TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY …

1 ASSETSUSDNTD%NTD%NTD%Amount%Amount%Curre nt Assets Cash and Cash Equivalents19,860$ 577,783$ ,392$ ,725$ ,391$ ,058$ Investments in Marketable Financial Instruments3,664106, , , , , Accounts Receivable3,705107, , , (14,536)( )(1,247)( ) Inventories2,92985, , , , , Other Current Assets1,77851, , , , , Total Current Assets31,936929, , 825, , , Assets Long-term Investments1,18234, , , (7,192)( )(10,142)( ) Property, Plant and Equipment36,2761,055, 1,062, ,037, (7,177)( )18, Intangible and Other Non-current Assets1,04130, , , (251)( )3, Total Non-current Assets38,4991,120, ,134, ,109, (14,620)( )11, Assets70,435$ 2,049,156$ ,991,862$ ,934,664$ 57,294$ ,492$ AND SHAREHOLDERS' EQUITYC urrent Liabilities Short-term Loans1,950$ 56,731$ ,767$ ,666$ (7,036)$ ( )2,065$ Accounts Payable99829, , , (1,027)( )4, Payables to Contractors and Equipment Suppliers1,64447, , , (7,896)( )(9,844)( ) Accrued Expenses and Other Current Liabilities5,475159, , , , , Current Portion of Bonds Payable and Bank Loans1,69749, , , (9,044)( )4, Total Current Liabilities11,764342, , , (16,472)( )20, Liabilities Bonds Payable2,86783, , , (8,400)( )(50,799)( ) Other Non-current Liabilities58116, , , (1,679)( )(5,658)( ) Total Non-current Liabilities3,448100, , , (10,079)( )(56,457)( ) Total Liabilities15,212442, , , (26,551)( )(35,803)( )

2 Equity Attributable to Shareholders of the Parent Capital Stock at Par Value8,913259, , , - - - - Capital Surplus1,93556, , , (5) - 23 - Legal Capital Reserve8,309241, , , - - 33, Unappropriated Earnings37,2241,082, , , , , Others(1,182)(34,401)( )(26,918)( )(19,710)( )(7,483) (14,691) Equity Attributable to Shareholders of the Parent55,1991,605, ,522, ,455, , , Interests24707 - 702 - (90)( ) Total Shareholders' Equity55,2231,606, ,522, ,456, , , Liabilities & Shareholders' Equity70,435$ 2,049,156$ ,991,862$ ,934,664$ ,294$ ,492$ :(1) Amounts in New TAIWAN dollars have been translated into dollars at the rate of NT$ as of March 31, SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIESC onsolidated Condensed Balance Sheets(Expressed in Millions of New TAIWAN Dollars ("NTD") and Dollars ("USD")) (1)March 31, 2018 (Unaudited)December 31, 2017 (Audited)March 31, 2017 (Unaudited)QoQYoYUSDNTD%NTD%NTD%NTD%NTD% Net Revenue8,459$ 248,079$ ,570$ ,914$ (29,491)$ ( )14,165$ of Revenue(4,201)(123,221)( )(138,822)( )(112,424)( )15,601( )(10,797) Gross Profit4,258124, , 121, (13,890)( )3, Expenses Research and Development Expenses(697)(20,429)( )(21,218)( )(19,413)( )789( )(1,016) Sales, General and Administrative Expenses(215)(6,300)( )(7,624)( )(6,744)( )1,324( )444( )Total Operating Expenses(912)(26,729)( )(28,842)( )(26,157)( )2,113( )(572)

3 Operating Income and Expenses(44)(1,302)( )(1,011)( )19 - (291)( )(1,321)(6, ) Income from Operations3,30296, , , (12,068)( )1, Income and Expenses Share of Profits of (267)( ) Net Interest Income (Expenses)802, , , , Other Gains and Losses389 - (89) - (426)( ) Total Non-operating Income and Expenses1063, , , Before Income Tax3,40899, , 97, (11,731)( )2, Tax Expenses(346)(10,156)( )(12,369)( )(10,201)( )2,213( )45( ) Net Income3,06289, , , (9,518)( )2, Comprehensive Losses (245)(7,187)( )(7,976)( )(21,352)( ) 14, Comprehensive Income2,817$ 82,601$ ,330$ ,269$ (8,729)$ ( )16,332$ Income (Losses) Attributable to: Shareholders of the Parent3,062$ 89,785$ ,286$ ,629$ (9,501)$ ( )2,156$ Noncontrolling Interests - 3 - 20 - (8) - (17)( )11NM3,062$ 89,788$ ,306$ ,621$ (9,518)$ ( )2,167$ per Share - $ $ $ $ ( )$ ( ) $ per ADR - Diluted (2) $ $ $ $ ( )$ ( ) $ Average Outstanding Shares - Diluted ('M)25,93025,93025,930 Note: (1) Amounts in New TAIWAN dollars have been translated into dollars at the weighted average rate of NT$ for the first quarter of 2018.

4 (2) 1 ADR equals 5 ordinary shares. TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIESC onsolidated Condensed Statements of Comprehensive Income (Unaudited)For the Three Months Ended March 31, 2018, December 31, 2017, March 31, 2017(Expressed in Millions of New TAIWAN Dollars ("NTD") and Dollars ("USD") (1)Except for Per Share Amounts and Shares Outstanding)1Q 20184Q 20171Q 2017 QoQYoY4Q 20171Q 2017 USDNTDNTDNTDCash Flows from Operating Activities: Income Before Income Tax3,408$ 99,944$ 111,675$ 97,822$ Depreciation & Amortization2,43871,49870,81460,172 Share of Profits of Associates(23)(682)(949)(667) Income Taxes Paid(13)(380)(269)(112) Changes in Working Capital & Others(329)(9,654)22,8553,793 Net Cash Generated by Operating Activities5,481160,726204,126161,008 Cash Flows from Investing Activities: Interest Received107$ 3,140$ 2,749$ 1,950$ Acquisitions of: Property, Plant and Equipment(2,450)(71,847)(61,180)(102,506 ) Marketable Financial Instruments(838)(24,566)(34,151)(26,371) Financial Assets Carried at Cost - - (123)(202) Proceeds from Disposal or Redemption of: Property, Plant and Equipment24773152 Marketable Financial Instruments70520,67228,99918,836 Others(31)(905)581(1,089) Net Cash Used In Investing Activities(2,505)(73,459)(63,052)(109,23 0)Cash Flows from Financing Activities.

5 Increase (Decrease) in Short-term Loans(197)$ (5,775)$ 10,684$ (250)$ Repayment of Bonds and Interest Prepaid(1,159)(33,999) - - Repayment of Bonds(573)(16,800) - (10,000) Repayment of Long-term Bank Loans - - (24)(3) Interest Paid(34)(998)(576)(1,257) Others(2)(55)(439)(400) Net Cash Generated by (Used in) Financing Activities(1,965)(57,627)9,645(11,910)Ef fect of Exchange Rate Changes on Cash and Cash Equivalents(179)$ (5,249)$ (5,404)$ (16,397)$ Net Increase in Cash and Cash Equivalents83224,391145,31523,471 Cash and Cash Equivalents at Beginning of Period18,870553,392408,077541,254 Cash and Cash Equivalents at End of Period19,702$ 577,783$ 553,392$ 564,725$ Note: (1) Amounts in New TAIWAN dollars have been translated into dollars at the weighted average rate of NT$ for the three months ended March 31, 2018.

6 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIESC onsolidated Condensed Cash Flow Statements (Unaudited)For the Three Months Ended March 31, 2018, December 31, 2017 and March 31, 2017(Expressed in Millions of New TAIWAN Dollars ("NTD") and Dollars ("USD")) (1)1Q 2018