Additional Information of Expenses by Nature

12 Months Ended

Dec. 31, 2024

Additional Information of Expenses by Nature

29.	ADDITIONAL INFORMATION OF EXPENSES BY NATURE


	Years Ended December 31
	2022			2023			2024

		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		$	399,638.8		$	492,827.4		$	616,390.4
Recognized in operating expenses			28,850.5			30,097.8			37,190.4
Recognized in other operating income and expenses			8.9			7.5			29.7


		$	428,498.2		$	522,932.7		$	653,610.5


	Years Ended December 31
	2022			2023			2024

		NT$			NT$			NT$
		(In Millions)			(In Millions)			(In Millions)

b. Amortization of intangible assets

Recognized in cost of revenue		$	6,086.3		$	6,538.1		$	6,342.3
Recognized in operating expenses			2,669.8			2,720.1			2,843.8


		$	8,756.1		$	9,258.2		$	9,186.1


c. Employee benefits expenses

Post-employment benefits
Defined contribution plans		$	4,550.4		$	5,365.5		$	5,932.2
Defined benefit plans			208.6			281.4			275.7

			4,759.0			5,646.9			6,207.9

Share-based payments
Equity-settled			302.4			483.0			1,242.7
Cash-settled			32.7			61.4			403.5

			335.1			544.4			1,646.2

Other employee benefits			234,367.9			233,517.3			293,968.0


		$	239,462.0		$	239,708.6		$	301,822.1


Employee benefits expense summarized by function
Recognized in cost of revenue		$	139,361.4		$	133,334.7		$	163,657.1
Recognized in operating expenses			100,100.6			106,373.9			138,165.0


		$	239,462.0		$	239,708.6		$	301,822.1

According to TSMC’s Articles of Incorporation, TSMC shall allocate compensation to directors and profit sharing bonus to employees of TSMC not more than

0.3

% and not less th

% 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
	2022			2023			2024
		NT$			NT$			NT$
		(In Millions)			(In Millions)			(In Millions)

Profit sharing bonus to employees		$	60,702.0		$	50,090.5		$	70,296.3

TSMC’s profit sharing bonus to employees and compensation to directors for 2022, 2023 and 2024 had been approved by the Board of Directors of TSMC, as illustrated below:


	Years Ended December 31
	2022			2023			2024
		NT$			NT$			NT$
		(In Millions)			(In Millions)			(In Millions)

Resolution Date of TSMC’s Board of Directors in its meeting			February 14 , 2023			February 6 , 2024			February 12 , 2025

Profit sharing bonus to employees		$	60,702.0		$	50,090.5		$	70,296.3

Compensation to directors		$	690.1		$	552.0		$	359.0

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2022, 2023 and 2024, respectively.