000000Security B - TSMC Restricted Secret #

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Consolidated Condensed Balance Sheets

(In Millions of New Taiwan Dollars) 2012 2013 2014 2014 (1) 2015 2016 2017 2018 2019 2020 2021 2022
(Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited)
(As Originally (Adjusted)
Stated)
ASSETS
Current Assets
Cash and Cash Equivalents $ 143,411 $ 242,695 $ 358,449 $ 358,449 $ 562,689 $ 541,254 $ 553,392 $ 577,815 $ 455,399 $ 660,171 ### ###
Investments in Marketable Financial Instruments 7,507 2,647 78,475 78,475 23,474 90,855 95,967 117,367 128,049 131,306 123,465 218,672
Accounts Receivable 58,131 71,942 115,048 115,048 85,565 129,305 122,317 129,198 139,771 146,038 198,302 231,340
Inventories 37,831 37,495 66,338 66,338 67,052 48,682 73,881 103,231 82,981 137,353 193,102 221,149
Other Current Assets 3,446 3,708 8,257 8,256 7,964 7,633 11,646 24,069 16,414 17,317 27,214 38,922
Total Current Assets 250,326 358,487 626,567 626,566 746,744 817,729 857,203 951,680 822,614 1,092,185 1,607,073 2,052,897

Non-current Assets
Long-term Investments 65,717 89,184 30,051 30,056 34,994 46,154 41,569 29,305 30,172 27,728 29,384 68,928
Property, Plant and Equipment 617,562 792,666 818,199 818,199 853,470 997,778 1,062,543 1,072,050 1,352,377 1,555,589 1,975,119 2,693,837
Right-of-use, Intangible and Other Non-current Assets 27,750 22,718 20,317 20,228 22,310 24,794 30,547 37,093 59,642 85,209 113,927 149,117
Total Non-current Assets 711,029 904,568 868,567 868,483 910,774 1,068,726 1,134,659 1,138,448 1,442,191 1,668,526 2,118,430 2,911,882

Total Assets $ 961,355 $ 1,263,055 $ 1,495,134 $ 1,495,049 $ 1,657,518 $ 1,886,455 $ 1,991,862 $ 2,090,128 $ 2,264,805 ### ### ###

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Short-term Loans $ 34,715 $ 15,645 $ 36,159 $ 36,159 $ 39,474 $ 57,958 $ 63,767 $ 88,755 $ 118,522 $ 88,559 $ 114,921 $ -
Accounts Payable 15,239 16,359 23,370 23,370 19,725 27,325 30,069 34,357 40,206 41,095 48,723 56,522
Payables to Contractors and Equipment Suppliers 44,832 89,810 26,980 26,980 26,012 63,154 55,724 43,134 140,811 157,805 145,742 213,500
Cash Dividends Payable - - - - - - - - 129,652 129,652 142,617 142,617
Accrued Expenses and Other Current Liabilities 53,560 67,964 114,506 114,505 103,500 131,692 150,746 139,397 129,745 197,440 282,933 512,274
Current Portion of Bonds Payable and Bank Loans 128 - - - 23,518 38,110 58,401 34,900 31,800 2,600 4,567 19,314
Total Current Liabilities 148,474 189,778 201,015 201,014 212,229 318,239 358,707 340,543 590,736 617,151 739,503 944,227

Non-current Liabilities
Bonds Payable 80,000 210,768 213,674 213,674 191,965 153,094 91,800 56,900 25,100 254,105 610,071 834,336
Other Non-current Liabilities 9,787 14,734 34,769 34,033 30,690 25,071 18,595 15,189 26,874 38,833 205,196 225,727
Total Non-current Liabilities 89,787 225,502 248,443 247,707 222,655 178,165 110,395 72,089 51,974 292,938 815,267 1,060,063

Total Liabilities 238,261 415,280 449,458 448,721 434,884 496,404 469,102 412,632 642,710 910,089 1,554,770 2,004,290

Equity Attributable to Shareholders of the Parent

Capital Stock at Par Value 259,245 259,286 259,297 259,297 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304
Capital Surplus 55,675 55,859 55,990 55,990 56,300 56,272 56,310 56,316 56,340 56,347 64,762 69,330
Legal Capital Reserve 115,820 132,436 151,251 151,251 177,641 208,298 241,723 276,034 311,147 311,147 311,147 311,147
Special Capital Reserve 7,606 2,786 - - - - - 26,907 10,675 42,259 59,304 3,154
Unappropriated Earnings 284,985 382,971 553,262 553,914 716,653 863,710 991,639 1,073,706 1,011,513 1,235,280 1,536,378 2,323,224
Others (2,780) 14,170 25,749 25,749 11,774 1,664 (26,918) (15,450) (27,569) (54,680) (62,609) (20,506)
Equity Attributable to Shareholders of the Parent 720,551 847,508 1,045,549 1,046,201 1,221,672 1,389,248 1,522,058 1,676,817 1,621,410 1,849,657 2,168,286 2,945,653
Noncontrolling Interests 2,543 267 127 127 962 803 702 679 685 965 2,447 14,836
Total Shareholders' Equity 723,094 847,775 1,045,676 1,046,328 1,222,634 1,390,051 1,522,760 1,677,496 1,622,095 1,850,622 2,170,733 2,960,489

Total Liabilities & Shareholders' Equity $ 961,355 $ 1,263,055 $ 1,495,134 $ 1,495,049 $ 1,657,518 $ 1,886,455 $ 1,991,862 $ 2,090,128 $ 2,264,805 ### ### ###

Exchange Rate (USD/NTD) 29.038 29.80 31.718 31.718 32.895 32.199 29.659 30.740 29.988 28.097 27.674 30.713

Note :
(1) Starting in 2015, TSMC prepares financial statements in accordance with 2013 IFRSs version endorsed by Taiwan. Under IFRS, the impact of newly effected GAAP shall be retroactively applied. The
consolidated condensed balance sheets as of December 31, 2014 have been updated accordingly.
000000Security B - TSMC Restricted Secret #

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Consolidated Condensed Statements of Comprehensive Income
(In Millions of New Taiwan Dollars, Except Earnings Per Share that are in New Taiwan and U.S. Dollars)

2012 2013 2014 2014 (1) 2015 2016 2017 2018 2019 2020 2021 2022
(Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited)
(As Originally (Adjusted)
Stated)
Net Revenue $ 506,745 $ 597,024 $ 762,806 $ 762,806 $ 843,497 $ 947,938 $ 977,447 $ 1,031,474 $ 1,069,985 $1,339,255 $1,587,415 $2,263,891

Cost of Revenue (262,608) (316,079) (385,072) (385,084) (433,102) (473,106) (482,621) (533,600) (577,283) (628,125) (767,878) (915,536)

Gross Profit 244,137 280,945 377,734 377,722 410,395 474,832 494,826 497,874 492,702 711,130 819,537 1,348,355

Operating Expenses
Research and Development Expenses (40,383) (48,118) (56,824) (56,829) (65,545) (71,208) (80,733) (85,895) (91,419) (109,486) (124,735) (163,262)
Sales, General and Administrative Expenses (22,128) (23,445) (24,019) (24,021) (22,922) (25,696) (27,169) (26,254) (28,086) (35,570) (44,488) (63,446)
Total Operating Expenses (62,511) (71,563) (80,843) (80,850) (88,467) (96,904) (107,902) (112,149) (119,505) (145,056) (169,223) (226,708)

Other Income and Expenses (449) 47 (1,001) (1,002) (1,880) 30 (1,365) (2,101) (496) 710 (333) (368)

Income from Operations 181,177 209,429 295,890 295,870 320,048 377,958 385,559 383,624 372,701 566,784 649,981 1,121,279

Non-operating Income and Expenses

Share of Profits of Associates and Joint Venture 2,073 3,972 3,950 3,951 4,132 3,495 2,986 3,058 2,844 3,593 5,603 7,799
Net Interest Income (Expenses) 625 (811) (506) (506) 939 3,011 6,134 11,643 12,939 6,937 294 10,672
Other Gains and Losses (2,199) 2,897 2,764 2,764 25,310 1,495 1,454 (815) 1,361 7,463 7,248 4,441
Total Non-operating Income and Expenses 499 6,058 6,208 6,209 30,381 8,001 10,574 13,886 17,144 17,993 13,145 22,912

Income Before Income Tax 181,676 215,487 302,098 302,079 350,429 385,959 396,133 397,510 389,845 584,777 663,126 1,144,191

Income Tax Expenses (15,552) (27,468) (38,317) (38,315) (43,873) (51,621) (52,986) (46,326) (44,501) (66,619) (66,053) (127,290)

Net Income 166,124 188,019 263,781 263,764 306,556 334,338 343,147 351,184 345,344 518,158 597,073 1,016,901

Other Comprehensive Income (Losses) 4,252 16,352 11,834 11,805 (14,714) (11,067) (28,822) 9,837 (11,824) (30,322) (7,619) 42,430

Comprehensive Income $ 170,376 $ 204,371 $ 275,615 $ 275,569 $ 291,842 $ 323,271 $ 314,325 $ 361,021 $ 333,520 $ 487,836 $ 589,454 $1,059,331

Net Income (Losses) Attributable to:

Shareholders of the Parent $ 166,318 $ 188,147 $ 263,899 $ 263,882 $ 306,574 $ 334,247 $ 343,111 $ 351,131 $ 345,264 $ 517,885 $ 596,540 $1,016,530
Noncontrolling Interests (194) (128) (118) (118) (18) 91 36 53 80 273 533 371
$ 166,124 $ 188,019 $ 263,781 $ 263,764 $ 306,556 $ 334,338 $ 343,147 $ 351,184 $ 345,344 $ 518,158 $ 597,073 $1,016,901

Earnings per Share - Diluted (NT$) $ 6.41 $ 7.26 $ 10.18 $ 10.18 $ 11.82 $ 12.89 $ 13.23 $ 13.54 $ 13.32 $ 19.97 $ 23.01 $ 39.20
Earnings per ADR - Diluted (US$) (2) $ 1.08 $ 1.22 $ 1.68 $ 1.68 $ 1.86 $ 2.00 $ 2.17 $ 2.24 $ 2.15 $ 3.39 $ 4.12 $ 6.57

Exchange Rate (USD/NTD) 29.577 29.687 30.303 30.303 31.703 32.206 30.445 30.163 30.895 29.431 27.937 29.835

Note :
(1) Starting in 2015, TSMC prepares financial statements in accordance with 2013 IFRSs version endorsed by Taiwan. Under IFRS, the impact of newly effected GAAP shall be retroactively applied. The
consolidated condensed statements of comprehensive income for the year ended December 31, 2014 have been updated accordingly.
(2) ADR equals to 5 ordinary shares. ADRs were issued in October 1997.
 000000Security B - TSMC Restricted Secret #

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Consolidated Condensed Cash Flow Statements

(In Millions of New Taiwan Dollars) 2012 2013 2014 2014 (1) 2015 2016 2017 2018 2019 2020 2021 2022
(Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited) (Audited)
(As Originally (Adjusted)
Stated)
Cash Flows from Operating Activities:
Income Before Income Tax $ 181,676 $ 215,487 $ 302,098 $ 302,079 $ 350,429 $ 385,959 $ 396,133 $ 397,510 $ 389,845 $ 584,777 $ 663,126 $1,144,191
Depreciation & Amortization 131,349 156,182 200,252 200,252 222,506 223,828 260,143 292,546 286,884 331,725 422,395 437,254
Share of Profits of Associates and Joint Venture (2,073) (3,972) (3,950) (3,951) (4,132) (3,495) (2,986) (3,058) (2,844) (3,593) (5,603) (7,799)
Income Tax Paid (11,312) (14,463) (29,918) (29,918) (40,943) (45,943) (63,620) (45,383) (52,044) (51,362) (83,498) (86,561)
Changes in Working Capital & Others (14,677) (5,851) (46,958) (46,938) 2,019 (20,514) (4,352) (67,661) (6,702) (38,880) 115,741 123,514
Net Cash Generated by Operating Activities 284,963 347,383 421,524 421,524 529,879 539,835 585,318 573,954 615,139 822,667 1,112,161 1,610,599

Cash Flows from Investing Activities:

Interest Received 1,719 1,791 2,579 2,579 3,642 6,353 9,526 14,660 16,875 9,775 5,991 18,084
Cash Dividend Received 2,159 2,648 3,869 3,869 4,024 5,616 4,391 3,421 2,039 3,487 2,499 3,016
Acquisitions of:
Property, Plant and Equipment (246,137) (287,595) (288,540) (288,540) (257,517) (328,045) (330,588) (315,582) (460,422) (507,239) (839,196) (1,082,672)
Marketable Financial Instruments (31,526) (1,817) (5,974) (5,974) (41,574) (116,901) (102,508) (99,017) (257,997) (266,940) (259,688) (237,818)
Financial Assets Carried at Cost (57) (27) (23) (23) (2,586) (534) (1,313) - - - - -
Proceeds from Disposal or Redemption of:
Property, Plant and Equipment 157 174 200 200 817 98 326 181 287 607 390 983
Marketable Financial Instruments 3,676 7,564 3,889 3,889 74,293 40,518 87,461 89,159 247,212 267,247 263,973 107,293
Financial Assets Carried at Cost 354 68 88 88 369 160 58 - - - - -
Investments Accounted for Using Equity Method - - 3,472 3,472 5,172 - - - - - - -
Others 337 (3,860) (1,981) (1,981) (3,886) (2,705) (3,518) (7,091) (6,796) (12,719) (10,335) 186
Net Cash Used In Investing Activities (269,318) (281,054) (282,421) (282,421) (217,246) (395,440) (336,165) (314,269) (458,802) (505,782) (836,366) (1,190,928)

Cash Flows from Financing Activities:

Increase (Decrease) in Short-term Loans 9,747 (19,636) 18,564 18,564 3,139 18,969 10,394 23,923 31,804 (31,572) 35,668 (111,960)
Proceeds from Issuance of Bonds 62,000 130,845 - - - - - - - 236,726 364,593 198,293
Repayment of Bonds (4,500) - - - - (23,472) (38,100) (58,025) (34,900) (31,800) (2,600) (4,400)
Issuance of Long-term Bank Loans 50 690 - - - - - - - - - -
Repayment of Long-term Bank Loans (212) (63) - - - (9) (31) - - - - (167)
Interest Paid (736) (1,331) (3,193) (3,193) (3,156) (3,302) (3,483) (3,233) (3,597) (1,781) (3,834) (12,219)
Cash Dividends Paid for Common Stock (77,749) (77,773) (77,786) (77,786) (116,683) (155,582) (181,513) (207,443) (259,304) (259,304) (265,786) (285,234)
Proceeds from Exercise of Stock Options 242 125 47 47 34 - - - - - - -
Repurchase of Treasury Stock - - - - - - - - - - - (872)
Others (2,430) (752) 30,040 30,040 (68) 5,596 (2,964) (346) (3,642) (884) 8,567 16,315
Net Cash Generated by (Used in) Financing Activities (13,588) 32,105 (32,328) (32,328) (116,734) (157,800) (215,697) (245,124) (269,639) (88,615) 136,608 (200,244)

Effect of Exchange Rate Changes on Cash and Cash Equivalents and Others (2,118) 850 8,979 8,979 8,341 (8,030) (21,318) 9,862 (9,114) (23,498) (7,584) 58,397

Net Increase (Decrease) in Cash and Cash Equivalents (61) 99,284 115,754 115,754 204,240 (21,435) 12,138 24,423 (122,416) 204,772 404,819 277,824

Cash and Cash Equivalents at Beginning of Period 143,472 143,411 242,695 242,695 358,449 562,689 541,254 553,392 577,815 455,399 660,171 1,064,990

Cash and Cash Equivalents at End of Period $ 143,411 $ 242,695 $ 358,449 $ 358,449 $ 562,689 $ 541,254 $ 553,392 $ 577,815 $ 455,399 $ 660,171 $1,064,990 $1,342,814

Exchange Rate (USD/NTD) 29.577 29.687 30.303 30.303 31.703 32.206 30.445 30.163 30.895 29.431 27.937 29.835

Note:
(1) Starting in 2015, TSMC prepares financial statements in accordance with 2013 IFRSs version endorsed by Taiwan. Under IFRS, the impact of newly effected GAAP shall be retroactively applied. The
consolidated condensed cash flow statements for the year ended December 31, 2014 have been updated accordingly.
 000000Security B - TSMC Restricted Secret #

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Unaudited Consolidated Condensed Balance Sheets

(In Millions of New Taiwan Dollars)

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 1Q14 (1) 2Q14 2Q14 (1) 3Q14 3Q14 (1) 4Q14 4Q14 (1) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23
(As Originally (Adjusted) (As Originally (Adjusted) (As Originally (Adjusted) (As Originally (Adjusted)
Stated) Stated) Stated) Stated)
ASSETS
Current Assets
Cash and Cash Equivalents $ 170,820 $ 178,441 $ 138,738 $ 143,411 $ 186,029 $ 225,833 $ 216,604 $ 242,695 $ 231,697 $ 231,697 $ 255,054 $ 255,054 $ 225,884 $ 225,884 $ 358,449 $ 358,449 $ 437,412 $ 528,895 $ 515,731 $ 562,689 $ 617,984 $ 622,359 $ 463,972 $ 541,254 $ 564,725 $ 570,467 $ 408,077 $ 553,392 $ 577,783 $ 632,230 $ 488,732 $ 577,815 $ 645,671 $ 649,697 $ 452,430 $ 455,399 $ 430,777 $ 467,614 $ 604,195 $ 660,171 $ 664,728 $ 747,982 $ 853,812 ### ### ### ### ### ### ###
Investments in Marketable Financial Instruments 9,833 9,926 9,009 7,507 3,226 1,791 1,561 2,647 3,251 3,251 59,540 59,540 64,461 64,461 78,475 78,475 81,562 21,456 9,155 23,474 30,413 45,505 52,983 90,855 94,598 88,483 93,699 95,967 106,592 116,692 115,287 117,367 114,578 114,918 132,492 128,049 130,776 137,402 138,225 131,306 131,994 122,853 122,007 123,465 130,466 172,379 202,861 218,672 203,952 213,232
Accounts Receivable 53,443 61,448 65,312 58,131 65,907 80,340 79,672 71,942 74,333 74,333 86,887 86,887 114,532 114,532 115,048 115,048 99,122 99,737 97,123 85,565 96,957 111,725 129,289 129,305 109,028 110,329 118,726 122,317 107,781 88,196 129,540 129,198 106,741 116,131 145,422 139,771 146,421 149,600 162,578 146,038 167,479 178,260 187,168 198,302 213,428 222,069 261,538 231,340 148,047 191,027
Inventories 27,759 30,780 33,249 37,831 37,834 38,615 36,917 37,495 43,481 43,481 50,954 50,954 65,337 65,337 66,338 66,338 64,600 66,279 65,066 67,052 57,242 60,706 53,882 48,682 50,389 61,011 73,894 73,881 85,216 99,032 105,337 103,231 108,682 108,232 96,686 82,981 78,278 85,788 109,510 137,353 154,568 170,439 182,234 193,102 200,119 217,438 218,336 221,149 216,068 234,333
Other Current Assets 4,960 3,989 3,267 3,446 4,756 5,883 3,457 3,708 3,128 3,128 6,765 6,765 6,016 6,016 8,257 8,256 7,798 15,002 6,587 7,964 9,895 12,230 9,466 7,633 6,922 7,760 10,466 11,646 51,745 22,893 20,328 24,069 15,653 21,202 22,397 16,414 16,218 19,628 15,166 17,317 21,018 21,570 25,418 27,214 26,635 40,791 35,484 38,922 42,427 44,648
Total Current Assets 266,815 284,584 249,575 250,326 297,752 352,462 338,211 358,487 355,890 355,890 459,200 459,200 476,230 476,230 626,567 626,566 690,494 731,369 693,662 746,744 812,491 852,525 709,592 817,729 825,662 838,050 704,862 857,203 929,117 959,043 859,224 951,680 991,325 1,010,180 849,427 822,614 802,470 860,032 1,029,674 1,092,185 1,139,787 1,241,104 1,370,639 1,607,073 1,722,238 1,905,866 2,014,232 2,052,897 1,995,727 1,959,964

Non-current Assets
Long-term Investments 29,791 28,106 28,590 65,717 70,702 78,262 89,174 89,184 90,847 90,852 28,373 28,378 28,846 28,852 30,051 30,056 32,181 27,774 31,015 34,994 46,335 53,398 49,910 46,154 44,519 43,818 40,903 41,569 34,377 28,835 29,803 29,305 30,039 29,315 30,135 30,172 31,033 22,917 26,515 27,728 29,130 29,063 27,730 29,384 45,737 64,440 75,796 68,928 69,914 94,610
Property, Plant and Equipment 509,954 548,185 580,114 617,562 666,447 715,595 727,716 792,666 828,012 828,012 837,168 837,168 824,310 824,310 818,199 818,199 813,220 829,703 830,825 853,470 844,305 875,871 934,929 997,778 1,037,364 1,077,627 1,065,757 1,062,543 1,055,366 1,034,268 1,048,517 1,072,050 1,107,652 1,142,871 1,197,955 1,352,377 1,438,216 1,493,561 1,504,438 1,555,589 1,658,551 1,722,679 1,828,895 1,975,119 2,104,331 2,248,319 2,411,490 2,693,837 2,833,397 2,947,234
Right-of-use, Intangible and Other Non-current Assets 30,935 29,715 27,492 27,750 26,729 23,566 22,439 22,718 23,990 23,896 20,304 20,211 20,609 20,516 20,317 20,228 21,000 20,007 20,717 22,310 23,395 22,698 24,256 24,794 27,119 26,939 29,902 30,547 30,296 31,267 32,345 37,093 58,421 56,978 56,717 59,642 71,577 72,155 74,945 85,209 91,663 99,969 105,048 113,927 120,371 127,316 141,784 149,117 146,806 147,657
Total Non-current Assets 570,680 606,006 636,196 711,029 763,878 817,423 839,329 904,568 942,849 942,760 885,845 885,757 873,765 873,678 868,567 868,483 866,401 877,484 882,557 910,774 914,035 951,967 1,009,095 1,068,726 1,109,002 1,148,384 1,136,562 1,134,659 1,120,039 1,094,370 1,110,665 1,138,448 1,196,112 1,229,164 1,284,807 1,442,191 1,540,826 1,588,633 1,605,898 1,668,526 1,779,344 1,851,711 1,961,673 2,118,430 2,270,439 2,440,075 2,629,070 2,911,882 3,050,117 3,189,501

Total Assets $ 837,495 $ 890,590 $ 885,771 $ 961,355 $ 1,061,630 $ 1,169,885 $ 1,177,540 $ 1,263,055 $ 1,298,739 $ 1,298,650 $ 1,345,045 $ 1,344,957 $ 1,349,995 $ 1,349,908 $ 1,495,134 $ 1,495,049 $ 1,556,895 $ 1,608,853 $ 1,576,219 $ 1,657,518 $ 1,726,526 $ 1,804,492 $ 1,718,687 $ 1,886,455 $ 1,934,664 $ 1,986,434 $ 1,841,424 $ 1,991,862 $ 2,049,156 $2,053,413 $1,969,889 $ 2,090,128 $ 2,187,437 $ 2,239,344 $2,134,234 $2,264,805 $2,343,296 $2,448,665 $2,635,572 $2,760,711 $2,919,131 $3,092,815 ### ### ### ### ### ### ### ###

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Short-term Loans $ 34,688 $ 30,773 $ 29,750 $ 34,715 $ 35,843 $ 31,466 $ 18,053 $ 15,645 $ 24,844 $ 24,844 $ 34,705 $ 34,705 $ 35,883 $ 35,883 $ 36,159 $ 36,159 $ 18,683 $ 5,593 $ 33,564 $ 39,474 $ 34,690 $ 38,740 $ 37,649 $ 57,958 $ 54,666 $ 54,745 $ 54,430 $ 63,767 $ 56,731 $ 30,835 $ 73,975 $ 88,755 $ 76,593 $ 78,261 $ 85,573 $ 118,522 $ 139,310 $ 169,547 $ 155,378 $ 88,559 $ 137,124 $ 139,381 $ 118,844 $ 114,921 $ 144,551 $ 115,585 $ - $ - $ - $ -
Accounts Payable 14,168 15,437 14,556 15,239 13,256 15,203 15,073 16,359 16,711 16,711 21,697 21,697 21,709 21,709 23,370 23,370 20,205 21,101 19,186 19,725 19,629 23,154 25,976 27,325 24,253 25,612 28,988 30,069 29,042 30,663 30,305 34,357 27,662 32,570 36,958 40,206 39,774 39,534 40,892 41,095 38,598 41,230 43,889 48,723 50,104 59,818 62,018 56,522 47,382 48,973
Payables to Contractors and Equipment Suppliers 34,071 45,040 32,786 44,832 48,601 60,884 58,381 89,810 53,461 53,461 34,658 34,658 28,684 28,684 26,980 26,980 27,373 43,611 34,338 26,012 33,953 48,102 58,790 63,154 57,672 50,377 47,975 55,724 47,828 39,603 58,590 43,134 76,971 71,029 93,442 140,811 101,466 97,739 100,637 157,805 109,037 107,146 128,368 145,742 122,916 160,489 159,780 213,500 157,375 140,753
Cash Dividends Payable - 77,763 - - - 77,773 - - - - 77,786 77,786 - - - - - 116,683 - - - 155,696 - - - 181,627 - - - 207,519 - - - 259,380 116,687 129,652 129,652 129,652 129,652 129,652 129,652 136,135 142,617 142,617 142,617 142,806 142,617 142,617 142,617 149,309
Accrued Expenses and Other Current Liabilities 48,607 49,217 48,736 53,560 60,375 58,305 56,777 67,964 79,381 79,381 77,789 77,789 85,972 85,972 114,506 114,505 121,304 111,523 91,085 103,500 114,348 111,037 97,030 131,692 140,080 131,281 108,058 150,746 159,277 138,477 123,860 139,397 148,942 132,916 130,321 129,745 166,466 165,524 159,083 197,440 247,237 223,857 221,904 282,933 345,888 349,484 419,589 512,274 517,676 463,668
Current Portion of Bonds Payable and Bank Loans 94 125 125 128 131 - - - - - - - - - - - - 10,868 23,516 23,518 33,273 22,010 38,110 38,110 44,910 79,865 59,071 58,401 49,357 15,900 34,900 34,900 48,100 48,100 31,800 31,800 12,800 12,800 2,600 2,600 - - - 4,567 16,792 17,059 23,427 19,314 8,040 8,126
Total Current Liabilities 131,628 218,355 125,953 148,474 158,206 243,631 148,284 189,778 174,397 174,397 246,635 246,635 172,248 172,248 201,015 201,014 187,565 309,379 201,689 212,229 235,893 398,739 257,555 318,239 321,581 523,507 298,522 358,707 342,235 462,997 321,630 340,543 378,268 622,256 494,781 590,736 589,468 614,796 588,242 617,151 661,648 647,749 655,622 739,503 822,868 845,241 807,431 944,227 873,090 810,829

Non-current Liabilities
Bonds Payable 35,000 35,000 75,600 80,000 125,000 169,801 210,416 210,768 211,798 211,798 210,869 210,869 211,797 211,797 213,674 213,674 213,209 201,857 191,971 191,965 181,151 181,276 152,139 153,094 134,199 99,300 91,800 91,800 83,400 83,400 56,900 56,900 35,300 35,300 25,100 25,100 46,475 82,439 227,045 254,105 276,838 410,465 459,733 610,071 629,650 753,890 842,387 834,336 848,638 901,710
Other Non-current Liabilities 9,422 9,298 9,131 9,787 9,775 10,217 14,665 14,734 14,546 13,762 10,580 9,801 9,392 8,618 34,769 34,033 32,205 30,989 31,564 30,690 28,536 27,146 25,100 25,071 22,574 21,261 19,690 18,595 16,916 16,381 15,529 15,189 30,351 27,366 26,856 26,874 30,324 30,216 32,019 38,833 39,648 40,631 138,637 205,196 218,690 236,348 241,168 225,727 231,219 231,458
Total Non-current Liabilities 44,422 44,298 84,731 89,787 134,775 180,018 225,081 225,502 226,344 225,560 221,449 220,670 221,189 220,415 248,443 247,707 245,414 232,846 223,535 222,655 209,687 208,422 177,239 178,165 156,773 120,561 111,490 110,395 100,316 99,781 72,429 72,089 65,651 62,666 51,956 51,974 76,799 112,655 259,064 292,938 316,486 451,096 598,370 815,267 848,340 990,238 1,083,555 1,060,063 1,079,857 1,133,168

Total Liabilities 176,050 262,653 210,684 238,261 292,981 423,649 373,365 415,280 400,741 399,957 468,084 467,305 393,437 392,663 449,458 448,721 432,979 542,225 425,224 434,884 445,580 607,161 434,794 496,404 478,354 644,068 410,012 469,102 442,551 562,778 394,059 412,632 443,919 684,922 546,737 642,710 666,267 727,451 847,306 910,089 978,134 1,098,845 1,253,992 1,554,770 1,671,208 1,835,479 1,890,986 2,004,290 1,952,947 1,943,997

Equity Attributable to Shareholders of the Parent

Capital Stock at Par Value 259,206 259,207 259,220 259,245 259,282 259,283 259,284 259,286 259,291 259,291 259,294 259,294 259,294 259,294 259,297 259,297 259,303 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,304 259,318 259,304 259,304 259,304 259,321 259,321
Capital Surplus 55,593 55,596 55,630 55,675 55,763 55,829 55,842 55,859 55,835 55,835 56,027 56,027 55,944 55,944 55,990 55,990 56,275 56,533 56,298 56,300 56,317 56,263 56,270 56,272 56,282 56,283 56,281 56,310 56,305 56,308 56,312 56,316 56,321 56,321 56,321 56,340 56,340 56,340 56,340 56,347 64,753 64,754 64,747 64,762 65,215 69,334 69,316 69,330 69,894 69,895
Legal Capital Reserve 102,400 115,820 115,820 115,820 115,820 132,436 132,436 132,436 132,436 132,436 151,251 151,251 151,251 151,251 151,251 151,251 151,251 177,641 177,641 177,641 177,641 208,298 208,298 208,298 208,298 241,723 241,723 241,723 241,723 276,034 276,034 276,034 276,034 311,147 311,147 311,147 311,147 311,147 311,147 311,147 311,147 311,147 311,147 311,147 311,147 311,147 311,147 311,147 311,147 311,147
Special Capital Reserve 6,434 7,606 7,606 7,606 7,606 2,786 2,786 2,786 2,786 2,786 - - - - - - - - - - - - - - - - - - - 26,907 26,907 26,907 26,907 10,724 7,386 10,675 27,568 24,874 36,758 42,259 54,680 48,393 58,594 59,304 62,609 47,067 35,065 3,154 20,320 23,594
Unappropriated Earnings 245,122 194,625 244,004 284,985 324,562 286,801 338,753 382,971 430,842 431,537 396,729 397,420 473,065 473,752 553,262 553,914 632,904 569,249 644,578 716,653 781,435 667,701 764,460 863,710 951,339 802,673 892,598 991,639 1,082,967 886,529 974,796 1,073,706 1,135,005 923,705 963,373 1,011,513 1,046,781 1,105,471 1,166,071 1,235,280 1,297,445 1,366,782 1,441,532 1,536,378 1,664,506 1,844,911 2,066,562 2,323,224 2,441,821 2,542,570
Treasury Stock - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (872) - - - - -
Others (9,947) (7,496) (9,783) (2,780) 3,098 8,777 14,776 14,170 16,584 16,584 13,486 13,486 16,866 16,866 25,749 25,749 24,111 3,854 13,138 11,774 5,276 4,888 (5,219) 1,664 (19,710) (18,297) (19,189) (26,918) (34,401) (15,081) (18,181) (15,450) (10,725) (7,386) (10,675) (27,569) (24,874) (36,758) (42,259) (54,680) (48,393) (58,594) (59,304) (62,609) (47,493) (35,410) (3,420) (20,506) (24,269) (17,777)
Equity Attributable to Shareholders of the Parent 658,808 625,358 672,497 720,551 766,131 745,912 803,877 847,508 897,774 898,469 876,787 877,478 956,420 957,107 1,045,549 1,046,201 1,123,844 1,066,581 1,150,959 1,221,672 1,279,973 1,196,454 1,283,113 1,389,248 1,455,513 1,341,686 1,430,717 1,522,058 1,605,898 1,490,001 1,575,172 1,676,817 1,742,846 1,553,815 1,586,856 1,621,410 1,676,266 1,720,378 1,787,361 1,849,657 1,938,936 1,991,786 2,076,020 2,168,286 2,314,430 2,496,353 2,737,974 2,945,653 3,078,234 3,188,750
Noncontrolling Interests 2,637 2,579 2,590 2,543 2,518 324 298 267 224 224 174 174 138 138 127 127 72 47 36 962 973 877 780 803 797 680 695 702 707 634 658 679 672 607 641 685 763 836 905 965 2,061 2,184 2,300 2,447 7,039 14,109 14,342 14,836 14,663 16,718
Total Shareholders' Equity 661,445 627,937 675,087 723,094 768,649 746,236 804,175 847,775 897,998 898,693 876,961 877,652 956,558 957,245 1,045,676 1,046,328 1,123,916 1,066,628 1,150,995 1,222,634 1,280,946 1,197,331 1,283,893 1,390,051 1,456,310 1,342,366 1,431,412 1,522,760 1,606,605 1,490,635 1,575,830 1,677,496 1,743,518 1,554,422 1,587,497 1,622,095 1,677,029 1,721,214 1,788,266 1,850,622 1,940,997 1,993,970 2,078,320 2,170,733 2,321,469 2,510,462 2,752,316 2,960,489 3,092,897 3,205,468

Total Liabilities & Shareholders' Equity $ 837,495 $ 890,590 $ 885,771 $ 961,355 $ 1,061,630 $ 1,169,885 $ 1,177,540 $ 1,263,055 $ 1,298,739 $ 1,298,650 $ 1,345,045 $ 1,344,957 $ 1,349,995 $ 1,349,908 $ 1,495,134 $ 1,495,049 $ 1,556,895 $ 1,608,853 $ 1,576,219 $ 1,657,518 $ 1,726,526 $ 1,804,492 $ 1,718,687 $ 1,886,455 $ 1,934,664 $ 1,986,434 $ 1,841,424 $ 1,991,862 $ 2,049,156 $2,053,413 $1,969,889 $ 2,090,128 $ 2,187,437 $ 2,239,344 $2,134,234 $2,264,805 $2,343,296 $2,448,665 $2,635,572 $2,760,711 $2,919,131 $3,092,815 ### ### ### ### ### ### ### ###

Exchange Rate (USD/NTD) 29.529 29.885 29.310 29.038 29.869 29.968 29.571 29.80 30.483 30.483 29.856 29.856 30.470 30.470 31.718 31.718 31.401 31.07 32.906 32.895 32.18 32.283 31.374 32.199 30.37 30.414 30.239 29.659 29.093 30.530 30.505 30.740 30.830 31.056 31.027 29.988 30.239 29.429 28.960 28.097 28.507 27.889 27.864 27.674 28.598 29.722 31.766 30.713 30.422 31.130

Note :
(1) Starting in 2015, TSMC prepares financial statements in accordance with 2013 IFRSs version endorsed by Taiwan. Under IFRS, the impact of newly effected GAAP shall be retroactively applied. The consolidated condensed balance sheets as of December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014
have been updated accordingly.
000000Security B - TSMC Restricted Secret #

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Unaudited Consolidated Condensed Statements of Comprehensive Income
(In Millions of New Taiwan Dollars, Except Earnings Per Share that are in New Taiwan and U.S. Dollars)

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 1Q14 (1)
2Q14 2Q14 (1)
3Q14 3Q14 (1)
4Q14 4Q14 (1)
1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23
(As Originally (Adjusted) (As Originally (Adjusted) (As Originally (Adjusted) (As Originally (Adjusted)
Stated) Stated) Stated) Stated)
Net Revenue $ 105,615 $ 128,186 $ 141,499 $ 131,445 $ 132,755 $ 155,886 $ 162,577 $ 145,806 $ 148,215 $ 148,215 $ 183,021 $ 183,021 $ 209,049 $ 209,049 $ 222,521 $ 222,521 $ 222,034 $ 205,440 $ 212,505 $ 203,518 $ 203,495 $ 221,810 $ 260,406 $ 262,227 $ 233,914 $ 213,856 $ 252,107 $ 277,570 $ 248,079 $ 233,276 $ 260,348 $ 289,771 $ 218,704 $ 240,999 $293,045 $317,237 $ 310,597 $310,699 $356,426 $ 361,533 $ 362,410 $372,145 $414,671 $438,189 $491,076 $534,141 $613,142 $625,532 $508,633 $480,841

Cost of Revenue (55,136) (65,793) (72,334) (69,345) (71,985) (79,464) (83,686) (80,944) (77,815) (77,818) (91,828) (91,831) (103,471) (103,474) (111,958) (111,961) (112,605) (105,735) (110,169) (104,593) (112,157) (107,476) (128,355) (125,118) (112,424) (105,148) (126,227) (138,822) (123,221) (121,746) (136,981) (151,652) (128,346) (137,269) (153,633) (158,035) (149,820) (146,076) (165,932) (166,297) (172,571) (185,948) (201,925) (207,434) (217,873) (218,673) (242,643) (236,347) (222,133) (220,641)

Gross Profit 50,479 62,393 69,165 62,100 60,770 76,422 78,891 64,862 70,400 70,397 91,193 91,190 105,578 105,575 110,563 110,560 109,429 99,705 102,336 98,925 91,338 114,334 132,051 137,109 121,490 108,708 125,880 138,748 124,858 111,530 123,367 138,119 90,358 103,730 139,412 159,202 160,777 164,623 190,494 195,236 189,839 186,197 212,746 230,755 273,203 315,468 370,499 389,185 286,500 260,200

Operating Expenses
Research and Development Expenses (9,159) (10,067) (10,657) (10,500) (10,651) (11,942) (13,357) (12,168) (12,067) (12,068) (13,609) (13,610) (15,206) (15,208) (15,942) (15,943) (16,782) (16,612) (16,486) (15,665) (15,619) (16,904) (18,724) (19,961) (19,413) (19,057) (21,045) (21,218) (20,429) (19,891) (21,886) (23,689) (20,417) (21,394) (23,972) (25,636) (24,969) (24,893) (29,684) (29,940) (30,756) (30,874) (30,866) (32,239) (36,048) (39,650) (42,977) (44,587) (39,157) (41,665)
Sales, General and Administrative Expenses (5,757) (5,470) (5,714) (5,187) (5,725) (6,850) (5,904) (4,966) (5,808) (5,809) (6,643) (6,643) (5,935) (5,935) (5,633) (5,634) (5,757) (5,943) (5,674) (5,548) (5,260) (6,104) (7,116) (7,216) (6,744) (6,309) (6,492) (7,624) (6,300) (6,548) (6,243) (7,163) (5,601) (5,771) (7,407) (9,307) (7,354) (8,628) (11,207) (8,381) (8,356) (9,709) (10,784) (15,639) (12,563) (13,725) (17,209) (19,949) (16,152) (16,530)
Total Operating Expenses (14,916) (15,537) (16,371) (15,687) (16,376) (18,792) (19,261) (17,134) (17,875) (17,877) (20,252) (20,253) (21,141) (21,143) (21,575) (21,577) (22,539) (22,555) (22,160) (21,213) (20,879) (23,008) (25,840) (27,177) (26,157) (25,366) (27,537) (28,842) (26,729) (26,439) (28,129) (30,852) (26,018) (27,165) (31,379) (34,943) (32,323) (33,521) (40,891) (38,321) (39,112) (40,583) (41,650) (47,878) (48,611) (53,375) (60,186) (64,536) (55,309) (58,195)

Other Operating Income and Expenses (446) 16 4 (23) 34 (1) (12) 26 (3) (3) (227) (227) (5) (5) (766) (767) (264) (81) (1,787) 252 8 (5) 52 (25) 19 (86) (287) (1,011) (1,302) (663) 7 (143) (74) (261) (146) (15) 68 (8) 445 205 (189) 53 (92) (105) (802) 31 11 392 47 (47)

Income from Operations 35,117 46,872 52,798 46,390 44,428 57,629 59,618 47,754 52,522 52,517 70,714 70,710 84,432 84,427 88,222 88,216 86,626 77,069 78,389 77,964 70,467 91,321 106,263 109,907 95,352 83,256 98,056 108,895 96,827 84,428 95,245 107,124 64,266 76,304 107,887 124,244 128,522 131,094 150,048 157,120 150,538 145,667 171,004 182,772 223,790 262,124 310,324 325,041 231,238 201,958

Non-operating Income and Expenses

Share of Profits of Associates and Joint Venture 22 604 712 735 654 1,060 1,113 1,145 955 955 1,048 1,048 1,037 1,037 910 911 1,135 815 926 1,256 841 892 881 881 667 618 752 949 682 266 998 1,112 434 628 916 866 726 679 833 1,355 1,267 1,172 1,513 1,651 1,726 2,257 2,078 1,738 1,039 1,134
Net Interest Income (Expenses) 284 243 83 15 (148) (129) (303) (231) (183) (183) (123) (123) (134) (134) (66) (66) 88 153 265 433 482 834 699 997 1,288 1,644 1,282 1,920 2,346 2,944 3,078 3,275 3,510 3,682 3,072 2,675 2,458 2,070 1,524 885 689 294 23 (712) (467) 642 3,245 7,252 10,654 10,667
Other Gains and Losses 250 (1,762) 169 (856) 814 1,457 (1,079) 1,705 8 8 2,459 2,459 46 46 251 251 410 20,095 3,814 991 466 359 407 262 515 600 428 (89) 89 (51) (424) (429) (28) (69) 461 997 441 2,556 2,719 1,747 2,570 2,258 1,312 1,108 1,783 975 1,044 639 1,344 916
Total Non-operating Income and Expenses 556 (915) 964 (106) 1,320 2,388 (269) 2,619 780 780 3,384 3,384 949 949 1,095 1,096 1,633 21,063 5,005 2,680 1,789 2,085 1,987 2,140 2,470 2,862 2,462 2,780 3,117 3,159 3,652 3,958 3,916 4,241 4,449 4,538 3,625 5,305 5,076 3,987 4,526 3,724 2,848 2,047 3,042 3,874 6,367 9,629 13,037 12,717

Income Before Income Tax 35,673 45,957 53,762 46,284 45,748 60,017 59,349 50,373 53,302 53,297 74,098 74,094 85,381 85,376 89,317 89,312 88,259 98,132 83,394 80,644 72,256 93,406 108,250 112,047 97,822 86,118 100,518 111,675 99,944 87,587 98,897 111,082 68,182 80,545 112,336 128,782 132,147 136,399 155,124 161,107 155,064 149,391 173,852 184,819 226,832 265,998 316,691 334,670 244,275 214,675

Income Tax Expenses (2,290) (4,157) (4,340) (4,765) (6,212) (8,256) (7,414) (5,586) (5,456) (5,455) (14,438) (14,438) (9,077) (9,076) (9,346) (9,346) (9,275) (18,719) (8,077) (7,802) (7,463) (20,878) (11,461) (11,819) (10,201) (19,847) (10,569) (12,369) (10,156) (15,294) (9,799) (11,077) (6,795) (13,769) (11,233) (12,704) (15,084) (15,507) (17,745) (18,283) (15,325) (14,910) (17,372) (18,446) (23,959) (28,817) (35,723) (38,791) (37,326) (32,958)

Net Income 33,383 41,800 49,422 41,519 39,536 51,761 51,935 44,787 47,846 47,842 59,660 59,656 76,304 76,300 79,971 79,966 78,984 79,413 75,317 72,842 64,793 72,528 96,789 100,228 87,621 66,271 89,949 99,306 89,788 72,293 89,098 100,005 61,387 66,776 101,103 116,078 117,063 120,892 137,379 142,824 139,739 134,481 156,480 166,373 202,873 237,181 280,968 295,879 206,949 181,717

Other Comprehensive Income (Losses) (2,302) 2,448 (2,300) 6,406 5,907 5,651 5,993 (1,199) 2,414 2,414 (3,099) (3,099) 3,381 3,381 9,138 9,109 (1,646) (20,259) 9,284 (2,093) (6,499) (390) (10,110) 5,932 (21,352) 1,409 (903) (7,976) (7,187) 19,256 (3,881) 1,649 4,616 3,526 (3,225) (16,741) 2,648 (11,883) (5,436) (15,651) 5,967 (10,201) (708) (2,677) 15,412 11,378 32,122 (16,482) (3,296) 5,659

Comprehensive Income $ 31,081 $ 44,248 $ 47,122 $ 47,925 $ 45,443 $ 57,412 $ 57,928 $ 43,588 $ 50,260 $ 50,256 $ 56,561 $ 56,557 $ 79,685 $ 79,681 $ 89,109 $ 89,075 $ 77,338 $ 59,154 $ 84,601 $ 70,749 $ 58,294 $ 72,138 $ 86,679 $ 106,160 $ 66,269 $ 67,680 $ 89,046 $ 91,330 $ 82,601 $ 91,549 $ 85,217 $ 101,654 $ 66,003 $ 70,302 $ 97,878 $ 99,337 $ 119,711 $109,009 $131,943 $ 127,173 $ 145,706 $124,280 $155,772 $163,696 $218,285 $248,559 $313,090 $279,397 $203,653 $187,376

Net Income (Losses) Attributable to:

Shareholders of the Parent 33,492 41,843 49,380 41,603 39,577 51,808 51,952 44,810 47,871 47,867 59,702 59,698 76,335 76,331 79,991 79,986 78,990 79,417 75,330 72,837 64,782 72,506 96,759 100,200 87,629 66,271 89,925 99,286 89,785 72,290 89,072 99,984 61,394 66,765 101,070 116,035 116,987 120,822 137,310 142,766 139,690 134,359 156,259 166,232 202,733 237,027 280,866 295,904 206,987 181,799
Noncontrolling Interests (109) (43) 42 (84) (41) (47) (17) (23) (25) (25) (42) (42) (31) (31) (20) (20) (6) (4) (13) 5 11 22 30 28 (8) - 24 20 3 3 26 21 (7) 11 33 43 76 70 69 58 49 122 221 141 140 154 102 (25) (38) (82)
33,383 41,800 49,422 41,519 39,536 51,761 51,935 44,787 47,846 47,842 59,660 59,656 76,304 76,300 79,971 79,966 78,984 79,413 75,317 72,842 64,793 72,528 96,789 100,228 87,621 66,271 89,949 99,306 89,788 72,293 89,098 100,005 61,387 66,776 101,103 116,078 117,063 120,892 137,379 142,824 139,739 134,481 156,480 166,373 202,873 237,181 280,968 295,879 206,949 181,717

Earnings per Share - Diluted (NT$) $ 1.29 $ 1.61 $ 1.90 $ 1.61 $ 1.53 $ 2.00 $ 2.00 $ 1.73 $ 1.85 $ 1.85 $ 2.30 $ 2.30 $ 2.94 $ 2.94 $ 3.08 $ 3.08 $ 3.05 $ 3.06 $ 2.91 $ 2.81 $ 2.50 $ 2.80 $ 3.73 $ 3.86 $ 3.38 $ 2.56 $ 3.47 $ 3.83 $ 3.46 $ 2.79 $ 3.44 $ 3.86 $ 2.37 $ 2.57 $ 3.90 $ 4.47 $ 4.51 $ 4.66 $ 5.30 $ 5.51 $ 5.39 $ 5.18 $ 6.03 $ 6.41 $ 7.82 $ 9.14 $ 10.83 $ 11.41 $ 7.98 $ 7.01
Earnings per ADR - Diluted (US$) (2)
$ 0.22 $ 0.27 $ 0.32 $ 0.28 $ 0.26 $ 0.33 $ 0.34 $ 0.29 $ 0.31 $ 0.31 $ 0.38 $ 0.38 $ 0.49 $ 0.49 $ 0.50 $ 0.50 $ 0.48 $ 0.50 $ 0.46 $ 0.43 $ 0.38 $ 0.43 $ 0.59 $ 0.61 $ 0.54 $ 0.42 $ 0.57 $ 0.64 $ 0.59 $ 0.47 $ 0.56 $ 0.63 $ 0.38 $ 0.41 $ 0.62 $ 0.73 $ 0.75 $ 0.78 $ 0.90 $ 0.97 $ 0.96 $ 0.93 $ 1.08 $ 1.15 $ 1.40 $ 1.55 $ 1.79 $ 1.82 $ 1.31 $ 1.14

Exchange Rate (USD/NTD) 29.707 29.604 29.857 29.153 29.445 29.833 29.880 29.541 30.247 30.247 30.123 30.123 30.000 30.000 30.784 30.784 31.533 30.84 31.882 32.627 33.138 32.413 31.77 31.773 31.159 30.285 30.287 30.129 29.326 29.707 30.678 30.834 30.821 31.111 31.187 30.520 30.137 29.918 29.364 28.521 28.053 28.005 27.871 27.846 27.954 29.417 30.316 31.385 30.423 30.672

Note :
(1) Starting in 2015, TSMC prepares financial statements in accordance with 2013 IFRSs version endorsed by Taiwan. Under IFRS, the impact of newly effected GAAP shall be retroactively applied. The consolidated condensed statements of comprehensive income for the three months ended December
31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014 have been updated accordingly.
(2) ADR equals to 5 ordinary shares. ADRs were issued in October 1997.
000000Security B - TSMC Restricted Secret #

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES

Unaudited Consolidated Condensed Cash Flow Statements

(In Millions of New Taiwan Dollars)

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 1Q14 (1) 2Q14 2Q14 (1) 3Q14 3Q14 (1) 4Q14 4Q14 (1) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23
(As Originally (Adjusted) (As Originally (Adjusted) (As Originally (Adjusted) (As Originally (Adjusted)
Stated) Stated) Stated) Stated)
Cash Flows from Operating Activities:
Income Before Income Tax $ 35,673 $ 45,957 $ 53,762 $ 46,284 $ 45,748 $ 60,017 $ 59,349 $ 50,373 $ 53,302 $ 53,297 $ 74,098 $ 74,094 $ 85,381 $ 85,376 $ 89,317 $ 89,312 $ 88,259 $ 98,132 $ 83,394 $ 80,644 $ 72,256 $ 93,406 $ 108,250 $ 112,047 $ 97,822 $ 86,118 $ 100,518 $ 111,675 $ 99,944 $ 87,587 $ 98,897 $ 111,082 $ 68,182 $ 80,545 $ 112,336 $ 128,782 $ 132,147 $ 136,399 $ 155,124 $ 161,107 $ 155,064 $149,391 $173,852 $ 184,819 $ 226,832 $ 265,998 $ 316,691 $ 334,670 $ 244,275 $ 214,675
Depreciation & Amortization 28,005 32,461 34,678 36,205 36,496 38,095 40,439 41,152 41,622 41,622 45,979 45,979 56,233 56,233 56,418 56,418 55,478 54,623 56,149 56,256 55,847 55,275 56,269 56,437 60,172 57,993 71,164 70,814 71,498 71,409 73,609 76,030 77,548 75,048 66,756 67,532 68,554 70,876 94,733 97,562 100,900 103,805 107,027 110,663 111,102 113,225 105,345 107,582 110,323 123,939
Share of Profits of Associates and Joint Venture (22) (604) (712) (735) (654) (1,060) (1,113) (1,145) (955) (955) (1,048) (1,048) (1,037) (1,037) (910) (911) (1,135) (815) (926) (1,256) (841) (892) (881) (881) (667) (618) (752) (949) (682) (266) (998) (1,112) (434) (628) (916) (866) (726) (679) (833) (1,355) (1,267) (1,172) (1,513) (1,651) (1,726) (2,257) (2,078) (1,738) (1,039) (1,134)
Income Tax Paid (48) (10,277) (31) (956) (39) (14,296) (63) (65) (179) (179) (22,424) (22,424) (7,246) (7,246) (69) (69) (118) (26,400) (14,303) (122) (142) (30,303) (15,443) (55) (112) (38,787) (24,452) (269) (380) (31,329) (379) (13,295) (238) (37,590) (142) (14,074) (1,379) (31,164) (18,355) (464) (402) (53,573) (29,365) (158) (642) (59,461) (26,371) (87) (686) (120,147)
Changes in Working Capital & Others (7,506) 1,130 (12,301) 4,000 (7,981) (7,518) (2,810) 12,458 1,071 1,076 (14,856) (14,852) (42,086) (42,081) 8,913 8,919 13,517 (14,473) (6,175) 9,150 (5,591) (10,810) (21,785) 17,672 3,793 (1,306) (29,694) 22,855 (9,654) 2,372 (77,046) 16,667 7,612 386 (36,281) 21,581 4,433 (5,097) (40,497) 2,281 (26,479) (11,012) 68,705 84,527 36,604 21,344 19,111 46,456 32,372 (50,085)
Net Cash Generated by Operating Activities 56,102 68,667 75,396 84,798 73,570 75,238 95,802 102,773 94,861 94,861 81,749 81,749 91,245 91,245 153,669 153,669 156,001 111,067 118,139 144,672 121,529 106,676 126,410 185,220 161,008 103,400 116,784 204,126 160,726 129,773 94,083 189,372 152,670 117,761 141,753 202,955 203,029 170,335 190,172 259,131 227,816 187,439 318,706 378,200 372,170 338,849 412,698 486,883 385,245 167,248

Cash Flows from Investing Activities:

Interest Received 492 393 456 378 315 375 505 596 596 596 652 652 627 627 704 704 875 889 843 1,035 1,541 1,770 1,369 1,673 1,950 2,483 2,344 2,749 3,140 3,496 3,976 4,048 4,575 4,822 3,858 3,620 3,038 2,921 2,007 1,809 1,494 1,546 1,430 1,521 1,527 2,796 5,117 8,644 12,281 14,345
Cash Dividend Received - 1,355 803 1 - 494 2,154 - - - 630 630 3,237 3,237 2 2 - 596 3,428 - - 119 5,497 - - 288 4,103 - - 373 3,048 - - 452 1,513 74 111 529 2,656 191 169 383 1,942 5 - 531 2,479 6 63 833
Acquisitions of:
Property, Plant and Equipment (48,571) (59,467) (78,334) (59,765) (80,418) (78,401) (54,821) (73,955) (114,905) (114,905) (73,328) (73,328) (47,882) (47,882) (52,425) (52,425) (48,876) (53,814) (70,303) (84,524) (38,141) (73,586) (103,776) (112,542) (102,506) (105,188) (61,714) (61,180) (71,847) (59,681) (69,949) (114,105) (75,942) (116,353) (98,118) (170,009) (192,560) (126,698) (99,306) (88,675) (248,029) (166,971) (188,640) (235,556) (262,135) (217,723) (265,970) (336,844) (302,499) (250,534)
Marketable Financial Instruments (2) (1) (1) (31,522) (4) (6) (6) (1,801) (1,402) (1,402) (86) (86) - - (4,486) (4,486) (9,373) (2,397) (7,535) (22,269) (23,611) (28,898) (24,191) (40,201) (26,371) (23,675) (18,311) (34,151) (24,566) (23,170) (24,954) (26,327) (34,759) (64,023) (102,147) (57,068) (56,528) (68,201) (65,201) (77,010) (77,662) (73,923) (43,857) (64,246) (55,990) (65,199) (51,589) (65,040) (34,892) (73,800)
Financial Assets Carried at Cost - (21) 14 (50) (17) - (1) (9) (4) (4) - - - - (19) (19) (32) (55) - (2,499) (187) (32) (22) (293) (202) (273) (715) (123) - - - - - - - - - - - - - - - - - - - - - -
Proceeds from Disposal or Redemption of:
Property, Plant and Equipment 13 101 3 40 13 98 (14) 77 55 55 60 60 48 48 37 37 30 - 40 747 12 15 67 4 152 18 83 73 47 70 19 45 75 80 63 69 66 116 224 201 58 59 97 176 609 64 128 182 73 170
Marketable Financial Instruments 684 388 823 1,781 4,008 2,470 338 748 863 863 2,511 2,511 489 489 26 26 836 47,534 19,521 6,402 5,943 6,828 15,284 12,463 18,836 28,852 10,774 28,999 20,672 19,811 25,765 22,911 41,916 60,672 88,135 56,489 57,186 69,042 65,533 75,486 81,168 74,007 52,933 55,865 29,254 5,603 26,985 45,451 51,050 44,473
Financial Assets Carried at Cost 45 160 32 117 10 2 42 14 29 29 33 33 7 7 19 19 9 78 271 11 14 6 140 - - 50 8 - - - - - - - - - - - - - - - - - - - - - - -
Investments Accounted for Using Equity Method - - - - - - - - - - 3,472 3,472 - - - - - 3,963 - 1,209 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Others (419) (187) 1,693 (750) (940) (1,663) (520) (737) (1,092) (1,092) (438) (438) (1,151) (1,151) 700 700 (637) (904) (1,053) (1,292) (918) (929) (1,252) 394 (1,089) (775) (2,235) 581 (905) (975) (1,378) (3,833) (53) (369) (1,594) (4,780) (306) (7,459) (1,993) (2,961) (1,449) (4,853) (925) (3,108) (1,339) (2,004) (1,540) 5,069 1,692 5,187
Net Cash Used in Investing Activities (47,758) (57,279) (74,511) (89,770) (77,033) (76,631) (52,323) (75,067) (115,860) (115,860) (66,494) (66,494) (44,625) (44,625) (55,442) (55,442) (57,168) (4,110) (54,788) (101,180) (55,347) (94,707) (106,884) (138,502) (109,230) (98,220) (65,663) (63,052) (73,459) (60,076) (63,473) (117,261) (64,188) (114,719) (108,290) (171,605) (188,993) (129,750) (96,080) (90,959) (244,251) (169,752) (177,020) (245,343) (288,074) (275,932) (284,390) (342,532) (272,232) (259,326)

Cash Flows from Financing Activities:

Increase (Decrease) in Short-term Loans 9,452 (4,301) (656) 5,252 230 (4,317) (13,227) (2,322) 8,819 8,819 10,401 10,401 1,390 1,390 (2,046) (2,046) (17,341) (12,993) 27,706 5,767 (4,115) 3,958 - 19,126 (250) (40) - 10,684 (5,775) (27,969) 43,371 14,296 (12,262) 1,064 7,326 35,676 20,348 32,231 (16,804) (67,347) 52,072 3,552 (18,094) (1,862) 30,529 (26,480) (116,009) - - -
Increase in Hedging Financial Liabilities - Bank Loans - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,674
Proceeds from Issuance of Bonds 17,000 - 40,600 4,400 45,000 44,645 41,200 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 24,000 36,000 146,226 30,500 21,100 136,710 49,318 157,465 19,600 108,843 59,651 10,199 19,300 40,700
Repayment of Bonds and Interest – Prepaid - - - - - - - - - - - - - - - - - - - - - - - - - - - - (33,999) 33,999 - - - - - - - - - - - - - - - - - - - -
Repayment of Bonds (4,500) - - - - - - - - - - - - - - - - - - - - (11,472) (12,000) - (10,000) - (28,100) - (16,800) (33,725) (7,500) - (8,400) - (26,500) - (21,600) - (10,200) - (2,600) - - - - - - (4,400) (12,000) -
Proceeds from Long-term Bank Loans - - 50 - - 650 40 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Repayment of Long-term Bank Loans - - (181) (31) (31) (32) - - - - - - - - - - - - - - - (4) (2) (3) (3) (2) (2) (24) - - - - - - - - - - - - - - - - - - - (167) (330) (457)
Interest Paid (235) (58) (390) (53) (332) (42) (868) (89) (864) (864) (25) (25) (1,855) (1,855) (449) (449) (862) (351) (1,492) (451) (690) (599) (1,860) (153) (1,257) (126) (1,524) (576) (998) (545) (1,253) (437) (1,189) (436) (1,433) (539) (977) (219) (429) (156) (773) (273) (1,649) (1,139) (1,104) (3,553) (1,841) (5,721) (1,871) (5,550)
Cash Dividends Paid for Common Stock - - (77,749) - - - (77,773) - - - - - (77,786) (77,786) - - - - (116,683) - - - (155,582) - - - (181,513) - - - (207,443) - - - (207,443) (51,861) (64,826) (64,826) (64,826) (64,826) (64,826) (64,826) (64,826) (71,308) (71,308) (71,309) (71,309) (71,308) (71,308) (71,309)
Proceeds from Exercise of Stock Options 136 4 36 66 107 3 4 11 22 22 11 11 - - 14 14 30 4 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Repurchase of Treasury Stock - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (872) - - - - -
Others (1,256) (153) (1,024) 3 (35) 183 (875) (25) (27) (27) (40) (40) (11) (11) 30,118 30,118 1 (62) (7) - (2) 14 252 5,332 (400) (471) (1,654) (439) (55) (1,106) 390 425 (562) (1,558) (1,062) (460) 2,298 2,726 (6,533) 625 9,645 (132) (73) (873) 4,069 11,579 (898) 1,565 1,722 2,353
Net Cash Generated by (Used in) Financing Activities 20,597 (4,508) (39,314) 9,637 44,939 41,090 (51,499) (2,425) 7,950 7,950 10,347 10,347 (78,262) (78,262) 27,637 27,637 (18,172) (13,402) (90,476) 5,316 (4,807) (8,103) (169,192) 24,302 (11,910) (639) (212,793) 9,645 (57,627) (29,346) (172,435) 14,284 (22,413) (930) (229,112) (17,184) (40,757) 5,912 47,434 (101,204) 14,618 75,031 (35,324) 82,283 (19,086) 19,080 (130,406) (69,832) (64,487) (26,589)

Effect of Exchange Rate Changes on Cash and Cash Equivalents and Others (1,593) 741 (1,274) 8 1,142 107 (1,209) 810 2,051 2,051 (2,245) (2,245) 2,472 2,472 6,701 6,701 (1,698) (2,072) 13,961 (1,850) (6,080) 509 (8,721) 6,262 (16,397) 1,201 (718) (5,404) (5,249) 14,096 (1,673) 2,688 1,787 1,914 (1,618) (11,197) 2,099 (9,660) (4,945) (10,992) 6,374 (9,464) (532) (3,962) 21,590 19,602 44,922 (27,718) (6,107) 10,158

Net Increase (Decrease) in Cash and Cash Equivalents 27,348 7,621 (39,703) 4,673 42,618 39,804 (9,229) 26,091 (10,998) (10,998) 23,357 23,357 (29,170) (29,170) 132,565 132,565 78,963 91,483 (13,164) 46,958 55,295 4,375 (158,387) 77,282 23,471 5,742 (162,390) 145,315 24,391 54,447 (143,498) 89,083 67,856 4,026 (197,267) 2,969 (24,622) 36,837 136,581 55,976 4,557 83,254 105,830 211,178 86,600 101,599 42,824 46,801 42,419 (108,509)

Cash and Cash Equivalents at Beginning of Period 143,472 170,820 178,441 138,738 143,411 186,029 225,833 216,604 242,695 242,695 231,697 231,697 255,054 255,054 225,884 225,884 358,449 437,412 528,895 515,731 562,689 617,984 622,359 463,972 541,254 564,725 570,467 408,077 553,392 577,783 632,230 488,732 577,815 645,671 649,697 452,430 455,399 430,777 467,614 604,195 660,171 664,728 747,982 853,812 1,064,990 1,151,590 1,253,189 1,296,013 1,342,814 1,385,233

Cash and Cash Equivalents at End of Period $ 170,820 $ 178,441 $ 138,738 $ 143,411 $ 186,029 $ 225,833 $ 216,604 $ 242,695 $ 231,697 $ 231,697 $ 255,054 $ 255,054 $ 225,884 $ 225,884 $ 358,449 $ 358,449 $ 437,412 $ 528,895 $ 515,731 $ 562,689 $ 617,984 $ 622,359 $ 463,972 $ 541,254 $ 564,725 $ 570,467 $ 408,077 $ 553,392 $ 577,783 $ 632,230 $ 488,732 $ 577,815 $ 645,671 $ 649,697 $ 452,430 $ 455,399 $ 430,777 $ 467,614 $ 604,195 $ 660,171 $ 664,728 $747,982 $853,812 $ 1,064,990 $ 1,151,590 $ 1,253,189 $ 1,296,013 $ 1,342,814 $ 1,385,233 $ 1,276,724

Note:
(1) Starting in 2015, TSMC prepares financial statements in accordance with 2013 IFRSs version endorsed by Taiwan. Under IFRS, the impact of newly effected GAAP shall be retroactively applied. The consolidated condensed cash flow statements for the three months ended December 31, 2014, September 30, 2014, June
30, 2014 and March 31, 2014 have been updated accordingly.