Page 257 - TSMC 2022 Annual Report

g. Others
Manufacturing expenses Associates $ 6,011,522 $ 5,459,919
The sales prices and payment terms to related parties were not significantly different from those of sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements.
The Company leased factory and office from associates. The lease terms and prices were both determined in accordance with mutual agreements. The rental expenses were paid to associates monthly; the related expenses were both classified under manufacturing expenses.
h. Compensation of key management personnel
The compensation to directors and other key management personnel were as follows:
Years Ended December 31 2022 2021
Item Related Party Categories
Years Ended December 31
Short-term employee benefits Post-employment benefits Share-based payments
2022
$ 4,369,097 3,013 286,227
$ 4,658,337
$
2021
2,886,786 2,900 -
$ 2,889,686
The compensation to directors and other key management personnel were determined by the Compensation Committee (rename to Compensation and People Development Committee from February 14, 2023) of TSMC in accordance with the individual performance and market trends.
35. PLEDGEDASSETS
The Company provided certificate of deposits recorded in other financial assets as collateral mainly for building construction, building lease agreements and energy purchase agreements. As of December 31, 2022 and 2021, the aforementioned other financial assets amounted to NT$129,138 thousand and NT$210,235 thousand, respectively.
36. SIGNIFICANTCONTINGENTLIABILITIESANDUNRECOGNIZEDCOMMITMENTS
Significant contingent liabilities and unrecognized commitments of the Company as of the end of the reporting period, excluding those disclosed in other notes, were as follows:
a. Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C.
Government or its designee approved by TSMC can use up to 35% of TSMC’s capacity provided TSMC’s
outstanding commitments to its customers are not prejudiced. The term of this agreement is for five years beginning from January 1, 1987 and is automatically renewed for successive periods of five years unless otherwise terminated by either party with one year prior notice. As of the end of reporting period, the R.O.C. Government did not invoke such right.
b. Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in
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