
	Six Months Ended June 30
	2020		2021
	NT$		NT$
	(In Millions)		(In Millions)
a. Depreciation of property, plant and equipment and right-of-use assets

Recognized in cost of revenue	$	123,444.4	$	186,947.1
Recognized in operating expenses		12,609.5		13,615.9
Recognized in other operating income and expenses		11.4		134.1


	$	136,065.3	$	200,697.1

b. Amortization of intangible assets

Recognized in cost of revenue	$	2,175.0	$	2,681.9
Recognized in operating expenses		1,189.4		1,326.5


	$	3,364.4	$	4,008.4

c. Employee benefits expenses

Post-employment benefits
Defined contribution plans	$	1,339.3	$	1,713.8
Defined benefit plans		102.5		96.2

		1,441.8		1,810.0
Other employee benefits		65,000.5		75,682.1


	$	66,442.3	$	77,492.1


Employee benefits expense summarized by function
Recognized in cost of revenue	$	39,481.5	$	46,320.2
Recognized in operating expenses		26,960.8		31,171.9


	$	66,442.3	$	77,492.1

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:


	Six Months Ended June 30
	2020		2021
	NT$		NT$
	(In Millions)		(In Millions)

Profit sharing bonus to employees	$	15,963.3	$	16,358.8

TSMC’s profit sharing bonus to employees and compensation to directors for 2019 and 2020 had been approved by the Board of Directors of TSMC, as illustrated below:


	Years Ended December 31
	2019		2020
	NT$		NT$
	(In Millions)		(In Millions)
Resolution Date of TSMC’s Board of Directors in its meeting		February 11, 2020		February 9, 2021
Profit sharing bonus to employees	$	23,165.7	$	34,753.2

Compensation to directors	$	360.4	$	509.8

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2019 and 2020, respectively