Letter from the ESG Committee Chairperson

Letter from the ESG Committee Chairperson

With each and every TSMC employee steadfast at their roles, we believe that beautiful changes can continue to happen.

In 2020, the world was ravaged by the COVID -19 pandemic. TSMC took comprehensive disease prevention measures to ensure that operations could continue at wafer fabs around the world and went on to realize 11,617 product innovations for our customers. With innovative technologies, people are able to work and learn remotely. To reduce contact and gatherings, people can use AR/MR technologies to replace business trips, and smart robots to replace manual labor for delivering resources. TSMC stands in solidarity with everyone enduring this challenging time, and we strive to contribute to the health and welfare of the world.

During this time, we also worked with stakeholders to continue realizing our Five Major ESG directions as we resolutely progressed towards the UN's Sustainable Development Goals. In terms of Green Manufacturing, TSMC is actively using renewable energies, implementing 460 energy-saving measures, and introducing new generations of energy-efficient equipment. External research results have shown that we save 4GWh of energy for every 1 GWh of energy used by TSMC for the production of end products for customers. By increasing our energy efficiency, we are able to mitigate the impact of climate change.

In regards to Building a Responsible Supply Chain, TSMC was able to drive NT$1.7 trillion in output value among related industries in 2020. Each TSMC employee creates, on average, 6.4 job opportunities in Taiwan. We shoulder the responsibility that comes with being an industry leader and have established Supply Online 360, a management platform for a sustainable supply chain, as well as the TSMC Supplier Sustainability Academy. To extend the high standards applied to TSMC Operations and Green Manufacturing, we have also asked suppliers to conduct EP&L assessment and carbon footprint verification, as well as set and strive for energy and water conservation goals.

In order to Create a Diverse & Inclusive Workplace, TSMC expanded our Human Rights Policy's scope of management to support employee and company growth on the basis of a healthy work-life balance. Investments into Talent Development include the expanded Semiconductor Program and IC Design Program. We are also providing resources through university research centers and industry-academia programs to foster generations of semiconductor professionals. Lastly, when it comes to Caring for the Disadvantaged, TSMC continues to support global prevention and treatment efforts against COVID -19 through the TSMC Education and Culture Foundation and the TSMC Charity Foundation; we have also galvanized efforts from subsidiaries around the world to contribute to the common good.

TSMC has taken tangible action to support the global sustainability movement, and we are the only semiconductor company in the world to be selected into the Dow Jones Sustainability Index (DJSI) for 20 consecutive years. As we look to our future, we will stay true to our unwavering commitment to responsible operations. We hope that every TSMC colleague stands firm at their post and continues to bring positive changes to our world.

Lora Ho Senior Vice President and ESG Committee Chairperson