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Taiwan Semiconductor Manufacturing Company Ltd.
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By
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/s/ Wendell
Jen-Chau
Huang
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Wendell
Jen-Chau
Huang
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Vice President & Chief Financial Officer
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Exhibit Number
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Exhibit Description
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99.1
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99.2
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EX-101.INS
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Inline XBRL Taxonomy Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
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EX-101.SCH
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Inline XBRL Taxonomy Extension Schema Document
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EX-101.CAL
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Inline XBRL Taxonomy Calculation Linkbase Document
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EX-101.DEF
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Inline XBRL Taxonomy Extension Definition Linkbase Document
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EX-101.LAB
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Inline XBRL Taxonomy Label Linkbase Document
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EX-101.PRE
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Inline XBRL Taxonomy Presentation Linkbase Document
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EX-104
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Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
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Exhibit 99.1
OPERATING AND FINANCIAL REVIEW AND PROSPECTS FOR THE SIX MONTHS ENDED JUNE 30, 2021
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This Exhibit includes statements that are, or may be deemed to be, “forward-looking statements” within the meaning of U.S. securities laws. The terms “anticipates,” “expects,” “may,” “will,” “could,” “should” and other similar expressions identify forward-looking statements. All statements other than statements of historical facts are forward-looking statements. These statements are made under the “Safe Harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements appear in a number of places throughout this Exhibit and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which we operate.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance and our actual results of operations, financial condition and liquidity, and the development of the industries in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this Exhibit. Important factors that could cause those differences include, but are not limited to: general local and global economic conditions; the political stability of our local region; outlook of the major and emerging end markets for our products, such as smartphones, high performance computing, internet of things, automotive electronics and digital consumer electronics; the volatility of the semiconductor and electronics industry; our ability to develop new technologies successfully and remain a technological leader; the increased competition from other companies and our ability to retain and increase our market share; overcapacity in the semiconductor industry; our reliance on certain major customers; the reliability of our information technology systems and resilience to any cyberattacks; our ability to maintain control over expansion and facility modifications; our ability to generate growth and profitability; our ability to hire and retain qualified personnel; our ability to acquire required equipment and supplies necessary to meet business needs; our ability to protect our technologies, intellectual property rights and third-party licenses; disruptive events, such as earthquakes or droughts; the COVID-19 pandemic; power and other utility shortages; construction issues as we expand our capacity; and fluctuations in foreign currency rates, in particular, any material appreciation of the NT dollar against the U.S. dollar, and our ability to manage such risks.
You should not place undue reliance on these forward-looking statements.
Forward-looking statements include, but are not limited to, statements regarding our strategy and future plans, future business condition and financial results, our capital expenditure plans, our capacity management plans, expectations as to the commercial production using 3-nanometer and more advanced technologies, technological upgrades, investment in research and development, future market demand, future regulatory or other developments in our industry, business expansion plans or new investments as well as business acquisitions and financing plans.
The forward-looking statements made in this Exhibit relate only to events or information as of the date on which the statements are made in this Exhibit. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read this Exhibit completely in conjunction with our Annual Reports on Form 20-F and other documents filed with or furnished to the SEC and with the understanding that our actual future results may be materially different from what we expect.
1
CERTAIN DEFINED TERMS AND CONVENTIONS
Unless the context otherwise requires, reference to:
| • |
“Obligor Group” are to TSMC Arizona Corporation and Taiwan Semiconductor Manufacturing Company Limited collectively; |
| • |
“we,” “us,” “our,” “Company,” “Group” or “TSMC” in this report are to Taiwan Semiconductor Manufacturing Company Limited and its consolidated subsidiaries; |
| • |
“R.O.C.” and “Taiwan” are references to the Republic of China, and all references to the “Government” refer to the government of the R.O.C.; |
| • |
“NT$” and “NT dollar” are to the lawful currency of the R.O.C; and |
| • |
“U.S. dollar” or “US$” are to the lawful currency of the United States of America. |
Unless otherwise noted, for the convenience of the reader, certain NT dollar amounts have been translated into U.S. dollars at the rate of NT$27.91 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2021.
SELECTED FINANCIAL INFORMATION AND OPERATING DATA
The selected consolidated statements of profit or loss and other comprehensive income data and other consolidated financial data for the six months ended June 30, 2020 and 2021, and the selected consolidated statements of financial position as of June 30, 2021, set forth below, are derived from our unaudited condensed consolidated interim financial statements included herein, and should be read in conjunction with, and are qualified in their entirety by reference to, these unaudited condensed consolidated interim 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”) and reviewed by our independent auditors.
2
3
| (1) |
In thousands. |
4
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, certain financial data from our consolidated statements of profit or loss and other comprehensive income, expressed in each case as a percentage of net revenue:
|
For the six months
ended June 30, |
||||||||
| 2020 | 2021 | |||||||
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Net revenue |
100.0% | 100.0% | ||||||
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Cost of revenue |
(47.6)% | (48.8)% | ||||||
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Gross profit |
52.4% | 51.2% | ||||||
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Operating expenses |
||||||||
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Research and development |
(8.0)% | (8.4)% | ||||||
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General and administrative |
(2.1)% | (2.0)% | ||||||
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Marketing |
(0.5)% | (0.5)% | ||||||
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Total operating expenses |
(10.6)% | (10.9)% | ||||||
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Other operating income and expenses, net |
0.0% | 0.0% | ||||||
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Income from operations |
41.8% | 40.3% | ||||||
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Income before income tax |
43.2% | 41.4% | ||||||
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Income tax expense |
(5.0)% | (3.7)% | ||||||
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Net income |
38.2% | 37.7% | ||||||
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Other comprehensive loss for the period, net of income tax |
(1.5)% | (0.5)% | ||||||
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Total comprehensive income for the period |
36.7% | 37.2% | ||||||
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Net income attributable to shareholders of the parent |
38.2% | 37.7% | ||||||
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Net income attributable to non-controlling interests |
0.0% | 0.0% | ||||||
Net Revenue and Gross Margin
| For the six months ended June 30, | ||||||||||||||||
| 2020 | 2021 |
% Change in
NT$ from 2020 |
||||||||||||||
| NT$ | NT$ | US$ | ||||||||||||||
| (in millions, except percentages) | ||||||||||||||||
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Net revenue |
621,296 | 734,555 | 26,319 | 18.2% | ||||||||||||
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Cost of revenue |
(295,819 | ) | (358,546 | ) | (12,847 | ) | 21.2% | |||||||||
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Gross profit before realized (unrealized) gross profit on sales to associates |
325,477 | 376,009 | 13,472 | 15.5% | ||||||||||||
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Realized (unrealized) gross profit on sales to associates |
(77 | ) | 27 | 1 | — | |||||||||||
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Gross profit |
325,400 | 376,036 | 13,473 | 15.6% | ||||||||||||
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Gross margin percentage |
52.4% | 51.2% | 51.2% | — | ||||||||||||
5
Net Revenue
Our net revenue increased by 18.2% in the six months ended June 30, 2021, compared to the same period in 2020, which was mainly attributed to a 15.2% increase in wafer shipments and an 11.7% increase in average selling price due to higher advanced technology (7-nanometer and below) revenue weighting, partially offset by a 7.1% appreciation of the NT dollar against the U.S. dollar.
Gross Margin
Our gross margin fluctuates with the level of capacity utilization, price change, cost improvement, product mix and exchange rates, among other factors. Furthermore, our gross margin would be negatively impacted in the period when a new technology is introduced.
In the six months ended June 30, 2021, our gross margin decreased to 51.2% of net revenue from 52.4% in the same period in 2020, mainly ascribed to an unfavorable impact of the NT dollar’s appreciation against the U.S. dollar, partially offset by higher capacity utilization.
Operating Expenses
| For the six months ended June 30, | ||||||||||||||||
| 2020 | 2021 |
% Change in
NT$ from 2020 |
||||||||||||||
| NT$ | NT$ | US$ | ||||||||||||||
| (in millions, except percentages) | ||||||||||||||||
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Research and development |
49,862 | 61,630 | 2,208 | 23.6% | ||||||||||||
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General and administrative |
12,798 | 14,351 | 514 | 12.1% | ||||||||||||
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Marketing |
3,184 | 3,714 | 133 | 16.6% | ||||||||||||
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Total operating expenses |
65,844 | 79,695 | 2,855 | 21.0% | ||||||||||||
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Percentage of net revenue |
10.6% | 10.9% | 10.9% | — | ||||||||||||
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Other operating income and expenses, net |
60 | (136 | ) | (5 | ) | (326.7)% | ||||||||||
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Income from operations |
259,616 | 296,205 | 10,613 | 14.1% | ||||||||||||
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Operating margin |
41.8% | 40.3% | 40.3% | — | ||||||||||||
Operating expenses increased by NT$13,851 million in the six months ended June 30, 2021, or 21.0%, compared to the same period in 2020.
Research and Development Expenses
We remain strongly committed to being the leader in advanced process technologies development. We believe that continuing investment in process technologies is essential for us to remain competitive in the markets we serve.
Research and development expenses increased by NT$11,768 million in the six months ended June 30, 2021, or 23.6%, from the same period in 2020. The increases were mainly attributed to a higher level of research activities for 2-nanometer, 3-nanometer and 4-nanometer process technologies, as we continued to advance to smaller processing nodes, partially offset by a lower level of research activities for 5-nanometer and 7-nanometer. We plan to continue our investment in technology research and development in 2021.
6
General and Administrative and Marketing Expenses
General and administrative and marketing expenses in the six months ended June 30, 2021, increased by NT$2,083 million, or 13.0%, compared to the same period in 2020, mainly reflecting a structural pay raise and higher employee profit sharing expenses due to higher net income.
Other Operating Income and Expenses
We recorded a net loss of NT$136 million from other operating income and expenses in the six months ended June 30, 2021, compared to a net gain of NT$60 million in the same period in 2020, primarily attributed to an impairment loss on property, plant and equipment of NT$274 million and higher depreciation of assets subject to operating leases of NT$123 million, partially offset by higher rental income of NT$247 million.
Non-Operating Income and Expenses
| For the six months ended June 30, | ||||||||||||||||
| 2020 | 2021 |
% Change
in NT$ from 2020 |
||||||||||||||
| NT$ | NT$ | US$ | ||||||||||||||
| (in millions, except percentages) | ||||||||||||||||
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Share of profits of associates |
1,434 | 2,424 | 87 | 69.0% | ||||||||||||
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Interest income |
5,468 | 2,890 | 103 | (47.1)% | ||||||||||||
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Other income |
344 | 657 | 24 | 91.0% | ||||||||||||
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Foreign exchange gain, net |
3,155 | 6,124 | 219 | 94.1% | ||||||||||||
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Finance costs |
(940 | ) | (1,907 | ) | (68 | ) | 102.9% | |||||||||
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Other gains and losses, net |
(502 | ) | (1,953 | ) | (70 | ) | 289.0% | |||||||||
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Net non-operating income |
8,959 | 8,235 | 295 | (8.1)% | ||||||||||||
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Net non-operating income in the six months ended June 30, 2021, decreased by NT$724 million, or 8.1%, from NT$8,959 million in the same period in 2020, mainly due to lower interest income of NT$2,578 million and higher finance costs of NT$967 million compared to the same period in 2020. The decrease was partially offset by higher foreign exchange gain of NT$2,969 million compared to the same period in 2020.
7
Income Tax Expense
| For the six months ended June 30, | ||||||||||||||||
| 2020 | 2021 |
%
Change in NT$ from 2020 |
||||||||||||||
| NT$ | NT$ | US$ | ||||||||||||||
| (in millions, except percentages) | ||||||||||||||||
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Income tax expense |
(31,208 | ) | (27,297 | ) | (978 | ) | (12.5)% | |||||||||
|
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|||||||||||
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Net income |
237,367 | 277,143 | 9,930 | 16.8% | ||||||||||||
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|||||||||||
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Net income attributable to shareholders of the parent |
237,225 | 276,980 | 9,924 | 16.8% | ||||||||||||
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Net margin attributable to shareholders of the parent |
38.2% | 37.7% | 37.7% | — | ||||||||||||
Income tax expenses decreased by NT$3,911 million in the six months ended June 30, 2021, or 12.5%, from the same period in 2020. The decrease was mainly due to the adjustment of surtax imposed on prior year’s unappropriated earnings in 2021, attributed to the deduction of capital expenditures from the unappropriated earnings.
Summary Financial Information of the Obligor Group
Basis of preparation
The following summarized financial information is presented for the Obligor Group on a combined basis after elimination of intercompany transactions between entities in the combined group and amounts related to investments in any subsidiary that is a non-guarantor.
This information is not intended to present the financial position or results of operations of the combined group of companies in accordance with U.S. GAAP.
Translations for financial data as of and for the year ended December 31, 2020 in this subsection, were made at the rate of NT$28.08 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2020.
8
Statement of Income for Obligor Group
|
For the year ended
December 31, 2020 |
For the six months ended
June 30, 2021 |
|||||||||||||||
| NT$ | US$ | NT$ | US$ | |||||||||||||
| (in millions) | ||||||||||||||||
|
Net sales – external |
490,354 | 17,463 | 246,790 | 8,843 | ||||||||||||
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Net sales – to subsidiaries outside of the Obligor Group |
824,439 | 29,360 | 482,744 | 17,296 | ||||||||||||
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Total net sales |
1,314,793 | 46,823 | 729,534 | 26,139 | ||||||||||||
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Gross profit |
682,004 | 24,288 | 361,889 | 12,966 | ||||||||||||
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Income from continuing operations |
543,465 | 19,354 | 285,046 | 10,213 | ||||||||||||
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Net income |
510,744 | 18,189 | 276,989 | 9,924 | ||||||||||||
|
Net income attributable to Obligor Group |
510,744 | 18,189 | 276,989 | 9,924 | ||||||||||||
Balance Sheet for Obligor Group
| As of December 31, 2020 | As of June 30, 2021 | |||||||||||||||
| NT$ | US$ | NT$ | US$ | |||||||||||||
| (in millions) | ||||||||||||||||
|
Assets |
||||||||||||||||
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Current assets – external |
477,878 | 17,019 | 520,070 | 18,634 | ||||||||||||
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Current assets – due from subsidiaries outside of the Obligor Group |
103,193 | 3,675 | 124,287 | 4,453 | ||||||||||||
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Total current assets |
581,071 | 20,694 | 644,357 | 23,087 | ||||||||||||
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Non-current assets – external |
1,607,298 | 57,240 | 1,787,537 | 64,047 | ||||||||||||
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Non-current assets – due from subsidiaries outside of the Obligor Group |
545,009 | 19,409 | 552,826 | 19,807 | ||||||||||||
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Total non-current assets |
2,152,307 | 76,649 | 2,340,363 | 83,854 | ||||||||||||
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Total assets |
2,733,378 | 97,343 | 2,984,720 | 106,941 | ||||||||||||
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Liabilities |
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Current liabilities – external |
602,920 | 21,471 | 632,598 | 22,666 | ||||||||||||
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Current liabilities – due from subsidiaries outside the Obligor Group |
92,329 | 3,288 | 108,574 | 3,890 | ||||||||||||
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Total current liabilities |
695,249 | 24,759 | 741,172 | 26,556 | ||||||||||||
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Non-current liabilities – external |
203,318 | 7,241 | 263,677 | 9,447 | ||||||||||||
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Non-current liabilities – due from subsidiaries outside of the Obligor Group |
— | — | — | — | ||||||||||||
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Total non-current liabilities |
203,318 | 7,241 | 263,677 | 9,447 | ||||||||||||
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Total liabilities |
898,567 | 32,000 | 1,004,849 | 36,003 | ||||||||||||
9
Liquidity and Capital Resources
Our sources of liquidity include cash flow from operations, cash and cash equivalents, current portion of marketable financial assets and issuances of corporate bonds.
Our primary source of liquidity is cash flow from operations. Cash flow from operations for the six months ended June 30, 2021, was NT$415,255 million (US$14,878 million), reflecting an increase of NT$41,891 million compared to the same period in 2020.
Our cash, cash equivalents and current portion of marketable financial assets increased to NT$870,835 million (US$31,202 million) as of June 30, 2021, compared to NT$605,016 million as of June 30, 2020. The current portion of marketable financial assets primarily consisted of fixed income securities. During the six months ended June 30, 2021, we issued NT dollar-denominated corporate bonds totaling NT$60,000 million (US$2,150 million) and U.S. dollar denominated corporate bonds of US$3,500 million.
We believe that our cash generated from operations, cash and cash equivalents, current portion of marketable financial assets, and ability to access capital markets will be sufficient to fund our working capital needs, capital expenditures, debt repayments, dividend payments and other business requirements associated with existing operations over the next 12 months.
| For the six months ended June 30, | ||||||||||||
| 2020 | 2021 | |||||||||||
| NT$ | NT$ | US$ | ||||||||||
| (in millions) | ||||||||||||
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Net cash generated by operating activities |
373,364 | 415,255 | 14,878 | |||||||||
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Net cash used in investing activities |
(318,743 | ) | (414,003 | ) | (14,833 | ) | ||||||
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Net cash generated by (used in) financing activities |
(34,845 | ) | 89,649 | 3,212 | ||||||||
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Effect of exchange rate changes on cash and cash equivalents |
(7,561 | ) | (3,090 | ) | (111 | ) | ||||||
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Net increase in cash and cash equivalents |
12,215 | 87,811 | 3,146 | |||||||||
Cash and cash equivalents increased by NT$87,811 million in the six months ended June 30, 2021.
Operating Activities
In the six months ended June 30, 2021, we generated NT$415,255 million (US$14,878 million) net cash from operating activities, as compared to NT$373,364 million in the same period in 2020. The net cash generated from operating activities was primarily from NT$304,440 million in income before tax and NT$204,705 million in non-cash depreciation and amortization expenses, partially offset by income tax payments, changes in working capital and others of NT$93,890 million. The increase in depreciation and amortization expenses in the six months ended June 30, 2021 was mainly attributed to continuing investment in production capacity for advanced technologies. In the six months ended June 30, 2020, net cash generated from operating activities was primarily from NT$268,575 million in income before income tax and NT$139,430 million in non-cash depreciation and amortization expenses, partially offset by income tax payments, changes in working capital and others of NT$34,641 million.
10
Investing Activities
In the six months ended June 30, 2021, net cash used in investing activities was NT$414,003 million (US$14,833 million), as compared to NT$318,743 million in the same period in 2020. The primary use of cash in investing activities in the six months ended June 30, 2021 was for capital expenditures of NT$415,000 million.
In the six months ended June 30, 2020, net cash used in investing activities was primarily for capital expenditures of NT$319,258 million.
Financing Activities
In the six months ended June 30, 2021, net cash generated in financing activities was NT$89,649 million (US$3,212 million), as compared to net cash used in financing activities of NT$34,845 million in the same period in 2020. The net cash generated in financing activities in the six months ended June 30, 2021 was mainly from proceeds from issuance of corporate bonds and increases in short-term loans, partially offset by cash dividend payments.
In the six months ended June 30, 2020, net cash used in financing activities was primarily for cash dividend payments and repayments of corporate bonds, partially offset by proceeds from issuance of corporate bonds and increases in short-term loans.
11
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Page
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Condensed Consolidated Financial Statements of Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
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F-1
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| F-2 | ||||
| F-3 | ||||
| F-5 | ||||
| F-7 | ||||
| F-8 | ||||
| F-10 | ||||
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The accompanying notes are an integral part of the condensed consolidated financial statements.
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(Concluded)
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Six Months Ended June 30
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Notes
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2020
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2021
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NT$
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NT$
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US$
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(Note 3)
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NET REVENUE
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22, 31, 34 | $ | 621,295.5 | $ | 734,555.4 | $ | 26,318.7 | |||||||
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COST OF REVENUE
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13, 28, 31 | 295,818.5 | 358,546.1 | 12,846.5 | ||||||||||
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GROSS PROFIT BEFORE REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO
ASSOCIATES |
325,477.0 | 376,009.3 | 13,472.2 | |||||||||||
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REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO ASSOCIATES
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(76.7 | ) | 26.9 | 1.0 | ||||||||||
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GROSS PROFIT
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325,400.3 | 376,036.2 | 13,473.2 | |||||||||||
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OPERATING EXPENSES
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28, 31 | |||||||||||||
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Research and development
|
49,861.9 | 61,629.7 | 2,208.1 | |||||||||||
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General and administrative
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12,797.5 | 14,350.8 | 514.2 | |||||||||||
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Marketing
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3,184.3 | 3,714.7 | 133.1 | |||||||||||
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|||||||||
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Total operating expenses
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65,843.7 | 79,695.2 | 2,855.4 | |||||||||||
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OTHER OPERATING INCOME AND EXPENSES, NET
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15, 16, 28 | 59.6 | (135.6 | ) | (4.9 | ) | ||||||||
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INCOME FROM OPERATIONS
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34 | 259,616.2 | 296,205.4 | 10,612.9 | ||||||||||
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NON-OPERATING
INCOME AND EXPENSES
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||||||||||||||
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Share of profits of associates
|
1,434.4 | 2,423.5 | 86.8 | |||||||||||
|
Interest Income
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23 | 5,467.4 | 2,889.6 | 103.5 | ||||||||||
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Other income
|
343.9 | 657.2 | 23.6 | |||||||||||
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Foreign exchange gain, net
|
3,155.1 | 6,123.9 | 219.4 | |||||||||||
|
Finance costs
|
24 | (939.7 | ) | (1,906.5 | ) | (68.3 | ) | |||||||
|
Other gains and losses, net
|
25 | (501.8 | ) | (1,953.2 | ) | (70.0 | ) | |||||||
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|
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|||||||||
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Total
non-operating
income and expenses
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8,959.3 | 8,234.5 | 295.0 | |||||||||||
|
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|||||||||
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INCOME BEFORE INCOME TAX
|
268,575.5 | 304,439.9 | 10,907.9 | |||||||||||
|
INCOME TAX EXPENSE
|
5, 26 | 31,208.1 | 27,297.0 | 978.0 | ||||||||||
|
|
|
|
|
|
|
|||||||||
|
NET INCOME
|
237,367.4 | 277,142.9 | 9,929.9 | |||||||||||
|
|
|
|
|
|
|
|||||||||
|
OTHER COMPREHENSIVE INCOME (LOSS)
|
21, 26 | |||||||||||||
|
Items that will not be reclassified subsequently to profit or loss:
|
||||||||||||||
|
Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income
|
(21.7 | ) | 817.3 | 29.3 | ||||||||||
|
Loss on hedging instruments
|
(42.8 | ) | (41.4 | ) | (1.5 | ) | ||||||||
|
Share of other comprehensive income (loss) of associates
|
(3.5 | ) | 4.5 | 0.2 | ||||||||||
|
Income tax benefit (expense) related to items that will not be reclassified subsequently
|
0.4 | (55.8 | ) | (2.0 | ) | |||||||||
|
|
|
|
|
|
|
|||||||||
| (67.6 | ) | 724.6 | 26.0 | |||||||||||
|
|
|
|
|
|
|
|||||||||
|
Equity Attributable to Shareholders of the Parent
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Others
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Capital Stock - Common Stock
|
Capital Surplus
|
Retained Earnings
|
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
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Shares
(In Millions) |
Amount
|
Legal Capital
Reserve |
Special Capital
Reserve |
Unappropriated
Earnings |
Total
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BALANCE, JANUARY 1, 2020
|
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
|
— | — | — | — | 14,198.2 | (14,198.2 | ) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
|
Cash dividends to shareholders
|
— | — | — | — | — | (129,651.9 | ) | (129,651.9 | ) | — | — | — | — | — | (129,651.9 | ) | — | (129,651.9 | ) | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Total
|
— | — | — | — | 14,198.2 | (143,850.1 | ) | (129,651.9 | ) | — | — | — | — | — | (129,651.9 | ) | — | (129,651.9 | ) | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Net income for the six months ended June 30, 2020
|
— | — | — | — | — | 237,224.6 | 237,224.6 | — | — | — | — | — | 237,224.6 | 142.8 | 237,367.4 | |||||||||||||||||||||||||||||||||||||||||||||
|
Other comprehensive income (loss) for the six months ended June 30, 2020
|
— | — | — | — | — | — | — | (11,866.4 | ) | 2,672.9 | (42.8 | ) | — | (9,236.3 | ) | (9,236.3 | ) | 0.6 | (9,235.7 | ) | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Total comprehensive income (loss) for the six months ended June 30, 2020
|
— | — | — | — | — | 237,224.6 | 237,224.6 | (11,866.4 | ) | 2,672.9 | (42.8 | ) | — | (9,236.3 | ) | 227,988.3 | 143.4 | 228,131.7 | ||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Basis adjustment for loss on hedging instruments
|
— | — | — | — | — | — | — | — | — | 46.6 | — | 46.6 | 46.6 | — | 46.6 | |||||||||||||||||||||||||||||||||||||||||||||
|
Adjustments to share of changes in equities of associates
|
— | — | 0.3 | — | — | — | — | — | — | — | 0.2 | 0.2 | 0.5 | — | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||
|
Increase in
non-controlling
interests
|
— | — | — | — | — | — | — | — | — | — | — | — | — | 3.0 | 3.0 | |||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
BALANCE, JUNE 30, 2020
|
25,930.3 | $ | 259,303.8 | $ | 56,340.0 | $ | 311,147.0 | $ | 24,873.3 | $ | 1,097,182.8 | $ | 1,433,203.1 | $ | (38,737.8 | ) | $ | 1,980.0 | $ | — | $ | — | $ | (36,757.8 | ) | $ | 1,712,089.1 | $ | 828.1 | $ | 1,712,917.2 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
BALANCE, JANUARY 1, 2021
|
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
|
— | — | — | — | 6,133.7 | (6,133.7 | ) | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
|
Cash dividends to shareholders
|
— | — | — | — | — | (136,134.5 | ) | (136,134.5 | ) | — | — | — | — | — | (136,134.5 | ) | — | (136,134.5 | ) | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Total
|
— | — | — | — | 6,133.7 | (142,268.2 | ) | (136,134.5 | ) | — | — | — | — | — | (136,134.5 | ) | — | (136,134.5 | ) | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Net income for the six months ended June 30, 2021
|
— | — | — | — | — | 276,980.5 | 276,980.5 | — | — | — | — | — | 276,980.5 | 162.4 | 277,142.9 | |||||||||||||||||||||||||||||||||||||||||||||
|
Other comprehensive loss for the six months ended June 30, 2021
|
— | — | — | — | — | — | — | (3,168.9 | ) | (1,024.1 | ) | (41.4 | ) | — | (4,234.4 | ) | (4,234.4 | ) | (0.1 | ) | (4,234.5 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Total comprehensive income (loss) for the six months ended June 30, 2021
|
— | — | — | — | — | 276,980.5 | 276,980.5 | (3,168.9 | ) | (1,024.1 | ) | (41.4 | ) | — | (4,234.4 | ) | 272,746.1 | 162.3 | 272,908.4 | |||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
Disposal of investments in equity instruments at fair value through other comprehensive income
|
— | — | — | — | — | (278.8 | ) | (278.8 | ) | — | 278.8 | — | — | 278.8 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
|
Basis adjustment for gain on hedging instruments
|
— | — | — | — | — | — | — | — | — | 41.4 | — | 41.4 | 41.4 | — | 41.4 | |||||||||||||||||||||||||||||||||||||||||||||
|
Adjustments to share of changes in equities of associates
|
— | — | 0.3 | — | — | — | — | — | — | — | — | — | 0.3 | — | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||
|
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 | |||||||||||||||||||||||||||||||||||||||||||||
|
Increase in
non-controlling
interests
|
— | — | — | — | — | — | — | — | — | — | — | — | — | 3.5 | 3.5 | |||||||||||||||||||||||||||||||||||||||||||||
|
Effect of acquisition of subsidiary
|
— | — | — | — | — | — | — | — | — | — | — | — | — | 0.2 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
|
BALANCE, JUNE 30, 2021
|
25,930.3 | $ | 259,303.8 | $ | 64,753.8 | $ | 311,147.0 | $ | 48,392.8 | $ | 1,354,867.5 | $ | 1,714,407.3 | $ | (60,170.5 | ) | $ | 1,576.5 | $ | — | $ | — | $ | (58,594.0 | ) | $ | 1,979,870.9 | $ | 2,164.0 | $ | 1,982,034.9 | |||||||||||||||||||||||||||||
|
|
|
|
|
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|
|
|||||||||||||||||||||||||||||||
|
BALANCE, JUNE 30, 2021 (IN MILLIONS OF US$ - Note 3)
|
$ | 9,290.7 | $ | 2,320.1 | $ | 11,148.2 | $ | 1,733.9 | $ | 48,544.2 | $ | 61,426.3 | $ | (2,155.9 | ) | $ | 56.5 | $ | — | $ | — | $ | (2,099.4 | ) | $ | 70,937.7 | $ | 77.5 | $ | 71,015.2 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||
|
Six Months Ended June 30
|
||||||||||||
|
2020
|
2021
|
|||||||||||
|
NT$
|
NT$
|
US$
|
||||||||||
|
(Note 3)
|
||||||||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||
|
Income before income tax
|
$ | 268,575.5 | $ | 304,439.9 | $ | 10,907.9 | ||||||
|
Adjustments for:
|
||||||||||||
|
Depreciation expense
|
136,065.3 | 200,697.1 | 7,190.9 | |||||||||
|
Amortization expense
|
3,364.4 | 4,008.4 | 143.6 | |||||||||
|
Expected credit losses recognized (reversal) on investments in debt instruments
|
0.2 | (3.3 | ) | (0.1 | ) | |||||||
|
Finance costs
|
939.7 | 1,906.5 | 68.3 | |||||||||
|
Share of profits of associates
|
(1,434.4 | ) | (2,423.5 | ) | (86.8 | ) | ||||||
|
Interest income
|
(5,467.4 | ) | (2,889.6 | ) | (103.5 | ) | ||||||
|
Discounts on short-term loans
|
— | (283.7 | ) | (10.2 | ) | |||||||
|
Share-based compensation
|
3.0 | 3.4 | 0.1 | |||||||||
|
Loss (gain) on disposal or retirement of property, plant and equipment, net
|
(6.3 | ) | 10.6 | 0.4 | ||||||||
|
Loss on disposal of intangible assets, net
|
— | 1.2 | — | |||||||||
|
Impairment loss on property, plant and equipment
|
— | 274.4 | 9.8 | |||||||||
|
Loss on financial instruments at fair value through profit or loss, net
|
3.4 | — | — | |||||||||
|
Gain on disposal of investments in debt instruments at fair value through other comprehensive income, net
|
(926.9 | ) | (169.3 | ) | (6.1 | ) | ||||||
|
Unrealized (realized) gross profit on sales to associates
|
76.7 | (26.9 | ) | (1.0 | ) | |||||||
|
Gain on foreign exchange, net
|
(2,916.9 | ) | (7,684.2 | ) | (275.3 | ) | ||||||
|
Dividend income
|
(341.8 | ) | (348.1 | ) | (12.5 | ) | ||||||
|
Changes in operating assets and liabilities:
|
||||||||||||
|
Financial instruments at fair value through profit or loss
|
(53.7 | ) | 3,895.6 | 139.6 | ||||||||
|
Notes and accounts receivable, net
|
(11,310.4 | ) | (31,995.2 | ) | (1,146.4 | ) | ||||||
|
Receivables from related parties
|
(29.6 | ) | (226.3 | ) | (8.1 | ) | ||||||
|
Other receivables from related parties
|
(10.8 | ) | (36.2 | ) | (1.3 | ) | ||||||
|
Inventories
|
(2,806.9 | ) | (33,085.3 | ) | (1,185.4 | ) | ||||||
|
Other financial assets
|
1,618.1 | (4,302.5 | ) | (154.3 | ) | |||||||
|
Other current assets
|
(1,363.4 | ) | (835.5 | ) | (29.9 | ) | ||||||
|
Accounts payable
|
(478.9 | ) | 738.5 | 26.5 | ||||||||
|
Payables to related parties
|
(1.9 | ) | (603.5 | ) | (21.6 | ) | ||||||
|
Salary and bonus payable
|
(1,524.6 | ) | (2,922.3 | ) | (104.7 | ) | ||||||
|
Accrued profit sharing bonus to employees and compensation to directors and supervisors
|
16,379.6 | 16,647.9 | 596.5 | |||||||||
|
Accrued expenses and other current liabilities
|
8,356.8 | 25,071.0 | 898.3 | |||||||||
|
Net defined benefit liability
|
(801.3 | ) | (628.6 | ) | (22.5 | ) | ||||||
|
|
|
|
|
|
|
|||||||
|
Cash generated from operations
|
405,907.5 | 469,230.5 | 16,812.2 | |||||||||
|
Income taxes paid
|
(32,543.1 | ) | (53,975.3 | ) | (1,933.9 | ) | ||||||
|
|
|
|
|
|
|
|||||||
|
Net cash generated by operating activities
|
373,364.4 | 415,255.2 | 14,878.3 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Six Months Ended June 30
|
||||||||||||
|
2020
|
2021
|
|||||||||||
|
NT$
|
NT$
|
US$
|
||||||||||
|
(Note 3)
|
||||||||||||
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||
|
Acquisitions of:
|
||||||||||||
|
Financial assets at fair value through other comprehensive income
|
$ | (123,362.6 | ) | $ | (151,585.4 | ) | $ | (5,431.2 | ) | |||
|
Financial assets at amortized cost
|
(1,366.4 | ) | — | — | ||||||||
|
Property, plant and equipment
|
(319,258.1 | ) | (414,999.8 | ) | (14,869.2 | ) | ||||||
|
Intangible assets
|
(8,487.6 | ) | (4,123.6 | ) | (147.7 | ) | ||||||
|
Proceeds from disposal or redemption of:
|
||||||||||||
|
Financial assets at fair value through other comprehensive income
|
126,228.0 | 148,593.5 | 5,324.0 | |||||||||
|
Financial assets at amortized cost
|
— | 6,581.2 | 235.8 | |||||||||
|
Property, plant and equipment
|
182.0 | 116.9 | 4.2 | |||||||||
|
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income
|
— | 62.8 | 2.3 | |||||||||
|
Derecognition of hedging financial instruments
|
(339.2 | ) | 143.7 | 5.1 | ||||||||
|
Interest received
|
5,959.2 | 3,040.1 | 108.9 | |||||||||
|
Proceeds from government grants - property, plant and equipment
|
475.7 | — | — | |||||||||
|
Proceeds from government grants - others
|
20.1 | — | — | |||||||||
|
Other dividends received
|
406.3 | 318.7 | 11.4 | |||||||||
|
Dividends received from investments accounted for using equity method
|
233.4 | 233.4 | 8.4 | |||||||||
|
Increase in prepayments for leases
|
— | (1,200.0 | ) | (43.0 | ) | |||||||
|
Refundable deposits paid
|
(120.6 | ) | (1,553.7 | ) | (55.7 | ) | ||||||
|
Refundable deposits refunded
|
686.4 | 369.8 | 13.2 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Net cash used in investing activities
|
(318,743.4 | ) | (414,002.4 | ) | (14,833.5 | ) | ||||||
|
|
|
|
|
|
|
|||||||
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||
|
Increase in short-term loans
|
52,578.6 | 55,624.1 | 1,993.0 | |||||||||
|
Proceeds from short-term bills payable
|
7,485.3 | — | — | |||||||||
|
Repayments of short-term bills payable
|
(1,000.0 | ) | — | — | ||||||||
|
Proceeds from issuance of bonds
|
60,000.0 | 157,809.5 | 5,654.2 | |||||||||
|
Repayment of bonds
|
(21,600.0 | ) | (2,600.0 | ) | (93.2 | ) | ||||||
|
Proceeds of long-term bank loans
|
— | 1,210.0 | 43.5 | |||||||||
|
Payments for transaction costs attributable to the issuance of bonds
|
(62.1 | ) | (278.8 | ) | (10.0 | ) | ||||||
|
Repayment of the principal portion of lease liabilities
|
(1,412.8 | ) | (985.3 | ) | (35.3 | ) | ||||||
|
Interest paid
|
(1,196.0 | ) | (1,046.3 | ) | (37.5 | ) | ||||||
|
Guarantee deposits received
|
21.2 | 151.2 | 5.4 | |||||||||
|
Guarantee deposits refunded
|
(7.7 | ) | (35.4 | ) | (1.3 | ) | ||||||
|
Cash dividends
|
(129,651.9 | ) | (129,651.9 | ) | (4,645.4 | ) | ||||||
|
Disposal of ownership interests in subsidiaries (without losing control)
|
— | 9,451.8 | 338.7 | |||||||||
|
Increase in
non-controlling
interests
|
— | 0.2 | — | |||||||||
|
|
|
|
|
|
|
|||||||
|
Net cash generated (used) in financing activities
|
(34,845.4 | ) | 89,649.1 | 3,212.1 | ||||||||
|
|
|
|
|
|
|
|||||||
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
(7,561.5 | ) | (3,090.4 | ) | (110.7 | ) | ||||||
|
|
|
|
|
|
|
|||||||
|
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
12,214.1 | 87,811.5 | 3,146.2 | |||||||||
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
455,399.3 | 660,170.6 | 23,653.6 | |||||||||
|
|
|
|
|
|
|
|||||||
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 467,613.4 | $ | 747,982.1 | $ | 26,799.8 | ||||||
|
|
|
|
|
|
|
|||||||
|
The accompanying notes are an integral part of the condensed consolidated financial statements.
|
|
(Concluded)
|
|
1.
|
GENERAL
|
|
2.
|
THE AUTHORIZATION OF FINANCIAL STATEMENTS
|
|
3.
|
U.S. DOLLAR AMOUNTS
|
|
4.
|
APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS), INTERNATIONAL ACCOUNTING STANDARDS (IAS), IFRIC INTERPRETATIONS (IFRIC), AND SIC INTERPRETATIONS (SIC) ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) (collectively, “IFRSs”).
|
| a. |
Amendments to IFRSs and the new interpretation that are mandatorily effective for the current year
|
|
New, Revised or Amended Standards and Interpretations
|
Effective Date Issued
by IASB |
|
|
Amendments to IFRS 9, IAS 39, IFRS 7 and IFRS 16 “Interest Rate Benchmark Reform - Phase 2”
|
January 1, 2021 (Note 1) | |
|
Amendment to IFRS 16
“Covid-19-Related
|
April 1, 2021 (Note 2) |
| Note 1: |
The Company shall apply these amendments retrospectively for annual reporting periods beginning on or after January 1, 2021.
|
| Note 2: |
The Company shall apply these amendments for annual reporting periods beginning on or after April 1, 2021. The Company has early adopted the amendments on January 1, 2021.
|
| b. |
New and revised standards, amendments and interpretations in issue but not yet
effective
|
|
New, Revised or Amended Standards and Interpretations
|
Effective Date Issued
by IASB |
|
|
Annual Improvements to IFRS Standards 2018 - 2020 Cycle
|
January 1, 2022 | |
|
Amendments to IFRS 3 “Reference to the Conceptual Framework”
|
January 1, 2022 | |
|
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”
|
To be determined by IASB | |
|
Amendments to IAS 1 “Classification of Liabilities as Current or
Non-current”
|
January 1, 2023 | |
|
Amendments to IAS 1 “Disclosure of Accounting Policies”
|
January 1, 2023 | |
|
Amendments to IAS 8 “Definition of Accounting Estimates”
|
January 1, 2023 | |
|
Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”
|
January 1, 2023 | |
|
Amendments to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use”
|
January 1, 2022 | |
|
Amendments to IAS 37 “Onerous Contracts–Cost of Fulfilling a Contract”
|
January 1, 2022 |
|
5.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
Establishment
|
Percentage of
Ownership |
|||||||||||
|
Name of Investor
|
Name of Investee
|
Main Businesses and Products
|
and Operating
Location |
December 31,
2020
|
June 30,
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% | — | |||||||
|
VisEra Technologies Company Ltd. (VisEra Tech)
|
Research, design, development, manufacturing, sales, packaging and test of color filter
|
Hsin-Chu, Taiwan
|
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% | a), d) | |||||||
|
VentureTech
.
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), e) | |||||||
|
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 condensed consolidated financial statements are neither reviewed nor audited by the Company’s independent auditors.
|
| Note b: |
TSMC
3DIC
is established in
March
2021
.
|
| Note c: |
To facilitate VisEra’s IPO in Taiwan, 39.5 million common shares of VisEra at a price of NT$240 were sold by TSMC and an increase of NT$8,406.3 million in capital surplus was recognized.
TSMC’s
shareholding in
VisEra
decreased from
87
% to
73
%. This disposal was accounted for as an equity transaction since the transaction did not change TSMC’s control over
VisEra
.
|
| Note d: |
Under the terms of the development agreement entered into between TSMC Arizona and the City of Phoenix, the City of Phoenix commits approximately US$205 million toward various public infrastructure projects
in
the area of the proposed manufacturing facility, conditioned on TSMC Arizona’s achieving a minimum project scale with defined spending and
job-creation
thresholds.
|
| Note e: |
Emerging fund is established in January
2021
|
|
6.
|
CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY
|
|
7.
|
CASH AND CASH EQUIVALENTS
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Cash and deposits in banks
|
$ | 653,580.6 | $ | 745,313.2 | ||||
|
Government bonds
|
3,716.1 | 2,668.9 | ||||||
|
Repurchase agreements
|
1,750.4 | — | ||||||
|
Commercial paper
|
1,123.5 | — | ||||||
|
|
|
|
|
|||||
| $ | 660,170.6 | $ | 747,982.1 | |||||
|
|
|
|
|
|||||
|
8.
|
FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Financial assets
|
||||||||
|
Mandatorily measured at FVTPL
|
||||||||
|
Forward exchange contracts
|
$ | 2,259.4 | $ | 58.3 | ||||
|
|
|
|
|
|||||
|
Financial liabilities
|
||||||||
|
Held for trading
|
||||||||
|
Forward exchange contracts
|
$ | 94.1 | $ | 1,828.3 | ||||
|
|
|
|
|
|||||
|
Maturity Date
|
Contract Amount
(In Millions) |
|||||
|
December 31, 2020
|
||||||
|
Sell NT$
|
January 2021 to March 2021 | NT$144,698.0 | ||||
|
Sell US$
|
January 2021 to March 2021 | US$1,176.9 | ||||
|
June 30, 2021
|
||||||
|
Sell NT$
|
July 2021 to September 2021 | NT$153,952.4 | ||||
|
Sell US$
|
July 2021 to September 2021 | US$1,738.7 | ||||
|
9.
|
FINANCIAL ASSETS AT FAIR VALUE THROUGH
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Investments in debt instruments at FVTOCI
|
||||||||
|
Corporate bonds
|
$ | 56,593.6 | $ | 58,907.9 | ||||
|
Agency bonds/Agency mortgage-backed securities
|
43,977.1 | 32,188.8 | ||||||
|
Government bonds
|
13,459.5 | 24,121.9 | ||||||
|
Asset-backed securities
|
8,368.3 | 7,523.4 | ||||||
|
|
|
|
|
|||||
| 122,398.5 | 122,742.0 | |||||||
|
|
|
|
|
|||||
|
Investments in equity instruments at FVTOCI
|
||||||||
|
Non-publicly
traded equity investments
|
4,514.9 | 5,390.0 | ||||||
|
Publicly traded stocks
|
50.0 | 52.5 | ||||||
|
|
|
|
|
|||||
| 4,564.9 | 5,442.5 | |||||||
|
|
|
|
|
|||||
| $ | 126,963.4 | $ | 128,184.5 | |||||
|
|
|
|
|
|||||
|
Current
|
$ | 122,448.5 | $ | 122,794.5 | ||||
|
Noncurrent
|
4,514.9 | 5,390.0 | ||||||
|
|
|
|
|
|||||
| $ | 126,963.4 | $ | 128,184.5 | |||||
|
|
|
|
|
|||||
|
10.
|
FINANCIAL ASSETS AT AMORTIZED COST
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Corporate bonds
|
$ | 10,977.3 | $ | 4,338.8 | ||||
|
Less: Allowance for impairment loss
|
(7.1 | ) | (2.2 | ) | ||||
|
|
|
|
|
|||||
| $ | 10,970.2 | $ | 4,336.6 | |||||
|
|
|
|
|
|||||
|
Current
|
$ | 6,598.0 | $ | — | ||||
|
Noncurrent
|
4,372.2 | 4,336.6 | ||||||
|
|
|
|
|
|||||
| $ | 10,970.2 | $ | 4336.6 | |||||
|
|
|
|
|
|||||
|
11.
|
HEDGING FINANCIAL INSTRUMENTS
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Financial assets- current
|
||||||||
|
Fair value hedges
|
||||||||
|
Interest rate futures contracts
|
$ | 0.1 | $ | 0.3 | ||||
|
|
|
|
|
|||||
|
Financial liabilities- current
|
||||||||
|
Fair value hedges
|
||||||||
|
Interest rate futures contracts
|
$ | 1.2 | $ | 10.2 | ||||
|
|
|
|
|
|||||
|
Hedging Instruments
|
Contract Amount
(US$ in Millions)
|
Maturity
|
||
|
Interest rate futures contracts - US Treasury futures
|
US$88.7 | March 2021 | ||
|
Hedged Items
|
Asset Carrying Amount
|
Accumulated
Amount of Fair Value
Hedge Adjustments |
||
|
NT$
|
NT$
|
|||
|
(In Millions)
|
(In Millions)
|
|||
|
Financial assets at FVTOCI
|
$ 6,198.7 | $ 1.1 | ||
|
Hedging Instruments
|
Contract Amount
(US$ in Millions)
|
Maturity
|
||
|
Interest rate futures contracts - US Treasury futures
|
US$74.2 | September 2021 | ||
|
Hedged Items
|
Asset Carrying Amount
|
Accumulated
Amount of Fair Value
Hedge Adjustments |
||
|
NT$
|
NT$
|
|||
|
(In Millions)
|
(In Millions)
|
|||
|
Financial assets at FVTOCI
|
$ 5,708.0 | $ 9.9 | ||
|
Hedging Instruments/Hedged Items
|
Increase
(Decrease) in Value Used for
Calculating Hedge Ineffectiveness |
|||||||
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Hedging Instruments
|
||||||||
|
Interest rate futures contracts - US Treasury futures
|
$ | (365.4 | ) | $ | 135.0 | |||
|
Hedged Items
|
||||||||
|
Financial assets at FVTOCI
|
365.4 | (135.0 | ) | |||||
|
|
|
|
|
|||||
| $ | — | $ | — | |||||
|
|
|
|
|
|||||
|
Hedging Instruments/Hedged Items
|
Increase
(Decrease) in Value Used for
Calculating Hedge
Ineffectiveness
|
|||||||
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Hedging Instruments
|
||||||||
|
Forward exchange contracts
|
$ | (42.8 | ) | $ | (41.4 | ) | ||
|
|
|
|
|
|||||
|
Hedged Items
|
||||||||
|
Forecast transaction (capital expenditures)
|
$ | 42.8 | $ | 41.4 | ||||
|
|
|
|
|
|||||
|
12.
|
NOTES AND ACCOUNTS RECEIVABLE, NET
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
At amortized cost
|
||||||||
|
Notes and accounts receivable
|
$ | 142,771.6 | $ | 174,586.8 | ||||
|
Less: Loss allowance
|
(246.6 | ) | (291.1 | ) | ||||
|
|
|
|
|
|||||
| 142,525.0 | 174,295.7 | |||||||
|
At FVTOCI
|
2,955.3 | 3,179.8 | ||||||
|
|
|
|
|
|||||
| $ | 145,480.3 | $ | 177,475.5 | |||||
|
|
|
|
|
|||||
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Not past due
|
$ | 140,933.6 | $ | 169,954.9 | ||||
|
Past due
|
||||||||
|
Past due within 30 days
|
4,784.4 | 7,811.4 | ||||||
|
Past due
31-60
days
|
8.7 | 0.2 | ||||||
|
Past due
61-120
days
|
0.1 | 0.1 | ||||||
|
Past due over 121 days
|
0.1 | — | ||||||
|
Less: Loss allowance
|
(246.6 | ) | (291.1 | ) | ||||
|
|
|
|
|
|||||
| $ | 145,480.3 | $ | 177,475.5 | |||||
|
|
|
|
|
|||||
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Balance, beginning of period
|
$ | 325.3 | $ | 246.6 | ||||
|
Provision
|
15.2 | 44.5 | ||||||
|
Effect of exchange rate changes
|
(0.3 | ) | — | |||||
|
|
|
|
|
|||||
|
Balance, end of period
|
$ | 340.2 | $ | 291.1 | ||||
|
|
|
|
|
|||||
|
13.
|
INVENTORIES
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Finished goods
|
$ | 21,705.6 | $ | 21,358.6 | ||||
|
Work in process
|
91,672.9 | 126,550.9 | ||||||
|
Raw materials
|
14,716.0 | 12,991.5 | ||||||
|
Supplies and spare parts
|
9,258.9 | 9,537.7 | ||||||
|
|
|
|
|
|||||
| $ | 137,353.4 | $ | 170,438.7 | |||||
|
|
|
|
|
|||||
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Inventory losses (reversal of write-down of inventories)
|
$ | 273.7 | $ | (946.0 | ) | |||
|
|
|
|
|
|||||
|
14.
|
INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
|
|
|
|
|
|
Place of
Incorporation and
Operation |
|
Carrying Amount
|
|
|
% of Ownership and Voting Rights
Held by the Company |
|
||||||||||||||
|
Name of Associate
|
|
Principal Activities
|
|
December 31,
2020
|
|
|
June 30,
2021
|
|
|
June 30,
2020
|
|
|
December 31,
2020
|
|
|
June 30,
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
|
|
|
$
|
8,634.4
|
|
|
|
28%
|
|
|
|
28%
|
|
|
|
28%
|
|
|
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)
|
|
Manufacturing and sales of integrated circuits and other semiconductor devices
|
|
Singapore
|
|
|
5,900.2
|
|
|
|
6,409.2
|
|
|
|
39%
|
|
|
|
39%
|
|
|
|
39%
|
|
|
Xintec Inc. (Xintec)
|
|
Wafer level chip size packaging and wafer level post passivation interconnection service
|
|
Taoyuan, Taiwan
|
|
|
2,522.3
|
|
|
|
2,849.6
|
|
|
|
41%
|
|
|
|
41%
|
|
|
|
41%
|
|
|
Global Unichip Corporation (GUC)
|
|
Researching, developing, manufacturing, testing and marketing of integrated circuits
|
|
Hsinchu, Taiwan
|
|
|
1,315.4
|
|
|
|
1,291.6
|
|
|
|
35%
|
|
|
|
35%
|
|
|
|
35%
|
|
|
Mutual-Pak
Technology Co., Ltd.
(Mutual-Pak)
|
|
Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID
|
|
New Taipei, Taiwan
|
|
|
28.2
|
|
|
|
25.7
|
|
|
|
28%
|
|
|
|
28%
|
|
|
|
28%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
$
|
18,730.2
|
|
|
$
|
19,210.5
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|||||||
|
|
|
December 31,
2020
|
|
|
June 30,
2021
|
|
||
|
|
|
NT$
|
|
|
NT$
|
|
||
|
Name of Associate
|
|
(In Millions)
|
|
|
(In Millions)
|
|
||
|
VIS
|
$ | 53,849.9 | $ | 54,778.4 | ||||
|
|
|
|
|
|||||
|
GUC
|
$ | 15,827.2 | $ | 19,282.1 | ||||
|
|
|
|
|
|||||
|
Xintec
|
$ | 20,420.2 | $ | 18,806.6 | ||||
|
|
|
|
|
|||||
|
15.
|
PROPERTY, PLANT AND EQUIPMENT
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Assets used by the Company
|
$ | 1,554,585.9 | $ | 1,722,112.1 | ||||
|
Assets subject to operating leases
|
1,003.2 | 567.0 | ||||||
|
|
|
|
|
|||||
| $ | 1,555,589.1 | $ | 1,722,679.1 | |||||
|
|
|
|
|
|||||
|
a.
|
|
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, 2020
|
$ | 3,991.8 | $ | 438,075.0 | $ | 2,886,623.0 | $ | 54,611.4 | $ | 528,295.1 | $ | 3,911,596.3 | ||||||||||||
|
Additions (deductions)
|
— | 66,843.8 | 575,722.1 | 9,268.1 | (374,596.1 | ) | 277,237.9 | |||||||||||||||||
|
Disposals or retirements
|
— | (19.7 | ) | (3,060.2 | ) | (114.2 | ) | — | (3,194.1 | ) | ||||||||||||||
|
Transfers from assets subject to operating leases
|
— | 22.3 | — | — | — | 22.3 | ||||||||||||||||||
|
Effect of exchange rate changes
|
(14.6 | ) | (1,126.9 | ) | (3,760.4 | ) | (125.4 | ) | (140.1 | ) | (5,167.4 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Balance at June 30, 2020
|
$ | 3,977.2 | $ | 503,794.5 | $ | 3,455,524.5 | $ | 63,639.9 | $ | 153,558.9 | $ | 4,180,495.0 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
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
|
0.8 | 13,167.7 | 118,235.1 | 3,172.2 | — | 134,575.8 | ||||||||||||||||||
|
Disposals or retirements
|
— | (15.8 | ) | (2,892.0 | ) | (113.2 | ) | — | (3,021.0 | ) | ||||||||||||||
|
Transfers from assets subject to operating leases
|
— | 8.2 | — | — | — | 8.2 | ||||||||||||||||||
|
Effect of exchange rate changes
|
(10.1 | ) | (612.9 | ) | (3,175.4 | ) | (74.9 | ) | — | (3,873.3 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Balance at June 30, 2020
|
$ | 529.4 | $ | 255,606.5 | $ | 2,390,433.7 | $ | 40,402.5 | $ | — | $ | 2,686,972.1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Carrying amounts at January 1, 2020
|
$ | 3,453.1 | $ | 195,015.7 | $ | 608,357.0 | $ | 17,193.0 | $ | 528,295.1 | $ | 1,352,313.9 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Carrying amounts at June 30, 2020
|
$ | 3,447.8 | $ | 248,188.0 | $ | 1,065,090.8 | $ | 23,237.4 | $ | 153,558.9 | $ | 1,493,522.9 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
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 | 34,524.3 | 217,478.9 | 3,799.5 | 108,588.6 | 366,978.5 | ||||||||||||||||||
|
Disposals or retirements
|
— | (19.9 | ) | (6,882.0 | ) | (124.8 | ) | — | (7,026.7 | ) | ||||||||||||||
|
Transfers from assets subject to operating leases
|
— | 35.5 | 656.2 | — | — | 691.7 | ||||||||||||||||||
|
Transfers to assets subject to operating leases
|
— | — | (244.6 | ) | — | — | (244.6 | ) | ||||||||||||||||
|
Effect of exchange rate changes
|
(16.1 | ) | 86.0 | 672.2 | (7.4 | ) | (81.6 | ) | 653.1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Balance at June 30, 2021
|
$ | 6,513.7 | $ | 557,073.3 | $ | 3,818,686.4 | $ | 72,530.0 | $ | 332,472.4 | $ | 4,787,275.8 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
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
|
0.7 | 16,942.3 | 178,535.5 | 3,863.4 | — | 199,341.9 | ||||||||||||||||||
|
Disposals or retirements
|
— | (17.1 | ) | (6,695.4 | ) | (124.0 | ) | — | (6,836.5 | ) | ||||||||||||||
|
Transfers from assets subject to operating leases
|
— | 15.6 | 197.7 | — | — | 213.3 | ||||||||||||||||||
|
Transfers to assets subject to operating leases
|
— | — | (68.3 | ) | — | — | (68.3 | ) | ||||||||||||||||
|
Impairment
|
— | — | 274.4 | — | — | 274.4 | ||||||||||||||||||
|
Effect of exchange rate changes
|
(3.8 | ) | 21.6 | 590.3 | (7.1 | ) | — | 601.0 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Balance at June 30, 2021
|
$ | 503.0 | $ | 288,761.9 | $ | 2,728,364.2 | $ | 47,534.6 | $ | — | $ | 3,065,163.7 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Carrying amounts at January 1, 2021
|
$ | 3,436.5 | $ | 250,647.9 | $ | 1,051,475.7 | $ | 25,060.4 | $ | 223,965.4 | $ | 1,554,585.9 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Carrying amounts at June 30, 2021
|
$ | 6,010.7 | $ | 268,311.4 | $ | 1,090,322.2 | $ | 24,995.4 | $ | 332,472.4 | $ | 1,722,112.1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
b.
|
Assets subject to operating leases
|
|
Buildings
|
Machinery and
Equipment |
Total
|
||||||||||
|
NT$
|
NT$
|
NT$
|
||||||||||
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
||||||||||
|
Cost
|
||||||||||||
|
Balance at January 1, 2020
|
$ | 562.6 | $ | — | $ | 562.6 | ||||||
|
Transfers to assets used by the Company
|
(22.3 | ) | — | (22.3 | ) | |||||||
|
|
|
|
|
|
|
|||||||
|
Balance at June 30, 2020
|
$ | 540.3 | $ | — | $ | 540.3 | ||||||
|
|
|
|
|
|
|
|||||||
|
Accumulated depreciation
|
||||||||||||
|
Balance at January 1, 2020
|
$ | 499.1 | $ | — | $ | 499.1 | ||||||
|
Additions
|
11.4 | — | 11.4 | |||||||||
|
Transfers to assets used by the Company
|
(8.2 | ) | — | (8.2 | ) | |||||||
|
|
|
|
|
|
|
|||||||
|
Balance at June 30, 2020
|
$ | 502.3 | $ | — | $ | 502.3 | ||||||
|
|
|
|
|
|
|
|||||||
|
Carrying amounts at January 1, 2020
|
$ | 63.5 | $ | — | $ | 63.5 | ||||||
|
|
|
|
|
|
|
|||||||
|
Carrying amounts at June 30, 2020
|
$ | 38.0 | $ | — | $ | 38.0 | ||||||
|
|
|
|
|
|
|
|||||||
|
Cost
|
||||||||||||
|
Balance at January 1, 2021
|
$ | 227.6 | $ | 1,199.0 | $ | 1,426.6 | ||||||
|
Transfers to assets used by the Company
|
(35.5 | ) | (656.2 | ) | (691.7 | ) | ||||||
|
Transfers from assets used by the Company
|
— | 244.6 | 244.6 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Balance at June 30, 2021
|
$ | 192.1 | $ | 787.4 | $ | 979.5 | ||||||
|
|
|
|
|
|
|
|||||||
|
Accumulated depreciation
|
||||||||||||
|
Balance at January 1, 2021
|
$ | 201.4 | $ | 222.0 | $ | 423.4 | ||||||
|
Additions
|
0.6 | 133.5 | 134.1 | |||||||||
|
Transfers to assets used by the Company
|
(15.6 | ) | (197.7 | ) | (213.3 | ) | ||||||
|
Transfers from assets used by the Company
|
— | 68.3 | 68.3 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Balance at June 30, 2021
|
$ | 186.4 | $ | 226.1 | $ | 412.5 | ||||||
|
|
|
|
|
|
|
|||||||
|
Carrying amounts at January 1, 2021
|
$ | 26.2 | $ | 977.0 | $ | 1,003.2 | ||||||
|
|
|
|
|
|
|
|||||||
|
Carrying amounts at June 30, 2021
|
$ | 5.7 | $ | 561.3 | $ | 567.0 | ||||||
|
|
|
|
|
|
|
|||||||
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Year 1
|
$ | 149.1 | $ | 22.0 | ||||
|
Year 2
|
17.0 | 8.5 | ||||||
|
|
|
|
|
|||||
| $ | 166.1 | $ | 30.5 | |||||
|
|
|
|
|
|||||
|
16.
|
LEASE ARRANGEMENTS
|
| a. |
Right-of-use
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Carrying amounts
|
||||||||
|
Land
|
$ | 25,141.9 | $ | 30,256.9 | ||||
|
Buildings
|
2,544.8 | 2,323.8 | ||||||
|
Machinery and equipment
|
— | 3.9 | ||||||
|
Office equipment
|
41.8 | 34.7 | ||||||
|
|
|
|
|
|||||
| $ | 27,728.5 | $ | 32,619.3 | |||||
|
|
|
|
|
|||||
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Additions to
right-of-use
|
$ | 5,511.0 | $ | 6,220.1 | ||||
|
|
|
|
|
|||||
|
Depreciation of
right-of-use
|
||||||||
|
Land
|
$ | 605.8 | $ | 899.4 | ||||
|
Buildings
|
278.2 | 310.6 | ||||||
|
Machinery and equipment
|
581.9 | 0.2 | ||||||
|
Office equipment
|
12.2 | 10.9 | ||||||
|
|
|
|
|
|||||
| $ | 1,478.1 | $ | 1,221.1 | |||||
|
|
|
|
|
|||||
|
Income from subleasing
right-of-use
|
$ | 37.9 | $ | 40.7 | ||||
|
|
|
|
|
|||||
| b. |
Lease liabilities
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Carrying amounts
|
||||||||
|
Current portion (classified under accrued expenses and other current liabilities)
|
$ | 1,828.0 | $ | 1,861.3 | ||||
|
Noncurrent portion
|
20,560.6 | 21,030.4 | ||||||
|
|
|
|
|
|||||
| $ | 22,388.6 | $ | 22,891.7 | |||||
|
|
|
|
|
|||||
|
December 31,
2020
|
June 30,
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% |
0.28%-3.88%
|
||
| c. |
Material terms of
right-of-use
|
| d. |
Subleases
|
|
|
|
|||||||
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Year 1
|
$
|
144.1
|
|
$
|
65.0
|
|
||
|
|
|
|
|
|||||
| e. |
Other lease information
|
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Expenses relating to short-term leases
|
$
|
1,754.8
|
|
$
|
2,588.9
|
|
||
|
|
|
|
|
|||||
|
Expenses relating to variable lease payments not included in the measurement of lease liabilities
|
$
|
97.2
|
|
$
|
101.0
|
|
||
|
|
|
|
|
|||||
|
Total cash outflow for leases
|
$
|
3,568.8
|
|
$
|
3,660.1
|
|
||
|
|
|
|
|
|||||
|
17.
|
INTANGIBLE
|
|
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, 2020
|
$ | 5,693.4 | $ | 15,855.0 | $ | 33,024.0 | $ | 8,302.9 | $ | 62,875.3 | ||||||||||
|
Additions
|
— | 6,035.2 | 1,292.0 | 2,863.1 | 10,190.3 | |||||||||||||||
|
Disposals or retirements
|
— | — | (48.8 | ) | — | (48.8 | ) | |||||||||||||
|
Effect of exchange rate changes
|
(75.9 | ) | (3.4 | ) | (17.3 | ) | (1.3 | ) | (97.9 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Balance at June 30, 2020
|
$ | 5,617.5 | $ | 21,886.8 | $ | 34,249.9 | $ | 11,164.7 | $ | 72,918.9 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Accumulated amortization and impairment
|
||||||||||||||||||||
|
Balance at January 1, 2020
|
$ | — | $ | 9,823.8 | $ | 26,502.1 | $ | 5,896.4 | $ | 42,222.3 | ||||||||||
|
Additions
|
— | 1,021.9 | 1,856.2 | 486.3 | 3,364.4 | |||||||||||||||
|
Disposals or retirements
|
— | — | (48.8 | ) | — | (48.8 | ) | |||||||||||||
|
Effect of exchange rate changes
|
— | (3.3 | ) | (10.3 | ) | (1.0 | ) | (14.6 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Balance at June 30, 2020
|
$ | — | $ | 10,842.4 | $ | 28,299.2 | $ | 6,381.7 | $ | 45,523.3 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Carrying amounts at January 1, 2020
|
$ | 5,693.4 | $ | 6,031.2 | $ | 6,521.9 | $ | 2,406.5 | $ | 20,653.0 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Carrying amounts at June 30, 2020
|
$ | 5,617.5 | $ | 11,044.4 | $ | 5,950.7 | $ | 4,783.0 | $ | 27,395.6 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Cost
|
||||||||||||||||||||
|
Balance at January 1, 2021
|
$ | 5,436.6 | $ | 22,161.7 | $ | 36,239.0 | $ | 11,277.6 | $ | 75,114.9 | ||||||||||
|
Additions
|
— | 1,005.0 | 3,708.2 | 90.7 | 4,803.9 | |||||||||||||||
|
Disposals or retirements
|
— | — | (13.8 | ) | — | (13.8 | ) | |||||||||||||
|
Effect of exchange rate changes
|
(28.2 | ) | 1.1 | 2.1 | 0.2 | (24.8 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Balance at June 30, 2021
|
$ | 5,408.4 | $ | 23,167.8 | $ | 39,935.5 | $ | 11,368.5 | $ | 79,880.2 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Accumulated amortization and impairment
|
||||||||||||||||||||
|
Balance at January 1, 2021
|
$ | — | $ | 12,226.2 | $ | 30,111.7 | $ | 7,008.9 | $ | 49,346.8 | ||||||||||
|
Additions
|
— | 1,334.1 | 2,068.5 | 605.8 | 4,008.4 | |||||||||||||||
|
Disposals or retirements
|
— | — | (12.6 | ) | — | (12.6 | ) | |||||||||||||
|
Effect of exchange rate changes
|
— | 1.1 | 1.3 | 0.1 | 2.5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Balance at June 30, 2021
|
$ | — | $ | 13,561.4 | $ | 32,168.9 | $ | 7,614.8 | $ | 53,345.1 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Carrying amounts at January 1, 2021
|
$ | 5,436.6 | $ | 9,935.5 | $ | 6,127.3 | $ | 4,268.7 | $ | 25,768.1 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Carrying amounts at June 30, 2021
|
$ | 5,408.4 | $ | 9,606.4 | $ | 7,766.6 | $ | 3,753.7 | $ | 26,535.1 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
18.
|
SHORT-TERM LOANS
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Unsecured loans
|
||||||||
|
Amount
|
$ | 88,559.0 | $ | 139,380.9 | ||||
|
|
|
|
|
|||||
|
Loan content
|
||||||||
|
US$ (in millions)
|
$ | 200.0 | $ | — | ||||
|
EUR (in millions)
|
2,398.0 | 4,195.8 | ||||||
|
Annual interest rate
|
(0.54)%-0.33
|
% | (0.25)%-0.01 | % | ||||
|
Maturity date
|
Due by February
2021 |
|
Due by September
2021 |
|
||||
|
19.
|
BONDS PAYABLE
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Domestic unsecured bonds
|
$ | 173,197.0 | $ | 230,389.0 | ||||
|
Overseas unsecured bonds
|
84,291.0 | 181,278.5 | ||||||
|
Less: Discounts on bonds payable
|
(782.9 | ) | (1,202.6 | ) | ||||
|
Less: Current portion
|
(2,600.0 | ) | — | |||||
|
|
|
|
|
|||||
| $ | 254,105.1 | $ | 410,464.9 | |||||
|
|
|
|
|
|||||
|
Issuance
|
Tranche
|
Issuance Period
|
Total Amount
NT$
(In Millions)
|
Coupon
Rate |
Repayment and
Interest Payment |
|||||||||||
|
NT$ unsecured bonds
|
||||||||||||||||
|
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 |
|||||||||||
|
NT$ unsecured bonds
|
||||||||||||||||
|
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
|
|||||||||||
|
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
|
|
20.
|
LONG-TERM BANK
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
(In Millions)
|
NT$
(In Millions)
|
|||||||
|
Unsecured loans
|
$ | 2,000.0 | $ | 3,210.0 | ||||
|
Less: Discounts on government grants
|
(32.4 | ) | (38.7 | ) | ||||
|
|
|
|
|
|||||
| $ | 1,967.6 | $ | 3,171.3 | |||||
|
|
|
|
|
|||||
|
Loan content
|
||||||||
|
Annual interest rate
|
0.4% |
0.4%-0.6%
|
||||||
|
Maturity date
|
Due by
2025 |
|
Due by March
2026 |
|
||||
|
21.
|
EQUITY
|
|
a.
|
Capital stock
|
|
June 30,
2020 |
December 31,
2020 |
June 30,
2021 |
||||||||||
|
NT$
(In Millions)
|
NT$
(In Millions)
|
NT$
(In Millions)
|
||||||||||
|
Authorized shares
|
28,050.0 | 28,050.0 | 28,050.0 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Authorized capital
|
$ | 280,500.0 | $ | 280,500.0 | $ | 280,500.0 | ||||||
|
|
|
|
|
|
|
|||||||
|
Issued and paid shares
|
25,930.3 | 25,930.3 | 25,930.3 | |||||||||
|
|
|
|
|
|
|
|||||||
|
Issued capital
|
$ | 259,303.8 | $ | 259,303.8 | $ | 259,303.8 | ||||||
|
|
|
|
|
|
|
|||||||
| b. |
Capital surplus
|
|
June 30,
2020 |
December 31,
2020 |
June 30,
2021 |
||||||||||
|
NT$
(In Millions)
|
NT$
(In Millions)
|
NT$
(In Millions)
|
||||||||||
|
Additional
paid-in
capital
|
$ | 24,185.0 | $ | 24,185.0 | $ | 24,185.0 | ||||||
|
From merger
|
22,804.5 | 22,804.5 | 22,804.5 | |||||||||
|
From convertible bonds
|
8,892.9 | 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 | 121.8 | 121.8 | |||||||||
|
From share of changes in equities of associates
|
302.5 | 302.5 | 302.8 | |||||||||
|
Donations
|
33.3 | 40.5 | 40.5 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 56,340.0 | $ | 56,347.2 | $ | 64,753.8 | |||||||
|
|
|
|
|
|
|
|||||||
|
|
c.
|
Retained earnings and dividend policy
|
|
First Quarter
of 2019
|
Second Quarter
of 2019
|
Third Quarter
of 2019
|
Fourth Quarter
of 2019
|
|||||||||||||
|
NT$
(In Millions)
|
NT$
(In Millions)
|
NT$
(In Millions)
|
NT$
(In Millions)
|
|||||||||||||
|
Resolution date of TSMC’s Board of Directors in its meeting
|
|
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 2021 |
Second Quarter
of 2021 |
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Resolution date of TSMC’s Board of Directors in its meeting
|
|
June 9,
2021 |
|
|
August 10,
2021 |
|
||
|
Special capital reserve
|
$ | (6,287.0 | ) | $ | 10,201.2 | |||
|
|
|
|
|
|||||
|
Cash dividends to shareholders
|
$ | 71,308.5 | $ | 71,308.5 | ||||
|
|
|
|
|
|||||
|
Cash dividends per share (NT$)
|
$ | 2.75 | $ | 2.75 | ||||
|
|
|
|
|
|||||
| d. |
Others
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||||||
|
Foreign
Currency Translation Reserve |
Unrealized
Gain (Loss) on Financial Assets at FVTOCI |
Gain (Loss) on
Hedging Instruments |
Unearned
Stock-Based Employee Compensation |
Total
|
||||||||||||||||
|
NT$
(In Millions)
|
NT$
(In Millions)
|
NT$
(In Millions)
|
NT$
(In Millions)
|
NT$
(In Millions)
|
||||||||||||||||
|
Balance, beginning of period
|
$ | (26,871.4 | ) | $ | (692.9 | ) | $ | (3.8 | ) | $ | (0.2 | ) | $ | (27,568.3 | ) | |||||
|
Exchange differences arising on translation of foreign operations
|
(11,690.1 | ) | — | — | — | (11,690.1 | ) | |||||||||||||
|
Unrealized gain (loss) on financial assets at FVTOCI
|
||||||||||||||||||||
|
Equity instruments
|
— | (22.4 | ) | — | — | (22.4 | ) | |||||||||||||
|
Debt instruments
|
— | 3,625.5 | — | — | 3,625.5 | |||||||||||||||
|
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal
|
— | (926.9 | ) | — | — | (926.9 | ) | |||||||||||||
|
Loss allowance adjustments from debt instruments
|
— | (0.2 | ) | — | — | (0.2 | ) | |||||||||||||
|
Gain (loss) arising on changes in the fair value of hedging instruments
|
— | — | (42.8 | ) | — | (42.8 | ) | |||||||||||||
|
Transferred to initial carrying amount of hedged items
|
— | — | 46.6 | — | 46.6 | |||||||||||||||
|
Share of other comprehensive income (loss) of associates
|
(176.3 | ) | (3.5 | ) | — | — | (179.8 | ) | ||||||||||||
|
Share of unearned stock-based employee compensation of associates
|
— | — | — | 0.2 | 0.2 | |||||||||||||||
|
Income tax effect
|
— | 0.4 | — | — | 0.4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Balance, end of period
|
$ | (38,737.8 | ) | $ | 1,980.0 | $ | — | $ | — | $ | (36,757.8 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Six Months Ended June 30, 2021
|
||||||||||||||||||||
|
Foreign
Currency Translation Reserve |
Unrealized
Gain (Loss) on Financial Assets at FVTOCI |
Gain (Loss) on
Hedging Instruments |
Unearned
Stock-Based Employee Compensation |
Total
|
||||||||||||||||
|
NT$
(In Millions)
|
NT$
(In Millions)
|
NT$
(In Millions)
|
NT$
(In Millions)
|
NT$
(In Millions)
|
||||||||||||||||
|
Balance, beginning of period
|
$ | (57,001.6 | ) | $ | 2,321.8 | $ | — | $ | — | $ | (54,679.8 | ) | ||||||||
|
Exchange differences arising on translation of foreign operations
|
(3,095.3 | ) | — | — | — | (3,095.3 | ) | |||||||||||||
|
Unrealized gain (loss) on financial assets at FVTOCI
|
||||||||||||||||||||
|
Equity instruments
|
— | 817.4 | — | — | 817.4 | |||||||||||||||
|
Debt instruments
|
— | (1,622.5 | ) | — | — | (1,622.5 | ) | |||||||||||||
|
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal
|
— | 278.8 | — | — | 278.8 | |||||||||||||||
|
Six Months Ended June 30, 2021
|
||||||||||||||||||||
|
Foreign
Currency Translation Reserve |
Unrealized
Gain (Loss) on Financial Assets at FVTOCI |
Gain (Loss) on
Hedging Instruments |
Unearned
Stock-Based Employee Compensation |
Total
|
||||||||||||||||
|
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
||||||||||||||||
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
||||||||||||||||
|
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal
|
$ | — | $ | (169.3 | ) | $ | — | $ | — | $ | (169.3 | ) | ||||||||
|
Loss allowance adjustments from debt instruments
|
— | 1.6 | — | — | 1.6 | |||||||||||||||
|
Gain (loss) arising on changes in the fair value of hedging instruments
|
— | — | (41.4 | ) | — | (41.4 | ) | |||||||||||||
|
Transferred to initial carrying amount of hedged items
|
— | — | 41.4 | — | 41.4 | |||||||||||||||
|
Share of other comprehensive income (loss) of associates
|
(73.6 | ) | 4.5 | — | — | (69.1 | ) | |||||||||||||
|
Income tax effect
|
— | (55.8 | ) | — | — | (55.8 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Balance, end of period
|
$ | (60,170.5 | ) | $ | 1,576.5 | $ | — | $ | — | $ | (58,594.0 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| e. |
Employee restricted stock awards
|
|
22.
|
NET REVENUE
|
| a. |
Disaggregation of revenue from contracts with customers
|
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
Product
|
(In Millions)
|
(In Millions)
|
||||||
|
Wafer
|
$ | 546,955.8 | $ | 654,478.0 | ||||
|
Others
|
74,339.7 | 80,077.4 | ||||||
|
|
|
|
|
|||||
| $ | 621,295.5 | $ | 734,555.4 | |||||
|
|
|
|
|
|||||
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
Geography
|
(In Millions)
|
(In Millions)
|
||||||
|
Taiwan
|
$ | 57,932.9 | $ | 99,480.7 | ||||
|
United States
|
349,676.1 | 456,177.7 | ||||||
|
China
|
133,559.6 | 78,239.4 | ||||||
|
Europe, the Middle East and Africa
|
34,532.7 | 45,022.3 | ||||||
|
Japan
|
33,966.4 | 34,380.7 | ||||||
|
Others
|
11,627.8 | 21,254.6 | ||||||
|
|
|
|
|
|||||
| $ | 621,295.5 | $ | 734,555.4 | |||||
|
|
|
|
|
|||||
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
Platform
|
(In Millions)
|
(In Millions)
|
||||||
|
Smartphone
|
$ | 297,775.1 | $ | 320,952.7 | ||||
|
High Performance Computing
|
197,109.2 | 271,234.4 | ||||||
|
Internet of Things
|
51,861.6 | 59,514.5 | ||||||
|
Automotive
|
24,454.1 | 31,001.5 | ||||||
|
Digital Consumer Electronics
|
29,791.0 | 28,954.7 | ||||||
|
Others
|
20,304.5 | 22,897.6 | ||||||
| $ | 621,295.5 | $ | 734,555.4 | |||||
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
Resolution
|
(In Millions)
|
(In Millions)
|
||||||
|
5-nanometer
|
$ | — | $ | 106,803.0 | ||||
|
7-nanometer
|
195,936.6 | 212,348.6 | ||||||
|
10-nanometer
|
2,003.5 | 628.5 | ||||||
|
16-nanometer
|
100,128.3 | 90,649.7 | ||||||
|
20-nanometer
|
4,096.4 | 2,530.8 | ||||||
|
28-nanometer
|
76,479.1 | 74,183.0 | ||||||
|
40/45-nanometer
|
52,145.1 | 46,795.8 | ||||||
|
65-nanometer
|
31,561.0 | 31,958.4 | ||||||
|
90-nanometer
|
15,300.3 | 17,755.7 | ||||||
|
0.11/0.13 micron
|
14,597.9 | 18,005.1 | ||||||
|
0.15/0.18 micron
|
43,279.2 | 41,607.5 | ||||||
|
0.25 micron and above
|
11,428.4 | 11,211.9 | ||||||
|
|
|
|
|
|||||
|
Wafer revenue
|
$ | 546,955.8 | $ | 654,478.0 | ||||
|
|
|
|
|
|||||
| b. |
Contract balances
|
|
January 1,
2020
|
June 30,
2020
|
December 31,
2020
|
June 30,
2021
|
|||||||||||||
|
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
|||||||||||||
|
Contract liabilities (classified under accrued expenses and other current liabilities)
|
$ | 6,784.3 | $ | 9,652.6 | $ | 13,775.1 | $ | 28,707.7 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
23.
|
INTEREST INCOME
|
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Interest income
|
||||||||
|
Bank deposits
|
$ | 3,372.1 | $ | 1,339.5 | ||||
|
Financial assets at FVTPL
|
1.7 | — | ||||||
|
Financial assets at FVTOCI
|
1,704.9 | 1,175.5 | ||||||
|
Financial assets at amortized cost
|
388.7 | 374.6 | ||||||
|
|
|
|
|
|||||
| $ | 5,467.4 | $ | 2,889.6 | |||||
|
|
|
|
|
|||||
|
24.
|
FINANCE COSTS
|
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Interest expense
|
||||||||
|
Corporate bonds
|
$ | 388.7 | $ | 1,798.3 | ||||
|
Lease liabilities
|
128.4 | 96.9 | ||||||
|
Bank loans
|
414.2 | 11.1 | ||||||
|
Others
|
8.4 | 0.2 | ||||||
|
|
|
|
|
|||||
| $ | 939.7 | $ | 1,906.5 | |||||
|
|
|
|
|
|||||
|
25.
|
OTHER GAINS AND LOSSES, NET
|
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Gain on disposal of financial assets, net
|
||||||||
|
Investments in debt instruments at FVTOCI
|
$
|
926.9 |
$
|
169.3 | ||||
|
Gain (loss) on financial instruments at FVTPL, net
|
||||||||
|
Mandatorily measured at FVTPL
|
(1,507.8 | ) | (2,398.9 | ) | ||||
|
The reversal (accrual) of expected credit loss of financial assets
|
||||||||
|
Investments in debt instruments at FVTOCI
|
0.2 | (1.6 | ) | |||||
|
Financial assets at amortized cost
|
(0.4 | ) | 4.9 | |||||
|
Other gains, net
|
79.3 | 273.1 | ||||||
|
|
|
|
|
|||||
| $ | (501.8 | ) | $ | (1,953.2 | ) | |||
|
|
|
|
|
|||||
|
26.
|
INCOME TAX
|
| a. |
Income tax expense recognized in profit or loss
|
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Current income tax expense
|
||||||||
|
Current tax expense recognized in the current period
|
$ | 41,421.1 | $ | 49,846.5 | ||||
|
Income tax adjustments on prior years
|
(7,553.0 | ) | (12,748.5 | ) | ||||
|
Other income tax adjustments
|
(79.5 | ) | 69.9 | |||||
|
|
|
|
|
|||||
| 33,788.6 | 37,167.9 | |||||||
|
|
|
|
|
|||||
|
Deferred income tax benefit
|
||||||||
|
The origination and reversal of temporary differences
|
(2,580.5 | ) | (7,238.3 | ) | ||||
|
Investment tax credits
|
— | (2,632.6 | ) | |||||
|
|
|
|
|
|||||
| (2,580.5 | ) | (9,870.9 | ) | |||||
|
|
|
|
|
|||||
|
Income tax expense recognized in profit or loss
|
$ | 31,208.1 | $ | 27,297.0 | ||||
|
|
|
|
|
|||||
| b. |
Income tax expense recognized in other comprehensive income
|
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Deferred income tax benefit (expense)
|
||||||||
|
Related to unrealized gain/loss on investments in equity instruments at FVTOCI
|
$ | 0.4 | $ | (55.8 | ) | |||
|
|
|
|
|
|||||
| c. |
Income tax examination
|
|
27.
|
EARNINGS PER SHARE
|
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Basic EPS
|
$ | 9.15 | $ | 10.68 | ||||
|
|
|
|
|
|||||
|
Diluted EPS
|
$ | 9.15 | $ | 10.68 | ||||
|
|
|
|
|
|||||
|
Amounts
(Numerator)
NT$
(In Millions)
|
Number of
Shares (Denominator) (In Millions) |
EPS (NT$)
|
||||||||||
|
Six months ended June 30, 2020
|
||||||||||||
|
Basic/Diluted EPS
|
||||||||||||
|
Net income available to common shareholders of the parent
|
$ | 237,224.6 | 25,930.3 | $ | 9.15 | |||||||
|
|
|
|
|
|
|
|||||||
|
Six months ended June 30, 2021
|
||||||||||||
|
Basic/Diluted EPS
|
||||||||||||
|
Net income available to common shareholders of the parent
|
$ | 276,980.5 | 25,930.3 | $ | 10.68 | |||||||
|
|
|
|
|
|
|
|||||||
|
28.
|
ADDITIONAL INFORMATION OF EXPENSES BY NATURE
|
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
a. Depreciation of property, plant and equipment and
right-of-use
|
||||||||
|
Recognized in cost of revenue
|
$ | 123,444.4 | $ | 186,947.1 | ||||
|
Recognized in operating expenses
|
12,609.5 | 13,615.9 | ||||||
|
Recognized in other operating income and expenses
|
11.4 | 134.1 | ||||||
|
|
|
|
|
|||||
| $ | 136,065.3 | $ | 200,697.1 | |||||
|
|
|
|
|
|||||
|
b. Amortization of intangible assets
|
||||||||
|
Recognized in cost of revenue
|
$ | 2,175.0 | $ | 2,681.9 | ||||
|
Recognized in operating expenses
|
1,189.4 | 1,326.5 | ||||||
|
|
|
|
|
|||||
| $ | 3,364.4 | $ | 4,008.4 | |||||
|
|
|
|
|
|||||
|
c. Employee benefits expenses
|
||||||||
|
Post-employment benefits
|
||||||||
|
Defined contribution plans
|
$ | 1,339.3 | $ | 1,713.8 | ||||
|
Defined benefit plans
|
102.5 | 96.2 | ||||||
|
|
|
|
|
|||||
| 1,441.8 | 1,810.0 | |||||||
|
Other employee benefits
|
65,000.5 | 75,682.1 | ||||||
|
|
|
|
|
|||||
| $ | 66,442.3 | $ | 77,492.1 | |||||
|
|
|
|
|
|||||
|
Employee benefits expense summarized by function
|
||||||||
|
Recognized in cost of revenue
|
$ | 39,481.5 | $ | 46,320.2 | ||||
|
Recognized in operating expenses
|
26,960.8 | 31,171.9 | ||||||
|
|
|
|
|
|||||
| $ | 66,442.3 | $ | 77,492.1 | |||||
|
|
|
|
|
|||||
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Profit sharing bonus to employees
|
$ | 15,963.3 | $ | 16,358.8 | ||||
|
|
|
|
|
|||||
|
Years Ended December 31
|
||||||||
|
2019
|
2020
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Resolution Date of TSMC’s Board of Directors in its meeting
|
|
February 11,
2020
|
|
|
February 9,
2021
|
|
||
|
Profit sharing bonus to employees
|
$ | 23,165.7 | $ | 34,753.2 | ||||
|
|
|
|
|
|||||
|
Compensation to directors
|
$ | 360.4 | $ | 509.8 | ||||
|
|
|
|
|
|||||
|
29.
|
CASH FLOW INFORMATION
|
| a. |
Non-cash
transactions
|
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Additions of financial assets at FVTOCI
|
$ | 128,557.7 | $ | 148,920.0 | ||||
|
Conversion of convertible bonds into equity securities
|
(120.5 | ) | — | |||||
|
Changes in accrued expenses and other current liabilities
|
(5,074.6 | ) | 2,665.4 | |||||
|
|
|
|
|
|||||
|
Payments for acquisition of financial assets at FVTOCI
|
$ | 123,362.6 | $ | 151,585.4 | ||||
|
|
|
|
|
|||||
|
Disposal of financial assets at FVTOCI
|
$ | 127,700.7 | $ | 145,602.7 | ||||
|
Changes in other financial assets
|
(1,472.7 | ) | 2,990.8 | |||||
|
|
|
|
|
|||||
|
Proceeds from disposal of financial assets at FVTOCI
|
$ | 126,228.0 | $ | 148,593.5 | ||||
|
|
|
|
|
|||||
| b. |
Reconciliation of liabilities arising from financing activities
|
|
Non-cash
changes
|
||||||||||||||||||||||||
|
Balance as of
January 1, 2020 |
Financing
Cash Flow |
Foreign Exchange
Movement |
Leases
Modifications |
Other Changes
(Note)
|
Balance as of
June 30, 2020 |
|||||||||||||||||||
|
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||||||||
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
|||||||||||||||||||
|
Short-term loans
|
$ | 118,522.3 | $ | 52,578.6 | $ | (1,553.9 | ) | $ | — | $ | — | $ | 169,547.0 | |||||||||||
|
Short-term bills payable
|
— | 6,485.3 | — | — | 8.1 | 6,493.4 | ||||||||||||||||||
|
Bonds payable
|
56,900.0 | 38,337.9 | — | — | 1.8 | 95,239.7 | ||||||||||||||||||
|
Lease liabilities
|
17,316.9 | (1,573.9 | ) | (29.5 | ) | 5,307.8 | 128.4 | 21,149.7 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Total
|
$ | 192,739.2 | $ | 95,827.9 | $ | (1,583.4 | ) | $ | 5,307.8 | $ | 138.3 | $ | 292,429.8 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Non-cash
changes
|
||||||||||||||||||||||||
|
Balance as of
January 1, |
Financing
Cash Flow |
Foreign Exchange
Movement |
Leases
Modifications |
Other Changes
(Note)
|
Balance as of
June 30, 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 | $ | 55,624.1 | $ | (4,518.5 | ) | $ | — | $ | (283.7 | ) | $ | 139,380.9 | ||||||||||
|
Bonds payable
|
256,705.1 | 154,930.7 | (1,231.5 | ) | — | 60.6 | 410,464.9 | |||||||||||||||||
|
Long-term bank loans
|
1,967.6 | 1,210.0 | — | — | (6.3 | ) | 3,171.3 | |||||||||||||||||
|
Lease liabilities
|
22,388.6 | (1,082.1 | ) | (33.2 | ) | 1,521.4 | 97.0 | 22,891.7 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Total
|
$ | 369,620.3 | $ | 210,682.7 | $ | (5,783.2 | ) | $ | 1,521.4 | $ | (132.4 | ) | $ | 575,908.8 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Note: |
Other changes include discounts on short-term loans, amortization of bonds payable, amortization of long-term bank loan interest subsidy, financial cost of lease liabilities and amortization of short-term bills payable.
|
|
30.
|
FINANCIAL INSTRUMENTS
|
|
|
a.
|
Categories of financial instruments
|
|
December 31,
2020
|
June 30,
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Financial assets
|
||||||||
|
FVTPL (Note 1)
|
$ | 2,259.4 | $ | 58.3 | ||||
|
FVTOCI (Note 2)
|
129,918.7 | 131,364.3 | ||||||
|
Hedging financial assets
|
0.1 | 0.3 | ||||||
|
Amortized cost (Note 3)
|
826,293.6 | 944,073.7 | ||||||
|
|
|
|
|
|||||
| $ | 958,471.8 | $ | 1,075,496.6 | |||||
|
|
|
|
|
|||||
|
Financial liabilities
|
||||||||
|
FVTPL (Note 4)
|
$ | 94.1 | $ | 1,828.3 | ||||
|
Hedging financial liabilities
|
1.2 | 10.2 | ||||||
|
Amortized cost (Note 5)
|
748,129.3 | 919,869.5 | ||||||
|
|
|
|
|
|||||
| $ | 748,224.6 | $ | 921,708.0 | |||||
|
|
|
|
|
|||||
|
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 and guarantee deposits. |
| b. |
Financial risk management objectives
|
| c. |
Market risk
|
| d. |
Credit risk management
|
|
Category
|
Description
|
Basis for Recognizing
Expected Credit Loss
|
Expected
Credit Loss Ratio |
|||
|
Performing
|
Credit rating is investment grade on valuation date
|
12 months expected credit loss
|
0—0.1% | |||
|
Doubtful
|
Credit rating is
non-investment
grade on
valuation date |
Lifetime expected credit loss-not credit impaired
|
— | |||
|
In default
|
Credit rating is CC or below on valuation date
|
Lifetime expected credit loss-credit impaired
|
— | |||
|
Write-off
|
There is evidence indicating that the debtor is in
severe financial difficulty and the Company has no realistic prospect of recovery |
Amount is written off
|
— |
| e. |
Liquidity risk management
|
|
Less Than
1 Year
|
1-3 Years
|
3-5 Years
|
More Than
5 Years
|
Total
|
||||||||||||||||
|
NT$
|
NT$
|
NT$
|
NT$
|
NT$
|
||||||||||||||||
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
||||||||||||||||
|
December 31, 2020
|
||||||||||||||||||||
|
Non-derivative
financial liabilities
|
||||||||||||||||||||
|
Short-term loans
|
$ | 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)
|
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)
|
||||||||||||||||
|
June 30, 2021
|
||||||||||||||||||||
|
Non-derivative
financial liabilities
|
||||||||||||||||||||
|
Short-term loans
|
$ | 139,286.4 | $ | — | $ | — | $ | — | $ | 139,286.4 | ||||||||||
|
Accounts payable (including related parties)
|
41,230.0 | — | — | — | 41,230.0 | |||||||||||||||
|
Payables to contractors and equipment suppliers
|
107,146.1 | — | — | — | 107,146.1 | |||||||||||||||
|
Accrued expenses and other current liabilities
|
81,877.9 | — | — | — | 81,877.9 | |||||||||||||||
|
Bonds payable
|
4,695.8 | 31,394.0 | 111,057.2 | 321,209.2 | 468,356.2 | |||||||||||||||
|
Long-term bank loans
|
15.1 | 1,711.4 | 1,529.1 | — | 3,255.6 | |||||||||||||||
|
Lease liabilities (including those classified under accrued expenses and other current liabilities)
|
2,056.4 | 3,547.6 | 3,254.8 | 15,437.5 | 24,296.3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 376,307.7 | 36,653.0 | 115,841.1 | 336,646.7 | 865,448.5 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Derivative financial instruments
|
||||||||||||||||||||
|
Forward exchange
contracts
|
||||||||||||||||||||
|
Outflows
|
202,441.8 | — | — | — | 202,441.8 | |||||||||||||||
|
Inflows
|
(201,256.3 | ) | — | — | — | (201,256.3 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 1,185.5 | — | — | — | 1,185.5 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 377,493.2 | $ | 36,653.0 | $ | 115,841.1 | $ | 336,646.7 | $ | 866,634.0 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
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 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
June 30, 2021
|
||||||||||||||||||||
|
Lease liabilities
|
$ | 7,658.6 | $ | 5,300.3 | $ | 2,290.8 | $ | 187.8 | $ | 15,437.5 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| f. |
Fair value of financial instruments
|
| 1) |
Fair value measurements recognized in the condensed consolidated statements of financial position
|
| • |
Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities;
|
| • |
Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
|
| • |
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
|
| 2) |
Fair value of financial instruments that are measured at fair value on a recurring basis
|
|
December 31, 2020
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
|||||||||||||
|
Financial assets at FVTPL
|
||||||||||||||||
|
Mandatorily measured at FVTPL
|
||||||||||||||||
|
Forward exchange contracts
|
$ | — | $ | 2,259.4 | $ | — | $ | 2,259.4 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Financial assets at FVTOCI
|
||||||||||||||||
|
Investments in debt instruments
|
||||||||||||||||
|
Corporate bonds
|
$ | — | $ | 56,593.6 | $ | — | $ | 56,593.6 | ||||||||
|
Agency bonds/Agency mortgage-backed securities
|
— | 43,977.1 | — | 43,977.1 | ||||||||||||
|
Government bonds
|
13,279.2 | 180.3 | — | 13,459.5 | ||||||||||||
|
Asset-backed securities
|
— | 8,368.3 | — | 8,368.3 | ||||||||||||
|
December 31, 2020
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
|||||||||||||
|
Investments in equity instruments
|
||||||||||||||||
|
Non-publicly
traded equity investments
|
$ | — | $ | — | $ | 4,514.9 | $ | 4,514.9 | ||||||||
|
Publicly traded stocks
|
50.0 | — | — | 50.0 | ||||||||||||
|
Notes and accounts receivable, net
|
— | 2,955.3 | — | 2,955.3 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 13,329.2 | $ | 112,074.6 | $ | 4,514.9 | $ | 129,918.7 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Hedging financial assets
|
||||||||||||||||
|
Fair value hedges
|
||||||||||||||||
|
Interest rate futures contracts
|
$ | 0.1 | $ | — | $ | — | $ | 0.1 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Financial liabilities at FVTPL
|
||||||||||||||||
|
Held for trading
|
||||||||||||||||
|
Forward exchange contracts
|
$ | — | $ | 94.1 | $ | — | $ | 94.1 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Hedging financial liabilities
|
||||||||||||||||
|
Fair value hedges
|
||||||||||||||||
|
Interest rate futures contracts
|
$ | 1.2 | $ | — | $ | — | $ | 1.2 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
June 30, 2021
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
|||||||||||||
|
Financial assets at FVTPL
|
||||||||||||||||
|
Mandatorily measured at FVTPL
|
||||||||||||||||
|
Forward exchange contracts
|
$ | — | $ | 58.3 | $ | — | $ | 58.3 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Financial assets at FVTOCI
|
||||||||||||||||
|
Investments in debt instruments
|
||||||||||||||||
|
Corporate bonds
|
$ | — | $ | 58,907.9 | $ | — | $ | 58,907.9 | ||||||||
|
Agency bonds/Agency mortgage-backed securities
|
— | 32,188.8 | — | 32,188.8 | ||||||||||||
|
Government bonds
|
24,041.3 | 80.6 | — | 24,121.9 | ||||||||||||
|
Asset-backed securities
|
— | 7,523.4 | — | 7,523.4 | ||||||||||||
|
Investments in equity instruments
|
||||||||||||||||
|
Non-publicly
traded equity investments
|
— | — | 5,390.0 | 5,390.0 | ||||||||||||
|
Publicly traded stocks
|
52.5 | — | — | 52.5 | ||||||||||||
|
Notes and accounts receivable, net
|
— | 3,179.8 | — | 3,179.8 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 24,093.8 | $ | 101,880.5 | $ | 5,390.0 | $ | 131,364.3 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Hedging financial assets
|
||||||||||||||||
|
Fair value hedges
|
||||||||||||||||
|
Interest rate futures contracts
|
$ | 0.3 | $ | — | $ | — | $ | 0.3 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
June 30, 2021
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
|
NT$
|
NT$
|
NT$
|
NT$
|
|||||||||||||
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
(In Millions)
|
|||||||||||||
|
F
inancial liabilities at FVTPL
|
||||||||||||||||
|
Held for trading
|
||||||||||||||||
|
Forward exchange contracts
|
$ | — | $ | 1,828.3 | $ | — | $ | 1,828.3 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Hedging financial liabilities
|
||||||||||||||||
|
Fair value hedges
|
||||||||||||||||
|
Interest rate futures contracts
|
$ | 10.2 | $ | — | $ | — | $ | 10.2 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Balance, beginning of period
|
$ | 4,208.9 | $ | 4,514.9 | ||||
|
Additions
|
142.0 | 153.7 | ||||||
|
Recognized in profit or loss
|
(3.8 | ) | — | |||||
|
Recognized in other comprehensive income or loss
|
(49.0 | ) | 814.4 | |||||
|
Disposals and proceeds from return of capital of investments
|
— | (62.8 | ) | |||||
|
Effect of exchange rate changes
|
(62.9 | ) | (30.2 | ) | ||||
|
|
|
|
|
|||||
|
Balance, end of period
|
$ | 4,235.2 | $ | 5,390.0 | ||||
|
|
|
|
|
|||||
| • |
The fair values of corporate bonds, agency bonds, agency mortgage-backed securities, asset-backed securities, government bonds and
non-publicly
traded equity investments - equity investments trading on the Emerging Stock Board are determined by quoted market prices provided by third party pricing services.
|
| • |
The fair values of forward exchange contracts are measured using forward exchange rates and discount rates derived from quoted market prices.
|
| • |
The fair value of accounts receivable classified as at FVTOCI is determined by the present value of future cash flows based on the discount rate that reflects the credit risk of counterparties.
|
| 3) |
Fair value of financial instruments that are not measured at
|
|
December 31, 2020
|
||||||||
|
Carrying
Amount |
Level 2
Fair Value |
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Financial assets
|
||||||||
|
Financial assets at amortized costs
|
||||||||
|
Corporate bonds
|
$ | 10,970.2 | $ | 11,053.6 | ||||
|
|
|
|
|
|||||
|
Financial liabilities
|
||||||||
|
Financial liabilities at amortized costs
|
||||||||
|
Bonds payable
|
$ | 256,705.1 | $ | 257,551.2 | ||||
|
|
|
|
|
|||||
|
June 30, 2021
|
||||||||
|
Carrying
Amount |
Level 2 Fair
Value |
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Financial assets
|
||||||||
|
Financial assets at amortized costs
|
||||||||
|
Corporate bonds
|
$ | 4,336.6 | $ | 4,373.9 | ||||
|
|
|
|
|
|||||
|
Financial liabilities
|
||||||||
|
Financial liabilities at amortized costs
|
||||||||
|
Bonds payable
|
$ | 410,464.9 | $ | 407,330.0 | ||||
|
|
|
|
|
|||||
|
31.
|
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
|
|
Six Months Ended June 30
|
||||||||||
|
2020
|
2021
|
|||||||||
|
NT$
|
NT$
|
|||||||||
|
(In Millions)
|
(In Millions)
|
|||||||||
|
Item
|
Related Party Categories
|
|||||||||
|
Net revenue from sale of goods
|
Associates | $ | 3,681.9 | $ | 3,447.1 | |||||
|
|
|
|
|
|||||||
|
Net revenue from royalties
|
Associates | $ | 103.4 | $ | 105.0 | |||||
|
|
|
|
|
|||||||
| c. |
Purchases
|
|
Six Months Ended June 30
|
||||||||||
|
2020
|
2021
|
|||||||||
|
NT$
|
NT$
|
|||||||||
|
(In Millions)
|
(In Millions)
|
|||||||||
|
Related Party Categories
|
||||||||||
|
Associates
|
$ | 3,733.3 | $ | 3,903.1 | ||||||
|
|
|
|
|
|||||||
| d. |
Receivables from related parties
|
|
December 31,
2020 |
June 30,
2021
|
|||||||||
|
NT$
|
NT$
|
|||||||||
|
(In Millions)
|
(In Millions)
|
|||||||||
|
Item
|
Related Party Name/Categories
|
|||||||||
|
Receivables from related parties
|
GUC | $ | 370.6 | $ | 675.5 | |||||
| Xintec | 187.5 | 108.9 | ||||||||
|
|
|
|
|
|||||||
| $ | 558.1 | $ | 784.4 | |||||||
|
|
|
|
|
|||||||
|
December 31,
2020 |
June 30,
2021
|
|||||||||
|
NT$
|
NT$
|
|||||||||
|
(In Millions)
|
(In Millions)
|
|||||||||
|
Item
|
Related Party Name/Categories
|
|
|
|
||||||
|
Other receivables from related parties
|
VIS | $ | 4.3 | $ | 1,639.7 | |||||
| SSMC | 45.3 | 48.9 | ||||||||
| Others | 1.0 | 23.1 | ||||||||
|
|
|
|
|
|||||||
| $ | 50.6 | $ | 1,711.7 | |||||||
|
|
|
|
|
|||||||
| e. |
Payables to related
|
|
December 31,
2020
|
June 30,
2021
|
|||||||||
|
NT$
|
NT$
|
|||||||||
|
(In Millions)
|
(In Millions)
|
|||||||||
|
Item
|
Related Party Name/Categories
|
|||||||||
|
Payables to related parties
|
Xintec | $ | 1,358.6 | $ | 727.6 | |||||
| SSMC | 400.8 | 412.2 | ||||||||
| VIS | 311.4 | 334.1 | ||||||||
| Others | 36.9 | 30.3 | ||||||||
|
|
|
|
|
|||||||
| $ | 2,107.7 | $ | 1,504.2 | |||||||
|
|
|
|
|
|||||||
| f. |
Accrued expenses and other current liabilities
|
|
December 31,
2020 |
June 30,
2021
|
|||||||||
|
NT$
|
NT$
|
|||||||||
|
(In Millions)
|
(In Millions)
|
|||||||||
|
Item
|
Related Party Categories
|
|||||||||
|
Contract liabilities
|
Associates | $ | — | $ | 333.1 | |||||
|
|
|
|
|
|||||||
| g. |
Others
|
|
Six Months Ended June 30
|
||||||||||
|
2020
|
2021
|
|||||||||
|
NT$
|
NT$
|
|||||||||
|
(In Millions)
|
(In Millions)
|
|||||||||
|
Item
|
Related Party Categories
|
|||||||||
|
Manufacturing expenses
|
Associates | $ | 1,822.0 | $ | 2,566.5 | |||||
|
|
|
|
|
|||||||
|
Research and development expenses
|
Associates | $ | 87.3 | $ | 81.9 | |||||
|
|
|
|
|
|||||||
|
General and
administrative
expenses
|
Other related parties | $ | 60.0 | $ | 70.0 | |||||
|
|
|
|
|
|||||||
| h. |
Compensation of key management personnel
|
|
Six Months Ended June 30
|
||||||||
|
2020
|
2021
|
|||||||
|
NT$
|
NT$
|
|||||||
|
(In Millions)
|
(In Millions)
|
|||||||
|
Short-term employee benefits
|
$ | 1,207.4 | $ | 1,302.5 | ||||
|
Post-employment benefits
|
1.3 | 1.5 | ||||||
|
|
|
|
|
|||||
| $ | 1,208.7 | $ | 1,304.0 | |||||
|
|
|
|
|
|||||
|
32.
|
PLEDGED ASSETS
|
|
33.
|
SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED 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 June 30, 2021, the R.O.C. Government did not invoke such right.
|
| b. |
Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in Singapore. TSMC’s equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips
spun-off
its semiconductor subsidiary which was renamed as NXP B.V. Further, TSMC and NXP B.V. purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, TSMC and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. TSMC and NXP B.V. are required, in the aggregate, to purchase at least 70% of SSMC’s capacity, but TSMC alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a specific percentage of its capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. There was no default from the aforementioned commitment as of June 30, 2021.
|
|
|
c.
|
TSMC entered into long-term purchase agreements of materials and supplies with multiple suppliers. The relative minimum purchase quantity and price are specified in the agreements
.
|
| d. |
TSMC entered into a long-term purchase agreement of equipment. The relative purchase quantity and price are specified in the agreement.
|
| e. |
TSMC entered into long-term energy purchase agreements with multiple suppliers. The relative purchase period, quantity and price are specified in the agreements.
|
| f. |
Amounts available under unused letters of credit as of December 31, 2020 and June 30,
2021
were NT$56.2 million and NT$137.8 million, respectively.
|
|
34.
|
OPERATING SEGMENTS
|