EX-99.1 2 tsm-ex991_7.htm EX-99.1 tsm-ex991_7.htm

English Translation of Financial Statements Originally Issued in Chinese

 

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

 

Consolidated Financial Statements for the

Years Ended December 31, 2021 and 2020 and

Independent Auditors’ Report

 

 

- 0 -


 

 

 

REPRESENTATION LETTER

 

 

 

The entities that are required to be included in the combined financial statements of Taiwan Semiconductor Manufacturing Company Limited as of and for the year ended December 31, 2021, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standard 10, “Consolidated Financial Statements.” In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries do not prepare a separate set of combined financial statements.

 

 

Very truly yours,

 

 

Taiwan Semiconductor Manufacturing Company Limited

 

By

 

 

 

 

 

                                                                   

MARK LIU 

Chairman

 

February 15, 2022


1

 


 

 

勤業眾信

勤業眾信聯合會計師事務所

11073 台北市信義區松仁路100號20樓

 

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 11073, Taiwan

 

Tel :+886 (2) 2725-9988

Fax:+886 (2) 4051-6888

www.deloitte.com.tw

 

INDEPENDENT AUDITORS’ REPORT

 

 

The Board of Directors and Shareholders

Taiwan Semiconductor Manufacturing Company Limited

 

Opinion

 

We have audited the accompanying consolidated financial statements of Taiwan Semiconductor Manufacturing Company Limited and its subsidiaries (the “Company”), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

 

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

 

Basis for Opinion

 

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

 

Key Audit Matters

 

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

 


2

 


 

 

Key audit matter for the Company’s consolidated financial statements for the year ended December 31, 2021 is stated as follows:

 

Property, plant and equipment (PP&E) – commencement of depreciation related to PP&E classified as equipment under installation and construction in progress (EUI/CIP)

 

Refer to Notes 4, 5 and 14 to the consolidated financial statements.

 

The Company’s evaluation of when to commence depreciation of EUI/CIP involves determining when the assets are available for their intended use. The criteria the Company uses to determine whether EUI/CIP are available for their intended use involves subjective judgments and assumptions about the conditions necessary for the assets to be capable of operating in the intended manner. Changes in these assumptions could have a significant impact on when depreciation is recognized.

 

Given the subjectivity in determining the date to commence depreciation of EUI/CIP, performing audit procedures to evaluate the reasonableness of the Company’s judgments and assumptions required a high degree of auditor judgment. Consequently, the validity of commencement of depreciation related to PP&E classified as EUI/CIP is identified as a key audit matter.

 

Our audit procedures related to the evaluation of when to commence depreciation of EUI/CIP included the following, among others:

 

1.

We read the Company’s policy and understood the criteria used to determine when to commence depreciation.

 

2.

We tested the effectiveness of the controls over the evaluation of when to commence depreciation of EUI/CIP.

 

3.

We sampled the year-end balance of EUI/CIP and performed the following for each selection:

 

 

a.

Evaluated whether the selection did not meet the criteria specified by the Company for commencement of depreciation.

 

 

b.

Observed the assets and evaluated their status.

 

4.

We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation during the year.

 

5.

We sampled and evaluated whether the selection of EUI/CIP met the criteria specified by the Company for commencement of depreciation subsequent to year end.

 

Other Matter

 

We have also audited the parent company only financial statements of Taiwan Semiconductor Manufacturing Company Limited as of and for the years ended December 31, 2021 and 2020 on which we have issued an unmodified opinion.

 

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

 

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

 

3

 


 

 

In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

 

Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

 

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

 

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

 

As part of an audit in accordance with the auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

 

1.

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

2.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

 

3.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 

4.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

 

5.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

 


4

 


 

 

6.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

 

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2021 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

 

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

 

 

 

 

Deloitte & Touche

Taipei, Taiwan

Republic of China

 

February 15, 2022

 

 

 

 

 

 

 

 

Notice to Readers

 

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

 

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

 

5

 


 

 

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

 

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

 

 

 

December 31, 2021

 

December 31, 2020

 

 

Amount

 

%

 

Amount

 

%

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents (Note 6)

 

$

1,064,990,192

 

 

 

29

 

 

$

660,170,647

 

 

 

24

 

Financial assets at fair value through profit or loss (Note 7)

 

 

159,048

 

 

 

-

 

 

 

2,259,412

 

 

 

-

 

Financial assets at fair value through other comprehensive income (Note 8)

 

 

119,519,251

 

 

 

3

 

 

 

122,448,453

 

 

 

5

 

Financial assets at amortized cost (Note 9)

 

 

3,773,571

 

 

 

-

 

 

 

6,597,992

 

 

 

-

 

Hedging financial assets (Note 10)

 

 

13,468

 

 

 

-

 

 

 

47

 

 

 

-

 

Notes and accounts receivable, net (Note 11)

 

 

197,586,109

 

 

 

5

 

 

 

145,480,272

 

 

 

5

 

Receivables from related parties (Note 33)

 

 

715,324

 

 

 

-

 

 

 

558,131

 

 

 

-

 

Other receivables from related parties (Note 33)

 

 

61,531

 

 

 

-

 

 

 

50,645

 

 

 

-

 

Inventories (Notes 5 and 12)

 

 

193,102,321

 

 

 

5

 

 

 

137,353,407

 

 

 

5

 

Other financial assets (Note 34)

 

 

16,630,611

 

 

 

1

 

 

 

10,676,111

 

 

 

1

 

Other current assets

 

 

10,521,481

 

 

 

-

 

 

 

6,590,191

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

1,607,072,907

 

 

 

43

 

 

 

1,092,185,308

 

 

 

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONCURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets at fair value through other comprehensive income (Note 8)

 

 

5,887,892

 

 

 

-

 

 

 

4,514,940

 

 

 

-

 

Financial assets at amortized cost (Note 9)

 

 

1,533,391

 

 

 

-

 

 

 

4,372,207

 

 

 

-

 

Investments accounted for using equity method (Note 13)

 

 

21,963,418

 

 

 

1

 

 

 

18,841,061

 

 

 

1

 

Property, plant and equipment (Notes 5 and 14)

 

 

1,975,118,704

 

 

 

53

 

 

 

1,555,589,120

 

 

 

56

 

Right-of-use assets (Notes 5 and 15)

 

 

32,734,537

 

 

 

1

 

 

 

27,728,382

 

 

 

1

 

Intangible assets (Notes 5 and 16)

 

 

26,821,697

 

 

 

1

 

 

 

25,768,179

 

 

 

1

 

Deferred income tax assets (Notes 5 and 26)

 

 

49,153,886

 

 

 

1

 

 

 

25,958,184

 

 

 

1

 

Refundable deposits

 

 

2,624,854

 

 

 

-

 

 

 

1,343,001

 

 

 

-

 

Other noncurrent assets

 

 

2,592,169

 

 

 

-

 

 

 

4,411,023

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noncurrent assets

 

 

2,118,430,548

 

 

 

57

 

 

 

1,668,526,097

 

 

 

60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

$

3,725,503,455

 

 

 

100

 

 

$

2,760,711,405

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term loans (Notes 17 and 30)

 

$

114,921,333

 

 

 

3

 

 

$

88,559,026

 

 

 

3

 

Financial liabilities at fair value through profit or loss (Note 7)

 

 

681,914

 

 

 

-

 

 

 

94,128

 

 

 

-

 

Hedging financial liabilities (Note 10)

 

 

9,642

 

 

 

-

 

 

 

1,169

 

 

 

-

 

Accounts payable

 

 

47,285,603

 

 

 

1

 

 

 

38,987,284

 

 

 

1

 

Payables to related parties (Note 33)

 

 

1,437,186

 

 

 

-

 

 

 

2,107,718

 

 

 

-

 

Salary and bonus payable

 

 

23,802,100

 

 

 

1

 

 

 

20,071,241

 

 

 

1

 

Accrued profit sharing bonus to employees and compensation to directors and supervisors (Note 29)

 

 

36,524,741

 

 

 

1

 

 

 

35,681,046

 

 

 

1

 

Payables to contractors and equipment suppliers

 

 

145,742,148

 

 

 

4

 

 

 

157,804,961

 

 

 

6

 

Cash dividends payable (Note 21)

 

 

142,617,093

 

 

 

4

 

 

 

129,651,902

 

 

 

5

 

Income tax payable (Notes 5 and 26)

 

 

59,647,152

 

 

 

2

 

 

 

53,909,313

 

 

 

2

 

Long-term liabilities - current portion (Notes 18, 19 and 30)

 

 

4,566,667

 

 

 

-

 

 

 

2,600,000

 

 

 

-

 

Accrued expenses and other current liabilities (Notes 5, 15, 22, 30 and 33)

 

 

162,267,779

 

 

 

4

 

 

 

87,683,260

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

739,503,358

 

 

 

20

 

 

 

617,151,048

 

 

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONCURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bonds payable (Notes 18 and 30)

 

 

610,070,652

 

 

 

16

 

 

 

254,105,084

 

 

 

9

 

Long-term bank loans (Notes 19 and 30)

 

 

3,309,131

 

 

 

-

 

 

 

1,967,611

 

 

 

-

 

Deferred income tax liabilities (Notes 5 and 26)

 

 

1,873,877

 

 

 

-

 

 

 

1,729,941

 

 

 

-

 

Lease liabilities (Notes 5, 15 and 30)

 

 

20,764,214

 

 

 

1

 

 

 

20,560,649

 

 

 

1

 

Net defined benefit liability (Note 20)

 

 

11,036,879

 

 

 

-

 

 

 

11,914,074

 

 

 

1

 

Guarantee deposits

 

 

686,762

 

 

 

-

 

 

 

265,599

 

 

 

-

 

Others (Note 22)

 

 

167,525,377

 

 

 

5

 

 

 

2,395,400

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noncurrent liabilities

 

 

815,266,892

 

 

 

22

 

 

 

292,938,358

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

1,554,770,250

 

 

 

42

 

 

 

910,089,406

 

 

 

33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital stock (Note 21)

 

 

259,303,805

 

 

 

7

 

 

 

259,303,805

 

 

 

9

 

Capital surplus (Note 21)

 

 

64,761,602

 

 

 

2

 

 

 

56,347,243

 

 

 

2

 

Retained earnings (Note 21)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appropriated as legal capital reserve

 

 

311,146,899

 

 

 

8

 

 

 

311,146,899

 

 

 

11

 

Appropriated as special capital reserve

 

 

59,304,212

 

 

 

2

 

 

 

42,259,146

 

 

 

2

 

Unappropriated earnings

 

 

1,536,378,550

 

 

 

41

 

 

 

1,235,280,036

 

 

 

45

 

 

 

 

1,906,829,661

 

 

 

51

 

 

 

1,588,686,081

 

 

 

58

 

Others (Note 21)

 

 

(62,608,515

)

 

 

(2

)

 

 

(54,679,873

)

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity attributable to shareholders of the parent

 

 

2,168,286,553

 

 

 

58

 

 

 

1,849,657,256

 

 

 

67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON - CONTROLLING INTERESTS

 

 

2,446,652

 

 

 

-

 

 

 

964,743

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity

 

 

2,170,733,205

 

 

 

58

 

 

 

1,850,621,999

 

 

 

67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

$

3,725,503,455

 

 

 

100

 

 

$

2,760,711,405

 

 

 

100

 

 

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

 

6

 


 

 

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

 

 

 

 

2021

 

2020

 

 

Amount

 

%

 

Amount

 

%

 

 

 

 

 

 

 

 

 

NET REVENUE (Notes 5, 22, 33 and 38)

 

$

1,587,415,037

 

 

 

100

 

 

$

1,339,254,811

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COST OF REVENUE (Notes 5, 12, 29 and 33)

 

 

767,877,771

 

 

 

48

 

 

 

628,124,691

 

 

 

47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

819,537,266

 

 

 

52

 

 

 

711,130,120

 

 

 

53

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES (Notes 5, 29 and 33)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

124,734,755

 

 

 

8

 

 

 

109,486,089

 

 

 

8

 

General and administrative

 

 

36,929,588

 

 

 

2

 

 

 

28,457,593

 

 

 

2

 

Marketing

 

 

7,558,591

 

 

 

1

 

 

 

7,112,867

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

169,222,934

 

 

 

11

 

 

 

145,056,549

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14, 15 and 29)

 

 

(333,435

)

 

 

-

 

 

 

710,127

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM OPERATIONS (Note 38)

 

 

649,980,897

 

 

 

41

 

 

 

566,783,698

 

 

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING INCOME AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of profits of associates

 

 

5,603,084

 

 

 

-

 

 

 

3,592,818

 

 

 

-

 

Interest income (Note 23)

 

 

5,708,765

 

 

 

-

 

 

 

9,018,400

 

 

 

1

 

Other income

 

 

973,141

 

 

 

-

 

 

 

660,607

 

 

 

-

 

Foreign exchange gain (loss), net (Note 36)

 

 

13,662,655

 

 

 

1

 

 

 

(3,303,298

)

 

 

-

 

Finance costs (Note 24)

 

 

(5,414,218

)

 

 

-

 

 

 

(2,081,455

)

 

 

-

 

Other gains and losses, net (Note 25)

 

 

(7,388,010

)

 

 

-

 

 

 

10,106,410

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-operating income and expenses

 

 

13,145,417

 

 

 

1

 

 

 

17,993,482

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAX

 

 

663,126,314

 

 

 

42

 

 

 

584,777,180

 

 

 

44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE (Notes 5 and 26)

 

 

66,053,180

 

 

 

4

 

 

 

66,619,098

 

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

597,073,134

 

 

 

38

 

 

 

518,158,082

 

 

 

39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER COMPREHENSIVE INCOME (LOSS) (Notes 5, 20, 21 and 26)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that will not be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurement of defined benefit obligation

 

 

242,079

 

 

 

-

 

 

 

(3,516,749

)

 

 

(1

)

Unrealized gain on investments in equity instruments at fair value through other comprehensive income

 

 

1,900,797

 

 

 

-

 

 

 

423,697

 

 

 

-

 

Gain (loss) on hedging instruments

 

 

(41,416

)

 

 

-

 

 

 

24,085

 

 

 

-

 

(Continued)


7

 


 

 

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

 

 

 

 

2021

 

2020

 

 

Amount

 

%

 

Amount

 

%

 

 

 

 

 

 

 

 

 

Share of other comprehensive loss of associates

 

$

(30,194

)

 

 

-

 

 

$

(11,604

)

 

 

-

 

Income tax benefit (expense) related to items that will not be reclassified subsequently

 

 

(85,269

)

 

 

-

 

 

 

422,663

 

 

 

-

 

  

 

 

1,985,997

 

 

 

-

 

 

 

(2,657,908

)

 

 

(1

)

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange differences arising on translation of foreign operations

 

 

(6,181,830

)

 

 

(1

)

 

 

(29,847,196

)

 

 

(2

)

Unrealized gain/(loss) on investments in debt instruments at fair value through other comprehensive income

 

 

(3,431,791

)

 

 

-

 

 

 

2,466,711

 

 

 

-

 

Gain on hedging instruments

 

 

131,535

 

 

 

-

 

 

 

-

 

 

 

-

 

Share of other comprehensive loss of associates

 

 

(119,997

)

 

 

-

 

 

 

(283,409

)

 

 

-

 

Income tax expense related to items that may be reclassified subsequently

 

 

(3,370

)

 

 

-

 

 

 

-

 

 

 

-

 

  

 

 

(9,605,453

)

 

 

(1

)

 

 

(27,663,894

)

 

 

(2

)

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss for the year, net of income tax

 

 

(7,619,456

)

 

 

(1

)

 

 

(30,321,802

)

 

 

(3

)

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

 

$

589,453,678

 

 

 

37

 

 

$

487,836,280

 

 

 

36

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the parent

 

$

596,540,013

 

 

 

38

 

 

$

517,885,387

 

 

 

39

 

Non-controlling interests

 

 

533,121

 

 

 

-

 

 

 

272,695

 

 

 

-

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

$

597,073,134

 

 

 

38

 

 

$

518,158,082

 

 

 

39

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders of the parent

 

$

588,918,059

 

 

 

37

 

 

$

487,563,478

 

 

 

36

 

Non-controlling interests

 

 

535,619

 

 

 

-

 

 

 

272,802

 

 

 

-

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

$

589,453,678

 

 

 

37

 

 

$

487,836,280

 

 

 

36

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE (NT$, Note 27)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

23.01

 

 

 

 

 

 

$

19.97

 

 

 

 

 

Diluted earnings per share

 

$

23.01

 

 

 

 

 

 

$

19.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(Concluded)

 

8

 


 

 

 

 

Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries

 

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

 

 

 

Equity Attributable to Shareholders of the Parent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Others

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (Loss) on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets at Fair

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign

 

Value Through

 

 

 

Unearned

 

 

 

 

 

 

 

 

 

 

Capital Stock - Common Stock

 

 

 

Retained Earnings

 

Currency

 

Other

 

Gain (Loss) on

 

Stock-Based

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 

 

Legal Capital

 

Special Capital

 

Unappropriated

 

 

 

Translation

 

Comprehensive

 

Hedging

 

Employee

 

 

 

 

 

Non-controlling

 

Total

 

 

(In Thousands)

 

Amount

 

Capital Surplus

 

Reserve

 

Reserve

 

Earnings

 

Total

 

Reserve

 

Income

 

Instruments

 

Compensation

 

Total

 

Total

 

Interests

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE, JANUARY 1, 2020

 

 

25,930,380

 

 

$

259,303,805

 

 

$

56,339,709

 

 

$

311,146,899

 

 

$

10,675,106

 

 

$

1,011,512,974

 

 

$

1,333,334,979

 

 

$

(26,871,400

)

 

$

(692,959

)

 

$

(3,820

)

 

$

(190

)

 

$

(27,568,369

)

 

$

1,621,410,124

 

 

$

685,302

 

 

$

1,622,095,426

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appropriations of earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special capital reserve

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

31,584,040

 

 

 

(31,584,040

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Cash dividends to shareholders

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(259,303,805

)

 

 

(259,303,805

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(259,303,805

)

 

 

-

 

 

 

(259,303,805

)

Total

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

31,584,040

 

 

 

(290,887,845

)

 

 

(259,303,805

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(259,303,805

)

 

 

-

 

 

 

(259,303,805

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income in 2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

517,885,387

 

 

 

517,885,387

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

517,885,387

 

 

 

272,695

 

 

 

518,158,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) in 2020, net of income tax

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,121,793

)

 

 

(3,121,793

)

 

 

(30,130,227

)

 

 

2,906,026

 

 

 

24,085

 

 

 

-

 

 

 

(27,200,116

)

 

 

(30,321,909

)

 

 

107

 

 

 

(30,321,802

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss) in 2020

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

514,763,594

 

 

 

514,763,594

 

 

 

(30,130,227

)

 

 

2,906,026

 

 

 

24,085

 

 

 

-

 

 

 

(27,200,116

)

 

 

487,563,478

 

 

 

272,802

 

 

 

487,836,280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disposal of investments in equity instruments at fair value through other comprehensive income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(108,687

)

 

 

(108,687

)

 

 

-

 

 

 

108,687

 

 

 

-

 

 

 

-

 

 

 

108,687

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis adjustment for loss on hedging instruments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(20,265

)

 

 

-

 

 

 

(20,265

)

 

 

(20,265

)

 

 

-

 

 

 

(20,265

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to share of changes in equities of associates

 

 

-

 

 

 

-

 

 

 

292

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

190

 

 

 

190

 

 

 

482

 

 

 

-

 

 

 

482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Donation from shareholders

 

 

-

 

 

 

-

 

 

 

7,242

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7,242

 

 

 

27

 

 

 

7,269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in non-controlling interests

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,612

 

 

 

6,612

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE, DECEMBER 31, 2020

 

 

25,930,380

 

 

 

259,303,805

 

 

 

56,347,243

 

 

 

311,146,899

 

 

 

42,259,146

 

 

 

1,235,280,036

 

 

 

1,588,686,081

 

 

 

(57,001,627

)

 

 

2,321,754

 

 

 

-

 

 

 

-

 

 

 

(54,679,873

)

 

 

1,849,657,256

 

 

 

964,743

 

 

 

1,850,621,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appropriations of earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special capital reserve

 

 

-

 

 

 

-