Fab 18

TSMC
2023 BUSINESS OVERVIEW
TSE: 2330 NYSE: TSM

Fab 3

Fab 15
Fab 5
AP2

Global R&D Center

Fab 16

Fab 2

Fab 8
Fab 12
AP6

Fab 21
Fab 23

8, Li-Hsin Rd. 6, Hsinchu Science Park, Hsinchu 300-096, Taiwan, R.O.C.

Tel:+886-3-5636688 Fax:+886-3-5637000 https://www.tsmc.com Fab 11
This report is made with recycled paper.
Vision, Mission & Core Values Table of Contents
Table of Contents
Vision
1 Letter to Shareholders 3
Our vision is to be the most advanced and largest technology and foundry services
provider to fabless companies and IDMs, and in partnership with them, to forge a
powerful competitive force in the semiconductor industry.
2 Introduction 9

To realize our vision, we must have a trinity of strengths:

1. Be a technology leader, competitive with the leading IDMs 3 Market Overview 12
2. Be the manufacturing leader
3. Be the most reputable, service-oriented and maximum-total-benefits
silicon foundry 4 TSMC’s Trinity of Strengths 15

5 Corporate Governance 18
Mission
Our mission is to be the trusted technology and capacity provider of the global logic IC 6 Environmenal, Social and Governance 19
industry for years to come.

7 Financial Statements 21
Core Values
Integrity
Integrity is our most basic and most important core value. We tell the truth. We believe

1
the record of our accomplishments is the best proof of our merit. Hence, we do not brag.
We do not make commitments lightly. Once we make a commitment, we devote ourselves Letter to Shareholders pg. 2
completely to meeting that commitment. We compete to our fullest within the law, but
we do not slander our competitors and we respect the intellectual property rights of
others. With vendors, we maintain an objective, consistent, and impartial attitude. We do
not tolerate any form of corrupt behavior or politicking. When selecting new employees,
we place emphasis on the candidates’ qualifications and character, not connections or
2 Introduction pg. 7

3
access.
Market Overview pg. 11
Commitment
TSMC is committed to the welfare of customers, suppliers, employees, shareholders, and
society. These stakeholders all contribute to TSMC’s success, and TSMC is dedicated to
serving their best interests. In return, TSMC hopes all these stakeholders will make a
mutual commitment to the Company.
4 TSMC’s Trinity of Strengths pg. 14

Innovation
Innovation is the wellspring of TSMC’s growth, and is a part of all aspects of our business,
5 Corporate Governance pg. 17

from strategic planning, marketing and management, to technology and manufacturing.

6
At TSMC, innovation means more than new ideas, it means putting ideas into practice.
Environmental, Social, and Governance pg. 19
Customer Trust

7
At TSMC, customers come first. Their success is our success, and we value their ability to

Financial Statements
compete as we value our own. We strive to build deep and enduring relationships with
pg. 21
our customers, who trust and rely on us to be part of their success over the long term.
1 Letter to Shareholders developed N2 with backside power rail solution, which is better-suited for specific HPC applications, to
be available in the second half of 2025 to customers, with production in 2026.

We are observing a strong level of customer interest and engagement at our N2, higher than N3
Dear Shareholders, at a similar stage, from both HPC and smartphone applications. With our strategy of continuous
2023 was a challenging year for the global semiconductor industry, but we also witnessed the rising enhancements, N2 and its derivatives will further extend our technology leadership well into the future.
emergence of generative AI-related applications, with TSMC as a key enabler. As the world re-emerged
from more than two years of pandemic-induced slowdown, weakening global macroeconomic The insatiable demand for energy-efficient computing power not only requires leading edge process
conditions and higher inflation and interest rates prolonged the semiconductor inventory adjustment technologies, but also advanced packaging technologies to enable large-scale interconnectivity
cycle. Despite the near-term challenges, our technology leadership enabled TSMC to outperform the for lower power consumption, at affordable costs. TSMC’s industry-leading 3DFabric® backend
foundry industry in 2023. We are well-positioned to capture the future AI and high-performance technologies include the CoWoS® and InFO family of advanced packaging technologies, with CoWoS®
computing (HPC)-related growth opportunities. technology seeing robust demand from multiple customers’ AI chips in 2023. Our frontend 3DIC
technologies, TSMC-SoIC® (System on Integrated Chips), also entered mass production in 2023 to
In 2023, Generative AI took the world by storm, with ChatGPT gaining over 100m active users in just enable customers’ next generation flagship AI products.
two months, becoming the world’s fastest growing consumer application. Generative AI requires
high computing power and interconnect bandwidth, which drives semiconductor content increase. We are working closely with our customers in a disciplined manner to plan our capacity, based on the
TSMC is a key enabler of AI applications. Today, the AI application is only in its nascent stage, and no long-term market demand profile, and investing in leading edge and specialty technologies, to support
matter which AI approach is taken, AI chips require the use of leading edge technologies and advanced their structural growth.
packaging solutions, a strong foundry design ecosystem, and high yield to support larger die sizes. All
of these are to TSMC’s strengths, and thus all roads lead to working with TSMC. Part of this strategy is to expand our global manufacturing footprint to increase customer trust, expand
our future growth potential, and reach for more global talents. Our overseas decisions are based on
The surge in AI-related demand in 2023 supports our already-strong conviction on energy-efficient our customers’ needs, and a necessary level of government support. This is to maximize the value for
computing. Thus, the value of our technology position is increasing. our shareholders.

To address the insatiable demand for energy-efficient computing power in a highly competitive market, In the U.S., we are making good progress on our first fab in Arizona in terms of the fab infrastructure,
customers rely on TSMC to provide a dependable and predictable cadence of technology offering and utilities and equipment installation. We are on track for volume production of N4 technology in the
high quality manufacturing service. first half of 2025, with the same level of manufacturing quality and reliability in Arizona as from our
fabs in Taiwan.
For TSMC, today around ~70% of our total revenue is 16nm and more advanced nodes. With rising
contribution from 3nm and 2nm technologies in the next several years, this number will only increase. We are also building a 12-inch specialty technology fab in Kumamoto, Japan, which is on track for
Thus, our mature node exposure is around ~20% of our total revenue. volume production in the fourth quarter of 2024. We also announced plans to build an automotive and
industrial specialty fab in Dresden, Germany, with construction starting in the fourth quarter of 2024.
Our focus on mature nodes is to build high yield capacity for specialized technologies, rather than just
nominal capacity. In 2023, we worked closely with our customers to introduce specialty technologies While the initial costs of overseas fabs are higher than TSMC’s fabs in Taiwan, we are confident
such as N6RF+ for smartphones, CMOS Image Sensors for cameras, and 22nm MRAM for automotive to manage and minimize the cost gap, so that we can continue to maximize the value for our
and industrial applications. Our mature node strategies will continue to focus on working closely with shareholders.
strategic customers to develop specialty technology solutions to meet their requirement, and create
differentiated and long-lasting value to customers. We are also placing a strong focus on our digital excellence initiatives, which includes leveraging big data
and AI to increase our fab productivity and operational efficiency and quality. By driving digital excellence
In 2023, we inaugurated our new R&D center in Taiwan, and further enhanced our R&D intensity at TSMC, our fabs are transforming to become engineer-centric rather than operator-centric. As we
and technology development. Our industry-leading 3-nanometer technology entered high volume expand globally, we will continuously enhance the intelligence of our fabs, so that we can control and
production with a strong ramp in the second half of 2023. We are also providing continuous manage fab operations from anywhere in the world, and deepen our service to support our customers.
enhancements of our N3 technology, including N3E, N3P and N3X, and expect an even greater
contribution in 2024 and the years beyond, supported by robust demand from multiple customers. Highlights of TSMC’s accomplishments in 2023:
● Total wafer shipments were 12.0 million 12-inch equivalent wafers as compared to 15.3 million

Our 2-nanometer is on track for volume production in 2025. It will be the most advanced technology 12-inch equivalent wafers in 2022.
● Advanced technologies (7-nanometer and beyond) accounted for 58 percent of total wafer revenue,
in the semiconductor industry in both density and energy efficiency when it is introduced. N2 will
adopt nanosheet transistor structure, and deliver full-node performance and power benefits, to address up from 53 percent in 2022.
● We deployed 288 distinct process technologies, and manufactured 11,895 products for 528
the increasing need for energy-efficient computing. As part of N2 technology platform, we also
customers.

03
 TSMC produced 28 percent of the world semiconductor excluding memory output value in 2023,
●  Corporate Governance and Sustainability Committee recommends Dr. C.C. Wei, while remaining as CEO,
as compared to 30 percent in the previous year, mainly due to the semiconductor industry inventory to succeed as TSMC’s next Chairman, subject to the election of the incoming board in June 2024.
correction.
Honors and Awards
2023 Financial Performance
TSMC received recognition for achievements in innovation, corporate governance, sustainability,
Consolidated revenue reached NT$2,161.74 billion, a decrease of 4.5 percent over NT$2,263.89 billion in investor relations and overall excellence in management from organizations including Forbes, Fortune
2022. Net income was NT$838.50 billion and diluted earnings per share were NT$32.34. Both decreased Magazine, CommonWealth Magazine, Taiwan Stock Exchange, and Taiwan Institute for Sustainable
17.5 percent from the 2022 level of NT$1,016.53 billion net income and NT$39.20 diluted EPS. Energy. For innovation, TSMC was recognized as 3rd in IFI Claims Patent Services’ “2023 Top 50 U.S.
Patent Assignees.” TSMC was also recognized
Capacity Plan
TSMC generated net income of US$26.88 billion on consolidated revenue of US$69.30 billion, which by Fortune Magazine as “2023 World’s Most
decreased 21.1 percent and 8.7 percent respectively from the 2022 level of US$34.07 billion net Admired Companies.” In sustainability, we 9%
2022
income and US$75.88 billion consolidated revenue. were chosen once again as a component 15-16

of the Dow Jones Sustainability Indices,

6%
Gross profit margin was 54.4 percent as compared with 59.6 percent in 2022, while operating profit becoming the only semiconductor company 2023
16-17
margin was 42.6 percent compared with 49.5 percent a year earlier. Net profit margin was 38.8 to be selected for 23 consecutive years.
6%
percent, a decrease of 6.1 percentage points from 2022’s 44.9 percent. We also received MSCI ESG Research’s 2024
17-18
AAA Rating, CDP’s “2022 CDP Supplier
In 2023, the Company further raised its total cash dividend payments to NT$11.25 per share, up from Engagement Leader,” Morningstar’s “The Best Annual Growth Rate
NT$11.0 a year ago. Sustainable Companies to Own in 2024,” S&P Capacity: million 12-inch equivalent wafers

Global’s Corporate Sustainability Assessment

Environmental, Social and Governance – Top 10% S&P Global ESG Score, ISS-oekom Wafer Sales Plan
Corporate Rating’s “Prime” status, Financial
In addition to driving profitable growth in our core business, TSMC continues to cultivate green 2022
Times and Statista’s “Asia-Pacific Climate 47% 53%
manufacturing, build a responsible supply chain, create an inclusive workplace, attract and develop
Leaders 2023,” and Forbes’ “World’s Best
talent, and care for the underprivileged, fulfilling the Company’s responsibilities as a corporate citizen.
Employers 2023.” Meanwhile, we remained
2023 42% 58%
a major component in various MSCI ESG
Maintaining the highest standard of corporate governance is an essential part of our core values. In
and FTSE4Good indices. In investor relations,
February 2023, TSMC’s Board of Directors approved the establishment of the “Nominating, Corporate
TSMC continued to receive multiple awards 2024 30-40% 60-70%
Governance and Sustainability Committee.” The Committee is actively involved in developing TSMC’s
from Institutional Investor Magazine.
sustainability strategies, to lay the foundation for our future sustainable development. In addition, the > 7nm ≤ 7nm
Committee focuses on reviewing and improving TSMC’s corporate governance structure, including
Outlook 2024 wafer shipment is expected to be 13-14 million 12-inch

recommending independent director candidates to the Board. equivalent wafers.

Entering 2024, macroeconomic weakness and

In 2023, we also announced an acceleration of our RE100 sustainability timetable, pulling forward geopolitical uncertainties persist, potentially further weighing on consumer sentiment and end market
our target for 100% renewable energy consumption for all global operations from 2050 to 2040. We demand. Against that backdrop, our business is expected to be supported by the continued strong
also raised our 2030 target for company-wide renewable energy consumption from 40% to 60%, ramp of our industry-leading 3nm technologies and robust AI-related demand, and we expect 2024 to
demonstrating our determination to achieve our environmental sustainability goals at a faster pace. be a healthy growth year for TSMC.

Corporate Developments Recent developments, such as growing national security concerns, the reshaping of global supply
chains, and the intensifying competition in the quest for AI supremacy, have deepened geopolitical
In August 2023, TSMC announced its plan to invest in European Semiconductor Manufacturing
uncertainties.
Company (ESMC) GmbH, in Dresden, Germany, along with Robert Bosch GmbH, Infineon Technologies
AG, and NXP Semiconductors N.V., to build a specialty technology fab focusing on automotive and
At the same time, as AI technology evolves to use more complex AI models, the amount of
industrial applications. ESMC is expected to have a monthly capacity of 40,000 wafers on TSMC’s
computation required for training and inference continues to increase. As a result, AI models
28/22 nanometer planar CMOS and 16/12 nanometer FinFET process technology.
need to be supported by more powerful semiconductor hardware, which use the most advanced
semiconductor process technologies.
In December 2023, TSMC announced that Dr. Mark Liu plans to retire from TSMC in June 2024, and will
not seek re-election to the board of directors. During his tenure, Dr. Liu has reaffirmed the Company’s
TSMC’s success is predicated on providing the industry’s most leading edge process technologies at
commitment to its mission and focused on enhancing corporate governance and competitiveness
scale, in the most efficient and cost-effective manner, to enable innovators to successfully offer the best
particularly in technology leadership, digital excellence, and global footprint. TSMC’s Nominating,
products to the world.

04 05
 As we become a technology leader in the semiconductor industry, we are shouldering a greater
responsibility of R&D and investment in the industry. With our strong technology leadership in leading
edge process technologies and advanced packaging solutions, we are able to capture a greater portion
2 Introduction
of the industry’s growth opportunities.
Company Profile
We focus on the fundamentals of our business, and will execute our global manufacturing footprint Established in 1987 and headquartered in Hsinchu Science Park, Taiwan, TSMC pioneered the pure-play
strategy purposefully, to support our customers’ growth and increase their trust. We will continue to foundry business model with an exclusive focus on manufacturing its customers’products. By choosing
drive digital excellence across all our fabs globally and work towards fully intelligent and automated not to design, manufacture or market any semiconductor products under its own name, the Company
manufacturing. We are determined to be the most efficient and cost-effective manufacturer, no matter ensures that it never competes with its customers. Based on this founding principle, the key to TSMC’s
where we operate. success has always been to enable its customers’ success. TSMC’s foundry business model has led to
the rise of the global fabless industry and, since its inception, TSMC has been one of the world-leading
As the world grows more complex, semiconductor technology is the foundational technology for the semiconductor foundries. In 2023, the Company manufactured 11,895 different products using 288
modern digital economy. The semiconductor value in the global supply chain continues to increase, distinct technologies for 528 different customers.
providing greater value for our customers, and greater value opportunities for TSMC.
TSMC-made semiconductors serve a global customer base that is large and diverse entailing a wide
We do not take our role and responsibility in the global semiconductor industry lightly. We will not range of applications. These products are used in a variety of end markets including high performance
deviate from our pure-play foundry business model, which has demonstrated time and again to be a computing, smartphones, the Internet of Things (IoT), automotive, and digital consumer electronics. Such
win-win model for TSMC and our customers. We will continue to uphold our Trinity of Strengths of strong diversification helps to smooth fluctuations in demand, which in turn allows TSMC to maintain
Technology Leadership, Manufacturing Excellence, and Customer Trust, to enable our customers to high levels of capacity utilization and profitability, and generate healthy returns for future investment.
unleash their innovations in
their end markets. The annual capacity of the manufacturing facilities managed by TSMC and its subsidiaries exceeded 16
million 12-inch equivalent wafers in 2023. These facilities include four 12-inch wafer GIGAFAB® fabs,
We will hold ourselves to the four 8-inch wafer fabs, and one 6-inch wafer fab – all in Taiwan – as well as one 12-inch wafer fab at a
highest standards of corporate wholly owned subsidiary, TSMC Nanjing Company Limited, and two 8-inch wafer fabs at wholly owned
governance, and will adhere subsidiaries, TSMC Washington (previously called WaferTech) in the United States and TSMC China
to our core values of Integrity, Company Limited.
Commitment, Innovation and
Customer Trust, no matter In August 2023, TSMC announced its plan to jointly invest in European Semiconductor Manufacturing
where we operate, while Company (ESMC) GmbH, in Dresden, Germany, to build a specialty technology fab focusing on
pursuing a sustainable future. automotive and industrial applications. 70% of ESMC’s equity stake is owned by TSMC, with Robert
We deeply value your trust in Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V. each holding 10% equity
TSMC through the challenges stake. Total investments are expected to exceed 10 billion Euros. The planned fab is expected to have
of 2023. We are very excited a monthly capacity of 40,000 300mm (12-inch) wafers on TSMC’s 28nm/22nm planar complementary
about our future, and will metal oxide semiconductor (CMOS) and 16nm/12nm FinFET process technology. ESMC aims to begin
work hard to run our business construction of the fab in the second half of 2024 with production targeted to begin by the end of
well, deliver good results and 2027.
continue to maximize the value
for our shareholders in the The Company continues to execute its plan to construct and operate three fabs in Arizona, the United
years to come. States. Production of the first fab is targeted for the first half of 2025 and construction of the second
fab is ongoing. TSMC is also building a new fab in Kumamoto, Japan, with production projected for
late 2024. The Company plans to begin construction on a second fab on Kumamoto in 2024.
TSMC provides customer support, account management and engineering services through offices in
North America, Europe, Japan, China, and South Korea. At the end of 2023, the Company and its
subsidiaries employed more than 76,000 people worldwide.

The Company is listed on the Taiwan Stock Exchange (TWSE) under ticker number 2330, and its
American Depositary Shares (ADSs) are traded on the New York Stock Exchange (NYSE) under the
symbol TSM.
Mark Liu C.C. Wei
Chairman Chief Executive Officer

06 07
 R&D Highlights in 2023 TSMC developed 55nm node logic wafer and dynamic RAM heterogeneous wafer stacking processes,
not only increasing data transfer bandwidth but also significantly reducing power consumption, with
Advanced Technology Highlights
mass production already underway in 2023. TSMC also verified the wafer stacking technology of 28nm
2nm Technology
● 
node RRAM. The electrical performance and reliability passed the test, providing a solution for high
In 2023, TSMC’s 2nm technological development focused on baseline setup, yield enhancement, performance computing. In addition, TSMC demonstrated the wafer stacking technology of 22nm
transistor and interconnect R/C performance improvement, and reliability evaluation. During the year, node MRAM, which is expected to meet the high speed and low power requirements of AI computing.
major customers completed IP design and started silicon validation. The Company also developed low
resistance RDL (redistribution layer), super high performance metal-insulator-metal (MiM) capacitors Complementary Metal-Oxide-Semiconductor (CMOS) Image Sensors
● 

and backside power delivery network to further boost performance. TSMC achieved several accomplishments in CMOS Image Sensor technology in 2023, including (1)
risk production of the worldwide first 3D-MiM embedded LOFIC pixel with a high dynamic range
A14 Technology
●  (DR>100dB) for high-end smartphones or ADAS automotive imaging applications; (2) technology
Development of the 14 Angstrom (A14) platform technology, targeting both SoC and HPC transfer of an enhanced 3D-MiM (2.5X capacitance boost) embedded voltage domain global shutter
applications, made good progress in 2023. 14 Angstrom platform technology is expected to offer (VDGS) CMOS image sensor to a manufacturing fab; (3) demonstration of TSMC’s next generation
excellent improvement in speed, power, density and cost over 2nm technology. Si SPAD (single photon avalanche diode) technology with 55% pixel area shrinkage and 2X PDE
improvement for more advanced and powerful 3D depth sensing applications; and (4) demonstration
Lithography Technology
●  of new generation Ge/Si heterogeneous photodetector with 90% dark current reduction for SWIR
In 2023, TSMC R&D demonstrated high performance and expected wafer yield for the development (short-wave infrared radiation) 3D depth and bio signal sensing applications.
of 2nm technology. The Company’s R&D efforts in lithography have been focused on improving
patterning and material quality, controlling variations, reducing defects, and lowering costs to Advanced Packaging Technology Highlights
support 2nm technology. Looking ahead to A14 and beyond, TSMC R&D will continue to explore 3DIC and TSMC-SoIC®
● 

next-generation EUV (extreme ultraviolet) lithography scanners, conduct research on mask pellicles TSMC-SoIC® wafer product is an innovative wafer-level frontend 3DIC chip stacking platform with
and blanks to support leading-edge technology and extend Moore’s Law. Furthermore, TSMC R&D will outstanding bonding density, interconnect bandwidth, power efficiency, and thin profile. It extends
continuously evaluate new process technologies and materials to enhance lithography capabilities in Moore’s Law through system-level scaling with sustainable performance gains and corresponding cost
the future. benefits. SoIC integrated chips can be subsequently assembled by using conventional packages or
TSMC’s new 3DFabric® technology service, such as CoWoS® or InFO, for next generation HPC, AI and
Specialty Technology Highlights mobile applications. The SoIC CoW Face-to-Back Gen-1 process is in production and the SoIC CoW
Mixed Signal/Radio Frequency (MS/RF)
●  Face-to-Back Gen-2 process, with significant thermal performance improvement, is under product
While global consumer electronics were impacted by the aftermath of economic uncertainty triggered qualification and will enter production phase in 2024. The SoIC CoW Face-to-Face Gen-1 process
by COVID-19, in 2023 TSMC introduced N6RF+ technology to provide an alternative, cost-effective is under development and will provide an ultrahigh density connection solution in 2025. TSMC will
option to solve the excess inventory in smartphone markets and also provided N4RF for more continue to pursue SoIC technological improvements and co-optimize with the Company’s advanced
high-end RF applications. To address the market in mmWave and RF frontend modules, the Company silicon technologies for further gains in transistor density, system power/performance/area and cost.
made continuous enhancements in N28HPC+ and N40SOI RF technologies by value-added design
technology co-optimization (DTCO) as verified by many win-win solutions with customers. TSMC CoWoS®
● 

provided services for other RF technologies aimed at new emerging markets, such as low earth orbit CoWoS® advanced packaging service is the leading 2.5D technology to make ultra-high-performance
(LEO) satellites and autonomous vehicles, in the form of RF process design kits (PDKs) with the most AI and HPC packages by integrating most advanced logic and memory dies on an interposer. Market
powerful ecosystem and time-to-market advantages from circuit design to product verification. demands became even greater with the advent of generative AI in late 2022. TSMC qualified the
CoWoS®-S Si interposer up to 3.3-reticle size (1 reticle size ~830mm2), with volume production
Emerging Memory/Memory WoW Stacking Technology
● 
launched in 2023. Beyond 3.3-reticle size, CoWoS®-L with reconstituted interposer of multiple LSIs (local
The Company reached several major milestones in emerging memory technologies in 2023. TSMC silicon interconnects) increases the momentum for continuous interposer scaling. After its successful
offered RRAM as a low-cost embedded NVM (Non-Volatile Memory) solution for the price sensitive development in 2023, the first generation CoWoS®-L technology will enter volume production in 2024.
IoT market. The Company’s 40nm, 28nm and 22nm nodes entered volume production, while 12nm HBM3E, the newest generation of high bandwidth memory, is ready now for production on both
and the next generation also entered development stage. TSMC has achieved the world’s first mass CoWoS®-S and CoWoS®-L, while the next generation of stacked memory of HBM4 and process upgrades
production of 22nm consumer-grade MRAM. Moreover, the Company has taken steps to enhance in CoWoS® advanced packaging service are being planned to meet new performance requirements.
its properties to meet automotive grade applications on the 22nm node. In 2023, TSMC successfully
InFO
● 
completed the technical qualification of the 16nm consumer-grade MRAM. Going forward, TSMC will
In 2023, TSMC continued its industry leadership in high-volume manufacturing of InFO_PoP Gen-8
collaborate closely with customers to develop an automotive grade 16nm MRAM, as well as explore
packaging for mobile applications. InFO_PoP Gen-9 was also successfully qualified for mobile
the next generation of 16nm embedded MRAM technology and focus on reducing the bit cell size
applications, as was InFO_oS Gen-5, offering larger application-specific integrated circuits (ASIC) area,
for cost efficiency to accelerate the deployment of future technologies for software-defined vehicles
larger package size and higher bandwidth. InFO_M_PoP Gen-1, which integrates different functional
(SDVs), smart sensor and edge-AI applications.
chips suitable for wearable applications, started volume production in 2023, while the next-generation
InFO_PoP with backside RDL for integrated low power DDR DRAM technology (LPDDR) was qualified in
2023 and is ready for volume production in 2024.

08 09
 Revenue Net Income
Revenue and Net Income
3 Market Overview
 Unit: NT$ Billion  Unit:
Unit: NT$
NT$ Billion
Billion
1,070 1,339 1,587 2,264 2,162 345
597 518
763 597
843 1,017
948 838
977 TSMC estimates that the worldwide semiconductor market excluding memory reached US$481
188 264 307 334 343
billion in revenue in 2023, representing a 2% decline from 2022. In the foundry segment of the
semiconductor industry, total revenue fell to US$114 billion in 2023, a 13% year-over-year decrease.

In 2023, TSMC’s revenues in the foundry segment declined, primarily due to the weak electronic
equipment (EE) end demand and supply-chain inventory corrections. Although industry megatrends,
such as 5G, artificial intelligence (AI), and accelerating digital transformation remained intact,
macro-economic uncertainties dampened both consumer and business spending, resulting in reduced
demand for many EE devices, such as smartphones and personal computers (PCs). In addition, the
electronics supply chain experienced severe inventory corrections throughout 2023 to digest the excess
inventory that had accumulated over the past two years due to supply uncertainties, impacting the
2019 2020 2021 2022 2023 2019
2013 2020
2014 2021
2015 2022
2016 2023
2017
Net Revenue Net Income (Shareholders of the Parent)
growth of foundry segment and TSMC.

Looking ahead to 2024, macro-economic and geopolitical uncertainties remain high. However,
TSMC expects end demand for many EE products such as smartphones and PCs to gradually recover
Market Capitalization – Year End Assets and Equity – Year End
with mild growth spurred in part by the pent-up demand after consecutive declines in the past two
 Unit: NT$ Billion  Unit: NT$ Billion
years. In addition, the acceleration of AI related adoptions will also fuel demand for semiconductors.
8,671 14,210 16,200 11,659 15,589 2,265 2,761 3,726 4,965 5,532
1,622 1,851 2,171 2,960 3,483 The Company also expects the overall excess inventory in the system and IC companies to be largely
digested and back to healthy levels by the first half of 2024, establishing a solid base for growth in
2024. For the longer term, driven by the above-mentioned megatrends and increasing semiconductor
content in most EE devices, TSMC projects a high single-digit compound annual growth rate for
the worldwide semiconductor market excluding memory from 2023 through 2028. Furthermore,
the Company expects foundry segment revenue growth to outpace the growth of semiconductors
excluding memory, fueled by continuing market share gains by fabless companies, increases in
integrated device manufacturer (IDM) outsourcing, and the expanding use of in-house application-
specific integrated circuits (ASIC) by systems companies.

2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 As an upstream supplier in the semiconductor supply chain, the foundry segment is tightly correlated
Total Assets Total Equity
with the market health of all major platforms including high performance computing (HPC),
smartphones, Internet of Things (IoT), automotive, and digital consumer electronics (DCE).

Capital Expenditures R&D Expenditures High Performance Computing (HPC)

● 

 Unit: NT$ Billion  Unit: NT$ Billion

The HPC platform includes PCs, tablets, game consoles, servers, base stations and more. Major HPC
460 507 839 1,083 950 91 109 125 163 182 unit shipments declined 14% in 2023 due to prolonged high inflation, macro-economic uncertainty
and continued inventory correction, all resulting in weak demand on the consumer side. Meanwhile,
demand for servers and data centers equipped with accelerators was relatively healthy, to fulfill the
rapidly expanding types and needs of AI applications, especially generative AI, and continued 5G base
station deployment.

Moving into 2024, despite lingering macro-economic uncertainty, TSMC projects low-single-digit
growth in HPC unit shipments driven by normalized inventory levels, pent-up demand resulting from
declines in the past two years, and the ongoing AI arms race. Longer term, an increasingly intelligent
and more connected 5G world will demand massive computing power as well as increasingly
2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 energy-efficient computing. Both of these require higher performance and more power-efficient
central processing units (CPUs), graphics processor units (GPUs), Network Processing Units (NPUs), AI
accelerators, and related ASICs, which will drive the overall HPC platform towards richer silicon content,

10 11
 more advanced process technologies and advanced 3D packaging. These trends are all favorable to ASIC processors, in-car networking, sensors,
TSMC given TSMC’s technology leadership in these areas. and power management ICs (PMICs), thus
continuously increasing the silicon content per
Smartphones
●  car. TSMC is well-positioned to support the
Due to higher inflation, a soft global economy and the ongoing Russo-Ukrainian war, smartphone automotive industry’s megatrend transition,
unit shipments declined 6% in 2023, reflecting a slowdown in the pace of 5G commercialization as by providing advanced process technologies
well, thus prolonging the replacement cycle of 4G. The long supply chain inventory correction having and manufacturing solutions that enable
subsided, smartphone growth is expected to return due to greater demand from emerging countries as customers to develop competitive products
well as cyclical recovery. TSMC therefore projects a low-single-digit growth for the smartphone market for the automotive market. In addition, TSMC
in 2024. Over the longer term, however, the inevitable migration to 5G, together with improved also offers a range of automotive-grade
performance, longer battery life, biosensors and more edge AI features, will all continue to propel manufacturing processes, including those with
smartphone sales growth going forward. AEC-Q100 and ISO 26262 certification, to
ensure the highest levels of quality and reliability
High performance and power efficient IC technologies are essential requirements among handset for automotive applications.
manufacturers, and highly integrated chips and advanced 3D packaging designs are the preferred
solutions to optimize cost, power and form factor (IC footprint and thickness). The migration to Digital Consumer Electronics (DCE)
● 

advanced process technologies will certainly continue, spurred by the need for higher performance The global DCE market declined 3% in 2023 as
chips to run edge AI applications and various complex software computations as well as higher overall demand was sluggish for TVs, set-top
resolution images and video. TSMC is an acknowledged leader in process technology for manufacturing boxes (STB) and other consumer products that
highly integrated chips and advanced 3D packaging designs and, as such, is very well positioned to sold well during pandemic. Fighting longer
serve the evolving smartphone market. replacement cycles, as well as high inflation
squeezing consumer budgets, the TV market
Internet of Things (IoT)
●  had a modest upswing of shipments in the U.S.
The IoT platform includes various types of smart connected devices ranging from wearables and health due to restocking of low channel inventory but
monitors to home and industrial automation devices. After the pandemic, digital transformation has it was offset by weak demand in China, where
resumed, refueling IoT growth momentum. Consumer and enterprise spending, however, was also economic growth has slowed and consumer
held back by global inflation and economic slowdown. The end result was a modest 3% growth rate in spending fell due to a variety of factors
IoT device shipments in 2023, with smart health and smart retail devices as the major drivers. including a weakened housing market, low
marriage rates, and the US-China decoupling.
As IoT devices incorporate more AI features, the IoT industry is expected to maintain long-term growth.
The first half of 2024 is projected to remain somewhat depressed, with growth momentum expected In 2024, the DCE market is expected to have
to recover in the second half. Overall, TSMC projects IoT unit shipments will enjoy a high-single-digit gradual recovery in Europe and emerging
growth in 2024. Additionally, as more AI functions to be incorporated, IoT devices will require chips regions. Therefore, TSMC forecasts shipments
with higher performance and lower power consumption. TSMC offers various manufacturing processes to show a low-single-digit annual growth rate.
that supports the need of IoT industry, including advanced technology, ultra-low power (ULP), and Potential growth drivers of the DCE market
various special process technologies, to support customers in providing differentiated, innovative and include large screens, 120Hz/165Hz high frame
competitive products, and fulfill requirements of sustainability development. rate Gaming TVs, voice AI control, and WiFi 6
connectivity. Regardless of the timing of the
Automotive
●  recovery, TSMC’s advanced technologies will
continue to enable DCE customers to create and
The global automotive market continues to recover from the supply constraints of the past couple of
differentiate their innovative products.
years. Worldwide car unit production grew 9% in 2023, supported by pent-up consumer demand
and OEM inventory restocking as supply chains normalized. The ongoing headwinds of high inflation
and macro-economic uncertainty, however, are expected to hold global car unit production to
low-single-digit decline in 2024.

The megatrend in the automotive industry today is moving toward “greener, safer and smarter,”
which will accelerate the adoption of electric vehicles (EVs), advanced driver assistance systems (ADAS)
and smart cockpit/infotainment systems, along with new electrical/electronic (E/E) architecture. All
these will lead to further boost demand for Application Processor (AP)/Microcontroller Unit (MCU)/

12 13
 4 TSMC’s Trinity of Strengths Faced with the continuous challenge of significantly scaling up semiconductor computing power every
two years, thereby extending Moore’s Law, the Company has focused its R&D efforts on contributing to
customers’ product success by offering leading-edge technologies and design solutions. In 2023, while
the development of 2nm technology continued baseline setup and moved into yield enhancement
TSMC’s has been able to achieve its outstanding track record by unleashing the innovation of our
stage, TSMC started development and made good progress on 14 Angstrom (A14) technology, which
customers. We do not compete with our customers but support them as they grow, and participate
aims to further improve speed, power, density and cost. Furthermore, the Company’s research efforts
in their success as they flourish. Our ability to unleash innovation is rooted in our trinity of strengths:
continued pushing forward with exploratory studies for nodes beyond 14 Angstrom technology.
Technology Leadership, Manufacturing Excellence, and Customer Trust.

In addition to complementary metal oxide semiconductor (CMOS) logic, TSMC conducts R&D on a wide
Each component of the trinity plays a critical part. Our Technology Leadership allows us to
range of other semiconductor technologies that provide the functionality required by customers for
provide leading-edge technologies to serve the most advanced product designs, and also enables
high-performance computing, mobile SoC, and other applications. Highlights in 2023 included:
a broad portfolio of specialty processes offerings for a diverse spectrum of IC designers. Our
Manufacturing Excellence offers customers the fastest time-to-volume for their products and gives
The Company’s integrated interconnect and packaging solution, the 3DFabric® technology service,
● 
us the flexible capacity to not only manufacture for the foundry segment’s largest customer base,
showed further progress in supporting the newest generation of high bandwidth memory, HBM3E,
but also to provide more capacity when their products succeed and begin to generate high demand.
on both CoWoS®-S and CoWoS®-L. While TSMC continued its industry leadership in high-volume
Finally, Customer Trust keeps the goals of TSMC and its customers aligned, because we do not believe
manufacturing of InFO_PoP Gen-8 packaging, InFO_PoP Gen-9 was also fully qualified for mobile
long-term success is possible if our customers do not succeed.
applications. In addition, InFO_oS Gen-5 was successfully qualified, offering larger application-
specific integrated circuits (ASIC) area, more chip-partition integration, larger package size and higher
Technology Leadership
bandwidth.
As a semiconductor industry leader, TSMC provides the broadest range of advanced, specialty and
advanced packaging technology services. Our technology offerings possess the breadth of specialty In specialty technologies, examples of progress included: 0.13μm and 90nm BCD
● 

technologies to suit the needs of a broad array of customers, and our leading-edge technology (Bipolar-CMOS-DMOS) technologies were expanded to meet the demand of the automotive market;
development has the depth to give customers a head start in the next wave of fast-growing product TSMC’s industry leading GaN (Gallium Nitride) power device technology, the second generation of
segments. We commit considerable resources to maintain this competitive advantage in technology. In 650V and 100V E-HEMT, entered the reliability verification stage with production expected in 2024;
2023, TSMC continued to invest in research and development, with total R&D expenditures amounting the worldwide first CMOS image sensor technology with 3D-MiM embedded LOFIC (lateral overflow
to 8.5% of revenue. integration capacitor) pixel with a high dynamic range (DR>100dB) for high-end smart phone or
advanced driver-assistance systems (ADAS) automotive imaging applications entered risk production;
and the world’s first mass-production of 22nm consumer-grade magnetoresistive random access
Comprehensive Technology Portfolio
memory (MRAM) was achieved.
2nm

3nm
2nm TSMC’s design enablement team also provides customers with comprehensive support to optimize
3nm
5/4nm design productivity and reduce cycle time, enabling their products to go from the designer’s desk to
5/4nm
7/6nm
the marketplace is as short a time as possible. Our design support includes design flows for electronic
design automation (EDA); silicon-proven IP building blocks, process design kits (PDKs), and technology
16/12nm
7/6nm
files. As of 2023, the Company had expanded its library and silicon IP portfolio to contain more than
16/12nm
20nm
73,000 items, a 33% increase over 2022, and has provided customers more than 48,000 technology
20nm
22nm
files and 3,400 PDKs.
22nm
28nm

40nm
28nm Manufacturing Excellence
40nm
65/55nm
TSMC deployed 288 distinct process technologies, and manufactured 11,895 products for 528
90/80nm
65/55nm
customers in 2023, making it the world’s most diversified and largest provider of logic IC capacity.
90/80nm
0.13/0.11µm
TSMC’s unique manufacturing system is tailored to manage the diverse manufacturing requirements
0.13/0.11µm
0.18/0.15µm
of each customer, product, and technology without compromising speed, precision, and flexibility to
0.18/0.15µm
0.25µm adapt to changing circumstances. At the same time, our people and systems deliver these results in the
0.35µm
0.25µm leanest and most efficient way possible to support TSMC’s profitability.
0.35µm
>0.5µm

>0.5µm The Company’s sophisticated, agile and intelligent operating system drives manufacturing
excellence. TSMC has integrated process experience, machine tuning, manufacturing know-how,
MEMS Image Sensor Embedded RF Logic Analog High Voltage BCD-
NVM Power IC and AI technologies to create an intelligent manufacturing environment. Intelligent manufacturing
MEMS Image Sensor Embedded RF Logic Analog High Voltage BCD-
NVM Power IC

Available In Development

Available In Development
14 15
 technologies are widely applied to lean manufacturing, employee productivity, equipment productivity,
process and equipment control, quality defense, and robotic control to optimize quality, productivity,
efficiency, and flexibility. The end result is real-time information analysis, improved forecast capability,
5 Corporate Governance
maximum cost effectiveness, and accelerated innovation.
TSMC advocates and acts upon the principles of operational transparency and respect for shareholder
rights. We believe that the basis for successful corporate governance is a sound and effective Board
TSMC has also integrated new applications such as intelligent mobile devices, IoT, edge computing,
of Directors. In line with this principle, TSMC Board of Directors delegates various responsibilities
and mobile robot, with intelligent automated material handling systems (AMHS) to consolidate wafer
and authority to three Board Committees, Audit and Risk Committee, Compensation and People
manufacturing data collection and analysis, utilize manufacturing resources efficiently, and maximize
Development Committee, and Nominating, Corporate Governance and Sustainability Committee. Each
manufacturing effectiveness. TSMC continues to improve semiconductor production through AI that
Committee’s chairperson regularly reports to the Board on its activities and recommendations.
uses massive amounts of production data to achieve agile and intelligent operations.

TSMC Trinity of Strengths Enables Us to be Everyone’s Foundry Board of Directors

TSMC’s Board of Directors consists of ten distinguished members with a great breadth of experience
as world-class business leaders or professionals. We deeply rely on them for their diverse knowledge,
Technology Manufacturing Customer personal perspectives, and solid business judgment. Seven of those ten members are Independent
Leadership Excellence Trust Directors: Sir Peter Leahy Bonfield, Mr. Michael R. Splinter, Mr. Moshe N. Gavrielov, Dr. L. Rafael Reif,
Ms. Ursula M. Burns, Ms. Lynn L. Elsenhans, and Dr. Chuan Lin.
>280 >12M >11,800 TSMC’s Board is comprised of a diverse group of professionals from different backgrounds in
Technologies 12” equivalent Customer Products
wafers no competition with industries, academia, law, etc. These professionals include citizens from Taiwan, Europe and the
customers U.S. with world-class business operating experience, two of whom is female. Independent Directors
constitute 70% of the Board.

In December 2023, TSMC announced that Dr. Mark Liu plans to retire from TSMC in June 2024, and
Customer Trust will not seek re-election to the board of directors. During his tenure, Dr. Liu reaffirmed the Company’s
commitment to its mission and focused on enhancing corporate governance and competitiveness
Customer Trust is deeply ingrained as one of TSMC’s four core values and is our keystone to unleashing
particularly in technology leadership, digital excellence, and global footprint. TSMC’s Nominating,
innovation. It ensures that we win together with our customers in long-term relationships that last
Corporate Governance and Sustainability Committee recommended Dr. C.C. Wei to succeed as TSMC’s
from one generation of technology to another. A critical foundation stone for customer trust is a
next Chairman, and he was elected to the incoming board in June 2024.
commitment TSMC made when it first opened for business: to never compete with customers. As a
result, TSMC does not design IC products, but chooses to focus all of its resources on serving as the
Inheriting the spirit of TSMC’s Founder, Dr. Morris Chang’s philosophy on corporate governance,
trusted foundry partner for its customers.
under the leadership of Chairman and CEO Dr. C.C. Wei, TSMC’s Board of Directors takes a serious and
forthright approach to its duties and is a dedicated, competent and independent Board.
The dedicated foundry business model gives TSMC a distinct advantage over IDM foundries which give
priority to manufacturing its own IC products over those of its customers. Customers that work with
The Board’s primary duty is to supervise the Company’s compliance with relevant laws and regulations,
TSMC will not need to be concerned that their products will compete with their foundry’s products
financial transparency, timely disclosure of material information, and maintaining of the highest
in the marketplace. Nor will they need to worry that their capacity needs will take a back seat to the
integrity. TSMC’s Board of Directors strives to perform these responsibilities through its Audit and Risk
capacity needs of the IDM’s products.
Committee, Compensation and People Development Committee, Nominating, Corporate Governance
and Sustainability Committee, the hiring of a financial expert consultant for the Audit and Risk
TSMC’s engagement with customers begins at the earliest stages of R&D to understand their
Committee, and coordination with our Internal Audit department.
technology needs, and continues through to design support, mask making, manufacturing, and
packaging and testing. Along the way, customers can call on the support of a dedicated customer
The second duty of the Board of Directors is to appoint and dismiss officers of the Company when
service team, as well as 24-hour a day, seven-day-a-week access to real-time information through
necessary, to evaluate management performance and to review the succession plan for senior
TSMC-Online, a suite of web-based applications that facilitates design, engineering, and logistics
executives. TSMC’s management has maintained a healthy and functional communication with the
collaboration. From the fundamental tenets of TSMC’s business model to the fine-grained details of
Board of Directors, has been devoted in executing guidance of the Board, and is dedicated in running
doing business together, customers can be assured that TSMC is committed to winning together with
the business operations, all to achieve the best interests for TSMC shareholders.
them.

16 17
 6 Environmental,
Governance
Social, and
The third duty of the Board of Directors is TSMC actively implements ESG management following three missions: Acting with Integrity,
to resolve critical matters, such as capital Strengthening Environmental Protection, and Caring for the Disadvantaged. In so doing, the Company
appropriations, investment activities, dividends, seeks maximum achievements as the leading technology and capacity provider of the global logic
etc. IC industry and strives to establish mutually beneficial interaction with all stakeholders – employees,
shareholders/investors, customers, suppliers/contractors, governments/associations and society as a
The fourth duty of the Board of Directors whole – aiming to create sustainable value and to be a force for positive change.
is to provide guidance to the Company’s
management team and risk management. In TSMC’s ESG Management
each quarter, TSMC’s management reports
TSMC has established the ESG Steering Committee as the highest level of ESG decision-making,
to the Board on various subjects (including
chaired by the Company’s Chairman, while the Chairperson of the ESG Committee serves as executive
ESG programs) and strategies, and spends
secretary, and other members are senior executives from a wide variety of functions. All work together
substantial time and effort to communicate with
to examine material ESG issues in relation to the Company’s operations, set the short-, medium- and
the Board. The Board would comment on the
long-term strategic directions that link to the UN’s Sustainable Development Goals (SDGs).
risk and probabilities for success of the proposed
corporate strategies. The Board also periodically
The ESG Committee functions to coordinate and integrate resources, and facilitate communication
oversees those strategies’ implementation and
among various divisions, implementing the resolutions of the Company’s ESG Steering Committee.
outcomes, and may suggest the management
The ESG Department, on behalf of the ESG Committee, works together with cross-organizational
team to make adjustments to the strategic goals
representatives to identify key sustainability issues in relation to the Company’s operations and
and objectives if necessary.
stakeholders’ concerns. Task forces are formed to address various issues and frame adaptive strategies,
goals and action plans. The ESG Committee holds quarterly meetings to track progress and ensure
the strategies are implemented effectively in daily operations. At the same time, every quarter the
chairperson of the ESG Committee reports on the implementation of plans and results to the Board of
Directors/Nominating, Corporate Governance and Sustainability Committee, under whose supervision
the ESG Committee continues to improve TSMC’s sustainability management policies, strategies, and
goal setting and deepen sustainable development.

In 2023, TSMC focused primarily on green manufacturing and supply chain management (including
net zero emissions, renewable energy access and use, biodiversity strategy, and low-carbon value chain
management), diverse and inclusive workplace, and talent development (including a series of activities
promoting diversity and inclusion, conducting human rights due diligence, deepening high school
students’ science, technology, engineering, and mathematics (STEM) programs), and public welfare
investments such as the Public Welfare Green Energy Project. TSMC also planned and oversaw ESG
budgets for 2023 and 2024. The Company uses sustainability reports as an ESG management tool
and updates themed reports such as the Climate and Nature Report, the UN’s SDG Action Report, and
the Materiality Analysis Report. In June 2024, TSMC will release its first Sustainability Impact Valuation
Report, which includes social impact and environmental profit and loss analysis, and Human Rights
Report to further expand sustainability transparency and drive towards a better future.

ESG Highlights in 2023

TSMC Accelerates Timetable for Renewable Energy Target

In September 2023, TSMC announced an acceleration of its RE100 sustainability timetable, moving
its target for 100% renewable energy consumption for all global operations forward to 2040 from
2050. TSMC also raised its 2030 target for company-wide renewable energy consumption to 60%
from 40%. TSMC committed to net zero emissions by 2050 two years ago on the International Day for
the Preservation of the Ozone Layer, and now this new timetable demonstrates TSMC’s determination

18 19
 to commit to its aspirations as the company
actively pursues more opportunities and
possibilities to meet environmental sustainability
7 Financial Statements
goals at a faster pace.
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
TSMC Fabs Mark Industry First in Jointly Consolidated Condensed Balance Sheets
Obtaining Platinum Rating for UL 2799 December 31, 2019 - 2023
Waste Recycling Standard (In Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))
In line with TSMC’s principle of “minimizing
2023 2022 2021 2020 2019
waste, maximizing recycling, and optimizing
USD NTD NTD NTD NTD NTD
management”, TSMC has continued to advance
ASSETS
its recycling and reuse methodologies and Current Assets
increased the waste recycling rate for fabs Cash and Cash Equivalents $ 47,661 $ 1,465,428 $ 1,342,814 $ 1,064,990 $ 660,171 $ 455,399
in Taiwan from 96% to 97% in 2023. As a Investments in Marketable Financial Instruments 7,227 222,217 218,672 123,465 131,306 128,049
Accounts Receivable 6,568 231,340 198,302 146,038 139,771
result, TSMC’s Taiwan fabs became the first Inventories 8,163 250,997 221,149 193,102 137,353 82,981
semiconductor facilities in the world to jointly Other Current Assets 1,739 53,453 38,922 27,214 17,317 16,414
obtain the highest platinum rating for UL 2799 Total Current Assets 71,358 2,194,033 2,052,897 1,607,073 1,092,185 822,614

certification in October. This achievement

Non-current Assets
builds on the success of Phase one and two of Long-term Investments 4,210 129,442 68,928 29,384 27,728 30,172
TSMC’s Fab 12 in gaining the UL 2799 platinum Property, Plant and Equipment 99,667 3,064,475 2,693,837 1,975,119 1,555,589 1,352,377
certification in 2021. TSMC will continue to Right-of-use, Intangible and Other Non-current
Assets 4,697 144,421 149,117 113,927 85,209 59,642
strive towards its goal of net-zero emission in Total Non-current Assets 108,574 3,338,338 2,911,882 2,118,430 1,668,526 1,442,191
2050 and reaffirm its commitment to the United
Total Assets $179,932 $5,532,371 $4,964,779 $3,725,503 $2,760,711 $2,264,805
Nations Sustainable Development Goal 12.
LIABILITIES AND SHAREHOLDERS' EQUITY
Renewable Energy Joint Procurement Current Liabilities
Program Short-term Loans $ - $ - $ - $ 114,921 $ 88,559 $ 118,522
Accounts Payable 1,864 57,293 56,522 48,723 41,095 40,206
In April 2023, TSMC announced the first joint Payables to Contractors and Equipment Suppliers 5,577 171,485 213,500 145,742 157,805 140,811
procurement renewable energy program in Cash Dividends Payable 5,482 168,558 142,617 142,617 129,652 129,652
Accrued Expenses and Other Current Liabilities 16,488 506,954 512,274 282,933 197,440 129,745
Taiwan, and signed a long-term renewable Current Portion of Bonds Payable and Bank Loans 302 9,293 19,314 4,567 2,600 31,800
energy PPA (Power Purchase Agreement) with Total Current Liabilities 29,713 913,583 944,227 739,503 617,151 590,736
ARK Power with a total 1 TWh annually or a
total of 20 TWh for 20 years, of which 500GWh Non-current Liabilities
Bonds Payable 29,723 913,900 834,336 610,071 254,105 25,100
was subscribed by TSMC every year, and another Other Non-current Liabilities 7,208 221,625 225,727 205,196 38,833 26,874
500GWh was opened to joint subscription by Total Non-current Liabilities 36,931 1,135,525 1,060,063 815,267 292,938 51,974
TSMC’s local supply chain partners. It is expected
Total Liabilities 66,644 2,049,108 2,004,290 1,554,770 910,089 642,710
that 500,000 metric tons of CO2 emissions will
be reduced annually in the future, strengthening Equity Attributable to Shareholders of the Parent
the carbon reduction action of local supply Capital Stock at Par Value 8,434 259,321 259,304 259,304 259,304 259,304
chains. Capital Surplus 2,273 69,876 69,330 64,762 56,347 56,340
Legal Capital Reserve 10,119 311,147 311,147 311,147 311,147 311,147
Special Capital Reserve - - 3,154 59,304 42,259 10,675
Unappropriated Earnings 92,591 2,846,884 2,323,224 1,536,378 1,235,280 1,011,513
Others (921) (28,314) (20,506) (62,609) (54,680) (27,569)
Equity Attributable to Shareholders of the
Parent 112,496 3,458,914 2,945,653 2,168,286 1,849,657 1,621,410
Noncontrolling Interests 792 24,349 14,836 2,447 965 685
Total Shareholders' Equity 113,288 3,483,263 2,960,489 2,170,733 1,850,622 1,622,095

Total Liabilities & Shareholders' Equity $179,932 $5,532,371 $4,964,779 $3,725,503 $2,760,711 $2,264,805

Note: Amounts in New Taiwan dollars have been translated into U.S. dollars at the rate of NT$30.747 for the year ended December 31, 2023.

20 21
 Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
Consolidated Condensed Statements of Comprehensive Income Consolidated Condensed Cash Flow Statements
For the Years Ended December 31, 2019 - 2023 For the Years Ended December 31, 2019 - 2023
(In Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD), Except for Earnings Per Share) (In Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))

2023 2022 2021 2020 2019 2023 2022 2021 2020 2019
USD NTD NTD NTD NTD NTD USD NTD NTD NTD NTD NTD
Net Revenue $ 69,298 $ 2,161,736 $ 2,263,891 $ 1,587,415 $ 1,339,255 $ 1,069,985 Cash Flows from Operating Activities:
Income Before Income Tax $ 31,389 $ 979,171 $ 1,144,191 $ 663,126 $ 584,777 $ 389,845
Cost of Revenue (31,628) (986,625) (915,536) (767,878) (628,125) (577,283) Depreciation & Amortization 17,060 532,191 437,254 422,395 331,725 286,884
Share of Profits of Associates (149) (4,655) (7,799) (5,603) (3,593) (2,844)
Gross Profit 37,670 1,175,111 1,348,355 819,537 711,130 492,702 Income Taxes Paid (5,125) (159,875) (86,561) (83,498) (51,362) (52,044)
Changes in Working Capital & Others (3,362) (104,865) 123,514 115,741 (38,880) (6,702)
Operating Expenses Net Cash Generated by Operating Activities 39,813 1,241,967 1,610,599 1,112,161 822,667 615,139
Research and Development Expenses (5,846) (182,370) (163,262) (124,735) (109,486) (91,419)
Sales, General and Administrative Expenses (2,291) (71,464) (63,446) (44,488) (35,570) (28,086) Cash Flows from Investing Activities:
Total Operating Expenses (8,137) (253,834) (226,708) (169,223) (145,056) (119,505) Interest Received 1,791 55,887 18,084 5,991 9,775 16,875
Cash Dividend Received 113 3,522 3,016 2,499 3,487 2,039
Other Operating Income and Expenses 6 189 (368) (333) 710 (496) Acquisitions of:
Property, Plant and Equipment (30,448) (949,817) (1,082,672) (839,196) (507,239) (460,422)
Marketable Financial Instruments (7,254) (226,282) (237,818) (259,688) (266,940) (257,997)
Income from Operations 29,539 921,466 1,121,279 649,981 566,784 372,701
Proceeds from Disposal or Redemption of:
Property, Plant and Equipment 23 704 983 390 607 287
Non-operating Income and Expenses
Marketable Financial Instruments 5,460 170,305 107,293 263,973 267,247 247,212
Share of Profits of Associates 149 4,655 7,799 5,603 3,593 2,844
Others 1,268 39,561 186 (10,335) (12,719) (6,796)
Net Interest Income (Expenses) 1,548 48,294 10,672 294 6,937 12,939
Net Cash Used In Investing Activities (29,047) (906,120) (1,190,928) (836,366) (505,782) (458,802)
Other Gains and Losses 153 4,756 4,441 7,248 7,463 1,361
Total Non-operating Income and Expenses 1,850 57,705 22,912 13,145 17,993 17,144
Cash Flows from Financing Activities:
Increase in Hedging Financial Liabilities - Bank Loans 895 27,909 - - - -
Income before Income Tax 31,389 979,171 1,144,191 663,126 584,777 389,845
Increase (Decrease) in Short-term Loans - - (111,960) 35,668 (31,572) 31,804
Proceeds from Issuance of Bonds 2,747 85,700 198,293 364,593 236,726 -
Income Tax Expenses (4,533) (141,403) (127,290) (66,053) (66,619) (44,501)
Repayment of Bonds (580) (18,100) (4,400) (2,600) (31,800) (34,900)
Repayment of Long-term Bank Loans (56) (1,757) (167) - - -
Net Income 26,856 837,768 1,016,901 597,073 518,158 345,344 Interest Paid (556) (17,359) (12,219) (3,834) (1,781) (3,597)
Cash Dividends Paid for Common Stock (9,352) (291,722) (285,234) (265,786) (259,304) (259,304)
Other Comprehensive Income (Losses) (283) (8,814) 42,430 (7,619) (30,322) (11,824) Repurchase of Treasury Stock - - (872) - - -
Others 334 10,435 16,315 8,567 (884) (3,642)
Comprehensive Income $26,573 $828,954 $1,059,331 $589,454 $487,836 $333,520 Net Cash Used in Financing Activities (6,568) (204,894) (200,244) 136,608 (88,615) (269,639)

Net Income Attributable to:

Effect of Exchange Rate Changes on Cash and Cash
Shareholders of the Parent $ 26,879 $ 838,498 $ 1,016,530 $ 596,540 $ 517,885 $ 345,264 Equivalents and Others (268) (8,339) 58,397 (7,584) (23,498) (9,114)
Noncontrolling Interests (23) (730) 371 533 273 80
$26,856 $837,768 $1,016,901 $597,073 $518,158 $345,344 Net Increase (Decrease) in Cash and Cash Equivalents 3,930 122,614 277,824 404,819 204,772 (122,416)

Earnings per Share - Diluted (NT$) $1.04 $32.34 $39.20 $23.01 $19.97 $13.32 Cash and Cash Equivalents at Beginning of Period 43,046 1,342,814 1,064,990 660,171 455,399 577,815
Earnings per ADR - Diluted (US$) $5.18 $161.69 $6.57 $4.12 $3.39 $2.15
Cash and Cash Equivalents at End of Period $46,976 $1,465,428 $1,342,814 $1,064,990 $660,171 $455,399
Note: Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$31.195 for the year ended December 31, 2023.
Note: Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$31.195 for the year ended December 31, 2023.

22 23
Contact Information
Taiwan Asia

Corporate Headquarters & Fab 12A Fab 15B TSMC China Company Limited TSMC Design Technology Japan, Inc.
8, Li-Hsin Rd. 6, Hsinchu Science Park, Hsinchu 300-096, 1, Xinke Rd., Central Taiwan Science Park, Taichung 428-015, 4000, Wen Xiang Road, Songjiang, Shanghai, China 10F, Minatomirai Grand Central Tower, 4-6-2,
Taiwan, R.O.C. Taiwan, R.O.C. Postcode: 201616 Minatomirai, Nishi-ku, Yokohama, Kanagawa, 220-0012,
Tel: +886-3-5636688 Fax: +886-3-5637000 Tel: +886-4-27026688 Fax: +886-4-24630372 Tel: +86-21-57768000 Japan
Global R&D Center Fab 18A TSMC Nanjing Company Limited Tel: +81-45-6644500
168, Kehuan Rd., Hsinchu Science Park, Hsinchu 308-001, 8, Beiyuan Rd. 2, Southern Taiwan Science Park, Tainan 16, Zifeng Road, Pukou Economic Development Zone, TSMC Japan 3DIC R&D Center, Inc.
Taiwan, R.O.C. 745-093, Taiwan, R.O.C. Nanjing, Jiangsu Province, China 2F, 7D Bldg., West, 16-1 Onogawa, Tsukuba, Ibaraki,
Tel: +886-3-5636688 Tel: +886-6-5056688 Fax: +886-6-5050363 Postcode: 211806 305-8569, Japan
Fab 12B Fab 18B Tel: +86-25-57668000 Tel: +81-29-893-2968
168, Park Ave. 2, Hsinchu Science Park, Hsinchu 300-091, 8, Beiyuan Rd. 2, Southern Taiwan Science Park, Tainan TSMC Korea Limited Japan Advanced Semiconductor
Taiwan, R.O.C. 745-093, Taiwan, R.O.C. Rm 2104-2105 west, Hanshin Inter Valley 24 Building, Manufacturing, Inc.
Tel: +886-3-5636688 Fax: +886-3-6687827 Tel: +886-6-5056688 322, Teheran-ro, Gangnam-gu, Seoul 06211, Korea 4106-1 Haramizu, Kikuchi-gun Kikuyo-machi, Kumamoto
Fab 2, Fab 5 Advanced Backend Fab 1 Tel: +82-2-20511688 869-1102, Japan
121, Park Ave. 3, Hsinchu Science Park, Hsinchu 300-096, 6, Creation Rd. 2, Hsinchu Science Park, Hsinchu 300-077, TSMC Japan Limited
Taiwan, R.O.C. Taiwan, R.O.C. 21F, Queen’s Tower C, 2-3-5, Minatomirai, Nishi-ku,
Tel: +886-3-5636688 Fax: +886-3-5781546 Tel: +886-3-5636688 Fax: +886-3-5773628 Yokohama, Kanagawa, 220-6221, Japan
Fab 3 Advanced Backend Fab 2 Tel: +81-45-682-0670
9, Creation Rd. 1, Hsinchu Science Park, Hsinchu 300-092, 1, Sanbaozhu Rd., Southern Taiwan Science Park, Tainan
Taiwan, R.O.C. 741-013, Taiwan, R.O.C.
Tel: +886-3-5636688 Fax: +886-3-5781548 Tel: +886-6-5056688 Fax: +886- 6-5057223
Fab 6 Advanced Backend Fab 3
1, Nan-Ke North Rd., Southern Taiwan Science Park, Tainan 101, Longyuan 6th Rd., Longtan Dist., Taoyuan City 325-002, Europe/North America
741-014, Taiwan, R.O.C. Taiwan, R.O.C.
Tel: +886-6-5056688 Fax: +886-6-5052057 Tel: +886-3-5636688 Fax: +886-3-4804250 TSMC Europe B.V. TSMC Technology, Inc
Fab 8 Advanced Backend Fab 5 World Trade Center, Zuidplein 60, 1077 XV Amsterdam, 2851 Junction Avenue, San Jose, CA 95134, U.S.A.
25, Li-Hsin Rd., Hsinchu Science Park, Hsinchu 300-094, 5, Keya W. Rd., Central Taiwan Science Park, Taichung The Netherlands Tel: +1-408-3828000
Taiwan, R.O.C. 428-303, Taiwan, R.O.C. Tel: +31-20-3059900 TSMC Washington, LLC
Tel: +886-3-5636688 Fax: +886-3-5662051 Tel: +886-4-27026688 Fax: +886-4-25609631 TSMC Design Technology Canada Inc. 5509 N.W. Parker Street, Camas, WA 98607-9299, U.S.A.
Fab 14A Advanced Backend Fab 6 1000 Innovation Drive, Suite 400, Kanata, ON K2K 3E7, Tel: +1-360-8173000 Fax: +1-360-8173009
1-1, Nan-Ke North Rd., Southern Taiwan Science Park, 1, Kezhuan 1st Rd., Zhunan Township, Miaoli 350-012, Canada TSMC Arizona Corporation
Tainan 741-014, Taiwan, R.O.C. Taiwan, R.O.C. Tel: +613-576-1990
5088 W. Innovation Circle, Phoenix, AZ 85083, U.S.A.
Tel: +886-6-5056688 Fax: +886-6-5051262 Tel: +886-3-5636688 TSMC North America Tel: +1 602-567-1688
Fab 14B VisEra Technologies Company Limited 2851 Junction Avenue, San Jose, CA 95134, U.S.A.
17, Nan-Ke 9th Rd., Southern Taiwan Science Park, Tainan 12, Dusing Rd. 1, Hsinchu Science Park, Hsinchu 300-096, Tel: +1-408-3828000 Fax: +1-408-3828008
741-014, Taiwan, R.O.C. Taiwan, R.O.C.
Tel: +886-6-5056688 Fax: +886-6-5055217 Tel: +886-3-6668788 Fax: +886-3-6662858
Fab 15A
1, Keya Rd. 6, Central Taiwan Science Park, Taichung TSMC Spokesperson Common Share Transfer Agent and Registrar
428-303, Taiwan, R.O.C. Name: Wendell Huang Company: The Transfer Agency Department of CTBC Bank
Tel: +886-4-27026688 Fax: +886-4-25607548 Title: Senior Vice President & CFO Co., Ltd.
Tel: +886-3-5636688 Fax: +886-3-5637000 Address: 5F, No. 83, Sec. 1, Chongqing S. Rd.,
Email: [email protected] Zhongzheng Dist., Taipei City 100-003, Taiwan, R.O.C.
Safe Harbor Notice:
TSMC Deputy Spokesperson Tel: +886-2-66365566
The statements included in this business overview that are not historical in nature are “forward-looking statements” within the meaning
Website: https://www.ctbcbank.com
of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. TSMC cautions readers that forward-looking Name: Nina Kao
statements are subject to significant risks and uncertainties and are based on TSMC’s current expectations. Actual results may differ Title: Head of Public Relations Division ADR Depositary Bank
materially from those contained in such forward-looking statements for a variety of reasons including, among others, risks associated Tel: +886-3-5636688 Fax: +886-3-5637000 Company: Citibank, N.A.
with cyclicality and market conditions in the semiconductor industry; demand and supply for TSMC’s foundry manufacturing capacity in Email: [email protected] Depositary Receipts Services
particular and for foundry manufacturing capacity in general; intense competition; the failure of one or more significant customers to
Auditors Address: 388 Greenwich Street, Trading Building, 4th
continue to place the same level of orders with us; TSMC’s ability to remain a technological leader in the semiconductor industry; TSMC’s Floor, New York, NY 10013, U.S.A.
ability to manage its capacity; TSMC’s ability to obtain, preserve and defend its intellectual property rights; natural disasters and other Company: Deloitte & Touche Website: https://www.citi.com/dr
unexpected events which may disrupt production; and exchange rate fluctuations. Additional information as to these and other risk factors Auditors: Shih-Tsung Wu, Shang-Chih Lin Tel: +1-877-2484237 (toll free)
that may cause TSMC’s actual results to differ materially from TSMC’s forward-looking statements may be found in TSMC’s Annual Report Address: 20F, No. 100, Songren Rd., Xinyi Dist.,Taipei Tel: +1-781-5754555 (out of US) Fax: +1-201-3243284
on Form 20-F, filed with the United States Securities and Exchange Commission (the “SEC”) on April 18, 2024, and such other documents 110-016, Taiwan, R.O.C. E-mail: [email protected]
as TSMC may file with, or submit to, the SEC from time to time. Except as required by law, we undertake no oblisgation to update any Tel: +886-2-27259988 Fax: +886-2-40516888
forward-looking statement, whether as a result of new information, future events, or otherwise. Website: http://www.deloitte.com.tw TSMC’s depositary receipts of the common shares are
listed on New York Stock Exchange (NYSE) under the
“TSMC”, “tsmc”, “Open Innovation Platform”, “Open Innovation”, “GIGAFAB”, “CoWoS”, “TSMC-SoIC”, “3DFabric”, “3DFabric”, “N12e”, “3Dblox”, symbol TSM. The information relating to TSM is available
and “FinFlex” are some of TSMC’s registered and/or pending trademarks used by the Company in various jurisdictions, including Taiwan. All rights at https://www.nyse.com and https://mops.twse.com.tw
reserved.
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