Form 4: TSMC Executive Reports Stock Transactions

Shien-Yang Wu, SVP at TSMC, reported transactions involving common shares and American Depositary Shares.

Summary

• Shien-Yang Wu, Senior Vice President (SVP) at Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), has reported transactions related to company stock.
• On May 8, 2026, 630,228 common shares were acquired at a price of $71.82 per share, purchased by the administrator of the Employee Stock Purchase Plan (ESPP) on behalf of the filer.
• Following this transaction, 6,637 common shares are beneficially owned indirectly through the ESPP Trust.
• Additionally, 10,581 common shares are held indirectly by a trust funded by the Long-Term Incentive (LTI) Bonus Plan.
• Another 198,943 common shares are held indirectly by the filer's spouse.
• The filing also notes indirect beneficial ownership of 90 American Depositary Shares (ADS) by the spouse, with each ADS representing five common shares.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it reports routine insider stock transactions rather than significant financial performance or strategic shifts.

Positives

• The reporting person, Shien-Yang Wu, an SVP at TSMC, has acquired a significant number of common shares (630,228) through the company's ESPP, indicating continued participation in employee stock programs.
• The acquisition price of $71.82 per share suggests a favorable purchase opportunity for the executive.
• The filing details a structured approach to beneficial ownership, including shares held through ESPP, LTI trusts, and by a spouse, demonstrating transparency.

Negatives

• The filing does not contain any negative financial results or operational setbacks.

Risks

• While not explicitly stated as a risk in this filing, the indirect beneficial ownership through trusts and by a spouse could introduce complexities in tracking ultimate beneficial ownership in certain scenarios.
• The reliance on ESPP and LTI plans for stock acquisition, while common, ties executive compensation and ownership directly to company performance and stock price.

Future Outlook

This filing is a report of past transactions and does not contain forward-looking statements or guidance regarding future company performance.

Industry Context

StockSavvy.ai notes that insider transactions, such as those reported by Shien-Yang Wu of TSMC, are common in the semiconductor industry. Executives often utilize ESPP and LTI programs to align their interests with shareholders, and the acquisition of shares through these programs can be viewed positively by the market.

Comparison to Industry Standards

• TSMC's use of ESPP and LTI plans for its executives is consistent with standard practices among large-cap technology and semiconductor companies globally.
• Companies like Intel, Samsung, and GlobalFoundries also offer similar stock-based compensation and purchase programs to their senior management.
• The reported transaction volume and price are typical for a senior executive at a company of TSMC's scale and market capitalization.

Related Party Transactions

• The acquisition of common shares by the ESPP administrator on behalf of the filer is a transaction facilitated by the issuer's plan.
• Shares held indirectly by the filer's spouse represent a related party holding.

Stakeholder Impact

• Shareholders: The acquisition of shares by an executive through an ESPP can be seen as a positive signal of confidence in the company's future, though the direct impact on share price from this specific transaction is likely minimal.
• Employees: The existence and utilization of the ESPP by senior management reinforces the company's commitment to employee stock ownership programs.
• Management: Demonstrates continued investment in the company's stock by a key executive.

Next Steps

• Continued monitoring of insider transactions for any significant changes in beneficial ownership or potential trading patterns.

Key Dates

Keywords

TSMC, Form 4, Stock Transaction, Beneficial Ownership, Employee Stock Purchase Plan, Long-Term Incentive Plan, American Depositary Shares, Insider Trading, Semiconductor, Taiwan Semiconductor Manufacturing Co.