Form 4: TSMC Executive Reports Share Transactions

Mii Yuh-Jier, EVP and Co-COO of Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), reported transactions involving common shares and equity-linked notes.

Summary

• Mii Yuh-Jier, Executive Vice President and Co-Chief Operating Officer of Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), has filed a Form 4 detailing changes in beneficial ownership.
• The filing includes the acquisition of 88 common shares through the Employee Stock Purchase Plan (ESPP) on April 9, 2026, at a price of $57.87 per share.
• Additionally, the filing notes beneficial ownership of 1,254,057 common shares directly held, 7,812 common shares indirectly held by the ESPP Trust, and 63,345 common shares indirectly held by the LTI Trust.
• The report also discloses holdings in two separate tranches of Equity Linked Notes issued by UBS AG, referencing a basket of equity securities including TSM's American Depositary Shares (ADS).
• The first tranche of notes, with a principal amount of $150,000, expires on September 21, 2026, and could result in the delivery of up to 636 ADSs under certain conditions.
• The second tranche of notes, also with a principal amount of $150,000, expires on March 4, 2027, and could result in the delivery of up to 703 ADSs under specific conditions.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this filing as neutral, as it primarily details routine insider transactions and holdings rather than significant strategic shifts or performance indicators.

Positives

• The reporting person continues to hold a significant number of common shares directly and indirectly through various company plans (ESPP and LTI Trust).
• Acquisition of shares through the ESPP indicates continued participation in employee ownership programs.
• The Equity Linked Notes, while complex, represent a form of structured investment linked to the company's performance.

Negatives

• The nature of Equity Linked Notes introduces potential settlement risks, where the reporting person might receive ADSs at a predetermined strike price if the underlying basket performs poorly.
• The filing does not provide details on the overall performance of the equity baskets referenced by the notes, making it difficult to assess the likelihood of ADS delivery versus cash redemption.

Risks

• The Equity Linked Notes carry a risk of settlement by delivery of American Depositary Shares at a strike price if the worst-performing basket component is below its strike price on the exercisable date.
• For the first tranche of notes, if TSM's ADSs are the worst-performing component, settlement could result in the delivery of up to 636 ADSs at a strike price of $235.697 per ADS.
• For the second tranche of notes, if TSM's ADSs are the worst-performing component, settlement could result in the delivery of up to 703 ADSs at a strike price of $213.2515 per ADS.
• The notes may be redeemed for cash under certain conditions, which could alter the final outcome for the reporting person.

Future Outlook

The filing primarily reports past transactions and current holdings. The future outlook is indirectly influenced by the terms of the Equity Linked Notes, which have specific expiration dates and potential settlement outcomes based on market performance.

Industry Context

StockSavvy.ai notes that Form 4 filings are standard disclosures for insider transactions in publicly traded companies. The details provided by Mii Yuh-Jier reflect typical executive participation in company stock plans and structured note investments, common within the semiconductor industry where long-term incentives and diversified investment strategies are prevalent.

Related Party Transactions

• The acquisition of 88 common shares by the reporting person through the issuer's Employee Stock Purchase Plan (ESPP) on April 9, 2026, is a transaction involving the issuer and a reporting person.
• The indirect beneficial ownership of 7,812 common shares by the ESPP Trust and 63,345 common shares by the LTI Trust are related to company incentive plans.

Stakeholder Impact

• Shareholders: The filing provides transparency into executive share ownership and transactions, which is a standard aspect of corporate governance.
• Employees: The continued operation of the ESPP and LTI Bonus Plan, as evidenced by the reporting person's participation, suggests ongoing employee incentive programs.
• Creditors: No direct impact on creditors is indicated by this filing.

Next Steps

• Monitoring the performance of the Equity Linked Notes leading up to their respective expiration dates.
• Observing any future transactions reported by Mii Yuh-Jier or other TSM executives.

Key Dates

Keywords

TSM, Taiwan Semiconductor Manufacturing Co., Form 4, Insider Trading, Shareholder, Beneficial Ownership, Employee Stock Purchase Plan, ESPP, Long-Term Incentive Plan, LTI Trust, Equity Linked Notes, Mii Yuh-Jier, ADS