Since listing on the Taiwan Stock Exchange in 1994, TSMC has established a leading position in semiconductor manufacturing process technology and has delivered strong long-term returns for shareholders.

Since 2021, Federated Hermes Limited have engaged with TSMC on board composition, including director tenure, audit committee independence and board gender diversity. Although there was no specific cause for concern about the company’s audit processes or board effectiveness, the audit committee was chaired by a director who we did not consider independent, due their expectations regarding tenure limits, and board gender diversity was low.

Federated Hermes Limited believed that investors would benefit from assurance of fresh challenge on its audit committee and diversity of perspective on the board – both of which should improve the identification and mitigation of risks to the business. They saw this as particularly important at a time when the company had become increasing global and complex in nature, with substantial investments being made to expand its operations in the US.

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