Letter from the ESG Steering Committee Chairperson

Corporate Social Responsibility Policy

For TSMC, the first step in ESG is to carry out our core values and drive positive changes in society and the environment through our industry leadership.

2020 was an extremely challenging year as the world experienced social and economic upheaval brought by the COVID-19 pandemic, and natural disasters occurring under extreme climate conditions left us with a deep impression of the threat and impact of climate change on humanity. The importance of ESG (Environmental, Social, and Governance) is gradually becoming a global consensus. As a responsible corporate citizen, TSMC endeavors to respond to climate change and mitigate climate impact to protect our shared global environment. In addition to signing the world's largest renewable energy purchase agreement in 2020, we further committed to using 100% renewable energy for global operations before 2050, becoming the world's first semiconductor company to join the RE100 initiative.

Over the years, TSMC has held its vision of uplifting society. We not only focus on our core business to unleash innovation with groundbreaking thinkers around the world, but also have systematically charted a long-term strategic direction for our ESG. The ESG Steering Committee serves as the center for the highest level of ESG decision-making. With myself serving as Chairperson, the ESG Steering Committee works with senior TSMC executives in a variety of fields to link the United Nations' Sustainable Development Goals (SDGs) with the Company's core competitive advantages. Our five focal points are Green Manufacturing, Responsible Supply Chain, Diverse & Inclusive Workplace, Talent Development, and Caring for the Disadvantaged. In 2020, the ESG Steering Committee pursued its goal of sustainable development and explored international ESG trends, evaluation standards, and corporate best practices. At the same time, it set TSMC's long-term ESG goals, strategies, and public declarations and took a fresh look at how we execute them. We also launched TSMC's first internal CSR Award to encourage our colleagues to think creatively and participate actively to bring many innovative projects to life.

In addition, under the approval and supervision of the ESG Steering Committee, in 2020 TSMC brought its unique set of professional know-how and resources to support the global fight against the COVID-19 pandemic. In addition to keeping our colleagues healthy and safe and maintaining normal operations, we also provided needed support to society. We budgeted US$20 million to provide for the communities where we operate, including Taiwan, China, Japan, Europe, the United States, and other areas in urgent need of resources, playing our role as a corporate citizen through tangible action.

Based on a foundation of healthy corporate governance, TSMC actively carries out its three missions of Acting with Integrity, Strengthening Environmental Protection, and Caring for the Disadvantaged. Starting from our core business, we set goals for execution, evaluate action plans, and maintain positive interactions with our stakeholders to continue creating value. In addition, I would like to extend my thanks to everyone in the Company. It is only because of everyone's enthusiastic cooperation and persistence that we can continue to improve, grow stronger, and further meet our commitments to society and the environment to drive beautiful changes in society.

Mark Liu Chairman and ESG Steering Committee Chairperson