0001046179 tsm:LandAndLandImprovements1Member ifrs-full:GrossCarryingAmountMember ifrs-full:PropertyPlantAndEquipmentNotSubjectToOperatingLeasesMember 2021-01-01 2021-12-31
☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
2021
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
886-3-5055901
☑
Large Accelerated Filer | Accelerated Filer ☐ | Non-Accelerated Filer ☐ | Emerging Growth Company ☐ |
U.S. GAAP ☐ | International Financial Reporting Standards as issued by the International Accounting Standards Board | Other ☐ |
* | Not for trading, but only in connection with the listing on the New York Stock Exchange, Inc. of American Depositary Shares (“ADS”) representing such Common Shares |
EX-2a.1 DESCRIPTION OF SECURITIES REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT |
EX-4.47 LAND LEASE WITH SOUTHERN TAIWAN SCIENCE PARK ADMINISTRATION RELATING TO FAB14 & FAB18 LOCATED IN SOUTHERN TAIWAN SCIENCE PARK (EFFECTIVE JANUARY 1, 2022 TO DECEMBER 31, 2041) (ENGLISH SUMMARY) |
EX-4.48 LAND LEASE WITH |
EX-4.49 LAND LEASE WITH SOUTHERN TAIWAN SCIENCE PARK ADMINISTRATION |
i
EX-4.50 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD. EMPLOYEE RESTRICTED STOCK AWARDS RULES FOR YEAR 2021 |
EX-4.51 TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD. EMPLOYEE RESTRICTED STOCK AWARDS RULES FOR YEAR 2022 (AS APPROVED BY THE BOARD OF DIRECTORS ON APRIL 12, 2022, AND SUBJECT TO SHAREHOLDER APPROVAL AND APPROVAL BY THE R.O.C. FINANCIAL SUPERVISORY COMMISSION) |
EX-8.1 SUBSIDIARIES OF TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD. |
EX-12.1 CERTIFICATION OF CEO - RULE13A-14(A) |
EX-12.2 CERTIFICATION OF CFO - RULE13A-14(A) |
EX-13.1 CERTIFICATION OF CEO - RULE13A-14(B) |
EX-13.2 CERTIFICATION OF CFO - RULE13A-14(B) EX-17 ISSUERS OF GUARANTEED SECURITIES |
EX-101.INS iXBRL INSTANCE DOCUMENT (EMBEDDED WITHIN THE INLINE XBRL |
EX-101.SCH iXBRL TAXONOMY EXTENSION SCHEMA DOCUMENT |
EX-101.CAL iXBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT |
EX-101.DEF iXBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT |
EX-101.LAB iXBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT |
EX-101.PRE iXBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT |
EX-104 COVER PAGE INTERACTIVE DATA FILE (EMBEDDED WITHIN THE INLINE XBRL DOCUMENT) |
overcapacity in the semiconductor industry;
our reliance on certain major customers;
the political stability
general local and global economic conditions.
|
Not applicable.
|
Not applicable.
|
Selected Financial and Operating Data
The selected consolidated statements of profit or loss and other comprehensive income data and other consolidated financial data for the years ended December 31, 2017, 2018 and 2019, and the selected consolidated statements of financial position data as of December 31, 2018 and 2019, set forth below, are derived from our audited consolidated financial statements included herein, and should be read in conjunction with, and are qualified in their entirety by reference to, these consolidated financial statements, including the notes thereto, which have been prepared in accordance with International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) issued by the International Accounting Standards Board (IASB) (collectively, “IFRSs”). The selected consolidated statements of profit or loss and other comprehensive income data and other consolidated financial data for the years ended December 31, 2015 and 2016 and the selected consolidated statements of financial position data as of December 31, 2015, 2016 and 2017 set forth below are derived from our audited consolidated financial statements not included herein.
In addition to preparing financial statements in accordance with IFRSs included in this annual report, we also prepare financial statements in accordance with the IFRSs as adopted for use in Taiwan (“Taiwan-IFRSs”), which we are required to file with the Financial Supervisory Commission (“FSC”) of the Republic of China (“R.O.C.” or “Taiwan”) and Taiwan Stock Exchange (“TWSE”) under the applicable regulations and listing rules of TWSE. The English translation of such financial statements is furnished to the Securities and Exchange Commission (“SEC”) on Form6-K, which is not incorporated by reference to this or any of our previous annual reports on Form20-F.
Year ended and as of December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | US$ | |||||||||||||||||||
(in millions, except for earnings per share and per ADS) | ||||||||||||||||||||||||
Consolidated Statements of Profit or Loss and Other Comprehensive Income Data: |
| |||||||||||||||||||||||
Net revenue | 843,497 | 947,938 | 977,447 | 1,031,474 | 1,069,985 | 35,774 | ||||||||||||||||||
Cost of revenue | (433,117 | ) | (473,077 | ) | (482,616 | ) | (533,488 | ) | (577,286 | ) | (19,301 | ) | ||||||||||||
Gross profit before realized (unrealized) gross profit on sales to associates | 410,380 | 474,861 | 494,831 | 497,986 | 492,699 | 16,473 | ||||||||||||||||||
Realized (unrealized) gross profit on sales to associates | 15 | (29 | ) | (5 | ) | (112 | ) | 3 | — | |||||||||||||||
Gross profit | 410,395 | 474,832 | 494,826 | 497,874 | 492,702 | 16,473 | ||||||||||||||||||
Operating expenses | (88,467 | ) | (96,904 | ) | (107,902 | ) | (112,149 | ) | (119,505 | ) | (3,995 | ) | ||||||||||||
Other operating income and expenses, net | (1,880 | ) | 30 | (1,365 | ) | (2,101 | ) | (496 | ) | (17 | ) | |||||||||||||
Income from operations | 320,048 | 377,958 | 385,559 | 383,624 | 372,701 | 12,461 | ||||||||||||||||||
Non-operating income and expenses, net | 30,430 | 7,964 | 10,603 | 13,919 | 17,161 | 574 | ||||||||||||||||||
Income before income tax | 350,478 | 385,922 | 396,162 | 397,543 | 389,862 | 13,035 | ||||||||||||||||||
Income tax expense | (47,645 | ) | (54,125 | ) | (51,123 | ) | (34,437 | ) | (35,835 | ) | (1,199 | ) | ||||||||||||
Net income | 302,833 | 331,797 | 345,039 | 363,106 | 354,027 | 11,836 | ||||||||||||||||||
Other comprehensive income (loss) for the year, net of income tax | (14,714 | ) | (11,067 | ) | (28,822 | ) | 9,837 | (11,824 | ) | (395 | ) | |||||||||||||
Total comprehensive income for the year | 288,119 | 320,730 | 316,217 | 372,943 | 342,203 | 11,441 | ||||||||||||||||||
Net income attributable to shareholders of the parent | 302,851 | 331,714 | 344,998 | 363,053 | 353,948 | 11,834 | ||||||||||||||||||
Net income (loss) attributable to non-controlling interests | (18 | ) | 83 | 41 | 53 | 79 | 2 | |||||||||||||||||
Total comprehensive income attributable to shareholders of the parent | 288,145 | 320,653 | 316,182 | 372,887 | 342,125 | 11,438 | ||||||||||||||||||
Total comprehensive income (loss) attributable tonon-controlling interests | (26 | ) | 77 | 35 | 56 | 78 | 3 | |||||||||||||||||
Basic/Diluted earnings per share | 11.68 | 12.79 | 13.30 | 14.00 | 13.65 | 0.46 | ||||||||||||||||||
Basic/Diluted earnings per ADS equivalent | 58.40 | 63.96 | 66.52 | 70.01 | 68.25 | 2.28 | ||||||||||||||||||
Basic/Diluted weighted average shares outstanding | 25,930 | 25,930 | 25,930 | 25,930 | 25,930 | 25,930 |
Year ended and as of December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | US$ | |||||||||||||||||||
(in millions, except for cash dividend per common share) | ||||||||||||||||||||||||
Consolidated Statements of Financial Position Data: | ||||||||||||||||||||||||
Current assets | 746,744 | 817,729 | 857,203 | 951,680 | 822,614 | 27,503 | ||||||||||||||||||
Property, plant and equipment | 853,470 | 997,778 | 1,062,543 | 1,072,050 | 1,352,377 | 45,215 | ||||||||||||||||||
Right-of-use assets(1) | — | — | — | — | 17,233 | 576 | ||||||||||||||||||
Intangible assets | 14,066 | 14,615 | 14,175 | 17,002 | 20,653 | 691 | ||||||||||||||||||
Deferred income tax assets | 6,385 | 8,271 | 12,106 | 16,806 | 17,928 | 599 | ||||||||||||||||||
Total assets | 1,657,397 | 1,886,297 | 1,991,732 | 2,090,031 | 2,264,725 | 75,718 | ||||||||||||||||||
Current liabilities | 239,772 | 348,286 | 386,890 | 356,837 | 598,364 | 20,005 | ||||||||||||||||||
Guarantee deposits | 21,565 | 14,670 | 7,587 | 3,353 | 177 | 6 | ||||||||||||||||||
Long-term bonds payable | 191,965 | 153,094 | 91,800 | 56,900 | 25,100 | 839 | ||||||||||||||||||
Total liabilities | 462,427 | 526,451 | 497,285 | 428,926 | 650,338 | 21,743 | ||||||||||||||||||
Capital stock | 259,304 | 259,304 | 259,304 | 259,304 | 259,304 | 8,669 | ||||||||||||||||||
Equity attributable to shareholders of the parent | 1,194,008 | 1,359,051 | 1,493,747 | 1,660,429 | 1,613,706 | 53,952 | ||||||||||||||||||
Non-controlling interests | 962 | 795 | 700 | 676 | 681 | 23 | ||||||||||||||||||
Cash dividend paid per common share(2) | 4.5 | 6.0 | 7.0 | 8.0 | 10.0 | 0.3 |
Year ended and as of December 31, | ||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | US$ | |||||||||||||||||||
(in millions, except for percentages and operating data) | ||||||||||||||||||||||||
Other Consolidated Financial Data: | ||||||||||||||||||||||||
Gross margin | 48.7% | 50.1% | 50.6% | 48.3% | 46.0% | 46.0% | ||||||||||||||||||
Operating margin | 37.9% | 39.9% | 39.4% | 37.2% | 34.8% | 34.8% | ||||||||||||||||||
Net margin | 35.9% | 35.0% | 35.3% | 35.2% | 33.1% | 33.1% | ||||||||||||||||||
Capital expenditures | 257,517 | 328,045 | 330,588 | 315,582 | 460,422 | 15,394 | ||||||||||||||||||
Depreciation and amortization | 222,506 | 223,828 | 260,143 | 292,546 | 286,884 | 9,592 | ||||||||||||||||||
Cash generated by operating activities | 529,879 | 539,835 | 585,318 | 573,954 | 615,139 | 20,566 | ||||||||||||||||||
Cash used in investing activities | (217,246) | (395,440) | (336,165) | (314,269) | (458,802) | (15,339) | ||||||||||||||||||
Cash used in financing activities | (116,734) | (157,800) | (215,697) | (245,124) | (269,639) | (9,015) | ||||||||||||||||||
Effect of exchange rate changes and others | 8,341 | (8,030) | (21,318) | 9,862 | (9,114) | (305) | ||||||||||||||||||
Net increase (decrease) in cash | 204,240 | (21,435) | 12,138 | 24,423 | (122,416) | (4,093) | ||||||||||||||||||
Operating Data: | ||||||||||||||||||||||||
Wafer(12-inch equivalent) shipment(3) | 8,763 | 9,606 | 10,449 | 10,752 | 10,068 | 10,068 | ||||||||||||||||||
Billing utilization rate(4) | 93% | 92% | 91% | 87% | 81% | 81% |
|
|
|
|
Exchange Rates
30, 2021.
ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS |
ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. | KEY INFORMATION |
For example, in May 2020 and again in August 2020, the U.S. tightened its export control measures against Huawei Technology Co. Ltd. and its affiliates (collectively, “Huawei”), including an expanded license requirement for providing Huawei with items subject to the U.S. export control jurisdiction. To comply with relevant laws and regulations, we have discontinued shipment of products to Huawei since September 15, 2020. On the other hand, measures adopted by an affected country to counteract the impact of another country’s actions or regulations could lead to significant legal liability to multinational corporations including our own. For example, in January 2021, China adopted a blocking statute that, among other matters, entitles Chinese entities incurring damages from a multinational’s compliance with foreign laws to seek civil remedies. In February 2022, several countries and regions began to impose various measures, including sanctions and export controls, against Russia, including certain individuals and entities, as a result of the military conflict in Ukraine. As of the date of this annual report, our current results of operations have not been materially affected by the expanded export control regulations or the novel rules or measures adopted to counteract them. Nevertheless, depending on future developments in global trade tensions and military conflicts, such regulations, rules, or measures may have an adverse impact on our business and operations, and we may incur significant legal liability and financial losses as a result.
According to the market demand forecasts, we have recently been addingcontinued to add capacity to meet market needs for our products and services. Expansion of ourservices, including in Taiwan, in Nanjing, China, in Arizona, U.S., and in Kumamoto, Japan.
We experienced and may in the future be subject to attack onward by malicious software contained in the equipment we purchase and install. The cyber security risk managementWe have implemented and solution enhancement actions have been taken continuously,continually update rigorous cybersecurity measures to prevent and minimize harm caused by such as building up an automated virus-scan systemattacks. Such measures include advanced virus scanning tools to prevent a fab from installing virus infected tools,virus-infected software, strengthening of firewall and network controlcontrols to prevent computer viruses from spreading among tools and fabs, the installation of proper anti-virus and advanced malware detection solutions for different computers, developmentacross our computer devices, and deployment of security monitor application to monitor and alert computer security issues, enhancement of computer vulnerability scandata center security through faster patch cycle times. In addition, we have deployed secure PCs and patch updating, improvinglaptops, developed a public cloud security policy with monitoring, defined and regularly reviewed the security key performance indicators (“KPI”), introduced new technology for data protection, and improved email phishing email detection and regularly performed employee awareness testing, external security risk assessments, and the establishment oftesting. We also established an integrated and automatic security operation platform.platform, enhanced the automation of cybersecurity event detection and response, enhanced internal assessment automation, practiced the response to ransomware attacks and conducted external security risk assessments. In addition, to reduce supply chain risks, through collaboration, we helped major suppliers improve their security maturity with KPI monitoring and share with them industry security events and best practices on demand and by schedule. Moreover, we led the SEMI standard taskforce to formulate and release information security standards for semiconductor equipment (SEMI E187) to help improve the resilience of semiconductor supply chain. While these ongoing enhancements further improved the cyber securityimprove our cybersecurity defense solutions, there can be no assurance that we are immune to malicious software attacks.
cyberattacks.
The recentCOVID-19 pandemic has caused us to modify our business practices, including but not limited to health management of employees, customers and suppliers, management of production inventory, and supply chain risk management. We have formed an “Epidemic Prevention Committee” to identify, implement and monitor such actions as required by the dynamic exigencies arising from the pandemic. There is no certainty that suchthe measures and otherswe have taken will be sufficient to mitigate thefurther risks posed by theaffected.
affected as a result. In addition, there is also a risk that any post-pandemic downward changes in consumers’ demand for electronic products may, in turn, lead to reduced demand for and place downward pressure on the price of our products and services.
shortages.
Future
The majority
Conversely, if the U.S. dollar appreciates significantly versus other major currencies, the demand for the products and services of our customers and for our goods and services will likely decrease, which will negatively affect our revenue. Please see “Item 11. Quantitative and Qualitative Disclosures About Market Risk” for a further discussion.
ITEM 4. | INFORMATION ON THE COMPANY |
We produced 26 percent of the world semiconductor excluding memory output value in 2021, as compared to 24 percent in the previous year.
Renesas Electronics Corporation.
Fab(1) | Year of commencement of commercial production | Wafer size | The most advanced technology for volume production(2) | |||
2 | 1990 | 6-inch | 450 | |||
3 | 1995 | 8-inch | 150 | |||
5 | 1997 | 8-inch | 150 | |||
6 | 2000 | 8-inch | 110 | |||
8 | 1998 | 8-inch | 110 | |||
10 | 2004 | 8-inch | 150 | |||
11 | 1998 | 8-inch | 150 | |||
12 | 2001 | 12-inch | 7 |
Fab(1) | Year of commencement of commercial production | Wafer size | The most advanced technology for volume production(2) | |||
14 | 2004 | 12-inch | 16 | |||
15 | 2012 | 12-inch | 7 | |||
16 | 2018 | 12-inch | 16 |
Fab (1) | Year of commencement of commercial production | Wafer size | The most advanced technology for volume production (2) | |||
2 | 1990 | 6-inch | 450 | |||
3 | 1995 | 8-inch | 150 | |||
5 | 1997 | 8-inch | 150 | |||
6 | 2000 | 8-inch | 110 | |||
8 | 1998 | 8-inch | 110 |
Fab (1) | Year of commencement of commercial production | Wafer size | The most advanced technology for volume production (2) | |||
10 | 2004 | 8-inch | 150 | |||
11 | 1998 | 8-inch | 150 | |||
12 | 2001 | 12-inch | 5 | |||
14 | 2004 | 12-inch | 16 | |||
15 | 2012 | 12-inch | 7 | |||
16 | 2018 | 12-inch | 16 | |||
18 | 2020 | 12-inch | 5 |
(1) | Fabs 2, 3, 5, 8 and Fab 12 are located in Hsinchu Science Park. Fab 6, Fab 14, and Fab |
(2) | In nanometers, as of year-end. |
technologies.
expanding buildings/facilitiesincluding building/facility expansion for Fab 18the Kumamoto fab in Southern Taiwan Science Park;Japan; and
Year ended December 31, | ||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||
Geography | Net Revenue(3) | Percentage | Net Revenue(3) | Percentage | Net Revenue(3) | Percentage | ||||||||||||||||||
(NT$ in millions, except percentages) | ||||||||||||||||||||||||
North America | 638,895 | 66% | 637,051 | 62% | 640,335 | 60% | ||||||||||||||||||
China | 110,201 | 11% | 175,794 | 17% | 208,101 | 20% | ||||||||||||||||||
Asia Pacific(1) | 98,676 | 10% | 89,434 | 9% | 96,512 | 9% | ||||||||||||||||||
EMEA(2) | 69,047 | 7% | 71,069 | 7% | 67,568 | 6% | ||||||||||||||||||
Japan | 60,628 | 6% | 58,126 | 5% | 57,469 | 5% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 977,447 | 100% | 1,031,474 | 100% | 1,069,985 | 100% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, | ||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||
Geography | Net Revenue | Percentage | Net Revenue | Percentage | Net Revenue | Percentage | ||||||||||||||||||
(NT$ in millions, except percentages) | ||||||||||||||||||||||||
North America | 640,335 | 60% | 827,511 | 62% | 1,035,982 | 65% | ||||||||||||||||||
Asia Pacific (1) | 96,512 | 9% | 144,448 | 11% | 225,950 | 14% | ||||||||||||||||||
China | 208,101 | 20% | 233,783 | 17% | 164,552 | 10% | ||||||||||||||||||
EMEA (2) | 67,568 | 6% | 70,214 | 5% | 89,010 | 6% | ||||||||||||||||||
Japan | 57,469 | 5% | 63,299 | 5% | 71,921 | 5% | ||||||||||||||||||
Total | 1,069,985 | 100% | 1,339,255 | 100% | 1,587,415 | 100% | ||||||||||||||||||
(1) | China and Japan are excluded from Asia Pacific. |
(2) | EMEA stands for Europe, Middle East, and Africa. |
|
increase.
Commitments
Somesome of our customers have entered into arrangements
5-nanometer,6-nanometer FinFET,7-nanometer FinFET Plus, and7-nanometerleadinga broad range of logic process technologies, such asincludingtechnologyplus (“12FFC+”),technologyplus (“16FFC+”),22-nanometerultra-lowhigh-end,mid-end, andlow-end mainstream product applications, we also offer the mosthighly competitive, leading-edge specialty technologies to deliver specialty companion chips for customers’ logic application processors, including RF, embedded flash memory, emerging memory technologies, power management, sensors, and display chips, as well as advanced TSMC 3DFabric
Internet of Things (“IoT”)in high performance computing markets.
technology, to support the fast-growing demand in AIoT edge computing and wireless connectivity.
Year ended December 31, | ||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||
Platform | Net Revenue | Percentage | Net Revenue | Percentage | Net Revenue | Percentage | ||||||||||||||||||
(NT$ in millions, except percentages) | ||||||||||||||||||||||||
Smartphone | 504,175 | 52% | 466,452 | 45% | 523,613 | 49% | ||||||||||||||||||
High Performance Computing | 265,394 | 27% | 341,910 | 33% | 315,822 | 30% | ||||||||||||||||||
Internet of Things | 51,776 | 5% | 65,092 | 6% | 86,343 | 8% | ||||||||||||||||||
Automotive | 43,871 | 5% | 51,710 | 5% | 47,914 | 4% |
Year ended December 31, | ||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||
Platform | Net Revenue | Percentage | Net Revenue | Percentage | Net Revenue | Percentage | ||||||||||||||||||
(NT$ in millions, except percentages) | ||||||||||||||||||||||||
Digital Consumer Electronics | 63,097 | 6% | 58,470 | 6% | 53,733 | 5% | ||||||||||||||||||
Others | 49,134 | 5% | 47,840 | 5% | 42,560 | 4% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 977,447 | 100% | 1,031,474 | 100% | 1,069,985 | 100% | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
The
Year ended December 31, | ||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||
Platform | Net Revenue | Percentage | Net Revenue | Percentage | Net Revenue | Percentage | ||||||||||||||||||
(NT$ in millions, except percentages) | ||||||||||||||||||||||||
Smartphone | 523,613 | 49% | 645,304 | 48% | 695,091 | 44% | ||||||||||||||||||
High Performance Computing | 315,822 | 30% | 439,810 | 33% | 587,780 | 37% | ||||||||||||||||||
Internet of Things | 86,343 | 8% | 110,355 | 8% | 133,006 | 8% | ||||||||||||||||||
Automotive | 47,914 | 4% | 44,367 | 3% | 67,077 | 4% | ||||||||||||||||||
Digital Consumer Electronics | 53,733 | 5% | 54,556 | 4% | 55,577 | 4% | ||||||||||||||||||
Others | 42,560 | 4% | 44,863 | 4% | 48,884 | 3% | ||||||||||||||||||
Total | 1,069,985 | 100% | 1,339,255 | 100% | 1,587,415 | 100% | ||||||||||||||||||
increase. The increase also came from the Internet of Things Platform of NT$24,012 million, or a 28% year-over-year increase.
Japan.
We use electricity supplied by the Taiwan Power Company in our manufacturing process in Taiwan.
In March 2021, we disposed a total of 39.5 million common shares of VisEra Technologies to facilitate its IPO in Taiwan. VisEra Technologies started to trade on the Emerging Board of Taipei Exchange in April 2021 and had its listing application approved by Taiwan Stock Exchange Corporation in March 2022. As of February 28, 2022, we owned approximately 72.8% of the equity interest in VisEra Technologies
ITEM 4A. | UNRESOLVED STAFF COMMENTS |
ITEM 5. | OPERATING AND FINANCIAL REVIEWS AND PROSPECTS |
U.S. Securities and Exchange Commission (“U.S. SEC”).
2021.
Migration.Development.7-nanometerlast three years:
Year ended December 31, | ||||||
2017 | 2018 | 2019 | ||||
Resolution | Percentage of total wafer revenue(1) | Percentage of total wafer revenue(1) | Percentage of total wafer revenue(1) | |||
7-nanometer | — | 9% | 27% | |||
10-nanometer | 10% | 11% | 3% | |||
16-nanometer | 22% | 21% | 20% | |||
20-nanometer | 3% | 2% | 1% | |||
28-nanometer | 23% | 20% | 16% | |||
40/45-nanometer | 12% | 11% | 10% | |||
65-nanometer | 10% | 8% | 8% | |||
90-nanometer | 4% | 4% | 3% | |||
0.11/0.13 micron | 3% | 2% | 2% | |||
0.15/0.18 micron | 10% | 9% | 8% | |||
³0.25 micron | 3% | 3% | 2% | |||
Total | 100% | 100% | 100% |
Year ended December 31, | ||||||
2019 | 2020 | 2021 | ||||
Resolution | Percentage of total wafer revenue (1) | Percentage of total wafer revenue (1) | Percentage of total wafer revenue (1) | |||
5-nanometer | — | 8% | 19% | |||
7-nanometer | 27% | 33% | 31% | |||
10-nanometer | 3% | — | — | |||
16-nanometer | 20% | 17% | 14% | |||
20-nanometer | 1% | 1% | — | |||
28-nanometer | 16% | 13% | 11% | |||
40/45-nanometer | 10% | 9% | 7% | |||
65-nanometer | 8% | 5% | 5% | |||
90-nanometer | 3% | 2% | 2% | |||
0.11/0.13 micron | 2% | 3% | 3% | |||
0.15/0.18 micron | 8% | 7% | 6% | |||
≥0.25 micron | 2% | 2% | 2% | |||
Total | 100% | 100% | 100% |
(1) | The figure represents wafer revenue from a certain technology as a percentage of the total wafer revenue. |
2020.
2019.
2021.
Prior to 2018, we recognized revenue from the sale of goods when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:
We have transferred to the buyer the significant risks and rewards of ownership of the goods;
We retain neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
The amount of revenue can be measured reliably;
It is probable that the economic benefits associated with the transaction will flow to us; and
The costs incurred or to be incurred in respect of the transaction can be measured reliably.
For the year ended December 31, | |||||||||||||||
2017 | 2018 | 2019 | |||||||||||||
Net revenue | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||
Cost of revenue | (49.4 | )% | (51.7 | )% | (54.0 | )% | |||||||||
Gross profit | 50.6 | % | 48.3 | % | 46.0 | % |
For the year ended December 31, | |||||||||||||||
2017 | 2018 | 2019 | |||||||||||||
Operating expenses | |||||||||||||||
Research and development | (8.2 | )% | (8.3 | )% | (8.6 | )% | |||||||||
General and administrative | (2.2 | )% | (2.0 | )% | (2.0 | )% | |||||||||
Marketing | (0.6 | )% | (0.6 | )% | (0.6 | )% | |||||||||
Total operating expenses | (11.0 | )% | (10.9 | )% | (11.2 | )% | |||||||||
Other operating income and expenses, net | (0.2 | )% | (0.2 | )% | 0.0 | % | |||||||||
Income from operations | 39.4 | % | 37.2 | % | 34.8 | % | |||||||||
Income before income tax | 40.5 | % | 38.5 | % | 36.4 | % | |||||||||
Income tax expense | (5.2 | )% | (3.3 | )% | (3.3 | )% | |||||||||
Net income | 35.3 | % | 35.2 | % | 33.1 | % | |||||||||
Other comprehensive income (loss) for the year, net of income tax | (2.9 | )% | 1.0 | % | (1.1 | )% | |||||||||
Total comprehensive income for the year | 32.4 | % | 36.2 | % | 32.0 | % | |||||||||
Net income attributable to shareholders of the parent | 35.3 | % | 35.2 | % | 33.1 | % | |||||||||
Net income attributable tonon-controlling interests | 0.0 | % | 0.0 | % | 0.0 | % |
For the year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Net revenue | 100.0% | 100.0% | 100.0% | |||||||||
Cost of revenue | (54.0)% | (46.9)% | (48.4)% | |||||||||
Gross profit | 46.0% | 53.1% | 51.6% | |||||||||
Operating expenses | ||||||||||||
Research and development | (8.6)% | (8.2)% | (7.9)% | |||||||||
General and administrative | (2.0)% | (2.1)% | (2.3)% |
For the year ended December 31, | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
Marketing | (0.6 | )% | (0.5 | )% | (0.5 | )% | ||||||
Total operating expenses | (11.2 | )% | (10.8 | )% | (10.7 | )% | ||||||
Other operating income and expenses, net | 0.0 | % | 0.0 | % | 0.0 | % | ||||||
Income from operations | 34.8 | % | 42.3 | % | 40.9 | % | ||||||
Income before income tax | 36.4 | % | 43.7 | % | 41.8 | % | ||||||
Income tax expense | (3.3 | )% | (5.5 | )% | (4.5 | )% | ||||||
Net income | 33.1 | % | 38.2 | % | 37.3 | % | ||||||
Other comprehensive loss for the year, net of income tax | (1.1 | )% | (2.3 | )% | (0.4 | )% | ||||||
Total comprehensive income for the year | 32.0 | % | 35.9 | % | 36.9 | % | ||||||
Net income attributable to shareholders of the parent | 33.1 | % | 38.1 | % | 37.3 | % | ||||||
Net income attributable to non-controlling interests | 0.0 | % | 0.1 | % | 0.0 | % |
For the year ended December 31, | ||||||||||||||||||||||||
2017 | 2018 | % Change in NT$ from 2017 | 2019 | % Change in NT$ from 2018 | ||||||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||
Net revenue | 977,447 | 1,031,474 | 5.5 | % | 1,069,985 | 35,774 | 3.7 | % | ||||||||||||||||
Cost of revenue | (482,616 | ) | (533,488 | ) | 10.5 | % | (577,286 | ) | (19,301 | ) | 8.2 | % | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Gross profit before realized (unrealized) gross profit on sales to associates | 494,831 | 497,986 | 0.6 | % | 492,699 | 16,473 | (1.1 | )% | ||||||||||||||||
Realized (unrealized) gross profit on sales to associates | (5 | ) | (112 | ) | 2,140.0 | % | 3 | — | — | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Gross profit | 494,826 | 497,874 | 0.6 | % | 492,702 | 16,473 | (1.0 | )% | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Gross margin percentage | 50.6% | 48.3% | — | 46.0% | 46.0% | — |
For the year ended December 31, | ||||||||||||||||||||||||
2019 | 2020 | % Change in NT$ from 2019 | 2021 | % Change in NT$ from 2020 | ||||||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||||||||
(in millions, except for percentages and wafer shipment) | ||||||||||||||||||||||||
Net revenue | 1,069,985 | 1,339,255 | 25.2 | % | 1,587,415 | 57,225 | 18.5 | % | ||||||||||||||||
Cost of revenue | (577,283 | ) | (628,125 | ) | 8.8 | % | (767,878 | ) | (27,681 | ) | 22.2 | % | ||||||||||||
Gross profit | 492,702 | 711,130 | 44.3 | % | 819,537 | 29,544 | 15.2 | % | ||||||||||||||||
Gross margin percentage | 46.0 | % | 53.1 | % | — | 51.6 | % | 51.6 | % | — | ||||||||||||||
Wafer (12-inch equivalent) shipment(1) | 10,068 | 12,398 | — | 14,179 | 14,179 | — |
(1) | In thousands. |
2020.
In 2019,2021, our gross margin declineddecreased to 46.0%51.6% of net revenue from 48.3%53.1% in 2018,2020, mainly attributedascribed to lower capacity utilization,an unfavorable impact from NT dollar appreciation and dilution from
cost improvement.
For the year ended December 31, | ||||||||||||||||||||||||
2017 | 2018 | % Change in NT$ from 2017 | 2019 | % Change in NT$ from 2018 | ||||||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||
Research and development | 80,733 | 85,895 | 6.4 | % | 91,419 | 3,056 | 6.4 | % | ||||||||||||||||
General and administrative | 21,197 | 20,266 | (4.4 | )% | 21,737 | 727 | 7.3 | % | ||||||||||||||||
Marketing | 5,972 | 5,988 | 0.3 | % | 6,349 | 212 | 6.0 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Total operating expenses | 107,902 | 112,149 | 3.9 | % | 119,505 | 3,995 | 6.6 | % | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Percentage of net revenue | 11.0% | 10.9% | — | 11.2% | 11.2% | — | ||||||||||||||||||
Other operating income and expenses, net | (1,365 | ) | (2,101 | ) | (53.9 | )% | (496 | ) | (17 | ) | 76.4 | % | ||||||||||||
Income from operations | 385,559 | 383,624 | (0.5 | )% | 372,701 | 12,461 | (2.8 | )% | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Operating Margin | 39.4% | 37.2% | — | 34.8% | 34.8% | — |
For the year ended December 31, | ||||||||||||||||||||||||
2019 | 2020 | % Change in NT$ from 2019 | 2021 | % Change in NT$ from 2020 | ||||||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||
Research and development | 91,419 | 109,486 | 19.8% | 124,735 | 4,497 | 13.9% | ||||||||||||||||||
General and administrative | 21,737 | 28,457 | 30.9% | 36,929 | 1,331 | 29.8% | ||||||||||||||||||
Marketing | 6,349 | 7,113 | 12.0% | 7,559 | 272 | 6.3% | ||||||||||||||||||
Total operating expenses | 119,505 | 145,056 | 21.4% | 169,223 | 6,100 | 16.7% | ||||||||||||||||||
Percentage of net revenue | 11.2% | 10.8% | — | 10.7% | 10.7% | — | ||||||||||||||||||
Other operating income and expenses, net | (496 | ) | 710 | — | (333 | ) | (13 | ) | (146.9 | )% | ||||||||||||||
Income from operations | 372,701 | 566,784 | 52.1% | 649,981 | 23,431 | 14.7% | ||||||||||||||||||
Operating Margin | 34.8% | 42.3% | — | 40.9% | 40.9% | — |
2020.
2022.
preparation.
Net loss from
Non-Operating Income and Expenses
For the year ended December 31, | ||||||||||||||||||||||||
2017 | 2018 | % Change in NT$ from 2017 | 2019 | % Change in NT$ from 2018 | ||||||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||
Share of profits of associates | 3,015 | 3,091 | 2.5 | % | 2,861 | 96 | (7.4 | )% | ||||||||||||||||
Other income | 9,610 | 14,853 | 54.6 | % | 16,607 | 555 | 11.8 | % | ||||||||||||||||
Foreign exchange gain (loss), net | (1,509 | ) | 2,438 | — | 2,095 | 70 | (14.1 | )% | ||||||||||||||||
Finance costs | (3,330 | ) | (3,052 | ) | (8.3 | )% | (3,251 | ) | (109 | ) | 6.5 | % | ||||||||||||
Other gains and losses, net | 2,817 | (3,411 | ) | (221.1 | )% | (1,151 | ) | (38 | ) | 66.3 | % | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Netnon-operating income | 10,603 | 13,919 | 31.3 | % | 17,161 | 574 | 23.3 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
Netnon-operating income in 2019 increased by NT$3,242 million, or 23.3%, from NT$13,919 million in 2018, mainly duecompared to a gain on disposal of financial assetsproperty, plant and equipment of NT$538189 million in 2020, and higher impairment loss on property, plant and equipment of NT$264 million compared to a loss on disposal2020.
For the year ended December 31, | ||||||||||||||||||||||||
2019 | 2020 | % Change in NT$ from 2019 | 2021 | % Change in NT$ from 2020 | ||||||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||
Share of profits of associates | 2,861 | 3,562 | 24.5 | % | 5,513 | 199 | 54.8 | % | ||||||||||||||||
Interest income | 16,190 | 9,018 | (44.3 | )% | 5,708 | 206 | (36.7 | )% | ||||||||||||||||
Other income | 417 | 661 | 58.5 | % | 973 | 35 | 47.2 | % | ||||||||||||||||
Foreign exchange gain (loss), net | 2,095 | (3,303 | ) | (257.7 | )% | 13,663 | 492 | — | ||||||||||||||||
Finance costs | (3,251 | ) | (2,082 | ) | (36.0 | )% | (5,414 | ) | (195 | ) | 160.0 | % | ||||||||||||
Other gains and losses, net | (1,151 | ) | 10,106 | — | (7,388 | ) | (266 | ) | (173.1 | )% | ||||||||||||||
Net non-operating income | 17,161 | 17,962 | 4.7 | % | 13,055 | 471 | (27.3 | )% | ||||||||||||||||
2020. The decreases were partially offset by higher share of profits of associates of NT$1,951 million.
For the year ended December 31, | ||||||||||||||||||||||||
2017 | 2018 | % Change in NT$ from 2017 | 2019 | % Change in NT$ from 2018 | ||||||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||
Income tax expense | (51,123 | ) | (34,437 | ) | (32.6 | )% | (35,835 | ) | (1,199 | ) | 4.1 | % | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Net income | 345,039 | 363,106 | 5.2 | % | 354,027 | 11,836 | (2.5 | )% | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Net income attributable to shareholders of the parent | 344,998 | 363,053 | 5.2 | % | 353,948 | 11,834 | (2.5 | )% | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||
Net margin attributable to shareholders of the parent | 35.3% | 35.2% | — | 33.1% | 33.1% | — |
For the year ended December 31, | ||||||||||||||||||||||||
2019 | 2020 | % Change in NT$ from 2019 | 2021 | % Change in NT$ from 2020 | ||||||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||
Income tax expense | (35,835 | ) | (73,738 | ) | 105.8 | % | (70,155 | ) | (2,529 | ) | (4.9 | )% | ||||||||||||
Net income | 354,027 | 511,008 | 44.3 | % | 592,881 | 21,373 | 16.0 | % | ||||||||||||||||
Net income attributable to shareholders of the parent | 353,948 | 510,744 | 44.3 | % | 592,359 | 21,354 | 16.0 | % | ||||||||||||||||
Net margin attributable to shareholders of the parent | 33.1% | 38.1% | — | 37.3% | 37.3% | — |
undistributed earnings.
bonds.
2020.
In 2021, we issued NT dollar-denominated corporate bonds totaling NT$114,600 million (US$4,131 million) and US dollar-denominated corporate bonds of US$9,000 million. For further information, please refer to note 19 and note 31 to the consolidated financial statements.
For the year ended December 31, | ||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Net cash generated by operating activities | 585,318 | 573,954 | 615,139 | 20,566 | ||||||||||||
Net cash used in investing activities | (336,165 | ) | (314,269 | ) | (458,802 | ) | (15,339 | ) | ||||||||
Net cash used in financing activities | (215,697 | ) | (245,124 | ) | (269,639 | ) | (9,015 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (21,318 | ) | 9,862 | (9,114 | ) | (305 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 12,138 | 24,423 | (122,416 | ) | (4,093 | ) |
For the year ended December 31, | ||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Net cash generated by operating activities | 615,139 | 822,667 | 1,112,161 | 40,092 | ||||||||||||
Net cash used in investing activities | (458,802 | ) | (505,782 | ) | (836,366 | ) | (30,150 | ) | ||||||||
Net cash generated by (used in) financing activities | (269,639 | ) | (88,615 | ) | 136,608 | 4,925 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (9,114 | ) | (23,498 | ) | (7,584 | ) | (274 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | (122,416 | ) | 204,772 | 404,819 | 14,593 |
2020.
In 2018, net cash generated from operating activities was primarily from NT$397,543 million in income before income tax and NT$292,546 million innon-cash depreciation and amortization expenses, partially offset by income tax payment, change in working capital and others of NT$116,135 million. The increase in depreciation and amortization expenses in 2018 was mainly related to ourcontinuing investment in production capacity for advanced technologies.
establishing
Our capital expenditures for 2018 and 2019 were funded by operating cash flow. The capital expenditures for 2020 are expected to be funded mainly by our operating cash flow and partially by the issuance of corporate bonds.
proceeds from issuance of corporate bonds.
Long-term debt | ||||
(in NT$ millions) | ||||
During | ||||
During | ||||
During | ||||
During | ||||
During |
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||
(in NT$ millions) | ||||||||||||||||||||
Short-Term Loans(1) | 118,563 | 118,563 | — | — | — | |||||||||||||||
Long-Term Debt(2) | 58,320 | 32,339 | 7,778 | 18,203 | — | |||||||||||||||
Capital Leases(3) | 18,690 | 2,475 | 2,783 | 2,484 | 10,948 | |||||||||||||||
Non-Capital Leases(4) | 1,534 | 1,534 | — | — | — | |||||||||||||||
Other Obligations(5) | 1,499 | 1,499 | — | — | — | |||||||||||||||
Capital Purchase or Other Purchase Obligations(6) | 314,726 | 307,898 | 6,828 | — | — | |||||||||||||||
Total Contractual Cash Obligations | 513,332 | 464,308 | 17,389 | 20,687 | 10,948 |
Payments Due by Period | ||||||||||||||||||||
Contractual Obligations | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||
(in NT$ millions) | ||||||||||||||||||||
Short-Term Loans (1) | 114,767 | 114,767 | — | — | — | |||||||||||||||
Long-Term Debt (2) | 757,900 | 13,764 | 45,019 | 192,612 | 506,505 | |||||||||||||||
Capital Leases (3) | 24,302 | 2,372 | 3,896 | 3,385 | 14,649 | |||||||||||||||
Other Obligations (4) | 185,994 | 30,613 | 155,381 | — | — | |||||||||||||||
Capital Purchase or Other Purchase Obligations (5) | 1,280,304 | 1,185,814 | 94,490 | — | — | |||||||||||||||
Total Contractual Cash Obligations | 2,363,267 | 1,347,330 | 298,786 | 195,997 | 521,154 |
(1) | The maximum amount and average amount of short-term loans outstanding during the year ended December 31, |
(2) | Represents corporate bonds |
(3) | Capital lease obligations are described in note |
(4) |
Represents advance temporary receipts from customer. See |
(5) |
|
Represents commitments for construction or purchase of equipment, raw material and other property or services. These commitments were not recorded on our statement of financial position as of December 31, |
Effective from 2018, the R.O.C. Income Tax Law was amended, which abolished the imputation system, raised the
For the year ended December 31, 2021 | ||||||||
NT$ | US$ | |||||||
(in millions) | ||||||||
Net sales – external | 533,649 | 19,237 | ||||||
Net sales – to subsidiaries outside of the Obligor Group | 1,041,097 | 37,531 | ||||||
Total net sales | 1,574,746 | 56,768 | ||||||
Gross profit | 788,629 | 28,429 | ||||||
Income from continuing operations | 625,383 | 22,544 | ||||||
Net income | 592,359 | 21,354 | ||||||
Net income attributable to Obligor Group | 592,359 | 21,354 |
As of December 31, 2021 | ||||||||
NT$ | US$ | |||||||
(in millions) | ||||||||
Assets | ||||||||
Current assets – external | 753,642 | 27,168 | ||||||
Current assets – due from subsidiaries outside of the Obligor Group | 143,110 | 5,159 | ||||||
Total current assets | 896,752 | 32,327 | ||||||
Non-current assets—external | 2,047,339 | 73,804 | ||||||
Non-current assets – due from subsidiaries outside of the Obligor Group | 564,084 | 20,335 | ||||||
Total non-current assets | 2,611,423 | 94,139 | ||||||
Total assets | 3,508,175 | 126,466 | ||||||
Liabilities | ||||||||
Current liabilities – external | 701,370 | 25,284 | ||||||
Current liabilities – due from subsidiaries outside the Obligor Group | 28,782 | 1,038 | ||||||
Total current liabilities | 730,152 | 26,322 | ||||||
Non-current liabilities – external | 501,401 | 18,075 | ||||||
Non-current liabilities – due from subsidiaries outside of the Obligor Group | 127,362 | 4,591 | ||||||
Total non-current liabilities | 628,763 | 22,666 | ||||||
Total liabilities | 1,358,915 | 48,988 |
ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
July 24, 2020.
Name | Position with our company | Term Expires | Years with our company | |||||||
Mark Liu | Chairman | 2021 | 26 | |||||||
C.C. Wei | Vice Chairman/ Chief Executive Officer | 2021 / — | 22 | |||||||
Mei-ling Chen | Director (Representative of the National Development Fund) | 2021 | 3 | |||||||
F.C. Tseng | Director | 2021 | 33 | |||||||
Sir Peter L. Bonfield | Independent Director | 2021 | 18 | |||||||
Stan Shih | Independent Director | 2021 | 20 | |||||||
Kok-Choo Chen | Independent Director | 2021 | 9 | |||||||
Michael R. Splinter | Independent Director | 2021 | 5 | |||||||
Moshe N. Gavrielov(1) | Independent Director | 2021 | 1 | |||||||
Lora Ho | Senior Vice President, Europe & Asia Sales | — | 21 | |||||||
Wei-Jen Lo | Senior Vice President, Research & Development/ Technology Development | — | 16 | |||||||
Rick Cassidy | Senior Vice President, Corporate Strategy Office | — | 23 | |||||||
Y.P. Chin | Senior Vice President, Operations/ Product Development | — | 33 | |||||||
Y.J. Mii | Senior Vice President, Research & Development/ Technology Development | — | 26 | |||||||
J.K. Lin | Senior Vice President, Information Technology and Materials Management & Risk Management | — | 33 | |||||||
J.K. Wang | Senior Vice President, Operations/ Fab Operations | — | 33 | |||||||
Cliff Hou | Vice President, Research & Development/ Technology Development | — | 23 | |||||||
Sylvia Fang | Vice President, Legal and General Counsel/ Corporate Governance Officer | — | 25 | |||||||
Connie Ma | Vice President, Human Resources | — | 6 | |||||||
Y.L. Wang | Vice President, Operations/ Fab Operations | — | 28 | |||||||
Doug Yu | Vice President, Research & Development/ Integrated Interconnect & Packaging | — | 26 | |||||||
Alexander Kalnitsky | Vice President & TSMC Fellow, More-than-Moore Technologies | — | 11 | |||||||
Kevin Zhang | Vice President, Business Development | — | 4 | |||||||
T.S. Chang | Vice President & TSMC Fellow, Operations/ Product Development | — | 25 | |||||||
Michael Wu | Vice President, Research & Development/ Platform Development | — | 23 | |||||||
Min Cao | Vice President, Research & Development/ Pathfinding | — | 18 | |||||||
H.-S. Philip Wong(2) | Vice President, Research & Development/ Corporate Research | — | 2 | |||||||
Marvin Liao | Vice President, Operations/ Advanced Packaging Technology and Service | — | 18 | |||||||
Y.H. Liaw | Vice President, Operations/ Fab Operations | — | 32 | |||||||
Simon Jang | Vice President, Research & Development/ Advanced Tool and Module Development | — | 27 | |||||||
Wendell Huang | Vice President, Finance and Chief Financial Officer/ Spokesperson | — | 21 |
Name | Position with our company | Term Expires | Years with our company | |||||||
Mark Liu | Chairman | 2024 | 29 | |||||||
C.C. Wei | Vice Chairman/ Chief Executive Officer | 2024/ — | 24 | |||||||
Ming-Hsin Kung | Director (Representative of the National Development Fund) | 2024 | 2 | |||||||
F.C. Tseng | Director | 2024 | 35 | |||||||
Sir Peter L. Bonfield | Independent Director | 2024 | 20 | |||||||
Kok-Choo Chen | Independent Director | 2024 | 11 | |||||||
Michael R. Splinter | Independent Director | 2024 | 7 | |||||||
Moshe N. Gavrielov | Independent Director | 2024 | 3 | |||||||
Yancey Hai | Independent Director | 2024 | 2 | |||||||
L. Rafael Reif (1) | Independent Director | 2024 | 1 | |||||||
Lora Ho | Senior Vice President, Europe & Asia Sales and Human Resources | — | 23 | |||||||
Wei-Jen Lo | Senior Vice President, Research & Development | — | 18 | |||||||
Rick Cassidy | Senior Vice President, Corporate Strategy Office/ CEO & President, TSMC Arizona | — | 25 | |||||||
Y.P. Chin | Senior Vice President, Operations | — | 35 | |||||||
Y.J. Mii | Senior Vice President, Research & Development | — | 28 | |||||||
J.K. Lin | Senior Vice President, Information Technology and Materials Management & Risk Management | — | 35 | |||||||
J.K. Wang | Senior Vice President, Corporate Planning Organization | — | 35 | |||||||
Cliff Hou | Senior Vice President, Europe & Asia Sales and Research & Development/ Corporate Research | — | 25 | |||||||
Kevin Zhang | Senior Vice President, Business Development | — | 6 | |||||||
Sylvia Fang | Vice President, Legal and General Counsel/ Corporate Governance Officer | — | 27 |
Name | Position with our company | Term Expires | Years with our company | |||||||
Connie Ma | Vice President, Human Resources | — | 8 | |||||||
Y.L. Wang | Vice President, Operations/ Fab Operations I | — | 30 | |||||||
Doug Yu | Vice President, Pathfinding for System Integration & TSMC Distinguished Fellow | — | 28 | |||||||
T.S. Chang | Vice President, Operations/ Advanced Technology and Mask Engineering & TSMC Fellow | — | 27 | |||||||
Michael Wu | Vice President, Research & Development/ Platform Development | — | 26 | |||||||
Min Cao | Vice President, Research & Development/ Pathfinding | — | 20 | |||||||
Marvin Liao | Vice President, Operations/ Advanced Packaging Technology and Service | — | 20 | |||||||
Y.H. Liaw | Vice President, Operations/ Fab Operations II | — | 34 | |||||||
Simon Jang | Vice President, Research & Development/ Advanced Tool and Module Development | — | 29 | |||||||
Wendell Huang | Vice President, Finance and Chief Financial Officer/ Spokesperson | — | 23 | |||||||
C.S. Yoo | Vice President, Research and Development/ More than Moore Technologies | — | 34 | |||||||
Jun He | Vice President, Quality and Reliability | — | 5 | |||||||
Geoffrey Yeap | Vice President, Research & Development/ Platform Development | — | 6 | |||||||
Chris Horng-Dar Lin | Vice President, Corporate Information Technology and Chief Information Officer | — | 1 | |||||||
Jonathan Lee (2) | Vice President, Corporate Planning Organization | — | 15 | |||||||
Arthur Chuang (3) | Vice President, Operations/ Facility | — | 33 | |||||||
L.C. Lu (3) | Vice President, Research & Development/ Design & Technology Platform & TSMC Fellow | — | 22 | |||||||
K.C. Hsu (4) | Vice President, Research & Development/ Integrated Interconnect & Packaging | — | 1 |
(1) | Dr. L. Rafael Reif joined our Board of Directors on July 26, 2021. |
(2) | Mr. |
Dr. Arthur Chuang and Dr. L.C. Lu were promoted to Vice President on |
(4) | Mr. K.C. Hsu was hired on November 1, |
Mei-ling Chen,
Stan Shih
Kok-Choo Chenis an independent director.
and, Director of Pica8, Inc., (aand(aHe is also a(aandin the United States. He also serves as Chairman of the Board ofWisconsin Madison.
Wisconsin-Madison.
Operations.Operations from November 2018 to April 2020. He was promoted to Senior Vice President of Operations in November 2018. Prior to that, heHe was Vice President of Operations/ 300mm Fabs from August 2010 to August 2018 and Operations/ Fab Operations from August to November 2018. He joined us in 1987 and held various positions in manufacturing and research and development functions. He holds a master degree in chemical engineering from National Cheng-Kung University.
Alexander Kalnitsky is our Vice President & TSMC Fellow of More-than-Moore Technologies. Prior to that, he was Vice President of Research & Development from 2016 to 2018 since his promotion to the position in November 2016. He joined us in 2009 and was in charge of HV/Power/Analog/RF/CIS/MEMS processes development. He holds a Ph.D. in electrical engineering from Carleton University.
Kevin Zhang
T.S. Chang is ourwas Vice President & TSMC Fellow of Operations/ Product Development. He was promotedDevelopment from November 2018 to April 2020 and Vice President & TSMC Fellow of Operations/ Fab 12B in& TSMC Fellow from February 2018 and held the position untilto November 2018 after his transferpromotion to Product Development in November 2018.this position. Prior to that, he was our Senior Director of Fab 12B.12B & TSMC Fellow. He joined us in 1995 and held various positions in manufacturing functions. He holds a Ph.D. in Electrical Engineeringelectrical engineering from National Tsing Hua University.
H.-S. Philip Wong is our Vice President of Research & Development/ Corporate Research. Prior to joining us in 2018 as Vice President, he had served as Willard R. and Inez Kerr Bell Professor in the School of Engineering, Stanford University and Senior Manager at IBM Research. He holds a Ph.D. in Electrical Engineering from Lehigh University.
Materials Sciencematerials science from University of Texas-Arlington.
Name of Shareholders(1) | Number of Common Shares Owned(2) | Percentage of Outstanding Common Shares(2) | ||||||
Mark Liu, Chairman | 12,913,114 | 0.05% | ||||||
C.C. Wei, Vice Chairman and Chief Executive Officer | 7,179,207 | 0.03% | ||||||
Mei-Ling Chen, Director (Representative of the National Development Fund)(3) | 1,653,709,980 | 6.38% | ||||||
F.C. Tseng, Director | 34,472,675 | 0.13% | ||||||
Stan Shih, Independent Director | 1,480,286 | 0.01% | ||||||
Sir Peter L. Bonfield, Independent Director | — | — | ||||||
Kok-Choo Chen, Independent Director | — | — | ||||||
Michael R. Splinter, Independent Director | — | — | ||||||
Moshe N. Gavrielov, Independent Director | — | — | ||||||
Lora Ho, Senior Vice President | 4,531,080 | 0.02% | ||||||
Wei-Jen Lo, Senior Vice President | 1,441,127 | 0.01% | ||||||
Rick Cassidy, Senior Vice President | — | — | ||||||
Y.P. Chin, Senior Vice President | 6,920,122 | 0.03% | ||||||
Y.J. Mii, Senior Vice President | 1,000,419 | 0.00% | ||||||
J.K. Lin, Senior Vice President | 12,518,018 | 0.05% | ||||||
J.K. Wang, Senior Vice President | 2,553,947 | 0.01% | ||||||
Cliff Hou, Vice President | 366,351 | 0.00% | ||||||
Sylvia Fang, Vice President & General Counsel/ Corporate Governance Officer | 700,285 | 0.00% | ||||||
Connie Ma, Vice President | 139,000 | 0.00% | ||||||
Y.L. Wang, Vice President | 218,535 | 0.00% | ||||||
Doug Yu, Vice President | 225,000 | 0.00% | ||||||
Alexander Kalnitsky, Vice President & TSMC Fellow | — | — | ||||||
Kevin Zhang, Vice President | — | — | ||||||
T.S. Chang, Vice President & TSMC Fellow | 173,781 | 0.00% | ||||||
Michael Wu, Vice President | 478,501 | 0.00% |
Name of Shareholders(1) | Number of Common Shares Owned(2) | Percentage of Outstanding Common Shares(2) | ||||||
Min Cao, Vice President | 363,152 | 0.00% | ||||||
H.-S. Philip Wong, Vice President(4) | — | — | ||||||
Marvin Liao, Vice President | 50,485 | 0.00% | ||||||
Y.H. Liaw, Vice President | 370,000 | 0.00% | ||||||
Simon Jang, Vice President | 350,695 | 0.00% | ||||||
Wendell Huang, Vice President & Chief Financial Officer/ Spokesperson | 1,651,418 | 0.01% |
Name of Shareholders (1) | Number of Common Shares Owned (2) | Percentage of Outstanding Common Shares (2) | ||||||
Mark Liu, Chairman | 12,913,114 | 0.05 | % | |||||
C.C. Wei, Vice Chairman and Chief Executive Officer | 5,879,207 | 0.02 | % | |||||
Ming-Hsin Kung, Director (Representative of the National Development Fund) (3) | 1,653,709,980 | 6.38 | % | |||||
F.C. Tseng, Director | 29,472,675 | 0.11 | % | |||||
Sir Peter L. Bonfield, Independent Director | — | — | ||||||
Kok-Choo | — | — | ||||||
Michael R. Splinter, Independent Director | — | — | ||||||
Moshe N. Gavrielov, Independent Director | — | — | ||||||
Yancey Hai, Independent Director | — | — | ||||||
L. Rafael Reif, Independent Director | — | — | ||||||
Lora Ho, Senior Vice President | 4,570,080 | 0.02 | % | |||||
Wei-Jen | 1,441,127 | 0.01 | % | |||||
Rick Cassidy, Senior Vice President/ CEO & President of TSMC Arizona | — | — | ||||||
Y.P. Chin, Senior Vice President | 6,920,122 | 0.03 | % | |||||
Y.J. Mii, Senior Vice President | 1,000,419 | 0.00 | % | |||||
J.K. Lin, Senior Vice President | 12,648,251 | 0.05 | % | |||||
J.K. Wang, Senior Vice President | 2,603,947 | 0.01 | % | |||||
Cliff Hou, Senior Vice President | 384,676 | 0.00 | % | |||||
Kevin Zhang, Senior Vice President | 70,000 | 0.00 | % | |||||
Sylvia Fang, Vice President & General Counsel/ Corporate Governance Officer | 700,285 | 0.00 | % | |||||
Connie Ma, Vice President | 236,000 | 0.00 | % | |||||
Y.L. Wang, Vice President | 218,535 | 0.00 | % | |||||
Doug Yu, Vice President & TSMC Distinguished Fellow | 250,000 | 0.00 | % | |||||
T.S. Chang, Vice President & TSMC Fellow | 173,781 | 0.00 | % | |||||
Michael Wu, Vice President | 483,501 | 0.00 | % | |||||
Min Cao, Vice President | 363,152 | 0.00 | % | |||||
Marvin Liao, Vice President | 90,485 | 0.00 | % | |||||
Y.H. Liaw, Vice President | 370,000 | 0.00 | % | |||||
Simon Jang, Vice President | 350,695 | 0.00 | % | |||||
Wendell Huang, Vice President & Chief Financial Officer/ Spokesperson | 1,651,756 | 0.01 | % | |||||
C.S. Yoo, Vice President | 1,703,690 | 0.01 | % | |||||
Jun He, Vice President | 9,000 | 0.00 | % | |||||
Geoffrey Yeap, Vice President | 22,000 | 0.00 | % | |||||
Chris Horng-Dar | 16,000 | 0.00 | % | |||||
Jonathan Lee, Vice President | 334,458 | 0.00 | % | |||||
Arthur Chuang,Vice President | 2,602,981 | 0.01 | % | |||||
L.C. Lu, Vice President & TSMC Fellow | 130,227 | 0.00 | % | |||||
K.C. Hsu, Vice President | 16,000 | 0.00 | % |
(1) | None of our directors and executive officers owned any stock option as of February |
(2) |
The disclosed number of shares owned by the directors and executive officers did not include any common shares held in the form of ADS by such individuals as such individual ownership of ADSs had not been disclosed or otherwise made public. The disclosed number of |
(3) | Represented shares held by the National Development Fund, Executive Yuan. |
| ||||||||||||||||
Name | Common Shares Underlying Outstanding RSAs (1) | Exercise Price | Grant Date | Expiration Date | ||||||||||||
C.C. Wei, Vice Chairman and Chief Executive Officer | ||||||||||||||||
Lora Ho, Senior Vice President | ||||||||||||||||
Wei-Jen Lo, Senior Vice President | ||||||||||||||||
Y.P. Chin, Senior Vice President | ||||||||||||||||
Y.J. Mii, Senior Vice President | ||||||||||||||||
J.K. Lin, Senior Vice President | ||||||||||||||||
J.K. Wang, Senior Vice President | ||||||||||||||||
Cliff Hou, Senior Vice President | ||||||||||||||||
Kevin Zhang, Senior Vice President | ||||||||||||||||
Sylvia Fang, Vice President & General Counsel/ Corporate Governance Officer | ||||||||||||||||
Connie Ma, Vice President | ||||||||||||||||
Y.L. Wang, Vice President | ||||||||||||||||
Doug Yu, Vice President & TSMC Distinguished Fellow | ||||||||||||||||
T.S. Chang, Vice President & TSMC Fellow | ||||||||||||||||
Michael Wu, Vice President | 1,387,000 | — | March 1, | — | ||||||||||||
Min Cao, Vice President | ||||||||||||||||
Marvin Liao, Vice President | ||||||||||||||||
Y.H. Liaw, Vice President | ||||||||||||||||
Simon Jang, Vice President | ||||||||||||||||
Wendell Huang, Vice President & Chief Financial Officer/ Spokesperson | ||||||||||||||||
C.S. Yoo, Vice President | ||||||||||||||||
Jun He, Vice President | ||||||||||||||||
Geoffrey Yeap, Vice President | ||||||||||||||||
Chris Horng-Dar Lin, Vice President & Chief Information Officer | ||||||||||||||||
Jonathan Lee, Vice President | ||||||||||||||||
Arthur Chuang, Vice President | ||||||||||||||||
L.C. Lu, Vice President & TSMC Fellow | ||||||||||||||||
K.C. Hsu, Vice President | ||||||||||||||||
Y.C. Huang (2) |
(1) | The RSAs granted under the Employee Restricted Stock Awards Rules for Year 2021 held by each of these directors and executives represent less than one percent of our total outstanding common shares. |
(2) | Dr. Y.C. Huang is an eligible executive in accordance with the Employee Restricted Stock Awards Rules for Year 2021 but is not an executive officer. |
Committee and the Board of Directors. Grants under the 2021 Rules are made free of charge to the recipient and are subject to certain vesting conditions, as outlined in the 2021 Rules. In particular, the maximum amount of RSAs that may vest each year are as follows: 50% on the first anniversary of the grant, 25% on the second anniversary of the grant and 25% on the third anniversary of the grant.
Name/Title | Fees Earned or Paid in Cash | Stock Awards | All Other Compensation(3) | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | US$ | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Mark Liu, Chairman | 291.9 | — | 1.6 | 293.4 | 9.8 | |||||||||||||||
F.C. Tseng, Director(1) | 9.6 | — | 1.7 | 11.3 | 0.4 | |||||||||||||||
Mei-ling Chen, Director (Representative of National Development Fund, Executive Yuan) | 9.6 | — | — | 9.6 | 0.3 | |||||||||||||||
Sir Peter L. Bonfield, Independent Director | 14.8 | — | — | 14.8 | 0.5 | |||||||||||||||
Stan Shih, Independent Director | 12.0 | — | — | 12.0 | 0.4 | |||||||||||||||
Kok-Choo Chen, Independent Director | 12.0 | — | — | 12.0 | 0.4 | |||||||||||||||
Michael R. Splinter, Independent Director | 14.8 | — | — | 14.8 | 0.5 | |||||||||||||||
Moshe N. Gavrielov, Independent Director(2) | 8.5 | — | — | 8.5 | 0.3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | 373.2 | — | 3.3 | 376.4 | 12.6 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Name/Title | Fees Earned or Paid in Cash | Stock Awards | All Other Compensation (2) | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | US$ | ||||||||||||||||
(in millions) | ||||||||||||||||||||
Mark Liu, Chairman | 398.7 | — | 1.6 | 400.4 | 14.4 | |||||||||||||||
F.C. Tseng, Director (1) | 10.6 | — | 1.3 | 11.9 | 0.4 | |||||||||||||||
Ming-Hsin Kung, Director (Representative of National Development Fund, Executive Yuan) | 10.6 | — | — | 10.6 | 0.4 | |||||||||||||||
Sir Peter L. Bonfield, Independent Director | 14.8 | — | — | 14.8 | 0.5 | |||||||||||||||
Stan Shih, Independent Director | 7.5 | — | — | 7.5 | 0.3 | |||||||||||||||
Kok-Choo Chen, Independent Director | 13.2 | — | — | 13.2 | 0.5 | |||||||||||||||
Michael R. Splinter, Independent Director | 14.8 | — | — | 14.8 | 0.5 | |||||||||||||||
Moshe N. Gavrielov, Independent Director | 14.8 | — | — | 14.8 | 0.5 | |||||||||||||||
Yancey Hai, Independent Director | 13.2 | — | — | 13.2 | 0.5 | |||||||||||||||
L. Rafael Reif, Independent Director | 6.4 | — | — | 6.4 | 0.2 | |||||||||||||||
Total | 504.4 | — | 2.9 | 507.3 | 18.3 | |||||||||||||||
(1) | In addition to the above, F.C. Tseng received NT$ non-consolidated affiliates and NT$ |
(2) |
|
Included pensions funded according to applicable law and expenses for company cars, but did not include compensation paid to car drivers made available to directors. |
Name/Title | Salary | Bonus(4) | Stock Awards | All Other Compensation(5) | Total | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | US$ | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
C.C. Wei, Chief Executive Officer | 10.2 | 279.1 | — | 4.1 | 293.4 | 9.8 | ||||||||||||||||||
Wendell Huang, Vice President & Chief Financial Officer/ Spokesperson(2) | 1.3 | 14.6 | — | 1.0 | 16.9 | 0.6 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Lora Ho, Senior Vice President | ||||||||||||||||||||||||
Wei-Jen Lo, Senior Vice President | ||||||||||||||||||||||||
Rick Cassidy, Senior Vice President | ||||||||||||||||||||||||
Y.P. Chin, Senior Vice President | ||||||||||||||||||||||||
Y.J. Mii, Senior Vice President | ||||||||||||||||||||||||
J.K. Lin, Senior Vice President | ||||||||||||||||||||||||
J.K. Wang, Senior Vice President | ||||||||||||||||||||||||
N.S. Tsai, Vice President(3) | ||||||||||||||||||||||||
Irene Sun, Vice President(3) | ||||||||||||||||||||||||
Cliff Hou, Vice President | ||||||||||||||||||||||||
Sylvia Fang, Vice President & General Counsel/ Corporate Governance Officer | ||||||||||||||||||||||||
Connie Ma, Vice President | 99.4 | 1,094.3 | — | 41.6 | 1,235.4 | 41.3 | (6) | |||||||||||||||||
Y.L. Wang, Vice President | ||||||||||||||||||||||||
Doug Yu, Vice President | ||||||||||||||||||||||||
Alexander Kalnitsky, Vice President & TSMC Fellow | ||||||||||||||||||||||||
Kevin Zhang, Vice President | ||||||||||||||||||||||||
T.S. Chang, Vice President & TSMC Fellow | ||||||||||||||||||||||||
Michael Wu, Vice President | ||||||||||||||||||||||||
Min Cao, Vice President | ||||||||||||||||||||||||
H.-S. Philip Wong, Vice President(3) | ||||||||||||||||||||||||
Marvin Liao, Vice President | ||||||||||||||||||||||||
Y.H. Liaw, Vice President(2) | ||||||||||||||||||||||||
Simon Jang, Vice President(2) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 111.0 | 1,388.0 | — | 46.8 | 1,545.7 | 51.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Name/Title | Salary | Bonus (6) | Stock Awards | All Other Compensation (7) | Total | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | US$ | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
C.C. Wei, Chief Executive Officer | 13.3 | 381.9 | — | 5.1 | 400.3 | 14.4 | ||||||||||||||||||
Wendell Huang, Vice President & Chief Financial Officer/ Spokesperson | 5.2 | 54.3 | — | 1.5 | 61.1 | 2.2 | ||||||||||||||||||
Lora Ho, Senior Vice President | ||||||||||||||||||||||||
Wei-Jen Lo, Senior Vice President | ||||||||||||||||||||||||
Rick Cassidy, Senior Vice President/ CEO & President of TSMC Arizona | ||||||||||||||||||||||||
Y.P. Chin, Senior Vice President | ||||||||||||||||||||||||
Y.J. Mii, Senior Vice President | ||||||||||||||||||||||||
J.K. Lin, Senior Vice President | ||||||||||||||||||||||||
J.K. Wang, Senior Vice President | ||||||||||||||||||||||||
Cliff Hou, Senior Vice President | ||||||||||||||||||||||||
Kevin Zhang, Senior Vice President | ||||||||||||||||||||||||
Sylvia Fang, Vice President & General Counsel/ Corporate Governance Officer | ||||||||||||||||||||||||
Connie Ma, Vice President | ||||||||||||||||||||||||
Y.L. Wang, Vice President | ||||||||||||||||||||||||
Doug Yu, Vice President & TSMC Distinguished Fellow | 137.6 | 1,728.6 | — | 50.6 | 1,916.8 | 69.1 | (8) | |||||||||||||||||
T.S. Chang, Vice President & TSMC Fellow | ||||||||||||||||||||||||
Michael Wu, Vice President | ||||||||||||||||||||||||
Min Cao, Vice President | ||||||||||||||||||||||||
Marvin Liao, Vice President | ||||||||||||||||||||||||
Y.H. Liaw, Vice President | ||||||||||||||||||||||||
Simon Jang, Vice President | ||||||||||||||||||||||||
C.S. Yoo, Vice President | ||||||||||||||||||||||||
Jun He, Vice President | ||||||||||||||||||||||||
Geoffrey Yeap, Vice President (2) | ||||||||||||||||||||||||
Chris Horng-Dar Lin, Vice President and Chief Information Officer(2) | ||||||||||||||||||||||||
Jonathan Lee, Vice President (3) | ||||||||||||||||||||||||
Arthur Chuang, Vice President (4) | ||||||||||||||||||||||||
L.C. Lu, Vice President & TSMC Fellow (4) | ||||||||||||||||||||||||
K.C. Hsu, Vice President (5) | ||||||||||||||||||||||||
Total | 156.2 | 2,164.8 | — | 57.3 | 2,378.2 | 85.7 | ||||||||||||||||||
(1) | The total compensation paid to the executive officers is decided based on their job responsibility, contribution, company performance and projected future risks the Company will face. It is reviewed by the Compensation Committee then submitted to the Board of Directors for approval. |
(2) |
Dr. Geoffrey Yeap and Horng-Dar Lin were promoted to Vice President, |
(3) |
Mr. Jonathan Lee was promoted to |
(4) | Dr. Arthur Chuang and Dr. L.C. Lu were promoted to Vice President, effective August 10, 2021. These amounts did not include compensation for the period before their promotion. |
(5) | Mr. K.C. Hsu was promoted to Vice President, effective November 9, 2021. These amounts did not include compensation for the period before his promotion. |
(6) | Included cash bonus and profit sharing bonus. |
Included pensions funded according to applicable law and expenses for company cars. |
Aggregate amount for executive officers other than C.C. Wei and Wendell Huang. |
Act.
Hai and Dr. L. Rafael Reif.
As of December 31, | ||||||||||||
Function | 2017 | 2018 | 2019 | |||||||||
Managers | 5,107 | 5,294 | 5,364 | |||||||||
Professionals | 21,895 | 22,285 | 24,416 | |||||||||
Assistant Engineers/Clericals | 4,082 | 4,109 | 4,357 | |||||||||
Technicians | 17,518 | 17,064 | 17,160 | |||||||||
|
|
|
|
|
| |||||||
Total | 48,602 | 48,752 | 51,297 | |||||||||
|
|
|
|
|
|
As of December 31, | ||||||||||||
Function | 2019 | 2020 | 2021 | |||||||||
Managers | 5,364 | 5,857 | 6,635 | |||||||||
Professionals | 24,416 | 27,767 | 31,920 | |||||||||
Assistant Engineers/Clericals | 4,357 | 4,832 | 6,620 | |||||||||
Technicians | 17,160 | 18,375 | 19,977 | |||||||||
Total | 51,297 | 56,831 | 65,152 | |||||||||
As of December 31, | ||||||||||||
Location of Facility and Principal Offices | 2017 | 2018 | 2019 | |||||||||
Hsinchu Science Park, Taiwan | 24,488 | 23,998 | 24,442 | |||||||||
Southern Taiwan Science Park, Taiwan | 10,276 | 11,157 | 12,771 | |||||||||
Central Taiwan Science Park, Taiwan | 6,825 | 6,868 | 7,333 | |||||||||
Taoyuan County, Taiwan | 1,804 | 1,482 | 1,475 | |||||||||
China | 3,598 | 3,634 | 3,679 | |||||||||
North America | 1,522 | 1,522 | 1,513 | |||||||||
Europe | 54 | 55 | 50 | |||||||||
Japan | 32 | 33 | 32 | |||||||||
Korea | 3 | 3 | 2 | |||||||||
|
|
|
|
|
| |||||||
Total | 48,602 | 48,752 | 51,297 | |||||||||
|
|
|
|
|
|
As of December 31, | ||||||||||||
Location of Facility and Principal Offices | 2019 | 2020 | 2021 | |||||||||
Hsinchu Science Park, Taiwan | 24,442 | 25,776 | 27,382 | |||||||||
Southern Taiwan Science Park, Taiwan | 12,771 | 16,114 | 20,428 | |||||||||
Central Taiwan Science Park, Taiwan | 7,333 | 7,668 | 8,486 | |||||||||
Taoyuan County, Taiwan | 1,475 | 1,661 | 1,701 | |||||||||
Miaoli County, Taiwan | — | — | 628 | |||||||||
China | 3,679 | 3,859 | 4,131 | |||||||||
North America | 1,513 | 1,620 | 2,188 | |||||||||
Europe | 50 | 52 | 54 | |||||||||
Japan | 32 | 78 | 152 | |||||||||
Korea | 2 | 3 | 2 | |||||||||
Total | 51,297 | 56,831 | 65,152 | |||||||||
2022.
ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
Names of Shareholders | Number of Common Shares Owned | Percentage of Total Outstanding Common Shares | ||||||
National Development Fund, Executive Yuan | 1,653,709,980 | 6.38 | % | |||||
Capital World Investors(1) | 1,336,913,550 | 5.16 | % | |||||
BlackRock, Inc.(2) | 1,335,216,856 | 5.15 | % | |||||
Directors and executive officers as a group(3) | 90,097,198 | 0.35 | % |
Names of Shareholders | Number of Common Shares Owned | Percentage of Total Outstanding Common Shares (1) | ||||||
National Development Fund, Executive Yuan | 1,653,709,980 | 6.38 | % | |||||
BlackRock, Inc. (2) | 1,317,566,696 | 5.08 | % | |||||
Directors and executive officers as a group (3) | 87,626,164 | 0.34 | % |
(1) |
As of February 28, 2022, we held 1,387,000 of our common shares in treasury as a result of repurchases made pursuant to the |
(2) | According to the Schedule 13G of BlackRock, Inc. filed with the |
(3) | Excluded ownership of the National Development Fund, Executive Yuan. |
On April 1, 2004, we entered into an
ITEM 8. | FINANCIAL INFORMATION |
As is the case with many companies in the semiconductor industry, we have received from time to time communications from third parties asserting that our technologies, our manufacturing processes, or the design of the semiconductors made by us or the use of those semiconductors by our customers may infringe upon their patents or other intellectual property rights. These assertions have at times resulted in litigation by or against us and settlement payments by us. Irrespective of the validity of these claims, we could incur significant costs in the defense thereof or could suffer adverse effects on our operations.
On September 28, 2017, we were contacted by the European Commission, which has asked us for information and documents concerning alleged anti-competitive practices in relation to semiconductor sales. We are cooperating with the European Commission to provide the requested information and documents. In light of the fact that this proceeding is still in its preliminary stage, it is premature to predict how the case will proceed, the outcome of the proceeding or its impact.
In February 2019, Innovative Foundry Technologies LLC (“IFT”) filed a complaint in the U.S. District Court for the District of Delaware alleging that TSMC and TSMC Technology Inc. infringe five U.S. patents. IFT also filed a complaint in the U.S. International Trade Commission (the “ITC”) alleging that TSMC, TSMC North America, TSMC Technology Inc., and other companies infringe the same patents. The ITC instituted an investigation in March 2019. Both parties agreed to end the dispute and the ITC terminated the investigation in October 2019. The pending litigation in the U.S. District Court for the District of Delaware was dismissed at the same time.
Other than the matters described above, we were not a party to any other material litigation as of December 31, 20192021, and are not currently a party to any other material litigation.
On February 19, 2019, our board
Period | Approved Date | Payment Date | Cash Dividends Per Share (NT$) | Total Amount (NT$) | ||||||||
2018 | June 5, 2019 | July 18, 2019 | 8.00 | 207,443,043,664 | ||||||||
First quarter of 2019 | June 5, 2019 | October 17, 2019 | 2.00 | 51,860,760,916 | ||||||||
Second quarter of 2019 | August 13, 2019 | January 16, 2020 | 2.50 | 64,825,951,145 | ||||||||
Third quarter of 2019 | November 12, 2019 | April 16, 2020 | 2.50 | 64,825,951,145 | ||||||||
Fourth quarter of 2019 | February 11, 2020 | July 16, 2020 | 2.50 | 64,825,951,145 |
Period | Approved Date | Payment Date | Cash Dividends Per Share (NT$) | Total Amount (NT$) | ||||
First quarter of 2021 | June 9, 2021 | October 14, 2021 | 2.75 | 71,308,546,260 | ||||
Second quarter of 2021 | August 10, 2021 | January 13, 2022 | 2.75 | 71,308,546,260 | ||||
Third quarter of 2021 | November 9, 2021 | April 14, 2022 | 2.75 | 71,308,546,260 | ||||
Fourth quarter of 2021 | February 15, 2022 | July 14, 2022 | 2.75 | 71,308,546,260 |
ITEM 9. | THE OFFER AND LISTING |
ITEM 10. | ADDITIONAL INFORMATION |
28, 2022. On March 1, 2022, we granted a total of 1,387,000 common shares in the form of RSAs to our executives pursuant to our 2021 Rules. Please see “Item 6. Directors, Senior Management and Employees – Share Ownership” for a further discussion.
In addition to the general restriction against direct investment by
persons
Information with Respect to Foreign Financial Assets
Individuals that own “specified foreign financial assets” with an aggregate value in excess of US$50,000 will generally be required to file an information report with respect to such assets with their tax returns. “Specified foreign financial assets” may include any financial accounts maintained by foreign financial institutions, as well as any of the following, but only if they are not held in accounts maintained by financial institutions: (i) stocks and securities issued bynon-U.S. persons, (ii) financial instruments and contracts held for investment that havenon-U.S. issuers or counterparties and (iii) interests in foreign entities. U.S. holders that are individuals should consult their tax advisors regarding the application of these rules to their ownership of common shares or ADSs.
ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS |
dollars.
expected.
income.
ITEM 12D. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
Service | Fees | |
Issuance of ADS | Up to US$0.05 (or fractions thereof) per ADS issued | |
Cancellation of ADS | Up to US$0.05 (or fractions thereof) per ADS cancelled | |
Distribution of cash proceeds (i.e., upon sale of rights and other entitlements) | Up to US$0.02 (or fractions thereof) per ADS held | |
Distribution of ADS rights or other free distributions of Stock (excluding stock dividends) | Up to US$0.05 (or fractions thereof) per ADS issued |
ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
ITEM 15. | CONTROLS AND PROCEDURES |
2021.Securities Exchange Act, of 1934, an evaluation was carried out under the supervision and with the participation of our principal executive and principal financial officers of the effectiveness of our disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officers and Chief Financial Officer concluded that these disclosure controls and procedures were effective as of December 31, 2019.2019,2021, management conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this assessment, management has determined that our internal control over financial reporting as of December 31, 20192021, was effective.2019,2021, there was no material change to our internal control over financial reporting.2019,2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019,2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.
/s/ Deloitte & Touche |
Taipei, Taiwan |
Republic of China |
April |
ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. | CODE OF ETHICS |
ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
2018 | 2019 | |||||||
NT$ | NT$ | |||||||
(In thousands) | ||||||||
Audit Fees | 55,323 | 63,920 | ||||||
All Other Fees | — | 83 | ||||||
|
|
|
| |||||
Total | 55,323 | 64,003 | ||||||
|
|
|
|
2021.
For the year ended December 31, | ||||||||
2020 | 2021 | |||||||
NT$ | NT$ | |||||||
(In thousands) | ||||||||
Audit Fees | 60,253 | 63,871 | ||||||
Audit Related Fees | 9,982 | 23,197 | ||||||
All Other Fees | 81 | 75 | ||||||
Total | 70,316 | 87,143 | ||||||
audit or review of our financial statements and are not reported above under “Audit Fees.” The services for the fees disclosed under this category were related to corporate bonds offering and such fees were borne by the underwriter.
ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES |
ITEM 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS |
Not applicable.
Period | Total number of common shares purchased | Average price paid per common share | Total number of common shares purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of common shares that may yet be purchased under the plans or programs | ||||||||||||
(number of common shares) | (NT$) | (number of shares) | (number of common shares) | |||||||||||||
February, 2022 (From February 16, 2022 to February 25, 2022) | 1,387,000 | 628 | 1,387,000 | — | ||||||||||||
Total | 1,387,000 | 628 | 1,387,000 | — |
ITEM 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. | CORPORATE GOVERNANCE |
NYSE Standards for US Companies under Listed Company Manual Section 303A | TSMC Corporate Practices | |
NYSE Section 303A.01 | Taiwan law does not require a board of directors of publicly traded companies to consist of a majority of independent directors. Taiwan law requires public companies meeting certain criteria to have at least two independent directors but no less than one fifth of the total number of directors on its board of directors. In addition, Taiwan law requires public companies to disclose information pertaining to their directors, including their independence status. Please see TSMC’s annual report and Form 20-F for the relevant year filed with the Taiwan authorities and the U.S. SEC (both of which are available online atwww.tsmc.com ) for information on the total number of TSMC directors and directors who would be considered independent under NYSE Section 303A.02 and Taiwan law. | |
NYSE Section 303A.02 | Taiwan law establishes comparable standards to evaluate director independence. For further information, please consult TSMC’s Taiwan annual report for the relevant year. |
NYSE Section 303A.03 non-management directors to meet at regularly scheduled executive meetings that are not attended by management. | Taiwan law does not contain such a requirement. Except for meetings of sub-committees of the board of directors and those held by managing directors, Taiwan law does not allow separate board meetings of part but not all of the board of directors. | |
NYSE Section 303A.04 | Taiwan law does not contain such a requirement. However, TSMC’s directors must be nominated either by the shareholders or by the entire board of directors. | |
NYSE Section 303A.05(a) | Taiwan law requires certain public companies, such as us, to establish a compensation committee by September 30, 2011. TSMC, however, has established its compensation committee since 2003, which has met the requirements under the Taiwan law. Taiwan law permits a non-director independent member, appointed by the board of directors, to serve as a member on the compensation committee, so long as such member meets the independent and other requirements under the relevant Taiwan law. Also, as required by the TWSE, the compensation committee of the companies listed on the TWSE must consist of a majority of independent directors, and all the members of the compensation committee shall elect an independent director to act as the convener and the chairperson of the meeting. Please see TSMC’s annual report and Form20-F for the relevant year filed with the Taiwan authorities and the U.S. SEC (both of which are available online atwww.tsmc.com ) for further information regarding the composition and functions of its compensation committee. |
NYSE Section 303A.05(b) | Taiwan law requires certain public companies, such as us, to establish a compensation committee by September 30, 2011. TSMC, however, has established its compensation committee since 2003, which has met the requirements under the Taiwan law, and TSMC’s compensation committee charter contains the same responsibilities as those provided under NYSE Section 303A.05(b)(i) and mandates the committee to review the adequacy of its charter annually. | |
NYSE Section 303A.06 10A-3 under the 10A-3 under the Exchange Act by July 31, 2005. | TSMC voluntarily established its audit committee before the promulgation of related Taiwan law. Our audit committee fully complies with both local law requirements and corporate governance standards. Please see TSMC’s annual report and Form 20-F for the relevant year filed with the Taiwan authorities and the U.S. SEC (both of which are available online atwww.tsmc.com ) for further information regarding the composition of its audit committee. TSMC’s audit committee members are all financially literate and are assisted by a financial expert consultant. | |
NYSE Section 303A.07(a) | Taiwan law requires all independent directors of a public company to be members of the audit committee if the company has established such a committee of which at least one shall have accounting or financial expertise. Please see TSMC’s annual report and Form 20-F for the relevant year filed with the Taiwan authorities and the U.S. SEC (both of which are available online atwww.tsmc.com ) for further information regarding the composition of its audit committee. TSMC’s audit committee members are all financially literate and are assisted by a financial expert consultant. |
NYSE Section 303A.07(a) 10-K filed with the U.S. SEC. | Taiwan law does not contain such requirement. Taiwan law requires all independent directors of a public company to be members of the audit committee if the company has established such a committee. Taiwan law forbids an independent director from serving as an independent director on a total of more than four Taiwan public companies. | |
NYSE Section 303A.07(a) | Taiwan law requires all independent directors of a public company to be members of the audit committee if the company has established such a committee. | |
NYSE Section 303A.07(b) 10A-3(b)(2), (3), (4) & (5) of the Exchange Act. | Taiwan law requires comparable standards. TSMC currently has a written audit committee charter containing the same duties and responsibilities as those provided under Section 10A-3(b)(1) of the Exchange Act. | |
NYSE Section 303A.07(b)(iii)(B) and (C) | TSMC’s written audit committee charter establishes the same audit committee objectives. | |
NYSE Section 303A.07(b)(iii)(G) | Taiwan law does not contain such requirement. |
NYSE Section 303A.07(c) | Taiwan law requires public companies to establish an internal audit function. Internal auditors are subject to strict qualification standards under Taiwan law, which require the board of directors to approve the appointment of the head of a company’s internal audit function. TSMC’s internal audit function has substantially the same responsibilities as provided under NYSE Section 303A.07(d). | |
NYSE Section 303A.08 | Taiwan law imposes a similar requirement. two-thirds of all issued and outstanding shares of common stock at which the holders of at least a majority of the common stock represented at the meeting vote in favor thereof. However, in the case of a publicly held company such as TSMC, such a resolution by the shareholders’ meeting may be adopted by the holders of at leasttwo-thirds of the shares of common stock represented at a shareholders’ meeting at which holders of at least a majority of the issued and outstanding shares of common stock are present. TSMC currently has one equity-based compensation plan in effect, which was approved by the Board of Directors on April 22, 2021, and by the shareholders on July 26, 2021. |
NYSE Section 303A.09 | Taiwan law does not contain such requirement. Under Taiwan law, if a listed company has voluntarily adopted corporate governance guidelines, it must set up a dedicated section on its website to disclose the relevant information and inform investors how to access such guidelines. | |
NYSE Section 303A.09 | Starting from 2020, companies listed on the TWSE are required by TWSE’s new rule to conduct self-assessment or peer assessment on the performance of the board of directors and each director every year and to submit the assessment results to TWSE by the end of the first quarter of the next year. TSMC has been conducting annual self-assessment on its Audit Committee’s performance since 2011 and | |
NYSE Section 303A.10 | Taiwan law does not contain such requirement. But, because of sound corporate governance principles, TSMC has adopted an “Ethics and Business Conduct Policy”, which complies with the Sarbanes-Oxley Act’s requirements concerning financial officers and CEO accountability. | |
NYSE Section 303A.12(a) | Taiwan law does not contain such a requirement. But, in order to comply with relevant U.S. SEC regulations, TSMC’s CEO is required to certify in TSMC’s 20-F annual report that, to his or her knowledge the information contained therein fairly represents in all material respects the financial condition and results of operation of TSMC. | |
NYSE Section 303A.12(b) non-fulfillment of any applicable provision under NYSE Section 303A. | Taiwan law does not contain such requirement. But, in order to be consistent with the corporate governance principles established under the Sarbanes-Oxley Act of 2002, TSMC’s CEO complies with the notice provision as set forth under NYSE Section 303A.12(b). | |
NYSE Section 303A.12(c) | Taiwan law does not contain such requirement. But, in order to comply with the corporate governance principles established under the Sarbanes-Oxley Act of 2002, TSMC complies with NYSE Section 303A.12(c). |
ITEM 16H. | MINE SAFETY DISCLOSURE |
ITEM 16I. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
ITEM 17. | FINANCIAL STATEMENTS |
ITEM 18. | FINANCIAL STATEMENTS |
ITEM 19. | EXHIBITS |
(1) | Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2019, filed by TSMC on April 15, 2020. |
(2) | Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2012, filed by TSMC on April 2, 2013. |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2001, filed by TSMC on May 9, 2002. |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2018, filed by TSMC on April 17, 2019. |
(6) | Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2013, filed by TSMC on April 14, 2014. |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2015, filed by TSMC on April 11, 2016. |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2016, filed by TSMC on April 13, 2017. |
(9) | Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 1998, filed by TSMC on April 30, 1999. |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, |
Previously filed in TSMC’s annual report on Form 20-F for the fiscal year ended December 31, 2014, filed by TSMC on April 13, 2015. |
|
|
|
(P) | Paper |
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED | ||
By: | /s/ Wendell Huang | |
Name: | Wendell Huang | |
Title: | Vice President, Finance and Chief Financial Officer / Spokesperson |
Page | ||||
Consolidated Financial Statements of Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries | ||||
F-1 | ||||
F-2 | ||||
F-4 | ||||
F-6 | ||||
F-8 | ||||
F-9 | ||||
F-12 |
1. | We read the Company’s policy and |
2. | We tested the effectiveness of the controls over the evaluation of when to commence depreciation of EUI/CIP. |
3. | We sampled the year-end balance of EUI/CIP |
a. | Evaluated whether the selection did not meet the criteria specified by the Company for commencement of depreciation. |
b. | Observed the assets and evaluated their |
4. | We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation during the year. |
5. | We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation subsequent to year end. |
The
1
Notes | December 31, 2018 | December 31, 2019 | ||||||||||||||
NT$ | NT$ | US$ (Note 3) | ||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | 7 | $ | 577,814.6 | $ | 455,399.3 | $ | 15,225.7 | |||||||||
Financial assets at fair value through profit or loss | 8 | 3,504.6 | 326.8 | 10.9 | ||||||||||||
Financial assets at fair value through other comprehensive income | 9 | 99,561.7 | 127,396.6 | 4,259.3 | ||||||||||||
Financial assets at amortized cost | 10 | 14,277.6 | 299.9 | 10.0 | ||||||||||||
Hedging financial assets | 11 | 23.5 | 25.9 | 0.9 | ||||||||||||
Notes and accounts receivable, net | 12 | 128,613.4 | 138,908.6 | 4,644.2 | ||||||||||||
Receivables from related parties | 35 | 584.4 | 862.1 | 28.8 | ||||||||||||
Other receivables from related parties | 35 | 65.0 | 51.6 | 1.7 | ||||||||||||
Inventories | 6, 13, 38 | 103,231.0 | 82,981.2 | 2,774.4 | ||||||||||||
Other financial assets | 36 | 18,597.5 | 11,041.1 | 369.2 | ||||||||||||
Other current assets | 5,406.4 | 5,320.8 | 177.9 | |||||||||||||
|
|
|
|
|
| |||||||||||
Total current assets | 951,679.7 | 822,613.9 | 27,503.0 | |||||||||||||
|
|
|
|
|
| |||||||||||
NONCURRENT ASSETS | ||||||||||||||||
Financial assets at fair value through other comprehensive income | 9 | 3,910.7 | 4,124.3 | 137.9 | ||||||||||||
Financial assets at amortized cost | 10 | 7,528.3 | 7,348.9 | 245.7 | ||||||||||||
Investments accounted for using equity method | 14 | 17,769.0 | 18,618.8 | 622.5 | ||||||||||||
Property, plant and equipment | 6, 15 | 1,072,050.3 | 1,352,377.4 | 45,214.9 | ||||||||||||
Right-of-use assets | 6, 16 | — | 17,232.4 | 576.1 | ||||||||||||
Intangible assets | 6, 17 | 17,002.1 | 20,653.0 | 690.5 | ||||||||||||
Deferred income tax assets | 6, 29 | 16,806.4 | 17,928.4 | 599.4 | ||||||||||||
Refundable deposits | 1,700.1 | 2,085.0 | 69.7 | |||||||||||||
Other noncurrent assets | 1,584.6 | 1,742.9 | 58.3 | |||||||||||||
|
|
|
|
|
| |||||||||||
Total noncurrent assets | 1,138,351.5 | 1,442,111.1 | 48,215.0 | |||||||||||||
|
|
|
|
|
| |||||||||||
TOTAL | $ | 2,090,031.2 | $ | 2,264,725.0 | $ | 75,718.0 | ||||||||||
|
|
|
|
|
|
Notes | December 31, 2020 | December 31, 2021 | ||||||||||||||
NT$ | NT$ | US$ (Note 3) | ||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | 7 | $ | 660,170.6 | $ | 1,064,990.2 | $ | 38,391.9 | |||||||||
Financial assets at fair value through profit or loss | 8 | 2,259.4 | 159.0 | 5.7 | ||||||||||||
Financial assets at fair value through other comprehensive income | 9 | 122,448.5 | 119,519.3 | 4,308.5 | ||||||||||||
Financial assets at amortized cost | 10 | 6,598.0 | 3,773.6 | 136.0 | ||||||||||||
Hedging financial assets | 11 | 0.1 | 13.5 | 0.5 | ||||||||||||
Notes and accounts receivable, net | 12 | 145,480.3 | 197,586.1 | 7,122.8 | ||||||||||||
Receivables from related parties | 34 | 558.1 | 715.3 | 25.8 | ||||||||||||
Other receivables from related parties | 34 | 50.6 | 61.5 | 2.2 | ||||||||||||
Inventories | 6, 13, 37 | 137,353.4 | 193,102.3 | 6,961.2 | ||||||||||||
Other financial assets | 35 | 10,676.1 | 16,630.6 | 599.5 | ||||||||||||
Other current assets | 6,590.2 | 10,521.5 | 379.3 | |||||||||||||
Total current assets | 1,092,185.3 | 1,607,072.9 | 57,933.4 | |||||||||||||
NONCURRENT ASSETS | ||||||||||||||||
Financial assets at fair value through other comprehensive income | 9 | 4,514.9 | 5,887.9 | 212.3 | ||||||||||||
Financial assets at amortized cost | 10 | 4,372.2 | 1,533.4 | 55.3 | ||||||||||||
Investments accounted for using equity method | 14 | 18,730.2 | 21,762.2 | 784.5 | ||||||||||||
Property, plant and equipment | 6, 15 | 1,555,589.1 | 1,975,118.7 | 71,201.1 | ||||||||||||
Right-of-use | 6, 16 | 27,728.5 | 32,734.4 | 1,180.0 | ||||||||||||
Intangible assets | 6, 17 | 25,768.1 | 26,821.7 | 966.9 | ||||||||||||
Deferred income tax assets | 6, 27 | 25,958.2 | 49,153.9 | 1,772.0 | ||||||||||||
Refundable deposits | 1,343.0 | 2,624.9 | 94.6 | |||||||||||||
Other noncurrent assets | 4,411.0 | 2,592.2 | 93.4 | |||||||||||||
Total noncurrent assets | 1,668,415.2 | 2,118,229.3 | 76,360.1 | |||||||||||||
TOTAL | $ | 2,760,600.5 | $ | 3,725,302.2 | $ | 134,293.5 | ||||||||||
Notes | December 31, 2018 | December 31, 2019 | ||||||||||||||
NT$ | NT$ | US$ (Note 3) | ||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Short-term loans | 18, 32 | $ | 88,754.7 | $ | 118,522.3 | $ | 3,962.6 | |||||||||
Financial liabilities at fair value through profit or loss | 8 | 40.8 | 982.3 | 32.8 | ||||||||||||
Hedging financial liabilities | 11 | 155.8 | 1.8 | 0.1 | ||||||||||||
Accounts payable | 32,980.9 | 38,771.1 | 1,296.3 | |||||||||||||
Payables to related parties | 35 | 1,376.5 | 1,434.9 | 48.0 | ||||||||||||
Salary and bonus payable | 14,471.4 | 16,272.3 | 544.0 | |||||||||||||
Accrued profit sharing bonus to employees and compensation to directors and supervisors | 31 | 23,981.1 | 23,648.9 | 790.7 | ||||||||||||
Payables to contractors and equipment suppliers | 43,133.7 | 140,810.7 | 4,707.8 | |||||||||||||
Cash dividends payable | 23 | — | 129,652.0 | 4,334.7 | ||||||||||||
Income tax payable | 6, 29 | 55,281.6 | 40,094.3 | 1,340.5 | ||||||||||||
Long-term liabilities - current portion | 20, 32 | 34,900.0 | 31,800.0 | 1,063.2 | ||||||||||||
Accrued expenses and other current liabilities | 6, 16, 22, 24, 32 | 61,760.6 | 56,373.2 | 1,884.8 | ||||||||||||
|
|
|
|
|
| |||||||||||
Total current liabilities | 356,837.1 | 598,363.8 | 20,005.5 | |||||||||||||
|
|
|
|
|
| |||||||||||
NONCURRENT LIABILITIES | ||||||||||||||||
Bonds payable | 20, 32 | 56,900.0 | 25,100.0 | 839.2 | ||||||||||||
Deferred income tax liabilities | 6, 29 | 233.3 | 344.4 | 11.5 | ||||||||||||
Lease liabilities | 6, 16, 32 | — | 15,041.8 | 502.9 | ||||||||||||
Net defined benefit liability | 21 | 9,651.4 | 9,182.5 | 307.0 | ||||||||||||
Guarantee deposits | 22, 32 | 3,353.3 | 176.9 | 5.9 | ||||||||||||
Others | 1,951.0 | 2,128.3 | 71.2 | |||||||||||||
|
|
|
|
|
| |||||||||||
Total noncurrent liabilities | 72,089.0 | 51,973.9 | 1,737.7 | |||||||||||||
|
|
|
|
|
| |||||||||||
Total liabilities | 428,926.1 | 650,337.7 | 21,743.2 | |||||||||||||
|
|
|
|
|
| |||||||||||
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT | ||||||||||||||||
Capital stock | 23 | 259,303.8 | 259,303.8 | 8,669.5 | ||||||||||||
|
|
|
|
|
| |||||||||||
Capital surplus | 23 | 56,316.0 | 56,339.7 | 1,883.6 | ||||||||||||
|
|
|
|
|
| |||||||||||
Retained earnings | 23 | |||||||||||||||
Appropriated as legal capital reserve | 276,033.9 | 311,147.0 | 10,402.8 | |||||||||||||
Appropriated as special capital reserve | 26,907.5 | 10,675.1 | 356.9 | |||||||||||||
Unappropriated earnings | 1,057,317.5 | 1,003,808.3 | 33,560.9 | |||||||||||||
|
|
|
|
|
| |||||||||||
1,360,258.9 | 1,325,630.4 | 44,320.6 | ||||||||||||||
|
|
|
|
|
| |||||||||||
Others | 23 | (15,449.9 | ) | (27,568.3 | ) | (921.7 | ) | |||||||||
|
|
|
|
|
| |||||||||||
Equity attributable to shareholders of the parent | 1,660,428.8 | 1,613,705.6 | 53,952.0 | |||||||||||||
NON - CONTROLLING INTERESTS | 676.3 | 681.7 | 22.8 | |||||||||||||
|
|
|
|
|
| |||||||||||
Total equity | 1,661,105.1 | 1,614,387.3 | 53,974.8 | |||||||||||||
|
|
|
|
|
| |||||||||||
TOTAL | $ | 2,090,031.2 | $ | 2,264,725.0 | $ | 75,718.0 | ||||||||||
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
Notes | December 31, 2020 | December 31, 2021 | ||||||||||||||
NT$ | NT$ | US$ (Note 3) | ||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Short-term loans | 18, 31 | $ | 88,559.0 | $ | 114,921.3 | $ | 4,142.8 | |||||||||
Financial liabilities at fair value through profit or loss | 8 | 94.1 | 681.9 | 24.6 | ||||||||||||
Hedging financial liabilities | 11 | 1.2 | 9.6 | 0.3 | ||||||||||||
Accounts payable | 38,987.3 | 47,285.6 | 1,704.6 | |||||||||||||
Payables to related parties | 34 | 2,107.7 | 1,437.2 | 51.8 | ||||||||||||
Salary and bonus payable | 20,071.2 | 23,802.1 | 858.0 | |||||||||||||
Accrued profit sharing bonus to employees and compensation to directors and supervisors | 30 | 35,681.0 | 36,524.7 | 1,316.7 | ||||||||||||
Payables to contractors and equipment suppliers | 157,805.0 | 145,742.2 | 5,253.9 | |||||||||||||
Cash dividends payable | 22 | 129,652.0 | 142,617.1 | 5,141.2 | ||||||||||||
Income tax payable | 6, 27 | 68,656.7 | 78,496.6 | 2,829.7 | ||||||||||||
Long-term liabilities - current portion | 19, 20, 31 | 2,600.0 | 4,566.7 | 164.6 | ||||||||||||
Accrued expenses and other current liabilities | 6, 16, 23, 31, 34 | 87,683.2 | 162,267.8 | 5,849.7 | ||||||||||||
Total current liabilities | 631,898.4 | 758,352.8 | 27,337.9 | |||||||||||||
NONCURRENT LIABILITIES | ||||||||||||||||
Bonds payable | 19, 31 | 254,105.1 | 610,070.6 | 21,992.4 | ||||||||||||
Long-term bank loans | 20, 31 | 1,967.6 | 3,309.1 | 119.3 | ||||||||||||
Deferred income tax liabilities | 6, 27 | 1,729.9 | 1,873.9 | 67.6 | ||||||||||||
Lease liabilities | 6, 16, 31 | 20,560.6 | 20,764.2 | 748.5 | ||||||||||||
Net defined benefit liability | 21 | 11,914.1 | 11,036.9 | 397.9 | ||||||||||||
Guarantee deposits | 265.6 | 686.8 | 24.8 | |||||||||||||
Others | 23 | 2,395.4 | 167,525.4 | 6,039.1 | ||||||||||||
Total noncurrent liabilities | 292,938.3 | 815,266.9 | 29,389.6 | |||||||||||||
Total liabilities | 924,836.7 | 1,573,619.7 | 56,727.5 | |||||||||||||
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT | ||||||||||||||||
Capital stock | 22 | 259,303.8 | 259,303.8 | 9,347.7 | ||||||||||||
Capital surplus | 22 | 56,347.2 | 64,761.5 | 2,334.6 | ||||||||||||
Retained earnings | 22 | |||||||||||||||
Appropriated as legal capital reserve | 311,147.0 | 311,147.0 | 11,216.5 | |||||||||||||
Appropriated as special capital reserve | 42,259.1 | 59,304.2 | 2,137.9 | |||||||||||||
Unappropriated earnings | 1,220,434.0 | 1,517,351.7 | 54,699.0 | |||||||||||||
1,573,840.1 | 1,887,802.9 | 68,053.4 | ||||||||||||||
Others | 22 | (54,679.8 | ) | (62,608.4 | ) | (2,257.0 | ) | |||||||||
Equity attributable to shareholders of the parent | 1,834,811.3 | 2,149,259.8 | 77,478.7 | |||||||||||||
NON - CONTROLLING INTERESTS | 952.5 | 2,422.7 | 87.3 | |||||||||||||
Total equity | 1,835,763.8 | 2,151,682.5 | 77,566.0 | |||||||||||||
TOTAL | $ | 2,760,600.5 | $ | 3,725,302.2 | $ | 134,293.5 | ||||||||||
The accompanying notes are an integral part of the consolidated financial statements. | (Concluded) |
Notes | 2017 | 2018 | 2019 | |||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||||
(Note 3) | ||||||||||||||||||||
NET REVENUE | 6, 24, 35, 39 | $ | 977,447.2 | $ | 1,031,473.6 | $ | 1,069,985.4 | $ | 35,773.5 | |||||||||||
COST OF REVENUE | 6, 13, 31, 35, 38 | 482,616.2 | 533,487.5 | 577,286.9 | 19,300.8 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
GROSS PROFIT BEFORE REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO ASSOCIATES | 494,831.0 | 497,986.1 | 492,698.5 | 16,472.7 | ||||||||||||||||
REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO ASSOCIATES | (4.6 | ) | (111.8 | ) | 3.4 | 0.1 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
GROSS PROFIT | 494,826.4 | 497,874.3 | 492,701.9 | 16,472.8 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
OPERATING EXPENSES | 6, 31, 35 | |||||||||||||||||||
Research and development | 80,732.5 | 85,895.6 | 91,418.7 | 3,056.5 | ||||||||||||||||
General and administrative | 21,196.7 | 20,265.9 | 21,737.2 | 726.7 | ||||||||||||||||
Marketing | 5,972.5 | 5,987.8 | 6,348.6 | 212.2 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 107,901.7 | 112,149.3 | 119,504.5 | 3,995.4 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
OTHER OPERATING INCOME AND EXPENSES, NET | 15, 16, 17, 25, 31 | (1,365.5 | ) | (2,101.5 | ) | (496.3 | ) | (16.6 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||||||
INCOME FROM OPERATIONS | 39 | 385,559.2 | 383,623.5 | 372,701.1 | 12,460.8 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NON-OPERATING INCOME AND EXPENSES | ||||||||||||||||||||
Share of profits of associates | 3,014.8 | 3,090.6 | 2,861.0 | 95.7 | ||||||||||||||||
Other income | 26 | 9,610.3 | 14,852.8 | 16,606.7 | 555.2 | |||||||||||||||
Foreign exchange gain (loss), net | (1,509.5 | ) | 2,438.2 | 2,095.2 | 70.0 | |||||||||||||||
Finance costs | 27 | (3,330.3 | ) | (3,051.2 | ) | (3,250.9 | ) | (108.7 | ) | |||||||||||
Other gains and losses, net | 28 | 2,817.4 | (3,410.8 | ) | (1,151.0 | ) | (38.5 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Totalnon-operating income and expenses | 10,602.7 | 13,919.6 | 17,161.0 | 573.7 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
INCOME BEFORE INCOME TAX | 396,161.9 | 397,543.1 | 389,862.1 | 13,034.5 | ||||||||||||||||
INCOME TAX EXPENSE | 6, 29 | 51,122.9 | 34,436.9 | 35,835.1 | 1,198.1 | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET INCOME | 345,039.0 | 363,106.2 | 354,027.0 | 11,836.4 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | 6, 21, 23, 29 | |||||||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||||
Remeasurement of defined benefit obligation | (254.7 | ) | (861.2 | ) | 253.9 | 8.5 | ||||||||||||||
Unrealized loss on investments in equity instruments at fair value through other comprehensive income | — | (3,309.1 | ) | 334.3 | 11.2 | |||||||||||||||
Gain (loss) on hedging instruments | — | 41.0 | (109.6 | ) | (3.7 | ) | ||||||||||||||
Share of other comprehensive loss of associates | (20.9 | ) | (14.2 | ) | (18.2 | ) | (0.6 | ) | ||||||||||||
Income tax benefit (expense) related to items that will not be reclassified subsequently | 30.6 | 195.7 | (21.0 | ) | (0.7 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
(245.0 | ) | (3,947.8 | ) | 439.4 | 14.7 | |||||||||||||||
|
|
|
|
|
|
|
|
Notes | 2019 | 2020 | 2021 | |||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||
(Note 3) | ||||||||||||||||||
NET REVENUE | 6, 23, 34, 38 | $ | 1,069,985.4 | $ | 1,339,254.8 | $ | 1,587,415.0 | $ | 57,224.8 | |||||||||
COST OF REVENUE | 6, 13, 30, 34, 37 | 577,283.5 | 628,124.7 | 767,877.7 | 27,681.3 | |||||||||||||
GROSS PROFIT | 492,701.9 | 711,130.1 | 819,537.3 | 29,543.5 | ||||||||||||||
OPERATING EXPENSES | 6, 30, 34 | |||||||||||||||||
Research and development | 91,418.7 | 109,486.0 | 124,734.8 | 4,496.6 | ||||||||||||||
General and administrative | 21,737.2 | 28,457.6 | 36,929.6 | 1,331.3 | ||||||||||||||
Marketing | 6,348.6 | 7,112.8 | 7,558.6 | 272.4 | ||||||||||||||
Total operating expenses | 119,504.5 | 145,056.4 | 169,223.0 | 6,100.3 | ||||||||||||||
OTHER OPERATING INCOME AND EXPENSES, NET | 15, 16, 30 | (496.3 | ) | 710.0 | (333.4 | ) | (12.0 | ) | ||||||||||
INCOME FROM OPERATIONS | 38 | 372,701.1 | 566,783.7 | 649,980.9 | 23,431.2 | |||||||||||||
NON-OPERATING INCOME AND EXPENSES | ||||||||||||||||||
Share of profits of associates | 2,861.0 | 3,562.0 | 5,512.7 | 198.7 | ||||||||||||||
Interest Income | 24 | 16,189.4 | 9,018.4 | 5,708.8 | 205.8 | |||||||||||||
Other income | 417.3 | 660.6 | 973.1 | 35.1 | ||||||||||||||
Foreign exchange gain (loss), net | 2,095.2 | (3,303.3 | ) | 13,662.7 | 492.5 | |||||||||||||
Finance costs | 25 | (3,250.9 | ) | (2,081.5 | ) | (5,414.2 | ) | (195.2 | ) | |||||||||
Other gains and losses, net | 26 | (1,151.0 | ) | 10,106.4 | (7,388.0 | ) | (266.3 | ) | ||||||||||
Total non-operating income and expenses | 17,161.0 | 17,962.6 | 13,055.1 | 470.6 | ||||||||||||||
INCOME BEFORE INCOME TAX | 389,862.1 | 584,746.3 | 663,036.0 | 23,901.8 | ||||||||||||||
INCOME TAX EXPENSE | 6, 27 | 35,835.1 | 73,738.3 | 70,155.4 | 2,529.0 | |||||||||||||
NET INCOME | 354,027.0 | 511,008.0 | 592,880.6 | 21,372.8 | ||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | 6, 21, 22, 27 | |||||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||
Remeasurement of defined benefit obligation | 253.9 | (3,516.8 | ) | 242.1 | 8.7 | |||||||||||||
Unrealized gain on investments in equity instruments at fair value through other comprehensive income | 334.3 | 423.7 | 1,900.8 | 68.5 | ||||||||||||||
Gain (loss) on hedging instruments | (109.6 | ) | 24.1 | (41.4 | ) | (1.5 | ) | |||||||||||
Share of other comprehensive loss of associates | (18.2 | ) | (11.6 | ) | (30.2 | ) | (1.1 | ) | ||||||||||
Income tax benefit (expense) related to items that will not be reclassified subsequently | (21.0 | ) | 422.7 | (85.3 | ) | (3.1 | ) | |||||||||||
439.4 | (2,657.9 | ) | 1,986.0 | 71.5 | ||||||||||||||
Notes | 2017 | 2018 | 2019 | |||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||||
(Note 3) | ||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||
Exchange differences arising on translation of foreign operations | $ | (28,259.6 | ) | $ | 14,562.4 | $ | (14,689.1 | ) | $ | (491.1 | ) | |||||||||
Changes in fair value ofavailable-for-sale financial assets | (218.8 | ) | — | — | — | |||||||||||||||
Cash flow hedges | 4.7 | — | — | — | ||||||||||||||||
Unrealized loss on investments in debt instruments at fair value through other comprehensive income | — | (870.9 | ) | 2,566.4 | 85.8 | |||||||||||||||
Share of other comprehensive income (loss) of associates | (99.4 | ) | 93.3 | (140.2 | ) | (4.7 | ) | |||||||||||||
Income tax expense related to items that may be reclassified subsequently | (3.5 | ) | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
(28,576.6 | ) | 13,784.8 | (12,262.9 | ) | (410.0 | ) | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Other comprehensive income (loss) for the year, net of income tax | (28,821.6 | ) | 9,837.0 | (11,823.5 | ) | (395.3 | ) | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | $ | 316,217.4 | $ | 372,943.2 | $ | 342,203.5 | $ | 11,441.1 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
NET INCOME ATTRIBUTABLE TO: | ||||||||||||||||||||
Shareholders of the parent | $ | 344,998.3 | $ | 363,052.7 | $ | 353,948.0 | $ | 11,833.8 | ||||||||||||
Non-controlling interests | 40.7 | 53.5 | 79.0 | 2.6 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
$ | 345,039.0 | $ | 363,106.2 | $ | 354,027.0 | $ | 11,836.4 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: | ||||||||||||||||||||
Shareholders of the parent | $ | 316,181.8 | $ | 372,886.8 | $ | 342,124.9 | $ | 11,438.5 | ||||||||||||
Non-controlling interests | 35.6 | 56.4 | 78.6 | 2.6 | ||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
$ | 316,217.4 | $ | 372,943.2 | $ | 342,203.5 | $ | 11,441.1 | |||||||||||||
|
|
|
|
|
|
|
|
2017 | 2018 | 2019 | ||||||||||||||||||
Income Attributable to Shareholders of the Parent | Income Attributable to Shareholders of the Parent | Income Attributable to Shareholders of the Parent | ||||||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||||
(Note 3) | ||||||||||||||||||||
EARNINGS PER SHARE | 30 | |||||||||||||||||||
Basic earnings per share | $ | 13.30 | $ | 14.00 | $ | 13.65 | $ | 0.46 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Diluted earnings per share | $ | 13.30 | $ | 14.00 | $ | 13.65 | $ | 0.46 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
EARNINGS PER EQUIVALENT ADS | ||||||||||||||||||||
Basic earnings per share | $ | 66.52 | $ | 70.01 | $ | 68.25 | $ | 2.28 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||||||
Diluted earnings per share | $ | 66.52 | $ | 70.01 | $ | 68.25 | $ | 2.28 | ||||||||||||
|
|
|
|
|
|
|
|
Notes | 2019 | 2020 | 2021 | |||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||||
(Note 3) | ||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||
Exchange differences arising on translation of foreign operations | $ | (14,689.1 | ) | $ | (29,847.2 | ) | $ | (6,181.8 | ) | $ | (222.8 | ) | ||||||
Unrealized gain/(loss) on investments in debt instruments at fair value through other comprehensive income | 2,566.4 | 2,466.7 | (3,431.8 | ) | (123.7 | ) | ||||||||||||
Gain on hedging instruments | — | — | 131.6 | 4.7 | ||||||||||||||
Share of other comprehensive loss of associates | (140.2 | ) | (283.4 | ) | (120.0 | ) | (4.3 | ) | ||||||||||
Income tax expense related to items that may be reclassified subsequently | — | — | (3.4 | ) | (0.1 | ) | ||||||||||||
(12,262.9 | ) | (27,663.9 | ) | (9,605.4 | ) | (346.2 | ) | |||||||||||
Other comprehensive loss for the year, net of income tax | (11,823.5 | ) | (30,321.8 | ) | (7,619.4 | ) | (274.7 | ) | ||||||||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | $ | 342,203.5 | $ | 480,686.2 | $ | 585,261.2 | $ | 21,098.1 | ||||||||||
NET INCOME ATTRIBUTABLE TO: | ||||||||||||||||||
Shareholders of the parent | $ | 353,948.0 | $ | 510,744.0 | $ | 592,359.2 | $ | 21,354.0 | ||||||||||
Non-controlling interests | 79.0 | 264.0 | 521.4 | 18.8 | ||||||||||||||
$ | 354,027.0 | $ | 511,008.0 | $ | 592,880.6 | $ | 21,372.8 | |||||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: | ||||||||||||||||||
Shareholders of the parent | $ | 342,124.9 | $ | 480,422.1 | $ | 584,737.3 | $ | 21,079.2 | ||||||||||
Non-controlling interests | 78.6 | 264.1 | 523.9 | 18.9 | ||||||||||||||
$ | 342,203.5 | $ | 480,686.2 | $ | 585,261.2 | $ | 21,098.1 | |||||||||||
EARNINGS PER SHARE | 28 | |||||||||||||||||
Basic earnings per share | $ | 13.65 | $ | 19.70 | $ | 22.84 | $ | 0.82 | ||||||||||
Diluted earnings per share | $ | 13.65 | $ | 19.70 | $ | 22.84 | $ | 0.82 | ||||||||||
EARNINGS PER EQUIVALENT ADS | ||||||||||||||||||
Basic earnings per share | $ | 68.25 | $ | 98.48 | $ | 114.22 | $ | 4.12 | ||||||||||
Diluted earnings per share | $ | 68.25 | $ | 98.48 | $ | 114.22 | $ | 4.12 | ||||||||||
Equity Attributable to Shareholders of the Parent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Others | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock - Common Stock | Capital Surplus |
Retained Earnings | Foreign Currency Translation Reserve | Unrealized Gain/Loss from Available-for-sale Financial Assets | Unrealized Gain/Loss on Financial Assets at Fair Value Through Other Comprehensive Income | Cash Flow Hedges Reserve | Gain (Loss) on Hedging Instruments | Stock - Based Employee Compensation | Total | Total | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares (In Millions) | Amount | Legal Capital Reserve | Special Capital Reserve | Unappropriated Earnings | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2017 | 25,930.3 | $ | 259,303.8 | $ | 56,272.3 | $ | 208,298.0 | $ | — | $ | 833,512.7 | $ | 1,041,810.7 | $ | 1,661.2 | $ | 2.6 | $ | — | $ | 0.1 | $ | — | $ | — | $ | 1,663.9 | $ | 1,359,050.7 | $ | 795.1 | $ | 1,359,845.8 | |||||||||||||||||||||||||||||||||||
Appropriations of earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal capital reserve | — | — | — | 33,424.7 | — | (33,424.7 | ) | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholders | — | — | — | — | — | (181,512.7 | ) | (181,512.7 | ) | — | — | — | — | — | — | — | (181,512.7 | ) | — | (181,512.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Total | — | — | — | 33,424.7 | — | (214,937.4 | ) | (181,512.7 | ) | — | — | — | — | — | — | — | (181,512.7 | ) | — | (181,512.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Net income in 2017 | — | — | — | — | — | 344,998.3 | 344,998.3 | — | — | — | — | — | — | — | 344,998.3 | 40.7 | 345,039.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) in 2017, net of income tax | — | — | — | — | — | (245.0 | ) | (245.0 | ) | (28,358.9 | ) | (216.7 | ) | — | 4.1 | — | — | (28,571.5 | ) | (28,816.5 | ) | (5.1 | ) | (28,821.6 | ) | |||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) in 2017 | — | — | — | — | — | 344,753.3 | 344,753.3 | (28,358.9 | ) | (216.7 | ) | — | 4.1 | — | — | (28,571.5 | ) | 316,181.8 | 35.6 | 316,217.4 | ||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equities of associates | — | — | 7.1 | — | — | — | — | — | — | — | — | — | (10.3 | ) | (10.3 | ) | (3.2 | ) | — | (3.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
From share of changes in equities of subsidiaries | — | — | 11.0 | — | — | — | — | — | — | — | — | — | — | — | 11.0 | (11.0 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Donation from shareholders | — | — | 19.2 | — | — | — | — | — | — | — | — | — | — | — | 19.2 | 1.7 | 20.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease innon-controlling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (113.7 | ) | (113.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Effect of disposal of subsidiary | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (8.0 | ) | (8.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2017 | 25,930.3 | 259,303.8 | 56,309.6 | 241,722.7 | — | 963,328.6 | 1,205,051.3 | (26,697.7 | ) | (214.1 | ) | — | 4.2 | — | (10.3 | ) | (26,917.9 | ) | 1,493,746.8 | 699.7 | 1,494,446.5 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect of retrospective application | — | — | — | — | — | 1,556.3 | 1,556.3 | — | 214.1 | (524.9 | ) | (4.2 | ) | 4.2 | — | (310.8 | ) | 1,245.5 | 0.3 | 1,245.8 | ||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
ADJUSTED BALANCE, JANUARY 1, 2018 | 25,930.3 | $ | 259,303.8 | $ | 56,309.6 | $ | 241,722.7 | $ | — | $ | 964,884.9 | $ | 1,206,607.6 | $ | (26,697.7 | ) | $ | — | $ | (524.9 | ) | $ | — | $ | 4.2 | $ | (10.3 | ) | $ | (27,228.7 | ) | $ | 1,494,992.3 | $ | 700.0 | $ | 1,495,692.3 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Appropriations of earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal capital reserve | — | — | — | 34,311.2 | — | (34,311.2 | ) | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special capital reserve | — | — | — | — | 26,907.5 | (26,907.5 | ) | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholders | — | — | — | — | — | (207,443.0 | ) | (207,443.0 | ) | — | — | — | — | — | — | — | (207,443.0 | ) | — | (207,443.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Total | — | — | — | 34,311.2 | 26,907.5 | (268,661.7 | ) | (207,443.0 | ) | — | — | — | — | — | — | — | (207,443.0 | ) | — | (207,443.0 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Net income in 2018 | — | — | — | — | — | 363,052.7 | 363,052.7 | — | — | — | — | — | — | — | 363,052.7 | 53.5 | 363,106.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) in 2018, net of income tax | — | — | — | — | — | (765.3 | ) | (765.3 | ) | 14,655.3 | — | (4,097.5 | ) | — | 41.6 | — | 10,599.4 | 9,834.1 | 2.9 | 9,837.0 | ||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) in 2018 | — | — | — | — | — | 362,287.4 | 362,287.4 | 14,655.3 | — | (4,097.5 | ) | — | 41.6 | — | 10,599.4 | 372,886.8 | 56.4 | 372,943.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Disposal of investments in equity instruments at fair value through other comprehensive income | — | — | — | — | — | (1,193.1 | ) | (1,193.1 | ) | — | — | 1,193.1 | — | — | — | 1,193.1 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Basis adjustment for loss on hedging instruments | — | — | — | — | — | — | — | — | — | — | — | (22.2 | ) | — | (22.2 | ) | (22.2 | ) | — | (22.2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equities of associates | — | — | (6.4 | ) | — | — | — | — | — | — | — | — | — | 8.5 | 8.5 | 2.1 | — | 2.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
From share of changes in equities of subsidiaries | — | — | 2.7 | — | — | — | — | — | — | — | — | — | — | — | 2.7 | (2.7 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Donation from shareholders | — | — | 10.1 | — | — | — | — | — | — | — | — | — | — | — | 10.1 | — | 10.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease innon-controlling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (77.4 | ) | (77.4 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2018 | 25,930.3 | $ | 259,303.8 | $ | 56,316.0 | $ | 276,033.9 | $ | 26,907.5 | $ | 1,057,317.5 | $ | 1,360,258.9 | $ | (12,042.4 | ) | $ | — | $ | (3,429.3 | ) | $ | — | $ | 23.6 | $ | (1.8 | ) | $ | (15,449.9 | ) | $ | 1,660,428.8 | $ | 676.3 | $ | 1,661,105.1 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Appropriations of earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal capital reserve | — | — | — | 35,113.1 | — | (35,113.1 | ) | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Special capital reserve | — | — | — | — | (16,232.4 | ) | 16,232.4 | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholders | — | — | — | — | — | (388,955.7 | ) | (388,955.7 | ) | — | — | — | — | — | — | — | (388,955.7 | ) | — | (388,955.7 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Total | — | — | — | 35,113.1 | (16,232.4 | ) | (407,836.4 | ) | (388,955.7 | ) | — | — | — | — | — | — | — | (388,955.7 | ) | — | (388,955.7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Net income in 2019 | — | — | — | — | — | 353,948.0 | 353,948.0 | — | — | — | — | — | — | — | 353,948.0 | 79.0 | 354,027.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) in 2019, net of income tax | — | — | — | — | — | 217.1 | 217.1 | (14,829.0 | ) | — | 2,898.5 | — | (109.7 | ) | — | (12,040.2 | ) | (11,823.1 | ) | (0.4 | ) | (11,823.5 | ) | |||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) in 2019 | — | — | — | — | — | 354,165.1 | 354,165.1 | (14,829.0 | ) | — | 2,898.5 | — | (109.7 | ) | — | (12,040.2 | ) | 342,124.9 | 78.6 | 342,203.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
Disposal of investments in equity instruments at fair value through other comprehensive income | — | — | — | — | — | 162.1 | 162.1 | — | — | (162.1 | ) | — | — | — | (162.1 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Basis adjustment for gain on hedging instruments | — | — | — | — | — | — | — | — | — | — | — | 82.3 | — | 82.3 | 82.3 | — | 82.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equities of associates | — | — | 19.4 | — | — | — | — | — | — | — | — | — | 1.6 | 1.6 | 21.0 | 0.2 | 21.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
From share of changes in equities of subsidiaries | — | — | 0.3 | — | — | — | — | — | — | — | — | — | — | — | 0.3 | (0.3 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Donation from shareholders | — | — | 4.0 | — | — | — | — | — | — | — | — | — | — | — | 4.0 | — | 4.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease innon-controlling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | (73.1 | ) | (73.1 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2019 | 25,930.3 | $ | 259,303.8 | $ | 56,339.7 | $ | 311,147.0 | $ | 10,675.1 | $ | 1,003,808.3 | $ | 1,325,630.4 | $ | (26,871.4 | ) | $ | — | $ | (692.9 | ) | $ | — | $ | (3.8 | ) | $ | (0.2 | ) | $ | (27,568.3 | ) | $ | 1,613,705.6 | $ | 681.7 | $ | 1,614,387.3 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2019 (IN MILLIONS OF US$ - Note 3) | $ | 8,669.5 | $ | 1,883.6 | $ | 10,402.8 | $ | 356.9 | $ | 33,560.9 | $ | 44,320.6 | $ | (898.4 | ) | $ | — | $ | (23.2 | ) | $ | — | $ | (0.1 | ) | $ | — | $ | (921.7 | ) | $ | 53,952.0 | $ | 22.8 | $ | 53,974.8 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Attributable to Shareholders of the Parent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Others | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Reserve | Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income | Gain (Loss) on Hedging Instruments | Unearned Stock-Based Employee Compensation | Total | Total | Non-controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock - Common Stock | Retained Earnings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares (In Millions) | Amount | Capital Surplus | Legal Capital Reserve | Special Capital Reserve | Unappropriated Earnings | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2019 | 25,930.3 | $ | 259,303.8 | $ | 56,316.0 | $ | 276,033.9 | $ | 26,907.5 | $ | 1,057,317.5 | $ | 1,360,258.9 | $ | (12,042.4 | ) | $ | (3,429.3 | ) | $ | 23.6 | $ | (1.8 | ) | $ | (15,449.9 | ) | $ | 1,660,428.8 | $ | 676.3 | $ | 1,661,105.1 | |||||||||||||||||||||||||||
Appropriations of earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal capital reserve | — | — | — | 35,113.1 | — | (35,113.1 | ) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Special capital reserve | — | — | — | — | (16,232.4 | ) | 16,232.4 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholders | — | — | — | — | — | (388,955.7 | ) | (388,955.7 | ) | — | — | — | — | — | (388,955.7 | ) | — | (388,955.7 | ) | |||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | 35,113.1 | (16,232.4 | ) | (407,836.4 | ) | (388,955.7 | ) | — | — | — | — | — | (388,955.7 | ) | — | (388,955.7 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income in 2019 | — | — | — | — | — | 353,948.0 | 353,948.0 | — | — | — | — | — | 353,948.0 | 79.0 | 354,027.0 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) in 2019, net of income tax | — | — | — | — | — | 217.1 | 217.1 | (14,829.0 | ) | 2,898.5 | (109.7 | ) | — | (12,040.2 | ) | (11,823.1 | ) | (0.4 | ) | (11,823.5 | ) | |||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) in 2019 | — | — | — | — | — | 354,165.1 | 354,165.1 | (14,829.0 | ) | 2,898.5 | (109.7 | ) | — | (12,040.2 | ) | 342,124.9 | 78.6 | 342,203.5 | ||||||||||||||||||||||||||||||||||||||||||
Disposal of investments in equity instruments at fair value through other comprehensive income | — | — | — | — | — | 162.1 | 162.1 | — | (162.1 | ) | — | — | (162.1 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Basis adjustment for gain on hedging instruments | — | — | — | — | — | — | — | — | — | 82.3 | — | 82.3 | 82.3 | — | 82.3 | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equities of associates | — | — | 19.4 | — | — | — | — | — | — | — | 1.6 | 1.6 | 21.0 | 0.2 | 21.2 | |||||||||||||||||||||||||||||||||||||||||||||
From share of changes in equities of subsidiaries | — | — | 0.3 | — | — | — | — | — | — | — | — | — | 0.3 | (0.3 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||
Donation from shareholders | — | — | 4.0 | — | — | — | — | — | — | — | — | — | 4.0 | — | 4.0 | |||||||||||||||||||||||||||||||||||||||||||||
Decrease in non-controlling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | (73.1 | ) | (73.1 | ) | |||||||||||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2019 | 25,930.3 | $ | 259,303.8 | $ | 56,339.7 | $ | 311,147.0 | $ | 10,675.1 | $ | 1,003,808.3 | $ | 1,325,630.4 | $ | (26,871.4 | ) | $ | (692.9 | ) | $ | (3.8 | ) | $ | (0.2 | ) | $ | (27,568.3 | ) | $ | 1,613,705.6 | $ | 681.7 | $ | 1,614,387.3 | ||||||||||||||||||||||||||
Appropriations of earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special capital reserve | — | — | — | — | 31,584.0 | (31,584.0 | ) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholders | — | — | — | — | — | (259,303.8 | ) | (259,303.8 | ) | — | — | — | — | — | (259,303.8 | ) | — | (259,303.8 | ) | |||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | 31,584.0 | (290,887.8 | ) | (259,303.8 | ) | — | — | — | — | — | (259,303.8 | ) | — | (259,303.8 | ) | |||||||||||||||||||||||||||||||||||||||||
Net income in 2020 | — | — | — | — | — | 510,744.0 | 510,744.0 | — | — | — | — | — | 510,744.0 | 264.0 | 511,008.0 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) in 2020, net of income tax | — | — | — | — | — | (3,121.8 | ) | (3,121.8 | ) | (30,130.2 | ) | 2,906.0 | 24.1 | — | (27,200.1 | ) | (30,321.9 | ) | 0.1 | (30,321.8 | ) | |||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) in 2020 | — | — | — | — | — | 507,622.2 | 507,622.2 | (30,130.2 | ) | 2,906.0 | 24.1 | — | (27,200.1 | ) | 480,422.1 | 264.1 | 480,686.2 | |||||||||||||||||||||||||||||||||||||||||||
Disposal of investments in equity instruments at fair value through other comprehensive income | — | — | — | — | — | (108.7 | ) | (108.7 | ) | — | 108.7 | — | — | 108.7 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Basis adjustment for loss on hedging instruments | — | — | — | — | — | — | — | — | — | (20.3 | ) | — | (20.3 | ) | (20.3 | ) | — | (20.3 | ) | |||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equities of associates | — | — | 0.3 | — | — | — | — | — | — | — | 0.2 | 0.2 | 0.5 | — | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||
Donation from shareholders | — | — | 7.2 | — | — | — | — | — | — | — | — | — | 7.2 | — | 7.2 | |||||||||||||||||||||||||||||||||||||||||||||
Increase in non-controlling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | 6.7 | 6.7 | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2020 | 25,930.3 | $ | 259,303.8 | $ | 56,347.2 | $ | 311,147.0 | $ | 42,259.1 | $ | 1,220,434.0 | $ | 1,573,840.1 | $ | (57,001.6 | ) | $ | 2,321.8 | $ | — | $ | — | $ | (54,679.8 | ) | $ | 1,834,811.3 | $ | 952.5 | $ | 1,835,763.8 | |||||||||||||||||||||||||||||
Appropriations of earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special capital reserve | — | — | — | — | 17,045.1 | (17,045.1 | ) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholders | — | — | — | — | — | (278,751.6 | ) | (278,751.6 | ) | — | — | — | — | — | (278,751.6 | ) | — | (278,751.6 | ) | |||||||||||||||||||||||||||||||||||||||||
Total | — | — | — | — | 17,045.1 | (295,796.7 | ) | (278,751.6 | ) | — | — | — | — | — | (278,751.6 | ) | — | (278,751.6 | ) | |||||||||||||||||||||||||||||||||||||||||
Net income in 2021 | — | — | — | — | — | 592,359.2 | 592,359.2 | — | — | — | — | — | 592,359.2 | 521.4 | 592,880.6 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) in 2021, net of income tax | — | — | — | — | — | 167.5 | 167.5 | (6,301.7 | ) | (1,559.8 | ) | 72.1 | — | (7,789.4 | ) | (7,621.9 | ) | 2.5 | (7,619.4 | ) | ||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) in 2021 | — | — | — | — | — | 592,526.7 | 592,526.7 | (6,301.7 | ) | (1,559.8 | ) | 72.1 | — | (7,789.4 | ) | 584,737.3 | 523.9 | 585,261.2 | ||||||||||||||||||||||||||||||||||||||||||
Disposal of investments in equity instruments at fair value through other comprehensive income | — | — | — | — | — | 187.7 | 187.7 | — | (187.7 | ) | — | — | (187.7 | ) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Basis adjustment for gain on hedging instruments | — | — | — | — | — | — | — | — | — | 48.5 | — | 48.5 | 48.5 | — | 48.5 | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equities of associates | — | — | 4.8 | — | — | — | — | — | — | — | — | — | 4.8 | — | 4.8 | |||||||||||||||||||||||||||||||||||||||||||||
From difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal | — | — | 8,406.3 | — | — | — | — | — | — | — | — | — | 8,406.3 | 1,045.5 | 9,451.8 | |||||||||||||||||||||||||||||||||||||||||||||
From share of changes in equities of subsidiaries | — | — | (7.9 | ) | — | — | — | — | — | — | — | — | — | (7.9 | ) | 7.9 | — | |||||||||||||||||||||||||||||||||||||||||||
Donation from shareholders | — | — | 11.1 | — | — | — | — | — | — | — | — | — | 11.1 | 0.1 | 11.2 | |||||||||||||||||||||||||||||||||||||||||||||
Increase in non-controlling interests | — | — | — | — | — | — | — | — | — | — | — | — | — | (107.4 | ) | (107.4 | ) | |||||||||||||||||||||||||||||||||||||||||||
Effect of acquisition of subsidiary | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.2 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2021 | 25,930.3 | $ | 259,303.8 | $ | 64,761.5 | $ | 311,147.0 | $ | 59,304.2 | $ | 1,517,351.7 | $ | 1,887,802.9 | $ | (63,303.3 | ) | $ | 574.3 | $ | 120.6 | $ | — | $ | (62,608.4 | ) | $ | 2,149,259.8 | $ | 2,422.7 | $ | 2,151,682.5 | |||||||||||||||||||||||||||||
BALANCE, DECEMBER 31, 2021 (IN MILLIONS OF US$ - Note 3) | $ | 9,347.7 | $ | 2,334.6 | $ | 11,216.5 | $ | 2,137.9 | $ | 54,699.0 | $ | 68,053.4 | $ | (2,282.0 | ) | $ | 20.7 | $ | 04.3 | $ | — | $ | (2,257.0 | ) | $ | 77,478.7 | $ | 87.3 | $ | 77,566.0 | ||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(Note 3) | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
Income before income tax | $ | 396,161.9 | $ | 397,543.1 | $ | 389,862.1 | $ | 13,034.5 | ||||||||
Adjustments for: | ||||||||||||||||
Depreciation expense | 255,796.0 | 288,124.9 | 281,411.8 | 9,408.6 | ||||||||||||
Amortization expense | 4,346.7 | 4,421.4 | 5,472.4 | 183.0 | ||||||||||||
Expected credit losses recognized (reversal) on investments in debt instruments | — | (2.4 | ) | 1.7 | 0.1 | |||||||||||
Finance costs | 3,330.3 | 3,051.2 | 3,250.9 | 108.7 | ||||||||||||
Share of profits of associates | (3,014.8 | ) | (3,090.6 | ) | (2,861.0 | ) | (95.7 | ) | ||||||||
Interest income | (9,464.7 | ) | (14,694.4 | ) | (16,189.4 | ) | (541.2 | ) | ||||||||
Share-based compensation | — | — | 2.8 | 0.1 | ||||||||||||
Loss on disposal or retirement of property, plant and equipment, net | 1,097.9 | 1,005.6 | 950.0 | 31.8 | ||||||||||||
Loss (gain) on disposal of intangible assets, net | — | (0.4 | ) | 2.4 | 0.1 | |||||||||||
Impairment loss (reversal of impairment loss) on property, plant and equipment | — | 423.5 | (301.4 | ) | (10.1 | ) | ||||||||||
Impairment loss on intangible assets | 13.5 | — | — | — | ||||||||||||
Impairment loss on financial assets | 29.6 | — | — | — | ||||||||||||
Loss on financial instruments at fair value through profit or loss, net | — | 358.2 | 955.7 | 32.0 | ||||||||||||
Loss (gain) on disposal of investments in debt instruments at fair value through other comprehensive income, net | — | 989.1 | (537.8 | ) | (18.0 | ) | ||||||||||
Gain on disposal ofavailable-for-sale financial assets, net | (89.8 | ) | — | — | — | |||||||||||
Loss (gain) from disposal of subsidiaries | (17.3 | ) | — | 4.6 | 0.2 | |||||||||||
Unrealized (realized) gross profit on sales to associates | 4.6 | 111.8 | (3.4 | ) | (0.1 | ) | ||||||||||
Loss (gain) on foreign exchange, net | (9,118.6 | ) | 2,916.7 | (5,228.2 | ) | (174.8 | ) | |||||||||
Dividend income | (145.6 | ) | (158.4 | ) | (417.3 | ) | (14.0 | ) | ||||||||
Loss (gain) arising from fair value hedges, net | 30.3 | 2.3 | (13.1 | ) | (0.4 | ) | ||||||||||
Gain on lease modification | — | — | (2.1 | ) | (0.1 | ) | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Financial instruments at fair value through profit or loss | 5,645.1 | 480.1 | 848.8 | 28.4 | ||||||||||||
Notes and accounts receivable, net | 1,061.8 | (13,271.3 | ) | (18,119.6 | ) | (605.8 | ) | |||||||||
Receivables from related parties | (214.6 | ) | 599.7 | (277.7 | ) | (9.3 | ) | |||||||||
Other receivables from related parties | (13.9 | ) | 106.1 | 13.4 | 0.4 | |||||||||||
Inventories | (25,229.1 | ) | (29,370.0 | ) | 20,249.8 | 677.0 | ||||||||||
Other financial assets | (502.3 | ) | (4,601.3 | ) | 3,383.5 | 113.1 | ||||||||||
Other current assets | 12.1 | (513.0 | ) | (76.3 | ) | (2.6 | ) | |||||||||
Other noncurrent assets | (1,276.1 | ) | 152.6 | — | — | |||||||||||
Accounts payable | 2,572.1 | 4,540.6 | 5,860.1 | 195.9 | ||||||||||||
Payables to related parties | 394.2 | (279.9 | ) | 58.4 | 2.0 | |||||||||||
Salary and bonus payable | 582.1 | 216.5 | 1,800.9 | 60.2 | ||||||||||||
Accrued profit sharing bonus to employees and compensation to directors and supervisors | 525.1 | 562.0 | (332.2 | ) | (11.1 | ) | ||||||||||
Accrued expenses and other current liabilities | 30,435.4 | (20,226.4 | ) | (2,372.0 | ) | (79.3 | ) |
2019 | 2020 | 2021 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(Note 3) | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
Income before income tax | $ | 389,862.1 | $ | 584,746.3 | $ | 663,036.0 | $ | 23,901.8 | ||||||||
Adjustments for: | ||||||||||||||||
Depreciation expense | 281,411.8 | 324,538.4 | 414,187.7 | 14,931.1 | ||||||||||||
Amortization expense | 5,472.4 | 7,186.2 | 8,207.2 | 295.9 | ||||||||||||
Expected credit losses recognized (reversal) on investments in debt instruments | 1.7 | 3.7 | (2.7 | ) | (0.1 | ) | ||||||||||
Finance costs | 3,250.9 | 2,081.5 | 5,414.2 | 195.2 | ||||||||||||
Share of profits of associates | (2,861.0 | ) | (3,562.0 | ) | (5,512.7 | ) | (198.7 | ) | ||||||||
Interest income | (16,189.4 | ) | (9,018.4 | ) | (5,708.8 | ) | (205.8 | ) | ||||||||
Share-based compensation | 2.8 | 6.6 | 7.8 | 0.3 | ||||||||||||
Loss (gain) on disposal or retirement of property, plant and equipment, net | 950.0 | (188.9 | ) | 273.6 | 9.9 | |||||||||||
Loss on disposal or retirement of intangible assets, net | 2.4 | 0.6 | 1.2 | — | ||||||||||||
Impairment loss (reversal of impairment loss) on property, plant and equipment | (301.4 | ) | 10.2 | 274.4 | 9.9 | |||||||||||
Loss (gain) on financial instruments at fair value through profit or loss, net | 955.7 | (3.0 | ) | — | — | |||||||||||
Gain on disposal of investments in debt instruments at fair value through other comprehensive income, net | (537.8 | ) | (1,439.4 | ) | (93.2 | ) | (3.4 | ) | ||||||||
Loss from disposal of subsidiaries | 4.6 | — | — | — | ||||||||||||
Gain on foreign exchange, net | (5,228.2 | ) | (1,372.6 | ) | (16,115.9 | ) | (581.0 | ) | ||||||||
Dividend income | (417.3 | ) | (637.6 | ) | (362.3 | ) | (13.1 | ) | ||||||||
Gain arising from fair value hedges, net | (13.1 | ) | — | — | — | |||||||||||
Others | (5.5 | ) | 13.5 | (414.2 | ) | (15.0 | ) | |||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Financial instruments at fair value through profit or loss | 848.8 | (2,965.2 | ) | 2,649.2 | 95.5 | |||||||||||
Notes and accounts receivable, net | (18,119.6 | ) | (8,082.7 | ) | (52,105.9 | ) | (1,878.4 | ) | ||||||||
Receivables from related parties | (277.7 | ) | 304.0 | (157.2 | ) | (5.7 | ) | |||||||||
Other receivables from related parties | 13.4 | 7.6 | (10.9 | ) | (0.4 | ) | ||||||||||
Inventories | 20,249.8 | (54,372.2 | ) | (55,748.9 | ) | (2,009.7 | ) | |||||||||
Other financial assets | 3,383.5 | 1,389.5 | (8,236.9 | ) | (296.9 | ) | ||||||||||
Other current assets | (76.3 | ) | (1,358.1 | ) | (3,899.0 | ) | (140.6 | ) | ||||||||
Accounts payable | 5,860.1 | 404.6 | 8,298.3 | 299.2 | ||||||||||||
Payables to related parties | 58.4 | 672.8 | (670.5 | ) | (24.2 | ) | ||||||||||
Salary and bonus payable | 1,800.9 | 3,798.9 | 3,730.9 | 134.5 | ||||||||||||
Accrued profit sharing bonus to employees and compensation to directors and supervisors | (332.2 | ) | 12,032.1 | 843.7 | 30.4 | |||||||||||
Accrued expenses and other current liabilities | (2,372.0 | ) | 20,617.4 | 84,322.7 | 3,039.8 | |||||||||||
Other noncurrent liabilities | — | — | 154,086.0 | 5,554.7 | ||||||||||||
Net defined benefit liability | (215.0 | ) | (785.2 | ) | (635.2 | ) | (22.9 | ) | ||||||||
Cash generated from operations | 667,182.8 | 874,028.6 | 1,195,658.6 | 43,102.3 | ||||||||||||
Income taxes paid | (52,044.1 | ) | (51,362.4 | ) | (83,497.9 | ) | (3,010.0 | ) | ||||||||
Net cash generated by operating activities | 615,138.7 | 822,666.2 | 1,112,160.7 | 40,092.3 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(Note 3) | ||||||||||||||||
Provisions | $ | (4,057.9 | ) | $ | — | $ | — | $ | — | |||||||
Net defined benefit liability | 44.6 | (60.5 | ) | (215.0 | ) | (7.2 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Cash generated from operations | 648,938.6 | 619,336.8 | 667,182.8 | 22,306.4 | ||||||||||||
Income taxes paid | (63,620.4 | ) | (45,382.5 | ) | (52,044.1 | ) | (1,740.0 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash generated by operating activities | 585,318.2 | 573,954.3 | 615,138.7 | 20,566.4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
Acquisitions of: | ||||||||||||||||
Financial instruments at fair value through profit or loss | — | (310.5 | ) | (124.7 | ) | (4.2 | ) | |||||||||
Financial assets at fair value through other comprehensive income | — | (96,412.8 | ) | (257,558.2 | ) | (8,611.1 | ) | |||||||||
Available-for-sale financial assets | (101,824.0 | ) | — | — | — | |||||||||||
Held-to maturity financial assets | (1,997.1 | ) | — | — | — | |||||||||||
Financial assets at amortized cost | — | (2,294.1 | ) | (313.9 | ) | (10.5 | ) | |||||||||
Property, plant and equipment | (330,588.2 | ) | (315,581.9 | ) | (460,422.2 | ) | (15,393.6 | ) | ||||||||
Intangible assets | (4,480.6 | ) | (7,100.3 | ) | (9,329.9 | ) | (311.9 | ) | ||||||||
Land use right | (819.7 | ) | — | — | — | |||||||||||
Proceeds from disposal or redemption of: | ||||||||||||||||
Financial instruments at fair value through profit or loss - debt instruments | — | 487.2 | 2,418.2 | 80.9 | ||||||||||||
Financial assets at fair value through other comprehensive income | — | 86,639.3 | 230,444.5 | 7,704.6 | ||||||||||||
Available-for-sale financial assets | 69,538.9 | — | — | — | ||||||||||||
Held-to maturity financial assets | 17,980.6 | — | — | — | ||||||||||||
Financial assets at amortized cost | — | 2,032.4 | 14,349.2 | 479.7 | ||||||||||||
Property, plant and equipment | 326.2 | 181.5 | 287.3 | 9.6 | ||||||||||||
Intangible assets | — | 0.5 | — | — | ||||||||||||
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income | — | 127.9 | 1.1 | — | ||||||||||||
Proceeds from return of capital ofavailable-for-sale financial assets | 14.8 | — | — | — | ||||||||||||
Derecognition of hedging derivative financial instruments | 33.0 | — | — | — | ||||||||||||
Derecognition of hedging financial instruments | — | 250.5 | (436.6 | ) | (14.6 | ) | ||||||||||
Interest received | 9,526.3 | 14,660.4 | 16,875.0 | 564.2 | ||||||||||||
Proceeds from government grants - property, plant and equipment | 2,629.8 | — | 2,565.3 | 85.8 | ||||||||||||
Proceeds from government grants - land use right and others | 1.8 | — | 850.6 | 28.4 | ||||||||||||
Cash outflow from disposal of subsidiary | (4.1 | ) | — | — | — | |||||||||||
Other dividends received | 145.6 | 158.4 | 320.2 | 10.7 | ||||||||||||
Dividends received from investments accounted for using equity method | 4,245.8 | 3,262.9 | 1,719.0 | 57.5 | ||||||||||||
Refundable deposits paid | (1,327.0 | ) | (2,227.5 | ) | (1,465.8 | ) | (49.0 | ) | ||||||||
Refundable deposits refunded | 433.0 | 1,857.2 | 1,019.3 | 34.1 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash used in investing activities | (336,164.9 | ) | (314,268.9 | ) | (458,801.6 | ) | (15,339.4 | ) | ||||||||
|
|
|
|
|
|
|
|
(Continued)
2019 | 2020 | 2021 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(Note 3) | ||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
Acquisitions of: | ||||||||||||||||
Financial instruments at fair value through profit or loss - debt instruments | $ | (124.7 | ) | $ | — | $ | — | $ | — | |||||||
Financial assets at fair value through other comprehensive income | (257,558.2 | ) | (262,637.5 | ) | (255,888.7 | ) | (9,224.5 | ) | ||||||||
Financial assets at amortized cost | (313.9 | ) | (4,302.8 | ) | (3,799.7 | ) | (137.0 | ) | ||||||||
Property, plant and equipment | (460,422.2 | ) | (507,238.7 | ) | (839,195.7 | ) | (30,252.2 | ) | ||||||||
Intangible assets | (9,329.9 | ) | (9,542.4 | ) | (9,040.7 | ) | (325.9 | ) | ||||||||
Proceeds from disposal or redemption of: | ||||||||||||||||
Financial instruments at fair value through profit or loss - debt instruments | 2,418.2 | 30.0 | — | — | ||||||||||||
Financial assets at fair value through other comprehensive income | 230,444.5 | 266,931.9 | 254,604.5 | 9,178.2 | ||||||||||||
Financial assets at amortized cost | 14,349.2 | 285.2 | 9,368.3 | 337.7 | ||||||||||||
Property, plant and equipment | 287.3 | �� | 606.7 | 390.4 | 14.1 | |||||||||||
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income | 1.1 | 51.1 | 115.6 | 4.2 | ||||||||||||
Derecognition of hedging financial instruments | (436.6 | ) | (308.8 | ) | 276.3 | 10.0 | ||||||||||
Interest received | 16,875.0 | 9,775.1 | 5,990.9 | 216.0 | ||||||||||||
Proceeds from government grants - property, plant and equipment | 2,565.3 | 1,044.3 | 821.3 | 29.6 | ||||||||||||
Proceeds from government grants - land use right and others | 850.6 | 25.4 | 6.6 | 0.2 | ||||||||||||
Other dividends received | 320.2 | 735.1 | 362.3 | 13.1 | ||||||||||||
Dividends received from investments accounted for using equity method | 1,719.0 | 2,752.1 | 2,136.4 | 77.0 | ||||||||||||
Increase in prepayments for leases | — | (4,693.4 | ) | (1,200.0 | ) | (43.3 | ) | |||||||||
Refundable deposits paid | (1,465.8 | ) | (726.9 | ) | (1,997.3 | ) | (72.0 | ) | ||||||||
Refundable deposits refunded | 1,019.3 | 1,431.9 | 683.7 | 24.6 | ||||||||||||
Net cash used in investing activities | (458,801.6 | ) | (505,781.7 | ) | (836,365.8 | ) | (30,150.2 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
Increase (decrease) in short-term loans | 31,804.3 | (31,571.6 | ) | 35,668.4 | 1,285.8 | |||||||||||
Proceeds from short-term bills payable | — | 7,485.3 | — | — | ||||||||||||
Repayments of short-term bills payable | — | (7,500.0 | ) | — | — | |||||||||||
Proceeds from issuance of bonds | — | 236,725.7 | 364,592.8 | 13,143.2 | ||||||||||||
Repayment of bonds | (34,900.0 | ) | (31,800.0 | ) | (2,600.0 | ) | (93.7 | ) | ||||||||
Proceeds from long-term bank loans | — | 2,000.0 | 1,510.0 | 54.5 | ||||||||||||
Payments for transaction costs attributable to the issuance of bonds | — | (390.7 | ) | (737.7 | ) | (26.6 | ) | |||||||||
Repayment of the principal portion of lease liabilities | (2,930.6 | ) | (2,615.7 | ) | (1,985.3 | ) | (71.6 | ) | ||||||||
Interest paid | (3,597.1 | ) | (1,781.1 | ) | (3,833.6 | ) | (138.2 | ) | ||||||||
Guarantee deposits received | 62.2 | 145.6 | 469.0 | 16.9 | ||||||||||||
Guarantee deposits refunded | (701.3 | ) | (16.1 | ) | (36.8 | ) | (1.3 | ) | ||||||||
Cash dividends | (259,303.8 | ) | (259,303.8 | ) | (265,786.4 | ) | (9,581.3 | ) | ||||||||
Disposal of ownership interests in subsidiaries (without losing control) | — | — | 9,451.8 | 340.7 | ||||||||||||
Donation from shareholders | 4.0 | 7.3 | 11.3 | 0.4 | ||||||||||||
Decrease in non-controlling interests | (75.9 | ) | — | (115.0 | ) | (4.2 | ) | |||||||||
Net cash generated by (used in) financing activities | (269,638.2 | ) | (88,615.1 | ) | 136,608.5 | 4,924.6 | ||||||||||
(Continued) |
2017 | 2018 | 2019 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(Note 3) | ||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
Increase in short-term loans | $ | 10,394.3 | $ | 23,923.0 | $ | 31,804.3 | $ | 1,063.3 | ||||||||
Repayment of bonds | (38,100.0 | ) | (58,024.9 | ) | (34,900.0 | ) | (1,166.8 | ) | ||||||||
Repayment of long-term bank loans | (31.4 | ) | — | — | — | |||||||||||
Repayment of the principal portion of lease liabilities | — | — | (2,930.6 | ) | (98.0 | ) | ||||||||||
Interest paid | (3,482.7 | ) | (3,233.4 | ) | (3,597.1 | ) | (120.3 | ) | ||||||||
Guarantee deposits received | 950.9 | 1,668.9 | 62.2 | 2.1 | ||||||||||||
Guarantee deposits refunded | (3,823.2 | ) | (1,948.1 | ) | (701.3 | ) | (23.4 | ) | ||||||||
Cash dividends | (181,512.7 | ) | (207,443.0 | ) | (259,303.8 | ) | (8,669.5 | ) | ||||||||
Donation from shareholders | 20.9 | 10.1 | 4.0 | 0.1 | ||||||||||||
Decrease innon-controlling interests | (113.7 | ) | (77.4 | ) | (75.9 | ) | (2.5 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net cash used in financing activities | (215,697.6 | ) | (245,124.8 | ) | (269,638.2 | ) | (9,015.0 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (21,317.8 | ) | 9,862.3 | (9,114.2 | ) | (304.7 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 12,137.9 | 24,422.9 | (122,415.3 | ) | (4,092.7 | ) | ||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 541,253.8 | 553,391.7 | 577,814.6 | 19,318.4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 553,391.7 | $ | 577,814.6 | $ | 455,399.3 | $ | 15,225.7 | ||||||||
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of the consolidated financial statements.
(Concluded)
2019 | 2020 | 2021 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(Note 3) | ||||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | $ | (9,114.2 | ) | $ | (23,498.1 | ) | $ | (7,583.8 | ) | $ | (273.3 | ) | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (122,415.3 | ) | 204,771.3 | 404,819.6 | 14,593.4 | |||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 577,814.6 | 455,399.3 | 660,170.6 | 23,798.5 | ||||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 455,399.3 | $ | 660,170.6 | $ | 1,064,990.2 | $ | 38,391.9 | ||||||||
The accompanying notes are an integral part of the consolidated financial statements. | (Concluded) |
1. | GENERAL |
2. | THE AUTHORIZATION OF FINANCIAL STATEMENTS |
3. | U.S. DOLLAR AMOUNTS |
4. | APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS), INTERNATIONAL ACCOUNTING STANDARDS (IAS), IFRIC INTERPRETATIONS (IFRIC), AND SIC INTERPRETATIONS (SIC) ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) (collectively, “IFRSs”). |
a. | Amendments to IFRSs and the new interpretation that are mandatorily effective for the current year |
New, Revised or Amended Standards and Interpretations | Effective Date Issued by IASB | |
| ||
Amendments to | January 1, | |
Amendment to IFRS “Covid-19-Related | ||
| ||
| ||
| ||
|
F - 12
The Company shall apply these amendments |
Except for the following,
Note 2: | The Company shall apply these amendments for annual reporting periods beginning on or after April 1, 2021. The Company has early adopted the amendments on January 1, 2021. |
|
IFRS 16 sets out the accounting standards for leases that supersedes IAS 17 “Leases”, IFRIC 4 “Determining whether an Arrangement contains a Lease”, and a number of related interpretations. Refer to Note 5 for information relating to the relevant accounting policies.
Definition of a lease
The Company applies the guidance of IFRS 16 in determining whether contracts are, or contain, a lease only to contracts entered into (or changed) on or after January 1, 2019. Contracts identified as containing a lease under IAS 17 and IFRIC 4 are not reassessed and are accounted for in accordance with the transitional provisions under IFRS 16.
The Company as lessee
Except for payments for short-term leases which are recognized as expenses on a straight-line basis, the Company recognizesright-of-use assets and lease liabilities for all leases on the consolidated statements of financial position. On the consolidated statements of profit or loss and other comprehensive income, the Company presents the depreciation expense charged onright-of-use assets separately from the interest expense accrued on lease liabilities, which is computed using the effective interest method. On the consolidated statements of cash flows, cash payments for both the principal portion and the interest portion of lease liabilities are classified within financing activities.
The Company applies IFRS 16 retrospectively with the cumulative effect of the initial application recognized at the date of initial application but does not restate comparative information.
Leases agreements classified as operating leases under IAS 17, except for short-term leases, are measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate on January 1, 2019.Right-of-use assets are measured at an amount equal to the lease liabilities, adjusted by the amount of any prepaid or accrued lease payments.Right-of-use assets are subject to impairment testing under IAS 36.
The Company applied the following practical expedients to measureright-of-use assets and lease liabilities on January 1, 2019 :
|
|
|
|
F - 13
The weighted average lessee’s incremental borrowing rate used by the Company to calculate lease liabilities recognized on January 1, 2019 is 1.46%. The reconciliation between the lease liabilities recognized and the future minimum lease payments ofnon-cancellable operating lease on December 31, 2018 is presented as follows:
NT$ | ||||
(In Millions) | ||||
The future minimum lease payments ofnon-cancellable operating lease on December 31, 2018 | $ | 20,849.6 | ||
Less: Recognition exemption for short-term leases | (3,189.8 | ) | ||
|
| |||
Undiscounted gross amounts on January 1, 2019 | $ | 17,659.8 | ||
|
| |||
Discounted using the incremental borrowing rate on January 1, 2019 | $ | 16,465.6 | ||
Add: Adjustments as a result of a different treatment of extension and purchase options | 3,438.0 | |||
|
| |||
Lease liabilities recognized on January 1, 2019 | $ | 19,903.6 | ||
|
|
The Company as lessor
Except for sublease transactions, the Company does not make any adjustments for leases in which it is a lessor, and accounts for those leases under IFRS 16 starting from January 1, 2019. On the basis of the remaining contractual terms and conditions on January 1, 2019, all of the Company’s subleases are classified as operating leases.
Impact on assets, liabilities and equity on January 1, 2019
Carrying Amount as of December 31, 2018 | Adjustments Arising from Initial Application | Adjusted Carrying Amount as of January 1, 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Other current assets | $ | 5,406.4 | $ | (118.2 | ) | $ | 5,288.2 | |||||
Right-of-use assets | — | 20,082.9 | 20,082.9 | |||||||||
Other noncurrent assets | 1,584.6 | (77.2 | ) | 1,507.4 | ||||||||
|
| |||||||||||
Total effect on assets | $ | 19,887.5 | ||||||||||
|
| |||||||||||
Accrued expenses and other current liabilities | 61,760.6 | $ | 2,627.4 | 64,388.0 | ||||||||
Lease liabilities - noncurrent | — | 17,269.3 | 17,269.3 | |||||||||
Other noncurrent liabilities | 1,951.0 | (9.2 | ) | 1,941.8 | ||||||||
|
| |||||||||||
Total effect on liabilities | $ | 19,887.5 | ||||||||||
|
| |||||||||||
Total effect on equity | $ | — | ||||||||||
|
|
F - 14
b. | New and revised standards, amendments and interpretations in issue but not yet effective |
New, Revised or Amended Standards and Interpretations | Effective Date Issued by IASB | |
Annual Improvements to IFRS | January 1, | |
Amendments to IFRS | January 1, | |
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” | To be determined by IASB | |
| ||
Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” | January 1, 2023 | |
Amendments to IAS 1 “Disclosure of Accounting Policies” | January 1, 2023 | |
Amendments to IAS 8 “Definition of Accounting Estimates” | January 1, 2023 | |
Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction” | January 1, 2023 | |
Amendments to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” | January 1, 2022 | |
Amendments to IAS 37 “Onerous Contracts–Cost of Fulfilling a Contract” | January 1, 2022 |
|
|
|
5. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
F - 15
a. | the aggregate of the fair value of consideration received and the fair value of any retained interest at the date when control is lost; and |
b. | the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interest. |
Percentage of Ownership | ||||||||||||
Name of Investor | Name of Investee | Main Businesses and Products | Establishment and Operating Location | December 31, 2018 | December 31, 2019 | Note | ||||||
TSMC | TSMC North America | Selling and marketing of integrated circuits and other semiconductor devices | San Jose, California, U.S.A. | 100% | 100% | — | ||||||
TSMC Europe B.V. (TSMC Europe) | Customer service and supporting activities | Amsterdam, the Netherlands | 100% | 100% | a) | |||||||
TSMC Japan Limited (TSMC Japan) | Customer service and supporting activities | Yokohama, Japan | 100% | 100% | a) | |||||||
TSMC Korea Limited (TSMC Korea) | Customer service and supporting activities | Seoul, Korea | 100% | 100% | a) | |||||||
TSMC Partners, Ltd. (TSMC Partners) | Investing in companies involved in the design, manufacture, and other related business in the semiconductor industry and other investment activities | Tortola, British Virgin Islands | 100% | 100% | a) | |||||||
TSMC Global, Ltd. (TSMC Global) | Investment activities | Tortola, British Virgin Islands | 100% | 100% | — | |||||||
TSMC China Company Limited (TSMC China) | Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices | Shanghai, China | 100% | 100% | — | |||||||
TSMC Nanjing Company Limited (TSMC Nanjing) | Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices | Nanjing, China | 100% | 100% | b) | |||||||
VisEra Technologies Company Ltd. (VisEra Tech) | Engaged in manufacturing electronic spare parts and in researching, developing, designing, manufacturing, selling, packaging and testing of color filter | Hsin-Chu, Taiwan | 87% | 87% | — | |||||||
VentureTech Alliance Fund II, L.P. (VTAF II) | Investing in newstart-up technology companies | Cayman Islands | 98% | 98% | a) | |||||||
VentureTech Alliance Fund III, L.P. (VTAF III) | Investing in newstart-up technology companies | Cayman Islands | 98% | 98% | a) | |||||||
TSMC Solar Europe GmbH | Selling of solar related products and providing customer service | Hamburg, Germany | 100% | — | a) , c) |
Percentage of Ownership | ||||||||||||
Name of Investor | Name of Investee | Main Businesses and Products | Establishment and Operating Location | December 31, 2020 | December 31, 2021 | Note | ||||||
TSMC | TSMC North America | Sales and marketing of integrated circuits and other semiconductor devices | San Jose, California, U.S.A. | 100% | 100% | — | ||||||
TSMC Europe B.V. (TSMC Europe) | Customer service and supporting activities | Amsterdam, the Netherlands | 100% | 100% | a) | |||||||
TSMC Japan Limited (TSMC Japan) | Customer service and supporting activities | Yokohama, Japan | 100% | 100% | a) | |||||||
TSMC Design Technology Japan, Inc. (TSMC JDC) | Engineering support activities | Yokohama, Japan | 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% | 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% | a) | |||||||
TSMC Global, Ltd. (TSMC Global) | Investment activities | Tortola, British Virgin Islands | 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% | — | |||||||
TSMC Nanjing Company Limited (TSMC Nanjing) | Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices | Nanjing, China | 100% | 100% | — |
Percentage of Ownership | ||||||||||||
Name of Investor | Name of Investee | Main Businesses and Products | Establishment and Operating Location | December 31, 2018 | December 31, 2019 | Note | ||||||
TSMC Partners | TSMC Development, Inc. (TSMC Development) | Investing in companies involved in the manufacturing related business in the semiconductor industry | Delaware, U.S.A. | 100% | 100% | — | ||||||
TSMC Technology, Inc. (TSMC Technology) | Engineering support activities | Delaware, U.S.A. | 100% | 100% | a) | |||||||
TSMC Design Technology Canada Inc. (TSMC Canada) | Engineering support activities | Ontario, Canada | 100% | 100% | a) | |||||||
InveStar Semiconductor Development Fund, Inc. (ISDF) | Investing in newstart-up technology companies | Cayman Islands | 97% | 97% | a) , d) | |||||||
InveStar Semiconductor Development Fund, Inc. (II) LDC. (ISDF II) | Investing in newstart-up technology companies | Cayman Islands | 97% | 97% | a) , d) | |||||||
TSMC Development | WaferTech, LLC (WaferTech) | Manufacturing, selling and testing of integrated circuits and other semiconductor devices | Washington, U.S.A. | 100% | 100% | — | ||||||
VTAF III | Growth Fund Limited (Growth Fund) | Investing in newstart-up technology companies | Cayman Islands | 100% | 100% | a) |
Percentage of Ownership | ||||||||||||
Name of Investor | Name of Investee | Main Businesses and Products | Establishment and Operating Location | December 31, 2020 | December 31, 2021 | Note | ||||||
TSMC | VisEra Technologies Company Ltd. (VisEra Tech) | Research, design, development, manufacturing, sales, packaging and test of color filter | Hsin-Chu , | 87% | 73% | c) | ||||||
TSMC Arizona Corporation (TSMC Arizona) | Manufacturing, sales and testing of integrated circuits and other semiconductor devices | Phoenix, Arizona, U.S.A . | 100% | 100% | d) | |||||||
Japan Advanced Semiconductor Manufacturing, Inc. (JASM) | Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor device | Kumamoto, Japan | — | 100% | a), e) | |||||||
VentureTech Alliance Fund II, L.P. (VTAF II) | Investing in technology start-up companies | Cayman Islands | 98% | 98% | a) | |||||||
VentureTech Alliance Fund III, L.P. (VTAF III) | Investing in technology start-up companies | Cayman Islands | 98% | 98% | a) | |||||||
Emerging Fund L.P. (Emerging Fund) | Investing in technology start-up companies | Cayman Islands | — | 99.9% | a), f) | |||||||
TSMC Partners | TSMC Development, Inc. (TSMC Development) | Investing in companies involved in semiconductor manufacturing | Delaware, U.S.A. | 100% | 100% | — | ||||||
TSMC Technology, Inc. (TSMC Technology) | Engineering support activities | Delaware, U.S.A. | 100% | 100% | a) | |||||||
TSMC Design Technology Canada Inc. (TSMC Canada) | Engineering support activities | Ontario, Canada | 100% | 100% | a) | |||||||
TSMC Development | WaferTech, LLC (WaferTech) | Manufacturing, sales and testing of integrated circuits and other semiconductor devices | Washington, U.S.A. | 100% | 100% | — | ||||||
VTAF III | Growth Fund Limited (Growth Fund) | Investing in technology start-up companies | Cayman Islands | 100% | 100% | a) |
Note a: | This is an immaterial subsidiary for which the consolidated financial statements are not audited by the Company’s independent auditors. |
Note b: |
TSMC 3DIC is established in |
Note c: | To facilitate VisEra’s IPO in Taiwan, 39.5 million common shares of VisEra at a price of NT$240 were sold by TSMC |
Note d: |
Under the terms of the development agreement entered into between TSMC Arizona and the City of Phoenix, the City of Phoenix commits approximately US$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: | JASM is |
Note f: | Emerging fund is established in January 2021. |
F - 17
a. | Category of financial assets and measurement |
2017
Financial assets are classified into the following specified categories: Financial assets at FVTPL,available-for-sale financial assets,held-to-maturity financial assets and loans and receivables.
|
Financial assets are classified as at fair value through profit or loss when the financial asset is either held for trading or it is designated as at fair value through profit or loss.
Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss.
|
Available-for-sale financial assets arenon-derivative financial assets that are either designated asavailable-for-sale or are not classified as (a) loans and receivables,(b) held-to-maturity financial assets or (c) financial assets at fair value through profit or loss.
Available-for-sale financial assets are measured at fair value. Interest income fromavailable-for-sale monetary financial assets and dividends onavailable-for-sale equity investments are recognized in profit or loss. Other changes in the carrying amount ofavailable-for-sale financial assets are recognized in other comprehensive income. When the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognized in other comprehensive income is reclassified to profit or loss.
Dividends onavailable-for-sale equity instruments are recognized in profit or loss when the Company’s right to receive the dividends is established.
F - 18
Available-for-sale equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost less any identified impairment losses at the end of each reporting period. Such equity instruments are subsequently remeasured at fair value when their fair value can be reliably measured, and the difference between the carrying amount and fair value is recognized in profit or loss or other comprehensive income.
|
Held-to-maturity investments arenon-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Company has the positive intent and ability to hold to maturity. Subsequent to initial recognition,held-to-maturity financial assets are measured at amortized cost using the effective interest method less any impairment.
|
Loans and receivables arenon-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables including cash and cash equivalents, notes and accounts receivable and other receivables are measured at amortized cost using the effective interest method, less any impairment, except for those loans and receivables with immaterial discounted effect.
2018 and 2019
1) | Financial asset at FVTPL |
2) | Investments in debt instruments at FVTOCI |
3) | Investments in equity instruments at FVTOCI |
F - 19
4) | Measured at amortized cost |
b. | Impairment of financial assets |
2017
Financial assets, other than those carried at FVTPL, are assessed for indicators of impairment at the end of each reporting period. Those financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial assets, their estimated future cash flows have been affected.
For financial assets carried at amortized cost, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. The Company assesses the collectability of receivables by performing the account aging analysis and examining current trends in the credit quality of its customers.
For financial assets carried at amortized cost, the amount of the impairment loss is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets measured at amortized cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the financial assets at the date the impairment loss is reversed does not exceed what the amortized cost would have been had the impairment loss not been recognized.
When anavailable-for-sale financial asset is considered to be impaired, cumulative gains or losses previously recognized in other comprehensive income are reclassified to profit or loss in the year.
In respect ofavailable-for-sale equity instruments, impairment losses previously recognized in profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to the recognition of an impairment loss is recognized in other comprehensive income and accumulated under the heading of unrealized gains or losses fromavailable-for-sale financial assets.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account.
F - 20
2018 and 2019
c. | Derecognition of financial assets |
2017
On derecognition
F - 21
Financial Instruments Designated as at Fair Value through Profit or Loss
A financial instrument may be designated as at FVTPL upon initial recognition. The financial instrument forms part
a. | Fair value hedge |
F - 22
b. | Cash flow hedge |
2017
Hedge accounting was discontinued prospectively when the Company revoked the designated hedging relationship, when the hedging instrument expired or was sold, terminated, or exercised; or no longer met the criteria for hedge accounting.
2018 and 2019
F - 23
The Company discontinues the use of the equity method from the date when the Company ceases to have significant influence over an associate. When the Company retains an interest in the former associate, the Company measures the retained interest at fair value at that date. The difference between the carrying amount of the associate at the date the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest in the associate is included in the determination of the gain or loss on disposal of the associate. In addition, the Company shall account for all amounts recognized in other comprehensive income in relation to that associate on the same basis as would be required if the associate had directly disposed of the related assets or liabilities. If the Company’s ownership interest in an associate is reduced as a result of disposal, but the investment continues to be an associate, the Company should reclassify to profit or loss only a proportionate amount of the gain or loss previously recognized in other comprehensive income.
equipment or borrowing costs eligible for capitalization.
2017 and 2018
Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
F - 24
The Company as lessor
Rental income from operating leases is recognized on a straight-line basis over the term of the lease.
The Company as lessee
Operating lease payments are recognized as an expense on a straight-line basis over the lease term.
2019
For a contract that contains a lease component and
F - 25
F - 26
Provision
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
Guarantee Deposit
Guarantee deposit mainly consists of cash received under deposit agreements with customers to ensure they have access to the Company’s specified capacity; and as guarantee of accounts receivable to ensure payment from customers. Cash received from customers is recorded as guarantee deposit upon receipt. Guarantee deposits are refunded to customers when terms and conditions set forth in the deposit agreements have been satisfied.
2017
Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Revenue from the sale of goods is recognized when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:
The Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
The amount of revenue can be measured reliably;
It is probable that the economic benefits associated with the transaction will flow to the Company; and
The costs incurred or to be incurred in respect of the transaction can be measured reliably.
In principle, payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month of when the invoice is issued. Due to the short term nature of the receivables from sale of goods with the immaterial discounted effect, the Company measures them at the original invoice amounts without discounting.
Dividend and interest income
Dividend income from investments is recognized when the shareholder’s right to receive payment has been established, provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.
F - 27
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.
2018 and 2019
The Company recognizes revenue when performance obligations are satisfied. The performance obligations are satisfied when customers obtain control of the promised goods, which is generally when the goods are delivered to the customers’ specified locations.
liabilities
F - 28
6. | CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY |
F - 29
F - 30
7. | CASH AND CASH EQUIVALENTS |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Cash and deposits in banks | $ | 575,825.5 | $ | 452,734.4 | ||||
Government bonds | — | 2,188.1 | ||||||
Commercial paper | 759.5 | 476.8 | ||||||
Repurchase agreements collateralized by corporate bonds | 1,229.6 | — | ||||||
|
|
|
| |||||
$ | 577,814.6 | $ | 455,399.3 | |||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Cash and deposits in banks | $ | 653,580.6 | $ | 1,058,808.1 | ||||
Repurchase agreements | 1,750.4 | 5,275.3 | ||||||
Government bonds | 3,716.1 | 906.8 | ||||||
Commercial paper | 1,123.5 | 0 | ||||||
$ | 660,170.6 | $ | 1,064,990.2 | |||||
8. | FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Financial assets | ||||||||
Mandatorily measured at FVTPL | ||||||||
Forward exchange contracts | $ | 85.3 | $ | 162.1 | ||||
Convertible bonds | — | 123.8 | ||||||
Agency mortgage-backed securities | 3,419.3 | 40.9 | ||||||
|
|
|
| |||||
$ | 3,504.6 | $ | 326.8 | |||||
|
|
|
| |||||
Financial liabilities | ||||||||
Held for trading | ||||||||
Forward exchange contracts | $ | 40.8 | $ | 982.3 | ||||
|
|
|
|
F - 31
$ 2,259.4 $ 159.0 $ 94.1 $ 681.9
Maturity Date | Contract Amount
| |||||
| ||||||
| ||||||
| ||||||
Sell NT$ | January | NT$144,698.0 | ||||
Sell US$ | January 2021 to March 2021 | US$1,176.9 | ||||
December 31, 2021 | ||||||
Sell | January | NT$132,734.5 | ||||
Sell US$ | January 2022 to March 2022 | US$ | ||||
| ||||||
| ||||||
| ||||||
| ||||||
| ||||||
| ||||||
| ||||||
| ||||||
| ||||||
| ||||||
| 2,009.1 |
9. | FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Investments in debt instruments at FVTOCI | ||||||||
Agency bonds/Agency mortgage-backed securities | $ | 31,288.8 | $ | 51,966.5 | ||||
Corporate bonds | 40,753.6 | 51,790.0 | ||||||
Government bonds | 11,151.3 | 12,824.2 | ||||||
Asset-backed securities | 15,670.3 | 10,815.9 | ||||||
Commercial paper | 107.6 | — | ||||||
|
|
|
| |||||
98,971.6 | 127,396.6 | |||||||
|
|
|
| |||||
Investments in equity instruments at FVTOCI | ||||||||
Non-publicly traded equity investments | 3,910.7 | 4,124.3 | ||||||
Publicly traded stocks | 590.1 | — | ||||||
|
|
|
| |||||
4,500.8 | 4,124.3 | |||||||
|
|
|
| |||||
$ | 103,472.4 | $ | 131,520.9 | |||||
|
|
|
| |||||
Current | $ | 99,561.7 | $ | 127,396.6 | ||||
Noncurrent | 3,910.7 | 4,124.3 | ||||||
|
|
|
| |||||
$ | 103,472.4 | $ | 131,520.9 | |||||
|
|
|
|
F - 32
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Investments in debt instruments at FVTOCI | ||||||||
Corporate bonds | $ | 56,593.6 | $ | 57,253.2 | ||||
Agency bonds/Agency mortgage-backed securities | 43,977.1 | 32,070.1 | ||||||
Government bonds | 13,459.5 | 21,345.8 | ||||||
Asset-backed securities | 8,368.3 | 8,660.4 | ||||||
122,398.5 | 119,329.5 | |||||||
Investments in equity instruments at FVTOCI | ||||||||
Non-publicly traded equity investments | 4,514.9 | 5,887.9 | ||||||
Publicly traded stocks | 50.0 | 189.8 | ||||||
4,564.9 | 6,077.7 | |||||||
$ | 126,963.4 | $ | 125,407.2 | |||||
Current | $ | 122,448.5 | $ | 119,519.3 | ||||
Noncurrent | 4,514.9 | 5,887.9 | ||||||
$ | 126,963.4 | $ | 125,407.2 | |||||
For the years ended December 31, 2018 and 2019, as the Company adjusted its investment portfolio or thenon-publicly traded investee was merged, equity investments designated at FVTOCI were divested for NT$840.6 million and NT$873.5 million, respectively. The related other equity-unrealized gain/loss on financial assets at FVTOCI of NT$1,193.1 million and NT$156.8 million were transferred to decrease and increase retained earnings, respectively.
For dividends recognized from equitythese investments, designated as at FVTOCI recognized, please refer to Note 26.consolidated statements of cash flows. All of the dividends are from investments held at the end of the reporting period.
10. | FINANCIAL ASSETS AT AMORTIZED COST |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Corporate bonds | $ | 19,520.0 | $ | 7,651.7 | ||||
Commercial paper | 2,294.1 | — | ||||||
Less: Allowance for impairment loss | (8.2 | ) | (2.9 | ) | ||||
|
|
|
| |||||
$ | 21,805.9 | $ | 7,648.8 | |||||
|
|
|
| |||||
Current | $ | 14,277.6 | $ | 299.9 | ||||
Noncurrent | 7,528.3 | 7,348.9 | ||||||
|
|
|
| |||||
$ | 21,805.9 | $ | 7,648.8 | |||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Corporate bonds | $ | 10,977.3 | $ | 5,310.1 | ||||
Less: Allowance for impairment loss | (7.1 | ) | (3.1 | ) | ||||
$ | 10,970.2 | $ | 5,307.0 | |||||
Current | $ | 6,598.0 | $ | 3,773.6 | ||||
Noncurrent | 4,372.2 | 1,533.4 | ||||||
$ | 10,970.2 | $ | 5,307.0 | |||||
11. | HEDGING FINANCIAL INSTRUMENTS |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Financial assets - current | ||||||||
Fair value hedges | ||||||||
Interest rate futures contracts | $ | — | $ | 22.4 | ||||
Cash flow hedges | ||||||||
Forward exchange contracts | 23.5 | 3.5 | ||||||
|
|
|
| |||||
$ | 23.5 | $ | 25.9 | |||||
|
|
|
|
(Continued)
F - 33
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Financial assets- current | ||||||||
Fair value hedges | ||||||||
Interest rate futures contracts | $ | 0.1 | $ | — | ||||
Cash flow hedges | ||||||||
Forward interest rate contracts | — | 13.5 | ||||||
$ | 0.1 | $ | 13.5 | |||||
Financial liabilities- current | ||||||||
Fair value hedges | ||||||||
Interest rate futures contracts | $ | 1.2 | $ | 9.6 | ||||
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Financial liabilities - current | ||||||||
Fair value hedges | ||||||||
Interest rate futures contracts | $ | 153.9 | $ | — | ||||
Cash flow hedges | ||||||||
Forward exchange contracts | 1.9 | 1.8 | ||||||
|
|
|
| |||||
$ | 155.8 | $ | 1.8 | |||||
|
|
|
|
(Concluded)
losses, net.
risks.
Hedging Instruments | Contract Amount (US$ in Millions) | Maturity | ||||||
US treasury bonds interest rate futures contracts | US$330.3 | March 2019 | ||||||
Hedged Items | Asset Carrying Amount | Accumulated Amount of Fair Value | ||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Financial assets at FVTOCI | $23,229.5 | $ (13.5) |
F - 34
US$88.7 March 2021
Hedge Adjustments $ 6,198.7 $ 1.1
Hedging Instruments | Contract Amount (US$ in Millions) | Maturity | ||||||
US treasury bonds interest rate futures contracts | US$122.2 | March 2020 | ||||||
Hedged Items | Asset Carrying Amount | Accumulated Amount of Fair Value | ||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Financial assets at FVTOCI | $ 7,364.7 | $ (22.4) |
Hedging Instruments | Contract Amount (US$ in Millions) | Maturity | ||
Interest rate futures contracts - US Treasury futures | US$53.9 | March 2022 | ||
Hedged Items | Asset Carrying Amount | Accumulated Amount of Fair Value Hedge Adjustments | ||
NT$ | NT$ | |||
(In Millions) | (In Millions) | |||
Financial assets at FVTOCI | $ 4,079.3 | $ 9.6 |
Hedging Instruments/Hedged Items | Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness | |||||||
Years Ended December 31 | ||||||||
2018 | 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Hedging Instruments | ||||||||
US treasury bonds interest rate futures contracts | $ | 11.5 | $ | (164.7 | ) | |||
Hedged Items | ||||||||
Financial assets at FVTOCI | (13.8 | ) | 177.8 | |||||
|
|
|
| |||||
$ | (2.3 | ) | $ | 13.1 | ||||
|
|
|
|
Hedging Instruments/Hedged Items | Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness | |||||||||||
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Hedging Instruments | ||||||||||||
Interest rate futures contracts - US Treasury futures | $ | (164.7 | ) | $ | (353.6 | ) | $ | 148.8 | ||||
Hedged Items | ||||||||||||
Financial assets at FVTOCI | 177.8 | 353.6 | (148.8 | ) | ||||||||
$ | 13.1 | $ | — | $ | — | |||||||
F - 35
of interest rate risks.
Hedging Instruments | Contract Amount (In Millions) | Maturity | Balance in Other Equity NT$ (In Millions) | |||||||
Forward exchange contracts | NT$ | 3,917.7/EUR112.0 | February 2019 to April 2019 | $ | 23.6 |
December 31, 2019
Hedging Instruments | Contract Amount (In Millions) | Maturity | Balance in Other Equity NT$ (In Millions) | Contract Amount (In Millions) | Maturity | Balance in Other Equity (Continuing Hedges) NT$ (In Millions) | ||||||||||||||
Forward exchange contracts | NT$ | 1,342.4/EUR40.0 | January 2020 | $ | (3.8 | ) | ||||||||||||||
Forward interest rate contracts | US$ | 328.0 | January 2022 | $ | 128.2 |
Hedging Instruments/Hedged Items | Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness | |||||||
Years Ended December 31 | ||||||||
2018 | 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Hedging Instruments | ||||||||
Forward exchange contracts | $ | 34.6 | $ | (109.6 | ) | |||
Foreign currency deposits | 6.4 | — | ||||||
|
|
|
| |||||
$ | 41.0 | $ | (109.6 | ) | ||||
|
|
|
| |||||
Hedged Items | ||||||||
Forecast transaction (capital expenditures) | $ | (41.0 | ) | $ | 109.6 | |||
|
|
|
|
Hedging Instruments/Hedged Items | Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness | |||||||||||
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Hedging Instruments | ||||||||||||
Forward exchange contracts (capital expenditures) | $ | (109.6 | ) | $ | 24.1 | $ | (41.4 | ) | ||||
Forward interest rate contracts (issuance of debts) | $ | — | $ | — | $ | 132.5 | ||||||
Hedged Items | ||||||||||||
Forecast transaction (capital expenditures) | $ | 109.6 | $ | (24.1 | ) | $ | 41.4 | |||||
Forecast transaction (issuance of debts) | $ | — | $ | — | $ | (132.5 | ) | |||||
12. | NOTES AND ACCOUNTS RECEIVABLE, NET |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
At amortized cost | ||||||||
Notes and accounts receivable | $ | 125,025.6 | $ | 135,978.0 | ||||
Less: Loss allowance | (7.3 | ) | (325.3 | ) | ||||
|
|
|
| |||||
125,018.3 | 135,652.7 | |||||||
At FVTOCI | 3,595.1 | 3,255.9 | ||||||
|
|
|
| |||||
$ | 128,613.4 | $ | 138,908.6 | |||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
At amortized cost | ||||||||
Notes and accounts receivable | $ | 142,771.6 | $ | 193,733.2 | ||||
Less: Loss allowance | (246.6 | ) | (347.0 | ) | ||||
142,525.0 | 193,386.2 | |||||||
At FVTOCI | 2,955.3 | 4,199.9 | ||||||
$ | 145,480.3 | $ | 197,586.1 | |||||
2017
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 of when the invoice is issued. The allowance for doubtful receivables is assessed by reference to the collectability of receivables by performing the account aging analysis, historical experience and current financial condition of customers.
Except for those impaired, for the rest of the notes and accounts receivable, the account aging analysis at the end of the reporting period is summarized in the following table. There was no impairment concern for the accounts receivable that were past due without recognizing a specific allowance for doubtful receivables since there was no significant change in the credit quality of its customers after the assessment and the Company has obtained guarantee against certain receivables.
Movements of the allowance for doubtful receivables
Individually Assessed for Impairment | Collectively Assessed for Impairment | Total | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Balance at January 1, 2017 | $ | 1.8 | $ | 478.3 | $ | 480.1 | ||||||
Reversal/Write-off | (1.8 | ) | (6.3 | ) | (8.1 | ) | ||||||
Effect of exchange rate changes | — | (0.2 | ) | (0.2 | ) | |||||||
|
|
|
|
|
| |||||||
Balance at December 31, 2017 | $ | — | $ | 471.8 | $ | 471.8 | ||||||
|
|
|
|
|
|
2018 and 2019
F - 37
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Not past due | $ | 113,126.5 | $ | 126,134.8 | ||||
Past due | ||||||||
Past due within 30 days | 15,006.5 | 13,082.1 | ||||||
Past due31-60 days | 472.8 | 12.8 | ||||||
Past due61-120 days | 9.5 | 1.0 | ||||||
Past due over 121 days | 5.4 | 3.2 | ||||||
Less: Loss allowance | (7.3 | ) | (325.3 | ) | ||||
|
|
|
| |||||
$ | 128,613.4 | $ | 138,908.6 | |||||
|
|
|
| |||||
All of the Company’s accounts receivable classified as at FVTOCI were not past due.
Movements of the loss allowance for accounts receivable
|
| |||||||
Years Ended December 31 | ||||||||
2018 | 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Balance, beginning of year | $ | 227.0 | $ | 7.3 | ||||
Provision (Reversal) | (219.7 | ) | 318.2 | |||||
Effect of exchange rate changes | — | (0.2 | ) | |||||
|
|
|
| |||||
Balance, end of year | $ | 7.3 | $ | 325.3 | ||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Not past due | $ | 140,933.6 | $ | 191,740.0 | ||||
Past due | ||||||||
Past due within 30 days | 4,784.4 | 6,186.8 | ||||||
Past due 31-60 days | 8.7 | 6.2 | ||||||
Past due 61-120 days | 0.1 | 0.1 | ||||||
Past due over 121 days | 0.1 | 0 | ||||||
Less: Loss allowance | (246.6 | ) | (347.0 | ) | ||||
$ | 145,480.3 | $ | 197,586.1 | |||||
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Balance, beginning of year | $ | 7.3 | $ | 325.3 | $ | 246.6 | ||||||
Provision (Reversal) | 318.2 | (78.5 | ) | 100.4 | ||||||||
Effect of exchange rate changes | (0.2 | ) | (0.2 | ) | — | |||||||
Balance, end of year | $ | 325.3 | $ | 246.6 | $ | 347.0 | ||||||
13. | INVENTORIES |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Finished goods | $ | 11,329.8 | $ | 8,924.5 | ||||
Work in process | 72,071.9 | 51,969.1 | ||||||
Raw materials | 15,233.9 | 16,552.3 | ||||||
Supplies and spare parts | 4,595.4 | 5,535.3 | ||||||
|
|
|
| |||||
$ | 103,231.0 | $ | 82,981.2 | |||||
|
|
|
|
F - 38
Reversal $ 21,705.6 $ 32,562.8 91,672.9 137,700.4 14,716.0 11,111.1 9,258.9 11,728.0 $ 137,353.4 $ 193,102.3
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Inventory losses (reversal of write-down of inventories) | $ | (840.9 | ) | $ | 1,259.5 | $ | (1,983.0 | ) | ||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Inventory losses (reversal of write-down of inventories) | $ | (1,983.0 | ) | $ | 3,664.5 | $ | 533.0 | |||||
14. | INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD |
Place of | Carrying Amount | % of Ownership and Voting Rights Held by the Company | ||||||||||||||
Name of Associate | Principal Activities | Incorporation and Operation | December 31, 2018 | December 31, 2019 | December 31, 2018 | December 31, 2019 | ||||||||||
NT$ | NT$ | |||||||||||||||
(In Millions) | (In Millions) | |||||||||||||||
Vanguard International Semiconductor Corporation (VIS) | Manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks | Hsinchu, Taiwan | $ | 8,924.8 | $ | 8,960.5 | 28% | 28% | ||||||||
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC) | Manufacturing and selling of integrated circuits and other semiconductor devices | Singapore | 5,772.8 | 6,502.2 | 39% | 39% | ||||||||||
Xintec Inc. (Xintec) | Wafer level chip size packaging and wafer level post passivation interconnection service | Taoyuan, Taiwan | 1,764.6 | 1,842.8 | 41% | 41% | ||||||||||
Global Unichip Corporation (GUC) | Researching, developing, manufacturing, testing and marketing of integrated circuits | Hsinchu, Taiwan | 1,283.9 | 1,274.8 | 35% | 35% | ||||||||||
Mutual-Pak | Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID | New Taipei, Taiwan | 22.9 | 38.5 | 39% | 28% | ||||||||||
|
|
|
| |||||||||||||
$ | 17,769.0 | $ | 18,618.8 | |||||||||||||
|
|
|
|
Place of Incorporation and Operation | Carrying Amount | % of Ownership and Voting Rights Held by the Company | ||||||||||||||
Name of Associate | Principal Activities | December 31, 2020 | December 31, 2021 | December 31, 2020 | December 31, 2021 | |||||||||||
NT$ | NT$ | |||||||||||||||
(In Millions) | (In Millions) | |||||||||||||||
Vanguard International Semiconductor Corporation (VIS) | 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 | $ | 8,964.1 | $ | 10,469.2 | 28% | 28% | ||||||||
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC) | Manufacturing and sales of integrated circuits and other semiconductor devices | Singapore | 5,900.2 | 6,795.7 | 39% | 39% | ||||||||||
Xintec Inc. (Xintec) | Wafer level chip size packaging and wafer level post passivation interconnection service | Taoyuan, Taiwan | 2,522.3 | 3,012.3 | 41% | 41% | ||||||||||
Global Unichip Corporation (GUC) | Researching, developing, manufacturing, testing and marketing of integrated circuits | Hsinchu, Taiwan | 1,315.4 | 1,462.1 | 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 | 28.2 | 22.9 | 28% | 28% | ||||||||||
$ | 18,730.2 | $ | 21,762.2 | |||||||||||||
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
Name of Associate | (In Millions) | (In Millions) | ||||||
VIS | $ | 27,621.3 | $ | 36,812.9 | ||||
|
|
|
| |||||
GUC | $ | 9,617.7 | $ | 11,251.8 | ||||
|
|
|
| |||||
Xintec | $ | 3,783.6 | $ | 8,958.2 | ||||
|
|
|
|
F - 39
December 31, 2020 | December 31, 2021 | |||||||||
NT$ | NT$ | |||||||||
Name of Associate | (In Millions) | (In Millions) | ||||||||
VIS | $ | 53,849.9 | $ | 73,347.3 | ||||||
GUC | $ | 15,827.2 | $ | 27,359.1 | ||||||
Xintec | $ | 20,420.2 | $ | 15,913.3 | ||||||
15. | PROPERTY, PLANT AND EQUIPMENT |
2017 and 2018
Land and Land Improvements | Buildings | Machinery and Equipment | Office Equipment | Equipment under Installation and Construction in Progress | Total | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | |||||||||||||||||||
Cost | ||||||||||||||||||||||||
Balance at January 1, 2017 | $ | 4,049.3 | $ | 304,404.5 | $ | 2,042,867.7 | $ | 34,729.6 | $ | 387,199.7 | $ | 2,773,250.8 | ||||||||||||
Additions (Deductions) | — | 75,594.7 | 458,605.8 | 8,195.9 | (219,902.5 | ) | 322,493.9 | |||||||||||||||||
Disposals or retirements | — | (37.0 | ) | (9,553.0 | ) | (377.8 | ) | — | (9,967.8 | ) | ||||||||||||||
Reclassification | — | — | 8.8 | 1.5 | — | 10.3 | ||||||||||||||||||
Effect of disposal of subsidiary | — | — | (51.2 | ) | (14.8 | ) | (0.5 | ) | (66.5 | ) | ||||||||||||||
Effect of exchange rate changes | (66.1 | ) | (827.6 | ) | (4,125.8 | ) | (142.9 | ) | 56.8 | (5,105.6 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at December 31, 2017 | $ | 3,983.2 | $ | 379,134.6 | $ | 2,487,752.3 | $ | 42,391.5 | $ | 167,353.5 | $ | 3,080,615.1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Accumulated depreciation and impairment | ||||||||||||||||||||||||
Balance at January 1, 2017 | $ | 524.8 | $ | 174,349.1 | $ | 1,577,377.5 | $ | 23,221.7 | $ | — | $ | 1,775,473.1 | ||||||||||||
Additions | 27.8 | 20,844.6 | 229,985.6 | 4,938.0 | — | 255,796.0 | ||||||||||||||||||
Disposals or retirements | — | (28.8 | ) | (8,114.3 | ) | (377.5 | ) | — | (8,520.6 | ) | ||||||||||||||
Reclassification | — | — | 8.2 | 1.5 | — | 9.7 | ||||||||||||||||||
Effect of disposal of subsidiary | — | — | (42.8 | ) | (13.9 | ) | — | (56.7 | ) | |||||||||||||||
Effect of exchange rate changes | (42.1 | ) | (718.4 | ) | (3,765.3 | ) | (102.9 | ) | — | (4,628.7 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at December 31, 2017 | $ | 510.5 | $ | 194,446.5 | $ | 1,795,448.9 | $ | 27,666.9 | $ | — | $ | 2,018,072.8 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Carrying amounts at December 31, 2017 | $ | 3,472.7 | $ | 184,688.1 | $ | 692,303.4 | $ | 14,724.6 | $ | 167,353.5 | $ | 1,062,542.3 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Cost | ||||||||||||||||||||||||
Balance at January 1, 2018 | $ | 3,983.2 | $ | 379,134.6 | $ | 2,487,752.3 | $ | 42,391.5 | $ | 167,353.5 | $ | 3,080,615.1 | ||||||||||||
Additions | — | 40,396.4 | 247,042.3 | 6,773.4 | 5,812.3 | 300,024.4 | ||||||||||||||||||
Disposals or retirements | — | (410.9 | ) | (5,972.5 | ) | (790.8 | ) | — | (7,174.2 | ) | ||||||||||||||
Effect of exchange rate changes | 28.2 | (405.8 | ) | (61.9 | ) | 8.1 | (254.8 | ) | (686.2 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at December 31, 2018 | $ | 4,011.4 | $ | 418,714.3 | $ | 2,728,760.2 | $ | 48,382.2 | $ | 172,911.0 | $ | 3,372,779.1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Accumulated depreciation and impairment | ||||||||||||||||||||||||
Balance at January 1, 2018 | $ | 510.5 | $ | 194,446.5 | $ | 1,795,448.9 | $ | 27,666.9 | $ | — | $ | 2,018,072.8 | ||||||||||||
Additions | 20.9 | 24,293.4 | 258,195.3 | 5,615.3 | — | 288,124.9 | ||||||||||||||||||
Disposals or retirements | — | (399.0 | ) | (4,773.6 | ) | (790.0 | ) | — | (5,962.6 | ) | ||||||||||||||
Impairment | — | — | 423.5 | — | — | 423.5 | ||||||||||||||||||
Effect of exchange rate changes | 19.2 | 33.2 | (15.1 | ) | 32.9 | — | 70.2 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at December 31, 2018 | $ | 550.6 | $ | 218,374.1 | $ | 2,049,279.0 | $ | 32,525.1 | $ | — | $ | 2,300,728.8 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Carrying amounts at December 31, 2018 | $ | 3,460.8 | $ | 200,340.2 | $ | 679,481.2 | $ | 15,857.1 | $ | 172,911.0 | $ | 1,072,050.3 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019 | December 31, 2020 | December 31, 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Assets used by the Company | $ | 1,352,313.9 | $ | 1,554,585.9 | $ | 1,975,114.0 | ||||||
Assets subject to operating leases | 63.5 | 1,003.2 | 4.7 | |||||||||
$ | 1,352,377.4 | $ | 1,555,589.1 | $ | 1,975,118.7 | |||||||
a. | Assets used by the Company |
Land and Land Improvements | Buildings | Machinery and Equipment | Office Equipment | Equipment under Installation and Construction in Progress | Total | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | |||||||||||||||||||
Cost | ||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 4,011.4 | $ | 418,151.7 | $ | 2,728,760.2 | $ | 48,382.2 | $ | 172,911.0 | $ | 3,372,216.5 | ||||||||||||
Additions | — | 21,448.5 | 179,798.4 | 7,415.0 | 355,621.1 | 564,283.0 | ||||||||||||||||||
Disposals or retirements | — | (159.0 | ) | (17,381.6 | ) | (1,043.3 | ) | — | (18,583.9 | ) | ||||||||||||||
Transfers from right-of-use | — | — | 619.8 | — | — | 619.8 | ||||||||||||||||||
Effect of disposal of subsidiary | — | — | — | (0.5 | ) | — | (0.5 | ) | ||||||||||||||||
Effect of exchange rate changes | (19.6 | ) | (1,366.2 | ) | (5,173.8 | ) | (142.0 | ) | (237.0 | ) | (6,938.6 | ) | ||||||||||||
Balance at December 31, 2019 | $ | 3,991.8 | $ | 438,075.0 | $ | 2,886,623.0 | $ | 54,611.4 | $ | 528,295.1 | $ | 3,911,596.3 | ||||||||||||
Accumulated depreciation and impairment | ||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 550.6 | $ | 217,899.2 | $ | 2,049,279.0 | $ | 32,525.1 | $ | — | $ | 2,300,253.9 | ||||||||||||
Additions | 1.6 | 26,026.6 | 246,724.2 | 6,012.5 | — | 278,764.9 | ||||||||||||||||||
Disposals or retirements | — | (144.4 | ) | (12,880.8 | ) | (1,042.1 | ) | — | (14,067.3 | ) | ||||||||||||||
Transfers from right-of-use | — | — | 20.7 | — | — | 20.7 | ||||||||||||||||||
Reversal of impairment | — | — | (301.4 | ) | — | — | (301.4 | ) | ||||||||||||||||
Effect of disposal of subsidiary | — | — | — | (0.5 | ) | — | (0.5 | ) | ||||||||||||||||
Effect of exchange rate changes | (13.5 | ) | (722.1 | ) | (4,575.7 | ) | (76.6 | ) | — | (5,387.9 | ) | |||||||||||||
Balance at December 31, 2019 | $ | 538.7 | $ | 243,059.3 | $ | 2,278,266.0 | $ | 37,418.4 | $ | — | $ | 2,559,282.4 | ||||||||||||
Carrying amounts at December 31, 2019 | $ | 3,453.1 | $ | 195,015.7 | $ | 608,357.0 | $ | 17,193.0 | $ | 528,295.1 | $ | 1,352,313.9 | ||||||||||||
Cost | ||||||||||||||||||||||||
Balance at January 1, 2020 | $ | 3,991.8 | $ | 438,075.0 | $ | 2,886,623.0 | $ | 54,611.4 | $ | 528,295.1 | $ | 3,911,596.3 | ||||||||||||
Additions (deductions) | — | 84,882.5 | 729,943.3 | 15,112.9 | (304,218.0 | ) | 525,720.7 | |||||||||||||||||
Disposals or retirements | — | (41.5 | ) | (6,397.3 | ) | (734.1 | ) | — | (7,172.9 | ) | ||||||||||||||
Transfers from assets subject to operating leases | — | 23.1 | — | — | — | 23.1 | ||||||||||||||||||
Transfers to assets subject to operating leases | — | — | (1,199.0 | ) | — | — | (1,199.0 | ) | ||||||||||||||||
Effect of exchange rate changes | (49.2 | ) | (491.7 | ) | (1,964.3 | ) | (127.5 | ) | (111.7 | ) | (2,744.4 | ) | ||||||||||||
Balance at December 31, 2020 | $ | 3,942.6 | $ | 522,447.4 | $ | 3,607,005.7 | $ | 68,862.7 | $ | 223,965.4 | $ | 4,426,223.8 | ||||||||||||
Accumulated depreciation and impairment | ||||||||||||||||||||||||
Balance at January 1, 2020 | $ | 538.7 | $ | 243,059.3 | $ | 2,278,266.0 | $ | 37,418.4 | $ | — | $ | 2,559,282.4 | ||||||||||||
Additions | 1.5 | 29,209.1 | 285,393.6 | 7,216.9 | — | 321,821.1 | ||||||||||||||||||
Disposals or retirements | — | (27.9 | ) | (6,012.9 | ) | (732.4 | ) | — | (6,773.2 | ) | ||||||||||||||
Transfers from assets subject to operating leases | — | 8.2 | — | — | — | 8.2 | ||||||||||||||||||
Transfers to assets subject to operating leases | — | — | (202.6 | ) | — | — | (202.6 | ) | ||||||||||||||||
Impairment | — | — | 10.2 | — | — | 10.2 | ||||||||||||||||||
Effect of exchange rate changes | (34.1 | ) | (449.2 | ) | (1,924.3 | ) | (100.6 | ) | — | (2,508.2 | ) | |||||||||||||
Balance at December 31, 2020 | $ | 506.1 | $ | 271,799.5 | $ | 2,555,530.0 | $ | 43,802.3 | $ | — | $ | 2,871,637.9 | ||||||||||||
Carrying amounts at December 31, 2020 | $ | 3,436.5 | $ | 250,647.9 | $ | 1,051,475.7 | $ | 25,060.4 | $ | 223,965.4 | $ | 1,554,585.9 | ||||||||||||
Land and Land Improvements | Buildings | Machinery and Equipment | Office Equipment | Equipment under Installation and Construction in Progress | Total | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | |||||||||||||||||||
Cost | ||||||||||||||||||||||||
Balance at January 1, 2021 | $ | 3,942.6 | $ | 522,447.4 | $ | 3,607,005.7 | $ | 68,862.7 | $ | 223,965.4 | $ | 4,426,223.8 | ||||||||||||
Additions | 2,587.2 | 53,971.3 | 401,659.0 | 7,643.0 | 369,545.8 | 835,406.3 | ||||||||||||||||||
Disposals or retirements | — | (41.1 | ) | (26,192.2 | ) | (333.4 | ) | — | (26,566.7 | ) | ||||||||||||||
Transfers from assets subject to operating leases | — | 35.5 | 1,443.6 | — | — | 1,479.1 | ||||||||||||||||||
Transfers to assets subject to operating leases | — | — | (244.6 | ) | — | — | (244.6 | ) | ||||||||||||||||
Effect of exchange rate changes | (41.6 | ) | 184.7 | 1,077.7 | (18.1 | ) | (355.5 | ) | 847.2 | |||||||||||||||
Balance at December 31, 2021 | $ | 6,488.2 | $ | 576,597.8 | $ | 3,984,749.2 | $ | 76,154.2 | $ | 593,155.7 | $ | 5,237,145.1 | ||||||||||||
Accumulated depreciation and impairment | ||||||||||||||||||||||||
Balance at January 1, 2021 | $ | 506.1 | $ | 271,799.5 | $ | 2,555,530.0 | $ | 43,802.3 | $ | — | $ | 2,871,637.9 | ||||||||||||
Additions | 1.3 | 34,331.6 | 368,777.7 | 8,373.3 | — | 411,483.9 | ||||||||||||||||||
Disposals or retirements | — | (36.5 | ) | (22,230.1 | ) | (332.6 | ) | — | (22,599.2 | ) | ||||||||||||||
Transfers from assets subject to operating leases | — | 15.1 | 436.8 | — | — | 451.9 | ||||||||||||||||||
Transfers to assets subject to operating leases | — | — | (68.3 | ) | — | — | (68.3 | ) | ||||||||||||||||
Impairment | — | — | 274.4 | — | — | 274.4 | ||||||||||||||||||
Effect of exchange rate changes | (7.6 | ) | 55.6 | 818.9 | (16.4 | ) | — | 850.5 | ||||||||||||||||
Balance at December 31, 2021 | $ | 499.8 | $ | 306,165.3 | $ | 2,903,539.4 | $ | 51,826.6 | $ | — | $ | 3,262,031.1 | ||||||||||||
Carrying amounts at December 31, 2021 | $ | 5,988.4 | $ | 270,432.5 | $ | 1,081,209.8 | $ | 24,327.6 | $ | 593,155.7 | $ | 1,975,114.0 | ||||||||||||
For the year ended December 31, 2018, the Company recognized an impairment loss of NT$423.5 million for certain machinery and equipment that was assessed to have no future use, and the recoverable amount of certain machinery and equipment was nil. Such impairment loss was recognized in other operating income and expenses.
F - 40
2019
December 31, 2019 | ||||
NT$ | ||||
(In Millions) | ||||
Assets used by the Company | $ | 1,352,313.9 | ||
Assets subject to operating leases | 63.5 | |||
|
| |||
$ | 1,352,377.4 | |||
|
|
|
Land and Land Improvements | Buildings | Machinery and Equipment | Office Equipment | Equipment under Installation and Construction in Progress | Total | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | |||||||||||||||||||
Cost | ||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 4,011.4 | $ | 418,151.7 | $ | 2,728,760.2 | $ | 48,382.2 | $ | 172,911.0 | $ | 3,372,216.5 | ||||||||||||
Additions | — | 21,448.5 | 179,798.4 | 7,415.0 | 355,621.1 | 564,283.0 | ||||||||||||||||||
Disposals or retirements | — | (159.0 | ) | (17,381.6 | ) | (1,043.3 | ) | — | (18,583.9 | ) | ||||||||||||||
Transfers fromright-of-use assets | — | — | 619.8 | — | — | 619.8 | ||||||||||||||||||
Effect of disposal of subsidiary | — | — | — | (0.5 | ) | — | (0.5 | ) | ||||||||||||||||
Effect of exchange rate changes | (19.6 | ) | (1,366.2 | ) | (5,173.8 | ) | (142.0 | ) | (237.0 | ) | (6,938.6 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at December 31, 2019 | $ | 3,991.8 | $ | 438,075.0 | $ | 2,886,623.0 | $ | 54,611.4 | $ | 528,295.1 | $ | 3,911,596.3 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Accumulated depreciation and impairment | ||||||||||||||||||||||||
Balance at January 1, 2019 | $ | 550.6 | $ | 217,899.2 | $ | 2,049,279.0 | $ | 32,525.1 | $ | — | $ | 2,300,253.9 | ||||||||||||
Additions | 1.6 | 26,026.6 | 246,724.2 | 6,012.5 | — | 278,764.9 | ||||||||||||||||||
Disposals or retirements | — | (144.4 | ) | (12,880.8 | ) | (1,042.1 | ) | — | (14,067.3 | ) | ||||||||||||||
Transfers fromright-of-use assets | — | — | 20.7 | — | — | 20.7 | ||||||||||||||||||
Reversal of impairment | — | — | (301.4 | ) | — | — | (301.4 | ) | ||||||||||||||||
Effect of disposal of subsidiary | — | — | — | (0.5 | ) | — | (0.5 | ) | ||||||||||||||||
Effect of exchange rate changes | (13.5 | ) | (722.1 | ) | (4,575.7 | ) | (76.6 | ) | — | (5,387.9 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance at December 31, 2019 | $ | 538.7 | $ | 243,059.3 | $ | 2,278,266.0 | $ | 37,418.4 | $ | — | $ | 2,559,282.4 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Carrying amounts at December 31, 2019 | $ | 3,453.1 | $ | 195,015.7 | $ | 608,357.0 | $ | 17,193.0 | $ | 528,295.1 | $ | 1,352,313.9 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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 2019, the Company recognized a reversal of impairment loss of NT$301.4 million due to redeployment of certain idle machinery and equipment. Such reversal of impairment loss was recognized in other operating income and expenses.
b. | Assets subject to operating leases |
Buildings | ||||
NT$ | ||||
(In Millions) | ||||
Cost | ||||
Balance at January 1, 2019 | $ | 562.6 | ||
|
| |||
Balance at December 31, 2019 | $ | 562.6 | ||
|
| |||
Accumulated depreciation | ||||
Balance at January 1, 2019 | $ | 474.9 | ||
Additions | 24.2 | |||
|
| |||
Balance at December 31, 2019 | $ | 499.1 | ||
|
| |||
Carrying amounts at December 31, 2019 | $ | 63.5 | ||
|
|
Buildings | Machinery and Equipment | Total | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Cost | ||||||||||||
Balance at January 1, 2019 | $ | 562.6 | $ | — | $ | 562.6 | ||||||
Balance at December 31, 2019 | $ | 562.6 | $ | — | $ | 562.6 | ||||||
Accumulated depreciation | ||||||||||||
Balance at January 1, 2019 | $ | 474.9 | $ | — | $ | 474.9 | ||||||
Additions | 24.2 | — | 24.2 | |||||||||
Balance at December 31, 2019 | $ | 499.1 | $ | — | $ | 499.1 | ||||||
Carrying amounts at December 31, 2019 | $ | 63.5 | $ | — | $ | 63.5 | ||||||
Cost | ||||||||||||
Balance at January 1, 2020 | $ | 562.6 | $ | — | $ | 562.6 | ||||||
Disposals or retirements | (311.9 | ) | — | (311.9 | ) | |||||||
Transfers to assets used by the Company | (23.1 | ) | — | (23.1 | ) | |||||||
Transfers from assets used by the Company | — | 1,199.0 | 1,199.0 | |||||||||
Balance at December 31, 2020 | $ | 227.6 | $ | 1,199.0 | $ | 1,426.6 | ||||||
Accumulated depreciation | ||||||||||||
Balance at January 1, 2020 | $ | 499.1 | $ | — | $ | 499.1 | ||||||
Additions | 16.3 | 19.4 | 35.7 | |||||||||
Disposals or retirements | (305.8 | ) | — | (305.8 | ) | |||||||
Transfers to assets used by the Company | (8.2 | ) | — | (8.2 | ) | |||||||
Transfers from assets used by the Company | — | 202.6 | 202.6 | |||||||||
Balance at December 31, 2020 | $ | 201.4 | $ | 222.0 | $ | 423.4 | ||||||
Carrying amounts at December 31, 2020 | $ | 26.2 | $ | 977.0 | $ | 1,003.2 | ||||||
Cost | ||||||||||||
Balance at January 1, 2021 | $ | 227.6 | $ | 1,199.0 | $ | 1,426.6 | ||||||
Transfers to assets used by the Company | (35.5 | ) | (1,443.6 | ) | (1,479.1 | ) | ||||||
Transfers from assets used by the Company | — | 244.6 | 244.6 | |||||||||
Balance at December 31, 2021 | $ | 192.1 | $ | — | $ | 192.1 | ||||||
Accumulated depreciation | ||||||||||||
Balance at January 1, 2021 | $ | 201.4 | $ | 222.0 | $ | 423.4 | ||||||
Additions | 1.1 | 146.5 | 147.6 | |||||||||
Transfers to assets used by the Company | (15.1 | ) | (436.8 | ) | (451.9 | ) | ||||||
Transfers from assets used by the Company | — | 68.3 | 68.3 | |||||||||
Balance at December 31, 2021 | $ | 187.4 | $ | — | $ | 187.4 | ||||||
Carrying amounts at December 31, 2021 | $ | 4.7 | $ | — | $ | 4.7 | ||||||
December 31, 2019 | ||||
NT$ | ||||
(In Millions) | ||||
Year 1 | $ | 18.4 | ||
Year 2 | 17.0 | |||
Year 3 | 17.0 | |||
|
| |||
$ | 52.4 | |||
|
|
|
2017 and 2018
The Company’s major operating leases are arrangements on several parcels of land, machinery and equipment and office premises.
The Company expensed the lease paymentsis as follows:
Years Ended December 31 | ||||||||
2017 | 2018 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Minimum lease payments | $ | 2,178.1 | $ | 4,243.1 | ||||
|
|
|
|
F - 42
Future minimum lease payments under the abovenon-cancellable operating leases are as follows:
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Year 1 | $ | 149.1 | $ | 18.0 | ||||
Year 2 | 17.0 | — | ||||||
$ | 166.1 | $ | 18.0 | |||||
December 31, 2018 | ||||
NT$ | ||||
(In Millions) | ||||
Not later than 1 year | $ | 5,824.1 | ||
Later than 1 year and not later than 5 years | 5,834.9 | |||
Later than 5 years | 9,190.6 | |||
|
| |||
$ | 20,849.6 | |||
|
|
2019
16. | LEASE ARRANGEMENTS |
a. |
|
December 31, 2019 | ||||
NT$ | ||||
(In Millions) | ||||
Carrying amounts | ||||
Land | $ | 14,064.0 | ||
Buildings | 2,351.8 | |||
Machinery and equipment | 775.8 | |||
Office equipment | 40.8 | |||
|
| |||
$ | 17,232.4 | |||
|
|
Year Ended December 31, 2019 | ||||
NT$ | ||||
(In Millions) | ||||
Additions toright-of-use assets | $ | 1,033.0 | ||
|
|
Year Ended December 31, 2019 | December 31, 2020 | December 31, 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Depreciation ofright-of-use assets | ||||||||||||
Carrying amounts | ||||||||||||
Land | $ | 957.1 | $ | 25,141.9 | $ | 29,778.6 | ||||||
Buildings | 458.8 | 2,544.8 | 2,918.1 | |||||||||
Machinery and equipment | 1,184.4 | — | 3.4 | |||||||||
Office equipment | 22.4 | 41.8 | 34.3 | |||||||||
| ||||||||||||
$ | 2,622.7 | $ | 27,728.5 | $ | 32,734.4 | |||||||
| ||||||||||||
Income from subleasingright-of-use assets (classified under other operating income and expenses, net) | $ | 55.0 | ||||||||||
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Additions to right-of-use | $ | 1,033.0 | $ | 13,481.2 | $ | 7,769.8 | ||||||
Depreciation of right-of-use | ||||||||||||
Land | $ | 957.1 | $ | 1,312.9 | $ | 1,825.7 | ||||||
Buildings | 458.8 | 569.5 | 707.9 | |||||||||
Machinery and equipment | 1,184.4 | 775.8 | 0.5 | |||||||||
Office equipment | 22.4 | 23.4 | 22.1 | |||||||||
$ | 2,622.7 | $ | 2,681.6 | $ | 2,556.2 | |||||||
Income from subleasing right-of-use | $ | 55.0 | $ | 79.6 | $ | 82.0 | ||||||
b. | Lease liabilities |
December 31, 2019 | ||||
NT$ | ||||
(In Millions) | ||||
Carrying amounts | ||||
Current portion (classified under accrued expenses and other current liabilities) | $ | 2,275.1 | ||
Noncurrent portion | 15,041.8 | |||
|
| |||
$ | 17,316.9 | |||
|
|
Ranges of discount rates for lease liabilities are as follows:
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Carrying amounts | ||||||||
Current portion (classified under accrued expenses and other current liabilities) | $ | 1,828.0 | $ | 2,176.5 | ||||
Noncurrent portion | 20,560.6 | 20,764.2 | ||||||
$ | 22,388.6 | $ | 22,940.7 | |||||
Ranges of discount rates for lease liabilities are as follows: |
December 31,
| ||||||
2020 | December 31, 2021 | |||||
| ||||||
Land | 0.48%-2.14% | 0.39%-2.14 | % | |||
Buildings | 0.54%-3.88% | 0.39%-3.88 | % | |||
Machinery and equipment | ||||||
| 0.71% |
Office equipment | 0.28%-3.88 | % |
c. Material terms of right-of-use The Company leases land and buildings mainly for the use of plants and offices with lease terms of 1 to 36 years. The lease contracts for land located in the R.O.C. specify that lease payments will be adjusted every 2 years on the basis of changes in announced land value prices. The Company does not have purchase options to acquire the leasehold land and buildings at the end of the lease terms. d. Subleases The Company subleases the right to use its buildings and machinery and equipment under operating leases with lease terms of 1 to 6 years. The maturity analysis of lease payments receivable under operating subleases is as follows: |
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 leasehold machinery and equipment at the end of the lease terms.
|
The Company subleases itsright-of-use assets for buildings under operating leases with lease terms of 1 to 5 years.
The maturity analysis of lease payments receivable under operating subleases is as follows:
December 31, 2019 | ||||
NT$ | ||||
(In Millions) | ||||
Year 1 | $ | 58.6 | ||
Year 2 | 1.9 | |||
|
| |||
$ | 60.5 | |||
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Year 1 | $ | 144.1 | $ | 60.8 | ||||
e. | Other lease information |
Year Ended December 31, 2019 | ||||
NT$ | ||||
(In Millions) | ||||
Expenses relating to short-term leases | $ | 5,007.1 | ||
|
| |||
Expenses relating tolow-value asset leases | $ | 0.5 | ||
|
| |||
Expenses relating to variable lease payments not included in the measurement of lease liabilities | $ | 195.1 | ||
|
|
Year Ended December 31, 2019 | ||||
NT$ | ||||
(In Millions) | ||||
Total cash outflow for leases | $ | 7,724.4 | ||
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Expenses relating to short-term leases | $ | 5,007.1 | $ | 3,153.5 | $ | 5,250.3 | ||||||
Expenses relating to variable lease payments not included in the measurement of lease liabilities | $ | 195.1 | $ | 257.0 | $ | 168.7 | ||||||
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Total cash outflow for leases | $ | 7,724.4 | $ | 6,354.6 | $ | 7,510.8 | ||||||
17. | INTANGIBLE ASSETS |
Goodwill | Technology License Fees | Software and System Design Costs | Patent and Others | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Cost | ||||||||||||||||||||
Balance at January 1, 2017 | $ | 6,008.0 | $ | 9,546.0 | $ | 22,243.6 | $ | 5,386.4 | $ | 43,184.0 | ||||||||||
Additions | — | 897.9 | 3,021.1 | 349.2 | 4,268.2 | |||||||||||||||
Retirements | — | — | (75.2 | ) | — | (75.2 | ) | |||||||||||||
Reclassification | — | — | 7.7 | (18.0 | ) | (10.3 | ) | |||||||||||||
Effect of disposal of subsidiary | (13.5 | ) | — | (7.7 | ) | — | (21.2 | ) | ||||||||||||
Effect of exchange rate changes | (345.8 | ) | (0.6 | ) | (3.2 | ) | (1.6 | ) | (351.2 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance at December 31, 2017 | $ | 5,648.7 | $ | 10,443.3 | $ | 25,186.3 | $ | 5,716.0 | $ | 46,994.3 | ||||||||||
|
|
|
| �� |
|
|
|
|
|
| ||||||||||
Accumulated amortization and impairment | ||||||||||||||||||||
Balance at January 1, 2017 | $ | — | $ | 6,147.2 | $ | 18,144.5 | $ | 4,277.5 | $ | 28,569.2 | ||||||||||
Additions | — | 1,548.3 | 2,310.7 | 487.7 | 4,346.7 | |||||||||||||||
Retirements | — | — | (75.2 | ) | — | (75.2 | ) | |||||||||||||
Reclassification | — | — | 7.4 | (17.1 | ) | (9.7 | ) | |||||||||||||
Impairment | 13.5 | — | — | — | 13.5 | |||||||||||||||
Effect of disposal of subsidiary | (13.5 | ) | — | (7.6 | ) | — | (21.1 | ) | ||||||||||||
Effect of exchange rate changes | — | (0.6 | ) | (3.1 | ) | (0.6 | ) | (4.3 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance at December 31, 2017 | $ | — | $ | 7,694.9 | $ | 20,376.7 | $ | 4,747.5 | $ | 32,819.1 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Carrying amounts at December 31, 2017 | $ | 5,648.7 | $ | 2,748.4 | $ | 4,809.6 | $ | 968.5 | $ | 14,175.2 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Goodwill | Technology License Fees | Software and System Design Costs | Patent and Others | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Cost | ||||||||||||||||||||
Balance at January 1, 2019 | $ | 5,795.5 | $ | 10,974.5 | $ | 29,594.6 | $ | 7,656.3 | $ | 54,020.9 | ||||||||||
Additions | — | 4,879.6 | 3,710.4 | 647.8 | 9,237.8 | |||||||||||||||
Disposals or retirements | — | — | (260.9 | ) | — | (260.9 | ) | |||||||||||||
Effect of exchange rate changes | (102.1 | ) | 0.9 | (20.1 | ) | (1.2 | ) | (122.5 | ) | |||||||||||
Balance at December 31, 2019 | $ | 5,693.4 | $ | 15,855.0 | $ | 33,024.0 | $ | 8,302.9 | $ | 62,875.3 | ||||||||||
Accumulated amortization and impairment | ||||||||||||||||||||
Balance at January 1, 2019 | $ | — | $ | 8,756.0 | $ | 23,023.7 | $ | 5,239.1 | $ | 37,018.8 | ||||||||||
Additions | — | 1,066.9 | 3,747.3 | 658.2 | 5,472.4 | |||||||||||||||
Disposals or retirements | — | — | (258.6 | ) | — | (258.6 | ) | |||||||||||||
Effect of exchange rate changes | — | 0.9 | (10.3 | ) | (0.9 | ) | (10.3 | ) | ||||||||||||
Balance at December 31, 2019 | $ | — | $ | 9,823.8 | $ | 26,502.1 | $ | 5,896.4 | $ | 42,222.3 | ||||||||||
Carrying amounts at December 31, 2019 | $ | 5,693.4 | $ | 6,031.2 | $ | 6,521.9 | $ | 2,406.5 | $ | 20,653.0 | ||||||||||
Cost | ||||||||||||||||||||
Balance at January 1, 2020 | $ | 5,693.4 | $ | 15,855.0 | $ | 33,024.0 | $ | 8,302.9 | $ | 62,875.3 | ||||||||||
Additions | — | 6,308.9 | 3,275.8 | 2,974.8 | 12,559.5 | |||||||||||||||
Disposals or retirements | — | — | (60.5 | ) | — | (60.5 | ) | |||||||||||||
Effect of exchange rate changes | (256.8 | ) | (2.2 | ) | (0.3 | ) | (0.1 | ) | (259.4 | ) | ||||||||||
Balance at December 31, 2020 | $ | 5,436.6 | $ | 22,161.7 | $ | 36,239.0 | $ | 11,277.6 | $ | 75,114.9 | ||||||||||
Accumulated amortization and impairment | ||||||||||||||||||||
Balance at January 1, 2020 | $ | — | $ | 9,823.8 | $ | 26,502.1 | $ | 5,896.4 | $ | 42,222.3 | ||||||||||
Additions | — | 2,404.5 | 3,669.2 | 1,112.5 | 7,186.2 | |||||||||||||||
Disposals or retirements | — | — | (59.9 | ) | — | (59.9 | ) | |||||||||||||
Effect of exchange rate changes | — | (2.1 | ) | 0.3 | — | (1.8 | ) | |||||||||||||
Balance at December 31, 2020 | $ | — | $ | 12,226.2 | $ | 30,111.7 | $ | 7,008.9 | $ | 49,346.8 | ||||||||||
Carrying amounts at December 31, 2020 | $ | 5,436.6 | $ | 9,935.5 | $ | 6,127.3 | $ | 4,268.7 | $ | 25,768.1 | ||||||||||
Goodwill | Technology License Fees | Software and System Design Costs | Patent and Others | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Cost | ||||||||||||||||||||
Balance at January 1, 2018 | $ | 5,648.7 | $ | 10,443.3 | $ | 25,186.3 | $ | 5,716.0 | $ | 46,994.3 | ||||||||||
Additions | — | 533.7 | 4,601.9 | 1,969.4 | 7,105.0 | |||||||||||||||
Disposals or retirements | — | — | (186.7 | ) | (31.2 | ) | (217.9 | ) | ||||||||||||
Effect of exchange rate changes | 146.8 | (2.5 | ) | (6.9 | ) | 2.1 | 139.5 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance at December 31, 2018 | $ | 5,795.5 | $ | 10,974.5 | $ | 29,594.6 | $ | 7,656.3 | $ | 54,020.9 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Accumulated amortization and impairment | ||||||||||||||||||||
Balance at January 1, 2018 | $ | — | $ | 7,694.9 | $ | 20,376.7 | $ | 4,747.5 | $ | 32,819.1 | ||||||||||
Additions | — | 1,063.6 | 2,835.3 | 522.5 | 4,421.4 | |||||||||||||||
Disposals or retirements | — | — | (186.6 | ) | (31.2 | ) | (217.8 | ) | ||||||||||||
Effect of exchange rate changes | — | (2.5 | ) | (1.7 | ) | 0.3 | (3.9 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance at December 31, 2018 | $ | — | $ | 8,756.0 | $ | 23,023.7 | $ | 5,239.1 | $ | 37,018.8 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Carrying amounts at December 31, 2018 | $ | 5,795.5 | $ | 2,218.5 | $ | 6,570.9 | $ | 2,417.2 | $ | 17,002.1 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Cost | ||||||||||||||||||||
Balance at January 1, 2019 | $ | 5,795.5 | $ | 10,974.5 | $ | 29,594.6 | $ | 7,656.3 | $ | 54,020.9 | ||||||||||
Additions | — | 4,879.6 | 3,710.4 | 647.8 | 9,237.8 | |||||||||||||||
Disposals or retirements | — | — | (260.9 | ) | — | (260.9 | ) | |||||||||||||
Effect of exchange rate changes | (102.1 | ) | 0.9 | (20.1 | ) | (1.2 | ) | (122.5 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance at December 31, 2019 | $ | 5,693.4 | $ | 15,855.0 | $ | 33,024.0 | $ | 8,302.9 | $ | 62,875.3 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Accumulated amortization and impairment | ||||||||||||||||||||
Balance at January 1, 2019 | $ | — | $ | 8,756.0 | $ | 23,023.7 | $ | 5,239.1 | $ | 37,018.8 | ||||||||||
Additions | — | 1,066.9 | 3,747.3 | 658.2 | 5,472.4 | |||||||||||||||
Disposals or retirements | — | — | (258.6 | ) | — | (258.6 | ) | |||||||||||||
Effect of exchange rate changes | — | 0.9 | (10.3 | ) | (0.9 | ) | (10.3 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance at December 31, 2019 | $ | — | $ | 9,823.8 | $ | 26,502.1 | $ | 5,896.4 | $ | 42,222.3 | ||||||||||
|
|
|
|
|
|
|
| �� |
|
| ||||||||||
Carrying amounts at December 31, 2019 | $ | 5,693.4 | $ | 6,031.2 | $ | 6,521.9 | $ | 2,406.5 | $ | 20,653.0 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Goodwill | Technology License Fees | Software and System Design Costs | Patent and Others | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Cost | ||||||||||||||||||||
Balance at January 1, 2021 | $ | 5,436.6 | $ | 22,161.7 | $ | 36,239.0 | $ | 11,277.6 | $ | 75,114.9 | ||||||||||
Additions | — | 1,372.8 | 7,726.2 | 219.5 | 9,318.5 | |||||||||||||||
Disposals or retirements | — | — | (318.7 | ) | — | (318.7 | ) | |||||||||||||
Effect of exchange rate changes | (57.4 | ) | (0.5 | ) | 4.5 | 0.1 | (53.3 | ) | ||||||||||||
Balance at December 31, 2021 | $ | 5,379.2 | $ | 23,534.0 | $ | 43,651.0 | $ | 11,497.2 | $ | 84,061.4 | ||||||||||
Accumulated amortization and impairment | ||||||||||||||||||||
Balance at January 1, 2021 | $ | — | $ | 12,226.2 | $ | 30,111.7 | $ | 7,008.9 | $ | 49,346.8 | ||||||||||
Additions | — | 2,686.8 | 4,323.9 | 1,196.5 | 8,207.2 | |||||||||||||||
Disposals or retirements | — | — | (317.5 | ) | — | (317.5 | ) | |||||||||||||
Effect of exchange rate changes | — | (0.6 | ) | 3.5 | 0.3 | 3.2 | ||||||||||||||
Balance at December 31, 2021 | $ | — | $ | 14,912.4 | $ | 34,121.6 | $ | 8,205.7 | $ | 57,239.7 | ||||||||||
Carrying amounts at December 31, 2021 | $ | 5,379.2 | $ | 8,621.6 | $ | 9,529.4 | $ | 3,291.5 | $ | 26,821.7 | ||||||||||
For the year ended December 31, 2017, the Company assessed goodwill impairment and recognized an impairment loss of NT$13.5 million related to a subsidiary since the operating result of this cash generating unit was not as expected and the recoverable amount of goodwill was nil. Such impairment loss was recognized in other operating income and expenses.
18. | SHORT-TERM LOANS |
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Unsecured loans | ||||||||
Amount | $ | 88,559.0 | $ | 114,921.3 | ||||
Loan content | ||||||||
US$ (in millions) | $ | 200.0 | $ | 0 | ||||
EUR (in millions) | 2,398.0 | 3,652.9 | ||||||
Annual interest rate | (0.54)%-0.33 | % | (0.73)%-0 | % | ||||
Maturity date | Due by February 2021 | | Due by June 2022 | |
19. |
BONDS PAYABLE |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Unsecured loans | ||||||||
Amount | $ | 88,754.7 | $ | 118,522.3 | ||||
|
|
|
| |||||
Original loan content | ||||||||
US$ (in millions) | $ | 2,610.0 | $ | 2,370.0 | ||||
EUR (in millions) | 242.0 | 1,410.0 | ||||||
Annual interest rate | 0.01%-3.22 | % | 0.01%-2.22 | % | ||||
Maturity date | | Due by January 2019 |
| | Due by May 2020 |
|
|
The Company’s current provisions were provisions for sales returns and allowances.
Sales Returns and Allowances | ||||
NT$ (In Millions) | ||||
Year Ended December 31, 2017 | ||||
Balance, beginning of year | $ | 18,037.8 | ||
Provision | 44,833.6 | |||
Payment | (48,884.7 | ) | ||
Effect of exchange rate changes | (24.9 | ) | ||
|
| |||
Balance, end of year | $ | 13,961.8 | ||
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Domestic unsecured bonds | $ | 173,197.0 | $ | 312,448.0 | ||||
Overseas unsecured bonds | 84,291.0 | 304,414.0 | ||||||
Less: Discounts on bonds payable | (782.9 | ) | (2,391.4 | ) | ||||
Less: Current portion | (2,600.0 | ) | (4,400.0 | ) | ||||
$ | 254,105.1 | $ | 610,070.6 | |||||
Provisions for sales returns and allowances are estimated based on historical experience and the consideration of varying contractual terms, and are recognized as a reduction of revenue in the same year of the related product sales.
Starting from 2018, the Company recognizes the estimation of sales returns and allowance as refund liability (classified under accrued expenses and other current liabilities) upon initial application of IFRS 15.
|
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Domestic unsecured bonds | $ | 91,800.0 | $ | 56,900.0 | ||||
Less: Current portion | (34,900.0 | ) | (31,800.0 | ) | ||||
|
|
|
| |||||
$ | 56,900.0 | $ | 25,100.0 | |||||
|
|
|
|
F - 47
The major terms of domestic unsecured bonds are as follows:
Total Amount | ||||||||||||||
NT$ | Coupon | Repayment and | ||||||||||||
Issuance | Tranche | Issuance Period | (In Millions) | Rate | Interest Payment | |||||||||
100-1 | B | September 2011 to September 2018 | $ | 7,500.0 | 1.63 | % | Bullet repayment; interest payable annually | |||||||
100-2 | B | January 2012 to January 2019 | 7,000.0 | 1.46 | % | The same as above | ||||||||
101-1 | B | August 2012 to August 2019 | 9,000.0 | 1.40 | % | The same as above | ||||||||
101-2 | B | September 2012 to September 2019 | 9,000.0 | 1.39 | % | The same as above | ||||||||
101-3 | — | October 2012 to October 2022 | 4,400.0 | 1.53 | % | The same as above | ||||||||
101-4 | A | January 2013 to January 2018 | 10,600.0 | 1.23 | % | The same as above | ||||||||
B | January 2013 to January 2020 | 10,000.0 | 1.35 | % | The same as above | |||||||||
C | January 2013 to January 2023 | 3,000.0 | 1.49 | % | The same as above | |||||||||
102-1 | A | February 2013 to February 2018 | 6,200.0 | 1.23 | % | The same as above | ||||||||
B | February 2013 to February 2020 | 11,600.0 | 1.38 | % | The same as above | |||||||||
C | February 2013 to February 2023 | 3,600.0 | 1.50 | % | The same as above | |||||||||
102-2 | A | July 2013 to July 2020 | 10,200.0 | 1.50 | % | The same as above | ||||||||
B | July 2013 to July 2023 | 3,500.0 | 1.70 | % | The same as above | |||||||||
102-3 | B | August 2013 to August 2019 | 8,500.0 | 1.52 | % | The same as above | ||||||||
102-4 | C | September 2013 to March 2019 | 1,400.0 | 1.60 | % | Bullet repayment; interest payable annually (interest for the six months prior to maturity will accrue on the basis of actual days and be repayable at maturity) | ||||||||
D | September 2013 to March 2021 | 2,600.0 | 1.85 | % | The same as above | |||||||||
E | September 2013 to March 2023 | 5,400.0 | 2.05 | % | The same as above | |||||||||
F | September 2013 to September 2023 | 2,600.0 | 2.10 | % | Bullet repayment; interest payable annually |
Issuance | Tranche | Issuance Period | Total Amount NT$ (In Millions) | Coupon Rate | Repayment and Interest Payment | |||||||||||
NT$ unsecured bonds | ||||||||||||||||
101-3 | — | October 2012 to October 2022 | $ | 4,400.0 | 1.53 | % | Bullet repayment; interest payable annually | |||||||||
101-4 | B | January 2013 to January 2020 | 10,000.0 | 1.35 | % | The same as above | ||||||||||
C | January 2013 to January 2023 | 3,000.0 | 1.49 | % | The same as above | |||||||||||
102-1 | B | February 2013 to February 2020 | 11,600.0 | 1.38 | % | The same as above | ||||||||||
C | February 2013 to February 2023 | 3,600.0 | 1.50 | % | The same as above | |||||||||||
102-2 | A | July 2013 to July 2020 | 10,200.0 | 1.50 | % | The same as above | ||||||||||
B | July 2013 to July 2023 | 3,500.0 | 1.70 | % | The same as above | |||||||||||
102-4 | D | September 2013 to March 2021 | 2,600.0 | 1.85 | % | Bullet repayment; interest payable annually (interest for the six months prior to maturity will accrue on the basis of actual days and be repayable at maturity) | ||||||||||
E | September 2013 to March 2023 | 5,400.0 | 2.05 | % | The same as above | |||||||||||
F | September 2013 to September 2023 | 2,600.0 | 2.10 | % | Bullet repayment; interest payable annually | |||||||||||
109-1 | A | March 2020 to March 2025 | 3,000.0 | 0.58 | % | The same as above | ||||||||||
B | March 2020 to March 2027 | 10,500.0 | 0.62 | % | The same as above | |||||||||||
C | March 2020 to March 2030 | 10,500.0 | 0.64 | % | The same as above |
Issuance | Tranche | Issuance Period | Total Amount NT$ (In Millions) | Coupon Rate | Repayment and Interest Payment | |||||||||
109-2 | A | April 2020 to April 2025 | $ | 5,900.0 | 0.52 | % | Bullet repayment; interest payable annually | |||||||
B | April 2020 to April 2027 | 10,400.0 | 0.58 | % | The same as above | |||||||||
C | April 2020 to April 2030 | 5,300.0 | 0.60 | % | The same as above | |||||||||
109-3 | A | May 2020 to May 2025 | 4,500.0 | 0.55 | % | The same as above | ||||||||
B | May 2020 to May 2027 | 7,500.0 | 0.60 | % | The same as above | |||||||||
C | May 2020 to May 2030 | 2,400.0 | 0.64 | % | The same as above | |||||||||
109-4 | A | July 2020 to July 2025 | 5,700.0 | 0.58 | % | Two equal installments in last two years; interest payable annually | ||||||||
B | July 2020 to July 2027 | 6,300.0 | 0.65 | % | The same as above | |||||||||
C | July 2020 to July 2030 | 1,900.0 | 0.67 | % | The same as above | |||||||||
109-5 | A | September 2020 to September 2025 | 4,800.0 | 0.50 | % | The same as above | ||||||||
B | September 2020 to September 2027 | 8,000.0 | 0.58 | % | The same as above | |||||||||
C | September 2020 to September 2030 | 2,800.0 | 0.60 | % | The same as above | |||||||||
109-6 (green bond) | A | December 2020 to December 2025 | 1,600.0 | 0.40 | % | The same as above | ||||||||
B | December 2020 to December 2027 | 5,600.0 | 0.44 | % | The same as above | |||||||||
C | December 2020 to December 2030 | 4,800.0 | 0.48 | % | The same as above | |||||||||
109-7 | A | December 2020 to December 2025 | 1,900.0 | 0.36 | % | The same as above | ||||||||
B | December 2020 to December 2027 | 10,200.0 | 0.41 | % | The same as above | |||||||||
C | December 2020 to December 2030 | 6,400.0 | 0.45 | % | The same as above | |||||||||
110-1 | A | March 2021 to March 2026 | 4,800.0 | 0.50 | % | Bullet repayment; interest payable annually | ||||||||
B | March 2021 to March 2028 | 11,400.0 | 0.55 | % | The same as above | |||||||||
C | March 2021 to March 2031 | 4,900.0 | 0.60 | % | The same as above | |||||||||
110-2 | A | May 2021 to May 2026 | 5,200.0 | 0.50 | % | The same as above | ||||||||
B | May 2021 to May 2028 | 8,400.0 | 0.58 | % | The same as above | |||||||||
C | May 2021 to May 2031 | 5,600.0 | 0.65 | % | The same as above |
Issuance | Tranche | Issuance Period | Total Amount NT$ (In Millions) | Coupon Rate | Repayment and Interest Payment | |||||||||||
110-3 | A | June 2021 to June 2026 | $ | 6,900.0 | 0.52 | % | Bullet repayment; interest payable annually | |||||||||
B | June 2021 to June 2028 | 7,900.0 | 0.58 | % | The same as above | |||||||||||
C | June 2021 to June 2031 | 4,900.0 | 0.65 | % | The same as above | |||||||||||
110-4 | A | August 2021 to August 2025 | 4,000.0 | 0.485 | % | The same as above | ||||||||||
B | August 2021 to August 2026 | 8,000.0 | 0.50 | % | The same as above | |||||||||||
C | August 2021 to August 2028 | 5,400.0 | 0.55 | % | The same as above | |||||||||||
D | August 2021 to August 2031 | 4,200.0 | 0.62 | % | The same as above | |||||||||||
110-6 | A | October 2021 to April 2026 | 3,200.0 | 0.535 | % | The same as above | ||||||||||
B | October 2021 to October 2026 | 6,900.0 | 0.54 | % | The same as above | |||||||||||
C | October 2021 to October 2028 | 4,600.0 | 0.60 | % | The same as above | |||||||||||
D | October 2021 to October 2031 | 1,600.0 | 0.62 | % | The same as above | |||||||||||
110-7 | A | December 2021 to December 2026 | 7,700.0 | 0.65 | % | The same as above | ||||||||||
B | December 2021 to June 2027 | 3,500.0 | 0.675 | % | The same as above | |||||||||||
C | December 2021 to December 2028 | 5,500.0 | 0.72 | % | The same as above | |||||||||||
(Concluded) | ||||||||||||||||
Issuance | Tranche | Issuance Period | Total Amount US$ (In Millions) | Coupon Rate | Repayment and Interest Payment | |||||||||||
US$ unsecured bonds | ||||||||||||||||
109-1 | — | September 2020 to September 2060 | US$ | 1,000.0 | 2.70 | % | Bullet repayment (callable on the 5th anniversary of the issue date and every anniversary thereafter); interest payable annually | |||||||||
110-5 | — | September 2021 to September 2051 | 1,000.0 | 3.10 | % | The same as above |
Issuance Period | Total Amount US$ (In Millions) | Coupon Rate | Repayment and Interest Payment | |||||
April 2013 to April 2018 | $ | 1,150.0 | 1.625% | Bullet repayment; interest payable semi-annually |
Issuance Period | Total Amount US$ (In Millions) | Coupon Rate | Repayment and Interest Payment | |||||||
September 2020 to September 2025 | US$ | 1,000.0 | 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 | 750.0 | 1.00 | % | The same as above | ||||||
September 2020 to September 2030 | 1,250.0 | 1.375 | % | The same as above | ||||||
April 2021 to April 2026 | 1,100.0 | 1.25 | % | The same as above | ||||||
April 2021 to April 2028 | 900.0 | 1.75 | % | The same as above | ||||||
April 2021 to April 2031 | 1,500.0 | 2.25 | % | The same as above | ||||||
October 2021 to October 2026 | 1,250.0 | 1.75 | % | The same as above | ||||||
October 2021 to October 2031 | 1,250.0 | 2.50 | % | The same as above | ||||||
October 2021 to October 2041 | 1,000.0 | 3.125 | % | The same as above | ||||||
October 2021 to October 2051 | 1,000.0 | 3.25 | % | The same as above |
Issuance | Tranche | Issuance Period | Total Amount NT$ (In Millions) | Coupon Rate | Repayment and Interest Payment | |||||||||||
NT$ unsecured bonds | ||||||||||||||||
111-1 (green bond) | A | January 2022 to January 2027 | $ | 2,100.0 | 0.63 | % | Bullet repayment; interest payable annually | |||||||||
B | January 2022 to January 2029 | 3,300.0 | 0.72 | % | The same as above | |||||||||||
111-2 | A | March 2022 to September 2026 | 3,000.0 | 0.84 | % | The same as above | ||||||||||
B | March 2022 to March 2027 | 9,600.0 | 0.85 | % | The same as above | |||||||||||
C | March 2022 to March 2029 | 1,600.0 | 0.90 | % | The same as above |
20. | LONG-TERM BANK LOANS |
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Unsecured loans | $ | 2,000.0 | $ | 3,510.0 | ||||
Less: Discounts on government grants | (32.4 | ) | (34.2 | ) | ||||
Less: Current portion | — | (166.7 | ) | |||||
$ | 1,967.6 | $ | 3,309.1 | |||||
Loan content | ||||||||
Annual interest rate | 0.4% | 0.4%-0.9% | ||||||
Maturity date | Due by September 2025 | | Due by September 2026 | |
21. | RETIREMENT BENEFIT PLANS |
a. | Defined contribution plans |
b. | Defined benefit plans |
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Current service cost | $ | 145.0 | $ | 137.7 | $ | 135.6 | ||||||
Net interest expense | 126.5 | 144.1 | 124.0 | |||||||||
|
|
|
|
|
| |||||||
Components of defined benefit costs recognized in profit or loss | 271.5 | 281.8 | 259.6 | |||||||||
|
|
|
|
|
|
(Continued)
F - 49
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Remeasurement on the net defined benefit liability: | ||||||||||||
Return on plan assets (excluding amounts included in net interest expense) | $ | 29.3 | $ | (71.3 | ) | $ | (124.4 | ) | ||||
Actuarial loss (gain) arising from experience adjustments | 483.9 | 334.7 | (438.0 | ) | ||||||||
Actuarial gain arising from changes in demographic assumptions | — | — | (233.2 | ) | ||||||||
Actuarial loss (gain) arising from changes in financial assumptions | (258.5 | ) | 597.8 | 541.7 | ||||||||
|
|
|
|
|
| |||||||
Components of defined benefit costs recognized in other comprehensive income | 254.7 | 861.2 | (253.9 | ) | ||||||||
|
|
|
|
|
| |||||||
Total | $ | 526.2 | $ | 1,143.0 | $ | 5.7 | ||||||
|
|
|
|
|
|
(Concluded)
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Current service cost | $ | 135.6 | $ | 123.3 | $ | 145.3 | ||||||
Net interest expense | 124.0 | 81.6 | 47.2 | |||||||||
Components of defined benefit costs recognized in profit or loss | 259.6 | 204.9 | 192.5 | |||||||||
Remeasurement on the net defined benefit liability: | ||||||||||||
Return on plan assets (excluding amounts included in net interest expense) | (124.4 | ) | (139.2 | ) | (73.3 | ) | ||||||
Actuarial loss (gain) arising from experience adjustments | (438.0 | ) | 494.1 | 94.3 | ||||||||
Actuarial loss (gain) arising from changes in demographic assumptions | (233.2 | ) | — | 277.4 | ||||||||
Actuarial loss (gain) arising from changes in financial assumptions | 541.7 | 3,161.9 | (540.5 | ) | ||||||||
Components of defined benefit costs recognized in other comprehensive income | (253.9 | ) | 3,516.8 | (242.1 | ) | |||||||
Total | $ | 5.7 | $ | 3,721.7 | $ | (49.6 | ) | |||||
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Cost of revenue | $ | 175.3 | $ | 177.8 | $ | 157.8 | ||||||
Research and development expenses | 75.3 | 79.1 | 72.7 | |||||||||
General and administrative expenses | 16.7 | 20.6 | 25.1 | |||||||||
Marketing expenses | 4.2 | 4.3 | 4.0 | |||||||||
|
|
|
|
|
| |||||||
$ | 271.5 | $ | 281.8 | $ | 259.6 | |||||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Cost of revenue | $ | 157.8 | $ | 126.3 | $ | 124.5 | ||||||
Research and development expenses | 72.7 | 57.3 | 52.8 | |||||||||
General and administrative expenses | 25.1 | 18.2 | 12.5 | |||||||||
Marketing expenses | 4.0 | 3.1 | 2.7 | |||||||||
$ | 259.6 | $ | 204.9 | $ | 192.5 | |||||||
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Present value of defined benefit obligation | $ | 13,662.7 | $ | 13,484.1 | ||||
Fair value of plan assets | (4,011.3 | ) | (4,301.6 | ) | ||||
|
|
|
| |||||
Net defined benefit liability | $ | 9,651.4 | $ | 9,182.5 | ||||
|
|
|
|
F - 50
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Present value of defined benefit obligation | $ | 16,980.3 | $ | 16,585.5 | ||||
Fair value of plan assets | (5,066.2 | ) | (5,548.6 | ) | ||||
Net defined benefit liability | $ | 11,914.1 | $ | 11,036.9 | ||||
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Balance, beginning of year | $ | 12,480.5 | $ | 12,774.6 | $ | 13,662.7 | ||||||
Current service cost | 145.0 | 137.7 | 135.6 | |||||||||
Interest expense | 185.6 | 207.8 | 175.4 | |||||||||
Remeasurement: | ||||||||||||
Actuarial loss (gain) arising from experience adjustments | 483.9 | 334.7 | (438.0 | ) | ||||||||
Actuarial gain arising from changes in demographic assumptions | — | — | (233.2 | ) | ||||||||
Actuarial loss (gain) arising from changes in financial assumptions | (258.5 | ) | 597.8 | 541.7 | ||||||||
Benefits paid from plan assets | (261.9 | ) | (274.3 | ) | (344.1 | ) | ||||||
Benefits paid directly by the Company | — | (115.6 | ) | (16.0 | ) | |||||||
|
|
|
|
|
| |||||||
Balance, end of year | $ | 12,774.6 | $ | 13,662.7 | $ | 13,484.1 | ||||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Balance, beginning of year | $ | 13,662.7 | $ | 13,484.1 | $ | 16,980.3 | ||||||
Current service cost | 135.6 | 123.3 | 145.3 | |||||||||
Interest expense | 175.4 | 118.8 | 66.7 | |||||||||
Remeasurement: | ||||||||||||
Actuarial loss (gain) arising from experience adjustments | (438.0 | ) | 494.1 | 94.3 | ||||||||
Actuarial loss (gain) arising from changes in demographic assumptions | (233.2 | ) | — | 277.4 | ||||||||
Actuarial loss (gain) arising from changes in financial assumptions | 541.7 | 3,161.9 | (540.5 | ) | ||||||||
Benefits paid from plan assets | (344.1 | ) | (399.0 | ) | (431.8 | ) | ||||||
Benefits paid directly by the Company | (16.0 | ) | (2.9 | ) | (6.2 | ) | ||||||
Balance, end of year | $ | 13,484.1 | $ | 16,980.3 | $ | 16,585.5 | ||||||
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Balance, beginning of year | $ | 3,929.1 | $ | 3,923.9 | $ | 4,011.3 | ||||||
Interest income | 59.1 | 63.7 | 51.4 | |||||||||
Remeasurement: | ||||||||||||
Return on plan assets (excluding amounts included in net interest expense) | (29.3 | ) | 71.3 | 124.4 | ||||||||
Contributions from employer | 226.9 | 226.7 | 458.6 | |||||||||
Benefits paid from plan assets | (261.9 | ) | (274.3 | ) | (344.1 | ) | ||||||
|
|
|
|
|
| |||||||
Balance, end of year | $ | 3,923.9 | $ | 4,011.3 | $ | 4,301.6 | ||||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Balance, beginning of year | $ | 4,011.3 | $ | 4,301.6 | $ | 5,066.2 | ||||||
Interest income | 51.4 | 37.2 | 19.5 | |||||||||
Remeasurement: | ||||||||||||
Return on plan assets (excluding amounts included in net interest expense) | 124.4 | 139.2 | 73.3 | |||||||||
Contributions from employer | 458.6 | 987.2 | 821.4 | |||||||||
Benefits paid from plan assets | (344.1 | ) | (399.0 | ) | (431.8 | ) | ||||||
Balance, end of year | $ | 4,301.6 | $ | 5,066.2 | $ | 5,548.6 | ||||||
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Cash | $ | 756.1 | $ | 713.2 | ||||
Equity instruments | 2,148.1 | 2,313.8 | ||||||
Debt instruments | 1,107.1 | 1,274.6 | ||||||
|
|
|
| |||||
$ | 4,011.3 | $ | 4,301.6 | |||||
|
|
|
|
F - 51
$ 632.8 $ 1,001.0 2,926.7 2,951.8 1,506.7 1,595.8 $ 5,066.2 $ 5,548.6
Measurement Date | ||||
December 31, 2018 | December 31, 2019 | |||
Discount rate | 1.30% | 0.90% | ||
Future salary increase rate | 3.00% | 3.00% |
Measurement Date | ||||
December 31, 2020 | December 31, 2021 | |||
Discount rate | 0.40% | 0.75% | ||
Future salary increase rate | 3.00% (Note) | 3.00% |
1) | Investment risk: The pension funds are invested in equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the government’s designated authorities or under the mandated management. However, under the R.O.C. Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a two-year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return. |
2) | Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the debt investments of the plan assets. |
|
3) | Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation. |
|
F - 52
22. |
EQUITY |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Capacity guarantee | $ | 9,289.6 | $ | 1,499.4 | ||||
Receivables guarantee | 653.7 | — | ||||||
Others | 245.7 | 230.5 | ||||||
|
|
|
| |||||
$ | 10,189.0 | $ | 1,729.9 | |||||
|
|
|
| |||||
Current portion (classified under accrued expenses and other current liabilities) | $ | 6,835.7 | $ | 1,553.0 | ||||
Noncurrent portion | 3,353.3 | 176.9 | ||||||
|
|
|
| |||||
$ | 10,189.0 | $ | 1,729.9 | |||||
|
|
|
|
Some of guarantee deposits were refunded to customers by offsetting related accounts receivable.
|
a. | Capital stock |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Authorized shares | 28,050.0 | 28,050.0 | ||||||
|
|
|
| |||||
Authorized capital | $ | 280,500.0 | $ | 280,500.0 | ||||
|
|
|
| |||||
Issued and paid shares | 25,930.3 | 25,930.3 | ||||||
|
|
|
| |||||
Issued capital | $ | 259,303.8 | $ | 259,303.8 | ||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Authorized shares | 28,050.0 | 28,050.0 | ||||||
Authorized capital | $ | 280,500.0 | $ | 280,500.0 | ||||
Issued and paid shares | 25,930.3 | 25,930.3 | ||||||
Issued capital | $ | 259,303.8 | $ | 259,303.8 | ||||
F - 53
b. | Capital surplus |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Additionalpaid-in capital | $ | 24,185.0 | $ | 24,185.0 | ||||
From merger | 22,804.5 | 22,804.5 | ||||||
From convertible bonds | 8,892.9 | 8,892.9 | ||||||
From share of changes in equities of subsidiaries | 121.5 | 121.8 | ||||||
From share of changes in equities of associates | 282.8 | 302.2 | ||||||
Donations | 29.3 | 33.3 | ||||||
|
|
|
| |||||
$ | 56,316.0 | $ | 56,339.7 | |||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Additional paid-in capital | $ | 24,185.0 | $ | 24,185.0 | ||||
From merger | 22,804.5 | 22,804.5 | ||||||
From convertible bonds | 8,892.9 | 8,892.9 | ||||||
From difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal | — | 8,406.3 | ||||||
From share of changes in equities of subsidiaries | 121.8 | 113.9 | ||||||
From share of changes in equities of associates | 302.5 | 307.2 | ||||||
Donations | 40.5 | 51.7 | ||||||
$ | 56,347.2 | $ | 64,761.5 | |||||
c. | Retained earnings and dividend policy |
The amendments to
TSMC’s amended Articles of Incorporation provide that, when 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
F - 54
Appropriation of Earnings | Cash Dividends Per Share (NT$) | |||||||||||||||
For Fiscal Year 2017 | For Fiscal Year 2018 | For Fiscal Year 2017 | For Fiscal Year 2018 | |||||||||||||
NT$ (In Millions) | NT$ (In Millions) | |||||||||||||||
Legal capital reserve | $ | 34,311.2 | $ | 35,113.1 | ||||||||||||
|
|
|
| |||||||||||||
Special capital reserve | $ | 26,907.5 | $ | (11,459.5 | ) | |||||||||||
|
|
|
| |||||||||||||
Cash dividends to shareholders | $ | 207,443.0 | $ | 207,443.0 | $8.0 | $8.0 | ||||||||||
|
|
|
|
The appropriations
First Quarter of 2019 | Second Quarter of 2019 | Third Quarter of 2019 | Fourth Quarter of 2019 | |||||||||||||
NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | |||||||||||||
Resolution date of TSMC’s Board of Directors in its meeting | June 5, 2019 | August 13, 2019 | November 12, 2019 | February 11, 2020 | ||||||||||||
Special capital reserve | $ | (4,724.0 | ) | $ | (3,338.2 | ) | $ | 3,289.2 | $ | 16,893.0 | ||||||
Cash dividends to shareholders | $ | 51,860.8 | $ | 64,826.0 | $ | 64,826.0 | $ | 64,826.0 | ||||||||
Cash dividends per share (NT$) | $ | 2.0 | $ | 2.5 | $ | 2.5 | $ | 2.5 | ||||||||
First Quarter of 2020 | Second Quarter of 2020 | Third Quarter of 2020 | Fourth Quarter of 2020 | |||||||||||||
NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | |||||||||||||
Resolution date of TSMC’s Board of Directors in its meeting | May 12, 2020 | August 11, 2020 | November 10, 2020 | February 9, 2021 | ||||||||||||
Special capital reserve | $ | (2,694.8 | ) | $ | 11,884.5 | $ | 5,501.3 | $ | 12,420.7 | |||||||
Cash dividends to shareholders | $ | 64,826.0 | $ | 64,826.0 | $ | 64,826.0 | $ | 64,826.0 | ||||||||
Cash dividends per share (NT$) | $ | 2.5 | $ | 2.5 | $ | 2.5 | $ | 2.5 | ||||||||
First Quarter of 2019 | Second Quarter of 2019 | Third Quarter of 2019 | Fourth Quarter of 2019 | |||||||||||||
NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | |||||||||||||
Resolution date of TSMC’s Board of Directors in its meeting | | June 5, 2019 | | August 13, 2019 | | November 12, 2019 | | February 11, 2020 | ||||||||
Special capital reserve | $ | (4,724.0 | ) | $ | (3,338.2 | ) | $ | 3,289.2 | $ | 16,893.0 | ||||||
|
|
|
|
|
|
|
| |||||||||
Cash dividends to shareholders | $ | 51,860.8 | $ | 64,826.0 | $ | 64,826.0 | $ | 64,826.0 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Cash dividends per share (NT$) | $ | 2.0 | $ | 2.5 | $ | 2.5 | $ | 2.5 | ||||||||
|
|
|
|
|
|
|
|
First Quarter of 2021 | Second Quarter of 2021 | Third Quarter of 2021 | Fourth Quarter of 2021 | |||||||||||||
NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | |||||||||||||
Resolution date of TSMC’s Board of Directors in its meeting | June 9, 2021 | August 10, 2021 | November 9, 2021 | February 15, 2022 | ||||||||||||
Special capital reserve | $ | (6,287.0 | ) | $ | 10,201.2 | $ | 710.2 | $ | 3,304.3 | |||||||
Cash dividends to shareholders | $ | 71,308.5 | $ | 71,308.5 | $ | 71,308.5 | $ | 71,308.5 | ||||||||
Cash dividends per share (NT$) | $ | 2.75 | $ | 2.75 | $ | 2.75 | $ | 2.75 | ||||||||
d. | Others |
Year Ended December 31, 2017 | ||||||||||||||||||||
Foreign Currency Translation Reserve | Unrealized Gain (Loss) from Available-for- sale Financial Assets | Cash Flow Hedges Reserve | Unearned Stock-Based Employee Compensation | Total | ||||||||||||||||
NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | ||||||||||||||||
Balance, beginning of year | $ | 1,661.2 | $ | 2.6 | $ | 0.1 | $ | — | $ | 1,663.9 | ||||||||||
Exchange differences arising on translation of foreign operations | (28,257.4 | ) | — | — | — | (28,257.4 | ) | |||||||||||||
Changes in fair value ofavailable-for-sale financial assets | — | (154.7 | ) | — | — | (154.7 | ) | |||||||||||||
Cumulative (gain)/loss reclassified to profit or loss upon disposal ofavailable-for-sale financial assets | — | (61.2 | ) | — | — | (61.2 | ) | |||||||||||||
Gain/(loss) arising on changes in the fair value of hedging instruments | — | — | 99.6 | — | 99.6 | |||||||||||||||
Transferred to initial carrying amount of hedged items | — | — | (94.9 | ) | — | (94.9 | ) | |||||||||||||
Share of other comprehensive income (loss) of associates | (101.5 | ) | 2.1 | — | — | (99.4 | ) | |||||||||||||
Share of unearned stock-based employee compensation of associates | — | — | — | (10.3 | ) | (10.3 | ) | |||||||||||||
Income tax effect | — | (2.9 | ) | (0.6 | ) | — | (3.5 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance, end of year | $ | (26,697.7 | ) | $ | (214.1 | ) | $ | 4.2 | $ | (10.3 | ) | $ | (26,917.9 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019 | ||||||||||||||||||||
Foreign Currency Translation Reserve | Unrealized Gain (Loss) on Financial Assets at FVTOCI | Gain (Loss) on Hedging Instruments | Unearned Stock-Based Employee Compensation | Total | ||||||||||||||||
NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | ||||||||||||||||
Balance, beginning of year | $ | (12,042.4 | ) | $ | (3,429.3 | ) | $ | 23.6 | $ | (1.8 | ) | $ | (15,449.9 | ) | ||||||
Exchange differences arising on translation of foreign operations | (14,693.5 | ) | — | — | — | (14,693.5 | ) | |||||||||||||
Unrealized gain (loss) on financial assets at FVTOCI | ||||||||||||||||||||
Equity instruments | — | 334.5 | — | — | 334.5 | |||||||||||||||
Debt instruments | — | 3,097.3 | — | — | 3,097.3 | |||||||||||||||
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal | — | (162.1 | ) | — | — | (162.1 | ) | |||||||||||||
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal | — | (537.8 | ) | — | — | (537.8 | ) | |||||||||||||
Loss allowance adjustments from debt instruments | — | 6.9 | — | — | 6.9 | |||||||||||||||
Gain (loss) arising on changes in the fair value of hedging instruments | — | — | (109.6 | ) | — | (109.6 | ) | |||||||||||||
Other comprehensive income transferred to profit or loss due to disposal of subsidiary | 4.6 | — | — | — | 4.6 | |||||||||||||||
Transferred to initial carrying amount of hedged items | — | — | 82.3 | — | 82.3 | |||||||||||||||
Share of other comprehensive income (loss) of associates | (140.1 | ) | (11.8 | ) | (0.1 | ) | — | (152.0 | ) | |||||||||||
Share of unearned stock-based employee compensation of associates | — | — | — | 1.6 | 1.6 | |||||||||||||||
Income tax effect | — | 9.4 | — | — | 9.4 | |||||||||||||||
Balance, end of year | $ | (26,871.4 | ) | $ | (692.9 | ) | $ | (3.8 | ) | $ | (0.2 | ) | $ | (27,568.3 | ) | |||||
Year Ended December 31, 2018 | ||||||||||||||||||||
Foreign Currency Translation Reserve | Unrealized Gain (Loss) on Financial Assets at FVTOCI | Gain (Loss) on Hedging Instruments | Unearned Stock-Based Employee Compensation | Total | ||||||||||||||||
NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | ||||||||||||||||
Balance, beginning of year(IFRS 9) | $ | (26,697.7 | ) | $ | (524.9 | ) | $ | 4.2 | $ | (10.3 | ) | $ | (27,228.7 | ) | ||||||
Exchange differences arising on translation of foreign operations | 14,562.0 | — | — | — | 14,562.0 | |||||||||||||||
Unrealized gain (loss) on financial assets at FVTOCI | ||||||||||||||||||||
Equity instruments | — | (3,311.6 | ) | — | — | (3,311.6 | ) | |||||||||||||
Debt instruments | — | (1,858.0 | ) | — | — | (1,858.0 | ) | |||||||||||||
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal | — | 1,193.1 | — | — | 1,193.1 | |||||||||||||||
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal | — | 989.1 | — | — | 989.1 | |||||||||||||||
Loss allowance adjustments from debt instruments | — | (2.0 | ) | — | — | (2.0 | ) | |||||||||||||
Gain (loss) arising on changes in the fair value of hedging instruments | — | — | 41.0 | — | 41.0 | |||||||||||||||
Transferred to initial carrying amount of hedged items | — | — | (22.2 | ) | — | (22.2 | ) | |||||||||||||
Share of other comprehensive income (loss) of associates | 93.3 | (6.8 | ) | — | — | 86.5 | ||||||||||||||
Share of unearned stock-based employee compensation of associates | — | — | — | 8.5 | 8.5 | |||||||||||||||
Income tax effect | — | 91.8 | 0.6 | — | 92.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance, end of year | $ | (12,042.4 | ) | $ | (3,429.3 | ) | $ | 23.6 | $ | (1.8 | ) | $ | (15,449.9 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019 | ||||||||||||||||||||
Foreign Currency Translation Reserve | Unrealized Gain (Loss) on Financial Assets at FVTOCI | Gain (Loss) on Hedging Instruments | Unearned Stock-Based Employee Compensation | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Balance, beginning of year | $ | (12,042.4 | ) | $ | (3,429.3 | ) | $ | 23.6 | $ | (1.8 | ) | $ | (15,449.9 | ) | ||||||
Exchange differences arising on translation of foreign operations | (14,693.5 | ) | — | — | — | (14,693.5 | ) | |||||||||||||
Unrealized gain (loss) on financial assets at FVTOCI | ||||||||||||||||||||
Equity instruments | — | 334.5 | — | — | 334.5 | |||||||||||||||
Debt instruments | — | 3,097.3 | — | — | 3,097.3 | |||||||||||||||
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal | — | (162.1 | ) | — | — | (162.1 | ) | |||||||||||||
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal | — | (537.8 | ) | — | — | (537.8 | ) | |||||||||||||
Loss allowance adjustments from debt instruments | — | 6.9 | — | — | 6.9 | |||||||||||||||
Gain (loss) arising on changes in the fair value of hedging instruments | — | — | (109.6 | ) | — | (109.6 | ) | |||||||||||||
Other comprehensive income transferred to profit or loss due to disposal of subsidiary | 4.6 | — | — | — | 4.6 | |||||||||||||||
Transferred to initial carrying amount of hedged items | — | — | 82.3 | — | 82.3 | |||||||||||||||
Share of other comprehensive income (loss) of associates | (140.1 | ) | (11.8 | ) | (0.1 | ) | — | (152.0 | ) | |||||||||||
Share of unearned stock-based employee compensation of associates | — | — | — | 1.6 | 1.6 | |||||||||||||||
Income tax effect | — | 9.4 | — | — | 9.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance, end of year | $ | (26,871.4 | ) | $ | (692.9 | ) | $ | (3.8 | ) | $ | (0.2 | ) | $ | (27,568.3 | ) | |||||
|
|
|
|
|
|
|
|
|
|
F - 56
Year Ended December 31, 2020 | ||||||||||||||||||||
Foreign Currency Translation Reserve | Unrealized Gain (Loss) on Financial Assets at FVTOCI | Gain (Loss) on Hedging Instruments | Unearned Stock-Based Employee Compensation | Total | ||||||||||||||||
NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | ||||||||||||||||
Balance, beginning of year | $ | (26,871.4 | ) | $ | (692.9 | ) | $ | (3.8 | ) | $ | (0.2 | ) | $ | (27,568.3 | ) | |||||
Exchange differences arising on translation of foreign operations | (29,846.8 | ) | — | — | — | (29,846.8 | ) | |||||||||||||
Unrealized gain (loss) on financial assets at FVTOCI | ||||||||||||||||||||
Equity instruments | — | 423.2 | — | — | 423.2 | |||||||||||||||
Debt instruments | — | 3,907.0 | — | — | 3,907.0 | |||||||||||||||
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal | — | 108.7 | — | — | 108.7 | |||||||||||||||
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal | — | (1,439.4 | ) | — | — | (1,439.4 | ) | |||||||||||||
Loss allowance adjustments from debt instruments | — | (0.9 | ) | — | — | (0.9 | ) | |||||||||||||
Gain (loss) arising on changes in the fair value of hedging instruments | — | — | 24.1 | — | 24.1 | |||||||||||||||
Transferred to initial carrying amount of hedged items | — | — | (20.3 | ) | — | (20.3 | ) | |||||||||||||
Share of other comprehensive income (loss) of associates | (283.4 | ) | 15.5 | 0 | — | (267.9 | ) | |||||||||||||
Share of unearned stock-based employee compensation of associates | — | — | — | 0.2 | 0.2 | |||||||||||||||
Income tax effect | — | 0.6 | — | — | 0.6 | |||||||||||||||
Balance, end of year | $ | (57,001.6 | ) | $ | 2,321.8 | $ | 0 | $ | 0 | $ | (54,679.8 | ) | ||||||||
Year Ended December 31, 2021 | ||||||||||||||||||||
Foreign Currency Translation Reserve | Unrealized Gain (Loss) on Financial Assets at FVTOCI | Gain (Loss) on Hedging Instruments | Unearned Stock-Based Employee Compensation | Total | ||||||||||||||||
NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | NT$ (In Millions) | ||||||||||||||||
Balance, beginning of year | $ | (57,001.6 | ) | $ | 2,321.8 | $ | 0 | $ | 0 | $ | (54,679.8 | ) | ||||||||
Exchange differences arising on translation of foreign operations | (6,181.7 | ) | — | — | — | (6,181.7 | ) | |||||||||||||
Unrealized gain (loss) on financial assets at FVTOCI | ||||||||||||||||||||
Equity instruments | — | 1,898.2 | — | — | 1,898.2 | |||||||||||||||
Debt instruments | — | (3,339.9 | ) | — | — | (3,339.9 | ) | |||||||||||||
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal | — | (187.7 | ) | — | — | (187.7 | ) | |||||||||||||
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal | — | (93.2 | ) | — | — | (93.2 | ) | |||||||||||||
Loss allowance adjustments from debt instruments | — | 1.3 | — | — | 1.3 | |||||||||||||||
Gain (loss) arising on changes in the fair value of hedging instruments | — | — | 90.2 | — | 90.2 | |||||||||||||||
Transferred to initial carrying amount of hedged items | — | — | 48.5 | — | 48.5 | |||||||||||||||
Share of other comprehensive income (loss) of associates | (120.0 | ) | 30.0 | (14.7 | ) | — | (104.7 | ) | ||||||||||||
Income tax effect | — | (56.2 | ) | (3.4 | ) | 0— | (59.6 | ) | ||||||||||||
Balance, end of year | $ | (63,303.3 | ) | $ | 574.3 | $ | 120.6 | $ | — | $ | (62,608.4 | ) | ||||||||
e. | Treasury stock |
23. | NET REVENUE |
a. | Disaggregation of revenue from contracts with customers |
Years Ended December 31 | ||||||||
2018 | 2019 | |||||||
NT$ | NT$ | |||||||
Product | (In Millions) | (In Millions) | ||||||
Wafer | $ | 911,296.4 | $ | 927,317.3 | ||||
Others | 120,177.2 | 142,668.1 | ||||||
|
|
|
| |||||
$ | 1,031,473.6 | $ | 1,069,985.4 | |||||
|
|
|
|
Years Ended December 31 | ||||||||
2018 | 2019 | |||||||
NT$ | NT$ | |||||||
Geography | (In Millions) | (In Millions) | ||||||
Taiwan | $ | 78,260.8 | $ | 84,255.2 | ||||
United States | 632,821.5 | 634,713.0 | ||||||
China | 175,794.2 | 208,101.4 | ||||||
Europe, the Middle East and Africa | 71,068.5 | 67,568.2 | ||||||
Japan | 58,125.9 | 57,468.6 | ||||||
Others | 15,402.7 | 17,879.0 | ||||||
|
|
|
| |||||
$ | 1,031,473.6 | $ | 1,069,985.4 | |||||
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
Product | (In Millions) | (In Millions) | (In Millions) | |||||||||
Wafer | $ | 927,317.3 | $ | 1,178,456.3 | $ | 1,405,300.3 | ||||||
Others | 142,668.1 | 160,798.5 | 182,114.7 | |||||||||
$ | 1,069,985.4 | $ | 1,339,254.8 | $ | 1,587,415.0 | |||||||
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
Geography | (In Millions) | (In Millions) | (In Millions) | |||||||||
Taiwan | $ | 84,255.2 | $ | 129,082.9 | $ | 203,963.7 | ||||||
United States | 634,713.0 | 817,911.0 | 1,015,996.4 | |||||||||
China | 208,101.4 | 233,783.3 | 164,552.1 | |||||||||
Europe, the Middle East and Africa | 67,568.2 | 70,213.4 | 89,010.1 | |||||||||
Japan | 57,468.6 | 63,299.2 | 71,920.8 | |||||||||
Others | 17,879.0 | 24,965.0 | 41,971.9 | |||||||||
$ | 1,069,985.4 | $ | 1,339,254.8 | $ | 1,587,415.0 | |||||||
Years Ended December 31 | ||||||||
2018 | 2019 | |||||||
NT$ | NT$ | |||||||
Platform | (In Millions) | (In Millions) | ||||||
Smartphone | $ | 466,452.3 | $ | 523,612.9 | ||||
High Performance Computing | 341,910.2 | 315,822.3 | ||||||
Internet of Things | 65,091.3 | 86,342.7 | ||||||
Automotive | 51,709.8 | 47,914.5 | ||||||
Digital Consumer Electronics | 58,470.2 | 53,733.4 | ||||||
Others | 47,839.8 | 42,559.6 | ||||||
|
|
|
| |||||
$ | 1,031,473.6 | $ | 1,069,985.4 | |||||
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
Platform | (In Millions) | (In Millions) | (In Millions) | |||||||||
Smartphone | $ | 523,612.9 | $ | 645,303.6 | $ | 695,091.2 | ||||||
High Performance Computing | 315,822.3 | 439,810.0 | 587,780.1 | |||||||||
Internet of Things | 86,342.7 | 110,355.2 | 133,006.0 | |||||||||
Automotive | 47,914.5 | 44,367.5 | 67,076.4 | |||||||||
Digital Consumer Electronics | 53,733.4 | 54,555.7 | 55,577.2 | |||||||||
Others | 42,559.6 | 44,862.8 | 48,884.1 | |||||||||
$ | 1,069,985.4 | $ | 1,339,254.8 | $ | 1,587,415.0 | |||||||
Years Ended December 31 | ||||||||
2018 | 2019 | |||||||
NT$ | NT$ | |||||||
Resolution | (In Millions) | (In Millions) | ||||||
7-nanometer | $ | 81,680.7 | $ | 249,548.1 | ||||
10-nanometer | 96,989.5 | 23,266.4 | ||||||
16-nanometer | 187,370.6 | 186,700.9 | ||||||
20-nanometer | 23,618.4 | 9,535.8 | ||||||
28-nanometer | 178,440.4 | 149,578.7 | ||||||
40/45-nanometer | 101,801.0 | 93,366.3 | ||||||
65-nanometer | 76,122.3 | 69,250.0 | ||||||
90-nanometer | 36,652.1 | 25,624.2 | ||||||
0.11/0.13 micron | 20,677.7 | 22,947.3 | ||||||
0.15/0.18 micron | 81,182.6 | 77,564.5 | ||||||
0.25 micron and above | 26,761.1 | 19,935.1 | ||||||
|
|
|
| |||||
Wafer revenue | $ | 911,296.4 | $ | 927,317.3 | ||||
|
|
|
|
Starting the first quarter of 2019, the Company reported its net revenue breakdown by platform, instead of by application. The Company believes this change better represents the Company’s results.
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
Resolution | (In Millions) | (In Millions) | (In Millions) | |||||||||
5-nanometer | $ | 0 | $ | 90,934.5 | $ | 262,327.4 | ||||||
7-nanometer | 249,548.1 | 394,837.0 | 440,383.1 | |||||||||
10-nanometer | 23,266.4 | 3,403.1 | 660.0 | |||||||||
16-nanometer | 186,700.9 | 197,959.0 | 191,058.9 | |||||||||
20-nanometer | 9,535.8 | 8,450.9 | 5,668.8 | |||||||||
28-nanometer | 149,578.7 | 149,367.7 | 153,066.6 | |||||||||
40/45-nanometer | 93,366.3 | 103,176.5 | 103,413.6 | |||||||||
65-nanometer | 69,250.0 | 61,226.7 | 66,467.9 | |||||||||
90-nanometer | 25,624.2 | 29,380.4 | 32,260.3 | |||||||||
0.11/0.13 micron | 22,947.3 | 33,197.1 | 40,558.5 | |||||||||
0.15/0.18 micron | 77,564.5 | 86,008.5 | 86,700.3 | |||||||||
0.25 micron and above | 19,935.1 | 20,514.9 | 22,734.9 | |||||||||
Wafer revenue | $ | 927,317.3 | $ | 1,178,456.3 | $ | 1,405,300.3 | ||||||
b. | Contract balances |
January 1, 2018 | December 31, 2018 | December 31, 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Contract liabilities (classified under accrued expenses and other current liabilities) | $ | 32,434.8 | $ | 4,684.0 | $ | 6,784.3 | ||||||
|
|
|
|
|
|
January 1, 2020 | December 31, 2020 | December 31, 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Contract liabilities (classified under accrued expenses and other current liabilities) | $ | 6,784.3 | $ | 13,775.1 | $ | 39,762.6 | ||||||
c. | Temporary receipts from customers |
December 31, 2021 | ||||
NT$ | ||||
(In Millions) | ||||
Current portion (classified under accrued expenses and other current liabilities) | $ | 30,612.7 | ||
Noncurrent portion (classified under other noncurrent liabilities) | 155,381.5 | |||
$ | 185,994.2 | |||
d. | Refund liabilities |
F - 58
24. |
INTEREST INCOME |
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Loss on disposal or retirement of property, plant and equipment, net | $ | (1,097.9 | ) | $ | (1,005.6 | ) | $ | (950.0 | ) | |||
Reversal of impairment loss (impairment loss) on property, plant and equipment | — | (423.5 | ) | 301.4 | ||||||||
Others | (267.6 | ) | (672.4 | ) | 152.3 | |||||||
|
|
|
|
|
| |||||||
$ | (1,365.5 | ) | $ | (2,101.5 | ) | $ | (496.3 | ) | ||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Interest income | ||||||||||||
Bank deposits | $ | 11,454.0 | $ | 5,139.1 | $ | 2,834.8 | ||||||
Financial assets at FVTPL | 339.5 | 2.5 | — | |||||||||
Financial assets at FVTOCI | 3,476.2 | 3,121.9 | 2,192.5 | |||||||||
Financial assets at amortized cost | 919.7 | 754.9 | 681.5 | |||||||||
$ | 16,189.4 | $ | 9,018.4 | $ | 5,708.8 | |||||||
25. |
FINANCE COSTS |
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Interest income | ||||||||||||
Bank deposits | $ | 6,412.8 | $ | 10,310.7 | $ | 11,454.0 | ||||||
Financial assets at FVTPL | — | 382.7 | 339.5 | |||||||||
Financial assets at FVTOCI | — | 3,078.6 | 3,476.2 | |||||||||
Financial assets at amortized cost | — | 922.4 | 919.7 | |||||||||
Available-for-sale financial assets | 2,091.4 | — | — | |||||||||
Held-to-maturity financial assets | 568.6 | — | — | |||||||||
Structured product | 391.9 | — | — | |||||||||
|
|
|
|
|
| |||||||
9,464.7 | 14,694.4 | 16,189.4 | ||||||||||
Dividend income | 145.6 | 158.4 | 417.3 | |||||||||
|
|
|
|
|
| |||||||
$ | 9,610.3 | $ | 14,852.8 | $ | 16,606.7 | |||||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Interest expense | ||||||||||||
Corporate bonds | $ | 1,139.9 | $ | 1,337.3 | $ | 5,203.0 | ||||||
Lease liabilities | 240.9 | 227.8 | 193.3 | |||||||||
Bank loans | 1,869.4 | 500.9 | 17.6 | |||||||||
Others | 0.7 | 15.5 | 0.3 | |||||||||
$ | 3,250.9 | $ | 2,081.5 | $ | 5,414.2 | |||||||
26. |
|
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Interest expense | ||||||||||||
Bank loans | $ | 766.6 | $ | 1,417.3 | $ | 1,869.4 | ||||||
Corporate bonds | 2,563.6 | 1,633.8 | 1,139.9 | |||||||||
Lease liabilities | — | — | 240.9 | |||||||||
Others | 0.1 | 0.1 | 0.7 | |||||||||
|
|
|
|
|
| |||||||
$ | 3,330.3 | $ | 3,051.2 | $ | 3,250.9 | |||||||
|
|
|
|
|
|
F - 59
OTHER GAINS AND LOSSES, NET |
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Gain (loss) on disposal of financial assets, net | ||||||||||||
Investments in debt instruments at FVTOCI | $ | — | $ | (989.1 | ) | $ | 537.8 | |||||
Available-for-sale financial assets | 89.8 | — | — | |||||||||
Gain (loss) from disposal of subsidiaries | 17.3 | — | (4.6 | ) | ||||||||
Net gain (loss) on financial instruments at FVTPL | ||||||||||||
Mandatorily measured at FVTPL | — | (2,293.9 | ) | (2,360.7 | ) | |||||||
Held for trading | 2,253.7 | — | — | |||||||||
Designated as at FVTPL | 131.0 | — | — | |||||||||
Gain (loss) arising from fair value hedges, net | (30.3 | ) | (2.3 | ) | 13.1 | |||||||
Impairment loss on financial assets | ||||||||||||
Available-for-sale financial assets | (29.6 | ) | — | — | ||||||||
The reversal (accrual) of expected credit loss of financial assets | ||||||||||||
Investments in debt instruments at FVTOCI | — | 2.0 | (6.9 | ) | ||||||||
Financial assets at amortized cost | — | 0.4 | 5.2 | |||||||||
Other gains (losses), net | 385.5 | (127.9 | ) | 665.1 | ||||||||
|
|
|
|
|
| |||||||
$ | 2,817.4 | $ | (3,410.8 | ) | $ | (1,151.0 | ) | |||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Gain on disposal of financial assets, net | ||||||||||||
Investments in debt instruments at FVTOCI | $ | 537.8 | $ | 1,439.4 | $ | 93.2 | ||||||
Loss on disposal of subsidiaries | (4.6 | ) | — | — | ||||||||
Gain (loss) on financial instruments at FVTPL, net | ||||||||||||
Mandatorily measured at FVTPL | (2,360.7 | ) | 8,244.5 | (7,973.6 | ) | |||||||
Gain arising from fair value hedges, net | 13.1 | — | — |
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
The reversal (accrual) of expected credit loss of financial assets | ||||||||||||
Investments in debt instruments at FVTOCI | $ | (6.9 | ) | $ | 0.9 | $ | (1.3 | ) | ||||
Financial assets at amortized cost | 5.2 | (4.6 | ) | 4.0 | ||||||||
Other gains, net | 665.1 | 426.2 | 489.7 | |||||||||
$ | (1,151.0 | ) | $ | 10,106.4 | $ | (7,388.0 | ) | |||||
27. | INCOME TAX |
a. | Income tax expense recognized in profit or loss |
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Current income tax expense | ||||||||||||
Current tax expense recognized in the current year | $ | 73,851.4 | $ | 60,584.3 | $ | 47,135.5 | ||||||
Income tax adjustments on prior years | (19,107.0 | ) | (21,753.0 | ) | (10,193.8 | ) | ||||||
Other income tax adjustments | 152.8 | 152.9 | (41.5 | ) | ||||||||
|
|
|
|
|
| |||||||
54,897.2 | 38,984.2 | 36,900.2 | ||||||||||
|
|
|
|
|
| |||||||
Deferred income tax expense (benefit) | ||||||||||||
Effect of tax rate changes | 561.8 | (1,474.8 | ) | — | ||||||||
The origination and reversal of temporary differences | (4,336.1 | ) | (3,072.5 | ) | (1,065.1 | ) | ||||||
|
|
|
|
|
| |||||||
(3,774.3 | ) | (4,547.3 | ) | (1,065.1 | ) | |||||||
|
|
|
|
|
| |||||||
Income tax expense recognized in profit or loss | $ | 51,122.9 | $ | 34,436.9 | $ | 35,835.1 | ||||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Current income tax expense | ||||||||||||
Current tax expense recognized in the current year | $ | 47,135.5 | $ | 87,452.7 | $ | 107,694.4 | ||||||
Income tax adjustments on prior years | (10,193.8 | ) | (7,589.4 | ) | (14,539.5 | ) | ||||||
Other income tax adjustments | (41.5 | ) | 150.2 | 152.2 | ||||||||
36,900.2 | 80,013.5 | 93,307.1 | ||||||||||
Deferred income tax benefit | ||||||||||||
The origination and reversal of temporary differences | (1,065.1 | ) | (6,275.2 | ) | (17,530.0 | ) | ||||||
Investment tax credits | — | — | (5,621.7 | ) | ||||||||
(1,065.1 | ) | (6,275.2 | ) | (23,151.7 | ) | |||||||
Income tax expense recognized in profit or loss | $ | 35,835.1 | $ | 73,738.3 | $ | 70,155.4 | ||||||
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Income before tax | $ | 396,161.9 | $ | 397,543.1 | $ | 389,862.1 | ||||||
|
|
|
|
|
| |||||||
Income tax expense at the statutory rate | $ | 69,613.5 | $ | 80,872.5 | $ | 79,056.5 | ||||||
Tax effect of adjusting items: | ||||||||||||
Nondeductible (deductible) items in determining taxable income | (1,415.9 | ) | 2,533.4 | (4,183.5 | ) | |||||||
Tax-exempt income | (16,901.1 | ) | (54,543.5 | ) | (39,808.1 | ) | ||||||
Additional income tax under the Alternative Minimum Tax Act | — | 21,455.9 | 10,367.9 | |||||||||
Additional income tax on unappropriated earnings | 28,183.5 | 16,294.5 | 7,628.1 | |||||||||
Effect of tax rate changes on deferred income tax | 561.8 | (1,474.8 | ) | — | ||||||||
The origination and reversal of temporary differences | (4,336.1 | ) | (3,072.6 | ) | (1,065.1 | ) | ||||||
Income tax credits | (5,628.6 | ) | (6,028.4 | ) | (5,925.4 | ) | ||||||
|
|
|
|
|
| |||||||
70,077.1 | 56,037.0 | 46,070.4 | ||||||||||
Income tax adjustments on prior years | (19,107.0 | ) | (21,753.0 | ) | (10,193.8 | ) | ||||||
Other income tax adjustments | 152.8 | 152.9 | (41.5 | ) | ||||||||
|
|
|
|
|
| |||||||
Income tax expense recognized in profit or loss | $ | 51,122.9 | $ | 34,436.9 | $ | 35,835.1 | ||||||
|
|
|
|
|
|
For the year ended December 31, 2017, the Company applied a tax rate of 17% for entities subject to the R.O.C. Income Tax Law. In 2018, the Income Tax Law in the R.O.C. was amended and, starting from 2018, the corporate income tax rate was adjusted from 17% to 20%. In addition, the tax rate for 2018 unappropriated earnings was reduced from 10% to 5%.
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Income before tax | $ | 389,862.1 | $ | 584,746.3 | $ | 663,036.0 | ||||||
Income tax expense at the statutory rate | $ | 79,056.5 | $ | 118,831.3 | $ | 134,595.2 | ||||||
Tax effect of adjusting items: | ||||||||||||
Nondeductible (deductible) items in determining taxable income | (4,183.5 | ) | 1,015.9 | 11,279.5 | ||||||||
Tax-exempt income | (39,808.1 | ) | (65,988.1 | ) | (89,852.9 | ) | ||||||
Additional income tax under the Alternative Minimum Tax Act | 10,367.9 | 18,872.8 | 32,852.7 | |||||||||
Additional income tax on unappropriated earnings | 7,628.1 | 14,747.3 | 18,849.5 | |||||||||
The origination and reversal of temporary differences | (1,065.1 | ) | (6,275.2 | ) | (17,530.0 | ) | ||||||
Income tax credits | (5,925.4 | ) | (26.5 | ) | (5,651.3 | ) | ||||||
46,070.4 | 81,177.5 | 84,542.7 | ||||||||||
Income tax adjustments on prior years | (10,193.8 | ) | (7,589.4 | ) | (14,539.5 | ) | ||||||
Other income tax adjustments | (41.5 | ) | 150.2 | 152.2 | ||||||||
Income tax expense recognized in profit or loss | $ | 35,835.1 | $ | 73,738.3 | $ | 70,155.4 | ||||||
F - 61
b. | Income tax expense recognized in other comprehensive income |
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Deferred income tax benefit (expense) | ||||||||||||
Related to remeasurement of defined benefit obligation | $ | 30.6 | $ | 103.3 | $ | (30.4 | ) | |||||
Related to unrealized gain/loss on investments in equity instruments at FVTOCI | — | 91.8 | 9.4 | |||||||||
Related to gain/loss on cash flow hedges | (0.6 | ) | 0.6 | — | ||||||||
Related to unrealized gain/loss onavailable-for-sale financial assets | (2.9 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
$ | 27.1 | $ | 195.7 | $ | (21.0 | ) | ||||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Deferred income tax benefit (expense) | ||||||||||||
Related to remeasurement of defined benefit obligation | $ | (30.4 | ) | $ | 422.1 | $ | (29.1 | ) | ||||
Related to unrealized gain/loss on investments in equity instruments at FVTOCI | 9.4 | 0.6 | (56.2 | ) | ||||||||
Related to gain/loss on cash flow hedges | 0 | 0 | (3.4 | ) | ||||||||
$ | (21.0 | ) | $ | 422.7 | $ | (88.7 | ) | |||||
c. | Deferred income tax balance |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Deferred income tax assets | ||||||||
Temporary differences | ||||||||
Depreciation | $ | 11,839.2 | $ | 13,547.2 | ||||
Refund liability | 2,594.0 | 2,150.4 | ||||||
Net defined benefit liability | 1,084.9 | 1,016.3 | ||||||
Unrealized loss on inventories | 751.0 | 469.4 | ||||||
Deferred compensation cost | 271.7 | 323.1 | ||||||
Investments in equity instruments at FVTOCI | 56.2 | 65.7 | ||||||
Others | 209.4 | 356.3 | ||||||
|
|
|
| |||||
$ | 16,806.4 | $ | 17,928.4 | |||||
|
|
|
| |||||
Deferred income tax liabilities | ||||||||
Temporary differences | ||||||||
Unrealized exchange gains | $ | (61.7 | ) | $ | (333.6 | ) | ||
Others | (171.6 | ) | (10.8 | ) | ||||
|
|
|
| |||||
$ | (233.3 | ) | $ | (344.4 | ) | |||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Deferred income tax assets | ||||||||
Temporary differences | ||||||||
Depreciation | $ | 19,354.4 | $ | 34,720.7 | ||||
Refund liability | 3,755.1 | 5,986.2 | ||||||
Investment tax credits | — | 5,621.7 | ||||||
Net defined benefit liability | 1,342.1 | 1,237.1 | ||||||
Unrealized loss on inventories | 858.5 | 899.0 | ||||||
Deferred compensation cost | 330.3 | 374.0 | ||||||
Investments in equity instruments at FVTOCI | 66.3 | 10.1 | ||||||
Others | 251.5 | 305.1 | ||||||
$ | 25,958.2 | $ | 49,153.9 | |||||
Deferred income tax liabilities | ||||||||
Temporary differences | ||||||||
Unrealized exchange gains | $ | (866.5 | ) | $ | (706.3 | ) | ||
Others | (863.4 | ) | (1,167.6 | ) | ||||
$ | (1,729.9 | ) | $ | (1,873.9 | ) | |||
Year Ended December 31, 2019 | ||||||||||||||||||||
Recognized in | ||||||||||||||||||||
Balance, Beginning of Year | Profit or Loss | Other Comprehensive Income | Effect of Exchange Rate Changes | Balance, End of Year | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Deferred income tax assets | ||||||||||||||||||||
Temporary differences | ||||||||||||||||||||
Depreciation | $ | 11,839.2 | $ | 1,727.8 | $ | — | $ | (19.8 | ) | $ | 13,547.2 | |||||||||
Refund liability | 2,594.0 | (443.2 | ) | — | (0.4 | ) | 2,150.4 | |||||||||||||
Net defined benefit liability | 1,084.9 | (38.2 | ) | (30.4 | ) | — | 1,016.3 | |||||||||||||
Unrealized loss on inventories | 751.0 | (280.8 | ) | — | (0.8 | ) | 469.4 | |||||||||||||
Deferred compensation cost | 271.7 | 59.4 | — | (8.0 | ) | 323.1 | ||||||||||||||
Investments in equity instruments at FVTOCI | 56.2 | 0.1 | 9.4 | — | 65.7 | |||||||||||||||
Others | 209.4 | 151.1 | — | (4.2 | ) | 356.3 | ||||||||||||||
$ | 16,806.4 | $ | 1,176.2 | $ | (21.0 | ) | $ | (33.2 | ) | $ | 17,928.4 | |||||||||
Deferred income tax liabilities | ||||||||||||||||||||
Temporary differences | ||||||||||||||||||||
Unrealized exchange gains | $ | (61.7 | ) | $ | (271.9 | ) | $ | — | $ | — | $ | (333.6 | ) | |||||||
Others | (171.6 | ) | 160.8 | — | — | (10.8 | ) | |||||||||||||
$ | (233.3 | ) | $ | (111.1 | ) | $ | — | $ | — | $ | (344.4 | ) | ||||||||
Year Ended December 31, 2017 | ||||||||||||||||||||||||
Recognized in | ||||||||||||||||||||||||
Balance, Beginning of Year | Profit or Loss | Other Comprehensive Income | Effect of Disposal of Subsidiary | Effect of Exchange Rate Changes | Balance, End of Year | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | |||||||||||||||||||
Deferred income tax assets | ||||||||||||||||||||||||
Temporary differences | ||||||||||||||||||||||||
Depreciation | $ | 4,244.2 | $ | 4,207.2 | $ | — | $ | — | $ | (50.1 | ) | $ | 8,401.3 | |||||||||||
Provision for sales returns and allowance | 1,512.1 | 130.0 | — | — | (4.4 | ) | 1,637.7 | |||||||||||||||||
Net defined benefit liability | 939.5 | 5.2 | 30.6 | — | — | 975.3 | ||||||||||||||||||
Unrealized loss on inventories | 737.3 | (105.1 | ) | — | — | (2.7 | ) | 629.5 | ||||||||||||||||
Deferred compensation cost | 378.7 | (83.1 | ) | — | — | (29.1 | ) | 266.5 | ||||||||||||||||
Others | 445.1 | (222.4 | ) | — | — | (27.5 | ) | 195.2 | ||||||||||||||||
Operating loss carryforward | 14.5 | — | — | (14.5 | ) | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 8,271.4 | $ | 3,931.8 | $ | 30.6 | $ | (14.5 | ) | $ | (113.8 | ) | $ | 12,105.5 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Deferred income tax liabilities | ||||||||||||||||||||||||
Temporary differences | ||||||||||||||||||||||||
Unrealized exchange gains | $ | (48.7 | ) | $ | (120.8 | ) | $ | — | $ | — | $ | — | $ | (169.5 | ) | |||||||||
Available-for-sale financial assets | (92.5 | ) | — | (2.9 | ) | — | — | (95.4 | ) | |||||||||||||||
Others | — | (36.7 | ) | (0.6 | ) | — | — | (37.3 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | (141.2 | ) | $ | (157.5 | ) | $ | (3.5 | ) | $ | — | $ | — | $ | (302.2 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2018 | ||||||||||||||||||||
Recognized in | ||||||||||||||||||||
Balance, Beginning of Year | Profit or Loss | Other Comprehensive Income | Effect of Exchange Rate Changes | Balance, End of Year | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Deferred income tax assets | ||||||||||||||||||||
Temporary differences | ||||||||||||||||||||
Depreciation | $ | 8,401.3 | $ | 3,430.4 | $ | — | $ | 7.5 | $ | 11,839.2 | ||||||||||
Refund liability | 1,637.7 | 955.0 | — | 1.3 | 2,594.0 | |||||||||||||||
Net defined benefit liability | 975.3 | 6.3 | 103.3 | — | 1,084.9 | |||||||||||||||
Unrealized loss on inventories | 629.5 | 120.5 | — | 1.0 | 751.0 | |||||||||||||||
Deferred compensation cost | 266.5 | (4.7 | ) | — | 9.9 | 271.7 | ||||||||||||||
Investments in equity instruments at FVTOCI | — | — | 56.2 | — | 56.2 | |||||||||||||||
Others | 195.2 | 7.1 | — | 7.1 | 209.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 12,105.5 | $ | 4,514.6 | $ | 159.5 | $ | 26.8 | $ | 16,806.4 | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Deferred income tax liabilities | ||||||||||||||||||||
Temporary differences | ||||||||||||||||||||
Unrealized exchange gains | $ | (169.5 | ) | $ | 107.8 | $ | — | $ | — | $ | (61.7 | ) | ||||||||
Investments in equity instruments at FVTOCI | (95.4 | ) | — | 95.4 | — | — | ||||||||||||||
Others | (37.3 | ) | (75.1 | ) | (59.2 | ) | — | (171.6 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | (302.2 | ) | $ | 32.7 | $ | 36.2 | $ | — | $ | (233.3 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2019 | ||||||||||||||||||||
Recognized in | ||||||||||||||||||||
Balance, Beginning of Year | Profit or Loss | Other Comprehensive Income | Effect of Exchange Rate Changes | Balance, End of Year | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Deferred income tax assets | ||||||||||||||||||||
Temporary differences | ||||||||||||||||||||
Depreciation | $ | 11,839.2 | $ | 1,727.8 | $ | — | $ | (19.8 | ) | $ | 13,547.2 | |||||||||
Refund liability | 2,594.0 | (443.2 | ) | — | (0.4 | ) | 2,150.4 | |||||||||||||
Net defined benefit liability | 1,084.9 | (38.2 | ) | (30.4 | ) | — | 1,016.3 | |||||||||||||
Unrealized loss on inventories | 751.0 | (280.8 | ) | — | (0.8 | ) | 469.4 | |||||||||||||
Deferred compensation cost | 271.7 | 59.4 | — | (8.0 | ) | 323.1 | ||||||||||||||
Investments in equity instruments at FVTOCI | 56.2 | 0.1 | 9.4 | — | 65.7 | |||||||||||||||
Others | 209.4 | 151.1 | — | (4.2 | ) | 356.3 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 16,806.4 | $ | 1,176.2 | $ | (21.0 | ) | $ | (33.2 | ) | $ | 17,928.4 | |||||||||
|
|
|
|
|
|
|
|
|
|
(Continued)
F - 63
Year Ended December 31, 2019 | ||||||||||||||||||||
Recognized in | ||||||||||||||||||||
Balance, Beginning of Year | Profit or Loss | Other Comprehensive Income | Effect of Exchange Rate Changes | Balance, End of Year | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Deferred income tax liabilities | ||||||||||||||||||||
Temporary differences | ||||||||||||||||||||
Unrealized exchange gains | $ | (61.7 | ) | $ | (271.9 | ) | $ | — | $ | — | $ | (333.6 | ) | |||||||
Others | (171.6 | ) | 160.8 | — | — | (10.8 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | (233.3 | ) | $ | (111.1 | ) | $ | — | $ | — | $ | (344.4 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
(Concluded)
Year Ended December 31, 2020 | ||||||||||||||||||||
Recognized in | ||||||||||||||||||||
Balance, Beginning of Year | Profit or Loss | Other Comprehensive Income | Effect of Exchange Rate Changes | Balance, End of Year | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Deferred income tax assets | ||||||||||||||||||||
Temporary differences | ||||||||||||||||||||
Depreciation | $ | 13,547.2 | $ | 5,824.0 | $ | — | $ | (16.8 | ) | $ | 19,354.4 | |||||||||
Refund liability | 2,150.4 | 1,606.1 | — | (1.4 | ) | 3,755.1 | ||||||||||||||
Net defined benefit liability | 1,016.3 | (96.3 | ) | 422.1 | — | 1,342.1 | ||||||||||||||
Unrealized loss on inventories | 469.4 | 391.1 | — | (2.0 | ) | 858.5 | ||||||||||||||
Deferred compensation cost | 323.1 | 27.4 | — | (20.2 | ) | 330.3 | ||||||||||||||
Investments in equity instruments at FVTOCI | 65.7 | — | 0.6 | — | 66.3 | |||||||||||||||
Others | 356.3 | (91.6 | ) | — | (13.2 | ) | 251.5 | |||||||||||||
$ | 17,928.4 | $ | 7,660.7 | $ | 422.7 | $ | (53.6 | ) | $ | 25,958.2 | ||||||||||
Deferred income tax liabilities | ||||||||||||||||||||
Temporary differences | ||||||||||||||||||||
Unrealized exchange gains | $ | (333.6 | ) | $ | (532.9 | ) | $ | — | $ | — | $ | (866.5 | ) | |||||||
Others | (10.8 | ) | (852.6 | ) | — | — | (863.4 | ) | ||||||||||||
$ | (344.4 | ) | $ | (1,385.5 | ) | $ | — | $ | — | $ | (1,729.9 | ) | ||||||||
Year Ended December 31, 2021 | ||||||||||||||||||||
Recognized in | ||||||||||||||||||||
Balance, Beginning of Year | Profit or Loss | Other Comprehensive Income | Effect of Exchange Rate Changes | Balance, End of Year | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Deferred income tax assets | ||||||||||||||||||||
Temporary differences | ||||||||||||||||||||
Depreciation | $ | 19,354.4 | $ | 15,365.7 | $ | — | $ | 0.6 | $ | 34,720.7 | ||||||||||
Refund liability | 3,755.1 | 2,231.5 | — | (0.4 | ) | 5,986.2 | ||||||||||||||
Investment tax credits | — | 5,621.7 | — | — | 5,621.7 | |||||||||||||||
Net defined benefit liability | 1,342.1 | (75.9 | ) | (29.1 | ) | — | 1,237.1 | |||||||||||||
Unrealized loss on inventories | 858.5 | 41.0 | — | (0.5 | ) | 899.0 | ||||||||||||||
Deferred compensation cost | 330.3 | 49.2 | — | (5.5 | ) | 374.0 | ||||||||||||||
Investments in equity instruments at FVTOCI | 66.3 | — | (56.2 | ) | — | 10.1 | ||||||||||||||
Others | 251.5 | 59.1 | — | (5.5 | ) | 305.1 | ||||||||||||||
$ | 25,958.2 | $ | 23,292.3 | $ | (85.3 | ) | $ | (11.3 | ) | $ | 49,153.9 | |||||||||
Deferred income tax liabilities | ||||||||||||||||||||
Temporary differences | ||||||||||||||||||||
Unrealized exchange gains | $ | (866.5 | ) | $ | 160.2 | $ | — | $ | — | $ | (706.3 | ) | ||||||||
Others | (863.4 | ) | (300.8 | ) | (3.4 | ) | — | (1,167.6 | ) | |||||||||||
$ | (1,729.9 | ) | $ | (140.6 | ) | $ | (3.4 | ) | $ | — | $ | (1,873.9 | ) | |||||||
d. | The deductible temporary differences for which no deferred income tax assets have been recognized |
e. | Unused tax-exemption information |
Tax-exemption Period | ||
Construction and expansion of 2009 by TSMC | 2018 to 2022 |
f. | The information of unrecognized deferred income tax liabilities associated with investments |
g. | Income tax examination |
28. | EARNINGS PER SHARE |
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
(NT$) | (NT$) | (NT$) | ||||||||||
Basic EPS | $ | 13.30 | $ | 14.00 | $ | 13.65 | ||||||
|
|
|
|
|
| |||||||
Diluted EPS | $ | 13.30 | $ | 14.00 | $ | 13.65 | ||||||
|
|
|
|
|
|
F - 64
$ 13.65 $ 19.70 $ 22.84 $ 13.65 $ 19.70 $ 22.84
Amounts (Numerator) NT$ (In Millions) | Number of Shares (Denominator) (In Millions) | EPS (NT$) | ||||||||||
Year Ended December 31, 2017 | ||||||||||||
Basic/Diluted EPS | ||||||||||||
Net income available to common shareholders of the parent | $ | 344,998.3 | 25,930.3 | $ | 13.30 | |||||||
|
|
|
|
|
| |||||||
Year Ended December 31, 2018 | ||||||||||||
Basic/Diluted EPS | ||||||||||||
Net income available to common shareholders of the parent | $ | 363,052.7 | 25,930.3 | $ | 14.00 | |||||||
|
|
|
|
|
| |||||||
Year Ended December 31, 2019 | ||||||||||||
Basic/Diluted EPS | ||||||||||||
Net income available to common shareholders of the parent | $ | 353,948.0 | 25,930.3 | $ | 13.65 | |||||||
|
|
|
|
|
|
Amounts (Numerator) NT$ (In Millions) | Number of Shares (Denominator) (In Millions) | EPS (NT$) | ||||||||||
Year Ended December 31, 2019 | ||||||||||||
Basic/Diluted EPS | ||||||||||||
Net income available to common shareholders of the parent | $ | 353,948.0 | 25,930.3 | $ | 13.65 | |||||||
Year Ended December 31, 2020 | ||||||||||||
Basic/Diluted EPS | ||||||||||||
Net income available to common shareholders of the parent | $ | 510,744.0 | 25,930.3 | $ | 19.70 | |||||||
Year Ended December 31, 2021 | ||||||||||||
Basic/Diluted EPS | ||||||||||||
Net income available to common shareholders of the parent | $ | 592,359.2 | 25,930.3 | $ | 22.84 | |||||||
29. | SHARE-BASED PAYMENT ARRANGEMENTS |
a. | Employee restricted stock awards |
1) | The RSAs granted to a key management personnel can only be vested if |
2) | The maximum percentage of granted RSAs that may be vested each year shall be as follows: one-year anniversary of the grant: 50%;two-year anniversary of the grant: 25%; and three-year anniversary of the grant: 25%; provided that the actual percentage and number of the RSAs to be vested in each year will be calculated based on the achievement of the TSMC’s business performance metrics. |
3) | The maximum number of RSAs that may be vested in each year will be set as 110%, among which 100% will be subject to a calculation based on the TSMC’s relative Total Shareholder Return (”TSR”, including capital gains and dividends) achievement to determine the number of RSAs to be vested; this number will be further subject to a modifier to increase or decrease up to 10% based on the Compensation Committee’s evaluation of the TSMC’s Environmental, Social, and Governance (”ESG”) achievements. The number of shares so calculated should be rounded down to the nearest integral. |
TSMC’s TSR relative to the TSR of S&P 500 IT Index | Ratio of Shares to be Vested | |
Above the Index by X percentage points | 50% + X * 2.5%, with the maximum of 100% | |
Equal to the Index | 50% | |
Below the Index by X percentage points | 50% - X * 2.5%, with the minimum of 0% |
1) | During each vesting period, no key management personnel granted RSAs, except for inheritance, may sell, pledge, transfer, give to another person, create any encumbrance on, or otherwise dispose of, any shares under the unvested RSAs. |
2) | Before the vesting conditions are fulfilled, the attendance, proposal rights, speech rights, voting rights and etc. shall be exercised by the engaged trustee/custodian on the key management personnel’s behalf. Any other shareholder rights including but not limited to the entitlement to any distribution regarding dividends, bonuses and capital reserve, and the subscription right of the new shares issued for any capital increase, are the same as those of holders of common shares of TSMC. |
3) | Granted RSAs shall be deposited in a trust/custody account. |
b. | Cash-settled share-based payment arrangements |
30. | ADDITIONAL INFORMATION OF EXPENSES BY NATURE |
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
a. Depreciation of property, plant and equipment andright-of-use assets | ||||||||||||
Recognized in cost of revenue | $ | 235,985.2 | $ | 264,804.7 | $ | 256,530.9 | ||||||
Recognized in operating expenses | 19,746.3 | 23,292.3 | 24,856.7 | |||||||||
Recognized in other operating income and expenses | 64.5 | 27.9 | 24.2 | |||||||||
|
|
|
|
|
| |||||||
$ | 255,796.0 | $ | 288,124.9 | $ | 281,411.8 | |||||||
|
|
|
|
|
| |||||||
b. Amortization of intangible assets | ||||||||||||
Recognized in cost of revenue | $ | 2,135.5 | $ | 2,073.5 | $ | 3,069.9 | ||||||
Recognized in operating expenses | 2,211.2 | 2,347.9 | 2,402.5 | |||||||||
|
|
|
|
|
| |||||||
$ | 4,346.7 | $ | 4,421.4 | $ | 5,472.4 | |||||||
|
|
|
|
|
| |||||||
c. Research and development costs expensed as incurred | $ | 80,732.5 | $ | 85,895.6 | $ | 91,418.7 | ||||||
|
|
|
|
|
|
F - 65
Years Ended December 31 | ||||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
d. Employee benefits expenses | ||||||||||||
Post-employment benefits | ||||||||||||
Defined contribution plans | $ | 2,369.9 | $ | 2,568.9 | $ | 2,609.7 | ||||||
Defined benefit plans | 271.5 | 281.8 | 259.6 | |||||||||
|
|
|
|
|
| |||||||
2,641.4 | 2,850.7 | 2,869.3 | ||||||||||
Other employee benefits | 101,488.7 | 105,364.2 | 107,115.3 | |||||||||
|
|
|
|
|
| |||||||
$ | 104,130.1 | $ | 108,214.9 | $ | 109,984.6 | |||||||
|
|
|
|
|
| |||||||
Employee benefits expense summarized by function | ||||||||||||
Recognized in cost of revenue | $ | 61,026.1 | $ | 63,597.7 | $ | 64,702.0 | ||||||
Recognized in operating expenses | 43,104.0 | 44,617.2 | 45,282.6 | |||||||||
|
|
|
|
|
| |||||||
$ | 104,130.1 | $ | 108,214.9 | $ | 109,984.6 | |||||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
a. Depreciation of property, plant and equipment and right-of-use | ||||||||||||
Recognized in cost of revenue | $ | 256,530.9 | $ | 299,311.4 | $ | 386,103.9 | ||||||
Recognized in operating expenses | 24,856.7 | 25,191.3 | 27,936.2 | |||||||||
Recognized in other operating income and expenses | 24.2 | 35.7 | 147.6 | |||||||||
$ | 281,411.8 | $ | 324,538.4 | $ | 414,187.7 | |||||||
b. Amortization of intangible assets | ||||||||||||
Recognized in cost of revenue | $ | 3,069.9 | $ | 4,837.7 | $ | 5,574.3 | ||||||
Recognized in operating expenses | 2,402.5 | 2,348.5 | 2,632.9 | |||||||||
$ | 5,472.4 | $ | 7,186.2 | $ | 8,207.2 | |||||||
c. Employee benefits expenses | ||||||||||||
Post-employment benefits | ||||||||||||
Defined contribution plans | $ | 2,609.7 | $ | 2,809.5 | $ | 3,711.0 | ||||||
Defined benefit plans | 259.6 | 204.9 | 192.5 | |||||||||
2,869.3 | 3,014.4 | 3,903.5 | ||||||||||
Other employee benefits | 107,115.3 | 137,803.0 | 161,043.6 | |||||||||
$ | 109,984.6 | $ | 140,817.4 | $ | 164,947.1 | |||||||
Employee benefits expense summarized by function | ||||||||||||
Recognized in cost of revenue | $ | 64,702.0 | $ | 83,099.0 | $ | 98,012.8 | ||||||
Recognized in operating expenses | 45,282.6 | 57,718.4 | 66,934.3 | |||||||||
$ | 109,984.6 | $ | 140,817.4 | $ | 164,947.1 | |||||||
Accrued profit sharing bonus to employees is illustrated below:
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Profit sharing bonus to employees | $ | 23,165.7 | $ | 34,753.2 | $ | 35,601.5 | ||||||
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Resolution Date of TSMC’s Board of Directors in its meeting | February 11, 2020 | February 9, 2021 | February 15, 2022 | |||||||||
Profit sharing bonus to employees | $ | 23,165.7 | $ | 34,753.2 | $ | 35,601.5 | ||||||
Compensation to directors | $ | 360.4 | $ | 509.8 | $ | 487.5 | ||||||
F - 66
31. | CASH FLOW INFORMATION |
a. |
|
2017
Year Ended December 31, 2017 | ||||||||
NT$ | ||||||||
(In Millions) | ||||||||
Additions of property, plant and equipment | $ | 322,493.9 | ||||||
Changes in other financial assets | 3,634.9 | |||||||
Changes in payables to contractors and equipment suppliers | 4,364.5 | |||||||
Transferred to initial carrying amount of hedged items | 94.9 | |||||||
|
| |||||||
Payments for acquisition of property, plant and equipment | $ | 330,588.2 | ||||||
|
| |||||||
Acquisition ofavailable-for-sale financial assets | $ | 104,086.8 | ||||||
Changes in accrued expenses and other current liabilities | (2,262.8 | ) | ||||||
|
| |||||||
Payments for acquisition ofavailable-for-sale financial assets | $ | 101,824.0 | ||||||
|
| |||||||
Disposal ofavailable-for-sale financial assets | $ | 70,862.9 | ||||||
Changes in other financial assets | (1,324.0 | ) | ||||||
|
| |||||||
Proceeds from disposal ofavailable-for-sale financial assets | $ | 69,538.9 | ||||||
|
| |||||||
2018 and 2019
|
| |||||||
Years Ended December 31 | ||||||||
2018 | 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Additions of property, plant and equipment | $ | 300,024.4 | $ | 564,283.0 | ||||
Changes in other financial assets | 1,555.4 | 472.5 | ||||||
Exchange of assets | — | (3,287.1 | ) | |||||
Changes in payables to contractors and equipment suppliers | 13,979.9 | (100,963.9 | ) | |||||
Transferred to initial carrying amount of hedged items | 22.2 | (82.3 | ) | |||||
|
|
|
| |||||
Payments for acquisition of property, plant and equipment | $ | 315,581.9 | $ | 460,422.2 | ||||
|
|
|
| |||||
Acquisition of financial assets at FVTOCI | $ | 100,759.6 | $ | 257,824.5 | ||||
Changes in other financial assets | (23.8 | ) | — | |||||
Changes in accrued expenses and other current liabilities | (4,323.0 | ) | (266.3 | ) | ||||
|
|
|
| |||||
Payments for acquisition of financial assets at FVTOCI | $ | 96,412.8 | $ | 257,558.2 | ||||
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Additions of financial assets at FVTOCI | $ | 257,824.5 | $ | 268,653.5 | $ | 253,613.9 | ||||||
Conversion of convertible bonds into equity securities | 0 | (120.5 | ) | 0 | ||||||||
Exchange of equity instruments | — | — | (106.2 | ) | ||||||||
Changes in accrued expenses and other current liabilities | (266.3 | ) | (5,895.5 | ) | 2,381.0 | |||||||
Payments for acquisition of financial assets at FVTOCI | $ | 257,558.2 | $ | 262,637.5 | $ | 255,888.7 | ||||||
Disposal of financial assets at FVTOCI | $ | 229,525.1 | $ | 269,011.8 | $ | 251,201.4 | ||||||
Changes in other financial assets | 919.4 | (2,079.9 | ) | 3,509.3 | ||||||||
Exchange of equity instruments | — | — | (106.2 | ) | ||||||||
Proceeds from disposal of financial assets at FVTOCI | $ | 230,444.5 | $ | 266,931.9 | $ | 254,604.5 | ||||||
Years Ended December 31 | ||||||||
2018 | 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Disposal of financial assets at FVTOCI | $ | 90,545.1 | $ | 229,525.1 | ||||
Changes in other financial assets | (3,905.8 | ) | 919.4 | |||||
|
|
|
| |||||
Proceeds from disposal of financial assets at FVTOCI | $ | 86,639.3 | $ | 230,444.5 | ||||
|
|
|
|
Years Ended December 31 | ||||||||||||
2019 | 2020 | 2021 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Additions of property, plant and equipment | $ | 564,283.0 | $ | 525,720.7 | $ | 835,406.3 | ||||||
Changes in other financial assets | 472.5 | 584.7 | 1,934.0 | |||||||||
Exchange of assets | (3,287.1 | ) | (1.1 | ) | (3,256.5 | ) | ||||||
Changes in payables to contractors and equipment suppliers | (100,963.9 | ) | (19,085.9) | 5,153.3 | ||||||||
Transferred to initial carrying amount of hedged items | (82.3 | ) | 20.3 | (41.4 | ) | |||||||
Payments for acquisition of property, plant and equipment | $ | 460,422.2 | $ | 507,238.7 | $ | 839,195.7 | ||||||
Additions of intangible assets | $ | 9,237.7 | $ | 12,559.5 | $ | 9,318.5 | ||||||
Changes in other financial assets | 22.2 | 10.5 | 2.9 | |||||||||
Changes in account payable | 70.0 | 191.4 | 0 | |||||||||
Changes in accrued expenses and other current liabilities | — | (3,219.0 | ) | (280.7 | ) | |||||||
Payments for acquisition of intangible assets | $ | 9,329.9 | $ | 9,542.4 | $ | 9,040.7 | ||||||
b. | Reconciliation of liabilities arising from financing activities |
Non-cash changes | ||||||||||||||||||||
Balance as of January 1, 2017 | Financing Cash Flow | Foreign Exchange Movement | Other Changes (Note) | Balance as of December 31, 2017 | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Short-term loans | $ | 57,958.2 | $ | 10,394.3 | $ | (4,585.7 | ) | $ | — | $ | 63,766.8 | |||||||||
Guarantee deposits | 26,670.6 | (2,872.3 | ) | (1,609.0 | ) | (6,108.7 | ) | 16,080.6 | ||||||||||||
Bonds payable | 191,193.6 | (38,100.0 | ) | (2,918.9 | ) | 26.4 | 150,201.1 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 275,822.4 | $ | (30,578.0 | ) | $ | (9,113.6 | ) | $ | (6,082.3 | ) | $ | 230,048.5 | |||||||
|
|
|
|
|
|
|
|
|
|
Non-cash changes | ||||||||||||||||||||
Balance as of January 1, 2018 | Financing Cash Flow | Foreign Exchange Movement | Other Changes (Note) | Balance as of December 31, 2018 | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Short-term loans | $ | 63,766.8 | $ | 23,923.0 | $ | 1,064.9 | $ | — | $ | 88,754.7 | ||||||||||
Guarantee deposits | 16,080.6 | (279.2 | ) | 423.5 | (6,035.9 | ) | 10,189.0 | |||||||||||||
Bonds payable | 150,201.1 | (58,024.9 | ) | (382.9 | ) | 6.7 | 91,800.0 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 230,048.5 | $ | (34,381.1 | ) | $ | 1,105.5 | $ | (6,029.2 | ) | $ | 190,743.7 | ||||||||
|
|
|
|
|
|
|
|
|
|
Non-cash changes | ||||||||||||||||||||||||
Balance as of January 1, 2019 | Financing Cash Flow | Foreign Exchange Movement | Leases Modifications | Other Changes (Note) | Balance as of December 31, 2019 | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | |||||||||||||||||||
Short-term loans | $ | 88,754.7 | $ | 31,804.3 | $ | (2,036.7 | ) | $ | — | $ | — | $ | 118,522.3 | |||||||||||
Guarantee deposits | 10,189.0 | (639.1 | ) | 4.5 | — | (7,824.5 | ) | 1,729.9 | ||||||||||||||||
Lease liabilities | 19,903.6 | (3,174.0 | ) | (73.3 | ) | 419.7 | 240.9 | 17,316.9 | ||||||||||||||||
Bonds payable | 91,800.0 | (34,900.0 | ) | — | — | — | 56,900.0 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 210,647.3 | $ | (6,908.8 | ) | $ | (2,105.5 | ) | $ | 419.7 | $ | (7,583.6 | ) | $ | 194,469.1 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash changes | ||||||||||||||||||||||||
Balance as of January 1, 2019 | Financing Cash Flow | Foreign Exchange Movement | Leases Modifications | Other Changes (Note) | Balance as of December 31, 2019 | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | |||||||||||||||||||
Short-term loans | $ | 88,754.7 | $ | 31,804.3 | $ | (2,036.7 | ) | $ | — | $ | — | $ | 118,522.3 | |||||||||||
Bonds payable | 91,800.0 | (34,900.0 | ) | — | — | — | 56,900.0 | |||||||||||||||||
Lease liabilities | 19,903.6 | (3,174.0 | ) | (73.3 | ) | 419.7 | 240.9 | 17,316.9 | ||||||||||||||||
Total | $ | 200,458.3 | $ | (6,269.7 | ) | $ | (2,110.0 | ) | $ | 419.7 | $ | 240.9 | $ | 192,739.2 | ||||||||||
Non-cash changes | ||||||||||||||||||||||||
Balance as of January 1, 2020 | Financing Cash Flow | Foreign Exchange Movement | Leases Modifications | Other Changes (Note) | Balance as of December 31, 2020 | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | |||||||||||||||||||
Short-term loans | $ | 118,522.3 | $ | (31,571.6 | ) | $ | 1,608.3 | $ | — | $ | — | $ | 88,559.0 | |||||||||||
Bonds payable | 56,900.0 | 204,535.0 | (4,758.6 | ) | — | 28.7 | 256,705.1 | |||||||||||||||||
Long-term bank loans | — | 2,000.0 | — | — | (32.4 | ) | 1,967.6 | |||||||||||||||||
Lease liabilities | 17,316.9 | (2,819.7 | ) | (78.5 | ) | 7,742.2 | 227.7 | 22,388.6 | ||||||||||||||||
Total | $ | 192,739.2 | $ | 172,143.7 | $ | (3,228.8 | ) | $ | 7,742.2 | $ | 224.0 | $ | 369,620.3 | |||||||||||
Non-cash changes | ||||||||||||||||||||||||
Balance as of January 1, 2021 | Financing Cash Flow | Foreign Exchange Movement | Leases Modifications | Other Changes (Note) | Balance as of December 31, 2021 | |||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | |||||||||||||||||||
Short-term loans | $ | 88,559.0 | $ | 35,668.4 | $ | (8,777.5 | ) | $ | — | $ | (528.6 | ) | $ | 114,921.3 | ||||||||||
Bonds payable | 256,705.1 | 361,255.1 | (3,646.9 | ) | — | 157.3 | 614,470.6 | |||||||||||||||||
Long-term bank loans | 1,967.6 | 1,510.0 | — | — | (1.8 | ) | 3,475.8 | |||||||||||||||||
Lease liabilities | 22,388.6 | (2,178.3 | ) | (82.3 | ) | 2,619.4 | 193.3 | 22,940.7 | ||||||||||||||||
Total | $ | 369,620.3 | $ | 396,255.2 | $ | (12,506.7 | ) | $ | 2,619.4 | $ | (179.8 | ) | $ | 755,808.4 | ||||||||||
Note: | Other changes include |
32. | CAPITAL MANAGEMENT |
F - 68
33. | FINANCIAL INSTRUMENTS |
a. | Categories of financial instruments |
December 31, 2018 | December 31, 2019 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Financial assets | ||||||||
FVTPL (Note 1) | $ | 3,504.6 | $ | 326.8 | ||||
FVTOCI (Note 2) | 107,067.5 | 134,776.8 | ||||||
Hedging financial assets | 23.5 | 25.9 | ||||||
Amortized cost (Note 3) | 745,585.8 | 612,740.6 | ||||||
|
|
|
| |||||
$ | 856,181.4 | $ | 747,870.1 | |||||
|
|
|
| |||||
Financial liabilities | ||||||||
FVTPL (Note 4) | $ | 40.8 | $ | 982.3 | ||||
Hedging financial liabilities | 155.8 | 1.8 | ||||||
Amortized cost (Note 5) | 318,475.8 | 533,581.7 | ||||||
|
|
|
| |||||
$ | 318,672.4 | $ | 534,565.8 | |||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Financial assets | ||||||||
FVTPL (Note 1) | $ | 2,259.4 | $ | 159.0 | ||||
FVTOCI (Note 2) | 129,918.7 | 129,607.1 | ||||||
Hedging financial assets | 0.1 | 13.5 | ||||||
Amortized cost (Note 3) | 826,293.6 | 1,283,715.7 | ||||||
$ | 958,471.8 | $ | 1,413,495.3 | |||||
Financial liabilities | ||||||||
FVTPL (Note 4) | $ | 94.1 | $ | 681.9 | ||||
Hedging financial liabilities | 1.2 | 9.6 | ||||||
Amortized cost (Note 5) | 748,129.3 | 1,355,957.2 | ||||||
$ | 748,224.6 | $ | 1,356,648.7 | |||||
Note 1: | Financial assets mandatorily measured at FVTPL. | |
Note 2: | Including notes and accounts receivable (net), equity and debt investments. | |
Note 3: | Including cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable (including related parties), other receivables and refundable deposits. | |
Note 4: | Held for trading. |
Note 5: | Including short-term loans, accounts payable (including related parties), payables to contractors and equipment suppliers, cash dividends payable, accrued expenses and other current liabilities, bonds payable, long-term bank loans, guarantee deposits and |
b. | Financial risk management objectives |
The Company seeks to ensure that sufficient cost-efficient funding is readily available when needed.
c. | Market risk |
F - 69
The majority of
debt.
The Company classified its investments in fixed income securities asavailable-for-sale andheld-to-maturity financial assets in 2017; as financial assets at FVTPL, financial assets at FVTOCI and financial assets at amortized costs starting from 2018. Becauseheld-to-maturity fixed income securities and financial assets at amortized costs are measured at amortized cost, changes in interest rates would not affect the fair value. On the other hand,available-for-sale fixed income securities, financial assets at FVTPL and financial assets at FVTOCI are exposed to fair value fluctuations caused by changes in interest rates. The Company utilized interest rate futures to partially hedge the interest rate risk on itsavailable-for-sale fixed income investments, financial assets at FVTPL and financial assets at FVTOCI. These hedges may offset only a small portion
F - 70
As for the Company’s bank loans, all of them areshort-term debt is floating-rate, loans. Ahence a rise in interest rates may incurresult in higher interest expense than predicted.
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.
FVTOCI.
d. | Credit risk management |
support liquidity requirements. The Company only invests in debt instruments that are rated aspolicy generally requires securities to be investment grade or higher. Theand limits the amount of credit rating information is supplied by external rating agencies.exposure to any one issuer. The Company assesses whether there has been a significant increase in credit risk in the invested securities since initial recognition by reviewing changes in external credit ratings, financial market conditions and material information of the bond issuers.
Category | Description |
| Expected Credit Loss Ratio | |||||
Performing | Credit rating
| 12 months expected credit loss | 0— | % | ||||
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 | — |
e. | Liquidity risk management |
cost-current and sufficient cost-efficient funding.
Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term loans | $ | 88,810.7 | $ | — | $ | — | $ | — | $ | 88,810.7 | ||||||||||
Accounts payable (including related parties) | 34,357.4 | — | — | — | 34,357.4 | |||||||||||||||
Payables to contractors and equipment suppliers | 43,133.7 | — | — | — | 43,133.7 | |||||||||||||||
Accrued expenses and other current liabilities | 50,241.0 | — | — | — | 50,241.0 | |||||||||||||||
Bonds payable | 36,039.9 | 35,340.8 | 22,979.4 | — | 94,360.1 | |||||||||||||||
Guarantee deposits (including those classified under accrued expenses and other current liabilities) | 6,835.7 | 2,891.6 | 461.7 | — | 10,189.0 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
259,418.4 | 38,232.4 | 23,441.1 | — | 321,091.9 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Derivative financial instruments | ||||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||
Outflows | 49,302.3 | — | — | — | 49,302.3 | |||||||||||||||
Inflows | (49,393.7 | ) | — | — | — | (49,393.7 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(91.4 | ) | — | — | — | (91.4 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 259,327.0 | $ | 38,232.4 | $ | 23,441.1 | $ | — | $ | 321,000.5 | |||||||||||
|
|
|
|
|
|
|
|
|
|
(Continued)
Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
December 31, 2020 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term loans | $ | 88,557.5 | $ | — | $ | — | $ | — | $ | 88,557.5 | ||||||||||
Accounts payable (including related parties) | 41,095.0 | — | — | — | 41,095.0 | |||||||||||||||
Payables to contractors and equipment suppliers | 157,805.0 | — | — | — | 157,805.0 | |||||||||||||||
Accrued expenses and other current liabilities | 71,995.7 | — | — | — | 71,995.7 | |||||||||||||||
Bonds payable | 5,328.0 | 27,631.6 | 59,986.8 | 207,152.1 | 300,098.5 | |||||||||||||||
Long-term bank loans | 8.0 | 847.4 | 1,170.9 | — | 2,026.3 | |||||||||||||||
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note) | 2,024.2 | 3,566.7 | 3,198.8 | 15,067.9 | 23,857.6 | |||||||||||||||
366,813.4 | 32,045.7 | 64,356.5 | 222,220.0 | 685,435.6 | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||
Outflows | 177,764.2 | — | — | — | 177,764.2 | |||||||||||||||
Inflows | (181,458.0 | ) | — | — | — | (181,458.0 | ) | |||||||||||||
(3,693.8 | ) | — | — | — | (3,693.8 | ) | ||||||||||||||
$ | 363,119.6 | $ | 32,045.7 | $ | 64,356.5 | $ | 222,220.0 | $ | 681,741.8 | |||||||||||
Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term loans | $ | 118,562.6 | $ | — | $ | — | $ | — | $ | 118,562.6 | ||||||||||
Accounts payable (including related parties) | 40,206.0 | — | — | — | 40,206.0 | |||||||||||||||
Payables to contractors and equipment suppliers | 140,810.7 | — | — | — | 140,810.7 | |||||||||||||||
Accrued expenses and other current liabilities | 45,760.9 | — | — | — | 45,760.9 | |||||||||||||||
Bonds payable | 32,338.9 | 7,777.7 | 18,203.6 | — | 58,320.2 | |||||||||||||||
Lease liabilities (including those classified under accrued expenses and other current liabilities) | 2,475.1 | 2,782.9 | 2,484.5 | 10,947.7 | 18,690.2 | |||||||||||||||
Guarantee deposits (including those classified under accrued expenses and other current liabilities) | 1,553.0 | 121.0 | 55.5 | 0.4 | 1,729.9 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
381,707.2 | 10,681.6 | 20,743.6 | 10,948.1 | 424,080.5 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Derivative financial instruments | ||||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||
Outflows | 141,450.8 | — | — | — | 141,450.8 | |||||||||||||||
Inflows | (141,128.9 | ) | — | — | — | (141,128.9 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
321.9 | — | — | — | 321.9 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 382,029.1 | $ | 10,681.6 | $ | 20,743.6 | $ | 10,948.1 | $ | 424,402.4 | |||||||||||
|
|
|
|
|
|
|
|
|
|
(Concluded)
Additional information
Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
December 31, 2021 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term loans | $ | 114,767.0 | $ | — | $ | — | $ | — | $ | 114,767.0 | ||||||||||
Accounts payable (including related parties) | 48,722.8 | — | — | — | 48,722.8 | |||||||||||||||
Payables to contractors and equipment suppliers | 145,742.2 | — | — | — | 145,742.2 | |||||||||||||||
Accrued expenses and other current liabilities | 120,240.4 | — | — | — | 120,240.4 | |||||||||||||||
Bonds payable | 13,580.6 | 42,801.4 | 191,458.1 | 506,505.0 | 754,345.1 | |||||||||||||||
Long-term bank loans | 183.7 | 2,217.1 | 1,153.9 | — | 3,554.7 | |||||||||||||||
Lease liabilities (including those classified under accrued expenses and other current liabilities) (Note) | 2,371.6 | 3,896.2 | 3,385.3 | 14,649.2 | 24,302.3 | |||||||||||||||
Others | — | 164,991.9 | — | — | 164,991.9 | |||||||||||||||
445,608.3 | 213,906.6 | 195,997.3 | 521,154.2 | 1,376,666.4 | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||
Outflows | 187,708.0 | — | — | — | 187,708.0 | |||||||||||||||
Inflows | (187,631.9 | ) | — | — | — | (187,631.9 | ) | |||||||||||||
76.1 | — | — | — | 76.1 | ||||||||||||||||
$ | 445,684.4 | $ | 213,906.6 | $ | 195,997.3 | $ | 521,154.2 | $ | 1,376,742.5 | |||||||||||
Less than 5 Years | 5-10 Years | 10-15 Years | 15-20 Years | More Than 20 Years | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
Lease liabilities | $ | 7,742.5 | $ | 5,581.1 | $ | 3,691.3 | $ | 1,600.9 | $ | 74.4 | ||||||||||
|
|
|
|
|
|
|
|
|
|
5-10 Years | 10-15 Years | 15-20 Years | More Than 20 Years | Total | ||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | (In Millions) | ||||||||||||||||
December 31, 2020 | ||||||||||||||||||||
Lease liabilities | $ | 7,402.0 | $ | 5,253.9 | $ | 2,255.2 | $ | 156.8 | $ | 15,067.9 | ||||||||||
December 31, 2021 | ||||||||||||||||||||
Lease liabilities | $ | 7,513.9 | $ | 5,043.1 | $ | 1,972.7 | $ | 119.5 | $ | 14,649.2 | ||||||||||
f. | Fair value of financial instruments |
1) | Fair value measurements recognized in the consolidated statements of financial position |
2) | Fair value of financial instruments that are measured at fair value on a recurring basis |
Financial assets at FVTPL Mandatorily measured at FVTPL Agency mortgage-backed securities Forward exchange contracts Financial assets at FVTOCI Investments in debt instruments Corporate bonds Agency bonds/Agency mortgage-backed securities Asset-backed securities Government bonds Commercial paper Investments in equity instruments Non-publicly traded equity investments Publicly traded stocks Notes and accounts receivable, net Hedging financial assets Cash flow hedges Forward exchange contracts Financial liabilities at FVTPL Held for trading Forward exchange contracts Hedging financial liabilities Fair value hedges Interest rate futures contracts Cash flow hedges Forward exchange contracts December 31, 2018 Level 1 Level 2 Level 3 Total NT$ NT$ NT$ NT$ (In Millions) (In Millions) (In Millions) (In Millions) $ — $ 3,419.3 $ — $ 3,419.3 — 85.3 — 85.3 $ — $ 3,504.6 $ — $ 3,504.6 $ — $ 40,753.6 $ — $ 40,753.6 — 31,288.8 — 31,288.8 — 15,670.3 — 15,670.3 11,006.2 145.1 — 11,151.3 — 107.6 — 107.6 — — 3,910.7 3,910.7 590.1 — — 590.1 — 3,595.1 — 3,595.1 $ 11,596.3 $ 91,560.5 $ 3,910.7 $ 107,067.5 $ — $ 23.5 $ — $ 23.5 $ — $ 40.8 $ — $ 40.8 $ 153.9 $ — $ — $ 153.9 — 1.9 — 1.9 $ 153.9 $ 1.9 $ — $ 155.8 $ — $ 2,259.4 $ — $ 2,259.4 $ — $ 56,593.6 $ — $ 56,593.6 — 43,977.1 — 43,977.1 13,279.2 180.3 — 13,459.5 — 8,368.3 — 8,368.3 — 0— 4,514.9 4,514.9 50.0 — — 50.0 — 2,955.3 — 2,955.3 $ 13,329.2 $ 112,074.6 $ 4,514.9 $ 129,918.7 $ 0.1 $ — $ — $ 0.1 $ — $ 94.1 $ — $ 94.1 $ 1.2 $ — $ — $ 1.2 $ — $ 159.0 $ — $ 159.0 7470
December 31, 2019 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
NT$ | NT$ | NT$ | NT$ | |||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | |||||||||||||
Financial assets at FVTPL | ||||||||||||||||
Mandatorily measured at FVTPL | ||||||||||||||||
Forward exchange contracts | $ | — | $ | 162.1 | $ | — | $ | 162.1 | ||||||||
Convertible bonds | — | — | 123.8 | 123.8 | ||||||||||||
Agency mortgage-backed securities | — | 40.9 | — | 40.9 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | 203.0 | $ | 123.8 | $ | 326.8 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Financial assets at FVTOCI | ||||||||||||||||
Investments in debt instruments | ||||||||||||||||
Agency bonds/Agency mortgage-backed securities | $ | — | $ | 51,966.5 | $ | — | $ | 51,966.5 | ||||||||
Corporate bonds | — | 51,790.0 | — | 51,790.0 | ||||||||||||
Government bonds | 12,678.1 | 146.1 | — | 12,824.2 | ||||||||||||
Asset-backed securities | — | 10,815.9 | — | 10,815.9 | ||||||||||||
Investments in equity instruments | ||||||||||||||||
Non-publicly traded equity investments | — | 39.2 | 4,085.1 | 4,124.3 | ||||||||||||
Notes and accounts receivable, net | — | 3,255.9 | — | 3,255.9 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 12,678.1 | $ | 118,013.6 | $ | 4,085.1 | $ | 134,776.8 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Hedging financial assets | ||||||||||||||||
Fair value hedges | ||||||||||||||||
Interest rate futures contracts | $ | 22.4 | $ | — | $ | — | $ | 22.4 | ||||||||
Cash flow hedges | ||||||||||||||||
Forward exchange contracts | — | 3.5 | — | 3.5 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 22.4 | $ | 3.5 | $ | — | $ | 25.9 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Financial liabilities at FVTPL | ||||||||||||||||
Held for trading | ||||||||||||||||
Forward exchange contracts | $ | — | $ | 982.3 | $ | — | $ | 982.3 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Hedging financial liabilities | ||||||||||||||||
Cash flow hedges | ||||||||||||||||
Forward exchange contracts | $ | — | $ | 1.8 | $ | — | $ | 1.8 | ||||||||
|
|
|
|
|
|
|
|
F - 75
Balance, beginning of year Additions Recognized in other comprehensive income Disposals and proceeds from return of capital of investments Transfers out of level 3 (Note) Effect of exchange rate changes Balance, end of year $ — $ 57,253.2 $ — $ 57,253.2 — 32,070.1 — 32,070.1 21,267.0 78.8 — 21,345.8 — 8,660.4 — 8,660.4 — — 5,887.9 5,887.9 189.8 — — 189.8 — 4,199.9 — 4,199.9 $ 21,456.8 $ 102,262.4 $ 5,887.9 $ 129,607.1 $ — $ 13.5 $ — $ 13.5 $ — $ 681.9 $ — $ 681.9 $ 9.6 $ — $ — $ 9.6 financial assets at FVTPL and equity investments classified as financial assets at FVTOCI.FVTOCI and financial assets at FVTPL. Reconciliations for the years ended December 31, 20182019, 2020 and 2019 were2021 are as follows: Years Ended December 31 2018 2019 NT$ NT$ (In Millions) (In Millions) $ 5,841.4 $ 3,910.7 212.5 372.3 (2,141.4 ) 129.5 (175.8 ) (76.5 ) — (43.6 ) 174.0 (83.5 ) $ 3,910.7 $ 4,208.9 Note:The transfer from level 3 to level 2 is because observable market data became available for the equity investments. $ 3,910.7 $ 4,208.9 $ 4,514.9 372.3 175.2 319.2 — (3.8 ) — 129.5 409.0 1,821.8 (76.5 ) (51.1 ) (700.2 ) (43.6 ) — — (83.5 ) (223.3 ) (67.8 ) $ 4,208.9 $ 4,514.9 $ 5,887.9
Forward exchange
The income approach utilizes discounted cash flows to determine the present value of the expected future economic benefits that will be derived from the investment. On December 31, 2018 and 2019, the Company uses unobservable inputs, which include expected returns, discount rate of 10%, discount for lack of marketability of 10%, and discounts for lack of control of 10%.
F - 76
In addition, the fair values of convertible bonds are determined by the present value of future cash flow based on a discount rate reflecting issuer’s credit spread and market conditions, combined with the fair value of conversion option estimated by the option pricing model considering recent financing activities of the investee and market transaction prices of the similar companies.
3) | Fair value of financial instruments that are not measured at fair value |
December 31, 2018 | ||||||||
Carrying | Level 2 | |||||||
Amount | Fair Value | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Financial assets | ||||||||
Financial assets at amortized costs | ||||||||
Corporate bonds | $ | 19,511.8 | $ | 19,554.5 | ||||
Commercial paper | 2,294.1 | 2,296.2 | ||||||
|
|
|
| |||||
$ | 21,805.9 | $ | 21,850.7 | |||||
|
|
|
| |||||
Financial liabilities | ||||||||
Financial liabilities at amortized costs | ||||||||
Bonds payable | $ | 91,800.0 | $ | 93,171.3 | ||||
|
|
|
|
December 31, 2019 | December 31, 2020 | |||||||||||||||
Carrying | Level 2 | Carrying | Level 2 | |||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
NT$ | NT$ | NT$ | NT$ | |||||||||||||
(In Millions) | (In Millions) | (In Millions) | (In Millions) | |||||||||||||
Financial assets | ||||||||||||||||
Financial assets at amortized costs | ||||||||||||||||
Corporate bonds | $ | 7,648.8 | $ | 7,718.7 | $ | 10,970.2 | $ | 11,053.6 | ||||||||
|
| |||||||||||||||
Financial liabilities | ||||||||||||||||
Financial liabilities at amortized costs | ||||||||||||||||
Bonds payable | $ | 56,900.0 | $ | 57,739.1 | $ | 256,705.1 | $ | 257,551.2 | ||||||||
|
|
December 31, 2021 | ||||||||
Carrying | Level 2 | |||||||
Amount | Fair Value | |||||||
NT$ | NT$ | |||||||
(In Millions) | (In Millions) | |||||||
Financial assets | ||||||||
Financial assets at amortized costs | ||||||||
Corporate bonds | $ | 5,307.0 | $ | 5,318.0 | ||||
Financial liabilities | ||||||||
Financial liabilities at amortized costs | ||||||||
Bonds payable | $ | 614,470.7 | $ | 613,514.7 | ||||
The fair value of commercial paper is determined by the present value of future cash flows based on the discounted curves that are derived from the quoted market prices.
F - 77
The fair value of the Company’s bonds payable is determined by quoted market prices provided by third party pricing services.
34. | RELATED PARTY TRANSACTIONS |
a. | Related party name and categories |
Related Party Name | Related Party Categories | |
GUC | Associates | |
VIS | Associates | |
SSMC | Associates | |
Xintec | ||
Associates | ||
TSMC Education and Culture Foundation | Other related parties | |
TSMC Charity Foundation | Other related parties |
b. | Net revenue |
Years Ended December 31 | ||||||||||||||
2017 | 2018 | 2019 | ||||||||||||
NT$ | NT$ | NT$ | ||||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||||
Item | Related Party Categories | |||||||||||||
Net revenue from sale of goods | Associates | $ | 8,496.0 | $ | 8,980.1 | $ | 6,253.9 | |||||||
Other related parties | 0.1 | 0.3 | — | |||||||||||
|
|
|
|
|
| |||||||||
$ | 8,496.1 | $ | 8,980.4 | $ | 6,253.9 | |||||||||
|
|
|
|
|
| |||||||||
Net revenue from royalties | Associates | $ | 482.5 | $ | 362.3 | $ | 183.6 | |||||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||||
2019 | 2020 | 2021 | ||||||||||||
NT$ | NT$ | NT$ | ||||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||||
Item | Related Party Categories | |||||||||||||
Net revenue from sale of goods | Associates | $ | 6,253.9 | $ | 8,129.8 | $ | 8,475.9 | |||||||
c. | Purchases |
Years Ended December 31 | ||||||||||||||
2017 | 2018 | 2019 | ||||||||||||
NT$ | NT$ | NT$ | ||||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||||
Related Party Categories |
| |||||||||||||
Associates | $ | 9,904.6 | $ | 8,809.5 | $ | 6,301.4 | ||||||||
|
|
|
|
|
|
F - 78
Years Ended December 31 | ||||||||||||||
2019 | 2020 | 2021 | ||||||||||||
NT$ | NT$ | NT$ | ||||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||||
Related Party Categories | ||||||||||||||
Associates | $ | 6,301.4 | $ | 7,606.4 | $ | 7,569.8 | ||||||||
d. | Receivables from relatedparties |
December 31, 2018 | December 31, 2019 | |||||||||
NT$ | NT$ | |||||||||
(In Millions) | (In Millions) | |||||||||
Item | Related Party Name/Categories | |||||||||
Receivables from related parties | GUC | $ | 481.9 | $ | 741.9 | |||||
Xintec | 102.5 | 120.2 | ||||||||
|
|
|
| |||||||
$ | 584.4 | $ | 862.1 | |||||||
|
|
|
| |||||||
Other receivables from related parties | SSMC | $ | 53.8 | $ | 46.5 | |||||
VIS | 10.4 | 3.9 | ||||||||
Other associates | 0.8 | 1.2 | ||||||||
|
|
|
| |||||||
$ | 65.0 | $ | 51.6 | |||||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||||
NT$ | NT$ | |||||||||
(In Millions) | (In Millions) | |||||||||
Item | Related Party Name/Categories | |||||||||
Receivables from related | GUC | $ | 370.6 | $ | 597.8 | |||||
parties | Xintec | 187.5 | 117.5 | |||||||
$ | 558.1 | $ | 715.3 | |||||||
Other receivables from related | SSMC | $ | 45.3 | $ | 50.4 | |||||
parties | VIS | 4.3 | 11.1 | |||||||
Other associates | 1.0 | — | ||||||||
$ | 50.6 | $ | 61.5 | |||||||
e. | Payables to related parties |
December 31, 2018 | December 31, 2019 | |||||||||
NT$ | NT$ | |||||||||
(In Millions) | (In Millions) | |||||||||
Item | Related Party Name/Categories | |||||||||
Payables to related parties | Xintec | $ | 649.8 | $ | 736.9 | |||||
SSMC | 362.6 | 487.9 | ||||||||
VIS | 357.1 | 154.0 | ||||||||
Others | 7.0 | 56.1 | ||||||||
|
|
|
| |||||||
$ | 1,376.5 | $ | 1,434.9 | |||||||
|
|
|
|
December 31, 2020 | December 31, 2021 | |||||||||
NT$ | NT$ | |||||||||
(In Millions) | (In Millions) | |||||||||
Item | Related Party Name/Categories | |||||||||
Payables to related parties | Xintec | $ | 1,358.6 | $ | 725.3 | |||||
VIS | 311.4 | 357.2 | ||||||||
SSMC | 400.8 | 349.2 | ||||||||
Other associates | 36.9 | 5.5 | ||||||||
$ | 2,107.7 | $ | 1,437.2 | |||||||
f. |
Accrued expenses and other current liabilities |
Years Ended December 31 | ||||||||||||||
2017 | 2018 | 2019 | ||||||||||||
NT$ | NT$ | NT$ | ||||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||||
Item | Related Party Categories | |||||||||||||
Manufacturing expenses | Associates | $ | 2,196.1 | $ | 2,974.6 | $ | 2,823.0 | |||||||
|
|
|
|
|
| |||||||||
Research and development expenses | Associates | $ | 69.8 | $ | 83.1 | $ | 163.4 | |||||||
|
|
|
|
|
| |||||||||
General and administrative expenses | Other related parties | $ | 101.5 | $ | 120.8 | $ | 120.0 | |||||||
|
|
|
|
|
|
F - 79
December 31, 2020 | December 31, 2021 | |||||||||
NT$ | NT$ | |||||||||
(In Millions) | (In Millions) | |||||||||
Item | Related Party Categories | |||||||||
Contract liabilities | Associates | $ | — | $ | 726.4 | |||||
g. | Others |
Years Ended December 31 | ||||||||||||||
2019 | 2020 | 2021 | ||||||||||||
NT$ | NT$ | NT$ | ||||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||||
Item | Related Party Categories | |||||||||||||
Manufacturing expenses | Associates | $ | 2,823.0 | $ | 5,440.0 | $ | 5,459.9 | |||||||
Compensation of key management personnel |
Years Ended December 31 | ||||||||||||||
2017 | 2018 | 2019 | ||||||||||||
NT$ | NT$ | NT$ | ||||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||||
Short-term employee benefits | $ | 2,170.3 | $ | 2,004.9 | $ | 1,922.2 | ||||||||
Post-employment benefits | 3.7 | 3.4 | 2.7 | |||||||||||
|
|
|
|
|
| |||||||||
$ | 2,174.0 | $ | 2,008.3 | $ | 1,924.9 | |||||||||
|
|
|
|
|
|
Years Ended December 31 | ||||||||||||||
2019 | 2020 | 2021 | ||||||||||||
NT$ | NT$ | NT$ | ||||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||||
Short-term employee benefits | $ | 1,922.2 | $ | 2,666.7 | $ | 2,886.8 | ||||||||
Post-employment benefits | 2.7 | 2.3 | 2.9 | |||||||||||
$ | 1,924.9 | $ | 2,669.0 | $ | 2,889.7 | |||||||||
35. | PLEDGED ASSETS |
36. | SIGNIFICANT CONTINGENT LIABILITIES ANDUNRECOGNIZED COMMITMENTS |
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 December 31, |
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 December 31, |
F - 80
c. |
|
|
TSMC entered into long-term purchase agreements of |
TSMC entered into a long-term purchase agreement of equipment. The relative |
TSMC entered into long-term energy purchase agreements with multiple suppliers. The relative |
Amounts available under unused letters of credit as of December 31, |
37. | SIGNIFICANT OPERATION LOSSES |
The Company experienced a computer virus outbreak on August 3, 2018, which affected a number of computer systems and fab tools, and consequently impacted wafer production in Taiwan. All the impacted tools have been recovered by August 6, 2018. The Company recognized a loss of NT$2,596.0 million related to this incident for the three months ended September 30, 2018, which was included in cost of revenue.
38. | OPERATING SEGMENTS INFORMATION |
a. | Operating segments, segment revenue and operating results |
F - 81
b. | Geographic |
1) | Geographic information |
Net Revenue from External Customers | ||||||||||||
Year Ended | Noncurrent Assets | |||||||||||
December 31 | December 31, | |||||||||||
2017 | 2018 | 2019 | ||||||||||
NT$ | NT$ | NT$ | ||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||
Taiwan | $ | 88,046.1 | $ | 1,039,471.3 | $ | 1,344,352.6 | ||||||
United States | 635,851.7 | 7,569.8 | 8,850.1 | |||||||||
China | 110,201.4 | 43,574.5 | 38,586.6 | |||||||||
Europe, the Middle East and Africa | 69,046.8 | 8.3 | 186.2 | |||||||||
Japan | 60,628.0 | 13.1 | 27.1 | |||||||||
Others | 13,673.2 | — | 3.1 | |||||||||
|
|
|
|
|
| |||||||
$ | 977,447.2 | $ | 1,090,637.0 | $ | 1,392,005.7 | |||||||
|
|
|
|
|
|
The Company categorized the net revenue mainly based on the countries where the customers are headquartered. For geographic information in 2018 and 2019, please refer to Note 24.
December 31, | December 31, | |||||||
2020 | 2021 | |||||||
Noncurrent Assets | NT$ (In Millions) | NT$ (In Millions) | ||||||
Taiwan | $ | 1,569,080.4 | $ | 1,953,007.7 | ||||
United States | 9,455.5 | 41,208.7 | ||||||
China | 34,456.4 | 41,895.2 | ||||||
Europe, the Middle East and Africa | 174.2 | 143.9 | ||||||
Japan | 327.2 | 1,011.0 | ||||||
Others | 3.0 | 0.5 | ||||||
$ | 1,613,496.7 | $ | 2,037,267.0 | |||||
2) |
|
Year Ended December 31 | ||||
2017 | ||||
NT$ | ||||
Product | (In Millions) | |||
Wafer | $ | 875,461.4 | ||
Others | 101,985.8 | |||
|
| |||
$ | 977,447.2 | |||
|
|
For product information in 2018 and 2019, please refer to Note 24.
Major customers representing at least 10% of net revenue |
Years Ended December 31 | ||||||||||||||||||||||||
2017 | 2018 | 2019 | ||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
NT$ | NT$ | NT$ | ||||||||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||||||||||||||
Customer A | $ | 220,463.1 | 23 | $ | 224,690.7 | 22 | $ | 247,213.3 | 23 | |||||||||||||||
Customer B | 46,355.5 | 5 | 83,885.6 | 8 | 152,876.9 | 14 |
Years Ended December 31 | ||||||||||||||||||||||||
2019 | 2020 | 2021 | ||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||||
NT$ | NT$ | NT$ | ||||||||||||||||||||||
(In Millions) | (In Millions) | (In Millions) | ||||||||||||||||||||||
Customer A | $ | 247,213.3 | 23 | $ | 336,775.5 | 25 | $ | 405,403.0 | 26 | |||||||||||||||
Customer B | NA (Note) | NA | NA | NA | 153,740.8 | 10 | ||||||||||||||||||
Customer C | 152,876.9 | 14 | 167,390.8 | 12 | NA | NA |
Note: | Revenue less than 10% of the Company’s net revenue. |
Commencing in 2018, the Company began to break down the net revenue by product, by geography, by resolution and by customer based on a new method which associates most estimated sales returns and allowances with individual sales transactions, as opposed to the previous method which allocated sales returns and allowances based on the aforementioned gross revenue. The Company believes the new method provides a more relevant breakdown than the previous one. On a comparable basis, the classifications of 2017 have been revised accordingly.
F - 83