TSMC Reports Fourth Quarter EPS of NT$6.41

Hsinchu, Tai­wan, R.O.C., Janu­a­ry 13, 2022 TSMC today announ­ced con­so­li­da­ted reve­nue of
NT$438.19 bil­li­on, net inco­me of NT$166.23 bil­li­on, and dilu­t­ed ear­nings per share of NT$6.41
(US$1.15 per ADR unit) for the fourth quar­ter ended December 31, 2021.

Year-over-year, fourth quar­ter reve­nue incre­a­sed 21.2% while net inco­me and dilu­t­ed EPS both
incre­a­sed 16.4%. Compa­red to third quar­ter 2021, fourth quar­ter results repre­sen­ted a 5.7%
incre­a­se in reve­nue and a 6.4% incre­a­se in net income. All figu­res were pre­pa­red in accordance
with TIFRS on a con­so­li­da­ted basis.

In US dol­lars, fourth quar­ter reve­nue was $15.74 billi­on, which incre­a­sed 24.1% year-over-year and
incre­a­sed 5.8% from the pre­vious quar­ter.

Gross mar­gin for the quar­ter was 52.7%, ope­ra­ting mar­gin was 41.7%, and net pro­fit mar­gin was

In the fourth quar­ter, ship­ments of 5-nano­me­ter accoun­ted for 23% of total wafer reve­nue; 7-
nano­me­ter accoun­ted for 27%. Advan­ced tech­no­lo­gies, defi­ned as 7-nano­me­ter and more
advan­ced tech­no­lo­gies, accoun­ted for 50% of total wafer reve­nue.

Our fourth quar­ter busi­ness was sup­por­ted by strong demand for our indus­try-lea­ding 5-nano­me­ter
tech­no­lo­gy,” said Wen­dell Huang, VP and Chief Finan­cial Offi­cer of TSMC. Moving into first
quar­ter 2022, we expect our busi­ness to be sup­por­ted by HPC-rela­ted demand, con­ti­nued reco­very
in the auto­mo­ti­ve seg­ment, and a mil­der smart­pho­ne sea­so­na­li­ty than in recent years.

Based on the Com­pa­nys cur­rent busi­ness out­look, manage­ment expects the over­all per­for­mance
for first quar­ter 2022 to be as fol­lows:

Reve­nue is expec­ted to be bet­ween US$16.6 bil­li­on and US$17.2 bil­li­on;

And, based on the exchan­ge rate assump­ti­on of 1 US dollar to 27.6 NT dol­lars,

Gross pro­fit mar­gin is expec­ted to be bet­ween 53% and 55%;

Ope­ra­ting pro­fit mar­gin is expec­ted to be bet­ween 42% and 44%.

The manage­ment fur­ther expects the 2022 capi­tal bud­get to be bet­ween US$40 bil­li­on and
US$44 bil­li­on.