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


		Six Months Ended June 30
		2020		2021
		NT$		NT$
		(In Millions)		(In Millions)
Item	Related Party Categories
Net revenue from sale of goods	Associates	$	3,681.9	$	3,447.1

Net revenue from royalties	Associates	$	103.4	$	105.0

Purchases


	Six Months Ended June 30
	2020		2021
	NT$		NT$
	(In Millions)		(In Millions)
Related Party Categories
Associates	$	3,733.3	$	3,903.1

Receivables from related parties


		December 31, 2020		June 30, 2021
		NT$		NT$
		(In Millions)		(In Millions)
Item	Related Party Name/Categories
Receivables from related parties	GUC	$	370.6	$	675.5
	Xintec		187.5		108.9


		$	558.1	$	784.4

		December 31, 2020		June 30, 2021
		NT$		NT$
		(In Millions)		(In Millions)
Item	Related Party Name/Categories
Other receivables from related parties	VIS	$	4.3	$	1,639.7
	SSMC		45.3		48.9
	Others		1.0		23.1


		$	50.6	$	1,711.7

Payables to related

parties


		December 31, 2020		June 30, 2021
		NT$		NT$
		(In Millions)		(In Millions)
Item	Related Party Name/Categories
Payables to related parties	Xintec	$	1,358.6	$	727.6
	SSMC		400.8		412.2
	VIS		311.4		334.1
	Others		36.9		30.3


		$	2,107.7	$	1,504.2

Accrued expenses and other current liabilities


		December 31, 2020		June 30, 2021
		NT$		NT$
		(In Millions)		(In Millions)
Item	Related Party Categories
Contract liabilities	Associates	$	—	$	333.1

Others


		Six Months Ended June 30
		2020		2021
		NT$		NT$
		(In Millions)		(In Millions)
Item	Related Party Categories
Manufacturing expenses	Associates	$	1,822.0	$	2,566.5


Research and development expenses	Associates	$	87.3	$	81.9


General and administrative expenses	Other related parties	$	60.0	$	70.0

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:


	Six Months Ended June 30
	2020		2021
	NT$		NT$
	(In Millions)		(In Millions)
Short-term employee benefits	$	1,207.4	$	1,302.5
Post-employment benefits		1.3		1.5

	$	1,208.7	$	1,304.0

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.