台湾セミコンダクターADRの適時開示

6-K 1 tsm-fsx20251114x6k.htm 6-K Document

1934 Act Registration No. 1-14700

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________

FORM 6-K

_____________________________

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2025

(Commission File Number: 001-14700)

_____________________________

Taiwan Semiconductor Manufacturing Company Limited

(Translation of Registrant’s Name Into English)

_____________________________

No. 8, Li-Hsin Road 6

Hsinchu Science Park

Hsinchu 300-096, Taiwan

Republic of China

(Address of Principal Executive Offices)

_____________________________

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in papers as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in papers as permitted by Regulation S-T Rule 101(b)(7): o

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Taiwan Semiconductor Manufacturing Company Limited

Date: November 14, 2025

/s/ Wendell Huang

Wendell Huang

Senior Vice President and Chief Financial Officer

Exhibits


			Exhibit Number			Exhibit Description
			99.1			Consolidated Financial Statements for the Nine Months Ended September 3 0 , 2025 and 2024 and Independent Auditors’ Review Report pursuant to International Financial Reporting Standards adopted by ROC ("Taiwan-IFRSs")

EX-99.1 2 a2025q3consolidatedreport-.htm EX-99.1 Document

English Translation of Financial Statements Originally Issued in Chinese 20F, Taipei Nan Shan Plaza

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

Consolidated Financial Statements for the

Nine Months Ended September 30, 2025 and 2024 and

Independent Auditors’ Review Report

勤業眾信

勤業眾信聯合會計師事務所

110016 台北市信義區松仁路100號20樓

Deloitte & Touche

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110016, Taiwan

Tel :+886 (2) 2725-9988

Fax:+886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders

Taiwan Semiconductor Manufacturing Company Limited

Introduction

We have reviewed the accompanying consolidated balance sheets of Taiwan Semiconductor Manufacturing Company Limited and its subsidiaries (collectively, the “Company”) as of September 30, 2025 and 2024, the related consolidated statements of comprehensive income for the three months ended September 30, 2025 and 2024 and for the nine months ended September 30, 2025 and 2024, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company as of September 30, 2025 and 2024, its consolidated financial performance for the three months ended September 30, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

- 1 -

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

Deloitte & Touche

Taipei, Taiwan

Republic of China

November 11, 2025

Notice to Readers

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

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

- 2 -





Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED BALANCE SHEETS
(In Thousands of New Taiwan Dollars)



	September 30, 2025			December 31, 2024			September 30, 2024
	Amount		%	Amount		%	Amount		%

ASSETS

CURRENT ASSETS
Cash and cash equivalents (Note 6)	$	2,470,759,384	34	$	2,127,627,043	32	$	1,886,780,555	31
Financial assets at fair value through profit or loss (Note 7)	20,955		-	207,700		-	971,386		-
Financial assets at fair value through other comprehensive income (Note 8)	171,753,602		2	192,202,657		3	189,649,314		3
Financial assets at amortized cost (Note 9)	108,521,394		2	101,971,322		1	90,197,355		1
Hedging financial assets (Note 10)	1,333		-	10,959		-	1,079		-
Notes and accounts receivable, net (Note 11)	305,477,496		4	270,683,235		4	249,570,573		4
Receivables from related parties (Note 31)	2,336,343		-	1,404,473		-	403,379		-
Other receivables from related parties (Note 31)	57,595		-	251		-	74,477		-
Inventories (Note 12)	288,689,063		4	287,868,810		4	292,883,930		5
Other financial assets (Notes 28, 29 and 32)	54,019,724		1	63,138,316		1	35,301,765		1
Other current assets	34,378,423		-	43,237,354		1	28,080,050		-

Total current assets	3,436,015,312		47	3,088,352,120		46	2,773,913,863		45

NONCURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7)	14,502,121		-	15,199,842		-	14,594,649		-
Financial assets at fair value through other comprehensive income (Note 8)	8,365,833		-	7,822,884		-	7,502,973		-
Financial assets at amortized cost (Note 9)	90,093,165		1	88,596,542		1	74,266,804		1
Investments accounted for using equity method (Note 13)	36,016,415		-	37,421,105		1	30,967,916		1
Property, plant and equipment (Notes 14 and 28)	3,499,340,761		48	3,234,980,070		48	3,071,599,327		50
Right-of-use assets (Note 15)	43,268,856		1	40,128,391		1	39,698,749		1
Intangible assets (Note 16)	25,558,048		-	26,282,520		1	22,083,031		-
Deferred income tax assets (Note 4)	62,098,853		1	65,943,300		1	65,944,214		1
Refundable deposits	5,092,503		-	5,495,862		-	4,483,344		-
Other noncurrent assets (Notes 28 and 29)	133,755,209		2	81,715,364		1	60,603,306		1

Total noncurrent assets	3,918,091,764		53	3,603,585,880		54	3,391,744,313		55

TOTAL	$	7,354,107,076	100	$	6,691,938,000	100	$	6,165,658,176	100

LIABILITIES AND EQUITY

CURRENT LIABILITIES
Financial liabilities at fair value through profit or loss (Note 7)	$	1,184,622	-	$	466,539	-	$	34,277	-
Hedging financial liabilities (Notes 10 and 29)	2,868		-	-		-	1,875		-
Accounts payable	84,425,148		1	72,800,558		1	69,134,197		1
Payables to related parties (Note 31)	1,961,260		-	1,426,001		-	1,685,850		-
Salary and bonus payable	54,129,620		1	47,451,509		1	37,714,425		1
Accrued profit sharing bonus to employees and compensation to directors (Note 27)	74,537,336		1	70,871,150		1	49,399,323		1
Payables to contractors and equipment suppliers	175,430,503		2	192,635,173		3	125,132,085		2
Cash dividends payable (Note 19)	259,325,990		4	220,418,821		3	207,456,038		4
Income tax payable (Note 4)	116,731,894		2	147,438,423		2	77,422,729		1
Long-term liabilities - current portion (Notes 17, 18 and 29)	76,225,613		1	59,857,879		1	58,804,983		1
Accrued expenses and other current liabilities (Notes 15, 20 and 29)	431,951,770		6	451,158,911		7	453,613,317		7

Total current liabilities	1,275,906,624		18	1,264,524,964		19	1,080,399,099		18

NONCURRENT LIABILITIES
Bonds payable (Notes 17 and 29)	880,432,755		12	926,604,506		14	909,703,588		15
Long-term bank loans (Notes 18 and 29)	37,795,501		1	31,824,386		-	26,459,677		-
Deferred income tax liabilities (Note 4)	3,961,495		-	3,988,482		-	61,376		-
Lease liabilities (Notes 15 and 29)	30,978,996		-	28,755,342		-	28,208,721		-
Net defined benefit liability (Note 4)	5,306,777		-	7,580,657		-	7,704,373		-
Guarantee deposits	746,634		-	845,581		-	914,462		-
Others (Note 20)	83,400,492		1	104,238,217		2	90,284,589		2

Total noncurrent liabilities	1,042,622,650		14	1,103,837,171		16	1,063,336,786		17

Total liabilities	2,318,529,274		32	2,368,362,135		35	2,143,735,885		35

EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
Capital stock (Note 19)	259,325,245		3	259,327,332		4	259,327,332		4
Capital surplus (Notes 19 and 26)	73,361,113		1	73,260,765		2	72,390,172		1
Retained earnings (Note 19)
Appropriated as legal capital reserve	311,146,899		4	311,146,899		4	311,146,899		5
Appropriated as special capital reserve	181,554,848		3	-		-	-		-
Unappropriated earnings	4,260,828,797		58	3,606,105,124		54	3,346,232,342		55
	4,753,530,544		65	3,917,252,023		58	3,657,379,241		60
Others (Notes 19 and 26)	(87,909,930)		(1)	38,705,047		-	922,408		-



Equity attributable to shareholders of the parent	4,998,306,972		68	4,288,545,167		64	3,990,019,153		65

NON - CONTROLLING INTERESTS	37,270,830		-	35,030,698		1	31,903,138		-

Total equity	5,035,577,802		68	4,323,575,865		65	4,021,922,291		65

TOTAL	$	7,354,107,076	100	$	6,691,938,000	100	$	6,165,658,176	100

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

- 3 -





Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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



	For the Three Months Ended September 30						For the Nine Months Ended September 30
	2025			2024			2025			2024
	Amount		%	Amount		%	Amount		%	Amount		%

NET REVENUE (Notes 20, 31 and 37)	$	989,918,318	100	$	759,692,143	100	$	2,762,963,851	100	$	2,025,846,521	100

COST OF REVENUE (Notes 12, 27, 31 and 34)	401,375,489		41	320,346,477		42	1,133,656,708		41	913,871,108		45

GROSS PROFIT	588,542,829		59	439,345,666		58	1,629,307,143		59	1,111,975,413		55

OPERATING EXPENSES (Notes 27 and 31)
Research and development	63,742,245		6	52,783,826		7	181,569,457		7	146,950,466		7
General and administrative	20,048,234		2	22,890,591		3	63,887,355		2	58,317,959		3
Marketing	3,973,966		-	3,404,487		1	12,002,028		-	9,463,070		1

Total operating expenses	87,764,445		8	79,078,904		11	257,458,840		9	214,731,495		11

OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14, 27 and 34)	(93,566)		-	499,527		-	(659,039)		-	(903,781)		-

INCOME FROM OPERATIONS (Note 37)	500,684,818		51	360,766,289		47	1,371,189,264		50	896,340,137		44

NON-OPERATING INCOME AND EXPENSES
Share of profits of associates	1,424,738		-	1,560,733		-	4,013,993		-	3,590,959		-
Interest income (Note 21)	26,180,345		2	22,601,654		3	76,231,655		3	62,940,059		3
Other income	80,218		-	40,921		-	543,770		-	316,056		-
Foreign exchange gain, net (Note 35)	6,761,013		1	202,642		-	5,516,800		-	5,584,628		-
Finance costs (Note 22)	(2,958,568)		-	(2,635,790)		-	(9,326,937)		(1)	(7,972,185)		-
Other gains and losses, net (Note 23)	(6,803,541)		(1)	1,650,403		1	1,131,094		-	(3,759,023)		-

Total non-operating income and expenses	24,684,205		2	23,420,563		4	78,110,375		2	60,700,494		3

INCOME BEFORE INCOME TAX	525,369,023		53	384,186,852		51	1,449,299,639		52	957,040,631		47

INCOME TAX EXPENSE (Notes 4 and 24)	73,613,661		7	59,106,682		8	239,318,192		8	159,077,760		8

NET INCOME	451,755,362		46	325,080,170		43	1,209,981,447		44	797,962,871		39

OTHER COMPREHENSIVE INCOME (LOSS) (Notes 19 and 24)
Items that will not be reclassified subsequently to profit or loss:

Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income	(535,592)		-	(1,050,696)		-	1,073,236		-	4,612,885		-
Gain (loss) on hedging instruments	-		-	5,041		-	(31,030)		-	5,041		-
Share of other comprehensive loss of associates	(3,768)		-	(37,704)		-	(99,671)		-	(40,064)		-
Income tax expense related to items that will not be reclassified subsequently	-		-	-		-	-		-	(9,996)		-
	(539,360)		-	(1,083,359)		-	942,535		-	4,567,866		-
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations	94,284,256		9	(25,381,768)		(4)	(131,987,925)		(5)	23,796,799		1
Unrealized gain on investments in debt instruments at fair value through other comprehensive income	1,177,459		-	5,455,766		1	4,042,911		-	5,188,559		1
Loss on hedging instruments	(19,563)		-	(20,291)		-	(60,736)		-	(59,707)		-
Share of other comprehensive income (loss) of associates	299,144		-	(26,626)		-	(339,802)		-	188,752		-

	95,741,296		9	(19,972,919)		(3)	(128,345,552)		(5)	29,114,403		2

Other comprehensive income (loss), net of income tax	95,201,936		9	(21,056,278)		(3)	(127,403,017)		(5)	33,682,269		2

TOTAL COMPREHENSIVE INCOME	$	546,957,298	55	$	304,023,892	40	$	1,082,578,430	39	$	831,645,140	41
										(Continued)

- 4 -





Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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



	For the Three Months Ended September 30						For the Nine Months Ended September 30
	2025			2024			2025			2024
	Amount		%	Amount		%	Amount		%	Amount		%
NET INCOME ATTRIBUTABLE TO:
Shareholders of the parent	$	452,301,407	46	$	325,257,571	43	$	1,212,138,637	44	$	798,587,976	39
Non-controlling interests	(546,045)		-	(177,401)		-	(2,157,190)		-	(625,105)		-

	$	451,755,362	46	$	325,080,170	43	$	1,209,981,447	44	$	797,962,871	39

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Shareholders of the parent	$	546,571,990	55	$	302,100,323	40	$	1,084,587,960	39	$	831,764,315	41
Non-controlling interests	385,308		-	1,923,569		-	(2,009,530)		-	(119,175)		-

	$	546,957,298	55	$	304,023,892	40	$	1,082,578,430	39	$	831,645,140	41

EARNINGS PER SHARE (NT$, Note 25)
Basic earnings per share	$	17.44		$	12.55		$	46.75		$	30.80
Diluted earnings per share	$	17.44		$	12.54		$	46.75		$	30.80

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

- 5 -



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
	Capital Stock - Common Stock					Retained Earnings								Foreign Currency Translation Reserve		Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income		Gain (Loss) on Hedging Instruments		Unearned Stock-Based Employee Compensation
	Shares					Legal Capital		Special Capital		Unappropriated												Total		Treasury Stock		Total		Non-controlling Interests		Total Equity
	(In Thousands)	Amount		Capital Surplus		Reserve		Reserve		Earnings		Total

BALANCE, JANUARY 1, 2024	25,932,071	$	259,320,710	$	69,876,381	$	311,146,899	$	-	$	2,846,883,893	$	3,158,030,792	$	(25,316,769)	$	(4,099,928)	$	1,395,875	$	(293,434)	$	(28,314,256)	$	-	$	3,458,913,627	$	24,349,220	$	3,483,262,847

Appropriations of earnings


Cash dividends to shareholders	-	-		-		-		-		(298,218,286)		(298,218,286)		-		-		-		-		-		-		(298,218,286)		-		(298,218,286)
Total	-	-		-		-		-		(298,218,286)		(298,218,286)		-		-		-		-		-		-		(298,218,286)		-		(298,218,286)

Net income	-	-		-		-		-		798,587,976		798,587,976		-		-		-		-		-		-		798,587,976		(625,105)		797,962,871

Other comprehensive income (loss), net of income tax	-	-		-		-		-		-		-		23,487,853		9,734,732		(46,246)		-		33,176,339		-		33,176,339		505,930		33,682,269

Total comprehensive income (loss)	-	-		-		-		-		798,587,976		798,587,976		23,487,853		9,734,732		(46,246)		-		33,176,339		-		831,764,315		(119,175)		831,645,140



Employee restricted shares retired	(1,402)	(14,018)		14,018		-		-		19,934		19,934		-		-		-		-		-		-		19,934		-		19,934

Share-based payment arrangements	5,313	53,130		2,584,257		-		-		-		-		-		-		-		(1,921,617)		(1,921,617)		-		715,770		-		715,770

Treasury stock acquired	-	-		-		-		-		-		-		-		-		-		-		-		(3,089,177)		(3,089,177)		-		(3,089,177)

Treasury stock retired	(3,249)	(32,490)		(7,080)		-		-		(3,049,607)		(3,049,607)		-		-		-		-		-		3,089,177		-		-		-

Disposal of investments in equity instruments at fair value through other comprehensive income	-	-		-		-		-		2,008,432		2,008,432		-		(2,008,432)		-		-		(2,008,432)		-		-		-		-

Basis adjustment for loss on hedging instruments	-	-		-		-		-		-		-		-		-		(9,626)		-		(9,626)		-		(9,626)		-		(9,626)

Adjustments to share of changes in equities of associates	-	-		3,433		-		-		-		-		-		-		-		-		-		-		3,433		-		3,433

From difference between the consideration received and the carrying amount of the subsidiaries' net assets during actual disposal	-	-		5,284		-		-		-		-		-		-		-		-		-		-		5,284		(4,263)		1,021

From share of changes in equities of subsidiaries	-	-		(86,121)		-		-		-		-		-		-		-		-		-		-		(86,121)		6,913,938		6,827,817



Increase in non-controlling interests	-	-		-		-		-		-		-		-		-		-		-		-		-		-		763,418		763,418

BALANCE, SEPTEMBER 30, 2024	25,932,733	$	259,327,332	$	72,390,172	$	311,146,899	$	-	$	3,346,232,342	$	3,657,379,241	$	(1,828,916)	$	3,626,372	$	1,340,003	$	(2,215,051)	$	922,408	$	-	$	3,990,019,153	$	31,903,138	$	4,021,922,291

BALANCE, JANUARY 1, 2025	25,932,733	$	259,327,332	$	73,260,765	$	311,146,899	$	-	$	3,606,105,124	$	3,917,252,023	$	40,262,995	$	(1,160,176)	$	1,310,307	$	(1,708,079)	$	38,705,047	$	-	$	4,288,545,167	$	35,030,698	$	4,323,575,865
Appropriations of earnings

Special capital reserve	-	-		-		-		181,554,848		(181,554,848)		-		-		-		-		-		-		-		-		-		-
Cash dividends to shareholders	-	-		-		-		-		(376,023,291)		(376,023,291)		-		-		-		-		-		-		(376,023,291)		-		(376,023,291)
Total	-	-		-		-		181,554,848		(557,578,139)		(376,023,291)		-		-		-		-		-		-		(376,023,291)		-		(376,023,291)

Net income	-	-		-		-		-		1,212,138,637		1,212,138,637		-		-		-		-		-		-		1,212,138,637		(2,157,190)		1,209,981,447

Other comprehensive income (loss), net of income tax	-	-		-		-		-		(35)		(35)		(132,475,092)		4,996,842		(72,392)		-		(127,550,642)		-		(127,550,677)		147,660		(127,403,017)

Total comprehensive income (loss)	-	-		-		-		-		1,212,138,602		1,212,138,602		(132,475,092)		4,996,842		(72,392)		-		(127,550,642)		-		1,084,587,960		(2,009,530)		1,082,578,430



Employee restricted shares retired	(209)	(2,087)		2,087		-		-		4,007		4,007		-		-		-		-		-		-		4,007		-		4,007

Share-based payment arrangements	-	-		(21,859)		-		-		-		-		-		-		-		1,082,645		1,082,645		-		1,060,786		-		1,060,786





Disposal of investments in equity instruments at fair value through other comprehensive income	-	-		-		-		-		159,203		159,203		-		(159,203)		-		-		(159,203)		-		-		-		-

Basis adjustment for gain on hedging instruments	-	-		-		-		-		-		-		-		-		12,223		-		12,223		-		12,223		-		12,223

Adjustments to share of changes in equities of associates	-	-		135,229		-		-		-		-		-		-		-		-		-		-		135,229		-		135,229



From share of changes in equities of subsidiaries	-	-		(15,109)		-		-		-		-		-		-		-		-		-		-		(15,109)		8,146		(6,963)



Increase in non-controlling interests	-	-		-		-		-		-		-		-		-		-		-		-		-		-		4,241,516		4,241,516

BALANCE, SEPTEMBER 30, 2025	25,932,524	$	259,325,245	$	73,361,113	$	311,146,899	$	181,554,848	$	4,260,828,797	$	4,753,530,544	$	(92,212,097)	$	3,677,463	$	1,250,138	$	(625,434)	$	(87,909,930)	$	-	$	4,998,306,972	$	37,270,830	$	5,035,577,802

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

- 6 -





Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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


	Nine Months Ended September 30
	2025		2024

CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$	1,449,299,639	$	957,040,631
Adjustments for:
Depreciation expense	519,704,707		485,541,546
Amortization expense	6,279,555		6,876,767
Expected credit losses recognized (reversal) on investments in debt instruments	(25,482)		35,268
Finance costs	9,326,937		7,972,185
Share of profits of associates	(4,013,993)		(3,590,959)
Interest income	(76,231,655)		(62,940,059)
Share-based compensation	1,073,063		735,748
Loss on disposal or retirement of property, plant and equipment, net	1,486,709		1,965,956
Loss on disposal or retirement of intangible assets, net	2,071		-
Impairment loss on property, plant and equipment	1,671,981		1,150,485

Loss (gain) on financial instruments at fair value through profit or loss, net	(356,143)		139,280
Loss on disposal of investments in debt instruments at fair value through other comprehensive income, net	99,615		286,502

Loss from disposal of subsidiary	167,986		-
Loss (gain) on foreign exchange, net	(9,352,900)		2,239,835
Dividend income	(543,770)		(316,056)
Others	925,282		(294,299)
Changes in operating assets and liabilities:
Financial instruments at fair value through profit or loss	912,510		(349,840)
Notes and accounts receivable, net	(34,794,261)		(48,256,709)
Receivables from related parties	(931,870)		221,072
Other receivables from related parties	(57,344)		(2,606)
Inventories	(820,253)		(41,886,842)
Other financial assets	(12,624,018)		(2,927,759)
Other current assets	9,036,020		(1,139,833)
Other noncurrent assets	(3,243,804)		(2,513,775)
Accounts payable	11,624,590		13,407,440
Payables to related parties	535,262		119,550
Salary and bonus payable	6,678,111		4,513,862
Accrued profit sharing bonus to employees and compensation to directors	3,666,186		(1,317,621)
Accrued expenses and other current liabilities	(57,909,169)		61,336,839
Other noncurrent liabilities	(3,695,024)		11,927,551
Net defined benefit liability	(2,273,880)		(1,552,851)
Cash generated from operations	1,815,616,658		1,388,421,308
Income taxes paid	(266,149,820)		(182,449,523)

Net cash generated by operating activities	1,549,466,838		1,205,971,785
			(Continued)

- 7 -





Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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


	Nine Months Ended September 30
	2025		2024

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Financial instruments at fair value through profit or loss	$	(162,015)	$	(1,097,618)
Financial assets at fair value through other comprehensive income	(53,615,896)		(64,117,242)
Financial assets at amortized cost	(129,397,259)		(98,056,800)

Hedging financial instruments	(631,620)		-
Property, plant and equipment	(915,504,525)		(594,058,374)
Intangible assets	(5,594,917)		(5,827,476)
Proceeds from disposal or redemption of:
Financial assets at fair value through other comprehensive income	65,603,469		43,454,000
Financial assets at amortized cost	111,261,850		85,696,380
Property, plant and equipment	314,781		639,042
Intangible assets	-		49,293
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income	96,363		319,518
Derecognition of hedging financial instruments	570,358		28,704
Interest received	72,794,719		57,961,207
Proceeds from government grants - property, plant and equipment	71,897,986		16,043,072
Proceeds from government grants - others	-		267
Other dividends received	587,139		334,348
Dividends received from investments accounted for using equity method	3,304,492		2,965,201
Increase in prepayments for leases	(30,060)		(87,426)
Refundable deposits paid	(347,234)		(253,793)
Refundable deposits refunded	419,019		3,083,455

Net cash used in investing activities	(778,433,350)		(552,924,242)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase (decrease) in hedging financial liabilities - bank loans	430,085		(26,496,570)
Proceeds from issuance of bonds	63,400,000		34,300,000
Repayment of bonds	(52,560,000)		(5,250,000)
Proceeds from long-term bank loans	7,626,900		23,442,000
Repayment of long-term bank loans	(2,157,500)		(1,659,722)
Payments for transaction costs attributable to the issuance of bonds	(83,646)		(35,681)
Treasury stock acquired	-		(3,089,177)
Repayment of the principal portion of lease liabilities	(2,612,337)		(2,212,890)
Interest paid	(13,778,562)		(12,804,370)
Guarantee deposits received	3,000		2,573
Guarantee deposits refunded	(44,383)		(36,155)
Cash dividends	(337,116,122)		(259,320,708)
Disposal of ownership interests in subsidiaries (without losing control)	-		1,021

Increase in non-controlling interests	4,233,246		7,591,192

Net cash used in financing activities	(332,659,319)		(245,568,487)
			(Continued)

- 8 -





Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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


	Nine Months Ended September 30
	2025		2024

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	$	(95,241,828)	$	13,873,746

NET INCREASE IN CASH AND CASH EQUIVALENTS	343,132,341		421,352,802

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	2,127,627,043		1,465,427,753

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	2,470,759,384	$	1,886,780,555

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

- 9 -

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED September 30, 2025 and 2024 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1. GENERAL

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

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

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

2. THE AUTHORIZATION OF FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved and authorized for issue by the Board of Directors on November 11, 2025.

3.APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING
STANDARDS

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

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

b.The IFRS Accounting Standards issued by International Accounting Standards Board (IASB) and endorsed by the FSC with effective date starting 2026


New, Amended and Revised Standards and Interpretations						Effective Date Issued by IASB

Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” - the amendments to the application guidance of classification of financial assets						January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11						January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”						January 1, 2026

- 10 -

c.The IFRS Accounting Standards issued by IASB, but not yet endorsed and issued into effect by the FSC


New, Amended and Revised 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
IFRS 18 “Presentation and Disclosure in Financial Statements”						January 1, 2027 (Note)

Note : On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements”

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

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

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

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

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

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, 2024.

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

Statement of Compliance

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

- 11 -

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, 2024.

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	September 30, 2025	December 31, 2024	September 30, 2024	Note

TSMC	TSMC North America	Sales and marketing of integrated circuits and other semiconductor devices	San Jose, California, U.S.A.	100%	100%	100%	-
	TSMC Europe B.V. (TSMC Europe)	Customer service and supporting activities	Amsterdam, the Netherlands	100%	100%	100%	a)
	TSMC Japan Limited (TSMC Japan)	Customer service and supporting activities	Yokohama, Japan	100%	100%	100%	a)
	TSMC Design Technology Japan, Inc. (TSMC JDC)	Engineering support activities	Yokohama, Japan	100%	100%	100%	a)
	TSMC Japan 3DIC R&D Center, Inc. (TSMC 3DIC)	Engineering support activities	Yokohama, Japan	100%	100%	100%	a)
	TSMC Korea Limited (TSMC Korea)	Customer service and supporting activities	Seoul, Korea	100%	100%	100%	a)
	TSMC Partners, Ltd. (TSMC Partners)	Investing in companies involved in the semiconductor design and manufacturing, and other investment activities	Tortola, British Virgin Islands	100%	100%	100%	-
	TSMC Global Ltd. (TSMC Global)	Investment activities	Tortola, British Virgin Islands	100%	100%	100%	-
	TSMC China Company Limited (TSMC China)	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	Shanghai, China	100%	100%	100%	-
	TSMC Nanjing Company Limited (TSMC Nanjing)	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	Nanjing, China	100%	100%	100%	-
	VisEra Technologies Company Ltd. (VisEra Tech)	Research, design, development, manufacturing, sales, packaging and test of color filter	Hsinchu, Taiwan	67%	67%	67%	-
	TSMC Arizona Corporation (TSMC Arizona)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Phoenix, Arizona, U.S.A.	100%	100%	100%	-
	Japan Advanced Semiconductor Manufacturing, Inc. (JASM)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Kumamoto, Japan	73%	73%	73%	-
	European Semiconductor Manufacturing Company (ESMC) GmbH (ESMC)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Dresden, Germany	70%	70%	70%	-
	VentureTech Alliance Fund II, L.P. (VTAF II)	Investing in technology start-up companies	Cayman Islands	-	98%	98%	b), c)
	VentureTech Alliance Fund III, L.P. (VTAF III)	Investing in technology start-up companies	Cayman Islands	-	98%	98%	b), c)
	Emerging Fund, L.P. (Emerging Fund)	Investing in technology start-up companies	Cayman Islands	99.9%	99.9%	99.9%	b)
						(Continued)

- 12 -

Establishment

Percentage of Ownership

Name of Investor

Name of Investee

Main Businesses and Products

and Operating Location

September 30,
2025

December 31,
2024

September 30,
2024

Note

TSMC Partners

TSMC Development, Inc. (TSMC Development)

Investing in companies involved in semiconductor manufacturing

Delaware, U.S.A.

100%

TSMC Technology, Inc. (TSMC Technology)

Engineering support activities

Delaware, U.S.A.

100%

TSMC Design Technology Canada Inc. (TSMC Canada)

Engineering support activities

Ontario, Canada

100%

VTAF III

Growth Fund Limited (Growth Fund)

Investing in technology start-up companies

Cayman Islands

100%

b), c)

TSMC Development

TSMC Washington, LLC (TSMC Washington)

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

Washington, U.S.A.

100%

(Concluded)

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

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

Note c: VTAF II/VTAF III and the Growth Fund have completed the liquidation procedures respectively in the first quarter and the second quarter of 2025.

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.

Taxation

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

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION 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, 2024.

6. CASH AND CASH EQUIVALENTS


	September 30, 2025		December 31, 2024		September 30, 2024

Cash and deposits in banks	$	2,465,848,661	$	2,120,674,818	$	1,879,710,837
Government bonds/Agency bonds	1,905,441		-		-
Money market funds	1,829,838		2,826,701		4,455,181
Repurchase agreements	1,175,444		2,126,975		2,614,537
Commercial paper	-		1,998,549		-


	$	2,470,759,384	$	2,127,627,043	$	1,886,780,555

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.

- 13 -

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


	September 30, 2025		December 31, 2024		September 30, 2024

Financial assets

Mandatorily measured at FVTPL
Convertible preferred stocks	$	13,213,676	$	14,181,839	$	13,692,780
Mutual funds	1,166,321		886,931		775,317



Simple agreement for future equity	122,124		131,072		126,552
Forward exchange contracts	20,955		207,700		971,386


	14,523,076		15,407,542		15,566,035

Current	$	20,955	$	207,700	$	971,386
Noncurrent	14,502,121		15,199,842		14,594,649

	$	14,523,076	$	15,407,542	$	15,566,035

Financial liabilities

Held for trading
Forward exchange contracts	$	1,184,622	$	466,539	$	34,277

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

Outstanding forward exchange contracts consisted of the following:


		Contract Amount
	Maturity Date	(In Thousands)

September 30, 2025

Sell US$	October 2025 to December 2025	US$	7,355,500
Sell JPY	October 2025	JPY	19,774,990



December 31, 2024

Sell US$	January 2025 to March 2025	US$	3,331,445
Sell JPY	January 2025	JPY	45,233,963


September 30, 2024

Sell NT$	October 2024 to November 2024	NT$	5,984,214
Sell US$	October 2024 to December 2024	US$	2,608,500

- 14 -

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME


	September 30, 2025		December 31, 2024		September 30, 2024

Investments in debt instruments at FVTOCI
Corporate bonds	$	85,961,547	$	108,612,082	$	106,675,983
Agency mortgage-backed securities	47,912,969		46,611,373		43,708,974
Government bonds/Agency bonds	23,585,011		20,645,877		20,873,108


Asset-backed securities	9,345,202		11,490,511		11,539,314
	166,804,729		187,359,843		182,797,379
Investments in equity instruments at FVTOCI
Non-publicly traded equity investments	8,365,833		7,822,884		7,502,973
Publicly traded stocks	4,948,873		4,842,814		6,851,935
	13,314,706		12,665,698		14,354,908

	$	180,119,435	$	200,025,541	$	197,152,287

Current	$	171,753,602	$	192,202,657	$	189,649,314
Noncurrent	8,365,833		7,822,884		7,502,973

	$	180,119,435	$	200,025,541	$	197,152,287

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

For the nine months ended September 30, 2025 and 2024, as the Company adjusted its investment portfolio, equity investments designated at FVTOCI were divested for NT$291,852 thousand and NT$3,486,190 thousand, respectively. The related other equity-unrealized gain/loss on financial assets at FVTOCI of NT$159,203 thousand and NT$2,008,432 thousand were transferred to increase retained earnings, respectively.

As of September 30, 2025 and 2024, the cumulative loss allowance for expected credit loss of NT$43,420 thousand and NT$61,721 thousand was recognized under investments in debt instruments at FVTOCI, respectively. Refer to Note 30 for information relating to the credit risk management and expected credit loss.

9. FINANCIAL ASSETS AT AMORTIZED COST


	September 30, 2025		December 31, 2024		September 30, 2024

Corporate bonds	$	190,907,285	$	172,091,958	$	137,366,565
Government bonds/Agency bonds	4,088,441		4,379,527		4,225,749
Commercial paper	3,727,099		14,221,737		22,978,287


Less: Allowance for impairment loss	(108,266)		(125,358)		(106,442)

	$	198,614,559	$	190,567,864	$	164,464,159
					(Continued)

- 15 -


	September 30, 2025		December 31, 2024		September 30, 2024

Current	$	108,521,394	$	101,971,322	$	90,197,355
Noncurrent	90,093,165		88,596,542		74,266,804

	$	198,614,559	$	190,567,864	$	164,464,159
					(Concluded)

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

10. HEDGING FINANCIAL INSTRUMENTS


	September 30, 2025		December 31, 2024		September 30, 2024
Financial assets - current

Fair value hedges
Interest rate futures contracts	$	1,333	$	10,959	$	1,079





Financial liabilities - current

Fair value hedges
Interest rate futures contracts	$	2,868	$	-	$	1,875

Fair value hedge

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

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

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

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

September 30, 2025


Hedging Instruments	Contract Amount (US$ in Thousands)		Maturity

Interest rate futures contracts - US Treasury futures	US$	21,100	December 2025

- 16 -


Hedged Items	Asset Carrying Amount		Accumulated Amount of Fair Value Hedge Adjustments

Financial assets at FVTOCI	$	1,349,734	$	1,535

December 31, 2024


Hedging Instruments	Contract Amount (US$ in Thousands)		Maturity

Interest rate futures contracts - US Treasury futures	US$	40,400	March 2025


Hedged Items	Asset Carrying Amount		Accumulated Amount of Fair Value Hedge Adjustments

Financial assets at FVTOCI	$	3,129,235	$	(10,959)

September 30, 2024


Hedging Instruments	Contract Amount (US$ in Thousands)		Maturity

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


Hedged Items	Asset Carrying Amount		Accumulated Amount of Fair Value Hedge Adjustments

Financial assets at FVTOCI	$	3,881,468	$	796

The effect for the nine months ended September 30, 2025 and 2024 is detailed below:


	Change in Value Used for Calculating Hedge Ineffectiveness
	Nine Months Ended September 30
Hedging Instruments/Hedged Items	2025		2024

Hedging Instruments
Interest rate futures contracts - US Treasury futures	$	(43,015)	$	72,897
Hedged Items
Financial assets at FVTOCI	43,015		(72,897)

	$	-	$	-

- 17 -

Cash flow hedge

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

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

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 foreign currency deposits. No other sources of ineffectiveness have emerged from these hedging relationships during the hedging period. Refer to Note 19 (d) for gain or loss arising from changes in the fair value of hedging instruments and hedged item affects profit or loss, and the amount transferred to initial carrying amount of hedged items.

The effect for the nine months ended September 30, 2025 and 2024 is detailed below:


Hedging Instruments/Hedged Items	Change in Value Used for Calculating Hedge Ineffectiveness
	Nine Months Ended September 30
	2025		2024
Hedging Instruments
Forward exchange contracts	$	-	$	5,042
Foreign currency deposits	$	(31,030)	$	-


Hedged Items
Forecast transaction (capital expenditures)	$	31,030	$	(5,042)

Hedges of net investments in foreign operations

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

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

The effect for the nine months ended September 30, 2025 and 2024 is detailed below:

- 18 -


	Change in Value Used for Calculating Hedge Ineffectiveness
	Nine Months Ended September 30
Hedging Instruments/Hedged Items	2025		2024

Hedging Instruments
Bank loans	$	430,085	$	793,830

Hedged Items
Net investments in foreign operations	$	(430,085)	$	(793,830)

11. NOTES AND ACCOUNTS RECEIVABLE, NET


	September 30, 2025		December 31, 2024		September 30, 2024

At amortized cost
Notes and accounts receivable	$	298,433,599	$	265,223,660	$	244,095,134
Less: Loss allowance	(522,987)		(453,009)		(496,026)
	297,910,612		264,770,651		243,599,108
At FVTOCI	7,566,884		5,912,584		5,971,465

	$	305,477,496	$	270,683,235	$	249,570,573

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

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

Aging analysis of notes and accounts receivable


	September 30, 2025		December 31, 2024		September 30, 2024

Not past due	$	293,721,132	$	255,669,647	$	236,368,821
Past due
Past due within 30 days	12,278,981		15,464,122		13,695,921
Past due over 31 days	370		2,475		1,857
Less: Loss allowance	(522,987)		(453,009)		(496,026)

	$	305,477,496	$	270,683,235	$	249,570,573

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

- 19 -

Movements of the loss allowance for accounts receivable


	Nine Months Ended September 30
	2025		2024

Balance, beginning of period	$	453,009	$	531,554
Provision (Reversal)	70,017		(35,578)
Effect of exchange rate changes	(39)		50

Balance, end of period	$	522,987	$	496,026

For the nine months ended September 30, 2025 and 2024, the changes in loss allowance were mainly due to the variations in the balance of accounts receivable of different risk levels.

12. INVENTORIES


	September 30, 2025		December 31, 2024		September 30, 2024

Finished goods	$	32,716,509	$	35,177,009	$	34,782,721
Work in process	183,297,640		181,198,808		190,951,410
Raw materials	46,789,075		46,449,249		43,402,647
Supplies and spare parts	25,885,839		25,043,744		23,747,152

	$	288,689,063	$	287,868,810	$	292,883,930

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


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024
Net inventory losses (reversal of write-down of inventories)	$	707,417	$	137,620	$	3,337,782	$	(1,898,656)

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	September 30, 2025		December 31, 2024		September 30, 2024		September 30, 2025		December 31, 2024		September 30, 2024

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	$	17,386,164	$	18,300,373	$	13,105,023	28	%	28	%	28	%
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)	Manufacturing and sales of integrated circuits and other semiconductor devices	Singapore	$	11,682,245	$	11,387,185	$	10,713,507	39	%	39	%	39	%
											(Continued)

- 20 -


		Place of	Carrying Amount						% of Ownership and Voting Rights Held by the Company
Name of Associate	Principal Activities	Incorporation and Operation	September 30, 2025		December 31, 2024		September 30, 2024		September 30, 2025		December 31, 2024		September 30, 2024

Xintec Inc. (Xintec)	Wafer level chip size packaging and wafer level post passivation interconnection service	Taoyuan, Taiwan	$	4,287,621	$	4,220,609	$	4,028,681	41	%	41	%	41	%
Global Unichip Corporation (GUC)	Researching, developing, manufacturing, testing and marketing of integrated circuits	Hsinchu, Taiwan	2,660,385		3,512,938		3,120,705		35	%	35	%	35	%

			$	36,016,415	$	37,421,105	$	30,967,916
											(Concluded)

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

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


Name of Associate	September 30, 2025		December 31, 2024		September 30, 2024

GUC	$	62,561,731	$	63,495,488	$	51,356,645
VIS	$	51,684,351	$	50,620,261	$	48,047,132
Xintec	$	15,968,956	$	22,033,821	$	22,868,436

14. PROPERTY, PLANT AND EQUIPMENT


	September 30, 2025		December 31, 2024		September 30, 2024

Assets used by the Company	$	3,498,121,683	$	3,234,778,389	$	3,071,391,628
Assets subject to operating leases	1,219,078		201,681		207,699

	$	3,499,340,761	$	3,234,980,070	$	3,071,599,327

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, 2025	$	13,054,161	$	959,133,864	$	5,852,202,689	$	105,434,750	$	1,080,284,237	$	8,010,109,701
Additions	140,379		243,974,901		378,504,685		16,727,174		185,398,611		824,745,750
Disposals or retirements	-		(106,771)		(34,071,281)		(1,295,584)		-		(35,473,636)


Transfers to assets subject to operating leases	-		(1,181,470)		-		-		-		(1,181,470)

Effect of exchange rate changes	(125,157)		(19,743,628)		(26,104,559)		(942,459)		(6,584,796)		(53,500,599)

Balance at September 30, 2025	$	13,069,383	$	1,182,076,896	$	6,170,531,534	$	119,923,881	$	1,259,098,052	$	8,744,699,746

									(Continued)

- 21 -


	Land and Land Improvements		Buildings		Machinery and Equipment		Office Equipment		Equipment under Installation and Construction in Progress		Total

Accumulated depreciation and impairment

Balance at January 1, 2025	$	608,531	$	440,369,241	$	4,262,882,850	$	70,679,950	$	790,740	$	4,775,331,312
Additions	14,845		52,758,706		453,415,862		10,370,450		-		516,559,863
Disposals or retirements	-		(80,177)		(32,188,216)		(1,289,887)		-		(33,558,280)


Transfers to assets subject to operating leases	-		(127,932)		-		-		-		(127,932)
Impairment	-		1,459		1,670,522		-		-		1,671,981
Effect of exchange rate changes	(41,876)		(1,829,773)		(11,124,107)		(303,125)		-		(13,298,881)

Balance at September 30, 2025	$	581,500	$	491,091,524	$	4,674,656,911	$	79,457,388	$	790,740	$	5,246,578,063

Carrying amounts at January 1, 2025	$	12,445,630	$	518,764,623	$	1,589,319,839	$	34,754,800	$	1,079,493,497	$	3,234,778,389
Carrying amounts at September 30, 2025	$	12,487,883	$	690,985,372	$	1,495,874,623	$	40,466,493	$	1,258,307,312	$	3,498,121,683


Cost

Balance at January 1, 2024	$	7,621,997	$	817,822,975	$	5,384,985,648	$	99,825,084	$	908,289,751	$	7,218,545,455
Additions	5,484,191		48,758,424		377,421,855		8,643,558		35,057,655		475,365,683
Disposals or retirements	(278,309)		(91,915)		(26,826,751)		(7,421,476)		-		(34,618,451)

Transfers from assets subject to operating leases	-		-		39,825		-		-		39,825
Transfers to assets subject to operating leases	-		(197,752)		-		-		-		(197,752)

Effect of exchange rate changes	312,178		1,909,176		10,202,055		249,669		14,508,576		27,181,654

Balance at September 30, 2024	$	13,140,057	$	868,200,908	$	5,745,822,632	$	101,296,835	$	957,855,982	$	7,686,316,414

Accumulated depreciation and impairment

Balance at January 1, 2024	$	558,074	$	387,013,911	$	3,699,008,492	$	66,749,979	$	790,740	$	4,154,121,196
Additions	8,647		38,602,180		435,226,444		8,941,089		-		482,778,360
Disposals or retirements	-		(89,743)		(24,295,865)		(7,420,365)		-		(31,805,973)

Transfers from assets subject to operating leases	-		-		37,614		-		-		37,614
Transfers to assets subject to operating leases	-		(14,367)		-		-		-		(14,367)
Impairment	-		47,539		1,102,946		-		-		1,150,485
Effect of exchange rate changes	15,996		1,110,773		7,357,006		173,696		-		8,657,471

Balance at September 30, 2024	$	582,717	$	426,670,293	$	4,118,436,637	$	68,444,399	$	790,740	$	4,614,924,786

Carrying amounts at January 1, 2024	$	7,063,923	$	430,809,064	$	1,685,977,156	$	33,075,105	$	907,499,011	$	3,064,424,259
Carrying amounts at September 30, 2024	$	12,557,340	$	441,530,615	$	1,627,385,995	$	32,852,436	$	957,065,242	$	3,071,391,628

									(Concluded)

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

- 22 -

In the first quarter of 2025 and second quarter of 2024, the Company recognized an impairment loss due to partial plant facilities and machinery and equipment damage caused by an earthquake, which rendered them unusable. Please refer to the related earthquake losses in Note 34.

In the second quarter of 2025, the Company recognized an impairment loss for certain machinery and equipment, which was assessed to have no future use and a recoverable amount of nil. This impairment loss was recorded under other operating income and expenses.

Information about capitalized interest is set out in Note 22.

15. LEASE ARRANGEMENTS

a.Right-of-use assets


	September 30, 2025		December 31, 2024		September 30, 2024

Carrying amounts

Land	$	39,249,022	$	36,980,971	$	36,725,766

Buildings	3,977,997		3,103,902		2,929,760
Office equipment	41,837		43,518		43,223

	$	43,268,856	$	40,128,391	$	39,698,749


	Nine Months Ended September 30
	2025		2024

Additions to right-of-use assets	$	7,306,149	$	3,214,068


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Depreciation of right-of-use assets
Land	$	780,747	$	639,841	$	2,199,872	$	1,874,273
Buildings	326,573		242,627		891,618		846,997

Office equipment	5,805		5,822		17,211		17,716

	$	1,113,125	$	888,290	$	3,108,701	$	2,738,986

- 23 -

b.Lease liabilities


	September 30, 2025		December 31, 2024		September 30, 2024

Carrying amounts

Current portion (classified under accrued expenses and other current liabilities)	$	3,651,294	$	3,049,032	$	2,899,784
Noncurrent portion	30,978,996		28,755,342		28,208,721

	$	34,630,290	$	31,804,374	$	31,108,505

Ranges of discount rates for lease liabilities are as follows:


	September 30, 2025	December 31, 2024	September 30, 2024

Land	0.39%-3.30%	0.39%-2.30%	0.39%-2.30%

Buildings	0.40%-6.52%	0.40%-6.52%	0.40%-6.52%
Office equipment	0.28%-6.46%	0.28%-6.46%	0.28%-6.45%

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


	Nine Months Ended September 30
	2025		2024

Total cash outflow for leases	$	3,150,723	$	2,613,735

16. INTANGIBLE ASSETS


	Goodwill		Technology License Fees		Software and System Design Costs		Patent and Others		Total

Cost

Balance at January 1, 2025	$	6,070,864	$	28,566,518	$	53,279,044	$	13,133,519	$	101,049,945
Additions	-		840,059		4,837,781		300,521		5,978,361
Disposals or retirements	-		(82,470)		(633,847)		(74,922)		(791,239)
Effect of exchange rate changes	(303,756)		(2,119)		(67,726)		(8,572)		(382,173)

Balance at September 30, 2025	$	5,767,108	$	29,321,988	$	57,415,252	$	13,350,546	$	105,854,894

							(Continued)

- 24 -


	Goodwill		Technology License Fees		Software and System Design Costs		Patent and Others		Total

Accumulated amortization and impairment

Balance at January 1, 2025	$	-	$	23,186,748	$	40,100,685	$	11,479,992	$	74,767,425
Additions	-		1,055,555		4,771,901		452,099		6,279,555
Disposals or retirements	-		(82,470)		(631,776)		-		(714,246)
Effect of exchange rate changes	-		(2,119)		(30,994)		(2,775)		(35,888)

Balance at September 30, 2025	$	-	$	24,157,714	$	44,209,816	$	11,929,316	$	80,296,846

Carrying amounts at January 1, 2025	$	6,070,864	$	5,379,770	$	13,178,359	$	1,653,527	$	26,282,520
Carrying amounts at September 30, 2025	$	5,767,108	$	5,164,274	$	13,205,436	$	1,421,230	$	25,558,048

Cost

Balance at January 1, 2024	$	5,796,438	$	26,221,351	$	49,317,031	$	12,347,434	$	93,682,254
Additions	-		764,988		4,424,018		949,425		6,138,431
Disposals or retirements	-		(32,460)		(4,420,290)		(202,681)		(4,655,431)
Effect of exchange rate changes	120,986		585		54,399		19,900		195,870

Balance at September 30, 2024	$	5,917,424	$	26,954,464	$	49,375,158	$	13,114,078	$	95,361,124

Accumulated amortization and impairment

Balance at January 1, 2024	$	-	$	20,490,070	$	39,846,671	$	10,578,769	$	70,915,510
Additions	-		2,078,442		4,068,778		729,547		6,876,767
Disposals or retirements	-		(32,460)		(4,420,290)		(102,000)		(4,554,750)
Effect of exchange rate changes	-		488		22,532		17,546		40,566

Balance at September 30, 2024	$	-	$	22,536,540	$	39,517,691	$	11,223,862	$	73,278,093

Carrying amounts at January 1, 2024	$	5,796,438	$	5,731,281	$	9,470,360	$	1,768,665	$	22,766,744
Carrying amounts at September 30, 2024	$	5,917,424	$	4,417,924	$	9,857,467	$	1,890,216	$	22,083,031
							(Concluded)

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

- 25 -

17. BONDS PAYABLE


	September 30, 2025		December 31, 2024		September 30, 2024

Domestic unsecured bonds	$	514,812,000	$	478,536,000	$	478,026,000
Overseas unsecured bonds	442,699,500		507,904,000		490,389,000
Less: Discounts on bonds payable	(2,318,688)		(2,687,615)		(2,699,763)
Less: Current portion	(74,760,057)		(57,147,879)		(56,011,649)

	$	880,432,755	$	926,604,506	$	909,703,588

The Company issued domestic unsecured bonds for the nine months ended September 30, 2025. The major terms are as follows:

Issuance

Tranche

Issuance Period

Total Issue Amount

Coupon Rate

Repayment and
Interest Payment

NT$ unsecured bonds

114-1 (Green bond)

March 2025 to March 2030

12,000,000

1.90%

Bullet repayment; interest payable annually

March 2025 to March 2035

7,200,000

2.05%

The same as above

114-2 (Green bond)

June 2025 to June 2030

12,500,000

1.92%

The same as above

June 2025 to June 2035

1,600,000

2.05%

The same as above

114-3 (Green bond)

July 2025 to July 2030

8,300,000

1.92%

The same as above

July 2025 to July 2035

4,000,000

2.05%

The same as above

114-4

September 2025 to September 2030

13,800,000

1.66%

The same as above

(Green bond)

September 2025 to September 2035

4,000,000

1.73%

The same as above

- 26 -

The major terms of overseas unsecured bonds are as follows:


Issuance Period	Total Issue Amount (US$ in Thousands)		Coupon Rate	Repayment and Interest Payment

September 2020 to September 2025	US$	1,000,000	0.75%	Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually
September 2020 to September 2027	750,000		1.00%	The same as above
September 2020 to September 2030	1,250,000		1.375%	The same as above
April 2021 to April 2026	1,100,000		1.25%	The same as above
April 2021 to April 2028	900,000		1.75%	The same as above
April 2021 to April 2031	1,500,000		2.25%	The same as above
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

- 27 -

18. LONG-TERM BANK LOANS


	September 30, 2025		December 31, 2024		September 30, 2024

NT$ unsecured loans	$	2,253,334	$	4,410,833	$	5,046,667
JPY unsecured loans	37,008,000		30,124,800		24,219,800
Less: Discounts on government grants	(277)		(1,247)		(13,456)
Less: Current portion	(1,465,556)		(2,710,000)		(2,793,334)

	$	37,795,501	$	31,824,386	$	26,459,677

Loan content
Annual interest rate	0.78%-1.78%		0.13%-1.78%		0.13%-1.48%
Maturity date	Due by December 2030		Due by December 2030		Due by December 2030

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

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

19. EQUITY

a.Capital stock


	September 30, 2025		December 31, 2024		September 30, 2024

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)	25,932,615		25,932,733		25,932,733
Shares awaiting retirement (in thousands)	(91)		-		-
Capital stock (in thousands)	25,932,524		25,932,733		25,932,733
Issued capital	$	259,326,155	$	259,327,332	$	259,327,332
Share capital awaiting retirement	(910)		-		-
Capital stock	$	259,325,245	$	259,327,332	$	259,327,332

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

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

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

- 28 -

During the third quarter of 2025, TSMC reclaimed 91 thousand employee restricted shares which were unvested (classified under share capital awaiting retirement). On November 11, 2025, TSMC’s Board of Directors resolved to cancel the aforementioned shares.

During the first quarter of 2025 and 2024, TSMC reclaimed 118 thousand and 1,402 thousand employee restricted shares, respectively, that were unvested. On May 13, 2025 and June 5, 2024, TSMC’s Board of Directors resolved to cancel the aforementioned shares. Subsequently, TSMC completed the registration for share cancellation. Refer to Note 26 for information on RSAs.

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

As of September 30, 2025, TSMC’s total issued and outstanding ADSs were 1,062,719 thousand units, representing 5,313,593 thousand common shares.

b.Capital surplus

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


	September 30, 2025		December 31, 2024		September 30, 2024

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

Additional paid-in capital	$	26,343,550	$	24,809,704	$	24,809,704
From merger	22,800,434		22,800,434		22,800,434
From convertible bonds	8,891,257		8,891,257		8,891,257
From difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal	8,411,566		8,411,566		8,411,566
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	4,093,849		4,108,958		4,113,816
From share of changes in equities of associates	1,307,625		1,172,396		305,828
Donations - unclaimed dividend	78,976		78,976		70,093

May not be used for any purpose

Employee restricted shares	1,422,581		2,976,199		2,976,199

	$	73,361,113	$	73,260,765	$	72,390,172

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.

- 29 -

c.Retained earnings and dividend policy

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

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

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

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

The appropriations of 2025, 2024 and 2023 quarterly earnings have been approved by TSMC’s Board of Directors in its meeting, respectively. The appropriations and cash dividends per share were as follows:


	Third Quarter		Second Quarter		First Quarter
Resolution Date of TSMC’s	of 2025		of 2025		of 2025
Board of Directors in its	November 11,		August 12,		May 13,
meeting	2025		2025		2025

Special capital reserve	$	(94,270,352)	$	181,554,848	$	-
Cash dividends to shareholders	$	155,595,147	$	129,662,913	$	129,663,078
Cash dividends per share (NT$)	$	6.00	$	5.00	$	5.00


	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Resolution Date of TSMC’s	of 2024		of 2024		of 2024		of 2024
Board of Directors in its	February 12,		November 12,		August 13,		May 10,
meeting	2025		2024		2024		2024

Special capital reserve	$	-	$	-	$	-	$	(28,020,822)
Cash dividends to shareholders	$	116,697,300	$	116,697,300	$	103,721,521	$	103,734,517
Cash dividends per share (NT$)	$	4.50	$	4.50	$	4.00	$	4.00

- 30 -


	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Resolution Date of TSMC’s	of 2023		of 2023		of 2023		of 2023
Board of Directors in its	February 6,		November 14,		August 8,		May 9,
meeting	2024		2023		2023		2023

Special capital reserve	$	28,020,822	$	(17,228,363)	$	(6,365,562)	$	3,273,452
Cash dividends to shareholders	$	90,762,248	$	90,762,248	$	77,796,213	$	77,796,213
Cash dividends per share (NT$)	$	3.50	$	3.50	$	3.00	$	3.00

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

d.Others

Changes in others were as follows:


	Nine Months Ended September 30, 2025
	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	$	40,262,995	$	(1,160,176)	$	1,310,307	$	(1,708,079)	$	38,705,047
Exchange differences arising on translation of foreign operations	(132,565,375)		-		-		-		(132,565,375)
Gain (loss) on hedging instruments designated as hedges of net investments in foreign operations	430,085		-		-		-		430,085
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments	-		1,072,941		-		-		1,072,941
Debt instruments	-		3,959,541		-		-		3,959,541
Disposal of investments in equity instruments at FVTOCI	-		(159,203)		-		-		(159,203)
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal	-		99,615		-		-		99,615
Loss allowance adjustments from debt instruments	-		(16,245)		-		-		(16,245)
Gain (loss) arising on changes in the fair value of hedging instruments and hedged item affects profit or loss	-		-		(91,766)		-		(91,766)
Transferred to initial carrying amount of hedged items	-		-		12,223		-		12,223

Share-based payment expenses recognized	-		-		-		1,082,645		1,082,645
Share of other comprehensive income (loss) of associates	(339,802)		(119,010)		19,374		-		(439,438)



Balance, end of period	$	(92,212,097)	$	3,677,463	$	1,250,138	$	(625,434)	$	(87,909,930)

- 31 -


	Nine Months Ended September 30, 2024
	Foreign Currency Translation Reserve		Unrealized Gain (Loss) on Financial Assets at FVTOCI		Gain (Loss) on Hedging Instruments		Unearned Stock-Based Employee Compensation		Total

Balance, beginning of period	$	(25,316,769)	$	(4,099,928)	$	1,395,875	$	(293,434)	$	(28,314,256)
Exchange differences arising on translation of foreign operations	22,505,271		-		-		-		22,505,271
Gain (loss) on hedging instruments designated as hedges of net investments in foreign operations	793,830		-		-		-		793,830
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments	-		4,604,652		-		-		4,604,652
Debt instruments	-		4,888,979		-		-		4,888,979
Disposal of investments in equity instruments at FVTOCI	-		(2,008,432)		-		-		(2,008,432)

Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal	-		286,502		-		-		286,502
Loss allowance adjustments from debt instruments	-		13,079		-		-		13,079
Gain (loss) arising on changes in the fair value of hedging instruments and hedged item affects profit or loss	-		-		(54,666)		-		(54,666)
Transferred to initial carrying amount of hedged items	-		-		(9,626)		-		(9,626)
Issuance of employee restricted stock	-		-		-		(2,637,387)		(2,637,387)
Share-based payment expenses recognized	-		-		-		715,770		715,770
Share of other comprehensive income (loss) of associates	188,752		(48,484)		8,420		-		148,688

Income tax effect	-		(9,996)		-		-		(9,996)

Balance, end of period	$	(1,828,916)	$	3,626,372	$	1,340,003	$	(2,215,051)	$	922,408

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

e.Treasury stock

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

20. NET REVENUE

a.Disaggregation of revenue from contracts with customers


	Three Months Ended September 30				Nine Months Ended September 30
Product	2025		2024		2025		2024

Wafer	$	860,962,390	$	645,121,210	$	2,370,425,365	$	1,763,258,801
Others	128,955,928		114,570,933		392,538,486		262,587,720

	$	989,918,318	$	759,692,143	$	2,762,963,851	$	2,025,846,521

- 32 -


	Three Months Ended September 30				Nine Months Ended September 30
Geography	2025		2024		2025		2024

Taiwan	$	75,824,352	$	72,582,081	$	215,874,263	$	201,443,281
United States	745,326,314		497,682,699		2,071,977,068		1,310,631,705
China	77,406,656		92,849,486		226,957,819		254,781,394
Japan	40,579,110		40,162,106		111,762,957		112,382,966
Europe, the Middle East and Africa	32,339,528		27,310,571		86,572,534		74,295,603
Others	18,442,358		29,105,200		49,819,210		72,311,572

	$	989,918,318	$	759,692,143	$	2,762,963,851	$	2,025,846,521

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


	Three Months Ended September 30				Nine Months Ended September 30
Platform	2025		2024		2025		2024

High Performance Computing	$	558,592,346	$	389,309,409	$	1,612,970,845	$	1,015,474,913
Smartphone	296,745,654		257,495,611		780,316,588		705,071,120
Internet of Things	53,250,285		50,255,327		136,271,873		122,922,544
Automotive	50,586,157		35,671,522		136,643,620		101,556,018
Digital Consumer Electronics	12,023,942		11,404,721		38,573,991		37,261,882
Others	18,719,934		15,555,553		58,186,934		43,560,044

	$	989,918,318	$	759,692,143	$	2,762,963,851	$	2,025,846,521


	Three Months Ended September 30				Nine Months Ended September 30
Resolution	2025		2024		2025		2024

3-nanometer	$	198,608,328	$	129,922,709	$	546,040,622	$	265,482,929
5-nanometer	323,170,791		205,265,439		867,248,267		605,528,724
7-nanometer	117,257,604		110,118,632		334,505,513		311,614,860
16-nanometer	57,307,151		50,836,959		160,961,379		151,990,234
20-nanometer	1,293,465		671,100		3,109,111		3,147,487
28-nanometer	59,227,140		47,499,161		166,553,917		141,075,995
40/45-nanometer	26,220,755		29,856,699		71,751,921		84,557,230
65-nanometer	32,568,409		24,121,011		86,947,200		66,126,266
90-nanometer	5,554,045		5,217,346		15,672,205		16,322,736
0.11/0.13 micron	12,245,896		13,443,588		37,413,695		38,139,676
0.15/0.18 micron	22,707,019		23,941,303		65,878,572		67,669,341
0.25 micron and above	4,801,787		4,227,263		14,342,963		11,603,323

Wafer revenue	$	860,962,390	$	645,121,210	$	2,370,425,365	$	1,763,258,801

- 33 -

b.Contract balances


	September 30, 2025		December 31, 2024		September 30, 2024		January 1, 2024

Contract liabilities (classified under accrued expenses and other current liabilities)	$	45,916,467	$	89,435,361	$	86,939,340	$	52,736,430

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$3,693,898 thousand and NT$2,522,193 thousand for the three months ended September 30, 2025 and 2024, respectively; and NT$56,877,009 thousand and NT$51,163,255 thousand for the nine months ended September 30, 2025 and 2024, respectively.

c.Temporary receipts from customers


	September 30, 2025		December 31, 2024		September 30, 2024

Current portion (classified under accrued expenses and other current liabilities)	$	165,676,003	$	198,602,570	$	188,664,298
Noncurrent portion (classified under other noncurrent liabilities)	57,623,053		92,499,262		79,332,925

	$	223,299,056	$	291,101,832	$	267,997,223

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

21. INTEREST INCOME


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Interest income
Cash and cash equivalents	$	22,078,267	$	18,702,813	$	63,307,303	$	52,156,310
Financial assets at amortized cost	2,362,945		2,184,078		7,472,367		6,087,876
Financial assets at FVTOCI	1,739,133		1,714,763		5,451,985		4,695,873

	$	26,180,345	$	22,601,654	$	76,231,655	$	62,940,059

- 34 -

22. FINANCE COSTS


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Interest expense
Corporate bonds	$	4,802,807	$	4,885,516	$	14,585,091	$	14,394,417
Lease liabilities	116,483		92,551		335,371		277,012
Bank loans	87,925		47,208		277,415		97,255
Others	1,256		4,594		3,779		14,296
Less: Capitalized interest under property, plant and equipment	(2,049,903)		(2,394,079)		(5,874,719)		(6,810,795)

	$	2,958,568	$	2,635,790	$	9,326,937	$	7,972,185

Information about capitalized interest is as follows:


	Three Months Ended September 30		Nine Months Ended September 30
	2025	2024	2025	2024

Capitalization rate	1.32%-3.34%	1.32%-3.34%	1.32%-3.34%	1.20%-3.34%

23. OTHER GAINS AND LOSSES, NET


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Loss on disposal of financial assets, net
Investments in debt instruments at FVTOCI	$	(16,770)	$	(81,416)	$	(99,615)	$	(286,502)

Loss on disposal of subsidiaries	-		-		(167,986)		-
Gain (loss) on financial instruments at FVTPL, net
Mandatorily measured at FVTPL	(7,059,168)		1,702,731		993,558		(3,730,753)
Reversal of (provision for) expected credit loss of financial assets
Investments in debt instruments at FVTOCI	436		(3,472)		16,245		(13,079)
Financial assets at amortized cost	(174)		(13,041)		9,237		(22,189)
Other gains, net	272,135		45,601		379,655		293,500

	$	(6,803,541)	$	1,650,403	$	1,131,094	$	(3,759,023)

- 35 -

24. INCOME TAX

a.Income tax expense recognized in profit or loss

Income tax expense consisted of the following:


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Current income tax expense
Current tax expense recognized in the current period	$	70,584,542	$	59,666,969	$	249,610,543	$	167,602,133
Income tax adjustments on prior years	(66,165)		(108)		(13,944,735)		(7,142,581)
Other income tax adjustments	(41,717)		91,862		145,992		227,823
	70,476,660		59,758,723		235,811,800		160,687,375
Deferred income tax expense (benefit)
The origination and reversal of temporary differences	4,046,127		738,844		7,174,333		554,069

Operating loss carryforward	(909,126)		(1,390,885)		(3,667,941)		(2,163,684)
	3,137,001		(652,041)		3,506,392		(1,609,615)

Income tax expense recognized in profit or loss	$	73,613,661	$	59,106,682	$	239,318,192	$	159,077,760

b.Income tax examination

The tax authorities have examined income tax returns of TSMC through 2023. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.

25. EARNINGS PER SHARE


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Basic EPS	$	17.44	$	12.55	$	46.75	$	30.80
Diluted EPS	$	17.44	$	12.54	$	46.75	$	30.80

- 36 -

EPS is computed as follows:


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Basic EPS
Net income available to common shareholders of the parent	$	452,301,407	$	325,257,571	$	1,212,138,637	$	798,587,976
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)	25,928,614		25,926,018		25,927,893		25,928,074
Basic EPS (in dollars)	$	17.44	$	12.55	$	46.75	$	30.80

Diluted EPS
Net income available to common shareholders of the parent	$	452,301,407	$	325,257,571	$	1,212,138,637	$	798,587,976
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)	25,928,614		25,926,018		25,927,893		25,928,074
Effects of all dilutive potential common shares (in thousands)	1,429		2,206		1,966		1,637

Weighted average number of common shares used in the computation of diluted EPS (in thousands)	25,930,043		25,928,224		25,929,859		25,929,711
Diluted EPS (in dollars)	$	17.44	$	12.54	$	46.75	$	30.80

26. SHARE-BASED PAYMENT ARRANGEMENTS

a.Equity-settled share-based payment-RSAs

The RSAs in each year are as follows:

2024 RSAs

2023 RSAs

2022 RSAs

2021 RSAs

Resolution Date of TSMC’s shareholders in its meeting

June 4, 2024

June 6, 2023

June 8, 2022

July 26, 2021

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

August 13, 2024

February 6, 2024

February 14, 2023

February 15, 2022

Issuance of stocks (in thousands)

2,353

2,960

2,110

1,387

Available for issuance (in thousands)

1,832

Eligible employees

Executive officers

Grant date/Issuance date

September 1, 2024

March 1, 2024

March 1, 2023

March 1, 2022

- 37 -

Vesting conditions of the aforementioned arrangement are as follow:

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

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

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

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

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

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


TSMC’s TSR relative to the TSR of S&P 500 IT Index			Ratio of Shares to be Vested
Above the Index by X percentage points			50% + X * 2.5%, with the maximum of 100%
Equal to the Index			50%
Below the Index by X percentage points			50% - X * 2.5%, with the minimum of 0%

4)Restrictions imposed on the employees’ rights in the RSAs before the vesting conditions are fulfilled:

•During each vesting period, no employee granted RSAs, except for inheritance, may sell, pledge, transfer, give to another person, create any encumbrance on, or otherwise dispose of, any shares under the unvested RSAs.

•Before the vesting conditions are fulfilled, the attendance, proposal rights, speech rights, voting rights and etc. shall be exercised by the engaged trustee/custodian on the employee’s behalf. Any other shareholder rights including but not limited to the entitlement to any distribution regarding dividends, bonuses and capital reserve, and the subscription right of the new shares issued for any capital increase, are the same as those of holders of common shares of TSMC.

- 38 -

5)Details of granted RSAs in each year are as follows:


	2024 RSAs		2023 RSAs		2022 RSAs		2021 RSAs
	Number of Shares (In Thousands)		Number of Shares (In Thousands)		Number of Shares (In Thousands)		Number of Shares (In Thousands)

Balance, beginning of period	2,353		2,960		1,055		347

Vested shares	(1,102)		(1,406)		(501)		(330)
Canceled shares	-		(74)		(27)		(17)
Shares awaiting retirement	(91)		-		-		-

Balance, end of period	1,160		1,480		527		-

Weighted-average fair value of RSAs (in dollars)	$	662.42	$	364.43	$	277.71	$	325.81

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


	2024 RSAs			2023 RSAs			2022 RSAs			2021 RSAs
	September 1, 2024			March 1, 2024			March 1, 2023			March 1, 2022
Stock price at measurement date (in dollars)	$	944		$	689		$	511		$	604
Expected price volatility	25.51%-29.87%			24.77%-26.12%			29.34%-32.11%			25.34%-28.28%
Expected life	1-3 years			1-3 years			1-3 years			1-3 years
Risk-free interest rate	1.40		%	1.16		%	1.06		%	0.57		%

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

b.Cash-settled share-based payment arrangements

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

2023 Plan

2022 Plan

2021 Plan

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

February 6,
2024

February 14,
2023

February 15,
2022

Issuance of units (in thousands) (Note)

550

400

236

Grant date

March 1, 2024

March 1, 2023

March 1, 2022

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

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

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

- 39 -


	Nine Months Ended September 30
	2025						2024
	2023 Plan			2022 Plan			2023 Plan			2022 Plan			2021 Plan

Stock price at measurement date (in dollars)	$	1,300		$	1,300		$	1,000		$	1,000		$	1,000
Expected price volatility	25.07%-32.21%			25.07%-32.21%			25.77%-30.55%			25.77%-30.55%			25.77%-30.55%
Residual life	1-2 years			1 year			1-3 years			1-2 years			1 year
Risk-free interest rate	1.26		%	1.31		%	1.39		%	1.37		%	1.36		%

Refer to Note 27 for the compensation costs of the cash-settled share-based payment recognized by TSMC. As of September 30, 2025, December 31, 2024 and September 30, 2024, the liabilities under cash-settled share-based payment arrangement amounted to NT$189,904 thousand, NT$455,728 thousand and NT$312,357 thousand, respectively.

27. ADDITIONAL INFORMATION OF EXPENSES BY NATURE


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

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

Recognized in cost of revenue	$	150,797,509	$	156,176,635	$	488,251,812	$	458,796,761
Recognized in operating expenses	9,874,777		9,730,876		31,416,752		26,720,585
Recognized in other operating income and expenses	20,227		7,624		36,143		24,200

	$	160,692,513	$	165,915,135	$	519,704,707	$	485,541,546

b.Amortization of intangible assets

Recognized in cost of revenue	$	1,316,056	$	1,584,940	$	4,048,032	$	4,752,015
Recognized in operating expenses	778,702		728,482		2,231,523		2,124,752

	$	2,094,758	$	2,313,422	$	6,279,555	$	6,876,767

c.Employee benefits expenses

Post-employment benefits
Defined contribution plans	$	1,691,989	$	1,507,484	$	4,967,879	$	4,387,257
Defined benefit plans	64,218		68,908		190,504		206,734
	1,756,207		1,576,392		5,158,383		4,593,991

Share-based payments
Equity-settled	273,416		322,961		1,073,063		735,748
Cash-settled	73,744		117,470		161,333		256,879
	347,160		440,431		1,234,396		992,627
							(Continued)

- 40 -


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Other employee benefits	$	100,787,874	$	78,378,403	$	280,255,018	$	207,500,237

	$	102,891,241	$	80,395,226	$	286,647,797	$	213,086,855

Employee benefits expense summarized by function
Recognized in cost of revenue	$	62,742,208	$	43,538,300	$	168,646,144	$	115,999,386
Recognized in operating expenses	40,149,033		36,856,926		118,001,653		97,087,469

	$	102,891,241	$	80,395,226	$	286,647,797	$	213,086,855
							(Concluded)

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 (among which not less than 30% as profit sharing bonuses to entry-level employees).

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


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Profit sharing bonus to employees	$	27,138,090	$	19,517,346	$	72,728,320	$	47,815,500

TSMC’s accrued profit sharing bonus to employees and compensation to directors for 2024 and 2023 are illustrated below:


	Years Ended December 31
	2024		2023



Profit sharing bonus to employees	$	70,296,283	$	50,090,533
Compensation to directors	$	358,989	$	551,955

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

- 41 -

28. GOVERNMENT GRANTS

Subsidiaries such as TSMC Arizona, ESMC, JASM and TSMC Nanjing received subsidies from the governments of the United States, Germany, Japan and China, respectively, for local plant setup and operation, which were mainly used to subsidize the purchase costs of property, plant and equipment, as well as partial costs and expenses incurred from plant construction and production. For the nine months ended September 30, 2025 and 2024, the Company received a total of NT$71,897,986 thousand and NT$16,043,339 thousand as government grants, respectively.

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

29. CASH FLOW INFORMATION

a.Non-cash transactions


	Nine Months Ended September 30
	2025		2024













Additions of property, plant and equipment	$	824,745,750	$	475,365,683
Changes in other receivables	72,891,160		49,114,375
Exchange of assets	(47,143)		(109,273)
Changes in payables to contractors and equipment suppliers	11,357,968		49,519,008
Changes in accrued expenses and other current liabilities	12,462,539		26,974,334
Transferred to initial carrying amount of hedged items	(31,030)		5,042
Capitalized interests	(5,874,719)		(6,810,795)

Payments for acquisition of property, plant and equipment	$	915,504,525	$	594,058,374

b.Reconciliation of liabilities arising from financing activities


					Non-cash Changes
	Balance as of January 1, 2025		Financing Cash Flow		Foreign Exchange Movement		Other Changes (Note)		Balance as of September 30, 2025

Hedging financial liabilities- bank loans	$	-	$	430,085	$	(430,085)	$	-	$	-

Bonds payable	983,752,385		10,756,354		(39,606,872)		290,945		955,192,812
Long-term bank loans	34,534,386		5,469,400		(743,700)		971		39,261,057


Total	$	1,018,286,771	$	16,655,839	$	(40,780,657)	$	291,916	$	994,453,869


					Non-cash Changes
	Balance as of January 1, 2024		Financing Cash Flow		Foreign Exchange Movement		Other Changes (Note)		Balance as of September 30, 2024

Hedging financial liabilities- bank loans	$	27,290,400	$	(26,496,570)	$	(793,830)	$	-	$	-

Bonds payable	920,897,553		29,014,319		15,513,985		289,380		965,715,237
Long-term bank loans	6,678,521		21,782,278		777,800		14,412		29,253,011


Total	$	954,866,474	$	24,300,027	$	15,497,955	$	303,792	$	994,968,248

Note: Other changes include amortization of bonds payable and amortization of long-term bank loan interest subsidy.

- 42 -

30. FINANCIAL INSTRUMENTS

a.Categories of financial instruments


	September 30, 2025		December 31, 2024		September 30, 2024

Financial assets
FVTPL (Note 1)	$	14,523,076	$	15,407,542	$	15,566,035
FVTOCI (Note 2)	187,686,319		205,938,125		203,123,752
Hedging financial assets	1,333		10,959		1,079
Amortized cost (Note 3)	3,135,904,756		2,721,319,255		2,383,140,378

	$	3,338,115,484	$	2,942,675,881	$	2,601,831,244

Financial liabilities
FVTPL (Note 4)	$	1,184,622	$	466,539	$	34,277
Hedging financial liabilities	2,868		-		1,875
Amortized cost (Note 5)	1,960,309,130		1,963,297,264		1,848,994,088

	$	1,961,496,620	$	1,963,763,803	$	1,849,030,240

Note 1: Financial assets mandatorily measured at FVTPL.

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

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

Note 4: Held for trading.

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

b.Financial risk management objectives

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

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

c.Market risk

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

- 43 -

Foreign currency risk

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

Based on a sensitivity analysis performed on the Company’s total monetary assets and liabilities for the nine months ended September 30, 2025 and 2024, a hypothetical adverse foreign currency exchange rate change of 10% would have decreased its net income by NT$3,309,236 thousand and NT$4,748,405 thousand, respectively.

Interest rate risk

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

The majority of the Company’s fixed income investments are fixed-rate securities, which are classified as financial assets at FVTOCI or at amortized cost. For those fixed income investments classified as financial assets at FVTOCI, changes in their fair value are recognized through other comprehensive income; for those classified as financial assets at amortized cost, changes in their fair value are not reflected in the carrying amount. Both classifications recognized in profit or loss if the assets are sold.

Based on a sensitivity analysis performed on the Company’s fixed income investments at the end of the reporting period, interest rates increase of 100 basis points (1.00%) across all maturities would have decreased the Company’s other comprehensive income by NT$4,001,866 thousand and NT$4,473,470 thousand for the nine months ended September 30, 2025 and 2024, respectively.

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

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.

Other price risk

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

Assuming a hypothetical decrease of 10% in prices of the investments mentioned above at the end of the reporting period, the net income would have decreased by NT$1,160,170 thousand and NT$1,167,572 thousand for the nine months ended September 30, 2025 and 2024, respectively, and the other comprehensive income would have decreased by NT$1,065,176 thousand and NT$1,148,393 thousand for the nine months ended September 30, 2025 and 2024, respectively.

- 44 -

d.Credit risk management

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

Business related credit risk

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

As of September 30, 2025, December 31, 2024 and September 30, 2024, the Company’s ten largest customers accounted for 85%, 93% and 88% 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.

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

0-0.09%

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

- 45 -

For the nine months ended September 30, 2025 and 2024, the expected credit loss decreased NT$36,764 thousand and increased NT$38,190 thousand, respectively. The changes were mainly due to adjusted investment portfolio and fluctuations in exchange rates.

e.Liquidity risk management

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

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


	Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years		Total

September 30, 2025

Non-derivative financial liabilities

Accounts payable (including related parties)	$	86,386,408	$	-	$	-	$	-	$	86,386,408
Payables to contractors and equipment suppliers	175,430,503		-		-		-		175,430,503
Accrued expenses and other current liabilities	379,082,313		-		-		-		379,082,313
Bonds payable	93,769,199		353,734,428		202,020,240		498,712,901		1,148,236,768
Long-term bank loans	1,821,124		5,922,129		22,545,917		10,303,971		40,593,141
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)	4,175,286		6,280,461		5,522,295		22,290,768		38,268,810
Others	-		50,557,177		5,798,883		8,525,375		64,881,435
	740,664,833		416,494,195		235,887,335		539,833,015		1,932,879,378

Derivative financial instruments

Forward exchange contracts
Outflows	207,568,981		-		-		-		207,568,981
Inflows	(206,196,102)		-		-		-		(206,196,102)
	1,372,879		-		-		-		1,372,879

	$	742,037,712	$	416,494,195	$	235,887,335	$	539,833,015	$	1,934,252,257


	Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years		Total

December 31, 2024

Non-derivative financial liabilities


Accounts payable (including related parties)	$	74,226,559	$	-	$	-	$	-	$	74,226,559
Payables to contractors and equipment suppliers	192,635,173		-		-		-		192,635,173
Accrued expenses and other current liabilities	358,165,686		-		-		-		358,165,686
Bonds payable	76,460,812		335,240,849		197,389,127		587,602,550		1,196,693,338
Long-term bank loans	2,935,154		2,275,524		27,044,881		3,151,180		35,406,739
									(Continued)

- 46 -


	Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years		Total

Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)	$	3,483,523	$	5,794,816	$	4,826,752	$	20,782,694	$	34,887,785
Others	-		86,979,515		11,737,085		-		98,716,600
	707,906,907		430,290,704		240,997,845		611,536,424		1,990,731,880

Derivative financial instruments

Forward exchange contracts
Outflows	109,525,448		-		-		-		109,525,448
Inflows	(109,251,526)		-		-		-		(109,251,526)
	273,922		-		-		-		273,922

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

									(Concluded)


	Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years		Total

September 30, 2024

Non-derivative financial liabilities


Accounts payable (including related parties)	$	70,820,047	$	-	$	-	$	-	$	70,820,047
Payables to contractors and equipment suppliers	125,132,085		-		-		-		125,132,085
Accrued expenses and other current liabilities	363,772,111		-		-		-		363,772,111
Bonds payable	74,901,590		318,464,019		202,710,564		580,737,650		1,176,813,823
Long-term bank loans	2,968,389		2,658,030		20,989,844		3,351,665		29,967,928
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)	3,292,322		5,704,657		4,689,825		20,497,138		34,183,942
Others	-		73,705,993		11,474,863		748,159		85,929,015
	640,886,544		400,532,699		239,865,096		605,334,612		1,886,618,951

Derivative financial instruments

Forward exchange contracts
Outflows	88,511,937		-		-		-		88,511,937
Inflows	(89,233,704)		-		-		-		(89,233,704)
	(721,767)		-		-		-		(721,767)

	$	640,164,777	$	400,532,699	$	239,865,096	$	605,334,612	$	1,885,897,184

- 47 -

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


	5-10 Years		10-15 Years		15-20 Years		More Than 20 Years		Total

September 30, 2025

Lease liabilities	$	10,818,977	$	7,322,038	$	3,876,604	$	273,149	$	22,290,768

December 31, 2024

Lease liabilities	$	10,296,927	$	6,821,624	$	3,547,316	$	116,827	$	20,782,694

September 30, 2024

Lease liabilities	$	10,174,011	$	6,731,154	$	3,523,977	$	67,996	$	20,497,138

f.Fair value of financial instruments

1)Fair value measurements recognized in the consolidated balance sheets

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

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

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

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

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

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

Fair value hierarchy

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


	September 30, 2025
	Level 1		Level 2		Level 3		Total

Financial assets at FVTPL

Mandatorily measured at FVTPL
Convertible preferred stocks	$	-	$	-	$	13,213,676	$	13,213,676
Mutual funds	-		-		1,166,321		1,166,321

Simple agreement for future equity	-		-		122,124		122,124



Forward exchange contracts	-		20,955		-		20,955
	$	-	$	20,955	$	14,502,121	$	14,523,076
							(Continued)

- 48 -


	September 30, 2025
	Level 1		Level 2		Level 3		Total

Financial assets at FVTOCI

Investments in debt instruments
Corporate bonds	$	-	$	85,961,547	$	-	$	85,961,547
Agency mortgage-backed securities	-		47,912,969		-		47,912,969
Government bonds/Agency bonds	23,585,011		-		-		23,585,011
Asset-backed securities	-		9,345,202		-		9,345,202
Investments in equity instruments
Non-publicly traded equity investments	-		-		8,365,833		8,365,833
Publicly traded stocks	4,948,873		-		-		4,948,873
Notes and accounts receivable, net	-		7,566,884		-		7,566,884

	$	28,533,884	$	150,786,602	$	8,365,833	$	187,686,319

Hedging financial assets

Fair value hedges
Interest rate futures contracts	$	1,333	$	-	$	-	$	1,333

Financial liabilities at FVTPL

Held for trading
Forward exchange contracts	$	-	$	1,184,622	$	-	$	1,184,622

Hedging financial liabilities

Fair value hedges
Interest rate futures contracts	$	2,868	$	-	$	-	$	2,868
							(Concluded)


	December 31, 2024
	Level 1		Level 2		Level 3		Total

Financial assets at FVTPL

Mandatorily measured at FVTPL
Convertible preferred stocks	$	-	$	-	$	14,181,839	$	14,181,839
Mutual funds	-		-		886,931		886,931
Forward exchange contracts	-		207,700		-		207,700




Simple agreement for future equity	-		-		131,072		131,072
	$	-	$	207,700	$	15,199,842	$	15,407,542
							(Continued)

- 49 -


	December 31, 2024
	Level 1		Level 2		Level 3		Total

Financial assets at FVTOCI

Investments in debt instruments
Corporate bonds	$	-	$	108,612,082	$	-	$	108,612,082
Agency mortgage-backed securities	-		46,611,373		-		46,611,373
Government bonds/Agency bonds	20,645,877		-		-		20,645,877
Asset-backed securities	-		11,490,511		-		11,490,511
Investments in equity instruments
Non-publicly traded equity investments	-		-		7,822,884		7,822,884
Publicly traded stocks	4,842,814		-		-		4,842,814
Notes and accounts receivable, net	-		5,912,584		-		5,912,584

	$	25,488,691	$	172,626,550	$	7,822,884	$	205,938,125

Hedging financial assets

Fair value hedges
Interest rate futures contracts	$	10,959	$	-	$	-	$	10,959

Financial liabilities at FVTPL

Held for trading
Forward exchange contracts	$	-	$	466,539	$	-	$	466,539
							(Concluded)


	September 30, 2024
	Level 1		Level 2		Level 3		Total

Financial assets at FVTPL

Mandatorily measured at FVTPL
Convertible preferred stocks	$	-	$	-	$	13,692,780	$	13,692,780
Forward exchange contracts	-		971,386		-		971,386

Mutual funds	-		-		775,317		775,317



Simple agreement for future equity	-		-		126,552		126,552
	$	-	$	971,386	$	14,594,649	$	15,566,035

Financial assets at FVTOCI

Investments in debt instruments
Corporate bonds	$	-	$	106,675,983	$	-	$	106,675,983
Agency mortgage-backed securities	-		43,708,974		-		43,708,974
Government bonds/Agency bonds	20,714,828		158,280		-		20,873,108
Asset-backed securities	-		11,539,314		-		11,539,314
Investments in equity instruments
Non-publicly traded equity investments	-		-		7,502,973		7,502,973
Publicly traded stocks	6,851,935		-		-		6,851,935
Notes and accounts receivable, net	-		5,971,465		-		5,971,465

	$	27,566,763	$	168,054,016	$	7,502,973	$	203,123,752
							(Continued)

- 50 -


	September 30, 2024
	Level 1		Level 2		Level 3		Total

Hedging financial assets

Fair value hedges
Interest rate futures contracts	$	1,079	$	-	$	-	$	1,079

Financial liabilities at FVTPL

Held for trading
Forward exchange contracts	$	-	$	34,277	$	-	$	34,277

Hedging financial liabilities

Fair value hedges
Interest rate futures contracts	$	1,875	$	-	$	-	$	1,875
							(Concluded)

Reconciliation of Level 3 fair value measurements of financial assets

The financial assets measured at Level 3 fair value were financial assets at FVTPL and equity investments classified as financial assets at FVTOCI. Reconciliations for the nine months ended September 30, 2025 and 2024 are as follows:


	Nine Months Ended September 30
	2025		2024

Balance, beginning of period	$	23,022,726	$	20,849,566
Additions	749,595		1,828,697
Recognized in profit or loss	356,143		(139,280)
Recognized in other comprehensive income or loss	454,685		(518,075)
Disposals and proceeds from return of capital of investments	(96,363)		(319,518)
Transfers out of level 3 (Note)	(89,730)		(164,860)
Effect of exchange rate changes	(1,529,102)		561,092

Balance, end of period	$	22,867,954	$	22,097,622

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.

- 51 -

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

Valuation techniques and assumptions used in Level 3 fair value measurement

The fair values of convertible preferred stocks, convertible bonds, simple agreement for future equity, mutual funds and non-publicly traded equity investments are mainly determined by using the asset approach, income approach and market approach.

The asset approach takes into account the net asset value measured at the fair value by independent parties. On September 30, 2025, December 31, 2024 and September 30, 2024, the Company uses unobservable inputs derived from discount for lack of marketability of 10%. When other inputs remain equal, the fair value will decrease by NT$57,703 thousand, NT$56,163 thousand and NT$53,470 thousand, respectively, if discounts for lack of marketability increase by 1%.

The income approach utilizes discounted cash flows to determine the present value of the expected future economic benefits that will be derived from the investment. On September 30, 2025, December 31, 2024 and September 30, 2024, the Company mainly uses unobservable inputs, which include expected returns, discount rate of 8.9%, 8.6% and 7.9%, respectively, and discount for lack of marketability of 20%. With other inputs remain equal, if discount rate increases by 1%, the fair value will decrease by NT$525,016 thousand, NT$1,606,927 thousand and NT$590,127 thousand, respectively; if discount for lack of marketability increases by 1%, the fair value will decrease by NT$145,700 thousand, NT$140,819 thousand and NT$142,378 thousand, respectively.

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

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

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

Fair value hierarchy

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


	September 30, 2025
	Carrying		Fair Value
	Amount		Level 1		Level 2		Total

Financial assets

Financial assets at amortized costs
Corporate bonds	$	190,802,463	$	-	$	191,819,327	$	191,819,327
Government bonds/Agency bonds	4,088,441		4,146,748		-		4,146,748
Commercial paper	3,723,655		-		3,727,343		3,727,343

	$	198,614,559	$	4,146,748	$	195,546,670	$	199,693,418
							(Continued)

- 52 -


	September 30, 2025
	Carrying		Fair Value
	Amount		Level 1		Level 2		Total

Financial liabilities

Financial liabilities at amortized costs
Bonds payable	$	955,192,812	$	-	$	901,900,677	$	901,900,677
							(Concluded)


	December 31, 2024
	Carrying		Fair Value
	Amount		Level 1		Level 2		Total

Financial assets

Financial assets at amortized costs
Corporate bonds	$	171,980,179	$	-	$	172,518,474	$	172,518,474
Commercial paper	14,208,158		-		14,222,713		14,222,713
Government bonds/Agency bonds	4,379,527		4,353,434		-		4,353,434

	$	190,567,864	$	4,353,434	$	186,741,187	$	191,094,621

Financial liabilities

Financial liabilities at amortized costs
Bonds payable	$	983,752,385	$	-	$	900,344,663	$	900,344,663


	September 30, 2024
	Carrying		Fair Value
	Amount		Level 1		Level 2		Total

Financial assets

Financial assets at amortized costs
Corporate bonds	$	137,277,630	$	-	$	138,689,936	$	138,689,936
Commercial paper	22,960,780		-		22,979,686		22,979,686
Government bonds/Agency bonds	4,225,749		4,326,268		-		4,326,268

	$	164,464,159	$	4,326,268	$	161,669,622	$	165,995,890

Financial liabilities

Financial liabilities at amortized costs
Bonds payable	$	965,715,237	$	-	$	900,337,602	$	900,337,602

- 53 -

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.

31. RELATED PARTY TRANSACTIONS

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

a.Related party name and categories


Related Party Name						Related Party Categories

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

b.Net revenue


		Three Months Ended September 30				Nine Months Ended September 30
		2025		2024		2025		2024

Item	Related Party Categories

Sales revenue	Associates	$	9,019,573	$	3,729,245	$	23,247,041	$	11,394,850

c.Purchases


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Related Party Categories

Associates	$	1,423,867	$	1,282,865	$	3,713,187	$	3,545,858

- 54 -

d.Receivables from related parties


		September 30, 2025		December 31, 2024		September 30, 2024

Item	Related Party Name

Receivables from related parties	GUC	$	1,568,419	$	610,027	$	259,441
	VIS	620,050		626,638		-
	Xintec	79,084		104,766		143,938
	Others	68,790		63,042		-


		$	2,336,343	$	1,404,473	$	403,379


Other receivables from related parties	VIS	$	55,780	$	-	$	16,913
	Others	1,815		251		57,564






		$	57,595	$	251	$	74,477

e.Payables to related parties


		September 30, 2025		December 31, 2024		September 30, 2024

Item	Related Party Name

Payables to related parties	Xintec	$	1,350,754	$	987,992	$	1,165,016
	SSMC	463,532		308,424		393,729

	Others	146,974		129,585		127,105



		$	1,961,260	$	1,426,001	$	1,685,850

f.Accrued expenses and other current liabilities


		September 30, 2025		December 31, 2024		September 30, 2024
Item	Related Party Categories


Temporary receipts	Associates	$	157,811	$	4,271,492	$	592,734

g.Others


		Three Months Ended September 30				Nine Months Ended September 30
		2025		2024		2025		2024

Item	Related Party Categories

Manufacturing expenses	Associates	$	1,586,743	$	1,683,167	$	3,865,037	$	3,780,950

- 55 -

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

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

h.Compensation of key management personnel

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


	Three Months Ended September 30				Nine Months Ended September 30
	2025		2024		2025		2024

Short-term employee benefits	$	1,273,468	$	1,086,604	$	3,851,460	$	3,028,668
Post-employment benefits	664		808		2,624		3,054
Share-based payments	1,070,108		322,017		2,920,839		851,404

	$	2,344,240	$	1,409,429	$	6,774,923	$	3,883,126

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

32. PLEDGED ASSETS

The Company provided certificate of deposits recorded in other financial assets as collateral mainly for building lease agreements. As of September 30, 2025, December 31, 2024 and September 30, 2024, the aforementioned other financial assets amounted to NT$125,817 thousand, NT$132,077 thousand and NT$127,743 thousand, respectively.

33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

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

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

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

- 56 -

c.In February 2025, Longitude Licensing Ltd. and Marlin Semiconductor Limited (collectively, “Marlin”) filed complaints with the U.S. International Trade Commission (“ITC”) and the U.S. District Court for the Eastern District of Texas alleging that TSMC and its customers infringe five U.S. patents. The ITC instituted an investigation on March 21, 2025 and the lawsuit in the Eastern District Court for Texas was statutorily stayed on April 23, 2025 pending the ITC investigation. In October 2025, Marlin dropped one of the asserted patents in the ITC. 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 period quantity and price are specified in the agreements.

e.TSMC entered into long-term purchase agreement of equipment and maintenance service. The relative fulfillment period, 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 September 30, 2025, December 31, 2024 and September 30, 2024 were NT$456,438 thousand, NT$489,882 thousand and NT$472,988 thousand, respectively.

h.The Company entrusted financial institutions to provide performance guarantees mainly for import and export of goods, lease agreement and apply for subsidy. As of September 30, 2025, December 31, 2024 and September 30, 2024, the aforementioned guarantee amounted to NT$20,432,892 thousand, NT$$10,315,609 thousand, and NT$10,144,487 thousand, respectively.

34. SIGNIFICANT LOSS FROM DISASTER

In January 2025, several earthquakes struck Taiwan. The resulting damage was mostly to inventories, machinery and equipment. In the first quarter of 2025, the Company recognized related earthquake losses to be approximately NT$5.3 billion, net of insurance claim. Such losses were primarily included in the cost of revenue and other operating income and expenses in net amounts.

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

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:

- 57 -


	Foreign Currencies (In Thousands)		Exchange Rate (Note 1)		Carrying Amount (In Thousands)

September 30, 2025

Financial assets

Monetary items
USD	$	19,560,324	30.531		$	597,196,242


EUR	1,842,846		35.834		66,036,538


JPY	126,293,924		0.2056		25,966,031



Financial liabilities

Monetary items
USD	13,909,929		30.531		424,684,030


EUR	1,485,728		35.834		53,239,594


JPY	120,586,625		0.2056		24,792,610








December 31, 2024

Financial assets

Monetary items
USD	18,726,635		32.768		613,634,377


EUR	596,978		34.102		20,358,132

EUR	169,266		1.041	(Note 2)	5,772,303
JPY	128,926,508		0.2092		26,971,425



Financial liabilities

Monetary items
USD	16,255,804		32.768		532,670,186


EUR	821,105		34.102		28,001,335

EUR	168,550		1.041	(Note 2)	5,747,886
JPY	129,345,682		0.2092		27,059,117









September 30, 2024

Financial assets

Monetary items
USD	16,643,822		31.638		526,577,229


EUR	846,618		35.412		29,980,440

EUR	124,264		1.119	(Note 2)	4,400,425
JPY	70,644,061		0.2222		15,697,110



					(Continued)

- 58 -


	Foreign Currencies (In Thousands)		Exchange Rate (Note 1)		Carrying Amount (In Thousands)

Financial liabilities

Monetary items
USD	$	15,476,747	31.638		$	489,653,327


EUR	623,972		35.412		22,096,101

EUR	123,422		1.119	(Note 2)	4,370,625
JPY	74,865,167		0.2222		16,635,040
					(Concluded)

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

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

Please refer to the consolidated statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss for the three months and the nine months ended September 30, 2025 and 2024, 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): there are no significant securities that need to be listed separately;

d.Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: See Table 3 attached;

e.Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 4 attached;

f.Others: The business relationship between the parent and the subsidiaries and significant transactions between them: See Table 5 attached;

g.Names, locations, and related information of investees over which TSMC exercises significant influence (excluding information on investment in mainland China): See Table 6 attached;

- 59 -

h.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 7 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 5 attached.

37. OPERATING SEGMENTS INFORMATION

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

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

- 60 -

TABLE 1

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries


FINANCINGS PROVIDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (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 (Notes 1 and 2)		Financing Company’s Total Financing Amount Limits (Notes 1 and 2)
																											Item	Value





1	TSMC China				TSMC Nanjing				Other receivables from related parties				Yes	$	39,445,950	$	28,306,250	$	14,567,300	1.50%	The need for long-term financing	$	-	Operating capital	$	-	-		$	-	$	113,960,371	$	113,960,371
		(RMB	6,000,000	)&		(RMB	3,400,000	)&		(RMB	3,400,000	)
		(US$	450,000	)		(US$	450,000	)
2	TSMC Development				TSMC Washington				Other receivables from related parties				Yes	1,831,860		1,831,860		1,831,860		-	The need for short-term financing	-		Operating capital	-		-		-		32,836,078		32,836,078
		(US$	60,000	)		(US$	60,000	)		(US$	60,000	)





Note 1: The aggregate amount available for lending to TSMC Nanjing from TSMC China and the aggregate amount of lending from TSMC China shall not exceed the net worth of TSMC China.


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


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

- 61 -

TABLE 2

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries


ENDORSEMENTS/GUARANTEES PROVIDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (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				$	1,999,322,789		$	2,540,585		$	2,540,585	$	2,540,585	$	-	0.05%	$	1,999,322,789	Yes		No	No
						(US$	83,213	)	(US$	83,213	)	(US$	83,213	)
			TSMC Global		Subsidiary				1,999,322,789			228,982,500			198,451,500		198,451,500		-		3.97%	1,999,322,789		Yes		No	No
						(US$	7,500,000	)	(US$	6,500,000	)	(US$	6,500,000	)
			TSMC Arizona		Subsidiary				1,999,322,789			457,886,230			457,787,249		333,756,832		-		9.16%	1,999,322,789		Yes		No	No
						(US$	14,997,420	)	(US$	14,994,178	)	(US$	10,931,736	)
1	TSMC Japan		TSMC JDC		The same parent company				333,479			271,392			-		-		-		-	333,479		No		No	No
						(JPY	1,320,000	)



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


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


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

- 62 -

TABLE 3

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries


TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)


Company Name	Related Party	Nature of Relationships	Transaction Details						Abnormal Transaction	Notes/Accounts Payable or Receivable		Note
			Purchases/ Sales			Amount (Foreign Currencies in Thousands)		% to Total	Payment Terms	Unit Price	Payment Terms					Ending Balance (Foreign Currencies in Thousands)	% to Total



TSMC	TSMC North America	Subsidiary	Sales			$	2,152,156,909	78	Net 30 days from invoice date (Note)	-	-			$	234,413,802	82
	TSMC Arizona	Subsidiary	Sales			1,346,202		-	Net 30 days from the end of the month of when invoice is issued	-	-			28,400		-
	JASM	Subsidiary	Sales			631,083		-	Net 30 days from the end of the month of when invoice is issued	-	-			389,747		-
	TSMC Nanjing	Subsidiary	Sales			133,827		-	Net 30 days from the end of the month of when invoice is issued	-	-			10,852		-
	GUC	Associate	Sales			3,905,188		-	Net 30 days from invoice date	-	-			243,381		-
	VIS	Associate	Sales			1,080,682		-	Net 30 days from the end of the month of when invoice is issued	-	-			620,051		-
	SSMC	Associate	Sales			197,984		-	Net 30 days from the end of the month of when invoice is issued	-	-			68,789		-
	TSMC Nanjing	Subsidiary	Purchases			57,639,591		38	Net 30 days from the end of the month of when invoice is issued	-	-			(6,463,296)		7
	TSMC Arizona	Subsidiary	Purchases			40,415,223		26	Net 30 days from the end of the month of when invoice is issued	-	-			(5,607,942)		6
	TSMC China	Subsidiary	Purchases			19,686,587		13	Net 30 days from the end of the month of when invoice is issued	-	-			(2,291,540)		2
	TSMC Washington	Indirect subsidiary	Purchases			5,337,492		3	Net 30 days from the end of the month of when invoice is issued	-	-			(575,778)		1
	SSMC	Associate	Purchases			3,079,505		2	Net 30 days from the end of the month of when invoice is issued	-	-			(463,532)		-
	VIS	Associate	Purchases			633,682		-	Net 30 days from the end of the month of when invoice is issued	-	-			(94,793)		-

TSMC North America	GUC	Associate of TSMC	Sales			17,759,272		1	Net 30 days from invoice date	-	-			1,325,038		1
				（US$ 569,931	）							（US$ 43,400	）

VisEra Tech	Xintec	Associate of TSMC	Sales			303,915		5	Net 60 days from the end of the month of when invoice is issued	-	-			79,084		6

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

- 63 -

TABLE 4

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries


RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL September 30, 2025 (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				$	238,015,628		28		$	-	-	$	-	$	-
		JASM		Subsidiary				393,271			Note 2		-		-	-		-
		VIS		Associate				675,831			Note 2		-		-	-		-
		GUC		Associate				243,381			24		-		-	-		-







TSMC North America		TSMC		Parent company				156,010			Note 2		-		-	-		-
								(US$	5,110	)
		GUC		Associate of TSMC				1,325,038			12		-		-	-		-
								(US$	43,400	)












TSMC Japan 3DIC R&D Center		TSMC		Parent company				108,492			Note 2		-		-	-		-
								(JPY	527,687	)








TSMC China		TSMC		Parent company				2,291,540			28		-		-	-		-
					(RMB	534,850	)
	TSMC Nanjing		The same parent company		14,646,617			Note 2				-	-		-	-
					(RMB	3,418,513	)





TSMC Nanjing		TSMC		Parent company				6,463,296			26		-		-	-		-
					(RMB	1,508,547	)









TSMC Arizona		TSMC		Parent company				5,607,942			21		-		-	-		-
								(US$	183,680	)











TSMC Technology		TSMC		The ultimate parent of the Company				908,065			Note 2		-		-	-		-
								(US$	29,742	)








TSMC Development		TSMC Washington		Subsidiary				1,831,860			Note 2		-		-	-		-
								(US$	60,000	)





TSMC Washington		TSMC		The ultimate parent of the Company				575,778			28		-		-	-		-
								(US$	18,859	)

Note 1: The calculation of turnover days excludes other receivables from related parties.

Note 2: The ending balance is primarily consisted of royalty receivables and other receivables, which is not applicable for the calculation of turnover days.

- 64 -

TABLE 5

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries


INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (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	Sales revenue	$	2,152,156,909	－	78%
				Receivables from related parties	234,413,802		－	3%
				Accrued expenses and other current liabilities	91,574,175		－	1%
				Other noncurrent liabilities	38,030,023		－	1%
		TSMC China	1	Purchases	19,686,587		－	1%
		TSMC Nanjing	1	Purchases	57,639,591		－	2%
		TSMC Arizona	1	Purchases	40,415,223		－	1%

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

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.

- 65 -

TABLE 6

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries


NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN MAINLAND CHINA) FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (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 September 30, 2025			Net Income (Losses) of the Investee (Foreign Currencies in Thousands)		Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands)			Note
				September 30, 2025 (Foreign Currencies in Thousands)		December 31, 2024 (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	$	1,047,612,709		$	616,839,509	33		100		$	1,168,522,893		$	36,613,706	$	36,613,706	Subsidiary
	TSMC Arizona	Phoenix, Arizona, U.S.A.	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	672,616,510			565,786,810		21,250		100		615,398,407			4,769,007		4,521,065		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		73,923,422			1,643,467		1,643,467		Subsidiary
	JASM	Kumamoto, Japan	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	68,384,148			68,384,148		3,011		73		50,170,825			(8,379,826)		(6,087,944)		Subsidiary
	ESMC	Dresden, Germany	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	28,725,201			18,112,326		788		70		28,844,621			(474,336)		(332,035)		Subsidiary
	VIS	Hsinchu, Taiwan	Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks	13,919,430			13,919,430		506,709		28		17,386,164			6,159,998		1,692,498		Associate
	SSMC	Singapore	Manufacturing and sales of integrated circuits and other semiconductor devices	5,120,028			5,120,028		314		39		11,682,245			2,753,223		1,067,975		Associate
	VisEra Tech	Hsinchu, Taiwan	Research, design, development, manufacturing, sales, packaging and test of color filter	4,224,082			4,224,082		213,619		67		11,659,903			888,890		566,946		Subsidiary
	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		8,074,595			746,125		746,125		Subsidiary
	Xintec	Taoyuan, Taiwan	Wafer level chip size packaging and wafer level post passivation interconnection service	1,988,317			1,988,317		111,282		41		4,287,621			839,477		344,258		Associate
	Emerging Fund	Cayman Islands	Investing in technology start-up companies	3,208,868			2,688,915		-		99.9		3,812,976			161,619		161,457		Subsidiary
	GUC	Hsinchu, Taiwan	Researching, developing, manufacturing, testing and marketing of integrated circuits	386,568			386,568		46,688		35		2,660,385			2,609,908		909,262		Associate
	TSMC 3DIC	Yokohama, Japan	Engineering support activities	1,144,356			1,144,356		49		100		1,467,236			150,781		150,781		Subsidiary
	TSMC Europe	Amsterdam, the Netherlands	Customer service and supporting activities	15,749			15,749		-		100		731,346			65,204		65,204		Subsidiary
	TSMC JDC	Yokohama, Japan	Engineering support activities	410,680			410,680		15		100		428,137			17,651		17,651		Subsidiary
	TSMC Japan	Yokohama, Japan	Customer service and supporting activities	83,760			83,760		6		100		133,392			6,578		6,578		Subsidiary
	TSMC Korea	Seoul, Korea	Customer service and supporting activities	13,656			13,656		80		100		44,147			1,575		1,575		Subsidiary

	VTAF III (Note 3)	Cayman Islands	Investing in technology start-up companies	-			561,975		-		-		-			445		436		Subsidiary

TSMC Partners	TSMC Development	Delaware, U.S.A.	Investing in companies involved in semiconductor manufacturing	17,919,829			17,919,829		-		100		37,297,391			57,788		Note 2		Subsidiary
				（US$ 586,939）			（US$ 586,939）						（US$ 1,221,624）			（US$ 1,798）
	TSMC Technology	Delaware, U.S.A.	Engineering support activities	436,044			436,044		-		100		1,726,459			276,941		Note 2		Subsidiary
				（US$ 14,282）			（US$ 14,282）						（US$ 56,548）			（US$ 8,960）
	TSMC Canada	Ontario, Canada	Engineering support activities	70,221			70,221		2,300		100		442,091			35,426		Note 2		Subsidiary
				（US$ 2,300）			（US$ 2,300）						（US$ 14,480）			（US$ 1,139）

VTAF III	Growth Fund (Note 3)	Cayman Islands	Investing in technology start-up companies	-			37,733		-		-		-			445		Note 2		Subsidiary
							（US$ 1,236）									（US$ 14）

TSMC Development	TSMC Washington	Washington, U.S.A.	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	-			-		293,637		100		4,501,570			(337,536)		Note 2		Subsidiary
													（US$ 147,443）			（US$ (10,824)）

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.

Note 3: VTAF III and the Growth Fund have completed the liquidation procedures respectively in the first quarter and the second quarter of 2025.

- 66 -

TABLE 7

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries


INFORMATION ON INVESTMENT IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 (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, 2025 (US$ in Thousands)		Investment Flows					Accumulated Outflow of Investment from Taiwan as of September 30, 2025 (US$ in Thousands)		Net Income (Losses) of the Investee Company		Percentage of Ownership	Share of Profits/Losses		Carrying Amount as of Balance as of September 30, 2025		Accumulated Inward Remittance of Earnings as of September 30, 2025
										Outflow (US$ in Thousands)			Inflow




TSMC China			Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	$	18,939,667	(Note 1)		$	18,939,667	$	-		$	-	$	18,939,667	$	8,571,747	100%	$	8,621,457	$	113,776,566	$	-
	(RMB 4,502,080	)				(US$ 596,000	)			(US$ 596,000		)					(Note 2)

TSMC Nanjing			Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	30,521,412		(Note 1)		30,521,412		-			-		30,521,412		22,556,377		100%	22,388,826		133,723,614		-
	(US$ 6,650,119	)				(US$ 1,000,000	)			(US$ 1,000,000		)					(Note 2)


Accumulated Investment in Mainland China as of September 30, 2025 (US$ in Thousands)	Investment Amounts Authorized by Investment Commission, MOEA (US$ in Thousands)	Upper Limit on Investment


$49,461,079	$119,412,667	$3,021,346,681

（US$ 1,596,000）	（US$ 3,596,000）	(Note 3)

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

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

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

- 67 -