EX-99.2 3 tsm-ex992_22.htm EX-99.2

English Translation of Financial Statements Originally Issued in Chinese

Taiwan Semiconductor Manufacturing Company Limited

Parent Company Only Financial Statements for the

Years Ended December 31, 2021 and 2020 and

Independent Auditors’ Report

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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’ REPORT

The Board of Directors and Shareholders

Taiwan Semiconductor Manufacturing Company Limited

Opinion

We have audited the accompanying parent company only financial statements of Taiwan Semiconductor Manufacturing Company Limited (the “Company”), which comprise the parent company only balance sheets as of December 31, 2021 and 2020, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the accompanying parent company only financial position of the Company as of December 31, 2021 and 2020, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter for the Company’s parent company only financial statements for the year ended December 31, 2021 is stated as follows:

Property, plant and equipment (PP&E) – commencement of depreciation related to PP&E classified as equipment under installation and construction in progress (EUI/CIP)

Refer to Notes 4, 5 and 12 to the parent company only financial statements.

1

The Company’s evaluation of when to commence depreciation of EUI/CIP involves determining when the assets are available for their intended use. The criteria the Company uses to determine whether EUI/CIP are available for their intended use involves subjective judgments and assumptions about the conditions necessary for the assets to be capable of operating in the intended manner. Changes in these assumptions could have a significant impact on when depreciation is recognized.

Given the subjectivity in determining the date to commence depreciation of EUI/CIP, performing audit procedures to evaluate the reasonableness of the Company’s judgments and assumptions required a high degree of auditor judgment. Consequently, the validity of commencement of depreciation related to PP&E classified as EUI/CIP is identified as a key audit matter.

Our audit procedures related to the evaluation of when to commence depreciation of EUI/CIP included the following, among others:

1. | We read the Company’s policy and understood the criteria used to determine when to commence depreciation.

2. | We tested the effectiveness of the controls over the evaluation of when to commence depreciation of EUI/CIP.

3. | We sampled the year-end balance of EUI/CIP and performed the following for each selection:

| a. | Evaluated whether the selection did not meet the criteria specified by the Company for commencement of depreciation.

| b. | Observed the assets and evaluated their status.

4. | We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation during the year.

5. | We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation subsequent to year end.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

2

As part of an audit in accordance with the auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. | Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

3. | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. | Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. | Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. | Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2021 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

3

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

Deloitte & Touche

Taipei, Taiwan

Republic of China

February 15, 2022

Notice to Readers

The accompanying financial statements are intended only to present the 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 audit such financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying 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’ report and financial statements shall prevail.

4

Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

|  | December 31, 2021 |  | December 31, 2020
|  | Amount |  | % |  | Amount |  | %
ASSETS |  |  |  |  |  |  |  |
CURRENT ASSETS |  |  |  |  |  |  |  |
Cash and cash equivalents (Note 6) |  | $ | 396,294,241 |  |  |  | 12 |  |  | $ | 303,165,717 |  |  |  | 11 |
Financial assets at fair value through profit or loss (Note 7) |  |  | 145,280 |  |  |  | - |  |  |  | 2,125,825 |  |  |  | - |
Notes and accounts receivable, net (Note 9) |  |  | 45,900,297 |  |  |  | 2 |  |  |  | 34,611,115 |  |  |  | 1 |
Receivables from related parties (Note 30) |  |  | 138,352,374 |  |  |  | 4 |  |  |  | 101,781,174 |  |  |  | 4 |
Other receivables from related parties (Note 30) |  |  | 5,227,425 |  |  |  | - |  |  |  | 1,714,334 |  |  |  | - |
Inventories (Notes 5 and 10) |  |  | 185,159,848 |  |  |  | 5 |  |  |  | 130,298,036 |  |  |  | 5 |
Other financial assets |  |  | 3,861,859 |  |  |  | - |  |  |  | 1,425,594 |  |  |  | - |
Other current assets |  |  | 8,264,613 |  |  |  | - |  |  |  | 5,827,453 |  |  |  | - |
Total current assets |  |  | 783,205,937 |  |  |  | 23 |  |  |  | 580,949,248 |  |  |  | 21 |
NONCURRENT ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets at fair value through other comprehensive income |  |  | 998,400 |  |  |  | - |  |  |  | 834,830 |  |  |  | - |
Investments accounted for using equity method (Note 11) |  |  | 602,642,544 |  |  |  | 18 |  |  |  | 564,597,508 |  |  |  | 21 |
Property, plant and equipment (Notes 5 and 12) |  |  | 1,889,970,529 |  |  |  | 56 |  |  |  | 1,511,784,556 |  |  |  | 55 |
Right-of-use assets (Notes 5 and 13) |  |  | 30,123,052 |  |  |  | 1 |  |  |  | 25,184,827 |  |  |  | 1 |
Intangible assets (Notes 5 and 14) |  |  | 22,910,400 |  |  |  | 1 |  |  |  | 21,733,597 |  |  |  | 1 |
Deferred income tax assets (Notes 5 and 23) |  |  | 47,780,990 |  |  |  | 1 |  |  |  | 24,678,225 |  |  |  | 1 |
Refundable deposits |  |  | 862,893 |  |  |  | - |  |  |  | 1,249,552 |  |  |  | - |
Other noncurrent assets |  |  | 400 |  |  |  | - |  |  |  | 2,492,770 |  |  |  | - |
Total noncurrent assets |  |  | 2,595,289,208 |  |  |  | 77 |  |  |  | 2,152,555,865 |  |  |  | 79 |
TOTAL |  | $ | 3,378,495,145 |  |  |  | 100 |  |  | $ | 2,733,505,113 |  |  |  | 100 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
CURRENT LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term loans (Notes 15 and 27) |  | $ | 114,921,333 |  |  |  | 3 |  |  | $ | 175,659,726 |  |  |  | 7 |
Financial liabilities at fair value through profit or loss (Note 7) |  |  | 636,472 |  |  |  | - |  |  |  | 93,153 |  |  |  | - |
Accounts payable |  |  | 41,204,422 |  |  |  | 1 |  |  |  | 36,238,637 |  |  |  | 1 |
Payables to related parties (Note 30) |  |  | 7,687,673 |  |  |  | - |  |  |  | 7,017,623 |  |  |  | - |
Salary and bonus payable |  |  | 20,814,434 |  |  |  | 1 |  |  |  | 17,478,038 |  |  |  | 1 |
Accrued profit sharing bonus to employees and compensation to directors (Note 26) |  |  | 36,088,986 |  |  |  | 1 |  |  |  | 35,262,937 |  |  |  | 1 |
Payables to contractors and equipment suppliers |  |  | 136,212,285 |  |  |  | 4 |  |  |  | 156,342,457 |  |  |  | 6 |
Cash dividends payable (Note 18) |  |  | 142,617,093 |  |  |  | 4 |  |  |  | 129,651,902 |  |  |  | 5 |
Income tax payable (Notes 5 and 23) |  |  | 58,755,245 |  |  |  | 2 |  |  |  | 53,297,025 |  |  |  | 2 |
Long-term liabilities - current portion (Notes 16 and 27) |  |  | 4,400,000 |  |  |  | - |  |  |  | 2,600,000 |  |  |  | - |
Accrued expenses and other current liabilities (Notes 5, 13, 19, 27 and 30) |  |  | 141,495,427 |  |  |  | 4 |  |  |  | 66,888,237 |  |  |  | 2 |
Total current liabilities |  |  | 704,833,370 |  |  |  | 20 |  |  |  | 680,529,735 |  |  |  | 25 |
NONCURRENT LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bonds payable (Notes 16 and 27) |  |  | 307,783,409 |  |  |  | 9 |  |  |  | 170,450,745 |  |  |  | 6 |
Deferred income tax liabilities (Notes 5 and 23) |  |  | 1,848,966 |  |  |  | - |  |  |  | 1,716,367 |  |  |  | - |
Lease liabilities (Notes 5, 13 and 27) |  |  | 18,742,323 |  |  |  | 1 |  |  |  | 18,480,111 |  |  |  | 1 |
Net defined benefit liability (Note 17) |  |  | 11,036,879 |  |  |  | - |  |  |  | 11,914,074 |  |  |  | 1 |
Guarantee deposits |  |  | 680,137 |  |  |  | - |  |  |  | 259,073 |  |  |  | - |
Others (Notes 19 and 30) |  |  | 165,283,508 |  |  |  | 5 |  |  |  | 497,752 |  |  |  | - |
Total noncurrent liabilities |  |  | 505,375,222 |  |  |  | 15 |  |  |  | 203,318,122 |  |  |  | 8 |
Total liabilities |  |  | 1,210,208,592 |  |  |  | 35 |  |  |  | 883,847,857 |  |  |  | 33 |
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital stock (Note 18) |  |  | 259,303,805 |  |  |  | 8 |  |  |  | 259,303,805 |  |  |  | 9 |
Capital surplus (Note 18) |  |  | 64,761,602 |  |  |  | 2 |  |  |  | 56,347,243 |  |  |  | 2 |
Retained earnings (Note 18) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Appropriated as legal capital reserve |  |  | 311,146,899 |  |  |  | 9 |  |  |  | 311,146,899 |  |  |  | 11 |
Appropriated as special capital reserve |  |  | 59,304,212 |  |  |  | 2 |  |  |  | 42,259,146 |  |  |  | 2 |
Unappropriated earnings |  |  | 1,536,378,550 |  |  |  | 46 |  |  |  | 1,235,280,036 |  |  |  | 45 |
|  |  | 1,906,829,661 |  |  |  | 57 |  |  |  | 1,588,686,081 |  |  |  | 58 |
Others (Note 18) |  |  | (62,608,515 | ) |  |  | (2 | ) |  |  | (54,679,873 | ) |  |  | (2 | )
Total equity |  |  | 2,168,286,553 |  |  |  | 65 |  |  |  | 1,849,657,256 |  |  |  | 67 |
TOTAL |  | $ | 3,378,495,145 |  |  |  | 100 |  |  | $ | 2,733,505,113 |  |  |  | 100 |

The accompanying notes are an integral part of the parent company only financial statements.

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Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

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

|  | 2021 |  | 2020
|  | Amount |  | % |  | Amount |  | %
NET REVENUE (Notes 5, 19 and 30) |  | $ | 1,574,745,881 |  |  |  | 100 |  |  | $ | 1,314,793,013 |  |  |  | 100 |
COST OF REVENUE (Notes 5, 10, 26 and 30) |  |  | 786,116,844 |  |  |  | 50 |  |  |  | 632,788,990 |  |  |  | 48 |
GROSS PROFIT |  |  | 788,629,037 |  |  |  | 50 |  |  |  | 682,004,023 |  |  |  | 52 |
OPERATING EXPENSES (Notes 5, 26 and 30) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Research and development |  |  | 123,417,275 |  |  |  | 8 |  |  |  | 108,613,789 |  |  |  | 8 |
General and administrative |  |  | 30,967,600 |  |  |  | 2 |  |  |  | 26,312,285 |  |  |  | 2 |
Marketing |  |  | 4,282,882 |  |  |  | - |  |  |  | 4,359,436 |  |  |  | 1 |
Total operating expenses |  |  | 158,667,757 |  |  |  | 10 |  |  |  | 139,285,510 |  |  |  | 11 |
OTHER OPERATING INCOME AND EXPENSES, NET (Notes 12, 13 and 26) |  |  | (328,444 | ) |  |  | - |  |  |  | 746,994 |  |  |  | - |
INCOME FROM OPERATIONS |  |  | 629,632,836 |  |  |  | 40 |  |  |  | 543,465,507 |  |  |  | 41 |
NON-OPERATING INCOME AND EXPENSES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Share of profits of subsidiaries and associates (Note 11) |  |  | 26,837,174 |  |  |  | 2 |  |  |  | 34,902,194 |  |  |  | 3 |
Interest income (Note 20) |  |  | 927,754 |  |  |  | - |  |  |  | 951,877 |  |  |  | - |
Other income |  |  | 789,810 |  |  |  | - |  |  |  | 209,885 |  |  |  | - |
Foreign exchange gain (loss), net (Note 32) |  |  | 14,682,696 |  |  |  | 1 |  |  |  | (1,759,386 | ) |  |  | - |
Finance costs (Note 21) |  |  | (2,534,721 | ) |  |  | - |  |  |  | (1,766,297 | ) |  |  | - |
Other gains and losses, net (Note 22) |  |  | (9,833,358 | ) |  |  | (1 | ) |  |  | 6,615,162 |  |  |  | - |
Total non-operating income and expenses |  |  | 30,869,355 |  |  |  | 2 |  |  |  | 39,153,435 |  |  |  | 3 |
INCOME BEFORE INCOME TAX |  |  | 660,502,191 |  |  |  | 42 |  |  |  | 582,618,942 |  |  |  | 44 |
INCOME TAX EXPENSE (Notes 5 and 23) |  |  | 63,962,178 |  |  |  | 4 |  |  |  | 64,733,555 |  |  |  | 5 |
NET INCOME |  |  | 596,540,013 |  |  |  | 38 |  |  |  | 517,885,387 |  |  |  | 39 |
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 5, 11, 17, 18 and 23) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Items that will not be reclassified subsequently to profit or loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Remeasurement of defined benefit obligation |  |  | 242,079 |  |  |  | - |  |  |  | (3,516,749 | ) |  |  | - |
Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income |  |  | 170,127 |  |  |  | - |  |  |  | (41,995 | ) |  |  | - |
Gain (loss) on hedging instruments |  |  | (41,416 | ) |  |  | - |  |  |  | 24,085 |  |  |  | - |
Share of other comprehensive gain of subsidiaries and associates |  |  | 1,697,885 |  |  |  | - |  |  |  | 453,603 |  |  |  | - |
Income tax (expense) benefit related to items that will not be reclassified subsequently |  |  | (85,269 | ) |  |  | - |  |  |  | 422,663 |  |  |  | - |
|  |  | 1,983,406 |  |  |  | - |  |  |  | (2,658,393 | ) |  |  | - |

(Continued)

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Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

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

|  | 2021 |  | 2020
|  | Amount |  | % |  | Amount |  | %
Items that may be reclassified subsequently to profit or loss: |  |  |  |  |  |  |  |
Exchange differences arising on translation of foreign operations |  | $ | (6,182,507 | ) |  |  | - |  |  | $ | (29,853,603 | ) |  |  | (2 | )
Share of other comprehensive gain/(loss) of subsidiaries and associates |  |  | (3,422,853 | ) |  |  | - |  |  |  | 2,190,087 |  |  |  | - |
|  |  | (9,605,360 | ) |  |  | - |  |  |  | (27,663,516 | ) |  |  | (2 | )
Other comprehensive loss for the year, net of income tax |  |  | (7,621,954 | ) |  |  | - |  |  |  | (30,321,909 | ) |  |  | (2 | )
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |  | $ | 588,918,059 |  |  |  | 38 |  |  | $ | 487,563,478 |  |  |  | 37 |
EARNINGS PER SHARE (NT$, Note 24) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic earnings per share |  | $ | 23.01 |  |  |  |  |  |  | $ | 19.97 |  |  |  |  |
Diluted earnings per share |  | $ | 23.01 |  |  |  |  |  |  | $ | 19.97 |  |  |  |  |

The accompanying notes are an integral part of the parent company only financial statements.

(Concluded)

- 7 -

Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Others |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Unrealized Gain |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (Loss) on Financial Assets |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Foreign |  | at Fair Value |  |  |  | Unearned |  |  |  |  |
|  | Capital Stock - Common Stock |  |  | Retained Earnings |  | Currency |  | Through Other |  | Gain (Loss) on |  | Stock-Based |  |  |  |
|  | Shares |  |  |  |  |  | Legal Capital |  | Special Capital |  | Unappropriated |  |  |  | Translation |  | Comprehensive |  | Hedging |  | Employee |  |  |  | Total |
|  | (In Thousands) |  | Amount |  | Capital Surplus |  | Reserve |  | Reserve |  | Earnings |  | Total |  | Reserve |  | Income |  | Instruments |  | Compensation |  | Total |  | Equity |
BALANCE, JANUARY 1, 2020 |  |  | 25,930,380 |  |  | $ | 259,303,805 |  |  | $ | 56,339,709 |  |  | $ | 311,146,899 |  |  | $ | 10,675,106 |  |  | $ | 1,011,512,974 |  |  | $ | 1,333,334,979 |  |  | $ | (26,871,400 | ) |  | $ | (692,959 | ) |  | $ | (3,820 | ) |  | $ | (190 | ) |  | $ | (27,568,369 | ) |  | $ | 1,621,410,124 |  |
Appropriations of earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special capital reserve |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 31,584,040 |  |  |  | (31,584,040 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |
Cash dividends to shareholders |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (259,303,805 | ) |  |  | (259,303,805 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (259,303,805 | ) |
Total |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 31,584,040 |  |  |  | (290,887,845 | ) |  |  | (259,303,805 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (259,303,805 | ) |
Net income in 2020 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 517,885,387 |  |  |  | 517,885,387 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 517,885,387 |  |
Other comprehensive income (loss) in 2020, net of income tax |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (3,121,793 | ) |  |  | (3,121,793 | ) |  |  | (30,130,227 | ) |  |  | 2,906,026 |  |  |  | 24,085 |  |  |  | - |  |  |  | (27,200,116 | ) |  |  | (30,321,909 | ) |
Total comprehensive income (loss) in 2020 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 514,763,594 |  |  |  | 514,763,594 |  |  |  | (30,130,227 | ) |  |  | 2,906,026 |  |  |  | 24,085 |  |  |  | - |  |  |  | (27,200,116 | ) |  |  | 487,563,478 |  |
Disposal of investments in equity instruments at fair value through other comprehensive income |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (108,687 | ) |  |  | (108,687 | ) |  |  | - |  |  |  | 108,687 |  |  |  | - |  |  |  | - |  |  |  | 108,687 |  |  |  | - |  |
Basis adjustment for loss on hedging instruments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (20,265 | ) |  |  | - |  |  |  | (20,265 | ) |  |  | (20,265 | ) |
Adjustments to share of changes in equities of associates |  |  | - |  |  |  | - |  |  |  | 292 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 190 |  |  |  | 190 |  |  |  | 482 |  |
Donation from shareholders |  |  | - |  |  |  | - |  |  |  | 7,242 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 7,242 |  |
BALANCE, DECEMBER 31, 2020 |  |  | 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 |  |
Appropriations of earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Special capital reserve |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 17,045,066 |  |  |  | (17,045,066 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |
Cash dividends to shareholders |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (278,751,590 | ) |  |  | (278,751,590 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (278,751,590 | ) |
Total |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 17,045,066 |  |  |  | (295,796,656 | ) |  |  | (278,751,590 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (278,751,590 | ) |
Net income in 2021 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 596,540,013 |  |  |  | 596,540,013 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 596,540,013 |  |
Other comprehensive income (loss) in 2021, net of income tax |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 167,503 |  |  |  | 167,503 |  |  |  | (6,301,734 | ) |  |  | (1,559,790 | ) |  |  | 72,067 |  |  |  | - |  |  |  | (7,789,457 | ) |  |  | (7,621,954 | ) |
Total comprehensive income (loss) in 2021 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 596,707,516 |  |  |  | 596,707,516 |  |  |  | (6,301,734 | ) |  |  | (1,559,790 | ) |  |  | 72,067 |  |  |  | - |  |  |  | (7,789,457 | ) |  |  | 588,918,059 |  |
Disposal of investments in equity instruments at fair value through other comprehensive income |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 187,654 |  |  |  | 187,654 |  |  |  | - |  |  |  | (187,654 | ) |  |  | - |  |  |  | - |  |  |  | (187,654 | ) |  |  | - |  |
Basis adjustment for gain on hedging instruments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 48,469 |  |  |  | - |  |  |  | 48,469 |  |  |  | 48,469 |  |
Adjustments to share of changes in equities of associates |  |  | - |  |  |  | - |  |  |  | 4,796 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,796 |  |
From difference between the consideration received and the carrying amount of the subsidiaries' net assets during actual disposal |  |  | - |  |  |  | - |  |  |  | 8,406,282 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 8,406,282 |  |
From share of changes in equities of subsidiaries |  |  | - |  |  |  | - |  |  |  | (7,891 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (7,891 | ) |
Donation from shareholders |  |  | - |  |  |  | - |  |  |  | 11,172 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 11,172 |  |
BALANCE, DECEMBER 31, 2021 |  |  | 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 |  |

The accompanying notes are an integral part of the parent company only financial statements.

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Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

|  | 2021 |  | 2020
CASH FLOWS FROM OPERATING ACTIVITIES |  |  |  |
Income before income tax |  | $ | 660,502,191 |  |  | $ | 582,618,942 |
Adjustments for: |  |  |  |  |  |  |  |
Depreciation expense |  |  | 402,931,257 |  |  |  | 313,379,686 |
Amortization expense |  |  | 8,100,730 |  |  |  | 7,047,694 |
Finance costs |  |  | 2,534,721 |  |  |  | 1,766,297 |
Share of profits of subsidiaries and associates |  |  | (26,837,174 | ) |  |  | (34,902,194 | )
Interest income |  |  | (927,754 | ) |  |  | (951,877 | )
Loss (gain) on disposal or retirement of property, plant and equipment, net |  |  | 222,387 |  |  |  | (266,581 | )
Gain on disposal or retirement of intangible assets, net |  |  | (7,332 | ) |  |  | (7,960 | )
Impairment loss on property, plant and equipment |  |  | 274,388 |  |  |  | - |
Gain on financial instruments at fair value through profit or loss, net |  |  | - |  |  |  | (8,289 | )
Gain on foreign exchange, net |  |  | (16,975,706 | ) |  |  | (7,747,615 | )
Dividend income |  |  | (178,979 | ) |  |  | (186,854 | )
Others |  |  | (370,086 | ) |  |  | 13,808 |
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |
Financial instruments at fair value through profit or loss |  |  | 2,482,448 |  |  |  | (2,973,199 | )
Notes and accounts receivable, net |  |  | (11,289,182 | ) |  |  | 13,002,568 |
Receivables from related parties |  |  | (36,571,200 | ) |  |  | (19,586,673 | )
Other receivables from related parties |  |  | (3,503,728 | ) |  |  | (684,360 | )
Inventories |  |  | (54,861,812 | ) |  |  | (54,034,185 | )
Other financial assets |  |  | (2,371,699 | ) |  |  | (1,091,188 | )
Other current assets |  |  | (2,445,945 | ) |  |  | (1,174,789 | )
Accounts payable |  |  | 4,965,785 |  |  |  | 400,931 |
Payables to related parties |  |  | (746,871 | ) |  |  | 1,300,988 |
Salary and bonus payable |  |  | 3,336,396 |  |  |  | 3,262,877 |
Accrued profit sharing bonus to employees and compensation to directors |  |  | 826,049 |  |  |  | 11,736,788 |
Accrued expenses and other current liabilities |  |  | 82,992,551 |  |  |  | 19,228,140 |
Other noncurrent liabilities |  |  | 154,036,474 |  |  |  | - |
Net defined benefit liability |  |  | (635,116 | ) |  |  | (785,171 | )
Cash generated from operations |  |  | 1,165,482,793 |  |  |  | 829,357,784 |
Income taxes paid |  |  | (81,550,608 | ) |  |  | (49,747,636 | )
Net cash generated by operating activities |  |  | 1,083,932,185 |  |  |  | 779,610,148 |
CASH FLOWS FROM INVESTING ACTIVITIES |  |  |  |  |  |  |  |
Acquisitions of: |  |  |  |  |  |  |  |
Equity interest in subsidiary |  |  | (157,243 | ) |  |  | (937,679 | )
Property, plant and equipment |  |  | (793,327,208 | ) |  |  | (494,310,468 | )
Intangible assets |  |  | (8,998,084 | ) |  |  | (9,482,909 | )
Proceeds from disposal or redemption of: |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | 462,138 |  |  |  | 1,070,855 |
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income |  |  | 6,257 |  |  |  | 285 |
Derecognition of hedging financial instruments |  |  | - |  |  |  | 19,786 |
Interest received |  |  | 902,872 |  |  |  | 958,590 |
Other dividends received |  |  | 178,979 |  |  |  | 186,854 |
Dividends received from investments accounted for using equity method |  |  | 2,560,790 |  |  |  | 2,752,043 |

(Continued)

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Taiwan Semiconductor Manufacturing Company Limited

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

|  | 2021 |  | 2020
Increase in prepayments for leases |  | $ | (1,200,000 | ) |  | $ | (4,687,970 | )
Refundable deposits paid |  |  | (225,347 | ) |  |  | (667,219 | )
Refundable deposits refunded |  |  | 605,714 |  |  |  | 1,427,743 |
Net cash used in investing activities |  |  | (799,191,132 | ) |  |  | (503,670,089 | )
CASH FLOWS FROM FINANCING ACTIVITIES |  |  |  |  |  |  |  |
Increase (decrease) in short-term loans |  |  | (50,538,933 | ) |  |  | 31,944,333 |
Proceeds from short-term bills payable |  |  | - |  |  |  | 7,485,303 |
Repayments of short-term bills payable |  |  | - |  |  |  | (7,500,000 | )
Proceeds from issuance of bonds |  |  | 142,318,000 |  |  |  | 149,085,000 |
Repayment of bonds |  |  | (2,600,000 | ) |  |  | (31,800,000 | )
Payments for transaction costs attributable to the issuance of bonds |  |  | (146,157 | ) |  |  | (155,818 | )
Repayment of the principal portion of lease liabilities |  |  | (1,466,130 | ) |  |  | (2,168,114 | )
Interest paid |  |  | (1,997,383 | ) |  |  | (1,729,192 | )
Guarantee deposits received |  |  | 467,964 |  |  |  | 144,364 |
Guarantee deposits refunded |  |  | (7,234 | ) |  |  | (13,695 | )
Cash dividends |  |  | (265,786,399 | ) |  |  | (259,303,805 | )
Disposal of ownership interests in subsidiaries (without losing control) |  |  | 9,451,798 |  |  |  | - |
Payment of partial acquisition of interests in subsidiaries |  |  | (21,318,931 | ) |  |  | (220,480 | )
Donation from shareholders |  |  | 10,876 |  |  |  | 7,064 |
Net cash used in financing activities |  |  | (191,612,529 | ) |  |  | (114,225,040 | )
NET INCREASE IN CASH AND CASH EQUIVALENTS |  |  | 93,128,524 |  |  |  | 161,715,019 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR |  |  | 303,165,717 |  |  |  | 141,450,698 |
CASH AND CASH EQUIVALENTS, END OF YEAR |  | $ | 396,294,241 |  |  | $ | 303,165,717 |

The accompanying notes are an integral part of the parent company only financial statements.

(Concluded)

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Taiwan Semiconductor Manufacturing Company Limited

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

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

1. | GENERAL

Taiwan Semiconductor Manufacturing Company Limited (the “Company” or “TSMC”), a Republic of China (R.O.C.) corporation, was incorporated on February 21, 1987. The Company 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, the Company’s shares were listed on the Taiwan Stock Exchange (TWSE). On October 8, 1997, the Company 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.

2. | THE AUTHORIZATION OF FINANCIAL STATEMENTS

The accompanying parent company only financial statements were approved and authorized for issue by the Board of Directors on February 15, 2022.

3. | APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

| a. | Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, “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 Company’s accounting policies.

| b. | Amendments to the IFRSs issued by International Accounting Standards Board (IASB) and endorsed by the FSC with effective date starting 2022

New, Revised or Amended Standards and Interpretations |  | Effective Date Issued by IASB
Annual Improvements to IFRS Standards 2018 - 2020 Cycle |  | January 1, 2022
Amendments to IFRS 3 “Reference to the Conceptual Framework” |  | January 1, 2022
Amendments to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” |  | January 1, 2022
Amendments to IAS 37 “Onerous Contracts–Cost of Fulfilling a Contract” |  | January 1, 2022

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| c. | 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, 2023
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

As of the date the accompanying parent company only financial statements were authorized for issue, 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

For the convenience of readers, the accompanying parent company only 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 parent company only financial statements shall prevail.

Statement of Compliance

The accompanying parent company only financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Accounting Standards Used in Preparation of the Parent Company Only Financial Statements”).

Basis of Preparation

The accompanying parent company only financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for the assets.

When preparing the parent company only financial statements, the Company account for subsidiaries and associates by using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the consolidated financial statements, the differences of the accounting treatment between the parent company only basis and the consolidated basis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries and associates and share of other comprehensive income of subsidiaries and associates in the parent company only financial statements.

Foreign Currencies

In preparing the parent company only financial statements, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Such exchange differences are recognized in profit or loss in the year in which they arise. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the year except

- 12 -

for exchange differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured in terms of historical cost in foreign currencies are not retranslated.

For the purposes of presenting parent company only financial statements, the assets and liabilities of the Company’s foreign operations are translated into NT$ using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity.

Classification of Current and Noncurrent Assets and Liabilities

Current assets are assets held for trading purposes and assets expected to be converted to cash, sold or consumed within one year from the end of the reporting period. Current liabilities are obligations incurred for trading purposes and obligations expected to be settled within one year from the end of the reporting period. Assets and liabilities that are not classified as current are noncurrent assets and liabilities, respectively.

Cash Equivalents

Cash equivalents, for the purpose of meeting short-term cash commitments, consist of highly liquid time deposits and investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Financial Instruments

Financial assets and liabilities shall be recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and liabilities are initially recognized at fair values. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial Assets

The classification of financial assets depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Regular way purchases or sales of financial assets are recognized and derecognized on a trade date or settlement date basis for which financial assets were classified in the same way, respectively. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

| a. | Category of financial assets and measurement

Financial assets are classified into the following categories: financial assets at FVTPL, investments in debt instruments and equity instruments at FVTOCI, and financial assets at amortized cost.

| 1) | Financial asset at FVTPL

For certain financial assets which include debt instruments that do not meet the criteria of amortized cost or FVTOCI, it is mandatorily required to measure them at FVTPL. Any gain or loss arising from remeasurement is recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest earned on the financial asset.

- 13 -

| 2) | Investments in debt instruments at FVTOCI

Debt instruments with contractual terms specifying that cash flows are solely payments of principal and interest on the principal amount outstanding, together with objective of collecting contractual cash flows and selling the financial assets, are measured at FVTOCI.

Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment gains or losses on investments in debt instruments at FVTOCI are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when these debt instruments are disposed.

| 3) | Investments in equity instruments at FVTOCI

On initial recognition, the Company may irrevocably designate investments in equity investments that is not held for trading as at FVTOCI.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity.

Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the Company’s rights clearly represent a recovery of part of the cost of the investment.

| 4) | Measured at amortized cost

Cash and cash equivalents, debt instrument investments, notes and accounts receivable (including related parties), other receivables and refundable deposits are measured at amortized cost.

Debt instruments with contractual terms specifying that cash flows are solely payments of principal and interest on the principal amount outstanding, together with objective of holding financial assets in order to collect contractual cash flows, are measured at amortized cost.

Subsequent to initial recognition, financial assets measured at amortized cost are measured at amortized cost, which equals to carrying amount determined by the effective interest method less any impairment loss.

| b. | Impairment of financial assets

At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable) and for investments in debt instruments that are measured at FVTOCI.

The loss allowance for accounts receivable is measured at an amount equal to lifetime expected credit losses. For financial assets at amortized cost and investments in debt instruments that are measured at FVTOCI, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from possible default events of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from all possible default events over the expected life of a financial instrument.

- 14 -

The Company recognizes an impairment loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset.

| c. | Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset to another entity.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

Financial Liabilities and Equity Instruments

Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

Financial liabilities

Financial liabilities are subsequently measured either at amortized cost using effective interest method or at FVTPL.

Financial liabilities are classified as at fair value through profit or loss when the financial liability is either held for trading or is designated as at fair value through profit or loss.

Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss.

Financial liabilities other than those held for trading purposes and designated as at FVTPL are subsequently measured at amortized cost at the end of each reporting period.

Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.

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Derivative Financial Instruments

Derivative financial instruments are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative financial instrument is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

Hedge Accounting

Cash flow hedge

The Company designates certain hedging instruments, such as forward exchange contracts, to partially hedge its foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). The effective portion of changes in the fair value of hedging instruments is recognized in other comprehensive income. When the forecast transactions actually take place, the associated gains or losses that were recognized in other comprehensive income are removed from equity and included in the initial cost of the hedged items. The gains or losses from hedging instruments relating to the ineffective portion are recognized immediately in profit or loss.

The Company prospectively discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated or exercised.

Inventories

Inventories are stated at the lower of cost or net realizable value. Inventories are recorded at standard cost and adjusted to approximate weighted-average cost at the end of the reporting period. Net realizable value represents the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale.

Investments Accounted for Using Equity Method

Investments accounted for using the equity method include investments in subsidiaries and associates.

Investment in subsidiaries

A subsidiary is an entity that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the subsidiary as well as the distribution received. The Company also recognized its share in the changes in the equity of subsidiaries.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amount of the subsidiary and the fair value of the consideration paid or received is recognized directly in equity.

When the Company loses control of a subsidiary, any retained investment of the former subsidiary is measured at the fair value at that date. A gain or loss is recognized in profit or loss and calculated as the difference between (a) the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and (b) the previous carrying amount of the investments in such subsidiary. In addition, the Company shall account for all amounts previously recognized in other comprehensive income in relation to the subsidiary on the same basis as would be required if the subsidiary had directly disposed of the related assets and liabilities.

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When the Company transacts with its subsidiaries, profits and losses resulting from the transactions with the subsidiaries are recognized in the Company’s parent company only financial statements only to the extent of interests in the subsidiaries that are not owned by the Company.

Investment in associates

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

The operating results and assets and liabilities of associates are incorporated in these parent company only financial statements using the equity method of accounting. Under the equity method, an investment in an associate is initially recognized in the statement of financial position at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the associate as well as the distribution received. The Company also recognizes its share in the changes in the equities of associates.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment. Any excess of the Company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When necessary, the entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

When the Company subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the net assets of the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If the Company’s ownership interest is reduced due to the additional subscription to the shares of associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate shall be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

When the Company transacts with an associate, profits and losses resulting from the transactions with the associate are recognized in the Company’s parent company only financial statements only to the extent of interests in the associate that are not owned by the Company.

Property, Plant and Equipment

Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment. Costs include any incremental costs that are directly attributable to the construction, acquisition of the item of property, plant and equipment or borrowing costs eligible for capitalization.

Property, plant and equipment in the course of construction for production, supply or administrative purposes are carried at cost, less any recognized impairment loss. Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other identical categories of property, plant and equipment, commences when the assets are available for their intended use.

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Depreciation is recognized so as to write off the cost of the assets less their residual values over their useful lives, and it is computed using the straight-line method mainly over the following estimated useful lives: buildings (assets used by the Company and assets subject to operating leases) - 10 to 20 years; machinery and equipment (assets used by the Company and assets subject to operating leases) - 5 years; and office equipment - 5 years. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis. Land is not depreciated.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the assets. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

Leases

For a contract that contains a lease component and non-lease component, the Company may elect to account for the lease and non-lease components as a single lease component.

The Company as lessor

Rental income from operating lease is recognized on a straight-line basis over the term of the lease.

The Company as lessee

Except for payments for low-value asset leases and short-term leases (leases of machinery and equipment and others) which are recognized as expenses on a straight-line basis, the Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of the lease.

Right-of-use assets are measured at cost. The cost of right-of-use assets comprises the initial measurement of lease liabilities adjusted for lease payments and initial direct costs made at or before the commencement date, plus an estimate of costs needed to restore the underlying assets. Subsequent measurement is calculated as cost less accumulated depreciation and accumulated impairment loss and adjusted for changes in lease liabilities as a result of lease term modifications or other related factors. Right-of-use assets are presented separately in the parent company only balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms. If the lease transfers ownership of the underlying assets to the Company by the end of the lease terms or if the cost of right-of-use assets reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use assets from the commencement dates to the end of the useful lives of the underlying assets.

Lease liabilities are measured at the present value of the lease payments. Lease payments comprise fixed payments, variable lease payments which depend on an index or a rate and the exercise price of a purchase option if the Company is reasonably certain to exercise that option. The lease payments are discounted using the lessee’s incremental borrowing rates.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in future lease payments resulting from a change in an index or a rate used to determine those payments, or a change in the assessment of an option to purchase an underlying asset, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. Lease liabilities are presented on a separate line in the parent company only balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

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Intangible Assets

Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

Other intangible assets

Other separately acquired intangible assets with finite useful lives are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized using the straight-line method over the following estimated useful lives: Technology license fees - the estimated life of the technology or the term of the technology transfer contract; software and system design costs - 3 years or contract period; patent and others - the economic life or contract period. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

Impairment of Tangible Assets, Right-of-use Assets and Intangible Assets

Goodwill

Goodwill is not amortized and instead is tested for impairment annually, or more frequently when there is an indication that the cash generating unit may be impaired. For the purpose of impairment testing, goodwill is allocated to each of the Company’s cash generating units or groups of cash-generating units that are expected to benefit. If the recoverable amount of a cash generating unit is less than its carrying amount, the difference is allocated first to reduce the carrying amount of any goodwill allocated to such cash-generating unit and then to the other assets of the cash generating unit pro rata based on the carrying amount of each asset in the cash generating unit. Any impairment loss for goodwill is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

Tangible assets, right-of-use assets and other intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible assets (property, plant and equipment), right-of-use assets and other intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset or a cash-generating unit is increased to the revised estimate of its recoverable amount, but the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

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Revenue Recognition

The Company recognizes revenue when performance obligations are satisfied. The performance obligations are satisfied when customers obtain control of the promised goods which is generally when the goods are delivered to the customers’ specified locations.

Revenue from sale of goods is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances. Estimated sales returns and other allowances is generally made and adjusted based on historical experience and the consideration of varying contractual terms to recognize refund liabilities, which is classified under accrued expenses and other current liabilities.

In principle, payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month of when the invoice is issued. Due to the short term nature of the receivables from sale of goods with the immaterial discounted effect, the Company measures them at the original invoice amounts without discounting.

Employee Benefits

Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for service rendered by employees.

Retirement benefits

For defined contribution retirement benefit plans, payments to the benefit plan are recognized as an expense when the employees have rendered service entitling them to the contribution. For defined benefit retirement benefit plans, the cost of providing benefit is recognized based on actuarial calculations.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the Projected Unit Credit Method. Service cost (including current service cost), and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability represents the actual deficit in the Company’s defined benefit plan.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

Income tax on unappropriated earnings is expensed in the year the shareholders approved the appropriation of earnings which is the year subsequent to the year the earnings are generated.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

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Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the parent company only financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, net operating loss carryforwards and tax credits for research and development expenses to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered. The deferred tax assets which originally not recognized is also reviewed at the end of each reporting period and recognized to the extent that it is probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the year in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.

5. | CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

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

In the application of the aforementioned Company’s accounting policies, the Company is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years.

Critical Accounting Judgments

Revenue Recognition

The Company recognizes revenue when the conditions described in Note 4 are satisfied.

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Commencement of Depreciation Related to Property, Plant and Equipment Classified as Equipment under Installation and Construction in Progress (EUI/CIP)

As described in Note 4, commencement of depreciation related to EUI/CIP involves determining when the assets are available for their intended use. The criteria the Company uses to determine whether EUI/CIP are available for their intended use involves subjective judgments and assumptions about the conditions necessary for the assets to be capable of operating in the intended manner.

Judgments on Lease Terms

In determining a lease term, the Company considers all facts and circumstances that create an economic incentive to exercise or not to exercise an option, including any expected changes in facts and circumstances from the commencement date until the exercise date of the option. Main factors considered include contractual terms and conditions covered by the optional periods, and the importance of the underlying asset to the lessee’s operations, etc. The lease term is reassessed if a significant change in circumstances that are within the control of the Company occurs.

Key Sources of Estimation and Uncertainty

Estimation of Sales Returns and Allowances

Sales returns and other allowance is estimated and recorded based on historical experience and in consideration of different contractual terms. The amount is deducted from revenue in the same period the related revenue is recorded. The Company periodically reviews the reasonableness of the estimates.

Valuation of Inventory

Inventories are stated at the lower of cost or net realizable value, and the Company uses estimate to determine the net realizable value of inventory at the end of each reporting period.

The Company estimates the net realizable value of inventory for normal waste, obsolescence and unmarketable items at the end of reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is determined mainly based on assumptions of future demand within a specific time horizon.

Impairment of Tangible Assets, Right-of-use Assets and Intangible Assets Other than Goodwill

In the process of evaluating the potential impairment of tangible assets, right-of-use assets and intangible assets other than goodwill, the Company determines the independent cash flows, useful lives, expected future revenue and expenses related to the specific asset groups with the consideration of the nature of semiconductor industry. Any change in these estimates based on changed economic conditions or business strategies could result in significant impairment charges or reversal in future years.

Realization of Deferred Income Tax Assets

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which those deferred tax assets can be utilized. Assessment of the realization of the deferred tax assets requires subjective judgment and estimate, including the future revenue growth and profitability, tax holidays, the amount of tax credits can be utilized and feasible tax planning strategies. Any changes in the global economic environment, the industry trends and relevant laws and regulations could result in significant adjustments to the deferred tax assets.

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Determination of Lessees’ Incremental Borrowing Rates

In determining a lessee’s incremental borrowing rate used in discounting lease payments, the Company mainly takes into account the market risk-free rates, the estimated lessee’s credit spreads and secured status in a similar economic environment.

6. | CASH AND CASH EQUIVALENTS

|  | December 31, 2021 |  | December 31, 2020
Cash and deposits in banks |  | $ | 395,463,340 |  |  | $ | 303,165,717 |
Repurchase agreements |  |  | 830,901 |  |  |  | - |
|  | $ | 396,294,241 |  |  | $ | 303,165,717 |

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

|  | December 31, 2021 |  | December 31, 2020
Financial assets |  |  |  |
Mandatorily measured at FVTPL |  |  |  |
Forward exchange contracts |  | $ | 145,280 |  |  | $ | 2,125,825 |
Financial liabilities |  |  |  |  |  |  |  |
Held for trading |  |  |  |  |  |  |  |
Forward exchange contracts |  | $ | 636,472 |  |  | $ | 93,153 |

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)
December 31, 2021 |  |  |  |
Sell NT$ |  | January 2022 to March 2022 |  | NT$ | 132,734,482 |
December 31, 2020 |  |  |  |  |  |
Sell NT$ |  | January 2021 to March 2021 |  | NT$ | 144,697,981 |

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8. | HEDGING FINANCIAL INSTRUMENTS

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

On the basis of economic relationships, the Company expects that the value of forward exchange contracts and the value of hedged transactions change in opposite directions in response to movements in foreign exchange 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 exchange contracts. No other sources of ineffectiveness emerged from these hedging relationships. For the years ended December 31, 2021 and 2020, refer to Note 18(d) for gain or loss arising from changes in the fair value of hedging instruments and the amount transferred to initial carrying amount of hedged items.

The effect of hedging foreign currency risk for the years ended December 31, 2021 and 2020 is detailed below:

Hedging Instruments/Hedged Items |  | Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness
|  | Years Ended December 31
|  | 2021 |  | 2020
Hedging Instruments |  |  |  |
Forward exchange contracts |  | $ | (41,416 | ) |  | $ | 24,085 |
Hedged Items |  |  |  |  |  |  |  |
Forecast transaction (capital expenditures) |  | $ | 41,416 |  |  | $ | (24,085 | )

9. | NOTES AND ACCOUNTS RECEIVABLE, NET

|  | December 31, 2021 |  | December 31, 2020
At amortized cost |  |  |  |
Notes and accounts receivable |  | $ | 42,046,293 |  |  | $ | 31,899,524 |
Less: Loss allowance |  |  | (345,905 | ) |  |  | (243,710 | )
|  |  | 41,700,388 |  |  |  | 31,655,814 |
At FVTOCI |  |  | 4,199,909 |  |  |  | 2,955,301 |
|  | $ | 45,900,297 |  |  | $ | 34,611,115 |

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.

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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

|  | December 31, 2021 |  | December 31, 2020
Not past due |  | $ | 44,056,424 |  |  | $ | 32,068,195 |
Past due |  |  |  |  |  |  |  |
Past due within 30 days |  |  | 2,188,337 |  |  |  | 2,780,426 |
Past due 31-60 days |  |  | 1,369 |  |  |  | 6,072 |
Past due 61-120 days |  |  | 72 |  |  |  | 37 |
Past due over 121 days |  |  | - |  |  |  | 95 |
Less: Loss allowance |  |  | (345,905 | ) |  |  | (243,710 | )
|  | $ | 45,900,297 |  |  | $ | 34,611,115 |

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

Movements of the loss allowance for accounts receivable

|  | Years Ended December 31
|  | 2021 |  | 2020
Balance, beginning of year |  | $ | 243,710 |  |  | $ | 319,045 |
Provision (Reversal) |  |  | 102,195 |  |  |  | (75,335 | )
Balance, end of year |  | $ | 345,905 |  |  | $ | 243,710 |

For the years ended December 31, 2021 and 2020, the changes in loss allowance were mainly due to the variations in the balance of accounts receivable of different risk levels.

1 0. | INVENTORIES

|  | December 31, 2021 |  | December 31, 2020
Finished goods |  | $ | 32,290,346 |  |  | $ | 21,338,980 |
Work in process |  |  | 134,097,879 |  |  |  | 88,575,222 |
Raw materials |  |  | 10,368,446 |  |  |  | 13,758,417 |
Supplies and spare parts |  |  | 8,403,177 |  |  |  | 6,625,417 |
|  | $ | 185,159,848 |  |  | $ | 130,298,036 |

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:

|  | Years Ended December 31
|  | 2021 |  | 2020
Inventory losses |  | $ | 520,096 |  |  | $ | 3,642,829 |

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1 1. | INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Investments accounted for using the equity method consisted of the following:

|  | December 31, 2021 |  | December 31, 2020
Subsidiaries |  | $ | 580,702,074 |  |  | $ | 545,784,630 |
Associates |  |  | 21,940,470 |  |  |  | 18,812,878 |
|  | $ | 602,642,544 |  |  | $ | 564,597,508 |

| a. | Investments in subsidiaries

Subsidiaries consisted of the following:

|  |  |  | Place of |  | Carrying Amount |  | % of Ownership and Voting Rights Held by the Company
Subsidiaries |  | Principal Activities |  | Incorporation and Operation |  | December 31, 2021 |  | December 31, 2020 |  | December 31, 2021 |  | December 31, 2020
TSMC Global Ltd. (TSMC Global) |  | Investment activities |  | Tortola, British Virgin Islands |  | $ | 374,639,406 |  |  | $ | 382,229,039 |  |  |  | 100% |  |  |  | 100% |
TSMC China Company Limited (TSMC China) |  | Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices |  | Shanghai, China |  |  | 73,470,628 |  |  |  | 64,243,766 |  |  |  | 100% |  |  |  | 100% |
TSMC Partners, Ltd. (TSMC Partners) |  | Investing in companies involved in the design, manufacture, and other related business in the semiconductor industry and other investment activities |  | Tortola, British Virgin Islands |  |  | 54,968,185 |  |  |  | 52,649,936 |  |  |  | 100% |  |  |  | 100% |
TSMC Nanjing Company Limited (TSMC Nanjing) |  | Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices |  | Nanjing, China |  |  | 46,159,494 |  |  |  | 33,573,482 |  |  |  | 100% |  |  |  | 100% |
TSMC Arizona Corporation（TSMC Arizona） |  | Manufacturing, selling and testing of integrated circuits and other semiconductor devices |  | Phoenix, Arizona, U.S.A. |  |  | 16,667,696 |  |  |  | 842,745 |  |  |  | 100% |  |  |  | 100% |
VisEra Technologies Company Ltd. (VisEra Tech) |  | Research, design, development, manufacturing, sales, packaging and test of color filter |  | Hsinchu, Taiwan |  |  | 6,521,231 |  |  |  | 6,363,099 |  |  |  | 73% |  |  |  | 87% |
TSMC North America |  | Selling and marketing of integrated circuits and other semiconductor devices |  | San Jose, California, U.S.A. |  |  | 4,871,149 |  |  |  | 4,568,059 |  |  |  | 100% |  |  |  | 100% |
Japan Advanced Semiconductor Manufacturing, Inc.（JASM） |  | Manufacturing, sales, testing and computer aided design of integrated circuits and other semiconductor devices |  | Kumamoto, Japan |  |  | 1,383,554 |  |  |  | - |  |  |  | 100% |  |  |  | - |
TSMC Europe B.V. (TSMC Europe) |  | Customer service and supporting activities |  | Amsterdam, the Netherlands |  |  | 509,880 |  |  |  | 537,737 |  |  |  | 100% |  |  |  | 100% |
TSMC Design Technology Japan, Inc. (TSMC JDC) |  | Engineering support activities |  | Yokohama, Japan |  |  | 368,144 |  |  |  | 292,266 |  |  |  | 100% |  |  |  | 100% |
VentureTech Alliance Fund III, L.P. (VTAF III) |  | Investing in new start-up technology companies |  | Cayman Islands |  |  | 300,401 |  |  |  | 214,881 |  |  |  | 98% |  |  |  | 98% |
Emerging Fund L.P.（Emerging Fund） |  | Investing in technology start-up companies |  | Cayman Islands |  |  | 286,205 |  |  |  | - |  |  |  | 99.9% |  |  |  | - |
TSMC Japan 3DIC R&D Center, Inc. (TSMC 3DIC) |  | Engineering support activities |  | Yokohama, Japan |  |  | 270,513 |  |  |  | - |  |  |  | 100% |  |  |  | - |
TSMC Japan Limited (TSMC Japan) |  | Customer service and supporting activities |  | Yokohama, Japan |  |  | 132,411 |  |  |  | 144,784 |  |  |  | 100% |  |  |  | 100% |
VentureTech Alliance Fund II, L.P. (VTAF II) |  | Investing in new start-up technology companies |  | Cayman Islands |  |  | 112,320 |  |  |  | 82,441 |  |  |  | 98% |  |  |  | 98% |
TSMC Korea Limited (TSMC Korea) |  | Customer service and supporting activities |  | Seoul, Korea |  |  | 40,857 |  |  |  | 42,395 |  |  |  | 100% |  |  |  | 100% |
|  |  |  |  |  | $ | 580,702,074 |  |  | $ | 545,784,630 |  |  |  |  |  |  |  |  |

The Company established a subsidiary, JASM, in December 2021 and invested in JASM for the amount of NT$1,416,921 thousand in January 2022. After JASM’s capital increase in January 2022, the

- 26 -

Company’s shareholding in JASM decreased from 100% to 81%. This transaction was accounted for as an equity transaction since the transaction did not change the Company’s control over JASM.

To facilitate VisEra’s IPO in Taiwan, 39,501 thousand common shares of VisEra at a price of NT$240 were sold by the Company and an increase of NT$8,406,282 thousand in capital surplus was recognized. The Company’s shareholding in VisEra decreased from 87% to 73%. This disposal was accounted for as an equity transaction since the transaction did not change the Company’s control over VisEra.

The Company established a subsidiary in March 2021 and continually increased its investment in TSMC 3DIC for the amount of NT$278,986 thousand.

The Company established a subsidiary in January 2021 and continually increased its investment in Emerging Fund for the amount of NT$298,618 thousand.

The Company established a subsidiary in November 2020 and, in both of 2021 and 2020, continually increased its investment in TSMC Arizona for the amount of NT$20,787,702 thousand and NT$855,599 thousand, respectively. 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.

The Company established a subsidiary in January 2020 and, in both of 2021 and 2020, continually increased its investment in TSMC JDC for the amount of NT$108,120 thousand and NT$302,560 thousand, respectively.

| b. | Investments in associates

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 |  | December 31, 2021 |  | December 31, 2020 |  | December 31, 2021 |  | December 31, 2020 |
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 |  | $ | 10,613,127 |  |  | $ | 9,029,890 |  |  |  |  | 28% |  | 28%
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC) |  | Manufacturing and selling of integrated circuits and other semiconductor devices |  | Singapore |  |  | 6,795,699 |  |  | $ | 5,900,245 |  |  |  |  | 39% |  | 39%
Xintec Inc. (Xintec) |  | Wafer level chip size packaging and wafer level post passivation interconnection service |  | Taoyuan, Taiwan |  |  | 3,046,961 |  |  |  | 2,554,123 |  |  |  |  | 41% |  | 41%
Global Unichip Corporation (GUC) |  | Researching, developing, manufacturing, testing and marketing of integrated circuits |  | Hsinchu, Taiwan |  |  | 1,484,683 |  |  |  | 1,328,620 |  |  |  |  | 35% |  | 35%
|  |  |  |  |  | $ | 21,940,470 |  |  | $ | 18,812,878 |  |  |  |  |  |  |

As of December 31, 2021 and 2020, no investments in associates are individually material to the Company. Please refer to the parent company only statements of comprehensive income for recognition of share of both profit (loss) and other comprehensive income (loss) of associates that are not individually material.

- 27 -

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 |  | December 31, 2021 |  | December 31, 2020
VIS |  | $ | 73,347,312 |  |  | $ | 53,849,925 |
GUC |  | $ | 27,359,085 |  |  | $ | 15,827,184 |
Xintec |  | $ | 15,913,315 |  |  | $ | 20,420,233 |

1 2. | PROPERTY, PLANT AND EQUIPMENT

|  | December 31, 2021 |  | December 31, 2020
Assets used by the Company |  | $ | 1,889,970,502 |  |  | $ | 1,510,807,506 |
Assets subject to operating leases |  |  | 27 |  |  |  | 977,050 |
|  | $ | 1,889,970,529 |  |  | $ | 1,511,784,556 |

| a. | Assets used by the Company

|  | Land |  | Buildings |  | Machinery and Equipment |  | Office Equipment |  | Equipment under Installation and Construction in Progress |  | Total
Cost |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2021 |  | $ | 3,212,000 |  |  | $ | 485,468,808 |  |  | $ | 3,449,111,312 |  |  | $ | 63,277,681 |  |  | $ | 220,142,047 |  |  | $ | 4,221,211,848 |
Additions |  |  | - |  |  |  | 51,472,846 |  |  |  | 391,166,029 |  |  |  | 8,187,623 |  |  |  | 332,505,897 |  |  |  | 783,332,395 |
Disposals or retirements |  |  | - |  |  |  | (29,280 | ) |  |  | (27,144,388 | ) |  |  | (153,243 | ) |  |  | - |  |  |  | (27,326,911 | )
Transfers from assets subject to operating leases |  |  | - |  |  |  | - |  |  |  | 1,443,590 |  |  |  | - |  |  |  | - |  |  |  | 1,443,590 |
Transfers to assets subject to operating leases |  |  | - |  |  |  | - |  |  |  | (244,579 | ) |  |  | - |  |  |  | - |  |  |  | (244,579 | )
Balance at December 31, 2021 |  | $ | 3,212,000 |  |  | $ | 536,912,374 |  |  | $ | 3,814,331,964 |  |  | $ | 71,312,061 |  |  | $ | 552,647,944 |  |  | $ | 4,978,416,343 |
Accumulated depreciation and impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2021 |  | $ | - |  |  | $ | 249,513,714 |  |  | $ | 2,420,657,989 |  |  | $ | 40,232,639 |  |  | $ | - |  |  | $ | 2,710,404,342 |
Additions |  |  | - |  |  |  | 31,932,475 |  |  |  | 360,603,748 |  |  |  | 8,219,832 |  |  |  | - |  |  |  | 400,756,055 |
Disposals or retirements |  |  | - |  |  |  | (24,664 | ) |  |  | (23,180,397 | ) |  |  | (152,420 | ) |  |  | - |  |  |  | (23,357,481 | )
Transfers from assets subject to operating leases |  |  | - |  |  |  | - |  |  |  | 436,816 |  |  |  | - |  |  |  | - |  |  |  | 436,816 |
Transfers to assets subject to operating leases |  |  | - |  |  |  | - |  |  |  | (68,279 | ) |  |  | - |  |  |  | - |  |  |  | (68,279 | )
Impairment |  |  | - |  |  |  | - |  |  |  | 274,388 |  |  |  | - |  |  |  | - |  |  |  | 274,388 |
Balance at December 31, 2021 |  | $ | - |  |  | $ | 281,421,525 |  |  | $ | 2,758,724,265 |  |  | $ | 48,300,051 |  |  | $ | - |  |  | $ | 3,088,445,841 |
Carrying amounts at December 31, 2021 |  | $ | 3,212,000 |  |  | $ | 255,490,849 |  |  | $ | 1,055,607,699 |  |  | $ | 23,012,010 |  |  | $ | 552,647,944 |  |  | $ | 1,889,970,502 |

(Continued)

- 28 -

|  | Land |  | Buildings |  | Machinery and Equipment |  | Office Equipment |  | Equipment under Installation and Construction in Progress |  | Total
Cost |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2020 |  | $ | 3,212,000 |  |  | $ | 401,141,445 |  |  | $ | 2,737,813,896 |  |  | $ | 49,644,875 |  |  | $ | 526,396,815 |  |  | $ | 3,718,209,031 |
Additions (deductions) |  |  | - |  |  |  | 84,352,769 |  |  |  | 720,459,185 |  |  |  | 14,343,705 |  |  |  | (306,254,768 | ) |  |  | 512,900,891 |
Disposals or retirements |  |  | - |  |  |  | (25,406 | ) |  |  | (7,962,758 | ) |  |  | (710,899 | ) |  |  | - |  |  |  | (8,699,063 | )
Transfers to assets subject to operating leases |  |  | - |  |  |  | - |  |  |  | (1,199,011 | ) |  |  | - |  |  |  | - |  |  |  | (1,199,011 | )
Balance at December 31, 2020 |  | $ | 3,212,000 |  |  | $ | 485,468,808 |  |  | $ | 3,449,111,312 |  |  | $ | 63,277,681 |  |  | $ | 220,142,047 |  |  | $ | 4,221,211,848 |
Accumulated depreciation and impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2020 |  | $ | - |  |  | $ | 222,235,137 |  |  | $ | 2,150,734,249 |  |  | $ | 34,357,425 |  |  | $ | - |  |  | $ | 2,407,326,811 |
Additions |  |  | - |  |  |  | 27,292,400 |  |  |  | 277,252,114 |  |  |  | 6,584,391 |  |  |  | - |  |  |  | 311,128,905 |
Disposals or retirements |  |  | - |  |  |  | (13,823 | ) |  |  | (7,125,781 | ) |  |  | (709,177 | ) |  |  | - |  |  |  | (7,848,781 | )
Transfers to assets subject to operating leases |  |  | - |  |  |  | - |  |  |  | (202,593 | ) |  |  | - |  |  |  | - |  |  |  | (202,593 | )
Balance at December 31, 2020 |  | $ | - |  |  | $ | 249,513,714 |  |  | $ | 2,420,657,989 |  |  | $ | 40,232,639 |  |  | $ | - |  |  | $ | 2,710,404,342 |
Carrying amounts at December 31, 2020 |  | $ | 3,212,000 |  |  | $ | 235,955,094 |  |  | $ | 1,028,453,323 |  |  | $ | 23,045,042 |  |  | $ | 220,142,047 |  |  | $ | 1,510,807,506 |

(Concluded)

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

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

| b. | Assets subject to operating leases

|  | Buildings |  | Machinery and Equipment |  | Total
Cost |  |  |  |  |  |
Balance at January 1, 2021 |  | $ | 182,643 |  |  | $ | 1,199,011 |  |  | $ | 1,381,654 |
Transfers to assets used by the Company |  |  | - |  |  |  | (1,443,590 | ) |  |  | (1,443,590 | )
Transfers from assets used by the Company |  |  | - |  |  |  | 244,579 |  |  |  | 244,579 |
Balance at December 31, 2021 |  | $ | 182,643 |  |  | $ | - |  |  | $ | 182,643 |
Accumulated depreciation |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2021 |  | $ | 182,612 |  |  | $ | 221,992 |  |  | $ | 404,604 |
Additions |  |  | 4 |  |  |  | 146,545 |  |  |  | 146,549 |
Transfers to assets used by the Company |  |  | - |  |  |  | (436,816 | ) |  |  | (436,816 | )
Transfers from assets used by the Company |  |  | - |  |  |  | 68,279 |  |  |  | 68,279 |
Balance at December 31, 2021 |  | $ | 182,616 |  |  | $ | - |  |  | $ | 182,616 |
Carrying amounts at December 31, 2021 |  | $ | 27 |  |  | $ | - |  |  | $ | 27 |

(Continued)

- 29 -

|  | Buildings |  | Machinery and Equipment |  | Total
Cost |  |  |  |  |  |
Balance at January 1, 2020 |  | $ | 494,582 |  |  | $ | - |  |  | $ | 494,582 |
Disposals or retirements |  |  | (311,939 | ) |  |  | - |  |  |  | (311,939 | )
Transfers from assets used by the Company |  |  | - |  |  |  | 1,199,011 |  |  |  | 1,199,011 |
Balance at December 31, 2020 |  | $ | 182,643 |  |  | $ | 1,199,011 |  |  | $ | 1,381,654 |
Accumulated depreciation |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2020 |  | $ | 476,168 |  |  | $ | - |  |  | $ | 476,168 |
Additions |  |  | 12,210 |  |  |  | 19,399 |  |  |  | 31,609 |
Disposals or retirements |  |  | (305,766 | ) |  |  | - |  |  |  | (305,766 | )
Transfers from assets used by the Company |  |  | - |  |  |  | 202,593 |  |  |  | 202,593 |
Balance at December 31, 2020 |  | $ | 182,612 |  |  | $ | 221,992 |  |  | $ | 404,604 |
Carrying amounts at December 31, 2020 |  | $ | 31 |  |  | $ | 977,019 |  |  | $ | 977,050 |

(Concluded)

Operating leases relate to leases of buildings and leases of machinery and equipment with lease terms ranging between approximately 1 to 2 years. The lessees do not have purchase options to acquire the assets at the expiration of the lease periods.

The maturity analysis of operating lease payments receivable from the buildings and machinery and equipment is as follows:

|  | December 31, 2021 |  | December 31, 2020
Year 1 |  | $ | 986 |  |  | $ | 132,128 |

1 3. | LEASE ARRANGEMENTS

| a. | Right-of-use assets

|  | December 31, 2021 |  | December 31, 2020
Carrying amounts |  |  |  |
Land |  | $ | 29,525,788 |  |  | $ | 24,874,590 |
Buildings |  |  | 574,009 |  |  |  | 283,086 |
Office equipment |  |  | 23,255 |  |  |  | 27,151 |
|  | $ | 30,123,052 |  |  | $ | 25,184,827 |

- 30 -

|  | Years Ended December 31
|  | 2021 |  | 2020
Additions to right-of-use assets |  | $ | 7,053,815 |  |  | $ | 12,558,794 |
Depreciation of right-of-use assets |  |  |  |  |  |  |  |
Land |  | $ | 1,810,555 |  |  | $ | 1,298,315 |
Buildings |  |  | 203,006 |  |  |  | 131,436 |
Machinery and equipment |  |  | - |  |  |  | 775,809 |
Office equipment |  |  | 15,092 |  |  |  | 13,612 |
|  | $ | 2,028,653 |  |  | $ | 2,219,172 |
Income from subleasing right-of-use assets (classified under other operating income and expenses, net) |  | $ | 59,887 |  |  | $ | 52,317 |

| b. | Lease liabilities

|  | December 31, 2021 |  | December 31, 2020
Carrying amounts |  |  |  |
Current portion (classified under accrued expenses and other current liabilities) |  | $ | 1,591,153 |  |  | $ | 1,379,097 |
Noncurrent portion |  |  | 18,742,323 |  |  |  | 18,480,111 |
|  | $ | 20,333,476 |  |  | $ | 19,859,208 |

Ranges of discount rates for lease liabilities are as follows:

|  | December 31, 2021 |  | December 31, 2020
Land |  | 0.39%-0.94% |  | 0.48%-0.94%
Buildings |  | 0.39%-0.71% |  | 0.54%-0.71%
Office equipment |  | 0.28%-0.69% |  | 0.28%-0.71%

| c. | Material terms of right-of-use assets

The Company leases land and buildings mainly for the use of plants and offices with lease terms of 1 to 22 years. The lease contracts for land located in the R.O.C. specify that lease payments will be adjusted every 2 years on the basis of changes in announced land value prices. The Company does not have purchase options to acquire the leasehold land and buildings at the end of the lease terms.

| d. | Subleases

The Company subleases the right to use its buildings and machinery and equipment under operating leases with lease terms of 1 to 2 years.

- 31 -

The maturity analysis of lease payments receivable under operating subleases is as follows:

|  | December 31, 2021 |  | December 31, 2020
Year 1 |  | $ | 60,771 |  |  | $ | 142,340 |

| e. | Other lease information

|  | Years Ended December 31
|  | 2021 |  | 2020
Expenses relating to short-term leases |  | $ | 5,250,134 |  |  | $ | 3,171,455 |
Expenses relating to variable lease payments not included in the measurement of lease liabilities |  | $ | 125,592 |  |  | $ | 212,955 |
Total cash outflow for leases |  | $ | 6,975,064 |  |  | $ | 5,823,617 |

1 4. | INTANGIBLE ASSETS

|  | Goodwill |  | Technology License Fees |  | Software and System Design Costs |  | Patent and Others |  | Total
Cost |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2021 |  | $ | 1,567,756 |  |  | $ | 22,110,332 |  |  | $ | 35,685,061 |  |  | $ | 11,245,851 |  |  | $ | 70,609,000 |
Additions |  |  | - |  |  |  | 1,372,806 |  |  |  | 7,686,449 |  |  |  | 219,505 |  |  |  | 9,278,760 |
Disposals or retirements |  |  | - |  |  |  | - |  |  |  | (299,060 | ) |  |  | - |  |  |  | (299,060 | )
Balance at December 31, 2021 |  | $ | 1,567,756 |  |  | $ | 23,483,138 |  |  | $ | 43,072,450 |  |  | $ | 11,465,356 |  |  | $ | 79,588,700 |
Accumulated amortization and impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2021 |  | $ | - |  |  | $ | 12,174,686 |  |  | $ | 29,683,225 |  |  | $ | 7,017,492 |  |  | $ | 48,875,403 |
Additions |  |  | - |  |  |  | 2,686,786 |  |  |  | 4,214,190 |  |  |  | 1,199,754 |  |  |  | 8,100,730 |
Disposals or retirements |  |  | - |  |  |  | - |  |  |  | (297,833 | ) |  |  | - |  |  |  | (297,833 | )
Balance at December 31, 2021 |  | $ | - |  |  | $ | 14,861,472 |  |  | $ | 33,599,582 |  |  | $ | 8,217,246 |  |  | $ | 56,678,300 |
Carrying amounts at December 31, 2021 |  | $ | 1,567,756 |  |  | $ | 8,621,666 |  |  | $ | 9,472,868 |  |  | $ | 3,248,110 |  |  | $ | 22,910,400 |

Cost |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2020 |  | $ | 1,567,756 |  |  | $ | 15,801,406 |  |  | $ | 32,518,813 |  |  | $ | 8,271,046 |  |  | $ | 58,159,021 |
Additions |  |  | - |  |  |  | 6,308,926 |  |  |  | 3,226,715 |  |  |  | 2,974,805 |  |  |  | 12,510,446 |
Disposals or retirements |  |  | - |  |  |  | - |  |  |  | (60,467 | ) |  |  | - |  |  |  | (60,467 | )
Balance at December 31, 2020 |  | $ | 1,567,756 |  |  | $ | 22,110,332 |  |  | $ | 35,685,061 |  |  | $ | 11,245,851 |  |  | $ | 70,609,000 |
Accumulated amortization and impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2020 |  | $ | - |  |  | $ | 9,770,225 |  |  | $ | 26,215,694 |  |  | $ | 5,901,658 |  |  | $ | 41,887,577 |
Additions |  |  | - |  |  |  | 2,404,461 |  |  |  | 3,527,399 |  |  |  | 1,115,834 |  |  |  | 7,047,694 |
Disposals or retirements |  |  | - |  |  |  | - |  |  |  | (59,868 | ) |  |  | - |  |  |  | (59,868 | )
Balance at December 31, 2020 |  | $ | - |  |  | $ | 12,174,686 |  |  | $ | 29,683,225 |  |  | $ | 7,017,492 |  |  | $ | 48,875,403 |
Carrying amounts at December 31, 2020 |  | $ | 1,567,756 |  |  | $ | 9,935,646 |  |  | $ | 6,001,836 |  |  | $ | 4,228,359 |  |  | $ | 21,733,597 |

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

- 32 -

annual discount rates of 8.0% in both years in its test of impairment as of December 31, 202 1 and 20 20, to reflect the relevant specific risk in the cash-generating unit.

For the years ended December 31, 2021 and 2020, the Company did not recognize any impairment loss on goodwill.

1 5. | SHORT-TERM LOANS

|  | December 31, 2021 |  | December 31, 2020
Unsecured loans |  | $ | 114,921,333 |  |  | $ | 88,559,026 |
Related parties unsecured loans |  |  | - |  |  |  | 87,100,700 |
|  | $ | 114,921,333 |  |  | $ | 175,659,726 |
Loan content |  |  |  |  |  |  |  |
US$ (in thousands) |  | $ | - |  |  | $ | 3,300,000 |
EUR(in thousands) |  |  | 3,652,935 |  |  |  | 2,398,000 |
Annual interest rate |  |  | (0.73)%-0% |  |  |  | (0.54)%-0.33% |
Maturity date |  |  | Due by June 2022 |  |  |  | Due by July 2022 |

The borrowing rates from loans between the Company and related parties are determined by mutual consent. And the loan are repayable on related parties’ demand.

1 6. | BONDS PAYABLE

|  | December 31, 2021 |  | December 31, 2020
Domestic unsecured bonds |  | $ | 312,448,000 |  |  | $ | 173,197,000 |
Less: Discounts on bonds payable |  |  | (264,591 | ) |  |  | (146,255 | )
Less: Current portion |  |  | (4,400,000 | ) |  |  | (2,600,000 | )
|  | $ | 307,783,409 |  |  | $ | 170,450,745 |

The major terms of domestic unsecured bonds are as follows:

Issuance |  | Tranche |  | Issuance Period |  | Total Amount |  | Coupon Rate |  | Repayment and Interest Payment
NT$ unsecured bonds |  |  |  |  |  |  |  |  |  |
101-3 |  | - |  | October 2012 to October 2022 |  | $ | 4,400,000 |  |  | 1.53% |  | Bullet repayment; interest payable annually
101-4 |  | B |  | January 2013 to January 2020 |  |  | 10,000,000 |  |  | 1.35% |  | The same as above
|  | C |  | January 2013 to January 2023 |  |  | 3,000,000 |  |  | 1.49% |  | The same as above
102-1 |  | B |  | February 2013 to February 2020 |  |  | 11,600,000 |  |  | 1.38% |  | The same as above
|  | C |  | February 2013 to February 2023 |  |  | 3,600,000 |  |  | 1.50% |  | The same as above

(Continued)

- 33 -

Issuance |  | Tranche |  | Issuance Period |  | Total Amount |  | Coupon Rate |  | Repayment and Interest Payment
102-2 |  | A |  | July 2013 to July 2020 |  | $ | 10,200,000 |  |  | 1.50% |  | Bullet repayment; interest payable annually
|  | B |  | July 2013 to July 2023 |  |  | 3,500,000 |  |  | 1.70% |  | The same as above
102-4 |  | D |  | September 2013 to March 2021 |  |  | 2,600,000 |  |  | 1.85% |  | Bullet repayment; interest payable annually (interest for the six months prior to maturity will accrue on the basis of actual days and be repayable at maturity)
|  | E |  | September 2013 to March 2023 |  |  | 5,400,000 |  |  | 2.05% |  | The same as above
|  | F |  | September 2013 to September 2023 |  |  | 2,600,000 |  |  | 2.10% |  | Bullet repayment; interest payable annually
109-1 |  | A |  | March 2020 to March 2025 |  |  | 3,000,000 |  |  | 0.58% |  | The same as above
|  | B |  | March 2020 to March 2027 |  |  | 10,500,000 |  |  | 0.62% |  | The same as above
|  | C |  | March 2020 to March 2030 |  |  | 10,500,000 |  |  | 0.64% |  | The same as above
109-2 |  | A |  | April 2020 to April 2025 |  |  | 5,900,000 |  |  | 0.52% |  | The same as above
|  | B |  | April 2020 to April 2027 |  |  | 10,400,000 |  |  | 0.58% |  | The same as above
|  | C |  | April 2020 to April 2030 |  |  | 5,300,000 |  |  | 0.60% |  | The same as above
109-3 |  | A |  | May 2020 to May 2025 |  |  | 4,500,000 |  |  | 0.55% |  | The same as above
|  | B |  | May 2020 to May 2027 |  |  | 7,500,000 |  |  | 0.60% |  | The same as above
|  | C |  | May 2020 to May 2030 |  |  | 2,400,000 |  |  | 0.64% |  | The same as above
109-4 |  | A |  | July 2020 to July 2025 |  |  | 5,700,000 |  |  | 0.58% |  | Two equal installments in last two years; interest payable annually
|  | B |  | July 2020 to July 2027 |  |  | 6,300,000 |  |  | 0.65% |  | The same as above
|  | C |  | July 2020 to July 2030 |  |  | 1,900,000 |  |  | 0.67% |  | The same as above

(Continued)

- 34 -

Issuance |  | Tranche |  | Issuance Period |  | Total Amount |  | Coupon Rate |  | Repayment and Interest Payment
109-5 |  | A |  | September 2020 to September 2025 |  | $ | 4,800,000 |  |  | 0.50% |  | Two equal installments in last two years; interest payable annually
|  | B |  | September 2020 to September 2027 |  |  | 8,000,000 |  |  | 0.58% |  | The same as above
|  | C |  | September 2020 to September 2030 |  |  | 2,800,000 |  |  | 0.60% |  | The same as above
109-6 (green bond) |  | A |  | December 2020 to December 2025 |  |  | 1,600,000 |  |  | 0.40% |  | The same as above
|  | B |  | December 2020 to December 2027 |  |  | 5,600,000 |  |  | 0.44% |  | The same as above
|  | C |  | December 2020 to December 2030 |  |  | 4,800,000 |  |  | 0.48% |  | The same as above
109-7 |  | A |  | December 2020 to December 2025 |  |  | 1,900,000 |  |  | 0.36% |  | The same as above
|  | B |  | December 2020 to December 2027 |  |  | 10,200,000 |  |  | 0.41% |  | The same as above
|  | C |  | December 2020 to December 2030 |  |  | 6,400,000 |  |  | 0.45% |  | The same as above
110-1 |  | A |  | March 2021 to March 2026 |  |  | 4,800,000 |  |  | 0.50% |  | Bullet repayment; interest payable annually
|  | B |  | March 2021 to March 2028 |  |  | 11,400,000 |  |  | 0.55% |  | The same as above
|  | C |  | March 2021 to March 2031 |  |  | 4,900,000 |  |  | 0.60% |  | The same as above
110-2 |  | A |  | May 2021 to May 2026 |  |  | 5,200,000 |  |  | 0.50% |  | The same as above
|  | B |  | May 2021 to May 2028 |  |  | 8,400,000 |  |  | 0.58% |  | The same as above
|  | C |  | May 2021 to May 2031 |  |  | 5,600,000 |  |  | 0.65% |  | The same as above
110-3 |  | A |  | June 2021 to June 2026 |  |  | 6,900,000 |  |  | 0.52% |  | The same as above
|  | B |  | June 2021 to June 2028 |  |  | 7,900,000 |  |  | 0.58% |  | The same as above
|  | C |  | June 2021 to June 2031 |  |  | 4,900,000 |  |  | 0.65% |  | The same as above

(Continued)

- 35 -

Issuance |  | Tranche |  | Issuance Period |  | Total Amount |  | Coupon Rate |  | Repayment and Interest Payment
110-4 |  | A |  | August 2021 to August 2025 |  | $ | 4,000,000 |  |  | 0.485% |  | Bullet repayment; interest payable annually
|  | B |  | August 2021 to August 2026 |  |  | 8,000,000 |  |  | 0.50% |  | The same as above
|  | C |  | August 2021 to August 2028 |  |  | 5,400,000 |  |  | 0.55% |  | The same as above
|  | D |  | August 2021 to August 2031 |  |  | 4,200,000 |  |  | 0.62% |  | The same as above
110-6 |  | A |  | October 2021 to April 2026 |  |  | 3,200,000 |  |  | 0.535% |  | The same as above
|  | B |  | October 2021 to October 2026 |  |  | 6,900,000 |  |  | 0.54% |  | The same as above
|  | C |  | October 2021 to October 2028 |  |  | 4,600,000 |  |  | 0.60% |  | The same as above
|  | D |  | October 2021 to October 2031 |  |  | 1,600,000 |  |  | 0.62% |  | The same as above
110-7 |  | A |  | December 2021 to December 2026 |  |  | 7,700,000 |  |  | 0.65% |  | The same as above
|  | B |  | December 2021 to June 2027 |  |  | 3,500,000 |  |  | 0.675% |  | The same as above
|  | C |  | December 2021 to December 2028 |  |  | 5,500,000 |  |  | 0.72% |  | The same as above

(Concluded)

Issuance |  | Tranche |  | Issuance Period |  | Total Amount (US$ in Thousands) |  | Coupon Rate |  | Repayment and Interest Payment
US$ unsecured bonds |  |  |  |  |  |  |  |  |  |
109-1 |  | - |  | September 2020 to September 2060 |  | US$ | 1,000,000 |  |  | 2.70% |  | Bullet repayment (callable on the 5th anniversary of the issue date and every anniversary thereafter); interest payable annually
110-5 |  | - |  | September 2021 to September 2051 |  |  | 1,000,000 |  |  | 3.10% |  | The same as above

- 36 -

The Company issued domestic unsecured bonds during the period from January, 1, 2022 to February 15, 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) |  | A |  | January 2022 to January 2027 |  | $ | 2,100,000 |  |  | 0.63% |  | Bullet repayment; interest payable annually
|  | B |  | January 2022 to January 2029 |  |  | 3,300,000 |  |  | 0.72% |  | The same as above

17. | RETIREMENT BENEFIT PLANS

| a. | Defined contribution plans

The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant to the Act, the Company has made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts. Accordingly, the Company recognized expenses of NT$3,028,282 thousand and NT$2,309,527 thousand for the years ended December 31, 2021 and 2020, respectively.

| b. | Defined benefit plans

The Company has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the Funds.

Amounts recognized in respect of these defined benefit plans were as follows:

|  | Years Ended December 31
|  | 2021 |  | 2020
Current service cost |  | $ | 145,289 |  |  | $ | 123,311 |
Net interest expense |  |  | 47,196 |  |  |  | 81,604 |
Components of defined benefit costs recognized in profit or loss |  |  | 192,485 |  |  |  | 204,915 |
Remeasurement on the net defined benefit liability: |  |  |  |  |  |  |  |
Return on plan assets (excluding amounts included in net interest expense) |  |  | (73,298 | ) |  |  | (139,212 | )
Actuarial loss arising from experience adjustments |  |  | 94,278 |  |  |  | 494,051 |

(Continued)

- 37 -

|  | Years Ended December 31
|  | 2021 |  | 2020
Actuarial loss arising from changes in demographic assumptions |  | $ | 277,454 |  |  | $ | - |
Actuarial (gain) loss arising from changes in financial assumptions |  |  | (540,513 | ) |  |  | 3,161,910 |
Components of defined benefit costs recognized in other comprehensive income |  |  | (242,079 | ) |  |  | 3,516,749 |
Total |  | $ | (49,594 | ) |  | $ | 3,721,664 |

(Concluded)

The pension costs of the aforementioned defined benefit plans were recognized in profit or loss by the following categories:

|  | Years Ended December 31
|  | 2021 |  | 2020
Cost of revenue |  | $ | 124,548 |  |  | $ | 126,274 |
Research and development expenses |  |  | 52,801 |  |  |  | 57,306 |
General and administrative expenses |  |  | 12,430 |  |  |  | 18,248 |
Marketing expenses |  |  | 2,706 |  |  |  | 3,087 |
|  | $ | 192,485 |  |  | $ | 204,915 |

The amounts arising from the defined benefit obligation of the Company were as follows:

|  | December 31, 2021 |  | December 31, 2020
Present value of defined benefit obligation |  | $ | 16,585,442 |  |  | $ | 16,980,277 |
Fair value of plan assets |  |  | (5,548,563 | ) |  |  | (5,066,203 | )
Net defined benefit liability |  | $ | 11,036,879 |  |  | $ | 11,914,074 |

Movements in the present value of the defined benefit obligation were as follows:

|  | Years Ended December 31
|  | 2021 |  | 2020
Balance, beginning of year |  | $ | 16,980,277 |  |  | $ | 13,484,090 |
Current service cost |  |  | 145,289 |  |  |  | 123,311 |
Interest expense |  |  | 66,664 |  |  |  | 118,808 |
Remeasurement: |  |  |  |  |  |  |  |
Actuarial loss arising from experience adjustments |  |  | 94,278 |  |  |  | 494,051 |
Actuarial loss arising from changes in demographic assumptions |  |  | 277,454 |  |  |  | - |
Actuarial (gain) loss arising from changes in financial assumptions |  |  | (540,513 | ) |  |  | 3,161,910 |
Benefits paid from plan assets |  |  | (431,817 | ) |  |  | (398,986 | )
Benefits paid directly by the Company |  |  | (6,190 | ) |  |  | (2,907 | )
Balance, end of year |  | $ | 16,585,442 |  |  | $ | 16,980,277 |

- 38 -

Movements in the fair value of the plan assets were as follows:

|  | Years Ended December 31
|  | 2021 |  | 2020
Balance, beginning of year |  | $ | 5,066,203 |  |  | $ | 4,301,594 |
Interest income |  |  | 19,468 |  |  |  | 37,204 |
Remeasurement: |  |  |  |  |  |  |  |
Return on plan assets (excluding amounts included in net interest expense) |  |  | 73,298 |  |  |  | 139,212 |
Contributions from employer |  |  | 821,411 |  |  |  | 987,179 |
Benefits paid from plan assets |  |  | (431,817 | ) |  |  | (398,986 | )
Balance, end of year |  | $ | 5,548,563 |  |  | $ | 5,066,203 |

The fair value of the plan assets by major categories at the end of reporting period was as follows:

|  | December 31, 2021 |  | December 31, 2020
Cash |  | $ | 1,000,961 |  |  | $ | 632,769 |
Equity instruments |  |  | 2,951,835 |  |  |  | 2,926,745 |
Debt instruments |  |  | 1,595,767 |  |  |  | 1,506,689 |
|  | $ | 5,548,563 |  |  | $ | 5,066,203 |

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions of the actuarial valuation were as follows:

|  | Measurement Date
|  | December 31, 2021 |  | December 31, 2020
Discount rate |  | 0.75% |  | 0.40%
Future salary increase rate |  | 3.00% |  | 3.00% (Note)

| Note: | The Company has an additional 20 percent pay raise in 2021.

Through the defined benefit plans under the R.O.C. Labor Standards Law, the Company is exposed to the following risks:

| 1) | Investment risk: The pension funds are invested in equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the government’s designated authorities or under the mandated management. However, under the R.O.C. Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a two-year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return.

| 2) | Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the debt investments of the plan assets.

- 39 -

Assuming a hypothetical decrease in interest rate at the end of the reporting period contributed to a decrease of 0.5% (and not below 0.0%) in the discount rate and all other assumptions were held constant, the present value of the defined benefit obligation would increase by NT$780,460 thousand and NT$694,732 thousand as of December 31, 2021 and 2020, respectively.

| 3) | Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

Assuming the expected salary rate increases by 0.5% at the end of the reporting period and all other assumptions were held constant, the present value of the defined benefit obligation would increase by NT$759,527 thousand and NT$835,964 thousand as of December 31, 2021 and 2020, respectively.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability.

The Company expects to make contributions of NT$2,269,881 thousand to the defined benefit plans in the next year starting from December 31, 2021. The weighted average duration of the defined benefit obligation is 9 years.

18. | EQUITY

| a. | Capital stock

|  | December 31, 2021 |  | December 31, 2020
Authorized shares (in thousands) |  |  | 28,050,000 |  |  |  | 28,050,000 |
Authorized capital |  | $ | 280,500,000 |  |  | $ | 280,500,000 |
Issued and paid shares (in thousands) |  |  | 25,930,380 |  |  |  | 25,930,380 |
Issued capital |  | $ | 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.

As of December 31, 2021, 1,064,243 thousand ADSs of the Company were traded on the NYSE. The number of common shares represented by the ADSs was 5,321,213 thousand shares (one ADS represents five common shares).

- 40 -

| b. | Capital surplus

|  | December 31, 2021 |  | December 31, 2020
Additional paid-in capital |  | $ | 24,184,939 |  |  | $ | 24,184,939 |
From merger |  |  | 22,804,510 |  |  |  | 22,804,510 |
From convertible bonds |  |  | 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 |  |  |  | - |
From share of changes in equities of subsidiaries |  |  | 113,952 |  |  |  | 121,843 |
From share of changes in equities of associates |  |  | 307,322 |  |  |  | 302,526 |
Donations |  |  | 51,750 |  |  |  | 40,578 |
|  | $ | 64,761,602 |  |  | $ | 56,347,243 |

Under the relevant laws, the capital surplus generated from the excess of the issuance price over the par value of capital stock (including the stock issued for new capital, mergers and convertible bonds), the difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal and donations may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or stock dividends up to a certain percentage of the Company’s paid-in capital. The capital surplus from share of changes in equities of subsidiaries and associates and dividend of a claim extinguished by a prescription may be used to offset a deficit.

| c. | Retained earnings and dividend policy

The Company’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 the Company’s Board of Directors and reported to the Company’s shareholders in its meeting. When allocating earnings, the Company 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 the Company’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 Company’s Articles of Incorporation.

The Company’s Articles of Incorporation also provide that profits of the Company 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.

- 41 -

The appropriations of 2021, 2020 and 2019 quarterly earnings have been approved by the Company’s Board of Directors in its meeting, respectively. The appropriations and cash dividends per share were as follows:

|  | Fourth Quarter |  | Third Quarter |  | Second Quarter |  | First Quarter
Resolution Date of the |  | of 2021 |  | of 2021 |  | of 2021 |  | of 2021
Company’s Board of |  | February 15, |  | November 9, |  | August 10, |  | June 9,
Directors in its 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 the |  | of 2020 |  | of 2020 |  | of 2020 |  | of 2020
Company’s Board of |  | February 9, |  | November 10, |  | August 11, |  | May 12,
Directors in its 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 |

|  | Fourth Quarter |  | Third Quarter |  | Second Quarter |  | First Quarter
Resolution Date of the |  | of 2019 |  | of 2019 |  | of 2019 |  | of 2019
Company’s Board of Directors in its meeting |  | February 11, 2020 |  | November 12, 2019 |  | August 13, 2019 |  | June 5, 2019
Special capital reserve |  | $ | 16,893,073 |  |  | $ | 3,289,166 |  |  | $ | (3,338,190 | ) |  | $ | (4,723,939 | )
Cash dividends to shareholders |  | $ | 64,825,951 |  |  | $ | 64,825,951 |  |  | $ | 64,825,951 |  |  | $ | 51,860,761 |
Cash dividends per share (NT$) |  | $ | 2.5 |  |  | $ | 2.5 |  |  | $ | 2.5 |  |  | $ | 2.0 |

The special capital reserve for 2021 is to be presented for approval in the Company’s shareholders’ meeting to be held on June 8, 2022 (expected).

| d. | Others

Changes in others were as follows:

|  | Year Ended December 31, 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 year |  | $ | (57,001,627 | ) |  | $ | 2,321,754 |  |  | $ | - |  |  | $ | - |  |  | $ | (54,679,873 | )
Exchange differences arising on translation of foreign operations |  |  | (6,182,507 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (6,182,507 | )
Unrealized gain (loss) on financial assets at FVTOCI |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity instruments |  |  | - |  |  |  | 170,127 |  |  |  | - |  |  |  | - |  |  |  | 170,127 |
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal |  |  | - |  |  |  | (187,654 | ) |  |  | - |  |  |  | - |  |  |  | (187,654 | )
Gain (loss) arising on changes in the fair value of hedging instruments |  |  | - |  |  |  | - |  |  |  | (41,416 | ) |  |  | - |  |  |  | (41,416 | )
Transferred to initial carrying amount of hedged items |  |  | - |  |  |  | - |  |  |  | 48,469 |  |  |  | - |  |  |  | 48,469 |
Share of other comprehensive income (loss) of subsidiaries and associates |  |  | (119,227 | ) |  |  | (1,673,697 | ) |  |  | 113,483 |  |  |  | - |  |  |  | (1,679,441 | )
Income tax effect |  |  | - |  |  |  | (56,220 | ) |  |  | - |  |  |  | - |  |  |  | (56,220 | )
Balance, end of year |  | $ | (63,303,361 | ) |  | $ | 574,310 |  |  | $ | 120,536 |  |  | $ | - |  |  | $ | (62,608,515 | )

- 42 -

|  | Year Ended December 31, 2020
|  | 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 year |  | $ | (26,871,400 | ) |  | $ | (692,959 | ) |  | $ | (3,820 | ) |  | $ | (190 | ) |  | $ | (27,568,369 | )
Exchange differences arising on translation of foreign operations |  |  | (29,853,603 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (29,853,603 | )
Unrealized gain (loss) on financial assets at FVTOCI |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity instruments |  |  | - |  |  |  | (41,995 | ) |  |  | - |  |  |  | - |  |  |  | (41,995 | )
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal |  |  | - |  |  |  | 108,687 |  |  |  | - |  |  |  | - |  |  |  | 108,687 |
Gain (loss) arising on changes in the fair value of hedging instruments |  |  | - |  |  |  | - |  |  |  | 24,085 |  |  |  | - |  |  |  | 24,085 |
Transferred to initial carrying amount of hedged items |  |  | - |  |  |  | - |  |  |  | (20,265 | ) |  |  | - |  |  |  | (20,265 | )
Share of other comprehensive income (loss) of subsidiaries and associates |  |  | (276,624 | ) |  |  | 2,947,368 |  |  |  | - |  |  |  | - |  |  |  | 2,670,744 |
Share of unearned stock-based employee compensation of subsidiaries and associates |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 190 |  |  |  | 190 |
Income tax effect |  |  | - |  |  |  | 653 |  |  |  | - |  |  |  | - |  |  |  | 653 |
Balance, end of year |  | $ | (57,001,627 | ) |  | $ | 2,321,754 |  |  | $ | - |  |  | $ | - |  |  | $ | (54,679,873 | )

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

| e. | Treasury stock

For the Company’s shareholders’ interests, the Company’s Board of Directors approved a share buyback plan on February 15, 2022 to repurchase 1,387 thousand shares during the period from February 16, 2022 to April 15, 2022. The shares purchased will be cancelled subsequently.

19. | NET REVENUE

| a. | Disaggregation of revenue from contracts with customers

|  | Years Ended December 31
Product |  | 2021 |  | 2020
Wafer |  | $ | 1,402,118,668 |  |  | $ | 1,161,829,728 |
Others |  |  | 172,627,213 |  |  |  | 152,963,285 |
|  | $ | 1,574,745,881 |  |  | $ | 1,314,793,013 |

|  | Years Ended December 31
Geography |  | 2021 |  | 2020
Taiwan |  | $ | 203,963,760 |  |  | $ | 129,082,884 |
United States |  |  | 1,011,932,438 |  |  |  | 809,731,866 |
China |  |  | 164,552,063 |  |  |  | 233,783,358 |
Europe, the Middle East and Africa |  |  | 89,010,064 |  |  |  | 70,213,432 |
Japan |  |  | 71,920,856 |  |  |  | 63,299,176 |
Others |  |  | 33,366,700 |  |  |  | 8,682,297 |
|  | $ | 1,574,745,881 |  |  | $ | 1,314,793,013 |

- 43 -

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

|  | Years Ended December 31
Platform |  | 2021 |  | 2020
Smartphone |  | $ | 689,533,461 |  |  | $ | 632,600,168 |
High Performance Computing |  |  | 582,854,806 |  |  |  | 432,049,509 |
Internet of Things |  |  | 132,006,238 |  |  |  | 108,814,310 |
Automotive |  |  | 66,624,542 |  |  |  | 43,735,803 |
Digital Consumer Electronics |  |  | 55,190,318 |  |  |  | 53,440,805 |
Others |  |  | 48,536,516 |  |  |  | 44,152,418 |
|  | $ | 1,574,745,881 |  |  | $ | 1,314,793,013 |

|  | Years Ended December 31
Resolution |  | 2021 |  | 2020
5-nanometer |  | $ | 261,623,571 |  |  | $ | 89,433,830 |
7-nanometer |  |  | 439,070,618 |  |  |  | 388,846,412 |
10-nanometer |  |  | 656,748 |  |  |  | 3,341,769 |
16-nanometer |  |  | 190,667,571 |  |  |  | 195,205,444 |
20-nanometer |  |  | 5,650,015 |  |  |  | 8,298,531 |
28-nanometer |  |  | 152,807,948 |  |  |  | 147,291,670 |
40/45-nanometer |  |  | 103,286,953 |  |  |  | 101,979,651 |
65-nanometer |  |  | 66,373,107 |  |  |  | 60,435,664 |
90-nanometer |  |  | 32,234,476 |  |  |  | 29,036,165 |
0.11/0.13 micron |  |  | 40,454,036 |  |  |  | 32,727,855 |
0.15/0.18 micron |  |  | 86,589,003 |  |  |  | 84,997,377 |
0.25 micron and above |  |  | 22,704,622 |  |  |  | 20,235,360 |
Wafer revenue |  | $ | 1,402,118,668 |  |  | $ | 1,161,829,728 |

| b. | Contract balances

|  | December 31, 2021 |  | December 31, 2020 |  | January 1, 2020
Contract liabilities (classified under accrued expenses and other current liabilities) |  | $ | 33,951,838 |  |  | $ | 9,365,661 |  |  | $ | 4,095,915 |

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$ 8,737,297 thousand and NT$3,843,787 thousand for the years ended December 31, 2021 and 2020, respectively.

- 44 -

| c. | Temporary receipts from customers

|  |  |  | December 31, 2021
Current portion (classified under accrued expenses and other current liabilities) |  |  |  | $ | 30,612,702 |
Noncurrent portion (classified under other noncurrent liabilities) |  |  |  |  | 155,381,485 |
|  |  |  | $ | 185,994,187 |

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 will be determined by mutual consent.

| d. | Refund liabilities

Estimated sales returns and other allowances is made and adjusted based on historical experience and the consideration of varying contractual terms. As of December 31, 2021 and 2020, the aforementioned refund liabilities amounted to NT$39,493,180 thousand and NT$30,995,223 thousand (classified under accrued expenses and other current liabilities), respectively.

20. | INTEREST INCOME

|  | Years Ended December 31
|  | 2021 |  | 2020
Interest income |  |  |  |
Bank deposits |  | $ | 927,754 |  |  | $ | 951,877 |

21. | FINANCE COSTS

|  | Years Ended December 31
|  | 2021 |  | 2020
Interest expense |  |  |  |
Corporate bonds |  | $ | 2,368,729 |  |  | $ | 1,082,311 |
Lease liabilities |  |  | 156,117 |  |  |  | 168,854 |
Bank loans |  |  | 9,854 |  |  |  | 500,080 |
Others |  |  | 21 |  |  |  | 15,052 |
|  | $ | 2,534,721 |  |  | $ | 1,766,297 |

22. | OTHER GAINS AND LOSSES, NET

|  | Years Ended December 31
|  | 2021 |  | 2020
Gain (loss) on financial instruments at FVTPL, net |  |  |  |
Mandatorily measured at FVTPL |  | $ | (10,091,171 | ) |  | $ | 6,430,713 |
Other gains, net |  |  | 257,813 |  |  |  | 184,449 |
|  | $ | (9,833,358 | ) |  | $ | 6,615,162 |

- 45 -

23. | INCOME TAX

| a. | Income tax expense recognized in profit or loss

Income tax expense consisted of the following:

|  | Years Ended December 31
|  | 2021 |  | 2020
Current income tax expense |  |  |  |
Current tax expense recognized in the current year |  | $ | 86,705,704 |  |  | $ | 70,657,349 |
Income tax adjustments on prior years |  |  | 160,565 |  |  |  | 70,617 |
Other income tax adjustments |  |  | 151,344 |  |  |  | 149,768 |
|  |  | 87,017,613 |  |  |  | 70,877,734 |
Deferred income tax benefit |  |  |  |  |  |  |  |
The origination and reversal of temporary differences |  |  | (17,433,690 | ) |  |  | (6,144,179 | )
Investment tax credits |  |  | (5,621,745 | ) |  |  | - |
|  |  | (23,055,435 | ) |  |  | (6,144,179 | )
Income tax expense recognized in profit or loss |  | $ | 63,962,178 |  |  | $ | 64,733,555 |

A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:

|  | Years Ended December 31
|  | 2021 |  | 2020
Income before tax |  | $ | 660,502,191 |  |  | $ | 582,618,942 |
Income tax expense at the statutory rate |  | $ | 132,100,438 |  |  | $ | 116,523,788 |
Tax effect of adjusting items: |  |  |  |  |  |  |  |
Nondeductible items in determining taxable income |  |  | 11,605,518 |  |  |  | 1,248,820 |
Tax-exempt income |  |  | (89,852,940 | ) |  |  | (65,988,096 | )
Additional income tax under the Alternative Minimum Tax Act |  |  | 32,852,688 |  |  |  | 18,872,837 |
The origination and reversal of temporary differences |  |  | (17,433,690 | ) |  |  | (6,144,179 | )
Income tax credits |  |  | (5,621,745 | ) |  |  | - |
|  |  | 63,650,269 |  |  |  | 64,513,170 |
Income tax adjustments on prior years |  |  | 160,565 |  |  |  | 70,617 |
Other income tax adjustments |  |  | 151,344 |  |  |  | 149,768 |
Income tax expense recognized in profit or loss |  | $ | 63,962,178 |  |  | $ | 64,733,555 |

For the years ended December 31, 2021 and 2020, the Company applied a tax rate of 20% subject to the R.O.C. Income Tax Law.

- 46 -

| b. | Income tax expense recognized in other comprehensive income

|  | Years Ended December 31
|  | 2021 |  | 2020
Deferred income tax benefit (expense) |  |  |  |
Related to remeasurement of defined benefit obligation |  | $ | (29,049 | ) |  | $ | 422,010 |
Related to unrealized gain/loss on investments in equity instruments at FVTOCI |  |  | (56,220 | ) |  |  | 653 |
|  | $ | (85,269 | ) |  | $ | 422,663 |

| c. | Deferred income tax balance

The analysis of deferred income tax assets and liabilities was as follows:

|  | December 31, 2021 |  | December 31, 2020
Deferred income tax assets |  |  |  |
Temporary differences |  |  |  |
Depreciation |  | $ | 34,146,437 |  |  | $ | 18,723,852 |
Refund liability |  |  | 5,903,698 |  |  |  | 3,719,427 |
Investment tax credits |  |  | 5,621,745 |  |  |  | - |
Net defined benefit liability |  |  | 1,237,086 |  |  |  | 1,341,960 |
Unrealized loss on inventories |  |  | 861,924 |  |  |  | 826,666 |
Investments in equity instruments at FVTOCI |  |  | 10,100 |  |  |  | 66,320 |
|  | $ | 47,780,990 |  |  | $ | 24,678,225 |
Deferred income tax liabilities |  |  |  |  |  |  |  |
Temporary differences |  |  |  |  |  |  |  |
Unrealized exchange gains |  | $ | (706,311 | ) |  | $ | (866,452 | )
Others |  |  | (1,142,655 | ) |  |  | (849,915 | )
|  | $ | (1,848,966 | ) |  | $ | (1,716,367 | )

|  | Year Ended December 31, 2021
|  |  |  | Recognized in |  |
|  | Balance, |  |  |  | Other |  |
|  | Beginning of |  |  |  | Comprehensive |  | Balance,
|  | Year |  | Profit or Loss |  | Income |  | End of Year
Deferred income tax assets |  |  |  |  |  |  |  |
Temporary differences |  |  |  |  |  |  |  |
Depreciation |  | $ | 18,723,852 |  |  | $ | 15,422,585 |  |  | $ | - |  |  | $ | 34,146,437 |
Refund liability |  |  | 3,719,427 |  |  |  | 2,184,271 |  |  |  | - |  |  |  | 5,903,698 |
Investment tax credits |  |  | - |  |  |  | 5,621,745 |  |  |  | - |  |  |  | 5,621,745 |
Net defined benefit liability |  |  | 1,341,960 |  |  |  | (75,825 | ) |  |  | (29,049 | ) |  |  | 1,237,086 |
Unrealized loss on inventories |  |  | 826,666 |  |  |  | 35,258 |  |  |  | - |  |  |  | 861,924 |
Investments in equity instruments at FVTOCI |  |  | 66,320 |  |  |  | - |  |  |  | (56,220 | ) |  |  | 10,100 |
|  | $ | 24,678,225 |  |  | $ | 23,188,034 |  |  | $ | (85,269 | ) |  | $ | 47,780,990 |

(Continued)

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|  | Year Ended December 31, 2021
|  |  |  | Recognized in |  |
|  | Balance, |  |  |  | Other |  |
|  | Beginning of |  |  |  | Comprehensive |  | Balance,
|  | Year |  | Profit or Loss |  | Income |  | End of Year
Deferred income tax liabilities |  |  |  |  |  |  |  |
Temporary differences |  |  |  |  |  |  |  |
Unrealized exchange gains |  | $ | (866,452 | ) |  | $ | 160,141 |  |  | $ | - |  |  | $ | (706,311 | )
Others |  |  | (849,915 | ) |  |  | (292,740 | ) |  |  | - |  |  |  | (1,142,655 | )
|  | $ | (1,716,367 | ) |  | $ | (132,599 | ) |  | $ | - |  |  | $ | (1,848,966 | )

(Concluded)

|  | Year Ended December 31, 2020
|  |  |  | Recognized in |  |
|  | Balance, |  |  |  | Other |  |
|  | Beginning of |  |  |  | Comprehensive |  | Balance,
|  | Year |  | Profit or Loss |  | Income |  | End of Year
Deferred income tax assets |  |  |  |  |  |  |  |
Temporary differences |  |  |  |  |  |  |  |
Depreciation |  | $ | 12,927,764 |  |  | $ | 5,796,088 |  |  | $ | - |  |  | $ | 18,723,852 |
Refund liability |  |  | 2,120,873 |  |  |  | 1,598,554 |  |  |  | - |  |  |  | 3,719,427 |
Net defined benefit liability |  |  | 1,016,248 |  |  |  | (96,298 | ) |  |  | 422,010 |  |  |  | 1,341,960 |
Unrealized loss on inventories |  |  | 437,327 |  |  |  | 389,339 |  |  |  | - |  |  |  | 826,666 |
Investments in equity instruments at FVTOCI |  |  | 65,667 |  |  |  | - |  |  |  | 653 |  |  |  | 66,320 |
Others |  |  | 160,743 |  |  |  | (160,743 | ) |  |  | - |  |  |  | - |
|  | $ | 16,728,622 |  |  | $ | 7,526,940 |  |  | $ | 422,663 |  |  | $ | 24,678,225 |
Deferred income tax liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Temporary differences |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized exchange gains |  | $ | (333,606 | ) |  | $ | (532,846 | ) |  | $ | - |  |  | $ | (866,452 | )
Others |  |  | - |  |  |  | (849,915 | ) |  |  | - |  |  |  | (849,915 | )
|  | $ | (333,606 | ) |  | $ | (1,382,761 | ) |  | $ | - |  |  | $ | (1,716,367 | )

| d. | The deductible temporary differences for which no deferred income tax assets have been recognized

As of December 31, 2021 and 2020, the aggregate deductible temporary differences for which no deferred income tax assets have been recognized amounted to NT$66,431,255 thousand and NT$55,521,034 thousand, respectively.

| e. | Unused tax-exemption information

As of December 31, 2021, the profits generated from the following project of the Company are exempt from income tax for a five-year period:

|  | Tax-exemption Period
Construction and expansion of 2009 |  | 2018 to 2022

- 48 -

| f. | The information of unrecognized deferred income tax liabilities associated with investments

As of December 31, 2021 and 2020, the aggregate taxable temporary differences associated with investments in subsidiaries not recognized as deferred income tax liabilities amounted to NT$177,552,831 thousand and NT$152,827,360 thousand, respectively.

| g. | Income tax examination

The tax authorities have examined income tax returns of the Company through 2019. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.

24. | EARNINGS PER SHARE

|  | Years Ended December 31
|  | 2021 |  | 2020
Basic EPS |  | $ | 23.01 |  |  | $ | 19.97 |
Diluted EPS |  | $ | 23.01 |  |  | $ | 19.97 |

EPS is computed as follows:

|  | Amounts (Numerator) |  | Number of Shares (Denominator) (In Thousands) |  | EPS (NT$)
Year Ended December 31, 2021 |  |  |  |  |  |
Basic/Diluted EPS |  |  |  |  |  |
Net income available to common shareholders |  | $ | 596,540,013 |  |  |  | 25,930,380 |  |  | $ | 23.01 |
Year Ended December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Basic/Diluted EPS |  |  |  |  |  |  |  |  |  |  |  |
Net income available to common shareholders |  | $ | 517,885,387 |  |  |  | 25,930,380 |  |  | $ | 19.97 |

25. | SHARE-BASED PAYMENT ARRANGEMENTS

| a. | Employee restricted stock awards

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

Vesting conditions of the aforementioned arrangement are as follow:

| 1) | The RSAs granted to a key management personnel can only be vested if

| ● | the key management personnel remains employed by the Company on the last date of each vesting period;

- 49 -

| ● | during the vesting period, the key management personnel may not breach any agreement with the Company or violate the Company's work rules; and

| ● | certain key management personnel performance metrics and the Company’s business performance metrics are met.

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

| 3) | 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 Company’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 Company’s Environmental, Social, and Governance (”ESG”) achievements. The number of shares so calculated should be rounded down to the nearest integral.

The Company'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

| 1) | 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.

| 2) | 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 the Company.

| 3) | Granted RSAs shall be deposited in a trust/custody account.

On February 15, 2022, the Company’s Board of Directors approved the issuance of RSAs for year 2022 of no more than 2,960 thousand common shares. The grants will be made free of charge. The actual number of shares to be issued will be resolved by the Board of Directors after the RSAs is approved at the shareholders' meeting and by the competent authority.

| b. | Cash-settled share-based payment arrangements

In February 2022, the Company executed a compensation plan to grant no more than 236 thousand units of employee cash-settled share-based payment arrangement without consideration. One unit of the right represents a right to the market value of one the Company’s common share when vested. The vesting conditions and the ratio of units to be vested for key management personnel of the plan are the same as the aforementioned RSAs for year 2021.

- 50 -

2 6. | ADDITIONAL INFORMATION OF EXPENSES BY NATURE

|  | Years Ended December 31
|  | 2021 |  | 2020
a.Depreciation of property, plant and equipment and right-of-use assets |  |  |  |
Recognized in cost of revenue |  | $ | 375,608,062 |  |  | $ | 288,762,450 |
Recognized in operating expenses |  |  | 27,176,646 |  |  |  | 24,585,627 |
Recognized in other operating income and expenses |  |  | 146,549 |  |  |  | 31,609 |
|  | $ | 402,931,257 |  |  | $ | 313,379,686 |
b.Amortization of intangible assets |  |  |  |  |  |  |  |
Recognized in cost of revenue |  | $ | 5,510,463 |  |  | $ | 4,732,478 |
Recognized in operating expenses |  |  | 2,590,267 |  |  |  | 2,315,216 |
|  | $ | 8,100,730 |  |  | $ | 7,047,694 |
c.Employee benefits expenses |  |  |  |  |  |  |  |
Post-employment benefits |  |  |  |  |  |  |  |
Defined contribution plans |  | $ | 3,028,282 |  |  | $ | 2,309,527 |
Defined benefit plans |  |  | 192,485 |  |  |  | 204,915 |
|  |  | 3,220,767 |  |  |  | 2,514,442 |
Other employee benefits |  |  | 143,894,842 |  |  |  | 123,287,720 |
|  | $ | 147,115,609 |  |  | $ | 125,802,162 |
Employee benefits expense summarized by function |  |  |  |  |  |  |  |
Recognized in cost of revenue |  | $ | 90,226,056 |  |  | $ | 75,864,049 |
Recognized in operating expenses |  |  | 56,889,553 |  |  |  | 49,938,113 |
|  | $ | 147,115,609 |  |  | $ | 125,802,162 |

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

The Company 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 parent company only 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:

|  | Years Ended December 31
|  | 2021 |  | 2020
Profit sharing bonus to employees |  | $ | 35,601,449 |  |  | $ | 34,753,184 |

- 51 -

The Company’s profit sharing bonus to employees and compensation to directors for 2021, 2020 and 2019 had been approved by the Board of Directors of the Company, as illustrated below:

|  | Years Ended December 31
|  | 2021 |  | 2020 |  | 2019
Resolution Date of the Company’s Board of |  | February 15, |  | February 9, |  | February 11,
Directors in its meeting |  | 2022 |  | 2021 |  | 2020
Profit sharing bonus to employees |  | $ | 35,601,449 |  |  | $ | 34,753,184 |  |  | $ | 23,165,745 |
Compensation to directors |  | $ | 487,537 |  |  | $ | 509,753 |  |  | $ | 360,404 |

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2021, 2020 and 2019, respectively.

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

27.CASH FLOW INFORMATION

| a. | Non-cash transactions

|  | Years Ended December 31
|  | 2021 |  | 2020
Additions of property, plant and equipment |  | $ | 783,332,395 |  |  | $ | 512,900,891 |
Exchange of assets |  |  | (3,256,517 | ) |  |  | (1,148 | )
Changes in payables to contractors and equipment suppliers |  |  | 13,292,746 |  |  |  | (18,609,540 | )
Transferred to initial carrying amount of hedged items |  |  | (41,416 | ) |  |  | 20,265 |
Payments for acquisition of property, plant and equipment |  | $ | 793,327,208 |  |  | $ | 494,310,468 |
Additions of intangible assets |  | $ | 9,278,760 |  |  | $ | 12,510,446 |
Changes in accounts payable |  |  | - |  |  |  | 191,429 |
Changes in accrued expenses and other current liabilities |  |  | (280,676 | ) |  |  | (3,218,966 | )
Payments for acquisition of intangible assets |  | $ | 8,998,084 |  |  | $ | 9,482,909 |

| b. | Reconciliation of liabilities arising from financing activities

|  |  |  |  |  | Non-cash changes |  |
|  | Balance as of January 1, 2021 |  | Financing Cash Flow |  | Foreign Exchange Movement |  | Leases Modifications |  | Other Changes (Note) |  | Balance as of December 31, 2021
Short-term loans |  | $ | 175,659,726 |  |  | $ | (50,538,933 | ) |  | $ | (9,670,786 | ) |  | $ | - |  |  | $ | (528,674 | ) |  | $ | 114,921,333 |
Bonds payable |  |  | 173,050,745 |  |  |  | 139,571,843 |  |  |  | (466,391 | ) |  |  | - |  |  |  | 27,212 |  |  |  | 312,183,409 |
Lease liabilities |  |  | 19,859,208 |  |  |  | (1,622,246 | ) |  |  | - |  |  |  | 1,940,397 |  |  |  | 156,117 |  |  |  | 20,333,476 |
Total |  | $ | 368,569,679 |  |  | $ | 87,410,664 |  |  | $ | (10,137,177 | ) |  | $ | 1,940,397 |  |  | $ | (345,345 | ) |  | $ | 447,438,218 |

|  |  |  |  |  | Non-cash changes |  |
|  | Balance as of January 1, 2020 |  | Financing Cash Flow |  | Foreign Exchange Movement |  | Leases Modifications |  | Other Changes (Note) |  | Balance as of December 31, 2020
Short-term loans |  | $ | 148,510,290 |  |  | $ | 31,944,333 |  |  | $ | (4,794,897 | ) |  | $ | - |  |  | $ | - |  |  | $ | 175,659,726 |
Bonds payable |  |  | 56,900,000 |  |  |  | 117,129,182 |  |  |  | (986,845 | ) |  |  | - |  |  |  | 8,408 |  |  |  | 173,050,745 |
Lease liabilities |  |  | 15,143,819 |  |  |  | (2,324,499 | ) |  |  | 17,489 |  |  |  | 6,853,545 |  |  |  | 168,854 |  |  |  | 19,859,208 |
Total |  | $ | 220,554,109 |  |  | $ | 146,749,016 |  |  | $ | (5,764,253 | ) |  | $ | 6,853,545 |  |  | $ | 177,262 |  |  | $ | 368,569,679 |

| N ote: | Other changes include discounts on short-term loans, amortization of bonds payable and financial cost of lease liabilities.

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28. | CAPITAL MANAGEMENT

The Company requires significant amounts of capital to build and expand its production facilities and acquire additional equipment. In consideration of the industry dynamics, the Company manages its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, capital asset purchases, research and development activities, dividend payments, debt service requirements and other business requirements associated with its existing operations over the next 12 months.

2 9. | FINANCIAL INSTRUMENTS

| a. | Categories of financial instruments

|  | December 31, 2021 |  | December 31, 2020
Financial assets |  |  |  |
FVTPL (Note 1) |  | $ | 145,280 |  |  | $ | 2,125,825 |
FVTOCI (Note 2) |  |  | 5,198,309 |  |  |  | 3,790,131 |
Amortized cost (Note 3) |  |  | 586,299,180 |  |  |  | 440,992,185 |
|  | $ | 591,642,769 |  |  | $ | 446,908,141 |
Financial liabilities |  |  |  |  |  |  |  |
FVTPL (Note 4) |  | $ | 636,472 |  |  | $ | 93,153 |
Amortized cost (Note 5) |  |  | 1,026,450,717 |  |  |  | 734,363,642 |
|  | $ | 1,027,087,189 |  |  | $ | 734,456,795 |

Note 1: Financial assets mandatorily measured at FVTPL.

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

Note 3: Including cash and cash equivalents, 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, guarantee deposits and other noncurrent liabilities.

| b. | Financial risk management objectives

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

- 53 -

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.

| c. | 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 the Company’s sales is 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 dollars, would have an adverse impact on the revenue and operating profit as expressed in NT dollar. 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 years ended December 31, 2021 and 2020, a hypothetical adverse foreign currency exchange rate change of 10% would have decreased its net income by NT$1,196,014 thousand and NT$832,231 thousand, respectively, after taking into account hedges and offsetting positions.

Interest rate risk

The Company is exposed to interest rate risks primarily related to its bank deposits and bank loans. Changes in interest rates affect the interest earned on the Company’s bank deposits, as well as the interest paid on its bank loans. Because all of the Company’s bonds issued are fixed-rate and measured at amortized cost, changes in interest rates would not affect the future cash flows and 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 years ended December 31, 2021 and 2020, the other comprehensive income would have decreased by NT$87,841 thousand and NT$73,464 thousand, respectively.

| d. | 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.

- 54 -

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 December 31, 2021 and 2020, the Company’s ten largest customers accounted for 67% of accounts receivable in both years. 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.

| e. | Liquidity risk management

The objective of liquidity risk management is to ensure the Company has sufficient liquidity to fund its business operations over the next 12 months. The Company manages its liquidity risk by maintaining adequate cash and cash equivalents 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
December 31, 2021 |  |  |  |  |  |  |  |  |  |
Non-derivative financial liabilities |  |  |  |  |  |  |  |  |  |
Short-term loans |  | $ | 114,767,034 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 114,767,034 |
Accounts payable (including related parties) |  |  | 48,892,095 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 48,892,095 |
Payables to contractors and equipment suppliers |  |  | 136,212,285 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 136,212,285 |
Accrued expenses and other current liabilities |  |  | 105,867,008 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 105,867,008 |
Bonds payable |  |  | 7,705,092 |  |  |  | 31,050,325 |  |  |  | 87,631,487 |  |  |  | 248,960,671 |  |  |  | 375,347,575 |
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note) |  |  | 1,740,990 |  |  |  | 3,129,411 |  |  |  | 2,868,048 |  |  |  | 13,739,223 |  |  |  | 21,477,672 |
Others |  |  | - |  |  |  | 164,991,929 |  |  |  | - |  |  |  | - |  |  |  | 164,991,929 |
|  |  | 415,184,504 |  |  |  | 199,171,665 |  |  |  | 90,499,535 |  |  |  | 262,699,894 |  |  |  | 967,555,598 |
Derivative financial instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Outflows |  |  | 132,106,866 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 132,106,866 |
Inflows |  |  | (132,001,910 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (132,001,910 | )
|  |  | 104,956 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 104,956 |
|  | $ | 415,289,460 |  |  | $ | 199,171,665 |  |  | $ | 90,499,535 |  |  | $ | 262,699,894 |  |  | $ | 967,660,554 |

(Continued)

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|  | Less Than 1 Year |  | 1-3 Years |  | 3-5 Years |  | More Than 5 Years |  | Total
December 31, 2020 |  |  |  |  |  |  |  |  |  |
Non-derivative financial liabilities |  |  |  |  |  |  |  |  |  |
Short-term loans |  | $ | 175,658,226 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 175,658,226 |
Accounts payable (including related parties) |  |  | 43,256,260 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 43,256,260 |
Payables to contractors and equipment suppliers |  |  | 156,342,457 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 156,342,457 |
Accrued expenses and other current liabilities |  |  | 56,090,322 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 56,090,322 |
Bonds payable |  |  | 4,423,599 |  |  |  | 25,822,844 |  |  |  | 30,134,920 |  |  |  | 148,299,359 |  |  |  | 208,680,722 |
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note) |  |  | 1,539,173 |  |  |  | 2,864,146 |  |  |  | 2,763,636 |  |  |  | 13,977,371 |  |  |  | 21,144,326 |
|  |  | 437,310,037 |  |  |  | 28,686,990 |  |  |  | 32,898,556 |  |  |  | 162,276,730 |  |  |  | 661,172,313 |
Derivative financial instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Outflows |  |  | 144,697,981 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 144,697,981 |
Inflows |  |  | (148,236,932 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (148,236,932 | )
|  |  | (3,538,951 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (3,538,951 | )
|  | $ | 433,771,086 |  |  | $ | 28,686,990 |  |  | $ | 32,898,556 |  |  | $ | 162,276,730 |  |  | $ | 657,633,362 |

(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
December 31, 2021 |  |  |  |  |  |  |  |  |  |
Lease liabilities |  | $ | 6,665,672 |  |  | $ | 4,994,134 |  |  | $ | 1,959,928 |  |  | $ | 119,489 |  |  | $ | 13,739,223 |

December 31, 2020 |  |  |  |  |  |  |  |  |  |
Lease liabilities |  | $ | 6,498,231 |  |  | $ | 5,082,504 |  |  | $ | 2,242,373 |  |  | $ | 154,263 |  |  | $ | 13,977,371 |

| f. | Fair value of financial instruments

| 1) | Fair value measurements recognized in the parent company only 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).

- 56 -

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

Fair value hierarchy

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

|  | December 31, 2021
|  | Level 2 |  | Level 3 |  | Total
Financial assets at FVTPL |  |  |  |  |  |
Mandatorily measured at FVTPL |  |  |  |  |  |
Forward exchange contracts |  | $ | 145,280 |  |  | $ | - |  |  | $ | 145,280 |
Financial assets at FVTOCI |  |  |  |  |  |  |  |  |  |  |  |
Investments in equity instruments |  |  |  |  |  |  |  |  |  |  |  |
Non-publicly traded equity investments |  | $ | - |  |  | $ | 998,400 |  |  | $ | 998,400 |
Notes and accounts receivable, net |  |  | 4,199,909 |  |  |  | - |  |  |  | 4,199,909 |
|  | $ | 4,199,909 |  |  | $ | 998,400 |  |  | $ | 5,198,309 |
Financial liabilities at FVTPL |  |  |  |  |  |  |  |  |  |  |  |
Held for trading |  |  |  |  |  |  |  |  |  |  |  |
Forward exchange contracts |  | $ | 636,472 |  |  | $ | - |  |  | $ | 636,472 |

|  | December 31, 2020
|  | Level 2 |  | Level 3 |  | Total
Financial assets at FVTPL |  |  |  |  |  |
Mandatorily measured at FVTPL |  |  |  |  |  |
Forward exchange contracts |  | $ | 2,125,825 |  |  | $ | - |  |  | $ | 2,125,825 |
Financial assets at FVTOCI |  |  |  |  |  |  |  |  |  |  |  |
Investments in equity instruments |  |  |  |  |  |  |  |  |  |  |  |
Non-publicly traded equity investments |  | $ | - |  |  | $ | 834,830 |  |  | $ | 834,830 |
Notes and accounts receivable, net |  |  | 2,955,301 |  |  |  | - |  |  |  | 2,955,301 |
|  | $ | 2,955,301 |  |  | $ | 834,830 |  |  | $ | 3,790,131 |
Financial liabilities at FVTPL |  |  |  |  |  |  |  |  |  |  |  |
Held for trading |  |  |  |  |  |  |  |  |  |  |  |
Forward exchange contracts |  | $ | 93,153 |  |  | $ | - |  |  | $ | 93,153 |

- 57 -

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 years ended December 31, 2021 and 2020 were as follows:

|  | Years Ended December 31
|  | 2021 |  | 2020
Balance, beginning of year |  | $ | 834,830 |  |  | $ | 877,110 |
Recognized in other comprehensive income |  |  | 170,127 |  |  |  | (41,995 | )
Disposals and proceeds from return of capital of investments |  |  | (6,557 | ) |  |  | (285 | )
Balance, end of year |  | $ | 998,400 |  |  | $ | 834,830 |

Valuation techniques and assumptions used in Level 2 fair value measurement

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

● Forward exchange contracts are measured using forward exchange 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 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.

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

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

Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments in the parent company only 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:

|  | December 31, 2021
|  | Carrying |  | Level 2
|  | Amount |  | Fair Value
Financial liabilities |  |  |  |
Financial liabilities at amortized costs |  |  |  |
Bonds payable |  | $ | 312,183,409 |  |  | $ | 310,632,379 |

(Continued)

- 58 -

|  | December 31, 2020
|  | Carrying |  | Level 2
|  | Amount |  | Fair Value
Financial liabilities |  |  |  |
Financial liabilities at amortized costs |  |  |  |
Bonds payable |  | $ | 173,050,745 |  |  | $ | 173,972,033 |

(Concluded)

Valuation techniques and assumptions used in Level 2 fair value measurement

The fair value of the Company’s bonds payable is determined by quoted market prices provided by third party pricing services.

30. | RELATED PARTY TRANSACTIONS

The significant transactions between the Company and its related parties, other than those disclosed in other notes, are summarized as follows:

| a. | Related party name and categories

Related Party Name |  | Related Party Categories
TSMC Global |  | Subsidiaries
TSMC China |  | Subsidiaries
TSMC Nanjing |  | Subsidiaries
TSMC Arizona |  | Subsidiaries
VisEra Tech |  | Subsidiaries
TSMC North America |  | Subsidiaries
TSMC Europe |  | Subsidiaries
TSMC JDC |  | Subsidiaries
TSMC 3DIC |  | Subsidiaries
JASM |  | Subsidiaries
TSMC Japan |  | Subsidiaries
TSMC Korea |  | Subsidiaries
TSMC Design Technology Canada Inc. (TSMC Canada) |  | Indirect Subsidiaries
TSMC Technology, Inc. (TSMC Technology) |  | Indirect Subsidiaries
WaferTech, LLC (WaferTech) |  | Indirect Subsidiaries
GUC |  | Associates
VIS |  | Associates
SSMC |  | Associates
Xintec |  | Associates
TSMC Education and Culture Foundation |  | Other related parties
TSMC Charity Foundation |  | Other related parties

- 59 -

| b. | Net revenue

|  |  |  | Years Ended December 31
|  |  |  | 2021 |  | 2020
Item |  | Related Party Name/Categories |  |  |  |
Net revenue from sale of goods |  | TSMC North America |  | $ | 1,040,985,786 |  |  | $ | 824,139,751 |
|  | Associates |  |  | 5,898,780 |  |  |  | 5,656,748 |
|  | Other subsidiaries |  |  | 110,849 |  |  |  | 85,147 |
|  |  |  | $ | 1,046,995,415 |  |  | $ | 829,881,646 |
Net revenue from royalties |  | Subsidiaries |  | $ | 243 |  |  | $ | 214,352 |
|  | Associates |  |  | 223,196 |  |  |  | 195,111 |
|  |  |  | $ | 223,439 |  |  | $ | 409,463 |

| c. | Purchases

|  | Years Ended December 31
|  | 2021 |  | 2020
Related Party Categories |  |  |  |
Subsidiaries |  | $ | 56,134,681 |  |  | $ | 44,920,702 |
Associates |  |  | 7,569,787 |  |  |  | 7,605,080 |
|  | $ | 63,704,468 |  |  | $ | 52,525,782 |

| d. | Receivables from related parties

|  |  |  | December 31, 2021 |  | December 31, 2020
Item |  | Related Party Name/Categories |  |  |  |
Receivables from related |  | TSMC North America |  | $ | 137,956,681 |  |  | $ | 101,467,381 |
parties |  | Associates |  |  | 391,647 |  |  |  | 313,064 |
|  | Other subsidiaries |  |  | 4,046 |  |  |  | 729 |
|  |  |  | $ | 138,352,374 |  |  | $ | 101,781,174 |
Other receivables from related |  | TSMC North America |  | $ | 5,000,563 |  |  | $ | 1,390,902 |
parties |  | TSMC Nanjing |  |  | 59,935 |  |  |  | 203,209 |
|  | Other subsidiaries |  |  | 105,396 |  |  |  | 71,058 |
|  | Associates |  |  | 61,531 |  |  |  | 49,165 |
|  |  |  | $ | 5,227,425 |  |  | $ | 1,714,334 |

- 60 -

| e. | Payables to related parties

|  |  |  | December 31, 2021 |  | December 31, 2020
Item |  | Related Party Name/Categories |  |  |  |
Payables to related parties |  | TSMC Nanjing |  | $ | 2,761,080 |  |  | $ | 1,889,906 |
|  | TSMC China |  |  | 1,802,314 |  |  |  | 1,643,070 |
|  | Xintec |  |  | 725,261 |  |  |  | 1,358,624 |
|  | Other subsidiaries |  |  | 1,687,157 |  |  |  | 1,376,983 |
|  | Other associates |  |  | 711,861 |  |  |  | 749,040 |
|  |  |  | $ | 7,687,673 |  |  | $ | 7,017,623 |

| f. | Accrued expenses and other current liabilities

|  |  |  | December 31, 2021 |  | December 31, 2020
Item |  | Related Party Name/Categories |  |  |  |
Other payables and other |  | Subsidiaries |  | $ | 1,389,861 |  |  | $ | 318,654 |
current liabilities |  | Associates |  |  | 726,350 |  |  |  | - |
|  |  |  | $ | 2,116,211 |  |  | $ | 318,654 |
Temporary receipts |  | TSMC North America |  | $ | 20,650,062 |  |  | $ | - |

| g. | Other noncurrent liabilities

|  |  |  | December 31, 2021 |  | December 31, 2020
Item |  | Related Party Name |  |  |  |
Temporary receipts |  | TSMC North America |  | $ | 127,361,560 |  |  | $ | - |

| h. | Disposal of property, plant and equipment

|  | Proceeds
|  | Years Ended December 31
|  | 2021 |  | 2020
Related Party Name/Categories |  |  |  |
TSMC Nanjing |  | $ | 102,721 |  |  | $ | 527,134 |
Other subsidiaries |  |  | 21,103 |  |  |  | 6,115 |
|  | $ | 123,824 |  |  | $ | 533,249 |

- 61 -

|  | Gains
|  | Years Ended December 31
|  | 2021 |  | 2020
Related Party Name/Categories |  |  |  |
TSMC Nanjing |  | $ | 24,765 |  |  | $ | 31,494 |
Other subsidiaries |  |  | 38,931 |  |  |  | 49,844 |
|  | $ | 63,696 |  |  | $ | 81,338 |

|  | Deferred Gains (Losses) from Disposal of Property, Plant and Equipment
|  | December 31, 2021 |  | December 31, 2020
Related Party Name/Categories |  |  |  |
TSMC Nanjing |  | $ | 50,816 |  |  | $ | 4,221 |
Other subsidiaries |  |  | 67,783 |  |  |  | 86,186 |
|  | $ | 118,599 |  |  | $ | 90,407 |

| i. | Others

|  |  |  | Years Ended December 31
|  |  |  | 2021 |  | 2020
Item |  | Related Party Name/Categories |  |  |  |
Manufacturing expenses |  | Associates |  | $ | 5,445,819 |  |  | $ | 5,425,878 |
|  | Subsidiaries |  |  | 20,791 |  |  |  | 29,700 |
|  |  |  | $ | 5,466,610 |  |  | $ | 5,455,578 |
Research and development |  | Subsidiaries |  | $ | 3,719,115 |  |  | $ | 3,409,037 |
expenses |  | Associates |  |  | 252,054 |  |  |  | 256,496 |
|  |  |  | $ | 3,971,169 |  |  | $ | 3,665,533 |
Marketing expenses - |  | TSMC Europe |  | $ | 465,783 |  |  | $ | 735,295 |
commission |  | Other subsidiaries |  |  | 517,205 |  |  |  | 474,553 |
|  |  |  | $ | 982,988 |  |  | $ | 1,209,848 |

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.

- 62 -

The Company deferred the disposal gain or loss derived from sales of property, plant and equipment to related parties using equity method, and then recognized such gain or loss over the depreciable lives of the disposed assets.

| j. | Compensation of key management personnel

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

|  | Years Ended December 31
|  | 2021 |  | 2020
Short-term employee benefits |  | $ | 2,768,725 |  |  | $ | 2,567,833 |
Post-employment benefits |  |  | 2,458 |  |  |  | 1,951 |
|  | $ | 2,771,183 |  |  | $ | 2,569,784 |

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

31. | SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

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

| a. | Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C. Government or its designee approved by the Company can use up to 35% of the Company’s capacity provided the Company’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 December 31, 2021, the R.O.C. Government did not invoke such right.

| b. | Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in Singapore. The Company’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, the Company 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, the Company and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. The Company and NXP B.V. are required, in the aggregate, to purchase at least 70% of SSMC’s capacity, but the Company 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 December 31, 2021.

| c. | The Company 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.

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

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

- 63 -

| f. | As of December 31, 2021, the Company provided endorsement guarantees of NT$2,302,845 thousand to its subsidiary, TSMC North America, in respect of providing endorsement guarantees for office leasing contract.

| g. | As of December 31, 2021, the Company provided a NT$207,555,000 thousand endorsement guarantee for its subsidiary, TSMC Global, in respect of its issuance of US dollar-denominated senior unsecured corporate bonds.

| h. | As of December 31, 2021, the Company provided a NT$222,289,191 thousand endorsement guarantee for its subsidiary, TSMC Arizona, in respect of its issuance of US dollar-denominated senior unsecured corporate bonds and operation needs.

32. | 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) |  | Carrying Amount (In Thousands)
December 31, 2021 |  |  |  |  |  |
Financial assets |  |  |  |  |  |
Monetary items |  |  |  |  |  |
USD |  | $ | 11,386,512 |  |  |  | 27.674 |  |  | $ | 315,110,347 |
EUR |  |  | 14,420 |  |  |  | 31.460 |  |  |  | 453,666 |
JPY |  |  | 10,673,383 |  |  |  | 0.2414 |  |  |  | 2,576,555 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |
Monetary items |  |  |  |  |  |  |  |  |  |  |  |
USD |  |  | 11,851,225 |  |  |  | 27.674 |  |  |  | 327,970,810 |
EUR |  |  | 3,494,588 |  |  |  | 31.460 |  |  |  | 109,939,747 |
JPY |  |  | 109,729,158 |  |  |  | 0.2414 |  |  |  | 26,488,619 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |
Monetary items |  |  |  |  |  |  |  |  |  |  |  |
USD |  |  | 6,556,606 |  |  |  | 28.097 |  |  |  | 184,220,958 |
EUR |  |  | 10,505 |  |  |  | 34.587 |  |  |  | 363,340 |
JPY |  |  | 83,135,801 |  |  |  | 0.2729 |  |  |  | 22,687,760 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |
Monetary items |  |  |  |  |  |  |  |  |  |  |  |
USD |  |  | 6,906,646 |  |  |  | 28.097 |  |  |  | 194,056,024 |
EUR |  |  | 4,146,458 |  |  |  | 34.587 |  |  |  | 143,413,558 |
JPY |  |  | 103,973,930 |  |  |  | 0.2729 |  |  |  | 28,374,485 |

Note: Exchange rate represents the number of NT dollar for which one foreign currency could be exchanged.

- 64 -

Please refer to the parent company only statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss for the years ended December 31, 2021 and 2020, respectively. Since there were varieties of foreign currency transactions of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact.

33. | ADDITIONAL DISCLOSURES

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

| a. | Financings provided: See Table 1 attached;

| b. | Endorsement/guarantee provided: See Table 2 attached;

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

| d. | 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;

| e. | 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;

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

| g. | 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;

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

| i. | Information about the derivative financial instruments transaction: See Notes 7 and 8;

| j. | Names, locations, and related information of investees over which the Company exercises significant influence (excluding information on investment in mainland China): See Table 8 attached;

| k. | Information on investment in mainland China

| 1) | The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: See Table 9 attached.

| 2) | Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland China on financial reports: See Note 30.

| l. | Information of major shareholder

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 10 attached.

3 4. | OPERATING SEGMENTS INFORMATION

The Company has provided the operating segments disclosure in the consolidated financial statements.

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TABLE 1

Taiwan Semiconductor Manufacturing Company Limited and Investees

FINANCINGS PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2021

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

No. | Financing Company | Counterparty | Financial Statement Account | Related Party | Maximum Balance for the Period (Foreign Currencies in Thousands) (Note 3) | Ending Balance (Foreign Currencies in Thousands) (Note 3) | Amount Actually Drawn (Foreign Currencies in Thousands) | Interest Rate | Nature for Financing | Transaction Amounts | Reason for Financing | Allowance for Bad Debt | Collateral | Financing Limits for Each Borrowing Company (Notes 1 and 2) | Financing Company’s Total Financing Amount Limits (Notes 1 and 2)
Item | Value
1 | TSMC China | TSMC Nanjing | Other receivables from related parties | Yes | $ (RMB (US$ | 55,669,760 10,600,000 350,000 | )& ) | $ (RMB (US$ | 33,979,260 5,600,000 350,000 | )& ) | $ (RMB | 24,293,360 5,600,000 | ) |  | 1.30%-1.50% |  | The need for short-term and long-term financing | $ | - |  | Operating capital | $ | - |  | - | $ | - |  | $ | 73,690,307 |  | $ | 73,690,307 |
2 | TSMC Global | TSMC | Other receivables from related parties | Yes | (US$ | 102,393,800 3,700,000 | ) |  | - |  |  | - |  |  | 0.00% |  | The need for short-term financing |  | - |  | Operating capital |  | - |  | - |  | - |  |  | 749,278,812 |  |  | 749,278,812 |

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 aggregate amount available for lending to TSMC from TSMC Global shall not exceed two times (200%) of the net worth of TSMC Global.

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

- 66 -

TABLE 2

Taiwan Semiconductor Manufacturing Company Limited and Investees

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2021

(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 (Foreign Currencies in Thousands) | Amount of Endorsement/ Guarantee Collateralized by Properties | Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements | Maximum Endorsement/ Guarantee Amount Allowable (Notes 1 and 2) | Guarantee Provided by Parent Company | Guarantee Provided by A Subsidiary | Guarantee Provided to Subsidiaries in Mainland China
Name | Nature of Relationship
0 | TSMC | TSMC North America | Subsidiary | $ | 542,071,638 |  | $ (US$ | 2,302,845 83,213 | ) | $ (US$ | 2,302,845 83,213 | ) | $ (US$ | 2,302,845 83,213 | ) | $ | - |  |  | 0.11% |  | $ | 542,071,638 |  | Yes | No | No
|  | TSMC Global | Subsidiary |  | 542,071,638 |  | (US$ | 207,555,000 7,500,000 | ) | (US$ | 207,555,000 7,500,000 | ) | (US$ | 179,881,000 6,500,000 | ) |  | - |  |  | 9.57% |  |  | 542,071,638 |  | Yes | No | No
|  | TSMC Arizona | Subsidiary |  | 542,071,638 |  | (US$ | 222,289,191 8,032,420 | ) | (US$ | 222,289,191 8,032,420 | ) | (US$ | 125,430,191 4,532,420 | ) |  | - |  |  | 10.25% |  |  | 542,071,638 |  | Yes | No | No
1 | TSMC Japan | TSMC JDC | The same parent company |  | 331,028 |  | (JPY | 318,648 1,320,000 | ) | (JPY | 318,648 1,320,000 | ) | (JPY | 318,648 1,320,000 | ) |  | - |  |  | 0.01% |  |  | 331,028 |  | 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.

- 67 -

TABLE 3

Taiwan Semiconductor Manufacturing Company Limited and Investees

MARKETABLE SECURITIES HELD

DECEMBER 31, 2021

(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 | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC | Non-publicly traded equity investments |  |  |  |  |  |  |
| United Industrial Gases Co., Ltd. | - | Financial assets at fair value through other comprehensive income |  | 21,230 |  | $ | 497,641 |  |  | 10 |  | $ | 497,641 |  |
| Shin-Etsu Handotai Taiwan Co., Ltd. | - | 〃 |  | 10,500 |  |  | 387,072 |  |  | 7 |  |  | 387,072 |  |
| Global Investment Holding Inc. | - | 〃 |  | 10,442 |  |  | 111,441 |  |  | 6 |  |  | 111,441 |  |
| Crimson Asia Capital | - | 〃 |  | - |  |  | 2,246 |  |  | 1 |  |  | 2,246 |  |
TSMC Partners | Non-publicly traded equity investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Shanghai Walden Venture Capital Enterprise | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 45,254 |  |  | 6 |  | US$ | 45,254 |  |
| China Walden Venture Investments II, L.P. | - | 〃 |  | - |  | US$ | 16,456 |  |  | 9 |  | US$ | 16,456 |  |
| China Walden Venture Investments III, L.P. | - | 〃 |  | - |  | US$ | 11,755 |  |  | 4 |  | US$ | 11,755 |  |
| Movella Inc. | - | 〃 |  | 6,333 |  |  | - |  |  | 10 |  |  | - |  |
| Tela Innovations | - | 〃 |  | 6,942 |  |  | - |  |  | 22 |  |  | - |  |
TSMC Global | Corporate bond |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Bank of America Corporation | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 75,265 |  |  | N/A |  | US$ | 75,265 |  |
| Morgan Stanley | - | 〃 |  | - |  | US$ | 65,115 |  |  | N/A |  | US$ | 65,115 |  |
| The Goldman Sachs Group, Inc. | - | 〃 |  | - |  | US$ | 53,756 |  |  | N/A |  | US$ | 53,756 |  |
| Citigroup Inc. | - | 〃 |  | - |  | US$ | 49,298 |  |  | N/A |  | US$ | 49,298 |  |
| JPMorgan Chase & Co. | - | 〃 |  | - |  | US$ | 45,332 |  |  | N/A |  | US$ | 45,332 |  |
| Wells Fargo & Company | - | 〃 |  | - |  | US$ | 38,439 |  |  | N/A |  | US$ | 38,439 |  |
| AbbVie Inc. | - | 〃 |  | - |  | US$ | 37,531 |  |  | N/A |  | US$ | 37,531 |  |
| Mitsubishi UFJ Financial Group, Inc. | - | 〃 |  | - |  | US$ | 31,881 |  |  | N/A |  | US$ | 31,881 |  |
| Sumitomo Mitsui Financial Group, Inc. | - | 〃 |  | - |  | US$ | 27,669 |  |  | N/A |  | US$ | 27,669 |  |
| HSBC Holdings plc | - | 〃 |  | - |  | US$ | 26,960 |  |  | N/A |  | US$ | 26,960 |  |
| Athene Global Funding | - | 〃 |  | - |  | US$ | 25,606 |  |  | N/A |  | US$ | 25,606 |  |
| Lloyds Banking Group plc | - | 〃 |  | - |  | US$ | 21,675 |  |  | N/A |  | US$ | 21,675 |  |
| BNP Paribas SA | - | 〃 |  | - |  | US$ | 21,320 |  |  | N/A |  | US$ | 21,320 |  |
| Apple Inc. | - | 〃 |  | - |  | US$ | 20,502 |  |  | N/A |  | US$ | 20,502 |  |
| Hyundai Capital America, Inc. | - | 〃 |  | - |  | US$ | 19,683 |  |  | N/A |  | US$ | 19,683 |  |
| Nordea Bank Abp | - | 〃 |  | - |  | US$ | 19,605 |  |  | N/A |  | US$ | 19,605 |  |
| Oracle Corporation | - | 〃 |  | - |  | US$ | 19,448 |  |  | N/A |  | US$ | 19,448 |  |
| Banco Santander, S.A. | - | 〃 |  | - |  | US$ | 18,461 |  |  | N/A |  | US$ | 18,461 |  |
| Volkswagen Group of America Finance, LLC | - | 〃 |  | - |  | US$ | 18,205 |  |  | N/A |  | US$ | 18,205 |  |
| AT&T Inc. | - | 〃 |  | - |  | US$ | 17,883 |  |  | N/A |  | US$ | 17,883 |  |
| Metropolitan Life Global Funding I | - | 〃 |  | - |  | US$ | 17,341 |  |  | N/A |  | US$ | 17,341 |  |
| Sumitomo Mitsui Trust Bank, Limited | - | 〃 |  | - |  | US$ | 16,182 |  |  | N/A |  | US$ | 16,182 |  |
| NatWest Markets Plc | - | 〃 |  | - |  | US$ | 16,070 |  |  | N/A |  | US$ | 16,070 |  |
| Credit Suisse AG, New York Branch | - | 〃 |  | - |  | US$ | 15,372 |  |  | N/A |  | US$ | 15,372 |  |
| The Toronto-Dominion Bank | - | 〃 |  | - |  | US$ | 14,786 |  |  | N/A |  | US$ | 14,786 |  |
| Toyota Motor Credit Corporation | - | 〃 |  | - |  | US$ | 14,567 |  |  | N/A |  | US$ | 14,567 |  |
| Deutsche Bank AG - New York Branch | - | 〃 |  | - |  | US$ | 14,423 |  |  | N/A |  | US$ | 14,423 |  |
| Mizuho Financial Group, Inc. | - | 〃 |  | - |  | US$ | 13,999 |  |  | N/A |  | US$ | 13,999 |  |

(Continued)

- 68 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | Standard Chartered PLC | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 13,484 |  |  | N/A |  | US$ | 13,484 |  |
| Principal Life Global Funding II | - | 〃 |  | - |  | US$ | 13,462 |  |  | N/A |  | US$ | 13,462 |  |
| Macquarie Group Limited | - | 〃 |  | - |  | US$ | 13,190 |  |  | N/A |  | US$ | 13,190 |  |
| Royal Bank of Canada | - | 〃 |  | - |  | US$ | 13,159 |  |  | N/A |  | US$ | 13,159 |  |
| Barclays PLC | - | 〃 |  | - |  | US$ | 13,019 |  |  | N/A |  | US$ | 13,019 |  |
| AIG Global Funding | - | 〃 |  | - |  | US$ | 12,808 |  |  | N/A |  | US$ | 12,808 |  |
| Nationwide Building Society | - | 〃 |  | - |  | US$ | 12,794 |  |  | N/A |  | US$ | 12,794 |  |
| Banque Fédérative du Crédit Mutuel Société anonyme | - | 〃 |  | - |  | US$ | 12,731 |  |  | N/A |  | US$ | 12,731 |  |
| NTT Finance Corporation | - | 〃 |  | - |  | US$ | 12,546 |  |  | N/A |  | US$ | 12,546 |  |
| Equitable Financial Life Global Funding | - | 〃 |  | - |  | US$ | 12,485 |  |  | N/A |  | US$ | 12,485 |  |
| Capital One Financial Corporation | - | 〃 |  | - |  | US$ | 12,063 |  |  | N/A |  | US$ | 12,063 |  |
| BPCE SA | - | 〃 |  | - |  | US$ | 11,849 |  |  | N/A |  | US$ | 11,849 |  |
| National Securities Clearing Corporation | - | 〃 |  | - |  | US$ | 11,771 |  |  | N/A |  | US$ | 11,771 |  |
| Amazon.com, Inc. | - | 〃 |  | - |  | US$ | 11,711 |  |  | N/A |  | US$ | 11,711 |  |
| Société Générale Société anonyme | - | 〃 |  | - |  | US$ | 11,448 |  |  | N/A |  | US$ | 11,448 |  |
| Protective Life Global Funding | - | 〃 |  | - |  | US$ | 11,256 |  |  | N/A |  | US$ | 11,256 |  |
| Intel Corporation | - | 〃 |  | - |  | US$ | 11,221 |  |  | N/A |  | US$ | 11,221 |  |
| Verizon Communications Inc. | - | 〃 |  | - |  | US$ | 10,971 |  |  | N/A |  | US$ | 10,971 |  |
| Santander UK Group Holdings plc | - | 〃 |  | - |  | US$ | 10,463 |  |  | N/A |  | US$ | 10,463 |  |
| Chevron Corporation | - | 〃 |  | - |  | US$ | 10,326 |  |  | N/A |  | US$ | 10,326 |  |
| Fédération des caisses Desjardins du Québec | - | 〃 |  | - |  | US$ | 10,055 |  |  | N/A |  | US$ | 10,055 |  |
| ING Groep N.V. | - | 〃 |  | - |  | US$ | 10,028 |  |  | N/A |  | US$ | 10,028 |  |
| U.S. Bancorp | - | 〃 |  | - |  | US$ | 9,799 |  |  | N/A |  | US$ | 9,799 |  |
| Roper Technologies, Inc. | - | 〃 |  | - |  | US$ | 9,790 |  |  | N/A |  | US$ | 9,790 |  |
| Daimler Trucks Finance North America LLC | - | 〃 |  | - |  | US$ | 9,675 |  |  | N/A |  | US$ | 9,675 |  |
| Merck & Co., Inc. | - | 〃 |  | - |  | US$ | 9,625 |  |  | N/A |  | US$ | 9,625 |  |
| Bristol-Myers Squibb Company | - | 〃 |  | - |  | US$ | 9,412 |  |  | N/A |  | US$ | 9,412 |  |
| Equinor ASA | - | 〃 |  | - |  | US$ | 9,213 |  |  | N/A |  | US$ | 9,213 |  |
| Canadian Imperial Bank of Commerce | - | 〃 |  | - |  | US$ | 9,075 |  |  | N/A |  | US$ | 9,075 |  |
| NIKE, Inc. | - | 〃 |  | - |  | US$ | 8,867 |  |  | N/A |  | US$ | 8,867 |  |
| New York Life Global Funding | - | 〃 |  | - |  | US$ | 8,801 |  |  | N/A |  | US$ | 8,801 |  |
| The Bank of Nova Scotia | - | 〃 |  | - |  | US$ | 8,543 |  |  | N/A |  | US$ | 8,543 |  |
| Danske Bank A/S | - | 〃 |  | - |  | US$ | 8,362 |  |  | N/A |  | US$ | 8,362 |  |
| KfW | - | 〃 |  | - |  | US$ | 8,258 |  |  | N/A |  | US$ | 8,258 |  |
| UnitedHealth Group Incorporated | - | 〃 |  | - |  | US$ | 8,213 |  |  | N/A |  | US$ | 8,213 |  |
| Guardian Life Global Funding | - | 〃 |  | - |  | US$ | 8,171 |  |  | N/A |  | US$ | 8,171 |  |
| AstraZeneca Finance LLC | - | 〃 |  | - |  | US$ | 8,123 |  |  | N/A |  | US$ | 8,123 |  |
| International Bank for Reconstruction and Development | - | 〃 |  | - |  | US$ | 8,107 |  |  | N/A |  | US$ | 8,107 |  |
| ASB Bank Limited | - | 〃 |  | - |  | US$ | 8,030 |  |  | N/A |  | US$ | 8,030 |  |
| Great-West Lifeco U.S. Finance 2020, Lp | - | 〃 |  | - |  | US$ | 7,944 |  |  | N/A |  | US$ | 7,944 |  |
| Inter-American Development Bank | - | 〃 |  | - |  | US$ | 7,937 |  |  | N/A |  | US$ | 7,937 |  |
| Suncorp-Metway Limited | - | 〃 |  | - |  | US$ | 7,846 |  |  | N/A |  | US$ | 7,846 |  |
| Nomura Holdings, Inc. | - | 〃 |  | - |  | US$ | 7,818 |  |  | N/A |  | US$ | 7,818 |  |
| Equifax Inc. | - | 〃 |  | - |  | US$ | 7,807 |  |  | N/A |  | US$ | 7,807 |  |
| Pacific Life Global Funding II | - | 〃 |  | - |  | US$ | 7,543 |  |  | N/A |  | US$ | 7,543 |  |
| Santander UK plc | - | 〃 |  | - |  | US$ | 7,428 |  |  | N/A |  | US$ | 7,428 |  |
| Credit Agricole SA London Branch | - | 〃 |  | - |  | US$ | 7,342 |  |  | N/A |  | US$ | 7,342 |  |
| Intuit Inc. | - | 〃 |  | - |  | US$ | 7,231 |  |  | N/A |  | US$ | 7,231 |  |

(Continued)

- 69 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | AstraZeneca PLC | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 7,128 |  |  | N/A |  | US$ | 7,128 |  |
| SMBC Aviation Capital Finance DAC | - | 〃 |  | - |  | US$ | 7,006 |  |  | N/A |  | US$ | 7,006 |  |
| Prudential Funding Corp. | - | 〃 |  | - |  | US$ | 6,971 |  |  | N/A |  | US$ | 6,971 |  |
| Cargill, Incorporated | - | 〃 |  | - |  | US$ | 6,566 |  |  | N/A |  | US$ | 6,566 |  |
| Credit Suisse Group AG | - | 〃 |  | - |  | US$ | 6,485 |  |  | N/A |  | US$ | 6,485 |  |
| Discover Bank (New Castle, Delaware) | - | 〃 |  | - |  | US$ | 6,471 |  |  | N/A |  | US$ | 6,471 |  |
| Banco Bilbao Vizcaya Argentaria, S.A. | - | 〃 |  | - |  | US$ | 6,373 |  |  | N/A |  | US$ | 6,373 |  |
| Montpelier Re Holdings Ltd. | - | 〃 |  | - |  | US$ | 6,371 |  |  | N/A |  | US$ | 6,371 |  |
| UBS Group Funding (Switzerland) AG | - | 〃 |  | - |  | US$ | 6,370 |  |  | N/A |  | US$ | 6,370 |  |
| Bank of Montreal | - | 〃 |  | - |  | US$ | 6,295 |  |  | N/A |  | US$ | 6,295 |  |
| Huntington Bancshares Incorporated | - | 〃 |  | - |  | US$ | 6,275 |  |  | N/A |  | US$ | 6,275 |  |
| Exxon Mobil Corporation | - | 〃 |  | - |  | US$ | 6,254 |  |  | N/A |  | US$ | 6,254 |  |
| ANZ New Zealand (Int'l) Limited | - | 〃 |  | - |  | US$ | 6,211 |  |  | N/A |  | US$ | 6,211 |  |
| Scentre Group Trust 1 | - | 〃 |  | - |  | US$ | 6,200 |  |  | N/A |  | US$ | 6,200 |  |
| Enel Finance International N.V. | - | 〃 |  | - |  | US$ | 6,118 |  |  | N/A |  | US$ | 6,118 |  |
| The Bank of New York Mellon Corporation | - | 〃 |  | - |  | US$ | 6,072 |  |  | N/A |  | US$ | 6,072 |  |
| Fox Corporation | - | 〃 |  | - |  | US$ | 6,052 |  |  | N/A |  | US$ | 6,052 |  |
| Macquarie Bank Limited | - | 〃 |  | - |  | US$ | 5,991 |  |  | N/A |  | US$ | 5,991 |  |
| WPP Finance 2010 | - | 〃 |  | - |  | US$ | 5,950 |  |  | N/A |  | US$ | 5,950 |  |
| Shire Acquisitions Investments Ireland Designated Activity Company | - | 〃 |  | - |  | US$ | 5,929 |  |  | N/A |  | US$ | 5,929 |  |
| UBS AG, London Branch | - | 〃 |  | - |  | US$ | 5,880 |  |  | N/A |  | US$ | 5,880 |  |
| Siemens Financieringsmaatschappij N.V. | - | 〃 |  | - |  | US$ | 5,871 |  |  | N/A |  | US$ | 5,871 |  |
| W. P. Carey Inc. | - | 〃 |  | - |  | US$ | 5,763 |  |  | N/A |  | US$ | 5,763 |  |
| Alabama Power Company | - | 〃 |  | - |  | US$ | 5,704 |  |  | N/A |  | US$ | 5,704 |  |
| Cox Communications, Inc. | - | 〃 |  | - |  | US$ | 5,649 |  |  | N/A |  | US$ | 5,649 |  |
| UBS Group AG | - | 〃 |  | - |  | US$ | 5,526 |  |  | N/A |  | US$ | 5,526 |  |
| Fiserv, Inc. | - | 〃 |  | - |  | US$ | 5,463 |  |  | N/A |  | US$ | 5,463 |  |
| CenterPoint Energy, Inc. | - | 〃 |  | - |  | US$ | 5,359 |  |  | N/A |  | US$ | 5,359 |  |
| Roche Holdings, Inc. | - | 〃 |  | - |  | US$ | 5,327 |  |  | N/A |  | US$ | 5,327 |  |
| Five Corners Funding Trust | - | 〃 |  | - |  | US$ | 5,299 |  |  | N/A |  | US$ | 5,299 |  |
| CGI Inc. | - | 〃 |  | - |  | US$ | 5,222 |  |  | N/A |  | US$ | 5,222 |  |
| Capital One, National Association | - | 〃 |  | - |  | US$ | 5,202 |  |  | N/A |  | US$ | 5,202 |  |
| Credit Suisse Group Funding (Guernsey) Limited | - | 〃 |  | - |  | US$ | 5,133 |  |  | N/A |  | US$ | 5,133 |  |
| Sprint Spectrum Co Llc | - | 〃 |  | - |  | US$ | 4,958 |  |  | N/A |  | US$ | 4,958 |  |
| HP Inc. | - | 〃 |  | - |  | US$ | 4,897 |  |  | N/A |  | US$ | 4,897 |  |
| DNB Bank ASA | - | 〃 |  | - |  | US$ | 4,836 |  |  | N/A |  | US$ | 4,836 |  |
| Northwestern Mutual Global Funding | - | 〃 |  | - |  | US$ | 4,789 |  |  | N/A |  | US$ | 4,789 |  |
| Jackson National Life Global Funding | - | 〃 |  | - |  | US$ | 4,713 |  |  | N/A |  | US$ | 4,713 |  |
| Intercontinental Exchange, Inc. | - | 〃 |  | - |  | US$ | 4,706 |  |  | N/A |  | US$ | 4,706 |  |
| Comcast Corporation | - | 〃 |  | - |  | US$ | 4,658 |  |  | N/A |  | US$ | 4,658 |  |
| American International Group, Inc. | - | 〃 |  | - |  | US$ | 4,604 |  |  | N/A |  | US$ | 4,604 |  |
| NatWest Group plc | - | 〃 |  | - |  | US$ | 4,583 |  |  | N/A |  | US$ | 4,583 |  |
| Thermo Fisher Scientific Inc. | - | 〃 |  | - |  | US$ | 4,570 |  |  | N/A |  | US$ | 4,570 |  |
| Bank of New Zealand | - | 〃 |  | - |  | US$ | 4,570 |  |  | N/A |  | US$ | 4,570 |  |
| AvalonBay Communities, Inc. | - | 〃 |  | - |  | US$ | 4,499 |  |  | N/A |  | US$ | 4,499 |  |
| Eversource Energy | - | 〃 |  | - |  | US$ | 4,477 |  |  | N/A |  | US$ | 4,477 |  |
| OGE Energy Corp. | - | 〃 |  | - |  | US$ | 4,428 |  |  | N/A |  | US$ | 4,428 |  |

(Continued)

- 70 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | Florida Power & Light Company | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 4,383 |  |  | N/A |  | US$ | 4,383 |  |
| Swedbank AB (publ) | - | 〃 |  | - |  | US$ | 4,334 |  |  | N/A |  | US$ | 4,334 |  |
| 7-Eleven, Inc. | - | 〃 |  | - |  | US$ | 4,301 |  |  | N/A |  | US$ | 4,301 |  |
| Pioneer Natural Resources Company | - | 〃 |  | - |  | US$ | 4,210 |  |  | N/A |  | US$ | 4,210 |  |
| Daimler Finance North America LLC | - | 〃 |  | - |  | US$ | 4,206 |  |  | N/A |  | US$ | 4,206 |  |
| Fidelity National Information Services, Inc. | - | 〃 |  | - |  | US$ | 4,204 |  |  | N/A |  | US$ | 4,204 |  |
| Element Fleet Management Corp. | - | 〃 |  | - |  | US$ | 4,200 |  |  | N/A |  | US$ | 4,200 |  |
| Coöperatieve Rabobank U.A. | - | 〃 |  | - |  | US$ | 4,194 |  |  | N/A |  | US$ | 4,194 |  |
| Public Storage | - | 〃 |  | - |  | US$ | 4,078 |  |  | N/A |  | US$ | 4,078 |  |
| Svenska Handelsbanken AB (publ) | - | 〃 |  | - |  | US$ | 4,074 |  |  | N/A |  | US$ | 4,074 |  |
| European Bank for Reconstruction and Development | - | 〃 |  | - |  | US$ | 4,069 |  |  | N/A |  | US$ | 4,069 |  |
| Exelon Corporation | - | 〃 |  | - |  | US$ | 4,063 |  |  | N/A |  | US$ | 4,063 |  |
| MPLX LP | - | 〃 |  | - |  | US$ | 4,040 |  |  | N/A |  | US$ | 4,040 |  |
| Ameren Corporation | - | 〃 |  | - |  | US$ | 4,028 |  |  | N/A |  | US$ | 4,028 |  |
| American Express Credit Corporation | - | 〃 |  | - |  | US$ | 4,007 |  |  | N/A |  | US$ | 4,007 |  |
| CNO Global Funding | - | 〃 |  | - |  | US$ | 4,007 |  |  | N/A |  | US$ | 4,007 |  |
| B.A.T. International Finance p.l.c. | - | 〃 |  | - |  | US$ | 4,005 |  |  | N/A |  | US$ | 4,005 |  |
| Appalachian Power Company | - | 〃 |  | - |  | US$ | 3,978 |  |  | N/A |  | US$ | 3,978 |  |
| Coca-Cola Europacific Partners PLC | - | 〃 |  | - |  | US$ | 3,975 |  |  | N/A |  | US$ | 3,975 |  |
| Dominion Energy, Inc. | - | 〃 |  | - |  | US$ | 3,899 |  |  | N/A |  | US$ | 3,899 |  |
| BorgWarner Inc. | - | 〃 |  | - |  | US$ | 3,856 |  |  | N/A |  | US$ | 3,856 |  |
| V.F. Corporation | - | 〃 |  | - |  | US$ | 3,830 |  |  | N/A |  | US$ | 3,830 |  |
| Bayer US Finance II LLC | - | 〃 |  | - |  | US$ | 3,802 |  |  | N/A |  | US$ | 3,802 |  |
| Fifth Third Bancorp | - | 〃 |  | - |  | US$ | 3,725 |  |  | N/A |  | US$ | 3,725 |  |
| Public Service Electric and Gas Company | - | 〃 |  | - |  | US$ | 3,714 |  |  | N/A |  | US$ | 3,714 |  |
| The Charles Schwab Corporation | - | 〃 |  | - |  | US$ | 3,669 |  |  | N/A |  | US$ | 3,669 |  |
| Truist Bank | - | 〃 |  | - |  | US$ | 3,655 |  |  | N/A |  | US$ | 3,655 |  |
| Monongahela Power Company | - | 〃 |  | - |  | US$ | 3,652 |  |  | N/A |  | US$ | 3,652 |  |
| Welltower Inc. | - | 〃 |  | - |  | US$ | 3,634 |  |  | N/A |  | US$ | 3,634 |  |
| Ross Stores, Inc. | - | 〃 |  | - |  | US$ | 3,608 |  |  | N/A |  | US$ | 3,608 |  |
| Diageo Capital plc | - | 〃 |  | - |  | US$ | 3,554 |  |  | N/A |  | US$ | 3,554 |  |
| F&G Global Funding | - | 〃 |  | - |  | US$ | 3,519 |  |  | N/A |  | US$ | 3,519 |  |
| Highmark Inc. | - | 〃 |  | - |  | US$ | 3,512 |  |  | N/A |  | US$ | 3,512 |  |
| Verisk Analytics, Inc. | - | 〃 |  | - |  | US$ | 3,494 |  |  | N/A |  | US$ | 3,494 |  |
| ERAC USA Finance LLC | - | 〃 |  | - |  | US$ | 3,493 |  |  | N/A |  | US$ | 3,493 |  |
| American Honda Finance Corporation | - | 〃 |  | - |  | US$ | 3,473 |  |  | N/A |  | US$ | 3,473 |  |
| Skandinaviska Enskilda Banken AB (publ) | - | 〃 |  | - |  | US$ | 3,458 |  |  | N/A |  | US$ | 3,458 |  |
| Pfizer Inc. | - | 〃 |  | - |  | US$ | 3,416 |  |  | N/A |  | US$ | 3,416 |  |
| HSBC Bank Canada | - | 〃 |  | - |  | US$ | 3,406 |  |  | N/A |  | US$ | 3,406 |  |
| USAA Capital Corp. | - | 〃 |  | - |  | US$ | 3,375 |  |  | N/A |  | US$ | 3,375 |  |
| Penske Truck Leasing Co., L.P. | - | 〃 |  | - |  | US$ | 3,364 |  |  | N/A |  | US$ | 3,364 |  |
| Xcel Energy Inc. | - | 〃 |  | - |  | US$ | 3,318 |  |  | N/A |  | US$ | 3,318 |  |
| The Western Union Company | - | 〃 |  | - |  | US$ | 3,313 |  |  | N/A |  | US$ | 3,313 |  |
| BMW US Capital, LLC | - | 〃 |  | - |  | US$ | 3,298 |  |  | N/A |  | US$ | 3,298 |  |
| Johnson & Johnson | - | 〃 |  | - |  | US$ | 3,292 |  |  | N/A |  | US$ | 3,292 |  |
| Nestlé Holdings, Inc. | - | 〃 |  | - |  | US$ | 3,291 |  |  | N/A |  | US$ | 3,291 |  |
| ONE Gas, Inc. | - | 〃 |  | - |  | US$ | 3,195 |  |  | N/A |  | US$ | 3,195 |  |
| PNC Bank, National Association | - | 〃 |  | - |  | US$ | 3,187 |  |  | N/A |  | US$ | 3,187 |  |
| Texas Instruments Incorporated | - | 〃 |  | - |  | US$ | 3,184 |  |  | N/A |  | US$ | 3,184 |  |

(Continued)

- 71 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | CNA Financial Corporation | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 3,165 |  |  | N/A |  | US$ | 3,165 |  |
| Avangrid, Inc. | - | 〃 |  | - |  | US$ | 3,136 |  |  | N/A |  | US$ | 3,136 |  |
| Oncor Electric Delivery Company LLC | - | 〃 |  | - |  | US$ | 3,111 |  |  | N/A |  | US$ | 3,111 |  |
| Baidu, Inc. | - | 〃 |  | - |  | US$ | 3,091 |  |  | N/A |  | US$ | 3,091 |  |
| Novartis Capital Corporation | - | 〃 |  | - |  | US$ | 3,052 |  |  | N/A |  | US$ | 3,052 |  |
| BOC Aviation Limited | - | 〃 |  | - |  | US$ | 3,041 |  |  | N/A |  | US$ | 3,041 |  |
| Ralph Lauren Corporation | - | 〃 |  | - |  | US$ | 3,018 |  |  | N/A |  | US$ | 3,018 |  |
| Baxalta Incorporated | - | 〃 |  | - |  | US$ | 3,017 |  |  | N/A |  | US$ | 3,017 |  |
| Phillips 66 | - | 〃 |  | - |  | US$ | 2,952 |  |  | N/A |  | US$ | 2,952 |  |
| Southern California Edison Company | - | 〃 |  | - |  | US$ | 2,938 |  |  | N/A |  | US$ | 2,938 |  |
| Chevron Phillips Chemical Company LLC | - | 〃 |  | - |  | US$ | 2,936 |  |  | N/A |  | US$ | 2,936 |  |
| Hewlett Packard Enterprise Company | - | 〃 |  | - |  | US$ | 2,936 |  |  | N/A |  | US$ | 2,936 |  |
| B.A.T Capital Corporation | - | 〃 |  | - |  | US$ | 2,936 |  |  | N/A |  | US$ | 2,936 |  |
| Ameriprise Financial, Inc. | - | 〃 |  | - |  | US$ | 2,911 |  |  | N/A |  | US$ | 2,911 |  |
| National Bank of Canada | - | 〃 |  | - |  | US$ | 2,879 |  |  | N/A |  | US$ | 2,879 |  |
| Eastern Energy Gas Holdings, LLC | - | 〃 |  | - |  | US$ | 2,843 |  |  | N/A |  | US$ | 2,843 |  |
| Ventas Realty, Limited Partnership | - | 〃 |  | - |  | US$ | 2,832 |  |  | N/A |  | US$ | 2,832 |  |
| American Express Company | - | 〃 |  | - |  | US$ | 2,809 |  |  | N/A |  | US$ | 2,809 |  |
| Air Products and Chemicals, Inc. | - | 〃 |  | - |  | US$ | 2,779 |  |  | N/A |  | US$ | 2,779 |  |
| Reliance Standard Life Global Funding II | - | 〃 |  | - |  | US$ | 2,765 |  |  | N/A |  | US$ | 2,765 |  |
| PPL Electric Utilities Corporation | - | 〃 |  | - |  | US$ | 2,753 |  |  | N/A |  | US$ | 2,753 |  |
| Baxter International Inc. | - | 〃 |  | - |  | US$ | 2,751 |  |  | N/A |  | US$ | 2,751 |  |
| CVS Health Corporation | - | 〃 |  | - |  | US$ | 2,725 |  |  | N/A |  | US$ | 2,725 |  |
| Public Service Enterprise Group Incorporated | - | 〃 |  | - |  | US$ | 2,715 |  |  | N/A |  | US$ | 2,715 |  |
| NBN Co Limited | - | 〃 |  | - |  | US$ | 2,707 |  |  | N/A |  | US$ | 2,707 |  |
| DTE Energy Company | - | 〃 |  | - |  | US$ | 2,703 |  |  | N/A |  | US$ | 2,703 |  |
| Realty Income Corporation | - | 〃 |  | - |  | US$ | 2,689 |  |  | N/A |  | US$ | 2,689 |  |
| Nuveen Finance, LLC | - | 〃 |  | - |  | US$ | 2,684 |  |  | N/A |  | US$ | 2,684 |  |
| GA Global Funding Trust | - | 〃 |  | - |  | US$ | 2,678 |  |  | N/A |  | US$ | 2,678 |  |
| Gilead Sciences, Inc. | - | 〃 |  | - |  | US$ | 2,671 |  |  | N/A |  | US$ | 2,671 |  |
| CRH America, Inc. | - | 〃 |  | - |  | US$ | 2,622 |  |  | N/A |  | US$ | 2,622 |  |
| CMS Energy Corporation | - | 〃 |  | - |  | US$ | 2,604 |  |  | N/A |  | US$ | 2,604 |  |
| Kimco Realty Corporation | - | 〃 |  | - |  | US$ | 2,596 |  |  | N/A |  | US$ | 2,596 |  |
| Pinnacle West Capital Corporation | - | 〃 |  | - |  | US$ | 2,586 |  |  | N/A |  | US$ | 2,586 |  |
| The PNC Financial Services Group, Inc. | - | 〃 |  | - |  | US$ | 2,580 |  |  | N/A |  | US$ | 2,580 |  |
| American Electric Power Company, Inc. | - | 〃 |  | - |  | US$ | 2,571 |  |  | N/A |  | US$ | 2,571 |  |
| AutoZone, Inc. | - | 〃 |  | - |  | US$ | 2,562 |  |  | N/A |  | US$ | 2,562 |  |
| Yara International ASA | - | 〃 |  | - |  | US$ | 2,553 |  |  | N/A |  | US$ | 2,553 |  |
| Magellan Midstream Partners, L.P. | - | 〃 |  | - |  | US$ | 2,548 |  |  | N/A |  | US$ | 2,548 |  |
| WEC Energy Group, Inc. | - | 〃 |  | - |  | US$ | 2,543 |  |  | N/A |  | US$ | 2,543 |  |
| Air Lease Corporation | - | 〃 |  | - |  | US$ | 2,540 |  |  | N/A |  | US$ | 2,540 |  |
| John Deere Capital Corporation | - | 〃 |  | - |  | US$ | 2,522 |  |  | N/A |  | US$ | 2,522 |  |
| RGA Global Funding | - | 〃 |  | - |  | US$ | 2,506 |  |  | N/A |  | US$ | 2,506 |  |
| Empower Finance 2020, LP | - | 〃 |  | - |  | US$ | 2,465 |  |  | N/A |  | US$ | 2,465 |  |
| BP Capital Markets America, Inc. | - | 〃 |  | - |  | US$ | 2,457 |  |  | N/A |  | US$ | 2,457 |  |
| Chevron U.S.A. Inc. | - | 〃 |  | - |  | US$ | 2,447 |  |  | N/A |  | US$ | 2,447 |  |
| Georgia Power Company | - | 〃 |  | - |  | US$ | 2,424 |  |  | N/A |  | US$ | 2,424 |  |
| Reynolds American Inc. | - | 〃 |  | - |  | US$ | 2,404 |  |  | N/A |  | US$ | 2,404 |  |
| Berkshire Hathaway Inc. | - | 〃 |  | - |  | US$ | 2,403 |  |  | N/A |  | US$ | 2,403 |  |

(Continued)

- 72 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | Ryder System, Inc. | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 2,363 |  |  | N/A |  | US$ | 2,363 |  |
| NiSource Inc. | - | 〃 |  | - |  | US$ | 2,350 |  |  | N/A |  | US$ | 2,350 |  |
| DuPont de Nemours, Inc. | - | 〃 |  | - |  | US$ | 2,324 |  |  | N/A |  | US$ | 2,324 |  |
| Union Pacific Corporation | - | 〃 |  | - |  | US$ | 2,314 |  |  | N/A |  | US$ | 2,314 |  |
| O'Reilly Automotive, Inc. | - | 〃 |  | - |  | US$ | 2,311 |  |  | N/A |  | US$ | 2,311 |  |
| Health Care Service Corporation | - | 〃 |  | - |  | US$ | 2,238 |  |  | N/A |  | US$ | 2,238 |  |
| Reckitt Benckiser Treasury Services plc | - | 〃 |  | - |  | US$ | 2,216 |  |  | N/A |  | US$ | 2,216 |  |
| ITC Holdings Corp. | - | 〃 |  | - |  | US$ | 2,209 |  |  | N/A |  | US$ | 2,209 |  |
| Georgia-Pacific LLC | - | 〃 |  | - |  | US$ | 2,205 |  |  | N/A |  | US$ | 2,205 |  |
| The East Ohio Gas Company | - | 〃 |  | - |  | US$ | 2,190 |  |  | N/A |  | US$ | 2,190 |  |
| Mead Johnson Nutrition Company | - | 〃 |  | - |  | US$ | 2,178 |  |  | N/A |  | US$ | 2,178 |  |
| Magna International Inc. | - | 〃 |  | - |  | US$ | 2,172 |  |  | N/A |  | US$ | 2,172 |  |
| Citizens Bank, National Association | - | 〃 |  | - |  | US$ | 2,133 |  |  | N/A |  | US$ | 2,133 |  |
| Amphenol Corporation | - | 〃 |  | - |  | US$ | 2,123 |  |  | N/A |  | US$ | 2,123 |  |
| Healthpeak Properties, Inc. | - | 〃 |  | - |  | US$ | 2,122 |  |  | N/A |  | US$ | 2,122 |  |
| Hormel Foods Corporation | - | 〃 |  | - |  | US$ | 2,120 |  |  | N/A |  | US$ | 2,120 |  |
| Olympus Corporation | - | 〃 |  | - |  | US$ | 2,110 |  |  | N/A |  | US$ | 2,110 |  |
| Cigna Corporation | - | 〃 |  | - |  | US$ | 2,087 |  |  | N/A |  | US$ | 2,087 |  |
| Tucson Electric Power Company | - | 〃 |  | - |  | US$ | 2,082 |  |  | N/A |  | US$ | 2,082 |  |
| Otis Worldwide Corporation | - | 〃 |  | - |  | US$ | 2,065 |  |  | N/A |  | US$ | 2,065 |  |
| General Electric Company | - | 〃 |  | - |  | US$ | 2,038 |  |  | N/A |  | US$ | 2,038 |  |
| Keurig Dr Pepper Inc. | - | 〃 |  | - |  | US$ | 2,022 |  |  | N/A |  | US$ | 2,022 |  |
| NextEra Energy Capital Holdings, Inc. | - | 〃 |  | - |  | US$ | 2,000 |  |  | N/A |  | US$ | 2,000 |  |
| Shinhan Financial Group Co., Ltd. | - | 〃 |  | - |  | US$ | 1,970 |  |  | N/A |  | US$ | 1,970 |  |
| Kinder Morgan, Inc. | - | 〃 |  | - |  | US$ | 1,961 |  |  | N/A |  | US$ | 1,961 |  |
| Mitsubishi Corporation | - | 〃 |  | - |  | US$ | 1,953 |  |  | N/A |  | US$ | 1,953 |  |
| NBK SPC Limited | - | 〃 |  | - |  | US$ | 1,947 |  |  | N/A |  | US$ | 1,947 |  |
| Automatic Data Processing, Inc. | - | 〃 |  | - |  | US$ | 1,911 |  |  | N/A |  | US$ | 1,911 |  |
| Sydney Airport Finance Company Pty Ltd | - | 〃 |  | - |  | US$ | 1,910 |  |  | N/A |  | US$ | 1,910 |  |
| AmerisourceBergen Corporation | - | 〃 |  | - |  | US$ | 1,894 |  |  | N/A |  | US$ | 1,894 |  |
| Kentucky Utilities Company | - | 〃 |  | - |  | US$ | 1,894 |  |  | N/A |  | US$ | 1,894 |  |
| Wipro IT Services LLC | - | 〃 |  | - |  | US$ | 1,862 |  |  | N/A |  | US$ | 1,862 |  |
| Evergy Kansas Central, Inc. | - | 〃 |  | - |  | US$ | 1,847 |  |  | N/A |  | US$ | 1,847 |  |
| Walmart Inc. | - | 〃 |  | - |  | US$ | 1,831 |  |  | N/A |  | US$ | 1,831 |  |
| Gulfstream Natural Gas System, L.L.C. | - | 〃 |  | - |  | US$ | 1,829 |  |  | N/A |  | US$ | 1,829 |  |
| Enbridge Inc. | - | 〃 |  | - |  | US$ | 1,823 |  |  | N/A |  | US$ | 1,823 |  |
| Caterpillar Financial Services Corporation | - | 〃 |  | - |  | US$ | 1,821 |  |  | N/A |  | US$ | 1,821 |  |
| Burlington Northern Santa Fe, LLC | - | 〃 |  | - |  | US$ | 1,814 |  |  | N/A |  | US$ | 1,814 |  |
| Tencent Holdings Limited | - | 〃 |  | - |  | US$ | 1,803 |  |  | N/A |  | US$ | 1,803 |  |
| McCormick & Company, Incorporated | - | 〃 |  | - |  | US$ | 1,769 |  |  | N/A |  | US$ | 1,769 |  |
| Infor, Inc. | - | 〃 |  | - |  | US$ | 1,762 |  |  | N/A |  | US$ | 1,762 |  |
| Tyson Foods, Inc. | - | 〃 |  | - |  | US$ | 1,754 |  |  | N/A |  | US$ | 1,754 |  |
| Quest Diagnostics Incorporated | - | 〃 |  | - |  | US$ | 1,733 |  |  | N/A |  | US$ | 1,733 |  |
| AIA Group Limited | - | 〃 |  | - |  | US$ | 1,721 |  |  | N/A |  | US$ | 1,721 |  |
| Berkshire Hathaway Energy Company | - | 〃 |  | - |  | US$ | 1,719 |  |  | N/A |  | US$ | 1,719 |  |
| eBay Inc. | - | 〃 |  | - |  | US$ | 1,700 |  |  | N/A |  | US$ | 1,700 |  |
| University of California | - | 〃 |  | - |  | US$ | 1,700 |  |  | N/A |  | US$ | 1,700 |  |
| International Business Machines Corporation | - | 〃 |  | - |  | US$ | 1,692 |  |  | N/A |  | US$ | 1,692 |  |
| Emerson Electric Co. | - | 〃 |  | - |  | US$ | 1,683 |  |  | N/A |  | US$ | 1,683 |  |

(Continued)

- 73 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | Raytheon Technologies Corporation | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 1,675 |  |  | N/A |  | US$ | 1,675 |  |
| Westpac Banking Corporation | - | 〃 |  | - |  | US$ | 1,670 |  |  | N/A |  | US$ | 1,670 |  |
| Midwest Connector Capital Company LLC | - | 〃 |  | - |  | US$ | 1,658 |  |  | N/A |  | US$ | 1,658 |  |
| Anthem, Inc. | - | 〃 |  | - |  | US$ | 1,651 |  |  | N/A |  | US$ | 1,651 |  |
| Essex Portfolio Limited Partnership | - | 〃 |  | - |  | US$ | 1,644 |  |  | N/A |  | US$ | 1,644 |  |
| APT Pipelines Limited | - | 〃 |  | - |  | US$ | 1,641 |  |  | N/A |  | US$ | 1,641 |  |
| UBS Group Funding (Jersey) Ltd. | - | 〃 |  | - |  | US$ | 1,635 |  |  | N/A |  | US$ | 1,635 |  |
| China Resources Gas Group Limited | - | 〃 |  | - |  | US$ | 1,614 |  |  | N/A |  | US$ | 1,614 |  |
| MetLife, Inc. | - | 〃 |  | - |  | US$ | 1,611 |  |  | N/A |  | US$ | 1,611 |  |
| The Southern Company | - | 〃 |  | - |  | US$ | 1,609 |  |  | N/A |  | US$ | 1,609 |  |
| Alimentation Couche-Tard Inc. | - | 〃 |  | - |  | US$ | 1,606 |  |  | N/A |  | US$ | 1,606 |  |
| Suntory Holdings Limited | - | 〃 |  | - |  | US$ | 1,598 |  |  | N/A |  | US$ | 1,598 |  |
| Mondelez International Holdings Netherlands Bv | - | 〃 |  | - |  | US$ | 1,597 |  |  | N/A |  | US$ | 1,597 |  |
| Duke Energy Florida, LLC | - | 〃 |  | - |  | US$ | 1,594 |  |  | N/A |  | US$ | 1,594 |  |
| Panasonic Corporation | - | 〃 |  | - |  | US$ | 1,588 |  |  | N/A |  | US$ | 1,588 |  |
| NSTAR Electric Company | - | 〃 |  | - |  | US$ | 1,581 |  |  | N/A |  | US$ | 1,581 |  |
| Brookfield Finance LLC | - | 〃 |  | - |  | US$ | 1,576 |  |  | N/A |  | US$ | 1,576 |  |
| CK Hutchison International (19) Limited | - | 〃 |  | - |  | US$ | 1,564 |  |  | N/A |  | US$ | 1,564 |  |
| CPI Property Group S.A. | - | 〃 |  | - |  | US$ | 1,562 |  |  | N/A |  | US$ | 1,562 |  |
| Barclays Bank PLC | - | 〃 |  | - |  | US$ | 1,546 |  |  | N/A |  | US$ | 1,546 |  |
| Marsh & McLennan Companies, Inc. | - | 〃 |  | - |  | US$ | 1,530 |  |  | N/A |  | US$ | 1,530 |  |
| Marathon Petroleum Corporation | - | 〃 |  | - |  | US$ | 1,524 |  |  | N/A |  | US$ | 1,524 |  |
| KEB Hana Bank | - | 〃 |  | - |  | US$ | 1,504 |  |  | N/A |  | US$ | 1,504 |  |
| Alliant Energy Finance, LLC | - | 〃 |  | - |  | US$ | 1,466 |  |  | N/A |  | US$ | 1,466 |  |
| Eastern Gas Transmission and Storage, Inc. | - | 〃 |  | - |  | US$ | 1,421 |  |  | N/A |  | US$ | 1,421 |  |
| Virginia Electric and Power Company | - | 〃 |  | - |  | US$ | 1,418 |  |  | N/A |  | US$ | 1,418 |  |
| NetApp, Inc. | - | 〃 |  | - |  | US$ | 1,384 |  |  | N/A |  | US$ | 1,384 |  |
| Truist Financial Corporation | - | 〃 |  | - |  | US$ | 1,375 |  |  | N/A |  | US$ | 1,375 |  |
| Met Tower Global Funding | - | 〃 |  | - |  | US$ | 1,368 |  |  | N/A |  | US$ | 1,368 |  |
| Andrew W. Mellon Foundation, The | - | 〃 |  | - |  | US$ | 1,365 |  |  | N/A |  | US$ | 1,365 |  |
| PACCAR Financial Corp. | - | 〃 |  | - |  | US$ | 1,327 |  |  | N/A |  | US$ | 1,327 |  |
| Entergy Arkansas, LLC | - | 〃 |  | - |  | US$ | 1,314 |  |  | N/A |  | US$ | 1,314 |  |
| Martin Marietta Materials, Inc. | - | 〃 |  | - |  | US$ | 1,305 |  |  | N/A |  | US$ | 1,305 |  |
| State Of Tennessee | - | 〃 |  | - |  | US$ | 1,258 |  |  | N/A |  | US$ | 1,258 |  |
| Lincoln National Corporation | - | 〃 |  | - |  | US$ | 1,182 |  |  | N/A |  | US$ | 1,182 |  |
| State Street Corporation | - | 〃 |  | - |  | US$ | 1,167 |  |  | N/A |  | US$ | 1,167 |  |
| IBERDROLA INTL BV | - | 〃 |  | - |  | US$ | 1,140 |  |  | N/A |  | US$ | 1,140 |  |
| The Curators of the University of Missouri | - | 〃 |  | - |  | US$ | 1,123 |  |  | N/A |  | US$ | 1,123 |  |
| Glencore Funding LLC | - | 〃 |  | - |  | US$ | 1,118 |  |  | N/A |  | US$ | 1,118 |  |
| Enterprise Products Operating LLC | - | 〃 |  | - |  | US$ | 1,110 |  |  | N/A |  | US$ | 1,110 |  |
| Foxconn (Far East) Limited | - | 〃 |  | - |  | US$ | 1,109 |  |  | N/A |  | US$ | 1,109 |  |
| The Cleveland Electric Illuminating Company | - | 〃 |  | - |  | US$ | 1,103 |  |  | N/A |  | US$ | 1,103 |  |
| Baker Hughes Holdings LLC | - | 〃 |  | - |  | US$ | 1,079 |  |  | N/A |  | US$ | 1,079 |  |
| Sinopec Group Overseas Development (2014) Ltd. | - | 〃 |  | - |  | US$ | 1,068 |  |  | N/A |  | US$ | 1,068 |  |
| BBVA México, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA México | - | 〃 |  | - |  | US$ | 1,063 |  |  | N/A |  | US$ | 1,063 |  |
| Brighthouse Financial Global Funding | - | 〃 |  | - |  | US$ | 1,060 |  |  | N/A |  | US$ | 1,060 |  |
| Pricoa Global Funding I | - | 〃 |  | - |  | US$ | 1,050 |  |  | N/A |  | US$ | 1,050 |  |
| Kansas City Southern | - | 〃 |  | - |  | US$ | 1,047 |  |  | N/A |  | US$ | 1,047 |  |

(Continued)

- 74 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | DH Europe Finance II S.a.r.l. | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 1,038 |  |  | N/A |  | US$ | 1,038 |  |
| Baltimore Gas and Electric Company | - | 〃 |  | - |  | US$ | 1,030 |  |  | N/A |  | US$ | 1,030 |  |
| Entergy Mississippi, LLC | - | 〃 |  | - |  | US$ | 1,023 |  |  | N/A |  | US$ | 1,023 |  |
| Loews Corporation | - | 〃 |  | - |  | US$ | 1,021 |  |  | N/A |  | US$ | 1,021 |  |
| Denver City & County Housing Authority | - | 〃 |  | - |  | US$ | 1,019 |  |  | N/A |  | US$ | 1,019 |  |
| MassMutual Global Funding II | - | 〃 |  | - |  | US$ | 1,018 |  |  | N/A |  | US$ | 1,018 |  |
| Texas Eastern Transmission, LP | - | 〃 |  | - |  | US$ | 1,011 |  |  | N/A |  | US$ | 1,011 |  |
| Kaiser Foundation Hospitals | - | 〃 |  | - |  | US$ | 1,008 |  |  | N/A |  | US$ | 1,008 |  |
| Board Of Regents State Of Iowa | - | 〃 |  | - |  | US$ | 978 |  |  | N/A |  | US$ | 978 |  |
| National Rural Utilities Cooperative Finance Corporation | - | 〃 |  | - |  | US$ | 974 |  |  | N/A |  | US$ | 974 |  |
| Aflac Incorporated | - | 〃 |  | - |  | US$ | 945 |  |  | N/A |  | US$ | 945 |  |
| QNB Finance Ltd. | - | 〃 |  | - |  | US$ | 930 |  |  | N/A |  | US$ | 930 |  |
| Unilever Capital Corporation | - | 〃 |  | - |  | US$ | 930 |  |  | N/A |  | US$ | 930 |  |
| Mitsubishi HC Capital Inc. | - | 〃 |  | - |  | US$ | 910 |  |  | N/A |  | US$ | 910 |  |
| BHP Billiton Finance (USA) Limited | - | 〃 |  | - |  | US$ | 903 |  |  | N/A |  | US$ | 903 |  |
| CubeSmart, L.P. | - | 〃 |  | - |  | US$ | 889 |  |  | N/A |  | US$ | 889 |  |
| KeyBank National Association | - | 〃 |  | - |  | US$ | 871 |  |  | N/A |  | US$ | 871 |  |
| Palm Beach County, Florida | - | 〃 |  | - |  | US$ | 844 |  |  | N/A |  | US$ | 844 |  |
| TransCanada PipeLines Limited | - | 〃 |  | - |  | US$ | 841 |  |  | N/A |  | US$ | 841 |  |
| Sinopec Capital (2013) Ltd. | - | 〃 |  | - |  | US$ | 820 |  |  | N/A |  | US$ | 820 |  |
| Aetna Inc. | - | 〃 |  | - |  | US$ | 815 |  |  | N/A |  | US$ | 815 |  |
| The Walt Disney Company | - | 〃 |  | - |  | US$ | 814 |  |  | N/A |  | US$ | 814 |  |
| Niagara Mohawk Power Corporation | - | 〃 |  | - |  | US$ | 811 |  |  | N/A |  | US$ | 811 |  |
| Oregon Health & Science University | - | 〃 |  | - |  | US$ | 808 |  |  | N/A |  | US$ | 808 |  |
| Visa Inc. | - | 〃 |  | - |  | US$ | 805 |  |  | N/A |  | US$ | 805 |  |
| Crédit Agricole S.A. | - | 〃 |  | - |  | US$ | 790 |  |  | N/A |  | US$ | 790 |  |
| Southern Power Company | - | 〃 |  | - |  | US$ | 787 |  |  | N/A |  | US$ | 787 |  |
| MASCO CORP | - | 〃 |  | - |  | US$ | 771 |  |  | N/A |  | US$ | 771 |  |
| Sky Limited | - | 〃 |  | - |  | US$ | 745 |  |  | N/A |  | US$ | 745 |  |
| Canadian Natural Resources Limited | - | 〃 |  | - |  | US$ | 734 |  |  | N/A |  | US$ | 734 |  |
| Hyundai Capital Services, Inc. | - | 〃 |  | - |  | US$ | 731 |  |  | N/A |  | US$ | 731 |  |
| Warner Media, LLC | - | 〃 |  | - |  | US$ | 728 |  |  | N/A |  | US$ | 728 |  |
| Southern California Gas Company | - | 〃 |  | - |  | US$ | 726 |  |  | N/A |  | US$ | 726 |  |
| Sodexo, Inc. | - | 〃 |  | - |  | US$ | 717 |  |  | N/A |  | US$ | 717 |  |
| Sinopec Group Overseas Development (2017) Limited | - | 〃 |  | - |  | US$ | 707 |  |  | N/A |  | US$ | 707 |  |
| Norsk Hydro ASA | - | 〃 |  | - |  | US$ | 688 |  |  | N/A |  | US$ | 688 |  |
| Abbott Laboratories | - | 〃 |  | - |  | US$ | 679 |  |  | N/A |  | US$ | 679 |  |
| Stryker Corporation | - | 〃 |  | - |  | US$ | 670 |  |  | N/A |  | US$ | 670 |  |
| State Of Washington | - | 〃 |  | - |  | US$ | 654 |  |  | N/A |  | US$ | 654 |  |
| Bell Canada, Inc. | - | 〃 |  | - |  | US$ | 646 |  |  | N/A |  | US$ | 646 |  |
| Republic Services, Inc. | - | 〃 |  | - |  | US$ | 621 |  |  | N/A |  | US$ | 621 |  |
| Florida Hurricane Catastrophe Fund Finance Corporation | - | 〃 |  | - |  | US$ | 621 |  |  | N/A |  | US$ | 621 |  |
| QUALCOMM Incorporated | - | 〃 |  | - |  | US$ | 618 |  |  | N/A |  | US$ | 618 |  |
| UBS AG (LONDON BRANCH) | - | 〃 |  | - |  | US$ | 616 |  |  | N/A |  | US$ | 616 |  |
| Intact U.S. Holdings Inc. | - | 〃 |  | - |  | US$ | 612 |  |  | N/A |  | US$ | 612 |  |
| American Water Capital Corp. | - | 〃 |  | - |  | US$ | 608 |  |  | N/A |  | US$ | 608 |  |
| Sinopec Group Overseas Development (2012) Ltd. | - | 〃 |  | - |  | US$ | 606 |  |  | N/A |  | US$ | 606 |  |
| Port of Morrow | - | 〃 |  | - |  | US$ | 592 |  |  | N/A |  | US$ | 592 |  |
| Dormitory Authority of the State of New York | - | 〃 |  | - |  | US$ | 584 |  |  | N/A |  | US$ | 584 |  |

(Continued)

- 75 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | Arizona Public Service Company | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 576 |  |  | N/A |  | US$ | 576 |  |
| Duke Energy Progress, LLC | - | 〃 |  | - |  | US$ | 571 |  |  | N/A |  | US$ | 571 |  |
| Shell International Finance B.V. | - | 〃 |  | - |  | US$ | 563 |  |  | N/A |  | US$ | 563 |  |
| Fifth Third Bank, National Association | - | 〃 |  | - |  | US$ | 556 |  |  | N/A |  | US$ | 556 |  |
| State of Hawaii | - | 〃 |  | - |  | US$ | 540 |  |  | N/A |  | US$ | 540 |  |
| United Parcel Service, Inc. | - | 〃 |  | - |  | US$ | 539 |  |  | N/A |  | US$ | 539 |  |
| Trane Technologies Luxembourg Finance S.A. | - | 〃 |  | - |  | US$ | 530 |  |  | N/A |  | US$ | 530 |  |
| Ecolab Inc. | - | 〃 |  | - |  | US$ | 526 |  |  | N/A |  | US$ | 526 |  |
| TTX Company | - | 〃 |  | - |  | US$ | 510 |  |  | N/A |  | US$ | 510 |  |
| Altria Group, Inc. | - | 〃 |  | - |  | US$ | 506 |  |  | N/A |  | US$ | 506 |  |
| Simon Property Group, L.P. | - | 〃 |  | - |  | US$ | 506 |  |  | N/A |  | US$ | 506 |  |
| 174 Power Global Corporation | - | 〃 |  | - |  | US$ | 504 |  |  | N/A |  | US$ | 504 |  |
| Commonwealth Bank of Australia | - | 〃 |  | - |  | US$ | 501 |  |  | N/A |  | US$ | 501 |  |
| DENSO Corporation | - | 〃 |  | - |  | US$ | 488 |  |  | N/A |  | US$ | 488 |  |
| Brazos Higher Education Authority Inc | - | 〃 |  | - |  | US$ | 462 |  |  | N/A |  | US$ | 462 |  |
| Target Corporation | - | 〃 |  | - |  | US$ | 437 |  |  | N/A |  | US$ | 437 |  |
| MUFG Union Bank, National Association | - | 〃 |  | - |  | US$ | 430 |  |  | N/A |  | US$ | 430 |  |
| PayPal Holdings, Inc. | - | 〃 |  | - |  | US$ | 429 |  |  | N/A |  | US$ | 429 |  |
| University of Massachusetts Building Authority | - | 〃 |  | - |  | US$ | 425 |  |  | N/A |  | US$ | 425 |  |
| Sierra Pacific Power Company | - | 〃 |  | - |  | US$ | 416 |  |  | N/A |  | US$ | 416 |  |
| McKesson Corporation | - | 〃 |  | - |  | US$ | 414 |  |  | N/A |  | US$ | 414 |  |
| Comerica Bank | - | 〃 |  | - |  | US$ | 413 |  |  | N/A |  | US$ | 413 |  |
| Boston Properties Limited Partnership | - | 〃 |  | - |  | US$ | 411 |  |  | N/A |  | US$ | 411 |  |
| Entergy Corporation | - | 〃 |  | - |  | US$ | 411 |  |  | N/A |  | US$ | 411 |  |
| Banco del Estado de Chile | - | 〃 |  | - |  | US$ | 408 |  |  | N/A |  | US$ | 408 |  |
| Komatsu Finance America, Inc. | - | 〃 |  | - |  | US$ | 404 |  |  | N/A |  | US$ | 404 |  |
| Honeywell International Inc. | - | 〃 |  | - |  | US$ | 401 |  |  | N/A |  | US$ | 401 |  |
| Duke Energy Corporation | - | 〃 |  | - |  | US$ | 394 |  |  | N/A |  | US$ | 394 |  |
| The Norinchukin Bank | - | 〃 |  | - |  | US$ | 394 |  |  | N/A |  | US$ | 394 |  |
| PepsiCo, Inc. | - | 〃 |  | - |  | US$ | 387 |  |  | N/A |  | US$ | 387 |  |
| StanCorp Financial Group Inc. | - | 〃 |  | - |  | US$ | 374 |  |  | N/A |  | US$ | 374 |  |
| Entergy Louisiana, LLC | - | 〃 |  | - |  | US$ | 372 |  |  | N/A |  | US$ | 372 |  |
| Principal Financial Group, Inc. | - | 〃 |  | - |  | US$ | 360 |  |  | N/A |  | US$ | 360 |  |
| First Republic Bank | - | 〃 |  | - |  | US$ | 354 |  |  | N/A |  | US$ | 354 |  |
| Pernod Ricard SA | - | 〃 |  | - |  | US$ | 352 |  |  | N/A |  | US$ | 352 |  |
| Coöperatieve Rabobank U.A., New York Branch | - | 〃 |  | - |  | US$ | 345 |  |  | N/A |  | US$ | 345 |  |
| Amgen Inc. | - | 〃 |  | - |  | US$ | 337 |  |  | N/A |  | US$ | 337 |  |
| Mid-America Apartments, L.P. | - | 〃 |  | - |  | US$ | 328 |  |  | N/A |  | US$ | 328 |  |
| The Allstate Corporation | - | 〃 |  | - |  | US$ | 321 |  |  | N/A |  | US$ | 321 |  |
| BP Capital Markets p.l.c. | - | 〃 |  | - |  | US$ | 316 |  |  | N/A |  | US$ | 316 |  |
| TotalEnergies Capital International | - | 〃 |  | - |  | US$ | 310 |  |  | N/A |  | US$ | 310 |  |
| Philip Morris International Inc. | - | 〃 |  | - |  | US$ | 304 |  |  | N/A |  | US$ | 304 |  |
| BOC Aviation (USA) Corporation | - | 〃 |  | - |  | US$ | 300 |  |  | N/A |  | US$ | 300 |  |
| Alabama State Federal Aid Highway Finance Authority | - | 〃 |  | - |  | US$ | 298 |  |  | N/A |  | US$ | 298 |  |
| salesforce.com, inc. | - | 〃 |  | - |  | US$ | 297 |  |  | N/A |  | US$ | 297 |  |
| Aon Corporation | - | 〃 |  | - |  | US$ | 294 |  |  | N/A |  | US$ | 294 |  |
| QatarEnergy | - | 〃 |  | - |  | US$ | 294 |  |  | N/A |  | US$ | 294 |  |
| Johnson Controls International plc | - | 〃 |  | - |  | US$ | 290 |  |  | N/A |  | US$ | 290 |  |
| Mondelez International, Inc. | - | 〃 |  | - |  | US$ | 275 |  |  | N/A |  | US$ | 275 |  |

(Continued)

- 76 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | Southern Natural Gas Company, L.L.C. | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 274 |  |  | N/A |  | US$ | 274 |  |
| Equitable Holdings, Inc. | - | 〃 |  | - |  | US$ | 253 |  |  | N/A |  | US$ | 253 |  |
| The Huntington National Bank | - | 〃 |  | - |  | US$ | 253 |  |  | N/A |  | US$ | 253 |  |
| Sales Tax Securitization Corporation Of Chicago | - | 〃 |  | - |  | US$ | 253 |  |  | N/A |  | US$ | 253 |  |
| Capital One Bank (USA), National Association | - | 〃 |  | - |  | US$ | 250 |  |  | N/A |  | US$ | 250 |  |
| E. I. du Pont de Nemours and Company | - | 〃 |  | - |  | US$ | 247 |  |  | N/A |  | US$ | 247 |  |
| Waste Management, Inc. | - | 〃 |  | - |  | US$ | 243 |  |  | N/A |  | US$ | 243 |  |
| Nasdaq, Inc. | - | 〃 |  | - |  | US$ | 220 |  |  | N/A |  | US$ | 220 |  |
| Children's Hospital Of Orange County | - | 〃 |  | - |  | US$ | 219 |  |  | N/A |  | US$ | 219 |  |
| The Pennsylvania State University | - | 〃 |  | - |  | US$ | 212 |  |  | N/A |  | US$ | 212 |  |
| Deere & Company | - | 〃 |  | - |  | US$ | 209 |  |  | N/A |  | US$ | 209 |  |
| Suncor Energy Inc. | - | 〃 |  | - |  | US$ | 205 |  |  | N/A |  | US$ | 205 |  |
| Oregon Education Districts | - | 〃 |  | - |  | US$ | 204 |  |  | N/A |  | US$ | 204 |  |
| Riverside County Infrastructure Financing Authority | - | 〃 |  | - |  | US$ | 204 |  |  | N/A |  | US$ | 204 |  |
| Los Angeles Department of Water and Power, California | - | 〃 |  | - |  | US$ | 203 |  |  | N/A |  | US$ | 203 |  |
| Saudi Arabian Oil Company | - | 〃 |  | - |  | US$ | 200 |  |  | N/A |  | US$ | 200 |  |
| NongHyup Bank | - | 〃 |  | - |  | US$ | 198 |  |  | N/A |  | US$ | 198 |  |
| San Francisco Public Utilities Commission | - | 〃 |  | - |  | US$ | 187 |  |  | N/A |  | US$ | 187 |  |
| Nucor Corporation | - | 〃 |  | - |  | US$ | 182 |  |  | N/A |  | US$ | 182 |  |
| Hoover Alabama Board Of Education | - | 〃 |  | - |  | US$ | 179 |  |  | N/A |  | US$ | 179 |  |
| Starbucks Corporation | - | 〃 |  | - |  | US$ | 174 |  |  | N/A |  | US$ | 174 |  |
| The New York State Urban Development Corporation | - | 〃 |  | - |  | US$ | 146 |  |  | N/A |  | US$ | 146 |  |
| Electricité de France S.A. | - | 〃 |  | - |  | US$ | 107 |  |  | N/A |  | US$ | 107 |  |
| Beth Israel Deaconess Medical Center, Inc. | - | 〃 |  | - |  | US$ | 100 |  |  | N/A |  | US$ | 100 |  |
| Municipal Improvement Corporation of Los Angeles | - | 〃 |  | - |  | US$ | 80 |  |  | N/A |  | US$ | 80 |  |
| Pima County, Arizona | - | 〃 |  | - |  | US$ | 79 |  |  | N/A |  | US$ | 79 |  |
| State of Wisconsin | - | 〃 |  | - |  | US$ | 64 |  |  | N/A |  | US$ | 64 |  |
| Huntington Beach California | - | 〃 |  | - |  | US$ | 50 |  |  | N/A |  | US$ | 50 |  |
| City of Worcester, MA | - | 〃 |  | - |  | US$ | 30 |  |  | N/A |  | US$ | 30 |  |
| Nueces County | - | 〃 |  | - |  | US$ | 25 |  |  | N/A |  | US$ | 25 |  |
| Citigroup Global Markets Inc. | - | Financial assets at amortized cost |  | - |  | US$ | 99,968 |  |  | N/A |  | US$ | 99,742 |  |
| The Goldman Sachs Group, Inc. | - | 〃 |  | - |  | US$ | 51,347 |  |  | N/A |  | US$ | 51,471 |  |
| Wells Fargo & Company | - | 〃 |  | - |  | US$ | 30,399 |  |  | N/A |  | US$ | 30,883 |  |
| JPMorgan Chase & Co. | - | 〃 |  | - |  | US$ | 10,054 |  |  | N/A |  | US$ | 10,068 |  |
| Government bond |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| United States Department of The Treasury | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 768,483 |  |  | N/A |  | US$ | 768,483 |  |
| Emirate of Abu Dhabi | - | 〃 |  | - |  | US$ | 1,495 |  |  | N/A |  | US$ | 1,495 |  |
| Qatar | - | 〃 |  | - |  | US$ | 1,352 |  |  | N/A |  | US$ | 1,352 |  |
| Agency bonds/Agency mortgage-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| FEDERAL NATIONAL MORTGAGE ASSOCIATION | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 595,794 |  |  | N/A |  | US$ | 595,794 |  |
| Government National Mortgage Association | - | 〃 |  | - |  | US$ | 309,985 |  |  | N/A |  | US$ | 309,985 |  |
| Federal Home Loan Mortgage Corporation | - | 〃 |  | - |  | US$ | 253,075 |  |  | N/A |  | US$ | 253,075 |  |
| Asset-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Hyundai Auto Receivables Trust 2021-C | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 10,922 |  |  | N/A |  | US$ | 10,922 |  |
| JPMBB Commercial Mortgage Securities Trust 2014-C24 | - | 〃 |  | - |  | US$ | 10,326 |  |  | N/A |  | US$ | 10,326 |  |

(Continued)

- 77 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | Wells Fargo Commercial Mortgage Trust 2016-Bnk1 | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 10,020 |  |  | N/A |  | US$ | 10,020 |  |
| Ford Credit Auto Owner Trust 2021-Rev2 | - | 〃 |  | - |  | US$ | 8,355 |  |  | N/A |  | US$ | 8,355 |  |
| Ford Credit Auto Owner Trust 2020-REV2 | - | 〃 |  | - |  | US$ | 7,211 |  |  | N/A |  | US$ | 7,211 |  |
| Bank 2020-BNK26 | - | 〃 |  | - |  | US$ | 6,974 |  |  | N/A |  | US$ | 6,974 |  |
| Morgan Stanley Capital I Trust 2021-L6 | - | 〃 |  | - |  | US$ | 6,956 |  |  | N/A |  | US$ | 6,956 |  |
| Morgan Stanley Bank America Merrill Lynch Trust 2016-C30 | - | 〃 |  | - |  | US$ | 6,898 |  |  | N/A |  | US$ | 6,898 |  |
| Bank 2017-Bnk6 | - | 〃 |  | - |  | US$ | 6,310 |  |  | N/A |  | US$ | 6,310 |  |
| Benchmark 2019-B11 Mortgage Trust | - | 〃 |  | - |  | US$ | 6,297 |  |  | N/A |  | US$ | 6,297 |  |
| Wells Fargo Commercial Mortgage Trust 2016-C35 | - | 〃 |  | - |  | US$ | 6,131 |  |  | N/A |  | US$ | 6,131 |  |
| GM Financial Consumer Automobile Receivables Trust 2021-4 | - | 〃 |  | - |  | US$ | 5,807 |  |  | N/A |  | US$ | 5,807 |  |
| Citigroup Commercial Mortgage Trust 2014-GC21 | - | 〃 |  | - |  | US$ | 5,760 |  |  | N/A |  | US$ | 5,760 |  |
| Hudson Yards 2016-10HY Mortgage Trust | - | 〃 |  | - |  | US$ | 5,697 |  |  | N/A |  | US$ | 5,697 |  |
| Citigroup Commercial Mortgage Trust 2021-PRM2 | - | 〃 |  | - |  | US$ | 5,603 |  |  | N/A |  | US$ | 5,603 |  |
| Wells Fargo Commercial Mortgage Trust 2021-C59 | - | 〃 |  | - |  | US$ | 5,568 |  |  | N/A |  | US$ | 5,568 |  |
| BBCMS 2018-Tall Mortgage Trust | - | 〃 |  | - |  | US$ | 5,438 |  |  | N/A |  | US$ | 5,438 |  |
| CSAIL 2018-CX11 | - | 〃 |  | - |  | US$ | 5,392 |  |  | N/A |  | US$ | 5,392 |  |
| WFRBS Commercial Mortgage Trust 2013-C13 | - | 〃 |  | - |  | US$ | 5,347 |  |  | N/A |  | US$ | 5,347 |  |
| UBS-Barclays Commercial Mortgage Trust 2012-C2 | - | 〃 |  | - |  | US$ | 5,242 |  |  | N/A |  | US$ | 5,242 |  |
| GM Financial Revolving Receivables Trust 2021-1 | - | 〃 |  | - |  | US$ | 4,910 |  |  | N/A |  | US$ | 4,910 |  |
| Morgan Stanley Bank America Merrill Lynch Trust 2013-C10 | - | 〃 |  | - |  | US$ | 4,870 |  |  | N/A |  | US$ | 4,870 |  |
| Commerce 2015-CCRE24 Mortgage Trust | - | 〃 |  | - |  | US$ | 4,830 |  |  | N/A |  | US$ | 4,830 |  |
| MRCD 2019-Prkc Mortgage Trust | - | 〃 |  | - |  | US$ | 4,749 |  |  | N/A |  | US$ | 4,749 |  |
| Bank 2017 - BNK7 | - | 〃 |  | - |  | US$ | 4,568 |  |  | N/A |  | US$ | 4,568 |  |
| Honda Auto Receivables 2021 - 4 Owner Trust | - | 〃 |  | - |  | US$ | 4,548 |  |  | N/A |  | US$ | 4,548 |  |
| Bank 2019-Bnk22 | - | 〃 |  | - |  | US$ | 4,142 |  |  | N/A |  | US$ | 4,142 |  |
| JPMCC 2017-JP7 | - | 〃 |  | - |  | US$ | 4,120 |  |  | N/A |  | US$ | 4,120 |  |
| BANK 2017-BNK5 | - | 〃 |  | - |  | US$ | 4,102 |  |  | N/A |  | US$ | 4,102 |  |
| Bank 2019-Bnk17 | - | 〃 |  | - |  | US$ | 4,100 |  |  | N/A |  | US$ | 4,100 |  |
| Msbam 2016-C29 | - | 〃 |  | - |  | US$ | 3,840 |  |  | N/A |  | US$ | 3,840 |  |
| Msbam 2016-C31 | - | 〃 |  | - |  | US$ | 3,692 |  |  | N/A |  | US$ | 3,692 |  |
| J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-LC9 | - | 〃 |  | - |  | US$ | 3,684 |  |  | N/A |  | US$ | 3,684 |  |
| UBS Barclays Commercial Mortgage Trust 2013-C6 | - | 〃 |  | - |  | US$ | 3,169 |  |  | N/A |  | US$ | 3,169 |  |
| WFRBS Commercial Mortgage Trust 2014-C25 | - | 〃 |  | - |  | US$ | 3,157 |  |  | N/A |  | US$ | 3,157 |  |
| GS Mortgage Securities Trust 2015-GC32 | - | 〃 |  | - |  | US$ | 3,140 |  |  | N/A |  | US$ | 3,140 |  |
| Wells Fargo Commercial Mortgage Trust 2017-C40 | - | 〃 |  | - |  | US$ | 3,040 |  |  | N/A |  | US$ | 3,040 |  |
| GS Mortgage Securities Corporation Trust 2018-RIVR | - | 〃 |  | - |  | US$ | 2,973 |  |  | N/A |  | US$ | 2,973 |  |
| UBS Commercial Mortgage Trust 2018-C10 | - | 〃 |  | - |  | US$ | 2,973 |  |  | N/A |  | US$ | 2,973 |  |
| Sreit Commercial Mortgage Trust 2021-Mfp | - | 〃 |  | - |  | US$ | 2,886 |  |  | N/A |  | US$ | 2,886 |  |
| Benchmark 2018-B3 Commercial Mortgage Trust | - | 〃 |  | - |  | US$ | 2,882 |  |  | N/A |  | US$ | 2,882 |  |
| JPMDB 2017-C7 | - | 〃 |  | - |  | US$ | 2,870 |  |  | N/A |  | US$ | 2,870 |  |
| Hyundai Auto Receivables Trust 2018-A | - | 〃 |  | - |  | US$ | 2,867 |  |  | N/A |  | US$ | 2,867 |  |
| JPMBB Commercial Mortgage Securities Trust 2015-C28 | - | 〃 |  | - |  | US$ | 2,762 |  |  | N/A |  | US$ | 2,762 |  |
| GS Mortgage Securities Trust 2013-GCJ12 | - | 〃 |  | - |  | US$ | 2,657 |  |  | N/A |  | US$ | 2,657 |  |
| Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7 | - | 〃 |  | - |  | US$ | 2,633 |  |  | N/A |  | US$ | 2,633 |  |
| Ford Credit Auto Owner Trust 2020-Rev1 | - | 〃 |  | - |  | US$ | 2,544 |  |  | N/A |  | US$ | 2,544 |  |
| Wells Fargo Commercial Mortgage Trust 2020-C55 | - | 〃 |  | - |  | US$ | 2,498 |  |  | N/A |  | US$ | 2,498 |  |
| UBS-Barclays Commercial Mortgage Trust 2012-C3 | - | 〃 |  | - |  | US$ | 2,405 |  |  | N/A |  | US$ | 2,405 |  |
| Citigroup Commercial Mortgage Trust 2015-P1 | - | 〃 |  | - |  | US$ | 2,400 |  |  | N/A |  | US$ | 2,400 |  |

(Continued)

- 78 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | BBCMS Mortgage Trust 2020-C8 | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 2,383 |  |  | N/A |  | US$ | 2,383 |  |
| Bank 2021-bnk33 | - | 〃 |  | - |  | US$ | 2,371 |  |  | N/A |  | US$ | 2,371 |  |
| Dolp Trust 2021-NYC | - | 〃 |  | - |  | US$ | 2,304 |  |  | N/A |  | US$ | 2,304 |  |
| Mhc Commercial Mortgage Trust 2021-Mhc | - | 〃 |  | - |  | US$ | 2,285 |  |  | N/A |  | US$ | 2,285 |  |
| Citigroup Commercial Mortgage Trust 2015-GC27 | - | 〃 |  | - |  | US$ | 2,249 |  |  | N/A |  | US$ | 2,249 |  |
| Morgan Stanley Capital I Trust | - | 〃 |  | - |  | US$ | 2,242 |  |  | N/A |  | US$ | 2,242 |  |
| Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6 | - | 〃 |  | - |  | US$ | 2,110 |  |  | N/A |  | US$ | 2,110 |  |
| Commerce 2013-CCRE12 Mortgage Trust | - | 〃 |  | - |  | US$ | 2,090 |  |  | N/A |  | US$ | 2,090 |  |
| UBS Commercial Mortgage Trust 2018-C11 | - | 〃 |  | - |  | US$ | 2,089 |  |  | N/A |  | US$ | 2,089 |  |
| Morgan Stanley Capital I Trust 2018-H3 | - | 〃 |  | - |  | US$ | 2,077 |  |  | N/A |  | US$ | 2,077 |  |
| Benchmark 2018-B4 Mortgage Trust | - | 〃 |  | - |  | US$ | 2,068 |  |  | N/A |  | US$ | 2,068 |  |
| CGCMT 2017-P8 Mortgage Trust | - | 〃 |  | - |  | US$ | 2,040 |  |  | N/A |  | US$ | 2,040 |  |
| Wells Fargo Commercial Mortgage Trust 2015-C30 | - | 〃 |  | - |  | US$ | 1,716 |  |  | N/A |  | US$ | 1,716 |  |
| Morgan Stanley Capital I Trust 2021-L5 | - | 〃 |  | - |  | US$ | 1,651 |  |  | N/A |  | US$ | 1,651 |  |
| Wells Fargo Commercial Mortgage Trust 2018-C44 | - | 〃 |  | - |  | US$ | 1,633 |  |  | N/A |  | US$ | 1,633 |  |
| Morgan Stanley Bank of America Merrill Lynch Trust 2013-C8 | - | 〃 |  | - |  | US$ | 1,568 |  |  | N/A |  | US$ | 1,568 |  |
| COMM 2020-CBM Mortgage Trust | - | 〃 |  | - |  | US$ | 1,556 |  |  | N/A |  | US$ | 1,556 |  |
| JPMBB Commercial Mortgage Securities Trust 2013-C12 | - | 〃 |  | - |  | US$ | 1,517 |  |  | N/A |  | US$ | 1,517 |  |
| Wells Fargo Commercial Mortgage Trust 2015-C29 | - | 〃 |  | - |  | US$ | 1,364 |  |  | N/A |  | US$ | 1,364 |  |
| WFRBS Commercial Mortgage Trust 2013-UBS1 | - | 〃 |  | - |  | US$ | 1,309 |  |  | N/A |  | US$ | 1,309 |  |
| Toyota Auto Receivables 2018-D Owner Trust | - | 〃 |  | - |  | US$ | 1,302 |  |  | N/A |  | US$ | 1,302 |  |
| Dbgs 2018-Biod Mortgage Trust | - | 〃 |  | - |  | US$ | 1,299 |  |  | N/A |  | US$ | 1,299 |  |
| Honda Auto Receivables 2021-2 Owner Trust | - | 〃 |  | - |  | US$ | 1,288 |  |  | N/A |  | US$ | 1,288 |  |
| Toyota Auto Receivables 2021-D Owner Trust | - | 〃 |  | - |  | US$ | 1,192 |  |  | N/A |  | US$ | 1,192 |  |
| Wells Fargo Commercial Mortgage Trust 2012-LC5 | - | 〃 |  | - |  | US$ | 1,153 |  |  | N/A |  | US$ | 1,153 |  |
| Morgan Stanley Capital I Trust 2015 - UBS8 | - | 〃 |  | - |  | US$ | 1,071 |  |  | N/A |  | US$ | 1,071 |  |
| Commerce 2014-Ccre17 Mortgage Trust | - | 〃 |  | - |  | US$ | 1,048 |  |  | N/A |  | US$ | 1,048 |  |
| WFRBSCommercial Mortgage Trust 2013-C17 | - | 〃 |  | - |  | US$ | 1,010 |  |  | N/A |  | US$ | 1,010 |  |
| Citigroup Commercial Mortgage Trust 2013-GCJ11 | - | 〃 |  | - |  | US$ | 958 |  |  | N/A |  | US$ | 958 |  |
| GS Mortgage Securities Trust 2014-GC22 | - | 〃 |  | - |  | US$ | 940 |  |  | N/A |  | US$ | 940 |  |
| COMM 2013-LC6 Mortgage Trust | - | 〃 |  | - |  | US$ | 927 |  |  | N/A |  | US$ | 927 |  |
| COMM 2012-CCRE5 Mortgage Trust | - | 〃 |  | - |  | US$ | 917 |  |  | N/A |  | US$ | 917 |  |
| Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C13 | - | 〃 |  | - |  | US$ | 914 |  |  | N/A |  | US$ | 914 |  |
| Benchmark 2019-B14 Mortgage Trust | - | 〃 |  | - |  | US$ | 909 |  |  | N/A |  | US$ | 909 |  |
| Morgan Stanley Capital I Trust 2019-H6 | - | 〃 |  | - |  | US$ | 890 |  |  | N/A |  | US$ | 890 |  |
| BX Trust 2021-BXMF | - | 〃 |  | - |  | US$ | 843 |  |  | N/A |  | US$ | 843 |  |
| GS Mortgage Securities Trust 2019-GSA1 | - | 〃 |  | - |  | US$ | 839 |  |  | N/A |  | US$ | 839 |  |
| 280 Park Avenue Trust 2017 - 280P | - | 〃 |  | - |  | US$ | 829 |  |  | N/A |  | US$ | 829 |  |
| GS Mortgage Securities Trust 2014-GC24 | - | 〃 |  | - |  | US$ | 825 |  |  | N/A |  | US$ | 825 |  |
| Elp Commercial Mortgage Trust 2021-Elp | - | 〃 |  | - |  | US$ | 795 |  |  | N/A |  | US$ | 795 |  |
| Bx 2021-21M Mortgage Trust | - | 〃 |  | - |  | US$ | 794 |  |  | N/A |  | US$ | 794 |  |
| Wells Fargo Commercial Mortgage Trust 2015-LC20 | - | 〃 |  | - |  | US$ | 776 |  |  | N/A |  | US$ | 776 |  |
| Benchmark 2019-B9 Mortgage Trust | - | 〃 |  | - |  | US$ | 709 |  |  | N/A |  | US$ | 709 |  |
| Bbcms Mortgage Trust 2017-C1 | - | 〃 |  | - |  | US$ | 698 |  |  | N/A |  | US$ | 698 |  |
| JPMBB Commercial Mortgage Securities Trust 2014-C19 | - | 〃 |  | - |  | US$ | 663 |  |  | N/A |  | US$ | 663 |  |
| Benchmark 2019-B15 Mortgage Trust | - | 〃 |  | - |  | US$ | 642 |  |  | N/A |  | US$ | 642 |  |
| Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C12 | - | 〃 |  | - |  | US$ | 639 |  |  | N/A |  | US$ | 639 |  |
| CF 2019-CF1 Mortgage Trust | - | 〃 |  | - |  | US$ | 609 |  |  | N/A |  | US$ | 609 |  |
| Gs Mortgage Securities Corporation Trust 2020-Uptn | - | 〃 |  | - |  | US$ | 602 |  |  | N/A |  | US$ | 602 |  |

(Continued)

- 79 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
TSMC Global | Equs 2021-Eqaz Mortgage Trust | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 597 |  |  | N/A |  | US$ | 597 |  |
| Wells Fargo Commercial Mortgage Trust 2015-C28 | - | 〃 |  | - |  | US$ | 581 |  |  | N/A |  | US$ | 581 |  |
| Bank 2019-BNK23 | - | 〃 |  | - |  | US$ | 579 |  |  | N/A |  | US$ | 579 |  |
| Morgan Stanley Capital I Trust 2019-H7 | - | 〃 |  | - |  | US$ | 568 |  |  | N/A |  | US$ | 568 |  |
| Wells Fargo Commercial Mortgage Trust 2015-NXS3 | - | 〃 |  | - |  | US$ | 555 |  |  | N/A |  | US$ | 555 |  |
| Bx Commercial Mortgage Trust 2021-CIP | - | 〃 |  | - |  | US$ | 550 |  |  | N/A |  | US$ | 550 |  |
| Citigroup Commercial Mortgage Trust 2018-C5 | - | 〃 |  | - |  | US$ | 545 |  |  | N/A |  | US$ | 545 |  |
| Citigroup Commercial Mortgage Trust 2014-GC23 | - | 〃 |  | - |  | US$ | 522 |  |  | N/A |  | US$ | 522 |  |
| COMM 2015-CCRE22 Mortgage Trust | - | 〃 |  | - |  | US$ | 464 |  |  | N/A |  | US$ | 464 |  |
| JPMCC 2015 - JP1 | - | 〃 |  | - |  | US$ | 382 |  |  | N/A |  | US$ | 382 |  |
| JPMDB Commercial Mortgage Securities Trust 2019-COR6 | - | 〃 |  | - |  | US$ | 374 |  |  | N/A |  | US$ | 374 |  |
| UBS Barclays Commercial Mortgage Trust 2013-C5 | - | 〃 |  | - |  | US$ | 364 |  |  | N/A |  | US$ | 364 |  |
| Citigroup Commercial Mortgage Trust 2014-GC19 | - | 〃 |  | - |  | US$ | 287 |  |  | N/A |  | US$ | 287 |  |
| GS Mortgage Securities Trust 2014-GC26 | - | 〃 |  | - |  | US$ | 275 |  |  | N/A |  | US$ | 275 |  |
| Citigroup Commercial Mortgage Trust 2016-C3 | - | 〃 |  | - |  | US$ | 243 |  |  | N/A |  | US$ | 243 |  |
| Wells Fargo Commercial Mortgage Trust 2016-C36 | - | 〃 |  | - |  | US$ | 235 |  |  | N/A |  | US$ | 235 |  |
| Citigroup Commercial Mortgage Trust 2015-GC35 | - | 〃 |  | - |  | US$ | 216 |  |  | N/A |  | US$ | 216 |  |
| Ford Credit Auto Owner Trust 2019-A | - | 〃 |  | - |  | US$ | 152 |  |  | N/A |  | US$ | 152 |  |
| Bank 2020-BNK28 | - | 〃 |  | - |  | US$ | 132 |  |  | N/A |  | US$ | 132 |  |
| COMM 2013-CCRE8 Mortgage Trust | - | 〃 |  | - |  | US$ | 122 |  |  | N/A |  | US$ | 122 |  |
| COMM 2015-DC1 Mortgage Trust | - | 〃 |  | - |  | US$ | 109 |  |  | N/A |  | US$ | 109 |  |
| BBCMS Mortgage Trust 2020-C7 | - | 〃 |  | - |  | US$ | 91 |  |  | N/A |  | US$ | 91 |  |
| Wells Fargo Commercial Mortgage Trust 2015-NXS1 | - | 〃 |  | - |  | US$ | 36 |  |  | N/A |  | US$ | 36 |  |
| Non-publicly traded equity investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Primavera Capital Fund II L.P. | - | Financial assets at fair value through other comprehensive income |  | - |  | US$ | 89,495 |  |  | 4 |  | US$ | 89,495 |  |
VTAF II | Non-publicly traded equity investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Aether Systems, Inc. | - | Financial assets at fair value through other comprehensive income |  | 1,085 |  | US$ | 392 |  |  | 20 |  | US$ | 392 |  |
| 5V Technologies, Inc. | - | 〃 |  | 4 |  |  | - |  |  | - |  |  | - |  |
| Publicly traded stocks |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Sentelic Corporation | - | Financial assets at fair value through other comprehensive income |  | 1,019 |  | US$ | 2,954 |  |  | 3 |  | US$ | 2,954 |  |
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$ | 2,142 |  |  | - |  | US$ | 2,142 |  |
| CNEX Labs, Inc. | - | 〃 |  | 24 |  | US$ | 214 |  |  | - |  | US$ | 214 |  |
| Publicly traded stocks |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Marvell Technology Group Ltd. | - | Financial assets at fair value through other comprehensive income |  | 45 |  | US$ | 3,903 |  |  | - |  | US$ | 3,903 |  |

(Continued)

- 80 -

Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | December 31, 2021 | Note
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands)
Emerging Fund | Non-publicly traded equity investments |  |  |  |  |  |  |
| Credo Technology Group Holding Ltd. | - | Financial assets at fair value through other comprehensive income |  | 861 |  | US$ | 5,000 |  |  | 1 |  | US$ | 5,000 |  |
| Astera Labs, Inc. | - | 〃 |  | 1,487 |  | US$ | 5,000 |  |  | 1 |  | US$ | 5,000 |  |

(Concluded)

- 81 -

TABLE 4

Taiwan Semiconductor Manufacturing Company Limited and Investees

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 YEAR ENDED DECEMBER 31, 2021

(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 1)
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 | Non-publicly traded equity investments |  |  |  |  |  |  |  |  |  |  |  |  |
| VisEra Tech | Investments accounted for using equity method | 19 institutional investors, including: GIC, Capital Group, Fidelity International, Cathay Life Insurance Co., Ltd., Fubon Life Insurance Co., Ltd., Yuanta Securities, KGI Securities and Securities and Futures Investors Protection Center etc. | - |  | 253,120 |  | $ | 6,363,099 |  |  | - |  | $ | - |  |  | 39,501 |  | $ | 9,451,798 |  | $ | 1,045,516 |  | Note 2 |  | 213,619 |  | $ | 6,521,231 |
| TSMC Arizona | 〃 | - | - |  | 30 |  |  | 842,745 |  |  | 740 |  |  | 20,787,702 |  |  | - |  |  | - |  |  | - |  | - |  | 770 |  |  | 16,667,696 |
| JASM | 〃 | - | - |  | - |  |  | - |  |  | 58 |  |  | 1,416,921 |  |  | - |  |  | - |  |  | - |  | - |  | 58 |  |  | 1,383,554 |
TSMC Partners | Non-publicly traded equity investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Inpria Corporation | Financial assets at fair value through other comprehensive income | - | - |  | 1,778 |  | US$ | 3,600 |  |  | - |  | US$ | - |  |  | 1,778 |  | US$ | 17,146 |  | US$ | 4,000 |  | US$13,146 |  | - |  | US$ | - |
TSMC Global | Corporate bond |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Bank of America Corporation | Financial assets at fair value through other comprehensive income | - | - |  | - |  | US$ | 58,724 |  |  | - |  | US$ | 36,173 |  |  | - |  | US$ | 18,692 |  | US$ | 18,526 |  | US$166 |  | - |  | US$ | 74,188 |
| Citigroup Inc. | 〃 | - | - |  | - |  | US$ | 41,827 |  |  | - |  | US$ | 24,458 |  |  | - |  | US$ | 18,235 |  | US$ | 18,033 |  | US$202 |  | - |  | US$ | 46,836 |
| The Goldman Sachs Group, Inc. | 〃 | - | - |  | - |  | US$ | 29,809 |  |  | - |  | US$ | 24,600 |  |  | - |  | US$ | 7,381 |  | US$ | 7,376 |  | US$5 |  | - |  | US$ | 46,380 |
| JPMorgan Chase & Co. | 〃 | - | - |  | - |  | US$ | 29,759 |  |  | - |  | US$ | 16,303 |  |  | - |  | US$ | 3,333 |  | US$ | 3,303 |  | US$30 |  | - |  | US$ | 41,525 |
| AbbVie Inc. | 〃 | - | - |  | - |  | US$ | 33,716 |  |  | - |  | US$ | 13,933 |  |  | - |  | US$ | 8,756 |  | US$ | 7,977 |  | US$779 |  | - |  | US$ | 37,531 |

(Continued)

- 82 -

Company Name | Marketable Securities Type and Name | Financial Statement Account | Counterparty | Nature of Relationship | Beginning Balance | Acquisition | Disposal | Ending Balance (Note 1)
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 Global | Wells Fargo & Company | Financial assets at fair value through other comprehensive income | - | - |  | - |  | US$ | 26,074 |  |  | - |  | US$ | 20,040 |  |  | - |  | US$ | 10,192 |  | US$ | 9,865 |  | US$ | 327 |  |  | - |  | US$ | 34,978 |
| Mitsubishi UFJ Financial Group, Inc. | 〃 | - | - |  | - |  | US$ | 34,946 |  |  | - |  | US$ | 8,784 |  |  | - |  | US$ | 10,906 |  | US$ | 10,709 |  | US$ | 197 |  |  | - |  | US$ | 31,881 |
| HSBC Holdings plc | 〃 | - | - |  | - |  | US$ | 16,113 |  |  | - |  | US$ | 15,004 |  |  | - |  | US$ | 3,508 |  | US$ | 3,365 |  | US$ | 143 |  |  | - |  | US$ | 26,960 |
| BNP Paribas SA | 〃 | - | - |  | - |  | US$ | 13,202 |  |  | - |  | US$ | 14,494 |  |  | - |  | US$ | 7,154 |  | US$ | 6,882 |  | US$ | 272 |  |  | - |  | US$ | 19,983 |
| Oracle Corporation | 〃 | - | - |  | - |  | US$ | 7,822 |  |  | - |  | US$ | 13,979 |  |  | - |  | US$ | 2,000 |  | US$ | 2,000 |  | US$ | - |  |  | - |  | US$ | 19,448 |
| Morgan Stanley | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 18,029 |  |  | - |  | US$ | - |  | US$ | - |  | US$ | - |  |  | - |  | US$ | 17,917 |
| Morgan Stanley | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 17,210 |  |  | - |  | US$ | - |  | US$ | - |  | US$ | - |  |  | - |  | US$ | 17,013 |
| Mizuho Financial Group, Inc. | 〃 | - | - |  | - |  | US$ | 20,795 |  |  | - |  | US$ | 6,233 |  |  | - |  | US$ | 12,671 |  | US$ | 12,556 |  | US$ | 115 |  |  | - |  | US$ | 13,999 |
| NTT Finance Corporation | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 14,780 |  |  | - |  | US$ | 1,941 |  | US$ | 1,945 |  | US$ | (4 | ) |  | - |  | US$ | 12,546 |
| Morgan Stanley | 〃 | - | - |  | - |  | US$ | 23,053 |  |  | - |  | US$ | - |  |  | - |  | US$ | 11,390 |  | US$ | 11,125 |  | US$ | 265 |  |  | - |  | US$ | 11,096 |
| Verizon Communications Inc. | 〃 | - | - |  | - |  | US$ | 10,558 |  |  | - |  | US$ | 16,617 |  |  | - |  | US$ | 16,037 |  | US$ | 15,940 |  | US$ | 97 |  |  | - |  | US$ | 10,971 |
| Bristol-Myers Squibb Company | 〃 | - | - |  | - |  | US$ | 21,090 |  |  | - |  | US$ | - |  |  | - |  | US$ | 11,028 |  | US$ | 10,613 |  | US$ | 415 |  |  | - |  | US$ | 9,412 |
| AstraZeneca Finance LLC | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 10,933 |  |  | - |  | US$ | 2,703 |  | US$ | 2,716 |  | US$ | (13 | ) |  | - |  | US$ | 8,123 |
| BP Capital Markets America, Inc. | 〃 | - | - |  | - |  | US$ | 15,621 |  |  | - |  | US$ | - |  |  | - |  | US$ | 12,848 |  | US$ | 12,545 |  | US$ | 303 |  |  | - |  | US$ | 2,457 |
| NextEra Energy Capital Holdings, Inc. | 〃 | - | - |  | - |  | US$ | 9,527 |  |  | - |  | US$ | 4,985 |  |  | - |  | US$ | 12,258 |  | US$ | 11,963 |  | US$ | 295 |  |  | - |  | US$ | 2,000 |
| Citigroup Global Markets Inc. | Financial assets at amortized cost | - | - |  | - |  | US$ | 99,965 |  |  | - |  | US$ | 100,000 |  |  | - |  | US$ | 100,000 |  | US$ | 100,000 |  | US$ | - |  |  | - |  | US$ | 99,968 |
| The Goldman Sachs Group, Inc. | 〃 | - | - |  | - |  | US$ | 14,930 |  |  | - |  | US$ | 36,455 |  |  | - |  | US$ | - |  | US$ | - |  | US$ | - |  |  | - |  | US$ | 51,347 |
| Wells Fargo & Company | 〃 | - | - |  | - |  | US$ | 180,487 |  |  | - |  | US$ | - |  |  | - |  | US$ | 150,000 |  | US$ | 150,000 |  | US$ | - |  |  | - |  | US$ | 30,399 |
| JPMorgan Chase & Co. | 〃 | - | - |  | - |  | US$ | 95,058 |  |  | - |  | US$ | - |  |  | - |  | US$ | 85,000 |  | US$ | 85,000 |  | US$ | - |  |  | - |  | US$ | 10,054 |
| Government bond |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| United States Department of The Treasury | Financial assets at fair value through other comprehensive income | - | - |  | - |  | US$ | 182,533 |  |  | - |  | US$ | 1,298,345 |  |  | - |  | US$ | 980,985 |  | US$ | 985,925 |  | US$ | (4,940 | ) |  | - |  | US$ | 488,297 |
| United States Department of The Treasury | 〃 | - | - |  | - |  | US$ | 287,012 |  |  | - |  | US$ | 74,148 |  |  | - |  | US$ | 107,638 |  | US$ | 108,069 |  | US$ | (431 | ) |  | - |  | US$ | 245,475 |
| United States Department of The Treasury | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 82,290 |  |  | - |  | US$ | 49,816 |  | US$ | 49,811 |  | US$ | 5 |  |  | - |  | US$ | 32,486 |
| United States Department of The Treasury | 〃 | - | - |  | - |  | US$ | 3,073 |  |  | - |  | US$ | 13,441 |  |  | - |  | US$ | 14,389 |  | US$ | 14,218 |  | US$ | 171 |  |  | - |  | US$ | 2,225 |
| Agency bonds/Agency mortgage- backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Government National Mortgage Association | Financial assets at fair value through other comprehensive income | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 436,640 |  |  | - |  | US$ | 207,178 |  | US$ | 207,916 |  | US$ | (738 | ) |  | - |  | US$ | 226,295 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 96,211 |  |  | - |  | US$ | 355,027 |  |  | - |  | US$ | 368,077 |  | US$ | 370,120 |  | US$ | (2,043 | ) |  | - |  | US$ | 79,577 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 4,035 |  |  | - |  | US$ | 895,855 |  |  | - |  | US$ | 845,383 |  | US$ | 845,168 |  | US$ | 215 |  |  | - |  | US$ | 54,626 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 56,510 |  |  | - |  | US$ | 2,460 |  |  | - |  | US$ | 14,850 |  | US$ | 15,495 |  | US$ | (645 | ) |  | - |  | US$ | 42,003 |
| Federal Home Loan Mortgage Corporation | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 35,786 |  |  | - |  | US$ | 432 |  | US$ | 433 |  | US$ | (1 | ) |  | - |  | US$ | 35,138 |

(Continued)

- 83 -

Company Name | Marketable Securities Type and Name | Financial Statement Account | Counterparty | Nature of Relationship | Beginning Balance | Acquisition | Disposal | Ending Balance (Note 1)
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 Global | FEDERAL NATIONAL MORTGAGE ASSOCIATION | Financial assets at fair value through other comprehensive income | - | - |  | - |  | US$ | 7,969 |  |  | - |  | US$ | 253,784 |  |  | - |  | US$ | 233,044 |  | US$ | 233,517 |  | US$ | (473 | ) |  | - |  | US$ | 28,206 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 49,027 |  |  | - |  | US$ | 1,372,973 |  |  | - |  | US$ | 1,393,352 |  | US$ | 1,394,172 |  | US$ | (820 | ) |  | - |  | US$ | 27,725 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 16,145 |  |  | - |  | US$ | - |  | US$ | - |  | US$ | - |  |  | - |  | US$ | 16,150 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 366,295 |  |  | - |  | US$ | 350,795 |  | US$ | 350,707 |  | US$ | 88 |  |  | - |  | US$ | 15,541 |
| Federal Home Loan Mortgage Corporation | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 87,563 |  |  | - |  | US$ | 72,465 |  | US$ | 72,543 |  | US$ | (78 | ) |  | - |  | US$ | 14,756 |
| Government National Mortgage Association | 〃 | - | - |  | - |  | US$ | 17,896 |  |  | - |  | US$ | 498,925 |  |  | - |  | US$ | 505,785 |  | US$ | 506,704 |  | US$ | (919 | ) |  | - |  | US$ | 10,073 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 31,980 |  |  | - |  | US$ | 184,032 |  |  | - |  | US$ | 208,832 |  | US$ | 208,922 |  | US$ | (90 | ) |  | - |  | US$ | 6,857 |
| Government National Mortgage Association | 〃 | - | - |  | - |  | US$ | 30,307 |  |  | - |  | US$ | 38,746 |  |  | - |  | US$ | 61,172 |  | US$ | 62,158 |  | US$ | (986 | ) |  | - |  | US$ | 6,462 |
| Government National Mortgage Association | 〃 | - | - |  | - |  | US$ | 9,795 |  |  | - |  | US$ | 214,076 |  |  | - |  | US$ | 217,697 |  | US$ | 217,835 |  | US$ | (138 | ) |  | - |  | US$ | 6,025 |
| Government National Mortgage Association | 〃 | - | - |  | - |  | US$ | 14,244 |  |  | - |  | US$ | 391,758 |  |  | - |  | US$ | 399,817 |  | US$ | 400,027 |  | US$ | (210 | ) |  | - |  | US$ | 5,985 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 18,997 |  |  | - |  | US$ | 2,026 |  |  | - |  | US$ | 15,566 |  | US$ | 15,829 |  | US$ | (263 | ) |  | - |  | US$ | 5,048 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 24,084 |  |  | - |  | US$ | - |  |  | - |  | US$ | 19,973 |  | US$ | 19,293 |  | US$ | 680 |  |  | - |  | US$ | 3,923 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 18,019 |  |  | - |  | US$ | - |  |  | - |  | US$ | 13,821 |  | US$ | 13,363 |  | US$ | 458 |  |  | - |  | US$ | 3,822 |
| Government National Mortgage Association | 〃 | - | - |  | - |  | US$ | 27,389 |  |  | - |  | US$ | - |  |  | - |  | US$ | 23,510 |  | US$ | 23,329 |  | US$ | 181 |  |  | - |  | US$ | 3,202 |
| Federal Home Loan Mortgage Corporation | 〃 | - | - |  | - |  | US$ | 20,247 |  |  | - |  | US$ | 23,170 |  |  | - |  | US$ | 40,219 |  | US$ | 40,181 |  | US$ | 38 |  |  | - |  | US$ | 3,001 |
| Government National Mortgage Association | 〃 | - | - |  | - |  | US$ | 24,481 |  |  | - |  | US$ | - |  |  | - |  | US$ | 20,977 |  | US$ | 20,571 |  | US$ | 406 |  |  | - |  | US$ | 2,938 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 23,776 |  |  | - |  | US$ | 3,273 |  |  | - |  | US$ | 24,212 |  | US$ | 23,815 |  | US$ | 397 |  |  | - |  | US$ | 2,616 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 19,673 |  |  | - |  | US$ | 149,957 |  |  | - |  | US$ | 167,446 |  | US$ | 167,425 |  | US$ | 21 |  |  | - |  | US$ | 2,209 |
| Government National Mortgage Association | 〃 | - | - |  | - |  | US$ | 1,067 |  |  | - |  | US$ | 30,360 |  |  | - |  | US$ | 29,604 |  | US$ | 29,632 |  | US$ | (28 | ) |  | - |  | US$ | 1,791 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 13,391 |  |  | - |  | US$ | - |  |  | - |  | US$ | 12,337 |  | US$ | 12,300 |  | US$ | 37 |  |  | - |  | US$ | 694 |
| Government National Mortgage Association | 〃 | - | - |  | - |  | US$ | 5,381 |  |  | - |  | US$ | 46,006 |  |  | - |  | US$ | 50,843 |  | US$ | 50,855 |  | US$ | (12 | ) |  | - |  | US$ | 529 |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 21,409 |  |  | - |  | US$ | 162,780 |  |  | - |  | US$ | 183,757 |  | US$ | 183,736 |  | US$ | 21 |  |  | - |  | US$ | 426 |
| Federal Home Loan Mortgage Corporation | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 145,065 |  |  | - |  | US$ | 145,122 |  | US$ | 145,065 |  | US$ | 57 |  |  | - |  | US$ | - |
| Government National Mortgage Association | 〃 | - | - |  | - |  | US$ | 199,835 |  |  | - |  | US$ | 82,010 |  |  | - |  | US$ | 278,349 |  | US$ | 280,290 |  | US$ | (1,941 | ) |  | - |  | US$ | - |
| Federal Home Loan Mortgage Corporation | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 124,232 |  |  | - |  | US$ | 124,218 |  | US$ | 124,232 |  | US$ | (14 | ) |  | - |  | US$ | - |

(Continued)

- 84 -

Company Name | Marketable Securities Type and Name | Financial Statement Account | Counterparty | Nature of Relationship | Beginning Balance | Acquisition | Disposal | Ending Balance (Note 1)
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 Global | GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 2 | Financial assets at fair value through other comprehensive income | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 97,498 |  |  | - |  | US$ | 97,545 |  | US$ | 97,498 |  | US$ | 47 |  |  | - |  | US$ | - |
| Federal Home Loan Mortgage Corporation | 〃 | - | - |  | - |  | US$ | 11,872 |  |  | - |  | US$ | - |  |  | - |  | US$ | 11,654 |  | US$ | 11,120 |  | US$ | 534 |  |  | - |  | US$ | - |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 5,253 |  |  | - |  | US$ | 11,906 |  |  | - |  | US$ | 17,015 |  | US$ | 17,228 |  | US$ | (213 | ) |  | - |  | US$ | - |
| GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 2 | 〃 | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 93,686 |  |  | - |  | US$ | 93,420 |  | US$ | 93,686 |  | US$ | (266 | ) |  | - |  | US$ | - |
| Government National Mortgage Association | 〃 | - | - |  | - |  | US$ | 18,900 |  |  | - |  | US$ | 121,784 |  |  | - |  | US$ | 140,660 |  | US$ | 140,610 |  | US$ | 50 |  |  | - |  | US$ | - |
| Federal National Mortgage Association | 〃 | - | - |  | - |  | US$ | 8,394 |  |  | - |  | US$ | 89,440 |  |  | - |  | US$ | 97,826 |  | US$ | 97,829 |  | US$ | (3 | ) |  | - |  | US$ | - |
| Asset-backed securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Hyundai Auto Receivables Trust 2021-C | Financial assets at fair value through other comprehensive income | - | - |  | - |  | US$ | - |  |  | - |  | US$ | 10,998 |  |  | - |  | US$ | - |  | US$ | - |  | US$ | - |  |  | - |  | US$ | 10,922 |

Note 1: | The ending balance includes the realized gain/loss on equity investment, the amortization of premium/discount on bonds investments and other related adjustment.

Note 2: | To facilitate VisEra’s IPO in Taiwan, 39,501 thousand common shares of VisEra at a price of NT$240 were sold by TSMC and an increase of NT$8,406,282 thousand in capital surplus was recognized. TSMC’s shareholding in VisEra decreased from 87% to 73%. This disposal was accounted for as an equity transaction since the transaction did not change TSMC’s control over VisEra.

(Concluded)

- 85 -

TABLE 5

Taiwan Semiconductor Manufacturing Company Limited and Investees

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

FOR THE YEAR ENDED DECEMBER 31, 2021

(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 09, 2021 (Note) | $52,100,000 (Note) | Based on the terms in the purchase order | 85 counterparties(Note), including： | - | N/A | N/A | N/A | N/A | Price comparison and price negotiation | Manufacturing purpose | None
|  |  | ABB Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Accudevice Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Air Liquide Far Eastern 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. |  |  |  |  |  |  |  |
|  |  |  |  | Cica-Huntek Chemical Technology Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Confederate Technology Co., Ltd. |  |  |  |  |  |  |  |

(Continued)

- 86 -

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 |  |  |  | Da-Cin Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Desiccant Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Evergreen Steel Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Exyte Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Fortune Electric Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Fu Tsu Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Hantech Engineering Co., 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 |  |  |  |  |  |  |  |
|  |  |  |  | JG Environmental Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | JJmr-Clean-Air Solution Tech.Services Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Jusun Instruments Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Kedge Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Kinetics Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | L&K Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Lead-Fu Industrials Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Lee Ming Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Li Jin Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Mandartech Interiors Inc. |  |  |  |  |  |  |  |
|  |  |  |  | Marketech International Corp. |  |  |  |  |  |  |  |
|  |  |  |  | Mega Union Technology Incorporated |  |  |  |  |  |  |  |
|  |  |  |  | National Institute of Advanced Industrial Science & Technology |  |  |  |  |  |  |  |

(Continued)

- 87 -

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 |  |  |  | Organo Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Ovivo Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Pan Asia (Engineers & Constructors) Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Ruentex Engineering & Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | San Fu Chemical Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Schneider Electric Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Shihlin Electric & Engineering Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Siemens Limited |  |  |  |  |  |  |  |
|  |  |  |  | Solomon Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Swift Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Gleno Enterprise Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Obayashi Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Puritic Corp. |  |  |  |  |  |  |  |
|  |  |  |  | TASA Construction Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Techgo Industrial Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | 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. |  |  |  |  |  |  |  |
|  |  |  |  | Weltall Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Wholetech System Hitech Limited |  |  |  |  |  |  |  |
|  |  |  |  | Yangtech Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Yankey Engineering Co., Ltd. |  |  |  |  |  |  |  |

(Continued)

- 88 -

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 |  |  |  | Ying Pao Technology Inc. |  |  |  |  |  |  |  |
|  |  |  |  | Zhao-Cheng Corp. |  |  |  |  |  |  |  |
| Real estate | April 22, 2021 (Note) | $9,500,000 (Note) | Based on the terms in the purchase order | 70 counterparties(Note), including： | - | N/A | N/A | N/A | N/A | Price comparison and price negotiation | Manufacturing purpose | None
|  |  | J. Cypress Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | L&K Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Marketech International Corp. |  |  |  |  |  |  |  |
|  |  |  |  | Mega Union Technology Incorporated |  |  |  |  |  |  |  |
|  |  |  |  | Organo Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Puritic Corp. |  |  |  |  |  |  |  |
|  |  |  |  | Uangyih-Tech Industrial Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | United Integrated Services Co., Ltd. |  |  |  |  |  |  |  |
| Real estate | June 09, 2021 (Note) | 54,500,000 (Note) | Based on the terms in the purchase order | 101 counterparties(Note), including： | - | N/A | N/A | N/A | N/A | Price comparison and price negotiation | Manufacturing purpose | None
|  |  | ABB Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Accudevice Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Air Liquide Far Eastern 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. |  |  |  |  |  |  |  |

(Continued)

- 89 -

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 |  |  |  | Chien Kuo Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | China Steel Structure Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Chun Yuan Steel Industry Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Chung-Lin General Contractors, Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Cica-Huntek Chemical Technology Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Confederate Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Da-Cin Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Desiccant Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Evergreen Steel Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Exyte Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Fortune Electric Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Fu Tsu Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Hantech Engineering Co., 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 |  |  |  |  |  |  |  |
|  |  |  |  | JG Environmental Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | JJmr-Clean-Air Solution Tech.Services Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Jusun Instruments Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Kao Hsin Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Kedge Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Kinetics Technology Corporation |  |  |  |  |  |  |  |

(Continued)

- 90 -

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 |  |  |  | L&K Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Lead-Fu Industrials Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Lee Ming Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Mandartech Interiors Inc. |  |  |  |  |  |  |  |
|  |  |  |  | Marketech International Corp. |  |  |  |  |  |  |  |
|  |  |  |  | Mega Union Technology Incorporated |  |  |  |  |  |  |  |
|  |  |  |  | Organo Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Ovivo Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Pan Asia (Engineers & Constructors) Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Ruentex Engineering & Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | San Fu Chemical Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Schneider Electric Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Shihlin Electric & Engineering Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Siemens Limited |  |  |  |  |  |  |  |
|  |  |  |  | Solomon Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Swift Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Gleno Enterprise Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Obayashi Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Puritic Corp. |  |  |  |  |  |  |  |
|  |  |  |  | TASA Construction Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Techgo Industrial Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Trane Taiwan Distribution Limited |  |  |  |  |  |  |  |
|  |  |  |  | Trusval Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Tung Kang Steel Structure Corp. |  |  |  |  |  |  |  |
|  |  |  |  | Uangyih-Tech Industrial Co., Ltd. |  |  |  |  |  |  |  |

(Continued)

- 91 -

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 |  |  |  | Unelectra International Corp. |  |  |  |  |  |  |  |
|  |  |  |  | United Integrated Services Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Versum Materials Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Weltall Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Wholetech System Hitech Limited |  |  |  |  |  |  |  |
|  |  |  |  | Yangtech Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Yankey Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Ying Pao Technology Inc. |  |  |  |  |  |  |  |
|  |  |  |  | Zhao-Cheng Corp. |  |  |  |  |  |  |  |
| Real estate | August 10, 2021 (Note) | $168,000,000 (Note) | Based on the terms in the purchase order | 100 counterparties(Note), including： | - | N/A | N/A | N/A | N/A | Price comparison and price negotiation | Manufacturing purpose | None
|  |  | ABB Enterprise Software Inc. |  |  |  |  |  |  |  |
|  |  |  |  | ABB Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Accudevice Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Air Liquide Far Eastern Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Allied Supreme Corp. |  |  |  |  |  |  |  |
|  |  |  |  | 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. |  |  |  |  |  |  |  |

(Continued)

- 92 -

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 |  |  |  | China Steel Structure Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Chun Yuan Steel Industry Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Chung-Lin General Contractors, Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Cica-Huntek Chemical Technology Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Confederate Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | CTCI Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Da-Cin Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Desiccant Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Evergreen Steel Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Exyte Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Fortune Electric Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Fu Tsu Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Hantech Engineering Co., 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 |  |  |  |  |  |  |  |
|  |  |  |  | JG Environmental Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | JJmr-Clean-Air Solution Tech.Services Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Johnson Controls, Inc. |  |  |  |  |  |  |  |
|  |  |  |  | Jusun Instruments Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Kao Hsin Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Kedge Construction Co., Ltd. |  |  |  |  |  |  |  |

(Continued)

- 93 -

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 |  |  |  | Kinetics Technology 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 |  |  |  |  |  |  |  |
|  |  |  |  | OBR Cooling Towers, Inc. |  |  |  |  |  |  |  |
|  |  |  |  | Okland Construction Company, Inc. |  |  |  |  |  |  |  |
|  |  |  |  | Organo Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Ovivo Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Pan Asia (Engineers & Constructors) Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Propersys Corp. |  |  |  |  |  |  |  |
|  |  |  |  | Ruentex Engineering & Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | San Fu Chemical Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Schneider Electric Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Shihlin Electric & Engineering Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Siemens Limited |  |  |  |  |  |  |  |
|  |  |  |  | Solomon Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Swift Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Gleno Enterprise Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Obayashi Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Puritic Corp. |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Valqua Engineering International, Ltd. |  |  |  |  |  |  |  |

(Continued)

- 94 -

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 |  |  |  | TASA Construction Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Techgo Industrial 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. |  |  |  |  |  |  |  |
|  |  |  |  | Weltall Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Wholetech System Hitech Limited |  |  |  |  |  |  |  |
|  |  |  |  | Yangtech Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Yankey Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Ying Pao Technology Inc. |  |  |  |  |  |  |  |
|  |  |  |  | Zhao-Cheng Corp. |  |  |  |  |  |  |  |
| Real estate | November 09, 2021 (Note) | $55,600,000 (Note) | Based on the terms in the purchase order | 122 counterparties(Note), including： | - | N/A | N/A | N/A | N/A | Price comparison and price negotiation | Manufacturing purpose | None
|  |  | ABB Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Accudevice Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Air Liquide Far Eastern Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Allis Electric Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Am-Power Machine International Enterprise Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Atlas Copco Taiwan Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Atlas Technology Corp. |  |  |  |  |  |  |  |

(Continued)

- 95 -

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 |  |  |  | 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. |  |  |  |  |  |  |  |
|  |  |  |  | Cica-Huntek Chemical Technology Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Confederate Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Da-Cin Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Desiccant Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Evergreen Steel Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Exyte Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Fortune Electric Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Fu Tsu Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Hantech Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Hsieh Kun Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Hsinchu Science Park Bureau, Ministry of Science and Technology |  |  |  |  |  |  |  |
|  |  |  |  | Hueng Luei Process Industry Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Ingersoll-Rand Southeast Asia (Pte) Ltd. Taiwan Branch (Singapore) |  |  |  |  |  |  |  |
|  |  |  |  | J.C. Yang Architect and Associates |  |  |  |  |  |  |  |

(Continued)

- 96 -

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 |  |  |  | JG Environmental Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | JJmr-Clean-Air Solution Tech.Services Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Jusun Instruments Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Kajima Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Kao Hsin Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Kaohsiung City Government |  |  |  |  |  |  |  |
|  |  |  |  | Kedge Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Kikuyo-machi |  |  |  |  |  |  |  |
|  |  |  |  | Kinetics Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | L&K Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Lead-Fu Industrials Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Lee Ming Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Mandartech Interiors Inc. |  |  |  |  |  |  |  |
|  |  |  |  | Marketech International Corp. |  |  |  |  |  |  |  |
|  |  |  |  | Mega Union Technology Incorporated |  |  |  |  |  |  |  |
|  |  |  |  | Organo Technology Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Ovivo Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Pan Asia (Engineers & Constructors) Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Ruentex Engineering & Construction Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | San Fu Chemical Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Schneider Electric Taiwan Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Shihlin Electric & Engineering Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Siemens Limited |  |  |  |  |  |  |  |
|  |  |  |  | Solomon Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Swift Engineering Co., Ltd. |  |  |  |  |  |  |  |

(Continued)

- 97 -

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 |  |  |  | Taiwan Gleno Enterprise Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Obayashi Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Power Company |  |  |  |  |  |  |  |
|  |  |  |  | Taiwan Puritic Corp. |  |  |  |  |  |  |  |
|  |  |  |  | TASA Construction Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Techgo Industrial 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. |  |  |  |  |  |  |  |
|  |  |  |  | Weltall Technology Corporation |  |  |  |  |  |  |  |
|  |  |  |  | Wholetech System Hitech Limited |  |  |  |  |  |  |  |
|  |  |  |  | Yangtech Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Yankey Engineering Co., Ltd. |  |  |  |  |  |  |  |
|  |  |  |  | Ying Pao Technology Inc. |  |  |  |  |  |  |  |
|  |  |  |  | Zhao-Cheng Corp. |  |  |  |  |  |  |  |

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)

- 98 -

TABLE 6

Taiwan Semiconductor Manufacturing Company Limited and Investees

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

FOR THE YEAR ENDED DECEMBER 31, 2021

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

Company Name | Related Party | Nature of Relationships | Transaction Details | Abnormal Transaction | Notes/Accounts Payable or Receivable | Note
Purchases/ Sales | Amount (Foreign Currencies in Thousands) | % to Total | Payment Terms | Unit Price | Payment Terms | Ending Balance (Foreign Currencies in Thousands) | % to Total
TSMC | TSMC North America | Subsidiary | Sales | $ | 1,040,985,786 |  |  | 66 |  | Net 30 days from invoice date (Note) | - | (Note) | $ | 137,956,681 |  |  | 75 |  |
| GUC | Associate | Sales |  | 5,880,085 |  |  | - |  | Net 30 days from the end of the month of when invoice is issued | - | - |  | 391,647 |  |  | - |  |
| TSMC Nanjing | Subsidiary | Purchases |  | 27,070,065 |  |  | 22 |  | Net 30 days from the end of the month of when invoice is issued | - | - |  | (2,761,080 | ) |  | 6 |  |
| TSMC China | Subsidiary | Purchases |  | 21,321,353 |  |  | 17 |  | Net 30 days from the end of the month of when invoice is issued | - | - |  | (1,802,314 | ) |  | 4 |  |
| WaferTech | Indirect subsidiary | Purchases |  | 7,743,263 |  |  | 6 |  | Net 30 days from the end of the month of when invoice is issued | - | - |  | (732,533 | ) |  | 1 |  |
| SSMC | Associate | Purchases |  | 3,843,482 |  |  | 3 |  | Net 30 days from the end of the month of when invoice is issued | - | - |  | (349,211 | ) |  | 1 |  |
| VIS | Associate | Purchases |  | 3,726,305 |  |  | 3 |  | Net 30 days from the end of the month of when invoice is issued | - | - |  | (357,151 | ) |  | 1 |  |
TSMC North America | GUC | Associate of TSMC | Sales |  | 1,825,047 |  |  | - |  | Net 30 days from invoice date | - | - |  | 205,941 |  |  | - |  |
|  |  |  | (US$ | 65,319 | ) |  |  |  |  |  |  | (US$ | 7,442 | ) |  |  |  |
VisEra Tech | Xintec | Associate of TSMC | Sales |  | 750,373 |  |  | 8 |  | Net 60 days from the end of the month of when invoice is issued | - | - |  | 117,488 |  |  | 9 |  |

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

- 99 -

TABLE 7

Taiwan Semiconductor Manufacturing Company Limited and Investees

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

DECEMBER 31, 2021

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

Company Name | Related Party | Nature of Relationships | Ending Balance (Foreign Currencies in Thousands) | Turnover Days (Note 1) | Overdue | Amounts Received in Subsequent Period | Allowance for Bad Debts
Amount | Action Taken
TSMC | TSMC North America | Subsidiary | $ | 142,957,244 |  | 42 | $ | - |  | - | $ | - |  | $ | - |
| GUC | Associate |  | 391,647 |  | 22 |  | - |  | - |  | - |  |  | - |
TSMC North America | TSMC | Parent company | (US$ | 208,050 7,518 | ) | Note 2 | (US$ | 1,730 63 | ) | - | (US$ | 16,049 580 | ) |  | - |
| GUC | Associate of TSMC |  | 205,941 |  | 26 |  | 4,014 |  | - |  | 27,343 |  |  | - |
|  |  | (US$ | 7,442 | ) |  | (US$ | 145 | ) |  | (US$ | 988 | ) |  |  |
TSMC 3DIC | TSMC | Parent company |  | 219,982 |  | Note 2 |  | - |  | - |  | - |  |  | - |
|  |  | (JPY | 911,277 | ) |  |  |  |  |  |  |  |  |  |  |
TSMC China | TSMC Nanjing | The same parent company |  | 24,390,011 |  | Note 2 |  | - |  | - |  | - |  |  | - |
|  |  | (RMB | 5,622,280 | ) |  |  |  |  |  |  |  |  |  |  |
| TSMC | Parent company |  | 1,802,314 |  | 29 |  | - |  | - |  | - |  |  | - |
|  |  | (RMB | 415,462 | ) |  |  |  |  |  |  |  |  |  |  |
TSMC Nanjing | TSMC | Parent company |  | 2,761,080 |  | 31 |  | - |  | - |  | - |  |  | - |
|  |  | (RMB | 636,473 | ) |  |  |  |  |  |  |  |  |  |  |
VisEra Tech | Xintec | Associate of TSMC |  | 117,488 |  | 74 |  | - |  | - |  | - |  |  | - |
JASM | TSMC | Parent company |  | 1,389,861 |  | Note 2 |  | - |  | - |  | - |  |  | - |
|  |  | (JPY | 5,757,500 | ) |  |  |  |  |  |  |  |  |  |  |
TSMC Technology | TSMC | The ultimate parent of the Company | (US$ | 350,916 12,680 | ) | Note 2 |  | - |  | - |  | - |  |  | - |
WaferTech | TSMC | The ultimate parent of the Company | (US$ | 732,533 26,470 | ) | 34 |  | - |  | - |  | - |  |  | - |

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.

- 100 -

TABLE 8

Taiwan Semiconductor Manufacturing Company Limited and Investees

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

FOR THE YEAR ENDED DECEMBER 31, 2021

(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 December 31, 2021 | Net Income (Losses) of the Investee (Foreign Currencies in Thousands) | Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands) | Note
December 31, 2021 (Foreign Currencies in Thousands) | December 31, 2020 (Foreign Currencies in Thousands) | Shares (In Thousands) | Percentage of Ownership | Carrying Value (Foreign Currencies in Thousands)
TSMC | TSMC Global | Tortola, British Virgin Islands | Investment activities | $ | 355,162,309 |  | $ | 355,162,309 |  |  | 11 |  |  | 100 |  | $ | 374,639,406 |  | $ | 1,303,742 |  | $ | 1,303,742 |  | 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 |  |  | 54,968,185 |  |  | 1,804,174 |  |  | 1,804,174 |  | Subsidiary
| TSMC Arizona | Phoenix, Arizona, U.S.A. | Manufacturing, sales and testing of integrated circuits and other semiconductor devices |  | 21,643,300 |  |  | 855,599 |  |  | 770 |  |  | 100 |  |  | 16,667,696 |  |  | (4,810,127 | ) |  | (4,810,127 | ) | 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 |  |  | 10,613,127 |  |  | 11,819,588 |  |  | 3,342,414 |  | Associate
| SSMC | Singapore | Manufacturing and sales of integrated circuits and other semiconductor devices |  | 5,120,028 |  |  | 5,120,028 |  |  | 314 |  |  | 39 |  |  | 6,795,699 |  |  | 2,544,371 |  |  | 986,962 |  | Associate
| VisEra Tech | Hsin-Chu, Taiwan | Research, design, development, manufacturing, sales, packaging and test of color filter |  | 5,005,171 |  |  | 5,005,171 |  |  | 213,619 |  |  | 73 |  |  | 6,521,231 |  |  | 2,165,280 |  |  | 1,631,948 |  | Subsidiary
| TSMC North America | San Jose, California, U.S.A | Sales and marketing of integrated circuits and other semiconductor devices |  | 333,718 |  |  | 333,718 |  |  | 11,000 |  |  | 100 |  |  | 4,871,149 |  |  | 375,611 |  |  | 375,611 |  | 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 |  |  | 3,046,961 |  |  | 1,877,082 |  |  | 770,202 |  | Associate
| GUC | Hsin-Chu, Taiwan | Researching, developing, manufacturing, testing and marketing of integrated circuits |  | 386,568 |  |  | 386,568 |  |  | 46,688 |  |  | 35 |  |  | 1,484,683 |  |  | 1,460,149 |  |  | 508,706 |  | Associate
| JASM | Kumamoto, Japan | Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices |  | 1,416,921 |  |  | - |  |  | 58 |  |  | 100 |  |  | 1,383,554 |  |  | (6,426 | ) |  | (6,426 | ) | Subsidiary
| TSMC Europe | Amsterdam, the Netherlands | Customer service and supporting activities |  | 15,749 |  |  | 15,749 |  |  | - |  |  | 100 |  |  | 509,880 |  |  | 21,875 |  |  | 21,875 |  | Subsidiary
| TSMC JDC | Yokohama, Japan | Engineering support activities |  | 410,680 |  |  | 302,560 |  |  | 15 |  |  | 100 |  |  | 368,144 |  |  | 13,803 |  |  | 13,803 |  | Subsidiary
| VTAF III | Cayman Islands | Investing in technology start-up companies |  | 1,321,594 |  |  | 1,318,846 |  |  | - |  |  | 98 |  |  | 300,401 |  |  | (8,978 | ) |  | (8,798 | ) | Subsidiary
| Emerging Fund | Cayman Islands | Investing in technology start-up companies |  | 298,618 |  |  | - |  |  | - |  |  | 99.9 |  |  | 286,205 |  |  | (10,015 | ) |  | (10,005 | ) | Subsidiary
| TSMC 3DIC | Yokohama, Japan | Engineering support activities |  | 278,986 |  |  | - |  |  | 11 |  |  | 100 |  |  | 270,513 |  |  | 4,197 |  |  | 4,197 |  | Subsidiary
| TSMC Japan | Yokohama, Japan | Customer service and supporting activities |  | 83,760 |  |  | 83,760 |  |  | 6 |  |  | 100 |  |  | 132,411 |  |  | 4,662 |  |  | 4,662 |  | Subsidiary
| VTAF II | Cayman Islands | Investing in technology start-up companies |  | 260,300 |  |  | 260,300 |  |  | - |  |  | 98 |  |  | 112,320 |  |  | (1,073 | ) |  | (1,052 | ) | Subsidiary
| TSMC Korea | Seoul, Korea | Customer service and supporting activities |  | 13,656 |  |  | 13,656 |  |  | 80 |  |  | 100 |  |  | 40,857 |  |  | 2,802 |  |  | 2,802 |  | Subsidiary
TSMC Partners | TSMC Development | Delaware, U.S.A | Investing in companies involved in semiconductor manufacturing | (US$ | 16,242,944 586,939 | ) | (US$ | 16,242,944 586,939 | ) |  | - |  |  | 100 |  | (US$ | 30,557,431 1,104,193 | ) | (US$ | 1,521,812 54,475 | ) |  | Note2 |  | Subsidiary
| TSMC Technology | Delaware, U.S.A | Engineering support activities |  | 395,241 |  |  | 395,241 |  |  | - |  |  | 100 |  |  | 835,888 |  |  | 78,921 |  |  | Note2 |  | Subsidiary
|  |  |  | (US$ | 14,282 | ) | (US$ | 14,282 | ) |  |  |  |  |  |  | (US$ | 30,205 | ) | (US$ | 2,821 | ) |  |  |  |
| TSMC Canada | Ontario, Canada | Engineering support activities |  | 63,650 |  |  | 63,650 |  |  | 2,300 |  |  | 100 |  |  | 278,766 |  |  | 25,324 |  |  | Note2 |  | Subsidiary
|  |  |  | (US$ | 2,300 | ) | (US$ | 2,300 | ) |  |  |  |  |  |  | (US$ | 10,073 | ) | (US$ | 906 | ) |  |  |  |
VTAF III | Growth Fund | Cayman Islands | Investing in technology start-up companies |  | 72,057 |  |  | 69,289 |  |  | - |  |  | 100 |  |  | 219,604 |  |  | (1,217 | ) |  | Note2 |  | Subsidiary
|  |  |  | (US$ | 2,604 | ) | (US$ | 2,504 | ) |  |  |  |  |  |  | (US$ | 7,935 | ) | (US$ | (44 | )) |  |  |  |
| Mutual-Pak | New Taipei, Taiwan | Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID | (US$ | 44,094 1,593 | ) | (US$ | 44,094 1,593 | ) |  | 4,693 |  |  | 28 |  | (US$ | 22,948 829 | ) | (US$ | (18,466 (657 | ) )) |  | Note2 |  | Associate

(Continued)

- 101 -

Investor Company | Investee Company | Location | Main Businesses and Products | Original Investment Amount | Balance as of December 31, 2021 | Net Income (Losses) of the Investee (Foreign Currencies in Thousands) | Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands) | Note
December 31, 2021 (Foreign Currencies in Thousands) | December 31, 2020 (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$ | 5,153,719 186,230 | ) | $ (US$ | 1,456,072 52,123 | ) | 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)

- 102 -

TABLE 9

Taiwan Semiconductor Manufacturing Company Limited and Investees

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2021

(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, 2021 (US$ in Thousands) | Investment Flows | Accumulated Outflow of Investment from Taiwan as of December 31, 2021 (US$ in Thousands) | Net Income (Losses) of the Investee Company | Percentage of Ownership | Share of Profits/Losses | Carrying Amount as of December 31, 2021 | Accumulated Inward Remittance of Earnings as of December 31, 2021
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 | ) | $ | 8,555,130 |  |  | 100% |  | $ | 8,619,026 (Note2 | ) | $ | 73,470,628 |  | $ | - |
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 | ) |  | 12,283,446 |  |  | 100% |  |  | 12,283,460 (Note2 | ) |  | 46,159,494 |  |  | - |

Accumulated Investment in Mainland China as of December 31, 2021 (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 | ) | $ | 1,302,439,923 (Note3 | )

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

Note 2: | Amount was recognized based on the audited 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.

- 103 -

TABLE 1 0

Taiwan Semiconductor Manufacturing Company Limited

INFORMATION ON MAJOR SHAREHOLDERS

DECEMBER 31, 2021

Shareholders (Note) | Shares
Total Shares Owned | Ownership Percentage
ADR-Taiwan Semiconductor Manufacturing Company, Ltd. |  | 5,321,212,928 |  |  | 20.52% |
National Development Fund, Executive Yuan |  | 1,653,709,980 |  |  | 6.38% |

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

- 104 -

THE CONTENTS OF STATEMENTS OF major
accountING ITEMS

item |  | statement INDEX
Major Accounting Items in Assets, Liabilities and Equity |  |
Statement of Cash and Cash Equivalents |  | 1
Statement of Notes and Accounts Receivable, Net |  | 2
Statement of Receivables from Related Parties |  | 3
Statement of Inventories |  | 4
Statement of Changes in Investments Accounted for Using Equity Method |  | 5
Statement of Changes in Property, Plant and Equipment |  | Note 12
Statement of Changes in Accumulated Depreciation and Accumulated Impairment of Property, Plant and Equipment |  | Note 12
STATEMENT OF Changes in RIGHT-OF-USE ASSETS |  | 6
Statement of Changes in Intangible Assets |  | Note 14
Statement of Deferred Income Tax Assets / LIABILITIES |  | Note 23
Statement of Short-term Loans |  | 7
STATEMENT OF ACCOUNTS PAYABLES |  | 8
Statement of Payables to Related Parties |  | 9
Statement of Payables to Contractors and Equipment Suppliers |  | 10
STATEMENT OF LEASE LIABILITIES |  | 11
Statement of Accrued Expenses and Other Current Liabilities |  | 12
Statement of Bonds Payable |  | 13
Major Accounting Items in Profit or Loss |  |
Statement of net revEnue |  | 14
Statement of Cost of revEnue |  | 15
Statement of Operating Expenses |  | 16
Statement of Finance Costs |  | Note 21
Statement of Labor, Depreciation and Amortization by function |  | 17

- 105 -

STATEMENT 1

Taiwan Semiconductor Manufacturing Company Limited

Statement of Cash and cash Equivalents

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Item |  | Description |  | Amount
Cash |  |  |  |
Petty cash |  |  |  | $ | 340 |
Cash in banks |  |  |  |  |  |
Checking accounts and demand deposits |  |  |  |  | 30,289,920 |
Foreign currency deposits |  | Including US$1,859,092 thousand @27.674, JPY10,100,318 thousand @0.2414 and EUR12,664 thousand @31.46 |  |  | 54,285,143 |
Time deposits |  | From 2021.08.18 to 2022.04.28, interest rates at 0.25%-0.53%, including NT$238,382,057 thousand and US$2,620,000 thousand @27.674 |  |  | 310,887,937 |
Cash equivalents |  |  |  |  |  |
Repurchase agreements |  | Expired by 2022.01.21, interest rates at 0.34% |  |  | 830,901 |
Total |  |  |  | $ | 396,294,241 |

- 106 -

STATEMENT 2

Taiwan Semiconductor Manufacturing Company Limited

Statement of Notes and Accounts Receivable, Net

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Client Name |  | Amount
Client A |  | $ | 11,696,041 |
Client B |  |  | 4,626,876 |
Client C |  |  | 2,936,744 |
Others (Note) |  |  | 26,986,541 |
|  |  | 46,246,202 |
Less: Loss allowance |  |  | (345,905 | )
Total |  | $ | 45,900,297 |

Note: | The amount of individual client included in others does not exceed 5% of the account balance.

- 107 -

STATEMENT 3

Taiwan Semiconductor Manufacturing Company Limited

Statement of Receivables from Related Parties

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Client Name |  | Amount
TSMC North America |  | $ | 137,956,681 |
Others (Note) |  |  | 395,693 |
Total |  | $ | 138,352,374 |

N ote: | The amount of individual client included in others does not exceed 5% of the account balance.

- 108 -

STATEMENT 4

Taiwan Semiconductor Manufacturing Company Limited

Statement of Inventories

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

|  | Amount
Item |  | Cost |  | Net Realizable Value
Finished goods |  | $ | 32,290,346 |  |  | $ | 87,338,028 |
Work in process |  |  | 134,097,879 |  |  |  | 467,910,421 |
Raw materials |  |  | 10,368,446 |  |  |  | 10,368,446 |
Supplies and spare parts |  |  | 8,403,177 |  |  |  | 8,403,177 |
Total |  | $ | 185,159,848 |  |  | $ | 574,020,072 |

- 109 -

STATEMENT 5

Taiwan Semiconductor Manufacturing Company Limited

Statement of Changes in Investments Accounted for Using Equity Method

FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

|  |  |  |  |  |  |  |  |  |  |  |  |  | Increase |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | (Decrease) |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | in Using the |  |  |  |  |  |  |  | Market Value or |  |
|  | Balance, January 1, 2021 |  | Additions in Investment |  | Decrease in Investment |  | Equity Method |  | Balance, December 31, 2021 |  | Net Assets Value |  |
|  | Shares |  |  |  | Shares |  |  |  | Shares |  |  |  | Amount |  | Shares |  |  |  |  |  | Unit Price |  |  |  |
Investees |  | (In Thousands) |  | Amount |  | (In Thousands) |  | Amount |  | (In Thousands) |  | Amount |  | (Note 3) |  | (In Thousands) |  | % |  | Amount |  | (NT$) |  | Total Amount |  | Collateral
Stocks |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TSMC Global |  |  | 11 |  |  | $ | 382,229,039 |  |  |  | - |  |  | $ | - |  |  |  | - |  |  | $ | - |  |  | $ | (7,589,633 | ) |  |  | 11 |  |  |  | 100 |  |  | $ | 374,639,406 |  |  | $ | - |  |  | $ | 374,639,406 |  |  | Nil
TSMC Partners |  |  | 988,268 |  |  |  | 52,649,936 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,318,249 |  |  |  | 988,268 |  |  |  | 100 |  |  |  | 54,968,185 |  |  |  | - |  |  |  | 55,000,301 |  |  | Nil
TSMC Arizona |  |  | 30 |  |  |  | 842,745 |  |  |  | 740 |  |  |  | 20,787,702 |  |  |  | - |  |  |  | - |  |  |  | (4,962,751 | ) |  |  | 770 |  |  |  | 100 |  |  |  | 16,667,696 |  |  |  | - |  |  |  | 16,667,696 |  |  | Nil
VIS |  |  | 464,223 |  |  |  | 9,029,890 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,583,237 |  |  |  | 464,223 |  |  |  | 28 |  |  |  | 10,613,127 |  |  |  | 158 | (note1) |  |  | 73,347,312 |  |  | Nil
SSMC |  |  | 314 |  |  |  | 5,900,245 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 895,454 |  |  |  | 314 |  |  |  | 39 |  |  |  | 6,795,699 |  |  |  | - |  |  |  | 6,586,102 |  |  | Nil
VisEra Tech |  |  | 253,120 |  |  |  | 6,363,099 |  |  |  | - |  |  |  | - |  |  |  | 39,501 |  |  |  | 1,045,516 |  |  |  | 1,203,648 |  |  |  | 213,619 |  |  |  | 73 |  |  |  | 6,521,231 |  |  |  | 532 | (note2) |  |  | 113,749,981 |  |  | Nil
TSMC North America |  |  | 11,000 |  |  |  | 4,568,059 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 303,090 |  |  |  | 11,000 |  |  |  | 100 |  |  |  | 4,871,149 |  |  |  | - |  |  |  | 4,871,149 |  |  | Nil
Xintec |  |  | 111,282 |  |  |  | 2,554,123 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 492,838 |  |  |  | 111,282 |  |  |  | 41 |  |  |  | 3,046,961 |  |  |  | 143 | (note1) |  |  | 15,913,315 |  |  | Nil
GUC |  |  | 46,688 |  |  |  | 1,328,620 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 156,063 |  |  |  | 46,688 |  |  |  | 35 |  |  |  | 1,484,683 |  |  |  | 586 | (note1) |  |  | 27,359,085 |  |  | Nil
JASM |  |  | - |  |  |  | - |  |  |  | 58 |  |  |  | 1,416,921 |  |  |  | - |  |  |  | - |  |  |  | (33,367 | ) |  |  | 58 |  |  |  | 100 |  |  |  | 1,383,554 |  |  |  | - |  |  |  | 1,383,554 |  |  | Nil
TSMC Europe |  |  | - |  |  |  | 537,737 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (27,857 | ) |  |  | - |  |  |  | 100 |  |  |  | 509,880 |  |  |  | - |  |  |  | 509,880 |  |  | Nil
TSMC JDC |  |  | 11 |  |  |  | 292,266 |  |  |  | 4 |  |  |  | 108,120 |  |  |  | - |  |  |  | - |  |  |  | (32,242 | ) |  |  | 15 |  |  |  | 100 |  |  |  | 368,144 |  |  |  | - |  |  |  | 368,144 |  |  | Nil
TSMC 3DIC |  |  | - |  |  |  | - |  |  |  | 11 |  |  |  | 278,986 |  |  |  | - |  |  |  | - |  |  |  | (8,473 | ) |  |  | 11 |  |  |  | 100 |  |  |  | 270,513 |  |  |  | - |  |  |  | 270,513 |  |  | Nil
TSMC Japan |  |  | 6 |  |  |  | 144,784 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (12,373 | ) |  |  | 6 |  |  |  | 100 |  |  |  | 132,411 |  |  |  | - |  |  |  | 132,411 |  |  | Nil
TSMC Korea |  |  | 80 |  |  |  | 42,395 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1,538 | ) |  |  | 80 |  |  |  | 100 |  |  |  | 40,857 |  |  |  | - |  |  |  | 40,857 |  |  | Nil
Subtotal |  |  |  |  |  |  | 466,482,938 |  |  |  |  |  |  |  | 22,591,729 |  |  |  |  |  |  |  | 1,045,516 |  |  |  | (5,715,655 | ) |  |  |  |  |  |  |  |  |  |  | 482,313,496 |  |  |  |  |  |  |  | 690,839,706 |  |  |
Capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
TSMC China |  |  | - |  |  |  | 64,243,766 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 9,226,862 |  |  |  | - |  |  |  | 100 |  |  |  | 73,470,628 |  |  |  | - |  |  |  | 73,690,307 |  |  | Nil
TSMC Nanjing |  |  | - |  |  |  | 33,573,482 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 12,586,012 |  |  |  | - |  |  |  | 100 |  |  |  | 46,159,494 |  |  |  | - |  |  |  | 46,217,112 |  |  | Nil
VTAF III |  |  | - |  |  |  | 214,881 |  |  |  | - |  |  |  | 2,748 |  |  |  | - |  |  |  | - |  |  |  | 82,772 |  |  |  | - |  |  |  | 98 |  |  |  | 300,401 |  |  |  | - |  |  |  | 277,098 |  |  | Nil
Emerging Fund |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 298,618 |  |  |  | - |  |  |  | - |  |  |  | (12,413 | ) |  |  | - |  |  |  | 99.9 |  |  |  | 286,205 |  |  |  | - |  |  |  | 286,205 |  |  | Nil
VTAF II |  |  | - |  |  |  | 82,441 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 29,879 |  |  |  | - |  |  |  | 98 |  |  |  | 112,320 |  |  |  | - |  |  |  | 106,074 |  |  | Nil
Subtotal |  |  |  |  |  |  | 98,114,570 |  |  |  |  |  |  |  | 301,366 |  |  |  |  |  |  |  | - |  |  |  | 21,913,112 |  |  |  |  |  |  |  |  |  |  |  | 120,329,048 |  |  |  |  |  |  |  | 120,576,796 |  |  |
Total |  |  |  |  |  | $ | 564,597,508 |  |  |  |  |  |  | $ | 22,893,095 |  |  |  |  |  |  | $ | 1,045,516 |  |  | $ | 16,197,457 |  |  |  |  |  |  |  |  |  |  | $ | 602,642,544 |  |  |  |  |  |  | $ | 811,416,502 |  |  |

Note 1: | The unit price is calculated by closing price of the Taipei Exchange or the TWSE as of December 30, 2021.

Note 2: | The unit price is calculated by average price of the Taipei Exchange as of December 30, 2021.

Note 3: | Mainly including share of profit or loss of subsidiaries and associates, share of other comprehensive income of subsidiaries and associates, cash dividends received from subsidiaries and associates, etc.

- 110 -

STATEMENT 6

Taiwan Semiconductor Manufacturing Company Limited

Statement of CHANGE IN RIGHT-OF-USE ASSETS

FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Item |  | Land |  | Buildings |  | Office Equipment |  | Total |  | Remark
Cost |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2021 |  | $ | 27,100,250 |  |  | $ | 520,395 |  |  | $ | 41,779 |  |  | $ | 27,662,424 |  |  |
Additions |  |  | 6,461,764 |  |  |  | 579,868 |  |  |  | 12,183 |  |  |  | 7,053,815 |  |  |
Deductions |  |  | (378 | ) |  |  | (85,939 | ) |  |  | (7,568 | ) |  |  | (93,885 | ) |  |
Balance at December 31, 2021 |  | $ | 33,561,636 |  |  | $ | 1,014,324 |  |  | $ | 46,394 |  |  | $ | 34,622,354 |  |  |
Accumulated depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1, 2021 |  |  | 2,225,660 |  |  |  | 237,309 |  |  |  | 14,628 |  |  |  | 2,477,597 |  |  |
Additions |  |  | 1,810,555 |  |  |  | 203,006 |  |  |  | 15,092 |  |  |  | 2,028,653 |  |  |
Deductions |  |  | (367 | ) |  |  | - |  |  |  | (6,581 | ) |  |  | (6,948 | ) |  |
Balance at December 31, 2021 |  | $ | 4,035,848 |  |  | $ | 440,315 |  |  | $ | 23,139 |  |  | $ | 4,499,302 |  |  |
Carrying amounts at December 31, 2021 |  | $ | 29,525,788 |  |  | $ | 574,009 |  |  | $ | 23,255 |  |  | $ | 30,123,052 |  |  |

- 111 -

STATEMENT 7

Taiwan Semiconductor Manufacturing Company Limited

Statement of Short-term Loans

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Type |  | Balance, End of Year |  | Contract Period |  | Range of Interest Rates (%) |  | Loan Commitments |  | Collateral |  | Remark
Unsecured loans |  | $ | 114,921,333 |  |  | 2021.08.10-2022.06.28 |  | (0.73)-0 |  | EUR4,630,000 |  | Nil |  | -
|  |  |  |  |  |  |  |  |  | USD3,200,000 |  |  |  |

.

- 112 -

STATEMENT 8

Taiwan Semiconductor Manufacturing Company Limited

Statement of ACCOUNTS Payables

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Accounts payables was NT$41,204,422 thousands. The amount of individual vendor does not exceed 5% of the account balance.

- 113 -

STATEMENT 9

Taiwan Semiconductor Manufacturing Company Limited

Statement of Payables to Related Parties

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Vendor Name |  | Amount
TSMC Nanjing |  | $ | 2,761,080 |
TSMC China |  |  | 1,802,314 |
WaferTech |  |  | 732,533 |
Xintec |  |  | 725,261 |
Others (Note) |  |  | 1,666,485 |
Total |  | $ | 7,687,673 |

Note: | The amount of individual vendor in others does not exceed 5% of the account balance.

- 114 -

STATEMENT 10

Taiwan Semiconductor Manufacturing Company Limited

Statement of Payables to Contractors and Equipment Suppliers

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Vendor Name |  |  |  | Amount
Vendor A |  |  |  | $ | 34,634,124 |
Vendor B |  |  |  |  | 13,889,632 |
Vendor C |  |  |  |  | 12,926,999 |
Vendor D |  |  |  |  | 8,915,250 |
Vendor E |  |  |  |  | 7,008,676 |
Others (Note) |  |  |  |  | 58,837,604 |
Total |  |  |  | $ | 136,212,285 |

Note: | The amount of individual vendor included in others does not exceed 5% of the account balance.

- 115 -

STATEMENT 11

Taiwan Semiconductor Manufacturing Company Limited

Statement of LEASE LIABILITIES

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Item |  | Description |  | Lease Term |  | Discount Rate (%) |  | Balance, End of Year
Land |  | Mainly for the use of plants and offices |  | 2 to 22 years |  | 0.39-0.94 |  | $ | 19,717,472 |
Buildings |  | Mainly for the use of offices |  | 1 to 6 years |  | 0.39-0.71 |  |  | 592,082 |
Office equipment |  | For operation use |  | 2 to 4 years |  | 0.28-0.69 |  |  | 23,922 |
|  |  |  |  |  |  |  |  | 20,333,476 |
Less: Current portion |  |  |  |  |  |  |  |  | (1,591,153 | )
Noncurrent portion |  |  |  |  |  |  |  | $ | 18,742,323 |

- 116 -

STATEMENT 12

Taiwan Semiconductor Manufacturing Company Limited

Statement of Accrued Expenses and Other Current Liabilities

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Item |  | Amount
Refund liability |  | $ | 39,493,180 |
Contract liabilities |  |  | 33,951,838 |
Temporary receipts from customers |  |  | 30,612,702 |
Others (Note) |  |  | 37,437,707 |
Total |  | $ | 141,495,427 |

Note: | The amount of each item in others does not exceed 5% of the account balance.

- 117 -

STATEMENT 13

Taiwan Semiconductor Manufacturing Company Limited

Statement of Bonds Payable

DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

|  |  |  |  |  |  |  |  |  | Amount |  |  |  |
|  |  |  |  |  | Interest |  | Coupon |  |  |  | Repayment |  | Balance, |  | Premiums |  |  |  | Unamortized |  |
Bonds Name |  | Trustee |  | Issuance Date |  | Payment Date |  | Rate (%) |  | Total Amount |  | Paid |  | End of Year |  | (Discounts) |  | Carrying Value |  | Repayment |  | Collateral
Domestic unsecured bonds-101-3 |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2012.10.09 |  | On 10.09 annually |  | 1.53 |  | $ | 4,400,000 |  |  | $ | - |  |  | $ | 4,400,000 |  |  | $ | - |  |  | $ | 4,400,000 |  |  | Bullet repayment |  | Nil
Domestic unsecured bonds-101-4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2013.01.04 |  | On 01.04 annually |  | 1.49 |  |  | 3,000,000 |  |  |  | - |  |  |  | 3,000,000 |  |  |  | - |  |  |  | 3,000,000 |  |  | Bullet repayment |  | Nil
Domestic unsecured bonds-102-1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2013.02.06 |  | On 02.06 annually |  | 1.50 |  |  | 3,600,000 |  |  |  | - |  |  |  | 3,600,000 |  |  |  | - |  |  |  | 3,600,000 |  |  | Bullet repayment |  | Nil
Domestic unsecured bonds-102-2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2013.07.16 |  | On 07.16 annually |  | 1.70 |  |  | 3,500,000 |  |  |  | - |  |  |  | 3,500,000 |  |  |  | - |  |  |  | 3,500,000 |  |  | Bullet repayment |  | Nil
Domestic unsecured bonds-102-4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-D |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2013.09.25 |  | On 09.25 annually |  | 1.85 |  |  | 2,600,000 |  |  |  | 2,600,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  | Bullet repayment |  | Nil
-E |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2013.09.25 |  | On 09.25 annually |  | 2.05 |  |  | 5,400,000 |  |  |  | - |  |  |  | 5,400,000 |  |  |  | - |  |  |  | 5,400,000 |  |  | Bullet repayment |  | Nil
-F |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2013.09.25 |  | On 09.25 annually |  | 2.10 |  |  | 2,600,000 |  |  |  | - |  |  |  | 2,600,000 |  |  |  | - |  |  |  | 2,600,000 |  |  | Bullet repayment |  | Nil
Domestic unsecured bonds-109-1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.03.23 |  | On 03.23 annually |  | 0.58 |  |  | 3,000,000 |  |  |  | - |  |  |  | 3,000,000 |  |  |  | (2,019 | ) |  |  | 2,997,981 |  |  | Bullet repayment |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.03.23 |  | On 03.23 annually |  | 0.62 |  |  | 10,500,000 |  |  |  | - |  |  |  | 10,500,000 |  |  |  | (8,182 | ) |  |  | 10,491,818 |  |  | Bullet repayment |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.03.23 |  | On 03.23 annually |  | 0.64 |  |  | 10,500,000 |  |  |  | - |  |  |  | 10,500,000 |  |  |  | (9,008 | ) |  |  | 10,490,992 |  |  | Bullet repayment |  | Nil
Domestic unsecured bonds-109-2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.04.15 |  | On 04.15 annually |  | 0.52 |  |  | 5,900,000 |  |  |  | - |  |  |  | 5,900,000 |  |  |  | (3,994 | ) |  |  | 5,896,006 |  |  | Bullet repayment |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.04.15 |  | On 04.15 annually |  | 0.58 |  |  | 10,400,000 |  |  |  | - |  |  |  | 10,400,000 |  |  |  | (8,078 | ) |  |  | 10,391,922 |  |  | Bullet repayment |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.04.15 |  | On 04.15 annually |  | 0.60 |  |  | 5,300,000 |  |  |  | - |  |  |  | 5,300,000 |  |  |  | (4,522 | ) |  |  | 5,295,478 |  |  | Bullet repayment |  | Nil
Domestic unsecured bonds-109-3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.05.29 |  | On 05.29 annually |  | 0.55 |  |  | 4,500,000 |  |  |  | - |  |  |  | 4,500,000 |  |  |  | (3,215 | ) |  |  | 4,496,785 |  |  | Bullet repayment |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.05.29 |  | On 05.29 annually |  | 0.60 |  |  | 7,500,000 |  |  |  | - |  |  |  | 7,500,000 |  |  |  | (6,066 | ) |  |  | 7,493,934 |  |  | Bullet repayment |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.05.29 |  | On 05.29 annually |  | 0.64 |  |  | 2,400,000 |  |  |  | - |  |  |  | 2,400,000 |  |  |  | (2,118 | ) |  |  | 2,397,882 |  |  | Bullet repayment |  | Nil
Domestic unsecured bonds-109-4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.07.14 |  | On 07.14 annually |  | 0.58 |  |  | 5,700,000 |  |  |  | - |  |  |  | 5,700,000 |  |  |  | (4,031 | ) |  |  | 5,695,969 |  |  | Two equal installments in last two years |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.07.14 |  | On 07.14 annually |  | 0.65 |  |  | 6,300,000 |  |  |  | - |  |  |  | 6,300,000 |  |  |  | (5,117 | ) |  |  | 6,294,883 |  |  | Two equal installments in last two years |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.07.14 |  | On 07.14 annually |  | 0.67 |  |  | 1,900,000 |  |  |  | - |  |  |  | 1,900,000 |  |  |  | (1,689 | ) |  |  | 1,898,311 |  |  | Two equal installments in last two years |  | Nil
Domestic unsecured bonds-109-5 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.09.03 |  | On 09.03 annually |  | 0.50 |  |  | 4,800,000 |  |  |  | - |  |  |  | 4,800,000 |  |  |  | (3,533 | ) |  |  | 4,796,467 |  |  | Two equal installments in last two years |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.09.03 |  | On 09.03 annually |  | 0.58 |  |  | 8,000,000 |  |  |  | - |  |  |  | 8,000,000 |  |  |  | (6,637 | ) |  |  | 7,993,363 |  |  | Two equal installments in last two years |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.09.03 |  | On 09.03 annually |  | 0.60 |  |  | 2,800,000 |  |  |  | - |  |  |  | 2,800,000 |  |  |  | (2,517 | ) |  |  | 2,797,483 |  |  | Two equal installments in last two years |  | Nil
Domestic unsecured bonds-109-6 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.12.02 |  | On 12.02 annually |  | 0.40 |  |  | 1,600,000 |  |  |  | - |  |  |  | 1,600,000 |  |  |  | (1,380 | ) |  |  | 1,598,620 |  |  | Two equal installments in last two years |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.12.02 |  | On 12.02 annually |  | 0.44 |  |  | 5,600,000 |  |  |  | - |  |  |  | 5,600,000 |  |  |  | (5,285 | ) |  |  | 5,594,715 |  |  | Two equal installments in last two years |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.12.02 |  | On 12.02 annually |  | 0.48 |  |  | 4,800,000 |  |  |  | - |  |  |  | 4,800,000 |  |  |  | (4,817 | ) |  |  | 4,795,183 |  |  | Two equal installments in last two years |  | Nil
Domestic unsecured bonds-109-7 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.12.29 |  | On 12.29 annually |  | 0.36 |  |  | 1,900,000 |  |  |  | - |  |  |  | 1,900,000 |  |  |  | (1,529 | ) |  |  | 1,898,471 |  |  | Two equal installments in last two years |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.12.29 |  | On 12.29 annually |  | 0.41 |  |  | 10,200,000 |  |  |  | - |  |  |  | 10,200,000 |  |  |  | (8,920 | ) |  |  | 10,191,080 |  |  | Two equal installments in last two years |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2020.12.29 |  | On 12.29 annually |  | 0.45 |  |  | 6,400,000 |  |  |  | - |  |  |  | 6,400,000 |  |  |  | (5,930 | ) |  |  | 6,394,070 |  |  | Two equal installments in last two years |  | Nil
Domestic US$ unsecured bonds-109-1 |  | Mega International Commercial Bank Co., Ltd. |  | 2020.09.22 |  | On 09.22 annually |  | 2.70 |  |  | 27,674,000 |  |  |  | - |  |  |  | 27,674,000 |  |  |  | (28,207 | ) |  |  | 27,645,793 |  |  | Bullet repayment (callable on the 5th anniversary of the issue date and every anniversary thereafter) |  | Nil
Domestic unsecured bonds-110-1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.03.30 |  | On 03.30 annually |  | 0.50 |  |  | 4,800,000 |  |  |  | - |  |  |  | 4,800,000 |  |  |  | (4,202 | ) |  |  | 4,795,798 |  |  | Bullet repayment |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.03.30 |  | On 03.30 annually |  | 0.55 |  |  | 11,400,000 |  |  |  | - |  |  |  | 11,400,000 |  |  |  | (10,483 | ) |  |  | 11,389,517 |  |  | Bullet repayment |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.03.30 |  | On 03.30 annually |  | 0.60 |  |  | 4,900,000 |  |  |  | - |  |  |  | 4,900,000 |  |  |  | (4,673 | ) |  |  | 4,895,327 |  |  | Bullet repayment |  | Nil

(Continued)

- 118 -

|  |  |  |  |  |  |  |  |  | Amount |  |  |  |
|  |  |  |  |  | Interest |  | Coupon |  |  |  | Repayment |  | Balance, |  | Premiums |  |  |  | Unamortized |  |
Bonds Name |  | Trustee |  | Issuance Date |  | Payment Date |  | Rate (%) |  | Total Amount |  | Paid |  | End of Year |  | (Discounts) |  | Carrying Value |  | Repayment |  | Collateral
Domestic unsecured bonds-110-2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.05.03 |  | On 05.03 annually |  | 0.50 |  | $ | 5,200,000 |  |  | $ | - |  |  | $ | 5,200,000 |  |  | $ | (4,662 | ) |  | $ | 5,195,338 |  |  | Bullet repayment |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.05.03 |  | On 05.03 annually |  | 0.58 |  |  | 8,400,000 |  |  |  | - |  |  |  | 8,400,000 |  |  |  | (7,858 | ) |  |  | 8,392,142 |  |  | Bullet repayment |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.05.03 |  | On 05.03 annually |  | 0.65 |  |  | 5,600,000 |  |  |  | - |  |  |  | 5,600,000 |  |  |  | (5,406 | ) |  |  | 5,594,594 |  |  | Bullet repayment |  | Nil
Domestic unsecured bonds-110-3 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.06.25 |  | On 06.25 annually |  | 0.52 |  |  | 6,900,000 |  |  |  | - |  |  |  | 6,900,000 |  |  |  | (6,374 | ) |  |  | 6,893,626 |  |  | Bullet repayment |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.06.25 |  | On 06.25 annually |  | 0.58 |  |  | 7,900,000 |  |  |  | - |  |  |  | 7,900,000 |  |  |  | (7,539 | ) |  |  | 7,892,461 |  |  | Bullet repayment |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.06.25 |  | On 06.25 annually |  | 0.65 |  |  | 4,900,000 |  |  |  | - |  |  |  | 4,900,000 |  |  |  | (4,788 | ) |  |  | 4,895,212 |  |  | Bullet repayment |  | Nil
Domestic unsecured bonds-110-4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.08.19 |  | On 08.19 annually |  | 0.485 |  |  | 4,000,000 |  |  |  | - |  |  |  | 4,000,000 |  |  |  | (3,702 | ) |  |  | 3,996,298 |  |  | Bullet repayment |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.08.19 |  | On 08.19 annually |  | 0.50 |  |  | 8,000,000 |  |  |  | - |  |  |  | 8,000,000 |  |  |  | (7,549 | ) |  |  | 7,992,451 |  |  | Bullet repayment |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.08.19 |  | On 08.19 annually |  | 0.55 |  |  | 5,400,000 |  |  |  | - |  |  |  | 5,400,000 |  |  |  | (5,212 | ) |  |  | 5,394,788 |  |  | Bullet repayment |  | Nil
-D |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.08.19 |  | On 08.19 annually |  | 0.62 |  |  | 4,200,000 |  |  |  | - |  |  |  | 4,200,000 |  |  |  | (4,124 | ) |  |  | 4,195,876 |  |  | Bullet repayment |  | Nil
Domestic US$ unsecured bonds-110-5 |  | Mega International Commercial Bank Co., Ltd. |  | 2021.09.23 |  | On 09.23 annually |  | 3.10 |  |  | 27,674,000 |  |  |  | - |  |  |  | 27,674,000 |  |  |  | (28,357 | ) |  |  | 27,645,643 |  |  | Bullet repayment (callable on the 5th anniversary of the issue date and every anniversary thereafter) |  | Nil
Domestic unsecured bonds-110-6 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.10.05 |  | On 10.05 annually |  | 0.535 |  |  | 3,200,000 |  |  |  | - |  |  |  | 3,200,000 |  |  |  | (3,100 | ) |  |  | 3,196,900 |  |  | Bullet repayment |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.10.05 |  | On 10.05 annually |  | 0.54 |  |  | 6,900,000 |  |  |  | - |  |  |  | 6,900,000 |  |  |  | (6,718 | ) |  |  | 6,893,282 |  |  | Bullet repayment |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.10.05 |  | On 10.05 annually |  | 0.60 |  |  | 4,600,000 |  |  |  | - |  |  |  | 4,600,000 |  |  |  | (4,545 | ) |  |  | 4,595,455 |  |  | Bullet repayment |  | Nil
-D |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.10.05 |  | On 10.05 annually |  | 0.62 |  |  | 1,600,000 |  |  |  | - |  |  |  | 1,600,000 |  |  |  | (1,600 | ) |  |  | 1,598,400 |  |  | Bullet repayment |  | Nil
Domestic unsecured bonds-110-7 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
-A |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.12.09 |  | On 12.09 annually |  | 0.65 |  |  | 7,700,000 |  |  |  | - |  |  |  | 7,700,000 |  |  |  | (7,782 | ) |  |  | 7,692,218 |  |  | Bullet repayment |  | Nil
-B |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.12.09 |  | On 12.09 annually |  | 0.675 |  |  | 3,500,000 |  |  |  | - |  |  |  | 3,500,000 |  |  |  | (3,543 | ) |  |  | 3,496,457 |  |  | Bullet repayment |  | Nil
-C |  | Taipei Fubon Commercial Bank Co., Ltd. |  | 2021.12.09 |  | On 12.09 annually |  | 0.72 |  |  | 5,500,000 |  |  |  | - |  |  |  | 5,500,000 |  |  |  | (5,580 | ) |  |  | 5,494,420 |  |  | Bullet repayment |  | Nil
TOTAL |  |  |  |  |  |  |  |  |  | $ | 315,048,0000 |  |  | $ | 2,600,000 |  |  | $ | 312,448,000 |  |  | $ | (264,591 | ) |  |  | 312,183,409 |  |  |  |  |
Less: current portion |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (4,400,000 | ) |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 307,783,409 |  |  |  |  |

(Concluded)

- 119 -

STATEMENT 14

Taiwan Semiconductor Manufacturing Company Limited

Statement of NET REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Item |  | Shipments (Piece) (Note) |  | Amount
Wafer |  | 14,178,630 |  | $ | 1,402,118,668 |
Other |  |  |  |  | 172,627,213 |
Net revenue |  |  |  | $ | 1,574,745,881 |

Note: | 12-inch equivalent wafers.

- 120 -

STATEMENT 15

Taiwan Semiconductor Manufacturing Company Limited

Statement of Cost of Revenue

FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Item |  | Amount
Raw materials used |  |
Balance, beginning of year |  | $ | 13,758,417 |
Raw material purchased |  |  | 56,415,699 |
Raw materials, end of year |  |  | (10,368,446 | )
Transferred to manufacturing or operating expenses |  |  | (10,981,143 | )
Others |  |  | (200,555 | )
Subtotal |  |  | 48,623,972 |
Direct labor |  |  | 18,715,561 |
Manufacturing expenses |  |  | 747,716,382 |
Manufacturing cost |  |  | 815,055,915 |
Work in process, beginning of year |  |  | 88,575,222 |
Work in process, end of year |  |  | (134,097,879 | )
Transferred to manufacturing or operating expenses |  |  | (37,978,640 | )
Cost of finished goods |  |  | 731,554,618 |
Finished goods, beginning of year |  |  | 21,338,980 |
Finished goods purchased |  |  | 66,032,066 |
Finished goods, end of year |  |  | (32,290,346 | )
Transferred to manufacturing or operating expenses |  |  | (19,492,776 | )
Scrapped |  |  | (197,224 | )
Subtotal |  |  | 766,945,318 |
Others |  |  | 19,171,526 |
Total |  | $ | 786,116,844 |

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STATEMENT 16

Taiwan Semiconductor Manufacturing Company Limited

Statement of Operating Expenses

FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Item |  | Research and Development Expenses |  | General and Administrative Expenses |  | Selling Expenses
Payroll and related expense |  | $ | 42,226,907 |  |  | $ | 11,638,789 |  |  | $ | 3,023,857 |
Consumables |  |  | 36,331,182 |  |  |  | 129,888 |  |  |  | 15 |
Depreciation expense |  |  | 25,427,064 |  |  |  | 1,714,495 |  |  |  | 35,087 |
Repair and maintenance expense |  |  | 5,853,864 |  |  |  | 1,648,596 |  |  |  | 2,372 |
Donation expense |  |  | 5,000 |  |  |  | 4,376,018 |  |  |  | - |
Management fees of the Science Park Administration |  |  | - |  |  |  | 2,928,361 |  |  |  | - |
Patents |  |  | - |  |  |  | 2,352,979 |  |  |  | - |
Commission |  |  | - |  |  |  | - |  |  |  | 982,988 |
Others (Note) |  |  | 13,573,258 |  |  |  | 6,178,474 |  |  |  | 238,563 |
Total |  | $ | 123,417,275 |  |  | $ | 30,967,600 |  |  | $ | 4,282,882 |

Note: | The amount of each item in others does not exceed 5% of the account balance.

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STATEMENT 17

Taiwan Semiconductor Manufacturing Company Limited

Statement of Labor, Depreciation and Amortization BY FUNCTION

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

|  | Year Ended December 31, 2021 |  | Year Ended December 31, 2020
|  |  |  |  |  | Classified as |  |  |  |  |  |  |  | Classified as |  |
|  |  |  |  |  | Other |  |  |  |  |  |  |  | Other |  |
|  |  |  | Classified as |  | Operating |  |  |  |  |  | Classified as |  | Operating |  |
|  | Classified as |  | Operating |  | Income |  |  |  | Classified as |  | Operating |  | Income |  |
|  | Cost of Revenue |  | Expenses |  | and Expenses |  | Total |  | Cost of Revenue |  | Expenses |  | and Expenses |  | Total
Labor cost |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salary and bonus |  | $ | 81,828,800 |  |  | $ | 51,640,741 |  |  | $ | - |  |  | $ | 133,469,541 |  |  | $ | 69,338,762 |  |  | $ | 45,256,603 |  |  | $ | - |  |  | $ | 114,595,365 |
Labor and health insurance |  |  | 4,214,578 |  |  |  | 2,511,734 |  |  |  | - |  |  |  | 6,726,312 |  |  |  | 3,237,054 |  |  |  | 2,161,319 |  |  |  | - |  |  |  | 5,398,373 |
Pension |  |  | 2,084,604 |  |  |  | 1,135,950 |  |  |  | - |  |  |  | 3,220,554 |  |  |  | 1,551,256 |  |  |  | 962,997 |  |  |  | - |  |  |  | 2,514,253 |
Board compensation |  |  | - |  |  |  | 507,304 |  |  |  | - |  |  |  | 507,304 |  |  |  | - |  |  |  | 525,853 |  |  |  | - |  |  |  | 525,853 |
Others |  |  | 2,098,074 |  |  |  | 1,093,824 |  |  |  | - |  |  |  | 3,191,898 |  |  |  | 1,736,977 |  |  |  | 1,031,341 |  |  |  | - |  |  |  | 2,768,318 |
|  | $ | 90,226,056 |  |  | $ | 56,889,553 |  |  | $ | - |  |  | $ | 147,115,609 |  |  | $ | 75,864,049 |  |  | $ | 49,938,113 |  |  | $ | - |  |  | $ | 125,802,162 |
Depreciation |  | $ | 375,608,062 |  |  | $ | 27,176,646 |  |  | $ | 146,549 |  |  | $ | 402,931,257 |  |  | $ | 288,762,450 |  |  | $ | 24,585,627 |  |  | $ | 31,609 |  |  | $ | 313,379,686 |
Amortization |  | $ | 5,510,463 |  |  | $ | 2,590,267 |  |  | $ | - |  |  | $ | 8,100,730 |  |  | $ | 4,732,478 |  |  | $ | 2,315,216 |  |  | $ | - |  |  | $ | 7,047,694 |

Note 1: | As of December 31, 2021 and 2020, the Company had 54,193 and 47,917 employees, respectively. There were both 9 non-employee directors.

Note 2: | Average labor cost for the years ended December 31, 2021 and 2020 were NT$2,706 thousand and 2,615 thousand, respectively.

Note 3: | Average salary and bonus for the years ended December 31, 2021 and 2020 were NT$ 2,463 thousand and 2,392 thousand, respectively. The average salary and bonus increased by 2.97% year over year.

Note 4: | The Company did not have supervisors for the years ended December 31, 2021 and 2020. Therefore, there was no compensation to the supervisor.

Note 5: | The Company’s compensation policies: The Company’s employees are entitled to a comprehensive compensation and benefits program above the industry average. The compensation program includes a monthly salary, business performance bonuses based on quarterly business results, and a profit sharing bonus based on annual profits. The Company determines the amount of the business performance bonus and profit sharing based on operating results and industry practice in the R.O.C.. The amount and distribution of the bonus and profit sharing are recommended by the Compensation Committee to the Board of Directors for approval. Individual rewards are based on each employee’s job responsibility, contribution and performance.

Note 6: | The total compensation paid to the executive officers is decided based on their job responsibility, contribution, company performance and projected future risks the Company will face. It is reviewed by the Compensation Committee then submitted to the Board of Directors for approval.

Note 7: | According to the Company’s Articles of Incorporation, the Board of Directors is authorized to determine the salary for the Chairman, Vice Chairman and Directors, taking into account the extent and value of the services provided for the management of the Company and the standards of the industry within the R.O.C. and overseas. The Articles of Incorporation also provide that the compensation to directors shall be no more than 0.3% of annual profits and directors who also serve as executive officers of the Company are not entitled to receive compensation to directors. The distribution of compensation to directors shall be made in accordance with the Company’s “Rules for Distribution of Compensation to Directors” based on the following principles: (1) directors who also serve as executive officers of the Company are not entitled to receive compensation; (2) the compensation for independent directors may be higher than the other directors, as all independent directors also serve as members of the Audit Committee and the Compensation Committee and thus participate in the discussions as well as resolutions of related committee meetings in accordance with the charter of each committee; and (3) the compensation for overseas independent directors may be higher than domestic independent directors.

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