[TSMC] Announcement of Board Resolution to Handle Capital Reduction Due to Buyback and Cancellation of Restricted Employee Shares

1. Date of Board Resolution: 115/05/12 2. Reason for Capital Reduction: Buyback and cancellation of restricted employee shares. 3. Amount of Capital Reduction: NT$1,544,540 4. Number of Shares Eliminated: 154,454 shares 5. Capital Reduction Ratio: 0.0006% 6. Capital after Reduction: NT$259,323,700,670 7. Scheduled Date of Shareholders' Meeting: Not applicable 8. Expected Number of Listed Common Shares after Capital Reduction and New Share Listing: Not applicable 9. Expected Ratio of Listed Common Shares after Capital Reduction and New Share Listing to Total Issued Common Shares (Listed Common Shares after Reduction / Total Issued Common Shares after Reduction): Not applicable 10. For cases where the expected number of listed common shares after capital reduction and new share listing is less than 60 million shares and less than 25% of the total, please explain the countermeasures for low share liquidity: Not applicable 11. Record Date for Capital Reduction: 115/05/12 12. Other Matters to be Specified: None