Earnings release
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July 17, 2025 TSMC Page 1 of 2 Hsinchu, Taiwan, R.O.C., July 17, 2025 -- TSMC today announced consolidated revenue of NT$933.79 billion, net income of NT $398.27 billion, and diluted earnings per share of NT$ 15.36 (US$2.47 per ADR unit) for the second quarter ended June 30, 2025. Year-over-year, second quarter revenue increased 38.6%, while net income and diluted EPS both increased 60.7%. Compared to first quarter 2025, second quarter results represented a 11.3% increase in revenue and a 10.2% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis. In US dollars, second quarter revenue was $30.07 billion, which increased 44.4% year-over-year and increased 17.8% from the previous quarter. Gross margin for the quarter was 58.6%, operating margin was 49.6%, and net profit margin was 42.7%. In the second quarter, shipments of 3 -nanometer accounted for 24% of total wafer revenue; 5 - nanometer accounted for 36%; 7-nanometer accounted for 14%. Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 74% of total wafer revenue. “Our business in the second quarter was supported by continued robust AI and HPC -related demand,” said Wendell Huang, Senior VP and Chief Financial Officer of TSMC. “Moving into third quarter 2025, we expect our business to be supported by strong demand for our leading-edge process technologies.” Based on the Company’s current business outlook, management expects the overall performance for third quarter 2025 to be as follows: • Revenue is expected to be between US$31.8 billion and US$33.0 billion; And, based on the exchange rate assumption of 1 US dollar to 29.0 NT dollars, • Gross profit margin is expected to be between 55.5% and 57.5%; • Operating profit margin is expected to be between 45.5% and 47.5%. TSMC Reports Second Quarter EPS of NT$15.36
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July 17, 2025 TSMC Page 2 of 2 Profile TSMC pioneered the pure-play foundry business model when it was founded in 1987, and has been the world’s leading dedicated semiconductor foundry ever since. The Company supports a thriving ecosystem of global customers and partners with the industry’s leading process technologies and portfolio of design enablement solutions to unleash innovation for the global semiconductor industry. With global operations spanning Asia, Europe, and North America, TSMC serves as a committed corporate citizen around the world. TSMC deployed 288 distinct process technologies, and manufactured 11,878 products for 522 customers in 2024 by providing the broadest range of advanced, specialty and advanced packaging technology services. The Company is headquartered in Hsinchu, Taiwan. For more information please visit https://www.tsmc.com. (Management Report and Tables Follow) CONTACT Jeff Su Investor Relations Division TSMC invest@tsmc.com 886-3-568-2089 Safe Harbor Notice: The statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. TSMC cautions readers that forward-looking statements are subject to significant risks and uncertainties and are based on TSMC’s current expectations. Actual results may differ materially from those contained in such forward-looking statements for a variety of reasons including, among othe rs, risks associated with cyclicality and market conditions in the semiconductor industry; demand and supply for TSMC’s foundry manufacturing capacity in particular and for foundry manufacturing capacity in general; intense competition; the failure of one or more significant customers to continue to place the same level of orders with us; TSMC’s ability to remain a technological leader in the semiconductor industry; TSMC’s ability to manage its capacity; TSMC’s ability to obtain, preserve and defend its intellectual property rights; natural disasters and other unexpected events which may disrupt production; and exchange rate fluctuations . Additional information as to these and other risk factors that may cause TS MC’s actual results to differ materially from TSMC’s forward -looking statements may be found in TSMC’s 2024 Annual Report on Form 20-F, filed with the United States Securities and Exchange Commission (the “SEC”) on April 17, 2025, and such other documents as TSMC may file with, or submit to, the SEC from time to time. Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
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FOR IMMEDIATE RELEASE 2Q25 Financial Highlights: Second Quarter 2025 ⚫ Net revenue was NT$933.79 billion, representing an 11.3% increase from NT$839.25 billion in 1Q25 and a 38.6% increase from NT$673.51 billion in 2Q24. ⚫ Gross margin was 58.6%, 0.2 percentage points lower than 1Q25 and 5.4 percentage points higher than 2Q24. ⚫ Operating margin was 49.6%, up 1.1 percentage points from 1Q25 and up 7.1 percentage points from 2Q24. ⚫ Non-operating items were a gain of NT$29.61 billion, compared to a gain of NT$23.82 billion in 1Q25 and a gain of NT$19.75 billion in 2Q24. ⚫ Net income attributable to shareholders of the parent company was NT$398.27 billion, up 10.2% from 1Q25 and up 60.7% from 2Q24. Net profit margin was 42.7% and diluted EPS was NT$15.36. Summary: (Amounts are on consolidated basis and are in NT$ billions unless otherwise noted) 2Q25 1Q25 2Q24 QoQ YoY EPS (NT$ per common share) 15.36 13.94 9.56 10.2% 60.7% (US$ per ADR unit) 2.47 2.12 1.48 Net Revenue (US$ billions) 30.07 25.53 20.82 17.8% 44.4% Net Revenue 933.79 839.25 673.51 11.3% 38.6% Gross Profit 547.37 493.40 358.13 10.9% 52.8% Gross Margin 58.6% 58.8% 53.2% Operating Expenses (84.51) (85.19) (70.30) -0.8% 20.2% Other Operating Income and Expenses 0.56 (1.13) (1.27) Operating Income 463.42 407.08 286.56 13.8% 61.7% Operating Margin 49.6% 48.5% 42.5% Non-Operating Items 29.61 23.82 19.75 Net Income Attributable to Shareholders of the Parent Company 398.27 361.56 247.85 10.2% 60.7% Net Profit Margin 42.7% 43.1% 36.8% Wafer Shipment (kpcs 12 inch-equiv.) 3,718 3,259 3,125 14.1% 19.0% Average Exchange Rate--USD/NTD 31.05 32.88 32.35 -5.5% -4.0% Note: Diluted weighted average outstanding shares were 25,929mn units in 2Q25 Quarterly Management Report July 17, 2025 Operating Results Review: CONTACT Jeff Su Investor Relations Division invest@tsmc.com 886-3-568-2089 Topics in This Report: • Revenue Analysis • Profit & Expense Analysis • Financial Condition Review • Cash Flow • CapEx • Recap of Recent Important Events & Announcements
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TSMC July 17, 2025 Page 2 Wafer Revenue by Technology 2Q25 1Q25 2Q24 3nm 24% 22% 15% 5nm 36% 36% 35% 7nm 14% 15% 17% 16/20nm 7% 7% 9% 28nm 7% 7% 8% 40/45nm 3% 3% 5% 65nm 3% 4% 3% 90nm 1% 1% 1% 0.11/0.13um 2% 2% 2% 0.15/0.18um 3% 3% 4% 0.25um and above 0% 0% 1% Net Revenue by Platform 2Q25 1Q25 2Q24 High Performance Computing 60% 59% 52% Smartphone 27% 28% 33% Internet of Things 5% 5% 6% Automotive 5% 5% 5% Digital Consumer Electronics 1% 1% 2% Others 2% 2% 2% Net Revenue by Geography 2Q25 1Q25 2Q24 North America 75% 77% 65% China 9% 7% 16% Asia Pacific 9% 9% 9% Japan 4% 4% 6% EMEA 3% 3% 4% II - 1. Gross Profit Analysis (In NT$ billions) 2Q25 1Q25 2Q24 Net Revenue 933.79 839.25 673.51 Cost of Revenue (386.42) (345.85) (315.38) Gross Profit 547.37 493.40 358.13 Gross Margin 58.6% 58.8% 53.2% I. Revenue Analysis Revenue Analysis: In the second quarter, revenue increased 11.3% quarter-over-quarter, as our business was supported by strong demand for our industry -leading 3nm and 5nm technologies, partially offset by a n unfavorable foreign exchange rate. By technology, 3nm process technology con tributed 24% of total wafer revenue in 2Q25 while 5nm and 7nm accounted for 3 6% and 14% respectively. Advanced technologies ( 7nm and below) accounted for 74% of total wafer revenue. By platform, HPC and Smartphone represented 60% and 27% of net revenue respectively, while IoT, Automotive, DCE, and Others each represented 5%, 5%, 1%, and 2%. Sequentially, revenue from HPC, Smartphone, IoT, DCE, and Others increased 14%, 7%, 14%, 30%, and 6% respectively. Automotive remained flat from last quarter. From a geographic perspective, revenue from customers based in North America accounted for 75% of total net revenue in 2Q25 while revenue from China, Asia Pacific, Japan, and EMEA (Europe, Middle East, and Africa) accounted for 9%, 9%, 4%, and 3% of total net revenue respectively. II. Profit & Expense Analysis Gross Profit Analysis: Gross margin was 58.6% in 2Q25, 0.2 percentage points lower than 1Q25, primarily due to an unfavorable foreign ex change rate and margin dilution from our overseas fabs, partially balanced by higher capacity utilization rate and cost improvement efforts.
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TSMC July 17, 2025 Page 3 II - 2. Operating Income Analysis (In NT$ billions) 2Q25 1Q25 2Q24 Total Operating Expenses (84.51) (85.19) (70.30) Research & Development (61.28) (56.55) (48.06) SG&A (23.23) (28.64) (22.24) Other Operating Income and Expenses 0.56 (1.13) (1.27) Operating Income 463.42 407.08 286.56 Operating Margin 49.6% 48.5% 42.5% Total Operating Expenses as % of Net Revenue 9.1% 10.2% 10.5% II - 3. Non-Operating Items (In NT$ billions) 2Q25 1Q25 2Q24 L-T Investments 1.22 1.37 1.15 Net Interest Income (Expenses) 21.50 22.18 18.34 Other Gains and Losses 6.89 0.27 0.26 Total Non-Operating Items 29.61 23.82 19.75 II - 4. Net Profit and EPS 2Q25 1Q25 2Q24 (In NT$ billions) Income before Tax 493.03 430.90 306.31 Income Tax Expenses (95.55) (70.17) (58.65) Effective Tax Rate 19.4% 16.3% 19.2% Net Income Attributable to the Parent Company 398.27 361.56 247.85 Net Profit Margin 42.7% 43.1% 36.8% EPS (NT$ per common share) 15.36 13.94 9.56 Non-Operating Items: Total non -operating items were a gain of NT$ 29.61 billion in 2Q25, compared to a gain of NT$23.82 billion in 1Q25. The increase was mainly due to the injection of US$10 billion capital in 2Q25 to TSMC Global, a BVI company, which effectively reduced our USD exposure during a period of rapid NTD appreciation. This is more likely to be a one-time event. Operating Income Analysis: Total operating expenses decreased by NT$0.68 billion to NT$84.51 billion in 2Q25, representing 9.1% of net revenue in 2Q25, as compared to 1 0.2% in 1Q2 5, mainly due to operating leverage . Operating margin improved 1.1 percentage points sequentially to 4 9.6% in 2Q25. Net Profit and EPS: Net income attributable to shareholde rs of the parent company was N T$398.27 billion in 2Q25, up 10.2% from 1Q25 and up 60.7% from 2Q24. The higher income tax expenses during the second quarter mainly reflected the tax on undistributed retained earnings.
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TSMC July 17, 2025 Page 4 (In NT$ billions) 2Q25 1Q25 2Q24 Cash & Marketable Securities 2,634.43 2,703.09 2,048.64 Accounts Receivable 235.69 243.95 210.21 Inventories 304.19 293.39 272.49 Other Current Assets 90.61 105.24 60.32 Total Current Assets 3,264.92 3,345.67 2,591.66 Accounts Payable 246.19 275.94 200.69 Current Portion of Bonds Payable and Bank Loans 94.21 61.77 23.08 Dividends Payable 246.67 233.39 194.60 Accrued Liabilities and Others 790.24 828.70 630.55 Total Current Liabilities 1,377.31 1,399.80 1,048.92 Current Ratio (x) 2.4 2.4 2.5 Net Working Capital 1,887.61 1,945.87 1,542.74 III - 1. Liquidity Analysis (Balance Sheet Items) III - 2. Receivable/Inventory Days (In Number of Days) 2Q25 1Q25 2Q24 Days of Receivable 23 28 28 Days of Inventory 76 83 83 III - 3. Debt Service (In NT$ billions) 2Q25 1Q25 2Q24 Cash & Marketable Securities 2,634.43 2,703.09 2,048.64 Interest-Bearing Debts (977.89) (1,048.76) (997.42) Net Cash Reserves 1,656.54 1,654.33 1,051.22 Receivable and Inventory Days: Days of receivable decreased 5 days to 23 days in 2Q25. Days of inventory decreased 7 days to 76 days in 2Q25, primarily due to higher N3 and N5 wafer shipments. Liquidity Analysis: On a sequential basis, total current assets decreased by NT$ 80.75 billion, mainly due to the decrease of NT$68.66 billion in cash and marketable securities. Total current liabilities decreased by NT$22.49 billion, due to (1) the decrease of N T$38.46 billion in accrued liabilities and others and (2) the decrease of NT$29.75 billion in accounts payable, partially balanced by (3) the increase of NT$32.44 billion in current portion of bonds payable and bank loans and (4) the increase of NT$13.28 billion in dividends payable. Net working capital was NT$1,887.61 billion and current ratio was 2.4x in 2Q25. Debt Service: Net cash reserves increased by NT$2.21 billion to NT$1,656.54 billion in 2Q25, mainly due to the decrease of NT$70.87 billion in interest-bearing debts, offset by the decrease of NT$68.66 billion in cash and marketable securities in 2Q25. Interest-bearing debts decreased NT$70.87 billion in 2Q25, mainly due to changes in foreign exchange rates. III. Financial Condition Review
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TSMC July 17, 2025 Page 5 IV. Cash Flow IV - 1. Quarterly Cash Flow Analysis (In NT$ billions) 2Q25 1Q25 2Q24 Income before Tax 493.03 430.90 306.31 Depreciation & Amortization 188.07 175.13 165.17 Other Operating Sources/(Uses) (184.03) 19.54 (93.81) Net Operating Sources/(Uses) 497.07 625.57 377.67 Capital Expenditures (297.22) (330.83) (205.68) Marketable Financial Instruments 11.75 (16.81) (18.76) Other Investing Sources/(Uses) 56.98 57.45 26.83 Net Investing Sources/(Uses) (228.49) (290.19) (197.61) Cash Dividends (116.70) (103.72) (90.76) Bonds Payable 3.70 16.20 11.50 Other Financing Sources/(Uses) (6.70) 2.85 (10.99) Net Financing Sources/(Uses) (119.70) (84.67) (90.25) Exchange Rate Changes (179.16) 16.46 11.12 Cash Position Net Changes (30.28) 267.17 100.93 Ending Cash Balance 2,364.52 2,394.80 1,799.13 (In NT$ billions) Free Cash Flow 294.74 4Q24 258.26 2Q25 199.85 1Q25 3Q24 184.91 0 100 200 300 400 500 600 700 2Q25 1Q25 4Q24 3Q24 IV - 2. Free Cash Flow Free Cash Flow Operating Cash Flow CAPEX (In NT$ billions) V. Capital Expenditures (in US$ billions) 2Q25 1Q25 YTD Capital Expenditures 9.63 10.06 19.69 Summary of Cash Flow: During the second quarter, net cash generated from operating activities totaled NT$ 497.07 billion, including (1) NT $493.03 billion from income before tax, (2) NT$188.07 billion from depreciation & amortization expenses, and (3) NT$184.03 billion for other operating uses. The other operating uses were mainly attributable to the income tax payment of NT$1 27.35 billion and changes in working capital of NT$55.46 billion. Net cash used in investing activities was NT$ 228.49 billion in 2Q25, primarily attributable to capital expenditures of NT$297.22 billion. Net cash used in financing activities was NT$ 119.70 billion, mai nly reflecting the payment of 3Q24 cash dividends of NT$116.70 billion. Taking the unfavorable exchange rate into consideration, cash position decreased by NT$30.28 billion to NT$2,364.52 billion at the end of 2Q25. Capital Expenditures: Capital expenditures for TSMC on a consolidated basis totaled US$9.63 billion in 2Q25. V. CapEx Operating and Free Cash Flow: Free cash flow decreased by NT$94.89 billion to NT$199.85 billion in 2Q25 as a result of lower operating cash flow , primarily due to the income tax payment of NT$127.35 billion.
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TSMC July 17, 2025 Page 6 ⚫ “TSMC-UTokyo Lab” Launched to Promote Advanced Semiconductor Research, Education and Talent Incubation (2025/06/12) ⚫ TSMC Board of Directors Approved NT$5.00 Cash Dividend for the First Quarter of 2025 and Set September 16, 2025 as Ex-Dividend Date, September 22, 2025 as the Record Date and October 9, 2025 as the Distribution Date (2025/05/13) ⚫ TSMC Unveils Next-Generation A14 Process at North America Technology Symposium (2025/04/24) ⚫ TSMC Commits to Ambitious Carbon Reduction Path in Line with Science Based Targets Initiative (2025/04/22) VI. Recap of Recent Important Events & Announcements
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ASSETS USD NTD % NTD % NTD % Amount % Amount % Current Assets Cash and Cash Equivalents 81,105$ 2,364,524$ 33.7 2,394,804$ 33.6 1,799,127$ 30.1 (30,280)$ (1.3) 565,397$ 31.4 Investments in Marketable Financial Instruments 9,258 269,905 3.9 308,281 4.3 249,508 4.2 (38,376) (12.4) 20,397 8.2 Accounts Receivable 8,084 235,685 3.4 243,949 3.4 210,210 3.5 (8,264) (3.4) 25,475 12.1 Inventories 10,434 304,194 4.3 293,388 4.1 272,491 4.5 10,806 3.7 31,703 11.6 Other Current Assets 3,108 90,610 1.3 105,242 1.5 60,322 1.0 (14,632) (13.9) 30,288 50.2 Total Current Assets 111,989 3,264,918 46.6 3,345,664 46.9 2,591,658 43.3 (80,746) (2.4) 673,260 26.0 Non-current Assets Long-term Investments 4,714 137,427 2.0 160,793 2.2 140,220 2.4 (23,366) (14.5) (2,793) (2.0) Property, Plant and Equipment 116,149 3,386,206 48.3 3,400,806 47.7 3,105,860 51.9 (14,600) (0.4) 280,346 9.0 Right-of-use, Intangible and Other Non-current Assets 7,470 217,799 3.1 226,024 3.2 144,626 2.4 (8,225) (3.6) 73,173 50.6 Total Non-current Assets 128,333 3,741,432 53.4 3,787,623 53.1 3,390,706 56.7 (46,191) (1.2) 350,726 10.3 Total Assets 240,322$ 7,006,350$ 100.0 7,133,287$ 100.0 5,982,364$ 100.0 (126,937)$ (1.8) 1,023,986$ 17.1 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable 2,908$ 84,772$ 1.2 76,854$ 1.1 63,947$ 1.1 7,918$ 10.3 20,825$ 32.6 Payables to Contractors and Equipment Suppliers 5,537 161,416 2.3 199,087 2.8 136,744 2.3 (37,671) (18.9) 24,672 18.0 Cash Dividends Payable 8,461 246,672 3.5 233,394 3.3 194,600 3.2 13,278 5.7 52,072 26.8 Accrued Expenses and Other Current Liabilities 27,106 790,240 11.3 828,696 11.6 630,549 10.5 (38,456) (4.6) 159,691 25.3 Current Portion of Bonds Payable and Bank Loans 3,231 94,214 1.4 61,772 0.8 23,076 0.4 32,442 52.5 71,138 308.3 Total Current Liabilities 47,243 1,377,314 19.7 1,399,803 19.6 1,048,916 17.5 (22,489) (1.6) 328,398 31.3 Non-current Liabilities Bonds Payable 29,105 848,535 12.1 948,257 13.3 965,314 16.1 (99,722) (10.5) (116,779) (12.1) Other Non-current Liabilities 5,621 163,869 2.3 183,603 2.6 147,986 2.5 (19,734) (10.7) 15,883 10.7 Total Non-current Liabilities 34,726 1,012,404 14.4 1,131,860 15.9 1,113,300 18.6 (119,456) (10.6) (100,896) (9.1) Total Liabilities 81,969 2,389,718 34.1 2,531,663 35.5 2,162,216 36.1 (141,945) (5.6) 227,502 10.5 Equity Attributable to Shareholders of the Parent Capital Stock at Par Value 8,895 259,326 3.7 259,326 3.6 259,336 4.3 - - (10) - Capital Surplus 2,515 73,326 1.1 73,307 1.0 70,941 1.2 19 - 2,385 3.4 Legal Capital Reserve 10,672 311,147 4.4 311,147 4.4 311,147 5.2 - - - - Unappropriated Earnings 141,310 4,119,741 58.8 3,851,130 54.0 3,127,528 52.3 268,611 7.0 992,213 31.7 Treasury Stock - - - - - (3,089) - - - 3,089 (100.0) Others (6,259) (182,466) (2.6) 69,252 1.0 25,540 0.4 (251,718) (363.5) (208,006) (814.4) Equity Attributable to Shareholders of the Parent 157,133 4,581,074 65.4 4,564,162 64.0 3,791,403 63.4 16,912 0.4 789,671 20.8 Noncontrolling Interests 1,220 35,558 0.5 37,462 0.5 28,745 0.5 (1,904) (5.1) 6,813 23.7 Total Shareholders' Equity 158,353 4,616,632 65.9 4,601,624 64.5 3,820,148 63.9 15,008 0.3 796,484 20.8 Total Liabilities & Shareholders' Equity 240,322$ 7,006,350$ 100.0 7,133,287$ 100.0 5,982,364$ 100.0 (126,937)$ (1.8) 1,023,986$ 17.1 Note : (1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the rate of NT$29.154 as of June 30, 2025. TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Consolidated Condensed Balance Sheets (Unaudited) (Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD")) (1) June 30, 2025 March 31, 2025 June 30, 2024 QoQ YoY
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USD NTD % NTD % NTD % NTD % NTD % Net Revenue 30,070$ 933,792$ 100.0 839,254$ 100.0 673,510$ 100.0 94,538$ 11.3 260,282$ 38.6 Cost of Revenue (12,444) (386,423) (41.4) (345,859) (41.2) (315,385) (46.8) (40,564) 11.7 (71,038) 22.5 Gross Profit 17,626 547,369 58.6 493,395 58.8 358,125 53.2 53,974 10.9 189,244 52.8 Operating Expenses Research and Development Expenses (1,973) (61,280) (6.6) (56,547) (6.8) (48,058) (7.2) (4,733) 8.4 (13,222) 27.5 Sales, General and Administrative Expenses (748) (23,228) (2.5) (28,639) (3.4) (22,238) (3.3) 5,411 (18.9) (990) 4.5 Total Operating Expenses (2,721) (84,508) (9.1) (85,186) (10.2) (70,296) (10.5) 678 (0.8) (14,212) 20.2 Other Operating Income and Expenses 18 562 0.1 (1,128) (0.1) (1,273) (0.2) 1,690 NM 1,835 NM Income from Operations 14,923 463,423 49.6 407,081 48.5 286,556 42.5 56,342 13.8 176,867 61.7 Non-operating Income and Expenses Share of Profits of Associates 39 1,222 0.1 1,368 0.2 1,152 0.2 (146) (10.7) 70 6.1 Net Interest Income (Expenses) 693 21,501 2.3 22,182 2.6 18,341 2.7 (681) (3.1) 3,160 17.2 Other Gains and Losses 222 6,890 0.8 264 - 262 0.1 6,626 2,509.8 6,628 2,529.8 Total Non-operating Income and Expenses 954 29,613 3.2 23,814 2.8 19,755 3.0 5,799 24.4 9,858 49.9 Income Before Income Tax 15,877 493,036 52.8 430,895 51.3 306,311 45.5 62,141 14.4 186,725 61.0 Income Tax Expenses (3,077) (95,543) (10.2) (70,162) (8.3) (58,649) (8.7) (25,381) 36.2 (36,894) 62.9 Net Income 12,800 397,493 42.6 360,733 43.0 247,662 36.8 36,760 10.2 149,831 60.5 Other Comprehensive Income (Losses) (8,195) (254,502) (27.3) 31,897 3.8 13,464 2.0 (286,399) (897.9) (267,966) (1,990.2) Comprehensive Income 4,605$ 142,991$ 15.3 392,630$ 46.8 261,126$ 38.8 (249,639)$ (63.6) (118,135)$ (45.2) Net Income (Losses) Attributable to: Shareholders of the Parent 12,825$ 398,273$ 42.7 361,564$ 43.1 247,845$ 36.8 36,709$ 10.2 150,428$ 60.7 Noncontrolling Interests (25) (780) (0.1) (831) (0.1) (183) - 51 6.1 (597) (326.2) 12,800$ 397,493$ 42.6 360,733$ 43.0 247,662$ 36.8 36,760$ 10.2 149,831$ 60.5 Earnings per Share - Diluted 0.49$ 15.36$ 13.94$ 9.56$ 1.42$ 10.2 5.80$ 60.7 Earnings per ADR - Diluted (2) 2.47$ 76.80$ 69.72$ 47.79$ 7.08$ 10.2 29.01$ 60.7 Weighted Average Outstanding Shares - Diluted ('M) 25,929 25,929 25,931. Note: (1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$31.054 for the second quarter of 2025. (2) 1 ADR equals 5 ordinary shares. TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Consolidated Condensed Statements of Comprehensive Income (Unaudited) For the Three Months Ended June 30, 2025, March 31, 2025, June 30, 2024 (Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD") (1) Except for Per Share Amounts and Shares Outstanding) 2Q 2025 1Q 2025 2Q 2024 QoQ YoY
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USD NTD % NTD % NTD % Net Revenue 55,596$ 1,773,046$ 100.0 1,266,154$ 100.0 506,892$ 40.0 Cost of Revenue (22,961) (732,282) (41.3) (593,524) (46.9) (138,758) 23.4 Gross Profit 32,635 1,040,764 58.7 672,630 53.1 368,134 54.7 Operating Expenses Research and Development Expenses (3,695) (117,827) (6.7) (94,167) (7.4) (23,660) 25.1 Sales, General and Administrative Expenses (1,626) (51,867) (2.9) (41,486) (3.3) (10,381) 25.0 Total Operating Expenses (5,321) (169,694) (9.6) (135,653) (10.7) (34,041) 25.1 Other Operating Income and Expenses (18) (566) - (1,403) (0.1) 837 59.7 Income from Operations 27,296 870,504 49.1 535,574 42.3 334,930 62.5 Non-operating Income and Expenses Share of Profits of Associates 81 2,590 0.1 2,030 0.1 560 27.6 Net Interest Income (Expenses) 1,370 43,683 2.5 35,002 2.8 8,681 24.8 Other Gains and Losses 225 7,154 0.4 248 - 6,906 2,784.7 Total Non-operating Income and Expenses 1,676 53,427 3.0 37,280 2.9 16,147 43.3 Income before Income Tax 28,972 923,931 52.1 572,854 45.2 351,077 61.3 Income Tax Expenses (5,196) (165,705) (9.3) (99,971) (7.9) (65,734) 65.8 Net Income 23,776 758,226 42.8 472,883 37.3 285,343 60.3 Other Comprehensive Income (Losses) (6,981) (222,605) (12.6) 54,738 4.4 (277,343) (506.7) Comprehensive Income 16,795$ 535,621$ 30.2 527,621$ 41.7 8,000$ 1.5 Net Income (Losses) Attributable to: Shareholders of the Parent 23,826$ 759,837$ 42.9 473,330$ 37.4 286,507$ 60.5 Noncontrolling interests (50) (1,611) (0.1) (447) (0.1) (1,164) (260.4) 23,776$ 758,226$ 42.8 472,883$ 37.3 285,343$ 60.3 Earnings per Share - Diluted 0.92$ 29.30$ 18.25$ 11.05$ 60.5 Earnings per ADR - Diluted (2) 4.59$ 146.52$ 91.27$ 55.25$ 60.5 Weighted Average Outstanding Shares - Diluted ('M) 25,929 25,930 Note: (1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$31.891 for the six months ended June 30, 2025. (2) 1 ADR equals 5 ordinary shares. 2025 2024 YoY TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Consolidated Condensed Statements of Comprehensive Income (Unaudited) (Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD") (1) Except for Per Share Amounts and Shares Outstanding) For the Six Months Ended June 30
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2Q 2025 1Q 2025 2Q 2024 USD NTD NTD NTD NTD Cash Flows from Operating Activities: Income Before Income Tax 28,972$ 923,931$ 493,036$ 430,895$ 306,311$ Depreciation & Amortization 11,388 363,197 188,058 175,139 165,166 Share of Profits of Associates (81) (2,590) (1,222) (1,368) (1,152) Income Taxes Paid (4,042) (128,884) (127,347) (1,537) (88,103) Changes in Working Capital & Others (1,035) (33,016) (55,461) 22,445 (4,554) Net Cash Generated by Operating Activities 35,202 1,122,638 497,064 625,574 377,668 Cash Flows from Investing Activities: Interest Received 1,582 50,444 26,025 24,419 19,195 Cash Dividend Received 37 1,186 1,091 95 805 Acquisitions of: Property, Plant and Equipment (19,694) (628,053) (297,226) (330,827) (205,674) Marketable Financial Instruments (4,162) (132,730) (61,989) (70,741) (63,263) Proceeds from Disposal or Redemption of: Property, Plant and Equipment 8 245 117 128 156 Marketable Financial Instruments 4,004 127,670 73,744 53,926 44,500 Others 1,961 62,557 29,749 32,808 6,673 Net Cash Used In Investing Activities (16,264) (518,681) (228,489) (290,192) (197,608) Cash Flows from Financing Activities: Decrease in Hedging Financial Liabilities - Bank Loans 14 430 430 - - Proceeds from Issuance of Bonds 1,044 33,300 14,100 19,200 11,500 Repayment of Bonds (420) (13,400) (10,400) (3,000) - Proceeds from Long-term Bank Loans 169 5,395 - 5,395 - Repayment of Long-term Bank Loans (45) (1,438) (719) (719) (543) Interest Paid (305) (9,739) (7,223) (2,516) (6,641) Cash Dividends Paid for Common Stock (6,912) (220,419) (116,697) (103,722) (90,762) Repurchase of Treasury Stock - - - - (3,089) Others 47 1,505 809 696 (710) Net Cash Used in Financing Activities (6,408) (204,366) (119,700) (84,666) (90,245) Effect of Exchange Rate Changes on Cash and Cash Equivalents (5,102) (162,694) (179,155) 16,461 11,116 Net Increase (Decrease) in Cash and Cash Equivalents 7,428 236,897 (30,280) 267,177 100,931 Cash and Cash Equivalents at Beginning of Period 66,716 2,127,627 2,394,804 2,127,627 1,698,196 Cash and Cash Equivalents at End of Period 74,144$ 2,364,524$ 2,364,524$ 2,394,804$ 1,799,127$ Note: (1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NT$31.891 for the six months ended June 30, 2025. Six Months 2025 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Consolidated Condensed Cash Flow Statements (Unaudited) For the Six Months Ended June 30, 2025 and for the Three Months Ended June 30, 2025, March 31, 2025 and June 30, 2024 (Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars ("USD")) (1)