tsm-ex991_19.htm

Shareholders (Note)

Shareholders (Note)

Total Shares Owned

Ownership Percentage

ADR-Taiwan Semiconductor Manufacturing Company, Ltd.

5,319,975,808

National Development Fund, Executive Yuan

1,653,709,980

EX-99.1 2 tsm-ex991_19.htm EX-99.1 tsm-ex991_19.htm

English Translation of Financial Statements Originally Issued in Chinese

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

Consolidated Financial Statements for the

Nine Months Ended September 30, 2022 and 2021 and

Independent Auditors’ Review Report

- 0 -

勤業眾信

勤業眾信聯合會計師事務所

11073 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 11073, Taiwan

Tel :+886 (2) 2725-9988

Fax:+886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders

Taiwan Semiconductor Manufacturing Company Limited

Introduction

We have reviewed the accompanying consolidated balance sheets of Taiwan Semiconductor Manufacturing Company Limited and its subsidiaries (collectively, the “Company”) as of September 30, 2022 and 2021, the related consolidated statements of comprehensive income for the three months ended September 30, 2022 and 2021 and for the nine months ended September 30, 2022 and 2021, of changes in equity, and of cash flows for the nine months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with Statement of Auditing Standards No. 65 “Review of 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, 2022 and 2021, its consolidated financial performance for the three months ended September 30, 2022 and 2021, and its consolidated financial performance and its consolidated cash flows for the nine months then ended September 30, 2022 and 2021 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.

The engagement partners on the reviews resulting in this independent auditors’ review report are Mei Yen Chiang and Shang Chih Lin.

Deloitte & Touche

Taipei, Taiwan

Republic of China

November 8, 2022

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.

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

	September 30, 2022 (Reviewed)						December 31, 2021 (Audited)							September 30, 2021 (Reviewed)
ASSETS	Amount				%		Amount				%			Amount				%

CURRENT ASSETS
Cash and cash equivalents (Note 6)	$		1,296,012,784			28	$		1,064,990,192			29		$		853,811,966			26
Financial assets at fair value through profit or loss (Note 7)		4,705,434				-		159,048				-			33,956				-
Financial assets at fair value through other comprehensive income (Note 8)		126,209,422				3		119,519,251				3			121,935,878				4
Financial assets at amortized cost (Note 9)		71,857,468				1		3,773,571				-			-				-
Hedging financial assets (Note 10)		88,431				-		13,468				-			37,769				-
Notes and accounts receivable, net (Note 11)		260,447,134				6		197,586,109				5			186,309,080				6
Receivables from related parties (Note 31)		1,091,174				-		715,324				-			859,144				-
Other receivables from related parties (Note 31)		76,143				-		61,531				-			73,090				-
Inventories (Note 12)		218,335,874				5		193,102,321				5			182,233,752				5
Other financial assets (Note 32)		24,855,999				-		16,630,611				1			14,007,812				-
Other current assets		10,552,495				-		10,521,481				-			11,336,722				-

Total current assets		2,014,232,358				43		1,607,072,907				43			1,370,639,169				41

NONCURRENT ASSETS
Financial assets at fair value through other comprehensive income (Note 8)		6,784,978				-		5,887,892				-			5,729,779				-
Financial assets at amortized cost (Note 9)		42,347,584				1		1,533,391				-			1,545,597				-
Investments accounted for using equity method (Note 13)		26,663,336				1		21,963,418				1			20,455,175				1
Property, plant and equipment (Note 14)		2,411,490,251				52		1,975,118,704				53			1,828,894,565				55
Right-of-use assets (Note 15)		42,349,743				1		32,734,537				1			32,961,097				1
Intangible assets (Note 16)		26,706,552				1		26,821,697				1			25,643,914				1
Deferred income tax assets (Note 4)		63,058,097				1		49,153,886				1			41,925,391				1
Refundable deposits		4,451,490				-		2,624,854				-			2,422,262				-
Other noncurrent assets		5,217,377				-		2,592,169				-			2,094,935				-

Total noncurrent assets		2,629,069,408				57		2,118,430,548				57			1,961,672,715				59

TOTAL	$		4,643,301,766			100	$		3,725,503,455			100		$		3,332,311,884			100

LIABILITIES AND EQUITY

CURRENT LIABILITIES
Short-term loans (Notes 17 and 29)	$		-			-	$		114,921,333			3		$		118,844,065			4
Financial liabilities at fair value through profit or loss (Note 7)		611,010				-		681,914				-			1,405,470				-
Hedging financial liabilities (Note 10)		-				-		9,642				-			-				-
Accounts payable		60,147,405				1		47,285,603				1			41,733,233				1
Payables to related parties (Note 31)		1,870,819				-		1,437,186				-			2,155,628				-
Salary and bonus payable		31,380,029				1		23,802,100				1			20,422,409				1
Accrued profit sharing bonus to employees and compensation to directors (Note 28)		45,041,965				1		36,524,741				1			27,219,784				1
Payables to contractors and equipment suppliers		159,780,369				3		145,742,148				4			128,367,724				4
Cash dividends payable (Note 20)		142,617,093				3		142,617,093				4			142,617,092				4
Income tax payable (Note 4)		76,005,324				2		59,647,152				2			33,614,402				1
Long-term liabilities - current portion (Notes 18, 19 and 29)		23,426,667				1		4,566,667				-			-				-
Accrued expenses and other current liabilities (Notes 15, 21, 29 and 31)		266,550,606				6		162,267,779				4			139,241,643				4

Total current liabilities		807,431,287				18		739,503,358				20			655,621,450				20

NONCURRENT LIABILITIES
Bonds payable (Notes 18 and 29)		842,386,471				18		610,070,652				16			459,733,448				14
Long-term bank loans (Notes 19 and 29)		3,055,178				-		3,309,131				-			3,472,190				-
Deferred income tax liabilities (Note 4)		1,466,389				-		1,873,877				-			2,306,909				-
Lease liabilities (Notes 15 and 29)		30,182,353				1		20,764,214				1			21,052,983				1
Net defined benefit liability (Note 4)		8,503,262				-		11,036,879				-			11,276,177				-
Guarantee deposits		907,991				-		686,762				-			641,546				-
Others (Note 21)		197,052,676				4		167,525,377				5			99,886,871				3

Total noncurrent liabilities		1,083,554,320				23		815,266,892				22			598,370,124				18

Total liabilities		1,890,985,607				41		1,554,770,250				42			1,253,991,574				38

EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
Capital stock (Notes 4 and 20)		259,303,805				6		259,303,805				7			259,303,805				8
Capital surplus (Notes 4, 20 and 27)		69,316,391				1		64,761,602				2			64,746,864				2
Retained earnings (Notes 4 and 20)
Appropriated as legal capital reserve		311,146,899				7		311,146,899				8			311,146,899				9
Appropriated as special capital reserve		35,064,663				1		59,304,212				2			58,594,043				2
Unappropriated earnings		2,066,562,035				44		1,536,378,550				41			1,441,532,663				43
		2,412,773,597				52		1,906,829,661				51			1,811,273,605				54
Others (Notes 4, 20 and 27)		(3,419,487		)		-		(62,608,515		)		(2	)		(59,304,212		)		(2	)

Equity attributable to shareholders of the parent		2,737,974,306				59		2,168,286,553				58			2,076,020,062				62

NON - CONTROLLING INTERESTS		14,341,853				-		2,446,652				-			2,300,248				-

Total equity		2,752,316,159				59		2,170,733,205				58			2,078,320,310				62

TOTAL	$		4,643,301,766			100	$		3,725,503,455			100		$		3,332,311,884			100

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

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

(Reviewed, Not Audited)

	For the Three Months Ended September 30													For the Nine Months Ended September 30
	2022							2021						2022							2021
	Amount				%			Amount				%		Amount				%			Amount				%

NET REVENUE (Notes 21, 31 and 36)	$		613,142,743			100		$		414,670,379			100	$		1,638,359,424			100		$		1,149,225,731			100

COST OF REVENUE (Notes 12, 28 and 31)		242,644,026				40			201,924,184				49		679,189,547				41			560,443,288				49

GROSS PROFIT		370,498,717				60			212,746,195				51		959,169,877				59			588,782,443				51

OPERATING EXPENSES (Notes 28 and 31)
Research and development		42,977,507				7			30,866,634				7		118,675,177				7			92,496,368				8
General and administrative		14,499,002				2			8,929,793				2		36,567,623				2			23,280,651				2
Marketing		2,709,953				-			1,853,489				1		6,929,370				1			5,568,153				-

Total operating expenses		60,186,462				9			41,649,916				10		162,172,170				10			121,345,172				10

OTHER OPERATING INCOME AND EXPENSES, NET (Notes 28)		11,959				-			(92,731		)		-		(759,626		)		-			(228,328		)		-

INCOME FROM OPERATIONS (Note 36)		310,324,214				51			171,003,548				41		796,238,081				49			467,208,943				41

NON-OPERATING INCOME AND EXPENSES
Share of profits of associates		2,077,809				-			1,513,156				-		6,061,304				-			3,952,156				-
Interest income (Note 22)		6,615,044				1			1,356,544				-		11,834,868				1			4,246,129				-
Other income		120,905				-			155,818				-		941,465				-			813,088				-
Foreign exchange gain, net (Note 34)		(3,748,421		)		(1	)		3,724,723				1		5,859,265				-			9,848,594				1
Finance costs (Note 23)		(3,370,018		)		-			(1,334,063		)		-		(8,415,015		)		(1	)		(3,240,557		)		-
Other gains and losses, net (Note 24)		4,671,334				1			(2,568,087		)		-		(2,999,124		)		-			(4,521,250		)		-

Total non-operating income and expenses		6,366,653				1			2,848,091				1		13,282,763				-			11,098,160				1

INCOME BEFORE INCOME TAX		316,690,867				52			173,851,639				42		809,520,844				49			478,307,103				42

INCOME TAX EXPENSE (Notes 4 and 25)		35,722,460				6			17,372,485				4		88,498,811				5			47,607,484				5

NET INCOME		280,968,407				46			156,479,154				38		721,022,033				44			430,699,619				37

OTHER COMPREHENSIVE INCOME (LOSS) (Notes 20)
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		(103,591		)		-			264,000				-		68,610				-			1,081,336				-
Loss on hedging instruments		-				-			-				-		-				-			(41,416		)		-
Share of other comprehensive income of associates		21,431				-			17,230				-		76,518				-			21,732				-
Income tax benefit (expense) related to items that will not be reclassified subsequently		31				-			(231		)		-		262				-			(56,076		)		-
		(82,129		)		-			280,999				-		145,390				-			1,005,576				-
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations		34,872,636				5			(541,643		)		-		68,084,934				4			(3,636,922		)		-
Unrealized loss on investments in debt instruments at fair value through other comprehensive income		(2,973,821		)		-			(419,794		)		-		(11,263,186		)		-			(2,209,963		)		-
Gain on hedging instruments		4,989				-			-				-		1,347,573				-			-				-
Share of other comprehensive income (loss) of associates		299,724				-			(26,886		)		-		591,374				-			(100,543		)		-
Income tax benefit related to items that may be reclassified subsequently		-				-			-				-		6,036				-			-				-
		32,203,528				5			(988,323		)		-		58,766,731				4			(5,947,428		)		-

Other comprehensive income (loss) for the period, net of income tax		32,121,399				5			(707,324		)		-		58,912,121				4			(4,941,852		)		-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	$		313,089,806			51		$		155,771,830			38	$		779,934,154			48		$		425,757,767			37

NET INCOME ATTRIBUTABLE TO:
Shareholders of the parent	$		280,865,780			46		$		156,258,287			38	$		720,626,072			44		$		430,307,722			37
Non-controlling interests		102,627				-			220,867				-		395,961				-			391,897				-

	$		280,968,407			46		$		156,479,154			38	$		721,022,033			44		$		430,699,619			37

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Shareholders of the parent	$		312,889,198			51		$		155,549,779			38	$		780,221,513			48		$		425,364,812			37
Non-controlling interests		200,608				-			222,051				-		(287,359		)		-			392,955				-

	$		313,089,806			51		$		155,771,830			38	$		779,934,154			48		$		425,757,767			37

EARNINGS PER SHARE (NT$, Note 26)
Basic earnings per share	$		10.83					$		6.03				$		27.79					$		16.59
Diluted earnings per share	$		10.83					$		6.03				$		27.79					$		16.59

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

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)


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

BALANCE, JANUARY 1, 2021		25,930,380		$	259,303,805		$	56,347,243		$	311,146,899	$	42,259,146		$	1,235,280,036		$	1,588,686,081		$	(57,001,627	)	$	2,321,754		$	-		$	-		$	(54,679,873	)	$	-		$	1,849,657,256		$	964,743		$	1,850,621,999

Appropriations of earnings
Special capital reserve		-			-			-			-		16,334,897			(16,334,897	)		-			-			-			-			-			-			-			-			-			-
Cash dividends to shareholders		-			-			-			-		-			(207,443,043	)		(207,443,043	)		-			-			-			-			-			-			(207,443,043	)		-			(207,443,043	)
Total		-			-			-			-		16,334,897			(223,777,940	)		(207,443,043	)		-			-			-			-			-			-			(207,443,043	)		-			(207,443,043	)

Net income for the nine months ended September 30, 2021		-			-			-			-		-			430,307,722			430,307,722			-			-			-			-			-			-			430,307,722			391,897			430,699,619

Other comprehensive loss for the nine months ended September 30, 2021, net of income tax		-			-			-			-		-			-			-			(3,737,424	)		(1,160,964	)		(44,522	)		-			(4,942,910	)		-			(4,942,910	)		1,058			(4,941,852	)

Total comprehensive income (loss) for the nine months ended September 30, 2021		-			-			-			-		-			430,307,722			430,307,722			(3,737,424	)		(1,160,964	)		(44,522	)		-			(4,942,910	)		-			425,364,812			392,955			425,757,767

Disposal of investments in equity instruments at fair value through other comprehensive income		-			-			-			-		-			(277,155	)		(277,155	)		-			277,155			-			-			277,155			-			-			-			-

Basis adjustment for gain on hedging instruments		-			-			-			-		-			-			-			-			-			41,416			-			41,416			-			41,416			-			41,416

Adjustments to share of changes in equities of associates		-			-			317			-		-			-			-			-			-			-			-			-			-			317			-			317

From difference between the consideration received and the carrying amount of the subsidiaries' net assets during actual disposal		-			-			8,406,282			-		-			-			-			-			-			-			-			-			-			8,406,282			1,045,516			9,451,798

From share of changes in equities of subsidiaries		-			-			(6,978	)		-		-			-			-			-			-			-			-			-			-			(6,978	)		6,978			-

Decrease in non-controlling interests		-			-			-			-		-			-			-			-			-			-			-			-			-			-			(110,099	)		(110,099	)

Effect of acquisition of subsidiary		-			-			-			-		-			-			-			-			-			-			-			-			-			-			155			155

BALANCE, SEPTEMBER 30, 2021		25,930,380		$	259,303,805		$	64,746,864		$	311,146,899	$	58,594,043		$	1,441,532,663		$	1,811,273,605		$	(60,739,051	)	$	1,437,945		$	(3,106	)	$	-		$	(59,304,212	)	$	-		$	2,076,020,062		$	2,300,248		$	2,078,320,310

BALANCE, JANUARY 1, 2022		25,930,380		$	259,303,805		$	64,761,602		$	311,146,899	$	59,304,212		$	1,536,378,550		$	1,906,829,661		$	(63,303,361	)	$	574,310		$	120,536		$	-		$	(62,608,515	)	$	-		$	2,168,286,553		$	2,446,652		$	2,170,733,205

Appropriations of earnings
Special capital reserve		-			-			-			-		(24,239,549	)		24,239,549			-			-			-			-			-			-			-			-			-			-
Cash dividends to shareholders		-			-			-			-		-			(213,925,638	)		(213,925,638	)		-			-			-			-			-			-			(213,925,638	)		-			(213,925,638	)
Total		-			-			-			-		(24,239,549	)		(189,686,089	)		(213,925,638	)		-			-			-			-			-			-			(213,925,638	)		-			(213,925,638	)

Net income for the nine months ended September 30, 2022		-			-			-			-		-			720,626,072			720,626,072			-			-			-			-			-			-			720,626,072			395,961			721,022,033

Other comprehensive income (loss) for the nine months ended September 30, 2022, net of income tax		-			-			-			-		-			-			-			69,359,198			(11,207,118	)		1,443,361			-			59,595,441			-			59,595,441			(683,320	)		58,912,121

Total comprehensive income (loss) for the nine months ended September 30, 2022		-			-			-			-		-			720,626,072			720,626,072			69,359,198			(11,207,118	)		1,443,361			-			59,595,441			-			780,221,513			(287,359	)		779,934,154

Share-based payment arrangements		1,387			13,870			438,029			-		-			-			-			-			-			-			(265,177	)		(265,177	)		-			186,722			-			186,722

Treasury stock acquired		-			-			-			-		-			-			-			-			-			-			-			-			(871,566	)		(871,566	)		-			(871,566	)

Treasury stock retired		(1,387	)		(13,870	)		(2,989	)		-		-			(854,707	)		(854,707	)		-			-			-			-			-			871,566			-			-			-

Disposal of investments in equity instruments at fair value through other comprehensive income		-			-			-			-		-			98,209			98,209			-			(98,209	)		-			-			(98,209	)		-			-			-			-

Basis adjustment for loss on hedging instruments		-			-			-			-		-			-			-			-			-			(43,027	)		-			(43,027	)		-			(43,027	)		-			(43,027	)

Adjustments to share of changes in equities of associates		-			-			2,582			-		-			-			-			-			-			-			-			-			-			2,582			-			2,582

From share of changes in equities of subsidiaries		-			-			4,117,167			-		-			-			-			-			-			-			-			-			-			4,117,167			12,348,992			16,466,159

Decrease in non-controlling interests		-			-			-			-		-			-			-			-			-			-			-			-			-			-			(166,432	)		(166,432	)

BALANCE, SEPTEMBER 30, 2022		25,930,380		$	259,303,805		$	69,316,391		$	311,146,899	$	35,064,663		$	2,066,562,035		$	2,412,773,597		$	6,055,837		$	(10,731,017	)	$	1,520,870		$	(265,177	)	$	(3,419,487	)	$	-		$	2,737,974,306		$	14,341,853		$	2,752,316,159

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

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Nine Months Ended September 30
	2022				2021

CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$		809,520,844		$		478,307,103
Adjustments for:
Depreciation expense		323,122,219				305,598,797
Amortization expense		6,550,157				6,133,442
Expected credit losses recognized (reversal) on investments in debt instruments		33,282				(5,246		)
Finance costs		8,415,015				3,240,557
Share of profits of associates		(6,061,304		)		(3,952,156		)
Interest income		(11,834,868		)		(4,246,129		)
Share-based compensation		222,091				6,007
Loss on disposal or retirement of property, plant and equipment, net		91,532				123,673
Loss on disposal or retirement of intangible assets, net		-				1,228
Impairment loss on property, plant and equipment		790,740				274,388
Loss (gain) on disposal of investments in debt instruments at fair value through other comprehensive income, net		346,125				(183,349		)
Loss (gain) on foreign exchange, net		12,532,183				(11,104,453		)
Dividend income		(260,534		)		(357,214		)
Others		(292,572		)		(338,686		)
Changes in operating assets and liabilities:
Financial instruments at fair value through profit or loss		(4,622,312		)		3,497,620
Notes and accounts receivable, net		(62,861,124		)		(40,828,800		)
Receivables from related parties		(375,850		)		(301,013		)
Other receivables from related parties		(14,612		)		(22,445		)
Inventories		(25,233,553		)		(44,880,345		)
Other financial assets		(4,371,124		)		(4,503,858		)
Other current assets		(1,072,295		)		(4,760,353		)
Accounts payable		12,861,802				2,745,949
Payables to related parties		433,633				47,910
Salary and bonus payable		7,577,929				351,168
Accrued profit sharing bonus to employees and compensation to directors		8,517,224				(8,461,262		)
Accrued expenses and other current liabilities		38,582,192				51,695,061
Other noncurrent liabilities		100,127,809				89,862,181
Net defined benefit liability		(2,533,617		)		(637,897		)
Cash generated from operations		1,210,191,012				817,301,878
Income taxes paid		(86,473,728		)		(83,340,473		)

Net cash generated by operating activities		1,123,717,284				733,961,405

(Continued)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Nine Months Ended September 30
	2022				2021

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Financial assets at fair value through other comprehensive income	$		(49,269,573	)	$		(195,441,758	)
Financial assets at amortized cost		(123,508,899		)		-
Property, plant and equipment		(745,827,757		)		(603,639,699		)
Intangible assets		(5,471,086		)		(5,677,525		)
Proceeds from disposal or redemption of:
Financial assets at fair value through other comprehensive income		41,221,410				198,739,617
Financial assets at amortized cost		20,620,129				9,368,275
Property, plant and equipment		801,029				213,686
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income		300				115,627
Derecognition of hedging financial instruments		1,591,074				101,616
Interest received		9,440,363				4,469,674
Proceeds from government grants - property, plant and equipment		462,822				522,779
Proceeds from government grants - others		874				6,605
Other dividends received		260,534				357,214
Dividends received from investments accounted for using equity method		2,749,667				2,136,426
Increase in prepayments for leases		-				(1,200,000		)
Refundable deposits paid		(1,904,318		)		(1,563,585		)
Refundable deposits refunded		437,209				468,477

Net cash used in investing activities		(848,396,222		)		(591,022,571		)

CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in short-term loans		(111,959,992		)		37,530,131
Proceeds from issuance of bonds		188,093,561				207,127,507
Repayment of bonds		-				(2,600,000		)
Proceeds from long-term bank loans		500,000				1,510,000
Payments for transaction costs attributable to the issuance of bonds		(403,162		)		(329,346		)
Treasury stock acquired		(871,566		)		-
Repayment of the principal portion of lease liabilities		(1,767,753		)		(1,450,722		)
Interest paid		(6,498,170		)		(2,694,972		)
Guarantee deposits received		199,190				410,439
Guarantee deposits refunded		(43,314		)		(36,611		)
Cash dividends		(213,925,639		)		(194,477,853		)
Disposal of ownership interests in subsidiaries (without losing control)		-				9,451,798
Increase (decrease) in non-controlling interests		16,264,358				(115,951		)

Net cash generated by (used in) financing activities		(130,412,487		)		54,324,420

(Continued)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Nine Months Ended September 30
	2022			2021

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	$		86,114,017	$		(3,621,935	)

NET INCREASE IN CASH AND CASH EQUIVALENTS		231,022,592			193,641,319

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		1,064,990,192			660,170,647

CASH AND CASH EQUIVALENTS, END OF PERIOD	$		1,296,012,784	$		853,811,966

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

(Concluded)

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

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

(Reviewed, Not Audited)

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 8, 2022.

3.	APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

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

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

The IFRSs issued by International Accounting Standards Board (IASB) and endorsed by FSC with effective date starting 2023

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

Amendments to IAS 1 “Disclosure of Accounting Policies”		January 1, 2023
Amendments to IAS 8 “Definition of Accounting Estimates”		January 1, 2023
Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”		January 1, 2023

The IFRSs issued by IASB, but not yet endorsed and issued into effect by the FSC

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

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”		To be determined by IASB
Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”		January 1, 2024
Amendments to IAS 1 “Non-current Liabilities with Covenants”		January 1, 2024

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

4.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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, 2021.

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

Statement of Compliance

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

Basis of Consolidation

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

The basis of preparation and the basis for the consolidated financial statements applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2021.

The subsidiaries in the consolidated financial statements

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

Establishment

Percentage of Ownership

Name of Investor

Name of Investee

Main Businesses and Products

and Operating

Location

September 30,

2022

December 31,

2021

September 30,

2021

Note

TSMC

TSMC North America

Sales and marketing of integrated circuits and other semiconductor devices

San Jose, California, U.S.A.

100%

TSMC Europe B.V. (TSMC Europe)

Customer service and supporting activities

Amsterdam, the Netherlands

100%

TSMC Japan Limited (TSMC Japan)

Customer service and supporting activities

Yokohama, Japan

100%

TSMC Design Technology Japan, Inc. (TSMC JDC)

Engineering support activities

Yokohama, Japan

100%

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

Engineering support activities

Yokohama, Japan

100%

(Continued)

			Establishment	Percentage of Ownership
Name of Investor	Name of Investee	Main Businesses and Products	and Operating Location	September 30, 2022		December 31, 2021		September 30, 2021		Note

TSMC	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%	a)
	TSMC Global, Ltd. (TSMC Global)	Investment activities	Tortola, British Virgin Islands		100%		100%		100%	-
	TSMC China Company Limited (TSMC China)	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	Shanghai, China		100%		100%		100%	-
	TSMC Nanjing Company Limited (TSMC Nanjing)	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	Nanjing, China		100%		100%		100%	-
	VisEra Technologies Company Ltd. (VisEra Tech)	Research, design, development, manufacturing, sales, packaging and test of color filter	Hsin-Chu, Taiwan		68%		73%		73%	b)
	TSMC Arizona Corporation (TSMC Arizona)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Phoenix, Arizona, U.S.A.		100%		100%		100%	a), c)
	Japan Advanced Semiconductor Manufacturing, Inc.（JASM）	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	Kumamoto, Japan		71%		100%		-	a), d)
	VentureTech Alliance Fund II, L.P. (VTAF II)	Investing in technology start-up companies	Cayman Islands		98%		98%		98%	a)
	VentureTech Alliance Fund III, L.P. (VTAF III)	Investing in technology start-up companies	Cayman Islands		98%		98%		98%	a)
	Emerging Fund L.P. (Emerging Fund)	Investing in technology start-up companies	Cayman Islands		99.9%		99.9%		99.9%	a)
TSMC Partners	TSMC Development, Inc. (TSMC Development)	Investing in companies involved in semiconductor manufacturing	Delaware, U.S.A.		100%		100%		100%	-
	TSMC Technology, Inc. (TSMC Technology)	Engineering support activities	Delaware, U.S.A.		100%		100%		100%	a)
	TSMC Design Technology Canada Inc. (TSMC Canada)	Engineering support activities	Ontario, Canada		100%		100%		100%	a)
TSMC Development	WaferTech, LLC (WaferTech)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Washington, U.S.A.		100%		100%		100%	-
VTAF III	Growth Fund Limited (Growth Fund)	Investing in technology start-up companies	Cayman Islands		100%		100%		100%	a)

(Concluded)

Note a:

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

Note b:

VisEra has increased its capital in June 2022. After the increase in capital, TSMC’s shareholding in VisEra decreased from 73% to 68%. This transaction was accounted for as an equity transaction since the transaction did not change TSMC’s control over VisEra.

Note c:

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

Note d:

JASM is established in December 2021 and has increased its capital in January 2022. After the increase in capital, TSMC’s shareholding in JASM decreased from 100% to 81%. In addition, JASM increased its capital by issuing noncumulative preferred shares and common shares in April 2022, TSMC’s shareholding in JASM decreased from 81% to 71% and the proportion of voting right remain 81%. The aforementioned transactions were accounted for as an equity transaction since the transaction did not change TSMC’s control over JASM.

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.

Treasury Stock

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

Share-based payment arrangements

Equity-settled share-based payment arrangements

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

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

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

Cash-settled share-based payment arrangements

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

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. 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.	CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

The Company has considered the economic implications of COVID-19 on critical accounting estimations and will continue evaluating the impact on its financial position and financial performance as a result of the pandemic.

In addition, the same critical 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, 2021.

6.	CASH AND CASH EQUIVALENTS

	September 30, 2022			December 31, 2021			September 30, 2021

Cash and deposits in banks	$		1,277,760,695	$		1,058,808,104	$		847,957,032
Commercial paper		16,458,450			-			-
Government bonds		1,793,639			906,743			1,036,536
Repurchase agreements		-			5,275,345			4,818,398

	$		1,296,012,784	$		1,064,990,192	$		853,811,966

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

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

	September 30, 2022		December 31, 2021		September 30, 2021

Financial assets

Mandatorily measured at FVTPL
Forward exchange contracts	$	4,705,434	$	159,048	$	33,956

Financial liabilities

Held for trading
Forward exchange contracts	$	611,010	$	681,914	$	1,405,470

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, 2022

Sell NT$	October 2022 to November 2022	NT$	104,780,845
Sell US$	October 2022 to December 2022	US$	1,871,955
Sell RMB	October 2022 to November 2022	RMB	1,481,748

December 31, 2021

Sell NT$	January 2022 to March 2022	NT$	132,734,482
Sell US$	January 2022 to March 2022	US$	2,009,148

September 30, 2021

Sell NT$	October 2021 to December 2021	NT$	126,403,873
Sell US$	October 2021 to November 2021	US$	1,787,551

8.	FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	September 30, 2022			December 31, 2021			September 30, 2021

Investments in debt instruments at FVTOCI
Corporate bonds	$		66,420,737	$		57,253,161	$		58,340,908
Agency bonds/Agency mortgage-backed securities		29,713,881			32,070,114			33,836,903
Government bonds		20,226,682			21,345,794			22,479,749
Asset-backed securities		9,580,806			8,660,424			7,219,193
		125,942,106			119,329,493			121,876,753

(Continued)

	September 30, 2022			December 31, 2021			September 30, 2021

Investments in equity instruments at FVTOCI
Non-publicly traded equity investments	$		6,784,978	$		5,887,892	$		5,729,779
Publicly traded stocks		267,316			189,758			59,125
		7,052,294			6,077,650			5,788,904

	$		132,994,400	$		125,407,143	$		127,665,657

Current	$		126,209,422	$		119,519,251	$		121,935,878
Noncurrent		6,784,978			5,887,892			5,729,779

	$		132,994,400	$		125,407,143	$		127,665,657

(Concluded)

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

For the nine months ended September 30, 2022, as the Company adjusted its investment portfolios, equity investments designated at FVTOCI were divested for NT$195,301 thousand. The related other equity-unrealized gain/loss on financial assets at FVTOCI of NT$98,209 thousand was transferred to increase retained earnings.

As of September 30, 2022 and 2021, the cumulative loss allowance for expected credit loss of NT$38,718 thousand and NT$32,764 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, 2022				December 31, 2021				September 30, 2021

Corporate bonds	$		70,840,021		$		5,310,039		$		1,546,856
Commercial paper		43,404,235				-				-
Less: Allowance for impairment loss		(39,204		)		(3,077		)		(1,259		)

	$		114,205,052		$		5,306,962		$		1,545,597

Current	$		71,857,468		$		3,773,571		$		-
Noncurrent		42,347,584				1,533,391				1,545,597

	$		114,205,052		$		5,306,962		$		1,545,597

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, 2022			December 31, 2021			September 30, 2021

Financial assets - current

Fair value hedges
Interest rate futures contracts	$		88,431	$		-	$		37,769
Cash flow hedges
Forward interest rate contracts		-			13,468			-

	$		88,431	$		13,468	$		37,769

Financial liabilities - current

Fair value hedges
Interest rate futures contracts	$		-	$		9,642	$		-

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 risk.

September 30, 2022

Hedging Instruments

Contract Amount

(US$ in Thousands)

Maturity

Interest rate futures contracts - US Treasury futures

US$

78,900

December 2022

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

Financial assets at FVTOCI	$	4,148,778	$	(88,431	)

December 31, 2021

Hedging Instruments

Contract Amount

(US$ in Thousands)

Maturity

Interest rate futures contracts - US Treasury futures

US$

53,900

March 2022

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

Financial assets at FVTOCI	$	4,079,274	$	9,642

September 30, 2021

Hedging Instruments

Contract Amount

(US$ in Thousands)

Maturity

Interest rate futures contracts - US Treasury futures

US$

85,200

December 2021

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

Financial assets at FVTOCI	$	6,295,906	$	(37,769	)

The effect for the nine months ended September 30, 2022 and 2021 is detailed below:

Hedging Instruments/Hedged Items	Change in Value Used for Calculating Hedge Ineffectiveness
	Nine Months Ended September 30
	2022				2021

Hedging Instruments
Interest rate futures contracts - US Treasury futures	$		276,460		$		140,575
Hedged Items
Financial assets at FVTOCI		(276,460		)		(140,575		)

	$		-		$		-

Cash flow hedge

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

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

The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of the counterparty’s own credit risk on the fair value of forward contracts. No other sources of ineffectiveness emerged from these hedging relationships during the hedging period. For the nine months ended September

30, 2022 and 2021, refer to Note 20(d) for gain or loss arising from changes in the fair value of hedging instruments, the amount transferred to initial carrying amount of hedged items and the amount reclassified to finance costs of hedged items.

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

December 31, 2021

Hedging Instruments

Contract Amount

(In Thousands)

Maturity

Balance in

Other Equity (Continuing Hedges)

Forward interest rate contracts

US$

328,000

January 2022

128,165

The effect for the nine months ended September 30, 2022 and 2021 is detailed below:

Hedging Instruments/Hedged Items	Change in Value Used for Calculating Hedge Ineffectiveness
	Nine Months Ended September 30
	2022			2021

Hedging Instruments
Forward exchange contracts (capital expenditures)	$	-		$	(41,416	)
Forward interest rate contracts (issuance of debts)	$	1,378,928		$	-

Hedged Items
Forecast transaction (capital expenditures)	$	-		$	41,416
Forecast transaction (issuance of debts)	$	(1,378,928	)	$	-

11.	NOTES AND ACCOUNTS RECEIVABLE, NET

	September 30, 2022				December 31, 2021				September 30, 2021

At amortized cost
Notes and accounts receivable	$		254,776,451		$		193,733,220		$		183,139,013
Less: Loss allowance		(375,054		)		(347,020		)		(322,950		)
		254,401,397				193,386,200				182,816,063
At FVTOCI		6,045,737				4,199,909				3,493,017

	$		260,447,134		$		197,586,109		$		186,309,080

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 30 days from the end of the month when the invoice is issued. Aside from recognizing impairment loss for credit-impaired accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio of customers by different risk levels with consideration of factors of historical loss ratios and customers’ financial conditions, competitiveness and business outlook. For accounts receivable past due over 90 days

without collaterals or guarantees, the Company recognizes loss allowance at full amount.

Aging analysis of notes and accounts receivable

	September 30, 2022				December 31, 2021				September 30, 2021

Not past due	$		252,863,359		$		191,740,045		$		183,113,259
Past due
Past due within 30 days		7,958,446				6,186,814				3,472,387
Past due 31-60 days		361				6,182				46,228
Past due 61-120 days		22				88				156
Less: Loss allowance		(375,054		)		(347,020		)		(322,950		)

	$		260,447,134		$		197,586,109		$		186,309,080

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

Movements of the loss allowance for accounts receivable

	Nine Months Ended September 30
	2022			2021

Balance, beginning of period	$		347,020	$		246,626
Provision		27,935			76,332
Effect of exchange rate changes		99			(8		)

Balance, end of period	$		375,054	$		322,950

For the nine months ended September 30, 2022 and 2021, 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, 2022			December 31, 2021			September 30, 2021

Finished goods	$		38,572,060	$		32,562,750	$		19,823,464
Work in process		144,337,075			137,700,402			139,395,844
Raw materials		14,998,114			11,111,122			12,206,876
Supplies and spare parts		20,428,625			11,728,047			10,807,568

	$		218,335,874	$		193,102,321	$		182,233,752

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

	Three Months Ended September 30					Nine Months Ended September 30
	2022		2021			2022		2021

Inventory losses (reversal of write-down of inventories)	$	1,710,080	$	(578,018	)	$	2,967,546	$	(1,524,065	)

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, 2022			December 31, 2021			September 30, 2021			September 30, 2022		December 31, 2021		September 30, 2021

Vanguard International Semiconductor Corporation (VIS)	Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks	Hsinchu, Taiwan	$		12,763,668	$		10,613,127	$		9,623,603		28%		28%		28%
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)	Manufacturing and sales of integrated circuits and other semiconductor devices	Singapore		8,845,688			6,795,699			6,604,176			39%		39%		39%
Xintec Inc. (Xintec)	Wafer level chip size packaging and wafer level post passivation interconnection service	Taoyuan, Taiwan		3,340,497			3,046,961			2,860,422			41%		41%		41%
Global Unichip Corporation (GUC)	Researching, developing, manufacturing, testing and marketing of integrated circuits	Hsinchu, Taiwan		1,693,668			1,484,683			1,343,198			35%		35%		35%
Mutual-Pak Technology Co., Ltd. (Mutual-Pak)	Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID	New Taipei, Taiwan		19,815			22,948			23,776			28%		28%		28%

			$		26,663,336	$		21,963,418	$		20,455,175

The market prices of the associates’ ownership held by the Company in publicly traded stocks calculated by the closing price at the end of the reporting period 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, 2022		December 31, 2021		September 30, 2021

VIS	$	30,174,527	$	73,347,312	$	70,329,859
GUC	$	27,499,149	$	27,359,085	$	23,390,617
Xintec	$	10,683,065	$	15,913,315	$	14,188,445

14.	PROPERTY, PLANT AND EQUIPMENT

	September 30, 2022			December 31, 2021			September 30, 2021

Assets used by the Company	$		2,411,465,486	$		1,975,113,974	$		1,828,889,640
Assets subject to operating leases		24,765			4,730			4,925

	$		2,411,490,251	$		1,975,118,704	$		1,828,894,565

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, 2022	$		6,488,230		$		576,597,777		$		3,984,749,236		$		76,154,170		$		593,155,733		$		5,237,145,146
Additions		702,377				44,034,103				270,334,176				6,208,437				426,656,999				747,936,092
Disposals or retirements		-				(83,302		)		(17,020,612		)		(890,753		)		-				(17,994,667		)
Transfers to assets subject to operating leases		-				-				(65,779		)		-				-				(65,779		)
Effect of exchange rate changes		445,035				2,002,705				9,896,845				366,624				8,982,282				21,693,491

Balance at September 30, 2022	$		7,635,642		$		622,551,283		$		4,247,893,866		$		81,838,478		$		1,028,795,014		$		5,988,714,283

Accumulated depreciation and impairment

Balance at January 1, 2022	$		499,826		$		306,165,242		$		2,903,539,441		$		51,826,663		$		-		$		3,262,031,172
Additions		1,042				26,567,909				287,390,332				6,921,986				-				320,881,269
Disposals or retirements		-				(72,173		)		(16,176,281		)		(890,323		)		-				(17,138,777		)
Transfers to assets subject to operating leases		-				-				(40,266		)		-				-				(40,266		)
Impairment		-				-				-				-				790,740				790,740
Effect of exchange rate changes		73,997				1,514,039				8,843,768				292,855				-				10,724,659

Balance at September 30, 2022	$		574,865		$		334,175,017		$		3,183,556,994		$		58,151,181		$		790,740		$		3,577,248,797

Carrying amounts at January 1, 2022	$		5,988,404		$		270,432,535		$		1,081,209,795		$		24,327,507		$		593,155,733		$		1,975,113,974
Carrying amounts at September 30, 2022	$		7,060,777		$		288,376,266		$		1,064,336,872		$		23,687,297		$		1,028,004,274		$		2,411,465,486

Cost

Balance at January 1, 2021	$		3,942,625		$		522,447,474		$		3,607,005,732		$		68,862,648		$		223,965,360		$		4,426,223,839
Additions		2,587,183				46,613,697				318,204,846				5,597,208				204,674,844				577,677,778
Disposals or retirements		-				(31,702		)		(11,832,893		)		(145,438		)		-				(12,010,033		)
Transfers from assets subject to operating leases		-				35,478				1,443,590				-				-				1,479,068
Transfers to assets subject to operating leases		-				-				(244,579		)		-				-				(244,579		)
Effect of exchange rate changes		(19,085		)		44,863				614,474				(17,070		)		(192,162		)		431,020

Balance at September 30, 2021	$		6,510,723		$		569,109,810		$		3,915,191,170		$		74,297,348		$		428,448,042		$		4,993,557,093

Accumulated depreciation and impairment

Balance at January 1, 2021	$		506,129		$		271,799,471		$		2,555,529,969		$		43,802,332		$		-		$		2,871,637,901
Additions		998				25,530,181				271,954,105				6,091,281				-				303,576,565
Disposals or retirements		-				(27,770		)		(11,458,210		)		(144,616		)		-				(11,630,596		)
Transfers from assets subject to operating leases		-				15,066				436,816				-				-				451,882
Transfers to assets subject to operating leases		-				-				(68,279		)		-				-				(68,279		)
Impairment		-				-				274,388				-				-				274,388
Effect of exchange rate changes		(4,201		)		(2,726		)		447,113				(14,594		)		-				425,592

Balance at September 30, 2021	$		502,926		$		297,314,222		$		2,817,115,902		$		49,734,403		$		-		$		3,164,667,453

Carrying amounts at January 1, 2021	$		3,436,496		$		250,648,003		$		1,051,475,763		$		25,060,316		$		223,965,360		$		1,554,585,938
Carrying amounts at September 30, 2021	$		6,007,797		$		271,795,588		$		1,098,075,268		$		24,562,945		$		428,448,042		$		1,828,889,640

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

In the first quarter of 2022 and 2021, the Company recognized an impairment loss of NT$790,740 thousand and NT$274,388 thousand for certain equipment under machinery and equipment that were assessed to have no future use, and the recoverable amounts of the aforementioned assets were nil. Such impairment loss was recognized in other operating income and expenses.

Information about capitalized interest is set out in Note 23.

15.LEASE ARRANGEMENTS

Right-of-use assets

	September 30, 2022			December 31, 2021			September 30, 2021

Carrying amounts

Land	$		39,025,511	$		29,778,636	$		30,082,601
Buildings		3,290,126			2,918,133			2,843,518
Machinery and equipment		3,298			3,474			3,701
Office equipment		30,808			34,294			31,277

	$		42,349,743	$		32,734,537	$		32,961,097

	Nine Months Ended September 30
	2022		2021

Additions to right-of-use assets	$	12,187,065	$	7,246,575

	Three Months Ended September 30						Nine Months Ended September 30
	2022			2021			2022			2021

Depreciation of right-of-use assets
Land	$		571,074	$		461,356	$		1,519,635	$		1,360,772
Buildings		247,566			186,874			697,566			497,503
Machinery and equipment		219			202			635			337
Office equipment		5,929			5,371			17,636			16,249

	$		824,788	$		653,803	$		2,235,472	$		1,874,861

Lease liabilities

	September 30, 2022			December 31, 2021			September 30, 2021

Carrying amounts

Current portion (classified under accrued expenses and other current liabilities)	$		2,564,228	$		2,176,451	$		2,075,629
Noncurrent portion		30,182,353			20,764,214			21,052,983

	$		32,746,581	$		22,940,665	$		23,128,612

Ranges of discount rates for lease liabilities are as follows:

	September 30, 2022	December 31, 2021	September 30, 2021

Land	0.39%-1.89%	0.39%-2.14%	0.39%-2.14%
Buildings	0.39%-3.88%	0.39%-3.88%	0.39%-3.88%
Machinery and equipment	0.71%	0.71%	0.71%
Office equipment	0.28%-3.88%	0.28%-3.88%	0.28%-3.88%

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.

Other lease information

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021

Expenses relating to short-term leases	$	1,181,261	$	1,295,891	$	3,499,639	$	3,884,773

	Nine Months Ended September 30
	2022		2021

Total cash outflow for leases	$	5,421,545	$	5,495,274

16.	INTANGIBLE ASSETS

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

Cost

Balance at January 1, 2022	$		5,379,164	$		23,533,959	$		43,650,957		$		11,497,309	$		84,061,389
Additions		-			2,257,739			3,431,703				185,092			5,874,534
Disposals or retirements		-			-			(55,727		)		-			(55,727		)
Effect of exchange rate changes		555,641			3,329			18,700				2,723			580,393

Balance at September 30, 2022	$		5,934,805	$		25,795,027	$		47,045,633		$		11,685,124	$		90,460,589

Accumulated amortization and impairment

Balance at January 1, 2022	$		-	$		14,912,293	$		34,121,578		$		8,205,821	$		57,239,692
Additions		-			2,076,582			3,583,345				890,230			6,550,157
Disposals or retirements		-			-			(55,727		)		-			(55,727		)
Effect of exchange rate changes		-			3,329			15,282				1,304			19,915

Balance at September 30, 2022	$		-	$		16,992,204	$		37,664,478		$		9,097,355	$		63,754,037

Carrying amounts at January 1, 2022	$		5,379,164	$		8,621,666	$		9,529,379		$		3,291,488	$		26,821,697
Carrying amounts at September 30, 2022	$		5,934,805	$		8,802,823	$		9,381,155		$		2,587,769	$		26,706,552

(Continued)

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

Cost

Balance at January 1, 2021	$		5,436,602		$		22,161,712		$		36,238,967		$		11,277,701	$		75,114,982
Additions		-				1,350,950				4,599,668				90,702			6,041,320
Disposals or retirements		-				-				(21,134		)		-			(21,134		)
Effect of exchange rate changes		(31,638		)		(326		)		1,420				140			(30,404		)

Balance at September 30, 2021	$		5,404,964		$		23,512,336		$		40,818,921		$		11,368,543	$		81,104,764

Accumulated amortization and impairment

Balance at January 1, 2021	$		-		$		12,226,066		$		30,111,759		$		7,008,978	$		49,346,803
Additions		-				2,004,389				3,226,688				902,365			6,133,442
Disposals or retirements		-				-				(19,906		)		-			(19,906		)
Effect of exchange rate changes		-				(326		)		733				104			511

Balance at September 30, 2021	$		-		$		14,230,129		$		33,319,274		$		7,911,447	$		55,460,850

Carrying amounts at January 1, 2021	$		5,436,602		$		9,935,646		$		6,127,208		$		4,268,723	$		25,768,179
Carrying amounts at September 30, 2021	$		5,404,964		$		9,282,207		$		7,499,647		$		3,457,096	$		25,643,914

(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 8.0% in its test of impairment as of December 31, 2021 to reflect the relevant specific risk in the cash-generating unit.

17.	SHORT-TERM LOANS

	December 31, 2021			September 30, 2021

Unsecured loans
Amount	$		114,921,333	$		118,844,065

Loan content
EUR (in thousands)	$		3,652,935	$		3,496,802
JPY (in thousands)		-			21,500,000
Annual interest rate		(0.73)%-0%			(0.25)%-0.15%
Maturity date			Due by June 2022			Due by March2022

18.	BONDS PAYABLE

	September 30, 2022				December 31, 2021				September 30, 2021

Domestic unsecured bonds	$		375,832,000		$		312,448,000		$		279,828,000
Overseas unsecured bonds		492,373,000				304,414,000				181,116,000
Less: Discounts on bonds payable		(3,318,529		)		(2,391,348		)		(1,210,552		)
Less: Current portion		(22,500,000		)		(4,400,000		)		-

	$		842,386,471		$		610,070,652		$		459,733,448

The Company issued domestic unsecured bonds for the nine months ended September 30, 2022, the major terms are as follows:

Issuance

Tranche

Issuance Period

Total Amount

Coupon Rate

Repayment and Interest Payment

NT$ unsecured

bonds

111-1
(Green bond)

January 2022 to January 2027

2,100,000

0.63%

Bullet repayment; interest payable annually

January 2022 to January 2029

3,300,000

0.72%

The same as above

111-2

March 2022 to September 2026

3,000,000

0.84%

The same as above

March 2022 to March 2027

9,600,000

0.85%

The same as above

March 2022 to March 2029

1,600,000

0.90%

The same as above

111-3
(Green bond)

May 2022 to May 2027

6,100,000

1.50%

The same as above

111-4
(Green bond)

July 2022 to July 2026

1,200,000

1.60%

The same as above

July 2022 to July 2027

10,100,000

1.70%

The same as above

July 2022 to July 2029

1,200,000

1.75%

The same as above

July 2022 to July 2032

1,400,000

1.95%

The same as above

111-5

August 2022 to June 2027

2,000,000

1.65%

The same as above

August 2022 to August 2027

8,900,000

1.65%

The same as above

August 2022 to August 2029

2,200,000

1.65%

The same as above

August 2022 to August 2032

2,500,000

1.82%

The same as above

The major terms of overseas unsecured bonds are as follows:

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

September 2020 to September 2025	US$		1,000,000		0.75%	Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually
September 2020 to September 2027		750,000			1.00%	The same as above

(Continued)

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

September 2020 to September 2030	US$		1,250,000		1.375%	Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually
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

(Concluded)

The company issued domestic unsecured bonds during the period from October 1, 2022 to November 8, 2022, the major terms are as follows:

Issuance

Tranche

Issuance Period

Total Amount

Coupon Rate

Repayment and Interest Payment

NT$ unsecured

bonds

111-6
(Green bond)

October 2022 to October 2027

5,700,000

1.75%

Bullet repayment; interest payable annually

October 2022 to October 2029

1,000,000

1.80%

The same as above

October 2022 to October 2032

3,500,000

2.00%

The same as above

19.	LONG-TERM BANK LOANS

	September 30, 2022				December 31, 2021				September 30, 2021

Unsecured loans	$		4,010,000		$		3,510,000		$		3,510,000
Less: Discounts on government grants		(28,155		)		(34,202		)		(37,810		)
Less: Current portion		(926,667		)		(166,667		)		-

	$		3,055,178		$		3,309,131		$		3,472,190

Loan content
Annual interest rate		0.40%-1.10%				0.40%-0.90%				0.40%-0.90%
Maturity date			Due by May 2027				Due by September 2026				Due by September 2026

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

20.

EQUITY

Capital stock

	September 30, 2022		December 31, 2021		September 30, 2021

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)		25,930,380		25,930,380		25,930,380
Issued capital	$	259,303,805	$	259,303,805	$	259,303,805

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

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

On March 1, 2022, the Company issued employee restricted stocks awards (RSAs) for its employees in a total of 1,387 thousand shares with a par value of NT$10 each. The aforementioned issuance of new shares was approved by the relevant authority and the registration has been completed. Refer to Note 27 for the information on RSAs.

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

As of the end of reporting period, 1,063,995 thousand ADSs of TSMC were traded on the NYSE. The number of common shares represented by the ADSs was 5,319,976 thousand shares (one ADS represents five common shares).

Capital surplus

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

	September 30, 2022			December 31, 2021			September 30, 2021

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

Additional paid-in capital	$		24,183,645	$		24,184,939	$		24,184,939
From merger		22,803,291			22,804,510			22,804,510
From convertible bonds		8,892,371			8,892,847			8,892,847
From difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal		8,406,282			8,406,282			8,406,282
Donations – donated by shareholders		11,275			11,275			11,275

May only be used to offset a deficit

From share of changes in equities of subsidiaries		4,231,119			113,952			114,865
From share of changes in equities of associates		309,904			307,322			302,843
Donations – unclaimed dividend		40,475			40,475			29,303

May not be used for any purpose

Employee restricted shares		438,029			-			-

	$		69,316,391	$		64,761,602	$		64,746,864

If such capital surplus is distributed as transferred to share capital, it is limited to a certain percentage of the Company’s capital surplus and to once a year.

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 the 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 additional special capital reserve equivalent to the net debit balance of the other components of stockholders’ equity, such as the accumulated balance of foreign currency translation reserve, 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 2022, 2021 and 2020 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 2022			of 2022			of 2022
Board of Directors in its	November 8,			August 9,			May 10,
meeting	2022			2022			2022

Special capital reserve	$	(31,910,353	)	$	(12,002,798	)	$	(15,541,054	)
Cash dividends to shareholders	$	71,308,547		$	71,308,546		$	71,308,546
Cash dividends per share (NT$)	$	2.75		$	2.75		$	2.75

	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Resolution Date of TSMC’s	of 2021		of 2021		of 2021		of 2021
Board of Directors in its	February 15,		November 9,		August 10,		June 9,
meeting	2022		2021		2021		2021

Special capital reserve	$	3,304,303	$	710,169	$	10,201,220	$	(6,287,050	)
Cash dividends to shareholders	$	71,308,546	$	71,308,547	$	71,308,546	$	71,308,546
Cash dividends per share (NT$)	$	2.75	$	2.75	$	2.75	$	2.75

	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Resolution Date of TSMC’s	of 2020		of 2020		of 2020		of 2020
Board of Directors in its	February 9,		November 10,		August 11,		May 12,
meeting	2021		2020		2020		2020

Special capital reserve	$	12,420,727	$	5,501,351	$	11,884,457	$	(2,694,841	)
Cash dividends to shareholders	$	64,825,951	$	64,825,951	$	64,825,951	$	64,825,951
Cash dividends per share (NT$)	$	2.5	$	2.5	$	2.5	$	2.5

Others

Changes in others were as follows:

	Nine Months Ended September 30, 2022
	Foreign Currency Translation Reserve				Unrealized Gain (Loss) on Financial Assets at FVTOCI				Gain (Loss) on Hedging Instruments			Unearned Stock-Based Employee Compensation			Total

Balance, beginning of period	$		(63,303,361	)	$		574,310		$		120,536	$		-	$		(62,608,515	)
Exchange differences arising on translation of foreign operations		68,767,824				-				-			-			68,767,824
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments		-				69,040				-			-			69,040
Debt instruments		-				(11,609,864		)		-			-			(11,609,864		)
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal		-				(98,209		)		-			-			(98,209		)
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal		-				346,125				-			-			346,125

(Continued)

	Nine Months Ended September 30, 2022
	Foreign Currency Translation Reserve			Unrealized Gain (Loss) on Financial Assets at FVTOCI				Gain (Loss) on Hedging Instruments				Unearned Stock-Based Employee Compensation				Total

Loss allowance adjustments from debt instruments	$		-	$		553		$		-		$		-		$		553
Gain (loss) arising on changes in the fair value of hedging instruments		-			-				1,347,573				-				1,347,573
Transferred to initial carrying amount of hedged items		-			-				(43,027		)		-				(43,027		)
Issuance of shares		-			-				-				(451,899		)		(451,899		)
Share-based payment expenses recognized		-			-				-				186,722				186,722
Share of other comprehensive income (loss) of associates		591,374			(13,234		)		89,752				-				667,892
Income tax effect		-			262				6,036				-				6,298

Balance, end of period	$		6,055,837	$		(10,731,017	)	$		1,520,870		$		(265,177	)	$		(3,419,487	)

(Concluded)

	Nine Months Ended September 30, 2021
	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	$		(57,001,627	)	$		2,321,754		$		-		$		-	$		(54,679,873	)
Exchange differences arising on translation of foreign operations		(3,636,881		)		-				-				-			(3,636,881		)
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments		-				1,080,237				-				-			1,080,237
Debt instruments		-				(2,027,175		)		-				-			(2,027,175		)
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal		-				277,155				-				-			277,155
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal		-				(183,349		)		-				-			(183,349		)
Loss allowance adjustments from debt instruments		-				561				-				-			561
Gain (loss) arising on changes in the fair value of hedging instruments		-				-				(41,416		)		-			(41,416		)
Transferred to initial carrying amount of hedged items		-				-				41,416				-			41,416
Share of other comprehensive income (loss) of associates		(100,543		)		24,838				(3,106		)		-			(78,811		)
Income tax effect		-				(56,076		)		-				-			(56,076		)

Balance, end of period	$		(60,739,051	)	$		1,437,945		$		(3,106	)	$		-	$		(59,304,212	)

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

Treasury stock

For TSMC’s shareholders’ interests, TSMC’s Board of Directors approved a share buyback program on February 15, 2022 to repurchase 1,387 thousand shares. TSMC has completed this share buyback program during the first quarter of 2022. On May 10, 2022, TSMC’s Board of Directors resolved to cancel the 1,387 thousand shares and set May 10, 2022 as the record date for capital reduction. The registration for share cancellation was completed on May 20, 2022.

21.	NET REVENUE

Disaggregation of revenue from contracts with customers

	Three Months Ended September 30						Nine Months Ended September 30
Product	2022			2021			2022			2021

Wafer	$		540,209,881	$		366,007,932	$		1,454,627,869	$		1,020,485,888
Others		72,932,862			48,662,447			183,731,555			128,739,843

	$		613,142,743	$		414,670,379	$		1,638,359,424	$		1,149,225,731

	Three Months Ended September 30						Nine Months Ended September 30
Geography	2022			2021			2022			2021

Taiwan	$		51,983,021	$		35,358,868	$		173,512,993	$		134,839,517
United States		432,369,098			279,297,136			1,072,532,079			735,474,816
China		48,832,450			51,893,832			171,635,229			130,133,265
Europe, the Middle East and Africa		31,192,872			21,956,800			87,590,071			66,979,067
Japan		29,592,683			18,218,572			81,396,101			52,599,321
Others		19,172,619			7,945,171			51,692,951			29,199,745

	$		613,142,743	$		414,670,379	$		1,638,359,424	$		1,149,225,731

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	2022			2021			2022			2021

Smartphone	$		251,069,572	$		180,649,835	$		648,625,225	$		501,602,527
High Performance Computing		238,237,286			155,629,734			669,423,118			426,864,135
Internet of Things		59,410,567			36,282,241			143,104,893			95,796,759
Automotive		31,203,686			17,186,114			81,976,301			48,187,568
Digital Consumer Electronics		14,900,562			13,204,541			44,625,094			42,159,242
Others		18,321,070			11,717,914			50,604,793			34,615,500

	$		613,142,743	$		414,670,379	$		1,638,359,424	$		1,149,225,731

	Three Months Ended September 30						Nine Months Ended September 30
Resolution	2022			2021			2022			2021

5-nanometer	$		148,812,933	$		66,930,524	$		335,834,446	$		173,733,470
7-nanometer		142,152,179			122,606,053			417,396,526			334,954,675
10-nanometer		4,480			14,701			17,837			643,187
16-nanometer		66,299,632			48,812,969			191,645,300			139,462,708
20-nanometer		2,124,614			1,203,472			6,409,003			3,734,272
28-nanometer		52,861,617			37,739,348			149,841,720			111,922,338
40/45-nanometer		37,855,129			27,233,876			108,326,372			74,029,676
65-nanometer		25,338,814			16,189,697			69,063,607			48,148,098
90-nanometer		11,311,235			6,998,277			31,089,564			24,753,997
0.11/0.13 micron		16,732,222			10,382,373			42,810,676			28,387,457
0.15/0.18 micron		29,754,752			22,268,008			82,486,441			63,875,473
0.25 micron and above		6,962,274			5,628,634			19,706,377			16,840,537

Wafer revenue	$		540,209,881	$		366,007,932	$		1,454,627,869	$		1,020,485,888

Contract balances

September 30,

2022

December 31,

2021

September 30,

2021

January 1,

2021

Contract liabilities (classified under accrued expenses and other current liabilities)

56,941,335

39,762,588

33,659,796

13,775,088

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$1,502,974 thousand and NT$492,255 thousand for the three months ended September 30, 2022 and 2021, respectively; and NT$37,198,089 thousand and NT$11,296,660 thousand for the nine months ended September 30, 2022 and 2021, respectively.

Temporary receipts from customers

	September 30, 2022			December 31, 2021			September 30, 2021

Current portion (classified under accrued expenses and other current liabilities)	$		97,843,204	$		30,612,702	$		16,200,130
Noncurrent portion (classified under other noncurrent liabilities)		190,225,981			155,381,485			90,128,894

	$		288,069,185	$		185,994,187	$		106,329,024

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.

22.INTEREST INCOME

	Three Months Ended September 30						Nine Months Ended September 30
	2022			2021			2022			2021

Interest income
Bank deposits	$		5,294,717	$		686,841	$		8,960,401	$		2,026,308
Financial assets at FVTOCI		670,317			509,785			1,812,928			1,685,252
Financial assets at amortized cost		650,010			159,918			1,061,539			534,569

	$		6,615,044	$		1,356,544	$		11,834,868	$		4,246,129

23.FINANCE COSTS

	Three Months Ended September 30							Nine Months Ended September 30
	2022				2021			2022				2021

Interest expense
Corporate bonds	$		4,051,243		$		1,282,154	$		9,781,682		$		3,080,458
Lease liabilities		85,705				47,895			183,008				144,822
Bank loans		6,882				3,924			21,527				15,017
Others		328				90			503				260
Less: Capitalized interest under property, plant and equipment		(774,140		)		-			(1,571,705		)		-

	$		3,370,018		$		1,334,063	$		8,415,015		$		3,240,557

Information about capitalized interest is as follows:

Three Months Ended
September 30, 2022

Nine Months

Ended

September 30, 2022

Capitalization rate

0.84%-3.36%

0.56%-3.36%

24.	OTHER GAINS AND LOSSES, NET

	Three Months Ended September 30								Nine Months Ended September 30
	2022				2021				2022				2021

Gain (loss) on disposal of financial assets, net
Investments in debt instruments at FVTOCI	$		(100,974	)	$		14,015		$		(346,125	)	$		183,349
Gain (loss) on financial instruments at FVTPL, net
Mandatorily measured at FVTPL		4,884,964				(2,572,629		)		(2,537,012		)		(4,971,538		)
The reversal (accrual) of expected credit loss of financial assets
Investments in debt instruments at FVTOCI		(1,085		)		1,056				(553		)		(561		)
Financial assets at amortized cost		(9,319		)		906				(32,729		)		5,807
Other gains (losses), net		(102,252		)		(11,435		)		(82,705		)		261,693

	$		4,671,334		$		(2,568,087	)	$		(2,999,124	)	$		(4,521,250	)

25.	INCOME TAX

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
	2022				2021				2022				2021

Current income tax expense
Current tax expense recognized in the current period	$		40,291,507		$		22,861,314		$		103,055,761		$		62,738,892
Income tax adjustments on prior years		-				53,479				(523,244		)		211,922
Other income tax adjustments		55,481				40,188				142,285				110,074
		40,346,988				22,954,981				102,674,802				63,060,888
Deferred income tax benefit
The origination and reversal of temporary differences		(5,731,478		)		(4,150,348		)		(15,260,364		)		(11,388,659		)
Investment tax credits		1,106,950				(1,432,148		)		1,084,373				(4,064,745		)
		(4,624,528		)		(5,582,496		)		(14,175,991		)		(15,453,404		)

Income tax expense recognized in profit or loss	$		35,722,460		$		17,372,485		$		88,498,811		$		47,607,484

Income tax examination

The tax authorities have examined income tax returns of TSMC through 2020. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.

26.EARNINGS PER SHARE

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021

Basic EPS	$	10.83	$	6.03	$	27.79	$	16.59
Diluted EPS	$	10.83	$	6.03	$	27.79	$	16.59

EPS is computed as follows:

	Three Months Ended September 30						Nine Months Ended September 30
	2022			2021			2022			2021

Basic EPS
Net income available to common shareholders of the parent	$		280,865,780	$		156,258,287	$		720,626,072	$		430,307,722
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)		25,928,993			25,930,380			25,929,256			25,930,380
Basic EPS (in dollars)	$		10.83	$		6.03	$		27.79	$		16.59

(Continued)

	Three Months Ended September 30						Nine Months Ended September 30
	2022			2021			2022			2021

Diluted EPS
Net income available to common shareholders of the parent	$		280,865,780	$		156,258,287	$		720,626,072	$		430,307,722
Weighted average number of common shares outstanding used in the computation of basic EPS (in thousands)		25,928,993			25,930,380			25,929,256			25,930,380
Effects of all dilutive potential common shares		172			-			137			-
Weighted average number of common shares used in the computation of diluted EPS (in thousands)		25,929,165			25,930,380			25,929,393			25,930,380
Diluted EPS (in dollars)	$		10.83	$		6.03	$		27.79	$		16.59

(Concluded)

27.	SHARE-BASED PAYMENT ARRANGEMENTS

Equity-settled share-based payment-RSAs

The issuance of RSAs for year 2021 (2021 RSAs) of no more than 2,600 thousand common shares has been approved by TSMC’s shareholders’ meeting held on July 26, 2021. The grants will be made free of charge. Under the aforementioned resolution, TSMC’s Board of Directors approved the issuance of RSAs of 1,387 thousand shares. The grant date and the issuance date were both March 1, 2022.

Vesting conditions of the aforementioned arrangement are as follow:

The RSAs granted to key management personnel can only be vested if

●

the key management personnel remain employed by TSMC on the last date of each vesting period;

●

during the vesting period, the key management personnel may not breach any agreement with the TSMC or violate the TSMC’s work rules; and

●

certain key management personnel performance metrics and the TSMC’s business performance metrics are met.

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 the TSMC’s business performance metrics.

The maximum number of RSAs that may be vested in each year will be set as 110%, among which 100% will be subject to a calculation based on the 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 Committee’s evaluation of the 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%

Restrictions imposed on the key management personnel’ rights in the RSAs before the vesting conditions are fulfilled:

During each vesting period, no key management personnel 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 key management personnel’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.

Details of granted 2021 RSAs are as follows:

	Nine Months Ended September 30, 2022
	Number of Stocks (In Thousands)

Balance, beginning of period		-
Issuance of stocks		1,387

Balance, end of period		1,387

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

The 2021 RSAs is measured at fair value at grant date by using the binominal tree approach. Relevant information is as follows:

		March 1, 2022

Stock price at grant date (in dollars)		$604
Expected price volatility		25.34%-28.28%
Expected option life		1-3 years
Risk-free interest rate		0.57%

Refer to Note 28 for the compensation costs of the 2021 RSAs recognized by TSMC.

The issuance of RSAs for year 2022 (2022 RSAs) of no more than 3,065 thousand common shares has been approved by TSMC’s shareholders’ meeting held on June 8, 2022. The grants will be made free of charge.

Cash-settled share-based payment arrangements

On March 1, 2022, TSMC executed a compensation plan to grant 236 thousand units of employee cash-settled share-based payment arrangement. 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 2021 RSAs.

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

		Nine Months Ended September 30, 2022

Stock price at measurement date (in dollars)		$476.5
Expected price volatility		26.72%-30.73%
Expected option life		1-3 years
Risk-free interest rate		1.18%

Refer to Note 28 for the compensation costs of the cash-settled share-based payment recognized by TSMC. The liabilities under cash-settle share-based payment arrangement amounted to NT$23,537 thousands as of the end of reporting period.

28.	ADDITIONAL INFORMATION OF EXPENSES BY NATURE

	Three Months Ended September 30						Nine Months Ended September 30
	2022			2021			2022			2021

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

Recognized in cost of revenue	$		95,904,327	$		97,830,855	$		301,364,537	$		284,777,952
Recognized in operating expenses		7,239,604			7,057,572			21,752,204			20,673,474
Recognized in other operating income and expenses		3,288			13,317			5,478			147,371

	$		103,147,219	$		104,901,744	$		323,122,219	$		305,598,797

b.Amortization of intangible assets

Recognized in cost of revenue	$		1,536,479	$		1,468,312	$		4,548,103	$		4,150,177
Recognized in operating expenses		661,968			656,707			2,002,054			1,983,265

	$		2,198,447	$		2,125,019	$		6,550,157	$		6,133,442

	Three Months Ended September 30						Nine Months Ended September 30
	2022			2021			2022			2021

c.Employee benefits expenses

Post-employment benefits
Defined contribution plans	$		1,194,939	$		999,238	$		3,342,703	$		2,713,067
Defined benefit plans		52,626			48,112			157,187			144,344
		1,247,565			1,047,350			3,499,890			2,857,411
Share-based payments
Equity-settled		80,290			2,553			222,091			6,007
Cash-settled		7,536			-			24,835			-
		87,826			2,553			246,926			6,007

Other employee benefits		63,077,715			41,633,719			168,008,855			117,312,328

	$		64,413,106	$		42,683,622	$		171,755,671	$		120,175,746

Employee benefits expense summarized by function
Recognized in cost of revenue	$		37,344,903	$		25,364,310	$		100,859,986	$		71,684,550
Recognized in operating expenses		27,068,203			17,319,312			70,895,685			48,491,196

	$		64,413,106	$		42,683,622	$		171,755,671	$		120,175,746

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

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

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021

Profit sharing bonus to employees	$	16,771,157	$	9,326,508	$	43,031,392	$	25,685,342

TSMC’s profit sharing bonus to employees and compensation to directors for 2021 and 2020 had been approved by the Board of Directors of TSMC, as illustrated below:

	Years Ended December 31
	2021		2020
	February 15,		February 9,
Resolution Date of TSMC’s Board of Directors in its meeting	2022		2021

Profit sharing bonus to employees	$	35,601,449	$	34,753,184
Compensation to directors	$	487,537	$	509,753

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2021 and 2020, respectively.

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

29.CASH FLOW INFORMATION

Non-cash transactions

	Nine Months Ended September 30
	2022				2021

Additions of financial assets at FVTOCI	$		40,812,439		$		200,469,936
Changes in accrued expenses and other current liabilities		8,458,351				(5,028,178		)
Changes in other financial assets		(1,217		)		-

Payments for acquisition of financial assets at FVTOCI	$		49,269,573		$		195,441,758

Disposal of financial assets at FVTOCI	$		38,683,380		$		197,256,267
Changes in other financial assets		2,538,030				1,483,350

Proceeds from disposal of financial assets at FVTOCI	$		41,221,410		$		198,739,617

Additions of property, plant and equipment	$		747,936,092		$		577,677,778
Changes in other financial assets		5,599,717				761,893
Changes in payables to contractors and equipment suppliers		(6,733,136		)		25,241,444
Changes in accrued expenses and other current liabilities		596,789				-
Transferred to initial carrying amount of hedged items		-				(41,416		)
Capitalized interests		(1,571,705		)		-

Payments for acquisition of property, plant and equipment	$		745,827,757		$		603,639,699

Additions of intangible assets	$		5,874,534		$		6,041,320
Changes in other financial assets		7,584				2,700
Changes in accrued expenses and other current liabilities		(411,032		)		(366,495		)

Payments for acquisition of intangible assets	$		5,471,086		$		5,677,525

Reconciliation of liabilities arising from financing activities

								Non-cash Changes
	Balance as of January 1, 2022			Financing Cash Flow				Foreign Exchange Movement				Leases Modifications			Other Changes (Note)				Balance as of September 30, 2022

Short-term loans	$		114,921,333	$		(111,959,992	)	$		(2,372,053	)	$		-	$		(589,288	)	$		-
Bonds payable		614,470,652			187,690,399				62,510,018				-			215,402				864,886,471
Long-term bank loans		3,475,798			500,000				-				-			6,047				3,981,845
Lease liabilities		22,940,665			(1,941,321		)		147,704				11,416,525			183,008				32,746,581

Total	$		755,808,448	$		74,289,086		$		60,285,669		$		11,416,525	$		(184,831	)	$		901,614,897

								Non-cash Changes
	Balance as of January 1, 2021			Financing Cash Flow				Foreign Exchange Movement				Leases Modifications			Other Changes (Note)				Balance as of September 30, 2021

Short-term loans	$		88,559,026	$		37,530,131		$		(6,830,906	)	$		-	$		(414,186	)	$		118,844,065
Bonds payable		256,705,084			204,198,161				(1,272,285		)		-			102,488				459,733,448
Long-term bank loans		1,967,611			1,510,000				-				-			(5,421		)		3,472,190
Lease liabilities		22,388,674			(1,595,286		)		(47,830		)		2,238,232			144,822				23,128,612

Total	$		369,620,395	$		241,643,006		$		(8,151,021	)	$		2,238,232	$		(172,297	)	$		605,178,315

Note:

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

30.FINANCIAL INSTRUMENTS

Categories of financial instruments

	September 30, 2022			December 31, 2021			September 30, 2021

Financial assets
FVTPL (Note 1)	$		4,705,434	$		159,048	$		33,956
FVTOCI (Note 2)		139,040,137			129,607,052			131,158,674
Hedging financial assets		88,431			13,468			37,769
Amortized cost (Note 3)		1,695,094,039			1,283,715,674			1,055,535,934

	$		1,838,928,041	$		1,413,495,242	$		1,186,766,333

Financial liabilities
FVTPL (Note 4)	$		611,010	$		681,914	$		1,405,470
Hedging financial liabilities		-			9,642			-
Amortized cost (Note 5)		1,635,913,770			1,355,957,244			1,098,592,492

	$		1,636,524,780	$		1,356,648,800	$		1,099,997,962

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 and refundable deposits.

Note 4:

Held for trading.

Note 5:

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

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 Committees 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.

Market risk

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

Foreign currency risk

Substantially all the Company’s sales are denominated in U.S. dollars and over half of its capital expenditures 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, to protect against currency exchange rate risks associated with non-NT dollar-denominated assets and liabilities 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, 2022 and 2021, a hypothetical adverse foreign currency exchange rate change of 10% would have decreased its net income by NT$697,072 thousand and NT$542,268 thousand respectively, after taking into account hedges and offsetting positions.

Interest rate risk

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

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

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$4,065,956 thousand and NT$3,871,576 thousand for the nine months ended September 30, 2022 and 2021, respectively.

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

Other price risk

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

Assuming a hypothetical decrease of 10% in prices of the equity investments at the end of the reporting period for the nine months ended September 30, 2022 and 2021, the other comprehensive income would have decreased by NT$692,880 thousand and NT$567,419 thousand, respectively.

Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial losses to the Company. The Company is exposed to credit risks from operating activities, primarily accounts receivable, and from investing activities, primarily deposits, fixed-income investments

and other financial instruments with banks. Credit risk is managed separately for business related and financial related exposures. As of the end of the reporting period, the Company’s maximum credit risk exposure is equal to the carrying amount of financial assets.

Business related credit risk

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

As of September 30, 2022, December 31, 2021 and September 30, 2021, the Company’s ten largest customers accounted for 82%, 79% and 80% 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		0-0.9%
Doubtful	Credit rating is non-investment grade on valuation date	Lifetime expected credit loss-not credit impaired		-
In default	Credit rating is CC or below on valuation date	Lifetime expected credit loss-credit impaired		-
Write-off	There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery	Amount is written off		-

For the nine months ended September 30, 2022 and 2021, the expected credit loss increased NT$41,636 thousand and decreased NT$5,556 thousand, respectively. The changes were mainly due to increased investment amount and adjusted investment portfolio.

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, 2022

Non-derivative financial liabilities

Accounts payable (including related parties)	$		62,018,224		$		-	$		-	$		-	$		62,018,224
Payables to contractors and equipment suppliers		159,780,369				-			-			-			159,780,369
Accrued expenses and other current liabilities		206,908,541				-			-			-			206,908,541
Bonds payable		39,450,837				94,867,341			314,685,674			648,515,423			1,097,519,275
Long-term bank loans		963,041				2,601,517			524,867			-			4,089,425
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)		2,946,938				5,278,010			4,749,791			23,213,612			36,188,351
Others		-				191,095,118			3,581,616			-			194,676,734
		472,067,950				293,841,986			323,541,948			671,729,035			1,761,180,919

Derivative financial instruments

Forward exchange contracts
Outflows		170,881,226				-			-			-			170,881,226
Inflows		(175,119,667		)		-			-			-			(175,119,667		)
		(4,238,441		)		-			-			-			(4,238,441		)

	$		467,829,509		$		293,841,986	$		323,541,948	$		671,729,035	$		1,756,942,478

December 31, 2021

Non-derivative financial liabilities

Short-term loans	$		114,767,034		$		-	$		-	$		-	$		114,767,034
Accounts payable (including related parties)		48,722,789				-			-			-			48,722,789
Payables to contractors and equipment suppliers		145,742,148				-			-			-			145,742,148
Accrued expenses and other current liabilities		120,240,359				-			-			-			120,240,359
Bonds payable		13,580,628				42,801,397			191,458,126			506,504,958			754,345,109
Long-term bank loans		183,671				2,217,112			1,153,900			-			3,554,683
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)		2,371,568				3,896,249			3,385,295			14,649,235			24,302,347
Others		-				164,991,929			-			-			164,991,929
		445,608,197				213,906,687			195,997,321			521,154,193			1,376,666,398

Derivative financial instruments

Forward exchange contracts
Outflows		187,708,035				-			-			-			187,708,035
Inflows		(187,631,930		)		-			-			-			(187,631,930		)
		76,105				-			-			-			76,105

	$		445,684,302		$		213,906,687	$		195,997,321	$		521,154,193	$		1,376,742,503

(Continued)

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

September 30, 2021

Non-derivative financial liabilities

Short-term loans	$		118,660,406		$		-	$		-	$		-	$		118,660,406
Accounts payable (including related parties)		43,888,861				-			-			-			43,888,861
Payables to contractors and equipment suppliers		128,367,724				-			-			-			128,367,724
Accrued expenses and other current liabilities		103,426,537				-			-			-			103,426,537
Bonds payable		5,785,181				38,720,687			126,849,991			372,476,536			543,832,395
Long-term bank loans		17,021				2,086,920			1,454,963			-			3,558,904
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note)		2,272,985				3,796,655			3,390,634			15,056,590			24,516,864
Others		-				97,521,348			-			-			97,521,348
		402,418,715				142,125,610			131,695,588			387,533,126			1,063,773,039

Derivative financial instruments

Forward exchange contracts
Outflows		176,212,206				-			-			-			176,212,206
Inflows		(175,119,313		)		-			-			-			(175,119,313		)
		1,092,893				-			-			-			1,092,893

	$		403,511,608		$		142,125,610	$		131,695,588	$		387,533,126	$		1,064,865,932

(Concluded)

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

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

September 30, 2022

Lease liabilities	$	10,373,309	$	7,513,470	$	4,390,162	$	936,671	$	23,213,612

December 31, 2021

Lease liabilities	$	7,513,939	$	5,043,067	$	1,972,740	$	119,489	$	14,649,235

September 30, 2021

Lease liabilities	$	7,616,790	$	5,154,382	$	2,131,771	$	153,647	$	15,056,590

Fair value of financial instruments

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.

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, 2022
	Level 1			Level 2			Level 3			Total

Financial assets at FVTPL

Mandatorily measured at FVTPL
Forward exchange contracts	$		-	$		4,705,434	$		-	$		4,705,434

Financial assets at FVTOCI

Investments in debt instruments
Corporate bonds	$		-	$		66,420,737	$		-	$		66,420,737
Agency bonds/Agency mortgage-backed securities		-			29,713,881			-			29,713,881
Government bonds		20,139,588			87,094			-			20,226,682
Asset-backed securities		-			9,580,806			-			9,580,806
Investments in equity instruments
Non-publicly traded equity investments		-			-			6,784,978			6,784,978
Publicly traded stocks		267,316			-			-			267,316
Notes and accounts receivable, net		-			6,045,737			-			6,045,737

	$		20,406,904	$		111,848,255	$		6,784,978	$		139,040,137

Hedging financial assets

Fair value hedges
Interest rate futures contracts	$		88,431	$		-	$		-	$		88,431

Financial liabilities at FVTPL

Held for trading
Forward exchange contracts	$		-	$		611,010	$		-	$		611,010

	December 31, 2021
	Level 1			Level 2			Level 3			Total

Financial assets at FVTPL

Mandatorily measured at FVTPL
Forward exchange contracts	$		-	$		159,048	$		-	$		159,048

Financial assets at FVTOCI

Investments in debt instruments
Corporate bonds	$		-	$		57,253,161	$		-	$		57,253,161
Agency bonds/Agency mortgage-backed securities		-			32,070,114			-			32,070,114
Government bonds		21,267,002			78,792			-			21,345,794
Asset-backed securities		-			8,660,424			-			8,660,424
Investments in equity instruments
Non-publicly traded equity investments		-			-			5,887,892			5,887,892
Publicly traded stocks		189,758			-			-			189,758
Notes and accounts receivable, net		-			4,199,909			-			4,199,909

	$		21,456,760	$		102,262,400	$		5,887,892	$		129,607,052

Hedging financial assets

Cash flow hedges
Forward interest rate contracts	$		-	$		13,468	$		-	$		13,468

(Continued)

	December 31, 2021
	Level 1		Level 2		Level 3		Total

Financial liabilities at FVTPL

Held for trading
Forward exchange contracts	$	-	$	681,914	$	-	$	681,914

Hedging financial liabilities

Fair value hedges
Interest rate futures contracts	$	9,642	$	-	$	-	$	9,642

(Concluded)

	September 30, 2021
	Level 1			Level 2			Level 3			Total

Financial assets at FVTPL

Mandatorily measured at FVTPL
Forward exchange contracts	$		-	$		33,956	$		-	$		33,956

Financial assets at FVTOCI

Investments in debt instruments
Corporate bonds	$		-	$		58,340,908	$		-	$		58,340,908
Agency bonds/Agency mortgage-backed securities		-			33,836,903			-			33,836,903
Government bonds		22,399,723			80,026			-			22,479,749
Asset-backed securities		-			7,219,193			-			7,219,193
Investments in equity instruments
Non-publicly traded equity investments		-			-			5,729,779			5,729,779
Publicly traded stocks		59,125			-			-			59,125
Notes and accounts receivable, net		-			3,493,017			-			3,493,017

	$		22,458,848	$		102,970,047	$		5,729,779	$		131,158,674

Hedging financial assets

Fair value hedges
Interest rate futures contracts	$		37,769	$		-	$		-	$		37,769

Financial liabilities at FVTPL

Held for trading
Forward exchange contracts	$		-	$		1,405,470	$		-	$		1,405,470

Reconciliation of Level 3 fair value measurements of financial assets

The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTOCI. Reconciliations for the nine months ended September 30, 2022 and 2021 are as follows:

	Nine Months Ended September 30
	2022				2021

Balance, beginning of period	$		5,887,892		$		4,514,940
Additions		315,772				293,034
Recognized in other comprehensive income or loss		(11,606		)		1,071,721
Disposals and proceeds from return of capital of investments		-				(115,627		)
Transfers out of level 3 (Note)		(139,770		)		-
Effect of exchange rate changes		732,690				(34,289		)

Balance, end of period	$		6,784,978		$		5,729,779

Note:

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

Valuation techniques and assumptions used in Level 2 fair value measurement

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

●

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

●

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

●

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

Valuation techniques and assumptions used in Level 3 fair value measurement

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

The asset approach takes into account the net asset value measured at the fair value by independent parties. On September 30, 2022, December 31, 2021 and September 30, 2021, the Company uses unobservable inputs derived from discount for lack of marketability of 10%. When other inputs remain equal, the fair value will decrease by NT$56,247 thousand, NT$51,372 thousand and NT$47,821 thousand, respectively, if discounts for lack of marketability increase by 1%.

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

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, 2022
	Carrying			Level 2
	Amount			Fair Value

Financial assets

Financial assets at amortized costs
Corporate bonds	$		70,800,817	$		69,466,149
Commercial paper		43,404,235			43,517,466

	$		114,205,052	$		112,983,615

(Continued)

	September 30, 2022
	Carrying		Level 2
	Amount		Fair Value

Financial liabilities

Financial liabilities at amortized costs
Bonds payable	$	864,886,471	$	765,664,981

(Concluded)

	December 31, 2021
	Carrying		Level 2
	Amount		Fair Value

Financial assets

Financial assets at amortized costs
Corporate bonds	$	5,306,962	$	5,317,957

Financial liabilities

Financial liabilities at amortized costs
Bonds payable	$	614,470,652	$	613,514,692

	September 30, 2021
	Carrying		Level 2
	Amount		Fair Value
Financial assets

Financial assets at amortized costs
Corporate bonds	$	1,545,597	$	1,577,696

Financial liabilities

Financial liabilities at amortized costs
Bonds payable	$	459,733,448	$	454,886,671

Valuation techniques and assumptions used in Level 2 fair value measurement

The fair values of corporate bonds and the Company’s bonds payable 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:

Related party name and categories

Related Party Name		Related Party Categories

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

Net revenue

		Three Months Ended September 30				Nine Months Ended September 30
		2022		2021		2022		2021

Item	Related Party Categories

Net revenue from sale of goods	Associates	$	3,392,845	$	2,438,567	$	9,363,166	$	5,885,674

Purchases

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021

Related Party Categories

Associates	$	1,699,804	$	1,817,821	$	4,797,872	$	5,720,954

Receivables from related parties

		September 30, 2022			December 31, 2021			September 30, 2021

Item	Related Party Name

Receivables from	GUC	$		934,086	$		597,836	$		678,067
related parties	Xintec		157,088			117,488			181,077

		$		1,091,174	$		715,324	$		859,144

Other receivables	SSMC	$		70,674	$		50,375	$		49,304
	VIS		5,469			11,156			8,758
	TSMC Charity Foundation		-			-			15,028

		$		76,143	$		61,531	$		73,090

Payables to related parties

		September 30, 2022			December 31, 2021			September 30, 2021

Item	Related Party Name

Payables to related	Xintec	$		1,181,914	$		725,325	$		1,403,671
parties	SSMC		527,944			349,211			419,846
	VIS		141,586			357,151			305,298
	Others		19,375			5,499			26,813

		$		1,870,819	$		1,437,186	$		2,155,628

Accrued expenses and other current liabilities

		September 30, 2022		December 31, 2021		September 30, 2021

Item	Related Party Categories

Contract liabilities	Associates	$	837,482	$	726,350	$	523,538

Others

		Three Months Ended September 30				Nine Months Ended September 30
		2022		2021		2022		2021

Item	Related Party Categories

Manufacturing expenses	Associates	$	1,624,663	$	1,676,996	$	4,489,117	$	4,243,515

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.

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
	2022			2021			2022			2021

Short-term employee benefits	$		1,138,271	$		712,947	$		3,122,981	$		2,015,418
Post-employment benefits		698			746			2,373			2,241
Share-based payments		82,887			-			203,008			-

	$		1,221,856	$		713,693	$		3,328,362	$		2,017,659

The compensation to directors and other key management personnel were determined by the Compensation 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 construction, building lease agreements and energy purchase agreements. As of September 30, 2022, December 31, 2021 and September 30, 2021, the aforementioned other financial assets amounted to NT$131,995 thousand, NT$210,235 thousand and NT$262,147 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:

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.

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.

In September 2022, Daedalus Prime LLC (“Daedalus”) filed complaints in the U.S. International Trade Commission (“ITC”) and the U.S. District Court for the Eastern District of Texas alleging that TSMC, TSMC North America, and other companies infringe four U.S. patents. The ITC instituted an investigation in October 2022. The outcome cannot be determined and we cannot make a reliable estimate of the contingent liability at this time.

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

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

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

Amounts available under unused letters of credit as of September 30, 2022, December 31, 2021 and September 30, 2021 were NT$238,309 thousand, NT$136,710 thousand and NT$137,648 thousand, respectively.

The Company entrusted financial institutions to open performance guarantee mainly for import and export of goods, lease agreement and energy purchase agreement. As of September 30, 2022, December 31, 2021 and September 30, 2021, the aforementioned guarantee amounted to NT$7,603,958 thousand, NT$4,954,798 thousand, and NT$5,668,250 thousand, respectively.

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

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

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

September 30, 2022

Financial assets

Monetary items
USD	$	12,210,697		31.766		$	387,884,990
USD		712,465		7.093	(Note 2)		22,632,159
EUR		1,546		31.121			48,100
EUR		20,774		6.949	(Note 3)		646,523
JPY		93,019,566		0.2202			20,482,908
JPY		6,683,505		0.0492	(Note 4)		1,471,708

Financial liabilities

Monetary items
USD		14,953,889		31.766			475,025,231
EUR		1,180,147		31.121			36,727,345
JPY		93,842,663		0.2202			20,664,154
JPY		6,697,526		0.0492	(Note 4)		1,474,795

December 31, 2021

Financial assets

Monetary items
USD		11,445,396		27.674			316,739,883
USD		2,023,233		6.379	(Note 2)		55,990,951
EUR		14,964		31.460			470,776
EUR		40,326		7.252	(Note 3)		1,268,665
JPY		10,921,880		0.2414			2,636,542

Financial liabilities

Monetary items
USD		11,958,503		27.674			330,939,620
EUR		3,539,320		31.460			111,347,020
JPY		112,456,908		0.2414			27,147,098

(Continued)

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

September 30, 2021

Financial assets

Monetary items
USD	$	9,582,823		27.864		$	267,015,782
USD		1,772,067		6.463	(Note 2)		49,376,882
EUR		7,248		32.450			235,213
JPY		1,089,600		0.2499			272,291

Financial liabilities

Monetary items
USD		9,777,821		27.864			272,449,192
EUR		2,906,442		32.450			94,314,055
JPY		129,710,147		0.2499			32,414,566

(Concluded)

Note 1:

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

Note 2:

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

Note 3:

The exchange rate represents the number of RMB for which one Euro could be exchanged.

Note 4:

The exchange rate represents the number of RMB for which one Japanese yen 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, 2022 and 2021, 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.

35.	ADDITIONAL DISCLOSURES

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

Financings provided: See Table 1 attached;

Endorsement/guarantee provided: See Table 2 attached;

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

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

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

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

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

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

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

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

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

Information on investment in mainland China

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

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

Information of major shareholders

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

36.	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.

TABLE 1

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

FINANCINGS PROVIDED

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

(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 2)

Ending Balance

(Foreign Currencies in Thousands)

(Note 2)

Amount Actually Drawn

(Foreign Currencies in Thousands)

Interest Rate

Nature for Financing

Transaction Amounts

Reason for Financing

Allowance for Bad Debt

Collateral

Financing Limits for Each Borrowing Company

(Note 1)

Financing Company’s Total Financing Amount Limits

(Note 1)

Item

Value

TSMC China

TSMC Nanjing

Other receivables from related parties

Yes

(RMB

(US$

71,462,420

7,800,000

1,150,000

)

(RMB

(US$

71,462,420

7,800,000

1,150,000

)

(RMB

(US$

42,914,740

7,100,000

350,000

)

0.75%-1.50%

The need for short-term and long-term financing

Operating capital

85,372,028

Note 1:

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

Note 2:

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

- 54 -

TABLE 2

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

(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
No.	Endorsement/ Guarantee Provider	Name	Nature of Relationship							Ending Balance (Foreign Currencies in Thousands) (Note 3)			Amount Actually Drawn (US$ in Thousands)											Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries in Mainland China

0	TSMC	TSMC North America	Subsidiary	$		684,493,577	$ (US$	2,643,354 83,213	)	$ (US$	2,643,354 83,213	)	$ (US$	2,643,354 83,213	)	$		-		0.10%	$		684,493,577	Yes	No	No
		TSMC Global	Subsidiary		684,493,577		(US$	238,245,000 7,500,000	)	(US$	238,245,000 7,500,000	)	(US$	238,245,000 7,500,000	)		-			8.70%		684,493,577		Yes	No	No
		TSMC Arizona	Subsidiary		684,493,577		(US$	382,221,854 12,032,420	)	(US$	382,221,854 12,032,420	)	(US$	255,157,838 8,032,420	)		-			13.96%		684,493,577		Yes	No	No
1	TSMC Japan	TSMC JDC	The same parent company		314,009		(JPY	290,664 1,320,000	)	(JPY	290,664 1,320,000	)	(JPY	290,664 1,320,000	)		-			0.01%		314,009		No	No	No

Note 1:

The total amount of the endorsement/guarantee provided by TSMC to TSMC North America, TSMC Global and TSMC Arizona shall not exceed twenty-five percent (25%) of TSMC’s net worth.

Note 2:

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

Note 3:

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

- 55 -

TABLE 3

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

MARKETABLE SECURITIES HELD

September 30, 2022

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

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022												Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)				Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)				Note

TSMC	Commercial paper
	Taiwan Power Company	-	Financial assets at amortized cost		2,350	$		23,392,427			N/A	$		23,455,153
	CPC Corporation, Taiwan	-	〃		2,009		20,011,808				N/A		20,062,313

	Non-publicly traded equity investments
	United Industrial Gases Co., Ltd.	-	Financial assets at fair value through other comprehensive income		21,230		468,258				10		468,258
	Shin-Etsu Handotai Taiwan Co., Ltd.	-	〃		10,500		461,412				7		461,412
	Global Investment Holding Inc.	-	〃		10,442		97,930				6		97,930
	Crimson Asia Capital	-	〃		-		934				1		934

TSMC Partners	Non-publicly traded equity investments
	Shanghai Walden Venture Capital Enterprise	-	Financial assets at fair value through other comprehensive income		-	US$			36,414		6	US$			36,414
	China Walden Venture Investments II, L.P.	-	〃		-	US$			19,603		9	US$			19,603
	China Walden Venture Investments III, L.P.	-	〃		-	US$			13,397		4	US$			13,397
	Tela Innovations	-	〃		6,942		-				22		-
	Movella Inc.	-	〃		6,333		-				9		-

TSMC Global	Corporate bond
	Morgan Stanley	-	Financial assets at fair value through other comprehensive income		-	US$			76,812		N/A	US$			76,812
	Bank of America Corporation	-	〃		-	US$			75,386		N/A	US$			75,386
	Wells Fargo & Company	-	〃		-	US$			58,829		N/A	US$			58,829
	Citigroup Inc.	-	〃		-	US$			56,384		N/A	US$			56,384
	The Goldman Sachs Group, Inc.	-	〃		-	US$			49,532		N/A	US$			49,532
	JPMorgan Chase & Co.	-	〃		-	US$			45,415		N/A	US$			45,415
	Mitsubishi UFJ Financial Group, Inc.	-	〃		-	US$			32,568		N/A	US$			32,568
	AbbVie Inc.	-	〃		-	US$			28,393		N/A	US$			28,393
	Sumitomo Mitsui Financial Group, Inc.	-	〃		-	US$			27,427		N/A	US$			27,427
	HSBC Holdings plc	-	〃		-	US$			26,429		N/A	US$			26,429
	Banco Santander, S.A.	-	〃		-	US$			25,925		N/A	US$			25,925
	Metropolitan Life Global Funding I	-	〃		-	US$			24,226		N/A	US$			24,226
	Athene Global Funding	-	〃		-	US$			23,051		N/A	US$			23,051
	The Toronto-Dominion Bank	-	〃		-	US$			19,252		N/A	US$			19,252
	BNP Paribas SA	-	〃		-	US$			18,654		N/A	US$			18,654
	Nordea Bank Abp	-	〃		-	US$			18,095		N/A	US$			18,095
	Fédération des caisses Desjardins du Québec	-	〃		-	US$			17,934		N/A	US$			17,934
	Sumitomo Mitsui Trust Bank, Limited	-	〃		-	US$			17,030		N/A	US$			17,030
	Hyundai Capital America, Inc.	-	〃		-	US$			16,326		N/A	US$			16,326
	Guardian Life Global Funding	-	〃		-	US$			16,234		N/A	US$			16,234
	Mizuho Financial Group, Inc.	-	〃		-	US$			15,982		N/A	US$			15,982
	Principal Life Global Funding II	-	〃		-	US$			15,918		N/A	US$			15,918
	Deutsche Bank AG - New York Branch	-	〃		-	US$			15,817		N/A	US$			15,817

(Continued)

- 56 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	Lloyds Banking Group plc	-	Financial assets at fair value through other comprehensive income		-	US$	15,739		N/A	US$	15,739
	Volkswagen Group of America Finance, LLC	-	〃		-	US$	15,438		N/A	US$	15,438
	Oracle Corporation	-	〃		-	US$	15,299		N/A	US$	15,299
	Nationwide Building Society	-	〃		-	US$	15,133		N/A	US$	15,133
	NatWest Markets Plc	-	〃		-	US$	15,124		N/A	US$	15,124
	Bank of Montreal	-	〃		-	US$	14,981		N/A	US$	14,981
	Royal Bank of Canada	-	〃		-	US$	14,642		N/A	US$	14,642
	BPCE SA	-	〃		-	US$	14,521		N/A	US$	14,521
	Credit Suisse AG, New York Branch	-	〃		-	US$	14,517		N/A	US$	14,517
	Capital One Financial Corporation	-	〃		-	US$	13,936		N/A	US$	13,936
	ING Groep N.V.	-	〃		-	US$	13,805		N/A	US$	13,805
	NTT Finance Corporation	-	〃		-	US$	13,614		N/A	US$	13,614
	Svenska Handelsbanken AB (publ)	-	〃		-	US$	13,400		N/A	US$	13,400
	Société Générale Société anonyme	-	〃		-	US$	13,110		N/A	US$	13,110
	The Bank of Nova Scotia	-	〃		-	US$	12,744		N/A	US$	12,744
	Standard Chartered PLC	-	〃		-	US$	12,568		N/A	US$	12,568
	Protective Life Global Funding	-	〃		-	US$	12,436		N/A	US$	12,436
	Apple Inc.	-	〃		-	US$	12,184		N/A	US$	12,184
	Macquarie Group Limited	-	〃		-	US$	11,898		N/A	US$	11,898
	Toyota Motor Credit Corporation	-	〃		-	US$	11,535		N/A	US$	11,535
	UBS Group AG	-	〃		-	US$	11,299		N/A	US$	11,299
	Equitable Financial Life Global Funding	-	〃		-	US$	11,251		N/A	US$	11,251
	Banque Fédérative du Crédit Mutuel Société anonyme	-	〃		-	US$	11,126		N/A	US$	11,126
	National Securities Clearing Corporation	-	〃		-	US$	10,810		N/A	US$	10,810
	Barclays PLC	-	〃		-	US$	10,737		N/A	US$	10,737
	AT&T Inc.	-	〃		-	US$	10,383		N/A	US$	10,383
	S&P Global Inc.	-	〃		-	US$	10,082		N/A	US$	10,082
	Nomura Holdings, Inc.	-	〃		-	US$	10,014		N/A	US$	10,014
	Verizon Communications Inc.	-	〃		-	US$	9,578		N/A	US$	9,578
	Citizens Bank, National Association	-	〃		-	US$	9,262		N/A	US$	9,262
	Credit Agricole SA London Branch	-	〃		-	US$	9,125		N/A	US$	9,125
	U.S. Bancorp	-	〃		-	US$	9,006		N/A	US$	9,006
	Roper Technologies, Inc.	-	〃		-	US$	8,933		N/A	US$	8,933
	Equifax Inc.	-	〃		-	US$	8,839		N/A	US$	8,839
	Amazon.com, Inc.	-	〃		-	US$	8,761		N/A	US$	8,761
	Equinor ASA	-	〃		-	US$	8,757		N/A	US$	8,757
	Santander UK Group Holdings plc	-	〃		-	US$	8,519		N/A	US$	8,519
	Merck & Co., Inc.	-	〃		-	US$	8,518		N/A	US$	8,518
	Bristol-Myers Squibb Company	-	〃		-	US$	8,418		N/A	US$	8,418
	New York Life Global Funding	-	〃		-	US$	8,156		N/A	US$	8,156
	Enel Finance International N.V.	-	〃		-	US$	8,151		N/A	US$	8,151
	GSK Consumer Healthcare Capital US LLC	-	〃		-	US$	8,145		N/A	US$	8,145
	AIG Global Funding	-	〃		-	US$	8,119		N/A	US$	8,119
	American Express Company	-	〃		-	US$	7,908		N/A	US$	7,908
	Truist Financial Corporation	-	〃		-	US$	7,711		N/A	US$	7,711
	International Bank for Reconstruction and Development	-	〃		-	US$	7,624		N/A	US$	7,624
	KfW	-	〃		-	US$	7,523		N/A	US$	7,523
	Canadian Imperial Bank of Commerce	-	〃		-	US$	7,406		N/A	US$	7,406
	AstraZeneca Finance LLC	-	〃		-	US$	7,389		N/A	US$	7,389

(Continued)

- 57 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	UnitedHealth Group Incorporated	-	Financial assets at fair value through other comprehensive income		-	US$	7,387		N/A	US$	7,387
	Inter-American Development Bank	-	〃		-	US$	7,320		N/A	US$	7,320
	Suncorp-Metway Limited	-	〃		-	US$	7,297		N/A	US$	7,297
	Great-West Lifeco U.S. Finance 2020, Lp	-	〃		-	US$	7,209		N/A	US$	7,209
	Northwestern Mutual Global Funding	-	〃		-	US$	6,802		N/A	US$	6,802
	Chevron Corporation	-	〃		-	US$	6,792		N/A	US$	6,792
	Fidelity National Information Services, Inc.	-	〃		-	US$	6,536		N/A	US$	6,536
	Prudential Funding Corp.	-	〃		-	US$	6,496		N/A	US$	6,496
	John Deere Capital Corporation	-	〃		-	US$	6,400		N/A	US$	6,400
	AstraZeneca PLC	-	〃		-	US$	6,400		N/A	US$	6,400
	Cargill, Incorporated	-	〃		-	US$	6,342		N/A	US$	6,342
	Intuit Inc.	-	〃		-	US$	6,307		N/A	US$	6,307
	Fifth Third Bancorp	-	〃		-	US$	6,268		N/A	US$	6,268
	Roche Holdings, Inc.	-	〃		-	US$	6,262		N/A	US$	6,262
	Jackson National Life Global Funding	-	〃		-	US$	6,252		N/A	US$	6,252
	Daimler Trucks Finance North America LLC	-	〃		-	US$	6,247		N/A	US$	6,247
	Montpelier Re Holdings Ltd.	-	〃		-	US$	6,194		N/A	US$	6,194
	Danske Bank A/S	-	〃		-	US$	6,108		N/A	US$	6,108
	Ameren Corporation	-	〃		-	US$	5,863		N/A	US$	5,863
	Discover Bank (New Castle, Delaware)	-	〃		-	US$	5,840		N/A	US$	5,840
	Huntington Bancshares Incorporated	-	〃		-	US$	5,836		N/A	US$	5,836
	Exxon Mobil Corporation	-	〃		-	US$	5,739		N/A	US$	5,739
	Swedbank AB (publ)	-	〃		-	US$	5,698		N/A	US$	5,698
	Fox Corporation	-	〃		-	US$	5,621		N/A	US$	5,621
	ANZ New Zealand (Int'l) Limited	-	〃		-	US$	5,592		N/A	US$	5,592
	Exelon Corporation	-	〃		-	US$	5,524		N/A	US$	5,524
	Macquarie Bank Limited	-	〃		-	US$	5,517		N/A	US$	5,517
	Take-Two Interactive Software, Inc.	-	〃		-	US$	5,494		N/A	US$	5,494
	Scentre Group Trust 1	-	〃		-	US$	5,490		N/A	US$	5,490
	WPP Finance 2010	-	〃		-	US$	5,472		N/A	US$	5,472
	Huntington National Bank	-	〃		-	US$	5,417		N/A	US$	5,417
	WEC Energy Group, Inc.	-	〃		-	US$	5,383		N/A	US$	5,383
	Intercontinental Exchange, Inc.	-	〃		-	US$	5,327		N/A	US$	5,327
	UBS AG, London Branch	-	〃		-	US$	5,326		N/A	US$	5,326
	Pacific Life Global Funding II	-	〃		-	US$	5,311		N/A	US$	5,311
	The Charles Schwab Corporation	-	〃		-	US$	5,253		N/A	US$	5,253
	Alabama Power Company	-	〃		-	US$	5,228		N/A	US$	5,228
	Siemens Financieringsmaatschappij N.V.	-	〃		-	US$	5,218		N/A	US$	5,218
	ASB Bank Limited	-	〃		-	US$	5,195		N/A	US$	5,195
	Pioneer Natural Resources Company	-	〃		-	US$	5,174		N/A	US$	5,174
	Cox Communications, Inc.	-	〃		-	US$	5,108		N/A	US$	5,108
	Intel Corporation	-	〃		-	US$	4,973		N/A	US$	4,973
	Lowe's Companies, Inc.	-	〃		-	US$	4,968		N/A	US$	4,968
	Fiserv, Inc.	-	〃		-	US$	4,953		N/A	US$	4,953
	Five Corners Funding Trust	-	〃		-	US$	4,951		N/A	US$	4,951
	CVS Health Corporation	-	〃		-	US$	4,725		N/A	US$	4,725
	CGI Inc.	-	〃		-	US$	4,617		N/A	US$	4,617
	Thermo Fisher Scientific Inc.	-	〃		-	US$	4,565		N/A	US$	4,565
	Brookfield Finance Inc.	-	〃		-	US$	4,506		N/A	US$	4,506

(Continued)

- 58 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	Eversource Energy	-	Financial assets at fair value through other comprehensive income		-	US$	4,451		N/A	US$	4,451
	Virginia Electric and Power Company	-	〃		-	US$	4,430		N/A	US$	4,430
	DNB Bank ASA	-	〃		-	US$	4,379		N/A	US$	4,379
	NextEra Energy Capital Holdings, Inc.	-	〃		-	US$	4,371		N/A	US$	4,371
	W. P. Carey Inc.	-	〃		-	US$	4,348		N/A	US$	4,348
	HP Inc.	-	〃		-	US$	4,313		N/A	US$	4,313
	CenterPoint Energy, Inc.	-	〃		-	US$	4,290		N/A	US$	4,290
	Penske Truck Leasing Co., L.P.	-	〃		-	US$	4,228		N/A	US$	4,228
	Bank of New Zealand	-	〃		-	US$	4,221		N/A	US$	4,221
	Comcast Corporation	-	〃		-	US$	4,215		N/A	US$	4,215
	Mercedes-Benz Finance North America LLC	-	〃		-	US$	4,072		N/A	US$	4,072
	Brighthouse Financial Global Funding	-	〃		-	US$	4,048		N/A	US$	4,048
	Florida Power & Light Company	-	〃		-	US$	4,023		N/A	US$	4,023
	Korea Electric Power Corporation	-	〃		-	US$	3,994		N/A	US$	3,994
	Credit Suisse Group Funding (Guernsey) Limited	-	〃		-	US$	3,993		N/A	US$	3,993
	Dollar General Corporation	-	〃		-	US$	3,993		N/A	US$	3,993
	F&G Global Funding	-	〃		-	US$	3,960		N/A	US$	3,960
	7-Eleven, Inc.	-	〃		-	US$	3,946		N/A	US$	3,946
	Element Fleet Management Corp.	-	〃		-	US$	3,858		N/A	US$	3,858
	The Bank of New York Mellon Corporation	-	〃		-	US$	3,857		N/A	US$	3,857
	AvalonBay Communities, Inc.	-	〃		-	US$	3,809		N/A	US$	3,809
	CNO Global Funding	-	〃		-	US$	3,806		N/A	US$	3,806
	Coca-Cola Europacific Partners PLC	-	〃		-	US$	3,804		N/A	US$	3,804
	European Bank for Reconstruction and Development	-	〃		-	US$	3,798		N/A	US$	3,798
	Mondelez International, Inc.	-	〃		-	US$	3,671		N/A	US$	3,671
	Sprint Spectrum Co Llc	-	〃		-	US$	3,608		N/A	US$	3,608
	Appalachian Power Company	-	〃		-	US$	3,605		N/A	US$	3,605
	B.A.T. International Finance p.l.c.	-	〃		-	US$	3,542		N/A	US$	3,542
	V.F. Corporation	-	〃		-	US$	3,484		N/A	US$	3,484
	Public Storage	-	〃		-	US$	3,444		N/A	US$	3,444
	Monongahela Power Company	-	〃		-	US$	3,404		N/A	US$	3,404
	BorgWarner Inc.	-	〃		-	US$	3,399		N/A	US$	3,399
	Ryder System, Inc.	-	〃		-	US$	3,393		N/A	US$	3,393
	Welltower Inc.	-	〃		-	US$	3,391		N/A	US$	3,391
	Public Service Electric and Gas Company	-	〃		-	US$	3,367		N/A	US$	3,367
	Truist Bank	-	〃		-	US$	3,365		N/A	US$	3,365
	OGE Energy Corp.	-	〃		-	US$	3,358		N/A	US$	3,358
	HSBC Bank Canada	-	〃		-	US$	3,329		N/A	US$	3,329
	Kimco Realty Corporation	-	〃		-	US$	3,317		N/A	US$	3,317
	Diageo Capital plc	-	〃		-	US$	3,309		N/A	US$	3,309
	Ross Stores, Inc.	-	〃		-	US$	3,267		N/A	US$	3,267
	U.S. Bancorp.	-	〃		-	US$	3,185		N/A	US$	3,185
	SMBC Aviation Capital Finance DAC	-	〃		-	US$	3,181		N/A	US$	3,181
	Highmark Inc.	-	〃		-	US$	3,173		N/A	US$	3,173
	Credit Suisse Group AG	-	〃		-	US$	3,165		N/A	US$	3,165
	Dominion Energy, Inc.	-	〃		-	US$	3,165		N/A	US$	3,165
	Pfizer Inc.	-	〃		-	US$	3,150		N/A	US$	3,150
	Verisk Analytics, Inc.	-	〃		-	US$	3,146		N/A	US$	3,146
	Realty Income Corporation	-	〃		-	US$	3,121		N/A	US$	3,121

(Continued)

- 59 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	ERAC USA Finance LLC	-	Financial assets at fair value through other comprehensive income		-	US$	3,077		N/A	US$	3,077
	Anheuser-Busch Companies, LLC	-	〃		-	US$	3,025		N/A	US$	3,025
	Xcel Energy Inc.	-	〃		-	US$	3,023		N/A	US$	3,023
	ONE Gas, Inc.	-	〃		-	US$	3,009		N/A	US$	3,009
	Simon Property Group, L.P.	-	〃		-	US$	2,957		N/A	US$	2,957
	Gilead Sciences, Inc.	-	〃		-	US$	2,949		N/A	US$	2,949
	CNA Financial Corporation	-	〃		-	US$	2,946		N/A	US$	2,946
	The Western Union Company	-	〃		-	US$	2,943		N/A	US$	2,943
	Oncor Electric Delivery Company LLC	-	〃		-	US$	2,908		N/A	US$	2,908
	MPLX LP	-	〃		-	US$	2,906		N/A	US$	2,906
	Rio Tinto Finance (USA) Limited	-	〃		-	US$	2,877		N/A	US$	2,877
	Atmos Energy Corporation	-	〃		-	US$	2,870		N/A	US$	2,870
	Johnson & Johnson	-	〃		-	US$	2,860		N/A	US$	2,860
	Nestlé Holdings, Inc.	-	〃		-	US$	2,858		N/A	US$	2,858
	Avangrid, Inc.	-	〃		-	US$	2,849		N/A	US$	2,849
	Air Lease Corporation	-	〃		-	US$	2,837		N/A	US$	2,837
	Southern California Gas Company	-	〃		-	US$	2,824		N/A	US$	2,824
	National Bank of Canada	-	〃		-	US$	2,819		N/A	US$	2,819
	TORONTO-DOMINION BANK/THE	-	〃		-	US$	2,751		N/A	US$	2,751
	Coöperatieve Rabobank U.A.	-	〃		-	US$	2,730		N/A	US$	2,730
	PPL Electric Utilities Corporation	-	〃		-	US$	2,722		N/A	US$	2,722
	Parker-Hannifin Corporation	-	〃		-	US$	2,721		N/A	US$	2,721
	Baxalta Incorporated	-	〃		-	US$	2,720		N/A	US$	2,720
	Phillips 66	-	〃		-	US$	2,699		N/A	US$	2,699
	Novartis Capital Corporation	-	〃		-	US$	2,694		N/A	US$	2,694
	Amazon.com, Inc	-	〃		-	US$	2,677		N/A	US$	2,677
	Ameriprise Financial, Inc.	-	〃		-	US$	2,665		N/A	US$	2,665
	B.A.T Capital Corporation	-	〃		-	US$	2,634		N/A	US$	2,634
	Hewlett Packard Enterprise Company	-	〃		-	US$	2,628		N/A	US$	2,628
	Eastern Energy Gas Holdings, LLC	-	〃		-	US$	2,606		N/A	US$	2,606
	Ventas Realty, Limited Partnership	-	〃		-	US$	2,589		N/A	US$	2,589
	Chevron Phillips Chemical Company LLC	-	〃		-	US$	2,571		N/A	US$	2,571
	Mondelez International Holdings Netherlands B.V.	-	〃		-	US$	2,555		N/A	US$	2,555
	Public Service Enterprise Group Incorporated	-	〃		-	US$	2,546		N/A	US$	2,546
	Masco Corporation	-	〃		-	US$	2,468		N/A	US$	2,468
	GA Global Funding Trust	-	〃		-	US$	2,462		N/A	US$	2,462
	NBN Co Limited	-	〃		-	US$	2,442		N/A	US$	2,442
	Nuveen Finance, LLC	-	〃		-	US$	2,432		N/A	US$	2,432
	Baxter International Inc.	-	〃		-	US$	2,430		N/A	US$	2,430
	International Business Machines Corporation	-	〃		-	US$	2,426		N/A	US$	2,426
	M&T Bank Corporation	-	〃		-	US$	2,424		N/A	US$	2,424
	The PNC Financial Services Group, Inc.	-	〃		-	US$	2,417		N/A	US$	2,417
	Air Products and Chemicals, Inc.	-	〃		-	US$	2,414		N/A	US$	2,414
	Santander UK plc	-	〃		-	US$	2,412		N/A	US$	2,412
	Cigna Corporation	-	〃		-	US$	2,411		N/A	US$	2,411
	CRH America, Inc.	-	〃		-	US$	2,364		N/A	US$	2,364
	Pinnacle West Capital Corporation	-	〃		-	US$	2,362		N/A	US$	2,362
	AutoZone, Inc.	-	〃		-	US$	2,359		N/A	US$	2,359
	Bayer US Finance II LLC	-	〃		-	US$	2,354		N/A	US$	2,354

(Continued)

- 60 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	Southern California Edison Company	-	Financial assets at fair value through other comprehensive income		-	US$	2,349		N/A	US$	2,349
	CMS Energy Corporation	-	〃		-	US$	2,339		N/A	US$	2,339
	Workday, Inc.	-	〃		-	US$	2,312		N/A	US$	2,312
	American Electric Power Company, Inc.	-	〃		-	US$	2,300		N/A	US$	2,300
	Magellan Midstream Partners, L.P.	-	〃		-	US$	2,276		N/A	US$	2,276
	Georgia Power Company	-	〃		-	US$	2,265		N/A	US$	2,265
	Texas Instruments Incorporated	-	〃		-	US$	2,259		N/A	US$	2,259
	Shire Acquisitions Investments Ireland Designated Activity Company	-	〃		-	US$	2,257		N/A	US$	2,257
	Chevron U.S.A. Inc.	-	〃		-	US$	2,242		N/A	US$	2,242
	USAA Capital Corp.	-	〃		-	US$	2,230		N/A	US$	2,230
	O'Reilly Automotive, Inc.	-	〃		-	US$	2,221		N/A	US$	2,221
	Reynolds American Inc.	-	〃		-	US$	2,218		N/A	US$	2,218
	BOC Aviation Limited	-	〃		-	US$	2,217		N/A	US$	2,217
	Yara International ASA	-	〃		-	US$	2,208		N/A	US$	2,208
	RGA Global Funding	-	〃		-	US$	2,207		N/A	US$	2,207
	Crédit Agricole S.A.	-	〃		-	US$	2,203		N/A	US$	2,203
	National Australia Bank - New York Branch	-	〃		-	US$	2,194		N/A	US$	2,194
	NiSource Inc.	-	〃		-	US$	2,149		N/A	US$	2,149
	Berkshire Hathaway Inc.	-	〃		-	US$	2,139		N/A	US$	2,139
	Empower Finance 2020, LP	-	〃		-	US$	2,104		N/A	US$	2,104
	CNH Industrial Capital LLC	-	〃		-	US$	2,081		N/A	US$	2,081
	Union Pacific Corporation	-	〃		-	US$	2,070		N/A	US$	2,070
	Health Care Service Corporation, a Mutual Legal Reserve Company	-	〃		-	US$	2,044		N/A	US$	2,044
	DTE Energy Company	-	〃		-	US$	2,029		N/A	US$	2,029
	Georgia-Pacific LLC	-	〃		-	US$	2,015		N/A	US$	2,015
	Baidu, Inc.	-	〃		-	US$	1,997		N/A	US$	1,997
	The East Ohio Gas Company	-	〃		-	US$	1,992		N/A	US$	1,992
	General Electric Company	-	〃		-	US$	1,983		N/A	US$	1,983
	Mead Johnson Nutrition Company	-	〃		-	US$	1,959		N/A	US$	1,959
	Amphenol Corporation	-	〃		-	US$	1,955		N/A	US$	1,955
	The Sherwin-Williams Company	-	〃		-	US$	1,951		N/A	US$	1,951
	Reliance Standard Life Global Funding II	-	〃		-	US$	1,947		N/A	US$	1,947
	Magna International Inc.	-	〃		-	US$	1,946		N/A	US$	1,946
	Tucson Electric Power Company	-	〃		-	US$	1,918		N/A	US$	1,918
	Gulf Power Company	-	〃		-	US$	1,862		N/A	US$	1,862
	Olympus Corporation	-	〃		-	US$	1,848		N/A	US$	1,848
	Otis Worldwide Corporation	-	〃		-	US$	1,836		N/A	US$	1,836
	Shinhan Financial Group Co., Ltd.	-	〃		-	US$	1,780		N/A	US$	1,780
	Kinder Morgan, Inc.	-	〃		-	US$	1,772		N/A	US$	1,772
	DuPont de Nemours, Inc.	-	〃		-	US$	1,740		N/A	US$	1,740
	Mitsubishi Corporation	-	〃		-	US$	1,733		N/A	US$	1,733
	Sydney Airport Finance Company Pty Ltd	-	〃		-	US$	1,720		N/A	US$	1,720
	Caterpillar Financial Services Corporation	-	〃		-	US$	1,718		N/A	US$	1,718
	NBK SPC Limited	-	〃		-	US$	1,714		N/A	US$	1,714
	Kentucky Utilities Company	-	〃		-	US$	1,713		N/A	US$	1,713
	Wipro IT Services LLC	-	〃		-	US$	1,662		N/A	US$	1,662
	Evergy Kansas Central, Inc.	-	〃		-	US$	1,658		N/A	US$	1,658
	Infor, Inc.	-	〃		-	US$	1,655		N/A	US$	1,655

(Continued)

- 61 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	Enbridge Inc.	-	Financial assets at fair value through other comprehensive income		-	US$	1,652		N/A	US$	1,652
	Tyson Foods, Inc.	-	〃		-	US$	1,619		N/A	US$	1,619
	Quest Diagnostics Incorporated	-	〃		-	US$	1,599		N/A	US$	1,599
	Gulfstream Natural Gas System, L.L.C.	-	〃		-	US$	1,598		N/A	US$	1,598
	Burlington Northern Santa Fe, LLC	-	〃		-	US$	1,592		N/A	US$	1,592
	Berkshire Hathaway Energy Company	-	〃		-	US$	1,575		N/A	US$	1,575
	Raytheon Technologies Corporation	-	〃		-	US$	1,575		N/A	US$	1,575
	University of California	-	〃		-	US$	1,568		N/A	US$	1,568
	CSL Finance plc	-	〃		-	US$	1,563		N/A	US$	1,563
	NatWest Group plc	-	〃		-	US$	1,557		N/A	US$	1,557
	Walmart Inc.	-	〃		-	US$	1,548		N/A	US$	1,548
	Midwest Connector Capital Company LLC	-	〃		-	US$	1,545		N/A	US$	1,545
	eBay Inc.	-	〃		-	US$	1,515		N/A	US$	1,515
	UBS AG (LONDON BRANCH)	-	〃		-	US$	1,508		N/A	US$	1,508
	MetLife, Inc.	-	〃		-	US$	1,505		N/A	US$	1,505
	KEB Hana Bank	-	〃		-	US$	1,500		N/A	US$	1,500
	Elevance Health Inc.	-	〃		-	US$	1,497		N/A	US$	1,497
	Emerson Electric Co.	-	〃		-	US$	1,495		N/A	US$	1,495
	Westpac Banking Corporation	-	〃		-	US$	1,494		N/A	US$	1,494
	Glencore Funding LLC	-	〃		-	US$	1,483		N/A	US$	1,483
	APA Infrastructure Limited	-	〃		-	US$	1,476		N/A	US$	1,476
	Brookfield Finance LLC	-	〃		-	US$	1,473		N/A	US$	1,473
	CK Hutchison International (19) Limited	-	〃		-	US$	1,466		N/A	US$	1,466
	Commonwealth Bank of Australia	-	〃		-	US$	1,454		N/A	US$	1,454
	Microchip Technology Incorporated	-	〃		-	US$	1,452		N/A	US$	1,452
	Amcor Flexibles North America Inc.	-	〃		-	US$	1,448		N/A	US$	1,448
	NSTAR Electric Company	-	〃		-	US$	1,431		N/A	US$	1,431
	Marsh & McLennan Companies, Inc.	-	〃		-	US$	1,426		N/A	US$	1,426
	UBS Group Funding (Jersey) Ltd.	-	〃		-	US$	1,420		N/A	US$	1,420
	Duke Energy Florida, LLC	-	〃		-	US$	1,411		N/A	US$	1,411
	Marathon Petroleum Corporation	-	〃		-	US$	1,406		N/A	US$	1,406
	The Southern Company	-	〃		-	US$	1,396		N/A	US$	1,396
	Essex Portfolio, L.P.	-	〃		-	US$	1,376		N/A	US$	1,376
	Alimentation Couche-Tard Inc.	-	〃		-	US$	1,353		N/A	US$	1,353
	ITC Holdings Corp.	-	〃		-	US$	1,346		N/A	US$	1,346
	National Rural Utilities Cooperative Finance Corporation	-	〃		-	US$	1,345		N/A	US$	1,345
	Eastern Gas Transmission and Storage, Inc.	-	〃		-	US$	1,302		N/A	US$	1,302
	Alliant Energy Finance, LLC	-	〃		-	US$	1,300		N/A	US$	1,300
	Entergy Arkansas, LLC	-	〃		-	US$	1,268		N/A	US$	1,268
	NetApp, Inc.	-	〃		-	US$	1,261		N/A	US$	1,261
	PACCAR Financial Corp.	-	〃		-	US$	1,217		N/A	US$	1,217
	State Of Tennessee	-	〃		-	US$	1,217		N/A	US$	1,217
	Andrew W. Mellon Foundation, The	-	〃		-	US$	1,211		N/A	US$	1,211
	Met Tower Global Funding	-	〃		-	US$	1,207		N/A	US$	1,207
	American Honda Finance Corporation	-	〃		-	US$	1,163		N/A	US$	1,163
	Banco Bilbao Vizcaya Argentaria, S.A.	-	〃		-	US$	1,151		N/A	US$	1,151
	Corebridge Financial, Inc.	-	〃		-	US$	1,143		N/A	US$	1,143
	Skandinaviska Enskilda Banken AB (publ)	-	〃		-	US$	1,083		N/A	US$	1,083
	The Curators of the University of Missouri	-	〃		-	US$	1,080		N/A	US$	1,080

(Continued)

- 62 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	Ferguson Finance PLC	-	Financial assets at fair value through other comprehensive income		-	US$	1,060		N/A	US$	1,060
	Nucor Corporation	-	〃		-	US$	1,057		N/A	US$	1,057
	Baker Hughes Holdings LLC	-	〃		-	US$	1,031		N/A	US$	1,031
	State Street Corporation	-	〃		-	US$	1,026		N/A	US$	1,026
	Enterprise Products Operating LLC	-	〃		-	US$	1,025		N/A	US$	1,025
	IBERDROLA INTL BV	-	〃		-	US$	1,022		N/A	US$	1,022
	The Cleveland Electric Illuminating Company	-	〃		-	US$	1,005		N/A	US$	1,005
	Texas Eastern Transmission, LP	-	〃		-	US$	999		N/A	US$	999
	Foxconn (Far East) Limited	-	〃		-	US$	997		N/A	US$	997
	Sinopec Group Overseas Development (2014) Ltd.	-	〃		-	US$	996		N/A	US$	996
	Baltimore Gas and Electric Company	-	〃		-	US$	992		N/A	US$	992
	BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México	-	〃		-	US$	988		N/A	US$	988
	Entergy Mississippi, LLC	-	〃		-	US$	987		N/A	US$	987
	Board of Regents, State of Iowa	-	〃		-	US$	980		N/A	US$	980
	MassMutual Global Funding II	-	〃		-	US$	979		N/A	US$	979
	Denver City & County Housing Authority	-	〃		-	US$	974		N/A	US$	974
	Pricoa Global Funding I	-	〃		-	US$	951		N/A	US$	951
	Kansas City Southern	-	〃		-	US$	936		N/A	US$	936
	Suntory Holdings Limited	-	〃		-	US$	935		N/A	US$	935
	Aflac Incorporated	-	〃		-	US$	878		N/A	US$	878
	American International Group, Inc.	-	〃		-	US$	874		N/A	US$	874
	Unilever Capital Corporation	-	〃		-	US$	873		N/A	US$	873
	KeyBank National Association	-	〃		-	US$	858		N/A	US$	858
	QNB Finance Ltd.	-	〃		-	US$	853		N/A	US$	853
	AmerisourceBergen Corporation	-	〃		-	US$	827		N/A	US$	827
	Hormel Foods Corporation	-	〃		-	US$	814		N/A	US$	814
	BMW US Capital, LLC	-	〃		-	US$	801		N/A	US$	801
	BHP Billiton Finance (USA) Limited	-	〃		-	US$	798		N/A	US$	798
	Sinopec Capital (2013) Ltd.	-	〃		-	US$	793		N/A	US$	793
	Palm Beach County, Florida	-	〃		-	US$	789		N/A	US$	789
	TransCanada PipeLines Limited	-	〃		-	US$	784		N/A	US$	784
	Oregon Health & Science University	-	〃		-	US$	771		N/A	US$	771
	Tencent Holdings Limited	-	〃		-	US$	747		N/A	US$	747
	Niagara Mohawk Power Corporation	-	〃		-	US$	745		N/A	US$	745
	The Walt Disney Company	-	〃		-	US$	734		N/A	US$	734
	CubeSmart, L.P.	-	〃		-	US$	724		N/A	US$	724
	Southern Power Company	-	〃		-	US$	710		N/A	US$	710
	Visa Inc.	-	〃		-	US$	707		N/A	US$	707
	Canadian Natural Resources Limited	-	〃		-	US$	693		N/A	US$	693
	Sky Limited	-	〃		-	US$	683		N/A	US$	683
	PayPal Holdings, Inc.	-	〃		-	US$	668		N/A	US$	668
	Hyundai Capital Services, Inc.	-	〃		-	US$	655		N/A	US$	655
	Abbott Laboratories	-	〃		-	US$	643		N/A	US$	643
	Norsk Hydro ASA	-	〃		-	US$	642		N/A	US$	642
	State Of Washington	-	〃		-	US$	640		N/A	US$	640
	Sodexo, Inc.	-	〃		-	US$	635		N/A	US$	635
	Stryker Corporation	-	〃		-	US$	629		N/A	US$	629
	Automatic Data Processing, Inc.	-	〃		-	US$	619		N/A	US$	619

(Continued)

- 63 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	Bell Canada, Inc.	-	Financial assets at fair value through other comprehensive income		-	US$	612		N/A	US$	612
	DH Europe Finance II S.a.r.l.	-	〃		-	US$	599		N/A	US$	599
	Intact U.S. Holdings Inc.	-	〃		-	US$	595		N/A	US$	595
	QUALCOMM Incorporated	-	〃		-	US$	590		N/A	US$	590
	Keurig Dr Pepper Inc.	-	〃		-	US$	589		N/A	US$	589
	Republic Services, Inc.	-	〃		-	US$	576		N/A	US$	576
	Lincoln National Corporation	-	〃		-	US$	572		N/A	US$	572
	Port of Morrow	-	〃		-	US$	565		N/A	US$	565
	Florida Hurricane Catastrophe Fund Finance Corporation	-	〃		-	US$	564		N/A	US$	564
	American Water Capital Corp.	-	〃		-	US$	555		N/A	US$	555
	Fifth Third Bank, National Association	-	〃		-	US$	546		N/A	US$	546
	Duke Energy Progress, LLC	-	〃		-	US$	544		N/A	US$	544
	Shell International Finance B.V.	-	〃		-	US$	523		N/A	US$	523
	ConocoPhillips Company	-	〃		-	US$	497		N/A	US$	497
	State of Hawaii	-	〃		-	US$	495		N/A	US$	495
	Arizona Public Service Company	-	〃		-	US$	492		N/A	US$	492
	United Parcel Service, Inc.	-	〃		-	US$	492		N/A	US$	492
	Gsk Consumer Healthcare Capital Uk Plc	-	〃		-	US$	473		N/A	US$	473
	Trane Technologies Luxembourg Finance S.A.	-	〃		-	US$	469		N/A	US$	469
	Ecolab Inc.	-	〃		-	US$	463		N/A	US$	463
	Genuine Parts Company	-	〃		-	US$	462		N/A	US$	462
	McCormick & Company, Incorporated	-	〃		-	US$	461		N/A	US$	461
	Altria Group, Inc.	-	〃		-	US$	459		N/A	US$	459
	DENSO Corporation	-	〃		-	US$	433		N/A	US$	433
	AIA Group Limited	-	〃		-	US$	432		N/A	US$	432
	Brazos Higher Education Authority Inc	-	〃		-	US$	427		N/A	US$	427
	The Home Depot, Inc.	-	〃		-	US$	403		N/A	US$	403
	Target Corporation	-	〃		-	US$	401		N/A	US$	401
	Aetna Inc.	-	〃		-	US$	394		N/A	US$	394
	National Australia Bank Limited	-	〃		-	US$	394		N/A	US$	394
	Boston Properties Limited Partnership	-	〃		-	US$	393		N/A	US$	393
	University of Massachusetts Building Authority	-	〃		-	US$	389		N/A	US$	389
	Comerica Bank	-	〃		-	US$	383		N/A	US$	383
	Entergy Corporation	-	〃		-	US$	374		N/A	US$	374
	Banco del Estado de Chile	-	〃		-	US$	373		N/A	US$	373
	Sierra Pacific Power Company	-	〃		-	US$	370		N/A	US$	370
	Duke Energy Corporation	-	〃		-	US$	369		N/A	US$	369
	McKesson Corporation	-	〃		-	US$	368		N/A	US$	368
	Honeywell International Inc.	-	〃		-	US$	368		N/A	US$	368
	PepsiCo, Inc.	-	〃		-	US$	355		N/A	US$	355
	NIKE, Inc.	-	〃		-	US$	355		N/A	US$	355
	Principal Financial Group, Inc.	-	〃		-	US$	348		N/A	US$	348
	First Republic Bank	-	〃		-	US$	346		N/A	US$	346
	The Norinchukin Bank	-	〃		-	US$	345		N/A	US$	345
	Aon Corporation	-	〃		-	US$	339		N/A	US$	339
	Rabobank Nederland - New York Branch	-	〃		-	US$	331		N/A	US$	331
	Amgen Inc.	-	〃		-	US$	308		N/A	US$	308
	Philip Morris International Inc.	-	〃		-	US$	296		N/A	US$	296
	Mid-America Apartments, L.P.	-	〃		-	US$	291		N/A	US$	291

(Continued)

- 64 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	Alabama State Federal Aid Highway Finance Authority	-	Financial assets at fair value through other comprehensive income		-	US$	290		N/A	US$	290
	The Allstate Corporation	-	〃		-	US$	288		N/A	US$	288
	TotalEnergies Capital International	-	〃		-	US$	285		N/A	US$	285
	BOC Aviation (USA) Corporation	-	〃		-	US$	283		N/A	US$	283
	Salesforce, Inc.	-	〃		-	US$	280		N/A	US$	280
	Aptiv PLC	-	〃		-	US$	279		N/A	US$	279
	Johnson Controls International plc	-	〃		-	US$	269		N/A	US$	269
	Barclays Bank PLC	-	〃		-	US$	269		N/A	US$	269
	Southern Natural Gas Company, L.L.C.	-	〃		-	US$	267		N/A	US$	267
	QatarEnergy	-	〃		-	US$	261		N/A	US$	261
	Sales Tax Securitization Corporation Of Chicago	-	〃		-	US$	249		N/A	US$	249
	Equitable Holdings, Inc.	-	〃		-	US$	243		N/A	US$	243
	Starbucks Corporation	-	〃		-	US$	236		N/A	US$	236
	E. I. du Pont de Nemours and Company	-	〃		-	US$	226		N/A	US$	226
	Waste Management, Inc.	-	〃		-	US$	221		N/A	US$	221
	Nasdaq, Inc.	-	〃		-	US$	218		N/A	US$	218
	Entergy Louisiana, LLC	-	〃		-	US$	217		N/A	US$	217
	Children's Hospital Of Orange County	-	〃		-	US$	212		N/A	US$	212
	The Pennsylvania State University	-	〃		-	US$	205		N/A	US$	205
	Martin Marietta Materials, Inc.	-	〃		-	US$	203		N/A	US$	203
	Riverside County Infrastructure Financing Authority	-	〃		-	US$	197		N/A	US$	197
	Saudi Arabian Oil Company	-	〃		-	US$	192		N/A	US$	192
	Los Angeles Department of Water and Power, California	-	〃		-	US$	191		N/A	US$	191
	Deere & Company	-	〃		-	US$	191		N/A	US$	191
	NongHyup Bank	-	〃		-	US$	186		N/A	US$	186
	San Francisco Public Utilities Commission	-	〃		-	US$	180		N/A	US$	180
	Hoover Alabama Board Of Education	-	〃		-	US$	174		N/A	US$	174
	Dormitory Authority of the State of New York	-	〃		-	US$	152		N/A	US$	152
	Oregon Education Districts	-	〃		-	US$	151		N/A	US$	151
	Electricité de France S.A.	-	〃		-	US$	96		N/A	US$	96
	Beth Israel Deaconess Medical Center, Inc.	-	〃		-	US$	84		N/A	US$	84
	Municipal Improvement Corporation of Los Angeles	-	〃		-	US$	80		N/A	US$	80
	Pima County, Arizona	-	〃		-	US$	75		N/A	US$	75
	State of Wisconsin	-	〃		-	US$	61		N/A	US$	61
	Huntington Beach California	-	〃		-	US$	49		N/A	US$	49
	City of Worcester, MA	-	〃		-	US$	30		N/A	US$	30
	Nueces County	-	〃		-	US$	24		N/A	US$	24
	Bank of America Corporation	-	Financial assets at amortized cost		-	US$	365,654		N/A	US$	360,738
	The Goldman Sachs Group, Inc.	-	〃		-	US$	340,683		N/A	US$	335,408
	Citigroup Global Markets Inc.	-	〃		-	US$	249,919		N/A	US$	243,346
	JPMorgan Chase & Co.	-	〃		-	US$	205,628		N/A	US$	202,660
	Wells Fargo & Company	-	〃		-	US$	189,392		N/A	US$	185,987
	Citigroup Global Markets Holdings Inc.	-	〃		-	US$	149,951		N/A	US$	144,379
	Goldman Sachs Finance Corp International Ltd.	-	〃		-	US$	149,870		N/A	US$	146,502
	Citigroup Inc.	-	〃		-	US$	106,012		N/A	US$	104,672
	Jpmorgan LLC	-	〃		-	US$	49,984		N/A	US$	49,072
	Morgan Stanley	-	〃		-	US$	30,237		N/A	US$	29,274
	Banco Bilbao Vizcaya Argentaria, S.A.	-	〃		-	US$	10,443		N/A	US$	10,314
	Hyundai Capital Services, Inc.	-	〃		-	US$	9,212		N/A	US$	9,065

(Continued)

- 65 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	Nomura Holdings, Inc.	-	Financial assets at amortized cost		-	US$	9,207		N/A	US$	8,982
	Fédération des caisses Desjardins du Québec	-	〃		-	US$	9,161		N/A	US$	8,918
	Great-West Lifeco U.S. Finance 2020, Lp	-	〃		-	US$	9,156		N/A	US$	8,897
	UBS Group AG	-	〃		-	US$	9,087		N/A	US$	8,923
	Sumitomo Mitsui Trust Bank, Limited	-	〃		-	US$	9,022		N/A	US$	8,845
	Deutsche Bank AG - New York Branch	-	〃		-	US$	8,981		N/A	US$	8,788
	Lloyds Banking Group plc	-	〃		-	US$	8,972		N/A	US$	8,822
	NatWest Markets Plc	-	〃		-	US$	8,933		N/A	US$	8,769
	Athene Global Funding	-	〃		-	US$	8,858		N/A	US$	8,710
	NongHyup Bank	-	〃		-	US$	8,473		N/A	US$	8,401
	BPCE SA	-	〃		-	US$	8,390		N/A	US$	8,167
	Banco Santander, S.A.	-	〃		-	US$	8,308		N/A	US$	8,058
	Enel Finance International N.V.	-	〃		-	US$	8,206		N/A	US$	7,995
	Ventas Realty, Limited Partnership	-	〃		-	US$	8,157		N/A	US$	8,029
	Protective Life Global Funding	-	〃		-	US$	8,065		N/A	US$	7,880
	Volkswagen Group of America Finance, LLC	-	〃		-	US$	8,012		N/A	US$	7,862
	Sydney Airport Finance Company Pty Ltd	-	〃		-	US$	7,607		N/A	US$	7,418
	BNP Paribas SA	-	〃		-	US$	7,541		N/A	US$	7,397
	Nationwide Building Society	-	〃		-	US$	7,161		N/A	US$	6,913
	AIG Global Funding	-	〃		-	US$	7,131		N/A	US$	7,058
	KeyBank National Association	-	〃		-	US$	7,016		N/A	US$	6,812
	GA Global Funding Trust	-	〃		-	US$	6,244		N/A	US$	6,139
	Canadian Imperial Bank of Commerce	-	〃		-	US$	6,162		N/A	US$	5,999
	Mitsubishi UFJ Financial Group, Inc.	-	〃		-	US$	6,049		N/A	US$	5,950
	CRH America, Inc.	-	〃		-	US$	5,970		N/A	US$	5,805
	Sumitomo Mitsui Financial Group, Inc.	-	〃		-	US$	5,709		N/A	US$	5,625
	Daimler Trucks Finance North America LLC	-	〃		-	US$	5,671		N/A	US$	5,541
	CREDIT SUISSE AG (NEW YORK BRANCH)	-	〃		-	US$	5,608		N/A	US$	5,505
	Swedbank AB (publ)	-	〃		-	US$	5,215		N/A	US$	5,119
	F&G Global Funding	-	〃		-	US$	5,183		N/A	US$	5,101
	Bayer US Finance II LLC	-	〃		-	US$	4,986		N/A	US$	4,915
	Ecolab Inc.	-	〃		-	US$	4,847		N/A	US$	4,791
	Credit Suisse AG, New York Branch	-	〃		-	US$	4,727		N/A	US$	4,597
	Kinder Morgan, Inc.	-	〃		-	US$	4,699		N/A	US$	4,646
	Jackson Financial Inc.	-	〃		-	US$	4,643		N/A	US$	4,601
	Bristol-Myers Squibb Company	-	〃		-	US$	4,640		N/A	US$	4,596
	ING Groep N.V.	-	〃		-	US$	4,507		N/A	US$	4,451
	Toyota Motor Credit Corporation	-	〃		-	US$	4,496		N/A	US$	4,452
	Five Corners Funding Trust	-	〃		-	US$	4,421		N/A	US$	4,350
	Svenska Handelsbanken AB (publ)	-	〃		-	US$	4,191		N/A	US$	4,112
	Danone S.A.	-	〃		-	US$	4,144		N/A	US$	4,108
	National Australia Bank - New York Branch	-	〃		-	US$	4,008		N/A	US$	3,980
	Société Générale Société anonyme	-	〃		-	US$	4,007		N/A	US$	3,957
	Mercedes-Benz Finance North America LLC	-	〃		-	US$	4,005		N/A	US$	3,982
	Mizuho Financial Group, Inc.	-	〃		-	US$	4,001		N/A	US$	3,983
	BMW US Capital, LLC	-	〃		-	US$	4,000		N/A	US$	3,979
	Penske Truck Leasing Co., L.P.	-	〃		-	US$	3,998		N/A	US$	3,959
	Georgia-Pacific LLC	-	〃		-	US$	3,995		N/A	US$	3,980
	Simon Property Group, L.P.	-	〃		-	US$	3,980		N/A	US$	3,952
	SMBC Aviation Capital Finance DAC	-	〃		-	US$	3,974		N/A	US$	3,950

(Continued)

- 66 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	Danske Bank A/S	-	Financial assets at amortized cost		-	US$	3,965		N/A	US$	3,911
	Philip Morris International Inc.	-	〃		-	US$	3,947		N/A	US$	3,926
	The Bank of Nova Scotia	-	〃		-	US$	3,884		N/A	US$	3,836
	Komatsu Finance America, Inc.	-	〃		-	US$	3,881		N/A	US$	3,851
	Nordea Bank Abp	-	〃		-	US$	3,789		N/A	US$	3,749
	Shire Acquisitions Investments Ireland Designated Activity Company	-	〃		-	US$	3,731		N/A	US$	3,692
	Georgia Power Company	-	〃		-	US$	3,537		N/A	US$	3,518
	Enbridge Inc.	-	〃		-	US$	3,399		N/A	US$	3,346
	Central Japan Railway Company	-	〃		-	US$	3,386		N/A	US$	3,350
	Jackson National Life Global Funding	-	〃		-	US$	3,321		N/A	US$	3,240
	Nestlé Holdings, Inc.	-	〃		-	US$	3,277		N/A	US$	3,245
	ANZ New Zealand (Int'l) Limited	-	〃		-	US$	3,177		N/A	US$	3,109
	Spectra Energy Partners, LP	-	〃		-	US$	2,826		N/A	US$	2,761
	Reliance Standard Life Global Funding II	-	〃		-	US$	2,659		N/A	US$	2,645
	Ryder System, Inc.	-	〃		-	US$	2,552		N/A	US$	2,525
	Southern California Edison Company	-	〃		-	US$	2,269		N/A	US$	2,254
	American Honda Finance Corporation	-	〃		-	US$	1,951		N/A	US$	1,926
	Oracle Corporation	-	〃		-	US$	885		N/A	US$	876
	Baxter International Inc.	-	〃		-	US$	777		N/A	US$	769
	Fidelity National Information Services, Inc.	-	〃		-	US$	591		N/A	US$	590
	Abbott Laboratories	-	〃		-	US$	362		N/A	US$	358
	Metropolitan Life Global Funding I	-	〃		-	US$	147		N/A	US$	145

	Government bond
	United States Department of The Treasury	-	Financial assets at fair value through other comprehensive income		-	US$	633,998		N/A	US$	633,998
	Emirate of Abu Dhabi	-	〃		-	US$	1,447		N/A	US$	1,447
	Qatar	-	〃		-	US$	1,295		N/A	US$	1,295

	Agency bonds/Agency mortgage-backed securities
	FEDERAL NATIONAL MORTGAGE ASSOCIATION	-	Financial assets at fair value through other comprehensive income		-	US$	480,057		N/A	US$	480,057
	Federal Home Loan Mortgage Corporation	-	〃		-	US$	275,758		N/A	US$	275,758
	Government National Mortgage Association	-	〃		-	US$	179,583		N/A	US$	179,583

	Asset-backed securities
	Hyundai Auto Receivables Trust 2021-C	-	Financial assets at fair value through other comprehensive income		-	US$	10,383		N/A	US$	10,383
	JPMBB Commercial Mortgage Securities Trust 2014-C24	-	〃		-	US$	9,638		N/A	US$	9,638
	BX Trust 2022-LBA6	-	〃		-	US$	9,617		N/A	US$	9,617
	Toyota Auto Receivables 2022-B Owner Trust	-	〃		-	US$	9,570		N/A	US$	9,570
	Wells Fargo Commercial Mortgage Trust 2016-Bnk1	-	〃		-	US$	8,876		N/A	US$	8,876
	Ford Credit Auto Owner Trust 2021-Rev2	-	〃		-	US$	7,331		N/A	US$	7,331
	Citigroup Commercial Mortgage Trust 2015-GC33	-	〃		-	US$	7,251		N/A	US$	7,251
	Ford Credit Auto Owner Trust 2020-REV2	-	〃		-	US$	6,538		N/A	US$	6,538
	Morgan Stanley Capital I Trust 2021-L6	-	〃		-	US$	6,127		N/A	US$	6,127
	Morgan Stanley Bank America Merrill Lynch Trust 2016-C30	-	〃		-	US$	6,031		N/A	US$	6,031
	Bank 2020-BNK26	-	〃		-	US$	5,676		N/A	US$	5,676
	Benchmark 2019-B11 Mortgage Trust	-	〃		-	US$	5,670		N/A	US$	5,670
	Hudson Yards 2016-10HY Mortgage Trust	-	〃		-	US$	5,620		N/A	US$	5,620
	Citigroup Commercial Mortgage Trust 2021-PRM2	-	〃		-	US$	5,413		N/A	US$	5,413

(Continued)

- 67 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	Wells Fargo Commercial Mortgage Trust 2016-C35	-	Financial assets at fair value through other comprehensive income		-	US$	5,317		N/A	US$	5,317
	Bank 2017-Bnk6	-	〃		-	US$	5,270		N/A	US$	5,270
	Bank 2021-bnk33	-	〃		-	US$	5,263		N/A	US$	5,263
	Benchmark 2019-B12 Mortgage Trust	-	〃		-	US$	5,221		N/A	US$	5,221
	BBCMS 2018-Tall Mortgage Trust	-	〃		-	US$	5,176		N/A	US$	5,176
	WFRBS Commercial Mortgage Trust 2013-C13	-	〃		-	US$	4,959		N/A	US$	4,959
	Morgan Stanley Bank America Merrill Lynch Trust 2013-C10	-	〃		-	US$	4,696		N/A	US$	4,696
	CSAIL 2018-CX11	-	〃		-	US$	4,685		N/A	US$	4,685
	Wells Fargo Commercial Mortgage Trust 2021-C59	-	〃		-	US$	4,629		N/A	US$	4,629
	Citigroup Commercial Mortgage Trust 2014-GC21	-	〃		-	US$	4,521		N/A	US$	4,521
	GM Financial Revolving Receivables Trust 2021-1	-	〃		-	US$	4,329		N/A	US$	4,329
	MRCD 2019-Prkc Mortgage Trust	-	〃		-	US$	4,322		N/A	US$	4,322
	Honda Auto Receivables 2021 - 4 Owner Trust	-	〃		-	US$	4,316		N/A	US$	4,316
	Bank 2017-BNK9	-	〃		-	US$	4,314		N/A	US$	4,314
	Bank 2017 - BNK7	-	〃		-	US$	3,946		N/A	US$	3,946
	Bank 2019-Bnk17	-	〃		-	US$	3,862		N/A	US$	3,862
	JPMCC 2017-JP7	-	〃		-	US$	3,854		N/A	US$	3,854
	BANK 2017-BNK5	-	〃		-	US$	3,469		N/A	US$	3,469
	Msbam 2016-C29	-	〃		-	US$	3,417		N/A	US$	3,417
	Bank 2019-Bnk22	-	〃		-	US$	3,327		N/A	US$	3,327
	Citigroup Commercial Mortgage Trust 2019-Gc43	-	〃		-	US$	3,155		N/A	US$	3,155
	GM Financial Consumer Automobile Receivables Trust 2021-4	-	〃		-	US$	3,142		N/A	US$	3,142
	Commerce 2015-CCRE24 Mortgage Trust	-	〃		-	US$	3,032		N/A	US$	3,032
	Msbam 2016-C31	-	〃		-	US$	2,982		N/A	US$	2,982
	Ford Credit Auto Owner Trust 2022-B	-	〃		-	US$	2,977		N/A	US$	2,977
	WFRBS Commercial Mortgage Trust 2014-C25	-	〃		-	US$	2,889		N/A	US$	2,889
	J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-LC9	-	〃		-	US$	2,860		N/A	US$	2,860
	GS Mortgage Securities Corporation Trust 2018-RIVR	-	〃		-	US$	2,837		N/A	US$	2,837
	Benchmark 2019-B15 Mortgage Trust	-	〃		-	US$	2,807		N/A	US$	2,807
	Sreit Commercial Mortgage Trust 2021-Mfp	-	〃		-	US$	2,766		N/A	US$	2,766
	JPMDB 2017-C7	-	〃		-	US$	2,654		N/A	US$	2,654
	GS Mortgage Securities Trust 2015-GC32	-	〃		-	US$	2,594		N/A	US$	2,594
	GS Mortgage Securities Trust 2013-GCJ12	-	〃		-	US$	2,547		N/A	US$	2,547
	Benchmark 2018-B3 Commercial Mortgage Trust	-	〃		-	US$	2,447		N/A	US$	2,447
	Ford Credit Auto Owner Trust 2020-Rev1	-	〃		-	US$	2,327		N/A	US$	2,327
	Mhc Commercial Mortgage Trust 2021-Mhc	-	〃		-	US$	2,204		N/A	US$	2,204
	UBS Barclays Commercial Mortgage Trust 2013-C6	-	〃		-	US$	2,184		N/A	US$	2,184
	Citigroup Commercial Mortgage Trust 2015-P1	-	〃		-	US$	2,153		N/A	US$	2,153
	Citigroup Commercial Mortgage Trust 2015-GC27	-	〃		-	US$	2,064		N/A	US$	2,064
	BBCMS Mortgage Trust 2020-C8	-	〃		-	US$	2,041		N/A	US$	2,041
	Wells Fargo Commercial Mortgage Trust 2020-C55	-	〃		-	US$	2,027		N/A	US$	2,027
	Commerce 2013-CCRE12 Mortgage Trust	-	〃		-	US$	1,976		N/A	US$	1,976
	UBS Commercial Mortgage Trust 2018-C11	-	〃		-	US$	1,975		N/A	US$	1,975
	Morgan Stanley Capital I Trust 2018-H3	-	〃		-	US$	1,973		N/A	US$	1,973
	Benchmark 2018-B4 Mortgage Trust	-	〃		-	US$	1,954		N/A	US$	1,954
	CGCMT 2017-P8 Mortgage Trust	-	〃		-	US$	1,909		N/A	US$	1,909
	Morgan Stanley Capital I Trust	-	〃		-	US$	1,838		N/A	US$	1,838
	JPMBB Commercial Mortgage Securities Trust 2015-C28	-	〃		-	US$	1,786		N/A	US$	1,786

(Continued)

- 68 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)		Note

TSMC Global	Dolp Trust 2021-NYC	-	Financial assets at fair value through other comprehensive income		-	US$	1,781		N/A	US$	1,781
	Wells Fargo Commercial Mortgage Trust 2015-C30	-	〃		-	US$	1,549		N/A	US$	1,549
	JPMBB Commercial Mortgage Securities Trust 2015-C27	-	〃		-	US$	1,501		N/A	US$	1,501
	Wells Fargo Commercial Mortgage Trust 2018-C44	-	〃		-	US$	1,451		N/A	US$	1,451
	JPMBB Commercial Mortgage Securities Trust 2013-C12	-	〃		-	US$	1,450		N/A	US$	1,450
	COMM 2020-CBM Mortgage Trust	-	〃		-	US$	1,415		N/A	US$	1,415
	Wells Fargo Commercial Mortgage Trust 2017-C40	-	〃		-	US$	1,340		N/A	US$	1,340
	Morgan Stanley Capital I Trust 2021-L5	-	〃		-	US$	1,327		N/A	US$	1,327
	Dbgs 2018-Biod Mortgage Trust	-	〃		-	US$	1,253		N/A	US$	1,253
	Honda Auto Receivables 2021-2 Owner Trust	-	〃		-	US$	1,253		N/A	US$	1,253
	Wells Fargo Commercial Mortgage Trust 2015-C29	-	〃		-	US$	1,231		N/A	US$	1,231
	WFRBS Commercial Mortgage Trust 2013-UBS1	-	〃		-	US$	1,227		N/A	US$	1,227
	Toyota Auto Receivables 2021-D Owner Trust	-	〃		-	US$	1,136		N/A	US$	1,136
	Morgan Stanley Capital I Trust 2015 - UBS8	-	〃		-	US$	945		N/A	US$	945
	UBS Commercial Mortgage Trust 2018-C10	-	〃		-	US$	928		N/A	US$	928
	JPMCC Commercial Mortgage Securities Trust 2016 - JP3	-	〃		-	US$	916		N/A	US$	916
	Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C13	-	〃		-	US$	871		N/A	US$	871
	BX Trust 2021-BXMF	-	〃		-	US$	809		N/A	US$	809
	280 Park Avenue Trust 2017 - 280P	-	〃		-	US$	808		N/A	US$	808
	Citigroup Commercial Mortgage Trust 2013-GCJ11	-	〃		-	US$	767		N/A	US$	767
	Bx 2021-21M Mortgage Trust	-	〃		-	US$	764		N/A	US$	764
	COMM Mortgage Trust Series 2015-LC19	-	〃		-	US$	764		N/A	US$	764
	Elp Commercial Mortgage Trust 2021-Elp	-	〃		-	US$	762		N/A	US$	762
	Benchmark 2019-B14 Mortgage Trust	-	〃		-	US$	657		N/A	US$	657
	Commerce 2014-Ccre17 Mortgage Trust	-	〃		-	US$	642		N/A	US$	642
	Morgan Stanley Capital I Trust 2019-H6	-	〃		-	US$	611		N/A	US$	611
	GS Mortgage Securities Trust 2014-GC22	-	〃		-	US$	608		N/A	US$	608
	Equs 2021-Eqaz Mortgage Trust	-	〃		-	US$	570		N/A	US$	570
	JPMBB Commercial Mortgage Securities Trust 2016-C1	-	〃		-	US$	568		N/A	US$	568
	GS Mortgage Securities Trust 2014-GC24	-	〃		-	US$	559		N/A	US$	559
	Gs Mortgage Securities Corporation Trust 2020-Uptn	-	〃		-	US$	543		N/A	US$	543
	Wells Fargo Commercial Mortgage Trust 2015-C28	-	〃		-	US$	531		N/A	US$	531
	Toyota Auto Receivables 2018-D Owner Trust	-	〃		-	US$	528		N/A	US$	528
	Bx Commercial Mortgage Trust 2021-CIP	-	〃		-	US$	527		N/A	US$	527
	Wells Fargo Commercial Mortgage Trust 2015-LC20	-	〃		-	US$	497		N/A	US$	497
	WFRBSCommercial Mortgage Trust 2013-C17	-	〃		-	US$	496		N/A	US$	496
	Bbcms Mortgage Trust 2017-C1	-	〃		-	US$	487		N/A	US$	487
	Citigroup Commercial Mortgage Trust 2018-C5	-	〃		-	US$	482		N/A	US$	482
	GS Mortgage Securities Trust 2019-GSA1	-	〃		-	US$	476		N/A	US$	476
	Bank 2019-BNK23	-	〃		-	US$	433		N/A	US$	433
	Benchmark 2019-B9 Mortgage Trust	-	〃		-	US$	423		N/A	US$	423
	CF 2019-CF1 Mortgage Trust	-	〃		-	US$	407		N/A	US$	407
	Morgan Stanley Capital I Trust 2019-H7	-	〃		-	US$	406		N/A	US$	406
	Wells Fargo Commercial Mortgage Trust 2015-NXS3	-	〃		-	US$	404		N/A	US$	404
	COMM 2013-LC6 Mortgage Trust	-	〃		-	US$	393		N/A	US$	393
	Citigroup Commercial Mortgage Trust 2014-GC23	-	〃		-	US$	359		N/A	US$	359
	COMM 2015-CCRE22 Mortgage Trust	-	〃		-	US$	339		N/A	US$	339
	COMM 2012-CCRE5 Mortgage Trust	-	〃		-	US$	331		N/A	US$	331
	JPMBB Commercial Mortgage Securities Trust 2014-C19	-	〃		-	US$	315		N/A	US$	315

(Continued)

- 69 -

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	September 30, 2022										Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)			Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)			Note

TSMC Global	JPMCC 2015 - JP1	-	Financial assets at fair value through other comprehensive income		-	US$		290		N/A	US$		290
	JPMDB Commercial Mortgage Securities Trust 2019-COR6	-	〃		-	US$		269		N/A	US$		269
	Citigroup Commercial Mortgage Trust 2016-C3	-	〃		-	US$		238		N/A	US$		238
	Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C12	-	〃		-	US$		235		N/A	US$		235
	Citigroup Commercial Mortgage Trust 2015-GC35	-	〃		-	US$		203		N/A	US$		203
	GS Mortgage Securities Trust 2014-GC26	-	〃		-	US$		193		N/A	US$		193
	Citigroup Commercial Mortgage Trust 2014-GC19	-	〃		-	US$		168		N/A	US$		168
	UBS-Barclays Commercial Mortgage Trust 2012-C2	-	〃		-	US$		155		N/A	US$		155
	COMM 2013-CCRE8 Mortgage Trust	-	〃		-	US$		106		N/A	US$		106
	Bank 2020-BNK28	-	〃		-	US$		104		N/A	US$		104
	BBCMS Mortgage Trust 2020-C7	-	〃		-	US$		74		N/A	US$		74
	Wells Fargo Commercial Mortgage Trust 2015-NXS1	-	〃		-	US$		3		N/A	US$		3

	Non-publicly traded equity investments
	Primavera Capital Fund II L.P.	-	Financial assets at fair value through other comprehensive income		-	US$		86,834		4	US$		86,834

VTAF II	Non-publicly traded equity investments
	Aether Systems, Inc.	-	Financial assets at fair value through other comprehensive income		1,085		-			20		-
	5V Technologies, Inc.	-	〃		4		-			-		-

	Publicly traded stocks
	Sentelic Corporation	-	Financial assets at fair value through other comprehensive income		971	US$		1,529		3	US$		1,529

VTAF III	Non-publicly traded equity investments
	LiquidLeds Lighting Corp.	-	Financial assets at fair value through other comprehensive income		1,952	US$		800		14	US$		800
	Neoconix, Inc.	-	〃		4,147	US$		174		-	US$		174

Growth Fund	Non-publicly traded equity investments
	Astera Labs, Inc.	-	Financial assets at fair value through other comprehensive income		637	US$		4,146		-	US$		4,146
	CNEX Labs, Inc.	-	〃		33	US$		166		-	US$		166

	Publicly traded stocks
	Marvell Technology Group Ltd.	-	Financial assets at fair value through other comprehensive income		30	US$		1,270		-	US$		1,270

EmergingFund	Non-publicly traded equity investments
	Astera Labs, Inc.	-	Financial assets at fair value through other comprehensive income		1,487	US$		9,680		-	US$		9,680
	Solanium Labs, Ltd.	-	〃		1,429	US$		5,000		2	US$		5,000
	Kinara, Inc.	-	〃		2,015	US$		3,000		2	US$		3,000
	RiVos, Inc.	-	〃		750	US$		2,000		-	US$		2,000

	Publicly traded stocks
	Credo Technology Group Holding Ltd	-	Financial assets at fair value through other comprehensive income		511	US$		5,616		-	US$		5,616

(Concluded)

- 70 -

TABLE 4

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

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

Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Beginning Balance						Acquisition						Disposal															Ending Balance (Note)
Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)				Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)				Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)				Carrying Value (Foreign Currencies in Thousands)				Gain/Loss on Disposal (Foreign Currencies in Thousands)					Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)

TSMC	Commercial paper
	Taiwan Power Company	Financial assets at amortized cost	-	-		-	$		-			3,210	$		31,966,563			860	$		8,600,000		$		8,600,000		$		-				2,350	$		23,392,427
	CPC Corporation, Taiwan	〃	-	-		-		-				2,559		25,493,771				550		5,500,000				5,500,000				-					2,009		20,011,808

	Non-publicly traded equity investments
	JASM	Investments accounted for using equity method	-	-		58		1,383,554				962		23,150,164				-		-				-				-					1,020		22,290,954
	TSMC 3DIC	〃	-	-		11		270,513				38		865,370				-		-				-				-					49		1,106,003

	Capital
	Emerging Fund	Investments accounted for using equity method	-	-		-		286,205				-		572,165				-		-				-				-					-		1,272,826

TSMC Global	Corporate bond
	Morgan Stanley	Financial assets at fair value through other comprehensive income	-	-		-	US$			65,115		-	US$			22,148		-	US$			4,750	US$			4,678	US$			72			-	US$			76,812
	Bank of America Corporation	〃	-	-		-	US$			75,265		-	US$			18,472		-	US$			12,205	US$			12,156	US$			49			-	US$			75,386
	Wells Fargo & Company	〃	-	-		-	US$			38,439		-	US$			24,456		-	US$			-	US$			-	US$			-			-	US$			58,829
	Citigroup Inc.	〃	-	-		-	US$			49,298		-	US$			16,770		-	US$			5,787	US$			5,779	US$			8			-	US$			56,384
	The Goldman Sachs Group, Inc.	〃	-	-		-	US$			53,756		-	US$			14,176		-	US$			14,292	US$			14,346	US$			(54	)		-	US$			49,532
	Metropolitan Life Global Funding I	〃	-	-		-	US$			17,341		-	US$			10,758		-	US$			3,000	US$			3,000	US$			-			-	US$			24,226
	The Toronto-Dominion Bank	〃	-	-		-	US$			14,786		-	US$			15,598		-	US$			9,344	US$			9,685	US$			(341	)		-	US$			19,252
	Bank of Montreal	〃	-	-		-	US$			6,295		-	US$			14,842		-	US$			5,076	US$			4,999	US$			77			-	US$			14,981
	S&P Global Inc.	〃	-	-		-	US$			-		-	US$			14,096		-	US$			2,893	US$			2,934	US$			(41	)		-	US$			10,082
	Bank of America Corporation	Financial assets at amortized cost	-	-		-	US$			-		-	US$			388,666		-	US$			23,000	US$			23,000	US$			-			-	US$			365,654
	The Goldman Sachs Group, Inc.	〃	-	-		-	US$			51,347		-	US$			461,607		-	US$			171,000	US$			171,000	US$			-			-	US$			340,683
	Citigroup Global Markets Inc.	〃	-	-		-	US$			99,968		-	US$			150,000		-	US$			-	US$			-	US$			-			-	US$			249,919
	JPMorgan Chase & Co.	〃	-	-		-	US$			10,054		-	US$			194,840		-	US$			-	US$			-	US$			-			-	US$			205,628
	Wells Fargo & Company	〃	-	-		-	US$			30,399		-	US$			159,137		-	US$			-	US$			-	US$			-			-	US$			189,392
	Citigroup Global Markets Holdings Inc.	〃	-	-		-	US$			-		-	US$			150,000		-	US$			-	US$			-	US$			-			-	US$			149,951
	Goldman Sachs Finance Corp International Ltd.	〃	-	-		-	US$			-		-	US$			150,000		-	US$			-	US$			-	US$			-			-	US$			149,870
	Citigroup Inc.	〃	-	-		-	US$			-		-	US$			119,897		-	US$			14,000	US$			14,000	US$			-			-	US$			106,012
	Jpmorgan LLC	〃	-	-		-	US$			-		-	US$			50,000		-	US$			-	US$			-	US$			-			-	US$			49,984
	Morgan Stanley	〃	-	-		-	US$			-		-	US$			30,255		-	US$			-	US$			-	US$			-			-	US$			30,237
	Banco Bilbao Vizcaya Argentaria, S.A.	〃	-	-		-	US$			-		-	US$			10,418		-	US$			-	US$			-	US$			-			-	US$			10,443

(Continued)

- 71 -

Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Beginning Balance				Acquisition				Disposal									Ending Balance (Note)
Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Shares/Units (In Thousands)		Amount		Shares/Units (In Thousands)		Amount		Shares/Units (In Thousands)		Amount		Carrying Value		Gain/Loss on Disposal			Shares/Units (In Thousands)		Amount

TSMC Global	Government bond
	United States Department of The Treasury	Financial assets at fair value through other comprehensive income	-	-		-	US$	768,483		-	US$	93,078		-	US$	169,332	US$	171,044	US$	(1,712	)		-	US$	633,998

	Agency bonds/Agency mortgage- backed securities
	FEDERAL NATIONAL MORTGAGE ASSOCIATION	Financial assets at fair value through other comprehensive income	-	-		-	US$	460,205		-	US$	251,742		-	US$	152,501	US$	155,377	US$	(2,876	)		-	US$	480,057
	Federal Home Loan Mortgage Corporation	〃	-	-		-	US$	253,075		-	US$	128,307		-	US$	64,001	US$	65,258	US$	(1,257	)		-	US$	275,758
	Government National Mortgage Association	〃	-	-		-	US$	285,581		-	US$	75,482		-	US$	153,180	US$	156,329	US$	(3,149	)		-	US$	179,583

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

(Concluded)

- 72 -

TABLE 5

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

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

Company Name

Types of

Property

Transaction Date

Transaction Amount

(Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other

Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

February 15, 2022

(Note)

$213,300,000

(Note)

Based on the terms in the purchase order

122 counterparties(Note), including:

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB Ltd.

Accudevice Co., Ltd.

Addtron Technology (Japan), Inc.

Aegis Technology Co.

Air Liquid Japan G.K.

Air Liquide Far Eastern Ltd.

Air Water Plant Engineering Co., Ltd.

Allis Electric Co., Ltd.

Am-Power Machine International Enterprise Co., Ltd.

Atlas Copco Taiwan Ltd.

Atlas Technology Corp.

Capital Machinery Limited

Chen Yuan International Co., Ltd.

Chenfull International Co., Ltd.

Cheng Deh Fire Protection Industrial Corp.

Chien Kuo Construction Co., Ltd.

China Steel Structure Co., Ltd.

Chun Yuan Steel Industry Co., Ltd.

Chung-Lin General Contractors, Ltd.

Chunghwa Telecom Japan Co., Ltd.

(Continued)

- 73 -

Company Name

Types of

Property

Transaction Date

Transaction Amount

(Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other

Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Cica-Huntek Chemical Technology Taiwan Co., Ltd.

Confederate Technology Co., Ltd.

Da-Cin Construction Co., Ltd.

Desiccant Technology Corporation

Eaton Electric Japan

Evergreen Steel Corporation

Exyte Taiwan Co., Ltd.

Fortune Electric Co., Ltd.

Fu Tsu Construction Co., Ltd.

Fuji Electric Co., Ltd

Fuji Furukawa E&C Co., Ltd

Green Partners Industry Co., Ltd

Hantech Engineering Co., Ltd.

Hitachi Energy Ltd.

Hsieh Kun Co., Ltd.

Hueng Luei Process Industry Co., Ltd.

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

J.C. Yang Architect and Associates

Japan Material Co., Ltd.

JG Environmental Technology Co., Ltd.

Jienshian Information Engineering Co., Ltd.

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

Johnson Controls York Taiwan Co, Ltd.

Jusun Instruments Co., Ltd.

Kajima Corporation

Kanto Chemical Engineering Co., Ltd.

Kao Hsin Engineering Co., Ltd.

(Continued)

- 74 -

Company Name

Types of

Property

Transaction Date

Transaction Amount

(Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other

Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Kedge Construction Co., Ltd.

Kinetics Technology Corporation

Koei International Corp.

Kuken Kogyo Co., Ltd.

Kurita Water Industries Ltd., Taiwan

Kyudenko Corporation

L&K Engineering Co., Ltd.

Lead-Fu Industrials Corporation

Lee Ming Construction Co., Ltd.

Lumax International Corp., Ltd.

Mandartech Interiors Inc.

Marketech International Corp.

Mega Union Technology Incorporated

Mitsubishi Heavy Industries Air-Conditioning & Refrigeration Corporation

Mitsubishi Heavy Industries, Ltd.

NAGASE & CO. LTD.

NEC Facilities, Ltd.

Organo Corporation

Organo Technology Co., Ltd.

Ovivo Taiwan Co., Ltd.

Pan Asia (Engineers & Constructors) Corporation

Quicken System Integration Co., Ltd.

Ruentex Engineering & Construction Co., Ltd.

SACHEM Inc.

San Fu Chemical Co., Ltd.

Schneider Electric Taiwan Co., Ltd.

Seibu Giken Co., Ltd.

Shihlin Electric & Engineering Corporation

Shimizu Corporation

Siemens Limited

(Continued)

- 75 -

Company Name

Types of

Property

Transaction Date

Transaction Amount

(Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other

Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

SN Tech Corporation

Solomon Technology Corporation

Sumitomo Corporation

Swift Engineering Co., Ltd.

Taikisha Ltd.

Taisei Corporation

Taiwan Gleno Enterprise Co., Ltd.

Taiwan Obayashi Corporation

Taiwan Puritic Corp.

Taiyo Nippon Sanso Corporation

TASA Construction Corporation

Techgo Industrial Co., Ltd.

Toshiba Mitsubishi-Electric Industrial Systems Corporation

Toyoko Kagaku Co., Ltd.

Trane Taiwan Distribution Limited

Trusval Technology Co., Ltd.

Tung Kang Steel Structure Corp.

Uangyih-Tech Industrial Co., Ltd.

Unelectra International Corp.

United Integrated Services Co., Ltd.

Versum Materials Taiwan Co., Ltd.

Vertiv

Weltall Technology Corporation

Wholetech System Hitech Limited

Yangtech Engineering Co., Ltd.

Yankey Engineering Co., Ltd.

Ying Pao Technology Inc.

Zhao-Cheng Corp.

(Continued)

- 76 -

Company Name

Types of

Property

Transaction Date

Transaction Amount

(Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other

Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

May 10, 2022

(Note)

US$2,147,000

(Note)

Based on the terms in the purchase order

19 counterparties(Note), including:

N/A

Price comparison and price negotiation

Manufacturing purpose

None

Southern Taiwan Science Park Bureau, Ministry of Science and Technology

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

(Concluded)

- 77 -

TABLE 6

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

(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
Company Name	Related Party	Nature of Relationships	Purchases/ Sales	Amount (Foreign Currencies in Thousands)					% to Total		Payment Terms	Unit Price	Payment Terms	Ending Balance (Foreign Currencies in Thousands)					% to Total		Note

TSMC	TSMC North America	Subsidiary	Sales	$		1,100,732,622				68	Net 30 days from invoice date (Note)	-	(Note)	$		200,684,976				81
	TSMC Nanjing	Subsidiary	Sales		149,805					-	Net 30 days from the end of the month of when invoice is issued	-	-		-					-
	GUC	Associate	Sales		6,683,081					-	Net 30 days from the end of the month of when invoice is issued	-	-		918,898					-
	TSMC Nanjing	Subsidiary	Purchases		31,276,001					26	Net 30 days from the end of the month of when invoice is issued	-	-		(3,409,873			)		5
	TSMC China	Subsidiary	Purchases		20,759,218					17	Net 30 days from the end of the month of when invoice is issued	-	-		(2,630,108			)		4
	WaferTech	Indirect subsidiary	Purchases		7,523,614					6	Net 30 days from the end of the month of when invoice is issued	-	-		(972,242			)		2
	SSMC	Associate	Purchases		3,457,638					3	Net 30 days from the end of the month of when invoice is issued	-	-		(527,944			)		1
	VIS	Associate	Purchases		1,339,151					1	Net 30 days from the end of the month of when invoice is issued	-	-		(141,586			)		-

TSMC North America	GUC	Associate of TSMC	Sales		2,045,044					-	Net 30 days from invoice date	-	-		15,164					-
				(US$			69,752	)						(US$			477	)

VisEra Tech	Xintec	Associate of TSMC	Sales		623,862					9	Net 60 days from the end of the month of when invoice is issued	-	-		157,088					11

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

- 78 -

TABLE 7

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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

September 30, 2022

(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
Company Name	Related Party	Nature of Relationships	Ending Balance (Foreign Currencies in Thousands)					Turnover Days (Note 1)	Amount			Action Taken	Amounts Received in Subsequent Period			Allowance for Bad Debts

TSMC	TSMC North America	Subsidiary	$		208,824,740			42	$		-	-	$		-	$		-
	TSMC Nanjing	Subsidiary		159,682				Note 2		-		-		-			-
	GUC	Associate		918,898				27		-		-		-			-

TSMC North	TSMC	Parent company		151,818				Note 2		-		-		-			-
America			(US$			4,779	)

TSMC China	TSMC Nanjing	The same parent company		42,944,432				Note 2		-		-		-			-
			(RMB			9,589,235	)
	TSMC	Parent company		2,630,108				29		-		-		-			-
			(RMB			587,283	)

TSMC Nanjing	TSMC	Parent company		3,409,873				27		-		-		-			-
			(RMB			761,398	)

VisEra Tech	Xintec	Associate of TSMC		157,088				60		-		-		-			-

TSMC Technology	TSMC	The ultimate parent of the		421,502				Note 2		-		-		-			-
		Company	(US$			13,269	)

WaferTech	TSMC	The ultimate parent of the Company		972,242				30		-		-		-			-
			(US$			30,606	)
	TSMC Development	Parent company		189,778				Note 2		-		-		-			-
			(US$			5,974	)

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

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

- 79 -

TABLE 8

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

(Amounts in Thousands of New Taiwan Dollars)

No.	Company Name	Counterparty	Nature of Relationship (Note 1)	Intercompany Transactions
No.	Company Name	Counterparty	Nature of Relationship (Note 1)	Financial Statements Item	Amount			Terms (Note 2)	Percentage of Consolidated Net Revenue or Total Assets

0	TSMC	TSMC North America	1	Net revenue from sale of goods	$		1,100,732,622	-		67%
				Receivables from related parties		200,684,976		-		4%
				Other receivables from related parties		8,139,764		-		-
				Accrued expenses and other current liabilities		89,108,075		-		2%
				Other noncurrent liabilities		165,996,671		-		4%

		JASM	1	Other noncurrent assets		3,581,617		-		-

		TSMC JDC	1	Research and development expenses		358,030		-		-

		TSMC 3DIC	1	Research and development expenses		625,396		-		-

		TSMC Europe	1	Marketing expenses-commission		402,743		-		-

		TSMC China	1	Purchases		20,759,218		-		1%
				Payables to related parties		2,630,108		-		-

		TSMC Nanjing	1	Purchases		31,276,001		-		2%
				Proceeds from disposal of property, plant and equipment		640,953		-		-
				Payables to related parties		3,409,873		-		-

		TSMC Technology	1	Research and development expenses		2,467,603		-		-

		WaferTech	1	Purchases		7,523,614		-		-
				Payables to related parties		972,242		-		-

1	TSMC China	TSMC Nanjing	3	Other receivables from related parties		42,944,432		-		1%

Note 1:

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

No. 3 represents the transactions between subsidiaries.

Note 2:

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

- 80 -

TABLE 9

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

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

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

(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, 2022									Net Income (Losses) of the Investee (Foreign Currencies in Thousands)					Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands)				Note
Investor Company	Investee Company	Location	Main Businesses and Products	September, 2022 (Foreign Currencies in Thousands)					December 31, 2021 (Foreign Currencies in Thousands)					Shares (In Thousands)		Percentage of Ownership		Carrying Value (Foreign Currencies in Thousands)														Note
TSMC	TSMC Global	Tortola, British Virgin Islands	Investment activities	$		355,162,309			$		355,162,309				11		100	$		421,208,004			$		3,410,221			$		3,410,221		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		65,176,420					2,103,490					2,103,490			Subsidiary
	JASM	Kumamoto, Japan	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices		24,567,085					1,416,921					1,020		71		22,290,954					(236,413			)		(197,218		)	Subsidiary
	TSMC Arizona	Phoenix, Arizona, U.S.A.	Manufacturing, sales and testing of integrated circuits and other semiconductor devices		21,643,300					21,643,300					770		100		13,954,855					(6,168,148			)		(6,168,148		)	Subsidiary
	VIS	Hsin-Chu, Taiwan	Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks		10,180,677					10,180,677					464,223		28		12,763,668					12,801,311					3,621,948			Associate
	VisEra Tech	Hsin-Chu, Taiwan	Research, design, development, manufacturing, sales, packaging and test of color filter		4,224,082					4,224,082					213,619		68		11,307,593					1,528,701					1,093,449			Subsidiary
	SSMC	Singapore	Manufacturing and sales of integrated circuits and other semiconductor devices		5,120,028					5,120,028					314		39		8,845,688					2,556,035					991,486			Associate
	TSMC North America	San Jose, California, U.S.A	Sales and marketing of integrated circuits and other semiconductor devices		333,718					333,718					11,000		100		5,439,500					(132,523			)		(132,523		)	Subsidiary
	Xintec	Taoyuan, Taiwan	Wafer level chip size packaging and wafer level post passivation interconnection service		1,988,317					1,988,317					111,282		41		3,340,497					1,529,860					627,382			Associate
	GUC	Hsin-Chu, Taiwan	Researching, developing, manufacturing, testing and marketing of integrated circuits		386,568					386,568					46,688		35		1,693,668					2,364,050					823,622			Associate
	Emerging Fund	Cayman Islands	Investing in technology start-up companies		870,783					298,618					-		99.9		1,272,826					(6,213			)		(6,207		)	Subsidiary
	TSMC 3DIC	Yokohama, Japan	Engineering support activities		1,144,356					278,986					49		100		1,106,003					26,126					26,126			Subsidiary
	TSMC Europe	Amsterdam, the Netherlands	Customer service and supporting activities		15,749					15,749					-		100		523,996					19,671					19,671			Subsidiary
	TSMC JDC	Yokohama, Japan	Engineering support activities		410,680					410,680					15		100		345,660					10,495					10,495			Subsidiary
	VTAF III	Cayman Islands	Investing in technology start-up companies		1,321,594					1,321,594					-		98		345,392					(5,129			)		(5,027		)	Subsidiary
	TSMC Japan	Yokohama, Japan	Customer service and supporting activities		83,760					83,760					6		100		125,604					5,032					5,032			Subsidiary
	VTAF II	Cayman Islands	Investing in technology start-up companies		260,300					260,300					-		98		77,309					657					644			Subsidiary
	TSMC Korea	Seoul, Korea	Customer service and supporting activities		13,656					13,656					80		100		40,209					1,326					1,326			Subsidiary

TSMC Partners	TSMC Development	Delaware, U.S.A	Investing in companies involved in semiconductor manufacturing		18,644,698					18,644,698					-		100		37,091,905					1,857,071					Note2			Subsidiary
				(US$			586,939	)	(US$			586,939	)					(US$			1,167,661	)	(US$			63,468	)
	TSMC Technology	Delaware, U.S.A	Engineering support activities		453,683					453,683					-		100		975,436					15,293					Note2			Subsidiary
				(US$			14,282	)	(US$			14,282	)					(US$			30,707	)	(US$			502	)
	TSMC Canada	Ontario, Canada	Engineering support activities		73,062					73,062					2,300		100		320,626					23,256					Note2			Subsidiary
				(US$			2,300	)	(US$			2,300	)					(US$			10,093	)	(US$			792	)

VTAF III	Growth Fund	Cayman Islands	Investing in technology start-up companies		82,711					82,711					-		100		264,420					(412			)		Note2			Subsidiary
				(US$			2,604	)	(US$			2,604	)					(US$			8,324	)	(US$			(14	))
	Mutual-Pak	New Taipei, Taiwan	Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID	(US$			50,614 1,593	)	(US$			50,614 1,593	)		4,693		28	(US$			19,815 624	)	(US$			(11,051 (378	) ))		Note2			Associate

(Continued)

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Investor Company

Investee Company

Location

Main Businesses and Products

Original Investment Amount

Balance as of September 30, 2022

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

Share of Profits/Losses

of Investee

(Note 1)

(Foreign Currencies in Thousands)

Note

September,

2022

(Foreign Currencies in Thousands)

December 31,

2021

(Foreign Currencies in Thousands)

Shares (In Thousands)

Percentage of Ownership

Carrying Value

(Foreign Currencies in Thousands)

TSMC Development

WaferTech

Washington, U.S.A

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

293,637

100

(US$

6,828,670

214,968

)

(US$

1,716,388

58,738

)

Note 2

Subsidiary

Note 1:

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

Note 2:

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

(Concluded)

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TABLE 10

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

(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, 2022(US$ in Thousands)					Investment Flows				Accumulated Outflow of Investment from Taiwan as of September 30, 2022(US$ in Thousands)					Net Income (Losses) of the Investee Company			Percentage of Ownership		Share of Profits/Losses					Carrying Amount as of September 30, 2022			Accumulated Inward Remittance of Earnings as of September, 2022
													Outflow (US$ in Thousands)		Inflow

TSMC China	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	$ (RMB	18,939,667 4,502,080			)	Note 1	$ (US$	18,939,667 596,000			)	$	-	$	-	$ (US$	18,939,667 596,000			)	$	9,207,667			100%	$	8,994,811 (Note2			)	$	84,937,968		$-

TSMC Nanjing	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	(RMB		30,521,412 6,650,119	)		Note 1	(US$		30,521,412 1,000,000	)			-		-	(US$		30,521,412 1,000,000	)				15,689,153		100%			15,686,282 (Note2	)				63,427,512	-


Accumulated Investment in Mainland China as of September 30, 2022 (US$ in Thousands)			Investment Amounts Authorized by Investment Commission, MOEA (US$ in Thousands)			Upper Limit on Investment

$ (US$	49,461,079 1,596,000	)	$ (US$	119,412,667 3,596,000	)	$	1,651,389,695 (Note 3	)

Note 1:

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

Note 2:

Amount was recognized based on the reviewed financial statements.

Note 3:

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

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TABLE 11

Taiwan Semiconductor Manufacturing Company Limited

INFORMATION ON MAJOR SHAREHOLDERS

SEPTEMBER 30, 2022

Note:

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

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