Taiwan Semiconductor Manufacturing Company Ltd. (TSMC), the world's leading semiconductor foundry, reported a series of financial activities and strategic investments for the year ended December 31, 2023. The company's foundry segment, which engages in the manufacturing, sales, packaging, testing, and design of integrated circuits and other semiconductor devices, remains its sole operating segment. TSMC's major sales are denominated in U.S. dollars, and a significant portion of its capital expenditures and equity investments are in currencies other than the New Taiwan Dollar, primarily U.S. dollars, Japanese yen, and Euros. TSMC manages foreign currency risk through derivative contracts and non-derivative financial instruments. The company also manages interest rate risks related to its investment portfolio and outstanding debt, partially...Show More

Taiwan Semiconductor Manufacturing Company Ltd. (TSMC), the world's leading semiconductor foundry, reported a series of financial activities and strategic investments for the year ended December 31, 2023. The company's foundry segment, which engages in the manufacturing, sales, packaging, testing, and design of integrated circuits and other semiconductor devices, remains its sole operating segment. TSMC's major sales are denominated in U.S. dollars, and a significant portion of its capital expenditures and equity investments are in currencies other than the New Taiwan Dollar, primarily U.S. dollars, Japanese yen, and Euros. TSMC manages foreign currency risk through derivative contracts and non-derivative financial instruments. The company also manages interest rate risks related to its investment portfolio and outstanding debt, partially through interest rate derivatives. TSMC's capital management aims to maintain liquidity and support a solid investment grade credit rating, with current credit ratings of AA- from Standard & Poor’s and Aa3 from Moody’s. TSMC has entered into long-term purchase agreements for materials, supplies, waste disposal, and energy with multiple suppliers. Additionally, TSMC has made significant investments in subsidiaries and associates, including TSMC Arizona and Japan Advanced Semiconductor Manufacturing, Inc. (JASM), and has provided financing and endorsements/guarantees to its subsidiaries. The company's major shareholders include ADR-Taiwan Semiconductor Manufacturing Company Ltd. with a 20.50% ownership and the National Development Fund, Executive Yuan, with a 6.38% stake.