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Stakeholder Identification, Communication and Performance Summary

3.1 Stakeholder Identification and CommunicationTSMC stakeholders include stockholders and investors, employees, suppliers, customers, government, the community, and non-profit organizations. TSMC units most closely related to corporate social responsibility issues are Investor Relations (IR), Public Relations (PR), Human Resources (HR), Risk Management & Corporate ESH (RMESH), and the independent TSMC Education & Culture Foundation (ECF). IR and PR are responsible for economic issues, HR and the ECF are responsible for social issues including employees and social welfare, and RMESH is responsible for environmental, safety and health issues. These departments confirm the direction of CSR with other departments in the company and communicate the company’s achievements to the public.

The above units follow our CEO’s ten principles of CSR, identify stakeholders and integrate stakeholders’ concerns into routine tasks and annual plans in every year, and maintain flexibility to incorporate ad-hoc issues into annual plans. These units also seek support from additional departments as necessary. We continue to promote and improve projects related to stakeholder concerns.

TSMC believes that the company is responsible to its stakeholders and needs to communicate with them through various measures and channels to understand their needs and expectations from TSMC, and also takes these needs and expectations into account for corporate social responsibility policy and projects. TSMC and its stakeholder communication measures and channels are described in the following table; more detailed information can be found in related chapters of this report.

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Stakeholder Stockholders & Investors Customers Employees Suppliers Community Government Non-profit Organizations

Communication Measures and Channels

1. General stockholders(1) Annual Shareholder

Meeting in 2nd quarter(2) Quarterly Institutional

Investors’ Conference(3) Annual Financial

Report(4) Shareholders can

communicate with TSMC via telephone and email.

2. Institutional Investors(1) Quarterly Institutional

Investors’ Conference and global teleconference.

(2) Conferences held by domestic and overseas investment institutions

(3) Ad-hoc meetings with institutional investors.

(4) Investor forums held by brokerage houses

1. Customer audits2. Customer meetings3. Annual TSMC Technology

Symposiums4. Customer satisfaction

survey5. Cooperation with

customers’ industrial environment and social responsibility surveys and implementing improvements.

1. Announcements2. Human resource

representatives3. Regular meetings, such as

quarterly communication meeting/safety committee meeting/training courses

4. Ad-hoc communication meetings

5. Employee suggestion channels, such as immediate response system/HR employee suggestion box/wellness center/wellness website

6. HR service line7. Company publications and

e-platform8. Survey forms, such as

class satisfaction/meal satisfaction/activity satisfaction/Company Business Philosophy surveys

1. TSMC Annual Supply Chain Management Forum

2. Online supplier information platform

3. Regular meetings4. Supplier surveys, audit and

assistance5. Supplier ESH Forum

1. TSMC Education & Culture Foundation

2. Corporate Social Responsibility Report

3. Corporate website4. Public welfare

organizations5. Disaster relief activities

1. Official documents2. Communication meetings

or public hearings on regulations

3. Company financial report4. Providing official replies

or reports in response to requests from government authorities

5. Communication with government authorities through industry organizations including the Science Park Union, Taiwan Semiconductor Industry Association, World Semiconductor Council, and Chinese National Federation of Industries

1. TSMC Education & Culture Foundation

2. Volunteer activities

Topics of Concern Economic● Corporate governance● Social welfare activities● Proprietary information protection● Financial information● Stock price● Operational performance● Investment plans● Organizational and management changes● Employee salary and stockholder profit sharing● Tax payments● Legal compliance● Product R&D

Social● Employee-employer relationship● Employee loyalty● Occupational safety & health● Health promotion● Salary and welfare● Employee development● Recruitment● Response to organizational changes● Work flow & rules● Management leadership● Employee communication● Individual career development● Customer partnership● Workplace accidents● Disaster prevention and backup systems● Community welfare engagement and feedback● Employment opportunities

Environmental● Greenhouse gas reduction● Water resource management● Product hazardous substance management● Environmental labeling● Product carbon footprint● Product water footprint● Pollution control● Energy/resource consumption● Waste management● Ecological preservation● Environmental cost● Indirect environmental impact

TSMC’s stakeholders communication measures and channels and their concerns.

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TSMC compiles stakeholders’ concerns through these channels and measures. Related units then prioritize concerns according to their impact on company and importance to stakeholders, and the prioritized topics will be treated as annual plans or goals. Stakeholders’ concerns are evaluated for their materiality and are divided into significant, medium and general topics. In this report, we have primarily disclosed information regarding significant and medium topics, and have selected certain general topics for disclosure and excluded others.

TSMC Identification Procedure for Stakeholders’ Concerns

Compile stakeholders’ concerns through various channels and measures

Related units prioritize the concerns according to their frequency and severity

List priorities

Transfer to annual plans or goals

Low Medium HighCompany Impact Level

Stakeholder Materiality Analysis

● Product Package

● Eco Preservation

● Bio-diversity

● Hazardous Waste Export

Significant topics Medium topics

Stak

ehol

der C

once

rn L

evel

Low

Hig

hM

ediu

m

● Indirect Energy

● ESH Management

● Employee-employer ralationship

● Pollution Prevention

● Green Product

● PIP

● Legal Compliance

● Climate Change

● Customer Partnership

● Individual Development

● Work Flow

● Organization Change

● Water Discharge Impact

● Supply Chain Management

● Raw Material

● Energy/Resource

● Social Welfare

● Product Transportation

● Recycled Materials

● Environmental Cost