TSMC Volunteer Program and TSMC I-Charity Into a Charity Network for Social Care and Steering TSMC‘S Resources Toward the Public As a Force to Uplift Society

TSMC台積公司民國 2016 Corporate105 年度 Social Sustainable營運與價值創造 Management Governance企業永續管理 and Business Innovation創新服務 and Service Responsible責任採購 Supply Chain 永續營運Green Manufacturing人才發展Inclusive Workplace社會參與Social Participation附錄Appendix Responsibility企業社會責任報告書 Report

Total number of cooperating Social Participation 422 Charity Groups Taiwan Semiconductor Manufacturing Company (TSMC) has been established in Taiwan for 30 years, and we have thrived with support from all of society. What we have taken from society, we give back to society. With our core 93,623 Volunteer Service Hours principles of fairness, justice and living and working in harmony, TSMC has been contributing for many years to neglected corners of society and areas lacking resources, combining the TSMC Culture and Education Foundation, TSMC Volunteer Program and TSMC i-Charity into a charity network for social care and steering TSMC‘s resources toward the public as a force to uplift society.

Cumulative number of participants in Education is the foundation of a country and TSMC employees work very hard, and they also 16,318 charity donations and charity sales culture is the soul of society. TSMC values have lots of love in their hearts. We try to use education and culture, and uses a variety of their love, knowledge and experience to help educational programs and exquisite artistic society through our volunteer program. performances by the TSMC Foundation to ﬁll gaps in regular education and uplift the spirit of society. TSMC hopes this current can make our society a more beautiful place.

TSMC Foundation and employees F.C. Tseng Sophie Chang contributed more than NT$93 million Chairman, TSMC Foundation President, TSMC Volunteer Program NT$93 m to public service

Book-reading volunteers, called "Red Angels" Every time I serve, and see the carefree smiles by the children, lead students to experience a on the faces of the people we accompany, I diverse learning experience and work to mend discover how our little efforts really can make a the culture gap between city and country. They change. try so hard to open children’s eyes to learning. I am grateful and so touched by the faith in the Cumulative number of beneficiaries hearts of TSMC volunteers. 212,671 Hsiao-Chiuan Chang David Lu President, Tainan Song-Lin elementary school Fab 15 Volunteer Service locations across 18 18 counties in Taiwan

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TSMC’s mission is to uplift society. We have not only strived to thrive in our core business of dedicated IC foundry services, but have also built a socially-caring network through TSMC Culture and Education Foundation, TSMC Volunteer Program and Our Strategies TSMC 2020 Vision TSMC i-Charity Platform. By combining the Company’s resources with employee volunteer service to commit money, material, External Cooperation 2020 Goals and labor to a diverse range of in-depth charity work in the areas of education for underprivileged students, caring for the • Narrowing the urban-rural gap in cooperation with in-system Continuously providing resources and cooperate disadvantaged, cultivation of youth, arts and culture, ecology and energy conservation, we bring transformation to our local and out-system educational institutions • with in-system and out-system educational communities. • Holding Competitions institutions to contribute to minority education. TSMC believes that to achieve sustainability, we must contribute to common good. With the social vision of equality and Regularly holding competitions of humanity and science Contribute not less than NT$10 million per year to guide teenagers to explore their development direction justice, we act as a good corporate citizen and have enduring efforts geared towards bridging the rural-urban gap in Continuously holding competitions of humanity and beyond the regular education • resources. We encourage our employees to make social justice part of the DNA of our very ethos. Social participation in science with not less than 500 contestants in each charity and local communities has driven us to be an ever-growing force in pursuit of a promising future. • Organizing Hsin-Chu Arts Festival Continuously organizing “Hsin-Chu Arts Festival” Continuously organizing grand arts festival at TSMC’s site • and sponsor at least three grand performances of communities, Hsinchu, Taichung and Tainan, to cultivate foreign classical music or Chinese classical opera. young artists and to promote exquisite ﬁne arts in the The attendees should be more than 350,000 every community year

• Volunteer Participation Over 30,000 times participation of volunteer Carefully select service items, encourage employee to • activities yearly participate volunteer activities TSMC Foundation Volunteer Program TSMC-I Charity 2016 Targets 2016 Achievements 2017 Targets Since 1998 Since 2004 Platform Since 2014 • Cooperating with in-system and out-system Started the “Hope Reading 2.0” in Add one more external educational institutions to improve the help cooperation with the CommonWealth educational partner for minority education Foundation. Aside from books donation for rural elementary schools, the Foundation sponsored tablets for digital education Spreading the Seeds of the Happy Volunteer, To make good things • The number of contestants of “TSMC Number of Contestants Growth The contestants of each Fine Arts and Coloring the Do good with wisdom happen with love Youth Literature Award” and “TSMC Youth contest are not less than Beautiful Society % Calligraphy Contest” and “TSMC Cup – 26.66 those of the previous year Competition of Scientiﬁc Short Talk." are not less than the previous year • Organizing Hsin-Chu Arts Festival. Including, Events Attendees The total number of events Hsinchu, Taichung and Tainan, the total and the attendees of Hsin- To integrate employee donations and Chu Arts Festival should Focus on Minority Education, number of events and the attendees should Six major corporation volunteer service resources to help social 53 20,053 be not less than 30 and Building Educational Platforms, be not less than 30 and 20,000, respectively volunteer programs vulnerable groups and eliminate the gap 20,000, respectively Promoting the Arts and Culture between urban and rural areas • Over 10,000 volunteer service times Volunteer Service Over 10,000 volunteer service times 16,570 times

Achieved Surpassed 115 TSMC 2016 Corporate Social Sustainable Management Governance and Business Innovation and Service Responsible Supply Chain Green Manufacturing Inclusive Workplace Social Participation Appendix Responsibility Report

Renovation of the exhibit “the World of the Integrated The Chronicle of TSMC's Charity Sponsorship for National Chin-hua University to Circuit” of the National Museum of Natural Science, renamed Launch of the Project establish the first college of technology management, the exhibit “the World of the Semiconductor” “TSMC Dream Builders 1997~2016 and the research center “TSMC Building” of Youth” Sponsorship of Berliner Sponsorship of the establishment of “Children Art Sponsorship of the exhibition “Millet-the Beauty of Countryside” Philharmoniker’s Debut in Taiwan Education Center ”of Taipei Fine Arts Museum Commitment to Education

Promotion of Art and Culture Sponsorship for the restoration of the former Sponsorship of the Community Launch of TSMC Literature Award for Novelettes American embassy to rebirth in the form of SPOT Film House Wu Ta-Yu Science Camp Communities Building Volunteer Program

Employee Volunteer Program Establishment of TSMC Launch of TSMC Youth Calligraphy and — More than participants since it started Sponsorship of the pressure garments for Volunteer Program Seal-carving Competition 5,981 victims of Taiwan Water Park Dust Explosion

Sponsorship of U-Theatre Taiwan Tour Project Books Reading Volunteer Sponsorship of Royal Sponsorship of the Chinese Classic Broadcasting Program of Professor Hsin I-yun on IC Radio Channel Sponsorship of Royal Concertgebouw Program Concertgebouw Orchestra’s Orchestra second visit to Taiwan Debut in Taiwan

Sponsorship of the Exhibition “Cultural Relics Sponsorship of Literature Endowment of International Exchange Sponsorship of Berliner Philharmoniker’s Set up TSMC-I Charity Platform from the Tang dynasty” Salon at Taipei Story House Student Scholarship of National Chin-hua University second visit to Taiwan

Endowment of Morris Chang Chair Professorship at Sponsorship of Sponsorship of the project “ the Volunteer Sponsorship of the exhibition of “the British Museum—The Body Beautiful in Ancient Greece” National Chin-hua University Junyi Academy Protection of the Historical Sites” of the Docent Culture Affairs Bureau in Hsinchu City Program Launch of the Project “Reading Hope” Sponsorship of the project “The with the CommonWealth Education — More than 240,000 children have been helped with more than 210,000 books Sponsorship of the Opera Sponsorship of the reconstruction of Training of Home Care Services” Foundation “Madama Butterfly”, produced Kao-hsiung Gas Explosion of The Red Cross Society of Taiwan by National Symphony Orchestra Establishment of the TSMC Education and Culture Foundation Launch of the TSMC Youth Literature Award — More than 6,551 works were submitted

Sponsorship of the TV Program “the Journey through the Endowment of the TSMC Lecture Chair Professorships at Sponsorship of the Palace Museum”of the Taiwan Public Television Channel Sponsorship of the Competition of Scientific Short Talk National Chin-hua University, National Chiao-tung University and Madame Curie Chemistry National Central University Camp Launch of the Project Sponsorship of the Project “the Care for the Foreign Spouses in Taiwan” Sponsorship of The Charity Concert of Sponsorship of the Program Sponsorship of the restoration of “Hope Reading 2.0” of the Modern Women’s Foundation Energy Saving Volunteer Program José Carreras for 921 Taiwan Earthquake “Raising the Level of High Dr. Sun Yun-sun’s Residence with the CommonWealth School Physics Experiments” Foundation of the Wu Chien-Shiung Foundation Sponsorship of the Exhibition “The World of Pablo Picaso ” Launch of the Hsin-chu Arts Festival — Added up to 620 fine arts activities with more than 310,000 participants

Launch of the TSMC Atheistic Tour for taking Launch of the TSMC Science Tour for taking Sponsorship of the establishment of the the elementary school students from the — Have invited 69,885 children from more than 500 rural primary schools the elementary school students from the remote — Have invited 13,366 children from 119 rural primary schools Foundation of the Cloud Gate Dance Group remote townships to visit museums townships to visit science museums Endowment of the TSMC Scholarships for underprivileged students Sponsorship of the research building of National Taiwan University, National Chin-hua University, National Donation of the Museum “The World of the Integrated Circuits” “Tzi-Shueh Hall” of the Chemistry Department Fab/Division Volunteer Sponsorship of “Raising Sun” Scholarships Chiao-tung University, National Central University and to National Museum of Natural Science in National Taiwan University Program of National Tsing Hua University and National Cheng-kung University “Sunflower” Scholarship of National Central University Sponsorship of the establishment of the Foundation of the Sponsorship of the Wu Chien-Shiung Science Camp Ecology Volunteer Program Museum of Contemporary Art at Taipei

(Year)

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 116 TSMC 2016 Corporate Social Sustainable Management Governance and Business Innovation and Service Responsible Supply Chain Green Manufacturing Inclusive Workplace Social Participation Appendix Responsibility Report

Raising Sun Scholarship of National Tsing Hua TSMC Youth 3 University 7 Literature Award Hope Reading Madame Sunﬂower Scholarship 13 Program 6 Curie TSMC Education and Culture Foundation of National Central Chemistry TSMC Cup- the 2 University The TSMC Education and Culture Foundation, led by TSMC Vice Chairman F.C. Tseng who serves as the TSMC Camp 4 Competition of Foundation’s chairman, was established in 1998 to make CSR contributions. The TSMC Foundation fulfills its long- 1 Junyi Academy Scientiﬁc Short TSMC 2016 Corporate Talk TSMC Literature term commitment to education and culture through fourOverview main focal points:Stakeholder Commitment toEngagement Education, PromotionCorporate of Governance Economic Dimension Environmental Dimension Social DimensionAwardAppendix for for SocialTSMC Responsibility 2016 Corporate Repor t Novelettes 13 Art and Culture, Communities Building, and Employee VolunteerOverview Program.Stakeholder In 2016, the TSMC Engagement Foundation contributedCorporate Governance Economic Dimension Environmental Dimension Social Dimension Appendix Wu Chien-shiung over NT$75.81Social million Responsibility to various projects Repor in minorityt education, humanity education, arts promotion, productions of 10 Science Camp broadcasting and internet programs and regular literature lecture. TSMC Youth Calligraphy and The TSMC Foundation established a website www.tsmc-foundation.org to offer the public online lectures, activity Wu Ta-yu Seal-Carving 12 Science Camp Competition information, and details of the Foundation’s projects. 9

Junyi 1 Academy Atheistic Tour Accoumulation of TSMC Volunteer Head Count The Project of 14 Promotion Results of Microbial Fertilizer Unit: No. of people 1 Dream Builders of Sponsorship by the TSMC Foundation in 2012~2016 Accoumulation of TSMC Volunteer Head Count Promotion ResultsYouth of Microbial Fertilizer Unit: No. of people Sponsorship by the TSMC Foundation in 2016 Sponsorship by the TSMC FoundationUnit: ten thousands in 2012~2016 NT dollar 3,270 4,138 5,451 6,812 7,838 13 Science Tour 1 10 9 3,275 6,338 7,353 6,410 6,841Unit: ten thousands7,581 NT dollar 3,270 4,138 5,4517 6,812 7,838 13 Others 1 10 9 6,338 7,353 6,410 6,841 7,581 Junyi Academy 3,275 Others 1 9% 1,029 1,747 Volunteer 1,029 1,747 Program 9% Volunteer 40 Program12% 40 12% Total 1st crop 2015 2nd crop 2015 1st crop 2016 2nd crop 2016 2012 2013 2014 2015 2016 Total 44% 1st crop 2015 2nd crop 2015 1st crop 2016 2nd crop 2016 2012 2013 2014 2015 2016 NT$75.81m 44% NT$75.81m Accoumulation of each Volunteer Program Accoumulation of each Volunteer ProgramUnit: No. of people 27% 3,270 4,138 5,451 6,812 Unit: 7,838No. of people The Multiple Projects Education 27% 3,270 4,138 5,451 6,812 7,838 Education Covering All Age Level Communities 8% 2012 2013 2014 2015 2016 Communities 8%Art Events 2012 2013 2014 2015 2016 The numbers represent how many Art Events years those programs have continued

2012 2013 2014 2015 2016 Volunteer2012 Docent2013 Book reading2014 Volunteer 2015 2016 Elementary Junior High Senior High College and Youth Energy saving Volunteer Community Volunteer VolunteerSchool Docent Book reading VolunteerSchool School above (Under 40) EcologyEnergy Volunteer saving Volunteer Holiday VolunteerCommunity VolunteerFab/Division Volunteer 117 Ecology Volunteer Holiday Volunteer Fab/Division Volunteer TSMC Volunteer Program Outcome TSMC Volunteer Program Outcome 3,993 4,061 7,379 10,191 16,570 18,8123,993 26,3674,061 39,3907,379 54,57310,191 93,62316,570 18,812 26,367 39,390 54,573 93,623

2012 2013 2014 2015 2016

Volunteer2012 person-time2013 Service2014 man-hour 2015 2016

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Junyi Dec Sponsorship Academy TSMC Youth Feb. of the Opera Calligraphy and “Othello” Seal-carving Madame Curie TSMC Competition Chemistry Camp Hsin-Chu Arts Festival TSMC Jun. Cup- the Nov. Aesthetic Tour Competition of Scientiﬁc Science Story Telling Tour Aug. Sheng Hsiao-yun Suzhou Dialec Concert

Mar. Wu Ta-yu Science Camp The 2016 Full Record of Sept. Tseng Keng-yuan TSMC Foundation Activities Violin Recital Broadcasting Hope Reading Commitment to Education for the Underprivileged Oct. Program "the Analects in Program Building Education Platform Hsin’s View" Jul. Promoting Arts and Culture Literature Salon Sunﬂower TSMC Jan. Scholarships of Raising Sun National Central Scholarships Dream University TSMC Youth of National Builder of Literature Tsing Hua Youth Award Apr. University Wu Chien-shiung Sponsorship of Taichung Science Camp May Flower City Arts Festival

85 20,000 3,000,000 71 27,849 Supporting Schools Donating Books Total Grand Prize for the Sponsorship of Art Audience Attending of Remote Townships Dream Builders of Youth (NT$) Performances the Performances 118 TSMC 2016 Corporate Social Sustainable Management Governance and Business Innovation and Service Responsible Supply Chain Green Manufacturing Inclusive Workplace Social Participation Appendix Responsibility Report

Commitment to Education for the Underprivileged Corporate Contributions to Bridge the Urban-Rural Gap

The TSMC Foundation has cared about the educational In addition to book donation, the program selects six merit Aesthetic and Science Tour gap, caused by the rapid social change, between rural schools and five benchmark schools, and provides each The TSMC Foundation emphasizes aesthetics and science southern Taiwan. In 2016, a total of 1,410 students took and urban areas. This year, the Foundation strengthened class two tablets and each student in third to sixth grades education. “TSMC Aesthetic Tour” and “TSMC Science part in the Aesthetic Tour and 1,831 students took part in collaboration with the CommonWealth Foundaiton, the with one tablet, respectively, with a total of 265 tablets in Tour,” launched in 2003 and 2010, respectively, take the Science Tour. All the educators and students were from Junyi Academy and the Boyo Foundation to infuse the all. With the help of other education partners, the TSMC children from remote townships throughout the country 17 counties, including Hualien, Taidong, Nantou, Pingdong resources to narrow the gap. The Foundation continued to Foundation will also implement e-learning systems to to visit the National Palace Museum, the Taipei Fine Arts and Penghu island. hold the Aesthetic Tour and the Science Tour to take the build up the reading and e-learning culture with the aid of Museum and the science museums in northern, central and pupils from remote townships to museums and science distance courses and online community reading platforms. educational centers to bring them the wider vision in art and science. In addition, the Foundation sponsored the Junyi Academy Raising Sun Scholarship of Tsing Hua University and the The “Junyi Academy” is an open platform, which is Sunflower Scholarship of Central University, providing 19 expected to bring educational opportunities to each corner underprivileged students with NT$1.62 million to help them of the society through the cloud platform. So far there are to focus on their studies in college. over 8,000 teaching videos and over 2,000 interactive practices in Math, Science, Language and Society covering Hope Reading 2.0 basic courses from primary school to college. The services are available mainly at Yilan County, Hualien County, Yunlin Reading is key to learning knowledge. The TSMC County, New Taipei City and Toayuan City, for up to 35,000 Foundation takes the cultivation of reading ability into users every week. very serious consideration. In 2004, the TSMC Foundation began supporting “Hope Reading” of the CommonWealth Since 2016, the TSMC foundation has sponsored the“Junyi Foundation, which each year donates 100 good books to Academy” in expectation of providing rural students 200 high schools and primary schools in Taiwan’s remote affordable and customized qualified digital learning tools. townships. Over the past 13 years, more than 732,000 The Junyi Academy can not only ease the burden of children have been helped with more than 210,000 books. teachers, reduce the cost of studying and provide various courses, but also enhance the ability of digital applications. To respond to the needs of the digital era, the TSMC

Foundation further sponsored “Hope Reading 2.0,”in 2016. Flip the Disadvantaged: Flip the Disadvantaged: Flip the Disadvantaged: The Press Conference of Launching Junyi Academy The Atheistic Tour the Plan “Hope Reading 2.0”

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Building Educational Platforms Fostering Multi-Competence Talents and Helping Youth Reach Their Dreams

To encourage those in the younger generation to chase environmental sustainability, humanities promotion and Museum, the TSMC Foundation set the competition’s theme winning works were not only printed in the United Daily but their dreams, the TSMC Foundation launched the first technology from multiple kinds of field to demonstrate their as “Child, No Fear”, the graphics of the words are the collected to be published every year. In 2016, in addition “TSMC Dream Builders of Youth Project” in 2016. Eight creativity and potential. Chinese ancient inscriptions from the Mao-kung Ting from to novel and poetry, prose was included as another teams were awarded prizes totaling NT$3 million to chase the important collection of the National Palace Museum, to category for literary creation, the Literature Award also their dreams. In addition, the Foundation continued to TSMC Youth Calligraphy and Seal-carving encourage the young generation to be brave to face and held the seminar “How to write a prose for a senior-high- hold the literature award, the calligraphy and seal-carving Competition overcome the difficulties. There were also three workshops, school student? ”, inviting the famous writers’ experience competition and the science short talk competition to build respectively, held in the National Palace Museum, the of literacy creation for the encouragement. This year, there To encourage the youth to pursue the art of calligraphy, multiple stages for our young generation. Taichung Municipal Cingshuei Senior High School and the were a record 628 works submitted, including 146 works of the Foundation holds the TSMC Youth Calligraphy and Seal- Kaohsiung Municipal Kaohsiung Industrial High School, prose, 240 works of poetry and 242 works of novel. carving Competition, including the groups of regular script TSMC Dream Builders of Youth attracting 450 educators and students. and cursive script for the senior-high-school students, TSMC Cup – Competition of Scientific In 2016, the TSMC Foundation launched the “TSMC Dream and the group of seal-carving for the youth under age 40. TSMC Youth Literature Award Short Talk Builders of Youth”project. A total of 166 teams composed The first prize for the winner of each group is NT$100,000, To encourage the young generation to develop proficiency Unlike ordinary science fairs or paper contests, the TSMC of 500 college students from Taoyuan, Hsinchu and which is the grandest prize among the competitions of in literature, since 2003 the TSMC Foundation has held the Cup-Competition of Scientific Short Talk is a completion of Miaoli, applied for the project. After elimination stages, the same level in Taiwan. In 2016, the 9th TSMC Youth “TSMC Youth Literature Award, which is the most important Sci-Talks. The competitors have to read a wide variety of eight teams were awarded prizes totaling NT$3 million. Calligraphy and Seal-carving Competition attracted 366 literature award for senior high school students. The scientific materials, write popular scientific articles, give The winning projects including agricultural recreation, attendees in total. Collaborating with the National Palace scientific speeches and answer the questions from their The Winners of 2016 TSMC Dream Builders of Youth opponents to improve the students’ science presentation skills. In 2016, echoing the United Nations’ theme of “International Year of Pulses,” the competition focused on pulses and invited 223 teams composed of senior high school students to read well-respected books, write essays National Tsing Hua University, and deliver short scientific talks on the subjects of science, Lunghwa University Minghsin University of National Hsinchu National Tsing Hua Hsuan Chuang Hsuan Chuang National Tsing Hua National Central nutrition, environment and agriculture in the preliminary and of Science and Science and Technology, University of University, University University National Hsinchu University University National Chiao Tung semi-final workshops and the contest. The ultimate goal is Technology University of Education" Education University" to cultivate in-depth knowledge and mastering presentation skills.

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Promoting Arts and Culture Spreading the Seeds of Fine Arts and Humanities for Community Development

The TSMC Education and Culture Foundation is devoted Sponsorship on the National Production The Chinese Classic Broadcasting to the promotion of arts and culture to lift the spiritual life of the Opera "Othello" Program “Analects in Hsin’s View” of the people and society. Over the years, the Foundation Feedback from has sponsored and organized multiple humanity activities, The TSMC Foundation also supports various Taiwanese art The TSMC Foundation has a long-term commitment to including exquisite performances, broadcasting and groups with actual deed. In 2016, the TSMC Foundation promote Chinese Traditional Classics. Since 2008, the TSMC Program Participants internet programs, and regular literature lectures to infuse sponsored the opera concert of Verdi’s “Othello,” a semi- Foundation has invited Professor Yih-Yun Hsin to lecture stage opera concert with sound effects and projected the traditional Chinese philosophy and wisdom through the the art resources to the society and enrich the people’s I’ve made my mind to do this project, for I hoped mind and spirit. animations made by National Symphony Orchestra. It broadcast program on the IC Radio Broadcasting Station. I could better understand my father through this was jointly developed with Mary Birnbaum, an opera and Following the first part of Analects, Chung-tzu and Mo-tzu, documentary of native species of Phalaenopsis theater director of the Juilliard School in U.S. “Othello” since 2015 the Professor has started to lecture the second Aphrodite on Orchid Island and I might know why TSMC Hsin-Chu Arts Festival he had been loving the orchid. Now I understood attracted more than 3,500 fans to enjoy the music and was part of Analects, which will be finished in the middle of The TSMC Foundation has long played the role of “fine arts his love to the orchid and land. very well reputed. 2017. planter”, spreading the seeds of fine arts in the society. In Thanks to this project held by TSMC foundation. addition to actively supporting prominent international and The end of the project does not mean the end of Taiwanese artistic performances, the TSMC Foundation the dream, but one another beginning! has continued to organize the “TSMC Hsin-Chu Arts ZOU Jia-Jing, a member of Orchid's , the winner Festival” at TSMC’s site communities - Hsinchu, Taichung “ ” of 2016 TSMC Dream Builders of Youth and Tainan - to present a broad spectrum of performances to encourage the community’s interest in the arts. In 2016, in commemoration of 400th anniversary of the death of

William Shakespeare, the festival invited Contemporary Due to my family’s difficult financial situation, I Legend Theatre, Corny Chicken Theatre and Prof. I-Fan occasionally had enough food, not even say to Ho of National Hsinchu University of Education to perform enter the good school for better education. And novel musical, children’s concert and drama lectures for therefore, I almost had to be enforced to choose to service in the army. Thank for the Raising Sun community residents to better understand Shakespeare’s Scholarship, I could learn in such great college literature. The festival also invited young violinist Richard and learn what I want to learn without caring the Lin to perform three concerts in northern, central and economic situation. southern Taiwan, to promote prominent Taiwanese artists. Furthermore, the TSMC Foundation hosted the first “In Mr. Chou, studying in College of Engineering in Spring Chanting Poetry Festival” and invited communities NTHU, student of 2016 Rising Sun Plan, and schools from Taoyuan, Hsinchu and Miaoli to chant poetry and enjoy the beauty of literature. The “2016 TSMC Hsin-Chu Arts Festival” arranged 53 fine arts activities, Hsin-chu Arts Festival : Hsin-chu Arts Festival : Hsin-chu Arts Festival: attracting over 20,000 attendees. Since 2003 the Festival The Theatrical Demonstration of “A Richard Lin Violin Recital The Music Fantasy of Penguin has organized over 620 performances, attracting 310,000 Midsummer Night's Dream” Shakespeare attendances in total. 121 TSMC 2016 Corporate Social Sustainable Management Governance and Business Innovation and Service Responsible Supply Chain Green Manufacturing Inclusive Workplace Social Participation Appendix Responsibility Report

TSMC i-Charity Platform Founded in 2014, the " TSMC i-Charity Platform" is the 2016 TSMC i Charity Platform Project Overview interaction mechanism of TSMC employees. With the support of TSMC's Social Responsibility Committee, we Delivering Good have integrated caring projects of the TSMC Volunteer Program and the TSMC Education and Culture Foundation. with Love; Gathering Hualien Xiu-Lin Regular Donation to Meanwhile, employees could propose caring projects, share “Little Sun” School Jun-Yi Academy Power of Good and good things and good ideas to do good on the platform. In Reconstruction addition, in order to provide a more convenient route, the Sharing Hope platform's donation mechanism is linked to the Company's payroll system so that employees can contribute to specific TSMC volunteer members dig caring cases from the front line service and seek support from employees in projects or choose their "volunteer service" approaches. Volunteer Recruitment Regular Donation to the company to raise donation projects on the TSMC for Hualien Xiu-Lin “ Teach for Taiwan “Little Sun” School i-Charity Platform.” The Operations of TSMC i-Charity Platform

2014 2015 2016

Tai Tung St. Mary Hospital employees Caring TSMC Bookcase 6,826 3 6 10 Reconstruction Projects In 2016, a total of 6,826 employees donated NT$12.2 million.

Number of 9,000 9,600 6,826 Participants

National Taitung Junior Yuan-Dong Junior High College Reconstruction School Reconstruction people NT$18 NT$18 NT$12 5,546 Donation In 2016, the employees donation support 10 projects Amount million million million and help 5,546 people.

Healthy Lung Program of Sin-Sheng Elmentary West Taiwan School Reconstruction

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TSMC 2016 Corporate Overview Stakeholder Engagement Corporate Governance Economic Dimension Environmental Dimension Social Dimension Appendix Social Responsibility Report

TSMC Volunteer Program

Accoumulation of TSMC Volunteer Head Count The TSMC Education and Culture Foundation established the“TSMC Volunteer Program”in 2004. Under the leadership of Ms. Promotion Results of Microbial Fertilizer Unit: No. of people Sophie Chang (Su-feng Chang), the program persists in the objective of “long-termSponsorship commitment by the TSMCto chosen Foundation service in themes, 2012~2016” and Unit: ten thousands NT dollar 3,270 4,138 5,451 6,812 7,838 encourages our employees to participate in volunteer activities with joy and wisdom. Through volunteer activities, we hope to 1 TSMC10 Museum9 13of 6,338 7,353 6,410 6,841 7,581 3,275 lead the way for our employees toOthers strike a fulfilling balance between their work and life. Innovation The TSMC Volunteer Program coordinates9% many forms of volunteer services. Employees of the Company and our affiliated 1,029 1,747 Volunteer companies, as well asProgram their family members, are invited to participate in related activities under the Program. There have been Innovation often originates as a single idea; yet it has 40 six volunteer programs so far,12% and we make a long-term commitment for the land of Taiwan. the potential to unimaginably transform the lives of billions of people around the globe! Total 1st crop 2015 2nd crop 2015 1st crop 2016 2nd crop 2016 2012 2013 2014 2015 2016 44% Welcome to the TSMC Museum of Innovation. Here, NT$75.81m we explore how TSMC and its innovative business Accoumulation of each Volunteer Program model changed the global integrated circuit (IC) Unit: No. of people Volunteer Docent Fab/Division Volunteer industry and continue to unleash tidal waves of Knowledge Sharer 27% Partner of Doing Good 3,270 4,138 5,451 6,812 7,838 innovation in chip designed product applications. Education These innovations propel advances in ICs and their pervasiveness in our modern world while making lives Communities 8% 2012 2013 2014 2015 2016 more connected, more convenient, smarter and more Art Events fulfilling! Here we also learn how TSMC contributes to global IC innovation and to Taiwan’s economy.

Book Reading Ecology Volunteer Website: www.tsmcmoi.com Volunteer TSMC Volunteer Ecological Protector 2012 2013 2014 2015 2016 Tel: +886-3-5636968 Driving force of "Hope Reading" is the mover of Volunteer Docent Book reading Volunteer Energy saving Volunteer Community Volunteer corporate social Ecology Volunteer Holiday Volunteer Fab/Division Volunteer

responsibility. TSMC Volunteer Program Outcome

3,993 4,061 7,379 10,191 16,570 18,812 26,367 39,390 54,573 93,623

Energy Saving Community Volunteer Volunteer Pusher of Good friends of Elderly Environmental & Children Protection 2012 2013 2014 2015 2016

Volunteer person-time Service man-hour

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Volunteer Service Long-term Commitment to Chosen Service Themes

In 2016, TSMC’s Volunteer Program aimed for three Action for Environment Education film to remote elementary schools in Tainan (Guang Jung, set off from school, along the Roman road to the Mautu major themes for social participation: Emphasizing on Responding to "2016 Earth Day" Song Lin, Shu Lin, Yu Jin, and Nan Si Elementary School), Discover Forest, travelling a total of about eight kilometers. Environmental Protection, Caring for the Underprivileged A total of 235 Ecology Volunteers and employees’ families and arranged researchers, production team to exchange Teachers arranged activities including Solar Docent, caring Living, and Caring for the Underprivileged Education. of the Taichung Site joined hands with 23 children from opinions. They put the concepts of environmental awareness elderly, cleaning houses and knowing new good food. the Xi Wei Elementary School to plant 150 seedlings in the and friendly environment into the hearts of 1,010 students. TSMC’s volunteers raised 12 new cameras to children, Emphasizing on Environment Protection Taichung City Park, putting the seeds of guarding the land helping to open the children’s vision and re-understand Jinshan Elementary School Ecology Graduation Trip their growing home. Regularly Ecology Docent Service in the children’s heart. For four consecutive years, TSMC has cooperated with the TSMC Green Park Tour Guide Jinshan elementary school in the Hsinchu County to prepare "Eagles want to fly" Education Promotion TSMC is devoted to the protection of our environment. a “Jinshan passing love and grateful trip,” which is full with Ecology Volunteers of the Tainan site helped promote the We reserve land for ecological projects at every new fab. environmental sustainability concept for graduates. Children Currently, we have three major green parks: Hsinchu documentary film “Eagle wants to fly”. They brought the Fab12B, Taichung Fab15, and Tainan Fab14C. , serving as Ecological conservation bases for remote elementary schools. In 2016, a total of 24 elementary schools, 1,002 students from the education priority areas in Hsinchu, Words from Volunteers Taichung, and Tainan came to explore the TSMC Ecology Park. Being a volunteer for 11 years, my life has been a full of happiness and growth.

Tainan Jacana Ecology Park I still remember the first time when I walked into the Since 2012, TSMC has extended the scope of environmental pine forest elementary school to read stories for the protection to the Tainan Jacana Ecology Park. In addition to fifth grade children; the first time when I hosted my first inviting employees and their families as a tour guide on the tour to people I first met in the Taichung Museum of Science; the first time when I celebrated Father’s Day weekend, we also called for employees to go to the Jacana with elderly veterans after my father passed away; the ecology park together in the annual production season to first time when I closely observed water pheasant and pick up, buy, and sell water chestnut in the Tainan Site, and migratory birds ... to support daily operation in the Jacana ecology education I understand that it was a beautiful moment for every park, and make an effort for the local endangered jacana. volunteer attendance, so that happiness, love, respect According to the national jacana winter amount survey, the and a sense of accomplishment enrich my own life. number of jacana was at a record-high level of 1,152 in Book Reading, Community , and Ecology Volunteer from Guanti area on Dec. 4, 2016, compared with 549 in 2012, Tainan site Sui Mei Hsu Jacana Protection: Photo taken in Responding to the "2016 Earth Day": Ecology Chin Shan Elementary School showing that jacana conservation was successful. Tainan’s Jacana Ecology Park Volunteer of Taichung Site graduation trip with love

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Caring for the Underprivileged Education public service platform -- "Children's another eyes," a were designed to accompany 25 students at the Meihua campus photography deep plowing plan. TSMC is the elementary school in Jianshi town of the Hsinchu County, TSMC is the biggest beneficiary of education. Base on the nation’s first private enterprise to respond to this project. and 46 children in the Gao Shu Town of Pingtung County. Appreciation from value of taking from the society and using it to the society, Our volunteers in Taichung go up to the mountains once a Within 1,868 hours of playing with science and learning we selected the theme of education, putting long-team Children month to conduct photography courses for 57 children at to understand the physical and chemical principles, the and stable investment in human and resources to turn on the Jian Shi Xiang Shi Lei, and Yufeng elementary schools students simultaneously are trained to have independent Thank you for coming every Friday to teach a light for the disadvantaged students and give them more in the Hsinchu County.In 2016, through 688 hours of thinking and practical ability to experience the ubiquitous us Mathematic. In the beginning, I really don’t learning opportunities. practice in the classroom and outdoor, the students learnt science in the life. like math, but after your teaching, I love math gradually. Chinese & English Book Reading the basis of shooting, multimedia and power director photo The TSMC book reading volunteer program is made up of editing to make photography a child's fishing rod, taking Caring for the Underprivileged Living Hsinchu Hoshin Elementary School / Hui Min Pan employees and their families. In alliance with the Common aesthetics with them. TSMC takes the initiative to reflect the local needs and PD / Mathematic Volunteer Wealth Group, volunteers read books sponsored by the care for the disadvantaged life. Based on the first line of Science Experiment Hope Reading Program to students of elementary schools physical practice, TSMC volunteers carry out a common In the promotion of natural science, TSMC has led the poor and encourage them to make the most of the learning spirit of crossing a river in the same boat. rural children to carry out scientific experiments, and held a Uncles and aunties from TSMC: Thanks for your resources available. TSMC’s book reading volunteers scientific experience day. In 2016, a total of 23 experiments teaching and caring for the whole semester. provided service at eight rural elementary schools in Thank you very much! Hsinchu, Taichung, and Tainan in 2016.

Mathematics Counseling Hsinchu County Yuandong Elementary School / Shin En Legal / English Book Reading Volunteer Two hours a week, TSMC volunteers combined with employees engineering background and used the “Junyi Academy”, an online teaching platform, to counsel Ho- Xin elementary school students by one-on-one coaching system with online teaching short films and interactive exercises. They put 381 volunteer attendees into 58 after- school counseling classes in 2016. They accompanied 35 students to complete 762 hours of practice exercises to help the students regain their confidence of learning mathematics.

"Looking at the World with Eyes" Photography Course Since the beginning of March in 2014, TSMC started the English Book Reading Volunteer "Another Eye of Children" Photography Volunteer program in the school

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Repair Service Life Assistance Taiwan's operation bases are in Longtan, Hsinchu, TSMC hopes to provide the necessary assistance to Case Study Taichung and Tainan, and the implementation of caring for the disadvantaged groups, and play a common spirit of the minority is an important part of the practice of corporate crossing a river in the same boat. In 2016, employees citizenship. In 2016, a total of 5,886 TSMC employees initiated many life-assistance programs, including helping Air Quality Improvement Actions raised NT$ 10.1 million to help repair six family houses in elderly farmers in Hsinchu, launching a fishing rod plan Providing free microbial fertilizer to farmers to reduce straw burning Taoyuang, a gymnasium in the Yuentung junior high school to support Miaoli holy family to fight for rights for work There are two harvests a year in Taiwan. In order to sow as soon as possible, some farmers will burn straw after first of Hsinchu County, classroom in the Hsinshen elementary and learning, accompanying children from the Hsinchu harvest. school of Tainan City, internship factory of the National Benevolent House and St. Francis Jr. School to cultivate Taitung Specialized School, Little Sun School of Xiulin Town their ability to make a living, combining with department TSMC is committed to improving the air quality in central Taiwan. Since 2015, in order to reduce PM2.5 caused by straw burning, we have cooperated with farmers in the Taichung city to use microbial fertilizers (organic fertilizer containing in the HualienTSMC County, 2016 Hsinchu Corporate County Zhubei City Elderly outing to launch one-day brook, coastal and mountain Overview Stakeholder Engagement Corporate GovernanceBacillus subtilis)Economic to speed up Dimension straw decay, and increaseEnvironmental organic matter Dimension in paddy fields. Social Dimension Appendix Relief Center,Social and a farm Responsibility of the Taitung Catholic Repor tChurch cleanup activities, and incorporating with nine major The project began with the establishment of 40 hectare (ha) exemplary paddy fields at the Wuri district and free provision Hospital. The Taitung project was completed in March festivals to launch charity group purchasing. In 2016, we of the microbial fertilizer. Because of the good trial result, the project has been expanded to another 13 administrative 2017, while the other projects were completed in 2016. helped more than 137 institutions throughout 18 counties areas and 2,246 hectare (ha) paddy field. The implemented area, 3,275 hectare (ha) in total, is 50 times larger than the and cities in Taiwan. initial area. The PM10 is effectively reduced by 10.32 metric tons, PM2.5 reduced by 10.25 metric tons. The impact is significant to reduce air pollutants.

For enhancing efficacy, TSMC visits farmers during the harvest period, estimates required quantity of microbial fertilizer and evaluates farmers’ feedback. We look forward to enlarging continuously the implemented areas to reduce the local air pollutions. Accoumulation of TSMC Volunteer Head Count Promotion Results of Microbial Fertilizer Sponsorship by the TSMC Foundation in 2012~2016 Unit: No. of people Unit: ten thousands NT dollar 3,270 4,138 5,451 6,812 7,838 1 10 9 13 6,338 7,353 6,410 6,841 7,581 3,275 Others 9% 1,029 1,747 Volunteer Program Free fertilizer to farmers Applying microbial fertilizer 40 12%

Total 1st crop 2015 2nd crop 2015 1st crop 2016 2nd crop 2016 2012 2013 2014 2015 2016 44% Administrative regions (amount) NT$75.81m Accoumulation of each Volunteer Program Cumulative paddy field area (ha) Unit: No. of people 27% 3,270 4,138 5,451 6,812 7,838 Education Following up on results Note: After first harvest, some farmers use regrowth without resow , therefore microbial fertilizer usage is unecessary. "Hope & New Born" Assist 8% To improve lighting @ Zhubei 2012 2013St-Francis Xavier2014 home 2015of girls: 4 parts2016 of workCommunities action Caring Center Career Path finding Art Events

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2012 2013 2014 2015 2016 Volunteer Docent Book reading Volunteer Energy saving Volunteer Community Volunteer Ecology Volunteer Holiday Volunteer Fab/Division Volunteer

TSMC Volunteer Program Outcome

3,993 4,061 7,379 10,191 16,570 18,812 26,367 39,390 54,573 93,623

2012 2013 2014 2015 2016

Public Welfare Participation of TSMC Volunteers – Caring for the Underprivileged living Emphasizing on Environment Protection Four Seasons sonata of Love Caring for the Underprivileged education Volunteer Docent 12 months a year, 52 weeks, TSMC volunteers provide services every week. We can see the power of doing good from employees. 2016

Jan. Nov. Dec. Aug. Feb. Apr. Jun. Oct. Mar. May Jul. Sept.

300mm TB Group Purchase

with Love BTSD Repair Fab Thanks uncles & for Tainan Shin- 15 Group Fab 12A Group aunties for borrowing us Assisting to Sheng Elementary Purchase with Purchase with Love EasyCards, and we can Love Establish Holy School Fab 8 Education Family for Special happily go out to play A “Easy” Trip “Tramp Full with Taiwan Fund Volunteer Education 30” by train. Grocery Store for Children and Service Energy Families Photography Saving for Taiwan Fund for Children and Career Path Exploring Volunteer Nursing Home Families / Ke Ting Chiou Service for St-Francis Xavier Home for Girls

Being a volunteer is addicted. 300mm FD Repair for I remember the first time when I Small Sun Studio in carried my camera up to the mountain Xiulin, Hualien Ecology Volunteer of as a photography teacher; in the campus Hsinchu Fabs Fair with I saw twinkle eyes from the children of the Taiwan Fund for Children lower grades at the sight of the camera. and Families Fab I want such a happiness of doing good Ecological things to continue. Tour with 2&5 Group Primary School Purchase with Docent Group Purchase of Students from Love Volunteer Rural Regions Organic Vegetables Fab 2/5 volunteer Accompany Yung-Chih Peng from Rural Regions Book Reading Service with Love Volunteer Service The Dream of 200mm Graduation Trip from Children of TB Science Rural Regions Family Volunteer Activity with Taiwan Fund for Service Children and Ecology Volunteer of Public Welfare Activity Families Fab 12B Assisted Tainan Fabs by Fabs Farmers to Pick Fab 3 Oranges Donation of Chinese New MTC Group Year Dishes Purchase with Love Assistance by Hualien Volunteer Energy Human, Sharing Service Eagles Want Saving Ecology Volunteer of for Resources Community to Fly x Ecology Volunteer Volunteer Taichung Fabs Volunteer Service Dear TSMC Service teachers: Thank you very much to teach us “Deliver Love to English. I love English Aboriginal Tribes Q&R Group much more, and can express Purchase with Book Reading by Children Are Us”: Handmade Repairing myself more bravely. I really Love on TE Day Volunteer Service BTSD Repair Collection of Mother s Hsinchu Yuan- thank you. ’ PD Science Soap Dong Junior for Houses in Taoyuan Day Cakes Volunteer Service High School Hsinchu County Yuandong Halloween: A Elementary School TSMC Version Ke Chin Liu Legal English Fab TSMC Planting Book Reading Fab 6 “Love 14 Group Volunteer Bookcase Shopping Activity on Purchase with 2016 Earth Service Festival” “ Love Day”

Public Welfare Activity Participation Units Volunteer Docent Community Volunteer 300mm TB MTC Fab 8 Fab 15 Book Reading Volunteer Hualien/Taitung Volunteer 300mm FD Fab 2/5 Fab 12A Legal Ecology Volunteer PD Q&R Fab 3 Fab 12B HR Energy Saving Volunteer 200mm TB BTSD Fab 6 Fab 14

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