COMPARISON / CONCLUSION

TSMC

INTERNAL AUDIT
TSMC's Internal Audit function is an independent unit that reports directly to the Board of
Directors. Besides informing the Board during its ordinary meetings, it briefs the Chairman,
the Board Audit Committee, and the Operating Committee on a quarterly and on as needed
basis.
The charter of Internal Audit is to review the internal controls in the company's processes and
to report on those controls with respect to the adequacy, effectiveness, and efficiency of their
design as well as their actual functioning on a day-to-day basis. All parts of the company and
its subsidiaries are open for review by Internal Audit.

AUDIT COMMITTEE’S REVIEW REPORT

The Board of Directors has prepared the Company’s 2021 Business Report, Financial
Statements, and proposal for allocation of quarterly earnings. The CPA firm of Deloitte &
Touche was retained to audit TSMC’s Financial Statements and has issued an audit report
relating to the Financial Statements. The Business Report, Financial Statements, and
quarterly earnings allocation proposal have been reviewed and determined to be correct and
accurate by the Audit Committee members of Taiwan Semiconductor Manufacturing
Company Limited. According to relevant requirements of the Securities and Exchange Act
and the Company Law, we hereby submit this report. Taiwan Semiconductor Manufacturing
Company Limited Chairman of the Audit Committee: Sir Peter L. Bonfield February 15,
2022

INDEPENDENT AUDITORS' REPORT

Opinion
We have audited Taiwan Semiconductor Manufacturing Company Limited and its
subsidiaries (the "Company “consolidated )'s financial statements, which include the
consolidated balance sheets as of December 31, 2021, and 2020, and the consolidated
statements of comprehensive income, changes in equity, and cash flows for the years then
ended, as well as the notes to the consolidated financial statements, which include a summary
of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all
material respects, the consolidated financial position of the Company as of December 31,
2021, and 2020, and its consolidated financial performance and its consolidated cash flows
for the years then ended in accordance with the Regulations Governing the Preparation of
Financial Reports by Securities Issuers and the International Financial Reporting Standards
(IFS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC
Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory
Commission of the Republic of China.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Auditing and
Attestation of Financial Statements by Certified Public Accountants and auditing standards
generally accepted in the Republic of China. Our responsibilities under those standards are
further described in our report’s Auditors' Responsibilities for the Audit of the Consolidated
Financial Statements section. We are independent of the Company in accordance with The
Norm of Professional Ethics for Certified Public Accountants of the Republic of China and
we have fulfilled our other ethical responsibilities in accordance with these requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the consolidated financial statements for the year ended
December 31, 2021. These matters were addressed in the context of our audit of the
consolidated financial statements, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.

The key audit matter for the Company's Our audit procedures related to the
consolidated financial statements for the evaluation of when to commence
year ended December 31, 2021, is stated as depreciation of EUI/CIP included the
follows: following, among others:

Property, plant, and equipment (PP&E) -
commencement of depreciation related to
PP&E classified as equipment under
installation and construction in progress
(EUI/CIP)
Refer to Notes 4, 5, and 14 in the
consolidated financial statements.
The Company's evaluation of when to
commence depreciation of EUI/CIP
involves determining when the assets are
available for their intended use. The
criteria the Company uses to determine
whether EUI/CIP is available for their
intended use involves subjective judgments
and assumptions about the conditions
necessary for the assets to be capable of
operating in an intended manner. Changes
in these assumptions could significantly
impact when depreciation is recognized.
Given the subjectivity in determining the
date to commence depreciation of EUI/CIP,
performing audit procedures to evaluate the
reasonableness of the Company's judgments
1. We read the Company's policy and
understood the criteria used to determine
when to commence depreciation.
2. We tested the effectiveness of the controls
over the evaluation of when to commence
depreciation of EUI/CIP.
3. We sampled the year-end balance of
EUI/CIP and performed the following for
each selection:
a. Evaluated whether the selection did not
meet the criteria specified by the Company
for commencement of depreciation.
b. Observed the assets and evaluated their
status.
We sampled and evaluated whether the
selection of EUI/CIP met the criteria
specified by the Company for
commencement of depreciation during the
year.
5. We sampled and evaluated whether the
selection of EUI/CIP met the criteria
specified by the Company for
commencement of depreciation after year-
 and assumptions required a high degree of end.
auditor judgment. Consequently, a key audit
matter is identified as the validity of
commencement of depreciation related to
PP&E classified as EUI/CIP.

GOBI

INDEPENDENT AUDITOR
The Risk Audit Committee of Gobi JSC determines the independence, qualifications, work
experience, and other criteria for the independent auditor, and evaluates whether the criteria
are met, the rights, duties, and responsibilities of the independent auditor, the number of fees
to be paid to the auditor, and other agreements The board of directors prepares and approves
proposals regarding the conditions. In addition to monitoring the activities of the independent
audit, he also supervises the implementation of the recommendations given to the
management. The financial statements of Gobi JSC as of December 31, 2021, were externally
audited by KPMG Audit LLC. KPMG Audit LLC is one of the 4 largest international audit
companies and was registered by the Financial Regulatory Commission as an Audit Company
providing services to the Securities Market in 2013.

INDEPENDENT AUDITOR’S REPORT

Opinion
We present the consolidated financial statements of the main JSC and its subsidiaries
(hereinafter referred to as the "Group") as of December 31, 2021, the consolidated profit and
loss statements and other detailed income statements for the year ended, statement of changes
in ownership, cash audited the consolidated financial statements consisting of a statement of
transactions and a summary of significant accounting policies.
In our opinion, the consolidated financial statements of the Group give a true and fair view of
the consolidated financial position as of 31 December 2021 and the consolidated financial
performance and cash flows of the Group for the year then ended in accordance with
International Financial Reporting Standards ("IFRS").
Basis for Opinion
Our audit responsibilities in accordance with ISAs ("ISAs") are described in the Auditor's
Responsibilities for Audits of Consolidated Financial Statements section of this report. We
are independent of the Group in accordance with the Code of Ethics for Professional
Accountants of the International Ethics Standards Board for Certified Public Accountants
("ISBEC") and relevant ethical requirements in Mongolia related to the audit of financial
statements. have fully fulfilled their other ethical responsibilities in accordance with ethical
requirements. The audit evidence we obtain to form an audit opinion
We believe that this is a sufficient and appropriate basis.
Key highlights of the audit
Key audit findings are those matters that, in our professional judgment, are of the greatest
importance in the audit of the consolidated financial statements for the reporting year. These
matters were resolved during our audit and opinion on the consolidated financial statements,
and we do not express a separate opinion on these matters.

Inventory impairment deduction

Key highlights And the audit measures that resolve them

The inventory turnover ratio has slowed Performed audit procedures:

due to the group's large purchases of raw
materials last year. In this regard, we
considered the write-off of inventory
impairment to be a major highlight of the
consolidated financial statements.
Sales from foreign tourists accounted for a
large portion of the Group's revenue, and
this year's sales were down compared to
previous years due to lower tourism. As a
result, a large part of the inventory was left
over from the previous year's purchases.
-The completeness and accuracy of
inventory value and age information at the
end of the reporting period has been
checked.
-Impairment deductions are recalculated
using the inventory aging report.
-Inventory balances were assessed using
either the purchase or production cost or
net realizable value calculated using the
weighted average balance method.
-During the audit and the observation of the
inventory count, the presence of long-term
and unused inventory was checked.
-In order to verify the cost of newly
purchased inventory during the reporting
period, confirmation letters were obtained
from customer organizations.

IN CONCLUSION
The TSMC audited the financial accounts of Taiwan Semiconductor Manufacturing
Company Limited and its subsidiaries (the "Company "consolidated"). The accompanying
consolidated financial statements, in our opinion, depict the Company's consolidated
financial situation fairly in all essential aspects as of December 31, 2021, and 2020. They are
prepared in compliance with the Financial Reporting Regulations for Securities Issuers and
the International Financial Reporting Standards (IFS).

As of GOBI, they present the consolidated financial statements of the main JSC and its
subsidiaries (hereafter referred to as the "Group") as of December 31, 2021, including the
consolidated profit and loss statements and other detailed income statements for the fiscal
year ended, a statement of changes in ownership, cash audited, and a summary of significant
accounting policies. The Group's financial performance and cash flows are provided in line
with International Financial Reporting Standards ("IFRS").