TSMC Statement on the Impact of April 3rd Earthquake

 TSMC Statement on the Impact of April 3rd
Earthquake

1.Date of occurrence of the event:2024/04/18
2.Company name:Taiwan Semiconductor Manufacturing Company Ltd.
3.Relationship to the Company (please enter "head office" or
  "subsidiaries"):Head office
4.Reciprocal shareholding ratios:NA
5.Cause of occurrence:NA
6.Countermeasures:NA
7.Any other matters that need to be specified (the information disclosure
  also meets the requirements of Article 7, subparagraph 9 of the Securities
  and Exchange Act Enforcement Rules, which brings forth a significant impact
  on shareholders rights or the price of the securities on public companies.):
Taiwan experienced an earthquake on April 3 reaching magnitude level 7.2
(the largest in Taiwan over the past 25 years). The maximum magnitude
measured at the Hsinchu, Longtan, and Zhunan science parks was 5, and
reached magnitude 4 at the Taichung and Tainan science parks.

Based on TSMC's ample experience and capabilities in earthquake response
and damage prevention, as well as regular disaster drills to ensure full
readiness, overall tool recovery of our fabs reached more than 70% within
10 hours of the April 3 earthquake, with new fabs such as the Fab 18
facility reaching more than 80%. Thanks to the collaborative efforts of
TSMC colleagues and our supplier partners, we were fully recovered by
the end of the third day. At the same time, we are maintaining close
contact with customers and communicating with them regarding impact as
appropriate.

There were no power outages, no structural damage to our fabs, and there
is no damage to our critical tools, including all of our EUV lithography
tools. That being said, a certain number of wafers in process were
impacted and had to be scrapped, but we expect most of the lost
production to be recovered in the second quarter, and thus minimal impact
to our second quarter revenue. We expect the total impact from the
earthquake to reduce our second quarter gross margin by about 50 basis
points, mainly due to the losses associated with wafer scraps and
materials loss. TSMC maintains its full-year revenue guidance of
low-to-mid-twenties percentage growth given at the January institutional
investors' conference. Based on a preliminary assessment, the Company
estimated related earthquake losses to be approximately NT$3 billion, net
of insurance claim, and will recognize it in the second quarter of 2024.