5,142,161												153,731															-																		6,211,661
Balance at June 30, 2022						$	537,522														$	324,671,240														$	3,092,814,926														$	56,520,281														$	790,740														$	3,475,334,709
Carrying amounts at January 1, 2022						$	5,988,404														$	270,432,535														$	1,081,209,795														$	24,327,507														$	593,155,733														$	1,975,113,974
Carrying amounts at June 30, 2022						$	6,844,650														$	270,464,789														$	1,074,525,368														$	23,656,643														$	872,803,000														$	2,248,294,450

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

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

Information about capitalized interest is set out in Note 23.

- 20 -

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15.    LEASE ARRANGEMENTS

a.    Right-of-use assets

						June 30, 2023															December 31, 2022															June 30, 2022
Carrying amounts
Land						$	38,449,024														$	38,525,856														$	31,286,996
Buildings									3,125,900															3,356,700															2,972,876
Machinery and equipment									-															2,965															3,301
Office equipment									20,086															28,615															30,359
						$	41,595,010														$	41,914,136														$	34,293,532

						Six Months Ended June 30
						2023												2022
Additions to right-of-use assets						$	1,498,150											$	3,110,808

						Three Months Ended June 30																														Six Months Ended June 30
						2023															2022															2023															2022
Depreciation of right-of-use assets
Land						$	613,796														$	481,599														$	1,219,629														$	948,561
Buildings									234,865															230,402															481,873															450,000
Machinery and equipment									149															214															369															416
Office equipment									6,007															5,748															12,031															11,707
						$	854,817														$	717,963														$	1,713,902														$	1,410,684

b.    Lease liabilities

						June 30, 2023															December 31, 2022															June 30, 2022
Carrying amounts
Current portion (classified under accrued expenses and other current liabilities)						$	2,638,203														$	2,603,504														$	2,240,263
Noncurrent portion									29,734,633															29,764,097															22,510,412
						$	32,372,836														$	32,367,601														$	24,750,675

Ranges of discount rates for lease liabilities are as follows:

						June 30, 2023															December 31, 2022																		June 30, 2022
Land									0.39%-2.30%																					0.39%-2.30%																					0.39%-1.78%
Buildings									0.40%-6.36%																					0.39%-5.63%																					0.39%-3.88%
Machinery and equipment									-																					0.71%																					0.71%
Office equipment									0.28%-4.71%																					0.28%-4.71%																					0.28%-3.88%

- 21 -

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c.    Material terms of right-of-use assets

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

d.    Other lease information

						Three Months Ended June 30																								Six Months Ended June 30
						2023												2022												2023												2022
Expenses relating to short-term leases						$	505,077											$	1,185,788											$	1,014,435											$	2,318,378

						Six Months Ended June 30
						2023												2022
Total cash outflow for leases						$	2,842,410											$	3,624,783

16.    INTANGIBLE ASSETS

						Goodwill															Technology License Fees															Software and System Design Costs															Patent and Others															Total
Cost
Balance at January 1, 2023						$	5,791,821														$	25,759,019														$	48,675,794														$	11,701,892														$	91,928,526
Additions									-															420,216															1,845,399															72,337															2,337,952
Disposals or retirements									-															-															(45,697						)									-															(45,697						)
Effect of exchange rate changes									56,623															1,909															(22,165						)									22,618															58,985
Balance at June 30, 2023						$	5,848,444														$	26,181,144														$	50,453,331														$	11,796,847														$	94,279,766
Accumulated amortization and   impairment
Balance at January 1, 2023						$						-									$	17,696,437														$	38,838,394														$	9,394,540														$	65,929,371
Additions									-															1,411,733															2,547,692															575,567															4,534,992
Disposals or retirements									-															-															(45,697						)									-															(45,697						)
Effect of exchange rate changes									-															1,909															(16,667						)									25,925															11,167
Balance at June 30, 2023						$						-									$	19,110,079														$	41,323,722														$	9,996,032														$	70,429,833
Carrying amounts at January 1, 2023						$	5,791,821														$	8,062,582														$	9,837,400														$	2,307,352														$	25,999,155
Carrying amounts at June 30, 2023						$	5,848,444														$	7,071,065														$	9,129,609														$	1,800,815														$	23,849,933
Cost
Balance at January 1, 2022						$	5,379,164														$	23,533,959														$	43,650,957														$	11,497,309														$	84,061,389
Additions									-															1,945,779															2,342,902															169,692															4,458,373
Disposals or retirements									-															-															(51,896						)									-															(51,896						)
Effect of exchange rate changes									278,092															2,933															12,201															1,975															295,201
Balance at June 30, 2022						$	5,657,256														$	25,482,671														$	45,954,164														$	11,668,976														$	88,763,067
Accumulated amortization and   impairment
Balance at January 1, 2022						$						-									$	14,912,293														$	34,121,578														$	8,205,821														$	57,239,692
Additions									-															1,358,008															2,402,246															591,456															4,351,710
Disposals or retirements									-															-															(51,896						)									-															(51,896						)
Effect of exchange rate changes									-															2,933															10,729															906															14,568
Balance at June 30, 2022						$						-									$	16,273,234														$	36,482,657														$	8,798,183														$	61,554,074
Carrying amounts at January 1, 2022						$	5,379,164														$	8,621,666														$	9,529,379														$	3,291,488														$	26,821,697
Carrying amounts at June 30, 2022						$	5,657,256														$	9,209,437														$	9,471,507														$	2,870,793														$	27,208,993

- 22 -

---

The Company’s goodwill has been tested for impairment at the end of the annual reporting period and the recoverable amount is determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering the future five-year period, and the Company used annual discount rate of 8.7% in its test of impairment as of December 31, 2022 to reflect the relevant specific risk in the cash-generating unit.

17.    SHORT-TERM LOANS

June 30, 2022

Unsecured loans

Amount

$

115,584,794

Loan content

EUR (in thousands)

$

3,694,575

Annual interest rate

(0.28)%-0%

Maturity date

Due by September 2022

18.    BONDS PAYABLE

						June 30, 2023															December 31, 2022															June 30, 2022
Domestic unsecured bonds						$	428,360,000														$	379,526,000														$	342,244,000
Overseas unsecured bonds									482,515,000															476,051,500															430,969,000
Less: Discounts on bonds payable									(3,064,701						)									(3,141,061						)									(2,923,177						)
Less: Current portion									(6,100,000						)									(18,100,000						)									(16,400,000						)
						$	901,710,299														$	834,336,439														$	753,889,823

The Company issued domestic unsecured bonds for the six months ended June 30, 2023, the major terms are as follows:

Issuance

Tranche

Issuance Period

Total Amount

Coupon Rate

Repayment and Interest Payment

NT$ unsecured   bonds

112-1 (Green bond)

A

March 2023 to March 2028

$

12,200,000

1.54%

Bullet repayment; interest payable annually

B

March 2023 to March 2030

2,300,000

1.60%

The same as above

C

March 2023 to March 2033

4,800,000

1.78%

The same as above

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

(Continued)

- 23 -

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Issuance

Tranche

Issuance Period

Total Amount

Coupon Rate

Repayment and Interest Payment

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

(Concluded)

The major terms of overseas unsecured bonds are as follows:

Issuance Period						Total Amount (US$ in Thousands)															Coupon Rate												Repayment and Interest Payment
September 2020 to September 2025						US$						1,000,000												0.75%									Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually
September 2020 to September 2027									750,000															1.00%									The same as above
September 2020 to September 2030									1,250,000															1.375%									The same as above
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
October 2021 to October 2026									1,250,000															1.75%									The same as above
October 2021 to October 2031									1,250,000															2.50%									The same as above
October 2021 to October 2041									1,000,000															3.125%									The same as above
October 2021 to October 2051									1,000,000															3.25%									The same as above
April 2022 to April 2027									1,000,000															3.875%									The same as above
April 2022 to April 2029									500,000															4.125%									The same as above
April 2022 to April 2032									1,000,000															4.25%									The same as above
April 2022 to April 2052									1,000,000															4.50%									The same as above
July 2022 to July 2027									400,000															4.375%									The same as above
July 2022 to July 2032									600,000															4.625%									The same as above

- 24 -

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19.    LONG-TERM BANK LOANS

						June 30, 2023															December 31, 2022															June 30, 2022
Unsecured loans						$	7,676,389														$	6,013,333														$	4,010,000
Less: Discounts on government grants									(39,695						)									(39,397						)												(32,060			)
Less: Current portion									(2,025,556						)									(1,213,889						)												(659,167			)
						$	5,611,138														$	4,760,047														$	3,318,773
Loan content
Annual interest rate									1.15%-1.35%															1.03%-1.23%																		0.40%-0.98%
Maturity date									Due by December 2027															Due by December 2027															Due by May 2027

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

20.    EQUITY

a.    Capital stock

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

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

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

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

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

On May 10, 2022, TSMC’s Board of Directors resolved to cancel 1,387 thousand treasury shares. Refer to Note 20 (e) for information.

As of June 30, 2023, TSMC issued the total number of outstanding ADSs of 1,063,229 thousand units, representing 5,316,144 thousand common shares.

- 25 -

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b.    Capital surplus

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

						June 30, 2023															December 31, 2022															June 30, 2022
May be used to offset a deficit, distributed as   cash dividends, or transferred to share   capital
Additional paid-in capital						$	24,406,854														$	24,183,645														$	24,183,645
From merger									22,803,291															22,803,291															22,803,291
From convertible bonds									8,892,371															8,892,371															8,892,371
From difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal									8,406,282															8,406,282															8,406,282
Donations - donated by shareholders									11,275															11,275															11,275
May only be used to offset a deficit
From share of changes in equities of subsidiaries									4,225,043															4,229,892															4,249,344
From share of changes in equities of associates									312,863															311,863															308,938
Donations - unclaimed dividend									53,680															53,680															40,475
May not be used for any purpose
Employee restricted shares									783,883															438,029															438,029
						$	69,895,542														$	69,330,328														$	69,333,650

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.

- 26 -

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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 2023, 2022 and 2021 quarterly earnings have been approved by TSMC’s Board of Directors in its meeting, respectively. The appropriations and cash dividends per share were as follows:

																		Second Quarter												First Quarter
Resolution Date of TSMC’s																		of 2023												of 2023
Board of Directors in its																		August 8,												May 9,
meeting																		2023												2023
Special capital reserve																		$			(6,365,562			)						$	3,273,452
Cash dividends to shareholders																		$	77,796,213											$	77,796,213
Cash dividends per share (NT$)																		$	3											$	3

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

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

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

d.    Others

Changes in others were as follows:

						Six Months Ended June 30, 2023
						Foreign Currency Translation Reserve															Unrealized Gain (Loss) on Financial Assets at FVTOCI															Gain (Loss) on Hedging Instruments															Unearned Stock-Based Employee Compensation															Total
Balance, beginning of period						$			(11,743,301						)						$						(10,056,353			)						$	1,479,181														$						(185,153			)						$			(20,505,626						)
Exchange differences arising on translation of foreign operations												1,393,556												-															-															-																		1,393,556
Gain (Loss) on hedging instruments designated as hedges of net investments in foreign operations												436,800												-															-															-																		436,800

(Continued)

- 27 -

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						Six Months Ended June 30, 2023
						Foreign Currency Translation Reserve															Unrealized Gain (Loss) on Financial Assets at FVTOCI															Gain (Loss) on Hedging Instruments															Unearned Stock-Based Employee Compensation															Total
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments						$						-									$	995,809														$						-									$						-									$	995,809
Debt instruments									-															137,018															-															-																		137,018
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal									-															(100,478						)									-															-																		(100,478			)
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal									-															257,553															-															-																		257,553
Loss allowance adjustments from debt instruments									-															6,605															-															-																		6,605
Gain (loss) arising on changes in the fair value of hedging instruments									-															-															3,639															-																		3,639
Transferred to initial carrying amount of hedged items									-															-															(43,557						)									-																		(43,557			)
Issuance of shares									-															-															-															(585,968						)												(585,968			)
Share-based payment expenses recognized									-															-															-															223,084																		223,084
Share of other comprehensive income (loss) of associates									50,206															(52,560						)									7,544															-																		5,190
Income tax effect									-															(25						)									-															-																		(25			)
Balance, end of period						$						(9,862,739			)						$						(8,812,431			)						$	1,446,807														$						(548,037			)						$			(17,776,400						)

(Concluded)

						Six Months Ended June 30, 2022
						Foreign Currency Translation Reserve															Unrealized Gain (Loss) on Financial Assets at FVTOCI															Gain (Loss) on Hedging Instruments															Unearned Stock-Based Employee Compensation															Total
Balance, beginning of period						$						(63,303,361			)						$	574,310														$	120,536														$						-									$			(62,608,515						)
Exchange differences arising on translation of foreign operations									33,993,498															-															-															-																		33,993,498
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments									-															172,302															-															-																		172,302
Debt instruments									-															(8,533,984						)									-															-																		(8,533,984			)
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal									-															(7,447						)									-															-																		(7,447			)
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal									-															245,151															-															-																		245,151
Loss allowance adjustments from debt instruments									-															(532						)									-															-																		(532			)
Gain (loss) arising on changes in the fair value of hedging instruments									-															-															1,342,584															-																		1,342,584
Transferred to initial carrying amount of hedged items									-															-															(20,724						)									-																		(20,724			)
Issuance of shares									-															-															-															(451,899						)												(451,899			)
Share-based payment expenses recognized									-															-															-															106,698																		106,698
Share of other comprehensive income (loss) of associates									291,650															(1,502						)									56,589															-																		346,737
Income tax effect									-															231															6,036															-																		6,267
Balance, end of period						$						(29,018,213			)						$						(7,551,471			)						$	1,505,021														$						(345,201			)						$			(35,409,864						)

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

- 28 -

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e.    Treasury stock

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

21.    NET REVENUE

a.Disaggregation of revenue from contracts with customers

						Three Months Ended June 30																														Six Months Ended June 30
Product						2023															2022															2023															2022
Wafer						$	421,037,379														$	475,781,237														$	869,420,284														$	914,417,988
Others									59,803,875															58,359,571															120,053,943															110,798,693
						$	480,841,254														$						534,140,808									$	989,474,227														$	1,025,216,681

						Three Months Ended June 30																														Six Months Ended June 30
Geography						2023															2022															2023															2022
Taiwan						$	30,841,739														$	57,220,955														$	67,727,742														$	121,529,972
United States									301,455,420															334,036,299															608,407,139															640,162,981
China									55,461,079															67,466,165															132,963,102															122,802,779
Europe, the Middle East and Africa									33,814,781															30,516,978															67,775,037															56,397,199
Japan									35,533,393															27,232,242															69,190,260															51,803,418
Others									23,734,842															17,668,169															43,410,947															32,520,332
						$	480,841,254														$	534,140,808														$	989,474,227														$	1,025,216,681

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

						Three Months Ended June 30																														Six Months Ended June 30
Platform						2023															2022															2023															2022
High Performance Computing						$	214,359,340														$	228,940,670														$	439,891,374														$	431,185,832
Smartphone									159,366,872															201,555,759															333,739,147															397,555,653
Internet of Things									38,168,913															44,648,551															80,889,343															83,694,326
Automotive									37,275,507															27,041,397															73,298,157															50,772,615
Digital Consumer Electronics									13,657,809															15,245,696															24,586,963															29,724,532
Others									18,012,813															16,708,735															37,069,243															32,283,723
						$	480,841,254														$	534,140,808														$	989,474,227														$	1,025,216,681

						Three Months Ended June 30																														Six Months Ended June 30
Resolution						2023															2022															2023															2022
3-nanometer						$	483,710														$						-									$	483,710														$						-
5-nanometer									127,824,564															100,729,723															267,120,041															187,021,513
7-nanometer									97,189,205															142,919,242															186,030,861															275,244,347
10-nanometer									5,386															10,212															16,901															13,357
16-nanometer									44,651,154															64,478,129															102,267,410															125,345,668
20-nanometer									2,800,296															2,129,924															5,921,755															4,284,389

(Continued)

- 29 -

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						Three Months Ended June 30																														Six Months Ended June 30
Resolution						2023															2022															2023															2022
28-nanometer						$	47,590,123														$	49,533,008														$	99,647,165														$	96,980,103
40/45-nanometer									29,537,533															36,441,273															62,168,630															70,471,243
65-nanometer									27,994,410															22,537,887															55,424,489															43,724,793
90-nanometer									7,394,845															10,513,833															15,545,796															19,778,329
0.11/0.13 micron									9,799,907															12,701,869															20,517,722															26,078,454
0.15/0.18 micron									20,872,897															27,207,891															44,336,802															52,731,689
0.25 micron and above									4,893,349															6,578,246															9,939,002															12,744,103
Wafer revenue						$	421,037,379														$	475,781,237														$	869,420,284														$	914,417,988

(Concluded)

b.    Contract balances

						June 30, 2023												December 31, 2022												June 30, 2022												January 1, 2022
Contract liabilities (classified under accrued expenses and other current liabilities)						$	43,731,063											$	70,806,617											$	36,370,599											$	39,762,588

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

The Company recognized revenue from the beginning balance of contract liability, which amounted to NT$5,246,467 thousand and NT$4,816,703 thousand for the three months ended June 30, 2023 and 2022, respectively; and NT$63,410,156 thousand and NT$35,695,115 thousand for the six months ended June 30, 2023 and 2022, respectively.

c.    Temporary receipts from customers

						June 30, 2023															December 31, 2022															June 30, 2022
Current portion (classified under accrued expenses and other current liabilities)						$	116,219,823														$	107,723,580														$	64,819,768
Noncurrent portion (classified under other noncurrent liabilities)									170,651,817															168,399,207															185,078,181
						$	286,871,640														$	276,122,787														$	249,897,949

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.

- 30 -

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22.    INTEREST INCOME

						Three Months Ended June 30																														Six Months Ended June 30
						2023															2022															2023															2022
Interest income
Cash and cash equivalents						$	11,496,148														$	2,673,691														$	23,109,878														$	3,665,684
Financial assets at FVTOCI									936,014															602,121															1,767,708															1,142,611
Financial assets at amortized cost									1,239,859															270,133															2,412,253															411,529
						$	13,672,021														$	3,545,945														$	27,289,839														$	5,219,824

23.    FINANCE COSTS

						Three Months Ended June 30																														Six Months Ended June 30
						2023															2022															2023															2022
Interest expense
Corporate bonds						$	4,371,120														$	3,343,130														$	8,582,927														$	5,730,439
Lease liabilities									96,456															50,785															190,505															97,303
Bank loans									25,937															8,024															47,225															14,645
Others									1,040															88															1,115															175
Less: Capitalized interest under property, plant and equipment									(1,489,398						)									(497,796						)									(2,852,931						)									(797,565						)
						$	3,005,155														$	2,904,231														$	5,968,841														$	5,044,997

Information about capitalized interest is as follows:

						Three Months Ended June 30																																	Six Months Ended June 30
						2023												2022																					2023															2022
Capitalization rate									1.20%-3.36%																		0.72%-3.36%																					1.08%-3.36%																		0.56%-3.36%

24.    OTHER GAINS AND LOSSES, NET

						Three Months Ended June 30																														Six Months Ended June 30
						2023															2022															2023															2022
Loss on disposal of financial assets, net
Investments in debt instruments at FVTOCI						$						(121,860			)						$						(104,373			)						$						(257,553			)						$						(245,151			)
Gain (loss) on financial instruments at FVTPL, net
Mandatorily measured at FVTPL									1,663,170															(7,049,073						)									2,833,908															(7,421,976						)
The reversal (accrual) of expected credit loss of financial assets
Investments in debt instruments at FVTOCI									(3,096						)									1,171															(6,605						)									532
Financial assets at amortized cost									(11,054						)									(12,281						)									(13,709						)									(23,410						)
Other gains (losses), net									153,815															(237,606						)									425,212															19,547
						$	1,680,975														$						(7,402,162			)						$	2,981,253														$						(7,670,458			)

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25.    INCOME TAX

a.    Income tax expense recognized in profit or loss

Income tax expense consisted of the following:

						Three Months Ended June 30																														Six Months Ended June 30
						2023															2022															2023															2022
Current income tax expense
Current tax expense recognized in the current period						$	31,914,666														$	34,088,064														$	70,020,998														$	62,764,254
Income tax adjustments on prior years									2,041															(489,636						)									4,340															(523,244						)
Other income tax adjustments									50,960															46,337															115,826															86,804
									31,967,667															33,644,765															70,141,164															62,327,814
Deferred income tax expense (benefit)
The origination and reversal of temporary differences									45,198															(5,754,159						)									(802,404						)									(9,528,886						)
Investment tax credits									945,038															927,423															945,038															(22,577						)
									990,236															(4,826,736						)									142,634															(9,551,463						)
Income tax expense recognized in profit or loss						$	32,957,903														$	28,818,029														$	70,283,798														$	52,776,351

b.    Income tax examination

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

26.    EARNINGS PER SHARE

						Three Months Ended June 30																								Six Months Ended June 30
						2023												2022												2023												2022
Basic EPS						$	7.01											$	9.14											$	14.99											$	16.96
Diluted EPS						$	7.01											$	9.14											$	14.99											$	16.96

EPS is computed as follows:

						Three Months Ended June 30																														Six Months Ended June 30
						2023															2022															2023															2022
Basic EPS
Net income available to common shareholders of the parent						$	181,799,021														$	237,027,317														$	388,785,582														$	439,760,292
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)									25,929,268																		25,928,993												25,929,178																		25,929,390
Basic EPS (in dollars)						$	7.01														$	9.14														$	14.99														$	16.96

(Continued)

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						Three Months Ended June 30																														Six Months Ended June 30
						2023															2022															2023															2022
Diluted EPS
Net income available to common shareholders of the parent						$	181,799,021														$	237,027,317														$	388,785,582														$	439,760,292
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)									25,929,268																		25,928,993												25,929,178															25,929,390
Effects of all dilutive potential common shares (in thousands)									147																		174												187															118
Weighted average number of common shares used in the computation of diluted EPS (in thousands)									25,929,415																		25,929,167												25,929,365															25,929,508
Diluted EPS (in dollars)						$	7.01														$	9.14														$	14.99														$	16.96

(Concluded)

27.    SHARE-BASED PAYMENT ARRANGEMENTS

a.    Equity-settled share-based payment-RSAs

The RSAs in each year are as follows:

2022 RSAs

2021 RSAs

Resolution Date of TSMC’s shareholders in its meeting

June 8, 2022

July 26, 2021

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

February 14, 2023

February 15, 2022

Issuance of stocks (in thousands)

2,110

1,387

Eligible employees

Executive officers

Executive officers

Grant date/Issuance date

March 1, 2023

March 1, 2022

Vesting conditions of the aforementioned arrangement are as follow:

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

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

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

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

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

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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:

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

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

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

Refer to Note 28 for the compensation costs of the RSAs recognized by TSMC.

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

b.    Cash-settled share-based payment arrangements

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

2022 Plan

2021 Plan

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

February 14, 2023

February 15, 2022

Issuance of units (in thousands) (Note)

400

236

Grant date

March 1, 2023

March 1, 2022

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

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

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

						Six Months Ended June 30
						2023																														2022
						2022 Plan															2021 Plan															2021 Plan
Stock price at measurement date (in dollars)						$	574														$	574														$	501
Expected price volatility									25.89%-27.78%															25.89%-27.78%															25.85%-29.88%
Residual life									1-3 years															1-2 years															1-3 years
Risk-free interest rate									1.08%															1.08%															0.96%

Refer to Note 28 for the compensation costs of the cash-settled share-based payment recognized by TSMC. As of June 30, 2023, December 31, 2022 and June 30, 2022, the liabilities under cash-settled share-based payment arrangement amounted to NT$42,523 thousand, NT$30,757 thousand and NT$16,650 thousand, respectively.

28.    ADDITIONAL INFORMATION OF EXPENSES BY NATURE

						Three Months Ended June 30																																	Six Months Ended June 30
						2023																		2022															2023															2022
a.    Depreciation of property, plant and equipment and right-of-use assets
Recognized in cost of revenue						$			114,113,023															$			103,802,522$												$	214,946,845														$	205,460,210
Recognized in operating expenses												7,529,817																		7,236,218															14,777,203															14,512,600
Recognized in other operating income and expenses												1,121																		1,995															3,289															2,190
						$	121,643,961																	$	111,040,735														$	229,727,337														$	219,975,000

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						Three Months Ended June 30																														Six Months Ended June 30
						2023															2022															2023																					2022
b.    Amortization of intangible assets
Recognized in cost of revenue						$	1,619,384														$	1,509,549														$	3,186,814																				$	3,011,624
Recognized in operating expenses									676,343															674,363															1,348,178																											1,340,086
						$	2,295,727														$	2,183,912														$	4,534,992																				$	4,351,710
c.    Employee benefits expenses
Post-employment benefits
Defined contribution plans						$	1,363,578														$	1,106,462														$	2,624,359																				$	2,147,764
Defined benefit plans									70,346															52,387															140,683																											104,561
									1,433,924															1,158,849															2,765,042																											2,252,325
Share-based payments
Equity-settled									127,580															114,348															228,352																											141,801
Cash-settled									20,569															11,899															38,179																											17,299
									148,149															126,247															266,531																											159,100
Other employee benefits									54,725,086															56,010,143															111,088,141																											104,931,140
						$	56,307,159														$	57,295,239														$	114,119,714																				$	107,342,565
Employee benefits expense summarized by function
Recognized in cost of revenue						$	31,563,813														$	33,789,220														$	64,638,942																	$	63,515,083
Recognized in operating expenses									24,743,346															23,506,019															49,480,772																								43,827,482
						$	56,307,159														$	57,295,239														$	114,119,714																	$	107,342,565

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

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

						Three Months Ended June 30																								Six Months Ended June 30
						2023												2022												2023												2022
Profit sharing bonus to employees						$	10,861,696											$	14,149,316											$	23,225,536											$	26,260,235

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

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

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2022 and 2021, respectively.

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

29.    GOVERNMENT GRANTS

Subsidiaries such as JASM and TSMC Nanjing received subsidies from the governments of Japan and China, respectively, for local plants setup and operation, which were mainly used to subsidize the purchase costs of property, plant and equipment as well as partial costs and expenses incurred from plant construction and production. For the six months ended June 30, 2023 and 2022, TSMC received a total of NT$10,311,820 thousand and NT$337,473 thousand as government grants, respectively.

30.    CASH FLOW INFORMATION

a.    Non-cash transactions

						Six Months Ended June 30
						2023															2022
Additions of financial assets at FVTOCI						$	37,030,330														$	34,590,360
Conversion of convertible bonds into equity securities									(145,144						)									-
Changes in accrued expenses and other current liabilities									(3,421,160						)									6,359,987
Changes in other financial assets									-															(1,217						)
Payments for acquisition of financial assets at FVTOCI						$	33,464,026														$	40,949,130
Disposal of financial assets at FVTOCI						$	20,886,895														$	32,801,826
Changes in other financial assets									(866,980						)									84,436
Proceeds from disposal of financial assets at FVTOCI						$	20,019,915														$	32,886,262
Additions of property, plant and equipment						$	483,421,429														$	488,882,947
Changes in other financial assets									44,431															5,256,973
Changes in payables to contractors and equipment suppliers									72,185,176															(13,790,015						)
Changes in accrued expenses and other current liabilities									194,841															305,328
Transferred to initial carrying amount of hedged items									39,899															-
Capitalized interests									(2,852,931						)									(797,565						)
Payments for acquisition of property, plant and equipment						$	553,032,845														$	479,857,668

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b.    Reconciliation of liabilities arising from financing activities

																																				Non-cash Changes
						Balance as of January 1, 2023															Financing Cash Flow															Foreign Exchange Movement															Leases Modifications															Other Changes (Note)															Balance as of June 30, 2023
Hedging financial liabilities- bank loans						$						-									$	7,674,240														$						(436,800			)						$						-									$						-									$	7,237,440
Bonds payable									852,436,439															47,937,930															7,260,863															-															175,067															907,810,299
Long-term bank loans									5,973,936															1,663,056															-															-															(298						)									7,636,694
Lease liabilities									32,367,601															(1,582,527						)									(29,180						)									1,426,437															190,505															32,372,836
Total						$	890,777,976														$	55,692,699														$	6,794,883														$	1,426,437														$	365,274														$	955,057,269

																																				Non-cash Changes
						Balance as of January 1, 2022															Financing Cash Flow															Foreign Exchange Movement															Leases Modifications															Other Changes (Note)															Balance as of June 30, 2022
Short-term loans						$	114,921,333														$	4,048,589														$						(2,888,343			)						$						-									$						(496,785			)						$	115,584,794
Bonds payable									614,470,652															128,157,572															27,528,871															-															132,728															770,289,823
Long-term bank loans									3,475,798															500,000															-															-															2,142															3,977,940
Lease liabilities									22,940,665															(1,219,517						)									52,785															2,879,439															97,303															24,750,675
Total						$	755,808,448														$	131,486,644														$	24,693,313														$	2,879,439														$						(264,612			)						$	914,603,232

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

31.    FINANCIAL INSTRUMENTS

a.    Categories of financial instruments

						June 30, 2023															December 31, 2022															June 30, 2022
Financial assets
FVTPL (Note 1)						$	1,084,539														$	1,070,398														$	214,215
FVTOCI (Note 2)									152,899,037															136,483,349																		132,829,598
Hedging financial assets									29,704															2,329																		44,686
Amortized cost (Note 3)									1,629,012,790															1,727,306,556																		1,586,767,416
						$	1,783,026,070														$	1,864,862,632														$	1,719,855,915
Financial liabilities
FVTPL (Note 4)						$	195,001														$	116,215														$	716,981
Hedging financial liabilities									7,237,440															813																		-
Amortized cost (Note 5)									1,668,515,275															1,669,270,659																		1,610,885,645
						$	1,675,947,716														$	1,669,387,687														$	1,611,602,626

Note 1:    Financial assets mandatorily measured at FVTPL.

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

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

Note 4:    Held for trading.

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

b.    Financial risk management objectives

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

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

c.    Market risk

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

Foreign currency risk

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

Based on a sensitivity analysis performed on the Company’s total monetary assets and liabilities for the six months ended June 30, 2023 and 2022, a hypothetical adverse foreign currency exchange rate change of 10% would have decreased its net income by NT$ 489,135 thousand and NT$1,748,402 thousand respectively, after taking into account hedges and offsetting positions.

Interest rate risk

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

The Company’s cash and cash equivalents as well as fixed income investments in both fixed- and floating-rate securities carry a degree of interest rate risk. The majority of the Company’s fixed income investments are fixed-rate securities, which are classified as financial assets at FVTOCI, and may have their fair value adversely affected due to a rise in interest rates. At the same time, if interest rates fall, cash and cash equivalents as well as floating-rate securities may generate less interest income than expected. The Company has entered and may in the future enter into interest rate derivatives to partially hedge the interest rate risk on its fixed income investments and anticipated debt issuance. However, these hedges can offset only a limited portion of the financial impact from movements in interest rates.

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Based on a sensitivity analysis performed on the Company’s fixed income investments at the end of the reporting period, interest rates increase of 100 basis points (1.00%) across all maturities would have decreased the Company’s other comprehensive income by NT$3,653,953 thousand and NT$3,945,980 thousand for the six months ended June 30, 2023 and 2022, respectively.

All of the Company’s short-term debt is floating-rate, hence a rise in interest rates may result in higher interest expense than expected. The majority of the Company’s long-term debt is fixed-rate and measured at amortized cost and as such, changes in interest rates would not affect future cash flows or the carrying amount.

Other price risk

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

Assuming a hypothetical decrease of 10% in prices of the equity investments at the end of the reporting period for the six months ended June 30, 2023 and 2022, the other comprehensive income would have decreased by NT$ 635,197 thousand and NT$677,684 thousand, respectively.

d.    Credit risk management

Credit risk refers to the risk that a counterparty will 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 June 30, 2023, December 31, 2022 and June 30, 2022, the Company’s ten largest customers accounted for 82%, 82% and 78% of accounts receivable, respectively. The Company considers the concentration of credit risk for the remaining accounts receivable not material.

Financial credit risk

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

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

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

Category

Description

Basis for Recognizing Expected Credit Loss

Expected Credit Loss Ratio

Performing

Credit rating is investment grade on valuation date

12 months expected credit loss

0-0.1%

Doubtful

Credit rating is non-investment grade on valuation date

Lifetime expected credit loss-not credit impaired

-

In default

Credit rating is CC or below on valuation date

Lifetime expected credit loss-credit impaired

-

Write-off

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

Amount is written off

-

For the six months ended June 30, 2023 and 2022, the expected credit loss increased NT$ 21,863 thousand and NT$26,423 thousand, respectively. The changes were mainly due to increased investment amount and adjusted investment portfolio.

e.    Liquidity risk management

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

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

						Less Than 1 Year															1-3 Years															3-5 Years															More Than 5 Years															Total
June 30, 2023
Non-derivative financial liabilities
Hedging financial liabilities-bank loans						$	7,238,863														$						-									$						-									$						-									$	7,238,863
Accounts payable (including related parties)									48,972,779															-															-															-																		48,972,779
Payables to contractors and equipment suppliers									140,753,488															-															-															-																		140,753,488
Accrued expenses and other current liabilities									229,817,573															-															-															-																		229,817,573
Bonds payable									23,760,865															151,696,468															360,186,307															595,310,410																		1,130,954,050
Long-term bank loans									2,114,859															4,688,538															1,059,914															-																		7,863,311
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)									3,014,122															5,358,982															4,718,764															22,504,071																		35,595,939
Others									-															158,555,601															22,695,786															1,869,357																		183,120,744
									455,672,549															320,299,589															388,660,771															619,683,838																		1,784,316,747
Derivative financial instruments
Forward exchange contracts
Outflows									90,236,552															-															-															-																		90,236,552
Inflows									(90,939,585						)									-															-															-																		(90,939,585			)
									(703,033						)									-															-															-																		(703,033			)
						$	454,969,516														$	320,299,589														$	388,660,771														$	619,683,838														$	1,783,613,714

(Continued)

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						Less Than 1 Year															1-3 Years															3-5 Years															More Than 5 Years															Total
December 31, 2022
Non-derivative financial liabilities
Accounts payable (including related parties)						$	56,522,345														$						-									$						-									$						-									$	56,522,345
Payables to contractors and equipment suppliers									213,499,613															-															-															-																		213,499,613
Accrued expenses and other current liabilities									219,587,908															-															-															-																		219,587,908
Bonds payable									34,668,909															94,869,159															320,211,460															625,049,539																		1,074,799,067
Long-term bank loans									1,278,130															3,533,152															1,360,549															-																		6,171,831
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)									2,999,840															5,367,809															4,754,007															22,589,117																		35,710,773
Others									-															166,266,718															10,518,481															783,182																		177,568,381
									528,556,745															270,036,838															336,844,497															648,421,838																		1,783,859,918
Derivative financial instruments
Forward exchange contracts
Outflows									103,617,399															-															-															-																		103,617,399
Inflows									(104,600,085						)									-															-															-																		(104,600,085			)
									(982,686						)									-															-															-																		(982,686			)
						$	527,574,059														$	270,036,838														$	336,844,497														$	648,421,838														$	1,782,877,232
June 30, 2022
Non-derivative financial liabilities
Short-term loans						$	115,485,709														$						-									$						-									$						-									$	115,485,709
Accounts payable (including related parties)									59,818,066															-															-															-																		59,818,066
Payables to contractors and equipment suppliers									160,489,081															-															-															-																		160,489,081
Accrued expenses and other current liabilities									159,093,063															-															-															-																		159,093,063
Bonds payable									30,642,237															54,419,617															276,477,181															617,066,414																		978,605,449
Long-term bank loans									692,634															2,535,527															860,476															-																		4,088,637
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)									2,481,460															4,272,205															3,758,566															15,972,231																		26,484,462
Others									-															196,206,050															1,675,578															-																		197,881,628
									528,702,250															257,433,399															282,771,801															633,038,645																		1,701,946,095
Derivative financial instruments
Forward exchange contracts
Outflows									142,903,327															-															-															-																		142,903,327
Inflows									(142,478,581						)									-															-															-																		(142,478,581			)
									424,746															-															-															-																		424,746
						$	529,126,996														$	257,433,399														$	282,771,801														$	633,038,645														$	1,702,370,841

(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
June 30, 2023
Lease liabilities						$	10,341,148														$	7,314,399														$	4,252,916														$	595,608														$	22,504,071
December 31, 2022
Lease liabilities						$	10,241,734														$	7,329,012														$	4,233,886														$	784,485														$	22,589,117
June 30, 2022
Lease liabilities						$	8,067,028														$	5,391,697														$	2,267,302														$	246,204														$	15,972,231

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f.    Fair value of financial instruments

1)    Fair value measurements recognized in the consolidated balance sheets

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

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

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

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

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

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

Fair value hierarchy

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

						June 30, 2023
						Level 1															Level 2															Level 3															Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts						$						-									$	848,966														$						-									$	848,966
Convertible bonds									-															-															126,618															126,618
Mutual funds									-															-															108,955															108,955
						$						-									$	848,966														$	235,573														$	1,084,539
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds						$						-									$	72,934,420														$						-									$	72,934,420
Agency mortgage-backed securities									-															34,297,965															-															34,297,965
Government bonds/Agency bonds									23,524,073															125,644															-															23,649,717
Asset-backed securities									-															9,469,578															-															9,469,578
Investments in equity instruments
Non-publicly traded equity investments									-															-															7,516,718															7,516,718
Publicly traded stocks									423,249															-															-															423,249
Notes and accounts receivable, net									-															4,607,390															-															4,607,390
						$	23,947,322														$	121,434,997														$	7,516,718														$	152,899,037
Hedging financial assets
Fair value hedges
Interest rate futures contracts						$	29,704														$						-									$						-									$	29,704
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts						$						-									$	195,001														$						-									$	195,001

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

						June 30, 2022
						Level 1															Level 2															Level 3															Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts						$						-									$	214,215														$						-									$	214,215
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds						$						-									$	61,646,977														$						-									$	61,646,977
Agency mortgage-backed securities									-															30,091,899															-															30,091,899
Government bonds/Agency bonds									20,060,391															113,392															-															20,173,783
Asset-backed securities									-															8,642,271															-															8,642,271
Investments in equity instruments
Non-publicly traded equity investments									-															-															6,503,252															6,503,252
Publicly traded stocks									399,576															-															-															399,576
Notes and accounts receivable, net									-															5,371,840															-															5,371,840
						$	20,459,967														$	105,866,379														$	6,503,252														$	132,829,598

(Continued)

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						June 30, 2022
						Level 1															Level 2															Level 3															Total
Hedging financial assets
Fair value hedges
Interest rate futures contracts						$	44,686														$						-									$						-									$	44,686
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts						$						-									$	716,981														$						-									$	716,981

(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 six months ended June 30, 2023 and 2022 are as follows:

						Six Months Ended June 30
						2023															2022
Balance, beginning of period						$	6,282,052														$	5,887,892
Additions									752,103															295,387
Recognized in profit or loss									25,519															-
Recognized in other comprehensive income or loss									699,022															98,814
Disposals and proceeds from return of capital of investments									(105,981						)									-
Transfers out of level 3 (Note)									-															(139,770						)
Effect of exchange rate changes									99,576															360,929
Balance, end of period						$	7,752,291														$	6,503,252

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

Valuation techniques and assumptions used in Level 2 fair value measurement

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

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

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

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

Valuation techniques and assumptions used in Level 3 fair value measurement

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

The asset approach takes into account the net asset value measured at the fair value by independent parties. On June 30, 2023, December 31, 2022 and June 30, 2022, the Company uses unobservable

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inputs derived from discount for lack of marketability of 10%. When other inputs remain equal, the fair value will decrease by NT$57,668 thousand, NT$48,704 thousand and NT$53,415 thousand, respectively, if discounts for lack of marketability increase by 1%.

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

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

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

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

Fair value hierarchy

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

						June 30, 2023
						Carrying															Fair Value
						Amount															Level 1															Level 2															Total
Financial assets
Financial assets at amortized costs
Corporate bonds						$	107,424,543														$						-									$	105,960,212														$	105,960,212
Commercial paper									15,625,561															-															15,652,586															15,652,586
Government bonds/Agency bonds									8,541,426															1,515,058															6,996,344															8,511,402
						$	131,591,530														$	1,515,058														$	128,609,142														$	130,124,200
Financial liabilities
Financial liabilities at amortized costs
Bonds payable						$	907,810,299														$						-									$	821,616,513														$	821,616,513

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

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						June 30, 2022
						Carrying															Fair Value
						Amount															Level 1															Level 2															Total
Financial assets
Financial assets at amortized costs
Corporate bonds						$	48,125,799														$						-									$	47,626,708														$	47,626,708
Commercial paper									37,179,685															-															37,215,645															37,215,645
						$	85,305,484														$						-									$	84,842,353														$	84,842,353
Financial liabilities
Financial liabilities at amortized costs
Bonds payable						$	770,289,823														$						-									$	708,469,501														$	708,469,501

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.

32.    RELATED PARTY TRANSACTIONS

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

a.    Related party name and categories

Related Party Name						Related Party Categories
GUC						Associates
VIS						Associates
SSMC						Associates
Xintec						Associates
TSMC Education and Culture Foundation						Other related parties

b.    Net revenue

												Three Months Ended June 30																								Six Months Ended June 30
												2023												2022												2023												2022
Item						Related Party Categories
Net revenue from sale of goods						Associates						$	3,364,448											$	3,686,117											$	7,226,439											$	5,970,321

c.    Purchases

						Three Months Ended June 30																								Six Months Ended June 30
						2023												2022												2023												2022
Related Party Categories
Associates						$	1,027,417											$	1,620,327											$	2,381,385											$	3,098,068

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d.    Receivables from related parties

												June 30, 2023															December 31, 2022															June 30, 2022
Item						Related Party Name
Receivables from						GUC						$	756,054														$	1,471,351														$	899,746
related parties						Xintec									106,518															112,607															172,953
												$	862,572														$	1,583,958														$	1,072,699
Other receivables						VIS						$	2,122,373														$	669														$	2,117,731
from related						Xintec									335,526															-															335,526
parties						SSMC									63,424															68,277															64,802
						Others									-															29															-
												$	2,521,323														$	68,975														$	2,518,059

e.    Payables to related parties

												June 30, 2023															December 31, 2022															June 30, 2022
Item						Related Party Name
Payables to related						Xintec						$	748,143														$	1,047,452														$	1,159,136
parties						SSMC									290,668															385,979															454,451
						VIS									105,089															190,587															164,527
						Others									34,764															18,619															15,000
												$	1,178,664														$	1,642,637														$	1,793,114

f.    Accrued expenses and other current liabilities

												June 30, 2023												December 31, 2022												June 30, 2022
Item						Related Party Categories
Contract liabilities						Associates						$	662,135											$	1,075,659											$	289,699

g.    Others

												Three Months Ended June 30																								Six Months Ended June 30
												2023												2022												2023												2022
Item						Related Party Categories
Manufacturing expenses						Associates						$	976,053											$	1,589,885											$	1,917,889											$	2,864,454

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

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

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h.    Compensation of key management personnel

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

						Three Months Ended June 30																														Six Months Ended June 30
						2023															2022															2023															2022
Short-term employee benefits						$	868,001														$	1,103,526														$	1,637,290														$	1,984,710
Post-employment benefits									951															863															1,916															1,675
Share-based payments									145,512															88,527															252,772															120,121
						$	1,014,464														$	1,192,916														$	1,891,978														$	2,106,506

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.

33.    PLEDGED ASSETS

The Company provided certificate of deposits recorded in other financial assets as collateral mainly for building lease agreements. As of June 30, 2023, December 31, 2022 and June 30, 2022, the aforementioned other financial assets amounted to NT$126,244 thousand, NT$129,138 thousand and NT$110,306 thousand, respectively.

34.    SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

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

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

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

c.    In September 2022, Daedalus Prime LLC (“Daedalus”) filed complaints in the U.S. International Trade Commission (“ITC”) and the U.S. District Court for the Eastern District of Texas alleging that TSMC, TSMC North America, and other companies infringe four U.S. patents. The ITC instituted an investigation in October 2022. In June 2023, Daedalus dropped two of the asserted patents in the ITC.

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Also in June 2023, Daedalus filed another complaint in the Eastern District of Texas alleging that TSMC infringes five U.S. patents. The outcome cannot be determined and we cannot make a reliable estimate of the contingent liability at this time.

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

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

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

g.    Amounts available under unused letters of credit as of June 30, 2023, December 31, 2022 and June 30, 2022 were NT$441,174 thousand, NT$383,974 thousand and NT$59,444 thousand, respectively.

h.    The Company entrusted financial institutions to provide performance guarantees mainly for import and export of goods, lease agreement and energy purchase agreement. As of June 30, 2023, December 31, 2022 and June 30, 2022, the aforementioned guarantee amounted to NT$8,017,838 thousand, NT$7,623,262 thousand, and NT$6,086,499 thousand, respectively.

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

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

						Foreign Currencies (In Thousands)															Exchange Rate (Note 1)												Carrying Amount (In Thousands)
June 30, 2023
Financial assets
Monetary items
USD						$	13,487,252																	31.130									$	419,858,157
EUR									219,465															33.919												7,444,044
EUR									90,547															7.913			(Note2)									3,071,265
EUR									129,008															1.090			(Note3)									4,375,819
JPY									86,396,117															0.2154												18,609,724
JPY									14,983,677															0.0069			(Note4)									3,227,484
Financial liabilities
Monetary items
USD									15,033,800															31.130												468,002,207
EUR									537,813															33.919												18,242,093
EUR									89,878															7.913			(Note2)									3,048,588
EUR									128,558															1.090			(Note3)									4,360,569
JPY									121,109,473															0.2154												26,086,981
JPY									15,105,693															0.0069			(Note4)									3,253,766

(Continued)

- 50 -

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						Foreign Currencies (In Thousands)															Exchange Rate (Note 1)												Carrying Amount (In Thousands)
December 31, 2022
Financial assets
Monetary items
USD						$	15,214,896																	30.713									$	467,295,097
EUR									8,375															32.838												275,006
EUR									29,161															7.432			(Note2)									957,587
JPY									133,034,271															0.2331												31,010,288
Financial liabilities
Monetary items
USD									15,190,659															30.713												466,550,704
EUR									2,375,378															32.838												78,002,647
JPY									134,608,488															0.2331												31,377,239
June 30, 2022
Financial assets
Monetary items
USD									13,813,698															29.722												410,570,726
USD									1,264,759															6.694			(Note5)									37,591,153
EUR									10,838															31.285												339,070
EUR									94,588															7.046			(Note2)									2,959,174
JPY									6,882,030															0.2178												1,498,906
JPY									10,526,806															0.0491			(Note6)									2,292,738
Financial liabilities
Monetary items
USD									14,709,129															29.722												437,184,740
EUR									2,538,611															31.285												79,420,443
JPY									100,738,182															0.2178												21,940,776
JPY									12,327,338															0.0491			(Note6)									2,684,894

(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 RMB for which one Euro could be exchanged.

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

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

Note 5:    The exchange rate represents the number of RMB for which one U.S. dollar could be exchanged.

Note 6:    The exchange rate represents the number of RMB for which one Japanese yen could be exchanged.

- 51 -

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Please refer to the consolidated statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss for the three months and the six months ended June 30, 2023 and 2022, respectively. Since there were varieties of foreign currency transactions and functional currencies within the subsidiaries of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact.

36.    ADDITIONAL DISCLOSURES

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

a.    Financings provided: See Table 1 attached;

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

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

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

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

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

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

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

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

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

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.

- 52 -

---

37.    OPERATING SEGMENTS INFORMATION

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

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

- 53 -

---

TABLE 1

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

FINANCINGS PROVIDED

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

No.			Financing Company			Counterparty			Financial Statement Account			Related Party			Maximum Balance for the Period (Foreign Currencies in Thousands) (Note 3)												Ending Balance (Foreign Currencies in Thousands) (Note 3)												Amount Actually Drawn (Foreign Currencies in Thousands)															Interest Rate			Nature for Financing			Transaction Amounts												Reason for Financing			Allowance for Bad Debt												Collateral															Financing Limits for Each Borrowing Company (Note 1 and 2)												Financing Company’s Total Financing Amount Limits (Note 1 and 2)
																																																																																							Item			Value
0			TSMC			TSMC Arizona			Other receivables from related parties			Yes			$ (US$						93,390,000 3,000,000			)			$ (US$						93,390,000 3,000,000			)			$						-									-			The need for short-term financing			$						-						Capacity installation and working capital			$						-						-			$						-						$	318,875,045											$	637,750,091
1			TSMC China			TSMC Nanjing			Other receivables from related parties			Yes			$ (RMB (US$						73,522,460 8,800,000 1,150,000			$ )& )			$ (RMB (US$						62,626,960 8,800,000 800,000			$ )& )			$ (RMB (US$									48,618,460 8,800,000 350,000			$ )& )			0.75%~1.50%			The need for short-term and long-term financing						-									Operating capital						-									-						-												89,796,827												89,796,827

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

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

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

- 54 -

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TABLE 2

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED

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

No.			Endorsement/ Guarantee Provider			Guaranteed Party						Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Notes 1 and 2)												Maximum Balance for the Period (Foreign Currencies in Thousands) (Note 3)												Ending Balance (Foreign Currencies in Thousands) (Note 3)												Amount Actually Drawn (US$ in Thousands)												Amount of Endorsement/ Guarantee Collateralized by Properties									Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements									Maximum Endorsement/ Guarantee Amount Allowable (Notes 1 and 2)									Guarantee Provided by Parent Company			Guarantee Provided by A Subsidiary			Guarantee Provided to Subsidiaries in Mainland China
						Name			Nature of Relationship
0			TSMC			TSMC North America			Subsidiary			$	1,275,500,182											$ (US$						2,590,430 83,213			)			$ (US$						2,590,430 83,213			)			$ (US$						2,590,430 83,213			)			$			-									0.08%						$	1,275,500,182								Yes			No			No
						TSMC Global			Subsidiary						1,275,500,182									$ (US$						233,475,000 7,500,000			)			$ (US$						233,475,000 7,500,000			)			$ (US$						233,475,000 7,500,000			)						-									7.32%									1,275,500,182						Yes			No			No
						TSMC Arizona			Subsidiary						1,275,500,182									$ (US$						374,569,235 12,032,420			)			$ (US$						374,569,235 12,032,420			)			$ (US$						250,049,235 8,032,420			)						-									11.75%									1,275,500,182						Yes			No			No
1			TSMC Japan			TSMC JDC			The same parent company						320,716									$ (JPY						284,328 1,320,000			)			$ (JPY						284,328 1,320,000			)			$ (JPY						284,328 1,320,000			)						-									0.01%									320,716						No			No			No

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

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

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

- 55 -

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TABLE 3

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

MARKETABLE SECURITIES HELD

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

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)															Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC			Commercial paper
			Taiwan Power Company			-			Financial assets at amortized cost						500						$	4,980,926														N/A			$	4,983,430
			Nan Ya Plastics Corporation			-			〃						400									3,978,873												N/A						3,984,875
			Cathay Financial Holding Co., Ltd.			-			〃						370									3,681,335												N/A						3,698,076
			Formosa Chemicals & Fibre Corporation			-			〃						250									2,486,545												N/A						2,488,543
			CPC Corporation, Taiwan			-			〃						50									497,882												N/A						497,662
			Non-publicly traded equity investments
			United Industrial Gases Co., Ltd.			-			Financial assets at fair value through other comprehensive income						21,230									449,066												10						449,066
			Shin-Etsu Handotai Taiwan Co., Ltd.			-			〃						10,500									427,308												7						427,308
			Global Investment Holding Inc.			-			〃						10,442									105,077												6						105,077
			Crimson Asia Capital			-			〃						-									-												1						-
TSMC Partners			Non-publicly traded equity investments
			Shanghai Walden Venture Capital Enterprise			-			Financial assets at fair value through other comprehensive income						-						US$									31,840						6			US$									31,840
			China Walden Venture Investments II, L.P.			-			〃						-						US$									21,679						9			US$									21,679
			China Walden Venture Investments III, L.P.			-			〃						-						US$									13,062						4			US$									13,062
			Tela Innovations			-			〃						6,942									-												22						-
			Publicly traded stocks
			Movella Holdings Inc.			-			Financial assets at fair value through other comprehensive income						3,095						US$									6,593						6			US$									6,593
			Fund
			Matter Venture Partners Fund I, L.P.			-			Financial assets at fair value through Profit or Loss						-						US$									3,500						14			US$									3,500
TSMC Global			Corporate bond
			Bank of America Corporation			-			Financial assets at fair value through other comprehensive income						-						US$									77,093						N/A			US$									77,093
			Morgan Stanley			-			〃						-						US$									70,962						N/A			US$									70,962
			JPMorgan Chase & Co.			-			〃						-						US$									55,499						N/A			US$									55,499
			The Goldman Sachs Group, Inc.			-			〃						-						US$									54,779						N/A			US$									54,779
			Wells Fargo & Company			-			〃						-						US$									51,012						N/A			US$									51,012
			Citigroup Inc.			-			〃						-						US$									50,223						N/A			US$									50,223
			Mitsubishi UFJ Financial Group, Inc.			-			〃						-						US$									39,028						N/A			US$									39,028
			Sumitomo Mitsui Financial Group, Inc.			-			〃						-						US$									36,386						N/A			US$									36,386
			HSBC Holdings plc			-			〃						-						US$									29,021						N/A			US$									29,021
			AbbVie Inc.			-			〃						-						US$									28,306						N/A			US$									28,306
			Oracle Corporation			-			〃						-						US$									26,821						N/A			US$									26,821
			CVS Health Corporation			-			〃						-						US$									26,305						N/A			US$									26,305
			Banco Santander, S.A.			-			〃						-						US$									26,136						N/A			US$									26,136
			Barclays PLC			-			〃						-						US$									24,224						N/A			US$									24,224

(Continued)

- 56 -

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Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Royal Bank of Canada			-			Financial assets at fair value through other comprehensive income			-			US$						21,337						N/A			US$						21,337
			Capital One Financial Corporation			-			〃			-			US$						20,626						N/A			US$						20,626
			Athene Global Funding			-			〃			-			US$						20,185						N/A			US$						20,185
			The Toronto-Dominion Bank			-			〃			-			US$						19,068						N/A			US$						19,068
			Hyundai Capital America			-			〃			-			US$						18,873						N/A			US$						18,873
			BNP Paribas SA			-			〃			-			US$						18,750						N/A			US$						18,750
			Equitable Financial Life Global Funding			-			〃			-			US$						18,294						N/A			US$						18,294
			Principal Life Global Funding II			-			〃			-			US$						18,145						N/A			US$						18,145
			National Securities Clearing Corporation			-			〃			-			US$						18,130						N/A			US$						18,130
			Fédération des caisses Desjardins du Québec			-			〃			-			US$						18,067						N/A			US$						18,067
			BPCE SA			-			〃			-			US$						17,396						N/A			US$						17,396
			Guardian Life Global Funding			-			〃			-			US$						16,442						N/A			US$						16,442
			The Bank of Nova Scotia			-			〃			-			US$						16,030						N/A			US$						16,030
			Volkswagen Group of America Finance, LLC			-			〃			-			US$						15,418						N/A			US$						15,418
			Amgen Inc.			-			〃			-			US$						15,084						N/A			US$						15,084
			Metropolitan Life Global Funding I			-			〃			-			US$						14,963						N/A			US$						14,963
			The Bank of New York Mellon Corporation			-			〃			-			US$						14,922						N/A			US$						14,922
			Sumitomo Mitsui Trust Bank, Limited			-			〃			-			US$						14,879						N/A			US$						14,879
			Société Générale Société anonyme			-			〃			-			US$						13,838						N/A			US$						13,838
			Nationwide Building Society			-			〃			-			US$						13,833						N/A			US$						13,833
			Credit Agricole SA London Branch			-			〃			-			US$						13,803						N/A			US$						13,803
			NTT Finance Corporation			-			〃			-			US$						13,769						N/A			US$						13,769
			Protective Life Global Funding			-			〃			-			US$						13,758						N/A			US$						13,758
			UnitedHealth Group Incorporated			-			〃			-			US$						13,330						N/A			US$						13,330
			AIG Global Funding			-			〃			-			US$						13,227						N/A			US$						13,227
			Nomura Holdings, Inc.			-			〃			-			US$						13,196						N/A			US$						13,196
			Standard Chartered PLC			-			〃			-			US$						13,143						N/A			US$						13,143
			Santander UK Group Holdings plc			-			〃			-			US$						13,139						N/A			US$						13,139
			Truist Financial Corporation			-			〃			-			US$						12,710						N/A			US$						12,710
			Penske Truck Leasing Co., L.P.			-			〃			-			US$						12,412						N/A			US$						12,412
			Pfizer Investment Enterprises Pte. Ltd.			-			〃			-			US$						12,391						N/A			US$						12,391
			Apple Inc.			-			〃			-			US$						12,306						N/A			US$						12,306
			New York Life Global Funding			-			〃			-			US$						12,089						N/A			US$						12,089
			ING Groep N.V.			-			〃			-			US$						11,779						N/A			US$						11,779
			Toyota Motor Credit Corporation			-			〃			-			US$						11,630						N/A			US$						11,630
			Amazon.com, Inc.			-			〃			-			US$						11,598						N/A			US$						11,598
			Nordea Bank Abp			-			〃			-			US$						11,246						N/A			US$						11,246
			ASB Bank Limited			-			〃			-			US$						11,212						N/A			US$						11,212
			Northwestern Mutual Global Funding			-			〃			-			US$						11,050						N/A			US$						11,050
			Deutsche Bank AG - New York Branch			-			〃			-			US$						10,809						N/A			US$						10,809
			U.S. Bancorp			-			〃			-			US$						10,787						N/A			US$						10,787
			Bank of Montreal			-			〃			-			US$						10,736						N/A			US$						10,736
			Verizon Communications Inc.			-			〃			-			US$						10,732						N/A			US$						10,732
			Lloyds Banking Group plc			-			〃			-			US$						10,572						N/A			US$						10,572
			S&P Global Inc.			-			〃			-			US$						10,336						N/A			US$						10,336
			Ryder System, Inc.			-			〃			-			US$						10,307						N/A			US$						10,307
			Southern California Edison Company			-			〃			-			US$						10,222						N/A			US$						10,222
			The PNC Financial Services Group, Inc.			-			〃			-			US$						10,162						N/A			US$						10,162
			Equifax Inc.			-			〃			-			US$						10,095						N/A			US$						10,095
			Macquarie Group Limited			-			〃			-			US$						9,881						N/A			US$						9,881

(Continued)

- 57 -

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Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Svenska Handelsbanken AB (publ)			-			Financial assets at fair value through other comprehensive income			-			US$						9,641						N/A			US$						9,641
			John Deere Capital Corporation			-			〃			-			US$						9,442						N/A			US$						9,442
			Mizuho Financial Group, Inc.			-			〃			-			US$						9,259						N/A			US$						9,259
			AT&T Inc.			-			〃			-			US$						9,055						N/A			US$						9,055
			Roper Technologies, Inc.			-			〃			-			US$						8,946						N/A			US$						8,946
			Exelon Corporation			-			〃			-			US$						8,918						N/A			US$						8,918
			Equinor ASA			-			〃			-			US$						8,838						N/A			US$						8,838
			Merck & Co., Inc.			-			〃			-			US$						8,726						N/A			US$						8,726
			Haleon US Capital LLC			-			〃			-			US$						8,709						N/A			US$						8,709
			Fifth Third Bancorp			-			〃			-			US$						8,678						N/A			US$						8,678
			Banque Fédérative du Crédit Mutuel Société anonyme			-			〃			-			US$						8,669						N/A			US$						8,669
			Enel Finance International N.V.			-			〃			-			US$						8,497						N/A			US$						8,497
			American Express Company			-			〃			-			US$						8,493						N/A			US$						8,493
			Honeywell International Inc.			-			〃			-			US$						8,490						N/A			US$						8,490
			NextEra Energy Capital Holdings, Inc.			-			〃			-			US$						8,444						N/A			US$						8,444
			Danske Bank A/S			-			〃			-			US$						8,346						N/A			US$						8,346
			Macquarie Bank Limited			-			〃			-			US$						8,223						N/A			US$						8,223
			Citizens Bank, National Association			-			〃			-			US$						8,023						N/A			US$						8,023
			AerCap Ireland Capital Designated Activity Company			-			〃			-			US$						7,897						N/A			US$						7,897
			Lowe's Companies, Inc.			-			〃			-			US$						7,880						N/A			US$						7,880
			Fiserv, Inc.			-			〃			-			US$						7,834						N/A			US$						7,834
			AstraZeneca Finance LLC			-			〃			-			US$						7,817						N/A			US$						7,817
			Daimler Trucks Finance North America LLC			-			〃			-			US$						7,792						N/A			US$						7,792
			Constellation Energy Generation, LLC			-			〃			-			US$						7,729						N/A			US$						7,729
			NatWest Markets Plc			-			〃			-			US$						7,703						N/A			US$						7,703
			Lockheed Martin Corporation			-			〃			-			US$						7,700						N/A			US$						7,700
			International Bank for Reconstruction and Development			-			〃			-			US$						7,655						N/A			US$						7,655
			KfW			-			〃			-			US$						7,648						N/A			US$						7,648
			Intel Corporation			-			〃			-			US$						7,624						N/A			US$						7,624
			Coöperatieve Rabobank U.A.			-			〃			-			US$						7,433						N/A			US$						7,433
			Cox Communications, Inc.			-			〃			-			US$						7,379						N/A			US$						7,379
			Inter-American Development Bank			-			〃			-			US$						7,353						N/A			US$						7,353
			Great-West Lifeco U.S. Finance 2020, Lp			-			〃			-			US$						7,336						N/A			US$						7,336
			Suncorp-Metway Limited			-			〃			-			US$						7,330						N/A			US$						7,330
			Chevron Corporation			-			〃			-			US$						6,875						N/A			US$						6,875
			Fidelity National Information Services, Inc.			-			〃			-			US$						6,665						N/A			US$						6,665
			AstraZeneca PLC			-			〃			-			US$						6,592						N/A			US$						6,592
			Credit Suisse Group AG			-			〃			-			US$						6,541						N/A			US$						6,541
			Intuit Inc.			-			〃			-			US$						6,483						N/A			US$						6,483
			Prudential Funding Corp.			-			〃			-			US$						6,393						N/A			US$						6,393
			The East Ohio Gas Company			-			〃			-			US$						6,393						N/A			US$						6,393
			Roche Holdings, Inc.			-			〃			-			US$						6,389						N/A			US$						6,389
			MPLX LP			-			〃			-			US$						6,334						N/A			US$						6,334
			Georgia Power Company			-			〃			-			US$						6,308						N/A			US$						6,308
			Philip Morris International Inc.			-			〃			-			US$						6,205						N/A			US$						6,205
			NatWest Group plc			-			〃			-			US$						6,187						N/A			US$						6,187
			WEC Energy Group, Inc.			-			〃			-			US$						6,167						N/A			US$						6,167
			Eaton Corporation			-			〃			-			US$						6,085						N/A			US$						6,085

(Continued)

- 58 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Take-Two Interactive Software, Inc.			-			Financial assets at fair value through other comprehensive income			-			US$						6,084						N/A			US$						6,084
			UBS AG, London Branch			-			〃			-			US$						6,031						N/A			US$						6,031
			B.A.T Capital Corporation			-			〃			-			US$						6,029						N/A			US$						6,029
			UBS Group AG			-			〃			-			US$						5,997						N/A			US$						5,997
			Ameren Corporation			-			〃			-			US$						5,977						N/A			US$						5,977
			Intercontinental Exchange, Inc.			-			〃			-			US$						5,885						N/A			US$						5,885
			Huntington Bancshares Incorporated			-			〃			-			US$						5,828						N/A			US$						5,828
			Nutrien Ltd.			-			〃			-			US$						5,769						N/A			US$						5,769
			Exxon Mobil Corporation			-			〃			-			US$						5,756						N/A			US$						5,756
			Elevance Health, Inc.			-			〃			-			US$						5,736						N/A			US$						5,736
			ERAC USA Finance LLC			-			〃			-			US$						5,599						N/A			US$						5,599
			Anheuser-Busch Companies, LLC			-			〃			-			US$						5,594						N/A			US$						5,594
			Scentre Group Trust 1			-			〃			-			US$						5,544						N/A			US$						5,544
			Comcast Corporation			-			〃			-			US$						5,468						N/A			US$						5,468
			WPP Finance 2010			-			〃			-			US$						5,456						N/A			US$						5,456
			Medtronic Global Holdings S.C.A.			-			〃			-			US$						5,453						N/A			US$						5,453
			Pacific Life Global Funding II			-			〃			-			US$						5,388						N/A			US$						5,388
			Siemens Financieringsmaatschappij N.V.			-			〃			-			US$						5,370						N/A			US$						5,370
			Discover Bank (New Castle, Delaware)			-			〃			-			US$						5,286						N/A			US$						5,286
			Fox Corporation			-			〃			-			US$						5,257						N/A			US$						5,257
			Alabama Power Company			-			〃			-			US$						5,239						N/A			US$						5,239
			The Charles Schwab Corporation			-			〃			-			US$						5,222						N/A			US$						5,222
			McKesson Corporation			-			〃			-			US$						5,186						N/A			US$						5,186
			NiSource Inc.			-			〃			-			US$						5,180						N/A			US$						5,180
			CNH Industrial Capital LLC			-			〃			-			US$						5,118						N/A			US$						5,118
			Virginia Electric and Power Company			-			〃			-			US$						4,954						N/A			US$						4,954
			Dollar General Corporation			-			〃			-			US$						4,951						N/A			US$						4,951
			Southwest Airlines Co.			-			〃			-			US$						4,951						N/A			US$						4,951
			Ventas Realty, Limited Partnership			-			〃			-			US$						4,881						N/A			US$						4,881
			CGI Inc.			-			〃			-			US$						4,714						N/A			US$						4,714
			Met Tower Global Funding			-			〃			-			US$						4,703						N/A			US$						4,703
			Huntington National Bank			-			〃			-			US$						4,669						N/A			US$						4,669
			Brookfield Finance Inc.			-			〃			-			US$						4,627						N/A			US$						4,627
			Bristol-Myers Squibb Company			-			〃			-			US$						4,535						N/A			US$						4,535
			HP Inc.			-			〃			-			US$						4,483						N/A			US$						4,483
			Five Corners Funding Trust			-			〃			-			US$						4,467						N/A			US$						4,467
			Florida Power & Light Company			-			〃			-			US$						4,465						N/A			US$						4,465
			Pioneer Natural Resources Company			-			〃			-			US$						4,447						N/A			US$						4,447
			FLORIDA POWER & LIGHT CO			-			〃			-			US$						4,404						N/A			US$						4,404
			W. P. Carey Inc.			-			〃			-			US$						4,382						N/A			US$						4,382
			CenterPoint Energy, Inc.			-			〃			-			US$						4,360						N/A			US$						4,360
			Lincoln National Corporation			-			〃			-			US$						4,288						N/A			US$						4,288
			Nestlé Holdings, Inc.			-			〃			-			US$						4,139						N/A			US$						4,139
			Brighthouse Financial Global Funding			-			〃			-			US$						4,137						N/A			US$						4,137
			F&G Global Funding			-			〃			-			US$						4,010						N/A			US$						4,010
			Korea Electric Power Corporation			-			〃			-			US$						3,985						N/A			US$						3,985
			ANZ New Zealand (Int'l) Limited			-			〃			-			US$						3,921						N/A			US$						3,921
			Schlumberger Investment SA			-			〃			-			US$						3,913						N/A			US$						3,913
			Element Fleet Management Corp.			-			〃			-			US$						3,899						N/A			US$						3,899

(Continued)

- 59 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Monongahela Power Company			-			Financial assets at fair value through other comprehensive income			-			US$						3,898						N/A			US$						3,898
			CNO Global Funding			-			〃			-			US$						3,875						N/A			US$						3,875
			AvalonBay Communities, Inc.			-			〃			-			US$						3,866						N/A			US$						3,866
			ITC Holdings Corp.			-			〃			-			US$						3,850						N/A			US$						3,850
			Stryker Corporation			-			〃			-			US$						3,836						N/A			US$						3,836
			Walmart Inc.			-			〃			-			US$						3,792						N/A			US$						3,792
			7-Eleven, Inc.			-			〃			-			US$						3,702						N/A			US$						3,702
			B.A.T. International Finance p.l.c.			-			〃			-			US$						3,668						N/A			US$						3,668
			Norsk Hydro ASA			-			〃			-			US$						3,650						N/A			US$						3,650
			Appalachian Power Company			-			〃			-			US$						3,590						N/A			US$						3,590
			Fortinet, Inc.			-			〃			-			US$						3,563						N/A			US$						3,563
			Public Storage			-			〃			-			US$						3,527						N/A			US$						3,527
			Eversource Energy			-			〃			-			US$						3,503						N/A			US$						3,503
			Parker-Hannifin Corporation			-			〃			-			US$						3,487						N/A			US$						3,487
			V.F. Corporation			-			〃			-			US$						3,486						N/A			US$						3,486
			Jackson National Life Global Funding			-			〃			-			US$						3,456						N/A			US$						3,456
			CenterPoint Energy Resources Corp.			-			〃			-			US$						3,447						N/A			US$						3,447
			GA Global Funding Trust			-			〃			-			US$						3,443						N/A			US$						3,443
			DNB Bank ASA			-			〃			-			US$						3,439						N/A			US$						3,439
			BorgWarner Inc.			-			〃			-			US$						3,386						N/A			US$						3,386
			Baxter International Inc.			-			〃			-			US$						3,377						N/A			US$						3,377
			Morgan Stanley Bank, N.A.			-			〃			-			US$						3,365						N/A			US$						3,365
			Sempra			-			〃			-			US$						3,365						N/A			US$						3,365
			Kimco Realty Corporation			-			〃			-			US$						3,346						N/A			US$						3,346
			Advocate Health & Hospitals Corporation			-			〃			-			US$						3,343						N/A			US$						3,343
			Meta Platforms, Inc.			-			〃			-			US$						3,337						N/A			US$						3,337
			Ross Stores, Inc.			-			〃			-			US$						3,230						N/A			US$						3,230
			Pfizer Inc.			-			〃			-			US$						3,202						N/A			US$						3,202
			Highmark Inc.			-			〃			-			US$						3,193						N/A			US$						3,193
			Realty Income Corporation			-			〃			-			US$						3,163						N/A			US$						3,163
			Verisk Analytics, Inc.			-			〃			-			US$						3,146						N/A			US$						3,146
			U.S. Bancorp.			-			〃			-			US$						3,140						N/A			US$						3,140
			Truist Bank			-			〃			-			US$						3,072						N/A			US$						3,072
			European Bank for Reconstruction and Development			-			〃			-			US$						3,054						N/A			US$						3,054
			Corebridge Financial, Inc.			-			〃			-			US$						3,022						N/A			US$						3,022
			ONE Gas, Inc.			-			〃			-			US$						3,020						N/A			US$						3,020
			Lundin Energy Finance BV			-			〃			-			US$						3,014						N/A			US$						3,014
			EIDP, Inc.			-			〃			-			US$						3,012						N/A			US$						3,012
			Atmos Energy Corporation			-			〃			-			US$						2,961						N/A			US$						2,961
			Johnson & Johnson			-			〃			-			US$						2,950						N/A			US$						2,950
			CNA Financial Corporation			-			〃			-			US$						2,948						N/A			US$						2,948
			Prologis, L.P.			-			〃			-			US$						2,914						N/A			US$						2,914
			Coca-Cola Europacific Partners PLC			-			〃			-			US$						2,909						N/A			US$						2,909
			Rio Tinto Finance (USA) Limited			-			〃			-			US$						2,904						N/A			US$						2,904
			Southern California Gas Company			-			〃			-			US$						2,875						N/A			US$						2,875
			Otis Worldwide Corporation			-			〃			-			US$						2,863						N/A			US$						2,863
			Avangrid, Inc.			-			〃			-			US$						2,858						N/A			US$						2,858
			AutoZone, Inc.			-			〃			-			US$						2,837						N/A			US$						2,837
			Xcel Energy Inc.			-			〃			-			US$						2,832						N/A			US$						2,832

(Continued)

- 60 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Canadian Imperial Bank of Commerce			-			Financial assets at fair value through other comprehensive income			-			US$						2,826						N/A			US$						2,826
			TORONTO-DOMINION BANK/THE			-			〃			-			US$						2,793						N/A			US$						2,793
			Diageo Capital plc			-			〃			-			US$						2,775						N/A			US$						2,775
			Novartis Capital Corporation			-			〃			-			US$						2,742						N/A			US$						2,742
			Baxalta Incorporated			-			〃			-			US$						2,716						N/A			US$						2,716
			Public Service Enterprise Group Incorporated			-			〃			-			US$						2,702						N/A			US$						2,702
			Oncor Electric Delivery Company LLC			-			〃			-			US$						2,672						N/A			US$						2,672
			Ameriprise Financial, Inc.			-			〃			-			US$						2,655						N/A			US$						2,655
			Weyerhaeuser Company			-			〃			-			US$						2,650						N/A			US$						2,650
			Chevron Phillips Chemical Company LLC			-			〃			-			US$						2,608						N/A			US$						2,608
			Eastern Energy Gas Holdings, LLC			-			〃			-			US$						2,591						N/A			US$						2,591
			National Australia Bank Limited, New York Branch			-			〃			-			US$						2,587						N/A			US$						2,587
			Black Hills Corporation			-			〃			-			US$						2,576						N/A			US$						2,576
			The Estée Lauder Companies Inc.			-			〃			-			US$						2,572						N/A			US$						2,572
			Mondelez International Holdings Netherlands B.V.			-			〃			-			US$						2,563						N/A			US$						2,563
			Simon Property Group, L.P.			-			〃			-			US$						2,562						N/A			US$						2,562
			Masco Corporation			-			〃			-			US$						2,547						N/A			US$						2,547
			Georgia-Pacific LLC			-			〃			-			US$						2,527						N/A			US$						2,527
			Sprint Spectrum Co Llc			-			〃			-			US$						2,526						N/A			US$						2,526
			NBN Co Limited			-			〃			-			US$						2,502						N/A			US$						2,502
			Bank of New Zealand			-			〃			-			US$						2,493						N/A			US$						2,493
			Air Products and Chemicals, Inc.			-			〃			-			US$						2,471						N/A			US$						2,471
			Nuveen Finance, LLC			-			〃			-			US$						2,427						N/A			US$						2,427
			Santander UK plc			-			〃			-			US$						2,424						N/A			US$						2,424
			Phillips 66			-			〃			-			US$						2,371						N/A			US$						2,371
			American Electric Power Company, Inc.			-			〃			-			US$						2,367						N/A			US$						2,367
			CMS Energy Corporation			-			〃			-			US$						2,364						N/A			US$						2,364
			CRH America, Inc.			-			〃			-			US$						2,363						N/A			US$						2,363
			M&T Bank Corporation			-			〃			-			US$						2,362						N/A			US$						2,362
			Bayer US Finance II LLC			-			〃			-			US$						2,361						N/A			US$						2,361
			Workday, Inc.			-			〃			-			US$						2,353						N/A			US$						2,353
			Texas Instruments Incorporated			-			〃			-			US$						2,289						N/A			US$						2,289
			Magellan Midstream Partners, L.P.			-			〃			-			US$						2,283						N/A			US$						2,283
			Air Lease Corporation			-			〃			-			US$						2,281						N/A			US$						2,281
			Chevron U.S.A. Inc.			-			〃			-			US$						2,281						N/A			US$						2,281
			USAA Capital Corp.			-			〃			-			US$						2,276						N/A			US$						2,276
			Yara International ASA			-			〃			-			US$						2,247						N/A			US$						2,247
			Cardinal Health, Inc.			-			〃			-			US$						2,228						N/A			US$						2,228
			GE HealthCare Technologies Inc.			-			〃			-			US$						2,222						N/A			US$						2,222
			RGA Global Funding			-			〃			-			US$						2,214						N/A			US$						2,214
			Dominion Energy, Inc.			-			〃			-			US$						2,191						N/A			US$						2,191
			Empower Finance 2020, LP			-			〃			-			US$						2,171						N/A			US$						2,171
			The Western Union Company			-			〃			-			US$						2,119						N/A			US$						2,119
			International Business Machines Corporation			-			〃			-			US$						2,090						N/A			US$						2,090
			BHP Billiton Finance (USA) Limited			-			〃			-			US$						2,068						N/A			US$						2,068
			Health Care Service Corporation, a Mutual Legal Reserve Company			-			〃			-			US$						2,056						N/A			US$						2,056
			The Southern Company			-			〃			-			US$						2,031						N/A			US$						2,031

(Continued)

- 61 -

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Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Mondelez International, Inc.			-			Financial assets at fair value through other comprehensive income			-			US$						1,975						N/A			US$						1,975
			KODIT Global 2023-1 Co., Ltd.			-			〃			-			US$						1,966						N/A			US$						1,966
			Public Service Electric and Gas Company			-			〃			-			US$						1,951						N/A			US$						1,951
			Mead Johnson Nutrition Company			-			〃			-			US$						1,950						N/A			US$						1,950
			Magna International Inc.			-			〃			-			US$						1,939						N/A			US$						1,939
			Tucson Electric Power Company			-			〃			-			US$						1,912						N/A			US$						1,912
			UBS Group Funding (Jersey) Ltd.			-			〃			-			US$						1,906						N/A			US$						1,906
			National Rural Utilities Cooperative Finance Corporation			-			〃			-			US$						1,883						N/A			US$						1,883
			Gulf Power Company			-			〃			-			US$						1,881						N/A			US$						1,881
			Olympus Corporation			-			〃			-			US$						1,868						N/A			US$						1,868
			CSX Corporation			-			〃			-			US$						1,857						N/A			US$						1,857
			Marsh & McLennan Companies, Inc.			-			〃			-			US$						1,856						N/A			US$						1,856
			Shinhan Financial Group Co., Ltd.			-			〃			-			US$						1,799						N/A			US$						1,799
			NBK SPC Limited			-			〃			-			US$						1,786						N/A			US$						1,786
			Mitsubishi Corporation			-			〃			-			US$						1,770						N/A			US$						1,770
			Caterpillar Financial Services Corporation			-			〃			-			US$						1,747						N/A			US$						1,747
			Sydney Airport Finance Company Pty Ltd			-			〃			-			US$						1,747						N/A			US$						1,747
			Kentucky Utilities Company			-			〃			-			US$						1,696						N/A			US$						1,696
			Enbridge Inc.			-			〃			-			US$						1,692						N/A			US$						1,692
			SMBC Aviation Capital Finance DAC			-			〃			-			US$						1,681						N/A			US$						1,681
			DTE Energy Company			-			〃			-			US$						1,649						N/A			US$						1,649
			Evergy Kansas Central, Inc.			-			〃			-			US$						1,643						N/A			US$						1,643
			Mastercard Incorporated			-			〃			-			US$						1,623						N/A			US$						1,623
			University of California			-			〃			-			US$						1,592						N/A			US$						1,592
			Gulfstream Natural Gas System, L.L.C.			-			〃			-			US$						1,572						N/A			US$						1,572
			CSL Finance plc			-			〃			-			US$						1,569						N/A			US$						1,569
			Berkshire Hathaway Energy Company			-			〃			-			US$						1,563						N/A			US$						1,563
			Burlington Northern Santa Fe, LLC			-			〃			-			US$						1,556						N/A			US$						1,556
			eBay Inc.			-			〃			-			US$						1,556						N/A			US$						1,556
			Union Pacific Corporation			-			〃			-			US$						1,549						N/A			US$						1,549
			Emerson Electric Co.			-			〃			-			US$						1,531						N/A			US$						1,531
			The Cigna Group			-			〃			-			US$						1,522						N/A			US$						1,522
			Glencore Funding LLC			-			〃			-			US$						1,515						N/A			US$						1,515
			Westpac Banking Corporation			-			〃			-			US$						1,513						N/A			US$						1,513
			Duke Energy Corporation			-			〃			-			US$						1,500						N/A			US$						1,500
			APA Infrastructure Limited			-			〃			-			US$						1,487						N/A			US$						1,487
			Zoetis Inc.			-			〃			-			US$						1,487						N/A			US$						1,487
			Phillips 66 Company			-			〃			-			US$						1,462						N/A			US$						1,462
			Kinder Morgan, Inc.			-			〃			-			US$						1,458						N/A			US$						1,458
			Pricoa Global Funding I			-			〃			-			US$						1,455						N/A			US$						1,455
			Microchip Technology Incorporated			-			〃			-			US$						1,452						N/A			US$						1,452
			Amcor Flexibles North America Inc.			-			〃			-			US$						1,449						N/A			US$						1,449
			Commonwealth Bank of Australia			-			〃			-			US$						1,442						N/A			US$						1,442
			Wipro IT Services LLC			-			〃			-			US$						1,424						N/A			US$						1,424
			Essex Portfolio, L.P.			-			〃			-			US$						1,423						N/A			US$						1,423
			Duke Energy Florida, LLC			-			〃			-			US$						1,420						N/A			US$						1,420
			NSTAR Electric Company			-			〃			-			US$						1,416						N/A			US$						1,416
			Marathon Petroleum Corporation			-			〃			-			US$						1,410						N/A			US$						1,410
			Alimentation Couche-Tard Inc.			-			〃			-			US$						1,390						N/A			US$						1,390

(Continued)

- 62 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Swedbank AB (publ)			-			Financial assets at fair value through other comprehensive income			-			US$						1,370						N/A			US$						1,370
			Alliant Energy Finance, LLC			-			〃			-			US$						1,344						N/A			US$						1,344
			Republic Services, Inc.			-			〃			-			US$						1,327						N/A			US$						1,327
			Eastern Gas Transmission and Storage, Inc.			-			〃			-			US$						1,295						N/A			US$						1,295
			BOC Aviation Limited			-			〃			-			US$						1,260						N/A			US$						1,260
			American International Group, Inc.			-			〃			-			US$						1,259						N/A			US$						1,259
			Amphenol Corporation			-			〃			-			US$						1,259						N/A			US$						1,259
			Andrew W. Mellon Foundation, The			-			〃			-			US$						1,220						N/A			US$						1,220
			Ecolab Inc.			-			〃			-			US$						1,182						N/A			US$						1,182
			BAE Systems Holdings, Inc.			-			〃			-			US$						1,168						N/A			US$						1,168
			The Curators of the University of Missouri			-			〃			-			US$						1,095						N/A			US$						1,095
			Ferguson Finance PLC			-			〃			-			US$						1,085						N/A			US$						1,085
			Reliance Standard Life Global Funding II			-			〃			-			US$						1,078						N/A			US$						1,078
			Nucor Corporation			-			〃			-			US$						1,057						N/A			US$						1,057
			State Street Corporation			-			〃			-			US$						1,037						N/A			US$						1,037
			Enterprise Products Operating LLC			-			〃			-			US$						1,016						N/A			US$						1,016
			Sabine Pass Liquefaction, LLC			-			〃			-			US$						1,007						N/A			US$						1,007
			Scottish Power Limited			-			〃			-			US$						1,002						N/A			US$						1,002
			PACCAR Financial Corp.			-			〃			-			US$						1,001						N/A			US$						1,001
			Welltower Inc.			-			〃			-			US$						991						N/A			US$						991
			Becton, Dickinson and Company			-			〃			-			US$						978						N/A			US$						978
			MassMutual Global Funding II			-			〃			-			US$						976						N/A			US$						976
			Suntory Holdings Limited			-			〃			-			US$						949						N/A			US$						949
			AIA Group Limited			-			〃			-			US$						945						N/A			US$						945
			LYB Finance Company B.V.			-			〃			-			US$						944						N/A			US$						944
			Canadian Pacific Railway Company			-			〃			-			US$						935						N/A			US$						935
			UBS AG (LONDON BRANCH)			-			〃			-			US$						927						N/A			US$						927
			Unilever Capital Corporation			-			〃			-			US$						878						N/A			US$						878
			Reynolds American Inc.			-			〃			-			US$						874						N/A			US$						874
			Kenvue Inc.			-			〃			-			US$						852						N/A			US$						852
			Cargill, Incorporated			-			〃			-			US$						840						N/A			US$						840
			Hormel Foods Corporation			-			〃			-			US$						832						N/A			US$						832
			Palm Beach County, Florida			-			〃			-			US$						803						N/A			US$						803
			TransCanada PipeLines Limited			-			〃			-			US$						797						N/A			US$						797
			Infor, Inc.			-			〃			-			US$						785						N/A			US$						785
			BP Capital Markets America, Inc.			-			〃			-			US$						749						N/A			US$						749
			CubeSmart, L.P.			-			〃			-			US$						749						N/A			US$						749
			Niagara Mohawk Power Corporation			-			〃			-			US$						746						N/A			US$						746
			Sysco Corporation			-			〃			-			US$						746						N/A			US$						746
			The Brooklyn Union Gas Company			-			〃			-			US$						743						N/A			US$						743
			Mars, Incorporated			-			〃			-			US$						737						N/A			US$						737
			Consolidated Edison Company of New York, Inc.			-			〃			-			US$						735						N/A			US$						735
			Oklahoma Gas and Electric Company			-			〃			-			US$						732						N/A			US$						732
			Gilead Sciences, Inc.			-			〃			-			US$						731						N/A			US$						731
			Manufacturers and Traders Trust Company			-			〃			-			US$						730						N/A			US$						730
			Southern Power Company			-			〃			-			US$						730						N/A			US$						730
			Voya Financial, Inc.			-			〃			-			US$						730						N/A			US$						730
			TELUS Corporation			-			〃			-			US$						728						N/A			US$						728
			Visa Inc.			-			〃			-			US$						724						N/A			US$						724

(Continued)

- 63 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			The Walt Disney Company			-			Financial assets at fair value through other comprehensive income			-			US$						723						N/A			US$						723
			Sky Limited			-			〃			-			US$						683						N/A			US$						683
			Hyundai Capital Services, Inc.			-			〃			-			US$						668						N/A			US$						668
			QNB Finance Ltd.			-			〃			-			US$						665						N/A			US$						665
			The Allstate Corporation			-			〃			-			US$						658						N/A			US$						658
			State Of Washington			-			〃			-			US$						657						N/A			US$						657
			Sodexo, Inc.			-			〃			-			US$						651						N/A			US$						651
			Automatic Data Processing, Inc.			-			〃			-			US$						631						N/A			US$						631
			Bell Canada			-			〃			-			US$						628						N/A			US$						628
			Keurig Dr Pepper Inc.			-			〃			-			US$						603						N/A			US$						603
			L3Harris Technologies, Inc.			-			〃			-			US$						599						N/A			US$						599
			MetLife, Inc.			-			〃			-			US$						591						N/A			US$						591
			Starbucks Corporation			-			〃			-			US$						580						N/A			US$						580
			Florida Hurricane Catastrophe Fund Finance Corporation			-			〃			-			US$						577						N/A			US$						577
			Port of Morrow			-			〃			-			US$						568						N/A			US$						568
			American Water Capital Corp.			-			〃			-			US$						556						N/A			US$						556
			Shell International Finance B.V.			-			〃			-			US$						526						N/A			US$						526
			Intesa Sanpaolo S.p.A.			-			〃			-			US$						505						N/A			US$						505
			State of Hawaii			-			〃			-			US$						501						N/A			US$						501
			ConocoPhillips Company			-			〃			-			US$						500						N/A			US$						500
			Arizona Public Service Company			-			〃			-			US$						498						N/A			US$						498
			Skandinaviska Enskilda Banken AB (publ)			-			〃			-			US$						494						N/A			US$						494
			Mississippi Power Company			-			〃			-			US$						493						N/A			US$						493
			APPLE INC			-			〃			-			US$						491						N/A			US$						491
			Westpac New Zealand Limited			-			〃			-			US$						489						N/A			US$						489
			Deutsche Telekom International Finance B.V.			-			〃			-			US$						485						N/A			US$						485
			Mercedes-Benz Finance North America LLC			-			〃			-			US$						484						N/A			US$						484
			Haleon UK Capital plc			-			〃			-			US$						477						N/A			US$						477
			Trane Technologies Luxembourg Finance S.A.			-			〃			-			US$						477						N/A			US$						477
			Genuine Parts Company			-			〃			-			US$						467						N/A			US$						467
			McCormick & Company, Incorporated			-			〃			-			US$						467						N/A			US$						467
			Altria Group, Inc.			-			〃			-			US$						466						N/A			US$						466
			American Honda Finance Corporation			-			〃			-			US$						444						N/A			US$						444
			Tyson Foods, Inc.			-			〃			-			US$						441						N/A			US$						441
			DENSO Corporation			-			〃			-			US$						439						N/A			US$						439
			Brazos Higher Education Authority Inc			-			〃			-			US$						431						N/A			US$						431
			Pernod Ricard International Finance LLC			-			〃			-			US$						422						N/A			US$						422
			Aker BP ASA			-			〃			-			US$						421						N/A			US$						421
			The Home Depot, Inc.			-			〃			-			US$						408						N/A			US$						408
			Target Corporation			-			〃			-			US$						404						N/A			US$						404
			National Australia Bank Limited			-			〃			-			US$						400						N/A			US$						400
			GlaxoSmithKline Capital Inc.			-			〃			-			US$						384						N/A			US$						384
			University of Massachusetts Building Authority			-			〃			-			US$						383						N/A			US$						383
			Banco del Estado de Chile			-			〃			-			US$						382						N/A			US$						382
			Entergy Corporation			-			〃			-			US$						382						N/A			US$						382
			Aflac Incorporated			-			〃			-			US$						380						N/A			US$						380
			Sierra Pacific Power Company			-			〃			-			US$						372						N/A			US$						372
			Oregon Health & Science University			-			〃			-			US$						368						N/A			US$						368
			NIKE, Inc.			-			〃			-			US$						359						N/A			US$						359

(Continued)

- 64 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			PepsiCo, Inc.			-			Financial assets at fair value through other comprehensive income			-			US$						357						N/A			US$						357
			The Norinchukin Bank			-			〃			-			US$						350						N/A			US$						350
			Rabobank Nederland - New York Branch			-			〃			-			US$						340						N/A			US$						340
			Raytheon Technologies Corporation			-			〃			-			US$						324						N/A			US$						324
			Alabama State Federal Aid Highway Finance Authority			-			〃			-			US$						298						N/A			US$						298
			Consumers Energy Company			-			〃			-			US$						296						N/A			US$						296
			Electricité de France S.A.			-			〃			-			US$						296						N/A			US$						296
			Mid-America Apartments, L.P.			-			〃			-			US$						296						N/A			US$						296
			QUALCOMM Incorporated			-			〃			-			US$						293						N/A			US$						293
			TotalEnergies Capital International			-			〃			-			US$						287						N/A			US$						287
			Salesforce, Inc.			-			〃			-			US$						285						N/A			US$						285
			Aptiv PLC			-			〃			-			US$						284						N/A			US$						284
			National Grid plc			-			〃			-			US$						281						N/A			US$						281
			QatarEnergy			-			〃			-			US$						270						N/A			US$						270
			Barclays Bank PLC			-			〃			-			US$						269						N/A			US$						269
			Marriott International, Inc.			-			〃			-			US$						262						N/A			US$						262
			NetApp, Inc.			-			〃			-			US$						255						N/A			US$						255
			The Williams Companies, Inc.			-			〃			-			US$						239						N/A			US$						239
			KBC Group NV			-			〃			-			US$						233						N/A			US$						233
			Pennsylvania Electric Company			-			〃			-			US$						231						N/A			US$						231
			Waste Management, Inc.			-			〃			-			US$						225						N/A			US$						225
			Entergy Louisiana, LLC			-			〃			-			US$						223						N/A			US$						223
			Children's Hospital Of Orange County			-			〃			-			US$						219						N/A			US$						219
			The Pennsylvania State University			-			〃			-			US$						209						N/A			US$						209
			Riverside County Infrastructure Financing Authority			-			〃			-			US$						201						N/A			US$						201
			Deere & Company			-			〃			-			US$						192						N/A			US$						192
			Los Angeles Department of Water and Power, California			-			〃			-			US$						190						N/A			US$						190
			PayPal Holdings, Inc.			-			〃			-			US$						187						N/A			US$						187
			Hoover Alabama Board Of Education			-			〃			-			US$						102						N/A			US$						102
			Beth Israel Deaconess Medical Center, Inc.			-			〃			-			US$						84						N/A			US$						84
			Metropolitan Edison Company			-			〃			-			US$						79						N/A			US$						79
			Pima County, Arizona			-			〃			-			US$						77						N/A			US$						77
			State of Wisconsin			-			〃			-			US$						62						N/A			US$						62
			Aon Corporation			-			〃			-			US$						50						N/A			US$						50
			Nueces County			-			〃			-			US$						24						N/A			US$						24
			Bank of America Corporation			-			Financial assets at amortized cost			-			US$						726,880						N/A			US$						720,604
			The Goldman Sachs Group, Inc.			-			〃			-			US$						603,956						N/A			US$						584,688
			Citigroup Global Markets Inc.			-			〃			-			US$						349,886						N/A			US$						346,920
			Morgan Stanley			-			〃			-			US$						349,096						N/A			US$						346,520
			Wells Fargo & Company			-			〃			-			US$						284,425						N/A			US$						281,436
			JPMorgan Chase & Co.			-			〃			-			US$						240,916						N/A			US$						239,800
			Citigroup Inc.			-			〃			-			US$						151,411						N/A			US$						151,255
			Citigroup Global Markets Holdings Inc.			-			〃			-			US$						149,951						N/A			US$						147,603
			Goldman Sachs Finance Corp International Ltd.			-			〃			-			US$						149,857						N/A			US$						147,334
			Jpmorgan LLC			-			〃			-			US$						49,984						N/A			US$						49,357
			Banco Bilbao Vizcaya Argentaria, S.A.			-			〃			-			US$						10,717						N/A			US$						10,550
			Hyundai Capital Services, Inc.			-			〃			-			US$						9,411						N/A			US$						9,300
			Great-West Lifeco U.S. Finance 2020, Lp			-			〃			-			US$						9,391						N/A			US$						9,055
			BNP Paribas SA			-			〃			-			US$						9,228						N/A			US$						9,081

(Continued)

- 65 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Nomura Holdings, Inc.			-			Financial assets at amortized cost			-			US$						9,176						N/A			US$						8,928
			Fédération des caisses Desjardins du Québec			-			〃			-			US$						9,175						N/A			US$						8,892
			UBS Group AG			-			〃			-			US$						9,138						N/A			US$						8,883
			Sumitomo Mitsui Trust Bank, Limited			-			〃			-			US$						9,127						N/A			US$						8,996
			GA Global Funding Trust			-			〃			-			US$						9,112						N/A			US$						8,991
			Deutsche Bank AG - New York Branch			-			〃			-			US$						9,109						N/A			US$						8,948
			Athene Global Funding			-			〃			-			US$						9,030						N/A			US$						8,800
			Lloyds Banking Group plc			-			〃			-			US$						8,971						N/A			US$						8,864
			Svenska Handelsbanken AB (publ)			-			〃			-			US$						8,696						N/A			US$						8,624
			NongHyup Bank			-			〃			-			US$						8,691						N/A			US$						8,559
			Canadian Imperial Bank of Commerce			-			〃			-			US$						8,596						N/A			US$						8,409
			BPCE SA			-			〃			-			US$						8,515						N/A			US$						8,279
			Banco Santander, S.A.			-			〃			-			US$						8,304						N/A			US$						8,146
			Nationwide Building Society			-			〃			-			US$						8,296						N/A			US$						8,015
			Enel Finance International N.V.			-			〃			-			US$						8,232						N/A			US$						8,061
			Ventas Realty, Limited Partnership			-			〃			-			US$						8,229						N/A			US$						8,038
			SMBC Aviation Capital Finance DAC			-			〃			-			US$						8,111						N/A			US$						8,114
			Volkswagen Group of America Finance, LLC			-			〃			-			US$						7,995						N/A			US$						7,875
			Protective Life Global Funding			-			〃			-			US$						7,939						N/A			US$						7,705
			CRH America, Inc.			-			〃			-			US$						7,931						N/A			US$						7,728
			Mercedes-Benz Finance North America LLC			-			〃			-			US$						7,830						N/A			US$						7,787
			Mitsubishi UFJ Financial Group, Inc.			-			〃			-			US$						7,694						N/A			US$						7,622
			Sydney Airport Finance Company Pty Ltd			-			〃			-			US$						7,678						N/A			US$						7,535
			Sumitomo Mitsui Financial Group, Inc.			-			〃			-			US$						7,413						N/A			US$						7,290
			AIG Global Funding			-			〃			-			US$						7,338						N/A			US$						7,176
			Southern California Edison Company			-			〃			-			US$						5,885						N/A			US$						5,848
			Daimler Trucks Finance North America LLC			-			〃			-			US$						5,777						N/A			US$						5,646
			F&G Global Funding			-			〃			-			US$						5,507						N/A			US$						5,342
			NatWest Markets Plc			-			〃			-			US$						5,482						N/A			US$						5,367
			Swedbank AB (publ)			-			〃			-			US$						5,316						N/A			US$						5,284
			Georgia-Pacific LLC			-			〃			-			US$						5,234						N/A			US$						5,213
			Bayer US Finance II LLC			-			〃			-			US$						4,991						N/A			US$						4,952
			Ecolab Inc.			-			〃			-			US$						4,940						N/A			US$						4,917
			Jackson Financial Inc.			-			〃			-			US$						4,749						N/A			US$						4,721
			Bristol-Myers Squibb Company			-			〃			-			US$						4,743						N/A			US$						4,711
			Kinder Morgan, Inc.			-			〃			-			US$						4,645						N/A			US$						4,637
			ING Groep N.V.			-			〃			-			US$						4,498						N/A			US$						4,478
			Toyota Motor Credit Corporation			-			〃			-			US$						4,498						N/A			US$						4,476
			Banque Fédérative du Crédit Mutuel Société anonyme			-			〃			-			US$						4,479						N/A			US$						4,413
			Five Corners Funding Trust			-			〃			-			US$						4,402						N/A			US$						4,361
			Danone S.A.			-			〃			-			US$						4,180						N/A			US$						4,155
			Société Générale Société anonyme			-			〃			-			US$						3,999						N/A			US$						3,980
			Penske Truck Leasing Co., L.P.			-			〃			-			US$						3,996						N/A			US$						3,994
			Komatsu Finance America, Inc.			-			〃			-			US$						3,974						N/A			US$						3,961
			The Bank of Nova Scotia			-			〃			-			US$						3,973						N/A			US$						3,957
			Danske Bank A/S			-			〃			-			US$						3,966						N/A			US$						3,954
			BANQUE FEDERATIVE DU CREDIT MUTUEL			-			〃			-			US$						3,939						N/A			US$						3,889
			Nordea Bank Abp			-			〃			-			US$						3,786						N/A			US$						3,776
			Shire Acquisitions Investments Ireland Designated Activity Company			-			〃			-			US$						3,759						N/A			US$						3,746
			Georgia Power Company			-			〃			-			US$						3,583						N/A			US$						3,581

(Continued)

- 66 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Enbridge Inc.			-			Financial assets at amortized cost			-			US$						3,471						N/A			US$						3,454
			Central Japan Railway Company			-			〃			-			US$						3,396						N/A			US$						3,385
			Jackson National Life Global Funding			-			〃			-			US$						3,335						N/A			US$						3,202
			Nestlé Holdings, Inc.			-			〃			-			US$						3,275						N/A			US$						3,258
			ANZ New Zealand (Int'l) Limited			-			〃			-			US$						3,221						N/A			US$						3,134
			Spectra Energy Partners, LP			-			〃			-			US$						2,841						N/A			US$						2,762
			Ryder System, Inc.			-			〃			-			US$						2,554						N/A			US$						2,536
			National Bank of Canada			-			〃			-			US$						2,046						N/A			US$						2,028
			Reliance Standard Life Global Funding II			-			〃			-			US$						2,037						N/A			US$						2,009
			American Honda Finance Corporation			-			〃			-			US$						1,990						N/A			US$						1,981
			Oracle Corporation			-			〃			-			US$						894						N/A			US$						891
			Baxter International Inc.			-			〃			-			US$						794						N/A			US$						788
			Barclays Bank PLC			-			〃			-			US$						738						N/A			US$						734
			Abbott Laboratories			-			〃			-			US$						362						N/A			US$						359
			Metropolitan Life Global Funding I			-			〃			-			US$						149						N/A			US$						148
			Government bond/Agency bonds
			United States Department of The Treasury			-			Financial assets at fair value through other comprehensive income			-			US$						755,672						N/A			US$						755,672
			Federal Home Loan Mortgage Corporation			-			〃			-			US$						2,994						N/A			US$						2,994
			FEDERAL NATIONAL MORTGAGE ASSOCIATION			-			〃			-			US$						1,042						N/A			US$						1,042
			Federal Home Loan Banks			-			Financial assets at amortized cost			-			US$						225,000						N/A			US$						224,746
			United States Department of The Treasury			-			〃			-			US$						49,379						N/A			US$						48,669
			Agency mortgage-backed securities
			FEDERAL NATIONAL MORTGAGE ASSOCIATION			-			Financial assets at fair value through other comprehensive income			-			US$						566,850						N/A			US$						566,850
			Federal Home Loan Mortgage Corporation			-			〃			-			US$						330,152						N/A			US$						330,152
			Government National Mortgage Association			-			〃			-			US$						204,764						N/A			US$						204,764
			Asset-backed securities
			Hyundai Auto Receivables Trust 2021-C			-			Financial assets at fair value through other comprehensive income			-			US$						10,558						N/A			US$						10,558
			BX Trust 2022-LBA6			-			〃			-			US$						9,755						N/A			US$						9,755
			Wells Fargo Commercial Mortgage Trust 2016-Bnk1			-			〃			-			US$						9,637						N/A			US$						9,637
			JPMBB Commercial Mortgage Securities Trust 2014-C24			-			〃			-			US$						9,601						N/A			US$						9,601
			Toyota Auto Receivables 2022-B Owner Trust			-			〃			-			US$						9,541						N/A			US$						9,541
			Ford Credit Auto Owner Trust 2021-Rev2			-			〃			-			US$						7,406						N/A			US$						7,406
			Citigroup Commercial Mortgage Trust 2015-GC33			-			〃			-			US$						7,035						N/A			US$						7,035
			Ford Credit Auto Owner Trust 2020-REV2			-			〃			-			US$						6,646						N/A			US$						6,646
			Morgan Stanley Capital I Trust 2021-L6			-			〃			-			US$						6,159						N/A			US$						6,159
			Morgan Stanley Bank America Merrill Lynch Trust 2016-C30			-			〃			-			US$						6,072						N/A			US$						6,072
			Honda Auto Receivables 2023-2 Owner Trust			-			〃			-			US$						5,974						N/A			US$						5,974
			BBCMS Mortgage Trust 2020-C8			-			〃			-			US$						5,951						N/A			US$						5,951
			Benchmark 2019-B11 Mortgage Trust			-			〃			-			US$						5,798						N/A			US$						5,798
			Bank 2020-BNK26			-			〃			-			US$						5,685						N/A			US$						5,685
			Hudson Yards 2016-10HY Mortgage Trust			-			〃			-			US$						5,610						N/A			US$						5,610
			Citigroup Commercial Mortgage Trust 2021-PRM2			-			〃			-			US$						5,445						N/A			US$						5,445
			Bank 2021-bnk33			-			〃			-			US$						5,316						N/A			US$						5,316
			Benchmark 2019-B12 Mortgage Trust			-			〃			-			US$						5,205						N/A			US$						5,205
			Benchmark 2023-B39 Mortgage Trust			-			〃			-			US$						5,140						N/A			US$						5,140

(Continued)

- 67 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			MSWF Commercial Mortgage Trust 2023-1			-			Financial assets at fair value through other comprehensive income			-			US$						5,105						N/A			US$						5,105
			BBCMS 2018-Tall Mortgage Trust			-			〃			-			US$						4,952						N/A			US$						4,952
			Bank 2017-Bnk6			-			〃			-			US$						4,933						N/A			US$						4,933
			Wells Fargo Commercial Mortgage Trust 2016-C35			-			〃			-			US$						4,853						N/A			US$						4,853
			CSAIL 2018-CX11			-			〃			-			US$						4,672						N/A			US$						4,672
			Wells Fargo Commercial Mortgage Trust 2021-C59			-			〃			-			US$						4,624						N/A			US$						4,624
			Morgan Stanley Capital I Trust 2016 - BNK2 Fund			-			〃			-			US$						4,525						N/A			US$						4,525
			GM Financial Revolving Receivables Trust 2021-1			-			〃			-			US$						4,385						N/A			US$						4,385
			Honda Auto Receivables 2021 - 4 Owner Trust			-			〃			-			US$						4,377						N/A			US$						4,377
			MRCD 2019-Prkc Mortgage Trust			-			〃			-			US$						4,282						N/A			US$						4,282
			Bank 2017-BNK9			-			〃			-			US$						4,205						N/A			US$						4,205
			Citigroup Commercial Mortgage Trust 2014-GC21			-			〃			-			US$						4,166						N/A			US$						4,166
			Msbam 2016-C29			-			〃			-			US$						4,002						N/A			US$						4,002
			Bank 2017 - BNK7			-			〃			-			US$						3,932						N/A			US$						3,932
			Five 2023-V1 Mortgage Trust			-			〃			-			US$						3,912						N/A			US$						3,912
			JPMCC 2017-JP7			-			〃			-			US$						3,853						N/A			US$						3,853
			BANK 2017-BNK5			-			〃			-			US$						3,491						N/A			US$						3,491
			Bank 2019-Bnk22			-			〃			-			US$						3,106						N/A			US$						3,106
			Citigroup Commercial Mortgage Trust 2019-Gc43			-			〃			-			US$						3,103						N/A			US$						3,103
			Nissan Auto Lease Trust 2023-B			-			〃			-			US$						2,994						N/A			US$						2,994
			Msbam 2016-C31			-			〃			-			US$						2,946						N/A			US$						2,946
			Commerce 2015-CCRE24 Mortgage Trust			-			〃			-			US$						2,929						N/A			US$						2,929
			WFRBS Commercial Mortgage Trust 2014-C25			-			〃			-			US$						2,874						N/A			US$						2,874
			Sreit Commercial Mortgage Trust 2021-Mfp			-			〃			-			US$						2,817						N/A			US$						2,817
			Bmo 2023-C5 Mortgage Trust			-			〃			-			US$						2,770						N/A			US$						2,770
			Benchmark 2019-B15 Mortgage Trust			-			〃			-			US$						2,597						N/A			US$						2,597
			Bank 2019-Bnk17			-			〃			-			US$						2,586						N/A			US$						2,586
			JPMDB 2017-C7			-			〃			-			US$						2,555						N/A			US$						2,555
			DCENT_23-2			-			〃			-			US$						2,489						N/A			US$						2,489
			GS Mortgage Securities Trust 2015-GC32			-			〃			-			US$						2,432						N/A			US$						2,432
			Benchmark 2018-B3 Commercial Mortgage Trust			-			〃			-			US$						2,399						N/A			US$						2,399
			Ford Credit Auto Owner Trust 2020-Rev1			-			〃			-			US$						2,352						N/A			US$						2,352
			Citigroup Commercial Mortgage Trust 2016-C1			-			〃			-			US$						2,246						N/A			US$						2,246
			Mhc Commercial Mortgage Trust 2021-Mhc			-			〃			-			US$						2,246						N/A			US$						2,246
			Citigroup Commercial Mortgage Trust 2015-P1			-			〃			-			US$						2,135						N/A			US$						2,135
			Citigroup Commercial Mortgage Trust 2015-GC27			-			〃			-			US$						2,059						N/A			US$						2,059
			Wells Fargo Commercial Mortgage Trust 2020-C55			-			〃			-			US$						2,023						N/A			US$						2,023
			Ford Credit Auto Owner Trust 2023-A			-			〃			-			US$						1,974						N/A			US$						1,974
			Benchmark 2018-B4 Mortgage Trust			-			〃			-			US$						1,944						N/A			US$						1,944
			UBS Commercial Mortgage Trust 2018-C11			-			〃			-			US$						1,921						N/A			US$						1,921
			Morgan Stanley Capital I Trust			-			〃			-			US$						1,835						N/A			US$						1,835
			Commerce 2013-CCRE12 Mortgage Trust			-			〃			-			US$						1,790						N/A			US$						1,790
			Dolp Trust 2021-NYC			-			〃			-			US$						1,725						N/A			US$						1,725
			CGCMT 2017-P8 Mortgage Trust			-			〃			-			US$						1,692						N/A			US$						1,692
			Wells Fargo Commercial Mortgage Trust 2015-C30			-			〃			-			US$						1,557						N/A			US$						1,557
			Honda Auto Receivables 2023-1 Owner Trust			-			〃			-			US$						1,502						N/A			US$						1,502
			JPMBB Commercial Mortgage Securities Trust 2015-C27			-			〃			-			US$						1,476						N/A			US$						1,476
			COMM 2020-CBM Mortgage Trust			-			〃			-			US$						1,440						N/A			US$						1,440
			Wells Fargo Commercial Mortgage Trust 2018-C44			-			〃			-			US$						1,417						N/A			US$						1,417

(Continued)

- 68 -

---

Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																														Note
												Shares/Units (In Thousands)			Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)			Fair Value (Foreign Currencies in Thousands)
TSMC Global			Ford Credit Auto Owner Trust 2022-B			-			Financial assets at fair value through other comprehensive income			-			US$						1,404						N/A			US$						1,404
			Morgan Stanley Capital I Trust 2021-L5			-			〃			-			US$						1,317						N/A			US$						1,317
			WFRBS Commercial Mortgage Trust 2013-UBS1			-			〃			-			US$						1,239						N/A			US$						1,239
			Ford Credit Auto Owner Trust 2022-C			-			〃			-			US$						1,230						N/A			US$						1,230
			Wells Fargo Commercial Mortgage Trust 2015-C29			-			〃			-			US$						1,218						N/A			US$						1,218
			GM Financial Consumer Automobile Receivables Trust 2023-1			-			〃			-			US$						1,205						N/A			US$						1,205
			JPMBB Commercial Mortgage Securities Trust 2015-C28			-			〃			-			US$						1,204						N/A			US$						1,204
			Toyota Auto Receivables 2021-D Owner Trust			-			〃			-			US$						1,149						N/A			US$						1,149
			Morgan Stanley Capital I Trust 2015 - UBS8			-			〃			-			US$						939						N/A			US$						939
			Wells Fargo Commercial Mortgage Trust 2016-LC24			-			〃			-			US$						914						N/A			US$						914
			Ford Credit Auto Owner Trust 2022-A			-			〃			-			US$						869						N/A			US$						869
			Bank 2023-Bnk45			-			〃			-			US$						856						N/A			US$						856
			Benchmark 2021-B24 Mortgage Trust			-			〃			-			US$						796						N/A			US$						796
			Honda Auto Receivables 2021-2 Owner Trust			-			〃			-			US$						781						N/A			US$						781
			Elp Commercial Mortgage Trust 2021-Elp			-			〃			-			US$						776						N/A			US$						776
			COMM Mortgage Trust Series 2015-LC19			-			〃			-			US$						762						N/A			US$						762
			Citigroup Commercial Mortgage Trust 2015-GC35			-			〃			-			US$						759						N/A			US$						759
			Nissan Auto Receivables 2023-A Owner Trust			-			〃			-			US$						644						N/A			US$						644
			Wells Fargo Commercial Mortgage Trust 2017-C40			-			〃			-			US$						634						N/A			US$						634
			JPMCC Commercial Mortgage Securities Trust 2016 - JP3			-			〃			-			US$						622						N/A			US$						622
			JPMBB Commercial Mortgage Securities Trust 2016-C1			-			〃			-			US$						563						N/A			US$						563
			Wells Fargo Commercial Mortgage Trust 2015-C28			-			〃			-			US$						519						N/A			US$						519
			Citigroup Commercial Mortgage Trust 2018-C5			-			〃			-			US$						458						N/A			US$						458
			UBS Commercial Mortgage Trust 2018-C10			-			〃			-			US$						439						N/A			US$						439
			Benchmark 2019-B14 Mortgage Trust			-			〃			-			US$						408						N/A			US$						408
			Morgan Stanley Capital I Trust 2019-H6			-			〃			-			US$						326						N/A			US$						326
			GS Mortgage Securities Trust 2014-GC24			-			〃			-			US$						313						N/A			US$						313
			Wells Fargo Commercial Mortgage Trust 2015-NXS3			-			〃			-			US$						310						N/A			US$						310
			Bank 2019-BNK23			-			〃			-			US$						297						N/A			US$						297
			GS Mortgage Securities Trust 2014-GC22			-			〃			-			US$						295						N/A			US$						295
			Commerce 2014-Ccre17 Mortgage Trust			-			〃			-			US$						269						N/A			US$						269
			Morgan Stanley Capital I Trust 2019-H7			-			〃			-			US$						235						N/A			US$						235
			COMM 2015-CCRE22 Mortgage Trust			-			〃			-			US$						225						N/A			US$						225
			JPMCC 2015 - JP1			-			〃			-			US$						223						N/A			US$						223
			CF 2019-CF1 Mortgage Trust			-			〃			-			US$						194						N/A			US$						194
			Citigroup Commercial Mortgage Trust 2014-GC23			-			〃			-			US$						182						N/A			US$						182
			JPMDB Commercial Mortgage Securities Trust 2019-COR6			-			〃			-			US$						175						N/A			US$						175
			Morgan Stanley Capital I Trust 2018-H3			-			〃			-			US$						154						N/A			US$						154
			Wells Fargo Commercial Mortgage Trust 2015-LC20			-			〃			-			US$						129						N/A			US$						129
			GM Financial Consumer Automobile Receivables Trust 2021-4			-			〃			-			US$						120						N/A			US$						120
			GS Mortgage Securities Trust 2014-GC26			-			〃			-			US$						114						N/A			US$						114
			Citigroup Commercial Mortgage Trust 2014-GC19			-			〃			-			US$						76						N/A			US$						76
			BBCMS Mortgage Trust 2020-C7			-			〃			-			US$						56						N/A			US$						56
			WFRBSCommercial Mortgage Trust 2013-C17			-			〃			-			US$						52						N/A			US$						52
			Bank 2020-BNK28			-			〃			-			US$						9						N/A			US$						9
			Wells Fargo Commercial Mortgage Trust 2015-NXS1			-			〃			-			US$						3						N/A			US$						3
			Non-publicly traded equity investments
			Primavera Capital Fund II L.P.			-			Financial assets at fair value through other comprehensive income			-			US$						93,617						4			US$						93,617

(Continued)

- 69 -

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Held Company Name			Marketable Securities Type and Name			Relationship with the Company			Financial Statement Account			June 30, 2023																																										Note
												Shares/Units (In Thousands)									Carrying Value (Foreign Currencies in Thousands)												Percentage of Ownership (%)									Fair Value (Foreign Currencies in Thousands)
VTAF II			Non-publicly traded equity investments
			Aether Systems, Inc.			-			Financial assets at fair value through other comprehensive income						1,085						US$						-									20						US$						-
			5V Technologies, Inc.			-			〃						1									-												-									-
			Publicly traded stocks
			Sentelic Corporation			-			Financial assets at fair value through other comprehensive income						971						US$						1,857									3						US$						1,857
VTAF III			Non-publicly traded equity investments
			LiquidLeds Lighting Corp.			-			Financial assets at fair value through other comprehensive income						1,952						US$						800									14						US$						800
			Neoconix, Inc.			-			〃						4,147						US$						174									-						US$						174
Growth Fund			Non-publicly traded equity investments
			Astera Labs, Inc.			-			Financial assets at fair value through other comprehensive income						637						US$						4,146									-						US$						4,146
			CNEX Labs, Inc.			-			〃						33						US$						166									-						US$						166
			Publicly traded stocks
			Marvell Technology Group Ltd.			-			Financial assets at fair value through other comprehensive income						30						US$						1,770									-						US$						1,770
Emerging Fund			Convertible bonds
			Movandi Corporation			-			Financial assets at fair value through Profit or Loss						-						US$						4,067									N/A						US$						4,067
			Non-publicly traded equity investments
			Astera Labs, Inc.			-			Financial assets at fair value through other comprehensive income						1,487						US$						9,680									-						US$						9,680
			Ayar Labs, Inc.			-			〃						345						US$						5,000									1						US$						5,000
			Empower Semiconductor, Inc.			-			〃						868						US$						5,000									3						US$						5,000
			Ethernovia Inc.			-			〃						1,021						US$						5,000									3						US$						5,000
			EdgeQ, Inc.			-			〃						1,176						US$						4,771									2						US$						4,771
			SiMa Technologies, Inc.			-			〃						564						US$						4,000									1						US$						4,000
			Kinara, Inc.			-			〃						2,015						US$						3,000									2						US$						3,000
			NeuReality Ltd.			-			〃						122						US$						3,000									3						US$						3,000
			xMEMS Labs, Inc.			-			〃						3,000						US$						3,000									3						US$						3,000
			RiVos, Inc.			-			〃						750						US$						2,000									-						US$						2,000
			Publicly traded stocks
			Credo Technology Group Holding Ltd			-			Financial assets at fair value through other comprehensive income						195						US$						3,376									-						US$						3,376

(Concluded)

- 70 -

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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 SIX MONTHS ENDED JUNE 30, 2023

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

Company Name			Marketable Securities Type and Name			Financial Statement Account			Counterparty			Nature of Relationship			Beginning Balance																								Acquisition																								Disposal																																																						Ending Balance (Note 1)
															Shares/Units (In Thousands)									Amount (Foreign Currencies in Thousands)															Shares/Units (In Thousands)									Amount (Foreign Currencies in Thousands)															Shares/Units (In Thousands)									Amount (Foreign Currencies in Thousands)															Carrying Value (Foreign Currencies in Thousands)															Gain/Loss on Disposal (Foreign Currencies in Thousands)															Shares/Units (In Thousands)									Amount (Foreign Currencies in Thousands)
TSMC			Commercial paper
			Taiwan Power Company			Financial assets at amortized cost			-			-						2,950						$	29,335,729																	500						$	4,977,293																	2,950						$	29,500,000														$	29,500,000														$						-												500						$	4,980,926
			Nan Ya Plastics Corporation			〃			-			-						450									4,476,301															650									6,469,082															700									7,000,000															7,000,000															-															400									3,978,873
			Cathay Financial Holding Co., Ltd.			〃			-			-						-									-															370									3,684,854															-									-															-															-															370									3,681,335
			Formosa Chemicals & Fibre Corporation			〃			-			-						250									2,485,666															250									2,486,627															250									2,500,000															2,500,000															-															250									2,486,545
			CPC Corporation, Taiwan			〃			-			-						750									7,458,936															50									497,451															750									7,500,000															7,500,000															-															50									497,882
			Formosa Plastics Corporation			〃			-			-						200									1,990,459															-									-															200									2,000,000															2,000,000															-															-									-
			Formosa Petrochemical Corporation			〃			-			-						300									2,985,385															-									-															300									3,000,000															3,000,000															-															-									-
			Non-publicly traded equity   investments
			TSMC Arizona			Investments accounted for using equity method			-			-						1,270									25,639,079															2,230									67,903,610															-									-															-															-															3,500									90,864,932
			JASM			〃			-			-						1,020									23,330,125															336									7,670,312															-									-															-															-															1,356									28,307,901
TSMC Partners			Fund
			Matter Venture Partners Fund I, L.P. (Note 2)			Financial assets at fair value through Profit or Loss			-			-						-						US$									-									-						US$									3,500									-						US$									-						US$									-						US$									-									-						US$									3,500
TSMC Global			Corporate bond
			Bank of America Corporation			Financial assets at fair value through other comprehensive income			-			-						-						US$									76,626									-						US$									21,812									-						US$									22,091						US$									22,171						US$									(80			)						-						US$									77,093
			Morgan Stanley			〃			-			-						-						US$									83,242									-						US$									9,913									-						US$									22,808						US$									22,873						US$									(65			)						-						US$									70,962
			JPMorgan Chase & Co.			〃			-			-						-						US$									50,629									-						US$									15,303									-						US$									10,804						US$									10,902						US$									(98			)						-						US$									55,499
			The Goldman Sachs Group, Inc.			〃			-			-						-						US$									51,439									-						US$									15,509									-						US$									12,536						US$									12,599						US$									(63			)						-						US$									54,779
			Wells Fargo & Company			〃			-			-						-						US$									59,735									-						US$									3,765									-						US$									12,773						US$									12,784						US$									(11			)						-						US$									51,012
			Citigroup Inc.			〃			-			-						-						US$									61,493									-						US$									16,816									-						US$									28,672						US$									28,761						US$									(89			)						-						US$									50,223
			Mitsubishi UFJ Financial Group, Inc.			〃			-			-						-						US$									32,949									-						US$									12,688									-						US$									6,889						US$									6,935						US$									(46			)						-						US$									39,028
			HSBC Holdings plc			〃			-			-						-						US$									32,402									-						US$									6,751									-						US$									10,424						US$									10,271						US$									153									-						US$									29,021
			Oracle Corporation			〃			-			-						-						US$									21,865									-						US$									15,752									-						US$									10,789						US$									10,679						US$									110									-						US$									26,821
			CVS Health Corporation			〃			-			-						-						US$									4,750									-						US$									23,601									-						US$									1,889						US$									1,884						US$									5									-						US$									26,305
			Barclays PLC			〃			-			-						-						US$									11,263									-						US$									13,963									-						US$									974						US$									1,000						US$									(26			)						-						US$									24,224
			Amgen Inc.			〃			-			-						-						US$									310									-						US$									18,377									-						US$									3,618						US$									3,569						US$									49									-						US$									15,084
			Pfizer Investment Enterprises Pte. Ltd.			〃			-			-						-						US$									-									-						US$									12,584									-						US$									-						US$									-						US$									-									-						US$									12,391
			Credit Suisse AG, New York Branch			〃			-			-						-						US$									12,688									-						US$									-									-						US$									12,569						US$									14,369						US$									(1,800			)						-						US$									-

(Continued)

- 71 -

---

Company Name			Marketable Securities Type and Name			Financial Statement Account			Counterparty			Nature of Relationship			Beginning Balance															Acquisition															Disposal																																							Ending Balance (Note 1)
															Shares/Units (In Thousands)			Amount (Foreign Currencies in Thousands)												Shares/Units (In Thousands)			Amount (Foreign Currencies in Thousands)												Shares/Units (In Thousands)			Amount (Foreign Currencies in Thousands)												Carrying Value (Foreign Currencies in Thousands)												Gain/Loss on Disposal (Foreign Currencies in Thousands)												Shares/Units (In Thousands)			Amount (Foreign Currencies in Thousands)
TSMC Global			Bank of America Corporation			Financial assets at amortized cost			-			-			-			US$						324,757						-			US$						541,835						-			US$						142,000						US$						141,456						US$						544						-			US$						726,880
			The Goldman Sachs Group, Inc.			〃			-			-			-			US$						440,655						-			US$						178,126						-			US$						15,000						US$						15,000						US$						-						-			US$						603,956
			Morgan Stanley			〃			-			-			-			US$						60,207						-			US$						288,441						-			US$						-						US$						-						US$						-						-			US$						349,096
			Wells Fargo & Company			〃			-			-			-			US$						274,713						-			US$						166,517						-			US$						159,000						US$						158,626						US$						374						-			US$						284,425
			JPMorgan Chase & Co.			〃			-			-			-			US$						280,213						-			US$						225,362						-			US$						268,000						US$						267,685						US$						315						-			US$						240,916
			Citigroup Inc.			〃			-			-			-			US$						174,540						-			US$						134,259						-			US$						159,000						US$						158,612						US$						388						-			US$						151,411
			Government bond/Agency bonds
			United States Department of The Treasury			Financial assets at fair value through other comprehensive income			-			-			-			US$						613,603						-			US$						219,374						-			US$						78,906						US$						81,685						US$						(2,779			)			-			US$						755,672
			Federal Home Loan Banks			Financial assets at amortized cost			-			-			-			US$						-						-			US$						225,000						-			US$						-						US$						-						US$						-						-			US$						225,000
			United States Department of The Treasury			〃			-			-			-			US$						-						-			US$						49,370						-			US$						-						US$						-						US$						-						-			US$						49,379
			Agency mortgage-backed   securities
			FEDERAL NATIONAL MORTGAGE ASSOCIATION			Financial assets at fair value through other comprehensive income			-			-			-			US$						463,645						-			US$						137,052						-			US$						31,062						US$						31,652						US$						(590			)			-			US$						566,850
			Federal Home Loan Mortgage Corporation			〃			-			-			-			US$						284,933						-			US$						86,127						-			US$						39,232						US$						39,377						US$						(145			)			-			US$						330,152
			Government National Mortgage Association			〃			-			-			-			US$						175,067						-			US$						40,692						-			US$						10,565						US$						10,923						US$						(358			)			-			US$						204,764

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

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

(Concluded)

- 72 -

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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 SIX MONTHS ENDED JUNE 30, 2023 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

February 14, 2023 (Note)

US$

1,881,000 (Note)

Based on the terms in the purchase order

65 counterparties (Note), including:

-

N/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB Ltd.

Accudevice Co., Ltd.

Air Liquide Far Eastern Ltd.

Allis Electric Co., Ltd.

Am-Power Machine International Enterprise Co., Ltd.

Atlas Copco Taiwan Ltd.

Atlas Technology Corp.

Capital Machinery Limited

Chen Yuan International Co., Ltd.

Chenfull International Co., Ltd.

Cheng Deh Fire Protection Industrial Corp.

Cica-Huntek Chemical Technology Taiwan Co., Ltd.

Confederate Technology Co., Ltd.

Desiccant Technology Corporation

Exyte Taiwan Co., Ltd.

Fortune Electric Co., Ltd.

Hantech Engineering Co., Ltd.

Hsieh Kun Co., Ltd.

Hueng Luei Process Industry Co., Ltd.

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

(Continued)

- 73 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

JG Environmental Technology Co., Ltd.

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

Jusun Instruments Co., Ltd.

Kinetics Technology Corporation

L&K Engineering Co., Ltd.

Marketech International Corp.

Mega Union Technology Incorporated

Organo Technology Co., Ltd.

Ovivo Taiwan Co., Ltd.

San Fu Chemical Co., Ltd.

Schneider Electric Taiwan Co., Ltd.

Shihlin Electric & Engineering Corporation

Siemens Limited

Solomon Technology Corporation

Swift Engineering Co., Ltd.

Taiwan Gleno Enterprise Co., Ltd.

Taiwan Puritic Corp.

Techgo Industrial Co., Ltd.

Trusval Technology Co., Ltd.

Uangyih-Tech Industrial Co., Ltd.

Unelectra International Corp.

United Integrated Services Co., Ltd.

Versum Materials Taiwan Co., Ltd.

Weltall Technology Corporation

Wholetech System Hitech Limited

Yangtech Engineering Co., Ltd.

Yankey Engineering Co., Ltd.

Ying Pao Technology Inc.

(Continued)

- 74 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

May 9, 2023 (Note)

US$

366,000 (Note)

Based on the terms in the purchase order

65 counterparties (Note), including:

-

N/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB Ltd.

Accudevice Co., Ltd.

Air Liquide Far Eastern Ltd.

Allis Electric Co., Ltd.

Am-Power Machine International Enterprise Co., Ltd.

Atlas Copco Taiwan Ltd.

Atlas Technology Corp.

Capital Machinery Limited

Chen Yuan International Co., Ltd.

Chenfull International Co., Ltd.

Cheng Deh Fire Protection Industrial Corp.

Cica-Huntek Chemical Technology Taiwan Co., Ltd.

Confederate Technology Co., Ltd.

Desiccant Technology Corporation

Exyte Taiwan Co., Ltd.

Fortune Electric Co., Ltd.

Hantech Engineering Co., Ltd.

Hsieh Kun Co., Ltd.

Hueng Luei Process Industry Co., Ltd.

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

JG Environmental Technology Co., Ltd.

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

Jusun Instruments Co., Ltd.

Kinetics Technology Corporation

L&K Engineering Co., Ltd.

Marketech International Corp.

(Continued)

- 75 -

---

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Mega Union Technology Incorporated

Organo Technology Co., Ltd.

Ovivo Taiwan Co., Ltd.

San Fu Chemical Co., Ltd.

Schneider Electric Taiwan Co., Ltd.

Shihlin Electric & Engineering Corporation

Siemens Limited

Solomon Technology Corporation

Swift Engineering Co., Ltd.

Taiwan Gleno Enterprise Co., Ltd.

Taiwan Puritic Corp.

Techgo Industrial Co., Ltd.

Trusval Technology Co., Ltd.

Uangyih-Tech Industrial Co., Ltd.

Unelectra International Corp.

United Integrated Services Co., Ltd.

Versum Materials Taiwan Co., Ltd.

Weltall Technology Corporation

Wholetech System Hitech Limited

Yangtech Engineering Co., Ltd.

Yankey Engineering Co., Ltd.

Ying Pao Technology Inc.

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)

- 76 -

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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 SIX MONTHS ENDED JUNE 30, 2023

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

Company Name			Related Party			Nature of Relationships			Transaction Details																																				Abnormal Transaction						Notes/Accounts Payable or Receivable																								Note
									Purchases/ Sales			Amount (Foreign Currencies in Thousands)															% to Total															Payment Terms			Unit Price			Payment Terms			Ending Balance (Foreign Currencies in Thousands)															% to Total
TSMC			TSMC North America			Subsidiary			Sales			$	627,996,804																	64												Net 30 days from invoice date (Note)			-			-			$	146,482,184																	80
			GUC			Associate			Sales						4,228,929															-												Net 30 days from invoice date			-			-						319,707															-
			TSMC Nanjing			Subsidiary			Purchases						30,132,914															34												Net 30 days from the end of the month of when invoice is issued			-			-						(5,254,198									)						10
			TSMC China			Subsidiary			Purchases						13,070,372															15												Net 30 days from the end of the month of when invoice is issued			-			-						(1,881,799									)						4
			WaferTech			Indirect subsidiary			Purchases						4,602,693															5												Net 30 days from the end of the month of when invoice is issued			-			-						(364,726									)						1
			SSMC			Associate			Purchases						1,702,335															2												Net 30 days from the end of the month of when invoice is issued			-			-						(290,668									)						1
			VIS			Associate			Purchases						679,050															1												Net 30 days from the end of the month of when invoice is issued			-			-						(105,089									)						-
TSMC North America			GUC			Associate of TSMC			Sales						2,752,525																		-									Net 30 days from invoice date			-			-						436,348															-
												(US$									90,123			)																											(US$									14,017			)
VisEra Tech			Xintec			Associate of TSMC			Sales						240,183																		7									Net 60 days from the end of the month of when invoice is issued			-			-						106,518															11

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

- 77 -

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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

JUNE 30, 2023

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

Company Name			Related Party			Nature of Relationships			Ending Balance (Foreign Currencies in Thousands)															Turnover Days (Note 1)									Overdue															Amounts Received in Subsequent Period												Allowance for Bad Debts
																																	Amount												Action Taken
TSMC			TSMC North America			Subsidiary			$	147,389,818																	46						$	2,142,453											-			$	56,847,100											$						-
			VisEra Tech			Subsidiary						431,655															(Note2			)						-									-						-												-
			VIS			Associate						2,122,373															(Note2			)						-									-						-												-
			Xintec			Associate						335,526															(Note2			)						-									-						-												-
			GUC			Associate						319,707															35									-									-						-												-
TSMC China			TSMC			Parent company						1,881,799															29									-									-						-												-
									(RMB									438,986			)
			TSMC Nanjing			The same parent company						48,962,749															(Note2			)						-									-						-												-
									(RMB									11,422,014			)
TSMC Nanjing			TSMC			Parent company						5,254,198															29									-									-						-												-
									(RMB									1,225,698			)
TSMC Technology			TSMC			The ultimate parent of the Company			(US$									432,628 13,897			)						(Note2			)						-									-						-												-
WaferTech			TSMC			The ultimate parent of the Company			(US$									364,726 11,716			)						24									-									-						-												-
			TSMC Development			Parent company			(US$									73,713 2,368			)						(Note2			)						-									-						-												-

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.

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TABLE 8

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2023

(Amounts in Thousands of New Taiwan Dollars)

No.			Company Name			Counterparty			Nature of Relationship (Note 1)			Intercompany Transactions
												Financial Statements Item			Amount												Terms (Note 2)			Percentage of Consolidated Net Revenue or Total Assets
0			TSMC			TSMC North America			1			Net revenue from sale of goods			$	627,996,804											-						63%
												Receivables from related parties						146,482,184									-						3%
												Other receivables from related parties						907,634									-						-
												Accrued expenses and other current liabilities						103,350,597									-						2%
												Other noncurrent liabilities						143,450,236									-						3%
						JASM			1			Other noncurrent assets						9,651,857									-						-
						TSMC JDC			1			Research and development expenses						421,274									-						-
						TSMC 3DIC			1			Research and development expenses						344,705									-						-
						TSMC Europe			1			Marketing expenses-commission						345,213									-						-
						TSMC China			1			Purchases						13,070,372									-						1%
												Payables to related parties						1,881,799									-						-
						TSMC Nanjing			1			Purchases						30,132,914									-						3%
												Proceeds from disposal of property, plant and equipment						333,948									-						-
												Payables to related parties						5,254,198									-						-
						TSMC Technology			1			Research and development expenses						1,924,003									-						-
						WaferTech			1			Purchases						4,602,693									-						-
1			TSMC China			TSMC Nanjing			3			Interest income						302,161									-						-
												Other receivables from related parties						48,962,749									-						1%

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

No. 3 represents the transactions between subsidiaries.

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

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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 SIX MONTHS ENDED JUNE 30, 2023

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

Investor Company			Investee Company			Location			Main Businesses and Products			Original Investment Amount																								Balance as of June 30, 2023																																	Net Income (Losses) of the Investee (Foreign Currencies in Thousands)												Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands)									Note
												June 30, 2023 (Foreign Currencies in Thousands)												December 31, 2022 (Foreign Currencies in Thousands)												Shares (In Thousands)									Percentage of Ownership									Carrying Value (Foreign Currencies in Thousands)
TSMC			TSMC Global			Tortola, British Virgin Islands			Investment activities			$	355,162,309											$	355,162,309														11									100						$	429,445,267														$	10,741,588											$	10,741,588								Subsidiary
			TSMC Arizona			Phoenix, Arizona, U.S.A.			Manufacturing, sales and testing of integrated circuits and other semiconductor devices						104,919,410															37,015,800									3,500									100												90,864,932												(4,415,682						)						(4,415,682			)			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												66,739,991												1,672,055												1,672,055						Subsidiary
			JASM			Kumamoto, Japan			Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices						32,237,397															24,567,085									1,356									71												28,307,901												(717,094						)						(514,577			)			Subsidiary
			VIS			Hsin-Chu, Taiwan			Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks						10,180,677															10,180,677									464,223									28												12,362,214												3,358,945												949,093						Associate
			VisEra Tech			Hsin-Chu, Taiwan			Research, design, development, manufacturing, sales, packaging and test of color filter						4,224,082															4,224,082									213,619									68												11,210,562												256,611												173,583						Subsidiary
			SSMC			Singapore			Manufacturing and sales of integrated circuits and other semiconductor devices						5,120,028															5,120,028									314									39												9,495,090												1,119,671												434,320						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												5,904,378												373,448												373,448						Subsidiary
			Xintec			Taoyuan, Taiwan			Wafer level chip size packaging and wafer level post passivation interconnection service						1,988,317															1,988,317									111,282									41												3,369,676												427,014												175,105						Associate
			Emerging Fund			Cayman Islands			Investing in technology start-up companies						1,360,768															1,269,425									-									99.9												1,709,231												21,806												21,784						Subsidiary
			GUC			Hsin-Chu, Taiwan			Researching, developing, manufacturing, testing and marketing of integrated circuits						386,568															386,568									46,688									35												1,602,458												1,772,695												617,580						Associate
			TSMC 3DIC			Yokohama, Japan			Engineering support activities						1,144,356															1,144,356									49									100												1,136,522												55,448												55,448						Subsidiary
			TSMC Europe			Amsterdam, the Netherlands			Customer service and supporting activities						15,749															15,749									-									100												562,526												17,019												17,019						Subsidiary
			TSMC JDC			Yokohama, Japan			Engineering support activities						410,680															410,680									15									100												363,952												17,264												17,264						Subsidiary
			VTAF III			Cayman Islands			Investing in technology start-up companies						1,242,679															1,239,621									-									98												268,329												(4,839						)						(4,743			)			Subsidiary
			TSMC Japan			Yokohama, Japan			Customer service and supporting activities						83,760															83,760									6									100												128,286												4,193												4,193						Subsidiary
			VTAF II			Cayman Islands			Investing in technology start-up companies						260,300															260,300									-									98												86,774												1,198												1,174						Subsidiary
			TSMC Korea			Seoul, Korea			Customer service and supporting activities						13,656															13,656									80									100												43,333												881												881						Subsidiary
			ESMC			Dresden, Germany			Manufacturing, sales and testing of integrated circuits and other semiconductor devices						3,359															-									-									100												3,392												-												-						Subsidiary
TSMC Partners			TSMC Development			Delaware, U.S.A			Investing in companies involved in semiconductor manufacturing			$ (US$						18,271,405 586,939			$ )			$ (US$						18,271,405 586,939			$ )						-									100						$ (US$									38,044,547 1,222,118			$ )			$ (US$						919,520 30,130			$ )						Note2						Subsidiary
			TSMC Technology			Delaware, U.S.A			Engineering support activities						444,599															444,599									-									100												1,132,037												122,531												Note2						Subsidiary
												(US$						14,282			)			(US$						14,282			)																					(US$									36,365			)			(US$						4,010			)
			TSMC Canada			Ontario, Canada			Engineering support activities						71,599															71,599									2,300									100												355,213												21,705												Note2						Subsidiary
												(US$						2,300			)			(US$						2,300			)																					(US$									11,411			)			(US$						711			)
VTAF III			Growth Fund			Cayman Islands			Investing in technology start-up companies						71,458															68,345									-									100												192,362												(511						)						Note2						Subsidiary
												(US$						2,295			)			(US$						2,195			)																					(US$									6,179			)			(US$						(17			))
			Mutual-Pak			New Taipei, Taiwan			Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID			$ (US$						49,601 1,593			$ )			$ (US$						49,601 1,593			$ )						4,693									28						$ (US$									15,958 513			$ )			$ (US$						(10,918 (357			) ))						Note2						Associate

(Continued)

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Investor Company

Investee Company

Location

Main Businesses and Products

Original Investment Amount

Balance as of June 30, 2023

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

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

Note

June 30, 2023 (Foreign Currencies in Thousands)

December 31, 2022 (Foreign Currencies in Thousands)

Shares (In Thousands)

Percentage of Ownership

Carrying Value (Foreign Currencies in Thousands)

TSMC Development

WaferTech

Washington, U.S.A

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

$

-

$

-

293,637

100

$ (US$

6,808,403 218,709

$ )

$ (US$

462,628 15,176

$ )

Note 2

Subsidiary

Note 1:    The share of profits/losses of investee includes the effect of unrealized gross profit on intercompany transactions.

Note 2:    The share of profits/losses of the investee company is not reflected herein as such amount is already included in the share of profits/losses of the investor company.    

(Concluded)

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TABLE 10

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INFORMATION ON INVESTMENT IN MAINLAND CHINA

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

Investee Company			Main Businesses and Products			Total Amount of Paid-in Capital (RMB in Thousands)												Method of Investment			Accumulated Outflow of Investment from Taiwan as of January 1, 2023 (US$ in Thousands)												Investment Flows																								Accumulated Outflow of Investment from Taiwan as of June 30, 2023 (US$ in Thousands)												Net Income (Losses) of the Investee Company												Percentage of Ownership									Share of Profits/Losses															Carrying Amount as of Balance as of June 30, 2023												Accumulated Inward Remittance of Earnings as of June 30, 2023
																																	Outflow (US$ in Thousands)												Inflow
TSMC China			Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices			$ (RMB						18,939,667 4,502,080			$ )			(Note 1)			$ (US$						18,939,667 596,000			$ )			$						-						$						-						$ (US$						18,939,667 596,000			$ )			$	5,116,826														100%						$									5,167,180 (Note2			$ )			$	89,402,781											$						-
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			$ )						10,224,257												100%												10,237,870 (Note2						$ )						75,288,132												-

Accumulated Investment in Mainland China as of June 30, 2023 (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			)			$			1,923,280,919         (Note3)

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

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

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

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TABLE 11

Taiwan Semiconductor Manufacturing Company Limited

INFORMATION ON MAJOR SHAREHOLDERS

JUNE 30, 2023

Shareholders (Note 1)			Shares
			Total Shares Owned									Ownership Percentage (Note 2)
ADR-Taiwan Semiconductor Manufacturing Company Ltd.						5,316,144,283									20.50%
National Development Fund, Executive Yuan						1,653,709,980									6.38%

Note1:    Major shareholders shows the list of all shareholders with ownership of 5 percent or greater.

Note2:    The calculation of ownership percentage is rounded to two decimal places.

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