TSMC · FY2026 Q1 · 6-K
Taiwan Semiconductor Manufacturing Company Limited
EX-99.1
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a2026q1consolidatedreport-.htm
EX-99.1
2026 Q1Consolidated Report- Document Template(ENG) - PRD (For SEC)
English Translation of Financial Statements Originally Issued in Chinese
Taiwan Semiconductor Manufacturing
Company Limited and Subsidiaries
Consolidated Financial Statements for the
Three Months Ended March 31, 2026 and 2025 and
Independent Auditors’ Review Report
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勤業眾信
勤業眾信聯合會計師事務所
110421 台北市信義區松仁路100號20樓
Deloitte & Touche
20F, Taipei Nan Shan Plaza
No. 100, Songren Rd.,
Xinyi Dist., Taipei 110421, Taiwan
Tel :+886 (2) 2725-9988
Fax:+886 (2) 4051-6888
www.deloitte.com.tw
INDEPENDENT AUDITORS’ REVIEW REPORT
The Board of Directors and Shareholders
Taiwan Semiconductor Manufacturing Company Limited
Introduction
We have reviewed the accompanying consolidated balance sheets of Taiwan Semiconductor
Manufacturing Company Limited and its subsidiaries (collectively, the “Company”) as of March 31,
2026 and 2025, the related consolidated statements of comprehensive income, changes in equity and
cash flows for the three months then ended, and the related notes to the consolidated financial
statements, including material accounting policy information (collectively referred to as the
“consolidated financial statements”). Management is responsible for the preparation and fair
presentation of the consolidated financial statements in accordance with the Regulations Governing
the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34
“Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory
Commission of the Republic of China. Our responsibility is to express a conclusion on the
consolidated financial statements based on our reviews.
Scope of Review
We conducted our reviews in accordance with the Standards on Review Engagements of the Republic
of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of
the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit and consequently does not enable us
to obtain assurance that we would become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that caused us to believe that the
accompanying consolidated financial statements do not present fairly, in all material respects, the
consolidated financial position of the Company as of March 31, 2026 and 2025, its consolidated
financial performance and its consolidated cash flows for the three months ended March 31, 2026 and
2025 in accordance with the Regulations Governing the Preparation of Financial Reports by
Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed
and issued into effect by the Financial Supervisory Commission of the Republic of China.
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The engagement partners on the reviews resulting in this independent auditors’ review report are Shih
Tsung Wu and Yen Chun Chen.
Deloitte & Touche
Taipei, Taiwan
Republic of China
May 12, 2026
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated
financial position, financial performance and cash flows in accordance with accounting principles
and practices generally accepted in the Republic of China and not those of any other jurisdictions.
The standards, procedures and practices to review such consolidated financial statements are those
generally applied in the Republic of China.
For the convenience of readers, the independent auditors’ review report and the accompanying
consolidated financial statements have been translated into English from the original Chinese version
prepared and used in the Republic of China. If there is any conflict between the English version and
the original Chinese version or any difference in the interpretation of the two versions, the Chinese-
language independent auditors’ review report and consolidated financial statements shall prevail.
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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries |
CONSOLIDATED BALANCE SHEETS |
(In Thousands of New Taiwan Dollars) |
March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||
Amount | % | Amount | % | Amount | % | ||||||
ASSETS | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents (Note 6) | $3,035,637,228 | 35 | $2,767,856,402 | 35 | $2,394,804,250 | 34 | |||||
Financial assets at fair value through profit or loss (Note 7) | 5,408 | - | 100,200 | - | 54,369 | - | |||||
Financial assets at fair value through other comprehensive income (Note 8) | 194,897,632 | 2 | 175,692,690 | 2 | 189,928,311 | 3 | |||||
Financial assets at amortized cost (Note 9) | 153,049,764 | 2 | 124,945,519 | 2 | 118,298,376 | 2 | |||||
Hedging financial assets (Note 10) | 11,578 | - | - | - | - | - | |||||
Notes and accounts receivable, net (Note 11) | 357,742,772 | 4 | 279,051,553 | 3 | 241,682,270 | 3 | |||||
Receivables from related parties (Note 31) | 5,262,358 | - | 2,739,500 | - | 2,267,052 | - | |||||
Other receivables from related parties (Note 31) | 1,684,818 | - | 268,115 | - | 252 | - | |||||
Inventories (Note 12) | 311,453,459 | 4 | 288,109,485 | 4 | 293,387,615 | 4 | |||||
Other financial assets (Notes 28, 29 and 32) | 69,393,965 | 1 | 59,702,922 | 1 | 59,537,615 | 1 | |||||
Other current assets (Notes 28 and 29) | 136,373,194 | 1 | 118,664,431 | 1 | 45,703,772 | - | |||||
Total current assets | 4,265,512,176 | 49 | 3,817,130,817 | 48 | 3,345,663,882 | 47 | |||||
NONCURRENT ASSETS | |||||||||||
Financial assets at fair value through profit or loss (Note 7) | 15,582,292 | - | 15,032,128 | - | 15,485,300 | - | |||||
Financial assets at fair value through other comprehensive income (Note 8) | 9,704,803 | - | 8,797,170 | - | 8,337,662 | - | |||||
Financial assets at amortized cost (Note 9) | 103,514,079 | 1 | 110,507,804 | 1 | 98,203,676 | 1 | |||||
Investments accounted for using equity method (Note 13) | 37,765,362 | - | 38,033,271 | 1 | 38,766,658 | 1 | |||||
Property, plant and equipment (Notes 14 and 28) | 3,954,679,396 | 46 | 3,691,840,916 | 47 | 3,400,806,154 | 48 | |||||
Right-of-use assets (Note 15) | 45,965,593 | 1 | 43,918,910 | 1 | 41,303,416 | 1 | |||||
Intangible assets (Note 16) | 24,728,596 | - | 24,952,615 | - | 25,450,343 | - | |||||
Deferred income tax assets (Note 4) | 65,327,650 | 1 | 62,940,253 | 1 | 66,666,777 | 1 | |||||
Refundable deposits | 4,356,387 | - | 4,242,553 | - | 5,583,601 | - | |||||
Other noncurrent assets (Notes 28 and 29) | 133,813,351 | 2 | 115,627,441 | 1 | 87,019,951 | 1 | |||||
Total noncurrent assets | 4,395,437,509 | 51 | 4,115,893,061 | 52 | 3,787,623,538 | 53 | |||||
TOTAL | $8,660,949,685 | 100 | $7,933,023,878 | 100 | $7,133,287,420 | 100 | |||||
LIABILITIES AND EQUITY | |||||||||||
CURRENT LIABILITIES | |||||||||||
Financial liabilities at fair value through profit or loss (Note 7) | $3,076,876 | - | $3,083,883 | - | $2,069,289 | - | |||||
Hedging financial liabilities (Note 10) | - | - | 817 | - | 3,462 | - | |||||
Accounts payable | 98,055,133 | 1 | 82,551,595 | 1 | 75,637,284 | 1 | |||||
Payables to related parties (Note 31) | 1,800,925 | - | 1,778,730 | - | 1,216,344 | - | |||||
Salary and bonus payable | 61,526,478 | 1 | 63,872,882 | 1 | 40,951,448 | - | |||||
Accrued profit sharing bonus to employees and compensation to directors (Note 27) | 137,670,588 | 1 | 103,355,278 | 1 | 92,607,250 | 1 | |||||
Payables to contractors and equipment suppliers | 243,926,716 | 3 | 177,730,306 | 2 | 199,087,045 | 3 | |||||
Cash dividends payable (Note 19) | 311,190,294 | 4 | 285,258,060 | 4 | 233,394,600 | 3 | |||||
Income tax payable (Note 4) | 318,839,088 | 4 | 202,337,872 | 2 | 217,332,999 | 3 | |||||
Long-term liabilities - current portion (Notes 17, 18 and 29) | 156,241,738 | 2 | 136,925,710 | 2 | 61,771,648 | 1 | |||||
Accrued expenses and other current liabilities (Notes 15, 20 and 29) | 381,925,612 | 4 | 401,124,156 | 5 | 475,731,629 | 7 | |||||
Total current liabilities | 1,714,253,448 | 20 | 1,458,019,289 | 18 | 1,399,802,998 | 19 | |||||
NONCURRENT LIABILITIES | |||||||||||
Bonds payable (Notes 17 and 29) | 860,026,070 | 10 | 856,227,503 | 11 | 948,256,974 | 13 | |||||
Long-term bank loans (Note 18) | 40,991,672 | 1 | 39,834,496 | 1 | 38,726,925 | 1 | |||||
Deferred income tax liabilities (Note 4) | 3,881,756 | - | 3,888,795 | - | 3,968,524 | - | |||||
Lease liabilities (Note 15) | 33,509,235 | - | 31,594,992 | - | 29,121,821 | - | |||||
Net defined benefit liability (Note 4) | 5,940,382 | - | 6,012,286 | - | 5,378,586 | - | |||||
Guarantee deposits | 777,505 | - | 764,178 | - | 854,533 | - | |||||
Others (Note 20) | 69,180,696 | 1 | 75,887,056 | 1 | 105,552,602 | 2 | |||||
Total noncurrent liabilities | 1,014,307,316 | 12 | 1,014,209,306 | 13 | 1,131,859,965 | 16 | |||||
Total liabilities | 2,728,560,764 | 32 | 2,472,228,595 | 31 | 2,531,662,963 | 35 | |||||
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT | |||||||||||
Capital stock (Note 19) | 259,323,701 | 3 | 259,325,245 | 3 | 259,326,155 | 4 | |||||
Capital surplus (Notes 19 and 26) | 73,665,831 | 1 | 73,445,601 | 1 | 73,307,187 | 1 | |||||
Retained earnings (Note 19) | |||||||||||
Appropriated as legal capital reserve | 311,146,899 | 4 | 311,146,899 | 4 | 311,146,899 | 4 | |||||
Appropriated as special capital reserve | 16,199,411 | - | 87,284,496 | 1 | - | - | |||||
Unappropriated earnings | 5,193,142,174 | 60 | 4,705,070,165 | 59 | 3,851,130,370 | 54 | |||||
5,520,488,484 | 64 | 5,103,501,560 | 64 | 4,162,277,269 | 58 | ||||||
Others (Notes 19 and 26) | 37,482,236 | - | (16,676,412) | - | 69,251,969 | 1 | |||||
Equity attributable to shareholders of the parent | 5,890,960,252 | 68 | 5,419,595,994 | 68 | 4,564,162,580 | 64 | |||||
NON - CONTROLLING INTERESTS | 41,428,669 | - | 41,199,289 | 1 | 37,461,877 | 1 | |||||
Total equity | 5,932,388,921 | 68 | 5,460,795,283 | 69 | 4,601,624,457 | 65 | |||||
TOTAL | $8,660,949,685 | 100 | $7,933,023,878 | 100 | $7,133,287,420 | 100 | |||||
The accompanying notes are an integral part of the consolidated financial statements.
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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
(In Thousands of New Taiwan Dollars, Except Earnings Per Share) |
Three Months Ended March 31 | ||||||||
2026 | 2025 | |||||||
Amount | % | Amount | % | |||||
NET REVENUE (Notes 20, 31 and 37) | $1,134,103,440 | 100 | $839,253,664 | 100 | ||||
COST OF REVENUE (Notes 12, 27, 31 and 34) | 382,808,019 | 34 | 345,858,588 | 41 | ||||
GROSS PROFIT | 751,295,421 | 66 | 493,395,076 | 59 | ||||
OPERATING EXPENSES (Notes 27 and 31) | ||||||||
Research and development | 67,756,685 | 6 | 56,547,493 | 7 | ||||
General and administrative | 21,833,650 | 2 | 24,883,748 | 3 | ||||
Marketing | 4,415,322 | - | 3,754,815 | - | ||||
Total operating expenses | 94,005,657 | 8 | 85,186,056 | 10 | ||||
OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14, 27 and 34) | 1,676,378 | - | (1,128,212) | - | ||||
INCOME FROM OPERATIONS (Note 37) | 658,966,142 | 58 | 407,080,808 | 49 | ||||
NON-OPERATING INCOME AND EXPENSES | ||||||||
Share of profits of associates | 1,684,904 | - | 1,368,307 | - | ||||
Interest income (Note 21) | 28,862,263 | 3 | 24,859,312 | 3 | ||||
Other income | 124,339 | - | 51,509 | - | ||||
Foreign exchange gain, net (Note 35) | 6,178,922 | 1 | 3,538,319 | - | ||||
Finance costs (Note 22) | (2,716,862) | - | (2,677,274) | - | ||||
Other gains and losses, net (Note 23) | (5,300,021) | (1) | (3,325,569) | (1) | ||||
Total non-operating income and expenses | 28,833,545 | 3 | 23,814,604 | 2 | ||||
INCOME BEFORE INCOME TAX | 687,799,687 | 61 | 430,895,412 | 51 | ||||
INCOME TAX EXPENSE (Notes 4 and 24) | 114,998,383 | 10 | 70,162,751 | 8 | ||||
NET INCOME | 572,801,304 | 51 | 360,732,661 | 43 | ||||
OTHER COMPREHENSIVE INCOME (LOSS) (Note 19) | ||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||
Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income | 2,551,451 | - | (373,521) | - | ||||
Share of other comprehensive income (loss) of associates | 88,414 | - | (68,654) | - | ||||
2,639,865 | - | (442,175) | - | |||||
(Continued) | ||||||||
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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
(In Thousands of New Taiwan Dollars, Except Earnings Per Share) |
Three Months Ended March 31 | ||||||||
2026 | 2025 | |||||||
Amount | % | Amount | % | |||||
Items that may be reclassified subsequently to profit or loss: | ||||||||
Exchange differences arising on translation of foreign operations | $52,958,177 | 4 | $30,220,692 | 4 | ||||
Unrealized gain (loss) on investments in debt instruments at fair value through other comprehensive income | (1,854,480) | - | 2,053,235 | - | ||||
Loss on hedging instruments | (21,091) | - | (21,068) | - | ||||
Share of other comprehensive income of associates | 273,180 | - | 86,244 | - | ||||
51,355,786 | 4 | 32,339,103 | 4 | |||||
Other comprehensive income, net of income tax | 53,995,651 | 4 | 31,896,928 | 4 | ||||
TOTAL COMPREHENSIVE INCOME | $626,796,955 | 55 | $392,629,589 | 47 | ||||
NET INCOME ATTRIBUTABLE TO: | ||||||||
Shareholders of the parent | $572,479,752 | 50 | $361,564,128 | 43 | ||||
Non-controlling interests | 321,552 | 1 | (831,467) | - | ||||
$572,801,304 | 51 | $360,732,661 | 43 | |||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: | ||||||||
Shareholders of the parent | $626,591,326 | 55 | $391,813,092 | 47 | ||||
Non-controlling interests | 205,629 | - | 816,497 | - | ||||
$626,796,955 | 55 | $392,629,589 | 47 | |||||
EARNINGS PER SHARE (NT$, Note 25) | ||||||||
Basic earnings per share | $22.08 | $13.95 | ||||||
Diluted earnings per share | $22.08 | $13.94 | ||||||
The accompanying notes are an integral part of the consolidated financial statements. | (Concluded) | |||||||
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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
(In Thousands of New Taiwan Dollars) |