REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Republic of China | ||
(Translation of Registrant’s Name Into English) |
(Jurisdiction of Incorporation or Organization) |
Title of Each Class |
Trading Symbol(s) |
Name of Each Exchange on Which Registered | ||
The |
Accelerated Filer ☐ |
Non-Accelerated Filer ☐ |
Emerging Growth Company |
U.S. GAAP ☐ |
by the International Accounting Standards Board ☑ |
Other ☐ |
* |
Not for trading, but only in connection with the listing on the New York Stock Exchange, Inc. of American Depositary Shares (“ADS”) representing such Common Shares |
EX-2a.1 DESCRIPTION OF SECURITIES REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT |
EX-4.47 LAND LEASE WITH SOUTHERN TAIWAN SCIENCE PARK ADMINISTRATION RELATING TO FAB14 & FAB18 LOCATED IN SOUTHERN TAIWAN SCIENCE PARK (EFFECTIVE JANUARY 1, 2022 TO DECEMBER 31, 2041) (ENGLISH SUMMARY) |
EX-4.48 LAND LEASE WITH CENTRAL SCIENCE PARK ADMINISTRATION RELATING TO TCZWM LOCATED IN TAICHUNG SCIENCE PARK (EFFECTIVE JUNE 21, 2021 TO JUNE 20, 2041) (ENGLISH SUMMARY) |
EX-4.49 LAND LEASE WITH SOUTHERN TAIWAN SCIENCE PARK ADMINISTRATION RELATING TO THE FABS (F18 BRIDGE) LOCATED IN SOUTHERN TAIWAN SCIENCE PARK (EFFECTIVE JANUARY 1, 2022 TO DECEMBER 31, 2041) (ENGLISH SUMMARY) |
EX-4.50 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD. EMPLOYEE RESTRICTED STOCK AWARDS RULES FOR YEAR 2021 |
EX-4.51 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD. EMPLOYEE RESTRICTED STOCK AWARDS RULES FOR YEAR 2022 (AS APPROVED BY THE BOARD OF DIRECTORS ON APRIL 12, 2022, AND SUBJECT TO SHAREHOLDER APPROVAL AND APPROVAL BY THE R.O.C. FINANCIAL SUPERVISORY COMMISSION) |
EX-8.1 SUBSIDIARIES OF TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD. |
EX-12.1 CERTIFICATION OF CEO - RULE 13A-14(A) |
EX-12.2 CERTIFICATION OF CFO - RULE 13A-14(A) |
EX-13.1 CERTIFICATION OF CEO - RULE 13A-14(B) |
EX-13.2 CERTIFICATION OF CFO - RULE 13A-14(B) EX-17 ISSUERS OF GUARANTEED SECURITIES |
EX-101.INS iXBRL INSTANCE DOCUMENT (EMBEDDED WITHIN THE INLINE XBRL DOCUMENT) |
EX-101.SCH iXBRL TAXONOMY EXTENSION SCHEMA DOCUMENT |
EX-101.CAL iXBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT |
EX-101.DEF iXBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT |
EX-101.LAB iXBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT |
EX-101.PRE iXBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT |
EX-104 COVER PAGE INTERACTIVE DATA FILE (EMBEDDED WITHIN THE INLINE XBRL DOCUMENT) |
• | general local and global economic conditions; |
• | the political stability of our local region; |
• | outlook of the major and emerging end markets for our products, such as smartphones, high performance computing, internet of things (“IoT”), automotive and digital consumer electronics; |
• | the volatility of the semiconductor and electronics industry; |
• | our ability to develop new technologies successfully and remain a technological leader; |
• | the increased competition from other companies and our ability to retain and increase our market share; |
• | overcapacity in the semiconductor industry; |
• | our reliance on certain major customers; |
• | the reliability of our information technology systems and resilience to any cyberattacks; |
• | our ability to maintain control over expansion and facility modifications; |
• | our ability to generate growth and profitability; |
• | our ability to hire and retain qualified personnel; |
• | our ability to acquire required equipment and supplies necessary to meet business needs; |
• | our ability to protect our technologies, intellectual property rights and third-party licenses; |
• | disruptive events, such as earthquakes or droughts; |
• | the COVID-19 pandemic; |
• | power and other utility shortages; |
• | construction issues as we expand our capacity; and |
• | fluctuations in foreign currency rates, in particular, any material appreciation of the NT dollar against the U.S. dollar, and our ability to manage such risks. |
ITEM 1. |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS |
ITEM 2. |
OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. |
KEY INFORMATION |
• | significant penalties and legal liabilities, such as the denial of import or export permits or third party private lawsuits, criminal or administrative proceedings; |
• | the temporary or permanent suspension of production of the affected products; |
• | the temporary or permanent inability to procure or use certain production critical chemicals or materials; |
• | unfavorable alterations in our manufacturing, fabrication and assembly and test processes; |
• | challenges from our customers that place us at a significant competitive disadvantage, such as loss of actual or potential sales contracts in case we are unable to satisfy the applicable legal standard or customer requirement; |
• | restrictions on our operations or sales; |
• | loss of tax benefits, including termination of current tax incentives, disqualification of tax credit application and repayment of the tax benefits that we are not entitled to; and |
• | damages to our goodwill and reputation. |
ITEM 4. |
INFORMATION ON THE COMPANY |
Fab (1) |
Year of commencement of commercial production |
Wafer size |
The most advanced technology for volume production (2) | |||
2 |
1990 | 6-inch |
450 | |||
3 |
1995 | 8-inch |
150 | |||
5 |
1997 | 8-inch |
150 | |||
6 |
2000 | 8-inch |
110 | |||
8 |
1998 | 8-inch |
110 |
Fab (1) |
Year of commencement of commercial production |
Wafer size |
The most advanced technology for volume production (2) | |||
10 |
2004 | 8-inch |
150 | |||
11 |
1998 | 8-inch |
150 | |||
12 |
2001 | 12-inch |
5 | |||
14 |
2004 | 12-inch |
16 | |||
15 |
2012 | 12-inch |
7 | |||
16 |
2018 | 12-inch |
16 | |||
18 |
2020 | 12-inch |
5 |
(1) |
Fabs 2, 3, 5, 8 and Fab 12 are located in Hsinchu Science Park. Fab 6, Fab 14, and Fab 18 are located in the Southern Taiwan Science Park. Fab 15 is located in Central Taiwan Science Park. Fab 11 is located in the Washington State, United States. Fab 10 is located in Shanghai, China and Fab 16 is located in Nanjing, China. |
(2) |
In nanometers, as of 2021 year-end. |
• | installing and expanding capacity, mainly for 5-nanometer and 3-nanometer nodes, including building/facility expansion for Fab 21 and Fab 18; |
• | expanding capacity for specialty technologies and advanced packaging, including building/facility expansion for the Kumamoto fab in Japan; and |
• | investing in research and development projects for new process technologies. |
Year ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Geography |
Net Revenue |
Percentage |
Net Revenue |
Percentage |
Net Revenue |
Percentage |
||||||||||||||||||
(NT$ in millions, except percentages) |
||||||||||||||||||||||||
North America |
640,335 | 60% | 827,511 | 62% | 1,035,982 | 65% | ||||||||||||||||||
Asia Pacific (1) |
96,512 | 9% | 144,448 | 11% | 225,950 | 14% | ||||||||||||||||||
China |
208,101 | 20% | 233,783 | 17% | 164,552 | 10% | ||||||||||||||||||
EMEA (2) |
67,568 | 6% | 70,214 | 5% | 89,010 | 6% | ||||||||||||||||||
Japan |
57,469 | 5% | 63,299 | 5% | 71,921 | 5% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
1,069,985 | 100% | 1,339,255 | 100% | 1,587,415 | 100% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
China and Japan are excluded from Asia Pacific. |
(2) |
EMEA stands for Europe, Middle East, and Africa. |
Year ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Platform |
Net Revenue |
Percentage |
Net Revenue |
Percentage |
Net Revenue |
Percentage |
||||||||||||||||||
(NT$ in millions, except percentages) |
||||||||||||||||||||||||
Smartphone |
523,613 | 49% | 645,304 | 48% | 695,091 | 44% | ||||||||||||||||||
High Performance Computing |
315,822 | 30% | 439,810 | 33% | 587,780 | 37% | ||||||||||||||||||
Internet of Things |
86,343 | 8% | 110,355 | 8% | 133,006 | 8% | ||||||||||||||||||
Automotive |
47,914 | 4% | 44,367 | 3% | 67,077 | 4% | ||||||||||||||||||
Digital Consumer Electronics |
53,733 | 5% | 54,556 | 4% | 55,577 | 4% | ||||||||||||||||||
Others |
42,560 | 4% | 44,863 | 4% | 48,884 | 3% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
1,069,985 | 100% | 1,339,255 | 100% | 1,587,415 | 100% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
• | customer-oriented culture through multi-level interaction with customers; |
• | ability to deliver products of consistent quality, competitive ramp-up speed and fast yield improvement; |
• | responsiveness to customers’ issues and requirements, such as engineering change and special wafer handling requests; |
• | flexibility in manufacturing processes, supported by our competitive technical capability and production planning; |
• | dedication to help reduce customer costs through collaboration and services, such as our multi-project wafer program, which combines multiple designs on a single mask set for cost-saving; and |
• | availability of our online service which provides necessary information in design, engineering and logistics to ensure seamless services to our customers throughout the product life cycle. |
ITEM 4A. |
UNRESOLVED STAFF COMMENTS |
ITEM 5. |
OPERATING AND FINANCIAL REVIEWS AND PROSPECTS |
• | worldwide demand and capacity supply for semiconductor products; |
• | pricing; |
• | production capacity; |
• | technology development; and |
• | fluctuation in foreign currency exchange rates. |
Year ended December 31, | ||||||
2019 |
2020 |
2021 | ||||
Resolution |
Percentage of total wafer revenue (1) |
Percentage of total wafer revenue (1) |
Percentage of total wafer revenue (1) | |||
5-nanometer |
— | 8% | 19% | |||
7-nanometer |
27% | 33% | 31% | |||
10-nanometer |
3% | — | — | |||
16-nanometer |
20% | 17% | 14% | |||
20-nanometer |
1% | 1% | — | |||
28-nanometer |
16% | 13% | 11% | |||
40/45-nanometer |
10% | 9% | 7% | |||
65-nanometer |
8% | 5% | 5% | |||
90-nanometer |
3% | 2% | 2% | |||
0.11/0.13 micron |
2% | 3% | 3% | |||
0.15/0.18 micron |
8% | 7% | 6% | |||
≥0.25 micron |
2% | 2% | 2% | |||
Total |
100% | 100% | 100% |
(1) |
The figure represents wafer revenue from a certain technology as a percentage of the total wafer revenue. |
• | significant underperformance relative to historical or projected future operating results; |
• | significant changes in the manner of our use of the acquired assets or our overall business strategy; and |
• | significant unfavorable industry or economic trends. |
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Net revenue |
100.0% | 100.0% | 100.0% | |||||||||
Cost of revenue |
(54.0)% | (46.9)% | (48.4)% | |||||||||
Gross profit |
46.0% | 53.1% | 51.6% | |||||||||
Operating expenses |
||||||||||||
Research and development |
(8.6)% | (8.2)% | (7.9)% | |||||||||
General and administrative |
(2.0)% | (2.1)% | (2.3)% |
For the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Marketing |
(0.6 | )% | (0.5 | )% | (0.5 | )% | ||||||
Total operating expenses |
(11.2 | )% | (10.8 | )% | (10.7 | )% | ||||||
Other operating income and expenses, net |
0.0 | % | 0.0 | % | 0.0 | % | ||||||
Income from operations |
34.8 | % | 42.3 | % | 40.9 | % | ||||||
Income before income tax |
36.4 | % | 43.7 | % | 41.8 | % | ||||||
Income tax expense |
(3.3 | )% | (5.5 | )% | (4.5 | )% | ||||||
Net income |
33.1 | % | 38.2 | % | 37.3 | % | ||||||
Other comprehensive loss for the year, net of income tax |
(1.1 | )% | (2.3 | )% | (0.4 | )% | ||||||
Total comprehensive income for the year |
32.0 | % | 35.9 | % | 36.9 | % | ||||||
Net income attributable to shareholders of the parent |
33.1 | % | 38.1 | % | 37.3 | % | ||||||
Net income attributable to non-controlling interests |
0.0 | % | 0.1 | % | 0.0 | % |
For the year ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
% Change in NT$ from 2019 |
2021 |
% Change in NT$ from 2020 |
||||||||||||||||||||
NT$ |
NT$ |
NT$ |
US$ |
|||||||||||||||||||||
(in millions, except for percentages and wafer shipment) |
||||||||||||||||||||||||
Net revenue |
1,069,985 | 1,339,255 | 25.2 | % | 1,587,415 | 57,225 | 18.5 | % | ||||||||||||||||
Cost of revenue |
(577,283 | ) | (628,125 | ) | 8.8 | % | (767,878 | ) | (27,681 | ) | 22.2 | % | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross profit |
492,702 | 711,130 | 44.3 | % | 819,537 | 29,544 | 15.2 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross margin percentage |
46.0 | % | 53.1 | % | — | 51.6 | % | 51.6 | % | — | ||||||||||||||
Wafer (12-inch equivalent) shipment(1) |
10,068 | 12,398 | — | 14,179 | 14,179 | — |
(1) |
In thousands. |
For the year ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
% Change in NT$ from 2019 |
2021 |
% Change in NT$ from 2020 |
||||||||||||||||||||
NT$ |
NT$ |
NT$ |
US$ |
|||||||||||||||||||||
(in millions, except percentages) |
||||||||||||||||||||||||
Research and development |
91,419 | 109,486 | 19.8% | 124,735 | 4,497 | 13.9% | ||||||||||||||||||
General and administrative |
21,737 | 28,457 | 30.9% | 36,929 | 1,331 | 29.8% | ||||||||||||||||||
Marketing |
6,349 | 7,113 | 12.0% | 7,559 | 272 | 6.3% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total operating expenses |
119,505 | 145,056 | 21.4% | 169,223 | 6,100 | 16.7% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Percentage of net revenue |
11.2% | 10.8% | — | 10.7% | 10.7% | — | ||||||||||||||||||
Other operating income and expenses, net |
(496 | ) | 710 | — | (333 | ) | (13 | ) | (146.9 | )% | ||||||||||||||
Income from operations |
372,701 | 566,784 | 52.1% | 649,981 | 23,431 | 14.7% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating Margin |
34.8% | 42.3% | — | 40.9% | 40.9% | — |
For the year ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
% Change in NT$ from 2019 |
2021 |
% Change in NT$ from 2020 |
||||||||||||||||||||
NT$ |
NT$ |
NT$ |
US$ |
|||||||||||||||||||||
(in millions, except percentages) |
||||||||||||||||||||||||
Share of profits of associates |
2,861 | 3,562 | 24.5 | % | 5,513 | 199 | 54.8 | % | ||||||||||||||||
Interest income |
16,190 | 9,018 | (44.3 | )% | 5,708 | 206 | (36.7 | )% | ||||||||||||||||
Other income |
417 | 661 | 58.5 | % | 973 | 35 | 47.2 | % | ||||||||||||||||
Foreign exchange gain (loss), net |
2,095 | (3,303 | ) | (257.7 | )% | 13,663 | 492 | — | ||||||||||||||||
Finance costs |
(3,251 | ) | (2,082 | ) | (36.0 | )% | (5,414 | ) | (195 | ) | 160.0 | % | ||||||||||||
Other gains and losses, net |
(1,151 | ) | 10,106 | — | (7,388 | ) | (266 | ) | (173.1 | )% | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net non-operating income |
17,161 | 17,962 | 4.7 | % | 13,055 | 471 | (27.3 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
For the year ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
% Change in NT$ from 2019 |
2021 |
% Change in NT$ from 2020 |
||||||||||||||||||||
NT$ |
NT$ |
NT$ |
US$ |
|||||||||||||||||||||
(in millions, except percentages) |
||||||||||||||||||||||||
Income tax expense |
(35,835 | ) | (73,738 | ) | 105.8 | % | (70,155 | ) | (2,529 | ) | (4.9 | )% | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income |
354,027 | 511,008 | 44.3 | % | 592,881 | 21,373 | 16.0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income attributable to shareholders of the parent |
353,948 | 510,744 | 44.3 | % | 592,359 | 21,354 | 16.0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net margin attributable to shareholders of the parent |
33.1% | 38.1% | — | 37.3% | 37.3% | — |
For the year ended December 31, |
||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||
NT$ |
NT$ |
NT$ |
US$ |
|||||||||||||
(in millions) |
||||||||||||||||
Net cash generated by operating activities |
615,139 | 822,667 | 1,112,161 | 40,092 | ||||||||||||
Net cash used in investing activities |
(458,802 | ) | (505,782 | ) | (836,366 | ) | (30,150 | ) | ||||||||
Net cash generated by (used in) financing activities |
(269,639 | ) | (88,615 | ) | 136,608 | 4,925 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents |
(9,114 | ) | (23,498 | ) | (7,584 | ) | (274 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents |
(122,416 | ) | 204,772 | 404,819 | 14,593 |
• | installing and expanding capacity, mainly for 5-nanometer and 3-nanometer nodes; |
• | expanding capacity for advanced packaging and specialty technologies; |
• | expanding buildings/facilities for Fab 18 and a 300mm wafer fab in Arizona, U.S.; and |
• | investing in research and development projects for new process technologies. |
Long-term debt |
||||
(in NT$ millions) |
||||
During 2022 |
13,764 | |||
During 2023 |
28,020 | |||
During 2024 |
16,999 | |||
During 2025 |
61,756 | |||
During 2026 and thereafter |
637,361 |
Payments Due by Period |
||||||||||||||||||||
Contractual Obligations |
Total |
Less than 1 Year |
1-3 Years |
3-5 Years |
More than 5 Years |
|||||||||||||||
(in NT$ millions) |
||||||||||||||||||||
Short-Term Loans (1) |
114,767 | 114,767 | — | — | — | |||||||||||||||
Long-Term Debt (2) |
757,900 | 13,764 | 45,019 | 192,612 | 506,505 | |||||||||||||||
Capital Leases (3) |
24,302 | 2,372 | 3,896 | 3,385 | 14,649 | |||||||||||||||
Other Obligations (4) |
185,994 | 30,613 | 155,381 | — | — | |||||||||||||||
Capital Purchase or Other Purchase Obligations (5) |
1,280,304 | 1,185,814 | 94,490 | — | — | |||||||||||||||
Total Contractual Cash Obligations |
2,363,267 | 1,347,330 | 298,786 | 195,997 | 521,154 |
(1) |
The maximum amount and average amount of short-term loans outstanding during the year ended December 31, 2021 were NT$154,439 million and NT$121,036 million, respectively. See note 18 to our consolidated financial statements for further information regarding interest rates and future repayment dates. |
(2) |
Represents corporate bonds payable and long-term bank loans. See note 19 and note 20 to our consolidated financial statements for further information regarding interest rates and future repayment of long-term debts. |
(3) |
Capital lease obligations are described in note 6, note 16, note 31 and note 33 to our consolidated financial statements. |
(4) |
Represents advance temporary receipts from customer. See “Item 4. Information on The Company — Commitments by Customers” and note 23 to our consolidated financial statements for further information. |
(5) |
Represents commitments for construction or purchase of equipment, raw material and other property or services. These commitments were not recorded on our statement of financial position as of December 31, 2021, as we had not received related goods or taken title of the property. |
For the year ended December 31, 2021 |
||||||||
NT$ |
US$ |
|||||||
(in millions) |
||||||||
Net sales – external |
533,649 | 19,237 | ||||||
Net sales – to subsidiaries outside of the Obligor Group |
1,041,097 | 37,531 | ||||||
Total net sales |
1,574,746 | 56,768 | ||||||
Gross profit |
788,629 | 28,429 | ||||||
Income from continuing operations |
625,383 | 22,544 | ||||||
Net income |
592,359 | 21,354 | ||||||
Net income attributable to Obligor Group |
592,359 | 21,354 |
As of December 31, 2021 |
||||||||
NT$ |
US$ |
|||||||
(in millions) |
||||||||
Assets |
||||||||
Current assets – external |
753,642 | 27,168 | ||||||
Current assets – due from subsidiaries outside of the Obligor Group |
143,110 | 5,159 | ||||||
Total current assets |
896,752 | 32,327 | ||||||
Non-current assets—external |
2,047,339 | 73,804 | ||||||
Non-current assets – due from subsidiaries outside of the Obligor Group |
564,084 | 20,335 | ||||||
Total non-current assets |
2,611,423 | 94,139 | ||||||
Total assets |
3,508,175 | 126,466 | ||||||
Liabilities |
||||||||
Current liabilities – external |
701,370 | 25,284 | ||||||
Current liabilities – due from subsidiaries outside the Obligor Group |
28,782 | 1,038 | ||||||
Total current liabilities |
730,152 | 26,322 | ||||||
Non-current liabilities – external |
501,401 | 18,075 | ||||||
Non-current liabilities – due from subsidiaries outside of the Obligor Group |
127,362 | 4,591 | ||||||
Total non-current liabilities |
628,763 | 22,666 | ||||||
Total liabilities |
1,358,915 | 48,988 |
ITEM 6. |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
Name |
Position with our company |
Term Expires |
Years with our company |
|||||||
Mark Liu |
Chairman |
2024 | 29 | |||||||
C.C. Wei |
Vice Chairman/ Chief Executive Officer |
2024/ — | 24 | |||||||
Ming-Hsin Kung |
Director (Representative of the National Development Fund) |
2024 | 2 | |||||||
F.C. Tseng |
Director |
2024 | 35 | |||||||
Sir Peter L. Bonfield |
Independent Director |
2024 | 20 | |||||||
Kok-Choo Chen |
Independent Director |
2024 | 11 | |||||||
Michael R. Splinter |
Independent Director |
2024 | 7 | |||||||
Moshe N. Gavrielov |
Independent Director |
2024 | 3 | |||||||
Yancey Hai |
Independent Director |
2024 | 2 | |||||||
L. Rafael Reif (1) |
Independent Director |
2024 | 1 | |||||||
Lora Ho |
Senior Vice President, Europe & Asia Sales and Human Resources |
— | 23 | |||||||
Wei-Jen Lo |
Senior Vice President, Research & Development |
— | 18 | |||||||
Rick Cassidy |
Senior Vice President, Corporate Strategy Office/ CEO & President, TSMC Arizona | — | 25 | |||||||
Y.P. Chin |
Senior Vice President, Operations |
— | 35 | |||||||
Y.J. Mii |
Senior Vice President, Research & Development |
— | 28 | |||||||
J.K. Lin |
Senior Vice President, Information Technology and Materials Management & Risk Management | — | 35 | |||||||
J.K. Wang |
Senior Vice President, Corporate Planning Organization | — | 35 | |||||||
Cliff Hou |
Senior Vice President, Europe & Asia Sales and Research & Development/ Corporate Research | — | 25 | |||||||
Kevin Zhang |
Senior Vice President, Business Development | — | 6 | |||||||
Sylvia Fang |
Vice President, Legal and General Counsel/ Corporate Governance Officer |
— | 27 |
Name |
Position with our company |
Term Expires |
Years with our company |
|||||||
Connie Ma |
Vice President, Human Resources | — | 8 | |||||||
Y.L. Wang |
Vice President, Operations/ Fab Operations I | — | 30 | |||||||
Doug Yu |
Vice President, Pathfinding for System Integration & TSMC Distinguished Fellow | — | 28 | |||||||
T.S. Chang |
Vice President, Operations/ Advanced Technology and Mask Engineering & TSMC Fellow | — | 27 | |||||||
Michael Wu |
Vice President, Research & Development/ Platform Development | — | 26 | |||||||
Min Cao |
Vice President, Research & Development/ Pathfinding | — | 20 | |||||||
Marvin Liao |
Vice President, Operations/ Advanced Packaging Technology and Service | — | 20 | |||||||
Y.H. Liaw |
Vice President, Operations/ Fab Operations II | — | 34 | |||||||
Simon Jang |
Vice President, Research & Development/ Advanced Tool and Module Development | — | 29 | |||||||
Wendell Huang |
Vice President, Finance and Chief Financial Officer/ Spokesperson | — | 23 | |||||||
C.S. Yoo |
Vice President, Research and Development/ More than Moore Technologies | — | 34 | |||||||
Jun He |
Vice President, Quality and Reliability | — | 5 | |||||||
Geoffrey Yeap |
Vice President, Research & Development/ Platform Development | — | 6 | |||||||
Chris Horng-Dar Lin |
Vice President, Corporate Information Technology and Chief Information Officer | — | 1 | |||||||
Jonathan Lee (2) |
Vice President, Corporate Planning Organization | — | 15 | |||||||
Arthur Chuang (3) |
Vice President, Operations/ Facility | — | 33 | |||||||
L.C. Lu (3) |
Vice President, Research & Development/ Design & Technology Platform & TSMC Fellow | — | 22 | |||||||
K.C. Hsu (4) |
Vice President, Research & Development/ Integrated Interconnect & Packaging | — | 1 |
(1) |
Dr. L. Rafael Reif joined our Board of Directors on July 26, 2021. |
(2) |
Mr. Jonathan Lee was promoted to Vice President on June 9, 2021. |
(3) |
Dr. Arthur Chuang and Dr. L.C. Lu were promoted to Vice President on August 10, 2021. |
(4) |
Mr. K.C. Hsu was hired on November 1, 2021, and was promoted to Vice President on November 9, 2021. |
Name of Shareholders (1) |
Number of Common Shares Owned (2) |
Percentage of Outstanding Common Shares (2) |
||||||
Mark Liu, Chairman |
12,913,114 | 0.05 | % | |||||
C.C. Wei, Vice Chairman and Chief Executive Officer |
5,879,207 | 0.02 | % | |||||
Ming-Hsin Kung, Director (Representative of the National Development Fund) (3) |
1,653,709,980 | 6.38 | % | |||||
F.C. Tseng, Director |
29,472,675 | 0.11 | % | |||||
Sir Peter L. Bonfield, Independent Director |
— | — | ||||||
Kok-Choo |
— | — | ||||||
Michael R. Splinter, Independent Director |
— | — | ||||||
Moshe N. Gavrielov, Independent Director |
— | — | ||||||
Yancey Hai, Independent Director |
— | — | ||||||
L. Rafael Reif, Independent Director |
— | — | ||||||
Lora Ho, Senior Vice President |
4,570,080 | 0.02 | % | |||||
Wei-Jen |
1,441,127 | 0.01 | % | |||||
Rick Cassidy, Senior Vice President/ CEO & President of TSMC Arizona |
— | — | ||||||
Y.P. Chin, Senior Vice President |
6,920,122 | 0.03 | % | |||||
Y.J. Mii, Senior Vice President |
1,000,419 | 0.00 | % | |||||
J.K. Lin, Senior Vice President |
12,648,251 | 0.05 | % | |||||
J.K. Wang, Senior Vice President |
2,603,947 | 0.01 | % | |||||
Cliff Hou, Senior Vice President |
384,676 | 0.00 | % | |||||
Kevin Zhang, Senior Vice President |
70,000 | 0.00 | % | |||||
Sylvia Fang, Vice President & General Counsel/ Corporate Governance Officer |
700,285 | 0.00 | % | |||||
Connie Ma, Vice President |
236,000 | 0.00 | % | |||||
Y.L. Wang, Vice President |
218,535 | 0.00 | % | |||||
Doug Yu, Vice President & TSMC Distinguished Fellow |
250,000 | 0.00 | % | |||||
T.S. Chang, Vice President & TSMC Fellow |
173,781 | 0.00 | % | |||||
Michael Wu, Vice President |
483,501 | 0.00 | % | |||||
Min Cao, Vice President |
363,152 | 0.00 | % | |||||
Marvin Liao, Vice President |
90,485 | 0.00 | % | |||||
Y.H. Liaw, Vice President |
370,000 | 0.00 | % | |||||
Simon Jang, Vice President |
350,695 | 0.00 | % | |||||
Wendell Huang, Vice President & Chief Financial Officer/ Spokesperson |
1,651,756 | 0.01 | % | |||||
C.S. Yoo, Vice President |
1,703,690 | 0.01 | % | |||||
Jun He, Vice President |
9,000 | 0.00 | % | |||||
Geoffrey Yeap, Vice President |
22,000 | 0.00 | % | |||||
Chris Horng-Dar |
16,000 | 0.00 | % | |||||
Jonathan Lee, Vice President |
334,458 | 0.00 | % | |||||
Arthur Chuang,Vice President |
2,602,981 | 0.01 | % | |||||
L.C. Lu, Vice President & TSMC Fellow |
130,227 | 0.00 | % | |||||
K.C. Hsu, Vice President |
16,000 | 0.00 | % |
(1) |
None of our directors and executive officers owned any stock option as of February 28, 2022. |
(2) |
The disclosed number of shares owned by the directors and executive officers did not include any common shares held in the form of ADS by such individuals as such individual ownership of ADSs had not been disclosed or otherwise made public. The disclosed number of shares owned by the directors and executive officers also did not include shares owned by their related parties. As of February 28, 2022, we held 1,387,000 of our common shares in treasury as a result of repurchases made pursuant to the Share Repurchase Program, and such repurchased shares are not included in the total number of outstanding common shares. See “Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers” for a further discussion. Except for the number of shares held by the National Development Fund, Executive Yuan, each of these individuals owned less than one percent of all common shares outstanding as of February 28, 2022. |
(3) |
Represented shares held by the National Development Fund, Executive Yuan. |
Name |
Common Shares Underlying Outstanding RSAs (1) |
Exercise Price |
Grant Date |
Expiration Date |
||||||||||||
C.C. Wei, Vice Chairman and Chief Executive Officer |
||||||||||||||||
Lora Ho, Senior Vice President |
||||||||||||||||
Wei-Jen Lo, Senior Vice President |
||||||||||||||||
Y.P. Chin, Senior Vice President |
||||||||||||||||
Y.J. Mii, Senior Vice President |
||||||||||||||||
J.K. Lin, Senior Vice President |
||||||||||||||||
J.K. Wang, Senior Vice President |
||||||||||||||||
Cliff Hou, Senior Vice President |
||||||||||||||||
Kevin Zhang, Senior Vice President |
||||||||||||||||
Sylvia Fang, Vice President & General Counsel/ Corporate Governance Officer |
||||||||||||||||
Connie Ma, Vice President |
||||||||||||||||
Y.L. Wang, Vice President |
||||||||||||||||
Doug Yu, Vice President & TSMC Distinguished Fellow |
||||||||||||||||
T.S. Chang, Vice President & TSMC Fellow |
||||||||||||||||
Michael Wu, Vice President |
1,387,000 | — | March 1, 2022 | — | ||||||||||||
Min Cao, Vice President |
||||||||||||||||
Marvin Liao, Vice President |
||||||||||||||||
Y.H. Liaw, Vice President |
||||||||||||||||
Simon Jang, Vice President |
||||||||||||||||
Wendell Huang, Vice President & Chief Financial Officer/ Spokesperson |
||||||||||||||||
C.S. Yoo, Vice President |
||||||||||||||||
Jun He, Vice President |
||||||||||||||||
Geoffrey Yeap, Vice President |
||||||||||||||||
Chris Horng-Dar Lin, Vice President & Chief Information Officer |
||||||||||||||||
Jonathan Lee, Vice President |
||||||||||||||||
Arthur Chuang, Vice President |
||||||||||||||||
L.C. Lu, Vice President & TSMC Fellow |
||||||||||||||||
K.C. Hsu, Vice President |
||||||||||||||||
Y.C. Huang (2) |
(1) |
The RSAs granted under the Employee Restricted Stock Awards Rules for Year 2021 held by each of these directors and executives represent less than one percent of our total outstanding common shares. |
(2) |
Dr. Y.C. Huang is an eligible executive in accordance with the Employee Restricted Stock Awards Rules for Year 2021 but is not an executive officer. |
Name/Title |
Fees Earned or Paid in Cash |
Stock Awards |
All Other Compensation (2) |
Total |
||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
US$ |
||||||||||||||||
(in millions) |
||||||||||||||||||||
Mark Liu, Chairman |
398.7 | — | 1.6 | 400.4 | 14.4 | |||||||||||||||
F.C. Tseng, Director (1) |
10.6 | — | 1.3 | 11.9 | 0.4 | |||||||||||||||
Ming-Hsin Kung, Director (Representative of National Development Fund, Executive Yuan) |
10.6 | — | — | 10.6 | 0.4 | |||||||||||||||
Sir Peter L. Bonfield, Independent Director |
14.8 | — | — | 14.8 | 0.5 | |||||||||||||||
Stan Shih, Independent Director |
7.5 | — | — | 7.5 | 0.3 | |||||||||||||||
Kok-Choo Chen, Independent Director |
13.2 | — | — | 13.2 | 0.5 | |||||||||||||||
Michael R. Splinter, Independent Director |
14.8 | — | — | 14.8 | 0.5 | |||||||||||||||
Moshe N. Gavrielov, Independent Director |
14.8 | — | — | 14.8 | 0.5 | |||||||||||||||
Yancey Hai, Independent Director |
13.2 | — | — | 13.2 | 0.5 | |||||||||||||||
L. Rafael Reif, Independent Director |
6.4 | — | — | 6.4 | 0.2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
504.4 | — | 2.9 | 507.3 | 18.3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) |
In addition to the above, F.C. Tseng received NT$11.0 million of compensation from non-consolidated affiliates and NT$15.1 million of Advisor Fee from TSMC. |
(2) |
Included pensions funded according to applicable law and expenses for company cars, but did not include compensation paid to car drivers made available to directors. |
Name/Title |
Salary |
Bonus (6) |
Stock Awards |
All Other Compensation (7) |
Total |
|||||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
US$ |
|||||||||||||||||||
(in millions) |
||||||||||||||||||||||||
C.C. Wei, Chief Executive Officer |
13.3 | 381.9 | — | 5.1 | 400.3 | 14.4 | ||||||||||||||||||
Wendell Huang, Vice President & Chief Financial Officer/ Spokesperson |
5.2 | 54.3 | — | 1.5 | 61.1 | 2.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Lora Ho, Senior Vice President |
||||||||||||||||||||||||
Wei-Jen Lo, Senior Vice President |
||||||||||||||||||||||||
Rick Cassidy, Senior Vice President/ CEO & President of TSMC Arizona |
||||||||||||||||||||||||
Y.P. Chin, Senior Vice President |
||||||||||||||||||||||||
Y.J. Mii, Senior Vice President |
||||||||||||||||||||||||
J.K. Lin, Senior Vice President |
||||||||||||||||||||||||
J.K. Wang, Senior Vice President |
||||||||||||||||||||||||
Cliff Hou, Senior Vice President |
||||||||||||||||||||||||
Kevin Zhang, Senior Vice President |
||||||||||||||||||||||||
Sylvia Fang, Vice President & General Counsel/ Corporate Governance Officer |
||||||||||||||||||||||||
Connie Ma, Vice President |
||||||||||||||||||||||||
Y.L. Wang, Vice President |
||||||||||||||||||||||||
Doug Yu, Vice President & TSMC Distinguished Fellow |
137.6 | 1,728.6 | — | 50.6 | 1,916.8 | 69.1 | (8) | |||||||||||||||||
T.S. Chang, Vice President & TSMC Fellow |
||||||||||||||||||||||||
Michael Wu, Vice President |
||||||||||||||||||||||||
Min Cao, Vice President |
||||||||||||||||||||||||
Marvin Liao, Vice President |
||||||||||||||||||||||||
Y.H. Liaw, Vice President |
||||||||||||||||||||||||
Simon Jang, Vice President |
||||||||||||||||||||||||
C.S. Yoo, Vice President |
||||||||||||||||||||||||
Jun He, Vice President |
||||||||||||||||||||||||
Geoffrey Yeap, Vice President (2) |
||||||||||||||||||||||||
Chris Horng-Dar Lin, Vice President and Chief Information Officer(2) |
||||||||||||||||||||||||
Jonathan Lee, Vice President (3) |
||||||||||||||||||||||||
Arthur Chuang, Vice President (4) |
||||||||||||||||||||||||
L.C. Lu, Vice President & TSMC Fellow (4) |
||||||||||||||||||||||||
K.C. Hsu, Vice President (5) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
156.2 | 2,164.8 | — | 57.3 | 2,378.2 | 85.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
The total compensation paid to the executive officers is decided based on their job responsibility, contribution, company performance and projected future risks the Company will face. It is reviewed by the Compensation Committee then submitted to the Board of Directors for approval. |
(2) |
Dr. Geoffrey Yeap and Dr. Chris Horng-Dar Lin were promoted to Vice President, effective February 9, 2021. These amounts did not include compensation for the period before their promotion. |
(3) |
Mr. Jonathan Lee was promoted to Vice President, effective June 9, 2021. These amounts did not include compensation for the period before his promotion. |
(4) |
Dr. Arthur Chuang and Dr. L.C. Lu were promoted to Vice President, effective August 10, 2021. These amounts did not include compensation for the period before their promotion. |
(5) |
Mr. K.C. Hsu was promoted to Vice President, effective November 9, 2021. These amounts did not include compensation for the period before his promotion. |
(6) |
Included cash bonus and profit sharing bonus. |
(7) |
Included pensions funded according to applicable law and expenses for company cars. |
(8) |
Aggregate amount for executive officers other than C.C. Wei and Wendell Huang. |
As of December 31, |
||||||||||||
Function |
2019 |
2020 |
2021 |
|||||||||
Managers |
5,364 | 5,857 | 6,635 | |||||||||
Professionals |
24,416 | 27,767 | 31,920 | |||||||||
Assistant Engineers/Clericals |
4,357 | 4,832 | 6,620 | |||||||||
Technicians |
17,160 | 18,375 | 19,977 | |||||||||
|
|
|
|
|
|
|||||||
Total |
51,297 | 56,831 | 65,152 | |||||||||
|
|
|
|
|
|
As of December 31, |
||||||||||||
Location of Facility and Principal Offices |
2019 |
2020 |
2021 |
|||||||||
Hsinchu Science Park, Taiwan |
24,442 | 25,776 | 27,382 | |||||||||
Southern Taiwan Science Park, Taiwan |
12,771 | 16,114 | 20,428 | |||||||||
Central Taiwan Science Park, Taiwan |
7,333 | 7,668 | 8,486 | |||||||||
Taoyuan County, Taiwan |
1,475 | 1,661 | 1,701 | |||||||||
Miaoli County, Taiwan |
— | — | 628 | |||||||||
China |
3,679 | 3,859 | 4,131 | |||||||||
North America |
1,513 | 1,620 | 2,188 | |||||||||
Europe |
50 | 52 | 54 | |||||||||
Japan |
32 | 78 | 152 | |||||||||
Korea |
2 | 3 | 2 | |||||||||
|
|
|
|
|
|
|||||||
Total |
51,297 | 56,831 | 65,152 | |||||||||
|
|
|
|
|
|
ITEM 7. |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
Names of Shareholders |
Number of Common Shares Owned |
Percentage of Total Outstanding Common Shares (1) |
||||||
National Development Fund, Executive Yuan |
1,653,709,980 | 6.38 | % | |||||
BlackRock, Inc. (2) |
1,317,566,696 | 5.08 | % | |||||
Directors and executive officers as a group (3) |
87,626,164 | 0.34 | % |
(1) |
As of February 28, 2022, we held 1,387,000 of our common shares in treasury as a result of repurchases made pursuant to the Share Repurchase Program, and such repurchased shares are not included in the number of total outstanding common shares. See “Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers” for a further discussion. |
(2) |
According to the Schedule 13G of BlackRock, Inc. filed with the U.S. SEC on February 7, 2022, BlackRock, Inc. is the parent holding company or control person of several entities with interests in us. We do not have further information with respect to BlackRock, Inc.’s ownership in us subsequent to its Schedule 13G filed on February 7, 2022. |
(3) |
Excluded ownership of the National Development Fund, Executive Yuan. |
ITEM 8. |
FINANCIAL INFORMATION |
Period |
Approved Date |
Payment Date |
Cash Dividends Per Share (NT$) |
Total Amount (NT$) | ||||
First quarter of 2021 |
June 9, 2021 | October 14, 2021 | 2.75 | 71,308,546,260 | ||||
Second quarter of 2021 |
August 10, 2021 | January 13, 2022 | 2.75 | 71,308,546,260 | ||||
Third quarter of 2021 |
November 9, 2021 | April 14, 2022 | 2.75 | 71,308,546,260 | ||||
Fourth quarter of 2021 |
February 15, 2022 | July 14, 2022 | 2.75 | 71,308,546,260 |
ITEM 9. |
THE OFFER AND LISTING |
ITEM 10. |
ADDITIONAL INFORMATION |
• | issuance of new shares upon conversion of convertible bonds; and |
• | offerings of new shares through a private placement approved at a shareholders’ meeting. |
• | dividends or free distributions of shares; |
• | the exercise by holders of existing depositary receipts of their pre-emptive rights in connection with capital increases for cash; or |
• | if permitted under the deposit agreement and custody agreement, the deposit of common shares purchased by any person directly or through a depositary bank on the Taiwan Stock Exchange or the Taipei Exchange (as applicable) or held by such person for deposit in the depositary receipt facility. |
• | open a securities trading account with a local securities brokerage firm; |
• | open an NT dollars bank account; |
• | pay taxes; |
• | remit funds; and |
• | exercise rights on securities and perform other matters as may be designated by the holder. |
• | converted by bondholders, other than citizens of the P.R.C. and entities organized under the laws of the P.R.C. save for QDII or those that have obtained the approval of the Investment Commission of the R.O.C. Ministry of Economic Affairs, into shares of R.O.C. companies; or |
• | subject to R.O.C. FSC approval, converted into depositary receipts issued by the same R.O.C. company or by the issuing company of the exchange shares, in the case of exchangeable bonds. |
• | an individual who is not an R.O.C. citizen, who owns ADSs and who is not physically present in the R.O.C. for 183 days or more during any calendar year; or |
• | a corporation or a non-corporate body that is organized under the laws of a jurisdiction other than the R.O.C. and has no fixed place of business or business agent in the R.O.C. |
• | dealers or traders in securities or foreign currencies; |
• | banks and certain other financial institutions; |
• | brokers; |
• | traders in securities that elect to use a mark-to-market |
• | tax-exempt organizations, retirement plans, individual retirement accounts and other tax-deferred accounts; |
• | life insurance companies; |
• | persons that actually or constructively own 10% or more of the combined voting power of our voting stock or of the total value of our stock; |
• | persons that hold common shares or ADSs as part of a straddle or a hedging or conversion or integrated transaction for United States federal income tax purposes; |
• | persons who are former citizens or former long-term residents of the United States, or |
• | U.S. holders (as defined below) whose functional currency is not the U.S. dollar. |
• | a citizen or resident of the United States; |
• | a United States domestic corporation, or other entity subject to United States federal income tax as a domestic corporation; |
• | an estate whose income is subject to United States federal income tax regardless of its source; or |
• | a trust if a United States court can exercise primary supervision over the trust’s administration and one or more United States persons are authorized to control all substantial decisions of the trust. |
• | at least 75% of our gross income for the taxable year is passive income; or |
• | at least 50% of the value, determined on the basis of a quarterly average, of our assets is attributable to assets that produce or are held for the production of passive income. |
• | any gain you realize on the sale or other disposition of your common shares or ADSs; and |
• | any excess distribution that we make to you (generally, any distributions to you during a single taxable year that are greater than 125% of the average annual distributions received by you in respect of the common shares or ADSs during the three preceding taxable years or, if shorter, the portion of your holding period for the common shares or ADSs that preceded the taxable year in which you receive the distribution). |
• | the gain or excess distribution will be allocated ratably over your holding period for the common shares or ADSs, |
• | the amount allocated to the taxable year in which you realized the gain or excess distribution will be taxed as ordinary income, |
• | the amount allocated to each prior year, with certain exceptions, will be taxed at the highest tax rate in effect for that year, and |
• | the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such year. |
ITEM 11. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS |
ITEM 12D. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
Service |
Fees | |
Issuance of ADS | Up to US$0.05 (or fractions thereof) per ADS issued | |
Cancellation of ADS | Up to US$0.05 (or fractions thereof) per ADS cancelled | |
Distribution of cash proceeds (i.e., upon sale of rights and other entitlements) |
Up to US$0.02 (or fractions thereof) per ADS held | |
Distribution of ADS rights or other free distributions of Stock (excluding stock dividends) |
Up to US$0.05 (or fractions thereof) per ADS issued |
ITEM 13. |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. |
CONTROLS AND PROCEDURES |
/s/ Deloitte & Touche |
Taipei, Taiwan |
Republic of China |
April 14, 2022 |
ITEM 16A. |
AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. |
CODE OF ETHICS |
ITEM 16C. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
For the year ended December 31, |
||||||||
2020 |
2021 |
|||||||
NT$ |
NT$ |
|||||||
(In thousands) |
||||||||
Audit Fees |
60,253 | 63,871 | ||||||
Audit Related Fees |
9,982 | 23,197 | ||||||
All Other Fees |
81 | 75 | ||||||
Total |
70,316 | 87,143 | ||||||
ITEM 16D. |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Period |
Total number of common shares purchased |
Average price paid per common share |
Total number of common shares purchased as part of publicly announced plans or programs |
Maximum number (or approximate dollar value) of common shares that may yet be purchased under the plans or programs |
||||||||||||
(number of common shares) |
(NT$) |
(number of shares) |
(number of common shares) |
|||||||||||||
February, 2022 (From February 16, 2022 to February 25, 2022) |
1,387,000 | 628 | 1,387,000 | — | ||||||||||||
Total |
1,387,000 | 628 | 1,387,000 | — |
ITEM 16F. |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. |
CORPORATE GOVERNANCE |
NYSE Standards for US Companies under Listed Company Manual Section 303A |
TSMC Corporate Practices | |
NYSE Section 303A.01 |
Taiwan law does not require a board of directors of publicly traded companies to consist of a majority of independent directors. Taiwan law requires public companies meeting certain criteria to have at least two independent directors but no less than one fifth of the total number of directors on its board of directors. In addition, Taiwan law requires public companies to disclose information pertaining to their directors, including their independence status. Please see TSMC’s annual report and Form 20-F for the relevant year filed with the Taiwan authorities and the U.S. SEC (both of which are available online at www.tsmc.com ) for information on the total number of TSMC directors and directors who would be considered independent under NYSE Section 303A.02 and Taiwan law. | |
NYSE Section 303A.02 |
Taiwan law establishes comparable standards to evaluate director independence. For further information, please consult TSMC’s Taiwan annual report for the relevant year. |
NYSE Section 303A.03 non-management directors to meet at regularly scheduled executive meetings that are not attended by management. |
Taiwan law does not contain such a requirement. Except for meetings of sub-committees of the board of directors and those held by managing directors, Taiwan law does not allow separate board meetings of part but not all of the board of directors. | |
NYSE Section 303A.04 |
Taiwan law does not contain such a requirement. However, TSMC’s directors must be nominated either by the shareholders or by the entire board of directors. | |
NYSE Section 303A.05(a) |
Taiwan law requires certain public companies, such as us, to establish a compensation committee by September 30, 2011. TSMC, however, has established its compensation committee since 2003, which has met the requirements under the Taiwan law. Taiwan law permits a non-director independent member, appointed by the board of directors, to serve as a member on the compensation committee, so long as such member meets the independent and other requirements under the relevant Taiwan law. Also, as required by the TWSE, the compensation committee of the companies listed on the TWSE must consist of a majority of independent directors, and all the members of the compensation committee shall elect an independent director to act as the convener and the chairperson of the meeting. Please see TSMC’s annual report and Form 20-F for the relevant year filed with the Taiwan authorities and the U.S. SEC (both of which are available online at www.tsmc.com ) for further information regarding the composition and functions of its compensation committee. | |
NYSE Section 303A.05(b) |
Taiwan law requires certain public companies, such as us, to establish a compensation committee by September 30, 2011. TSMC, however, has established its compensation committee since 2003, which has met the requirements under the Taiwan law, and TSMC’s compensation committee charter contains the same responsibilities as those provided under NYSE Section 303A.05(b)(i) and mandates the committee to review the adequacy of its charter annually. | |
NYSE Section 303A.06 10A-3 under the Exchange Act. Foreign private issuers must satisfy the requirements of Rule 10A-3 under the Exchange Act by July 31, 2005. |
TSMC voluntarily established its audit committee before the promulgation of related Taiwan law. Our audit committee fully complies with both local law requirements and corporate governance standards. Please see TSMC’s annual report and Form 20-F for the relevant year filed with the Taiwan authorities and the U.S. SEC (both of which are available online at www.tsmc.com ) for further information regarding the composition of its audit committee. TSMC’s audit committee members are all financially literate and are assisted by a financial expert consultant. | |
NYSE Section 303A.07(a) |
Taiwan law requires all independent directors of a public company to be members of the audit committee if the company has established such a committee of which at least one shall have accounting or financial expertise. Please see TSMC’s annual report and Form 20-F for the relevant year filed with the Taiwan authorities and the U.S. SEC (both of which are available online at www.tsmc.com ) for further information regarding the composition of its audit committee. TSMC’s audit committee members are all financially literate and are assisted by a financial expert consultant. |
NYSE Section 303A.07(a) 10-K filed with the U.S. SEC. |
Taiwan law does not contain such requirement. Taiwan law requires all independent directors of a public company to be members of the audit committee if the company has established such a committee. Taiwan law forbids an independent director from serving as an independent director on a total of more than four Taiwan public companies. | |
NYSE Section 303A.07(a) |
Taiwan law requires all independent directors of a public company to be members of the audit committee if the company has established such a committee. | |
NYSE Section 303A.07(b) 10A-3(b)(2), (3), (4) & (5) of the Exchange Act. |
Taiwan law requires comparable standards. TSMC currently has a written audit committee charter containing the same duties and responsibilities as those provided under Section 10A-3(b)(1) of the Exchange Act. | |
NYSE Section 303A.07(b)(iii)(B) and (C) |
TSMC’s written audit committee charter establishes the same audit committee objectives. | |
NYSE Section 303A.07(b)(iii)(G) |
Taiwan law does not contain such requirement. | |
NYSE Section 303A.07(c) |
Taiwan law requires public companies to establish an internal audit function. Internal auditors are subject to strict qualification standards under Taiwan law, which require the board of directors to approve the appointment of the head of a company’s internal audit function. TSMC’s internal audit function has substantially the same responsibilities as provided under NYSE Section 303A.07(d). | |
NYSE Section 303A.08 |
Taiwan law imposes a similar requirement. Employee stock option plans (“ESOPs”) are required to be approved by the board of directors. Shareholders’ approval is not required if the number of options granted under the relevant ESOP does not exceed the reservation made in TSMC’s Articles of Incorporation and if the exercise price is not below the price as determined by relevant regulations. Otherwise, any change to such reservation in the Articles requires shareholders’ approval. Employee restricted stock awards are required to be approved by the board of directors and the shareholders’ meeting with a quorum of holders of at least two-thirds of all issued and outstanding shares of common stock at which the holders of at least a majority of the common stock represented at the meeting vote in favor thereof. However, in the case of a publicly held company such as TSMC, such a resolution by the shareholders’ meeting may be adopted by the holders of at least two-thirds of the shares of common stock represented at a shareholders’ meeting at which holders of at least a majority of the issued and outstanding shares of common stock are present. TSMC currently has one equity-based compensation plan in effect, which was approved by the Board of Directors on April 22, 2021, and by the shareholders on July 26, 2021. |
NYSE Section 303A.09 |
Taiwan law does not contain such requirement. Under Taiwan law, if a listed company has voluntarily adopted corporate governance guidelines, it must set up a dedicated section on its website to disclose the relevant information and inform investors how to access such guidelines. | |
NYSE Section 303A.09 |
Starting from 2020, companies listed on the TWSE are required by TWSE’s new rule to conduct self-assessment or peer assessment on the performance of the board of directors and each director every year and to submit the assessment results to TWSE by the end of the first quarter of the next year. TSMC has been conducting annual self-assessment on its Audit Committee’s performance since 2011 and on its board of directors as well as each director since 2020 in compliance with TWSE’s requirements. | |
NYSE Section 303A.10 |
Taiwan law does not contain such requirement. But, because of sound corporate governance principles, TSMC has adopted an “Ethics and Business Conduct Policy”, which complies with the Sarbanes-Oxley Act’s requirements concerning financial officers and CEO accountability. | |
NYSE Section 303A.12(a) |
Taiwan law does not contain such a requirement. But, in order to comply with relevant U.S. SEC regulations, TSMC’s CEO is required to certify in TSMC’s 20-F annual report that, to his or her knowledge the information contained therein fairly represents in all material respects the financial condition and results of operation of TSMC. | |
NYSE Section 303A.12(b) non-fulfillment of any applicable provision under NYSE Section 303A. |
Taiwan law does not contain such requirement. But, in order to be consistent with the corporate governance principles established under the Sarbanes-Oxley Act of 2002, TSMC’s CEO complies with the notice provision as set forth under NYSE Section 303A.12(b). | |
NYSE Section 303A.12(c) |
Taiwan law does not contain such requirement. But, in order to comply with the corporate governance principles established under the Sarbanes-Oxley Act of 2002, TSMC complies with NYSE Section 303A.12(c). |
ITEM 16H. |
MINE SAFETY DISCLOSURE |
ITEM 16I. |
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 17. |
FINANCIAL STATEMENTS |
ITEM 18. |
FINANCIAL STATEMENTS |
ITEM 19. |
EXHIBITS |
(1) |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2019, filed by TSMC on April 15, 2020. |
(2) |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2012, filed by TSMC on April 2, 2013. |
(3) |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2001, filed by TSMC on May 9, 2002. |
(4) |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2017, filed by TSMC on April 19, 2018. |
(5) |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2018, filed by TSMC on April 17, 2019. |
(6) |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2013, filed by TSMC on April 14, 2014. |
(7) |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2015, filed by TSMC on April 11, 2016. |
(8) |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2016, filed by TSMC on April 13, 2017. |
(9) |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 1998, filed by TSMC on April 30, 1999. |
(10) |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2020, filed by TSMC on April 16, 2021. |
(11) |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2014, filed by TSMC on April 13, 2015. |
(P) | Paper filing. |
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED | ||
By: | /s/ Wendell Huang | |
Name: | Wendell Huang | |
Title: | Vice President, Finance and Chief Financial Officer / Spokesperson |
Page |
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Consolidated Financial Statements of Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries |
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F-1 |
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F-2 |
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F-4 |
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F-6 |
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F-8 |
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F-9 |
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F-12 |
1. |
We read the Company’s policy and understood the criteria used to determine when to commence depreciation. |
2. |
We tested the effectiveness of the controls over the evaluation of when to commence depreciation of EUI/CIP. |
3. |
We sampled the year-end balance of EUI/CIP and performed the following for each selection: |
a. |
Evaluated whether the selection did not meet the criteria specified by the Company for commencement of depreciation. |
b. |
Observed the assets and evaluated their status. |
4. |
We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation during the year. |
5. |
We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation subsequent to year end. |
Notes |
December 31, 2020 |
December 31, 2021 |
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NT$ |
NT$ |
US$ (Note 3) |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
7 | $ | $ | $ | ||||||||||||
Financial assets at fair value through profit or loss |
8 | |||||||||||||||
Financial assets at fair value through other comprehensive income |
9 | |||||||||||||||
Financial assets at amortized cost |
10 | |||||||||||||||
Hedging financial assets |
11 | |||||||||||||||
Notes and accounts receivable, net |
12 | |||||||||||||||
Receivables from related parties |
34 | |||||||||||||||
Other receivables from related parties |
34 | |||||||||||||||
Inventories |
6, 13, 37 | |||||||||||||||
Other financial assets |
35 | |||||||||||||||
Other current assets |
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Total current assets |
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NONCURRENT ASSETS |
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Financial assets at fair value through other comprehensive income |
9 | |||||||||||||||
Financial assets at amortized cost |
10 | |||||||||||||||
Investments accounted for using equity method |
14 | |||||||||||||||
Property, plant and equipment |
6, 15 | |||||||||||||||
Right-of-use |
6, 16 | |||||||||||||||
Intangible assets |
6, 17 | |||||||||||||||
Deferred income tax assets |
6, 27 | |||||||||||||||
Refundable deposits |
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Other noncurrent assets |
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Total noncurrent assets |
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TOTAL |
$ | $ | $ | |||||||||||||
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Notes |
December 31, 2020 |
December 31, 2021 |
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NT$ |
NT$ |
US$ (Note 3) |
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LIABILITIES AND EQUITY |
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CURRENT LIABILITIES |
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Short-term loans |
18, 31 | $ | $ | $ | ||||||||||||
Financial liabilities at fair value through profit or loss |
8 | |||||||||||||||
Hedging financial liabilities |
11 | |||||||||||||||
Accounts payable |
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Payables to related parties |
34 | |||||||||||||||
Salary and bonus payable |
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Accrued profit sharing bonus to employees and compensation to directors and supervisors |
30 | |||||||||||||||
Payables to contractors and equipment suppliers |
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Cash dividends payable |
22 | |||||||||||||||
Income tax payable |
6, 27 | |||||||||||||||
Long-term liabilities - current portion |
19, 20, 31 | |||||||||||||||
Accrued expenses and other current liabilities |
6, 16, 23, 31, 34 | |||||||||||||||
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Total current liabilities |
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NONCURRENT LIABILITIES |
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Bonds payable |
19, 31 | |||||||||||||||
Long-term bank loans |
20, 31 | |||||||||||||||
Deferred income tax liabilities |
6, 27 | |||||||||||||||
Lease liabilities |
6, 16, 31 | |||||||||||||||
Net defined benefit liability |
21 | |||||||||||||||
Guarantee deposits |
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Others |
23 | |||||||||||||||
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Total noncurrent liabilities |
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Total liabilities |
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EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT |
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Capital stock |
22 | |||||||||||||||
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Capital surplus |
22 | |||||||||||||||
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Retained earnings |
22 | |||||||||||||||
Appropriated as legal capital reserve |
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Appropriated as special capital reserve |
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Unappropriated earnings |
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Others |
22 | ( |
) | ( |
) | ( |
) | |||||||||
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Equity attributable to shareholders of the parent |
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NON - CONTROLLING INTERESTS |
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Total equity |
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TOTAL |
$ | $ | |
$ | |
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|
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|
|
The accompanying notes are an integral part of the consolidated financial statements. | (Concluded) |
Notes |
2019 |
2020 |
2021 |
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NT$ |
NT$ |
NT$ |
US$ |
|||||||||||||||
(Note 3) |
||||||||||||||||||
NET REVENUE |
6, 23, 34, 38 | $ | $ | $ | $ | |||||||||||||
COST OF REVENUE |
6, 13, 30, 34, 37 | |||||||||||||||||
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GROSS PROFIT |
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OPERATING EXPENSES |
6, 30, 34 | |||||||||||||||||
Research and development |
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General and administrative |
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Marketing |
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Total operating expenses |
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OTHER OPERATING INCOME AND EXPENSES, NET |
15, 16, 30 | ( |
) | ( |
) | ( |
) | |||||||||||
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INCOME FROM OPERATIONS |
38 | |||||||||||||||||
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NON-OPERATING INCOME AND EXPENSES |
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Share of profits of associates |
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Interest Income |
24 | |||||||||||||||||
Other income |
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Foreign exchange gain (loss), net |
( |
) | ||||||||||||||||
Finance costs |
25 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||
Other gains and losses, net |
26 | ( |
) | ( |
) | ( |
) | |||||||||||
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Total non-operating income and expenses |
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INCOME BEFORE INCOME TAX |
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INCOME TAX EXPENSE |
6, 27 | |||||||||||||||||
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NET INCOME |
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OTHER COMPREHENSIVE INCOME (LOSS) |
6, 21, 22, 27 | |||||||||||||||||
Items that will not be reclassified subsequently to profit or loss: |
||||||||||||||||||
Remeasurement of defined benefit obligation |
( |
) | ||||||||||||||||
Unrealized gain on investments in equity instruments at fair value through other comprehensive income |
||||||||||||||||||
Gain (loss) on hedging instruments |
( |
) | ( |
) | ( |
) | ||||||||||||
Share of other comprehensive loss of associates |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Income tax benefit (expense) related to items that will not be reclassified subsequently |
( |
) | ( |
) | ( |
) | ||||||||||||
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|
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|
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( |
) | |||||||||||||||||
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Notes |
2019 |
2020 |
2021 |
|||||||||||||||
NT$ |
NT$ |
NT$ |
US$ |
|||||||||||||||
(Note 3) |
||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||||
Exchange differences arising on translation of foreign operations |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
Unrealized gain/(loss) on investments in debt instruments at fair value through other comprehensive income |
( |
) | ( |
) | ||||||||||||||
Gain on hedging instruments |
— | — | ||||||||||||||||
Share of other comprehensive loss of associates |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
Income tax expense related to items that may be reclassified subsequently |
— | — | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Other comprehensive loss for the year, net of income tax |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
$ | $ | $ | |
$ | |||||||||||||
|
|
|
|
|
|
|
|
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NET INCOME ATTRIBUTABLE TO: |
||||||||||||||||||
Shareholders of the parent |
$ | $ | $ | $ | ||||||||||||||
Non-controlling interests |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
$ | |
$ | |
$ | $ | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: |
||||||||||||||||||
Shareholders of the parent |
$ | $ | $ | $ | ||||||||||||||
Non-controlling interests |
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
$ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
EARNINGS PER SHARE |
28 | |||||||||||||||||
Basic earnings per share |
$ | $ | $ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Diluted earnings per share |
$ | $ | $ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
EARNINGS PER EQUIVALENT ADS |
||||||||||||||||||
Basic earnings per share |
$ | $ | $ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Diluted earnings per share |
$ | $ | $ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
Equity Attributable to Shareholders of the Parent |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Others |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Reserve |
Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income |
Gain (Loss) on Hedging Instruments |
Unearned Stock-Based Employee Compensation |
Total |
Total |
Non-controlling Interests |
Total Equity |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock - Common Stock |
Retained Earnings |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares (In Millions) |
Amount |
Capital Surplus |
Legal Capital Reserve |
Special Capital Reserve |
Unappropriated Earnings |
Total |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2019 |
$ | $ | $ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Appropriations of earnings |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal capital reserve |
— | — | — | — | ( |
) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Special capital reserve |
— | — | — | — | ( |
) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholders |
— | — | — | — | — | ( |
) | ( |
) | — | — | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total |
— | — | — | ( |
) | ( |
) | ( |
) | — | — | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net income in 2019 |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) in 2019, net of income tax |
— | — | — | — | — | ( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total comprehensive income (loss) in 2019 |
— | — | — | — | — | ( |
) | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Disposal of investments in equity instruments at fair value through other comprehensive income |
— | — | — | — | — | — | ( |
) | — | — | ( |
) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Basis adjustment for gain on hedging instruments |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equities of associates |
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
From share of changes in equities of subsidiaries |
— | — | — | — | — | — | — | — | — | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Donation from shareholders |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in non-controlling interests |
— | — | — | — | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2019 |
$ | $ | $ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Appropriations of earnings |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special capital reserve |
— | — | — | — | ( |
) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholders |
— | — | — | — | — | ( |
) | ( |
) | — | — | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total |
— | — | — | — | ( |
) | ( |
) | — | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net income in 2020 |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) in 2020, net of income tax |
— | — | — | — | — | ( |
) | ( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total comprehensive income (loss) in 2020 |
— | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Disposal of investments in equity instruments at fair value through other comprehensive income |
— | — | — | — | — | ( |
) | ( |
) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Basis adjustment for loss on hedging instruments |
— | — | — | — | — | — | — | — | — | ( |
) | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equities of associates |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Donation from shareholders |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Increase in non-controlling interests |
— | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2020 |
$ | $ | $ | $ | $ | $ | $ | ( |
) | $ | $ | — | $ | — | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Appropriations of earnings |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special capital reserve |
— | — | — | — | ( |
) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholders |
— | — | — | — | — | ( |
) | ( |
) | — | — | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total |
— | — | — | — | ( |
) | ( |
) | — | — | — | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net income in 2021 |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) in 2021, net of income tax |
— | — | — | — | — | ( |
) | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total comprehensive income (loss) in 2021 |
— | — | — | — | — | ( |
) | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Disposal of investments in equity instruments at fair value through other comprehensive income |
— | — | — | — | — | — | ( |
) | — | — | ( |
) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Basis adjustment for gain on hedging instruments |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equities of associates |
— | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
From difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
From share of changes in equities of subsidiaries |
— | — | ( |
) | — | — | — | — | — | — | — | — | — | ( |
) | — | ||||||||||||||||||||||||||||||||||||||||||||
Donation from shareholders |
— | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Increase in non-controlling interests |
— | — | — | — | — | — | — | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||||
Effect of acquisition of subsidiary |
— | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2021 |
$ | $ | $ | $ | $ | $ | $ | ( |
) | $ | $ | $ | — | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2021 (IN MILLIONS OF US$ - Note 3) |
$ | $ | $ | $ | $ | $ | $ | ( |
) | $ | $ | $ | — | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
2020 |
2021 |
||||||||||||||
NT$ |
NT$ |
NT$ |
US$ |
|||||||||||||
(Note 3) |
||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||||||||||
Income before income tax |
$ | $ | $ | $ | ||||||||||||
Adjustments for: |
||||||||||||||||
Depreciation expense |
||||||||||||||||
Amortization expense |
||||||||||||||||
Expected credit losses recognized (reversal) on investments in debt instruments |
( |
) | ( |
) | ||||||||||||
Finance costs |
||||||||||||||||
Share of profits of associates |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Share-based compensation |
||||||||||||||||
Loss (gain) on disposal or retirement of property, plant and equipment, net |
( |
) | ||||||||||||||
Loss on disposal or retirement of intangible assets, net |
— | |||||||||||||||
Impairment loss (reversal of impairment loss) on property, plant and equipment |
( |
) | ||||||||||||||
Loss (gain) on financial instruments at fair value through profit or loss, net |
( |
) | — | — | ||||||||||||
Gain on disposal of investments in debt instruments at fair value through other comprehensive income, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Loss from disposal of subsidiaries |
— | — | — | |||||||||||||
Gain on foreign exchange, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Dividend income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Gain arising from fair value hedges, net |
( |
) | — | — | — | |||||||||||
Others |
( |
) | ( |
) | ( |
) | ||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Financial instruments at fair value through profit or loss |
( |
) | ||||||||||||||
Notes and accounts receivable, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Receivables from related parties |
( |
) | ( |
) | ( |
) | ||||||||||
Other receivables from related parties |
( |
) | ( |
) | ||||||||||||
Inventories |
( |
) | ( |
) | ( |
) | ||||||||||
Other financial assets |
( |
) | ( |
) | ||||||||||||
Other current assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Accounts payable |
||||||||||||||||
Payables to related parties |
( |
) | ( |
) | ||||||||||||
Salary and bonus payable |
||||||||||||||||
Accrued profit sharing bonus to employees and compensation to directors and supervisors |
( |
) | ||||||||||||||
Accrued expenses and other current liabilities |
( |
) | ||||||||||||||
Other noncurrent liabilities |
— | — | ||||||||||||||
Net defined benefit liability |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash generated from operations |
||||||||||||||||
Income taxes paid |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash generated by operating activities |
||||||||||||||||
|
|
|
|
|
|
|
|
2019 |
2020 |
2021 |
||||||||||||||
NT$ |
NT$ |
NT$ |
US$ |
|||||||||||||
(Note 3) |
||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||||||||||
Acquisitions of: |
||||||||||||||||
Financial instruments at fair value through profit or loss - debt instruments |
$ | ( |
) | $ | — | $ | — | $ | — | |||||||
Financial assets at fair value through other comprehensive income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Financial assets at amortized cost |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Property, plant and equipment |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Intangible assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Proceeds from disposal or redemption of: |
||||||||||||||||
Financial instruments at fair value through profit or loss - debt instruments |
— | — | ||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||
Financial assets at amortized cost |
||||||||||||||||
Property, plant and equipment |
||||||||||||||||
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income |
||||||||||||||||
Derecognition of hedging financial instruments |
( |
) | ( |
) | ||||||||||||
Interest received |
||||||||||||||||
Proceeds from government grants - property, plant and equipment |
||||||||||||||||
Proceeds from government grants - land use right and others |
||||||||||||||||
Other dividends received |
||||||||||||||||
Dividends received from investments accounted for using equity method |
||||||||||||||||
Increase in prepayments for leases |
— | ( |
) | ( |
) | ( |
) | |||||||||
Refundable deposits paid |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Refundable deposits refunded |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||||||||||
Increase (decrease) in short-term loans |
( |
) | ||||||||||||||
Proceeds from short-term bills payable |
— | — | — | |||||||||||||
Repayments of short-term bills payable |
— | ( |
) | — | — | |||||||||||
Proceeds from issuance of bonds |
— | |||||||||||||||
Repayment of bonds |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Proceeds from long-term bank loans |
— | |||||||||||||||
Payments for transaction costs attributable to the issuance of bonds |
— | ( |
) | ( |
) | ( |
) | |||||||||
Repayment of the principal portion of lease liabilities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest paid |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Guarantee deposits received |
||||||||||||||||
Guarantee deposits refunded |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Cash dividends |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Disposal of ownership interests in subsidiaries (without losing control) |
— | — | ||||||||||||||
Donation from shareholders |
||||||||||||||||
Decrease in non-controlling interests |
( |
) | — | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash generated by (used in) financing activities |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
(Continued) |
2019 |
2020 |
2021 |
||||||||||||||
NT$ |
NT$ |
NT$ |
US$ |
|||||||||||||
(Note 3) |
||||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
|
|
|
|
|
|
|
|
|||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
( |
) | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements. | (Concluded) |
1. |
GENERAL |
2. |
THE AUTHORIZATION OF FINANCIAL STATEMENTS |
3. |
U.S. DOLLAR AMOUNTS |
4. |
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS), INTERNATIONAL ACCOUNTING STANDARDS (IAS), IFRIC INTERPRETATIONS (IFRIC), AND SIC INTERPRETATIONS (SIC) ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) (collectively, “IFRSs”). |
a. | Amendments to IFRSs and the new interpretation that are mandatorily effective for the current year |
New, Revised or Amended Standards and Interpretations |
Effective Date Issued by IASB | |
| ||
Amendments to IFRS 9, IAS 39, IFRS 7 and IFRS 16 “Interest Rate Benchmark Reform - Phase 2” |
January 1, 2021 (Note 1) | |
Amendment to IFRS 16 “Covid-19-Related |
April 1, 2021 (Note 2) |
Note 1: | The Company shall apply these amendments retrospectively for annual reporting periods beginning on or after January 1, 2021. |
Note 2: | The Company shall apply these amendments for annual reporting periods beginning on or after April 1, 2021. The Company has early adopted the amendments on January 1, 2021. |
b. | New and revised standards, amendments and interpretations in issue but not yet effective |
New, Revised or Amended Standards and Interpretations |
Effective Date Issued by IASB | |
Annual Improvements to IFRS Standards 2018–2020 Cycle |
January 1, 2022 | |
Amendments to IFRS 3 “Reference to the Conceptual Framework” |
January 1, 2022 | |
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” |
To be determined by IASB | |
Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” |
January 1, 2023 | |
Amendments to IAS 1 “Disclosure of Accounting Policies” |
January 1, 2023 | |
Amendments to IAS 8 “Definition of Accounting Estimates” |
January 1, 2023 | |
Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction” |
January 1, 2023 | |
Amendments to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” |
January 1, 2022 | |
Amendments to IAS 37 “Onerous Contracts–Cost of Fulfilling a Contract” |
January 1, 2022 |
5. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
a. | the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and |
b. | the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interest. |
Percentage of Ownership |
||||||||||||
Name of Investor |
Name of Investee |
Main Businesses and Products |
Establishment and Operating Location |
December 31, 2020 |
December 31, 2021 |
Note | ||||||
TSMC |
TSMC North America | — | ||||||||||
TSMC Europe B.V. (TSMC Europe) | a) | |||||||||||
TSMC Japan Limited (TSMC Japan) | a) | |||||||||||
TSMC Design Technology Japan, Inc. (TSMC JDC) | a) | |||||||||||
TSMC Japan 3DIC R&D Center, Inc. (TSMC 3DIC) | — | a), b) | ||||||||||
TSMC Korea Limited (TSMC Korea) | a) | |||||||||||
TSMC Partners, Ltd. (TSMC Partners) | a) | |||||||||||
TSMC Global, Ltd. (TSMC Global) | — | |||||||||||
TSMC China Company Limited (TSMC China) | — | |||||||||||
TSMC Nanjing Company Limited (TSMC Nanjing) | — |
Percentage of Ownership |
||||||||||||
Name of Investor |
Name of Investee |
Main Businesses and Products |
Establishment and Operating Location |
December 31, 2020 |
December 31, 2021 |
Note | ||||||
TSMC |
VisEra Technologies Company Ltd. (VisEra Tech) | Hsin-Chu , |
c) | |||||||||
TSMC Arizona Corporation (TSMC Arizona) | Phoenix, Arizona, U.S.A . |
d) | ||||||||||
Japan Advanced Semiconductor Manufacturing, Inc. (JASM) | of integrated circuits and other semiconductor device |
— | a), e) | |||||||||
VentureTech Alliance Fund II, L.P. (VTAF II) | start-up companies |
Cayman Islands |
a) | |||||||||
VentureTech Alliance Fund III, L.P. (VTAF III) | start-up companies |
a) | ||||||||||
Emerging Fund L.P. (Emerging Fund) | start-up companies |
Cayman Islands |
— | a), f) | ||||||||
TSMC Partners |
TSMC Development, Inc. (TSMC Development) | — | ||||||||||
TSMC Technology, Inc. (TSMC Technology) | a) | |||||||||||
TSMC Design Technology Canada Inc. (TSMC Canada) | a) | |||||||||||
TSMC Development |
WaferTech, LLC (WaferTech) | — | ||||||||||
VTAF III |
Growth Fund Limited (Growth Fund) | start-up companies |
a) |
Note a: | This is an immaterial subsidiary for which the consolidated financial statements are not audited by the Company’s independent auditors. |
Note b: | TSMC 3DIC is established in March 2021. |
Note c: | To facilitate VisEra’s IPO in Taiwan, |
Note d: | Under the terms of the development agreement entered into between TSMC Arizona and the City of Phoenix, the City of Phoenix commits approximately US$ job-creation thresholds. |
Note e: | JASM is established in December 2021 and has increased its capital in January 2022. After the increase in capital, TSMC’s shareholding in JASM decreased from |
Note f: | Emerging fund is established in January 2021. |
a. | Category of financial assets and measurement |
1) | Financial asset at FVTPL |
2) | Investments in debt instruments at FVTOCI |
3) | Investments in equity instruments at FVTOCI |
4) | Measured at amortized cost |
b. | Impairment of financial assets |
c. | Derecognition of financial assets |
a. | Fair value hedge |
b. | Cash flow hedge |
6. |
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY |
7. |
CASH AND CASH EQUIVALENTS |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Cash and deposits in banks |
$ | $ | ||||||
Repurchase agreements |
||||||||
Government bonds |
||||||||
Commercial paper |
||||||||
|
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|
|
|||||
$ | $ | |||||||
|
|
|
|
8. |
FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Financial assets |
||||||||
Mandatorily measured at FVTPL |
||||||||
Forward exchange contracts |
$ | $ | ||||||
|
|
|
|
|||||
Financial liabilities |
||||||||
Held for trading |
||||||||
Forward exchange contracts |
$ | |
$ | |
||||
|
|
|
|
Maturity Date |
Contract Amount (In Millions) | |||
December 31, 2020 |
||||
Sell NT$ |
to | NT$ | ||
Sell US$ |
to | US$ | ||
December 31, 2021 |
||||
Sell NT$ |
to |
NT$ | ||
Sell US$ |
to | US$ |
9. |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Investments in debt instruments at FVTOCI |
||||||||
Corporate bonds |
$ | $ | ||||||
Agency bonds/Agency mortgage-backed securities |
||||||||
Government bonds |
||||||||
Asset-backed securities |
||||||||
|
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|
|||||
|
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|
|
| |||
|
|
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|
|||||
Investments in equity instruments at FVTOCI |
||||||||
Non-publicly traded equity investments |
||||||||
Publicly traded stocks |
||||||||
|
|
|
|
|||||
|
|
|
|
|||||
$ |
|
|
$ |
|
| |||
|
|
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|
|||||
Current |
$ | $ | ||||||
Noncurrent |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
10. |
FINANCIAL ASSETS AT AMORTIZED COST |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Corporate bonds |
$ | $ | ||||||
Less: Allowance for impairment loss |
( |
) | ( |
) | ||||
$ |
$ |
|||||||
Current |
$ | $ | ||||||
Noncurrent |
||||||||
$ | $ | |||||||
11. |
HEDGING FINANCIAL INSTRUMENTS |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Financial assets- current |
||||||||
Fair value hedges |
||||||||
Interest rate futures contracts |
$ | $ | — | |||||
Cash flow hedges |
||||||||
Forward interest rate contracts |
— | |||||||
$ | $ | |||||||
Financial liabilities- current |
||||||||
Fair value hedges |
||||||||
Interest rate futures contracts |
$ |
$ |
||||||
Hedging Instruments |
Contract Amount (US$ in Millions) |
Maturity | ||
Interest rate futures contracts - US Treasury futures |
US$ |
|||
Hedged Items |
Asset Carrying Amount |
Accumulated Amount of Fair Value Hedge Adjustments | ||
NT$ |
NT$ | |||
(In Millions) |
(In Millions) | |||
Financial assets at FVTOCI |
$ |
$ |
Hedging Instruments |
Contract Amount (US$ in Millions) |
Maturity | ||
Interest rate futures contracts - US Treasury futures |
US$ |
|||
Hedged Items |
Asset Carrying Amount |
Accumulated Amount of Fair Value Hedge Adjustments | ||
NT$ |
NT$ | |||
(In Millions) |
(In Millions) | |||
Financial assets at FVTOCI |
$ |
$ |
Hedging Instruments/Hedged Items |
Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness |
|||||||||||
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Hedging Instruments |
||||||||||||
Interest rate futures contracts - US Treasury futures |
$ | ( |
) | $ | ( |
) | $ | |||||
Hedged Items |
||||||||||||
Financial assets at FVTOCI |
( |
) | ||||||||||
$ | $ | — | $ | — | ||||||||
Hedging Instruments |
Contract Amount (In Millions) |
Maturity |
Balance in Other Equity (Continuing Hedges) NT$ (In Millions) |
|||||||
Forward interest rate contracts |
US$ | |
$ |
Hedging Instruments/Hedged Items |
Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness |
|||||||||||
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Hedging Instruments |
||||||||||||
Forward exchange contracts (capital expenditures) |
$ | ( |
) | $ | $ | ( |
) | |||||
|
|
|
|
|
|
|||||||
Forward interest rate contracts (issuance of debts) |
$ | — | $ | — | $ | |||||||
|
|
|
|
|
|
|||||||
Hedged Items |
||||||||||||
Forecast transaction (capital expenditures) |
$ | $ | ( |
) | $ | |||||||
|
|
|
|
|
|
|||||||
Forecast transaction (issuance of debts) |
$ | — | $ | — | $ | ( |
) | |||||
|
|
|
|
|
|
12. |
NOTES AND ACCOUNTS RECEIVABLE, NET |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
At amortized cost |
||||||||
Notes and accounts receivable |
$ | $ | ||||||
Less: Loss allowance |
( |
) | ( |
) | ||||
|
|
|
|
|||||
At FVTOCI |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Not past due |
$ | $ | ||||||
Past due |
||||||||
Past due within 30 days |
||||||||
Past due 31-60 days |
||||||||
Past due 61-120 days |
||||||||
Past due over 121 days |
||||||||
Less: Loss allowance |
( |
) | ( |
) | ||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Balance, beginning of year |
$ | $ | $ | |||||||||
Provision (Reversal) |
( |
) | ||||||||||
Effect of exchange rate changes |
( |
) | ( |
) | — | |||||||
|
|
|
|
|
|
|||||||
Balance, end of year |
$ | $ | $ | |||||||||
|
|
|
|
|
|
13. |
INVENTORIES |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Finished goods |
$ | $ | ||||||
Work in process |
||||||||
Raw materials |
||||||||
Supplies and spare parts |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Inventory losses (reversal of write-down of inventories) |
$ | ( |
) | $ | $ | |||||||
|
|
|
|
|
|
14. |
INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD |
Place of Incorporation and Operation |
Carrying Amount |
% of Ownership and Voting Rights Held by the Company | ||||||||||||||
Name of Associate |
Principal Activities |
December 31, 2020 |
December 31, 2021 |
December 31, 2020 |
December 31, 2021 | |||||||||||
NT$ |
NT$ |
|||||||||||||||
(In Millions) |
(In Millions) |
|||||||||||||||
Vanguard International Semiconductor Corporation (VIS) |
|
$ | $ | |||||||||||||
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC) |
|
|||||||||||||||
Xintec Inc. (Xintec) |
|
|||||||||||||||
Global Unichip Corporation (GUC) |
|
|||||||||||||||
Mutual-Pak Technology Co., Ltd. (Mutual-Pak) |
|
|
||||||||||||||
|
|
|
|
|||||||||||||
$ | $ | |||||||||||||||
|
|
|
|
December 31, 2020 |
December 31, 2021 |
|||||||||
NT$ |
NT$ |
|||||||||
Name of Associate |
(In Millions) |
(In Millions) |
||||||||
VIS |
$ | $ | ||||||||
|
|
|
|
|||||||
GUC |
$ | $ | ||||||||
|
|
|
|
|||||||
Xintec |
$ | |
$ | |
||||||
|
|
|
|
15. |
PROPERTY, PLANT AND EQUIPMENT |
December 31, 2019 |
December 31, 2020 |
December 31, 2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Assets used by the Company |
$ | $ | $ | |||||||||
Assets subject to operating leases |
||||||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
a. | Assets used by the Company |
Land and Land Improvements |
Buildings |
Machinery and Equipment |
Office Equipment |
Equipment under Installation and Construction in Progress |
Total |
|||||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
|||||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||||||||||||
Cost |
||||||||||||||||||||||||
Balance at January 1, 2019 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Additions |
— | |||||||||||||||||||||||
Disposals or retirements |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ||||||||||||||
Transfers from right-of-use |
— | — | — | — | ||||||||||||||||||||
Effect of disposal of subsidiary |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
Effect of exchange rate changes |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2019 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Accumulated depreciation and impairment |
||||||||||||||||||||||||
Balance at January 1, 2019 |
$ | $ | $ | $ | $ | — | $ | |||||||||||||||||
Additions |
— | |||||||||||||||||||||||
Disposals or retirements |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ||||||||||||||
Transfers from right-of-use |
— | — | — | — | ||||||||||||||||||||
Reversal of impairment |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Effect of disposal of subsidiary |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
Effect of exchange rate changes |
( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2019 |
$ | $ | $ | $ | $ | — | $ | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Carrying amounts at December 31, 2019 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cost |
||||||||||||||||||||||||
Balance at January 1, 2020 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Additions (deductions) |
— | ( |
) | |||||||||||||||||||||
Disposals or retirements |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ||||||||||||||
Transfers from assets subject to operating leases |
— | — | — | — | ||||||||||||||||||||
Transfers to assets subject to operating leases |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Effect of exchange rate changes |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2020 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Accumulated depreciation and impairment |
||||||||||||||||||||||||
Balance at January 1, 2020 |
$ | $ | $ | $ | $ | — | $ | |||||||||||||||||
Additions |
— | |||||||||||||||||||||||
Disposals or retirements |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ||||||||||||||
Transfers from assets subject to operating leases |
— | — | — | — | ||||||||||||||||||||
Transfers to assets subject to operating leases |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Impairment |
— | — | — | — | ||||||||||||||||||||
Effect of exchange rate changes |
( |
) | ( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2020 |
$ | $ | $ | $ | $ | — | $ | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Carrying amounts at December 31, 2020 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Land and Land Improvements |
Buildings |
Machinery and Equipment |
Office Equipment |
Equipment under Installation and Construction in Progress |
Total |
|||||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
|||||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||||||||||||
Cost |
||||||||||||||||||||||||
Balance at January 1, 2021 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Additions |
||||||||||||||||||||||||
Disposals or retirements |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ||||||||||||||
Transfers from assets subject to operating leases |
— | — | — | |||||||||||||||||||||
Transfers to assets subject to operating leases |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Effect of exchange rate changes |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2021 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Accumulated depreciation and impairment |
||||||||||||||||||||||||
Balance at January 1, 2021 |
$ | $ | $ | $ | $ | — | $ | |||||||||||||||||
Additions |
— | |||||||||||||||||||||||
Disposals or retirements |
— | ( |
) | ( |
) | ( |
) | — | ( |
) | ||||||||||||||
Transfers from assets subject to operating leases |
— | — | — | |||||||||||||||||||||
Transfers to assets subject to operating leases |
— | — | ( |
) | — | — | ( |
) | ||||||||||||||||
Impairment |
— | — | — | — | ||||||||||||||||||||
Effect of exchange rate changes |
( |
) | ( |
) | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2021 |
$ | $ | $ | $ | $ | — | $ | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Carrying amounts at December 31, 2021 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
b. | Assets subject to operating leases |
Buildings |
Machinery and Equipment |
Total |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Cost |
||||||||||||
Balance at January 1, 2019 |
$ | $ | — | $ | ||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2019 |
$ | $ | — | $ | ||||||||
|
|
|
|
|
|
|||||||
Accumulated depreciation |
||||||||||||
Balance at January 1, 2019 |
$ | $ | — | $ | ||||||||
Additions |
— | |||||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2019 |
$ | $ | — | $ | ||||||||
|
|
|
|
|
|
|||||||
Carrying amounts at December 31, 2019 |
$ | $ | — | $ | ||||||||
|
|
|
|
|
|
|||||||
Cost |
||||||||||||
Balance at January 1, 2020 |
$ | $ | — | $ | ||||||||
Disposals or retirements |
( |
) | — | ( |
) | |||||||
Transfers to assets used by the Company |
( |
) | — | ( |
) | |||||||
Transfers from assets used by the Company |
— | |||||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2020 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Accumulated depreciation |
||||||||||||
Balance at January 1, 2020 |
$ | $ | — | $ | ||||||||
Additions |
||||||||||||
Disposals or retirements |
( |
) | — | ( |
) | |||||||
Transfers to assets used by the Company |
( |
) | — | ( |
) | |||||||
Transfers from assets used by the Company |
— | |||||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2020 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Carrying amounts at December 31, 2020 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Cost |
||||||||||||
Balance at January 1, 2021 |
$ | $ | $ | |||||||||
Transfers to assets used by the Company |
( |
) | ( |
) | ( |
) | ||||||
Transfers from assets used by the Company |
— | |||||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2021 |
$ | $ | — | $ | ||||||||
|
|
|
|
|
|
|||||||
Accumulated depreciation |
||||||||||||
Balance at January 1, 2021 |
$ | $ | $ | |||||||||
Additions |
||||||||||||
Transfers to assets used by the Company |
( |
) | ( |
) | ( |
) | ||||||
Transfers from assets used by the Company |
— | |||||||||||
|
|
|
|
|
|
|||||||
Balance at December 31, 2021 |
$ | $ | — | $ | ||||||||
|
|
|
|
|
|
|||||||
Carrying amounts at December 31, 2021 |
$ | $ | — | $ | ||||||||
|
|
|
|
|
|
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Year 1 |
$ | $ | ||||||
Year 2 |
— | |||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
16. |
LEASE ARRANGEMENTS |
a. | Right-of-use |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Carrying amounts |
||||||||
Land |
$ | $ | ||||||
Buildings |
||||||||
Machinery and equipment |
— | |||||||
Office equipment |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Additions to right-of-use |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Depreciation of right-of-use |
||||||||||||
Land |
$ | $ | $ | |||||||||
Buildings |
||||||||||||
Machinery and equipment |
||||||||||||
Office equipment |
||||||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
|||||||
Income from subleasing right-of-use |
$ | $ | $ | |||||||||
|
|
|
|
|
|
b. Lease liabilities |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Carrying amounts |
||||||||
Current portion (classified under accrued expenses and other current liabilities) |
$ | $ | ||||||
Noncurrent portion |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Ranges of discount rates for lease liabilities are as follows: |
December 31, 2020 |
December 31, 2021 |
|||||
Land |
% | |||||
Buildings |
% | |||||
Machinery and equipment |
— | |||||
Office equipment |
% |
c. Material terms of right-of-use The Company leases land and buildings mainly for the use of plants and offices with lease terms of 1 to 36 years. The lease contracts for land located in the R.O.C. specify that lease payments will be adjusted every 2 years on the basis of changes in announced land value prices. The Company does not have purchase options to acquire the leasehold land and buildings at the end of the lease terms. d. Subleases The Company subleases the right to use its buildings and machinery and equipment under operating leases with lease terms of 1 to 6 years. The maturity analysis of lease payments receivable under operating subleases is as follows: |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Year 1 |
$ | $ | ||||||
|
|
|
|
e. | Other lease information |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Expenses relating to short-term leases |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Expenses relating to variable lease payments not included in the measurement of lease liabilities |
$ | $ | $ | |
||||||||
|
|
|
|
|
|
|||||||
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Total cash outflow for leases |
$ | $ | $ | |
||||||||
|
|
|
|
|
|
17. |
INTANGIBLE ASSETS |
Goodwill |
Technology License Fees |
Software and System Design Costs |
Patent and Others |
Total |
||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||||||
Cost |
||||||||||||||||||||
Balance at January 1, 2019 |
$ | $ | $ | $ | $ | |||||||||||||||
Additions |
— | |||||||||||||||||||
Disposals or retirements |
— | — | ( |
) | — | ( |
) | |||||||||||||
Effect of exchange rate changes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31, 2019 |
$ | $ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Accumulated amortization and impairment |
||||||||||||||||||||
Balance at January 1, 2019 |
$ | — | $ | $ | $ | $ | ||||||||||||||
Additions |
— | |||||||||||||||||||
Disposals or retirements |
— | — | ( |
) | — | ( |
) | |||||||||||||
Effect of exchange rate changes |
— | ( |
) | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31, 2019 |
$ | — | $ | $ | $ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Carrying amounts at December 31, 2019 |
$ | $ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cost |
||||||||||||||||||||
Balance at January 1, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||
Additions |
— | |||||||||||||||||||
Disposals or retirements |
— | — | ( |
) | — | ( |
) | |||||||||||||
Effect of exchange rate changes |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Accumulated amortization and impairment |
||||||||||||||||||||
Balance at January 1, 2020 |
$ | — | $ | $ | $ | $ | ||||||||||||||
Additions |
— | |||||||||||||||||||
Disposals or retirements |
— | — | ( |
) | — | ( |
) | |||||||||||||
Effect of exchange rate changes |
— | ( |
) | — | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31, 2020 |
$ | — | $ | $ | $ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Carrying amounts at December 31, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Goodwill |
Technology License Fees |
Software and System Design Costs |
Patent and Others |
Total |
||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||||||
Cost |
||||||||||||||||||||
Balance at January 1, 2021 |
$ | $ | $ | $ | $ | |||||||||||||||
Additions |
— | |||||||||||||||||||
Disposals or retirements |
— | — | ( |
) | — | ( |
) | |||||||||||||
Effect of exchange rate changes |
( |
) | ( |
) | ( |
) | ||||||||||||||
Balance at December 31, 2021 |
$ | $ | $ | $ | $ | |||||||||||||||
Accumulated amortization and impairment |
||||||||||||||||||||
Balance at January 1, 2021 |
$ | — | $ | $ | $ | $ | ||||||||||||||
Additions |
— | |||||||||||||||||||
Disposals or retirements |
— | — | ( |
) | — | ( |
) | |||||||||||||
Effect of exchange rate changes |
— | ( |
) | |||||||||||||||||
Balance at December 31, 2021 |
$ | — | $ | $ | $ | $ | ||||||||||||||
Carrying amounts at December 31, 2021 |
$ | $ | $ | $ | $ | |||||||||||||||
18. |
SHORT-TERM LOANS |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Unsecured loans |
||||||||
Amount |
$ | $ | ||||||
Loan content |
||||||||
US$ (in millions) |
$ | $ | ||||||
EUR (in millions) |
||||||||
Annual interest rate |
( |
% | ( |
% | ||||
Maturity date |
Due by 2021 |
|
Due by 2022 |
|
19. |
BONDS PAYABLE |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Domestic unsecured bonds |
$ | $ | ||||||
Overseas unsecured bonds |
||||||||
Less: Discounts on bonds payable |
( |
) | ( |
) | ||||
Less: Current portion |
( |
) | ( |
) | ||||
$ | |
$ | |
|||||
Issuance |
Tranche |
Issuance Period |
Total Amount NT$ (In Millions) |
Coupon Rate |
Repayment and Interest Payment | |||||||||||
NT$ unsecured bonds |
||||||||||||||||
101-3 |
— | $ | % | |||||||||||||
101-4 |
B | % | above | |||||||||||||
C | % | above | ||||||||||||||
102-1 |
B | % | above | |||||||||||||
C | % | above | ||||||||||||||
102-2 |
A | % | above | |||||||||||||
B | % | above | ||||||||||||||
102-4 |
D | % | ||||||||||||||
E | % | above | ||||||||||||||
F | % | |||||||||||||||
109-1 |
A | % | above | |||||||||||||
B | % | above | ||||||||||||||
C | % | above |
Issuance |
Tranche |
Issuance Period |
Total Amount NT$ (In Millions) |
Coupon Rate |
Repayment and Interest Payment | |||||||||
109-2 |
A | |
$ | % | | |||||||||
B | |
% | above | |||||||||||
C | |
% | above | |||||||||||
109-3 |
A | |
% | above | ||||||||||
B | |
% | above | |||||||||||
C | |
% | above | |||||||||||
109-4 |
A | |
% | | ||||||||||
B | |
% | above | |||||||||||
C | |
% | above | |||||||||||
109-5 |
A | |
% | above | ||||||||||
B | |
% | above | |||||||||||
C | |
% | above | |||||||||||
109-6 (green bond) |
A | |
% | above | ||||||||||
B | |
% | above | |||||||||||
C | |
% | above | |||||||||||
109-7 |
A | |
% | above | ||||||||||
B | |
% | above | |||||||||||
C | |
% | above | |||||||||||
110-1 |
A | |
% | | ||||||||||
B | |
% | above | |||||||||||
C | |
% | above | |||||||||||
110-2 |
A | |
% | above | ||||||||||
B | |
% | above | |||||||||||
C | |
% | above |
Issuance |
Tranche |
Issuance Period |
Total Amount NT$ (In Millions) |
Coupon Rate |
Repayment and Interest Payment | |||||||||||
110-3 |
A | |
$ | % | | |||||||||||
B | |
% | above | |||||||||||||
C | |
% | above | |||||||||||||
110-4 |
A | |
% | above | ||||||||||||
B | |
% | above | |||||||||||||
C | |
% | above | |||||||||||||
D | |
% | above | |||||||||||||
110-6 |
A | |
% | above | ||||||||||||
B | |
% | above | |||||||||||||
C | |
% | above | |||||||||||||
D | |
% | above | |||||||||||||
110-7 |
A | |
% | above | ||||||||||||
B | |
% | above | |||||||||||||
C | |
% | above | |||||||||||||
(Concluded) | ||||||||||||||||
Issuance |
Tranche |
Issuance Period |
Total Amount US$ (In Millions) |
Coupon Rate |
Repayment and Interest Payment | |||||||||||
US$ unsecured bonds |
||||||||||||||||
109-1 |
— | |
US$ | % | | |||||||||||
110-5 |
— | |
% | above |
Issuance Period |
Total Amount US$ (In Millions) |
Coupon Rate |
Repayment and Interest Payment | |||||||
US$ | % | |||||||||
% | above | |||||||||
% | above | |||||||||
% | above | |||||||||
% | above | |||||||||
% | above | |||||||||
% | above | |||||||||
% | above | |||||||||
% | above | |||||||||
% | above |
Issuance |
Tranche |
Issuance Period |
Total Amount NT$ (In Millions) |
Coupon Rate |
Repayment and Interest Payment | |||||||||||
NT$ unsecured bonds |
||||||||||||||||
111-1 (green bond) |
A | $ | % | |||||||||||||
B | % | above | ||||||||||||||
111-2 |
A |
% |
above | |||||||||||||
B |
% |
above | ||||||||||||||
C |
% |
above |
20. |
LONG-TERM BANK LOANS |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Unsecured loans |
$ | $ | ||||||
Less: Discounts on government grants |
( |
) | ( |
) | ||||
Less: Current portion |
— | ( |
) | |||||
$ | $ | |||||||
Loan content |
||||||||
Annual interest rate |
||||||||
Maturity date |
Due by 2025 |
|
Due by 2026 |
|
21. |
RETIREMENT BENEFIT PLANS |
a. | Defined contribution plans |
b. | Defined benefit plans |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Current service cost |
$ | $ | $ | |||||||||
Net interest expense |
||||||||||||
|
|
|
|
|
|
|||||||
Components of defined benefit costs recognized in profit or loss |
||||||||||||
|
|
|
|
|
|
|||||||
Remeasurement on the net defined benefit liability: |
||||||||||||
Return on plan assets (excluding amounts included in net interest expense) |
( |
) | ( |
) | ( |
) | ||||||
Actuarial loss (gain) arising from experience adjustments |
( |
) | ||||||||||
Actuarial loss (gain) arising from changes in demographic assumptions |
( |
) | — | |||||||||
Actuarial loss (gain) arising from changes in financial assumptions |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Components of defined benefit costs recognized in other comprehensive income |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | $ | ( |
) | |||||||
|
|
|
|
|
|
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Cost of revenue |
$ | $ | $ | |||||||||
Research and development expenses |
||||||||||||
General and administrative expenses |
||||||||||||
Marketing expenses |
||||||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Present value of defined benefit obligation |
$ | $ | ||||||
Fair value of plan assets |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net defined benefit liability |
$ | $ | ||||||
|
|
|
|
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Balance, beginning of year |
$ | $ | $ | |||||||||
Current service cost |
||||||||||||
Interest expense |
||||||||||||
Remeasurement: |
||||||||||||
Actuarial loss (gain) arising from experience adjustments |
( |
) | ||||||||||
Actuarial loss (gain) arising from changes in demographic assumptions |
( |
) | — | |||||||||
Actuarial loss (gain) arising from changes in financial assumptions |
( |
) | ||||||||||
Benefits paid from plan assets |
( |
) | ( |
) | ( |
) | ||||||
Benefits paid directly by the Company |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance, end of year |
$ | $ | $ | |||||||||
|
|
|
|
|
|
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Balance, beginning of year |
$ | $ | $ | |||||||||
Interest income |
||||||||||||
Remeasurement: |
||||||||||||
Return on plan assets (excluding amounts included in net interest expense) |
||||||||||||
Contributions from employer |
||||||||||||
Benefits paid from plan assets |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance, end of year |
$ | $ | $ | |||||||||
|
|
|
|
|
|
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Cash |
$ | $ | ||||||
Equity instruments |
||||||||
Debt instruments |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Measurement Date | ||||
December 31, 2020 |
December 31, 2021 | |||
Discount rate |
||||
Future salary increase rate |
1) | Investment risk: The pension funds are invested in equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the government’s designated authorities or under the mandated management. However, under the R.O.C. Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a two-year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return. |
2) | Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the debt investments of the plan assets. |
3) | Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation. |
22. |
EQUITY |
a. | Capital stock |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Authorized shares |
||||||||
|
|
|
|
|||||
Authorized capital |
$ | $ | ||||||
|
|
|
|
|||||
Issued and paid shares |
||||||||
|
|
|
|
|||||
Issued capital |
$ | $ | ||||||
|
|
|
|
b. | Capital surplus |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Additional paid-in capital |
$ | $ | ||||||
From merger |
||||||||
From convertible bonds |
||||||||
From difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal |
— | |||||||
From share of changes in equities of subsidiaries |
||||||||
From share of changes in equities of associates |
||||||||
Donations |
||||||||
|
|
|
|
|||||
$ | |
$ | |
|||||
|
|
|
|
c. | Retained earnings and dividend policy |
First Quarter of 2019 |
Second Quarter of 2019 |
Third Quarter of 2019 |
Fourth Quarter of 2019 |
|||||||||||||
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
|||||||||||||
Resolution date of TSMC’s Board of Directors in its meeting |
, 2019 |
, 2019 |
, 2019 |
, 2020 |
||||||||||||
Special capital reserve |
$ | ( |
) | $ | ( |
) | $ | $ | ||||||||
Cash dividends to shareholders |
$ | $ | $ | $ | ||||||||||||
Cash dividends per share (NT$) |
$ | $ | $ | $ | ||||||||||||
First Quarter of 2020 |
Second Quarter of 2020 |
Third Quarter of 2020 |
Fourth Quarter of 2020 |
|||||||||||||
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
|||||||||||||
Resolution date of TSMC’s Board of Directors in its meeting |
, 2020 |
, 2020 |
10, 2020 |
, 2021 |
||||||||||||
Special capital reserve |
$ | ( |
) | $ | $ | $ | ||||||||||
Cash dividends to shareholders |
$ | $ | $ | $ | ||||||||||||
Cash dividends per share (NT$) |
$ | $ | $ | $ | ||||||||||||
First Quarter of 2021 |
Second Quarter of 2021 |
Third Quarter of 2021 |
Fourth Quarter of 2021 |
|||||||||||||
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
|||||||||||||
Resolution date of TSMC’s Board of Directors in its meeting |
, 2021 |
, 2021 |
, 2021 |
, 2022 |
||||||||||||
Special capital reserve |
$ | ( |
) | $ | $ | $ | ||||||||||
Cash dividends to shareholders |
$ | $ | $ | $ | ||||||||||||
Cash dividends per share (NT$) |
$ | $ | $ | $ | ||||||||||||
d. | Others |
Year Ended December 31, 2019 |
||||||||||||||||||||
Foreign Currency Translation Reserve |
Unrealized Gain (Loss) on Financial Assets at FVTOCI |
Gain (Loss) on Hedging Instruments |
Unearned Stock-Based Employee Compensation |
Total |
||||||||||||||||
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
||||||||||||||||
Balance, beginning of year |
$ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | ( |
) | |||||||
Exchange differences arising on translation of foreign operations |
( |
) | — | — | — | ( |
) | |||||||||||||
Unrealized gain (loss) on financial assets at FVTOCI |
||||||||||||||||||||
Equity instruments |
— | — | — | |||||||||||||||||
Debt instruments |
— | — | — | |||||||||||||||||
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal |
— | ( |
) | — | — | ( |
) | |||||||||||||
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal |
— | ( |
) | — | — | ( |
) | |||||||||||||
Loss allowance adjustments from debt instruments |
— | — | — | |||||||||||||||||
Gain (loss) arising on changes in the fair value of hedging instruments |
— | — | ( |
) | — | ( |
) | |||||||||||||
Other comprehensive income transferred to profit or loss due to disposal of subsidiary |
— | — | — | |||||||||||||||||
Transferred to initial carrying amount of hedged items |
— | — | — | |||||||||||||||||
Share of other comprehensive income (loss) of associates |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
Share of unearned stock-based employee compensation of associates |
— | — | — | |||||||||||||||||
Income tax effect |
— | — | — | |||||||||||||||||
Balance, end of year |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||
Year Ended December 31, 2020 |
||||||||||||||||||||
Foreign Currency Translation Reserve |
Unrealized Gain (Loss) on Financial Assets at FVTOCI |
Gain (Loss) on Hedging Instruments |
Unearned Stock-Based Employee Compensation |
Total |
||||||||||||||||
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
||||||||||||||||
Balance, beginning of year |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||
Exchange differences arising on translation of foreign operations |
( |
) | — | — | — | ( |
) | |||||||||||||
Unrealized gain (loss) on financial assets at FVTOCI |
||||||||||||||||||||
Equity instruments |
— | — | — | |||||||||||||||||
Debt instruments |
— | — | — | |||||||||||||||||
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal |
— | — | — | |||||||||||||||||
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal |
— | ( |
) | — | — | ( |
) | |||||||||||||
Loss allowance adjustments from debt instruments |
— | ( |
) | — | — | ( |
) | |||||||||||||
Gain (loss) arising on changes in the fair value of hedging instruments |
— | — | — | |||||||||||||||||
Transferred to initial carrying amount of hedged items |
— | — | ( |
) | — | ( |
) | |||||||||||||
Share of other comprehensive income (loss) of associates |
( |
) | — | ( |
) | |||||||||||||||
Share of unearned stock-based employee compensation of associates |
— | — | — | |||||||||||||||||
Income tax effect |
— | — | — | |||||||||||||||||
Balance, end of year |
$ | ( |
) | $ | $ | $ | $ | ( |
) | |||||||||||
Year Ended December 31, 2021 |
||||||||||||||||||||
Foreign Currency Translation Reserve |
Unrealized Gain (Loss) on Financial Assets at FVTOCI |
Gain (Loss) on Hedging Instruments |
Unearned Stock-Based Employee Compensation |
Total |
||||||||||||||||
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
NT$ (In Millions) |
||||||||||||||||
Balance, beginning of year |
$ | ( |
) | $ | $ | $ | $ | ( |
) | |||||||||||
Exchange differences arising on translation of foreign operations |
( |
) | — | — | — | ( |
) | |||||||||||||
Unrealized gain (loss) on financial assets at FVTOCI |
||||||||||||||||||||
Equity instruments |
— | — | — | |||||||||||||||||
Debt instruments |
— | ( |
) | — | — | ( |
) | |||||||||||||
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal |
— | ( |
) | — | — | ( |
) | |||||||||||||
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal |
— | ( |
) | — | — | ( |
) | |||||||||||||
Loss allowance adjustments from debt instruments |
— | — | — | |||||||||||||||||
Gain (loss) arising on changes in the fair value of hedging instruments |
— | — | — | |||||||||||||||||
Transferred to initial carrying amount of hedged items |
— | — | — | |||||||||||||||||
Share of other comprehensive income (loss) of associates |
( |
) | ( |
) | — | ( |
) | |||||||||||||
Income tax effect |
— | ( |
) | ( |
) | ( |
) | |||||||||||||
Balance, end of year |
$ | ( |
) | $ | $ | $ | — | $ | ( |
) | ||||||||||
e. | Treasury stock |
23. |
NET REVENUE |
a. | Disaggregation of revenue from contracts with customers |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
Product |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||
Wafer |
$ | $ | $ | |||||||||
Others |
||||||||||||
$ | $ | $ | ||||||||||
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
Geography |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||
Taiwan |
$ | $ | $ | |||||||||
United States |
||||||||||||
China |
||||||||||||
Europe, the Middle East and Africa |
||||||||||||
Japan |
||||||||||||
Others |
||||||||||||
$ | $ | $ | ||||||||||
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
Platform |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||
Smartphone |
$ | $ | $ | |||||||||
High Performance Computing |
||||||||||||
Internet of Things |
||||||||||||
Automotive |
||||||||||||
Digital Consumer Electronics |
||||||||||||
Others |
||||||||||||
$ | $ | $ | ||||||||||
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
Resolution |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||
5-nanometer |
$ | $ | $ | |||||||||
7-nanometer |
||||||||||||
10-nanometer |
||||||||||||
16-nanometer |
||||||||||||
20-nanometer |
||||||||||||
28-nanometer |
||||||||||||
40/45-nanometer |
||||||||||||
65-nanometer |
||||||||||||
90-nanometer |
||||||||||||
0.11/0.13 micron |
||||||||||||
0.15/0.18 micron |
||||||||||||
0.25 micron and above |
||||||||||||
|
|
|
|
|
|
|||||||
Wafer revenue |
$ | $ | $ | |||||||||
|
|
|
|
|
|
b. | Contract balances |
January 1, 2020 |
December 31, 2020 |
December 31, 2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Contract liabilities (classified under accrued expenses and other current liabilities) |
$ | $ | $ | |||||||||
|
|
|
|
|
|
c. | Temporary receipts from customers |
December 31, 2021 |
||||
NT$ |
||||
(In Millions) |
||||
Current portion (classified under accrued expenses and other current liabilities) |
$ | |||
Noncurrent portion (classified under other noncurrent liabilities) |
||||
|
|
|||
$ | ||||
|
|
d. | Refund liabilities |
24. |
INTEREST INCOME |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Interest income |
||||||||||||
Bank deposits |
$ | $ | $ | |||||||||
Financial assets at FVTPL |
— | |||||||||||
Financial assets at FVTOCI |
||||||||||||
Financial assets at amortized cost |
||||||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
25. |
FINANCE COSTS |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Interest expense |
||||||||||||
Corporate bonds |
$ | $ | $ | |||||||||
Lease liabilities |
||||||||||||
Bank loans |
||||||||||||
Others |
||||||||||||
|
|
|
|
|
|
|||||||
$ | $ | $ | ||||||||||
|
|
|
|
|
|
26. |
OTHER GAINS AND LOSSES, NET |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Gain on disposal of financial assets, net |
||||||||||||
Investments in debt instruments at FVTOCI |
$ | $ | $ | |||||||||
Loss on disposal of subsidiaries |
( |
) | — | — | ||||||||
Gain (loss) on financial instruments at FVTPL, net |
||||||||||||
Mandatorily measured at FVTPL |
( |
) | ( |
) | ||||||||
Gain arising from fair value hedges, net |
— | — |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
The reversal (accrual) of expected credit loss of financial assets |
||||||||||||
Investments in debt instruments at FVTOCI |
$ | ( |
) | $ | $ | ( |
) | |||||
Financial assets at amortized cost |
( |
) | ||||||||||
Other gains, net |
||||||||||||
|
|
|
|
|
|
|||||||
$ | ( |
) | $ | $ | ( |
) | ||||||
|
|
|
|
|
|
27. |
INCOME TAX |
a. | Income tax expense recognized in profit or loss |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Current income tax expense |
||||||||||||
Current tax expense recognized in the current year |
$ | $ | $ | |||||||||
Income tax adjustments on prior years |
( |
) | ( |
) | ( |
) | ||||||
Other income tax adjustments |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
Deferred income tax benefit |
||||||||||||
The origination and reversal of temporary differences |
( |
) | ( |
) | ( |
) | ||||||
Investment tax credits |
— | — | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
( |
) | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Income tax expense recognized in profit or loss |
$ | $ | $ | |||||||||
|
|
|
|
|
|
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Income before tax |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Income tax expense at the statutory rate |
$ | $ | $ | |||||||||
Tax effect of adjusting items: |
||||||||||||
Nondeductible (deductible) items in determining taxable income |
( |
) | ||||||||||
Tax-exempt income |
( |
) | ( |
) | ( |
) | ||||||
Additional income tax under the Alternative Minimum Tax Act |
||||||||||||
Additional income tax on unappropriated earnings |
||||||||||||
The origination and reversal of temporary differences |
( |
) | ( |
) | ( |
) | ||||||
Income tax credits |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Income tax adjustments on prior years |
( |
) | ( |
) | ( |
) | ||||||
Other income tax adjustments |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Income tax expense recognized in profit or loss |
$ | $ | $ | |||||||||
|
|
|
|
|
|
b. | Income tax expense recognized in other comprehensive income |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Deferred income tax benefit (expense) |
||||||||||||
Related to remeasurement of defined benefit obligation |
$ | ( |
) | $ | $ | ( |
) | |||||
Related to unrealized gain/loss on investments in equity instruments at FVTOCI |
( |
) | ||||||||||
Related to gain/loss on cash flow hedges |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
$ | ( |
) | $ | $ | ( |
) | ||||||
|
|
|
|
|
|
c. | Deferred income tax balance |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Deferred income tax assets |
||||||||
Temporary differences |
||||||||
Depreciation |
$ | $ | ||||||
Refund liability |
||||||||
Investment tax credits |
— | |||||||
Net defined benefit liability |
||||||||
Unrealized loss on inventories |
||||||||
Deferred compensation cost |
||||||||
Investments in equity instruments at FVTOCI |
||||||||
Others |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
|||||
Deferred income tax liabilities |
||||||||
Temporary differences |
||||||||
Unrealized exchange gains |
$ | ( |
) | $ | ( |
) | ||
Others |
( |
) | ( |
) | ||||
|
|
|
|
|||||
$ | ( |
) | $ | ( |
) | |||
|
|
|
|
Year Ended December 31, 2019 |
||||||||||||||||||||
Recognized in |
||||||||||||||||||||
Balance, Beginning of Year |
Profit or Loss |
Other Comprehensive Income |
Effect of Exchange Rate Changes |
Balance, End of Year |
||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||||||
Deferred income tax assets |
||||||||||||||||||||
Temporary differences |
||||||||||||||||||||
Depreciation |
$ | $ | $ | — | $ | ( |
) | $ | ||||||||||||
Refund liability |
( |
) | — | ( |
) | |||||||||||||||
Net defined benefit liability |
( |
) | ( |
) | — | |||||||||||||||
Unrealized loss on inventories |
( |
) | — | ( |
) | |||||||||||||||
Deferred compensation cost |
— | ( |
) | |||||||||||||||||
Investments in equity instruments at FVTOCI |
— | |||||||||||||||||||
Others |
— | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Deferred income tax liabilities |
||||||||||||||||||||
Temporary differences |
||||||||||||||||||||
Unrealized exchange gains |
$ | ( |
) | $ | ( |
) | $ | — | $ | — | $ | ( |
) | |||||||
Others |
( |
) | — | — | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | ( |
) | $ | ( |
) | $ | — | $ | — | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2020 |
||||||||||||||||||||
Recognized in |
||||||||||||||||||||
Balance, Beginning of Year |
Profit or Loss |
Other Comprehensive Income |
Effect of Exchange Rate Changes |
Balance, End of Year |
||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||||||
Deferred income tax assets |
||||||||||||||||||||
Temporary differences |
||||||||||||||||||||
Depreciation |
$ | $ | $ | — | $ | ( |
) | $ | ||||||||||||
Refund liability |
— | ( |
) | |||||||||||||||||
Net defined benefit liability |
( |
) | — | |||||||||||||||||
Unrealized loss on inventories |
— | ( |
) | |||||||||||||||||
Deferred compensation cost |
— | ( |
) | |||||||||||||||||
Investments in equity instruments at FVTOCI |
— | — | ||||||||||||||||||
Others |
( |
) | — | ( |
) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | $ | $ | $ | ( |
) | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Deferred income tax liabilities |
||||||||||||||||||||
Temporary differences |
||||||||||||||||||||
Unrealized exchange gains |
$ | ( |
) | $ | ( |
) | $ | — | $ | — | $ | ( |
) | |||||||
Others |
( |
) | ( |
) | — | — | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | ( |
) | $ | ( |
) | $ | — | $ | — | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year Ended December 31, 2021 |
||||||||||||||||||||
Recognized in |
||||||||||||||||||||
Balance, Beginning of Year |
Profit or Loss |
Other Comprehensive Income |
Effect of Exchange Rate Changes |
Balance, End of Year |
||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||||||
Deferred income tax assets |
||||||||||||||||||||
Temporary differences |
||||||||||||||||||||
Depreciation |
$ | $ | $ | — | $ | $ | ||||||||||||||
Refund liability |
— | ( |
) | |||||||||||||||||
Investment tax credits |
— | — | — | |||||||||||||||||
Net defined benefit liability |
( |
) | ( |
) | — | |||||||||||||||
Unrealized loss on inventories |
— | ( |
) | |||||||||||||||||
Deferred compensation cost |
— | ( |
) | |||||||||||||||||
Investments in equity instruments at FVTOCI |
— | ( |
) | — | ||||||||||||||||
Others |
— | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Deferred income tax liabilities |
||||||||||||||||||||
Temporary differences |
||||||||||||||||||||
Unrealized exchange gains |
$ | ( |
) | $ | $ | — | $ | — | $ | ( |
) | |||||||||
Others |
( |
) | ( |
) | ( |
) | — | ( |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | — | $ | ( |
) | |||||||
|
|
|
|
|
|
|
|
|
|
d. | The deductible temporary differences for which no deferred income tax assets have been recognized |
e. | Unused tax-exemption information |
Tax-exemption Period | ||
Construction and expansion of 2009 by TSMC |
f. | The information of unrecognized deferred income tax liabilities associated with investments |
g. | Income tax examination |
28. |
EARNINGS PER SHARE |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(NT$) |
(NT$) |
(NT$) |
||||||||||
Basic EPS |
$ | $ | $ | |||||||||
Diluted EPS |
$ | |
$ | |
$ | |
||||||
Amounts (Numerator) NT$ (In Millions) |
Number of Shares (Denominator) (In Millions) |
EPS (NT$) |
||||||||||
Year Ended December 31, 2019 |
||||||||||||
Basic/Diluted EPS |
||||||||||||
Net income available to common shareholders of the parent |
$ | $ | ||||||||||
Year Ended December 31, 2020 |
||||||||||||
Basic/Diluted EPS |
||||||||||||
Net income available to common shareholders of the parent |
$ | $ | ||||||||||
Year Ended December 31, 2021 |
||||||||||||
Basic/Diluted EPS |
||||||||||||
Net income available to common shareholders of the parent |
$ | $ | ||||||||||
29. |
SHARE-BASED PAYMENT ARRANGEMENTS |
a. | Employee restricted stock awards |
1) | The RSAs granted to a key management personnel can only be vested if |
• | the key management personnel remains employed by TSMC on the last date of each vesting period; |
• | during the vesting period, the key management personnel may not breach any agreement with the TSMC or violate the TSMC’s work rules; and |
• | certain key management personnel performance metrics and the TSMC’s business performance metrics are met. |
2) | The maximum percentage of granted RSAs that may be vested each year shall be as follows: one-year anniversary of the grant: two-year anniversary of the grant: |
3) | The maximum number of RSAs that may be vested in each year will be set as |
TSMC’s TSR relative to the TSR of S&P 500 IT Index |
Ratio of Shares to be Vested | |
Above the Index by X percentage points | ||
Equal to the Index | ||
Below the Index by X percentage points |
1) | During each vesting period, no key management personnel granted RSAs, except for inheritance, may sell, pledge, transfer, give to another person, create any encumbrance on, or otherwise dispose of, any shares under the unvested RSAs. |
2) | Before the vesting conditions are fulfilled, the attendance, proposal rights, speech rights, voting rights and etc. shall be exercised by the engaged trustee/custodian on the key management personnel’s behalf. Any other shareholder rights including but not limited to the entitlement to any distribution regarding dividends, bonuses and capital reserve, and the subscription right of the new shares issued for any capital increase, are the same as those of holders of common shares of TSMC. |
3) | Granted RSAs shall be deposited in a trust/custody account. |
b. | Cash-settled share-based payment arrangements |
30. |
ADDITIONAL INFORMATION OF EXPENSES BY NATURE |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
a. Depreciation of property, plant and equipment and right-of-use |
||||||||||||
Recognized in cost of revenue |
$ | $ | $ | |||||||||
Recognized in operating expenses |
||||||||||||
Recognized in other operating income and expenses |
||||||||||||
$ | $ | $ | ||||||||||
b. Amortization of intangible assets |
||||||||||||
Recognized in cost of revenue |
$ | $ | $ | |||||||||
Recognized in operating expenses |
||||||||||||
$ | $ | $ | ||||||||||
c. Employee benefits expenses |
||||||||||||
Post-employment benefits |
||||||||||||
Defined contribution plans |
$ | $ | $ | |||||||||
Defined benefit plans |
||||||||||||
Other employee benefits |
||||||||||||
$ | $ | $ | ||||||||||
Employee benefits expense summarized by function |
||||||||||||
Recognized in cost of revenue |
$ | $ | $ | |||||||||
Recognized in operating expenses |
||||||||||||
$ | $ | $ | ||||||||||
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Profit sharing bonus to employees |
$ | |
$ | |
$ | |
||||||
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Resolution Date of TSMC’s Board of Directors in its meeting |
February 11, 2020 |
February 9, 2021 |
February 15, 2022 |
|||||||||
Profit sharing bonus to employees |
$ | |
$ | |
$ | |
||||||
Compensation to directors |
$ | $ | $ | |||||||||
31. |
CASH FLOW INFORMATION |
a. | Non-cash transactions |
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Additions of financial assets at FVTOCI |
$ | |
$ | |
$ | |
||||||
Conversion of convertible bonds into equity securities |
( |
) | ||||||||||
Exchange of equity instruments |
— | — | ( |
) | ||||||||
Changes in accrued expenses and other current liabilities |
( |
) | ( |
) | ||||||||
Payments for acquisition of financial assets at FVTOCI |
$ | $ | $ | |||||||||
Disposal of financial assets at FVTOCI |
$ | $ | $ | |||||||||
Changes in other financial assets |
( |
) | ||||||||||
Exchange of equity instruments |
— | — | ( |
) | ||||||||
Proceeds from disposal of financial assets at FVTOCI |
$ | $ | $ | |||||||||
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Additions of property, plant and equipment |
$ | |
$ | |
$ | |||||||
Changes in other financial assets |
||||||||||||
Exchange of assets |
( |
) | ( |
) | ( |
) | ||||||
Changes in payables to contractors and equipment suppliers |
( |
) | ( |
|||||||||
Transferred to initial carrying amount of hedged items |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Payments for acquisition of property, plant and equipment |
$ | $ | $ | |
||||||||
|
|
|
|
|
|
|||||||
Additions of intangible assets |
$ | $ | $ | |||||||||
Changes in other financial assets |
||||||||||||
Changes in account payable |
||||||||||||
Changes in accrued expenses and other current liabilities |
— | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Payments for acquisition of intangible assets |
$ | $ | $ | |||||||||
|
|
|
|
|
|
b. | Reconciliation of liabilities arising from financing activities |
Non-cash changes |
||||||||||||||||||||||||
Balance as of January 1, 2019 |
Financing Cash Flow |
Foreign Exchange Movement |
Leases Modifications |
Other Changes (Note) |
Balance as of December 31, 2019 |
|||||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
|||||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||||||||||||
Short-term loans |
$ | $ | $ | ( |
) | $ | — | $ | — | $ | ||||||||||||||
Bonds payable |
( |
) | — | — | — | |||||||||||||||||||
Lease liabilities |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | $ | ( |
) | $ | ( |
) | $ | $ | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash changes |
||||||||||||||||||||||||
Balance as of January 1, 2020 |
Financing Cash Flow |
Foreign Exchange Movement |
Leases Modifications |
Other Changes (Note) |
Balance as of December 31, 2020 |
|||||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
|||||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||||||||||||
Short-term loans |
$ | $ | ( |
) | $ | $ | — | $ | — | $ | ||||||||||||||
Bonds payable |
( |
) | — | |||||||||||||||||||||
Long-term bank loans |
— | — | — | ( |
) | |||||||||||||||||||
Lease liabilities |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash changes |
||||||||||||||||||||||||
Balance as of January 1, 2021 |
Financing Cash Flow |
Foreign Exchange Movement |
Leases Modifications |
Other Changes (Note) |
Balance as of December 31, 2021 |
|||||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
|||||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||||||||||||
Short-term loans |
$ | $ | $ | ( |
) | $ | — | $ | ( |
) | $ | |||||||||||||
Bonds payable |
( |
) | — | |||||||||||||||||||||
Long-term bank loans |
— | — | ( |
) | ||||||||||||||||||||
Lease liabilities |
( |
) | ( |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | $ | $ | ( |
) | $ | $ | ( |
) | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Note: | Other changes include discounts on short-term loans, amortization of bonds payable, amortization of long-term bank loan interest subsidy and financial cost of lease liabilities. |
32. |
CAPITAL MANAGEMENT |
33. |
FINANCIAL INSTRUMENTS |
a. | Categories of financial instruments |
December 31, 2020 |
December 31, 2021 |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Financial assets |
||||||||
FVTPL (Note 1) |
$ | $ | ||||||
FVTOCI (Note 2) |
||||||||
Hedging financial assets |
||||||||
Amortized cost (Note 3) |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
|||||
Financial liabilities |
||||||||
FVTPL (Note 4) |
$ | $ | ||||||
Hedging financial liabilities |
||||||||
Amortized cost (Note 5) |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
Note 1: | Financial assets mandatorily measured at FVTPL. | |
Note 2: | Including notes and accounts receivable (net), equity and debt investments. | |
Note 3: | Including cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable (including related parties), other receivables and refundable deposits. | |
Note 4: | Held for trading. |
Note 5: | Including short-term loans, accounts payable (including related parties), payables to contractors and equipment suppliers, cash dividends payable, accrued expenses and other current liabilities, bonds payable, long-term bank loans, guarantee deposits and other noncurrent liabilities. |
b. | Financial risk management objectives |
c. | Market risk |
d. | Credit risk management |
Category |
Description |
Basis for Recognizing Expected Credit Loss |
Expected Credit Loss Ratio |
|||||
Performing |
|
|
% | |||||
Doubtful |
— | |||||||
In default |
|
|
— | |||||
Write-off |
|
|
— |
e. | Liquidity risk management |
Less Than 1 Year |
1-3 Years |
3-5 Years |
More Than 5 Years |
Total |
||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||||||
December 31, 2020 |
||||||||||||||||||||
Non-derivative financial liabilities |
||||||||||||||||||||
Short-term loans |
$ | $ | — | $ | — | $ | — | $ | ||||||||||||
Accounts payable (including related parties) |
— | — | — | |||||||||||||||||
Payables to contractors and equipment suppliers |
— | — | — | |||||||||||||||||
Accrued expenses and other current liabilities |
— | — | — | |||||||||||||||||
Bonds payable |
||||||||||||||||||||
Long-term bank loans |
— | |||||||||||||||||||
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Derivative financial instruments |
||||||||||||||||||||
Forward exchange contracts |
||||||||||||||||||||
Outflows |
— | — | — | |||||||||||||||||
Inflows |
( |
) | — | — | — | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
( |
) | — | — | — | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Less Than 1 Year |
1-3 Years |
3-5 Years |
More Than 5 Years |
Total |
||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||||||
December 31, 2021 |
||||||||||||||||||||
Non-derivative financial liabilities |
||||||||||||||||||||
Short-term loans |
$ | $ | — | $ | — | $ | — | $ | ||||||||||||
Accounts payable (including related parties) |
— | — | — | |||||||||||||||||
Payables to contractors and equipment suppliers |
— | — | — | |||||||||||||||||
Accrued expenses and other current liabilities |
— | — | — | |||||||||||||||||
Bonds payable |
||||||||||||||||||||
Long-term bank loans |
— | |||||||||||||||||||
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note) |
||||||||||||||||||||
Others |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Derivative financial instruments |
||||||||||||||||||||
Forward exchange contracts |
||||||||||||||||||||
Outflows |
— | — | — | |||||||||||||||||
Inflows |
( |
) | — | — | — | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
— | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | $ | $ | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
5-10 Years |
10-15 Years |
15-20 Years |
More Than 20 Years |
Total |
||||||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
NT$ |
||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||||||
December 31, 2020 |
||||||||||||||||||||
Lease liabilities |
$ | $ | $ | $ | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
December 31, 2021 |
||||||||||||||||||||
Lease liabilities |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||
|
|
|
|
|
|
|
|
|
|
f. | Fair value of financial instruments |
1) | Fair value measurements recognized in the consolidated statements of financial position |
• | Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; |
• | Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and |
• | Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
2) | Fair value of financial instruments that are measured at fair value on a recurring basis |
December 31, 2020 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
|||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||||||
Financial assets at FVTPL |
||||||||||||||||
Mandatorily measured at FVTPL |
||||||||||||||||
Forward exchange contracts |
$ | — | $ | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Financial assets at FVTOCI |
||||||||||||||||
Investments in debt instruments |
||||||||||||||||
Corporate bonds |
$ | — | $ | $ | — | $ | ||||||||||
Agency bonds/Agency mortgage-backed securities |
— | — | ||||||||||||||
Government bonds |
— | |||||||||||||||
Asset-backed securities |
— | — | ||||||||||||||
Investments in equity instruments |
||||||||||||||||
Non-publicly traded equity investments |
— | |||||||||||||||
Publicly traded stocks |
— | — | ||||||||||||||
Notes and accounts receivable, net |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Hedging financial assets |
||||||||||||||||
Fair value hedges |
||||||||||||||||
Interest rate futures contracts |
$ | $ | — | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Financial liabilities at FVTPL |
||||||||||||||||
Held for trading |
||||||||||||||||
Forward exchange contracts |
$ | — | $ | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Hedging financial liabilities |
||||||||||||||||
Fair value hedges |
||||||||||||||||
Interest rate futures contracts |
$ | $ | — | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
December 31, 2021 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
|||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||||||
Financial assets at FVTPL |
||||||||||||||||
Mandatorily measured at FVTPL |
||||||||||||||||
Forward exchange contracts |
$ | — | $ | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
December 31, 2021 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
NT$ |
NT$ |
NT$ |
NT$ |
|||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
(In Millions) |
|||||||||||||
Financial assets at FVTOCI |
||||||||||||||||
Investments in debt instruments |
||||||||||||||||
Corporate bonds |
$ | — | $ | $ | — | $ | ||||||||||
Agency bonds/Agency mortgage-backed securities |
— | — | ||||||||||||||
Government bonds |
— | |||||||||||||||
Asset-backed securities |
— | — | ||||||||||||||
Investments in equity instruments |
||||||||||||||||
Non-publicly traded equity investments |
— | — | ||||||||||||||
Publicly traded stocks |
— | — | ||||||||||||||
Notes and accounts receivable, net |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Hedging financial assets |
||||||||||||||||
Cash flow hedges |
||||||||||||||||
Forward interest rate contracts |
$ | — | $ | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Financial liabilities at FVTPL |
||||||||||||||||
Held for trading |
||||||||||||||||
Forward exchange contracts |
$ | — | $ | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Hedging financial liabilities |
||||||||||||||||
Fair value hedges |
||||||||||||||||
Interest rate futures contracts |
$ | $ | — | $ | — | $ | ||||||||||
|
|
|
|
|
|
|
|
Years Ended December 31 |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
NT$ |
NT$ |
NT$ |
||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||
Balance, beginning of year |
$ | $ | $ | |||||||||
Additions |
||||||||||||
Recognized in profit or loss |
— | ( |
) | — | ||||||||
Recognized in other comprehensive income or loss |
||||||||||||
Disposals and proceeds from return of capital of investments |
( |
) | ( |
) | ( |
) | ||||||
Transfers out of level 3 (Note) |
( |
) | — | — | ||||||||
Effect of exchange rate changes |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Balance, end of year |
$ | $ | $ | |||||||||
|
|
|
|
|
|
• | The fair values of corporate bonds, agency bonds, agency mortgage-backed securities, asset-backed securities and government bonds are determined by quoted market prices provided by third party pricing services. |
• | The fair values of forward contracts are measured using forward rates and discount rates derived from quoted market prices. |
• | The fair value of accounts receivable classified as at FVTOCI is determined by the present value of future cash flows based on the discount rate that reflects the credit risk of counterparties. |
3) | Fair value of financial instruments that are not measured at fair value |
December 31, 2020 |
||||||||
Carrying |
Level 2 |
|||||||
Amount |
Fair Value |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Financial assets |
||||||||
Financial assets at amortized costs |
||||||||
Corporate bonds |
$ | $ | ||||||
|
|
|
|
|||||
Financial liabilities |
||||||||
Financial liabilities at amortized costs |
||||||||
Bonds payable |
$ | $ | ||||||
|
|
|
|
December 31, 2021 |
||||||||
Carrying |
Level 2 |
|||||||
Amount |
Fair Value |
|||||||
NT$ |
NT$ |
|||||||
(In Millions) |
(In Millions) |
|||||||
Financial assets |
||||||||
Financial assets at amortized costs |
||||||||
Corporate bonds |
$ | $ | ||||||
|
|
|
|
|||||
Financial liabilities |
||||||||
Financial liabilities at amortized costs |
||||||||
Bonds payable |
$ | $ | ||||||
|
|
|
|
34. |
RELATED PARTY TRANSACTIONS |
a. | Related party name and categories |
Related Party Name |
Related Party Categories | |
GUC | Associates | |
VIS | Associates | |
SSMC | Associates | |
Xintec | Associates | |
TSMC Education and Culture Foundation | Other related parties | |
TSMC Charity Foundation | Other related parties |
b. | Net revenue |
Years Ended December 31 |
||||||||||||||
2019 |
2020 |
2021 |
||||||||||||
NT$ |
NT$ |
NT$ |
||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||
Item |
Related Party Categories |
|||||||||||||
Net revenue from sale of goods |
Associates | $ | $ | $ | ||||||||||
|
|
|
|
|
|
c. | Purchases |
Years Ended December 31 |
||||||||||||||
2019 |
2020 |
2021 |
||||||||||||
NT$ |
NT$ |
NT$ |
||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||
Related Party Categories |
||||||||||||||
Associates |
$ | $ | $ | |||||||||||
|
|
|
|
|
|
d. | Receivables from related |
December 31, 2020 |
December 31, 2021 |
|||||||||
NT$ |
NT$ |
|||||||||
(In Millions) |
(In Millions) |
|||||||||
Item |
Related Party Name/Categories |
|||||||||
Receivables from related |
GUC | $ | |
$ | ||||||
parties |
Xintec | |||||||||
|
|
|
|
|||||||
$ | $ | |
||||||||
|
|
|
|
|||||||
Other receivables from related |
SSMC | $ | $ | |||||||
parties |
VIS | |||||||||
Other associates | — | |||||||||
|
|
|
|
|||||||
$ | $ | |||||||||
|
|
|
|
e. | Payables to related parties |
December 31, 2020 |
December 31, 2021 |
|||||||||
NT$ |
NT$ |
|||||||||
(In Millions) |
(In Millions) |
|||||||||
Item |
Related Party Name/Categories |
|||||||||
Payables to related parties |
Xintec | $ | $ | |||||||
VIS | ||||||||||
SSMC | ||||||||||
Other associates | ||||||||||
|
|
|
|
|||||||
$ | $ | |||||||||
|
|
|
|
f. | Accrued expenses and other current liabilities |
December 31, 2020 |
December 31, 2021 |
|||||||||
NT$ |
NT$ |
|||||||||
(In Millions) |
(In Millions) |
|||||||||
Item |
Related Party Categories |
|||||||||
Contract liabilities |
Associates | $ | — | $ | |
|||||
|
|
|
|
g. | Others |
Years Ended December 31 |
||||||||||||||
2019 |
2020 |
2021 |
||||||||||||
NT$ |
NT$ |
NT$ |
||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||
Item |
Related Party Categories |
|||||||||||||
Manufacturing expenses |
Associates | $ | $ | $ | ||||||||||
|
|
|
|
|
|
h. | Compensation of key management personnel |
Years Ended December 31 |
||||||||||||||
2019 |
2020 |
2021 |
||||||||||||
NT$ |
NT$ |
NT$ |
||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||
Short-term employee benefits |
|
$ | $ | $ | ||||||||||
Post-employment benefits |
||||||||||||||
|
|
|
|
|
|
|||||||||
$ | $ | $ | ||||||||||||
|
|
|
|
|
|
35. |
PLEDGED ASSETS |
36. |
SIGNIFICANT CONTINGENT LIABILITIES AND |
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 |
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 Singapore. TSMC’s equity interest in SSMC was spun-off its semiconductor subsidiary which was renamed as NXP B.V. Further, TSMC and NXP B.V. purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, TSMC and NXP B.V. currently own approximately |
c. | TSMC entered into long-term purchase agreements of materials and supplies and agreements of waste disposal with multiple suppliers. The relative minimum fulfillment quantity and price are specified in the agreements. |
d. | TSMC entered into a long-term purchase agreement of equipment. The relative fulfillment quantity and price are specified in the agreement. |
e. | TSMC entered into long-term energy purchase agreements with multiple suppliers. The relative fulfillment period, quantity and price are specified in the agreements. |
f. | Amounts available under unused letters of credit as of December 31, 2020 and 2021 were NT$ |
37. |
SIGNIFICANT OPERATION LOSSES |
38. |
OPERATING SEGMENTS INFORMATION |
a. | Operating segments, segment revenue and operating results |
b. | Geographic and major customers’ information were as follows: |
1) | Geographic information |
December 31, |
December 31, |
|||||||
2020 |
2021 |
|||||||
Noncurrent Assets |
NT$ (In Millions) |
NT$ (In Millions) |
||||||
Taiwan |
$ | $ | ||||||
United States |
||||||||
China |
||||||||
Europe, the Middle East and Africa |
||||||||
Japan |
||||||||
Others |
||||||||
|
|
|
|
|||||
$ | $ | |||||||
|
|
|
|
2) | Major customers representing at least 10% of net revenue |
Years Ended December 31 |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Amount |
% |
Amount |
% |
Amount |
% |
|||||||||||||||||||
NT$ |
NT$ |
NT$ |
||||||||||||||||||||||
(In Millions) |
(In Millions) |
(In Millions) |
||||||||||||||||||||||
Customer A |
$ | $ | $ | |||||||||||||||||||||
Customer B |
NA (Note) | NA | NA | NA | ||||||||||||||||||||
Customer C |
NA | NA |
Note: | Revenue less than 10% of the Company’s net revenue. |