GRI Standards Comparison Table

Letter from the CSR Committee Chairperson

Disclosure Number

Disclosure Title

Report Contents or Explanation

Page

102-1

Name of the organization

Our Business: About TSMC

10

102-2

Activities, brands, products, and services

Our Business: About TSMC

10

102-3

Location of headquarters

Our Business: About TSMC

10

102-4

Location of operations

Our Business: About TSMC

10

102-5

Ownership and legal form

Our Business: About TSMC; TSMC; Please refer to 2019 TSMC Annual Report (II) Financial Statements

10

102-6

Markets served

Our Business: About TSMC

10

102-7

Scale of the organization

Our Business: About TSMC; TSMC; Please refer to 2019 TSMC Annual Report (II) Financial Statements

10

102-8

Information on employees and other workers

Please refer to Inclusive Workplace: Talent Attraction and Retention - Right People with Shared Vision and Values - Workforce Structure
All employee number has been disclosed in "Workforce Structure", the number of contractors has also disclosed in the note.
In 2019, there were 2,415 non-employee workers conducted preventive maintenance tasks for facility systems.

137

102-9

Supply chain

Responsible Supply Chain: Sustainability Risk Control and Local Supply Chain Optimization

81

102-10

Significant changes to the organization and its supply chain

Our Business: About TSMC; TSMC; Please refer to 2019 TSMC Annual Report (II) Financial Statements

Responsible Supply Chain: Strategy and Long Term Goals

10
81

102-11

Precautionary Principle or approach

The risk management organization periodically briefs the audit committee on the ever-changing risk environment facing TSMC, the focus of the Company's enterprise risk management, and risk assessment and mitigation efforts. The audit committee's chairperson also reports on the risk environment and risk mitigation actions to be taken. TSMC and its subsidiaries are committed to proactively and cost effectively integrating and managing strategic, operational, financial and hazardous risks together with potential consequences to operations and financial results. TSMC operates an enterprise risk management (ERM) program and apply a risk map considering likelihood and impact severity to identify and prioritize corporate risks. Various risk treatment strategies are also adopted in response corporate risks as they are identified.

Refer section 6.3 Risk Management of TSMC Annual Report for details of implementation of ERM (Eneterprise Risk Management)

-

102-12

External initiatives

Responsible Business Alliance (RBA, the previous EICC) and Responsible Minerals Assurance Process (RMAP, the previous Conflict-free Smelter Program)

-

102-13

Membership of associations

Appendix: Participation in Industry Associations and Non-Profit Organizations

204

102-14

Statement from senior decision-maker

Letter from the CSR Executive Committee Chairperson; Letter from the CSR Committee Chairperson

4, 5

102-15

Key impacts, risks, and opportunities

Sustainable Governance: Materiality Analysis and Stakeholder Communication

20

102-16

Values, principles, standards, and norms of behavior

Ethical Management: Ethic and Regulatory Compliance

Please refer to 2019 TSMC Annual Report:
3.5 Code of Ethics and Business Conduct
3.6 Regulatory Compliance

38

102-17

Mechanisms for advice and concerns about ethics

Ethical Management: Ethic and Regulatory Compliance

Please refer to 2019 TSMC Annual Report:
3.5 Code of Ethics and Business Conduct
3.6 Regulatory Compliance
5.5.6 Employee Engagement - Employee Communication

38

102-18

Governance structure

Sustainable Governance: Corporate Governance, CSR Management

Please refer to 2019 TSMC Annual Report:
2.3.1 Organization Chart
3 Sustainable Governance: Corporate Governance

16, 17

102-19

Delegating authority

Sustainability Governance

14

102-20

Executive-level responsibility for economic, environmental, and social topics

Letter from the CSR Executive Committee Chairperson; Letter from the CSR Committee Chairperson
Sustainable Governance: CSR Management

4, 5
17

102-21

Consulting stakeholders on economic, environmental, and social topics

Sustainable Governance: Materiality Analysis and Stakeholder Communication
Sustainable Governance: Corporate Governance

Please refer to 2019 TSMC Annual Report:
3.4 Taiwan Sustainable Governance: Corporate Governance Implementation as Required by Taiwan Financial Supervisory Commission/Assessment Item 5

20
16

102-22

Composition of the highest governance body and its committees

Sustainable Governance: Corporate Governance
TSMC's Board of Directors consists of distinguished members with a great breadth of experience as world-class business leaders or professionals. All of them have management experience and competency in economic, environmental and social topics

Please refer to 2019 TSMC Annual Report:
2.4.1 Information Regarding Board Members
3 Sustainable Governance: Corporate Governance

16

102-23

Chair of the highest governance body

The Chair of the highest governance body is not an executive officer

-

102-24

Nominating and selecting the highest governance body

In 2019, TSMC established "Guidelines for Nomination of Directors", which describes the procedures and criteria for the nomination, qualification and evaluation of candidates for Directors. Please refer to our website.

We envision the membership of its esteemed Board of Directors to be composed of highly ethical professionals with the necessary knowledge, experience and understanding from diverse backgrounds. TSMC envisions its Board to be composed of as many independent directors as possible, and the independence of each independent director candidate is also considered and assessed under relevant laws. Therefore, TSMC composes its Board with world-class candidates who are/were international or local business leaders in the high-tech industry, prestigious academics or other professionals excelling in their chosen field of expertise, all of them have management experience and competency in economic, environmental and social topics.

Directors shall be elected pursuant to the candidate nomination system specified in Article 192-1 of the R.O.C. Company Law. The tenure of office for Directors shall be three years. The independence of each independent director candidate is also considered and assessed under relevant law such as the Taiwan "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies". Under R.O.C. law, in which TSMC was incorporated, any shareholders holding one percent or more of our total outstanding common shares may nominate their own candidate to stand for election as a Board member. This democratic mechanism allows our shareholders to become involved in the selection and nomination process of Board candidates. The final slate of candidates are put to the shareholders for voting at the relevant annual shareholders' meeting.

There are no limits on the number of terms that a director may serve. We believe the Company benefits from the contributions of directors who have over their years of dedicated service acquired unique insights into the operations and financial developments of the Company. The Company reviews the appropriateness of each director's continued service to ensure there are new viewpoints available to the Board.

-

102-25

Conflicts of interest

The avoidance of conflicts of interests is governed by several corporate processes. First, any director or executive officer who, for him/herself or on behalf of another, wishes to engage in any business activity that overlaps with TSMC's business must obtain the prior approval of our shareholders' meeting or Board of Directors respectively in accordance with relevant laws. Second, each board member and executive officer must complete an annual declaration on related party transactions which is reviewed by our Audit Committee. Third, we are subject to strenuous reporting requirements on reporting any related party transactions under both R.O.C. and U.S. security rules.

Please refer to 2019 TSMC Annual Report:
2.4.1 Information Regarding Board Members
4.1.4 Major Shareholders
4.1.8 Related Party Relationship among Our 10 Largest Shareholders
5.3.4 Raw Materials and Supply Chain Management-Suppliers Accounted for at Least 10% of Annual Consolidated Net Procurement
5.4 Customer Trust-Customers that Accounted for at Least 10% of Annual Consolidated Net Revenue
8.1 Subsidiaries

Please refer to Consolidated Financial Statements for 2019:
Note 38: Additional Disclosures
Table 6 - Total Purchases from or Sales to Related Parties of at Least NT$100 Million or 20% of the Paid-in Capital

-

102-26

Role of highest governance body in setting purpose, values, and strategy

Sustainable Governance:
Corporate Social Responsibility Policy & Matrix
CSR Management

TSMC established the Corporate Social Responsibility Executive Committee in 2019. TSMC's Chairman chairs the CSR Executive Committee, and the Chairperson of the CSR Committee serves as Executive Secretary. The Chairperson of the CSR Committee reports annually to the Board of Directors on implementation results of the prior year and the work planned for the upcoming year (the report includes economic, environmental and social topics). In addition, the Board of Directors also review the annual plan and the donations of the "TSMC Education and Culture Foundation" and "TSMC Charity Foundation".

TSMC's Board of Directors consists of distinguished members with a great breadth of experience as world-class business leaders or professionals. All of them have management experience and competency in economic, environmental and social topics.

TSMC has set "Corporate Social Responsibility Policy" and "CSR Matrix", and the "CSR Matrix" clearly defines the scope of the TSMC's responsibilities.

15
17

102-27

Collective knowledge of highest governance body

Please refer to 2019 TSMC Annual Report:
3. Sustainable Governance: Corporate Governance "Continuing Education/Training of Directors" in 2019.

Through quarterly management report and annually CSR report to develop and enhance the Board of Directors' collective knowledge of economic, environmental and social topics.

-

102-28

Evaluating the highest governance body's performance

Please refer to 2019 TSMC Annual Report:

3.2 Board of Directors

  • 2019 Sustainable Governance: Corporate Governance Awards and Ratings
  • Directors' Compensation

3.2.2 Compensation Committee

  • Board of Directors Meeting Status

3.4 Taiwan Sustainable Governance: Corporate Governance Implementation as Required by Taiwan Financial Supervisory Commission/Assessment Item 5
7 2019 CSR Awards, Recognitions and Ratings

-

102-29

Identifying and managing economic, environmental, and social impacts

Please refer to 2019 TSMC Annual Report:
3.2 Board of Directors

  • The Board of Directors considers economic, environmental and social topics and their impact, risks and opportunities, and stakeholder opinions, when resolving important company matters, for example, when approving capital appropriations. The Board will also review the corporate strategies proposed by TSMC management, evaluate the prospects of these strategies, review their progress, and provide guidance to TSMC management when needed.
  • Audit Committee
  • Compensation Committee

3.4 Taiwan Sustainable Governance: Corporate Governance Implementation as Required by Taiwan Financial Supervisory Commission/Assessment Item 5

6.3 Risk Management

7 Corporate Social Responsibility

  • CSR Management
  • Stakeholder Engagement

-

102-30

Effectiveness of risk management processes

The risk management organization periodically briefs the audit committee on the ever-changing risk environment facing TSMC, the focus of the Company's enterprise risk management, and risk assessment and mitigation efforts. The audit committee's chairperson also reports on the risk environment and risk mitigation actions to be taken. TSMC's risk management organization is composed of RM Steering Committee, RM Executive Council , and RM Program. Refer section 6.3.1 Risk Management Organization of TSMC Annual Report for details.

-

102-31

Review of economic, environmental, and social topics

Please refer to 2019 TSMC Annual Report:
3. Sustainable Governance: Corporate Governance
6.3 Risk Management

-

102-32

Highest governance body's role in sustainability reporting

Sustainable Governance: Corporate Governance
This report is reviewed and approved by the Company's functional heads and Chairperson of the Corporate Social
Responsibility Committee (Chief Financial Officer)

-

102-33

Communicating critical concerns

In addition to holding regular meetings, TSMC management will regularly provide to the Board of Directors material company reports and information:

  • Accounting department: monthly financial information and quarterly financial statements;
  • Internal Audit department: the quarterly internal audit report; and
  • Public Relations department: press release
    In addition, the Board maintains a regular line of communication with TSMC management, which will remain open if an event of critical concerns occurs.

Please refer to 2019 TSMC Annual Report:
3.2 Board of Directors

  • Audit Committee Meeting Status

-

102-34

Nature and total number of critical concerns

Please refer to the material information the Company has disclosed on TWSE website, which indicates the total number and nature of critical concerns.

Please refer to 2019 TSMC Annual Report:
6.3 Enterprise Risk Management Framework:
TSMC and its subsidiaries adopt risk management strategies corresponding to risk level through implementing an enterprise risk management system that weighs strategic, operational, financial and hazardous risks that may disrupt the Company's operations or financial results. If any events of critical concerns occur, the Company can resolve the event by using existing risk management mechanisms.

-

102-35

Remuneration policies

Please refer to 2019 TSMC Annual Report :
2.4.2 Remuneration Paid to Directors
2.5.2 Compensation Paid to CEO and Vice Presidents
2.5.3 Employees' Profit Sharing Bonus Paid to Management Team

And also, 2019 CSR Report :
Inclusive Workplace: Talent Attraction and Retention - Competitive Compensation Program - Benefit program, Solid Pension System. Our compensation is above the industry peers, and our benefit program also exceed the statutory requirements.

-

102-36

Process for determining remuneration

Inclusive Workplace: Talent Attraction and Retention - Competitive Compensation Program

Please refer to 2019 TSMC Annual Report :
3.2.2 Compensation Committee
3.2.4 Director and Committees Members'Attendance/ Compensation Committee Meeting Status

137

102-37

Stakeholders' involvement in remuneration

TSMC devotes to strengthening Sustainable Governance: Corporate Governance, keep communication channels open to every stakeholder, and fully collected the suggestions and take them into operational considerations. We believe "Talent is the most important asset of the Company" and the concept of balancing employee's welfare and shareholder's right. Upon this, we provide competitive total compensation to attract and retain our talents. Over the years, the Company has performed well and not only the shareholders have earned a return on investment above the industry average, but also our employees' total compensation has been better than other industry peers and most of the local enterprises based in Taiwan.

-

102-38

Annual total compensation ratio

Inclusive Workplace: Talent Attraction and Retention - Competitive Compensation Program
Median of global employees annual total compensation
Annual total compensation ratio between CEO and median

137

102-39

Percentage increase in annual total compensation ratio

Inclusive Workplace: Talent Attraction and Retention - Competitive Compensation Program
Headcount, average annual compensation, and median annual compensation of non-corporate executive full-time employees, and year-over-year difference.

137

102-40

List of stakeholder groups

Sustainable Governance: Materiality Analysis and Stakeholder Communication

20

102-41

Collective bargaining agreements

Inclusive Workplace: Human Rights - Internal Communication Channels for Employees

TSMC strives to create harmonious employee relations, values two-way communication and fosters open communication channels for management levels, subordinates and peers. The Company provides a number of voice channels with handling the cases in a fast and confidential manner. Among them, people in charge are the highest executives of human resources organizations, demonstrating our emphasis on employee opinions. Effective communication between the Company and employees creates a high-involvement working environment. Employees are also highly engaged and willing to make commitments to TSMC. In addition, TSMC abides by regulations to hold Labor-Management Meeting periodically, summarizes and publishes business updates, labor conditions, and employee welfare activities for employees.

153

102-42

Identifying and selecting stakeholders

Sustainable Governance: Materiality Analysis and Stakeholder Communication

20

102-43

Approach to stakeholder engagement

Sustainable Governance: Materiality Analysis and Stakeholder Communication

20

102-44

Key topics and concerns raised

Sustainable Governance: Materiality Analysis and Stakeholder Communication

-

102-45

Entities included in the consolidated financial statements

Our Business: About TSMC; Please refer to 2019 TSMC Annual Report (II) Financial Statements

20

102-46

Defining report content and topic Boundaries

Sustainable Governance: Materiality Analysis and Stakeholder Communication
Appendix: About this Report

20
201

102-47

List of material topics

Sustainable Governance: Materiality Analysis and Stakeholder Communication

20

102-48

Restatements of information

No significant changes

-

102-49

Changes in reporting

Appendix: About this Report

201

102-50

Reporting period

Appendix: About this Report

201

102-51

Date of most recent report

June, 2019

-

102-52

Reporting cycle

Appendix: About this Report

201

102-53

Contact point for questions regarding the report

Appendix: About this Report

201

102-54

Claims of reporting in accordance with the GRI Standards

Appendix: About this Report

201

102-55

GRI content index

Appendix: GRI Standards Comparison Table

207

102-56

External assurance

Appendix: Independent Third Party Assurance Statement 203

221

103-1

Explanation of the material topic and its Boundary

Sustainable Governance: Materiality Analysis and Stakeholder Communication

20

103-2

The management approach and its components

Please refer to the contents of related topics

-

103-3

Evaluation of the management approach

Please refer to the contents of related topics

-

201-1

Direct economic value generated and distributed

Our Business: Financial Performance, Tax Policy
Sustainable Governance: Sustainable Value Creation
Appendix: CSR Performance Summary
Inclusive Workplace:Talent Attraction and Retention, Compensations and Benefits
Please refer to 2019 TSMC Annual Report (II) Financial Statements for detailed information.

11, 13
31
205
137

201-2

Financial implications and other risks and opportunities due to climate change

Green Manufacturing: Climate Change and Energy Management
TSMC TCFD framework
Climate Risks Matrix
Climate Financial Risk Analysis
Purchasing Green Power

95
98
99
100
103

201-3

Defined benefit plan obligations and other retirement plans

Inclusive Workplace: Talent Attraction and Retention - Pension Plan - Pension Plan and Pension Allocation in TSMC
TSMC defined contribution plan recognized expenses of NT$2,609,733 thousand for the years ended December 31, 2019. TSMC makes monthly contributions equal to 6% of each employee's monthly salary in Taiwan. TSMC's oversea subsidiaries also make monthly contributions at certain percentages of the basic salary of their employees in accordance with local practices.

137

201-4

Financial assistance received from government

Financial assistance received from the R.O.C. government: In 2019, TSMC enjoyed a tax benefit of NT$29.4 billion from five-year tax exemption for capital investments made in previous years, and tax credits of NT$5.9 billion for research and development expenditures. (Our wafer fabs in China received subsidies from the local government, but according to the agreement, TSMC can not disclose the content and amount.)

-

202-1

Ratios of standard entry level wage by gender compared to local minimum wage

Inclusive Workplace: Talent Attraction and Retention - Compensation Ratio between Male and Female - The ratio of annual total compensation between female and male employees in each region of TSMC

The total compensation of a newly-graduated engineer with a Master's degree in Taiwan in year 2019 would be equal to 31 months' salary, including 12 months' base salary, 2 months' year-end bonus and around 17 months' employees' cash bonus and profit sharing bonus; the total compensation of a direct employee would be equal to 26 months' salary and the monthly wage is around 3 times of base wage in Taiwan.

For the non-TSMC employee workers, TSMC requests their companies that the compensation paid to their workers shall comply with all applicable wage laws, including those relating to minimum wages, overtime hours and legally mandated benefits.

137

202-2

Proportion of senior management hired from the local community

In 2019 TSMC Annual Report, 2.5.1 Information Regarding Management Team, we've disclosed that we hire 18 out of 23 local people, accounting for 78.3%.

Definition:
Senior management: In 2019 TSMC Annual Report, 2.5.1 Information Regarding Management Team, we've disclosed our management team.
Local: define by nationality

Important base: mean where the headquarter located and where the majority of employees work.

-

203-1

Infrastructure investments and services supported

Please refer to the Corporate Social Responsibility Report, Social Participation part, TSMC Charity Foundation chapter. Contents including donation, in-kind giving, construction services, repair services, volunteers services, etc.

185

203-2

Significant indirect economic impacts

Today, TSMC is the world's largest semiconductor foundry, manufacturing 10,761 different products using 272 distinct technologies for 499 different customers in 2019.
Output Value Driven by the Supply Chain

-

204-1

Proportion of spending on local suppliers

Responsible Supply Chain: Continue Driving Local Supply Chain Upgrade

81

205-1

Operations assessed for risks related to corruption

TSMC assesses anti-corruption risk based on function rather than geographical region. Please refer to the corresponding sections in this report for risk assessment approaches. Based on 2019's employee ethics survey, supplier survey, CSA Reports received from each division, and a review of the incidents received through the reporting channels and the results of investigations conducted accordingly, the corruption risk is appropriately controlled and no significant corruption risk was identified.

Please refer to 2019 TSMC Annual Report:
3.5 Code of Ethics and Business Conduct
3.6 Regulatory Compliance

-

205-2

Communication and training about anti-corruption policies and procedures

Integrity is the most important value of TSMC's culture. In 2019, TSMC publises the "TSMC Anti-Corruption Commitment" to reiterate that TSMC take a zero-tolerance approach toward corruption, meanwhile elaborating the regulations regarding avoiding conflicts of interest, political and charitable contributions, and whistleblower channel. Please refer to our website: https://www.tsmc.com/download/ir/majorInternalPolicies/TSMC_Anti-Corruption_Commitment_e.pdf
TSMC provides anti-corruption and ethics training when each new colleague. For the current colleagues, TSMC provides a variety of training courses in the form of face-to-face courses, communication meetings, online compulsory and elective courses, and provides regulatory compliance guidelines and FAQs through the factory posters, company's internal website, internal e-mails, and education propaganda articles, etc., to ensure colleagues access to new knowledge of regulations and deepen their knowledge of various issues.

Ethical Management: Ethic and Regulatory Compliance

Please refer to 2019 TSMC Annual Report:
3.5 Code of Ethics and Business Conduct
3.6 Regulatory Compliance

-

205-3

Confirmed incidents of corruption and actions taken

Ethical Management: Ethic and Regulatory Compliance

Please refer to 2019 TSMC Annual Report:
3.5 Code of Ethics and Business Conduct

38

206-1

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

"Please refer to 2019 TSMC Annual Report:
6.3.3 Operational Risks/Risks Associated with Litigious and Non-litigious Matters"

-

302-1

Energy consumption within the organization

Green Manufacturing: Climate Change and Energy Management: Improve energy efficiency

104

302-2

Energy consumption outside of the organization

Green Manufacturing: Climate Change and Energy Management: Greenhouse Gas Inventory for Upstream and Downstream Supply Chain

102

302-3

Energy intensity

Green Manufacturing: Climate Change and Energy Management: Improve energy efficiency

104

302-4

Reduction of energy consumption

Green Manufacturing: Climate Change and Energy Management: Improve energy efficiency

104

302-5

Reductions in energy requirements of products and services

More Advanced and More Energy Efficient Electric Products

50

303-1

Water withdrawal by source

Risk Management of Water Resources

112

303-2

Water sources significantly affected by withdrawal of water

Risk Management of Water Resources

112

303-3

Water recycled and reused

Risk Management of Water Resources

112

305-1

Direct (Scope 1) GHG emissions

Green Manufacturing: Climate Change and Energy Management: Greenhouse Gas Inventory

102

305-2

Energy indirect (Scope 2) GHG emissions

Green Manufacturing: Climate Change and Energy Management: Greenhouse Gas Inventory

102

305-3

Other indirect (Scope 3) GHG emissions

Green Manufacturing: Climate Change and Energy Management: Greenhouse Gas Inventory

102

305-4

GHG emissions intensity

Green Manufacturing: Climate Change and Energy Management: Greenhouse Gas Inventory

102

305-5

Reduction of GHG emissions

Green Manufacturing: Climate Change and Energy Management:Best Mitigation Results in the Industry

109, 102

305-6

Emissions of ozone-depleting substances (ODS)

TSMC doesn't use Motreal Protocol Class I & II ODS

-

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions

Green Manufacturing: Air Pollution Control
Air emissions in 2019, VOC: 108.1metric tons, NOx: 116.67 metric tons, SOx:32.18 metric tons

130

306-1

Water discharge by quality and destination

TSMC (China): On-site treated water discharges to Industrial District Wastewater Treatment Plant (IDWWPT). Discharge destination of IDWWPT treated water is Youdun Harbor.
TSMC (Naijing): On-site treated water discharges to Industrial District Wastewater Treatment Plant (IDWWPT). Discharge destination of IDWWPT treated water is Yangtze River.
US WaferTech: On-site treated water discharges to the City of Camas Publically Owned Treatment Works (POTW). Discharged destination of POTW treated water is Columbia River.

-

306-2

Waste by type and disposal method

Green Manufacturing: Waste Management

121

306-3

Significant spills

There were no significant spills in all TSMC fabs in 2019.

-

306-4

Transport of hazardous waste

In 2019, TSMC exported 3.388 tons cadmium battery, which was 0.0009% of total disposed wastes.

-

306-5

Water bodies affected by water discharges and/or runoff

TSMC's treated wastewater is discharged to the Science Park wastewater treatment plant, and there is no significant
environmental impact

-

307-1

Non-compliance with environmental laws and regulations

Company has no significant fines and non-monetary sanctions for non-compliance of enviromental laws and regulations 2019.

-

308-1

New suppliers that were screened using environmental criteria

Responsible Supply Chain: 2019 Goals and Achievements
100% new suppliers compliant and signed "TSMC ethics and supplier code of conduct"

81

308-2

Negative environmental impacts in the supply chain and actions taken

Please refer to the "sustainable risk assessment" method in the "Responsible Supply Chain" chapter. TSMC requires suppliers to meet the sustainability standards through the "TSMC Supplier Code of Conduct", which includes environmental impact issues, and requires Tier 1 suppliers to implement sustainable According to the questionnaire, a total of 1,226 questionnaires (including operating units in Taiwan and China) were collected in the 2019. If the supplier has potential risks, it will be continuesly to request improvement.

81

401-1

New employee hires and employee turnover

Inclusive Workplace: Talent Attraction and Retention - Recruitment - Campus Recruitment
Talent Attraction and Retention - Recruitment - Campus Recruitment
TSMC has approximately 90% of employees located in Taiwan. Overseas employees are mostly located in Asia, which is merely 7.6% of all employees; the proportion of other regions is lower.

In 2019, TSMC (Taiwan area) has 5,087 new hires, including 76.1% of young generation which is below 30-years old.

137

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time employees

Inclusive Workplace: Talent Attraction and Retention - Benefit program

Note: TSMC provide the localized leave and insurance programs to employees in overseas regions. We grant additional days of annual leave to employees in China, North America and Europe. As for insurance program, the comprehensive life and medical insurance program are also designed in consideration of the local regulations, industry practices and local conditions for each overseas region.

137

401-3

Parental leave

Inclusive Workplace: Talent Attraction and Retention - Competitive Compensation Program - Benefit program

137

402-1

Minimum notice periods regarding operational changes

Inclusive Workplace: Human Rights - Internal Communication Channels for Employees

If the Company terminates employment, the Company will notify employees in advance abide by the law

153

403-1

Workers representation in formal joint management–worker health and safety committees

Corporate Level Safety and Health Committee is hosted by Corporate ESH Director, percentage of total workforce represented is 57%.

-

403-2

Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities

Occupational Safety and Health: Occupational Injuries

-

403-3

Workers with high incidence or high risk of diseases related to their occupation

TSMC's critical health risk operations include operations involving noise, ion-radiation, lead, dimethylformamide, n-hexane, arsenic, manganese and its compounds, dust, chromic acid and its salts, nickel and its compounds, mercury and its inorganic compounds. Fab ISEPs report workers engaged in related operations for special annual health exams and categorized health management if necessary. In 2019, complying with occupational safety and health regulation, there were 3,966 participants for special hazardous health check, 100% completion rate.

For high risk groups, such as those at risk for work-induced cerebral and cardiovascular diseases, ergonomic hazards, and maternal health, TSMC institutes hierarchical management measures in order to minimize or eliminate the risks.

-

403-4

Health and safety topics covered in formal agreements with trade unions

No related agreements.

-

404-1

Average hours of training per year per employee

Inclusive Workplace: Talent Development

1.The current design of the training system does not include the average hours of training per employee per year based on gender
2. Reveal the average hours of training per employee each year
3. Reveal the average hours of training by different categories of employees per year(manager, non-manager indirector employee, and direct employee)

148

404-2

Programs for upgrading employee skills and transition assistance programs

Inclusive Workplace: Talent Development

1. Expose annual key annual projects to enhance employees' capability, such as Technical Depth Project to improve capabilities of engineers / supervisors
2. There is no related transition assistant programs for career endings resulting from retirement or termination of employment

148

404-3

Percentage of employees receiving regular performance and career development reviews

Inclusive Workplace: Talent Development

Based on individual job requirements, performance assessment results (The performance appraisal was conducted in the middle of the year and at the end of the year, and the assessment rate was 100% in 2019), and career development needs, the employees of TSMC set up their own individual development plans (IDP), which are one of the basis of the company's annual training plan.

148

405-1

Diversity of governance bodies and employees

Sustainable Governance: Corporate Governance

Please refer to 2019 TSMC Annual Report:
2.4.1 Information Regarding Board Members
TSMC's Board is comprised of a diverse group of professionals from different backgrounds in industries, academia, law, etc. These professionals include citizens from Taiwan, Europe and the U.S. with world-class business operating experience, two of whom are female (the ratio is 22.22%).

Inclusive Workplace: Talent Attraction and Retention - Recruitment

In 2019, TSMC has 5,087 new hires, including young generation, female interns, overseas talents hired in Taiwan area, and disabled workers.

1. In 2019, 240 interns have joined tsmc internship program, including 69 female studetns (29% of all interns). After internship, 92 well-performed interns (38% of all interns) were given advanced offer; Among them, 23% are female students. Rates of all female interns, female interns who receive advanced offers, and female interns who have joined tsmc are higher than 18.3%, the rate of female professions in TSMC.

2. The table of "Overseas talents hired in Taiwan area".

3. Disabled workers: In 2019, TSMC fabs in Taiwan has hired 315 employees with moderate and mild disability, and 79 profound and severe disability. The total number of disabilities hires is 1%, compliance with government regulation. In addition, TSMC subsidiary - VisEra has provided permanent jobs to people with disability and has 3 disabled employees in 2019. The total number of VisEra's disabiltities hires is lower than 1%, the main reason is that manpower allocation has caused hiring people with disabilities a big challenge, and there is shortage of those applicants. VisEra has paid to local employment funds to meet compliance, and continuously provide suitable job opportunities to people with disabilities and looking forward to more applicants with disbilities.

-
137

405-2

Ratio of basic salary and remuneration of women to men

Inclusive Workplace: Talent Attraction and Retention - Compensation Ratio between Male and Female - The ratio of annual total compensation between male and female employees in each region of TSMC

137

406-1

Incidents of discrimination and corrective actions taken

Inclusive Workplace: Human Rights - Internal Communication Channels for Employees

In 2019, there were 3,998 cases being raised through internal communication channels in TSMC, including 4 sexual harassment cases from sexual harassment investigation committee, 141 cases via ombudsman system, 643 cases via employee opinion box, 3,151 cases via fab caring circle, and 59 cases via ethic report system and all these cases were well-handled by the designated team. All sexual harassment and ombudsman cases were investigated and reviewed by committee members. As for the employee opinion box, all cases were dispatched and replied by the people in charge based on the questions. Employees can easily access these internal communication channels via myTSMC (an internal employee portal). Internal communications channels were also introduced toward new comers during the orientation to ensure all Taiwan employees could be well-informed of the channels since very beginning.

153

407-1

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

TSMC abides by local laws and regulations, and take actions according to "TSMC Human Rights Policy" and "Responsible Business Alliance Code of Conduct". We treat all workers, including regular, contract, and temporary employees, and interns, with dignity and respect, and reduce every kind of risk to protect our employees. More details on "TSMC Human Rights Policy"

Please refer to the "sustainable risk assessment" method in the "Responsible Supply Chain" chapter. TSMC requires suppliers to meet the sustainability standards through the "TSMC Supplier Code of Conduct", which includes workers 'freedom of association or group consensus, and requires Tier 1 suppliers to implement sustainable According to the questionnaire, a total of 1,226 questionnaires (including operating units in Taiwan and China) were collected in the 2019. If the supplier has potential risks, it will be continuesly to request improvement.

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81

408-1

Operations and suppliers at significant risk for incidents of child labor

"TSMC abides by local laws and regulations, and take actions according to "TSMC Human Rights Policy" and "Responsible Business Alliance Code of Conduct". We treat all workers, including regular, contract, and temporary employees, and interns, with dignity and respect, and reduce every kind of risk to protect our employees. More details on "TSMC Human Rights Policy"

Please refer to the "sustainable risk assessment" method in the "Responsible Supply Chain" chapter. TSMC requires suppliers to meet the sustainability standards through the "TSMC Supplier Code of Conduct", which includes no child labor policy, and requires Tier 1 suppliers to implement sustainable According to the questionnaire, a total of 1,226 questionnaires (including operating units in Taiwan and China) were collected in the 2019. If the supplier has potential risks, it will be continuesly to request improvement."

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81

409-1

Operations and suppliers at significant risk for incidents of forced or compulsory labor

TSMC abides by local laws and regulations, and take actions according to "TSMC Human Rights Policy" and "Responsible Business Alliance Code of Conduct". We treat all workers, including regular, contract, and temporary employees, and interns, with dignity and respect, and reduce every kind of risk to protect our employees. More details on "TSMC Human Rights Policy"

Please refer to the "sustainable risk assessment" method in the "Responsible Supply Chain" chapter. TSMC requires suppliers to meet the sustainability standards through the "TSMC Supplier Code of Conduct", which includes no bonded labor policy, and requires Tier 1 suppliers to implement sustainable According to the questionnaire, a total of 1,226 questionnaires (including operating units in Taiwan and China) were collected in the 2019. If the supplier has potential risks, it will be continuesly to request improvement.

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81

412-1

Operations that have been subject to human rights reviews or impact assessments

Inclusive Workplace: Human Rights - Human Rights Policy

TSMC abides local laws and regulations in all countries and regions where we operate, as well as upholds the Human Rights of workers, including regular, contract and temporary employees, interns, etc. We treat them with dignity and respects as understood by the international Human Rights standards such as The International Bill of Human Rights, The International Labour Organization's Declaration on Fundamental Principles and Rights at Work, and Ten Principles of The United Nations Global Compact. We also align our actions with the Responsible Business Alliance (RBA) Code of Conduct.

We also establish TSMC's Supplier Code of Conduct and require our suppliers to adopt the same policy.

153

412-2

Employee training on human rights policies or procedures

Inclusive Workplace: Human Rights - Human Rights Risk Mitigation Measures
Disclose the total training hours, total number of employee and employee training percentages related to human rights policies.

In 2019, TSMC provided employees with a total of 116,907 hours of Human Rights protection training. In total, 48,763 employees (92,971 person-time employees) completed the training program, accounting for 95% of TSMC's total employees.

153

412-3

Significant investment agreements and contracts that include human rights clauses or that underwent Human Rights screening

In 2019, TSMC continued to construct new facilities in Taiwan. Taiwan has a high evaluation of international human rights appraisal, and has no significant issues on this topic.

-

414-1

New suppliers that were screened using social criteria

Responsible Supply Chain: 2019 Goals and Achievements

100% new suppliers compliant and signed "TSMC ethics and supplier code of conduct"

81

414-2

Negative social impacts in the supply chain and actions taken

Please refer to the "Human Rights" action plan in the "Responsible Supply Chain" chapter, TSMC take actions to supplier employees working in TSMC 's factory area in Taiwan, through reminders, audits,contracts and penalties related actions to guard aspect such as working hours / safety / labor.

81

416-1

Assessment of the health and safety impacts of product and service categories

There is no significant health and safety impacts for the products and services that TSMC provided to customers.

-

416-2

Incidents of non-compliance concerning the health and safety impacts of products and services

Not applicable

-

418-1

Substantiated complaints concerning breaches of customer privacy and losses of customer data

Innovation and Service: Customer Service - Customer's Virtual Fab (no customer complains in information leakage)

72

419-1

Non-compliance with laws and regulations in the social and economic area

Company has no significant fines and non-monetary sanctions for non-compliance of social and economic area in 2019.

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Assurance Statement

Download Independent Assurance Statement (1.5MB)