English Translation of Financial Statements Originally Issued in Chinese

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

Consolidated Financial Statements for the

Six Months Ended June 30, 2021 and 2020 and

Independent Auditors’ Review Report

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勤業眾信

勤業眾信聯合會計師事務所

11073 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 11073, Taiwan

Tel :+886 (2) 2725-9988

Fax:+886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders

Taiwan Semiconductor Manufacturing Company Limited

Introduction

We have reviewed the accompanying consolidated balance sheets of Taiwan Semiconductor Manufacturing Company Limited and its subsidiaries (collectively, the “Company”) as of June 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended June 30, 2021 and 2020 and for the six months ended June 30, 2021 and 2020, of changes in equity, and of cash flows for the six months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects the consolidated financial position of the Company as of June 30, 2021 and 2020, its consolidated financial performance for the three months ended June 30, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the six months then ended June 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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The engagement partners on the reviews resulting in this independent auditors’ review report are Mei Yen Chiang and Shang Chih Lin.

Deloitte & Touche

Taipei, Taiwan

Republic of China

August 10, 2021

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

	June 30, 2021 (Reviewed)							December 31, 2020 (Audited)							June 30, 2020 (Reviewed)
ASSETS	Amount				%			Amount				%			Amount				%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$		747,982,082			24		$		660,170,647			24		$		467,613,443			19
Financial assets at fair value through profit or loss (Note 7)		58,325				-			2,259,412				-			788,526				-
Financial assets at fair value through other comprehensive income (Note 8)		122,794,529				4			122,448,453				5			129,403,588				5
Financial assets at amortized cost (Note 9)		-				-			6,597,992				-			7,210,148				-
Hedging financial assets (Note 10)		310				-			47				-			-				-
Notes and accounts receivable, net (Note 11)		177,475,493				6			145,480,272				5			148,708,055				6
Receivables from related parties (Note 31)		784,397				-			558,131				-			891,691				-
Other receivables from related parties (Note 31)		1,711,652				-			50,645				-			2,581,070				-
Inventories (Note 12)		170,438,686				6			137,353,407				5			85,788,094				4
Other financial assets (Note 32)		12,450,123				-			10,676,111				1			10,436,627				1
Other current assets		7,408,426				-			6,590,191				-			6,610,338				-
Total current assets		1,241,104,023				40			1,092,185,308				40			860,031,580				35
NONCURRENT ASSETS
Financial assets at fair value through other comprehensive income (Note 8)		5,389,958				-			4,514,940				-			4,300,519				-
Financial assets at amortized cost (Note 9)		4,336,636				-			4,372,207				-			1,640,558				-
Investments accounted for using equity method (Note 13)		19,336,878				1			18,841,061				1			16,975,748				1
Property, plant and equipment (Note 14)		1,722,679,133				56			1,555,589,120				56			1,493,560,950				61
Right-of-use assets (Note 15)		32,619,272				1			27,728,382				1			21,036,894				1
Intangible assets (Note 16)		26,535,043				1			25,768,179				1			27,395,600				1
Deferred income tax assets (Note 4)		36,180,371				1			25,958,184				1			20,493,373				1
Refundable deposits		2,513,142				-			1,343,001				-			1,502,926				-
Other noncurrent assets		2,120,733				-			4,411,023				-			1,726,374				-
Total noncurrent assets		1,851,711,166				60			1,668,526,097				60			1,588,632,942				65
TOTAL	$		3,092,815,189			100		$		2,760,711,405			100		$		2,448,664,522			100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans (Notes 17 and 29)	$		139,380,910			5		$		88,559,026			3		$		169,546,950			7
Short-term bills payable (Notes 18 and 29)		-				-			-				-			6,493,398				-
Financial liabilities at fair value through profit or loss (Note 7)		1,828,338				-			94,128				-			1,543,265				-
Hedging financial liabilities (Note 10)		10,216				-			1,169				-			14,839				-
Accounts payable		39,725,757				1			38,987,284				1			38,100,739				2
Payables to related parties (Note 31)		1,504,156				-			2,107,718				-			1,433,005				-
Salary and bonus payable		17,148,913				1			20,071,241				1			14,747,716				1
Accrued profit sharing bonus to employees and compensation to directors and supervisors (Note 28)		52,328,940				2			35,681,046				1			40,028,506				2
Payables to contractors and equipment suppliers		107,146,153				3			157,804,961				6			97,739,201				4
Cash dividends payable (Note 21)		136,134,497				4			129,651,902				5			129,651,902				5
Income tax payable (Note 4)		40,022,662				1			53,909,313				2			33,020,177				1
Long-term liabilities - current portion (Notes 19 and 29)		-				-			2,600,000				-			12,800,000				1
Accrued expenses and other current liabilities (Notes 15, 22, 29 and 31)		112,518,405				4			87,683,260				3			69,676,030				3
Total current liabilities		647,748,947				21			617,151,048				22			614,795,728				26
NONCURRENT LIABILITIES
Bonds payable (Notes 19 and 29)		410,464,857				13			254,105,084				9			82,439,681				3
Long-term bank loans (Notes 20 and 29)		3,171,331				-			1,967,611				-			-				-
Deferred income tax liabilities (Note 4)		2,142,797				-			1,729,941				-			354,306				-
Lease liabilities (Notes 15 and 29)		21,030,441				1			20,560,649				1			19,164,873				1
Net defined benefit liability (Note 4)		11,285,520				1			11,914,074				1			8,381,192				-
Guarantee deposits		392,398				-			265,599				-			171,622				-
Others		2,608,325				-			2,395,400				-			2,143,738				-
Total noncurrent liabilities		451,095,669				15			292,938,358				11			112,655,412				4
Total liabilities		1,098,844,616				36			910,089,406				33			727,451,140				30
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
Capital stock (Note 21)		259,303,805				8			259,303,805				9			259,303,805				11
Capital surplus (Note 21)		64,753,836				2			56,347,243				2			56,339,981				2
Retained earnings (Note 21)
Appropriated as legal capital reserve		311,146,899				10			311,146,899				11			311,146,899				13
Appropriated as special capital reserve		48,392,823				2			42,259,146				2			24,873,338				1
Unappropriated earnings		1,366,782,481				44			1,235,280,036				45			1,105,471,753				45
		1,726,322,203				56			1,588,686,081				58			1,441,491,990				59
Others (Note 21)		(58,594,043		)		(2	)		(54,679,873		)		(2	)		(36,757,795		)		(2	)
Equity attributable to shareholders of the parent		1,991,785,801				64			1,849,657,256				67			1,720,377,981				70
NON - CONTROLLING INTERESTS		2,184,772				-			964,743				-			835,401				-
Total equity		1,993,970,573				64			1,850,621,999				67			1,721,213,382				70
TOTAL	$		3,092,815,189			100		$		2,760,711,405			100		$		2,448,664,522			100

The accompanying notes are an integral part of the consolidated financial statements.

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

(Reviewed, Not Audited)

	For the Three Months Ended June 30														For the Six Months Ended June 30
	2021							2020							2021						2020
	Amount				%			Amount				%			Amount				%		Amount				%
NET REVENUE (Notes 22, 31 and 36)	$		372,145,122			100		$		310,698,367			100		$		734,555,352			100	$		621,295,550			100
COST OF REVENUE (Notes 12, 28 and 31)		185,910,987				50			146,005,542				47			358,545,998				49		295,818,544				48
GROSS PROFIT BEFORE REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO ASSOCIATES		186,234,135				50			164,692,825				53			376,009,354				51		325,477,006				52
REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO ASSOCIATES		(37,317		)		-			(69,034		)		-			26,894				-		(76,707		)		-
GROSS PROFIT		186,196,818				50			164,623,791				53			376,036,248				51		325,400,299				52
OPERATING EXPENSES (Notes 28 and 31)
Research and development		30,873,376				8			24,893,043				8			61,629,734				8		49,861,926				8
General and administrative		7,826,613				2			6,894,405				2			14,350,858				2		12,797,466				2
Marketing		1,883,434				1			1,733,261				1			3,714,664				1		3,184,363				-
Total operating expenses		40,583,423				11			33,520,709				11			79,695,256				11		65,843,755				10
OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14, 15 and 28)		53,810				-			(8,544		)		-			(135,597		)		-		59,631				-
INCOME FROM OPERATIONS (Note 36)		145,667,205				39			131,094,538				42			296,205,395				40		259,616,175				42
NON-OPERATING INCOME AND EXPENSES
Share of profits of associates		1,171,888				-			678,757				-			2,439,000				-		1,404,725				-
Interest income (Note 23)		1,428,681				1			2,478,362				1			2,889,585				-		5,467,431				1
Other income		349,186				-			233,415				-			657,270				-		343,924				-
Foreign exchange gain, net (Note 34)		649,882				-			2,779,312				1			6,123,871				1		3,155,103				-
Finance costs (Note 24)		(1,134,399		)		-			(409,145		)		-			(1,906,494		)		-		(939,709		)		-
Other gains and losses, net (Note 25)		1,258,632				-			(456,601		)		-			(1,953,163		)		-		(501,833		)		-
Total non-operating income and expenses		3,723,870				1			5,304,100				2			8,250,069				1		8,929,641				1
INCOME BEFORE INCOME TAX		149,391,075				40			136,398,638				44			304,455,464				41		268,545,816				43
INCOME TAX EXPENSE (Notes 4 and 26)		14,909,359				4			15,506,124				5			30,234,999				4		30,590,409				5
NET INCOME		134,481,716				36			120,892,514				39			274,220,465				37		237,955,407				38
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 21 and 26)
Items that will not be reclassified subsequently to profit or loss:
Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income		926,525				-			22,337				-			817,336				-		(21,710		)		-
Loss on hedging instruments		-				-			-				-			(41,416		)		-		(42,749		)		-
Share of other comprehensive income (loss) of associates		(3,645		)		-			(152		)		-			4,502				-		(3,469		)		-
Income tax benefit (expense) related to items that will not be reclassified subsequently		(74		)		-			352				-			(55,845		)		-		466				-
		922,806				-			22,537				-			724,577				-		(67,462		)		-
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translation of foreign operations		(10,901,084		)		(3	)		(14,725,220		)		(5	)		(3,095,279		)		-		(11,690,196		)		(2	)
Unrealized gain/(loss) on investments in debt instruments at fair value through other comprehensive income		(124,148		)		-			2,909,147				1			(1,790,169		)		-		2,698,399				1
Share of other comprehensive loss of associates		(99,112		)		-			(89,950		)		-			(73,657		)		-		(176,309		)		-
		(11,124,344		)		(3	)		(11,906,023		)		(4	)		(4,959,105		)		-		(9,168,106		)		(1	)
Other comprehensive loss for the period, net of income tax		(10,201,538		)		(3	)		(11,883,486		)		(4	)		(4,234,528		)		-		(9,235,568		)		(1	)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	$		124,280,178			33		$		109,009,028			35		$		269,985,937			37	$		228,719,839			37
NET INCOME ATTRIBUTABLE TO:
Shareholders of the parent	$		134,358,942			36		$		120,822,193			39		$		274,049,435			37	$		237,808,913			38
Non-controlling interests		122,774				-			70,321				-			171,030				-		146,494				-
	$		134,481,716			36		$		120,892,514			39		$		274,220,465			37	$		237,955,407			38

(Continued)

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

(Reviewed, Not Audited)

	For the Three Months Ended June 30										For the Six Months Ended June 30
	2021					2020					2021					2020
	Amount			%		Amount			%		Amount			%		Amount			%
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Shareholders of the parent	$		124,157,722		33	$		108,937,736		35	$		269,815,033		37	$		228,572,728		37
Non-controlling interests		122,456			-		71,292			-		170,904			-		147,111			-
	$		124,280,178		33	$		109,009,028		35	$		269,985,937		37	$		228,719,839		37
EARNINGS PER SHARE (NT$, Note 27)
Basic earnings per share	$		5.18			$		4.66			$		10.57			$		9.17
Diluted earnings per share	$		5.18			$		4.66			$		10.57			$		9.17

The accompanying notes are an integral part of the consolidated financial statements.

(Concluded)

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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Equity Attributable to Shareholders of the Parent
																							Others
																											Unrealized
																											Gain (Loss) on
																											Financial
																											Assets at Fair
																							Foreign				Value Through								Unearned
	Capital Stock - Common Stock								Retained Earnings														Currency				Other				Gain (Loss) on				Stock-Based
	Shares								Legal Capital			Special Capital			Unappropriated								Translation				Comprehensive				Hedging				Employee												Non-controlling				Total
	(In Thousands)		Amount			Capital Surplus			Reserve			Reserve			Earnings				Total				Reserve				Income				Instruments				Compensation				Total				Total				Interests				Equity
BALANCE, JANUARY 1, 2021		25,930,380	$		259,303,805	$		56,347,243	$		311,146,899	$		42,259,146	$		1,235,280,036		$		1,588,686,081		$		(57,001,627	)	$		2,321,754		$		-		$		-		$		(54,679,873	)	$		1,849,657,256		$		964,743		$		1,850,621,999
Appropriations of earnings		-
Special capital reserve		-		-			-			-			6,133,677			(6,133,677		)		-				-				-				-				-				-				-				-				-
Cash dividends to shareholders		-		-			-			-			-			(136,134,497		)		(136,134,497		)		-				-				-				-				-				(136,134,497		)		-				(136,134,497		)
Total		-		-			-			-			6,133,677			(142,268,174		)		(136,134,497		)		-				-				-				-				-				(136,134,497		)		-				(136,134,497		)
Net income for the six months ended June 30, 2021		-		-			-			-			-			274,049,435				274,049,435				-				-				-				-				-				274,049,435				171,030				274,220,465
Other comprehensive loss for the six months ended June 30, 2021, net of income tax		-		-			-			-			-			-				-				(3,168,898		)		(1,024,088		)		(41,416		)		-				(4,234,402		)		(4,234,402		)		(126		)		(4,234,528		)
Total comprehensive income (loss) for the six months ended June 30, 2021		-		-			-			-			-			274,049,435				274,049,435				(3,168,898		)		(1,024,088		)		(41,416		)		-				(4,234,402		)		269,815,033				170,904				269,985,937
Disposal of investments in equity instruments at fair value through other comprehensive income		-		-			-			-			-			(278,816		)		(278,816		)		-				278,816				-				-				278,816				-				-				-
Basis adjustment for gain on hedging instruments		-		-			-			-			-			-				-				-				-				41,416				-				41,416				41,416				-				41,416
Adjustments to share of changes in equities of associates		-		-			311			-			-			-				-				-				-				-				-				-				311				-				311
From difference between the consideration received and the carrying amount of the subsidiaries' net assets during actual disposal		-		-			8,406,282			-			-			-				-				-				-				-				-				-				8,406,282				1,045,516				9,451,798
Increase in non-controlling interests		-		-			-			-			-			-				-				-				-				-				-				-				-				3,454				3,454
Effect of acquisition of subsidiary		-		-			-			-			-			-				-				-				-				-				-				-				-				155				155
BALANCE, JUNE 30, 2021		25,930,380	$		259,303,805	$		64,753,836	$		311,146,899	$		48,392,823	$		1,366,782,481		$		1,726,322,203		$		(60,170,525	)	$		1,576,482		$		-		$		-		$		(58,594,043	)	$		1,991,785,801		$		2,184,772		$		1,993,970,573
BALANCE, JANUARY 1, 2020		25,930,380	$		259,303,805	$		56,339,709	$		311,146,899	$		10,675,106	$		1,011,512,974		$		1,333,334,979		$		(26,871,400	)	$		(692,959	)	$		(3,820	)	$		(190	)	$		(27,568,369	)	$		1,621,410,124		$		685,302		$		1,622,095,426
Appropriations of earnings
Special capital reserve		-		-			-			-			14,198,232			(14,198,232		)		-				-				-				-				-				-				-				-				-
Cash dividends to shareholders		-		-			-			-			-			(129,651,902		)		(129,651,902		)		-				-				-				-				-				(129,651,902		)		-				(129,651,902		)
Total		-		-			-			-			14,198,232			(143,850,134		)		(129,651,902		)		-				-				-				-				-				(129,651,902		)		-				(129,651,902		)
Net income for the six months ended June 30, 2020		-		-			-			-			-			237,808,913				237,808,913				-				-				-				-				-				237,808,913				146,494				237,955,407
Other comprehensive income (loss) for the six months ended June 30, 2020, net of income tax		-		-			-			-			-			-				-				(11,866,395		)		2,672,959				(42,749		)		-				(9,236,185		)		(9,236,185		)		617				(9,235,568		)
Total comprehensive income (loss) for the six months ended June 30, 2020		-		-			-			-			-			237,808,913				237,808,913				(11,866,395		)		2,672,959				(42,749		)		-				(9,236,185		)		228,572,728				147,111				228,719,839
Basis adjustment for gain on hedging instruments		-		-			-			-			-			-				-				-				-				46,569				-				46,569				46,569				-				46,569
Adjustments to share of changes in equities of associates		-		-			272			-			-			-				-				-				-				-				190				190				462				-				462
Increase in non-controlling interests		-		-			-			-			-			-				-				-				-				-				-				-				-				2,988				2,988
BALANCE, JUNE 30, 2020		25,930,380	$		259,303,805	$		56,339,981	$		311,146,899	$		24,873,338	$		1,105,471,753		$		1,441,491,990		$		(38,737,795	)	$		1,980,000		$		-		$		-		$		(36,757,795	)	$		1,720,377,981		$		835,401		$		1,721,213,382

The accompanying notes are an integral part of the consolidated financial statements.

6

 

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Six Months Ended June 30
	2021				2020
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$		304,455,464		$		268,545,816
Adjustments for:
Depreciation expense		200,697,053				136,065,309
Amortization expense		4,008,423				3,364,420
Expected credit losses recognized (reversal) on investments in debt instruments		(3,284		)		188
Finance costs		1,906,494				939,709
Share of profits of associates		(2,439,000		)		(1,404,725		)
Interest income		(2,889,585		)		(5,467,431		)
Discounts on short-term loans		(283,707		)		-
Share-based compensation		3,454				2,988
Loss (gain) on disposal or retirement of property, plant and equipment, net		10,581				(6,290		)
Loss on disposal or retirement of intangible assets, net		1,228				-
Impairment loss on property, plant and equipment		274,388				-
Loss on financial instruments at fair value through profit or loss, net		-				3,434
Gain on disposal of investments in debt instruments at fair value through other comprehensive income, net		(169,334		)		(926,919		)
Unrealized (realized) gross profit on sales to associates		(26,894		)		76,707
Gain on foreign exchange, net		(7,684,209		)		(2,916,873		)
Dividend income		(348,146		)		(341,797		)
Gain on lease modification		-				(3		)
Changes in operating assets and liabilities:
Financial instruments at fair value through profit or loss		3,895,618				(53,699		)
Notes and accounts receivable, net		(31,995,213		)		(11,310,413		)
Receivables from related parties		(226,266		)		(29,621		)
Other receivables from related parties		(36,224		)		(10,813		)
Inventories		(33,085,279		)		(2,806,898		)
Other financial assets		(4,302,494		)		1,618,067
Other current assets		(835,489		)		(1,363,358		)
Accounts payable		738,473				(478,898		)
Payables to related parties		(603,562		)		(1,895		)
Salary and bonus payable		(2,922,328		)		(1,524,637		)
Accrued profit sharing bonus to employees and compensation to directors and supervisors		16,647,894				16,379,603
Accrued expenses and other current liabilities		25,071,000				8,356,817
Net defined benefit liability		(628,554		)		(801,304		)
Cash generated from operations		469,230,502				405,907,484
Income taxes paid		(53,975,304		)		(32,543,083		)
Net cash generated by operating activities		415,255,198				373,364,401

(Continued)

7

 

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Six Months Ended June 30
	2021				2020
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Financial assets at fair value through other comprehensive income	$		(151,585,404	)	$		(123,362,626	)
Financial assets at amortized cost		-				(1,366,370		)
Property, plant and equipment		(414,999,829		)		(319,258,103		)
Intangible assets		(4,123,566		)		(8,487,562		)
Proceeds from disposal or redemption of:
Financial assets at fair value through other comprehensive income		148,593,456				126,227,986
Financial assets at amortized cost		6,581,175				-
Property, plant and equipment		116,857				182,002
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income		62,837				-
Derecognition of hedging financial instruments		143,672				(339,255		)
Interest received		3,040,052				5,959,214
Proceeds from government grants - property, plant and equipment		-				475,703
Proceeds from government grants - others		-				20,077
Other dividends received		318,746				406,277
Dividends received from investments accounted for using equity method		233,439				233,439
Increase in prepayments for leases		(1,200,000		)		-
Refundable deposits paid		(1,553,689		)		(120,582		)
Refundable deposits refunded		369,842				686,368
Net cash used in investing activities		(414,002,412		)		(318,743,432		)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term loans		55,624,096				52,578,588
Proceeds from short-term bills payable		-				7,485,303
Repayments of short-term bills payable		-				(1,000,000		)
Proceeds from issuance of bonds		157,809,507				60,000,000
Repayment of bonds		(2,600,000		)		(21,600,000		)
Proceeds from long-term bank loans		1,210,000				-
Payments for transaction costs attributable to the issuance of bonds		(278,805		)		(62,063		)
Repayment of the principal portion of lease liabilities		(985,283		)		(1,412,758		)
Interest paid		(1,046,295		)		(1,196,001		)
Guarantee deposits received		151,226				21,177
Guarantee deposits refunded		(35,358		)		(7,702		)
Cash dividends		(129,651,902		)		(129,651,902		)
Disposal of ownership interests in subsidiaries (without losing control)		9,451,798				-
Increase in non-controlling interests		155				-
Net cash generated (used) in financing activities		89,649,139				(34,845,358		)

(Continued)

8

 

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Six Months Ended June 30
	2021				2020
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	$		(3,090,490	)	$		(7,561,504	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		87,811,435				12,214,107
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		660,170,647				455,399,336
CASH AND CASH EQUIVALENTS, END OF PERIOD	$		747,982,082		$		467,613,443

The accompanying notes are an integral part of the consolidated financial statements.

(Concluded)

9

 

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

(Reviewed, Not Audited)

1. GENERAL

Taiwan Semiconductor Manufacturing Company Limited (TSMC), a Republic of China (R.O.C.) corporation, was incorporated on February 21, 1987. TSMC is a dedicated foundry in the semiconductor industry which engages mainly in the manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks.

On September 5, 1994, TSMC’s shares were listed on the Taiwan Stock Exchange (TWSE). On October 8, 1997, TSMC listed some of its shares of stock on the New York Stock Exchange (NYSE) in the form of American Depositary Shares (ADSs).

The address of its registered office and principal place of business is No. 8, Li-Hsin Rd. 6, Hsinchu Science Park, Taiwan. The principal operating activities of TSMC’s subsidiaries are described in Note 4.

2. THE AUTHORIZATION OF FINANCIAL STATEMENTS

The accompanying consolidated financial statements were reported to the Board of Directors and issued on August 10, 2021.

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the amendments to the IFRSs endorsed and issued into effect by the FSC did not have a significant effect on the accounting policies of TSMC and its subsidiaries (collectively as the “Company”).

b. The IFRSs issued by International Accounting Standards Board (IASB) and endorsed by FSC with effective date starting 2022

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 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

10

 

c. The IFRSs issued by IASB, but not yet endorsed and issued into effect by the FSC

New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB
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

As of the date the accompanying consolidated financial statements were issued, the Company continues in evaluating the impact on its financial position and financial performance from the initial adoption of the aforementioned standards or interpretations and related applicable period. The related impact will be disclosed when the Company completes its evaluation.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except for the following, the accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2020.

For the convenience of readers, the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the R.O.C. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language consolidated financial statements shall prevail.

Statement of Compliance

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, “Interim Financial Reporting,” endorsed and issued into effect by the FSC. The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements prepared under the IFRSs endorsed and issued into effect by the FSC (collectively, “Taiwan-IFRSs”).

Basis of Consolidation

The basis of preparation and the basis for the consolidated financial statements

The basis of preparation and the basis for the consolidated financial statements applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2020.

The subsidiaries in the consolidated financial statements

The detail information of the subsidiaries at the end of reporting period is as follows:

			Establishment	Percentage of Ownership
Name of Investor	Name of Investee	Main Businesses and Products	and Operating Location	June 30, 2021		December 31, 2020		June 30,   2020		Note
TSMC	TSMC North America	Sales and marketing of integrated circuits and other semiconductor devices	San Jose, California, U.S.A.		100%		100%		100%	-
	TSMC Europe B.V. (TSMC Europe)	Customer service and supporting activities	Amsterdam, the Netherlands		100%		100%		100%	a)
	TSMC Japan Limited (TSMC Japan)	Customer service and supporting activities	Yokohama, Japan		100%		100%		100%	a)

(Continued)

11

 

			Establishment	Percentage of Ownership
Name of Investor	Name of Investee	Main Businesses and Products	and Operating Location	June 30, 2021		December 31, 2020		June 30,   2020		Note
TSMC	TSMC Design Technology Japan, Inc. (TSMC JDC)	Engineering support activities	Yokohama, Japan		100%		100%		100%	a)
	TSMC Japan 3DIC R&D Center, Inc. (TSMC 3DIC)	Engineering support activities	Yokohama, Japan		100%		-		-	a), b)
	TSMC Korea Limited (TSMC Korea)	Customer service and supporting activities	Seoul, Korea		100%		100%		100%	a)
	TSMC Partners, Ltd. (TSMC Partners)	Investing in companies involved in the semiconductor design and manufacturing, and other investment activities	Tortola, British Virgin Islands		100%		100%		100%	a)
	TSMC Global, Ltd. (TSMC Global)	Investment activities	Tortola, British Virgin Islands		100%		100%		100%	-
	TSMC China Company Limited (TSMC China)	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	Shanghai, China		100%		100%		100%	-
	TSMC Nanjing Company Limited (TSMC Nanjing)	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	Nanjing, China		100%		100%		100%	-
	VisEra Technologies Company Ltd. (VisEra Tech)	Research, design, development, manufacturing, sales, packaging and test of color filter	Hsin-Chu, Taiwan		73%		87%		87%	c)
	TSMC Arizona Corporation (TSMC Arizona)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Phoenix, Arizona, U.S.A.		100%		100%		-	a), d)
	VentureTech Alliance Fund II, L.P. (VTAF II)	Investing in technology start-up companies	Cayman Islands		98%		98%		98%	a)
	VentureTech Alliance Fund III, L.P. (VTAF III)	Investing in technology start-up companies	Cayman Islands		98%		98%		98%	a)
	Emerging Fund L.P. (Emerging Fund)	Investing in technology start-up companies	Cayman Islands		99.9%		-		-	a), e)
TSMC Partners	TSMC Development, Inc. (TSMC Development)	Investing in companies involved in semiconductor manufacturing	Delaware, U.S.A.		100%		100%		100%	-
	TSMC Technology, Inc. (TSMC Technology)	Engineering support activities	Delaware, U.S.A.		100%		100%		100%	a)
	TSMC Design Technology Canada Inc. (TSMC Canada)	Engineering support activities	Ontario, Canada		100%		100%		100%	a)
	InveStar Semiconductor Development Fund, Inc. (ISDF)	Investing in technology start-up companies	Cayman Islands		-		-		97%	a), f)
	InveStar Semiconductor Development Fund, Inc. (II) LDC. (ISDF II)	Investing in technology start-up companies	Cayman Islands		-		-		97%	a), f)
TSMC Development	WaferTech, LLC (WaferTech)	Manufacturing, sales and testing of integrated circuits and other semiconductor devices	Washington, U.S.A.		100%		100%		100%	-
VTAF III	Growth Fund Limited (Growth Fund)	Investing in technology start-up companies	Cayman Islands		100%		100%		100%	a)

(Concluded)

Note a: This is an immaterial subsidiary for which the consolidated financial statements are neither reviewed nor 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, 39,501 thousand common shares of VisEra at a price of NT$240 were sold by TSMC and an increase of NT$8,406,282 thousand in capital surplus was recognized. TSMC’s shareholding in VisEra decreased from 87% to 73%. This disposal was accounted for as an equity transaction since the transaction did not change TSMC’s control over VisEra.

Note d: TSMC Arizona is established in November 2020. Under the terms of the development agreement entered into between TSMC Arizona and the City of Phoenix, the City of Phoenix commits approximately US$205 million toward various public infrastructure projects in the area of the proposed manufacturing facility, conditioned on TSMC Arizona’s achieving a minimum project scale with defined spending and job-creation thresholds.

Note e: Emerging fund is established in January 2021.

Note f: ISDF and ISDF II have completed the liquidation procedures in November 2020.

Retirement Benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. The interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the pre-tax income of the interim period.

12

 

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

The Company has considered the economic implications of COVID-19 on critical accounting estimates and will continue evaluating the impact on its financial position and financial performance as a result of the pandemic. In addition, the same critical accounting judgments and key sources of estimates and uncertainty have been followed in these consolidated financial statements as were applied in the preparation of the Company’s consolidated financial statements for the year ended December 31, 2020.

6. CASH AND CASH EQUIVALENTS

	June 30, 2021			December 31, 2020			June 30, 2020
Cash and deposits in banks	$		745,313,161	$		653,580,548	$		461,491,815
Government bonds		2,668,921			3,716,119			2,545,192
Repurchase agreements		-			1,750,443			1,665,004
Commercial paper		-			1,123,537			1,911,432
	$		747,982,082	$		660,170,647	$		467,613,443

Deposits in banks consisted of highly liquid time deposits that were readily convertible to known amounts of cash and were subject to an insignificant risk of changes in value.

7. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

	June 30, 2021			December 31, 2020			June 30, 2020
Financial assets
Mandatorily measured at FVTPL
Forward exchange contracts	$		58,325	$		2,259,412	$		754,789
Agency mortgage-backed securities		-			-			33,737
	$		58,325	$		2,259,412	$		788,526
Financial liabilities
Held for trading
Forward exchange contracts	$		1,828,338	$		94,128	$		1,543,265

The Company entered into forward exchange contracts to manage exposures due to fluctuations of foreign exchange rates. These forward exchange contracts did not meet the criteria for hedge accounting. Therefore, the Company did not apply hedge accounting treatment for these forward exchange contracts.

13

 

Outstanding forward exchange contracts consisted of the following:

		Contract Amount
	Maturity Date	(In Thousands)
June 30, 2021
Sell NT$	July 2021 to September 2021	NT$	153,952,400
Sell US$	July 2021 to September 2021	US$		1,738,658
December 31, 2020
Sell NT$	January 2021 to March 2021	NT$		144,697,981
Sell US$	January 2021 to March 2021	US$			1,176,858
June 30, 2020
Sell NT$	July 2020 to December 2020	NT$			205,770,311
Sell US$	July 2020 to September 2020	US$				574,977

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	June 30, 2021			December 31, 2020			June 30, 2020
Investments in debt instruments at FVTOCI
Corporate bonds	$		58,907,886	$		56,593,623	$		59,747,143
Agency bonds/Agency mortgage-backed securities		32,188,798			43,977,113			48,777,759
Government bonds		24,121,903			13,459,503			10,054,530
Asset-backed securities		7,523,443			8,368,264			10,824,156
		122,742,030			122,398,503			129,403,588
Investments in equity instruments at FVTOCI
Non-publicly traded equity investments		5,389,958			4,514,940			4,300,519
Publicly traded stocks		52,499			49,950			-
		5,442,457			4,564,890			4,300,519
	$		128,184,487	$		126,963,393	$		133,704,107
Current	$		122,794,529	$		122,448,453	$		129,403,588
Noncurrent		5,389,958			4,514,940			4,300,519
	$		128,184,487	$		126,963,393	$		133,704,107

These investments in equity instruments are held for medium to long-term purposes and therefore are accounted for as FVTOCI. For dividends recognized from these investments, please refer to consolidated statements of cash flows. All of the dividends are from investments held at the end of the reporting period.

As of June 30, 2021 and 2020, the cumulative loss allowance for expected credit loss of NT$33,850 thousand and NT$34,670 thousand was recognized under investments in debt instruments at FVTOCI, respectively. Refer to Note 30 for information relating to the credit risk management and expected credit loss.

14

 

9. FINANCIAL ASSETS AT AMORTIZED COST

	June 30, 2021				December 31, 2020				June 30, 2020
Corporate bonds	$		4,338,802		$		10,977,298		$		8,854,016
Less: Allowance for impairment loss		(2,166		)		(7,099		)		(3,310		)
	$		4,336,636		$		10,970,199		$		8,850,706
Current	$		-		$		6,597,992		$		7,210,148
Noncurrent		4,336,636				4,372,207				1,640,558
	$		4,336,636		$		10,970,199		$		8,850,706

Refer to Note 30 for information relating to credit risk management and expected credit loss for financial assets at amortized cost.

10. HEDGING FINANCIAL INSTRUMENTS

	June 30, 2021		December 31, 2020		June 30, 2020
Financial assets - current
Fair value hedges
Interest rate futures contracts	$	310	$	47	$	-
Financial liabilities - current
Fair value hedges
Interest rate futures contracts	$	10,216	$	1,169	$	14,839

Fair value hedge

The Company entered into interest rate futures contracts, which are used to partially hedge against the fair value changes caused by interest rate fluctuation in the Company’s fixed income investments. The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%.

On the basis of economic relationships, the value of the interest rate futures contracts and the value of the hedged financial assets will change in opposite directions in response to movements in interest rates.

The main source of hedge ineffectiveness in these hedging relationships is the credit risk of the hedged financial assets, which is not reflected in the fair value of the interest rate futures contracts. No other sources of ineffectiveness emerged from these hedging relationships during the hedging period. Amount of hedge ineffectiveness recognized in profit or loss is classified under other gains and losses, net.

15

 

The following tables summarize the information relating to the hedges of interest rate risk.

June 30, 2021

Hedging Instruments	Contract Amount (US$ in Thousands)		Maturity
Interest rate futures contracts - US Treasury futures	US$	74,200	September 2021

Hedged Items	Asset Carrying Amount		Accumulated Amount of Fair Value Hedge Adjustments
Financial assets at FVTOCI	$	5,707,978	$	9,906

December 31, 2020

Hedging Instruments	Contract Amount (US$ in Thousands)		Maturity
Interest rate futures contracts - US Treasury futures	US$	88,700	March 2021

Hedged Items	Asset Carrying Amount		Accumulated Amount of Fair Value Hedge Adjustments
Financial assets at FVTOCI	$	6,198,683	$	1,122

June 30, 2020

Hedging Instruments	Contract Amount (US$ in Thousands)		Maturity
Interest rate futures contracts - US Treasury futures	US$	123,900	September 2020

Hedged Items	Asset Carrying Amount		Accumulated Amount of Fair Value Hedge Adjustments
Financial assets at FVTOCI	$	8,786,706	$	14,839

The effect for the six months ended June 30, 2021 and 2020 is detailed below:

Hedging Instruments/Hedged Items	Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness
	Six Months Ended June 30
	2021				2020
Hedging Instruments
Interest rate futures contracts - US Treasury futures	$		134,956		$		(365,368	)
Hedged Items
Financial assets at FVTOCI		(134,956		)		365,368
	$		-		$		-

16

 

Cash flow hedge

The Company entered into forward exchange contracts to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%. The forward exchange contracts have maturities of 12 months or less.

On the basis of economic relationships, the Company expects that the value of forward exchange contracts and the value of hedged transactions will change in opposite directions in response to movements in foreign exchange rates.

The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of the counterparty’s own credit risk on the fair value of forward exchange contracts. No other sources of ineffectiveness emerged from these hedging relationships. For the six months ended June 30, 2021 and 2020, refer to Note 21(d) for gain or loss arising from changes in the fair value of hedging instruments and the amount transferred to initial carrying amount of hedged items.

The effect for the six months ended June 30, 2021 and 2020 is detailed below:

Hedging Instruments/Hedged Items	Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness
	Six Months Ended June 30
	2021			2020
Hedging Instruments
Forward exchange contracts	$	(41,416	)	$	(42,749	)
Hedged Items
Forecast transaction (capital expenditures)	$	41,416		$	42,749

11. NOTES AND ACCOUNTS RECEIVABLE, NET

	June 30, 2021				December 31, 2020				June 30, 2020
At amortized cost
Notes and accounts receivable	$		174,586,830		$		142,771,597		$		145,152,748
Less: Loss allowance		(291,142		)		(246,626		)		(340,179		)
		174,295,688				142,524,971				144,812,569
At FVTOCI		3,179,805				2,955,301				3,895,486
	$		177,475,493		$		145,480,272		$		148,708,055

The Company signed a contract with the bank to sell certain accounts receivable without recourse and transaction cost required. These accounts receivable are classified as at FVTOCI because they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.

17

 

In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month when the invoice is issued. Aside from recognizing impairment loss for credit-impaired accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio of customers by different risk levels with consideration of factors of historical loss ratios and customers’ financial conditions, competitiveness and business outlook. For accounts receivable past due over 90 days without collaterals or guarantees, the Company recognizes loss allowance at full amount.

Aging analysis of notes and accounts receivable

	June 30, 2021				December 31, 2020				June 30, 2020
Not past due	$		169,954,907		$		140,933,622		$		141,251,503
Past due
Past due within 30 days		7,811,444				4,784,425				7,765,468
Past due 31-60 days		220				8,708				27,860
Past due 61-120 days		64				48				1,767
Past due over 121 days		-				95				1,636
Less: Loss allowance		(291,142		)		(246,626		)		(340,179		)
	$		177,475,493		$		145,480,272		$		148,708,055

All of the Company’s accounts receivable classified as at FVTOCI were not past due.

Movements of the loss allowance for accounts receivable

	Six Months Ended June 30
	2021				2020
Balance, beginning of period	$		246,626		$		325,325
Provision		44,524				15,157
Effect of exchange rate changes		(8		)		(303		)
Balance, end of period	$		291,142		$		340,179

For the six months ended June 30, 2021 and 2020, the changes in loss allowance were mainly due to the variations in the balance of accounts receivable of different risk levels.

12. INVENTORIES

	June 30, 2021			December 31, 2020			June 30, 2020
Finished goods	$		21,358,612	$		21,705,625	$		6,765,349
Work in process		126,550,888			91,672,870			56,598,373
Raw materials		12,991,522			14,715,963			15,050,270
Supplies and spare parts		9,537,664			9,258,949			7,374,102
	$		170,438,686	$		137,353,407	$		85,788,094

18

 

Write-down of inventories to net realizable value and reversal of write-down of inventories resulting from the increase in net realizable value were included in the cost of revenue. The amounts are illustrated below:

	Three Months Ended June 30					Six Months Ended June 30
	2021			2020		2021			2020
Inventory losses (reversal of write-down of inventories)	$	(469,648	)	$	457,684	$	(946,047	)	$	273,683

13. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Associates consisted of the following:

		Place of	Carrying Amount									% of Ownership and Voting Rights Held by the Company
Name of Associate	Principal Activities	Incorporation and Operation	June 30, 2021			December 31, 2020			June 30, 2020			June 30, 2021			December 31, 2020			June 30, 2020
Vanguard International Semiconductor Corporation (VIS)	Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks	Hsinchu, Taiwan	$		8,702,574	$		9,029,890	$		8,200,184		28%			28%			28%
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)	Manufacturing and sales of integrated circuits and other semiconductor devices	Singapore		6,409,172			5,900,245			5,759,008				39%			39%		39%
Xintec Inc. (Xintec)	Wafer level chip size packaging and wafer level post passivation interconnection service	Taoyuan, Taiwan		2,898,577			2,554,123			1,968,939				41%			41%		41%
Global Unichip Corporation (GUC)	Researching, developing, manufacturing, testing and marketing of integrated circuits	Hsinchu, Taiwan		1,300,841			1,328,620			1,018,510				35%			35%		35%
Mutual-Pak Technology Co., Ltd. (Mutual-Pak)	Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID	New Taipei, Taiwan		25,714			28,183			29,107				28%			28%		28%
			$		19,336,878	$		18,841,061	$		16,975,748

The market prices of the associates’ ownership held by the Company in publicly traded stocks calculated by the closing price at the end of the reporting period are summarized as follows. The closing price represents the quoted price in active markets, the level 1 fair value measurement.

Name of Associate	June 30, 2021		December 31, 2020		June 30, 2020
VIS	$	54,778,372	$	53,849,925	$	36,116,588
GUC	$	19,282,086	$	15,827,184	$	11,788,684
Xintec	$	18,806,645	$	20,420,233	$	12,463,576

14. PROPERTY, PLANT AND EQUIPMENT

	June 30, 2021			December 31, 2020			June 30, 2020
Assets used by the Company	$		1,722,112,116	$		1,554,585,938	$		1,493,522,951
Assets subject to operating leases		567,017			1,003,182			37,999
	$		1,722,679,133	$		1,555,589,120	$		1,493,560,950

a. Assets used by the Company

19

 

	Land and Land Improvements				Buildings				Machinery and Equipment				Office Equipment				Equipment under Installation and Construction in Progress				Total
Cost
Balance at January 1, 2021	$		3,942,625		$		522,447,474		$		3,607,005,732		$		68,862,648		$		223,965,360		$		4,426,223,839
Additions		2,587,183				34,524,307				217,478,898				3,799,491				108,588,607				366,978,486
Disposals or retirements		-				(19,921		)		(6,882,015		)		(124,755		)		-				(7,026,691		)
Transfers from assets subject to operating leases		-				35,478				656,218				-				-				691,696
Transfers to assets subject to operating leases		-				-				(244,579		)		-				-				(244,579		)
Effect of exchange rate changes		(16,125		)		86,018				672,170				(7,391		)		(81,621		)		653,051
Balance at June 30, 2021	$		6,513,683		$		557,073,356		$		3,818,686,424		$		72,529,993		$		332,472,346		$		4,787,275,802
Accumulated depreciation   and impairment
Balance at January 1, 2021	$		506,129		$		271,799,471		$		2,555,529,969		$		43,802,332		$		-		$		2,871,637,901
Additions		667				16,942,317				178,535,517				3,863,440				-				199,341,941
Disposals or retirements		-				(17,118		)		(6,695,391		)		(123,997		)		-				(6,836,506		)
Transfers from assets subject to operating leases		-				15,646				197,639				-				-				213,285
Transfers to assets subject to operating leases		-				-				(68,279		)		-				-				(68,279		)
Impairment		-				-				274,388				-				-				274,388
Effect of exchange rate changes		(3,750		)		21,534				590,342				(7,170		)		-				600,956
Balance at June 30, 2021	$		503,046		$		288,761,850		$		2,728,364,185		$		47,534,605		$		-		$		3,065,163,686
Carrying amounts at January 1, 2021	$		3,436,496		$		250,648,003		$		1,051,475,763		$		25,060,316		$		223,965,360		$		1,554,585,938
Carrying amounts at June 30, 2021	$		6,010,637		$		268,311,506		$		1,090,322,239		$		24,995,388		$		332,472,346		$		1,722,112,116
Cost
Balance at January 1, 2020	$		3,991,798		$		438,075,063		$		2,886,622,968		$		54,611,364		$		528,295,086		$		3,911,596,279
Additions (deductions)		-				66,843,789				575,722,091				9,268,143				(374,596,112		)		277,237,911
Disposals or retirements		-				(19,785		)		(3,060,141		)		(114,216		)		-				(3,194,142		)
Transfers from assets subject to operating leases		-				22,323				-				-				-				22,323
Effect of exchange rate changes		(14,536		)		(1,126,851		)		(3,760,480		)		(125,392		)		(140,092		)		(5,167,351		)
Balance at June 30, 2020	$		3,977,262		$		503,794,539		$		3,455,524,438		$		63,639,899		$		153,558,882		$		4,180,495,020
Accumulated depreciation   and impairment
Balance at January 1, 2020	$		538,690		$		243,059,390		$		2,278,265,943		$		37,418,395		$		-		$		2,559,282,418
Additions		791				13,167,675				118,235,125				3,172,208				-				134,575,799
Disposals or retirements		-				(15,805		)		(2,891,975		)		(113,295		)		-				(3,021,075		)
Transfers from assets subject to operating leases		-				8,196				-				-				-				8,196
Effect of exchange rate changes		(10,057		)		(612,952		)		(3,175,406		)		(74,854		)		-				(3,873,269		)
Balance at June 30, 2020	$		529,424		$		255,606,504		$		2,390,433,687		$		40,402,454		$		-		$		2,686,972,069
Carrying amounts at January 1, 2020	$		3,453,108		$		195,015,673		$		608,357,025		$		17,192,969		$		528,295,086		$		1,352,313,861
Carrying amounts at June 30, 2020	$		3,447,838		$		248,188,035		$		1,065,090,751		$		23,237,445		$		153,558,882		$		1,493,522,951

The significant part of the Company’s buildings includes main plants, mechanical and electrical power equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20 years, 10 years and 10 years, respectively.

In the first quarter of 2021, the Company recognized an impairment loss of NT$274,388 thousand for certain machinery and equipment that was assessed to have no future use, and the recoverable amount of certain machinery and equipment was nil. Such impairment loss was recognized in other operating income and expenses.

b. Assets subject to operating leases

20

 

	Buildings				Machinery and Equipment				Total
Cost
Balance at January 1, 2021	$		227,529		$		1,199,011		$		1,426,540
Transfers to assets used by the Company		(35,478		)		(656,218		)		(691,696		)
Transfers from assets used by the Company		-				244,579				244,579
Balance at June 30, 2021	$		192,051		$		787,372		$		979,423
Accumulated depreciation
Balance at January 1, 2021	$		201,366		$		221,992		$		423,358
Additions		632				133,422				134,054
Transfers to assets used by the Company		(15,646		)		(197,639		)		(213,285		)
Transfers from assets used by the Company		-				68,279				68,279
Balance at June 30, 2021	$		186,352		$		226,054		$		412,406
Carrying amounts at January 1, 2021	$		26,163		$		977,019		$		1,003,182
Carrying amounts at June 30, 2021	$		5,699		$		561,318		$		567,017
Cost
Balance at January 1, 2020	$		562,610		$		-		$		562,610
Transfers to assets used by the Company		(22,323		)		-				(22,323		)
Balance at June 30, 2020	$		540,287		$		-		$		540,287
Accumulated depreciation
Balance at January 1, 2020	$		499,066		$		-		$		499,066
Additions		11,418				-				11,418
Transfers to assets used by the Company		(8,196		)		-				(8,196		)
Balance at June 30, 2020	$		502,288		$		-		$		502,288
Carrying amounts at January 1, 2020	$		63,544		$		-		$		63,544
Carrying amounts at June 30, 2020	$		37,999		$		-		$		37,999

Operating leases relate to leases of buildings and leases of machinery and equipment with lease terms ranging between approximately 1 to 5 years. The lessees do not have purchase options to acquire the assets at the expiration of the lease periods.

The maturity analysis of operating lease payments receivable from the buildings and machinery and equipment is as follows:

	June 30, 2021			December 31, 2020			June 30, 2020
Year 1	$		22,011	$		149,120	$		17,612
Year 2		8,496			16,992			16,992
Year 3		-			-			8,496
	$		30,507	$		166,112	$		43,100

15. LEASE ARRANGEMENTS

21

 

a. Right-of-use assets

	June 30, 2021			December 31, 2020			June 30, 2020
Carrying amounts
Land	$		30,256,923	$		25,141,908	$		18,459,364
Buildings		2,323,733			2,544,742			2,346,438
Machinery and equipment		3,905			-			193,952
Office equipment		34,711			41,732			37,140
	$		32,619,272	$		27,728,382	$		21,036,894

	Six Months Ended June 30
	2021		2020
Additions to right-of-use assets	$	6,220,076	$	5,510,956

	Three Months Ended June 30						Six Months Ended June 30
	2021			2020			2021			2020
Depreciation of right-of-use assets
Land	$		454,014	$		313,083	$		899,416	$		605,839
Buildings		157,499			142,335			310,629			278,167
Machinery and equipment		135			290,928			135			581,857
Office equipment		5,367			5,980			10,878			12,229
	$		617,015	$		752,326	$		1,221,058	$		1,478,092
Income from subleasing right-of-use assets (classified under other operating income and expenses, net)	$		20,248	$		19,011	$		40,674	$		37,923

b. Lease liabilities

	June 30, 2021			December 31, 2020			June 30, 2020
Carrying amounts
Current portion (classified under accrued expenses and other current liabilities)	$		1,861,281	$		1,828,025	$		1,984,818
Noncurrent portion		21,030,441			20,560,649			19,164,873
	$		22,891,722	$		22,388,674	$		21,149,691

Ranges of discount rates for lease liabilities are as follows:

22

 

	June 30, 2021		December 31, 2020		June 30, 2020
Land		0.39%-2.14%		0.48%-2.14%		0.48%-2.14%
Buildings		0.39%-3.88%		0.54%-3.88%		0.54%-3.88%
Machinery and equipment		0.71%		-		3.24%
Office equipment		0.28%-3.88%		0.28%-3.88%		0.43%-3.88%

c. Material terms of right-of-use assets

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.

The Company leases machinery and equipment for use in operation with lease terms of 2 years. The Company has purchase options to acquire certain leasehold machinery and equipment at the end of the lease terms. As of September 30, 2020, the aforementioned lease contract with purchase option has expired.

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:

	June 30, 2021		December 31, 2020		June 30, 2020
Year 1	$	64,991	$	144,099	$	52,211

e. Other lease information

	Three Months Ended June 30				Six Months Ended June 30
	2021		2020		2021		2020
Expenses relating to short-term leases	$	1,309,473	$	786,725	$	2,588,882	$	1,754,838
Expenses relating to variable lease payments not included in the measurement of lease liabilities	$	33,445	$	49,309	$	101,017	$	97,154

	Six Months Ended June 30
	2021		2020
Total cash outflow for leases	$	3,660,126	$	3,568,815

23

 

16.INTANGIBLE ASSETS

	Goodwill				Technology License Fees			Software and System Design Costs				Patent and Others			Total
Cost
Balance at January 1, 2021	$		5,436,602		$		22,161,712	$		36,238,967		$		11,277,701	$		75,114,982
Additions		-				1,004,974			3,708,226				90,702			4,803,902
Disposals or retirements		-				-			(13,779		)		-			(13,779		)
Effect of exchange rate changes		(28,244		)		1,071			2,079				185			(24,909		)
Balance at June 30, 2021	$		5,408,358		$		23,167,757	$		39,935,493		$		11,368,588	$		79,880,196
Accumulated amortization and   impairment
Balance at January 1, 2021	$		-		$		12,226,066	$		30,111,759		$		7,008,978	$		49,346,803
Additions		-				1,334,121			2,068,523				605,779			4,008,423
Disposals or retirements		-				-			(12,551		)		-			(12,551		)
Effect of exchange rate changes		-				1,071			1,266				141			2,478
Balance at June 30, 2021	$		-		$		13,561,258	$		32,168,997		$		7,614,898	$		53,345,153
Carrying amounts at January 1, 2021	$		5,436,602		$		9,935,646	$		6,127,208		$		4,268,723	$		25,768,179
Carrying amounts at June 30, 2021	$		5,408,358		$		9,606,499	$		7,766,496		$		3,753,690	$		26,535,043

Cost
Balance at January 1, 2020	$		5,693,376		$		15,854,951		$		33,024,010		$		8,302,996		$		62,875,333
Additions		-				6,035,171				1,292,039				2,863,032				10,190,242
Disposals or retirements		-				-				(48,828		)		-				(48,828		)
Effect of exchange rate changes		(75,905		)		(3,352		)		(17,300		)		(1,334		)		(97,891		)
Balance at June 30, 2020	$		5,617,471		$		21,886,770		$		34,249,921		$		11,164,694		$		72,918,856
Accumulated amortization and   impairment
Balance at January 1, 2020	$		-		$		9,823,770		$		26,502,067		$		5,896,468		$		42,222,305
Additions		-				1,021,932				1,856,243				486,245				3,364,420
Disposals or retirements		-				-				(48,828		)		-				(48,828		)
Effect of exchange rate changes		-				(3,352		)		(10,321		)		(968		)		(14,641		)
Balance at June 30, 2020	$		-		$		10,842,350		$		28,299,161		$		6,381,745		$		45,523,256
Carrying amounts at January 1, 2020	$		5,693,376		$		6,031,181		$		6,521,943		$		2,406,528		$		20,653,028
Carrying amounts at June 30, 2020	$		5,617,471		$		11,044,420		$		5,950,760		$		4,782,949		$		27,395,600

The Company’s goodwill has been tested for impairment at the end of the annual reporting period and the recoverable amount is determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering the future five-year period, and the Company used annual discount rate of 8.0% in its test of impairment as of December 31, 2020 to reflect the relevant specific risk in the cash-generating unit.

17. SHORT-TERM LOANS

	June 30, 2021		December 31, 2020			June 30, 2020
Unsecured loans
Amount	$	139,380,910		$	88,559,026		$	169,546,950
Loan content
US$ (in thousands)	$	-		$	200,000		$	1,642,000
EUR (in thousands)		4,195,819			2,398,000			3,579,000
JPY (in thousands)		-			-			10,000,000
Annual interest rate		(0.25)% - 0.01%			(0.54)% - 0.33%			(0.15)% - 0.83%
Maturity date		Due by September 2021			Due by February 2021			Due by September 2020

24

 

18. SHORT-TERM BILLS PAYABLE

	June 30, 2020
Commercial papers	$		6,500,000
Less: Discounts on commercial papers		(6,602		)
	$		6,493,398
Annual interest rate		0.45%-0.52%

19. BONDS PAYABLE

	June 30, 2021				December 31, 2020				June 30, 2020
Domestic unsecured bonds	$		230,389,000		$		173,197,000		$		95,300,000
Overseas unsecured bonds		181,278,500				84,291,000				-
Less: Discounts on bonds payable		(1,202,643		)		(782,916		)		(60,319		)
Less: Current portion		-				(2,600,000		)		(12,800,000		)
	$		410,464,857		$		254,105,084		$		82,439,681

The Company issued domestic unsecured bonds for the six months ended June 30, 2021, the major terms are as follows:

Issuance	Tranche	Issuance Period	Total Amount			Coupon Rate		Repayment and Interest Payment
NT$ unsecured   bonds
110-1	A	March 2021 to March 2026	$		4,800,000		0.50%	Bullet repayment; interest payable annually
	B	March 2021 to March 2028		11,400,000			0.55%	The same as above
	C	March 2021 to March 2031		4,900,000			0.60%	The same as above
110-2	A	May 2021 to May 2026		5,200,000			0.50%	The same as above
	B	May 2021 to May 2028		8,400,000			0.58%	The same as above
	C	May 2021 to May 2031		5,600,000			0.65%	The same as above
110-3	A	June 2021 to June 2026		6,900,000			0.52%	The same as above
	B	June 2021 to June 2028		7,900,000			0.58%	The same as above
	C	June 2021 to June 2031		4,900,000			0.65%	The same as above

25

 

The major terms of overseas unsecured bonds are as follows:

Issuance Period	Total Amount (US$ in Thousands)			Coupon Rate		Repayment and Interest Payment
September 2020 to September 2025	US$		1,000,000		0.75%	Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually
September 2020 to September 2027		750,000			1.00%	The same as above
September 2020 to September 2030		1,250,000			1.375%	The same as above
April 2021 to April 2026		1,100,000			1.25%	The same as above
April 2021 to April 2028		900,000			1.75%	The same as above
April 2021 to April 2031		1,500,000			2.25%	The same as above

20. LONG-TERM BANK LOANS

	June 30, 2021				December 31, 2020				June 30, 2020
Unsecured loans	$		3,210,000		$		2,000,000		$		-
Less: Discounts on government grants		(38,669		)		(32,389		)		-
	$		3,171,331		$		1,967,611		$		-
Loan content
Annual interest rate		0.4%-0.6%				0.4%				-
Maturity date		Due by March 2026				Due by September 2025				-

The long-term bank loans of the Company are with preferential interest rates subsidized by the government, and the loans are used to fund capital expenditure qualifying for the subsidy.

21. EQUITY

a. Capital stock

	June 30, 2021		December 31, 2020		June 30, 2020
Authorized shares (in thousands)		28,050,000		28,050,000		28,050,000
Authorized capital	$	280,500,000	$	280,500,000	$	280,500,000
Issued and paid shares (in thousands)		25,930,380		25,930,380		25,930,380
Issued capital	$	259,303,805	$	259,303,805	$	259,303,805

26

 

A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive dividends.

The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock options.

As of June 30, 2021, 1,064,288 thousand ADSs of TSMC were traded on the NYSE. The number of common shares represented by the ADSs was 5,321,442 thousand shares (one ADS represents five common shares).

b. Capital surplus

	June 30, 2021			December 31, 2020			June 30, 2020
Additional paid-in capital	$		24,184,939	$		24,184,939	$		24,184,939
From merger		22,804,510			22,804,510			22,804,510
From convertible bonds		8,892,847			8,892,847			8,892,847
From difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal		8,406,282			-			-
From share of changes in equities of subsidiaries		121,843			121,843			121,843
From share of changes in equities of associates		302,837			302,526			302,506
Donations		40,578			40,578			33,336
	$		64,753,836	$		56,347,243	$		56,339,981

Under the relevant laws, the capital surplus generated from the excess of the issuance price over the par value of capital stock (including the stock issued for new capital, mergers and convertible bonds), the difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal and donations may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or stock dividends up to a certain percentage of TSMC’s paid-in capital. The capital surplus from share of changes in equities of subsidiaries and associates and dividend of a claim extinguished by a prescription may be used to offset a deficit.

c. Retained earnings and dividend policy

TSMC’s Articles of Incorporation provide that, earnings distribution may be made on a quarterly basis after the close of each quarter. Distribution of earnings by way of cash dividends should be approved by TSMC’s Board of Directors and reported to TSMC’s shareholders in its meeting. When allocating earnings, TSMC shall first estimate and reserve the taxes to be paid, offset its losses, set aside a legal capital reserve at 10% of the remaining earnings (until the accumulated legal capital reserve equals TSMC’s paid-in capital), then set aside a special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge. Any balance left over shall be allocated according to relevant laws and the TSMC’s Articles of Incorporation.

TSMC’s Articles of Incorporation also provide that profits of TSMC may be distributed by way of cash dividend and/or stock dividend. However, distribution of earnings shall be made preferably by way of cash dividend. Distribution of earnings may also be made by way of stock dividend, provided that the ratio for stock dividend shall not exceed 50% of the total distribution.

The legal capital reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Company incurs no loss.

27

 

Pursuant to existing regulations, the Company is required to set aside additional special capital reserve equivalent to the net debit balance of the other components of stockholders’ equity, such as the accumulated balance of foreign currency translation reserve, unrealized valuation gain or loss from fair value through other comprehensive income financial assets, gain or loss from changes in fair value of hedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses.

The appropriations of 2021, 2020 and 2019 quarterly earnings have been approved by TSMC’s Board of Directors in its meeting, respectively. The appropriations and cash dividends per share were as follows:

	Second Quarter		First Quarter
Resolution Date of TSMC’s	of 2021		of 2021
Board of Directors in its	August 10,		June 9,
meeting	2021		2021
Special capital reserve	$	10,201,220	$	(6,287,050	)
Cash dividends to shareholders	$	71,308,546	$	71,308,546
Cash dividends per share (NT$)	$	2.75	$	2.75

	Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Resolution Date of TSMC’s	of 2020		of 2020		of 2020		of 2020
Board of Directors in its	February 9,		November 10,		August 11,		May 12,
meeting	2021		2020		2020		2020
Special capital reserve	$	12,420,727	$	5,501,351	$	11,884,457	$	(2,694,841	)
Cash dividends to shareholders	$	64,825,951	$	64,825,951	$	64,825,951	$	64,825,951
Cash dividends per share (NT$)	$	2.5	$	2.5	$	2.5	$	2.5

	Fourth Quarter		Third Quarter		Second Quarter			First Quarter
Resolution Date of TSMC’s	of 2019		of 2019		of 2019			of 2019
Board of Directors in its meeting	February 11, 2020		November 12, 2019		August 13, 2019			June 5, 2019
Special capital reserve	$	16,893,073	$	3,289,166	$	(3,338,190	)	$	(4,723,939	)
Cash dividends to shareholders	$	64,825,951	$	64,825,951	$	64,825,951		$	51,860,761
Cash dividends per share (NT$)	$	2.5	$	2.5	$	2.5		$	2.0

d. Others

Changes in others were as follows:

	Six Months Ended June 30, 2021
	Foreign Currency Translation Reserve				Unrealized Gain (Loss) on Financial Assets at FVTOCI				Gain (Loss) on Hedging Instruments			Unearned Stock-Based Employee Compensation			Total
Balance, beginning of period	$		(57,001,627	)	$		2,321,754		$		-	$		-	$		(54,679,873	)
Exchange differences arising on translation of foreign operations		(3,095,241		)		-				-			-			(3,095,241		)
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments		-				817,424				-			-			817,424
Debt instruments		-				(1,622,452		)		-			-			(1,622,452		)
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal		-				278,816				-			-			278,816
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal		-				(169,334		)		-			-			(169,334		)
Loss allowance adjustments from debt instruments		-				1,617				-			-			1,617

(Continued)

28

 

	Six Months Ended June 30, 2021
	Foreign Currency Translation Reserve				Unrealized Gain (Loss) on Financial Assets at FVTOCI				Gain (Loss) on Hedging Instruments				Unearned Stock-Based Employee Compensation			Total
Gain (loss) arising on changes in the fair value of hedging instruments	$		-		$		-		$		(41,416	)	$		-	$		(41,416	)
Transferred to initial carrying amount of hedged items		-				-				41,416				-			41,416
Share of other comprehensive income (loss) of associates		(73,657		)		4,502				-				-			(69,155		)
Income tax effect		-				(55,845		)		-				-			(55,845		)
Balance, end of period	$		(60,170,525	)	$		1,576,482		$		-		$		-	$		(58,594,043	)

(Concluded)

	Six Months Ended June 30, 2020
	Foreign Currency Translation Reserve				Unrealized Gain (Loss) on Financial Assets at FVTOCI				Gain (Loss) on Hedging Instruments				Unearned Stock-Based Employee Compensation				Total
Balance, beginning of period	$		(26,871,400	)	$		(692,959	)	$		(3,820	)	$		(190	)	$		(27,568,369	)
Exchange differences arising on translation of foreign operations		(11,690,086		)		-				-				-				(11,690,086		)
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments		-				(22,437		)		-				-				(22,437		)
Debt instruments		-				3,625,573				-				-				3,625,573
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal		-				(926,919		)		-				-				(926,919		)
Loss allowance adjustments from debt instruments		-				(255		)		-				-				(255		)
Gain (loss) arising on changes in the fair value of hedging instruments		-				-				(42,749		)		-				(42,749		)
Transferred to initial carrying amount of hedged items		-				-				46,569				-				46,569
Share of other comprehensive income (loss) of associates		(176,309		)		(3,469		)		-				-				(179,778		)
Share of unearned stock-based employee compensation of associates		-				-				-				190				190
Income tax effect		-				466				-				-				466
Balance, end of period	$		(38,737,795	)	$		1,980,000		$		-		$		-		$		(36,757,795	)

The aforementioned other equity includes the changes in other equities of TSMC and TSMC’s share of its subsidiaries and associates.

e. Employee restricted stock awards

The issuance of employee restricted stock awards of no more than 2,600 thousand common shares has been approved by TSMC’s shareholders’ meeting held on July 26, 2021. The grants will be made free of charge.

29

 

22. NET REVENUE

a. Disaggregation of revenue from contracts with customers

	Three Months Ended June 30						Six Months Ended June 30
Product	2021			2020			2021			2020
Wafer	$		332,005,700	$		275,306,030	$		654,477,956	$		546,955,842
Others		40,139,422			35,392,337			80,077,396			74,339,708
	$		372,145,122	$		310,698,367	$		734,555,352	$		621,295,550

	Three Months Ended June 30						Six Months Ended June 30
Geography	2021			2020			2021			2020
Taiwan	$		41,751,615	$		27,697,800	$		99,480,649	$		57,932,878
United States		218,814,409			178,101,996			456,177,680			349,676,085
China		55,029,691			65,066,251			78,239,433			133,559,658
Europe, the Middle East and Africa		25,148,209			17,213,445			45,022,267			34,532,690
Japan		19,424,581			16,702,803			34,380,749			33,966,408
Others		11,976,617			5,916,072			21,254,574			11,627,831
	$		372,145,122	$		310,698,367	$		734,555,352	$		621,295,550

The Company categorized the net revenue mainly based on the countries where the customers are headquartered.

	Three Months Ended June 30						Six Months Ended June 30
Platform	2021			2020			2021			2020
Smartphone	$		157,744,895	$		145,843,876	$		320,952,692	$		297,775,153
High Performance Computing		143,391,014			104,115,544			271,234,401			197,109,154
Internet of Things		29,391,787			25,265,823			59,514,518			51,861,636
Automotive		16,395,914			11,392,379			31,001,454			24,454,106
Digital Consumer Electronics		13,540,616			14,213,141			28,954,701			29,790,979
Others		11,680,896			9,867,604			22,897,586			20,304,522
	$		372,145,122	$		310,698,367	$		734,555,352	$		621,295,550

	Three Months Ended June 30						Six Months Ended June 30
Resolution	2021			2020			2021			2020
5-nanometer	$		61,189,745	$		-	$		106,802,946	$		-
7-nanometer		101,327,247			100,229,077			212,348,622			195,936,641
10-nanometer		171,448			724,040			628,486			2,003,537
16-nanometer		45,342,157			48,709,060			90,649,739			100,128,339
20-nanometer		1,329,397			2,243,613			2,530,800			4,096,381
28-nanometer		37,518,815			38,479,201			74,182,990			76,479,155
40/45-nanometer		23,604,843			26,050,830			46,795,800			52,145,084
65-nanometer		16,335,174			15,576,755			31,958,401			31,560,957
90-nanometer		9,031,280			7,628,781			17,755,720			15,300,250
0.11/0.13 micron		9,307,618			7,575,474			18,005,084			14,597,903
0.15/0.18 micron		20,997,915			21,626,179			41,607,465			43,279,180
0.25 micron and above		5,850,061			6,463,020			11,211,903			11,428,415
Wafer revenue	$		332,005,700	$		275,306,030	$		654,477,956	$		546,955,842

30

 

b. Contract balances

	June 30, 2021		December 31, 2020		June 30, 2020		January 1, 2020
Contract liabilities (classified under accrued expenses and other current liabilities)	$	28,707,650	$	13,775,088	$	9,652,577	$	6,784,323

The changes in the contract liability balances primarily result from the timing difference between the satisfaction of performance obligation and the customer’s payment.

The Company recognized revenue from the beginning balance of contract liability, which amounted to NT$1,790,629 thousand and NT$539,843 thousand for the three months ended June 30, 2021 and 2020, respectively; and NT$10,804,405 thousand and NT$4,009,761 thousand for the six months ended June 30, 2021 and 2020, respectively.

23.INTEREST INCOME

	Three Months Ended June 30						Six Months Ended June 30
	2021			2020			2021			2020
Interest income
Bank deposits	$		708,406	$		1,459,001	$		1,339,467	$		3,372,072
Financial assets at FVTPL		-			1,182			-			1,768
Financial assets at FVTOCI		548,760			820,923			1,175,467			1,704,899
Financial assets at amortized cost		171,515			197,256			374,651			388,692
	$		1,428,681	$		2,478,362	$		2,889,585	$		5,467,431

24. FINANCE COSTS

	Three Months Ended June 30						Six Months Ended June 30
	2021			2020			2021			2020
Interest expense
Corporate bonds	$		1,083,200	$		220,213	$		1,798,304	$		388,655
Lease liabilities		47,150			60,160			96,927			128,375
Bank loans		3,964			121,131			11,093			414,197
Others		85			7,641			170			8,482
	$		1,134,399	$		409,145	$		1,906,494	$		939,709

31

 

25. OTHER GAINS AND LOSSES, NET

	Three Months Ended June 30								Six Months Ended June 30
	2021				2020				2021				2020
Gain on disposal of financial assets, net
Investments in debt instruments at FVTOCI	$		166,348		$		747,507		$		169,334		$		926,919
Gain (loss) on financial instruments at FVTPL, net
Mandatorily measured at FVTPL		955,618				(1,416,828		)		(2,398,909		)		(1,507,791		)
The reversal (accrual) of expected credit loss of financial assets
Investments in debt instruments at FVTOCI		(1,861		)		1,881				(1,617		)		255
Financial assets at amortized cost		4,648				(443		)		4,901				(443		)
Other gains, net		133,879				211,282				273,128				79,227
	$		1,258,632		$		(456,601	)	$		(1,953,163	)	$		(501,833	)

26. INCOME TAX

a. Income tax expense recognized in profit or loss

Income tax expense consisted of the following:

	Three Months Ended June 30								Six Months Ended June 30
	2021				2020				2021				2020
Current income tax expense
Current tax expense recognized in the current period	$		19,420,622		$		16,787,405		$		39,877,578		$		33,174,751
Income tax adjustments on prior years		158,443				47,228				158,443				75,630
Other income tax adjustments		31,501				(112,723		)		69,886				(79,462		)
		19,610,566				16,721,910				40,105,907				33,170,919
Deferred income tax benefit
The origination and reversal of temporary differences		(3,383,430		)		(1,215,786		)		(7,238,311		)		(2,580,510		)
Investment tax credits		(1,317,777		)		-				(2,632,597		)		-
		(4,701,207		)		(1,215,786		)		(9,870,908		)		(2,580,510		)
Income tax expense recognized in profit or loss	$		14,909,359		$		15,506,124		$		30,234,999		$		30,590,409

32

 

b. Income tax expense recognized in other comprehensive income

	Three Months Ended June 30					Six Months Ended June 30
	2021			2020		2021			2020
Deferred income tax benefit (expense)
Related to unrealized gain/loss on investments in equity instruments at FVTOCI	$	(74	)	$	352	$	(55,845	)	$	466

c. Income tax examination

The tax authorities have examined income tax returns of TSMC through 2019. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.

27. EARNINGS PER SHARE

	Three Months Ended June 30				Six Months Ended June 30
	2021		2020		2021		2020
Basic EPS	$	5.18	$	4.66	$	10.57	$	9.17
Diluted EPS	$	5.18	$	4.66	$	10.57	$	9.17

EPS is computed as follows:

	Amounts (Numerator)		Number of Shares (Denominator) (In Thousands)		EPS (NT$)
Three months ended June 30, 2021
Basic/Diluted EPS
Net income available to common shareholders of the parent	$	134,358,942		25,930,380	$	5.18
Three months ended June 30, 2020
Basic/Diluted EPS
Net income available to common shareholders of the parent	$	120,822,193		25,930,380	$	4.66
Six months ended June 30, 2021
Basic/Diluted EPS
Net income available to common shareholders of the parent	$	274,049,435		25,930,380	$	10.57
Six months ended June 30, 2020
Basic/Diluted EPS
Net income available to common shareholders of the parent	$	237,808,913		25,930,380	$	9.17

33

 

28. ADDITIONAL INFORMATION OF EXPENSES BY NATURE

	Three Months Ended June 30						Six Months Ended June 30
	2021			2020			2021			2020
a.Depreciation of property, plant and equipment and right-of-use assets
Recognized in cost of revenue	$		94,713,022	$		62,604,362	$		186,947,097	$		123,444,346
Recognized in operating expenses		6,949,727			6,371,650			13,615,902			12,609,545
Recognized in other operating income and expenses		61,437			5,556			134,054			11,418
	$		101,724,186	$		68,981,568	$		200,697,053	$		136,065,309
b.Amortization of intangible assets
Recognized in cost of revenue	$		1,394,961	$		1,279,576	$		2,681,865	$		2,174,974
Recognized in operating expenses		686,011			614,108			1,326,558			1,189,446
	$		2,080,972	$		1,893,684	$		4,008,423	$		3,364,420
c.Employee benefits expenses
Post-employment benefits
Defined contribution plans	$		943,574	$		658,511	$		1,713,829	$		1,339,335
Defined benefit plans		48,121			51,227			96,232			102,442
		991,695			709,738			1,810,061			1,441,777
Other employee benefits		38,417,965			33,212,840			75,682,063			65,000,511
	$		39,409,660	$		33,922,578	$		77,492,124	$		66,442,288
Employee benefits expense summarized by function
Recognized in cost of revenue	$		23,513,793	$		20,037,035	$		46,320,240	$		39,481,535
Recognized in operating expenses		15,895,867			13,885,543			31,171,884			26,960,753
	$		39,409,660	$		33,922,578	$		77,492,124	$		66,442,288

According to TSMC’s Articles of Incorporation, TSMC shall allocate compensation to directors and profit sharing bonus to employees of TSMC not more than 0.3% and not less than 1% of annual profits during the period, respectively.

34

 

TSMC accrued profit sharing bonus to employees based on a percentage of net income before income tax, profit sharing bonus to employees and compensation to directors during the period; compensation to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate. Accrued profit sharing bonus to employees is illustrated below:

	Three Months Ended June 30				Six Months Ended June 30
	2021		2020		2021		2020
Profit sharing bonus to employees	$	8,020,534	$	8,109,389	$	16,358,834	$	15,963,305

TSMC’s profit sharing bonus to employees and compensation to directors for 2020 and 2019 had been approved by the Board of Directors of TSMC, as illustrated below:

	Years Ended December 31
	2020		2019
	February 9,		February 11,
Resolution Date of TSMC’s Board of Directors in its meeting	2021		2020
Profit sharing bonus to employees	$	34,753,184	$	23,165,745
Compensation to directors	$	509,753	$	360,404

There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2020 and 2019, respectively.

The information about the appropriations of TSMC’s profit sharing bonus to employees and compensation to directors is available at the Market Observation Post System website.

29.CASH FLOW INFORMATION

a. Non-cash transactions

	Six Months Ended June 30
	2021				2020
Additions of financial assets at FVTOCI	$		148,920,027		$		128,557,706
Conversion of convertible bonds into equity securities		-				(120,548		)
Changes in accrued expenses and other current liabilities		2,665,377				(5,074,532		)
Payments for acquisition of financial assets at FVTOCI	$		151,585,404		$		123,362,626
Disposal of financial assets at FVTOCI	$		145,602,717		$		127,700,730
Changes in other financial assets		2,990,739				(1,472,744		)
Proceeds from disposal of financial assets at FVTOCI	$		148,593,456		$		126,227,986
Additions of property, plant and equipment	$		366,978,486		$		277,237,911
Changes in other financial assets		364,946				461,899
Changes in payables to contractors and equipment suppliers		47,697,813				41,604,862
Transferred to initial carrying amount of hedged items		(41,416		)		(46,569		)
Payments for acquisition of property, plant and equipment	$		414,999,829		$		319,258,103

(Continued)

35

 

	Six Months Ended June 30
	2021			2020
Additions of intangible assets	$	4,803,902		$	10,190,242
Changes in other financial assets		2,442					5,635
Changes in account payable		-				191,429
Changes in accrued expenses and other current liabilities		(682,778	)					(1,899,744		)
Payments for acquisition of intangible assets	$	4,123,566		$					8,487,562

(Concluded)

b. Reconciliation of liabilities arising from financing activities

								Non-cash changes
	Balance as of January 1, 2021			Financing Cash Flow				Foreign Exchange Movement				Leases Modifications			Other Changes (Note)				Balance as of June 30, 2021
Short-term loans	$		88,559,026	$		55,624,096		$		(4,518,505	)	$		-	$		(283,707	)	$		139,380,910
Bonds payable		256,705,084			154,930,702				(1,231,552		)		-			60,623				410,464,857
Long-term bank loans		1,967,611			1,210,000				-				-			(6,280		)		3,171,331
Lease liabilities		22,388,674			(1,082,055		)		(33,211		)		1,521,387			96,927				22,891,722
Total	$		369,620,395	$		210,682,743		$		(5,783,268	)	$		1,521,387	$		(132,437	)	$		575,908,820

								Non-cash changes
	Balance as of January 1, 2020			Financing Cash Flow				Foreign Exchange Movement				Leases Modifications			Other Changes (Note)			Balance as of June 30, 2020
Short-term loans	$		118,522,290	$		52,578,588		$		(1,553,928	)	$		-	$		-	$		169,546,950
Short-term bills payable		-			6,485,303				-				-			8,095			6,493,398
Bonds payable		56,900,000			38,337,937				-				-			1,744			95,239,681
Lease liabilities		17,316,917			(1,573,933		)		(29,490		)		5,307,822			128,375			21,149,691
Total	$		192,739,207	$		95,827,895		$		(1,583,418	)	$		5,307,822	$		138,214	$		292,429,720

Note: Other changes include discounts on short-term loans, amortization of bonds payable, amortization of long-term bank loan interest subsidy, financial cost of lease liabilities and amortization of short-term bills payable.

30.FINANCIAL INSTRUMENTS

a. Categories of financial instruments

	June 30, 2021			December 31, 2020			June 30, 2020
Financial assets
FVTPL (Note 1)	$		58,325	$		2,259,412	$		788,526
FVTOCI (Note 2)		131,364,292			129,918,694			137,599,593
Hedging financial assets		310			47			-
Amortized cost (Note 3)		944,073,720			826,293,705			636,689,032
	$		1,075,496,647	$		958,471,858	$		775,077,151
Financial liabilities
FVTPL (Note 4)	$		1,828,338	$		94,128	$		1,543,265
Hedging financial liabilities		10,216			1,169			14,839
Amortized cost (Note 5)		919,869,533			748,129,332			596,415,133
	$		921,708,087	$		748,224,629	$		597,973,237

Note 1: Financial assets mandatorily measured at FVTPL.

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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, short-term bills payable, 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 and guarantee deposits.

b. Financial risk management objectives

The Company manages its exposure to foreign currency risk, interest rate risk, equity price risk, credit risk and liquidity risk with the objective to reduce the potentially adverse effects the market uncertainties may have on its financial performance.

The plans for material treasury activities are reviewed by the Audit Committees and/or Board of Directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, the Company must comply with certain treasury procedures that provide guiding principles for overall financial risk management and segregation of duties.

c. Market risk

The Company is exposed to the financial market risks, primarily changes in foreign currency exchange rates, interest rates and equity investment prices. A portion of these risks is hedged.

Foreign currency risk

Substantially all the Company’s sales are denominated in U.S. dollars and over half of its capital expenditures are denominated in currencies other than NT dollars, primarily in U.S. dollars, Japanese yen and Euros. As a result, any significant fluctuations to its disadvantage in the exchanges rate of NT dollar against such currencies, in particular a weakening of U.S. dollar against NT dollar, would have an adverse impact on the revenue and operating profit as expressed in NT dollars. The Company uses foreign currency derivative contracts, such as currency forwards or currency swaps, to protect against currency exchange rate risks associated with non-NT dollar-denominated assets and liabilities and certain forecasted transactions. These hedges reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements on the assets and liabilities.

Based on a sensitivity analysis performed on the Company’s total monetary assets and liabilities for the six months ended June 30, 2021 and 2020, a hypothetical adverse foreign currency exchange rate change of 10% would have decreased its net income by NT$519,643 thousand and NT$1,066,845 thousand for the six months ended June 30, 2021 and 2020, respectively, after taking into account hedges and offsetting positions.

Interest rate risk

The Company is exposed to interest rate risks primarily related to its investment portfolio and outstanding debt. Changes in interest rates affect the interest earned on the Company’s cash and cash equivalents and fixed income securities, the fair value of those securities, as well as the interest paid on its debt.

The Company’s cash and cash equivalents as well as fixed income investments in both fixed- and floating-rate securities carry a degree of interest rate risk. The majority of the Company’s fixed income investments are fixed-rate securities, which are classified as financial assets at FVTOCI, and may have

37

 

their fair value adversely affected due to a rise in interest rates. At the same time, if interest rates fall, cash and cash equivalents as well as floating-rate securities may generate less interest income than expected. The Company has entered and may in the future enter intointerest rate futures to partially hedge the interest rate risk on its fixed income investments. However, these hedges can offset only a small portion of the financial impact from movements in interest rates.

Based on a sensitivity analysis performed on the Company’s fixed income investments at the end of the reporting period, interest rates increase of 100 basis points (1.00%) across all maturities would have decreased the Company’s other comprehensive income by NT$3,713,054 thousand and NT$3,152,977 thousand for the six months ended June 30, 2021 and 2020, respectively.

The majority of the Company’s short-term debt is floating-rate, hence a rise in interest rates may result in higher interest expense than expected. The majority of the Company’s long-term debt is fixed-rate and measured at amortized cost and as such, changes in interest rates would not affect the future cash flows and the carrying amount.

Other price risk

The Company is exposed to equity price risk arising from financial assets at FVTOCI.

Assuming a hypothetical decrease of 10% in prices of the equity investments at the end of the reporting period for the six months ended June 30, 2021 and 2020, the other comprehensive income would have decreased by NT$532,912 thousand and NT$419,261 thousand, respectively.

d. Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial losses to the Company. The Company is exposed to credit risks from operating activities, primarily accounts receivable, and from investing activities, primarily deposits, fixed-income investments and other financial instruments with banks. Credit risk is managed separately for business related and financial related exposures. As of the end of the reporting period, the Company’s maximum credit risk exposure is equal to the carrying amount of financial assets.

Business related credit risk

The Company’s accounts receivable are from its customers worldwide. The majority of the Company’s outstanding accounts receivable are not covered by collaterals or guarantees. While the Company has procedures to monitor and manage credit risk exposure on accounts receivable, there is no assurance such procedures will effectively eliminate losses resulting from its credit risk. This risk is heightened during periods when economic conditions worsen.

As of June 30, 2021, December 31, 2020 and June 30, 2020, the Company’s ten largest customers accounted for 78%, 79% and 78% of accounts receivable, respectively. The Company considers the concentration of credit risk for the remaining accounts receivable not material.

Financial credit risk

The Company mitigates its financial credit risk by selecting counterparties with investment grade credit ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors and reviews the limit applied to counterparties and adjusts the limit according to market conditions and the credit standing of the counterparties.

The objective of the Company’s investment policy is to achieve a return that will allow the Company to preserve principal and support liquidity requirements. The policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer. The Company assesses whether there has been a significant increase in credit risk in the invested securities since initial

38

 

recognition by reviewing changes in external credit ratings, financial market conditions and material information of the issuers.

The Company assesses the 12-month expected credit loss and lifetime expected credit loss based on the probability of default and loss given default provided by external credit rating agencies. The current credit risk assessment policies are as follows:

Category	Description	Basis for Recognizing Expected Credit Loss	Expected Credit Loss Ratio
Performing	Credit rating is investment grade on valuation date	12 months expected credit loss		0-0.1%
Doubtful	Credit rating is non-investment grade on valuation date	Lifetime expected credit loss-not credit impaired		-
In default	Credit rating is CC or below on valuation date	Lifetime expected credit loss-credit impaired		-
Write-off	There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery	Amount is written off		-

For the six months ended June 30, 2021 and 2020, the expected credit loss decreased NT$3,563 thousand and NT$545 thousand, respectively. The changes were mainly due to investment portfolio adjustment.

e. Liquidity risk management

The objective of liquidity risk management is to ensure the Company has sufficient liquidity to fund its business operations over the next 12 months. The Company manages its liquidity risk by maintaining adequate cash and cash equivalents, financial assets at FVTOCI-current, financial assets at amortized cost-current and sufficient cost-efficient funding.

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments, including principal and interest.

	Less Than 1 Year				1-3 Years			3-5 Years			More Than 5 Years			Total
June 30, 2021
Non-derivative financial liabilities
Short-term loans	$		139,286,411		$		-	$		-	$		-	$		139,286,411
Accounts payable (including related parties)		41,229,913				-			-			-			41,229,913
Payables to contractors and equipment suppliers		107,146,153				-			-			-			107,146,153
Accrued expenses and other current liabilities		81,877,944				-			-			-			81,877,944
Bonds payable		4,695,789				31,393,955			111,057,181			321,209,197			468,356,122
Long-term bank loans		15,145				1,711,443			1,529,118			-			3,255,706
Lease liabilities (including those classified under accrued expenses and other current liabilities)		2,056,447				3,547,598			3,254,813			15,437,513			24,296,371
		376,307,802				36,652,996			115,841,112			336,646,710			865,448,620
Derivative financial instruments
Forward exchange contracts
Outflows		202,441,828				-			-			-			202,441,828
Inflows		(201,256,293		)		-			-			-			(201,256,293		)
		1,185,535				-			-			-			1,185,535
	$		377,493,337		$		36,652,996	$		115,841,112	$		336,646,710	$		866,634,155

(Continued)

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	Less Than 1 Year				1-3 Years			3-5 Years			More Than 5 Years			Total
December 31, 2020
Non-derivative financial liabilities
Short-term loans	$		88,557,526		$		-	$		-	$		-	$		88,557,526
Accounts payable (including related parties)		41,095,002				-			-			-			41,095,002
Payables to contractors and equipment suppliers		157,804,961				-			-			-			157,804,961
Accrued expenses and other current liabilities		71,995,747				-			-			-			71,995,747
Bonds payable		5,327,971				27,631,589			59,986,812			207,152,135			300,098,507
Long-term bank loans		8,000				847,389			1,170,944			-			2,026,333
Lease liabilities (including those classified under accrued expenses and other current liabilities)		2,024,212				3,566,719			3,198,845			15,067,857			23,857,633
		366,813,419				32,045,697			64,356,601			222,219,992			685,435,709
Derivative financial instruments
Forward exchange contracts
Outflows		177,764,155				-			-			-			177,764,155
Inflows		(181,457,960		)		-			-			-			(181,457,960		)
		(3,693,805		)		-			-			-			(3,693,805		)
	$		363,119,614		$		32,045,697	$		64,356,601	$		222,219,992	$		681,741,904
June 30, 2020
Non-derivative financial liabilities
Short-term loans	$		169,558,535		$		-	$		-	$		-	$		169,558,535
Short-term bills payable		6,500,000				-			-			-			6,500,000
Accounts payable (including related parties)		39,533,744				-			-			-			39,533,744
Payables to contractors and equipment suppliers		97,739,201				-			-			-			97,739,201
Accrued expenses and other current liabilities		57,970,002				-			-			-			57,970,002
Bonds payable		13,589,809				17,774,765			20,217,199			47,452,174			99,033,947
Lease liabilities (including those classified under accrued expenses and other current liabilities)		2,201,266				3,403,416			3,110,103			14,029,185			22,743,970
		387,092,557				21,178,181			23,327,302			61,481,359			493,079,399
Derivative financial instruments
Forward exchange contracts
Outflows		222,691,323				-			-			-			222,691,323
Inflows		(223,703,226		)		-			-			-			(223,703,226		)
		(1,011,903		)		-			-			-			(1,011,903		)
	$		386,080,654		$		21,178,181	$		23,327,302	$		61,481,359	$		492,067,496

(Concluded)

Information about the maturity analysis for lease liabilities more than 5 years:

	5-10 Years		10-15 Years		15-20 Years		More Than 20 Years		Total
June 30, 2021
Lease liabilities	$	7,658,578	$	5,300,326	$	2,290,803	$	187,806	$	15,437,513
December 31, 2020
Lease liabilities	$	7,401,969	$	5,253,877	$	2,255,185	$	156,826	$	15,067,857
June 30, 2020
Lease liabilities	$	6,919,805	$	4,969,639	$	2,135,897	$	3,844	$	14,029,185

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f. Fair value of financial instruments

1) Fair value measurements recognized in the consolidated balance sheets

Fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value is observable:

● 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).

The timing of transfers between levels within the fair value hierarchy is at the end of reporting period.

2) Fair value of financial instruments that are measured at fair value on a recurring basis

Fair value hierarchy

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis:

	June 30, 2021
	Level 1			Level 2			Level 3			Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts	$		-	$		58,325	$		-	$		58,325
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds	$		-	$		58,907,886	$		-	$		58,907,886
Agency bonds/Agency mortgage-backed securities		-			32,188,798			-			32,188,798
Government bonds		24,041,328			80,575			-			24,121,903
Asset-backed securities		-			7,523,443			-			7,523,443
Investments in equity instruments
Non-publicly traded equity investments		-			-			5,389,958			5,389,958
Publicly traded stocks		52,499			-			-			52,499
Notes and accounts receivable, net		-			3,179,805			-			3,179,805
	$		24,093,827	$		101,880,507	$		5,389,958	$		131,364,292
Hedging financial assets
Fair value hedges
Interest rate futures contracts	$		310	$		-	$		-	$		310

(Continued)

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	June 30, 2021
	Level 1		Level 2		Level 3		Total
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts	$	-	$	1,828,338	$	-	$	1,828,338
Hedging financial liabilities
Fair value hedges
Interest rate futures contracts	$	10,216	$	-	$	-	$	10,216

(Concluded)

	December 31, 2020
	Level 1			Level 2			Level 3			Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts	$		-	$		2,259,412	$		-	$		2,259,412
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds	$		-	$		56,593,623	$		-	$		56,593,623
Agency bonds/Agency mortgage-backed securities		-			43,977,113			-			43,977,113
Government bonds		13,279,154			180,349			-			13,459,503
Asset-backed securities		-			8,368,264			-			8,368,264
Investments in equity instruments
Non-publicly traded equity investments		-			-			4,514,940			4,514,940
Publicly traded stocks		49,950			-			-			49,950
Notes and accounts receivable, net		-			2,955,301			-			2,955,301
	$		13,329,104	$		112,074,650	$		4,514,940	$		129,918,694
Hedging financial assets
Fair value hedges
Interest rate futures contracts	$		47	$		-	$		-	$		47
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts	$		-	$		94,128	$		-	$		94,128
Hedging financial liabilities
Fair value hedges
Interest rate futures contracts	$		1,169	$		-	$		-	$		1,169

Because certain equity investment’s quoted price (unadjusted) in active markets became available in the fourth quarter of 2020, its fair value hierarchy was transferred from Level 2 to Level 1.

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	June 30, 2020
	Level 1			Level 2			Level 3			Total
Financial assets at FVTPL
Mandatorily measured at FVTPL
Forward exchange contracts	$		-	$		754,789	$		-	$		754,789
Agency mortgage-backed securities		-			33,737			-			33,737
	$		-	$		788,526	$		-	$		788,526
Financial assets at FVTOCI
Investments in debt instruments
Corporate bonds	$		-	$		59,747,143	$		-	$		59,747,143
Agency bonds/Agency mortgage-backed securities		-			48,777,759			-			48,777,759
Government bonds		9,909,343			145,187			-			10,054,530
Asset-backed securities		-			10,824,156			-			10,824,156
Investments in equity instruments
Non-publicly traded equity investments		-			65,364			4,235,155			4,300,519
Notes and accounts receivable, net		-			3,895,486			-			3,895,486
	$		9,909,343	$		123,455,095	$		4,235,155	$		137,599,593
Financial liabilities at FVTPL
Held for trading
Forward exchange contracts	$		-	$		1,543,265	$		-	$		1,543,265
Hedging financial liabilities
Fair value hedges
Interest rate futures contracts	$		14,839	$		-	$		-	$		14,839

Reconciliation of Level 3 fair value measurements of financial assets

The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTOCI and financial assets at FVTPL. Reconciliations for the six months ended June 30, 2021 and 2020 are as follows:

	Six Months Ended June 30
	2021				2020
Balance, beginning of period	$		4,514,940		$		4,208,900
Additions		153,680				141,974
Recognized in profit or loss		-				(3,821		)
Recognized in other comprehensive income or loss		814,395				(48,976		)
Disposals and proceeds from return of capital of investments		(62,837		)		-
Effect of exchange rate changes		(30,220		)		(62,922		)
Balance, end of period	$		5,389,958		$		4,235,155

Valuation techniques and assumptions used in Level 2 fair value measurement

The fair values of financial assets and financial liabilities are determined as follows:

● The fair values of corporate bonds, agency bonds, agency mortgage-backed securities, asset-backed securities, government bonds and non-publicly traded equity investments - equity investments trading on the Emerging Stock Board are determined by quoted market prices provided by third party pricing services.

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● The fair values of forward exchange contracts are measured using forward exchange 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.

Valuation techniques and assumptions used in Level 3 fair value measurement

The fair values of non-publicly traded equity investments (excluding those trading on the Emerging Stock Board) are mainly determined by using the asset approach and market approach.

The asset approach takes into account the net asset value measured at the fair value by independent parties. On June 30, 2021, December 31, 2020 and June 30, 2020, the Company uses unobservable inputs derived from discount for lack of marketability of 10%. When other inputs remain equal, the fair value will decrease by NT$46,218 thousand, NT$39,006 thousand and NT$35,044 thousand, respectively, if discounts for lack of marketability increase by 1%.

For the remaining few investments, the market approach is used to arrive at their fair values, for which the recent financing activities of investees, the market transaction prices of the similar companies and market conditions are considered.

3) Fair value of financial instruments that are not measured at fair value

Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments in the consolidated financial statements that are not measured at fair value approximate their fair values.

Fair value hierarchy

The table below sets out the fair value hierarchy for the Company’s financial assets and liabilities which are not required to be measured at fair value:

	June 30, 2021
	Carrying		Level 2
	Amount		Fair Value
Financial assets
Financial assets at amortized costs
Corporate bonds	$	4,336,636	$	4,373,891
Financial liabilities
Financial liabilities at amortized costs
Bonds payable	$	410,464,857	$	407,330,000

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	December 31, 2020
	Carrying		Level 2
	Amount		Fair Value
Financial assets
Financial assets at amortized costs
Corporate bonds	$	10,970,199	$	11,053,550
Financial liabilities
Financial liabilities at amortized costs
Bonds payable	$	256,705,084	$	257,551,196

	June 30, 2020
	Carrying			Level 2
	Amount			Fair Value
Financial assets
Financial assets at amortized costs
Corporate bonds	$		8,850,706	$		8,919,878
Financial liabilities
Financial liabilities at amortized costs
Bonds payable	$		95,239,681	$		96,053,314
Short-term bills payable		6,493,398			6,491,858
	$		101,733,079	$		102,545,172

Valuation techniques and assumptions used in Level 2 fair value measurement

The fair values of corporate bonds and the Company’s bonds payable are determined by quoted market prices provided by third party pricing services.

The fair value of the Company’s short-term bills payable is determined by the present value of future cash flows based on the discounted curves that are derived from the quoted market prices.

31. RELATED PARTY TRANSACTIONS

Intercompany balances and transactions between TSMC and its subsidiaries, which are related parties of TSMC, have been eliminated upon consolidation; therefore those items are not disclosed in this note. The following is a summary of significant transactions between the Company and other related parties:

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

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b. Net revenue

		Three Months Ended June 30				Six Months Ended June 30
		2021		2020		2021		2020
Item	Related Party Categories
Net revenue from sale of goods	Associates	$	1,816,016	$	1,864,528	$	3,447,107	$	3,681,927
Net revenue from royalties	Associates	$	52,972	$	51,822	$	104,954	$	103,369

c. Purchases

	Three Months Ended June 30				Six Months Ended June 30
	2021		2020		2021		2020
Related Party Categories
Associates	$	2,006,612	$	2,018,917	$	3,903,133	$	3,733,250

d. Receivables from related parties

		June 30, 2021			December 31, 2020			June 30, 2020
Item	Related Party Name/Categories
Receivables from	GUC	$		675,490	$		370,643	$		792,557
related parties	Xintec		108,907			187,488			99,134
		$		784,397	$		558,131	$		891,691
Other receivables	VIS	$		1,639,722	$		4,311	$		1,505,369
from related	SSMC		48,879			45,291			1,075,495
parties	Others		23,051			1,043			206
		$		1,711,652	$		50,645	$		2,581,070

e. Payables to related parties

		June 30, 2021			December 31, 2020			June 30, 2020
Item	Related Party Name/Categories
Payables to related	Xintec	$		727,551	$		1,358,624	$		534,092
parties	SSMC		412,226			400,819			514,797
	VIS		334,046			311,406			307,524
	Others		30,333			36,869			76,592
		$		1,504,156	$		2,107,718	$		1,433,005

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f. Accrued expenses and other current liabilities

		June 30, 2021		December 31, 2020		June 30, 2020
Item	Related Party Categories
Contract liabilities	Associates	$	333,101	$	-	$	-

g. Others

		Three Months Ended June 30				Six Months Ended June 30
		2021		2020		2021		2020
Item	Related Party Categories
Manufacturing expenses	Associates	$	949,613	$	864,671	$	2,566,519	$	1,821,957
Research and development expenses	Associates	$	39,202	$	65,667	$	81,920	$	87,269
General and administrative expenses	Other related parties	$	35,000	$	30,000	$	70,000	$	60,000

The sales prices and payment terms to related parties were not significantly different from those of sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements.

The Company leased factory and office from associates. The lease terms and prices were both determined in accordance with mutual agreements. The rental expenses were paid to associates monthly; the related expenses were both classified under manufacturing expenses.

h. Compensation of key management personnel

The compensation to directors and other key management personnel were as follows:

	Three Months Ended June 30						Six Months Ended June 30
	2021			2020			2021			2020
Short-term employee benefits	$		689,912	$		649,062	$		1,302,471	$		1,207,363
Post-employment benefits		776			655			1,495			1,307
	$		690,688	$		649,717	$		1,303,966	$		1,208,670

The compensation to directors and other key management personnel were determined by the Compensation Committee of TSMC in accordance with the individual performance and market trends.

47

 

32. PLEDGED ASSETS

The Company provided certificate of deposits recorded in other financial assets as collateral mainly for building construction, building lease agreements and energy purchase agreements. As of June 30, 2021, December 31, 2020 and June 30, 2020, the aforementioned other financial assets amounted to NT$264,553 thousand, NT$135,375 thousand and NT$116,961 thousand, respectively.

33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Significant contingent liabilities and unrecognized commitments of the Company as of the end of the reporting period, excluding those disclosed in other notes, were as follows:

a. Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C. Government or its designee approved by TSMC can use up to 35% of TSMC’s capacity provided TSMC’s outstanding commitments to its customers are not prejudiced. The term of this agreement is for five years beginning from January 1, 1987 and is automatically renewed for successive periods of five years unless otherwise terminated by either party with one year prior notice. As of June 30, 2021, the R.O.C. Government did not invoke such right.

b. Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in Singapore. TSMC’s equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips 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 39% and 61% of the SSMC shares, respectively. TSMC and NXP B.V. are required, in the aggregate, to purchase at least 70% of SSMC’s capacity, but TSMC alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a specific percentage of its capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. There was no default from the aforementioned commitment as of June 30, 2021.

c. TSMC entered into long-term purchase agreements of materials and supplies with multiple suppliers. The relative minimum purchase quantity and price are specified in the agreements.

d. TSMC entered into a long-term purchase agreement of equipment. The relative purchase quantity and price are specified in the agreement.

e. TSMC entered into long-term energy purchase agreements with multiple suppliers. The relative purchase period, quantity and price are specified in the agreements.

f. Amounts available under unused letters of credit as of June 30, 2021, December 31, 2020 and June 30, 2020 were NT$137,772 thousand, NT$56,194 thousand and NT$58,858 thousand, respectively.

48

 

34. EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND LIABILITIES

The following information was summarized according to the foreign currencies other than the functional currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant financial assets and liabilities denominated in foreign currencies were as follows:

	Foreign Currencies (In Thousands)			Exchange Rate (Note 1)			Carrying Amount (In Thousands)
June 30, 2021
Financial assets
Monetary items
USD	$		7,172,316		27.889		$		200,028,730
USD		1,749,810			6.461	(Note 2)		48,800,457
EUR		6,811			33.219			226,248
JPY		22,225,973			0.2526			5,614,281
Financial liabilities
Monetary items
USD		7,022,872			27.889			195,860,888
EUR		4,287,817			33.219			142,436,982
JPY		78,286,201			0.2526			19,775,094
December 31, 2020
Financial assets
Monetary items
USD		6,984,545			28.097			196,244,748
USD		785,171			6.540	(Note 2)		22,060,962
EUR		13,820			34.587			478,002
JPY		83,593,234			0.2729			22,812,594
Financial liabilities
Monetary items
USD		6,966,889			28.097			195,748,671
EUR		4,150,215			34.587			143,543,499
JPY		105,112,663			0.2729			28,685,246

(Continued)

49

 

	Foreign Currencies (In Thousands)			Exchange Rate (Note 1)			Carrying Amount (In Thousands)
June 30, 2020
Financial assets
Monetary items
USD	$		5,174,665		29.429		$		152,285,206
USD		496,369			7.074	(Note 2)		14,607,645
EUR		25,644			33.108			849,010
JPY		80,184,719			0.2731			21,898,447
Financial liabilities
Monetary items
USD		7,010,449			29.429			206,310,512
EUR		4,092,463			33.108			135,493,271
JPY		90,678,234			0.2731			24,764,226

(Concluded)

Note 1: Except as otherwise noted, exchange rate represents the number of NT dollar for which one foreign currency could be exchanged.

Note 2: The exchange rate represents the number of RMB for which one U.S. dollar could be exchanged.

Please refer to the consolidated statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss for the three months and the six months ended June 30, 2021 and 2020, respectively. Since there were varieties of foreign currency transactions and functional currencies within the subsidiaries of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact.

35. ADDITIONAL DISCLOSURES

Following are the additional disclosures required by the Securities and Futures Bureau for TSMC:

a. Financings provided: See Table 1 attached;

b. Endorsement/guarantee provided: See Table 2 attached;

c. Marketable securities held (excluding investments in subsidiaries and associates): See Table 3 attached;

d. Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: See Table 4 attached;

e. Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in capital: See Table 5 attached;

f. Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None;

g. Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: See Table 6 attached;

50

 

h. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 7 attached;

i. Information about the derivative financial instruments transaction: See Notes 7 and 10;

j. Others: The business relationship between the parent and the subsidiaries and significant transactions between them: See Table 8 attached;

k. Names, locations, and related information of investees over which TSMC exercises significant influence (excluding information on investment in mainland China): See Table 9 attached;

l. Information on investment in mainland China

1) The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: See Table 10 attached.

2) Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland China on financial reports: See Table 8 attached.

m. Information of major shareholders

List of all shareholders with ownership of 5 percent or greater showing the names and the number of shares and percentage of ownership held by each shareholder: See Table 11 attached.

36. OPERATING SEGMENTS INFORMATION

TSMC’s chief operating decision makers periodically review operating results, focusing on operating income generated by foundry segment. Operating results are used for resource allocation and/or performance assessment. As a result, the Company has only one operating segment, the foundry segment. The foundry segment engages mainly in the manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks.

The basis for the measurement of income from operations is the same as that for the preparation of financial statements. Please refer to the consolidated statements of comprehensive income for the related segment revenue and operating results.

51

 

TABLE 1

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

FINANCINGS PROVIDED

FOR THE SIX MONTHS ENDED JUNE 30, 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

No.	Financing Company	Counterparty	Financial Statement Account	Related Party	Maximum Balance for the Period (Foreign Currencies in Thousands) (Note 3)			Ending Balance (Foreign Currencies in Thousands) (Note 3)			Amount Actually Drawn (Foreign Currencies in Thousands)			Interest Rate		Nature for Financing	Transaction Amounts			Reason for Financing	Allowance for Bad Debt			Collateral				Financing Limits for Each Borrowing Company (Notes 1 and 2)			Financing Company’s Total Financing Amount Limits (Notes 1 and 2)
																								Item	Value
1	TSMC China	TSMC Nanjing	Other receivables from related parties	Yes	$ (RMB (US$	34,796,270 5,800,000 350,000	)& )	$ (RMB (US$	34,796,270 5,800,000 350,000	)& )	$ (RMB	24,171,840 5,600,000	)		1.30%-1.50%	The need for long-term  and short-term financing	$		-	Operating capital	$		-	-	$		-	$		68,772,843	$		68,772,843
2	TSMC Global	TSMC	Other receivables from related parties	Yes	(US$	103,189,300 3,700,000	)	(US$	103,189,300 3,700,000	)	(US$	103,189,300 3,700,000	)		0.00%	The need for short-term financing		-		Operating capital		-		-		-			758,575,513			758,575,513

Note 1: The aggregate amount available for lending to TSMC Nanjing from TSMC China shall not exceed the net worth of TSMC China.

Note 2: The aggregate amount available for lending to TSMC from TSMC Global shall not exceed two times (200%) of the net worth of TSMC Global.

Note 3: The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.

52

 

TABLE 2

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE SIX MONTHS ENDED JUNE 30, 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

No.	Endorsement/ Guarantee Provider	Guaranteed Party		Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Notes 1 and 2)			Maximum Balance for the Period (Foreign Currencies in Thousands) (Note 3)			Ending Balance (Foreign Currencies in Thousands) (Note 3)			Amount Actually Drawn (Foreign Currencies in Thousands)			Amount of Endorsement/ Guarantee Collateralized by Properties			Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements		Maximum Endorsement/ Guarantee Amount Allowable (Notes 1 and 2)			Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship
0	TSMC	TSMC North America	Subsidiary	$		497,946,450	$ (US$	2,320,736 83,213	)	$ (US$	2,320,736 83,213	)	$ (US$	2,320,736 83,213	)	$		-		0.12%	$		497,946,450	Yes	No	No
		TSMC Global	Subsidiary		497,946,450		(US$	209,167,500 7,500,000	)	(US$	209,167,500 7,500,000	)	(US$	181,278,500 6,500,000	)		-			10.50%		497,946,450		Yes	No	No
1	TSMC Japan	TSMC JDC	The same parent company		199,178,580		(JPY	333,432 1,320,000	)	(JPY	333,432 1,320,000	)	(JPY	333,432 1,320,000	)		-			0.02%		199,178,580		No	No	No

Note 1: The total amount of the endorsement/guarantee provided by TSMC to TSMC North America and TSMC Global shall not exceed twenty-five percent (25%) of TSMC’s net worth.

Note 2: The total amount of the endorsement/guarantee provided by TSMC Japan to TSMC JDC shall not exceed ten percent (10%) of TSMC’s net worth.

Note 3: The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.

53

 

TABLE 3

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

MARKETABLE SECURITIES HELD

JUNE 30, 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021												Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)				Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC	Non-publicly traded equity investments
	United Industrial Gases Co., Ltd.	-	Financial assets at fair value through other comprehensive income		21,230	$		491,883			10	$		491,883
	Shin-Etsu Handotai Taiwan Co., Ltd.	-	〃		10,500		345,744				7		345,744
	Global Investment Holding Inc.	-	〃		10,442		105,972				6		105,972
	Crimson Asia Capital	-	〃		-		368				1		368
	W.K. Technology Fund IV	-	〃		202		271				2		271
TSMC Partners	Non-publicly traded equity investments
	Shanghai Walden Venture Capital Enterprise	-	Financial assets at fair value through other comprehensive income		-	US$			28,539		6	US$			28,539
	China Walden Venture Investments II, L.P.	-	〃		-	US$			12,472		9	US$			12,472
	China Walden Venture Investments III, L.P.	-	〃		-	US$			5,439		4	US$			5,439
	Inpria Corporation	-	〃		1,778	US$			3,600		4	US$			3,600
	Mcube Inc.	-	〃		6,333		-				10		-
	Tela Innovations	-	〃		10,440		-				25		-
TSMC Global	Corporate bond
	Bank of America Corporation	-	Financial assets at fair value through other comprehensive income		-	US$			71,035		N/A	US$			71,035
	Morgan Stanley	-	〃		-	US$			47,626		N/A	US$			47,626
	JPMorgan Chase & Co.	-	〃		-	US$			47,433		N/A	US$			47,433
	Citigroup Inc.	-	〃		-	US$			43,082		N/A	US$			43,082
	The Goldman Sachs Group, Inc.	-	〃		-	US$			42,202		N/A	US$			42,202
	Mitsubishi UFJ Financial Group, Inc.	-	〃		-	US$			33,247		N/A	US$			33,247
	AbbVie Inc.	-	〃		-	US$			32,445		N/A	US$			32,445
	Wells Fargo & Company	-	〃		-	US$			28,973		N/A	US$			28,973
	Sumitomo Mitsui Financial Group, Inc.	-	〃		-	US$			28,668		N/A	US$			28,668
	Athene Global Funding	-	〃		-	US$			27,074		N/A	US$			27,074
	HSBC Holdings plc	-	〃		-	US$			26,000		N/A	US$			26,000
	Lloyds Banking Group plc	-	〃		-	US$			23,318		N/A	US$			23,318
	Oracle Corporation	-	〃		-	US$			21,974		N/A	US$			21,974
	Apple Inc.	-	〃		-	US$			21,426		N/A	US$			21,426
	BNP Paribas SA	-	〃		-	US$			18,783		N/A	US$			18,783
	Hyundai Capital America, Inc.	-	〃		-	US$			18,623		N/A	US$			18,623
	Volkswagen Group of America Finance, LLC	-	〃		-	US$			17,590		N/A	US$			17,590
	Mizuho Financial Group, Inc.	-	〃		-	US$			17,566		N/A	US$			17,566
	AT&T Inc.	-	〃		-	US$			17,544		N/A	US$			17,544
	Metropolitan Life Global Funding I	-	〃		-	US$			17,470		N/A	US$			17,470
	Verizon Communications Inc.	-	〃		-	US$			17,385		N/A	US$			17,385
	Banco Santander, S.A.	-	〃		-	US$			17,282		N/A	US$			17,282
	NatWest Markets Plc	-	〃		-	US$			16,541		N/A	US$			16,541
	Amazon.com, Inc.	-	〃		-	US$			16,136		N/A	US$			16,136

(Continued)

54

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021								Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	Nationwide Building Society	-	Financial assets at fair value through other comprehensive income		-	US$	14,926		N/A	US$	14,926
	Toyota Motor Credit Corporation	-	〃		-	US$	14,728		N/A	US$	14,728
	Nordea Bank Abp	-	〃		-	US$	14,648		N/A	US$	14,648
	NTT Finance Corporation	-	〃		-	US$	14,302		N/A	US$	14,302
	The Toronto-Dominion Bank	-	〃		-	US$	14,165		N/A	US$	14,165
	Principal Life Global Funding II	-	〃		-	US$	13,851		N/A	US$	13,851
	BP Capital Markets America, Inc.	-	〃		-	US$	13,545		N/A	US$	13,545
	Protective Life Global Funding	-	〃		-	US$	13,348		N/A	US$	13,348
	Barclays PLC	-	〃		-	US$	13,066		N/A	US$	13,066
	Sumitomo Mitsui Trust Bank, Limited	-	〃		-	US$	12,935		N/A	US$	12,935
	Chevron Corporation	-	〃		-	US$	12,567		N/A	US$	12,567
	Comcast Corporation	-	〃		-	US$	12,313		N/A	US$	12,313
	National Securities Clearing Corporation	-	〃		-	US$	11,948		N/A	US$	11,948
	Société Générale Société anonyme	-	〃		-	US$	11,688		N/A	US$	11,688
	Credit Suisse AG, New York Branch	-	〃		-	US$	11,622		N/A	US$	11,622
	Bristol-Myers Squibb Company	-	〃		-	US$	11,501		N/A	US$	11,501
	Equifax Inc.	-	〃		-	US$	11,410		N/A	US$	11,410
	The Bank of Nova Scotia	-	〃		-	US$	10,933		N/A	US$	10,933
	AstraZeneca Finance LLC	-	〃		-	US$	10,906		N/A	US$	10,906
	Banque Fédérative du Crédit Mutuel Société anonyme	-	〃		-	US$	10,897		N/A	US$	10,897
	Credit Agricole SA London Branch	-	〃		-	US$	10,589		N/A	US$	10,589
	Daimler Finance North America LLC	-	〃		-	US$	10,432		N/A	US$	10,432
	Equitable Financial Life Global Funding	-	〃		-	US$	10,379		N/A	US$	10,379
	Roper Technologies, Inc.	-	〃		-	US$	10,271		N/A	US$	10,271
	Equinor ASA	-	〃		-	US$	10,141		N/A	US$	10,141
	U.S. Bancorp	-	〃		-	US$	9,982		N/A	US$	9,982
	AIG Global Funding	-	〃		-	US$	9,965		N/A	US$	9,965
	Standard Chartered PLC	-	〃		-	US$	9,831		N/A	US$	9,831
	American International Group, Inc.	-	〃		-	US$	9,372		N/A	US$	9,372
	Canadian Imperial Bank of Commerce	-	〃		-	US$	9,200		N/A	US$	9,200
	Royal Bank of Canada	-	〃		-	US$	9,157		N/A	US$	9,157
	Shire Acquisitions Investments Ireland Limited	-	〃		-	US$	9,067		N/A	US$	9,067
	NIKE, Inc.	-	〃		-	US$	9,066		N/A	US$	9,066
	New York Life Global Funding	-	〃		-	US$	8,959		N/A	US$	8,959
	Santander UK plc	-	〃		-	US$	8,695		N/A	US$	8,695
	Fédération des caisses Desjardins du Québec	-	〃		-	US$	8,652		N/A	US$	8,652
	Macquarie Group Limited	-	〃		-	US$	8,527		N/A	US$	8,527
	DTE Energy Company	-	〃		-	US$	8,459		N/A	US$	8,459
	KfW	-	〃		-	US$	8,388		N/A	US$	8,388
	UnitedHealth Group Incorporated	-	〃		-	US$	8,337		N/A	US$	8,337
	Guardian Life Global Funding	-	〃		-	US$	8,297		N/A	US$	8,297
	General Electric Company	-	〃		-	US$	8,295		N/A	US$	8,295
	International Bank for Reconstruction and Development	-	〃		-	US$	8,250		N/A	US$	8,250
	Santander UK Group Holdings plc	-	〃		-	US$	8,155		N/A	US$	8,155
	Great-West Lifeco U.S. Finance 2020, Lp	-	〃		-	US$	8,104		N/A	US$	8,104
	Inter-American Development Bank	-	〃		-	US$	8,081		N/A	US$	8,081
	Tencent Holdings Limited	-	〃		-	US$	8,055		N/A	US$	8,055
	ING Groep N.V.	-	〃		-	US$	8,008		N/A	US$	8,008
	Suncorp-Metway Limited	-	〃		-	US$	8,008		N/A	US$	8,008

(Continued)

55

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021								Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	NextEra Energy Capital Holdings, Inc.	-	Financial assets at fair value through other comprehensive income		-	US$	7,897		N/A	US$	7,897
	Pacific Life Global Funding II	-	〃		-	US$	7,613		N/A	US$	7,613
	Credit Suisse Group AG	-	〃		-	US$	7,603		N/A	US$	7,603
	Siemens Financieringsmaatschappij N.V.	-	〃		-	US$	7,591		N/A	US$	7,591
	Bank of Montreal	-	〃		-	US$	7,455		N/A	US$	7,455
	Intuit Inc.	-	〃		-	US$	7,395		N/A	US$	7,395
	Prudential Funding Corp.	-	〃		-	US$	7,252		N/A	US$	7,252
	BPCE SA	-	〃		-	US$	7,222		N/A	US$	7,222
	AstraZeneca PLC	-	〃		-	US$	7,190		N/A	US$	7,190
	DNB Bank ASA	-	〃		-	US$	7,166		N/A	US$	7,166
	Huntington Bancshares Incorporated	-	〃		-	US$	7,153		N/A	US$	7,153
	Cargill, Incorporated	-	〃		-	US$	6,632		N/A	US$	6,632
	Macquarie Bank Limited	-	〃		-	US$	6,589		N/A	US$	6,589
	Montpelier Re Holdings Ltd.	-	〃		-	US$	6,504		N/A	US$	6,504
	Deutsche Bank AG - New York Branch	-	〃		-	US$	6,502		N/A	US$	6,502
	UBS Group Funding (Switzerland) AG	-	〃		-	US$	6,468		N/A	US$	6,468
	Banco Bilbao Vizcaya Argentaria, S.A.	-	〃		-	US$	6,421		N/A	US$	6,421
	Exxon Mobil Corporation	-	〃		-	US$	6,383		N/A	US$	6,383
	Scentre Group Trust 1	-	〃		-	US$	6,325		N/A	US$	6,325
	ANZ New Zealand (Int'l) Limited	-	〃		-	US$	6,312		N/A	US$	6,312
	Northwestern Mutual Global Funding	-	〃		-	US$	6,260		N/A	US$	6,260
	Fox Corporation	-	〃		-	US$	6,203		N/A	US$	6,203
	The Bank of New York Mellon Corporation	-	〃		-	US$	6,165		N/A	US$	6,165
	WPP Finance 2010	-	〃		-	US$	6,123		N/A	US$	6,123
	W. P. Carey Inc.	-	〃		-	US$	5,915		N/A	US$	5,915
	CVS Health Corporation	-	〃		-	US$	5,913		N/A	US$	5,913
	Analog Devices, Inc.	-	〃		-	US$	5,908		N/A	US$	5,908
	Cigna Corporation	-	〃		-	US$	5,906		N/A	US$	5,906
	Sprint Spectrum Co Llc	-	〃		-	US$	5,879		N/A	US$	5,879
	Capital One, National Association	-	〃		-	US$	5,867		N/A	US$	5,867
	Intercontinental Exchange, Inc.	-	〃		-	US$	5,829		N/A	US$	5,829
	Truist Bank	-	〃		-	US$	5,813		N/A	US$	5,813
	Alabama Power Company	-	〃		-	US$	5,811		N/A	US$	5,811
	Fiserv, Inc.	-	〃		-	US$	5,588		N/A	US$	5,588
	UBS Group AG	-	〃		-	US$	5,584		N/A	US$	5,584
	Capital One Financial Corporation	-	〃		-	US$	5,556		N/A	US$	5,556
	NatWest Group plc	-	〃		-	US$	5,472		N/A	US$	5,472
	CenterPoint Energy, Inc.	-	〃		-	US$	5,469		N/A	US$	5,469
	Intel Corporation	-	〃		-	US$	5,462		N/A	US$	5,462
	Five Corners Funding Trust	-	〃		-	US$	5,447		N/A	US$	5,447
	Thermo Fisher Scientific Inc.	-	〃		-	US$	5,386		N/A	US$	5,386
	SMBC Aviation Capital Finance DAC	-	〃		-	US$	5,379		N/A	US$	5,379
	Georgia-Pacific LLC	-	〃		-	US$	5,364		N/A	US$	5,364
	Fifth Third Bancorp	-	〃		-	US$	5,319		N/A	US$	5,319
	Eastern Energy Gas Holdings, LLC	-	〃		-	US$	5,300		N/A	US$	5,300
	Merck & Co., Inc.	-	〃		-	US$	5,213		N/A	US$	5,213
	Svenska Handelsbanken AB (publ)	-	〃		-	US$	5,183		N/A	US$	5,183
	Sempra Energy	-	〃		-	US$	5,182		N/A	US$	5,182
	National Bank of Canada	-	〃		-	US$	5,171		N/A	US$	5,171

(Continued)

56

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021								Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	BMW US Capital, LLC	-	Financial assets at fair value through other comprehensive income		-	US$	5,123		N/A	US$	5,123
	Florida Power & Light Company	-	〃		-	US$	5,086		N/A	US$	5,086
	Public Storage	-	〃		-	US$	5,004		N/A	US$	5,004
	HP Inc.	-	〃		-	US$	4,971		N/A	US$	4,971
	Enel Finance International N.V.	-	〃		-	US$	4,938		N/A	US$	4,938
	Skandinaviska Enskilda Banken AB (publ)	-	〃		-	US$	4,880		N/A	US$	4,880
	Danske Bank A/S	-	〃		-	US$	4,858		N/A	US$	4,858
	Jackson National Life Global Funding	-	〃		-	US$	4,818		N/A	US$	4,818
	Truist Financial Corporation	-	〃		-	US$	4,730		N/A	US$	4,730
	UBS Group Funding (Jersey) Ltd.	-	〃		-	US$	4,674		N/A	US$	4,674
	Bank of New Zealand	-	〃		-	US$	4,660		N/A	US$	4,660
	Roche Holdings, Inc.	-	〃		-	US$	4,628		N/A	US$	4,628
	Eversource Energy	-	〃		-	US$	4,578		N/A	US$	4,578
	OGE Energy Corp.	-	〃		-	US$	4,452		N/A	US$	4,452
	Swedbank AB (publ)	-	〃		-	US$	4,377		N/A	US$	4,377
	NiSource Inc.	-	〃		-	US$	4,377		N/A	US$	4,377
	7-Eleven, Inc.	-	〃		-	US$	4,353		N/A	US$	4,353
	MPLX LP	-	〃		-	US$	4,331		N/A	US$	4,331
	Fidelity National Information Services, Inc.	-	〃		-	US$	4,280		N/A	US$	4,280
	Pioneer Natural Resources Company	-	〃		-	US$	4,277		N/A	US$	4,277
	Coöperatieve Rabobank U.A.	-	〃		-	US$	4,273		N/A	US$	4,273
	Element Fleet Management Corp.	-	〃		-	US$	4,245		N/A	US$	4,245
	The Charles Schwab Corporation	-	〃		-	US$	4,235		N/A	US$	4,235
	ERAC USA Finance LLC	-	〃		-	US$	4,211		N/A	US$	4,211
	Dominion Energy, Inc.	-	〃		-	US$	4,191		N/A	US$	4,191
	Exelon Corporation	-	〃		-	US$	4,181		N/A	US$	4,181
	The European Bank for Reconstruction and Development	-	〃		-	US$	4,132		N/A	US$	4,132
	Ameren Corporation	-	〃		-	US$	4,132		N/A	US$	4,132
	Pricoa Global Funding I	-	〃		-	US$	4,082		N/A	US$	4,082
	Ameriprise Financial, Inc.	-	〃		-	US$	4,082		N/A	US$	4,082
	B.A.T. International Finance p.l.c.	-	〃		-	US$	4,082		N/A	US$	4,082
	Appalachian Power Company	-	〃		-	US$	4,061		N/A	US$	4,061
	American Express Credit Corporation	-	〃		-	US$	4,058		N/A	US$	4,058
	Barclays Bank PLC	-	〃		-	US$	4,046		N/A	US$	4,046
	Coca-Cola Europacific Partners PLC	-	〃		-	US$	4,023		N/A	US$	4,023
	BorgWarner Inc.	-	〃		-	US$	3,959		N/A	US$	3,959
	Credit Suisse Group Funding (Guernsey) Limited	-	〃		-	US$	3,906		N/A	US$	3,906
	V.F. Corporation	-	〃		-	US$	3,906		N/A	US$	3,906
	Bayer US Finance II LLC	-	〃		-	US$	3,889		N/A	US$	3,889
	Groupe BPCE	-	〃		-	US$	3,843		N/A	US$	3,843
	Hewlett Packard Enterprise Company	-	〃		-	US$	3,832		N/A	US$	3,832
	Public Service Electric and Gas Company	-	〃		-	US$	3,801		N/A	US$	3,801
	BG Energy Capital plc	-	〃		-	US$	3,789		N/A	US$	3,789
	UBS AG, London Branch	-	〃		-	US$	3,789		N/A	US$	3,789
	Reckitt Benckiser Treasury Services plc	-	〃		-	US$	3,770		N/A	US$	3,770
	Monongahela Power Company	-	〃		-	US$	3,716		N/A	US$	3,716
	Ross Stores, Inc.	-	〃		-	US$	3,715		N/A	US$	3,715
	Welltower Inc.	-	〃		-	US$	3,713		N/A	US$	3,713
	BOC Aviation Limited	-	〃		-	US$	3,687		N/A	US$	3,687

(Continued)

57

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021								Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	Diageo Capital plc	-	Financial assets at fair value through other comprehensive income		-	US$	3,627		N/A	US$	3,627
	Phillips 66	-	〃		-	US$	3,614		N/A	US$	3,614
	Verisk Analytics, Inc.	-	〃		-	US$	3,595		N/A	US$	3,595
	Highmark Inc.	-	〃		-	US$	3,584		N/A	US$	3,584
	Nomura Holdings, Inc.	-	〃		-	US$	3,582		N/A	US$	3,582
	NEXTERA ENERGY CAPITAL HOLDINGS IN	-	〃		-	US$	3,574		N/A	US$	3,574
	B.A.T Capital Corporation	-	〃		-	US$	3,495		N/A	US$	3,495
	Gilead Sciences, Inc.	-	〃		-	US$	3,483		N/A	US$	3,483
	Pfizer Inc.	-	〃		-	US$	3,474		N/A	US$	3,474
	HSBC Bank Canada	-	〃		-	US$	3,435		N/A	US$	3,435
	Penske Truck Leasing Co., L.P.	-	〃		-	US$	3,427		N/A	US$	3,427
	The Western Union Company	-	〃		-	US$	3,361		N/A	US$	3,361
	Johnson & Johnson	-	〃		-	US$	3,314		N/A	US$	3,314
	Essex Portfolio Limited Partnership	-	〃		-	US$	3,289		N/A	US$	3,289
	PNC Bank, National Association	-	〃		-	US$	3,260		N/A	US$	3,260
	CNA Financial Corporation	-	〃		-	US$	3,246		N/A	US$	3,246
	ONE Gas, Inc.	-	〃		-	US$	3,246		N/A	US$	3,246
	Texas Instruments Incorporated	-	〃		-	US$	3,241		N/A	US$	3,241
	Ventas Realty, Limited Partnership	-	〃		-	US$	3,236		N/A	US$	3,236
	Cox Communications, Inc.	-	〃		-	US$	3,213		N/A	US$	3,213
	Avangrid, Inc.	-	〃		-	US$	3,202		N/A	US$	3,202
	Ralph Lauren Corporation	-	〃		-	US$	3,191		N/A	US$	3,191
	Oncor Electric Delivery Company LLC	-	〃		-	US$	3,180		N/A	US$	3,180
	Baidu, Inc.	-	〃		-	US$	3,144		N/A	US$	3,144
	Novartis Capital Corporation	-	〃		-	US$	3,135		N/A	US$	3,135
	Helmerich & Payne, Inc.	-	〃		-	US$	3,065		N/A	US$	3,065
	Chevron Phillips Chemical Company LLC	-	〃		-	US$	3,026		N/A	US$	3,026
	American Honda Finance Corporation	-	〃		-	US$	3,016		N/A	US$	3,016
	Zions Bancorporation, National Association	-	〃		-	US$	3,014		N/A	US$	3,014
	Microsoft Corporation	-	〃		-	US$	3,001		N/A	US$	3,001
	Southern California Edison Company	-	〃		-	US$	2,969		N/A	US$	2,969
	American Electric Power Company, Inc.	-	〃		-	US$	2,900		N/A	US$	2,900
	Xcel Energy Inc.	-	〃		-	US$	2,894		N/A	US$	2,894
	American Express Company	-	〃		-	US$	2,862		N/A	US$	2,862
	WEC Energy Group, Inc.	-	〃		-	US$	2,839		N/A	US$	2,839
	Air Products and Chemicals, Inc.	-	〃		-	US$	2,822		N/A	US$	2,822
	Ryder System, Inc.	-	〃		-	US$	2,761		N/A	US$	2,761
	PPL Electric Utilities Corporation	-	〃		-	US$	2,760		N/A	US$	2,760
	Nuveen Finance, LLC	-	〃		-	US$	2,755		N/A	US$	2,755
	AvalonBay Communities, Inc.	-	〃		-	US$	2,740		N/A	US$	2,740
	Reliance Standard Life Global Funding II	-	〃		-	US$	2,726		N/A	US$	2,726
	VEREIT Operating Partnership, L.P.	-	〃		-	US$	2,718		N/A	US$	2,718
	CRH America, Inc.	-	〃		-	US$	2,692		N/A	US$	2,692
	BBVA USA	-	〃		-	US$	2,679		N/A	US$	2,679
	Kimco Realty Corporation	-	〃		-	US$	2,658		N/A	US$	2,658
	CMS Energy Corporation	-	〃		-	US$	2,654		N/A	US$	2,654
	Pinnacle West Capital Corporation	-	〃		-	US$	2,648		N/A	US$	2,648
	Nutrien Ltd.	-	〃		-	US$	2,645		N/A	US$	2,645
	The PNC Financial Services Group, Inc.	-	〃		-	US$	2,644		N/A	US$	2,644

(Continued)

58

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021								Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	Yara International ASA	-	Financial assets at fair value through other comprehensive income		-	US$	2,643		N/A	US$	2,643
	AutoZone, Inc.	-	〃		-	US$	2,629		N/A	US$	2,629
	Magellan Midstream Partners, L.P.	-	〃		-	US$	2,618		N/A	US$	2,618
	Air Lease Corporation	-	〃		-	US$	2,583		N/A	US$	2,583
	John Deere Capital Corporation	-	〃		-	US$	2,577		N/A	US$	2,577
	Empower Finance 2020, LP	-	〃		-	US$	2,510		N/A	US$	2,510
	Chevron U.S.A. Inc.	-	〃		-	US$	2,480		N/A	US$	2,480
	Raytheon Technologies Corporation	-	〃		-	US$	2,473		N/A	US$	2,473
	Reynolds American Inc.	-	〃		-	US$	2,469		N/A	US$	2,469
	Georgia Power Company	-	〃		-	US$	2,469		N/A	US$	2,469
	Nestlé Holdings, Inc.	-	〃		-	US$	2,464		N/A	US$	2,464
	Berkshire Hathaway Inc.	-	〃		-	US$	2,458		N/A	US$	2,458
	Duke Energy Corporation	-	〃		-	US$	2,405		N/A	US$	2,405
	DuPont de Nemours, Inc.	-	〃		-	US$	2,383		N/A	US$	2,383
	USAA CAPITAL CORP	-	〃		-	US$	2,369		N/A	US$	2,369
	Suncor Energy Inc.	-	〃		-	US$	2,368		N/A	US$	2,368
	O'Reilly Automotive, Inc.	-	〃		-	US$	2,363		N/A	US$	2,363
	Union Pacific Corporation	-	〃		-	US$	2,360		N/A	US$	2,360
	Health Care Service Corporation	-	〃		-	US$	2,279		N/A	US$	2,279
	Mead Johnson Nutrition Company	-	〃		-	US$	2,249		N/A	US$	2,249
	The East Ohio Gas Company	-	〃		-	US$	2,237		N/A	US$	2,237
	ITC Holdings Corp.	-	〃		-	US$	2,236		N/A	US$	2,236
	Magna International Inc.	-	〃		-	US$	2,230		N/A	US$	2,230
	GA Global Funding Trust	-	〃		-	US$	2,217		N/A	US$	2,217
	Tyson Foods, Inc.	-	〃		-	US$	2,199		N/A	US$	2,199
	Citizens Bank, National Association	-	〃		-	US$	2,179		N/A	US$	2,179
	Healthpeak Properties, Inc.	-	〃		-	US$	2,169		N/A	US$	2,169
	Amphenol Corporation	-	〃		-	US$	2,161		N/A	US$	2,161
	ASB Bank Limited	-	〃		-	US$	2,152		N/A	US$	2,152
	Hormel Foods Corporation	-	〃		-	US$	2,142		N/A	US$	2,142
	Tucson Electric Power Company	-	〃		-	US$	2,141		N/A	US$	2,141
	Otis Worldwide Corporation	-	〃		-	US$	2,105		N/A	US$	2,105
	Keurig Dr Pepper Inc.	-	〃		-	US$	2,059		N/A	US$	2,059
	CK Hutchison International 16 Ltd	-	〃		-	US$	2,006		N/A	US$	2,006
	NBN Co Limited	-	〃		-	US$	2,002		N/A	US$	2,002
	Shinhan Financial Group Co., Ltd.	-	〃		-	US$	1,998		N/A	US$	1,998
	Barclays Capital Inc.	-	〃		-	US$	1,997		N/A	US$	1,997
	TSMC Global Ltd.	-	〃		-	US$	1,988		N/A	US$	1,988
	Regions Financial Corporation	-	〃		-	US$	1,972		N/A	US$	1,972
	Sydney Airport Finance Company Pty Ltd	-	〃		-	US$	1,952		N/A	US$	1,952
	Kentucky Utilities Company	-	〃		-	US$	1,948		N/A	US$	1,948
	Automatic Data Processing, Inc.	-	〃		-	US$	1,932		N/A	US$	1,932
	AmerisourceBergen Corporation	-	〃		-	US$	1,904		N/A	US$	1,904
	Korea Hydro & Nuclear Power Co., Ltd.	-	〃		-	US$	1,903		N/A	US$	1,903
	Entergy Corporation	-	〃		-	US$	1,901		N/A	US$	1,901
	Wipro IT Services LLC	-	〃		-	US$	1,899		N/A	US$	1,899
	Evergy Kansas Central, Inc.	-	〃		-	US$	1,892		N/A	US$	1,892
	Public Service Enterprise Group Incorporated	-	〃		-	US$	1,890		N/A	US$	1,890
	Gulfstream Natural Gas System, L.L.C.	-	〃		-	US$	1,885		N/A	US$	1,885

(Continued)

59

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021								Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	Burlington Northern Santa Fe, LLC	-	Financial assets at fair value through other comprehensive income		-	US$	1,883		N/A	US$	1,883
	Rio Tinto Finance (USA) Limited	-	〃		-	US$	1,855		N/A	US$	1,855
	Caterpillar Financial Services Corporation	-	〃		-	US$	1,846		N/A	US$	1,846
	Philip Morris International Inc.	-	〃		-	US$	1,823		N/A	US$	1,823
	Boston Properties Limited Partnership	-	〃		-	US$	1,812		N/A	US$	1,812
	McCormick & Company, Incorporated	-	〃		-	US$	1,807		N/A	US$	1,807
	Infor, Inc.	-	〃		-	US$	1,792		N/A	US$	1,792
	Quest Diagnostics Incorporated	-	〃		-	US$	1,781		N/A	US$	1,781
	Berkshire Hathaway Energy Company	-	〃		-	US$	1,753		N/A	US$	1,753
	AIA Group Limited	-	〃		-	US$	1,748		N/A	US$	1,748
	eBay Inc.	-	〃		-	US$	1,728		N/A	US$	1,728
	University of California	-	〃		-	US$	1,726		N/A	US$	1,726
	International Business Machines Corporation	-	〃		-	US$	1,726		N/A	US$	1,726
	Emerson Electric Co.	-	〃		-	US$	1,715		N/A	US$	1,715
	Svenska Handelsbanken, NY	-	〃		-	US$	1,700		N/A	US$	1,700
	Westpac Banking Corporation	-	〃		-	US$	1,697		N/A	US$	1,697
	APT Pipelines Limited	-	〃		-	US$	1,683		N/A	US$	1,683
	Anthem, Inc.	-	〃		-	US$	1,675		N/A	US$	1,675
	Midwest Connector Capital Company LLC	-	〃		-	US$	1,673		N/A	US$	1,673
	Toyota Industries Corporation	-	〃		-	US$	1,654		N/A	US$	1,654
	MetLife, Inc.	-	〃		-	US$	1,649		N/A	US$	1,649
	Alimentation Couche-Tard Inc.	-	〃		-	US$	1,647		N/A	US$	1,647
	China Resources Gas Group Limited	-	〃		-	US$	1,640		N/A	US$	1,640
	The Southern Company	-	〃		-	US$	1,637		N/A	US$	1,637
	Duke Energy Florida, LLC	-	〃		-	US$	1,635		N/A	US$	1,635
	Suntory Holdings Limited	-	〃		-	US$	1,622		N/A	US$	1,622
	NSTAR Electric Company	-	〃		-	US$	1,622		N/A	US$	1,622
	Brookfield Finance LLC	-	〃		-	US$	1,615		N/A	US$	1,615
	F&G Global Funding	-	〃		-	US$	1,615		N/A	US$	1,615
	Panasonic Corporation	-	〃		-	US$	1,606		N/A	US$	1,606
	CPI Property Group S.A.	-	〃		-	US$	1,603		N/A	US$	1,603
	CK Hutchison International (19) Limited	-	〃		-	US$	1,595		N/A	US$	1,595
	Marsh & McLennan Companies, Inc.	-	〃		-	US$	1,567		N/A	US$	1,567
	Marathon Petroleum Corporation	-	〃		-	US$	1,561		N/A	US$	1,561
	National Australia Bank Limited, New York Branch	-	〃		-	US$	1,521		N/A	US$	1,521
	KEB Hana Bank	-	〃		-	US$	1,506		N/A	US$	1,506
	Alliant Energy Finance, LLC	-	〃		-	US$	1,495		N/A	US$	1,495
	Virginia Electric and Power Company	-	〃		-	US$	1,458		N/A	US$	1,458
	Daiwa Securities Group Inc.	-	〃		-	US$	1,415		N/A	US$	1,415
	NetApp, Inc.	-	〃		-	US$	1,414		N/A	US$	1,414
	Kilroy Realty, L.P.	-	〃		-	US$	1,389		N/A	US$	1,389
	Andrew W. Mellon Foundation, The	-	〃		-	US$	1,375		N/A	US$	1,375
	PACCAR Financial Corp.	-	〃		-	US$	1,347		N/A	US$	1,347
	Entergy Arkansas, LLC	-	〃		-	US$	1,334		N/A	US$	1,334
	Ontario Teachers' Cadillac Fairview Properties Trust	-	〃		-	US$	1,324		N/A	US$	1,324
	Martin Marietta Materials, Inc.	-	〃		-	US$	1,311		N/A	US$	1,311
	State Of Tennessee	-	〃		-	US$	1,264		N/A	US$	1,264
	Lincoln National Corporation	-	〃		-	US$	1,207		N/A	US$	1,207
	PSEG Power LLC	-	〃		-	US$	1,196		N/A	US$	1,196

(Continued)

60

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021								Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	State Street Corporation	-	Financial assets at fair value through other comprehensive income		-	US$	1,190		N/A	US$	1,190
	Enterprise Products Operating LLC	-	〃		-	US$	1,138		N/A	US$	1,138
	The Curators of the University of Missouri	-	〃		-	US$	1,137		N/A	US$	1,137
	Standard Chartered Bank New York Branch	-	〃		-	US$	1,136		N/A	US$	1,136
	The Cleveland Electric Illuminating Company	-	〃		-	US$	1,135		N/A	US$	1,135
	Foxconn (Far East) Limited	-	〃		-	US$	1,106		N/A	US$	1,106
	Sinopec Group Overseas Development (2014) Ltd.	-	〃		-	US$	1,092		N/A	US$	1,092
	BBVA Bancomer, S.A.	-	〃		-	US$	1,089		N/A	US$	1,089
	Brighthouse Financial Global Funding	-	〃		-	US$	1,083		N/A	US$	1,083
	Kansas City Southern	-	〃		-	US$	1,081		N/A	US$	1,081
	Baltimore Gas and Electric Company	-	〃		-	US$	1,050		N/A	US$	1,050
	DH Europe Finance II S.a.r.l.	-	〃		-	US$	1,048		N/A	US$	1,048
	Entergy Mississippi, LLC	-	〃		-	US$	1,041		N/A	US$	1,041
	USAA Capital Corp.	-	〃		-	US$	1,040		N/A	US$	1,040
	Loews Corporation	-	〃		-	US$	1,035		N/A	US$	1,035
	Denver City & County Housing Authority	-	〃		-	US$	1,032		N/A	US$	1,032
	MassMutual Global Funding II	-	〃		-	US$	1,029		N/A	US$	1,029
	Kaiser Foundation Hospitals	-	〃		-	US$	1,023		N/A	US$	1,023
	Texas Eastern Transmission, LP	-	〃		-	US$	1,021		N/A	US$	1,021
	Kinder Morgan, Inc.	-	〃		-	US$	1,018		N/A	US$	1,018
	Mondelez International Holdings Netherlands Bv	-	〃		-	US$	1,016		N/A	US$	1,016
	National Rural Utilities Cooperative Finance Corporation	-	〃		-	US$	990		N/A	US$	990
	Aflac Incorporated	-	〃		-	US$	966		N/A	US$	966
	Unilever Capital Corporation	-	〃		-	US$	948		N/A	US$	948
	QNB Finance Ltd.	-	〃		-	US$	947		N/A	US$	947
	Southern California Gas Company	-	〃		-	US$	944		N/A	US$	944
	BHP Billiton Finance (USA) Limited	-	〃		-	US$	937		N/A	US$	937
	Mitsubishi HC Capital Inc.	-	〃		-	US$	920		N/A	US$	920
	Prudential Financial, Inc.	-	〃		-	US$	914		N/A	US$	914
	KeyBank National Association	-	〃		-	US$	875		N/A	US$	875
	Palm Beach County, Florida	-	〃		-	US$	856		N/A	US$	856
	The Walt Disney Company	-	〃		-	US$	841		N/A	US$	841
	Niagara Mohawk Power Corporation	-	〃		-	US$	833		N/A	US$	833
	Entergy Louisiana, LLC	-	〃		-	US$	832		N/A	US$	832
	Sinopec Capital (2013) Ltd.	-	〃		-	US$	829		N/A	US$	829
	Aetna Inc.	-	〃		-	US$	827		N/A	US$	827
	Visa Inc.	-	〃		-	US$	821		N/A	US$	821
	Oregon Health & Science University	-	〃		-	US$	819		N/A	US$	819
	Southern Power Company	-	〃		-	US$	803		N/A	US$	803
	MASCO CORP	-	〃		-	US$	780		N/A	US$	780
	Sky Limited	-	〃		-	US$	765		N/A	US$	765
	Warner Media, LLC	-	〃		-	US$	754		N/A	US$	754
	Canadian Natural Resources Limited	-	〃		-	US$	748		N/A	US$	748
	Hyundai Capital Services, Inc.	-	〃		-	US$	738		N/A	US$	738
	National Australia Bank Limited	-	〃		-	US$	734		N/A	US$	734
	Sodexo, Inc.	-	〃		-	US$	730		N/A	US$	730
	Sinopec Group Overseas Development (2017) Limited	-	〃		-	US$	715		N/A	US$	715
	Abbott Laboratories	-	〃		-	US$	693		N/A	US$	693
	Stryker Corporation	-	〃		-	US$	677		N/A	US$	677

(Continued)

61

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021								Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	Bell Canada, Inc.	-	Financial assets at fair value through other comprehensive income		-	US$	651		N/A	US$	651
	Glencore Funding LLC	-	〃		-	US$	636		N/A	US$	636
	Republic Services, Inc.	-	〃		-	US$	634		N/A	US$	634
	Florida Hurricane Catastrophe Fund Finance Corporation	-	〃		-	US$	631		N/A	US$	631
	QUALCOMM Incorporated	-	〃		-	US$	630		N/A	US$	630
	American Water Capital Corp.	-	〃		-	US$	625		N/A	US$	625
	Intact U.S. Holdings Inc.	-	〃		-	US$	624		N/A	US$	624
	UBS AG (LONDON BRANCH)	-	〃		-	US$	621		N/A	US$	621
	Sinopec Group Overseas Development (2012) Ltd.	-	〃		-	US$	616		N/A	US$	616
	Ohio Power Company	-	〃		-	US$	608		N/A	US$	608
	Port of Morrow	-	〃		-	US$	603		N/A	US$	603
	Discover Bank (New Castle, Delaware)	-	〃		-	US$	599		N/A	US$	599
	Arizona Public Service Company	-	〃		-	US$	595		N/A	US$	595
	Duke Energy Progress, LLC	-	〃		-	US$	585		N/A	US$	585
	Dormitory Authority of the State of New York	-	〃		-	US$	584		N/A	US$	584
	Shell International Finance B.V.	-	〃		-	US$	573		N/A	US$	573
	Fifth Third Bank, National Association	-	〃		-	US$	562		N/A	US$	562
	United Parcel Service, Inc.	-	〃		-	US$	553		N/A	US$	553
	State of Hawaii	-	〃		-	US$	548		N/A	US$	548
	Trane Technologies Luxembourg Finance S.A.	-	〃		-	US$	547		N/A	US$	547
	Simon Property Group, L.P.	-	〃		-	US$	520		N/A	US$	520
	TTX Company	-	〃		-	US$	517		N/A	US$	517
	Altria Group, Inc.	-	〃		-	US$	517		N/A	US$	517
	Baker Hughes Holdings LLC	-	〃		-	US$	516		N/A	US$	516
	174 Power Global Corporation	-	〃		-	US$	509		N/A	US$	509
	Capital Cities/ABC, Inc.	-	〃		-	US$	505		N/A	US$	505
	Danone S.A.	-	〃		-	US$	502		N/A	US$	502
	First Abu Dhabi Bank USA N.V.	-	〃		-	US$	470		N/A	US$	470
	Brazos Higher Education Authority Inc	-	〃		-	US$	468		N/A	US$	468
	Target Corporation	-	〃		-	US$	446		N/A	US$	446
	University of Massachusetts Building Authority	-	〃		-	US$	437		N/A	US$	437
	MUFG Union Bank, National Association	-	〃		-	US$	435		N/A	US$	435
	PayPal Holdings, Inc.	-	〃		-	US$	434		N/A	US$	434
	Sierra Pacific Power Company	-	〃		-	US$	425		N/A	US$	425
	Comerica Bank	-	〃		-	US$	421		N/A	US$	421
	Banco del Estado de Chile	-	〃		-	US$	416		N/A	US$	416
	Komatsu Finance America, Inc.	-	〃		-	US$	409		N/A	US$	409
	Honeywell International Inc.	-	〃		-	US$	408		N/A	US$	408
	PepsiCo, Inc.	-	〃		-	US$	394		N/A	US$	394
	StanCorp Financial Group Inc.	-	〃		-	US$	382		N/A	US$	382
	Enbridge Inc.	-	〃		-	US$	374		N/A	US$	374
	Principal Financial Group, Inc.	-	〃		-	US$	367		N/A	US$	367
	Canadian Pacific Railway Company	-	〃		-	US$	363		N/A	US$	363
	Pernod Ricard SA	-	〃		-	US$	358		N/A	US$	358
	First Republic Bank	-	〃		-	US$	358		N/A	US$	358
	Coöperatieve Rabobank U.A., New York Branch	-	〃		-	US$	349		N/A	US$	349
	Archer-Daniels-Midland Company	-	〃		-	US$	346		N/A	US$	346
	Amgen Inc.	-	〃		-	US$	342		N/A	US$	342
	The Allstate Corporation	-	〃		-	US$	327		N/A	US$	327

(Continued)

62

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021								Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	BP Capital Markets p.l.c.	-	Financial assets at fair value through other comprehensive income		-	US$	325		N/A	US$	325
	Total Capital International	-	〃		-	US$	316		N/A	US$	316
	América Móvil, S.A.B. de C.V.	-	〃		-	US$	308		N/A	US$	308
	salesforce.com, inc.	-	〃		-	US$	300		N/A	US$	300
	Aon Corporation	-	〃		-	US$	297		N/A	US$	297
	Johnson Controls International plc	-	〃		-	US$	295		N/A	US$	295
	Mondelez International, Inc.	-	〃		-	US$	280		N/A	US$	280
	Starbucks Corporation	-	〃		-	US$	279		N/A	US$	279
	Southern Natural Gas Company, L.L.C.	-	〃		-	US$	275		N/A	US$	275
	Equitable Holdings, Inc.	-	〃		-	US$	258		N/A	US$	258
	Sales Tax Securitization Corporation Of Chicago	-	〃		-	US$	256		N/A	US$	256
	The Huntington National Bank	-	〃		-	US$	255		N/A	US$	255
	Capital One Bank (USA), National Association	-	〃		-	US$	252		N/A	US$	252
	E. I. du Pont de Nemours and Company	-	〃		-	US$	251		N/A	US$	251
	Waste Management, Inc.	-	〃		-	US$	248		N/A	US$	248
	Nasdaq, Inc.	-	〃		-	US$	220		N/A	US$	220
	Deere & Company	-	〃		-	US$	213		N/A	US$	213
	Saudi Arabian Oil Company	-	〃		-	US$	202		N/A	US$	202
	San Francisco Public Utilities Commission	-	〃		-	US$	191		N/A	US$	191
	Nucor Corporation	-	〃		-	US$	186		N/A	US$	186
	Hoover Alabama Board Of Education	-	〃		-	US$	180		N/A	US$	180
	Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC Series 2016-	-	〃		-	US$	170		N/A	US$	170
	The New York State Urban Development Corporation	-	〃		-	US$	147		N/A	US$	147
	Electricité de France S.A.	-	〃		-	US$	110		N/A	US$	110
	Columbia Property Trust Operating Partnership, L.P.	-	〃		-	US$	108		N/A	US$	108
	Pima County, Arizona	-	〃		-	US$	80		N/A	US$	80
	Municipal Improvement Corporation of Los Angeles	-	〃		-	US$	80		N/A	US$	80
	State of Wisconsin	-	〃		-	US$	65		N/A	US$	65
	Huntington Beach California	-	〃		-	US$	50		N/A	US$	50
	City of Worcester, MA	-	〃		-	US$	30		N/A	US$	30
	Nueces County	-	〃		-	US$	25		N/A	US$	25
	Citigroup Global Market Inc.	-	Financial assets at amortized cost		-	US$	99,967		N/A	US$	100,071
	Wells Fargo & Company	-	〃		-	US$	30,517		N/A	US$	31,448
	Goldman Sachs Group Inc/The	-	〃		-	US$	14,943		N/A	US$	15,133
	JPMorgan Chase & Co.	-	〃		-	US$	10,069		N/A	US$	10,181
	Government bond
	United States Department of The Treasury	-	Financial assets at fair value through other comprehensive income		-	US$	862,036		N/A	US$	862,036
	Emirate of Abu Dhabi	-	〃		-	US$	1,509		N/A	US$	1,509
	Qatar	-	〃		-	US$	1,380		N/A	US$	1,380
	Agency bonds/Agency mortgage-backed securities
	Federal National Mortgage Association	-	Financial assets at fair value through other comprehensive income		-	US$	583,726		N/A	US$	583,726
	Government National Mortgage Association	-	〃		-	US$	328,898		N/A	US$	328,898
	Federal Home Loan Mortgage Corporation	-	〃		-	US$	231,388		N/A	US$	231,388
	GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 2	-	〃		-	US$	10,164		N/A	US$	10,164

(Continued)

63

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021								Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	Asset-backed securities
	JPMBB Commercial Mortgage Securities Trust 2014-C24	-	Financial assets at fair value through other comprehensive income		-	US$	10,535		N/A	US$	10,535
	Wells Fargo Commercial Mortgage Trust 2016-Bnk1	-	〃		-	US$	7,726		N/A	US$	7,726
	Mercedes-Benz Auto Lease Trust 2021-B	-	〃		-	US$	7,146		N/A	US$	7,146
	Bank 2020-BNK26	-	〃		-	US$	7,076		N/A	US$	7,076
	Benchmark 2019-B11 Mortgage Trust	-	〃		-	US$	6,396		N/A	US$	6,396
	Wells Fargo Commercial Mortgage Trust 2016-C35	-	〃		-	US$	6,238		N/A	US$	6,238
	Citigroup Commercial Mortgage Trust 2014-GC21	-	〃		-	US$	5,995		N/A	US$	5,995
	Wells Fargo Commercial Mortgage Trust 2021-C59	-	〃		-	US$	5,672		N/A	US$	5,672
	WFRBS Commercial Mortgage Trust 2013-C13	-	〃		-	US$	5,637		N/A	US$	5,637
	UBS-Barclays Commercial Mortgage Trust 2012-C2	-	〃		-	US$	5,513		N/A	US$	5,513
	BBCMS 2018-Tall Mortgage Trust	-	〃		-	US$	5,466		N/A	US$	5,466
	Morgan Stanley Bank America Merrill Lynch Trust 2016-C30	-	〃		-	US$	5,232		N/A	US$	5,232
	Hyundai Auto Lease Securitization Trust 2021-B	-	〃		-	US$	5,140		N/A	US$	5,140
	Commerce 2015-CCRE24 Mortgage Trust	-	〃		-	US$	5,038		N/A	US$	5,038
	Morgan Stanley Bank America Merrill Lynch Trust 2013-C10	-	〃		-	US$	4,995		N/A	US$	4,995
	MRCD 2019-Prkc Mortgage Trust	-	〃		-	US$	4,876		N/A	US$	4,876
	Msbam 2016-C29	-	〃		-	US$	4,661		N/A	US$	4,661
	Bank 2019-Bnk22	-	〃		-	US$	4,340		N/A	US$	4,340
	JPMCC 2017-JP7	-	〃		-	US$	4,208		N/A	US$	4,208
	Bank 2017-Bnk6	-	〃		-	US$	4,187		N/A	US$	4,187
	Bank 2019-Bnk17	-	〃		-	US$	4,182		N/A	US$	4,182
	BANK 2017-BNK5	-	〃		-	US$	4,181		N/A	US$	4,181
	J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-LC9	-	〃		-	US$	4,000		N/A	US$	4,000
	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7	-	〃		-	US$	3,986		N/A	US$	3,986
	Mercedes-Benz Auto Lease Trust 2019-B	-	〃		-	US$	3,897		N/A	US$	3,897
	UBS Barclays Commercial Mortgage Trust 2013-C6	-	〃		-	US$	3,287		N/A	US$	3,287
	GS Mortgage Securities Trust 2015-GC32	-	〃		-	US$	3,221		N/A	US$	3,221
	JPMBB Commercial Mortgage Securities Trust 2015-C28	-	〃		-	US$	3,200		N/A	US$	3,200
	Wells Fargo Commercial Mortgage Trust 2017-C40	-	〃		-	US$	3,083		N/A	US$	3,083
	UBS Commercial Mortgage Trust 2018-C10	-	〃		-	US$	3,046		N/A	US$	3,046
	GS Mortgage Securities Corporation Trust 2018-RIVR	-	〃		-	US$	2,994		N/A	US$	2,994
	Benchmark 2018-B3 Commercial Mortgage Trust	-	〃		-	US$	2,960		N/A	US$	2,960
	Enterprise Fleet Financing 2020-1 LLC	-	〃		-	US$	2,956		N/A	US$	2,956
	Hyundai Auto Receivables Trust 2018-A	-	〃		-	US$	2,910		N/A	US$	2,910
	Ford Credit Auto Lease Trust 2020-B	-	〃		-	US$	2,862		N/A	US$	2,862
	Citigroup Commercial Mortgage Trust 2016-C3	-	〃		-	US$	2,762		N/A	US$	2,762
	UBS-Barclays Commercial Mortgage Trust 2012-C3	-	〃		-	US$	2,699		N/A	US$	2,699
	GS Mortgage Securities Trust 2013-GCJ12	-	〃		-	US$	2,696		N/A	US$	2,696
	Ford Credit Auto Owner Trust 2020-Rev1	-	〃		-	US$	2,603		N/A	US$	2,603
	Wells Fargo Commercial Mortgage Trust 2020-C55	-	〃		-	US$	2,545		N/A	US$	2,545
	Federal National Mortgage Association, Inc.	-	〃		-	US$	2,465		N/A	US$	2,465
	BBCMS Mortgage Trust 2020-C8	-	〃		-	US$	2,423		N/A	US$	2,423
	Citigroup Commercial Mortgage Trust 2016-P5	-	〃		-	US$	2,419		N/A	US$	2,419
	Bank 2021-bnk33	-	〃		-	US$	2,407		N/A	US$	2,407
	Morgan Stanley Capital I Trust	-	〃		-	US$	2,368		N/A	US$	2,368
	Dolp Trust 2021-NYC	-	〃		-	US$	2,351		N/A	US$	2,351
	Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6	-	〃		-	US$	2,295		N/A	US$	2,295

(Continued)

64

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021								Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)		Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	Mhc Commercial Mortgage Trust 2021-Mhc	-	Financial assets at fair value through other comprehensive income		-	US$	2,291		N/A	US$	2,291
	UBS Commercial Mortgage Trust 2018-C11	-	〃		-	US$	2,213		N/A	US$	2,213
	Morgan Stanley Capital I Trust 2018-H3	-	〃		-	US$	2,197		N/A	US$	2,197
	Commerce 2013-CCRE12 Mortgage Trust	-	〃		-	US$	2,138		N/A	US$	2,138
	Benchmark 2018-B4 Mortgage Trust	-	〃		-	US$	2,118		N/A	US$	2,118
	JPMDB 2017-C7	-	〃		-	US$	2,097		N/A	US$	2,097
	CGCMT 2017-P8 Mortgage Trust	-	〃		-	US$	2,079		N/A	US$	2,079
	BX Commercial Mortgage Trust 2018-IND	-	〃		-	US$	2,053		N/A	US$	2,053
	Msbam 2016-C31	-	〃		-	US$	2,018		N/A	US$	2,018
	Enterprise Fleet Financing 2019-2, LLC	-	〃		-	US$	2,009		N/A	US$	2,009
	Morgan Stanley Bank of America Merrill Lynch Trust 2013-C8	-	〃		-	US$	1,833		N/A	US$	1,833
	Wells Fargo Commercial Mortgage Trust 2015-C30	-	〃		-	US$	1,760		N/A	US$	1,760
	GS Mortgage Securities Trust 2012-GC6	-	〃		-	US$	1,750		N/A	US$	1,750
	Morgan Stanley Capital I Trust 2021-L5	-	〃		-	US$	1,685		N/A	US$	1,685
	COMM 2020-CBM Mortgage Trust	-	〃		-	US$	1,567		N/A	US$	1,567
	JPMBB Commercial Mortgage Securities Trust 2013-C12	-	〃		-	US$	1,549		N/A	US$	1,549
	Ford Credit Auto Lease Trust 2019-B	-	〃		-	US$	1,470		N/A	US$	1,470
	Wells Fargo Commercial Mortgage Trust 2012-LC5	-	〃		-	US$	1,439		N/A	US$	1,439
	WFRBS Commercial Mortgage Trust 2013-UBS1	-	〃		-	US$	1,346		N/A	US$	1,346
	Toyota Auto Receivables 2018-D Owner Trust	-	〃		-	US$	1,323		N/A	US$	1,323
	Commerce 2014-Ccre17 Mortgage Trust	-	〃		-	US$	1,304		N/A	US$	1,304
	Dbgs 2018-Biod Mortgage Trust	-	〃		-	US$	1,302		N/A	US$	1,302
	Honda Auto Receivables 2021-2 Owner Trust	-	〃		-	US$	1,299		N/A	US$	1,299
	WFRBSCommercial Mortgage Trust 2013-C17	-	〃		-	US$	1,279		N/A	US$	1,279
	Nissan Auto Lease Trust, 2019-A	-	〃		-	US$	1,228		N/A	US$	1,228
	GS Mortgage Securities Trust 2014-GC22	-	〃		-	US$	1,184		N/A	US$	1,184
	Morgan Stanley Capital I Trust 2015 - UBS8	-	〃		-	US$	1,098		N/A	US$	1,098
	Nissan Auto Lease Trust 2019-B	-	〃		-	US$	1,076		N/A	US$	1,076
	GM Financial Consumer Automobile Receivables Trust 2019-4	-	〃		-	US$	1,061		N/A	US$	1,061
	Morgan Stanley Capital I Trust 2019-H6	-	〃		-	US$	1,048		N/A	US$	1,048
	Benchmark 2019-B14 Mortgage Trust	-	〃		-	US$	1,048		N/A	US$	1,048
	COMM 2013-LC6 Mortgage Trust	-	〃		-	US$	1,001		N/A	US$	1,001
	GS Mortgage Securities Trust 2014-GC24	-	〃		-	US$	994		N/A	US$	994
	Citigroup Commercial Mortgage Trust 2013-GCJ11	-	〃		-	US$	968		N/A	US$	968
	GS Mortgage Securities Trust 2019-GSA1	-	〃		-	US$	961		N/A	US$	961
	ARI Fleet Lease Trust 2019-A	-	〃		-	US$	958		N/A	US$	958
	Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C13	-	〃		-	US$	940		N/A	US$	940
	COMM 2012-CCRE5 Mortgage Trust	-	〃		-	US$	928		N/A	US$	928
	Wells Fargo Commercial Mortgage Trust 2015-LC20	-	〃		-	US$	918		N/A	US$	918
	Bbcms Mortgage Trust 2017-C1	-	〃		-	US$	847		N/A	US$	847
	Benchmark 2019-B9 Mortgage Trust	-	〃		-	US$	846		N/A	US$	846
	Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C12	-	〃		-	US$	836		N/A	US$	836
	280 Park Avenue Trust 2017 - 280P	-	〃		-	US$	830		N/A	US$	830
	Benchmark 2019-B15 Mortgage Trust	-	〃		-	US$	745		N/A	US$	745
	Wells Fargo Commercial Mortgage Trust 2016-C36	-	〃		-	US$	744		N/A	US$	744
	CF 2019-CF1 Mortgage Trust	-	〃		-	US$	712		N/A	US$	712
	JPMBB Commercial Mortgage Securities Trust 2014-C19	-	〃		-	US$	671		N/A	US$	671
	Bank 2019-BNK23	-	〃		-	US$	662		N/A	US$	662
	Citigroup Commercial Mortgage Trust 2014-GC23	-	〃		-	US$	661		N/A	US$	661
	Morgan Stanley Capital I Trust 2019-H7	-	〃		-	US$	659		N/A	US$	659
	Wells Fargo Commercial Mortgage Trust 2015-C28	-	〃		-	US$	637		N/A	US$	637

(Continued)

65

 

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2021										Note
				Shares/Units (In Thousands)		Carrying Value (Foreign Currencies in Thousands)			Percentage of Ownership (%)		Fair Value (Foreign Currencies in Thousands)
TSMC Global	Wells Fargo Commercial Mortgage Trust 2015-NXS3	-	Financial assets at fair value through other comprehensive income		-	US$		628		N/A	US$		628
	Gs Mortgage Securities Corporation Trust 2020-Uptn	-	〃		-	US$		619		N/A	US$		619
	GM Financial Automobile Leasing Trust 2019-2	-	〃		-	US$		617		N/A	US$		617
	COMM 2015-CCRE22 Mortgage Trust	-	〃		-	US$		545		N/A	US$		545
	JPMCC 2015 - JP1	-	〃		-	US$		438		N/A	US$		438
	JPMDB Commercial Mortgage Securities Trust 2019-COR6	-	〃		-	US$		438		N/A	US$		438
	WFRBS Commercial Mortgage Trust 2014-C25	-	〃		-	US$		380		N/A	US$		380
	Citigroup Commercial Mortgage Trust 2014-GC19	-	〃		-	US$		380		N/A	US$		380
	UBS Barclays Commercial Mortgage Trust 2013-C5	-	〃		-	US$		368		N/A	US$		368
	Ford Credit Auto Owner Trust 2019-A	-	〃		-	US$		343		N/A	US$		343
	GS Mortgage Securities Trust 2014-GC26	-	〃		-	US$		329		N/A	US$		329
	GM Financial Automobile Leasing Trust	-	〃		-	US$		249		N/A	US$		249
	Citigroup Commercial Mortgage Trust 2015-GC35	-	〃		-	US$		216		N/A	US$		216
	COMM 2015-DC1 Mortgage Trust	-	〃		-	US$		164		N/A	US$		164
	Ford Credit Auto Lease Trust 2019-A	-	〃		-	US$		157		N/A	US$		157
	Bank 2020-BNK28	-	〃		-	US$		145		N/A	US$		145
	COMM 2013-CCRE8 Mortgage Trust	-	〃		-	US$		123		N/A	US$		123
	BBCMS Mortgage Trust 2020-C7	-	〃		-	US$		101		N/A	US$		101
	Morgan Stanley Bank Of America Merrill Lynch Trust 2012-C5	-	〃		-	US$		84		N/A	US$		84
	Honda Auto Receivables 2020-2 Owner Trust	-	〃		-	US$		71		N/A	US$		71
	Toyota Auto Receivables 2018-B Owner Trust	-	〃		-	US$		44		N/A	US$		44
	Wells Fargo Commercial Mortgage Trust 2015-NXS1	-	〃		-	US$		36		N/A	US$		36
	CD 2016-CD2 Mortgage Trust	-	〃		-	US$		26		N/A	US$		26
	WF RBS Commercial Mortgage Trust 2011-C4	-	〃		-	US$		4		N/A	US$		4
	COMM 2014-CCRE15 Mortgage Trust	-	〃		-	US$		4		N/A	US$		4
	Non-publicly traded equity investments
	Primavera Capital Fund II L.P.	-	Financial assets at fair value through other comprehensive income		-	US$		98,876		4	US$		98,876
VTAF II	Non-publicly traded equity investments
	Aether Systems, Inc.	-	Financial assets at fair value through other comprehensive income		1,085	US$		389		20	US$		389
	5V Technologies, Inc.	-	〃		4		-			-		-
	Publicly traded stocks
	Sentelic Corporation	-	Financial assets at fair value through other comprehensive income		1,019	US$		1,882		3	US$		1,882
VTAF III	Non-publicly traded equity investments
	LiquidLeds Lighting Corp.	-	Financial assets at fair value through other comprehensive income		1,952	US$		800		14	US$		800
	Neoconix, Inc.	-	〃		4,147	US$		174		-	US$		174
Growth Fund	Non-publicly traded equity investments
	Innovium, Inc.	-	Financial assets at fair value through other comprehensive income		230	US$		1,863		-	US$		1,863
	Innovium, Inc.	-	〃		221	US$		1,793		-	US$		1,793
	Astera Labs, Inc.	-	〃		127	US$		250		-	US$		250
	CNEX Labs, Inc.	-	〃		24	US$		214		-	US$		214
EmergingFund	Non-publicly traded equity investments
	Credo Technology Group Holding Ltd	-	Financial assets at fair value through other comprehensive income		861	US$		5,000		1	US$		5,000

(Concluded)

66

 

TABLE 4

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR SIX MONTHS ENDED JUNE 30, 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Beginning Balance						Acquisition						Disposal													Ending Balance (Note 1)
					Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)				Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)				Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)				Carrying Value (Foreign Currencies in Thousands)				Gain/Loss on Disposal (Foreign Currencies in Thousands)			Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)
TSMC	Non-publicly traded equity investments
	VisEra Tech	Investments accounted for using equity method	19 institutional investors, including: GIC, Capital Group, Fidelity International, Cathay Life Insurance Co., Ltd., Fubon Life Insurance Co., Ltd., Yuanta Securities, KGI Securities and Securities and Futures Investors Protection Center etc.	-		253,120	$		6,363,099			-	$		-			39,501	$		9,451,798		$		1,045,516			Note2			213,619	$		5,979,226
	TSMC Arizona	〃	-	-		30		842,745				595		16,759,184				-		-				-				-			625		15,633,888
TSMC Global	Corporate bond
	Bank of America Corporation	Financial assets at fair value through other comprehensive income	-	-		-	US$			58,724		-	US$			15,924		-	US$			3,695	US$			3,695	US$	-			-	US$			69,934
	JPMorgan Chase & Co.	〃	-	-		-	US$			29,759		-	US$			14,238		-	US$			-	US$			-	US$	-			-	US$			43,535
	Citigroup Inc.	〃	-	-		-	US$			41,827		-	US$			10,939		-	US$			14,291	US$			14,120	US$	171			-	US$			37,957
	HSBC Holdings plc	〃	-	-		-	US$			16,113		-	US$			11,089		-	US$			1,047	US$			1,007	US$	40			-	US$			26,000
	Oracle Corporation	〃	-	-		-	US$			7,822		-	US$			13,979		-	US$			-	US$			-	US$	-			-	US$			21,974
	BNP Paribas SA	〃	-	-		-	US$			13,202		-	US$			11,559		-	US$			7,154	US$			6,882	US$	272			-	US$			17,415
	Verizon Communications Inc.	〃	-	-		-	US$			10,558		-	US$			16,617		-	US$			9,798	US$			9,742	US$	56			-	US$			17,385
	NTT Finance Corporation	〃	-	-		-	US$			-		-	US$			14,780		-	US$			1,941	US$			1,945	US$	(4	)		-	US$			12,772
	Morgan Stanley	〃	-	-		-	US$			-		-	US$			12,035		-	US$			-	US$			-	US$	-			-	US$			12,087
	Morgan Stanley	〃	-	-		-	US$			23,053		-	US$			-		-	US$			11,390	US$			11,125	US$	265			-	US$			11,352
	AstraZeneca Finance LLC	〃	-	-		-	US$			-		-	US$			10,933		-	US$			-	US$			-	US$	-			-	US$			10,906
	Wells Fargo & Company	Financial assets at amortized cost	-	-		-	US$			180,487		-	US$			-		-	US$			150,000	US$			150,000	US$	-			-	US$			30,517
	JPMorgan Chase & Co.	〃	-	-		-	US$			95,058		-	US$			-		-	US$			85,000	US$			85,000	US$	-			-	US$			10,069

(Continued)

67

 

Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Beginning Balance				Acquisition				Disposal									Ending Balance (Note 1)
					Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)		Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)		Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)		Carrying Value (Foreign Currencies in Thousands)		Gain/Loss on Disposal (Foreign Currencies in Thousands)			Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)
TSMC Global	Government bond
	United States Department of The Treasury	Financial assets at fair value through other comprehensive income	-	-		-	US$	182,533		-	US$	820,944		-	US$	432,147	US$	435,080	US$	(2,933	)		-	US$	565,289
	United States Department of The Treasury	〃	-	-		-	US$	287,012		-	US$	55,841		-	US$	54,999	US$	55,025	US$	(26	)		-	US$	283,550
	United States Department of The Treasury	〃	-	-		-	US$	-		-	US$	28,659		-	US$	19,945	US$	19,940	US$	5			-	US$	8,721
	Agency bonds/Agency mortgage-backed securities
	Government National Mortgage Association	Financial assets at fair value through other comprehensive income	-	-		-	US$	-		-	US$	195,522		-	US$	30,624	US$	30,623	US$	1			-	US$	164,208
	Federal National Mortgage Association	〃	-	-		-	US$	49,027		-	US$	892,668		-	US$	876,060	US$	876,798	US$	(738	)		-	US$	64,822
	Federal National Mortgage Association	〃	-	-		-	US$	4,035		-	US$	436,231		-	US$	382,507	US$	382,268	US$	239			-	US$	58,001
	Government National Mortgage Association	〃	-	-		-	US$	199,835		-	US$	82,010		-	US$	234,616	US$	236,103	US$	(1,487	)		-	US$	43,636
	Government National Mortgage Association	〃	-	-		-	US$	30,307		-	US$	38,746		-	US$	26,763	US$	27,365	US$	(602	)		-	US$	41,191
	Federal National Mortgage Association	〃	-	-		-	US$	96,211		-	US$	232,485		-	US$	288,658	US$	290,727	US$	(2,069	)		-	US$	37,429
	Federal National Mortgage Association	〃	-	-		-	US$	-		-	US$	160,908		-	US$	137,310	US$	137,347	US$	(37	)		-	US$	23,546
	Federal National Mortgage Association	〃	-	-		-	US$	4,377		-	US$	185,245		-	US$	174,469	US$	174,870	US$	(401	)		-	US$	14,728
	Government National Mortgage Association	〃	-	-		-	US$	14,244		-	US$	259,107		-	US$	259,965	US$	260,102	US$	(137	)		-	US$	13,234
	Government National Mortgage Association	〃	-	-		-	US$	9,795		-	US$	119,654		-	US$	118,672	US$	118,793	US$	(121	)		-	US$	10,641
	GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 2	〃	-	-		-	US$	-		-	US$	107,618		-	US$	97,545	US$	97,498	US$	47			-	US$	10,164
	Federal National Mortgage Association	〃	-	-		-	US$	18,997		-	US$	2,026		-	US$	11,682	US$	11,873	US$	(191	)		-	US$	9,033
	Federal National Mortgage Association	〃	-	-		-	US$	18,019		-	US$	-		-	US$	11,085	US$	10,684	US$	401			-	US$	6,658
	Government National Mortgage Association	〃	-	-		-	US$	27,389		-	US$	-		-	US$	22,141	US$	21,884	US$	257			-	US$	4,706
	Federal National Mortgage Association	〃	-	-		-	US$	24,084		-	US$	-		-	US$	19,439	US$	18,741	US$	698			-	US$	4,517
	Government National Mortgage Association	〃	-	-		-	US$	24,481		-	US$	-		-	US$	20,012	US$	19,557	US$	455			-	US$	3,989
	Federal National Mortgage Association	〃	-	-		-	US$	23,776		-	US$	3,105		-	US$	22,916	US$	22,478	US$	438			-	US$	3,828
	Federal National Mortgage Association	〃	-	-		-	US$	21,409		-	US$	154,866		-	US$	173,813	US$	173,786	US$	27			-	US$	2,455
	Government National Mortgage Association	〃	-	-		-	US$	1,067		-	US$	12,888		-	US$	12,668	US$	12,682	US$	(14	)		-	US$	1,271

(Continued)

68

 

Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Beginning Balance				Acquisition				Disposal									Ending Balance (Note 1)
					Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)		Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)		Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)		Carrying Value (Foreign Currencies in Thousands)		Gain/Loss on Disposal (Foreign Currencies in Thousands)			Shares/Units (In Thousands)		Amount (Foreign Currencies in Thousands)
TSMC Global	Federal National Mortgage Association	Financial assets at fair value through other comprehensive income	-	-		-	US$	19,673		-	US$	125,721		-	US$	144,267	US$	144,211	US$	56			-	US$	1,173
	Government National Mortgage Association	〃	-	-		-	US$	5,381		-	US$	41,213		-	US$	46,054	US$	46,057	US$	(3	)		-	US$	534
	Federal National Mortgage Association	〃	-	-		-	US$	5,253		-	US$	11,906		-	US$	17,015	US$	17,228	US$	(213	)		-	US$	-
	Government National Mortgage Association	〃	-	-		-	US$	17,896		-	US$	120,259		-	US$	137,175	US$	138,089	US$	(914	)		-	US$	-
	Federal Home Loan Mortgage Corporation	〃	-	-		-	US$	20,247		-	US$	20,029		-	US$	40,162	US$	40,121	US$	41			-	US$	-
	Federal National Mortgage Association	〃	-	-		-	US$	31,980		-	US$	171,131		-	US$	202,799	US$	202,880	US$	(81	)		-	US$	-
	Federal Home Loan Mortgage Corporation	〃	-	-		-	US$	-		-	US$	69,247		-	US$	69,184	US$	69,246	US$	(62	)		-	US$	-
	Government National Mortgage Association	〃	-	-		-	US$	18,900		-	US$	121,784		-	US$	140,660	US$	140,610	US$	50			-	US$	-
	Federal Home Loan Mortgage Corporation	〃	-	-		-	US$	11,872		-	US$	-		-	US$	11,654	US$	11,120	US$	534			-	US$	-
	Federal National Mortgage Association	〃	-	-		-	US$	8,394		-	US$	89,440		-	US$	97,826	US$	97,829	US$	(3	)		-	US$	-
	Federal National Mortgage Association	〃	-	-		-	US$	3,592		-	US$	31,349		-	US$	34,948	US$	34,925	US$	23			-	US$	-

Note 1: The ending balance includes the realized gain/loss on equity investment, the amortization of premium/discount on bonds investments and other related adjustment.

Note 2: To facilitate VisEra’s IPO in Taiwan, 39,501 thousand common shares of VisEra at a price of NT$240 were sold by TSMC and an increase of NT$8,406,282 thousand in capital surplus was recognized. TSMC’s shareholding in VisEra decreased from 87% to 73%. This disposal was accounted for as an equity transaction since the transaction did not change TSMC’s control over VisEra.

(Concluded)

69

 

TABLE 5

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

ACQUISITION OF INDIVIDUAL REAL ESTATE PROPERTIES AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE SIX MONTHS ENDED JUNE 30, 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

February 09, 2021 (Note)

$52,100,000 (Note)

Based on the terms in the purchase order

85 counterparties (Note), including：

-

N/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB Ltd.

Accudevice Co., Ltd.

Air Liquide Far Eastern Ltd.

Allis Electric Co., Ltd.

Am-Power Machine International Enterprise Co., Ltd.

Atlas Copco Taiwan Ltd.

Atlas Technology Corp.

Capital Machinery Limited

Chen Yuan International Co., Ltd.

Chenfull International Co., Ltd.

Cheng Deh Fire Protection Industrial Corp.

Chien Kuo Construction Co., Ltd.

China Steel Structure Co., Ltd.

Chun Yuan Steel Industry Co., Ltd.

Chung-Lin General Contractors, Ltd.

Cica-Huntek Chemical Technology Taiwan Co., Ltd.

Confederate Technology Co., Ltd.

(Continued)

70

 

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Da-Cin Construction Co., Ltd.

Desiccant Technology Corporation

Evergreen Steel Corporation

Exyte Taiwan Co., Ltd.

Fortune Electric Co., Ltd.

Fu Tsu Construction Co., Ltd.

Hantech Engineering Co., Ltd.

Hsieh Kun Co., Ltd.

Hueng Luei Process Industry Co., Ltd.

Ingersoll-Rand Southeast Asia (Pte) Ltd. Taiwan Branch (Singapore)

J.C. Yang Architect and Associates

JG Environmental Technology Co., Ltd.

JJmr-Clean-Air Solution Tech.Services Co., Ltd.

Jusun Instruments Co., Ltd.

Kedge Construction Co., Ltd.

Kinetics Technology Corporation

L&K Engineering Co., Ltd.

Lead-Fu Industrials Corporation

Lee Ming Construction Co., Ltd.

Li Jin Engineering Co., Ltd.

Mandartech Interiors Inc.

Marketech International Corp.

Mega Union Technology Incorporated

National Institute of Advanced Industrial Science & Technology

(Continued)

71

 

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Organo Technology Co., Ltd.

Ovivo Taiwan Co., Ltd.

Pan Asia (Engineers & Constructors) Corporation

Ruentex Engineering & Construction Co., Ltd.

San Fu Chemical Co., Ltd.

Schneider Electric Taiwan Co., Ltd.

Shihlin Electric & Engineering Corporation

Siemens Limited

Solomon Technology Corporation

Swift Engineering Co., Ltd.

Taiwan Gleno Enterprise Co., Ltd.

Taiwan Obayashi Corporation

Taiwan Puritic Corp.

TASA Construction Corporation

Techgo Industrial Co., Ltd.

Trusval Technology Co., Ltd.

Tung Kang Steel Structure Corp.

Uangyih-Tech Industrial Co., Ltd.

Unelectra International Corp.

United Integrated Services Co., Ltd.

Versum Materials Taiwan Co., Ltd.

Weltall Technology Corporation

Wholetech System Hitech Limited

Yangtech Engineering Co., Ltd.

Yankey Engineering Co., Ltd.

(Continued)

72

 

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Ying Pao Technology Inc.

Zhao-Cheng Corp.

Real estate

April 22, 2021 (Note)

$9,500,000 (Note)

Based on the terms in the purchase order

70 counterparties (Note), including：

-

N/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

J. Cypress Co., Ltd.

L&K Engineering Co., Ltd.

Marketech International Corp.

Mega Union Technology Incorporated

Organo Technology Co., Ltd.

Taiwan Puritic Corp.

Uangyih-Tech Industrial Co., Ltd.

United Integrated Services Co., Ltd.

Real estate

June 09, 2021 (Note)

54,500,000 (Note)

Based on the terms in the purchase order

101 counterparties (Note), including：

-

N/A

N/A

N/A

N/A

Price comparison and price negotiation

Manufacturing purpose

None

ABB Ltd.

Accudevice Co., Ltd.

Air Liquide Far Eastern Ltd.

Allis Electric Co., Ltd.

Am-Power Machine International Enterprise Co., Ltd.

Atlas Copco Taiwan Ltd.

Atlas Technology Corp.

Capital Machinery Limited

Chen Yuan International Co., Ltd.

Chenfull International Co., Ltd.

Cheng Deh Fire Protection Industrial Corp.

(Continued)

73

 

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Chien Kuo Construction Co., Ltd.

China Steel Structure Co., Ltd.

Chun Yuan Steel Industry Co., Ltd.

Chung-Lin General Contractors, Ltd.

Cica-Huntek Chemical Technology Taiwan Co., Ltd.

Confederate Technology Co., Ltd.

Da-Cin Construction Co., Ltd.

Desiccant Technology Corporation

Evergreen Steel Corporation

Exyte Taiwan Co., Ltd.

Fortune Electric Co., Ltd.

Fu Tsu Construction Co., Ltd.

Hantech Engineering Co., Ltd.

Hsieh Kun Co., Ltd.

Hueng Luei Process Industry Co., Ltd.

Ingersoll-Rand Southeast Asia (Pte) Ltd. Taiwan Branch (Singapore)

J.C. Yang Architect and Associates

JG Environmental Technology Co., Ltd.

JJmr-Clean-Air Solution Tech.Services Co., Ltd.

Jusun Instruments Co., Ltd.

Kao Hsin Engineering Co., Ltd.

Kedge Construction Co., Ltd.

Kinetics Technology Corporation

(Continued)

74

 

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

L&K Engineering Co., Ltd.

Lead-Fu Industrials Corporation

Lee Ming Construction Co., Ltd.

Mandartech Interiors Inc.

Marketech International Corp.

Mega Union Technology Incorporated

Organo Technology Co., Ltd.

Ovivo Taiwan Co., Ltd.

Pan Asia (Engineers & Constructors) Corporation

Ruentex Engineering & Construction Co., Ltd.

San Fu Chemical Co., Ltd.

Schneider Electric Taiwan Co., Ltd.

Shihlin Electric & Engineering Corporation

Siemens Limited

Solomon Technology Corporation

Swift Engineering Co., Ltd.

Taiwan Gleno Enterprise Co., Ltd.

Taiwan Obayashi Corporation

Taiwan Puritic Corp.

TASA Construction Corporation

Techgo Industrial Co., Ltd.

Trane Taiwan Distribution Limited

Trusval Technology Co., Ltd.

Tung Kang Steel Structure Corp.

Uangyih-Tech Industrial Co., Ltd.

(Continued)

75

 

Company Name

Types of Property

Transaction Date

Transaction Amount (Foreign Currencies in Thousands)

Payment Term

Counterparty

Nature of Relationships

Prior Transaction of Related Counterparty

Price Reference

Purpose of Acquisition

Other Terms

Owner

Relationships

Transfer Date

Amount

TSMC

Real estate

Unelectra International Corp.

United Integrated Services Co., Ltd.

Versum Materials Taiwan Co., Ltd.

Weltall Technology Corporation

Wholetech System Hitech Limited

Yangtech Engineering Co., Ltd.

Yankey Engineering Co., Ltd.

Ying Pao Technology Inc.

Zhao-Cheng Corp.

Note : The disclosures are expected information based on the capital appropriation approved by the Board of Directors (Right-of-use assets are included). The actual information shall be subject to the final purchase order of TSMC.

(Concluded)

76

 

TABLE 6

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE SIX MONTHS ENDED JUNE 30, 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company Name	Related Party	Nature of Relationships	Transaction Details									Abnormal Transaction		Notes/Accounts Payable or Receivable							Note
			Purchases/ Sales	Amount (Foreign Currencies in Thousands)					% to Total		Payment Terms	Unit Price	Payment Terms	Ending Balance (Foreign Currencies in Thousands)					% to Total
TSMC	TSMC North America	Subsidiary	Sales	$		482,692,416				66	Net 30 days from invoice date (Note)	-	Note	$		121,840,326				73
	GUC	Associate	Sales		2,209,613					-	Net 30 days from the end of the month of when invoice is issued	-	-		463,695					-
	TSMC Nanjing	Subsidiary	Purchases		13,011,111					22	Net 30 days from the end of the month of when invoice is issued	-	-		(2,044,410			)		5
	TSMC China	Subsidiary	Purchases		10,434,960					17	Net 30 days from the end of the month of when invoice is issued	-	-		(1,801,500			)		4
	WaferTech	Indirect subsidiary	Purchases		3,726,428					6	Net 30 days from the end of the month of when invoice is issued	-	-		(662,829			)		2
	SSMC	Associate	Purchases		1,952,621					3	Net 30 days from the end of the month of when invoice is issued	-	-		(412,226			)		1
	VIS	Associate	Purchases		1,950,512					3	Net 30 days from the end of the month of when invoice is issued	-	-		(334,046			)		1
TSMC North America	GUC	Associate of TSMC	Sales		895,069					-	Net 30 days from invoice date	-	-		211,545					-
				(US$			31,937	)						(US$			7,585	)
VisEra Tech	Xintec	Associate of TSMC	Sales		329,681					9	Net 60 days from the end of the month of when invoice is issued	-	-		108,907					9

Note: The tenor is determined by the payment terms granted to its clients by TSMC North America.

77

 

TABLE 7

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

JUNE 30, 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company Name	Related Party	Nature of Relationships	Ending Balance (Foreign Currencies in Thousands)					Turnover Days (Note 1)	Overdue				Amounts Received in Subsequent Period			Allowance for Bad Debts
									Amount			Action Taken
TSMC	TSMC North America	Subsidiary	$		124,006,833			42	$		-	-	$		-	$		-
	TSMC Nanjing	Subsidiary		208,440				Note 2		-		-		-			-
	TSMC Arizona	Subsidiary		112,037				Note 2		-		-		-			-
	VIS	Associate		1,639,722				Note 2		-		-		-			-
	GUC	Associate		463,695				32		-		-		-			-
TSMC North America	GUC	Associate of TSMC		211,545				28		-		-		-			-
			(US$			7,585	)
TSMC China	TSMC Nanjing	The same parent company		24,381,329				Note 2		-		-		-			-
			(RMB			5,648,533	)
	TSMC	Parent company		1,801,500				30		-		-		-			-
			(RMB			417,364	)
TSMC Nanjing	TSMC	Parent company		2,044,410				28		-		-		-			-
			(RMB			472,710	)
VisEra Tech	Xintec	Associate of TSMC		108,907				82		-		-		-			-
TSMC Technology	TSMC	The ultimate parent of the Company		322,629				Note 2		-		-		-			-
			(US$			11,568	)
WaferTech	TSMC	The ultimate parent of the Company		662,829				33		-		-		-			-
			(US$			23,766	)

Note 1: The calculation of turnover days excludes other receivables from related parties.

Note 2: The ending balance is primarily consisted of other receivables, which is not applicable for the calculation of turnover days.

78

 

TABLE 8

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2021

(Amounts in Thousands of New Taiwan Dollars)

No.	Company Name	Counterparty	Nature of Relationship (Note 1)	Intercompany Transactions
				Financial Statements Item	Amount			Terms (Note 2)	Percentage of Consolidated Net Revenue or Total Assets
0	TSMC	TSMC North America	1	Net revenue from sale of goods	$		482,692,416	-		66%
				Receivables from related parties		121,840,326		-		4%
				Other receivables from related parties		2,166,507		-		-
		TSMC Japan	1	Marketing expenses - commission		114,908		-		-
		TSMC JDC	1	Research and development expenses		171,843		-		-
		TSMC Europe	1	Marketing expenses - commission		236,744		-		-
		TSMC China	1	Purchases		10,434,960		-		1%
				Marketing expenses - commission		127,336		-		-
				Payables to related parties		1,801,500		-		-
		TSMC Nanjing	1	Purchases		13,011,111		-		2%
				Other receivables from related parties		208,440		-		-
				Payables to related parties		2,044,410		-		-
		TSMC Arizona	1	Other receivables from related parties		112,037		-		-
		TSMC Canada	1	Research and development expenses		156,024		-		-
		TSMC Technology	1	Research and development expenses		1,407,937		-		-
				Payables to related parties		322,629		-		-
		WaferTech	1	Purchases		3,726,428		-		1%
				Payables to related parties		662,829		-		-
1	TSMC China	TSMC Nanjing	3	Other receivables from related parties		24,381,329		-		1%

Note 1: No. 1 represents the transactions from parent company to subsidiary.
No. 3 represents the transactions between subsidiaries.

Note 2: The sales prices and payment terms of intercompany sales are not significantly different from those to third parties.  For other intercompany transactions, prices and terms are determined in accordance with mutual agreements.

79

 

TABLE 9

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN MAINLAND CHINA)

FOR THE SIX MONTHS ENDED JUNE 30, 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount										Balance as of June 30, 2021									Net Income (Losses) of the Investee (Foreign Currencies in Thousands)					Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands)				Note
				June 30, 2021 (Foreign Currencies in Thousands)					December 31, 2020 (Foreign Currencies in Thousands)					Shares (In Thousands)		Percentage of Ownership		Carrying Value (Foreign Currencies in Thousands)
TSMC	TSMC Global	Tortola, British Virgin Islands	Investment activities	$		355,162,309			$		355,162,309				11		100	$		379,287,757			$		1,129,867			$		1,129,867		Subsidiary
	TSMC Partners	Tortola, British Virgin Islands	Investing in companies involved in the semiconductor design and manufacturing, and other investment activities		31,456,130					31,456,130					988,268		100		53,345,585					917,261					917,261			Subsidiary
	TSMC Arizona	Phoenix, Arizona, U.S.A.	Manufacturing, sales and testing of integrated circuits and other semiconductor devices		17,614,783					855,599					625		100		15,633,888					(1,805,198			)		(1,805,198		)	Subsidiary
	VIS	Hsin-Chu, Taiwan	Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks		10,180,677					10,180,677					464,223		28		8,702,574					4,815,399					1,361,274			Associate
	SSMC	Singapore	Manufacturing and sales of integrated circuits and other semiconductor devices		5,120,028					5,120,028					314		39		6,409,172					1,422,791					551,901			Associate
	VisEra Tech	Hsin-Chu, Taiwan	Research, design, development, manufacturing, sales, packaging and test of color filter		4,224,082					5,005,171					213,619		73		5,979,226					830,949					659,813			Subsidiary
	TSMC North America	San Jose, California, U.S.A	Sales and marketing of integrated circuits and other semiconductor devices		333,718					333,718					11,000		100		4,753,457					220,279					220,279			Subsidiary
	Xintec	Taoyuan, Taiwan	Wafer level chip size packaging and wafer level post passivation interconnection service		1,988,317					1,988,317					111,282		41		2,898,577					839,345					344,454			Associate
	GUC	Hsin-Chu, Taiwan	Researching, developing, manufacturing, testing and marketing of integrated circuits		386,568					386,568					46,688		35		1,300,841					527,591					183,803			Associate
	TSMC Europe	Amsterdam, the Netherlands	Customer service and supporting activities		15,749					15,749					-		100		527,551					11,290					11,290			Subsidiary
	TSMC JDC	Yokohama, Japan	Engineering support activities		410,680					302,560					15		100		378,574					7,215					7,215			Subsidiary
	VTAF III	Cayman Islands	Investing in technology start-up companies		1,320,222					1,318,846					-		98		203,740					(4,101			)		(4,019		)	Subsidiary
	Emerging Fund	Cayman Islands	Investing in technology start-up companies		154,688					-					-		99.9		148,101					(5,320			)		(5,315		)	Subsidiary
	TSMC Japan	Yokohama, Japan	Customer service and supporting activities		83,760					83,760					6		100		137,221					3,313					3,313			Subsidiary
	VTAF II	Cayman Islands	Investing in technology start-up companies		260,300					260,300					-		98		83,917					(921			)		(903		)	Subsidiary
	TSMC Korea	Seoul, Korea	Customer service and supporting activities		13,656					13,656					80		100		41,305					881					881			Subsidiary
	TSMC 3DIC	Yokohama, Japan	Engineering support activities		2,556					-					-		100		1,592					(947			)		(947		)	Subsidiary
TSMC Partners	TSMC Development	Delaware, U.S.A	Investing in companies involved in		16,369,136					16,369,136					-		100		29,981,117					709,009					Note 2			Subsidiary
			semiconductor manufacturing	(US$			586,939	)	(US$			586,939	)					(US$			1,075,016	)	(US$			25,298	)
	TSMC Technology	Delaware, U.S.A	Engineering support activities		398,311					398,311					-		100		828,319					64,902					Note 2			Subsidiary
				(US$			14,282	)	(US$			14,282	)					(US$			29,701	)	(US$			2,316	)
	TSMC Canada	Ontario, Canada	Engineering support activities		64,145					64,145					2,300		100		273,439					11,285					Note 2			Subsidiary
				(US$			2,300	)	(US$			2,300	)					(US$			9,805	)	(US$			403	)
VTAF III	Growth Fund	Cayman Islands	Investing in technology start-up companies		71,222					69,828					-		100		116,449					(561			)		Note 2			Subsidiary
				(US$			2,554	)	(US$			2,504	)					(US$			4,175	)	(US$			(20	))
	Mutual-Pak	New Taipei, Taiwan	Manufacturing of electronic parts, wholesaling		44,437					44,437					4,693		28		25,714					(8,707			)		Note 2			Associate
			and retailing of electronic materials, and researching, developing and testing of RFID	(US$			1,593	)	(US$			1,593	)					(US$			922	)	(US$			(307	))
TSMC Development	WaferTech	Washington, U.S.A	Manufacturing, sales and testing of integrated		-					-					293,637		100		5,246,559					673,083					Note 2			Subsidiary
			circuits and other semiconductor devices															(US$			188,123	)	(US$			24,016	)

Note 1: The share of profits/losses of investee includes the effect of unrealized gross profit on intercompany transactions.

Note 2: The share of profits/losses of the investee company is not reflected herein as such amount is already included in the share of profits/losses of the investor company.

80

 

TABLE 10

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

INFORMATION ON INVESTMENT IN MAINLAND CHINA

FOR SIX MONTHS ENDED JUNE 30, 2021

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital (RMB in Thousands)			Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021 (US$ in Thousands)			Investment Flows						Accumulated Outflow of Investment from Taiwan as of June 30, 2021 (US$ in Thousands)			Net Income (Losses) of the Investee Company			Percentage of Ownership		Share of Profits/Losses				Carrying Amount as of June 30, 2021			Accumulated Inward Remittance of Earnings as of June 30, 2021
									Outflow			Inflow
TSMC China	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	$ (RMB	18,939,667 4,502,080	)	Note 1	$ (US$	18,939,667 596,000	)	$		-	$		-	$ (US$	18,939,667 596,000	)	$		3,991,180		100%	$		4,064,849 (Note 2	)	$		68,598,830	$		-
TSMC Nanjing	Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices	(RMB	30,521,412 6,650,119	)	Note 1	(US$	30,521,412 1,000,000	)		-			-		(US$	30,521,412 1,000,000	)		5,570,032			100%		5,570,053 (Note 2		)		39,277,728			-

Accumulated Investment in Mainland China as of June 30, 2021 (US$ in Thousands)			Investment Amounts Authorized by Investment Commission, MOEA (US$ in Thousands)			Upper Limit on Investment
$ (US$	49,461,079 1,596,000	)	$ (US$	119,412,667 3,596,000	)	$	1,196,382,344 (Note 3	)

Note 1: TSMC directly invested US$596,000 thousand in TSMC China and US$1,000,000 thousands in TSMC Nanjing.

Note 2: Amount was recognized based on the reviewed financial statements.

Note 3: The upper limit on investment in mainland China is determined by sixty percent (60%) of the Company’s consolidated net worth.

81

 

TABLE 11

Taiwan Semiconductor Manufacturing Company Limited

INFORMATION ON MAJOR SHAREHOLDERS

JUNE 30, 2021

Shareholders (Note)	Shares
	Total Shares Owned		Ownership Percentage
ADR-Taiwan Semiconductor Manufacturing Company, Ltd.		5,321,442,098		20.52%
National Development Fund, Executive Yuan		1,653,709,980		6.38%

Note: Major shareholders shows the list of all shareholders with ownership of 5 percent or greater.

82