Additional Information of Expenses by Nature

12 Months Ended

Dec. 31, 2022

Additional Information of Expenses by Nature

30.	ADDITIONAL INFORMATION OF EXPENSES BY NATURE


	Years Ended December 31
	2020		2021		2022
	NT$		NT$		NT$
	(In Millions)		(In Millions)		(In Millions)
a. Depreciation of property, plant and equipment and right-of-use assets

Recognized in cost of revenue	$	299,311.4	$	386,103.9	$	399,638.8
Recognized in operating expenses		25,191.3		27,936.2		28,850.5
Recognized in other operating income and expenses		35.7		147.6		8.9


	$	324,538.4	$	414,187.7	$	428,498.2


	Years Ended December 31
	2020		2021		2022
	NT$		NT$		NT$
	(In Millions)		(In Millions)		(In Millions)
b. Amortization of intangible assets

Recognized in cost of revenue	$	4,837.7	$	5,574.3	$	6,086.3
Recognized in operating expenses		2,348.5		2,632.9		2,669.8


	$	7,186.2	$	8,207.2	$	8,756.1

c. Employee benefits expenses

Post-employment benefits
Defined contribution plans	$	2,809.5	$	3,711.0	$	4,550.4
Defined benefit plans		204.9		192.5		208.6

		3,014.4		3,903.5		4,759.0

Share-based payments
Equity-settled		6.6		7.8		302.4
Cash-settled		—		—		32.7


		6.6		7.8		335.1
Other employee benefits		137,796.4		161,035.8		234,367.9

	$	140,817.4	$	164,947.1	$	239,462.0


Employee benefits expense summarized by function
Recognized in cost of revenue	$	83,099.0	$	98,012.8	$	139,361.4
Recognized in operating expenses		57,718.4		66,934.3		100,100.6


	$	140,817.4	$	164,947.1	$	239,462.0

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

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


	Years Ended December 31
	2020		2021		2022
	NT$		NT$		NT$
	(In Millions)		(In Millions)		(In Millions)
Profit sharing bonus to employees	$	34,753.2	$	35,601.5	$	60,702.0

TSMC’s profit sharing bonus to employees and compensation to directors for 2020, 2021 and 2022 had been approved by the Board of Directors of TSMC, as illustrated below:


	Years Ended December 31
	2020		2021		2022
	NT$		NT$		NT$
	(In Millions)		(In Millions)		(In Millions)
Resolution Date of TSMC’s Board of Directors in its meeting		February 9, 2021		February 15, 2022		February 14, 2023
Profit sharing bonus to employees	$	34,753.2	$	35,601.5	$	60,702.0

Compensation to directors	$	509.8	$	487.5	$	690.1

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2020, 2021 and 2022, respectively