Summary of Significant Accounting Policies (Tables)

Percentage of Ownership

Main Businesses and Products

and Operating
Location

Sales and marketing of integrated circuits and other semiconductor devices

San Jose, California, U.S.A.

Customer service and supporting activities

Amsterdam, the Netherlands

Customer service and supporting activities

Engineering support activities

Customer service and supporting activities

Investing in companies involved in the semiconductor design and manufacturing, and other investment activities

Tortola, British Virgin Islands

Investment activities

Tortola, British Virgin Islands

Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices

Research, design, development, manufacturing, sales, packaging and test of color filter

Manufacturing, sales and testing of integrated circuits and other semiconductor devices

Phoenix, Arizona, U.S.A.

Japan Advanced Semiconductor Manufacturing, Inc. (JASM)

Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices

Investing in technology start-up companies

Percentage of Ownership

Main Businesses and Products

and Operating
Location

Investing in companies involved in semiconductor manufacturing

Engineering support activities

Manufacturing, sales and testing of integrated circuits and other semiconductor devices

Investing in technology start-up companies

This is an immaterial subsidiary for which the consolidated financial statements are not audited by the Company’s independent auditors.

VisEra has increased its capital in June 2022. After the increase in capital, TSMC’s shareholding in VisEra decreased from 73% to 68%. This transaction was accounted for as an equity transaction since the transaction did not change TSMC’s control over VisEra.

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.

JASM is established in December 2021 and has increased its capital in January 2022. After the increase in capital, TSMC’s shareholding in JASM decreased from 100% to 81%. In addition, JASM increased its capital by issuing noncumulative preferred shares and common shares in April 2022, TSMC’s shareholding in JASM decreased from 81% to 71% and the proportion of voting right remain 81%. The aforementioned transactions were accounted for as an equity transaction since the transaction did not change TSMC’s control over JASM.