Financial Review and Compliance - The consolidated financial statements for the three months ended March 31, 2024, and 2023 were reviewed, showing no significant discrepancies in financial presentation [6]. - The company reported a consolidated financial performance in accordance with International Accounting Standard 34, ensuring compliance with local regulations [6]. - The review was conducted under the Standards on Review Engagements of the Republic of China, focusing on financial and accounting inquiries [5]. - The engagement partners for the review were Shih Tsung Wu and Shang Chih Lin from Deloitte & Touche [7]. - The financial statements are presented in thousands of New Taiwan Dollars, adhering to local accounting principles [10]. - The review confirmed that the financial statements fairly represent the company's consolidated financial position as of March 31, 2024, and 2023 [6]. - The company’s cash flows for the three months ended March 31, 2024, were also reviewed and found to be in compliance with applicable standards [6]. - The independent auditors' review report was translated into English for reader convenience, maintaining the integrity of the original Chinese version [8]. - The financial statements are intended to reflect the company's financial performance and position in the Republic of China context [8]. - The review process is less comprehensive than an audit, which limits the assurance level regarding the identification of significant matters [5]. Financial Position and Performance - Total assets increased to 5,787,891,082,up4.65,532,371,215 as of December 31, 2023 [11]. - Current assets rose to 2,452,767,394,representing421,698,195,704 from 1,465,427,753[11].−Totalliabilitiesamountedto2,122,174,828, remaining stable at 37% of total assets [11]. - Equity attributable to shareholders of the parent reached 3,635,731,930,accountingfor632,955,395,983, maintaining a 51% share of total equity [11]. - Noncurrent liabilities decreased slightly to 1,095,994,749,representing19267,123,339, reflecting a 6.4% rise from 250,997,088[11].−Accountspayableroseto56,424,812, a 1.3% increase from 55,726,757[11].−Totalcurrentliabilitiesincreasedto1,026,180,079, up 12.3% from 913,583,316[11].RevenueandIncome−NetrevenueforthethreemonthsendedMarch31,2024,was592.64 million, a 16.5% increase from 508.63millioninthesameperiodof2023[14].−Grossprofitforthesameperiodwas314.51 million, representing a gross margin of 53%, compared to 56% in the previous year [14]. - Operating expenses totaled 65.36million,maintaining11249.02 million, accounting for 42% of net revenue, down from 45% in the prior year [14]. - Net income for the three months was 225.22million,an8.8206.95 million in the same period last year [14]. - Total comprehensive income for the period was 266.50million,reflectinga30.8203.65 million in the previous year [16]. - Basic and diluted earnings per share were both NT8.70,upfromNT7.98 in the same period of 2023 [16]. - The company reported a foreign exchange gain of 3.20million,comparedtoalossof44,363 in the previous year [14]. - Research and development expenses were 46.11million,representing8437,362,333, up from NT385,931,234inQ12023,reflectingagrowthof13.4436,311,108, compared to NT385,244,745inQ12023,indicatinganincreaseof13.3159,806,991, a decrease from NT272,231,795inQ12023,showingareductionof41.271,685,617, compared to NT64,487,030inQ12023,representinganincreaseof11.01,698,195,704, up from NT1,385,232,810attheendofQ12023,markinganincreaseof22.690,762,248, reflecting a commitment to return value to shareholders despite fluctuations in net income [18]. - TSMC's cash dividends per share for Q1 2024 are set at NT4.00,anincreasefromNT3.00 in Q1 2023 [87]. - The total cash dividends to shareholders for Q1 2024 amount to 103,734,517,comparedto77,796,213 in Q1 2023 [87]. Debt and Liabilities - Total liabilities as of March 31, 2024, were 1,009,462,421,upfrom895,457,426 as of March 31, 2023, representing an increase of approximately 12.7% [128]. - The company's total financial liabilities as of March 31, 2024, were 1,774,692,676,slightlyupfrom1,768,812,131 as of December 31, 2023, indicating a marginal increase of about 0.3% [129]. - Bonds payable amounted to 1,186,624,225asofMarch31,2024,with28,846,265 due in less than 1 year [144]. - Long-term bank loans and lease liabilities combined total 12,830,932and34,483,988 respectively as of March 31, 2024 [144]. Investments and Marketable Securities - TSMC holds marketable securities valued at approximately NT6,951,320,000incommercialpaperfromCathayFinancialHoldingCo.,Ltd.[193].−ThefairvalueofTSMC′sinvestmentinARMHoldingsplcisapproximatelyUS138,837,000 [193]. - TSMC's investment in commercial paper from various companies includes significant holdings in Bank of America Corporation and Morgan Stanley, with fair values of US88,527,000andUS82,268,000 respectively [193]. - The total carrying value of TSMC's marketable securities reflects a diverse investment strategy across multiple sectors [197]. Risk Management and Financial Instruments - The company manages liquidity risk by maintaining adequate cash and cash equivalents, ensuring sufficient funding to support operations over the next 12 months [143]. - Interest rate futures contracts with a contract amount of US62,700thousandwereenteredintotohedgeagainstinterestratefluctuations,maturinginJune2024[48].−TheeffectofhedginginstrumentsforthethreemonthsendedMarch31,2024resultedinachangeof793,830 for net investments in foreign operations [55]. Employee Compensation and Benefits - The company recognized share-based payment expenses of 161.85millionduringtheperiod[90].−TSMC′stotalliabilitiesundercash−settledshare−basedpaymentarrangementsasofMarch31,2024,amountedtoNT82,942 thousand, compared to NT23,379thousandasofMarch31,2023[119].−Theprofit−sharingbonustoemployeesforthethreemonthsendedMarch31,2024,was13,472,869, up from $12,363,840 in the same period of 2023, indicating an increase of approximately 9% [121].
TSMC(TSM)2024-05-15 10:09