Consolidated Financial Statements for the
Six Months Ended June 30, 2021 and 2020 and
Independent Auditors' Review Report
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勤業眾信
勤業眾信聯合會計師事務所
11073 台北市信義區松仁路100號20樓
Deloitte & Touche
20F, Taipei Nan Shan Plaza
No. 100, Songren Rd.,
Xinyi Dist., Taipei 11073, Taiwan
Tel :+886 (2) 2725-9988
Fax:+886 (2) 4051-6888
www.deloitte.com.tw
INDEPENDENT AUDITORS' REVIEW REPORT
The Board of Directors and Shareholders
Taiwan Semiconductor Manufacturing Company Limited
Introduction
We have reviewed the accompanying consolidated balance sheets of Taiwan Semiconductor Manufacturing Company Limited and its subsidiaries (collectively, the 'Company') as of June 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended June 30, 2021 and 2020 and for the six months ended June 30, 2021 and 2020, of changes in equity, and of cash flows for the six months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the 'consolidated financial statements'). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 'Interim Financial Reporting' endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.
Scope of Review
We conducted our reviews in accordance with Statement of Auditing Standards No. 65 'Review of Financial Information Performed by the Independent Auditor of the Entity'. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects the consolidated financial position of the Company as of June 30, 2021 and 2020, its consolidated financial performance for the three months ended June 30, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the six months then ended June 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 'Interim Financial Reporting' endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
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The engagement partners on the reviews resulting in this independent auditors' review report are Mei Yen Chiang and Shang Chih Lin.
Deloitte & Touche
Taipei, Taiwan
Republic of China
August 10, 2021
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors' review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' review report and consolidated financial statements shall prevail.
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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(In Thousands of New Taiwan Dollars)
June 30, 2021 (Reviewed) | December 31, 2020 (Audited) | June 30, 2020 (Reviewed) | ||||||||||||||||||||||
ASSETS | Amount | % | Amount | % | Amount | % | ||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||||||
Cash and cash equivalents (Note 6) | $ | 747,982,082 | 24 | $ | 660,170,647 | 24 | $ | 467,613,443 | 19 | |||||||||||||||
Financial assets at fair value through profit or loss (Note 7) | 58,325 | - | 2,259,412 | - | 788,526 | - | ||||||||||||||||||
Financial assets at fair value through other comprehensive income (Note 8) | 122,794,529 | 4 | 122,448,453 | 5 | 129,403,588 | 5 | ||||||||||||||||||
Financial assets at amortized cost (Note 9) | - | - | 6,597,992 | - | 7,210,148 | - | ||||||||||||||||||
Hedging financial assets (Note 10) | 310 | - | 47 | - | - | - | ||||||||||||||||||
Notes and accounts receivable, net (Note 11) | 177,475,493 | 6 | 145,480,272 | 5 | 148,708,055 | 6 | ||||||||||||||||||
Receivables from related parties (Note 31) | 784,397 | - | 558,131 | - | 891,691 | - | ||||||||||||||||||
Other receivables from related parties (Note 31) | 1,711,652 | - | 50,645 | - | 2,581,070 | - | ||||||||||||||||||
Inventories (Note 12) | 170,438,686 | 6 | 137,353,407 | 5 | 85,788,094 | 4 | ||||||||||||||||||
Other financial assets (Note 32) | 12,450,123 | - | 10,676,111 | 1 | 10,436,627 | 1 | ||||||||||||||||||
Other current assets | 7,408,426 | - | 6,590,191 | - | 6,610,338 | - | ||||||||||||||||||
Total current assets | 1,241,104,023 | 40 | 1,092,185,308 | 40 | 860,031,580 | 35 | ||||||||||||||||||
NONCURRENT ASSETS | ||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income (Note 8) | 5,389,958 | - | 4,514,940 | - | 4,300,519 | - | ||||||||||||||||||
Financial assets at amortized cost (Note 9) | 4,336,636 | - | 4,372,207 | - | 1,640,558 | - | ||||||||||||||||||
Investments accounted for using equity method (Note 13) | 19,336,878 | 1 | 18,841,061 | 1 | 16,975,748 | 1 | ||||||||||||||||||
Property, plant and equipment (Note 14) | 1,722,679,133 | 56 | 1,555,589,120 | 56 | 1,493,560,950 | 61 | ||||||||||||||||||
Right-of-use assets (Note 15) | 32,619,272 | 1 | 27,728,382 | 1 | 21,036,894 | 1 | ||||||||||||||||||
Intangible assets (Note 16) | 26,535,043 | 1 | 25,768,179 | 1 | 27,395,600 | 1 | ||||||||||||||||||
Deferred income tax assets (Note 4) | 36,180,371 | 1 | 25,958,184 | 1 | 20,493,373 | 1 | ||||||||||||||||||
Refundable deposits | 2,513,142 | - | 1,343,001 | - | 1,502,926 | - | ||||||||||||||||||
Other noncurrent assets | 2,120,733 | - | 4,411,023 | - | 1,726,374 | - | ||||||||||||||||||
Total noncurrent assets | 1,851,711,166 | 60 | 1,668,526,097 | 60 | 1,588,632,942 | 65 | ||||||||||||||||||
TOTAL | $ | 3,092,815,189 | 100 | $ | 2,760,711,405 | 100 | $ | 2,448,664,522 | 100 | |||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||||||
Short-term loans (Notes 17 and 29) | $ | 139,380,910 | 5 | $ | 88,559,026 | 3 | $ | 169,546,950 | 7 | |||||||||||||||
Short-term bills payable (Notes 18 and 29) | - | - | - | - | 6,493,398 | - | ||||||||||||||||||
Financial liabilities at fair value through profit or loss (Note 7) | 1,828,338 | - | 94,128 | - | 1,543,265 | - | ||||||||||||||||||
Hedging financial liabilities (Note 10) | 10,216 | - | 1,169 | - | 14,839 | - | ||||||||||||||||||
Accounts payable | 39,725,757 | 1 | 38,987,284 | 1 | 38,100,739 | 2 | ||||||||||||||||||
Payables to related parties (Note 31) | 1,504,156 | - | 2,107,718 | - | 1,433,005 | - | ||||||||||||||||||
Salary and bonus payable | 17,148,913 | 1 | 20,071,241 | 1 | 14,747,716 | 1 | ||||||||||||||||||
Accrued profit sharing bonus to employees and compensation to directors and supervisors (Note 28) | 52,328,940 | 2 | 35,681,046 | 1 | 40,028,506 | 2 | ||||||||||||||||||
Payables to contractors and equipment suppliers | 107,146,153 | 3 | 157,804,961 | 6 | 97,739,201 | 4 | ||||||||||||||||||
Cash dividends payable (Note 21) | 136,134,497 | 4 | 129,651,902 | 5 | 129,651,902 | 5 | ||||||||||||||||||
Income tax payable (Note 4) | 40,022,662 | 1 | 53,909,313 | 2 | 33,020,177 | 1 | ||||||||||||||||||
Long-term liabilities - current portion (Notes 19 and 29) | - | - | 2,600,000 | - | 12,800,000 | 1 | ||||||||||||||||||
Accrued expenses and other current liabilities (Notes 15, 22, 29 and 31) | 112,518,405 | 4 | 87,683,260 | 3 | 69,676,030 | 3 | ||||||||||||||||||
Total current liabilities | 647,748,947 | 21 | 617,151,048 | 22 | 614,795,728 | 26 | ||||||||||||||||||
NONCURRENT LIABILITIES | ||||||||||||||||||||||||
Bonds payable (Notes 19 and 29) | 410,464,857 | 13 | 254,105,084 | 9 | 82,439,681 | 3 | ||||||||||||||||||
Long-term bank loans (Notes 20 and 29) | 3,171,331 | - | 1,967,611 | - | - | - | ||||||||||||||||||
Deferred income tax liabilities (Note 4) | 2,142,797 | - | 1,729,941 | - | 354,306 | - | ||||||||||||||||||
Lease liabilities (Notes 15 and 29) | 21,030,441 | 1 | 20,560,649 | 1 | 19,164,873 | 1 | ||||||||||||||||||
Net defined benefit liability (Note 4) | 11,285,520 | 1 | 11,914,074 | 1 | 8,381,192 | - | ||||||||||||||||||
Guarantee deposits | 392,398 | - | 265,599 | - | 171,622 | - | ||||||||||||||||||
Others | 2,608,325 | - | 2,395,400 | - | 2,143,738 | - | ||||||||||||||||||
Total noncurrent liabilities | 451,095,669 | 15 | 292,938,358 | 11 | 112,655,412 | 4 | ||||||||||||||||||
Total liabilities | 1,098,844,616 | 36 | 910,089,406 | 33 | 727,451,140 | 30 | ||||||||||||||||||
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT | ||||||||||||||||||||||||
Capital stock (Note 21) | 259,303,805 | 8 | 259,303,805 | 9 | 259,303,805 | 11 | ||||||||||||||||||
Capital surplus (Note 21) | 64,753,836 | 2 | 56,347,243 | 2 | 56,339,981 | 2 | ||||||||||||||||||
Retained earnings (Note 21) | ||||||||||||||||||||||||
Appropriated as legal capital reserve | 311,146,899 | 10 | 311,146,899 | 11 | 311,146,899 | 13 | ||||||||||||||||||
Appropriated as special capital reserve | 48,392,823 | 2 | 42,259,146 | 2 | 24,873,338 | 1 | ||||||||||||||||||
Unappropriated earnings | 1,366,782,481 | 44 | 1,235,280,036 | 45 | 1,105,471,753 | 45 | ||||||||||||||||||
1,726,322,203 | 56 | 1,588,686,081 | 58 | 1,441,491,990 | 59 | |||||||||||||||||||
Others (Note 21) | (58,594,043 | ) | (2 | ) | (54,679,873 | ) | (2 | ) | (36,757,795 | ) | (2 | ) | ||||||||||||
Equity attributable to shareholders of the parent | 1,991,785,801 | 64 | 1,849,657,256 | 67 | 1,720,377,981 | 70 | ||||||||||||||||||
NON - CONTROLLING INTERESTS | 2,184,772 | - | 964,743 | - | 835,401 | - | ||||||||||||||||||
Total equity | 1,993,970,573 | 64 | 1,850,621,999 | 67 | 1,721,213,382 | 70 | ||||||||||||||||||
TOTAL | $ | 3,092,815,189 | 100 | $ | 2,760,711,405 | 100 | $ | 2,448,664,522 | 100 | |||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
(Reviewed, Not Audited)
For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
NET REVENUE (Notes 22, 31 and 36) | $ | 372,145,122 | 100 | $ | 310,698,367 | 100 | $ | 734,555,352 | 100 | $ | 621,295,550 | 100 | ||||||||||||||||||||
COST OF REVENUE (Notes 12, 28 and 31) | 185,910,987 | 50 | 146,005,542 | 47 | 358,545,998 | 49 | 295,818,544 | 48 | ||||||||||||||||||||||||
GROSS PROFIT BEFORE REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO ASSOCIATES | 186,234,135 | 50 | 164,692,825 | 53 | 376,009,354 | 51 | 325,477,006 | 52 | ||||||||||||||||||||||||
REALIZED (UNREALIZED) GROSS PROFIT ON SALES TO ASSOCIATES | (37,317 | ) | - | (69,034 | ) | - | 26,894 | - | (76,707 | ) | - | |||||||||||||||||||||
GROSS PROFIT | 186,196,818 | 50 | 164,623,791 | 53 | 376,036,248 | 51 | 325,400,299 | 52 | ||||||||||||||||||||||||
OPERATING EXPENSES (Notes 28 and 31) | ||||||||||||||||||||||||||||||||
Research and development | 30,873,376 | 8 | 24,893,043 | 8 | 61,629,734 | 8 | 49,861,926 | 8 | ||||||||||||||||||||||||
General and administrative | 7,826,613 | 2 | 6,894,405 | 2 | 14,350,858 | 2 | 12,797,466 | 2 | ||||||||||||||||||||||||
Marketing | 1,883,434 | 1 | 1,733,261 | 1 | 3,714,664 | 1 | 3,184,363 | - | ||||||||||||||||||||||||
Total operating expenses | 40,583,423 | 11 | 33,520,709 | 11 | 79,695,256 | 11 | 65,843,755 | 10 | ||||||||||||||||||||||||
OTHER OPERATING INCOME AND EXPENSES, NET (Notes 14, 15 and 28) | 53,810 | - | (8,544 | ) | - | (135,597 | ) | - | 59,631 | - | ||||||||||||||||||||||
INCOME FROM OPERATIONS (Note 36) | 145,667,205 | 39 | 131,094,538 | 42 | 296,205,395 | 40 | 259,616,175 | 42 | ||||||||||||||||||||||||
NON-OPERATING INCOME AND EXPENSES | ||||||||||||||||||||||||||||||||
Share of profits of associates | 1,171,888 | - | 678,757 | - | 2,439,000 | - | 1,404,725 | - | ||||||||||||||||||||||||
Interest income (Note 23) | 1,428,681 | 1 | 2,478,362 | 1 | 2,889,585 | - | 5,467,431 | 1 | ||||||||||||||||||||||||
Other income | 349,186 | - | 233,415 | - | 657,270 | - | 343,924 | - | ||||||||||||||||||||||||
Foreign exchange gain, net (Note 34) | 649,882 | - | 2,779,312 | 1 | 6,123,871 | 1 | 3,155,103 | - | ||||||||||||||||||||||||
Finance costs (Note 24) | (1,134,399 | ) | - | (409,145 | ) | - | (1,906,494 | ) | - | (939,709 | ) | - | ||||||||||||||||||||
Other gains and losses, net (Note 25) | 1,258,632 | - | (456,601 | ) | - | (1,953,163 | ) | - | (501,833 | ) | - | |||||||||||||||||||||
Total non-operating income and expenses | 3,723,870 | 1 | 5,304,100 | 2 | 8,250,069 | 1 | 8,929,641 | 1 | ||||||||||||||||||||||||
INCOME BEFORE INCOME TAX | 149,391,075 | 40 | 136,398,638 | 44 | 304,455,464 | 41 | 268,545,816 | 43 | ||||||||||||||||||||||||
INCOME TAX EXPENSE (Notes 4 and 26) | 14,909,359 | 4 | 15,506,124 | 5 | 30,234,999 | 4 | 30,590,409 | 5 | ||||||||||||||||||||||||
NET INCOME | 134,481,716 | 36 | 120,892,514 | 39 | 274,220,465 | 37 | 237,955,407 | 38 | ||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) (Notes 21 and 26) | ||||||||||||||||||||||||||||||||
Items that will not be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||
Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income | 926,525 | - | 22,337 | - | 817,336 | - | (21,710 | ) | - | |||||||||||||||||||||||
Loss on hedging instruments | - | - | - | - | (41,416 | ) | - | (42,749 | ) | - | ||||||||||||||||||||||
Share of other comprehensive income (loss) of associates | (3,645 | ) | - | (152 | ) | - | 4,502 | - | (3,469 | ) | - | |||||||||||||||||||||
Income tax benefit (expense) related to items that will not be reclassified subsequently | (74 | ) | - | 352 | - | (55,845 | ) | - | 466 | - | ||||||||||||||||||||||
922,806 | - | 22,537 | - | 724,577 | - | (67,462 | ) | - | ||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||
Exchange differences arising on translation of foreign operations | (10,901,084 | ) | (3 | ) | (14,725,220 | ) | (5 | ) | (3,095,279 | ) | - | (11,690,196 | ) | (2 | ) | |||||||||||||||||
Unrealized gain/(loss) on investments in debt instruments at fair value through other comprehensive income | (124,148 | ) | - | 2,909,147 | 1 | (1,790,169 | ) | - | 2,698,399 | 1 | ||||||||||||||||||||||
Share of other comprehensive loss of associates | (99,112 | ) | - | (89,950 | ) | - | (73,657 | ) | - | (176,309 | ) | - | ||||||||||||||||||||
(11,124,344 | ) | (3 | ) | (11,906,023 | ) | (4 | ) | (4,959,105 | ) | - | (9,168,106 | ) | (1 | ) | ||||||||||||||||||
Other comprehensive loss for the period, net of income tax | (10,201,538 | ) | (3 | ) | (11,883,486 | ) | (4 | ) | (4,234,528 | ) | - | (9,235,568 | ) | (1 | ) | |||||||||||||||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | $ | 124,280,178 | 33 | $ | 109,009,028 | 35 | $ | 269,985,937 | 37 | $ | 228,719,839 | 37 | ||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO: | ||||||||||||||||||||||||||||||||
Shareholders of the parent | $ | 134,358,942 | 36 | $ | 120,822,193 | 39 | $ | 274,049,435 | 37 | $ | 237,808,913 | 38 | ||||||||||||||||||||
Non-controlling interests | 122,774 | - | 70,321 | - | 171,030 | - | 146,494 | - | ||||||||||||||||||||||||
$ | 134,481,716 | 36 | $ | 120,892,514 | 39 | $ | 274,220,465 | 37 | $ | 237,955,407 | 38 |
(Continued)
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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
(Reviewed, Not Audited)
For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: | ||||||||||||||||||||||||||||||||
Shareholders of the parent | $ | 124,157,722 | 33 | $ | 108,937,736 | 35 | $ | 269,815,033 | 37 | $ | 228,572,728 | 37 | ||||||||||||||||||||
Non-controlling interests | 122,456 | - | 71,292 | - | 170,904 | - | 147,111 | - | ||||||||||||||||||||||||
$ | 124,280,178 | 33 | $ | 109,009,028 | 35 | $ | 269,985,937 | 37 | $ | 228,719,839 | 37 | |||||||||||||||||||||
EARNINGS PER SHARE (NT$, Note 27) | ||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 5.18 | $ | 4.66 | $ | 10.57 | $ | 9.17 | ||||||||||||||||||||||||
Diluted earnings per share | $ | 5.18 | $ | 4.66 | $ | 10.57 | $ | 9.17 | ||||||||||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
(Concluded)
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Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
Equity Attributable to Shareholders of the Parent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Others | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) on | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets at Fair | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign | Value Through | Unearned | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock - Common Stock | Retained Earnings | Currency | Other | Gain (Loss) on | Stock-Based | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Legal Capital | Special Capital | Unappropriated | Translation | Comprehensive | Hedging | Employee | Non-controlling | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands) | Amount | Capital Surplus | Reserve | Reserve | Earnings | Total | Reserve | Income | Instruments | Compensation | Total | Total | Interests | Equity | ||||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2021 | 25,930,380 | $ | 259,303,805 | $ | 56,347,243 | $ | 311,146,899 | $ | 42,259,146 | $ | 1,235,280,036 | $ | 1,588,686,081 | $ | (57,001,627 | ) | $ | 2,321,754 | $ | - | $ | - | $ | (54,679,873 | ) | $ | 1,849,657,256 | $ | 964,743 | $ | 1,850,621,999 | |||||||||||||||||||||||||||||
Appropriations of earnings | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special capital reserve | - | - | - | - | 6,133,677 | (6,133,677 | ) | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholders | - | - | - | - | - | (136,134,497 | ) | (136,134,497 | ) | - | - | - | - | - | (136,134,497 | ) | - | (136,134,497 | ) | |||||||||||||||||||||||||||||||||||||||||
Total | - | - | - | - | 6,133,677 | (142,268,174 | ) | (136,134,497 | ) | - | - | - | - | - | (136,134,497 | ) | - | (136,134,497 | ) | |||||||||||||||||||||||||||||||||||||||||
Net income for the six months ended June 30, 2021 | - | - | - | - | - | 274,049,435 | 274,049,435 | - | - | - | - | - | 274,049,435 | 171,030 | 274,220,465 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss for the six months ended June 30, 2021, net of income tax | - | - | - | - | - | - | - | (3,168,898 | ) | (1,024,088 | ) | (41,416 | ) | - | (4,234,402 | ) | (4,234,402 | ) | (126 | ) | (4,234,528 | ) | ||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) for the six months ended June 30, 2021 | - | - | - | - | - | 274,049,435 | 274,049,435 | (3,168,898 | ) | (1,024,088 | ) | (41,416 | ) | - | (4,234,402 | ) | 269,815,033 | 170,904 | 269,985,937 | |||||||||||||||||||||||||||||||||||||||||
Disposal of investments in equity instruments at fair value through other comprehensive income | - | - | - | - | - | (278,816 | ) | (278,816 | ) | - | 278,816 | - | - | 278,816 | - | - | - | |||||||||||||||||||||||||||||||||||||||||||
Basis adjustment for gain on hedging instruments | - | - | - | - | - | - | - | - | - | 41,416 | - | 41,416 | 41,416 | - | 41,416 | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equities of associates | - | - | 311 | - | - | - | - | - | - | - | - | - | 311 | - | 311 | |||||||||||||||||||||||||||||||||||||||||||||
From difference between the consideration received and the carrying amount of the subsidiaries' net assets during actual disposal | - | - | 8,406,282 | - | - | - | - | - | - | - | - | - | 8,406,282 | 1,045,516 | 9,451,798 | |||||||||||||||||||||||||||||||||||||||||||||
Increase in non-controlling interests | - | - | - | - | - | - | - | - | - | - | - | - | - | 3,454 | 3,454 | |||||||||||||||||||||||||||||||||||||||||||||
Effect of acquisition of subsidiary | - | - | - | - | - | - | - | - | - | - | - | - | - | 155 | 155 | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JUNE 30, 2021 | 25,930,380 | $ | 259,303,805 | $ | 64,753,836 | $ | 311,146,899 | $ | 48,392,823 | $ | 1,366,782,481 | $ | 1,726,322,203 | $ | (60,170,525 | ) | $ | 1,576,482 | $ | - | $ | - | $ | (58,594,043 | ) | $ | 1,991,785,801 | $ | 2,184,772 | $ | 1,993,970,573 | |||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2020 | 25,930,380 | $ | 259,303,805 | $ | 56,339,709 | $ | 311,146,899 | $ | 10,675,106 | $ | 1,011,512,974 | $ | 1,333,334,979 | $ | (26,871,400 | ) | $ | (692,959 | ) | $ | (3,820 | ) | $ | (190 | ) | $ | (27,568,369 | ) | $ | 1,621,410,124 | $ | 685,302 | $ | 1,622,095,426 | ||||||||||||||||||||||||||
Appropriations of earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special capital reserve | - | - | - | - | 14,198,232 | (14,198,232 | ) | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividends to shareholders | - | - | - | - | - | (129,651,902 | ) | (129,651,902 | ) | - | - | - | - | - | (129,651,902 | ) | - | (129,651,902 | ) | |||||||||||||||||||||||||||||||||||||||||
Total | - | - | - | - | 14,198,232 | (143,850,134 | ) | (129,651,902 | ) | - | - | - | - | - | (129,651,902 | ) | - | (129,651,902 | ) | |||||||||||||||||||||||||||||||||||||||||
Net income for the six months ended June 30, 2020 | - | - | - | - | - | 237,808,913 | 237,808,913 | - | - | - | - | - | 237,808,913 | 146,494 | 237,955,407 | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) for the six months ended June 30, 2020, net of income tax | - | - | - | - | - | - | - | (11,866,395 | ) | 2,672,959 | (42,749 | ) | - | (9,236,185 | ) | (9,236,185 | ) | 617 | (9,235,568 | ) | ||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) for the six months ended June 30, 2020 | - | - | - | - | - | 237,808,913 | 237,808,913 | (11,866,395 | ) | 2,672,959 | (42,749 | ) | - | (9,236,185 | ) | 228,572,728 | 147,111 | 228,719,839 | ||||||||||||||||||||||||||||||||||||||||||
Basis adjustment for gain on hedging instruments | - | - | - | - | - | - | - | - | - | 46,569 | - | 46,569 | 46,569 | - | 46,569 | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments to share of changes in equities of associates | - | - | 272 | - | - | - | - | - | - | - | 190 | 190 | 462 | - | 462 | |||||||||||||||||||||||||||||||||||||||||||||
Increase in non-controlling interests | - | - | - | - | - | - | - | - | - | - | - | - | - | 2,988 | 2,988 | |||||||||||||||||||||||||||||||||||||||||||||
BALANCE, JUNE 30, 2020 | 25,930,380 | $ | 259,303,805 | $ | 56,339,981 | $ | 311,146,899 | $ | 24,873,338 | $ | 1,105,471,753 | $ | 1,441,491,990 | $ | (38,737,795 | ) | $ | 1,980,000 | $ | - | $ | - | $ | (36,757,795 | ) | $ | 1,720,377,981 | $ | 835,401 | $ | 1,721,213,382 | |||||||||||||||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
6
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
Six Months Ended June 30 | ||||||||
2021 | 2020 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Income before income tax | $ | 304,455,464 | $ | 268,545,816 | ||||
Adjustments for: | ||||||||
Depreciation expense | 200,697,053 | 136,065,309 | ||||||
Amortization expense | 4,008,423 | 3,364,420 | ||||||
Expected credit losses recognized (reversal) on investments in debt instruments | (3,284 | ) | 188 | |||||
Finance costs | 1,906,494 | 939,709 | ||||||
Share of profits of associates | (2,439,000 | ) | (1,404,725 | ) | ||||
Interest income | (2,889,585 | ) | (5,467,431 | ) | ||||
Discounts on short-term loans | (283,707 | ) | - | |||||
Share-based compensation | 3,454 | 2,988 | ||||||
Loss (gain) on disposal or retirement of property, plant and equipment, net | 10,581 | (6,290 | ) | |||||
Loss on disposal or retirement of intangible assets, net | 1,228 | - | ||||||
Impairment loss on property, plant and equipment | 274,388 | - | ||||||
Loss on financial instruments at fair value through profit or loss, net | - | 3,434 | ||||||
Gain on disposal of investments in debt instruments at fair value through other comprehensive income, net | (169,334 | ) | (926,919 | ) | ||||
Unrealized (realized) gross profit on sales to associates | (26,894 | ) | 76,707 | |||||
Gain on foreign exchange, net | (7,684,209 | ) | (2,916,873 | ) | ||||
Dividend income | (348,146 | ) | (341,797 | ) | ||||
Gain on lease modification | - | (3 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Financial instruments at fair value through profit or loss | 3,895,618 | (53,699 | ) | |||||
Notes and accounts receivable, net | (31,995,213 | ) | (11,310,413 | ) | ||||
Receivables from related parties | (226,266 | ) | (29,621 | ) | ||||
Other receivables from related parties | (36,224 | ) | (10,813 | ) | ||||
Inventories | (33,085,279 | ) | (2,806,898 | ) | ||||
Other financial assets | (4,302,494 | ) | 1,618,067 | |||||
Other current assets | (835,489 | ) | (1,363,358 | ) | ||||
Accounts payable | 738,473 | (478,898 | ) | |||||
Payables to related parties | (603,562 | ) | (1,895 | ) | ||||
Salary and bonus payable | (2,922,328 | ) | (1,524,637 | ) | ||||
Accrued profit sharing bonus to employees and compensation to directors and supervisors | 16,647,894 | 16,379,603 | ||||||
Accrued expenses and other current liabilities | 25,071,000 | 8,356,817 | ||||||
Net defined benefit liability | (628,554 | ) | (801,304 | ) | ||||
Cash generated from operations | 469,230,502 | 405,907,484 | ||||||
Income taxes paid | (53,975,304 | ) | (32,543,083 | ) | ||||
Net cash generated by operating activities | 415,255,198 | 373,364,401 |
(Continued)
7
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
Six Months Ended June 30 | ||||||||
2021 | 2020 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Acquisitions of: | ||||||||
Financial assets at fair value through other comprehensive income | $ | (151,585,404 | ) | $ | (123,362,626 | ) | ||
Financial assets at amortized cost | - | (1,366,370 | ) | |||||
Property, plant and equipment | (414,999,829 | ) | (319,258,103 | ) | ||||
Intangible assets | (4,123,566 | ) | (8,487,562 | ) | ||||
Proceeds from disposal or redemption of: | ||||||||
Financial assets at fair value through other comprehensive income | 148,593,456 | 126,227,986 | ||||||
Financial assets at amortized cost | 6,581,175 | - | ||||||
Property, plant and equipment | 116,857 | 182,002 | ||||||
Proceeds from return of capital of investments in equity instruments at fair value through other comprehensive income | 62,837 | - | ||||||
Derecognition of hedging financial instruments | 143,672 | (339,255 | ) | |||||
Interest received | 3,040,052 | 5,959,214 | ||||||
Proceeds from government grants - property, plant and equipment | - | 475,703 | ||||||
Proceeds from government grants - others | - | 20,077 | ||||||
Other dividends received | 318,746 | 406,277 | ||||||
Dividends received from investments accounted for using equity method | 233,439 | 233,439 | ||||||
Increase in prepayments for leases | (1,200,000 | ) | - | |||||
Refundable deposits paid | (1,553,689 | ) | (120,582 | ) | ||||
Refundable deposits refunded | 369,842 | 686,368 | ||||||
Net cash used in investing activities | (414,002,412 | ) | (318,743,432 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Increase in short-term loans | 55,624,096 | 52,578,588 | ||||||
Proceeds from short-term bills payable | - | 7,485,303 | ||||||
Repayments of short-term bills payable | - | (1,000,000 | ) | |||||
Proceeds from issuance of bonds | 157,809,507 | 60,000,000 | ||||||
Repayment of bonds | (2,600,000 | ) | (21,600,000 | ) | ||||
Proceeds from long-term bank loans | 1,210,000 | - | ||||||
Payments for transaction costs attributable to the issuance of bonds | (278,805 | ) | (62,063 | ) | ||||
Repayment of the principal portion of lease liabilities | (985,283 | ) | (1,412,758 | ) | ||||
Interest paid | (1,046,295 | ) | (1,196,001 | ) | ||||
Guarantee deposits received | 151,226 | 21,177 | ||||||
Guarantee deposits refunded | (35,358 | ) | (7,702 | ) | ||||
Cash dividends | (129,651,902 | ) | (129,651,902 | ) | ||||
Disposal of ownership interests in subsidiaries (without losing control) | 9,451,798 | - | ||||||
Increase in non-controlling interests | 155 | - | ||||||
Net cash generated (used) in financing activities | 89,649,139 | (34,845,358 | ) |
(Continued)
8
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
Six Months Ended June 30 | ||||||||
2021 | 2020 | |||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | $ | (3,090,490 | ) | $ | (7,561,504 | ) | ||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 87,811,435 | 12,214,107 | ||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 660,170,647 | 455,399,336 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 747,982,082 | $ | 467,613,443 | ||||
The accompanying notes are an integral part of the consolidated financial statements.
(Concluded)
9
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2021 AND 2020
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
(Reviewed, Not Audited)
1. | GENERAL |
Taiwan Semiconductor Manufacturing Company Limited (TSMC), a Republic of China (R.O.C.) corporation, was incorporated on February 21, 1987. TSMC is a dedicated foundry in the semiconductor industry which engages mainly in the manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks.
On September 5, 1994, TSMC's shares were listed on the Taiwan Stock Exchange (TWSE). On October 8, 1997, TSMC listed some of its shares of stock on the New York Stock Exchange (NYSE) in the form of American Depositary Shares (ADSs).
The address of its registered office and principal place of business is No. 8, Li-Hsin Rd. 6, Hsinchu Science Park, Taiwan. The principal operating activities of TSMC's subsidiaries are described in Note 4.
2. | THE AUTHORIZATION OF FINANCIAL STATEMENTS |
The accompanying consolidated financial statements were reported to the Board of Directors and issued on August 10, 2021.
3. | APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS |
a. | Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, 'IFRSs') endorsed and issued into effect by the Financial Supervisory Commission (FSC) |
The initial application of the amendments to the IFRSs endorsed and issued into effect by the FSC did not have a significant effect on the accounting policies of TSMC and its subsidiaries (collectively as the 'Company').
b. | The IFRSs issued by International Accounting Standards Board (IASB) and endorsed by FSC with effective date starting 2022 |
New, Revised or Amended Standards and Interpretations |
Effective Date Issued | |
Annual Improvements to IFRS Standards 2018 - 2020 Cycle | January 1, 2022 | |
Amendments to IFRS 3 'Reference to the Conceptual Framework' | January 1, 2022 | |
Amendments to IAS 16 'Property, Plant and Equipment - Proceeds before Intended Use' | January 1, 2022 | |
Amendments to IAS 37 'Onerous Contracts-Cost of Fulfilling a Contract' | January 1, 2022 |
10
c. | The IFRSs issued by IASB, but not yet endorsed and issued into effect by the FSC |
New, Revised or Amended Standards and Interpretations |
Effective Date Issued | |
Amendments to IFRS 10 and IAS 28 'Sale or Contribution of Assets between an Investor and its Associate or Joint Venture' | To be determined by IASB | |
Amendments to IAS 1 'Classification of Liabilities as Current or Non-current' | January 1, 2023 | |
Amendments to IAS 1 'Disclosure of Accounting Policies' | January 1, 2023 | |
Amendments to IAS 8 'Definition of Accounting Estimates' | January 1, 2023 | |
Amendments to IAS 12 'Deferred Tax related to Assets and Liabilities arising from a Single Transaction' | January 1, 2023 |
As of the date the accompanying consolidated financial statements were issued, the Company continues in evaluating the impact on its financial position and financial performance from the initial adoption of the aforementioned standards or interpretations and related applicable period. The related impact will be disclosed when the Company completes its evaluation.
4. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Except for the following, the accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2020.
For the convenience of readers, the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the R.O.C. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language consolidated financial statements shall prevail.
Statement of Compliance
The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, 'Interim Financial Reporting,' endorsed and issued into effect by the FSC. The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements prepared under the IFRSs endorsed and issued into effect by the FSC (collectively, 'Taiwan-IFRSs').
Basis of Consolidation
The basis of preparation and the basis for the consolidated financial statements
The basis of preparation and the basis for the consolidated financial statements applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2020.
The subsidiaries in the consolidated financial statements
The detail information of the subsidiaries at the end of reporting period is as follows:
Establishment | Percentage of Ownership | |||||||||||||||||||
Name of Investor | Name of Investee | Main Businesses and Products | and Operating Location | June 30, 2021 | December 31, 2020 | June 30, 2020 | Note | |||||||||||||
TSMC | TSMC North America | Sales and marketing of integrated circuits and other semiconductor devices | San Jose, California, U.S.A. | 100% | 100% | 100% | - | |||||||||||||
TSMC Europe B.V. (TSMC Europe) | Customer service and supporting activities | Amsterdam, the Netherlands | 100% | 100% | 100% | a) | ||||||||||||||
TSMC Japan Limited (TSMC Japan) | Customer service and supporting activities | Yokohama, Japan | 100% | 100% | 100% | a) |
(Continued)
11
Establishment | Percentage of Ownership | |||||||||||||||||||
Name of Investor | Name of Investee | Main Businesses and Products | and Operating Location | June 30, 2021 | December 31, 2020 | June 30, 2020 | Note | |||||||||||||
TSMC | TSMC Design Technology Japan, Inc. (TSMC JDC) | Engineering support activities | Yokohama, Japan | 100% | 100% | 100% | a) | |||||||||||||
TSMC Japan 3DIC R&D Center, Inc. (TSMC 3DIC) | Engineering support activities | Yokohama, Japan | 100% | - | - | a), b) | ||||||||||||||
TSMC Korea Limited (TSMC Korea) | Customer service and supporting activities | Seoul, Korea | 100% | 100% | 100% | a) | ||||||||||||||
TSMC Partners, Ltd. (TSMC Partners) | Investing in companies involved in the semiconductor design and manufacturing, and other investment activities | Tortola, British Virgin Islands | 100% | 100% | 100% | a) | ||||||||||||||
TSMC Global, Ltd. (TSMC Global) | Investment activities | Tortola, British Virgin Islands | 100% | 100% | 100% | - | ||||||||||||||
TSMC China Company Limited (TSMC China) | Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices | Shanghai, China | 100% | 100% | 100% | - | ||||||||||||||
TSMC Nanjing Company Limited (TSMC Nanjing) | Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices | Nanjing, China | 100% | 100% | 100% | - | ||||||||||||||
VisEra Technologies Company Ltd. (VisEra Tech) | Research, design, development, manufacturing, sales, packaging and test of color filter | Hsin-Chu, Taiwan | 73% | 87% | 87% | c) | ||||||||||||||
TSMC Arizona Corporation (TSMC Arizona) | Manufacturing, sales and testing of integrated circuits and other semiconductor devices | Phoenix, Arizona, U.S.A. | 100% | 100% | - | a), d) | ||||||||||||||
VentureTech Alliance Fund II, L.P. (VTAF II) | Investing in technology start-up companies | Cayman Islands | 98% | 98% | 98% | a) | ||||||||||||||
VentureTech Alliance Fund III, L.P. (VTAF III) | Investing in technology start-up companies | Cayman Islands | 98% | 98% | 98% | a) | ||||||||||||||
Emerging Fund L.P. (Emerging Fund) | Investing in technology start-up companies | Cayman Islands | 99.9% | - | - | a), e) | ||||||||||||||
TSMC Partners | TSMC Development, Inc. (TSMC Development) | Investing in companies involved in semiconductor manufacturing | Delaware, U.S.A. | 100% | 100% | 100% | - | |||||||||||||
TSMC Technology, Inc. (TSMC Technology) | Engineering support activities | Delaware, U.S.A. | 100% | 100% | 100% | a) | ||||||||||||||
TSMC Design Technology Canada Inc. (TSMC Canada) | Engineering support activities | Ontario, Canada | 100% | 100% | 100% | a) | ||||||||||||||
InveStar Semiconductor Development Fund, Inc. (ISDF) | Investing in technology start-up companies | Cayman Islands | - | - | 97% | a), f) | ||||||||||||||
InveStar Semiconductor Development Fund, Inc. (II) LDC. (ISDF II) | Investing in technology start-up companies | Cayman Islands | - | - | 97% | a), f) | ||||||||||||||
TSMC Development | WaferTech, LLC (WaferTech) | Manufacturing, sales and testing of integrated circuits and other semiconductor devices | Washington, U.S.A. | 100% | 100% | 100% | - | |||||||||||||
VTAF III | Growth Fund Limited (Growth Fund) | Investing in technology start-up companies | Cayman Islands | 100% | 100% | 100% | a) |
(Concluded)
Note a: | This is an immaterial subsidiary for which the consolidated financial statements are neither reviewed nor audited by the Company's independent auditors. |
Note b: | TSMC 3DIC is established in March 2021. |
Note c: | To facilitate VisEra's IPO in Taiwan, 39,501 thousand common shares of VisEra at a price of NT$240 were sold by TSMC and an increase of NT$8,406,282 thousand in capital surplus was recognized. TSMC's shareholding in VisEra decreased from 87% to 73%. This disposal was accounted for as an equity transaction since the transaction did not change TSMC's control over VisEra. |
Note d: | TSMC Arizona is established in November 2020. Under the terms of the development agreement entered into between TSMC Arizona and the City of Phoenix, the City of Phoenix commits approximately US$205 million toward various public infrastructure projects in the area of the proposed manufacturing facility, conditioned on TSMC Arizona's achieving a minimum project scale with defined spending and job-creation thresholds. |
Note e: | Emerging fund is established in January 2021. |
Note f: | ISDF and ISDF II have completed the liquidation procedures in November 2020. |
Retirement Benefits
Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax. The interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the pre-tax income of the interim period.
12
5. | CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY |
The Company has considered the economic implications of COVID-19 on critical accounting estimates and will continue evaluating the impact on its financial position and financial performance as a result of the pandemic. In addition, the same critical accounting judgments and key sources of estimates and uncertainty have been followed in these consolidated financial statements as were applied in the preparation of the Company's consolidated financial statements for the year ended December 31, 2020.
6. | CASH AND CASH EQUIVALENTS |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Cash and deposits in banks | $ | 745,313,161 | $ | 653,580,548 | $ | 461,491,815 | ||||||
Government bonds | 2,668,921 | 3,716,119 | 2,545,192 | |||||||||
Repurchase agreements | - | 1,750,443 | 1,665,004 | |||||||||
Commercial paper | - | 1,123,537 | 1,911,432 | |||||||||
$ | 747,982,082 | $ | 660,170,647 | $ | 467,613,443 |
Deposits in banks consisted of highly liquid time deposits that were readily convertible to known amounts of cash and were subject to an insignificant risk of changes in value.
7. | FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Financial assets | ||||||||||||
Mandatorily measured at FVTPL | ||||||||||||
Forward exchange contracts | $ | 58,325 | $ | 2,259,412 | $ | 754,789 | ||||||
Agency mortgage-backed securities | - | - | 33,737 | |||||||||
$ | 58,325 | $ | 2,259,412 | $ | 788,526 | |||||||
Financial liabilities | ||||||||||||
Held for trading | ||||||||||||
Forward exchange contracts | $ | 1,828,338 | $ | 94,128 | $ | 1,543,265 |
The Company entered into forward exchange contracts to manage exposures due to fluctuations of foreign exchange rates. These forward exchange contracts did not meet the criteria for hedge accounting. Therefore, the Company did not apply hedge accounting treatment for these forward exchange contracts.
13
Outstanding forward exchange contracts consisted of the following:
Contract Amount | ||||||
Maturity Date | (In Thousands) | |||||
June 30, 2021 | ||||||
Sell NT$ | July 2021 to September 2021 | NT$ | 153,952,400 | |||
Sell US$ | July 2021 to September 2021 | US$ | 1,738,658 | |||
December 31, 2020 | ||||||
Sell NT$ | January 2021 to March 2021 | NT$ | 144,697,981 | |||
Sell US$ | January 2021 to March 2021 | US$ | 1,176,858 | |||
June 30, 2020 | ||||||
Sell NT$ | July 2020 to December 2020 | NT$ | 205,770,311 | |||
Sell US$ | July 2020 to September 2020 | US$ | 574,977 |
8. | FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Investments in debt instruments at FVTOCI | ||||||||||||
Corporate bonds | $ | 58,907,886 | $ | 56,593,623 | $ | 59,747,143 | ||||||
Agency bonds/Agency mortgage-backed securities | 32,188,798 | 43,977,113 | 48,777,759 | |||||||||
Government bonds | 24,121,903 | 13,459,503 | 10,054,530 | |||||||||
Asset-backed securities | 7,523,443 | 8,368,264 | 10,824,156 | |||||||||
122,742,030 | 122,398,503 | 129,403,588 | ||||||||||
Investments in equity instruments at FVTOCI | ||||||||||||
Non-publicly traded equity investments | 5,389,958 | 4,514,940 | 4,300,519 | |||||||||
Publicly traded stocks | 52,499 | 49,950 | - | |||||||||
5,442,457 | 4,564,890 | 4,300,519 | ||||||||||
$ | 128,184,487 | $ | 126,963,393 | $ | 133,704,107 | |||||||
Current | $ | 122,794,529 | $ | 122,448,453 | $ | 129,403,588 | ||||||
Noncurrent | 5,389,958 | 4,514,940 | 4,300,519 | |||||||||
$ | 128,184,487 | $ | 126,963,393 | $ | 133,704,107 |
These investments in equity instruments are held for medium to long-term purposes and therefore are accounted for as FVTOCI. For dividends recognized from these investments, please refer to consolidated statements of cash flows. All of the dividends are from investments held at the end of the reporting period.
As of June 30, 2021 and 2020, the cumulative loss allowance for expected credit loss of NT$33,850 thousand and NT$34,670 thousand was recognized under investments in debt instruments at FVTOCI, respectively. Refer to Note 30 for information relating to the credit risk management and expected credit loss.
14
9. | FINANCIAL ASSETS AT AMORTIZED COST |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Corporate bonds | $ | 4,338,802 | $ | 10,977,298 | $ | 8,854,016 | ||||||
Less: Allowance for impairment loss | (2,166 | ) | (7,099 | ) | (3,310 | ) | ||||||
$ | 4,336,636 | $ | 10,970,199 | $ | 8,850,706 | |||||||
Current | $ | - | $ | 6,597,992 | $ | 7,210,148 | ||||||
Noncurrent | 4,336,636 | 4,372,207 | 1,640,558 | |||||||||
$ | 4,336,636 | $ | 10,970,199 | $ | 8,850,706 |
Refer to Note 30 for information relating to credit risk management and expected credit loss for financial assets at amortized cost.
10. | HEDGING FINANCIAL INSTRUMENTS |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Financial assets - current | ||||||||||||
Fair value hedges | ||||||||||||
Interest rate futures contracts | $ | 310 | $ | 47 | $ | - | ||||||
Financial liabilities - current | ||||||||||||
Fair value hedges | ||||||||||||
Interest rate futures contracts | $ | 10,216 | $ | 1,169 | $ | 14,839 |
Fair value hedge
The Company entered into interest rate futures contracts, which are used to partially hedge against the fair value changes caused by interest rate fluctuation in the Company's fixed income investments. The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%.
On the basis of economic relationships, the value of the interest rate futures contracts and the value of the hedged financial assets will change in opposite directions in response to movements in interest rates.
The main source of hedge ineffectiveness in these hedging relationships is the credit risk of the hedged financial assets, which is not reflected in the fair value of the interest rate futures contracts. No other sources of ineffectiveness emerged from these hedging relationships during the hedging period. Amount of hedge ineffectiveness recognized in profit or loss is classified under other gains and losses, net.
15
The following tables summarize the information relating to the hedges of interest rate risk.
June 30, 2021
Hedging Instruments | Contract Amount (US$ in Thousands) | Maturity | ||||
Interest rate futures contracts - US Treasury futures | US$ | 74,200 | September 2021 |
Hedged Items | Asset Carrying Amount | Accumulated Amount of Fair Value Hedge Adjustments | ||||||
Financial assets at FVTOCI | $ | 5,707,978 | $ | 9,906 |
December 31, 2020
Hedging Instruments | Contract Amount (US$ in Thousands) | Maturity | ||||
Interest rate futures contracts - US Treasury futures | US$ | 88,700 | March 2021 |
Hedged Items | Asset Carrying Amount | Accumulated Amount of Fair Value Hedge Adjustments | ||||||
Financial assets at FVTOCI | $ | 6,198,683 | $ | 1,122 |
June 30, 2020
Hedging Instruments | Contract Amount (US$ in Thousands) | Maturity | ||||
Interest rate futures contracts - US Treasury futures | US$ | 123,900 | September 2020 |
Hedged Items | Asset Carrying Amount | Accumulated Amount of Fair Value Hedge Adjustments | ||||||
Financial assets at FVTOCI | $ | 8,786,706 | $ | 14,839 |
The effect for the six months ended June 30, 2021 and 2020 is detailed below:
Hedging Instruments/Hedged Items | Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness | |||||||
Six Months Ended June 30 | ||||||||
2021 | 2020 | |||||||
Hedging Instruments | ||||||||
Interest rate futures contracts - US Treasury futures | $ | 134,956 | $ | (365,368 | ) | |||
Hedged Items | ||||||||
Financial assets at FVTOCI | (134,956 | ) | 365,368 | |||||
$ | - | $ | - |
16
Cash flow hedge
The Company entered into forward exchange contracts to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions (capital expenditures). The hedge ratio is adjusted in response to the changes in the financial market and capped at 100%. The forward exchange contracts have maturities of 12 months or less.
On the basis of economic relationships, the Company expects that the value of forward exchange contracts and the value of hedged transactions will change in opposite directions in response to movements in foreign exchange rates.
The main source of hedge ineffectiveness in these hedging relationships is driven by the effect of the counterparty's own credit risk on the fair value of forward exchange contracts. No other sources of ineffectiveness emerged from these hedging relationships. For the six months ended June 30, 2021 and 2020, refer to Note 21(d) for gain or loss arising from changes in the fair value of hedging instruments and the amount transferred to initial carrying amount of hedged items.
The effect for the six months ended June 30, 2021 and 2020 is detailed below:
Hedging Instruments/Hedged Items |
Increase Ineffectiveness | |||||||
Six Months Ended June 30 | ||||||||
2021 | 2020 | |||||||
Hedging Instruments | ||||||||
Forward exchange contracts | $ | (41,416 | ) | $ | (42,749 | ) | ||
Hedged Items | ||||||||
Forecast transaction (capital expenditures) | $ | 41,416 | $ | 42,749 |
11. | NOTES AND ACCOUNTS RECEIVABLE, NET |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
At amortized cost | ||||||||||||
Notes and accounts receivable | $ | 174,586,830 | $ | 142,771,597 | $ | 145,152,748 | ||||||
Less: Loss allowance | (291,142 | ) | (246,626 | ) | (340,179 | ) | ||||||
174,295,688 | 142,524,971 | 144,812,569 | ||||||||||
At FVTOCI | 3,179,805 | 2,955,301 | 3,895,486 | |||||||||
$ | 177,475,493 | $ | 145,480,272 | $ | 148,708,055 |
The Company signed a contract with the bank to sell certain accounts receivable without recourse and transaction cost required. These accounts receivable are classified as at FVTOCI because they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
17
In principle, the payment term granted to customers is due 30 days from the invoice date or 30 days from the end of the month when the invoice is issued. Aside from recognizing impairment loss for credit-impaired accounts receivable, the Company recognizes loss allowance based on the expected credit loss ratio of customers by different risk levels with consideration of factors of historical loss ratios and customers' financial conditions, competitiveness and business outlook. For accounts receivable past due over 90 days without collaterals or guarantees, the Company recognizes loss allowance at full amount.
Aging analysis of notes and accounts receivable
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Not past due | $ | 169,954,907 | $ | 140,933,622 | $ | 141,251,503 | ||||||
Past due | ||||||||||||
Past due within 30 days | 7,811,444 | 4,784,425 | 7,765,468 | |||||||||
Past due 31-60 days | 220 | 8,708 | 27,860 | |||||||||
Past due 61-120 days | 64 | 48 | 1,767 | |||||||||
Past due over 121 days | - | 95 | 1,636 | |||||||||
Less: Loss allowance | (291,142 | ) | (246,626 | ) | (340,179 | ) | ||||||
$ | 177,475,493 | $ | 145,480,272 | $ | 148,708,055 |
All of the Company's accounts receivable classified as at FVTOCI were not past due.
Movements of the loss allowance for accounts receivable
Six Months Ended June 30 | ||||||||
2021 | 2020 | |||||||
Balance, beginning of period | $ | 246,626 | $ | 325,325 | ||||
Provision | 44,524 | 15,157 | ||||||
Effect of exchange rate changes | (8 | ) | (303 | ) | ||||
Balance, end of period | $ | 291,142 | $ | 340,179 |
For the six months ended June 30, 2021 and 2020, the changes in loss allowance were mainly due to the variations in the balance of accounts receivable of different risk levels.
12. | INVENTORIES |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Finished goods | $ | 21,358,612 | $ | 21,705,625 | $ | 6,765,349 | ||||||
Work in process | 126,550,888 | 91,672,870 | 56,598,373 | |||||||||
Raw materials | 12,991,522 | 14,715,963 | 15,050,270 | |||||||||
Supplies and spare parts | 9,537,664 | 9,258,949 | 7,374,102 | |||||||||
$ | 170,438,686 | $ | 137,353,407 | $ | 85,788,094 |
18
Write-down of inventories to net realizable value and reversal of write-down of inventories resulting from the increase in net realizable value were included in the cost of revenue. The amounts are illustrated below:
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Inventory losses (reversal of write-down of inventories) | $ | (469,648 | ) | $ | 457,684 | $ | (946,047 | ) | $ | 273,683 |
13. | INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD |
Associates consisted of the following:
Place of | Carrying Amount | % of Ownership and Voting Rights Held by the Company | ||||||||||||||||||||||||||
Name of Associate | Principal Activities | Incorporation and Operation | June 30, 2021 | December 31, 2020 | June 30, 2020 | June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||||||||||||
Vanguard International Semiconductor Corporation (VIS) | Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks | Hsinchu, Taiwan | $ | 8,702,574 | $ | 9,029,890 | $ | 8,200,184 | 28% | 28% | 28% | |||||||||||||||||
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC) | Manufacturing and sales of integrated circuits and other semiconductor devices | Singapore | 6,409,172 | 5,900,245 | 5,759,008 | 39% | 39% | 39% | ||||||||||||||||||||
Xintec Inc. (Xintec) | Wafer level chip size packaging and wafer level post passivation interconnection service | Taoyuan, Taiwan | 2,898,577 | 2,554,123 | 1,968,939 | 41% | 41% | 41% | ||||||||||||||||||||
Global Unichip Corporation (GUC) | Researching, developing, manufacturing, testing and marketing of integrated circuits | Hsinchu, Taiwan | 1,300,841 | 1,328,620 | 1,018,510 | 35% | 35% | 35% | ||||||||||||||||||||
Mutual-Pak Technology Co., Ltd. (Mutual-Pak) | Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID | New Taipei, Taiwan | 25,714 | 28,183 | 29,107 | 28% | 28% | 28% | ||||||||||||||||||||
$ | 19,336,878 | $ | 18,841,061 | $ | 16,975,748 |
The market prices of the associates' ownership held by the Company in publicly traded stocks calculated by the closing price at the end of the reporting period are summarized as follows. The closing price represents the quoted price in active markets, the level 1 fair value measurement.
Name of Associate | June 30, 2021 | December 31, 2020 | June 30, 2020 | |||||||||
VIS | $ | 54,778,372 | $ | 53,849,925 | $ | 36,116,588 | ||||||
GUC | $ | 19,282,086 | $ | 15,827,184 | $ | 11,788,684 | ||||||
Xintec | $ | 18,806,645 | $ | 20,420,233 | $ | 12,463,576 |
14. | PROPERTY, PLANT AND EQUIPMENT |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Assets used by the Company | $ | 1,722,112,116 | $ | 1,554,585,938 | $ | 1,493,522,951 | ||||||
Assets subject to operating leases | 567,017 | 1,003,182 | 37,999 | |||||||||
$ | 1,722,679,133 | $ | 1,555,589,120 | $ | 1,493,560,950 |
a. | Assets used by the Company |
19
Land and Land Improvements | Buildings | Machinery and Equipment | Office Equipment | Equipment under Installation and Construction in Progress | Total | |||||||||||||||||||
Cost | ||||||||||||||||||||||||
Balance at January 1, 2021 | $ | 3,942,625 | $ | 522,447,474 | $ | 3,607,005,732 | $ | 68,862,648 | $ | 223,965,360 | $ | 4,426,223,839 | ||||||||||||
Additions | 2,587,183 | 34,524,307 | 217,478,898 | 3,799,491 | 108,588,607 | 366,978,486 | ||||||||||||||||||
Disposals or retirements | - | (19,921 | ) | (6,882,015 | ) | (124,755 | ) | - | (7,026,691 | ) | ||||||||||||||
Transfers from assets subject to operating leases | - | 35,478 | 656,218 | - | - | 691,696 | ||||||||||||||||||
Transfers to assets subject to operating leases | - | - | (244,579 | ) | - | - | (244,579 | ) | ||||||||||||||||
Effect of exchange rate changes | (16,125 | ) | 86,018 | 672,170 | (7,391 | ) | (81,621 | ) | 653,051 | |||||||||||||||
Balance at June 30, 2021 | $ | 6,513,683 | $ | 557,073,356 | $ | 3,818,686,424 | $ | 72,529,993 | $ | 332,472,346 | $ | 4,787,275,802 | ||||||||||||
Accumulated depreciation and impairment | ||||||||||||||||||||||||
Balance at January 1, 2021 | $ | 506,129 | $ | 271,799,471 | $ | 2,555,529,969 | $ | 43,802,332 | $ | - | $ | 2,871,637,901 | ||||||||||||
Additions | 667 | 16,942,317 | 178,535,517 | 3,863,440 | - | 199,341,941 | ||||||||||||||||||
Disposals or retirements | - | (17,118 | ) | (6,695,391 | ) | (123,997 | ) | - | (6,836,506 | ) | ||||||||||||||
Transfers from assets subject to operating leases | - | 15,646 | 197,639 | - | - | 213,285 | ||||||||||||||||||
Transfers to assets subject to operating leases | - | - | (68,279 | ) | - | - | (68,279 | ) | ||||||||||||||||
Impairment | - | - | 274,388 | - | - | 274,388 | ||||||||||||||||||
Effect of exchange rate changes | (3,750 | ) | 21,534 | 590,342 | (7,170 | ) | - | 600,956 | ||||||||||||||||
Balance at June 30, 2021 | $ | 503,046 | $ | 288,761,850 | $ | 2,728,364,185 | $ | 47,534,605 | $ | - | $ | 3,065,163,686 | ||||||||||||
Carrying amounts at | $ | 3,436,496 | $ | 250,648,003 | $ | 1,051,475,763 | $ | 25,060,316 | $ | 223,965,360 | $ | 1,554,585,938 | ||||||||||||
Carrying amounts at June 30, 2021 | $ | 6,010,637 | $ | 268,311,506 | $ | 1,090,322,239 | $ | 24,995,388 | $ | 332,472,346 | $ | 1,722,112,116 | ||||||||||||
Cost | ||||||||||||||||||||||||
Balance at January 1, 2020 | $ | 3,991,798 | $ | 438,075,063 | $ | 2,886,622,968 | $ | 54,611,364 | $ | 528,295,086 | $ | 3,911,596,279 | ||||||||||||
Additions (deductions) | - | 66,843,789 | 575,722,091 | 9,268,143 | (374,596,112 | ) | 277,237,911 | |||||||||||||||||
Disposals or retirements | - | (19,785 | ) | (3,060,141 | ) | (114,216 | ) | - | (3,194,142 | ) | ||||||||||||||
Transfers from assets subject to operating leases | - | 22,323 | - | - | - | 22,323 | ||||||||||||||||||
Effect of exchange rate changes | (14,536 | ) | (1,126,851 | ) | (3,760,480 | ) | (125,392 | ) | (140,092 | ) | (5,167,351 | ) | ||||||||||||
Balance at June 30, 2020 | $ | 3,977,262 | $ | 503,794,539 | $ | 3,455,524,438 | $ | 63,639,899 | $ | 153,558,882 | $ | 4,180,495,020 | ||||||||||||
Accumulated depreciation and impairment | ||||||||||||||||||||||||
Balance at January 1, 2020 | $ | 538,690 | $ | 243,059,390 | $ | 2,278,265,943 | $ | 37,418,395 | $ | - | $ | 2,559,282,418 | ||||||||||||
Additions | 791 | 13,167,675 | 118,235,125 | 3,172,208 | - | 134,575,799 | ||||||||||||||||||
Disposals or retirements | - | (15,805 | ) | (2,891,975 | ) | (113,295 | ) | - | (3,021,075 | ) | ||||||||||||||
Transfers from assets subject to operating leases | - | 8,196 | - | - | - | 8,196 | ||||||||||||||||||
Effect of exchange rate changes | (10,057 | ) | (612,952 | ) | (3,175,406 | ) | (74,854 | ) | - | (3,873,269 | ) | |||||||||||||
Balance at June 30, 2020 | $ | 529,424 | $ | 255,606,504 | $ | 2,390,433,687 | $ | 40,402,454 | $ | - | $ | 2,686,972,069 | ||||||||||||
Carrying amounts at | $ | 3,453,108 | $ | 195,015,673 | $ | 608,357,025 | $ | 17,192,969 | $ | 528,295,086 | $ | 1,352,313,861 | ||||||||||||
Carrying amounts at June 30, 2020 | $ | 3,447,838 | $ | 248,188,035 | $ | 1,065,090,751 | $ | 23,237,445 | $ | 153,558,882 | $ | 1,493,522,951 |
The significant part of the Company's buildings includes main plants, mechanical and electrical power equipment and clean rooms, and the related depreciation is calculated using the estimated useful lives of 20 years, 10 years and 10 years, respectively.
In the first quarter of 2021, the Company recognized an impairment loss of NT$274,388 thousand for certain machinery and equipment that was assessed to have no future use, and the recoverable amount of certain machinery and equipment was nil. Such impairment loss was recognized in other operating income and expenses.
b. | Assets subject to operating leases |
20
Buildings | Machinery and Equipment | Total | ||||||||||
Cost | ||||||||||||
Balance at January 1, 2021 | $ | 227,529 | $ | 1,199,011 | $ | 1,426,540 | ||||||
Transfers to assets used by the Company | (35,478 | ) | (656,218 | ) | (691,696 | ) | ||||||
Transfers from assets used by the Company | - | 244,579 | 244,579 | |||||||||
Balance at June 30, 2021 | $ | 192,051 | $ | 787,372 | $ | 979,423 | ||||||
Accumulated depreciation | ||||||||||||
Balance at January 1, 2021 | $ | 201,366 | $ | 221,992 | $ | 423,358 | ||||||
Additions | 632 | 133,422 | 134,054 | |||||||||
Transfers to assets used by the Company | (15,646 | ) | (197,639 | ) | (213,285 | ) | ||||||
Transfers from assets used by the Company | - | 68,279 | 68,279 | |||||||||
Balance at June 30, 2021 | $ | 186,352 | $ | 226,054 | $ | 412,406 | ||||||
Carrying amounts at January 1, 2021 | $ | 26,163 | $ | 977,019 | $ | 1,003,182 | ||||||
Carrying amounts at June 30, 2021 | $ | 5,699 | $ | 561,318 | $ | 567,017 | ||||||
Cost | ||||||||||||
Balance at January 1, 2020 | $ | 562,610 | $ | - | $ | 562,610 | ||||||
Transfers to assets used by the Company | (22,323 | ) | - | (22,323 | ) | |||||||
Balance at June 30, 2020 | $ | 540,287 | $ | - | $ | 540,287 | ||||||
Accumulated depreciation | ||||||||||||
Balance at January 1, 2020 | $ | 499,066 | $ | - | $ | 499,066 | ||||||
Additions | 11,418 | - | 11,418 | |||||||||
Transfers to assets used by the Company | (8,196 | ) | - | (8,196 | ) | |||||||
Balance at June 30, 2020 | $ | 502,288 | $ | - | $ | 502,288 | ||||||
Carrying amounts at January 1, 2020 | $ | 63,544 | $ | - | $ | 63,544 | ||||||
Carrying amounts at June 30, 2020 | $ | 37,999 | $ | - | $ | 37,999 |
Operating leases relate to leases of buildings and leases of machinery and equipment with lease terms ranging between approximately 1 to 5 years. The lessees do not have purchase options to acquire the assets at the expiration of the lease periods.
The maturity analysis of operating lease payments receivable from the buildings and machinery and equipment is as follows:
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Year 1 | $ | 22,011 | $ | 149,120 | $ | 17,612 | ||||||
Year 2 | 8,496 | 16,992 | 16,992 | |||||||||
Year 3 | - | - | 8,496 | |||||||||
$ | 30,507 | $ | 166,112 | $ | 43,100 |
15. | LEASE ARRANGEMENTS |
21
a. | Right-of-use assets |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Carrying amounts | ||||||||||||
Land | $ | 30,256,923 | $ | 25,141,908 | $ | 18,459,364 | ||||||
Buildings | 2,323,733 | 2,544,742 | 2,346,438 | |||||||||
Machinery and equipment | 3,905 | - | 193,952 | |||||||||
Office equipment | 34,711 | 41,732 | 37,140 | |||||||||
$ | 32,619,272 | $ | 27,728,382 | $ | 21,036,894 |
Six Months Ended June 30 | ||||||||
2021 | 2020 | |||||||
Additions to right-of-use assets | $ | 6,220,076 | $ | 5,510,956 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Depreciation of right-of-use assets | ||||||||||||||||
Land | $ | 454,014 | $ | 313,083 | $ | 899,416 | $ | 605,839 | ||||||||
Buildings | 157,499 | 142,335 | 310,629 | 278,167 | ||||||||||||
Machinery and equipment | 135 | 290,928 | 135 | 581,857 | ||||||||||||
Office equipment | 5,367 | 5,980 | 10,878 | 12,229 | ||||||||||||
$ | 617,015 | $ | 752,326 | $ | 1,221,058 | $ | 1,478,092 | |||||||||
Income from subleasing right-of-use assets (classified under other operating income and expenses, net) | $ | 20,248 | $ | 19,011 | $ | 40,674 | $ | 37,923 |
b. | Lease liabilities |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Carrying amounts | ||||||||||||
Current portion (classified under accrued expenses and other current liabilities) | $ | 1,861,281 | $ | 1,828,025 | $ | 1,984,818 | ||||||
Noncurrent portion | 21,030,441 | 20,560,649 | 19,164,873 | |||||||||
$ | 22,891,722 | $ | 22,388,674 | $ | 21,149,691 |
Ranges of discount rates for lease liabilities are as follows:
22
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Land | 0.39%-2.14% | 0.48%-2.14% | 0.48%-2.14% | |||||||||
Buildings | 0.39%-3.88% | 0.54%-3.88% | 0.54%-3.88% | |||||||||
Machinery and equipment | 0.71% | - | 3.24% | |||||||||
Office equipment | 0.28%-3.88% | 0.28%-3.88% | 0.43%-3.88% |
c. | Material terms of right-of-use assets |
The Company leases land and buildings mainly for the use of plants and offices with lease terms of 1 to 36 years. The lease contracts for land located in the R.O.C. specify that lease payments will be adjusted every 2 years on the basis of changes in announced land value prices. The Company does not have purchase options to acquire the leasehold land and buildings at the end of the lease terms.
The Company leases machinery and equipment for use in operation with lease terms of 2 years. The Company has purchase options to acquire certain leasehold machinery and equipment at the end of the lease terms. As of September 30, 2020, the aforementioned lease contract with purchase option has expired.
d. | Subleases |
The Company subleases the right to use its buildings and machinery and equipment under operating leases with lease terms of 1 to 6 years.
The maturity analysis of lease payments receivable under operating subleases is as follows:
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Year 1 | $ | 64,991 | $ | 144,099 | $ | 52,211 |
e. | Other lease information |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Expenses relating to short-term leases | $ | 1,309,473 | $ | 786,725 | $ | 2,588,882 | $ | 1,754,838 | ||||||||
Expenses relating to variable lease payments not included in the measurement of lease liabilities | $ | 33,445 | $ | 49,309 | $ | 101,017 | $ | 97,154 |
Six Months Ended June 30 | ||||||||
2021 | 2020 | |||||||
Total cash outflow for leases | $ | 3,660,126 | $ | 3,568,815 |
23
16.INTANGIBLE ASSETS
Goodwill | Technology License Fees | Software and System Design Costs | Patent and Others | Total | ||||||||||||||||
Cost | ||||||||||||||||||||
Balance at January 1, 2021 | $ | 5,436,602 | $ | 22,161,712 | $ | 36,238,967 | $ | 11,277,701 | $ | 75,114,982 | ||||||||||
Additions | - | 1,004,974 | 3,708,226 | 90,702 | 4,803,902 | |||||||||||||||
Disposals or retirements | - | - | (13,779 | ) | - | (13,779 | ) | |||||||||||||
Effect of exchange rate changes | (28,244 | ) | 1,071 | 2,079 | 185 | (24,909 | ) | |||||||||||||
Balance at June 30, 2021 | $ | 5,408,358 | $ | 23,167,757 | $ | 39,935,493 | $ | 11,368,588 | $ | 79,880,196 | ||||||||||
Accumulated amortization and impairment | ||||||||||||||||||||
Balance at January 1, 2021 | $ | - | $ | 12,226,066 | $ | 30,111,759 | $ | 7,008,978 | $ | 49,346,803 | ||||||||||
Additions | - | 1,334,121 | 2,068,523 | 605,779 | 4,008,423 | |||||||||||||||
Disposals or retirements | - | - | (12,551 | ) | - | (12,551 | ) | |||||||||||||
Effect of exchange rate changes | - | 1,071 | 1,266 | 141 | 2,478 | |||||||||||||||
Balance at June 30, 2021 | $ | - | $ | 13,561,258 | $ | 32,168,997 | $ | 7,614,898 | $ | 53,345,153 | ||||||||||
Carrying amounts at January 1, 2021 | $ | 5,436,602 | $ | 9,935,646 | $ | 6,127,208 | $ | 4,268,723 | $ | 25,768,179 | ||||||||||
Carrying amounts at June 30, 2021 | $ | 5,408,358 | $ | 9,606,499 | $ | 7,766,496 | $ | 3,753,690 | $ | 26,535,043 |
Cost | ||||||||||||||||||||
Balance at January 1, 2020 | $ | 5,693,376 | $ | 15,854,951 | $ | 33,024,010 | $ | 8,302,996 | $ | 62,875,333 | ||||||||||
Additions | - | 6,035,171 | 1,292,039 | 2,863,032 | 10,190,242 | |||||||||||||||
Disposals or retirements | - | - | (48,828 | ) | - | (48,828 | ) | |||||||||||||
Effect of exchange rate changes | (75,905 | ) | (3,352 | ) | (17,300 | ) | (1,334 | ) | (97,891 | ) | ||||||||||
Balance at June 30, 2020 | $ | 5,617,471 | $ | 21,886,770 | $ | 34,249,921 | $ | 11,164,694 | $ | 72,918,856 | ||||||||||
Accumulated amortization and impairment | ||||||||||||||||||||
Balance at January 1, 2020 | $ | - | $ | 9,823,770 | $ | 26,502,067 | $ | 5,896,468 | $ | 42,222,305 | ||||||||||
Additions | - | 1,021,932 | 1,856,243 | 486,245 | 3,364,420 | |||||||||||||||
Disposals or retirements | - | - | (48,828 | ) | - | (48,828 | ) | |||||||||||||
Effect of exchange rate changes | - | (3,352 | ) | (10,321 | ) | (968 | ) | (14,641 | ) | |||||||||||
Balance at June 30, 2020 | $ | - | $ | 10,842,350 | $ | 28,299,161 | $ | 6,381,745 | $ | 45,523,256 | ||||||||||
Carrying amounts at January 1, 2020 | $ | 5,693,376 | $ | 6,031,181 | $ | 6,521,943 | $ | 2,406,528 | $ | 20,653,028 | ||||||||||
Carrying amounts at June 30, 2020 | $ | 5,617,471 | $ | 11,044,420 | $ | 5,950,760 | $ | 4,782,949 | $ | 27,395,600 |
The Company's goodwill has been tested for impairment at the end of the annual reporting period and the recoverable amount is determined based on the value in use. The value in use was calculated based on the cash flow forecast from the financial budgets covering the future five-year period, and the Company used annual discount rate of 8.0% in its test of impairment as of December 31, 2020 to reflect the relevant specific risk in the cash-generating unit.
17. | SHORT-TERM LOANS |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Unsecured loans | ||||||||||||
Amount | $ | 139,380,910 | $ | 88,559,026 | $ | 169,546,950 | ||||||
Loan content | ||||||||||||
US$ (in thousands) | $ | - | $ | 200,000 | $ | 1,642,000 | ||||||
EUR (in thousands) | 4,195,819 | 2,398,000 | 3,579,000 | |||||||||
JPY (in thousands) | - | - | 10,000,000 | |||||||||
Annual interest rate | (0.25)% - 0.01% | (0.54)% - 0.33% | (0.15)% - 0.83% | |||||||||
Maturity date | Due by September 2021 | Due by February 2021 | Due by September 2020 |
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18. | SHORT-TERM BILLS PAYABLE |
June 30, 2020 | ||||||||
Commercial papers | $ | 6,500,000 | ||||||
Less: Discounts on commercial papers | (6,602 | ) | ||||||
$ | 6,493,398 | |||||||
Annual interest rate | 0.45%-0.52% |
19. | BONDS PAYABLE |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Domestic unsecured bonds | $ | 230,389,000 | $ | 173,197,000 | $ | 95,300,000 | ||||||
Overseas unsecured bonds | 181,278,500 | 84,291,000 | - | |||||||||
Less: Discounts on bonds payable | (1,202,643 | ) | (782,916 | ) | (60,319 | ) | ||||||
Less: Current portion | - | (2,600,000 | ) | (12,800,000 | ) | |||||||
$ | 410,464,857 | $ | 254,105,084 | $ | 82,439,681 |
The Company issued domestic unsecured bonds for the six months ended June 30, 2021, the major terms are as follows:
Issuance | Tranche | Issuance Period | Total Amount | Coupon Rate | Repayment and Interest Payment | |||||||||
NT$ unsecured bonds | ||||||||||||||
110-1 | A | March 2021 to March 2026 | $ | 4,800,000 | 0.50% | Bullet repayment; interest payable annually | ||||||||
B | March 2021 to March 2028 | 11,400,000 | 0.55% | The same as above | ||||||||||
C | March 2021 to March 2031 | 4,900,000 | 0.60% | The same as above | ||||||||||
110-2 | A | May 2021 to May 2026 | 5,200,000 | 0.50% | The same as above | |||||||||
B | May 2021 to May 2028 | 8,400,000 | 0.58% | The same as above | ||||||||||
C | May 2021 to May 2031 | 5,600,000 | 0.65% | The same as above | ||||||||||
110-3 | A | June 2021 to June 2026 | 6,900,000 | 0.52% | The same as above | |||||||||
B | June 2021 to June 2028 | 7,900,000 | 0.58% | The same as above | ||||||||||
C | June 2021 to June 2031 | 4,900,000 | 0.65% | The same as above |
25
The major terms of overseas unsecured bonds are as follows:
Issuance Period | Total Amount (US$ in Thousands) | Coupon Rate | Repayment and Interest Payment | |||||||
September 2020 to September 2025 | US$ | 1,000,000 | 0.75% | Bullet repayment (callable at any time, in whole or in part, at the relevant redemption price according to relevant agreements); interest payable semi-annually | ||||||
September 2020 to September 2027 | 750,000 | 1.00% | The same as above | |||||||
September 2020 to September 2030 | 1,250,000 | 1.375% | The same as above | |||||||
April 2021 to April 2026 | 1,100,000 | 1.25% | The same as above | |||||||
April 2021 to April 2028 | 900,000 | 1.75% | The same as above | |||||||
April 2021 to April 2031 | 1,500,000 | 2.25% | The same as above |
20. | LONG-TERM BANK LOANS |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Unsecured loans | $ | 3,210,000 | $ | 2,000,000 | $ | - | ||||||
Less: Discounts on government grants | (38,669 | ) | (32,389 | ) | - | |||||||
$ | 3,171,331 | $ | 1,967,611 | $ | - | |||||||
Loan content | ||||||||||||
Annual interest rate | 0.4%-0.6% | 0.4% | - | |||||||||
Maturity date | Due by March 2026 | Due by September 2025 | - |
The long-term bank loans of the Company are with preferential interest rates subsidized by the government, and the loans are used to fund capital expenditure qualifying for the subsidy.
21. | EQUITY |
a. | Capital stock |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Authorized shares (in thousands) | 28,050,000 | 28,050,000 | 28,050,000 | |||||||||
Authorized capital | $ | 280,500,000 | $ | 280,500,000 | $ | 280,500,000 | ||||||
Issued and paid shares (in thousands) | 25,930,380 | 25,930,380 | 25,930,380 | |||||||||
Issued capital | $ | 259,303,805 | $ | 259,303,805 | $ | 259,303,805 |
26
A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive dividends.
The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock options.
As of June 30, 2021, 1,064,288 thousand ADSs of TSMC were traded on the NYSE. The number of common shares represented by the ADSs was 5,321,442 thousand shares (one ADS represents five common shares).
b. | Capital surplus |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Additional paid-in capital | $ | 24,184,939 | $ | 24,184,939 | $ | 24,184,939 | ||||||
From merger | 22,804,510 | 22,804,510 | 22,804,510 | |||||||||
From convertible bonds | 8,892,847 | 8,892,847 | 8,892,847 | |||||||||
From difference between the consideration received and the carrying amount of the subsidiaries' net assets during actual disposal | 8,406,282 | - | - | |||||||||
From share of changes in equities of subsidiaries | 121,843 | 121,843 | 121,843 | |||||||||
From share of changes in equities of associates | 302,837 | 302,526 | 302,506 | |||||||||
Donations | 40,578 | 40,578 | 33,336 | |||||||||
$ | 64,753,836 | $ | 56,347,243 | $ | 56,339,981 |
Under the relevant laws, the capital surplus generated from the excess of the issuance price over the par value of capital stock (including the stock issued for new capital, mergers and convertible bonds), the difference between the consideration received and the carrying amount of the subsidiaries' net assets during actual disposal and donations may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or stock dividends up to a certain percentage of TSMC's paid-in capital. The capital surplus from share of changes in equities of subsidiaries and associates and dividend of a claim extinguished by a prescription may be used to offset a deficit.
c. | Retained earnings and dividend policy |
TSMC's Articles of Incorporation provide that, earnings distribution may be made on a quarterly basis after the close of each quarter. Distribution of earnings by way of cash dividends should be approved by TSMC's Board of Directors and reported to TSMC's shareholders in its meeting. When allocating earnings, TSMC shall first estimate and reserve the taxes to be paid, offset its losses, set aside a legal capital reserve at 10% of the remaining earnings (until the accumulated legal capital reserve equals TSMC's paid-in capital), then set aside a special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge. Any balance left over shall be allocated according to relevant laws and the TSMC's Articles of Incorporation.
TSMC's Articles of Incorporation also provide that profits of TSMC may be distributed by way of cash dividend and/or stock dividend. However, distribution of earnings shall be made preferably by way of cash dividend. Distribution of earnings may also be made by way of stock dividend, provided that the ratio for stock dividend shall not exceed 50% of the total distribution.
The legal capital reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Company incurs no loss.
27
Pursuant to existing regulations, the Company is required to set aside additional special capital reserve equivalent to the net debit balance of the other components of stockholders' equity, such as the accumulated balance of foreign currency translation reserve, unrealized valuation gain or loss from fair value through other comprehensive income financial assets, gain or loss from changes in fair value of hedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders' equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses.
The appropriations of 2021, 2020 and 2019 quarterly earnings have been approved by TSMC's Board of Directors in its meeting, respectively. The appropriations and cash dividends per share were as follows:
Second Quarter | First Quarter | |||||||||||
Resolution Date of TSMC's | of 2021 | of 2021 | ||||||||||
Board of Directors in its | August 10, | June 9, | ||||||||||
meeting | 2021 | 2021 | ||||||||||
Special capital reserve | $ | 10,201,220 | $ | (6,287,050 | ) | |||||||
Cash dividends to shareholders | $ | 71,308,546 | $ | 71,308,546 | ||||||||
Cash dividends per share (NT$) | $ | 2.75 | $ | 2.75 |
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||
Resolution Date of TSMC's | of 2020 | of 2020 | of 2020 | of 2020 | ||||||||||||
Board of Directors in its | February 9, | November 10, | August 11, | May 12, | ||||||||||||
meeting | 2021 | 2020 | 2020 | 2020 | ||||||||||||
Special capital reserve | $ | 12,420,727 | $ | 5,501,351 | $ | 11,884,457 | $ | (2,694,841 | ) | |||||||
Cash dividends to shareholders | $ | 64,825,951 | $ | 64,825,951 | $ | 64,825,951 | $ | 64,825,951 | ||||||||
Cash dividends per share (NT$) | $ | 2.5 | $ | 2.5 | $ | 2.5 | $ | 2.5 |
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||
Resolution Date of TSMC's | of 2019 | of 2019 | of 2019 | of 2019 | ||||||||||||
Board of Directors in its meeting | February 11, 2020 | November 12, 2019 | August 13, 2019 | June 5, 2019 | ||||||||||||
Special capital reserve | $ | 16,893,073 | $ | 3,289,166 | $ | (3,338,190 | ) | $ | (4,723,939 | ) | ||||||
Cash dividends to shareholders | $ | 64,825,951 | $ | 64,825,951 | $ | 64,825,951 | $ | 51,860,761 | ||||||||
Cash dividends per share (NT$) | $ | 2.5 | $ | 2.5 | $ | 2.5 | $ | 2.0 |
d. | Others |
Changes in others were as follows:
Six Months Ended June 30, 2021 | ||||||||||||||||||||
Foreign Currency Translation Reserve | Unrealized Gain (Loss) on Financial Assets at FVTOCI | Gain (Loss) on Hedging Instruments | Unearned Stock-Based Employee Compensation | Total | ||||||||||||||||
Balance, beginning of period | $ | (57,001,627 | ) | $ | 2,321,754 | $ | - | $ | - | $ | (54,679,873 | ) | ||||||||
Exchange differences arising on translation of foreign operations | (3,095,241 | ) | - | - | - | (3,095,241 | ) | |||||||||||||
Unrealized gain (loss) on financial assets at FVTOCI | ||||||||||||||||||||
Equity instruments | - | 817,424 | - | - | 817,424 | |||||||||||||||
Debt instruments | - | (1,622,452 | ) | - | - | (1,622,452 | ) | |||||||||||||
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal | - | 278,816 | - | - | 278,816 | |||||||||||||||
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal | - | (169,334 | ) | - | - | (169,334 | ) | |||||||||||||
Loss allowance adjustments from debt instruments | - | 1,617 | - | - | 1,617 |
(Continued)
28
Six Months Ended June 30, 2021 | ||||||||||||||||||||
Foreign Currency Translation Reserve | Unrealized Gain (Loss) on Financial Assets at FVTOCI | Gain (Loss) on Hedging Instruments | Unearned Stock-Based Employee Compensation | Total | ||||||||||||||||
Gain (loss) arising on changes in the fair value of hedging instruments | $ | - | $ | - | $ | (41,416 | ) | $ | - | $ | (41,416 | ) | ||||||||
Transferred to initial carrying amount of hedged items | - | - | 41,416 | - | 41,416 | |||||||||||||||
Share of other comprehensive income (loss) of associates | (73,657 | ) | 4,502 | - | - | (69,155 | ) | |||||||||||||
Income tax effect | - | (55,845 | ) | - | - | (55,845 | ) | |||||||||||||
Balance, end of period | $ | (60,170,525 | ) | $ | 1,576,482 | $ | - | $ | - | $ | (58,594,043 | ) |
(Concluded)
Six Months Ended June 30, 2020 | ||||||||||||||||||||
Foreign Currency Translation Reserve | Unrealized Gain (Loss) on Financial Assets at FVTOCI | Gain (Loss) on Hedging Instruments | Unearned Stock-Based Employee Compensation | Total | ||||||||||||||||
Balance, beginning of period | $ | (26,871,400 | ) | $ | (692,959 | ) | $ | (3,820 | ) | $ | (190 | ) | $ | (27,568,369 | ) | |||||
Exchange differences arising on translation of foreign operations | (11,690,086 | ) | - | - | - | (11,690,086 | ) | |||||||||||||
Unrealized gain (loss) on financial assets at FVTOCI | ||||||||||||||||||||
Equity instruments | - | (22,437 | ) | - | - | (22,437 | ) | |||||||||||||
Debt instruments | - | 3,625,573 | - | - | 3,625,573 | |||||||||||||||
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal | - | (926,919 | ) | - | - | (926,919 | ) | |||||||||||||
Loss allowance adjustments from debt instruments | - | (255 | ) | - | - | (255 | ) | |||||||||||||
Gain (loss) arising on changes in the fair value of hedging instruments | - | - | (42,749 | ) | - | (42,749 | ) | |||||||||||||
Transferred to initial carrying amount of hedged items | - | - | 46,569 | - | 46,569 | |||||||||||||||
Share of other comprehensive income (loss) of associates | (176,309 | ) | (3,469 | ) | - | - | (179,778 | ) | ||||||||||||
Share of unearned stock-based employee compensation of associates | - | - | - | 190 | 190 | |||||||||||||||
Income tax effect | - | 466 | - | - | 466 | |||||||||||||||
Balance, end of period | $ | (38,737,795 | ) | $ | 1,980,000 | $ | - | $ | - | $ | (36,757,795 | ) |
The aforementioned other equity includes the changes in other equities of TSMC and TSMC's share of its subsidiaries and associates.
e. | Employee restricted stock awards |
The issuance of employee restricted stock awards of no more than 2,600 thousand common shares has been approved by TSMC's shareholders' meeting held on July 26, 2021. The grants will be made free of charge.
29
22. | NET REVENUE |
a. | Disaggregation of revenue from contracts with customers |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
Product | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Wafer | $ | 332,005,700 | $ | 275,306,030 | $ | 654,477,956 | $ | 546,955,842 | ||||||||
Others | 40,139,422 | 35,392,337 | 80,077,396 | 74,339,708 | ||||||||||||
$ | 372,145,122 | $ | 310,698,367 | $ | 734,555,352 | $ | 621,295,550 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
Geography | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Taiwan | $ | 41,751,615 | $ | 27,697,800 | $ | 99,480,649 | $ | 57,932,878 | ||||||||
United States | 218,814,409 | 178,101,996 | 456,177,680 | 349,676,085 | ||||||||||||
China | 55,029,691 | 65,066,251 | 78,239,433 | 133,559,658 | ||||||||||||
Europe, the Middle East and Africa | 25,148,209 | 17,213,445 | 45,022,267 | 34,532,690 | ||||||||||||
Japan | 19,424,581 | 16,702,803 | 34,380,749 | 33,966,408 | ||||||||||||
Others | 11,976,617 | 5,916,072 | 21,254,574 | 11,627,831 | ||||||||||||
$ | 372,145,122 | $ | 310,698,367 | $ | 734,555,352 | $ | 621,295,550 |
The Company categorized the net revenue mainly based on the countries where the customers are headquartered.
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
Platform | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Smartphone | $ | 157,744,895 | $ | 145,843,876 | $ | 320,952,692 | $ | 297,775,153 | ||||||||
High Performance Computing | 143,391,014 | 104,115,544 | 271,234,401 | 197,109,154 | ||||||||||||
Internet of Things | 29,391,787 | 25,265,823 | 59,514,518 | 51,861,636 | ||||||||||||
Automotive | 16,395,914 | 11,392,379 | 31,001,454 | 24,454,106 | ||||||||||||
Digital Consumer Electronics | 13,540,616 | 14,213,141 | 28,954,701 | 29,790,979 | ||||||||||||
Others | 11,680,896 | 9,867,604 | 22,897,586 | 20,304,522 | ||||||||||||
$ | 372,145,122 | $ | 310,698,367 | $ | 734,555,352 | $ | 621,295,550 |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
Resolution | 2021 | 2020 | 2021 | 2020 | ||||||||||||
5-nanometer | $ | 61,189,745 | $ | - | $ | 106,802,946 | $ | - | ||||||||
7-nanometer | 101,327,247 | 100,229,077 | 212,348,622 | 195,936,641 | ||||||||||||
10-nanometer | 171,448 | 724,040 | 628,486 | 2,003,537 | ||||||||||||
16-nanometer | 45,342,157 | 48,709,060 | 90,649,739 | 100,128,339 | ||||||||||||
20-nanometer | 1,329,397 | 2,243,613 | 2,530,800 | 4,096,381 | ||||||||||||
28-nanometer | 37,518,815 | 38,479,201 | 74,182,990 | 76,479,155 | ||||||||||||
40/45-nanometer | 23,604,843 | 26,050,830 | 46,795,800 | 52,145,084 | ||||||||||||
65-nanometer | 16,335,174 | 15,576,755 | 31,958,401 | 31,560,957 | ||||||||||||
90-nanometer | 9,031,280 | 7,628,781 | 17,755,720 | 15,300,250 | ||||||||||||
0.11/0.13 micron | 9,307,618 | 7,575,474 | 18,005,084 | 14,597,903 | ||||||||||||
0.15/0.18 micron | 20,997,915 | 21,626,179 | 41,607,465 | 43,279,180 | ||||||||||||
0.25 micron and above | 5,850,061 | 6,463,020 | 11,211,903 | 11,428,415 | ||||||||||||
Wafer revenue | $ | 332,005,700 | $ | 275,306,030 | $ | 654,477,956 | $ | 546,955,842 |
30
b. | Contract balances |
June 30, 2021 | December 31, 2020 | June 30, 2020 | January 1, 2020 | |||||||||||||
Contract liabilities (classified under accrued expenses and other current liabilities) | $ | 28,707,650 | $ | 13,775,088 | $ | 9,652,577 | $ | 6,784,323 |
The changes in the contract liability balances primarily result from the timing difference between the satisfaction of performance obligation and the customer's payment.
The Company recognized revenue from the beginning balance of contract liability, which amounted to NT$1,790,629 thousand and NT$539,843 thousand for the three months ended June 30, 2021 and 2020, respectively; and NT$10,804,405 thousand and NT$4,009,761 thousand for the six months ended June 30, 2021 and 2020, respectively.
23.INTEREST INCOME
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Interest income | ||||||||||||||||
Bank deposits | $ | 708,406 | $ | 1,459,001 | $ | 1,339,467 | $ | 3,372,072 | ||||||||
Financial assets at FVTPL | - | 1,182 | - | 1,768 | ||||||||||||
Financial assets at FVTOCI | 548,760 | 820,923 | 1,175,467 | 1,704,899 | ||||||||||||
Financial assets at amortized cost | 171,515 | 197,256 | 374,651 | 388,692 | ||||||||||||
$ | 1,428,681 | $ | 2,478,362 | $ | 2,889,585 | $ | 5,467,431 |
24. | FINANCE COSTS |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Interest expense | ||||||||||||||||
Corporate bonds | $ | 1,083,200 | $ | 220,213 | $ | 1,798,304 | $ | 388,655 | ||||||||
Lease liabilities | 47,150 | 60,160 | 96,927 | 128,375 | ||||||||||||
Bank loans | 3,964 | 121,131 | 11,093 | 414,197 | ||||||||||||
Others | 85 | 7,641 | 170 | 8,482 | ||||||||||||
$ | 1,134,399 | $ | 409,145 | $ | 1,906,494 | $ | 939,709 |
31
25. | OTHER GAINS AND LOSSES, NET |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Gain on disposal of financial assets, net | ||||||||||||||||
Investments in debt instruments at FVTOCI | $ | 166,348 | $ | 747,507 | $ | 169,334 | $ | 926,919 | ||||||||
Gain (loss) on financial instruments at FVTPL, net | ||||||||||||||||
Mandatorily measured at FVTPL | 955,618 | (1,416,828 | ) | (2,398,909 | ) | (1,507,791 | ) | |||||||||
The reversal (accrual) of expected credit loss of financial assets | ||||||||||||||||
Investments in debt instruments at FVTOCI | (1,861 | ) | 1,881 | (1,617 | ) | 255 | ||||||||||
Financial assets at amortized cost | 4,648 | (443 | ) | 4,901 | (443 | ) | ||||||||||
Other gains, net | 133,879 | 211,282 | 273,128 | 79,227 | ||||||||||||
$ | 1,258,632 | $ | (456,601 | ) | $ | (1,953,163 | ) | $ | (501,833 | ) |
26. | INCOME TAX |
a. | Income tax expense recognized in profit or loss |
Income tax expense consisted of the following:
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Current income tax expense | ||||||||||||||||
Current tax expense recognized in the current period | $ | 19,420,622 | $ | 16,787,405 | $ | 39,877,578 | $ | 33,174,751 | ||||||||
Income tax adjustments on prior years | 158,443 | 47,228 | 158,443 | 75,630 | ||||||||||||
Other income tax adjustments | 31,501 | (112,723 | ) | 69,886 | (79,462 | ) | ||||||||||
19,610,566 | 16,721,910 | 40,105,907 | 33,170,919 | |||||||||||||
Deferred income tax benefit | ||||||||||||||||
The origination and reversal of temporary differences | (3,383,430 | ) | (1,215,786 | ) | (7,238,311 | ) | (2,580,510 | ) | ||||||||
Investment tax credits | (1,317,777 | ) | - | (2,632,597 | ) | - | ||||||||||
(4,701,207 | ) | (1,215,786 | ) | (9,870,908 | ) | (2,580,510 | ) | |||||||||
Income tax expense recognized in profit or loss | $ | 14,909,359 | $ | 15,506,124 | $ | 30,234,999 | $ | 30,590,409 |
32
b. | Income tax expense recognized in other comprehensive income |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Deferred income tax benefit (expense) | ||||||||||||||||
Related to unrealized gain/loss on investments in equity instruments at FVTOCI | $ | (74 | ) | $ | 352 | $ | (55,845 | ) | $ | 466 |
c. | Income tax examination |
The tax authorities have examined income tax returns of TSMC through 2019. All investment tax credit adjustments assessed by the tax authorities have been recognized accordingly.
27. | EARNINGS PER SHARE |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Basic EPS | $ | 5.18 | $ | 4.66 | $ | 10.57 | $ | 9.17 | ||||||||
Diluted EPS | $ | 5.18 | $ | 4.66 | $ | 10.57 | $ | 9.17 |
EPS is computed as follows:
Amounts (Numerator) | Number of Shares (Denominator) (In Thousands) | EPS (NT$) | ||||||||||
Three months ended June 30, 2021 | ||||||||||||
Basic/Diluted EPS | ||||||||||||
Net income available to common shareholders of the parent | $ | 134,358,942 | 25,930,380 | $ | 5.18 | |||||||
Three months ended June 30, 2020 | ||||||||||||
Basic/Diluted EPS | ||||||||||||
Net income available to common shareholders of the parent | $ | 120,822,193 | 25,930,380 | $ | 4.66 | |||||||
Six months ended June 30, 2021 | ||||||||||||
Basic/Diluted EPS | ||||||||||||
Net income available to common shareholders of the parent | $ | 274,049,435 | 25,930,380 | $ | 10.57 | |||||||
Six months ended June 30, 2020 | ||||||||||||
Basic/Diluted EPS | ||||||||||||
Net income available to common shareholders of the parent | $ | 237,808,913 | 25,930,380 | $ | 9.17 |
33
28. | ADDITIONAL INFORMATION OF EXPENSES BY NATURE |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
a.Depreciation of property, plant and equipment and right-of-use assets | ||||||||||||||||
Recognized in cost of revenue | $ | 94,713,022 | $ | 62,604,362 | $ | 186,947,097 | $ | 123,444,346 | ||||||||
Recognized in operating expenses | 6,949,727 | 6,371,650 | 13,615,902 | 12,609,545 | ||||||||||||
Recognized in other operating income and expenses | 61,437 | 5,556 | 134,054 | 11,418 | ||||||||||||
$ | 101,724,186 | $ | 68,981,568 | $ | 200,697,053 | $ | 136,065,309 | |||||||||
b.Amortization of intangible assets | ||||||||||||||||
Recognized in cost of revenue | $ | 1,394,961 | $ | 1,279,576 | $ | 2,681,865 | $ | 2,174,974 | ||||||||
Recognized in operating expenses | 686,011 | 614,108 | 1,326,558 | 1,189,446 | ||||||||||||
$ | 2,080,972 | $ | 1,893,684 | $ | 4,008,423 | $ | 3,364,420 | |||||||||
c.Employee benefits expenses | ||||||||||||||||
Post-employment benefits | ||||||||||||||||
Defined contribution plans | $ | 943,574 | $ | 658,511 | $ | 1,713,829 | $ | 1,339,335 | ||||||||
Defined benefit plans | 48,121 | 51,227 | 96,232 | 102,442 | ||||||||||||
991,695 | 709,738 | 1,810,061 | 1,441,777 | |||||||||||||
Other employee benefits | 38,417,965 | 33,212,840 | 75,682,063 | 65,000,511 | ||||||||||||
$ | 39,409,660 | $ | 33,922,578 | $ | 77,492,124 | $ | 66,442,288 | |||||||||
Employee benefits expense summarized by function | ||||||||||||||||
Recognized in cost of revenue | $ | 23,513,793 | $ | 20,037,035 | $ | 46,320,240 | $ | 39,481,535 | ||||||||
Recognized in operating expenses | 15,895,867 | 13,885,543 | 31,171,884 | 26,960,753 | ||||||||||||
$ | 39,409,660 | $ | 33,922,578 | $ | 77,492,124 | $ | 66,442,288 |
According to TSMC's Articles of Incorporation, TSMC shall allocate compensation to directors and profit sharing bonus to employees of TSMC not more than 0.3% and not less than 1% of annual profits during the period, respectively.
34
TSMC accrued profit sharing bonus to employees based on a percentage of net income before income tax, profit sharing bonus to employees and compensation to directors during the period; compensation to directors was expensed based on estimated amount payable. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate. Accrued profit sharing bonus to employees is illustrated below:
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Profit sharing bonus to employees | $ | 8,020,534 | $ | 8,109,389 | $ | 16,358,834 | $ | 15,963,305 |
TSMC's profit sharing bonus to employees and compensation to directors for 2020 and 2019 had been approved by the Board of Directors of TSMC, as illustrated below:
Years Ended December 31 | ||||||||
2020 | 2019 | |||||||
February 9, | February 11, | |||||||
Resolution Date of TSMC's Board of Directors in its meeting | 2021 | 2020 | ||||||
Profit sharing bonus to employees | $ | 34,753,184 | $ | 23,165,745 | ||||
Compensation to directors | $ | 509,753 | $ | 360,404 |
There is no significant difference between the aforementioned approved amounts and the amounts charged against earnings of 2020 and 2019, respectively.
The information about the appropriations of TSMC's profit sharing bonus to employees and compensation to directors is available at the Market Observation Post System website.
29.CASH FLOW INFORMATION
a. | Non-cash transactions |
Six Months Ended June 30 | ||||||||
2021 | 2020 | |||||||
Additions of financial assets at FVTOCI | $ | 148,920,027 | $ | 128,557,706 | ||||
Conversion of convertible bonds into equity securities | - | (120,548 | ) | |||||
Changes in accrued expenses and other current liabilities | 2,665,377 | (5,074,532 | ) | |||||
Payments for acquisition of financial assets at FVTOCI | $ | 151,585,404 | $ | 123,362,626 | ||||
Disposal of financial assets at FVTOCI | $ | 145,602,717 | $ | 127,700,730 | ||||
Changes in other financial assets | 2,990,739 | (1,472,744 | ) | |||||
Proceeds from disposal of financial assets at FVTOCI | $ | 148,593,456 | $ | 126,227,986 | ||||
Additions of property, plant and equipment | $ | 366,978,486 | $ | 277,237,911 | ||||
Changes in other financial assets | 364,946 | 461,899 | ||||||
Changes in payables to contractors and equipment suppliers | 47,697,813 | 41,604,862 | ||||||
Transferred to initial carrying amount of hedged items | (41,416 | ) | (46,569 | ) | ||||
Payments for acquisition of property, plant and equipment | $ | 414,999,829 | $ | 319,258,103 |
(Continued)
35
Six Months Ended June 30 | ||||||||
2021 | 2020 | |||||||
Additions of intangible assets | $ | 4,803,902 | $ | 10,190,242 | ||||
Changes in other financial assets | 2,442 | 5,635 | ||||||
Changes in account payable | - | 191,429 | ||||||
Changes in accrued expenses and other current liabilities | (682,778 | ) | (1,899,744 | ) | ||||
Payments for acquisition of intangible assets | $ | 4,123,566 | $ | 8,487,562 |
(Concluded)
b. | Reconciliation of liabilities arising from financing activities |
Non-cash changes | ||||||||||||||||||||||||
Balance as of January 1, 2021 | Financing Cash Flow | Foreign Exchange Movement | Leases Modifications | Other Changes (Note) | Balance as of June 30, 2021 | |||||||||||||||||||
Short-term loans | $ | 88,559,026 | $ | 55,624,096 | $ | (4,518,505 | ) | $ | - | $ | (283,707 | ) | $ | 139,380,910 | ||||||||||
Bonds payable | 256,705,084 | 154,930,702 | (1,231,552 | ) | - | 60,623 | 410,464,857 | |||||||||||||||||
Long-term bank loans | 1,967,611 | 1,210,000 | - | - | (6,280 | ) | 3,171,331 | |||||||||||||||||
Lease liabilities | 22,388,674 | (1,082,055 | ) | (33,211 | ) | 1,521,387 | 96,927 | 22,891,722 | ||||||||||||||||
Total | $ | 369,620,395 | $ | 210,682,743 | $ | (5,783,268 | ) | $ | 1,521,387 | $ | (132,437 | ) | $ | 575,908,820 |
Non-cash changes | ||||||||||||||||||||||||
Balance as of January 1, 2020 | Financing Cash Flow | Foreign Exchange Movement | Leases Modifications | Other Changes (Note) | Balance as of June 30, 2020 | |||||||||||||||||||
Short-term loans | $ | 118,522,290 | $ | 52,578,588 | $ | (1,553,928 | ) | $ | - | $ | - | $ | 169,546,950 | |||||||||||
Short-term bills payable | - | 6,485,303 | - | - | 8,095 | 6,493,398 | ||||||||||||||||||
Bonds payable | 56,900,000 | 38,337,937 | - | - | 1,744 | 95,239,681 | ||||||||||||||||||
Lease liabilities | 17,316,917 | (1,573,933 | ) | (29,490 | ) | 5,307,822 | 128,375 | 21,149,691 | ||||||||||||||||
Total | $ | 192,739,207 | $ | 95,827,895 | $ | (1,583,418 | ) | $ | 5,307,822 | $ | 138,214 | $ | 292,429,720 |
Note: | Other changes include discounts on short-term loans, amortization of bonds payable, amortization of long-term bank loan interest subsidy, financial cost of lease liabilities and amortization of short-term bills payable. |
30.FINANCIAL INSTRUMENTS
a. | Categories of financial instruments |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||
Financial assets | ||||||||||||
FVTPL (Note 1) | $ | 58,325 | $ | 2,259,412 | $ | 788,526 | ||||||
FVTOCI (Note 2) | 131,364,292 | 129,918,694 | 137,599,593 | |||||||||
Hedging financial assets | 310 | 47 | - | |||||||||
Amortized cost (Note 3) | 944,073,720 | 826,293,705 | 636,689,032 | |||||||||
$ | 1,075,496,647 | $ | 958,471,858 | $ | 775,077,151 | |||||||
Financial liabilities | ||||||||||||
FVTPL (Note 4) | $ | 1,828,338 | $ | 94,128 | $ | 1,543,265 | ||||||
Hedging financial liabilities | 10,216 | 1,169 | 14,839 | |||||||||
Amortized cost (Note 5) | 919,869,533 | 748,129,332 | 596,415,133 | |||||||||
$ | 921,708,087 | $ | 748,224,629 | $ | 597,973,237 |
Note 1: | Financial assets mandatorily measured at FVTPL. |
36
Note 2: | Including notes and accounts receivable (net), equity and debt investments. |
Note 3: | Including cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable (including related parties), other receivables and refundable deposits. |
Note 4: | Held for trading. |
Note 5: | Including short-term loans, short-term bills payable, accounts payable (including related parties), payables to contractors and equipment suppliers, cash dividends payable, accrued expenses and other current liabilities, bonds payable, long-term bank loans and guarantee deposits. |
b. | Financial risk management objectives |
The Company manages its exposure to foreign currency risk, interest rate risk, equity price risk, credit risk and liquidity risk with the objective to reduce the potentially adverse effects the market uncertainties may have on its financial performance.
The plans for material treasury activities are reviewed by the Audit Committees and/or Board of Directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, the Company must comply with certain treasury procedures that provide guiding principles for overall financial risk management and segregation of duties.
c. | Market risk |
The Company is exposed to the financial market risks, primarily changes in foreign currency exchange rates, interest rates and equity investment prices. A portion of these risks is hedged.
Foreign currency risk
Substantially all the Company's sales are denominated in U.S. dollars and over half of its capital expenditures are denominated in currencies other than NT dollars, primarily in U.S. dollars, Japanese yen and Euros. As a result, any significant fluctuations to its disadvantage in the exchanges rate of NT dollar against such currencies, in particular a weakening of U.S. dollar against NT dollar, would have an adverse impact on the revenue and operating profit as expressed in NT dollars. The Company uses foreign currency derivative contracts, such as currency forwards or currency swaps, to protect against currency exchange rate risks associated with non-NT dollar-denominated assets and liabilities and certain forecasted transactions. These hedges reduce, but do not entirely eliminate, the effect of foreign currency exchange rate movements on the assets and liabilities.
Based on a sensitivity analysis performed on the Company's total monetary assets and liabilities for the six months ended June 30, 2021 and 2020, a hypothetical adverse foreign currency exchange rate change of 10% would have decreased its net income by NT$519,643 thousand and NT$1,066,845 thousand for the six months ended June 30, 2021 and 2020, respectively, after taking into account hedges and offsetting positions.
Interest rate risk
The Company is exposed to interest rate risks primarily related to its investment portfolio and outstanding debt. Changes in interest rates affect the interest earned on the Company's cash and cash equivalents and fixed income securities, the fair value of those securities, as well as the interest paid on its debt.
The Company's cash and cash equivalents as well as fixed income investments in both fixed- and floating-rate securities carry a degree of interest rate risk. The majority of the Company's fixed income investments are fixed-rate securities, which are classified as financial assets at FVTOCI, and may have
37
their fair value adversely affected due to a rise in interest rates. At the same time, if interest rates fall, cash and cash equivalents as well as floating-rate securities may generate less interest income than expected. The Company has entered and may in the future enter intointerest rate futures to partially hedge the interest rate risk on its fixed income investments. However, these hedges can offset only a small portion of the financial impact from movements in interest rates.
Based on a sensitivity analysis performed on the Company's fixed income investments at the end of the reporting period, interest rates increase of 100 basis points (1.00%) across all maturities would have decreased the Company's other comprehensive income by NT$3,713,054 thousand and NT$3,152,977 thousand for the six months ended June 30, 2021 and 2020, respectively.
The majority of the Company's short-term debt is floating-rate, hence a rise in interest rates may result in higher interest expense than expected. The majority of the Company's long-term debt is fixed-rate and measured at amortized cost and as such, changes in interest rates would not affect the future cash flows and the carrying amount.
Other price risk
The Company is exposed to equity price risk arising from financial assets at FVTOCI.
Assuming a hypothetical decrease of 10% in prices of the equity investments at the end of the reporting period for the six months ended June 30, 2021 and 2020, the other comprehensive income would have decreased by NT$532,912 thousand and NT$419,261 thousand, respectively.
d. | Credit risk management |
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial losses to the Company. The Company is exposed to credit risks from operating activities, primarily accounts receivable, and from investing activities, primarily deposits, fixed-income investments and other financial instruments with banks. Credit risk is managed separately for business related and financial related exposures. As of the end of the reporting period, the Company's maximum credit risk exposure is equal to the carrying amount of financial assets.
Business related credit risk
The Company's accounts receivable are from its customers worldwide. The majority of the Company's outstanding accounts receivable are not covered by collaterals or guarantees. While the Company has procedures to monitor and manage credit risk exposure on accounts receivable, there is no assurance such procedures will effectively eliminate losses resulting from its credit risk. This risk is heightened during periods when economic conditions worsen.
As of June 30, 2021, December 31, 2020 and June 30, 2020, the Company's ten largest customers accounted for 78%, 79% and 78% of accounts receivable, respectively. The Company considers the concentration of credit risk for the remaining accounts receivable not material.
Financial credit risk
The Company mitigates its financial credit risk by selecting counterparties with investment grade credit ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors and reviews the limit applied to counterparties and adjusts the limit according to market conditions and the credit standing of the counterparties.
The objective of the Company's investment policy is to achieve a return that will allow the Company to preserve principal and support liquidity requirements. The policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer. The Company assesses whether there has been a significant increase in credit risk in the invested securities since initial
38
recognition by reviewing changes in external credit ratings, financial market conditions and material information of the issuers.
The Company assesses the 12-month expected credit loss and lifetime expected credit loss based on the probability of default and loss given default provided by external credit rating agencies. The current credit risk assessment policies are as follows:
Category | Description | Basis for Recognizing Expected Credit Loss | Expected Credit Loss Ratio | |||||
Performing | Credit rating is investment grade on valuation date | 12 months expected credit loss | 0-0.1% | |||||
Doubtful | Credit rating is non-investment grade on valuation date | Lifetime expected credit loss-not credit impaired | - | |||||
In default | Credit rating is CC or below on valuation date | Lifetime expected credit loss-credit impaired | - | |||||
Write-off | There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery | Amount is written off | - |
For the six months ended June 30, 2021 and 2020, the expected credit loss decreased NT$3,563 thousand and NT$545 thousand, respectively. The changes were mainly due to investment portfolio adjustment.
e. | Liquidity risk management |
The objective of liquidity risk management is to ensure the Company has sufficient liquidity to fund its business operations over the next 12 months. The Company manages its liquidity risk by maintaining adequate cash and cash equivalents, financial assets at FVTOCI-current, financial assets at amortized cost-current and sufficient cost-efficient funding.
The table below summarizes the maturity profile of the Company's financial liabilities based on contractual undiscounted payments, including principal and interest.
Less Than | 1-3 Years | 3-5 Years | More Than 5 Years | Total | ||||||||||||||||
June 30, 2021 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term loans | $ | 139,286,411 | $ | - | $ | - | $ | - | $ | 139,286,411 | ||||||||||
Accounts payable (including related parties) | 41,229,913 | - | - | - | 41,229,913 | |||||||||||||||
Payables to contractors and equipment suppliers | 107,146,153 | - | - | - | 107,146,153 | |||||||||||||||
Accrued expenses and other current liabilities | 81,877,944 | - | - | - | 81,877,944 | |||||||||||||||
Bonds payable | 4,695,789 | 31,393,955 | 111,057,181 | 321,209,197 | 468,356,122 | |||||||||||||||
Long-term bank loans | 15,145 | 1,711,443 | 1,529,118 | - | 3,255,706 | |||||||||||||||
Lease liabilities (including those classified under accrued expenses and other current liabilities) | 2,056,447 | 3,547,598 | 3,254,813 | 15,437,513 | 24,296,371 | |||||||||||||||
376,307,802 | 36,652,996 | 115,841,112 | 336,646,710 | 865,448,620 | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||
Outflows | 202,441,828 | - | - | - | 202,441,828 | |||||||||||||||
Inflows | (201,256,293 | ) | - | - | - | (201,256,293 | ) | |||||||||||||
1,185,535 | - | - | - | 1,185,535 | ||||||||||||||||
$ | 377,493,337 | $ | 36,652,996 | $ | 115,841,112 | $ | 336,646,710 | $ | 866,634,155 |
(Continued)
39
Less Than | 1-3 Years | 3-5 Years | More Than 5 Years | Total | ||||||||||||||||
December 31, 2020 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term loans | $ | 88,557,526 | $ | - | $ | - | $ | - | $ | 88,557,526 | ||||||||||
Accounts payable (including related parties) | 41,095,002 | - | - | - | 41,095,002 | |||||||||||||||
Payables to contractors and equipment suppliers | 157,804,961 | - | - | - | 157,804,961 | |||||||||||||||
Accrued expenses and other current liabilities | 71,995,747 | - | - | - | 71,995,747 | |||||||||||||||
Bonds payable | 5,327,971 | 27,631,589 | 59,986,812 | 207,152,135 | 300,098,507 | |||||||||||||||
Long-term bank loans | 8,000 | 847,389 | 1,170,944 | - | 2,026,333 | |||||||||||||||
Lease liabilities (including those classified under accrued expenses and other current liabilities) | 2,024,212 | 3,566,719 | 3,198,845 | 15,067,857 | 23,857,633 | |||||||||||||||
366,813,419 | 32,045,697 | 64,356,601 | 222,219,992 | 685,435,709 | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||
Outflows | 177,764,155 | - | - | - | 177,764,155 | |||||||||||||||
Inflows | (181,457,960 | ) | - | - | - | (181,457,960 | ) | |||||||||||||
(3,693,805 | ) | - | - | - | (3,693,805 | ) | ||||||||||||||
$ | 363,119,614 | $ | 32,045,697 | $ | 64,356,601 | $ | 222,219,992 | $ | 681,741,904 | |||||||||||
June 30, 2020 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term loans | $ | 169,558,535 | $ | - | $ | - | $ | - | $ | 169,558,535 | ||||||||||
Short-term bills payable | 6,500,000 | - | - | - | 6,500,000 | |||||||||||||||
Accounts payable (including related parties) | 39,533,744 | - | - | - | 39,533,744 | |||||||||||||||
Payables to contractors and equipment suppliers | 97,739,201 | - | - | - | 97,739,201 | |||||||||||||||
Accrued expenses and other current liabilities | 57,970,002 | - | - | - | 57,970,002 | |||||||||||||||
Bonds payable | 13,589,809 | 17,774,765 | 20,217,199 | 47,452,174 | 99,033,947 | |||||||||||||||
Lease liabilities (including those classified under accrued expenses and other current liabilities) | 2,201,266 | 3,403,416 | 3,110,103 | 14,029,185 | 22,743,970 | |||||||||||||||
387,092,557 | 21,178,181 | 23,327,302 | 61,481,359 | 493,079,399 | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||||||
Forward exchange contracts | ||||||||||||||||||||
Outflows | 222,691,323 | - | - | - | 222,691,323 | |||||||||||||||
Inflows | (223,703,226 | ) | - | - | - | (223,703,226 | ) | |||||||||||||
(1,011,903 | ) | - | - | - | (1,011,903 | ) | ||||||||||||||
$ | 386,080,654 | $ | 21,178,181 | $ | 23,327,302 | $ | 61,481,359 | $ | 492,067,496 |
(Concluded)
Information about the maturity analysis for lease liabilities more than 5 years:
5-10 Years | 10-15 Years | 15-20 Years | More Than 20 Years | Total | ||||||||||||||||
June 30, 2021 | ||||||||||||||||||||
Lease liabilities | $ | 7,658,578 | $ | 5,300,326 | $ | 2,290,803 | $ | 187,806 | $ | 15,437,513 | ||||||||||
December 31, 2020 | ||||||||||||||||||||
Lease liabilities | $ | 7,401,969 | $ | 5,253,877 | $ | 2,255,185 | $ | 156,826 | $ | 15,067,857 | ||||||||||
June 30, 2020 | ||||||||||||||||||||
Lease liabilities | $ | 6,919,805 | $ | 4,969,639 | $ | 2,135,897 | $ | 3,844 | $ | 14,029,185 |
40
f. | Fair value of financial instruments |
1) | Fair value measurements recognized in the consolidated balance sheets |
Fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value is observable:
● | Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities; |
● | Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and |
● | Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
The timing of transfers between levels within the fair value hierarchy is at the end of reporting period.
2) | Fair value of financial instruments that are measured at fair value on a recurring basis |
Fair value hierarchy
The following table presents the Company's financial assets and liabilities measured at fair value on a recurring basis:
June 30, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets at FVTPL | ||||||||||||||||
Mandatorily measured at FVTPL | ||||||||||||||||
Forward exchange contracts | $ | - | $ | 58,325 | $ | - | $ | 58,325 | ||||||||
Financial assets at FVTOCI | ||||||||||||||||
Investments in debt instruments | ||||||||||||||||
Corporate bonds | $ | - | $ | 58,907,886 | $ | - | $ | 58,907,886 | ||||||||
Agency bonds/Agency mortgage-backed securities | - | 32,188,798 | - | 32,188,798 | ||||||||||||
Government bonds | 24,041,328 | 80,575 | - | 24,121,903 | ||||||||||||
Asset-backed securities | - | 7,523,443 | - | 7,523,443 | ||||||||||||
Investments in equity instruments | ||||||||||||||||
Non-publicly traded equity investments | - | - | 5,389,958 | 5,389,958 | ||||||||||||
Publicly traded stocks | 52,499 | - | - | 52,499 | ||||||||||||
Notes and accounts receivable, net | - | 3,179,805 | - | 3,179,805 | ||||||||||||
$ | 24,093,827 | $ | 101,880,507 | $ | 5,389,958 | $ | 131,364,292 | |||||||||
Hedging financial assets | ||||||||||||||||
Fair value hedges | ||||||||||||||||
Interest rate futures contracts | $ | 310 | $ | - | $ | - | $ | 310 |
(Continued)
41
June 30, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial liabilities at FVTPL | ||||||||||||||||
Held for trading | ||||||||||||||||
Forward exchange contracts | $ | - | $ | 1,828,338 | $ | - | $ | 1,828,338 | ||||||||
Hedging financial liabilities | ||||||||||||||||
Fair value hedges | ||||||||||||||||
Interest rate futures contracts | $ | 10,216 | $ | - | $ | - | $ | 10,216 |
(Concluded)
December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets at FVTPL | ||||||||||||||||
Mandatorily measured at FVTPL | ||||||||||||||||
Forward exchange contracts | $ | - | $ | 2,259,412 | $ | - | $ | 2,259,412 | ||||||||
Financial assets at FVTOCI | ||||||||||||||||
Investments in debt instruments | ||||||||||||||||
Corporate bonds | $ | - | $ | 56,593,623 | $ | - | $ | 56,593,623 | ||||||||
Agency bonds/Agency mortgage-backed securities | - | 43,977,113 | - | 43,977,113 | ||||||||||||
Government bonds | 13,279,154 | 180,349 | - | 13,459,503 | ||||||||||||
Asset-backed securities | - | 8,368,264 | - | 8,368,264 | ||||||||||||
Investments in equity instruments | ||||||||||||||||
Non-publicly traded equity investments | - | - | 4,514,940 | 4,514,940 | ||||||||||||
Publicly traded stocks | 49,950 | - | - | 49,950 | ||||||||||||
Notes and accounts receivable, net | - | 2,955,301 | - | 2,955,301 | ||||||||||||
$ | 13,329,104 | $ | 112,074,650 | $ | 4,514,940 | $ | 129,918,694 | |||||||||
Hedging financial assets | ||||||||||||||||
Fair value hedges | ||||||||||||||||
Interest rate futures contracts | $ | 47 | $ | - | $ | - | $ | 47 | ||||||||
Financial liabilities at FVTPL | ||||||||||||||||
Held for trading | ||||||||||||||||
Forward exchange contracts | $ | - | $ | 94,128 | $ | - | $ | 94,128 | ||||||||
Hedging financial liabilities | ||||||||||||||||
Fair value hedges | ||||||||||||||||
Interest rate futures contracts | $ | 1,169 | $ | - | $ | - | $ | 1,169 |
Because certain equity investment's quoted price (unadjusted) in active markets became available in the fourth quarter of 2020, its fair value hierarchy was transferred from Level 2 to Level 1.
42
June 30, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets at FVTPL | ||||||||||||||||
Mandatorily measured at FVTPL | ||||||||||||||||
Forward exchange contracts | $ | - | $ | 754,789 | $ | - | $ | 754,789 | ||||||||
Agency mortgage-backed securities | - | 33,737 | - | 33,737 | ||||||||||||
$ | - | $ | 788,526 | $ | - | $ | 788,526 | |||||||||
Financial assets at FVTOCI | ||||||||||||||||
Investments in debt instruments | ||||||||||||||||
Corporate bonds | $ | - | $ | 59,747,143 | $ | - | $ | 59,747,143 | ||||||||
Agency bonds/Agency mortgage-backed securities | - | 48,777,759 | - | 48,777,759 | ||||||||||||
Government bonds | 9,909,343 | 145,187 | - | 10,054,530 | ||||||||||||
Asset-backed securities | - | 10,824,156 | - | 10,824,156 | ||||||||||||
Investments in equity instruments | ||||||||||||||||
Non-publicly traded equity investments | - | 65,364 | 4,235,155 | 4,300,519 | ||||||||||||
Notes and accounts receivable, net | - | 3,895,486 | - | 3,895,486 | ||||||||||||
$ | 9,909,343 | $ | 123,455,095 | $ | 4,235,155 | $ | 137,599,593 | |||||||||
Financial liabilities at FVTPL | ||||||||||||||||
Held for trading | ||||||||||||||||
Forward exchange contracts | $ | - | $ | 1,543,265 | $ | - | $ | 1,543,265 | ||||||||
Hedging financial liabilities | ||||||||||||||||
Fair value hedges | ||||||||||||||||
Interest rate futures contracts | $ | 14,839 | $ | - | $ | - | $ | 14,839 |
Reconciliation of Level 3 fair value measurements of financial assets
The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTOCI and financial assets at FVTPL. Reconciliations for the six months ended June 30, 2021 and 2020 are as follows:
Six Months Ended June 30 | ||||||||
2021 | 2020 | |||||||
Balance, beginning of period | $ | 4,514,940 | $ | 4,208,900 | ||||
Additions | 153,680 | 141,974 | ||||||
Recognized in profit or loss | - | (3,821 | ) | |||||
Recognized in other comprehensive income or loss | 814,395 | (48,976 | ) | |||||
Disposals and proceeds from return of capital of investments | (62,837 | ) | - | |||||
Effect of exchange rate changes | (30,220 | ) | (62,922 | ) | ||||
Balance, end of period | $ | 5,389,958 | $ | 4,235,155 |
Valuation techniques and assumptions used in Level 2 fair value measurement
The fair values of financial assets and financial liabilities are determined as follows:
● | The fair values of corporate bonds, agency bonds, agency mortgage-backed securities, asset-backed securities, government bonds and non-publicly traded equity investments - equity investments trading on the Emerging Stock Board are determined by quoted market prices provided by third party pricing services. |
43
● | The fair values of forward exchange contracts are measured using forward exchange rates and discount rates derived from quoted market prices. |
● | The fair value of accounts receivable classified as at FVTOCI is determined by the present value of future cash flows based on the discount rate that reflects the credit risk of counterparties. |
Valuation techniques and assumptions used in Level 3 fair value measurement
The fair values of non-publicly traded equity investments (excluding those trading on the Emerging Stock Board) are mainly determined by using the asset approach and market approach.
The asset approach takes into account the net asset value measured at the fair value by independent parties. On June 30, 2021, December 31, 2020 and June 30, 2020, the Company uses unobservable inputs derived from discount for lack of marketability of 10%. When other inputs remain equal, the fair value will decrease by NT$46,218 thousand, NT$39,006 thousand and NT$35,044 thousand, respectively, if discounts for lack of marketability increase by 1%.
For the remaining few investments, the market approach is used to arrive at their fair values, for which the recent financing activities of investees, the market transaction prices of the similar companies and market conditions are considered.
3) | Fair value of financial instruments that are not measured at fair value |
Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments in the consolidated financial statements that are not measured at fair value approximate their fair values.
Fair value hierarchy
The table below sets out the fair value hierarchy for the Company's financial assets and liabilities which are not required to be measured at fair value:
June 30, 2021 | ||||||||
Carrying | Level 2 | |||||||
Amount | Fair Value | |||||||
Financial assets | ||||||||
Financial assets at amortized costs | ||||||||
Corporate bonds | $ | 4,336,636 | $ | 4,373,891 | ||||
Financial liabilities | ||||||||
Financial liabilities at amortized costs | ||||||||
Bonds payable | $ | 410,464,857 | $ | 407,330,000 |
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December 31, 2020 | ||||||||
Carrying | Level 2 | |||||||
Amount | Fair Value | |||||||
Financial assets | ||||||||
Financial assets at amortized costs | ||||||||
Corporate bonds | $ | 10,970,199 | $ | 11,053,550 | ||||
Financial liabilities | ||||||||
Financial liabilities at amortized costs | ||||||||
Bonds payable | $ | 256,705,084 | $ | 257,551,196 |
June 30, 2020 | ||||||||
Carrying | Level 2 | |||||||
Amount | Fair Value | |||||||
Financial assets | ||||||||
Financial assets at amortized costs | ||||||||
Corporate bonds | $ | 8,850,706 | $ | 8,919,878 | ||||
Financial liabilities | ||||||||
Financial liabilities at amortized costs | ||||||||
Bonds payable | $ | 95,239,681 | $ | 96,053,314 | ||||
Short-term bills payable | 6,493,398 | 6,491,858 | ||||||
$ | 101,733,079 | $ | 102,545,172 |
Valuation techniques and assumptions used in Level 2 fair value measurement
The fair values of corporate bonds and the Company's bonds payable are determined by quoted market prices provided by third party pricing services.
The fair value of the Company's short-term bills payable is determined by the present value of future cash flows based on the discounted curves that are derived from the quoted market prices.
31. | RELATED PARTY TRANSACTIONS |
Intercompany balances and transactions between TSMC and its subsidiaries, which are related parties of TSMC, have been eliminated upon consolidation; therefore those items are not disclosed in this note. The following is a summary of significant transactions between the Company and other related parties:
a. | Related party name and categories |
Related Party Name | Related Party Categories | |
GUC | Associates | |
VIS | Associates | |
SSMC | Associates | |
Xintec | Associates | |
TSMC Education and Culture Foundation | Other related parties | |
TSMC Charity Foundation | Other related parties |
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b. | Net revenue |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||
Item | Related Party Categories | |||||||||||||||||
Net revenue from sale of goods | Associates | $ | 1,816,016 | $ | 1,864,528 | $ | 3,447,107 | $ | 3,681,927 | |||||||||
Net revenue from royalties | Associates | $ | 52,972 | $ | 51,822 | $ | 104,954 | $ | 103,369 |
c. | Purchases |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Related Party Categories | ||||||||||||||||
Associates | $ | 2,006,612 | $ | 2,018,917 | $ | 3,903,133 | $ | 3,733,250 |
d. | Receivables from related parties |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||||
Item | Related Party Name/Categories | |||||||||||||
Receivables from | GUC | $ | 675,490 | $ | 370,643 | $ | 792,557 | |||||||
related parties | Xintec | 108,907 | 187,488 | 99,134 | ||||||||||
$ | 784,397 | $ | 558,131 | $ | 891,691 | |||||||||
Other receivables | VIS | $ | 1,639,722 | $ | 4,311 | $ | 1,505,369 | |||||||
from related | SSMC | 48,879 | 45,291 | 1,075,495 | ||||||||||
parties | Others | 23,051 | 1,043 | 206 | ||||||||||
$ | 1,711,652 | $ | 50,645 | $ | 2,581,070 |
e. | Payables to related parties |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||||
Item | Related Party Name/Categories | |||||||||||||
Payables to related | Xintec | $ | 727,551 | $ | 1,358,624 | $ | 534,092 | |||||||
parties | SSMC | 412,226 | 400,819 | 514,797 | ||||||||||
VIS | 334,046 | 311,406 | 307,524 | |||||||||||
Others | 30,333 | 36,869 | 76,592 | |||||||||||
$ | 1,504,156 | $ | 2,107,718 | $ | 1,433,005 |
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f. | Accrued expenses and other current liabilities |
June 30, 2021 | December 31, 2020 | June 30, 2020 | ||||||||||||
Item | Related Party Categories | |||||||||||||
Contract liabilities | Associates | $ | 333,101 | $ | - | $ | - |
g. | Others |
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||
Item | Related Party Categories | |||||||||||||||||
Manufacturing expenses | Associates | $ | 949,613 | $ | 864,671 | $ | 2,566,519 | $ | 1,821,957 | |||||||||
Research and development expenses | Associates | $ | 39,202 | $ | 65,667 | $ | 81,920 | $ | 87,269 | |||||||||
General and administrative expenses | Other related parties | $ | 35,000 | $ | 30,000 | $ | 70,000 | $ | 60,000 |
The sales prices and payment terms to related parties were not significantly different from those of sales to third parties. For other related party transactions, price and terms were determined in accordance with mutual agreements.
The Company leased factory and office from associates. The lease terms and prices were both determined in accordance with mutual agreements. The rental expenses were paid to associates monthly; the related expenses were both classified under manufacturing expenses.
h. | Compensation of key management personnel |
The compensation to directors and other key management personnel were as follows:
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Short-term employee benefits | $ | 689,912 | $ | 649,062 | $ | 1,302,471 | $ | 1,207,363 | ||||||||
Post-employment benefits | 776 | 655 | 1,495 | 1,307 | ||||||||||||
$ | 690,688 | $ | 649,717 | $ | 1,303,966 | $ | 1,208,670 |
The compensation to directors and other key management personnel were determined by the Compensation Committee of TSMC in accordance with the individual performance and market trends.
47
32. | PLEDGED ASSETS |
The Company provided certificate of deposits recorded in other financial assets as collateral mainly for building construction, building lease agreements and energy purchase agreements. As of June 30, 2021, December 31, 2020 and June 30, 2020, the aforementioned other financial assets amounted to NT$264,553 thousand, NT$135,375 thousand and NT$116,961 thousand, respectively.
33. | SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS |
Significant contingent liabilities and unrecognized commitments of the Company as of the end of the reporting period, excluding those disclosed in other notes, were as follows:
a. | Under a technical cooperation agreement with Industrial Technology Research Institute, the R.O.C. Government or its designee approved by TSMC can use up to 35% of TSMC's capacity provided TSMC's outstanding commitments to its customers are not prejudiced. The term of this agreement is for five years beginning from January 1, 1987 and is automatically renewed for successive periods of five years unless otherwise terminated by either party with one year prior notice. As of June 30, 2021, the R.O.C. Government did not invoke such right. |
b. | Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in Singapore. TSMC's equity interest in SSMC was 32%. Nevertheless, in September 2006, Philips spun-off its semiconductor subsidiary which was renamed as NXP B.V. Further, TSMC and NXP B.V. purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, TSMC and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. TSMC and NXP B.V. are required, in the aggregate, to purchase at least 70% of SSMC's capacity, but TSMC alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a specific percentage of its capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. There was no default from the aforementioned commitment as of June 30, 2021. |
c. | TSMC entered into long-term purchase agreements of materials and supplies with multiple suppliers. The relative minimum purchase quantity and price are specified in the agreements. |
d. | TSMC entered into a long-term purchase agreement of equipment. The relative purchase quantity and price are specified in the agreement. |
e. | TSMC entered into long-term energy purchase agreements with multiple suppliers. The relative purchase period, quantity and price are specified in the agreements. |
f. | Amounts available under unused letters of credit as of June 30, 2021, December 31, 2020 and June 30, 2020 were NT$137,772 thousand, NT$56,194 thousand and NT$58,858 thousand, respectively. |
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34. | EXCHANGE RATE INFORMATION OF FOREIGN-CURRENCY FINANCIAL ASSETS AND LIABILITIES |
The following information was summarized according to the foreign currencies other than the functional currency of the Company. The exchange rates disclosed were used to translate the foreign currencies into the functional currency. The significant financial assets and liabilities denominated in foreign currencies were as follows:
Foreign Currencies (In Thousands) | Exchange Rate (Note 1) | Carrying Amount (In Thousands) | ||||||||||
June 30, 2021 | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
USD | $ | 7,172,316 | 27.889 | $ | 200,028,730 | |||||||
USD | 1,749,810 | 6.461 | (Note 2) | 48,800,457 | ||||||||
EUR | 6,811 | 33.219 | 226,248 | |||||||||
JPY | 22,225,973 | 0.2526 | 5,614,281 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
USD | 7,022,872 | 27.889 | 195,860,888 | |||||||||
EUR | 4,287,817 | 33.219 | 142,436,982 | |||||||||
JPY | 78,286,201 | 0.2526 | 19,775,094 | |||||||||
December 31, 2020 | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
USD | 6,984,545 | 28.097 | 196,244,748 | |||||||||
USD | 785,171 | 6.540 | (Note 2) | 22,060,962 | ||||||||
EUR | 13,820 | 34.587 | 478,002 | |||||||||
JPY | 83,593,234 | 0.2729 | 22,812,594 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
USD | 6,966,889 | 28.097 | 195,748,671 | |||||||||
EUR | 4,150,215 | 34.587 | 143,543,499 | |||||||||
JPY | 105,112,663 | 0.2729 | 28,685,246 |
(Continued)
49
Foreign Currencies (In Thousands) | Exchange Rate (Note 1) | Carrying Amount (In Thousands) | ||||||||||
June 30, 2020 | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
USD | $ | 5,174,665 | 29.429 | $ | 152,285,206 | |||||||
USD | 496,369 | 7.074 | (Note 2) | 14,607,645 | ||||||||
EUR | 25,644 | 33.108 | 849,010 | |||||||||
JPY | 80,184,719 | 0.2731 | 21,898,447 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
USD | 7,010,449 | 29.429 | 206,310,512 | |||||||||
EUR | 4,092,463 | 33.108 | 135,493,271 | |||||||||
JPY | 90,678,234 | 0.2731 | 24,764,226 |
(Concluded)
Note 1: | Except as otherwise noted, exchange rate represents the number of NT dollar for which one foreign currency could be exchanged. |
Note 2: | The exchange rate represents the number of RMB for which one U.S. dollar could be exchanged. |
Please refer to the consolidated statements of comprehensive income for the total of realized and unrealized foreign exchange gain and loss for the three months and the six months ended June 30, 2021 and 2020, respectively. Since there were varieties of foreign currency transactions and functional currencies within the subsidiaries of the Company, the Company was unable to disclose foreign exchange gain (loss) towards each foreign currency with significant impact.
35. | ADDITIONAL DISCLOSURES |
Following are the additional disclosures required by the Securities and Futures Bureau for TSMC:
a. | Financings provided: See Table 1 attached; |
b. | Endorsement/guarantee provided: See Table 2 attached; |
c. | Marketable securities held (excluding investments in subsidiaries and associates): See Table 3 attached; |
d. | Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: See Table 4 attached; |
e. | Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in capital: See Table 5 attached; |
f. | Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None; |
g. | Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: See Table 6 attached; |
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h. | Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 7 attached; |
i. | Information about the derivative financial instruments transaction: See Notes 7 and 10; |
j. | Others: The business relationship between the parent and the subsidiaries and significant transactions between them: See Table 8 attached; |
k. | Names, locations, and related information of investees over which TSMC exercises significant influence (excluding information on investment in mainland China): See Table 9 attached; |
l. | Information on investment in mainland China |
1) | The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: See Table 10 attached. |
2) | Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland China on financial reports: See Table 8 attached. |
m. | Information of major shareholders |
List of all shareholders with ownership of 5 percent or greater showing the names and the number of shares and percentage of ownership held by each shareholder: See Table 11 attached.
36. | OPERATING SEGMENTS INFORMATION |
TSMC's chief operating decision makers periodically review operating results, focusing on operating income generated by foundry segment. Operating results are used for resource allocation and/or performance assessment. As a result, the Company has only one operating segment, the foundry segment. The foundry segment engages mainly in the manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks.
The basis for the measurement of income from operations is the same as that for the preparation of financial statements. Please refer to the consolidated statements of comprehensive income for the related segment revenue and operating results.
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TABLE 1
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
FINANCINGS PROVIDED
FOR THE SIX MONTHS ENDED JUNE 30, 2021
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
No. | Financing Company | Counterparty | Financial Statement Account | Related Party | Maximum Balance for the Period (Foreign Currencies in Thousands) (Note 3) | Ending Balance (Foreign Currencies in Thousands) (Note 3) | Amount Actually Drawn (Foreign Currencies in Thousands) | Interest Rate | Nature for Financing | Transaction Amounts | Reason for Financing | Allowance for Bad Debt | Collateral | Financing Limits for Each Borrowing Company (Notes 1 and 2) | Financing Company's Total Financing Amount Limits (Notes 1 and 2) | |||||||||||||||||||
Item | Value | |||||||||||||||||||||||||||||||||
1 | TSMC China | TSMC Nanjing | Other receivables from related parties | Yes | $ (RMB (US$ | 34,796,270 5,800,000 350,000 | )& ) | $ (RMB (US$ | 34,796,270 5,800,000 350,000 | )& ) | $ (RMB | 24,171,840 5,600,000 | ) | 1.30%-1.50% | The need for long-term and short-term financing | $ | - | Operating capital | $ | - | - | $ | - | $ | 68,772,843 | $ | 68,772,843 | |||||||
2 | TSMC Global | TSMC | Other receivables from related parties | Yes | (US$ | 103,189,300 3,700,000 | ) | (US$ | 103,189,300 3,700,000 | ) | (US$ | 103,189,300 3,700,000 | ) | 0.00% | The need for short-term financing | - | Operating capital | - | - | - | 758,575,513 | 758,575,513 | ||||||||||||
Note 1: | The aggregate amount available for lending to TSMC Nanjing from TSMC China shall not exceed the net worth of TSMC China. |
Note 2: | The aggregate amount available for lending to TSMC from TSMC Global shall not exceed two times (200%) of the net worth of TSMC Global. |
Note 3: | The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors. |
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TABLE 2
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
ENDORSEMENTS/GUARANTEES PROVIDED
FOR THE SIX MONTHS ENDED JUNE 30, 2021
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
No. | Endorsement/ Guarantee Provider | Guaranteed Party | Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Notes 1 and 2) |
Maximum Balance (Note 3) |
Ending Balance (Note 3) | Amount Actually Drawn (Foreign Currencies in Thousands) | Amount of Endorsement/ Guarantee Collateralized by Properties | Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements | Maximum Endorsement/ Guarantee Amount Allowable (Notes 1 and 2) | Guarantee Provided by Parent Company | Guarantee Provided by A Subsidiary | Guarantee Provided to Subsidiaries in Mainland China | |||||||||||||||
Name | Nature of Relationship | ||||||||||||||||||||||||||
0 | TSMC | TSMC North America | Subsidiary | $ | 497,946,450 | $ (US$ | 2,320,736 83,213 | ) | $ (US$ | 2,320,736 83,213 | ) | $ (US$ | 2,320,736 83,213 | ) | $ | - | 0.12% | $ | 497,946,450 | Yes | No | No | |||||
TSMC Global | Subsidiary | 497,946,450 | (US$ | 209,167,500 7,500,000 | ) | (US$ | 209,167,500 7,500,000 | ) | (US$ | 181,278,500 6,500,000 | ) | - | 10.50% | 497,946,450 | Yes | No | No | ||||||||||
1 | TSMC Japan | TSMC JDC | The same parent company | 199,178,580 | (JPY | 333,432 1,320,000 | ) | (JPY | 333,432 1,320,000 | ) | (JPY | 333,432 1,320,000 | ) | - | 0.02% | 199,178,580 | No | No | No | ||||||||
Note 1: The total amount of the endorsement/guarantee provided by TSMC to TSMC North America and TSMC Global shall not exceed twenty-five percent (25%) of TSMC's net worth.
Note 2: The total amount of the endorsement/guarantee provided by TSMC Japan to TSMC JDC shall not exceed ten percent (10%) of TSMC's net worth.
Note 3: The maximum balance for the period and ending balance represent the amounts approved by the Board of Directors.
53
TABLE 3
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
MARKETABLE SECURITIES HELD
JUNE 30, 2021
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC | Non-publicly traded equity investments | |||||||||||||||
United Industrial Gases Co., Ltd. | - | Financial assets at fair value through other comprehensive income | 21,230 | $ | 491,883 | 10 | $ | 491,883 | ||||||||
Shin-Etsu Handotai Taiwan Co., Ltd. | - | 〃 | 10,500 | 345,744 | 7 | 345,744 | ||||||||||
Global Investment Holding Inc. | - | 〃 | 10,442 | 105,972 | 6 | 105,972 | ||||||||||
Crimson Asia Capital | - | 〃 | - | 368 | 1 | 368 | ||||||||||
W.K. Technology Fund IV | - | 〃 | 202 | 271 | 2 | 271 | ||||||||||
TSMC Partners | Non-publicly traded equity investments | |||||||||||||||
Shanghai Walden Venture Capital Enterprise | - | Financial assets at fair value through other comprehensive income | - | US$ | 28,539 | 6 | US$ | 28,539 | ||||||||
China Walden Venture Investments II, L.P. | - | 〃 | - | US$ | 12,472 | 9 | US$ | 12,472 | ||||||||
China Walden Venture Investments III, L.P. | - | 〃 | - | US$ | 5,439 | 4 | US$ | 5,439 | ||||||||
Inpria Corporation | - | 〃 | 1,778 | US$ | 3,600 | 4 | US$ | 3,600 | ||||||||
Mcube Inc. | - | 〃 | 6,333 | - | 10 | - | ||||||||||
Tela Innovations | - | 〃 | 10,440 | - | 25 | - | ||||||||||
TSMC Global | Corporate bond | |||||||||||||||
Bank of America Corporation | - | Financial assets at fair value through other comprehensive income | - | US$ | 71,035 | N/A | US$ | 71,035 | ||||||||
Morgan Stanley | - | 〃 | - | US$ | 47,626 | N/A | US$ | 47,626 | ||||||||
JPMorgan Chase & Co. | - | 〃 | - | US$ | 47,433 | N/A | US$ | 47,433 | ||||||||
Citigroup Inc. | - | 〃 | - | US$ | 43,082 | N/A | US$ | 43,082 | ||||||||
The Goldman Sachs Group, Inc. | - | 〃 | - | US$ | 42,202 | N/A | US$ | 42,202 | ||||||||
Mitsubishi UFJ Financial Group, Inc. | - | 〃 | - | US$ | 33,247 | N/A | US$ | 33,247 | ||||||||
AbbVie Inc. | - | 〃 | - | US$ | 32,445 | N/A | US$ | 32,445 | ||||||||
Wells Fargo & Company | - | 〃 | - | US$ | 28,973 | N/A | US$ | 28,973 | ||||||||
Sumitomo Mitsui Financial Group, Inc. | - | 〃 | - | US$ | 28,668 | N/A | US$ | 28,668 | ||||||||
Athene Global Funding | - | 〃 | - | US$ | 27,074 | N/A | US$ | 27,074 | ||||||||
HSBC Holdings plc | - | 〃 | - | US$ | 26,000 | N/A | US$ | 26,000 | ||||||||
Lloyds Banking Group plc | - | 〃 | - | US$ | 23,318 | N/A | US$ | 23,318 | ||||||||
Oracle Corporation | - | 〃 | - | US$ | 21,974 | N/A | US$ | 21,974 | ||||||||
Apple Inc. | - | 〃 | - | US$ | 21,426 | N/A | US$ | 21,426 | ||||||||
BNP Paribas SA | - | 〃 | - | US$ | 18,783 | N/A | US$ | 18,783 | ||||||||
Hyundai Capital America, Inc. | - | 〃 | - | US$ | 18,623 | N/A | US$ | 18,623 | ||||||||
Volkswagen Group of America Finance, LLC | - | 〃 | - | US$ | 17,590 | N/A | US$ | 17,590 | ||||||||
Mizuho Financial Group, Inc. | - | 〃 | - | US$ | 17,566 | N/A | US$ | 17,566 | ||||||||
AT&T Inc. | - | 〃 | - | US$ | 17,544 | N/A | US$ | 17,544 | ||||||||
Metropolitan Life Global Funding I | - | 〃 | - | US$ | 17,470 | N/A | US$ | 17,470 | ||||||||
Verizon Communications Inc. | - | 〃 | - | US$ | 17,385 | N/A | US$ | 17,385 | ||||||||
Banco Santander, S.A. | - | 〃 | - | US$ | 17,282 | N/A | US$ | 17,282 | ||||||||
NatWest Markets Plc | - | 〃 | - | US$ | 16,541 | N/A | US$ | 16,541 | ||||||||
Amazon.com, Inc. | - | 〃 | - | US$ | 16,136 | N/A | US$ | 16,136 | ||||||||
(Continued)
54
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | Nationwide Building Society | - | Financial assets at fair value through other comprehensive income | - | US$ | 14,926 | N/A | US$ | 14,926 | |||||||
Toyota Motor Credit Corporation | - | 〃 | - | US$ | 14,728 | N/A | US$ | 14,728 | ||||||||
Nordea Bank Abp | - | 〃 | - | US$ | 14,648 | N/A | US$ | 14,648 | ||||||||
NTT Finance Corporation | - | 〃 | - | US$ | 14,302 | N/A | US$ | 14,302 | ||||||||
The Toronto-Dominion Bank | - | 〃 | - | US$ | 14,165 | N/A | US$ | 14,165 | ||||||||
Principal Life Global Funding II | - | 〃 | - | US$ | 13,851 | N/A | US$ | 13,851 | ||||||||
BP Capital Markets America, Inc. | - | 〃 | - | US$ | 13,545 | N/A | US$ | 13,545 | ||||||||
Protective Life Global Funding | - | 〃 | - | US$ | 13,348 | N/A | US$ | 13,348 | ||||||||
Barclays PLC | - | 〃 | - | US$ | 13,066 | N/A | US$ | 13,066 | ||||||||
Sumitomo Mitsui Trust Bank, Limited | - | 〃 | - | US$ | 12,935 | N/A | US$ | 12,935 | ||||||||
Chevron Corporation | - | 〃 | - | US$ | 12,567 | N/A | US$ | 12,567 | ||||||||
Comcast Corporation | - | 〃 | - | US$ | 12,313 | N/A | US$ | 12,313 | ||||||||
National Securities Clearing Corporation | - | 〃 | - | US$ | 11,948 | N/A | US$ | 11,948 | ||||||||
Société Générale Société anonyme | - | 〃 | - | US$ | 11,688 | N/A | US$ | 11,688 | ||||||||
Credit Suisse AG, New York Branch | - | 〃 | - | US$ | 11,622 | N/A | US$ | 11,622 | ||||||||
Bristol-Myers Squibb Company | - | 〃 | - | US$ | 11,501 | N/A | US$ | 11,501 | ||||||||
Equifax Inc. | - | 〃 | - | US$ | 11,410 | N/A | US$ | 11,410 | ||||||||
The Bank of Nova Scotia | - | 〃 | - | US$ | 10,933 | N/A | US$ | 10,933 | ||||||||
AstraZeneca Finance LLC | - | 〃 | - | US$ | 10,906 | N/A | US$ | 10,906 | ||||||||
Banque Fédérative du Crédit Mutuel Société anonyme | - | 〃 | - | US$ | 10,897 | N/A | US$ | 10,897 | ||||||||
Credit Agricole SA London Branch | - | 〃 | - | US$ | 10,589 | N/A | US$ | 10,589 | ||||||||
Daimler Finance North America LLC | - | 〃 | - | US$ | 10,432 | N/A | US$ | 10,432 | ||||||||
Equitable Financial Life Global Funding | - | 〃 | - | US$ | 10,379 | N/A | US$ | 10,379 | ||||||||
Roper Technologies, Inc. | - | 〃 | - | US$ | 10,271 | N/A | US$ | 10,271 | ||||||||
Equinor ASA | - | 〃 | - | US$ | 10,141 | N/A | US$ | 10,141 | ||||||||
U.S. Bancorp | - | 〃 | - | US$ | 9,982 | N/A | US$ | 9,982 | ||||||||
AIG Global Funding | - | 〃 | - | US$ | 9,965 | N/A | US$ | 9,965 | ||||||||
Standard Chartered PLC | - | 〃 | - | US$ | 9,831 | N/A | US$ | 9,831 | ||||||||
American International Group, Inc. | - | 〃 | - | US$ | 9,372 | N/A | US$ | 9,372 | ||||||||
Canadian Imperial Bank of Commerce | - | 〃 | - | US$ | 9,200 | N/A | US$ | 9,200 | ||||||||
Royal Bank of Canada | - | 〃 | - | US$ | 9,157 | N/A | US$ | 9,157 | ||||||||
Shire Acquisitions Investments Ireland Limited | - | 〃 | - | US$ | 9,067 | N/A | US$ | 9,067 | ||||||||
NIKE, Inc. | - | 〃 | - | US$ | 9,066 | N/A | US$ | 9,066 | ||||||||
New York Life Global Funding | - | 〃 | - | US$ | 8,959 | N/A | US$ | 8,959 | ||||||||
Santander UK plc | - | 〃 | - | US$ | 8,695 | N/A | US$ | 8,695 | ||||||||
Fédération des caisses Desjardins du Québec | - | 〃 | - | US$ | 8,652 | N/A | US$ | 8,652 | ||||||||
Macquarie Group Limited | - | 〃 | - | US$ | 8,527 | N/A | US$ | 8,527 | ||||||||
DTE Energy Company | - | 〃 | - | US$ | 8,459 | N/A | US$ | 8,459 | ||||||||
KfW | - | 〃 | - | US$ | 8,388 | N/A | US$ | 8,388 | ||||||||
UnitedHealth Group Incorporated | - | 〃 | - | US$ | 8,337 | N/A | US$ | 8,337 | ||||||||
Guardian Life Global Funding | - | 〃 | - | US$ | 8,297 | N/A | US$ | 8,297 | ||||||||
General Electric Company | - | 〃 | - | US$ | 8,295 | N/A | US$ | 8,295 | ||||||||
International Bank for Reconstruction and Development | - | 〃 | - | US$ | 8,250 | N/A | US$ | 8,250 | ||||||||
Santander UK Group Holdings plc | - | 〃 | - | US$ | 8,155 | N/A | US$ | 8,155 | ||||||||
Great-West Lifeco U.S. Finance 2020, Lp | - | 〃 | - | US$ | 8,104 | N/A | US$ | 8,104 | ||||||||
Inter-American Development Bank | - | 〃 | - | US$ | 8,081 | N/A | US$ | 8,081 | ||||||||
Tencent Holdings Limited | - | 〃 | - | US$ | 8,055 | N/A | US$ | 8,055 | ||||||||
ING Groep N.V. | - | 〃 | - | US$ | 8,008 | N/A | US$ | 8,008 | ||||||||
Suncorp-Metway Limited | - | 〃 | - | US$ | 8,008 | N/A | US$ | 8,008 | ||||||||
(Continued)
55
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | NextEra Energy Capital Holdings, Inc. | - | Financial assets at fair value through other comprehensive income | - | US$ | 7,897 | N/A | US$ | 7,897 | |||||||
Pacific Life Global Funding II | - | 〃 | - | US$ | 7,613 | N/A | US$ | 7,613 | ||||||||
Credit Suisse Group AG | - | 〃 | - | US$ | 7,603 | N/A | US$ | 7,603 | ||||||||
Siemens Financieringsmaatschappij N.V. | - | 〃 | - | US$ | 7,591 | N/A | US$ | 7,591 | ||||||||
Bank of Montreal | - | 〃 | - | US$ | 7,455 | N/A | US$ | 7,455 | ||||||||
Intuit Inc. | - | 〃 | - | US$ | 7,395 | N/A | US$ | 7,395 | ||||||||
Prudential Funding Corp. | - | 〃 | - | US$ | 7,252 | N/A | US$ | 7,252 | ||||||||
BPCE SA | - | 〃 | - | US$ | 7,222 | N/A | US$ | 7,222 | ||||||||
AstraZeneca PLC | - | 〃 | - | US$ | 7,190 | N/A | US$ | 7,190 | ||||||||
DNB Bank ASA | - | 〃 | - | US$ | 7,166 | N/A | US$ | 7,166 | ||||||||
Huntington Bancshares Incorporated | - | 〃 | - | US$ | 7,153 | N/A | US$ | 7,153 | ||||||||
Cargill, Incorporated | - | 〃 | - | US$ | 6,632 | N/A | US$ | 6,632 | ||||||||
Macquarie Bank Limited | - | 〃 | - | US$ | 6,589 | N/A | US$ | 6,589 | ||||||||
Montpelier Re Holdings Ltd. | - | 〃 | - | US$ | 6,504 | N/A | US$ | 6,504 | ||||||||
Deutsche Bank AG - New York Branch | - | 〃 | - | US$ | 6,502 | N/A | US$ | 6,502 | ||||||||
UBS Group Funding (Switzerland) AG | - | 〃 | - | US$ | 6,468 | N/A | US$ | 6,468 | ||||||||
Banco Bilbao Vizcaya Argentaria, S.A. | - | 〃 | - | US$ | 6,421 | N/A | US$ | 6,421 | ||||||||
Exxon Mobil Corporation | - | 〃 | - | US$ | 6,383 | N/A | US$ | 6,383 | ||||||||
Scentre Group Trust 1 | - | 〃 | - | US$ | 6,325 | N/A | US$ | 6,325 | ||||||||
ANZ New Zealand (Int'l) Limited | - | 〃 | - | US$ | 6,312 | N/A | US$ | 6,312 | ||||||||
Northwestern Mutual Global Funding | - | 〃 | - | US$ | 6,260 | N/A | US$ | 6,260 | ||||||||
Fox Corporation | - | 〃 | - | US$ | 6,203 | N/A | US$ | 6,203 | ||||||||
The Bank of New York Mellon Corporation | - | 〃 | - | US$ | 6,165 | N/A | US$ | 6,165 | ||||||||
WPP Finance 2010 | - | 〃 | - | US$ | 6,123 | N/A | US$ | 6,123 | ||||||||
W. P. Carey Inc. | - | 〃 | - | US$ | 5,915 | N/A | US$ | 5,915 | ||||||||
CVS Health Corporation | - | 〃 | - | US$ | 5,913 | N/A | US$ | 5,913 | ||||||||
Analog Devices, Inc. | - | 〃 | - | US$ | 5,908 | N/A | US$ | 5,908 | ||||||||
Cigna Corporation | - | 〃 | - | US$ | 5,906 | N/A | US$ | 5,906 | ||||||||
Sprint Spectrum Co Llc | - | 〃 | - | US$ | 5,879 | N/A | US$ | 5,879 | ||||||||
Capital One, National Association | - | 〃 | - | US$ | 5,867 | N/A | US$ | 5,867 | ||||||||
Intercontinental Exchange, Inc. | - | 〃 | - | US$ | 5,829 | N/A | US$ | 5,829 | ||||||||
Truist Bank | - | 〃 | - | US$ | 5,813 | N/A | US$ | 5,813 | ||||||||
Alabama Power Company | - | 〃 | - | US$ | 5,811 | N/A | US$ | 5,811 | ||||||||
Fiserv, Inc. | - | 〃 | - | US$ | 5,588 | N/A | US$ | 5,588 | ||||||||
UBS Group AG | - | 〃 | - | US$ | 5,584 | N/A | US$ | 5,584 | ||||||||
Capital One Financial Corporation | - | 〃 | - | US$ | 5,556 | N/A | US$ | 5,556 | ||||||||
NatWest Group plc | - | 〃 | - | US$ | 5,472 | N/A | US$ | 5,472 | ||||||||
CenterPoint Energy, Inc. | - | 〃 | - | US$ | 5,469 | N/A | US$ | 5,469 | ||||||||
Intel Corporation | - | 〃 | - | US$ | 5,462 | N/A | US$ | 5,462 | ||||||||
Five Corners Funding Trust | - | 〃 | - | US$ | 5,447 | N/A | US$ | 5,447 | ||||||||
Thermo Fisher Scientific Inc. | - | 〃 | - | US$ | 5,386 | N/A | US$ | 5,386 | ||||||||
SMBC Aviation Capital Finance DAC | - | 〃 | - | US$ | 5,379 | N/A | US$ | 5,379 | ||||||||
Georgia-Pacific LLC | - | 〃 | - | US$ | 5,364 | N/A | US$ | 5,364 | ||||||||
Fifth Third Bancorp | - | 〃 | - | US$ | 5,319 | N/A | US$ | 5,319 | ||||||||
Eastern Energy Gas Holdings, LLC | - | 〃 | - | US$ | 5,300 | N/A | US$ | 5,300 | ||||||||
Merck & Co., Inc. | - | 〃 | - | US$ | 5,213 | N/A | US$ | 5,213 | ||||||||
Svenska Handelsbanken AB (publ) | - | 〃 | - | US$ | 5,183 | N/A | US$ | 5,183 | ||||||||
Sempra Energy | - | 〃 | - | US$ | 5,182 | N/A | US$ | 5,182 | ||||||||
National Bank of Canada | - | 〃 | - | US$ | 5,171 | N/A | US$ | 5,171 | ||||||||
(Continued)
56
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | BMW US Capital, LLC | - | Financial assets at fair value through other comprehensive income | - | US$ | 5,123 | N/A | US$ | 5,123 | |||||||
Florida Power & Light Company | - | 〃 | - | US$ | 5,086 | N/A | US$ | 5,086 | ||||||||
Public Storage | - | 〃 | - | US$ | 5,004 | N/A | US$ | 5,004 | ||||||||
HP Inc. | - | 〃 | - | US$ | 4,971 | N/A | US$ | 4,971 | ||||||||
Enel Finance International N.V. | - | 〃 | - | US$ | 4,938 | N/A | US$ | 4,938 | ||||||||
Skandinaviska Enskilda Banken AB (publ) | - | 〃 | - | US$ | 4,880 | N/A | US$ | 4,880 | ||||||||
Danske Bank A/S | - | 〃 | - | US$ | 4,858 | N/A | US$ | 4,858 | ||||||||
Jackson National Life Global Funding | - | 〃 | - | US$ | 4,818 | N/A | US$ | 4,818 | ||||||||
Truist Financial Corporation | - | 〃 | - | US$ | 4,730 | N/A | US$ | 4,730 | ||||||||
UBS Group Funding (Jersey) Ltd. | - | 〃 | - | US$ | 4,674 | N/A | US$ | 4,674 | ||||||||
Bank of New Zealand | - | 〃 | - | US$ | 4,660 | N/A | US$ | 4,660 | ||||||||
Roche Holdings, Inc. | - | 〃 | - | US$ | 4,628 | N/A | US$ | 4,628 | ||||||||
Eversource Energy | - | 〃 | - | US$ | 4,578 | N/A | US$ | 4,578 | ||||||||
OGE Energy Corp. | - | 〃 | - | US$ | 4,452 | N/A | US$ | 4,452 | ||||||||
Swedbank AB (publ) | - | 〃 | - | US$ | 4,377 | N/A | US$ | 4,377 | ||||||||
NiSource Inc. | - | 〃 | - | US$ | 4,377 | N/A | US$ | 4,377 | ||||||||
7-Eleven, Inc. | - | 〃 | - | US$ | 4,353 | N/A | US$ | 4,353 | ||||||||
MPLX LP | - | 〃 | - | US$ | 4,331 | N/A | US$ | 4,331 | ||||||||
Fidelity National Information Services, Inc. | - | 〃 | - | US$ | 4,280 | N/A | US$ | 4,280 | ||||||||
Pioneer Natural Resources Company | - | 〃 | - | US$ | 4,277 | N/A | US$ | 4,277 | ||||||||
Coöperatieve Rabobank U.A. | - | 〃 | - | US$ | 4,273 | N/A | US$ | 4,273 | ||||||||
Element Fleet Management Corp. | - | 〃 | - | US$ | 4,245 | N/A | US$ | 4,245 | ||||||||
The Charles Schwab Corporation | - | 〃 | - | US$ | 4,235 | N/A | US$ | 4,235 | ||||||||
ERAC USA Finance LLC | - | 〃 | - | US$ | 4,211 | N/A | US$ | 4,211 | ||||||||
Dominion Energy, Inc. | - | 〃 | - | US$ | 4,191 | N/A | US$ | 4,191 | ||||||||
Exelon Corporation | - | 〃 | - | US$ | 4,181 | N/A | US$ | 4,181 | ||||||||
The European Bank for Reconstruction and Development | - | 〃 | - | US$ | 4,132 | N/A | US$ | 4,132 | ||||||||
Ameren Corporation | - | 〃 | - | US$ | 4,132 | N/A | US$ | 4,132 | ||||||||
Pricoa Global Funding I | - | 〃 | - | US$ | 4,082 | N/A | US$ | 4,082 | ||||||||
Ameriprise Financial, Inc. | - | 〃 | - | US$ | 4,082 | N/A | US$ | 4,082 | ||||||||
B.A.T. International Finance p.l.c. | - | 〃 | - | US$ | 4,082 | N/A | US$ | 4,082 | ||||||||
Appalachian Power Company | - | 〃 | - | US$ | 4,061 | N/A | US$ | 4,061 | ||||||||
American Express Credit Corporation | - | 〃 | - | US$ | 4,058 | N/A | US$ | 4,058 | ||||||||
Barclays Bank PLC | - | 〃 | - | US$ | 4,046 | N/A | US$ | 4,046 | ||||||||
Coca-Cola Europacific Partners PLC | - | 〃 | - | US$ | 4,023 | N/A | US$ | 4,023 | ||||||||
BorgWarner Inc. | - | 〃 | - | US$ | 3,959 | N/A | US$ | 3,959 | ||||||||
Credit Suisse Group Funding (Guernsey) Limited | - | 〃 | - | US$ | 3,906 | N/A | US$ | 3,906 | ||||||||
V.F. Corporation | - | 〃 | - | US$ | 3,906 | N/A | US$ | 3,906 | ||||||||
Bayer US Finance II LLC | - | 〃 | - | US$ | 3,889 | N/A | US$ | 3,889 | ||||||||
Groupe BPCE | - | 〃 | - | US$ | 3,843 | N/A | US$ | 3,843 | ||||||||
Hewlett Packard Enterprise Company | - | 〃 | - | US$ | 3,832 | N/A | US$ | 3,832 | ||||||||
Public Service Electric and Gas Company | - | 〃 | - | US$ | 3,801 | N/A | US$ | 3,801 | ||||||||
BG Energy Capital plc | - | 〃 | - | US$ | 3,789 | N/A | US$ | 3,789 | ||||||||
UBS AG, London Branch | - | 〃 | - | US$ | 3,789 | N/A | US$ | 3,789 | ||||||||
Reckitt Benckiser Treasury Services plc | - | 〃 | - | US$ | 3,770 | N/A | US$ | 3,770 | ||||||||
Monongahela Power Company | - | 〃 | - | US$ | 3,716 | N/A | US$ | 3,716 | ||||||||
Ross Stores, Inc. | - | 〃 | - | US$ | 3,715 | N/A | US$ | 3,715 | ||||||||
Welltower Inc. | - | 〃 | - | US$ | 3,713 | N/A | US$ | 3,713 | ||||||||
BOC Aviation Limited | - | 〃 | - | US$ | 3,687 | N/A | US$ | 3,687 | ||||||||
(Continued)
57
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | Diageo Capital plc | - | Financial assets at fair value through other comprehensive income | - | US$ | 3,627 | N/A | US$ | 3,627 | |||||||
Phillips 66 | - | 〃 | - | US$ | 3,614 | N/A | US$ | 3,614 | ||||||||
Verisk Analytics, Inc. | - | 〃 | - | US$ | 3,595 | N/A | US$ | 3,595 | ||||||||
Highmark Inc. | - | 〃 | - | US$ | 3,584 | N/A | US$ | 3,584 | ||||||||
Nomura Holdings, Inc. | - | 〃 | - | US$ | 3,582 | N/A | US$ | 3,582 | ||||||||
NEXTERA ENERGY CAPITAL HOLDINGS IN | - | 〃 | - | US$ | 3,574 | N/A | US$ | 3,574 | ||||||||
B.A.T Capital Corporation | - | 〃 | - | US$ | 3,495 | N/A | US$ | 3,495 | ||||||||
Gilead Sciences, Inc. | - | 〃 | - | US$ | 3,483 | N/A | US$ | 3,483 | ||||||||
Pfizer Inc. | - | 〃 | - | US$ | 3,474 | N/A | US$ | 3,474 | ||||||||
HSBC Bank Canada | - | 〃 | - | US$ | 3,435 | N/A | US$ | 3,435 | ||||||||
Penske Truck Leasing Co., L.P. | - | 〃 | - | US$ | 3,427 | N/A | US$ | 3,427 | ||||||||
The Western Union Company | - | 〃 | - | US$ | 3,361 | N/A | US$ | 3,361 | ||||||||
Johnson & Johnson | - | 〃 | - | US$ | 3,314 | N/A | US$ | 3,314 | ||||||||
Essex Portfolio Limited Partnership | - | 〃 | - | US$ | 3,289 | N/A | US$ | 3,289 | ||||||||
PNC Bank, National Association | - | 〃 | - | US$ | 3,260 | N/A | US$ | 3,260 | ||||||||
CNA Financial Corporation | - | 〃 | - | US$ | 3,246 | N/A | US$ | 3,246 | ||||||||
ONE Gas, Inc. | - | 〃 | - | US$ | 3,246 | N/A | US$ | 3,246 | ||||||||
Texas Instruments Incorporated | - | 〃 | - | US$ | 3,241 | N/A | US$ | 3,241 | ||||||||
Ventas Realty, Limited Partnership | - | 〃 | - | US$ | 3,236 | N/A | US$ | 3,236 | ||||||||
Cox Communications, Inc. | - | 〃 | - | US$ | 3,213 | N/A | US$ | 3,213 | ||||||||
Avangrid, Inc. | - | 〃 | - | US$ | 3,202 | N/A | US$ | 3,202 | ||||||||
Ralph Lauren Corporation | - | 〃 | - | US$ | 3,191 | N/A | US$ | 3,191 | ||||||||
Oncor Electric Delivery Company LLC | - | 〃 | - | US$ | 3,180 | N/A | US$ | 3,180 | ||||||||
Baidu, Inc. | - | 〃 | - | US$ | 3,144 | N/A | US$ | 3,144 | ||||||||
Novartis Capital Corporation | - | 〃 | - | US$ | 3,135 | N/A | US$ | 3,135 | ||||||||
Helmerich & Payne, Inc. | - | 〃 | - | US$ | 3,065 | N/A | US$ | 3,065 | ||||||||
Chevron Phillips Chemical Company LLC | - | 〃 | - | US$ | 3,026 | N/A | US$ | 3,026 | ||||||||
American Honda Finance Corporation | - | 〃 | - | US$ | 3,016 | N/A | US$ | 3,016 | ||||||||
Zions Bancorporation, National Association | - | 〃 | - | US$ | 3,014 | N/A | US$ | 3,014 | ||||||||
Microsoft Corporation | - | 〃 | - | US$ | 3,001 | N/A | US$ | 3,001 | ||||||||
Southern California Edison Company | - | 〃 | - | US$ | 2,969 | N/A | US$ | 2,969 | ||||||||
American Electric Power Company, Inc. | - | 〃 | - | US$ | 2,900 | N/A | US$ | 2,900 | ||||||||
Xcel Energy Inc. | - | 〃 | - | US$ | 2,894 | N/A | US$ | 2,894 | ||||||||
American Express Company | - | 〃 | - | US$ | 2,862 | N/A | US$ | 2,862 | ||||||||
WEC Energy Group, Inc. | - | 〃 | - | US$ | 2,839 | N/A | US$ | 2,839 | ||||||||
Air Products and Chemicals, Inc. | - | 〃 | - | US$ | 2,822 | N/A | US$ | 2,822 | ||||||||
Ryder System, Inc. | - | 〃 | - | US$ | 2,761 | N/A | US$ | 2,761 | ||||||||
PPL Electric Utilities Corporation | - | 〃 | - | US$ | 2,760 | N/A | US$ | 2,760 | ||||||||
Nuveen Finance, LLC | - | 〃 | - | US$ | 2,755 | N/A | US$ | 2,755 | ||||||||
AvalonBay Communities, Inc. | - | 〃 | - | US$ | 2,740 | N/A | US$ | 2,740 | ||||||||
Reliance Standard Life Global Funding II | - | 〃 | - | US$ | 2,726 | N/A | US$ | 2,726 | ||||||||
VEREIT Operating Partnership, L.P. | - | 〃 | - | US$ | 2,718 | N/A | US$ | 2,718 | ||||||||
CRH America, Inc. | - | 〃 | - | US$ | 2,692 | N/A | US$ | 2,692 | ||||||||
BBVA USA | - | 〃 | - | US$ | 2,679 | N/A | US$ | 2,679 | ||||||||
Kimco Realty Corporation | - | 〃 | - | US$ | 2,658 | N/A | US$ | 2,658 | ||||||||
CMS Energy Corporation | - | 〃 | - | US$ | 2,654 | N/A | US$ | 2,654 | ||||||||
Pinnacle West Capital Corporation | - | 〃 | - | US$ | 2,648 | N/A | US$ | 2,648 | ||||||||
Nutrien Ltd. | - | 〃 | - | US$ | 2,645 | N/A | US$ | 2,645 | ||||||||
The PNC Financial Services Group, Inc. | - | 〃 | - | US$ | 2,644 | N/A | US$ | 2,644 | ||||||||
(Continued)
58
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | Yara International ASA | - | Financial assets at fair value through other comprehensive income | - | US$ | 2,643 | N/A | US$ | 2,643 | |||||||
AutoZone, Inc. | - | 〃 | - | US$ | 2,629 | N/A | US$ | 2,629 | ||||||||
Magellan Midstream Partners, L.P. | - | 〃 | - | US$ | 2,618 | N/A | US$ | 2,618 | ||||||||
Air Lease Corporation | - | 〃 | - | US$ | 2,583 | N/A | US$ | 2,583 | ||||||||
John Deere Capital Corporation | - | 〃 | - | US$ | 2,577 | N/A | US$ | 2,577 | ||||||||
Empower Finance 2020, LP | - | 〃 | - | US$ | 2,510 | N/A | US$ | 2,510 | ||||||||
Chevron U.S.A. Inc. | - | 〃 | - | US$ | 2,480 | N/A | US$ | 2,480 | ||||||||
Raytheon Technologies Corporation | - | 〃 | - | US$ | 2,473 | N/A | US$ | 2,473 | ||||||||
Reynolds American Inc. | - | 〃 | - | US$ | 2,469 | N/A | US$ | 2,469 | ||||||||
Georgia Power Company | - | 〃 | - | US$ | 2,469 | N/A | US$ | 2,469 | ||||||||
Nestlé Holdings, Inc. | - | 〃 | - | US$ | 2,464 | N/A | US$ | 2,464 | ||||||||
Berkshire Hathaway Inc. | - | 〃 | - | US$ | 2,458 | N/A | US$ | 2,458 | ||||||||
Duke Energy Corporation | - | 〃 | - | US$ | 2,405 | N/A | US$ | 2,405 | ||||||||
DuPont de Nemours, Inc. | - | 〃 | - | US$ | 2,383 | N/A | US$ | 2,383 | ||||||||
USAA CAPITAL CORP | - | 〃 | - | US$ | 2,369 | N/A | US$ | 2,369 | ||||||||
Suncor Energy Inc. | - | 〃 | - | US$ | 2,368 | N/A | US$ | 2,368 | ||||||||
O'Reilly Automotive, Inc. | - | 〃 | - | US$ | 2,363 | N/A | US$ | 2,363 | ||||||||
Union Pacific Corporation | - | 〃 | - | US$ | 2,360 | N/A | US$ | 2,360 | ||||||||
Health Care Service Corporation | - | 〃 | - | US$ | 2,279 | N/A | US$ | 2,279 | ||||||||
Mead Johnson Nutrition Company | - | 〃 | - | US$ | 2,249 | N/A | US$ | 2,249 | ||||||||
The East Ohio Gas Company | - | 〃 | - | US$ | 2,237 | N/A | US$ | 2,237 | ||||||||
ITC Holdings Corp. | - | 〃 | - | US$ | 2,236 | N/A | US$ | 2,236 | ||||||||
Magna International Inc. | - | 〃 | - | US$ | 2,230 | N/A | US$ | 2,230 | ||||||||
GA Global Funding Trust | - | 〃 | - | US$ | 2,217 | N/A | US$ | 2,217 | ||||||||
Tyson Foods, Inc. | - | 〃 | - | US$ | 2,199 | N/A | US$ | 2,199 | ||||||||
Citizens Bank, National Association | - | 〃 | - | US$ | 2,179 | N/A | US$ | 2,179 | ||||||||
Healthpeak Properties, Inc. | - | 〃 | - | US$ | 2,169 | N/A | US$ | 2,169 | ||||||||
Amphenol Corporation | - | 〃 | - | US$ | 2,161 | N/A | US$ | 2,161 | ||||||||
ASB Bank Limited | - | 〃 | - | US$ | 2,152 | N/A | US$ | 2,152 | ||||||||
Hormel Foods Corporation | - | 〃 | - | US$ | 2,142 | N/A | US$ | 2,142 | ||||||||
Tucson Electric Power Company | - | 〃 | - | US$ | 2,141 | N/A | US$ | 2,141 | ||||||||
Otis Worldwide Corporation | - | 〃 | - | US$ | 2,105 | N/A | US$ | 2,105 | ||||||||
Keurig Dr Pepper Inc. | - | 〃 | - | US$ | 2,059 | N/A | US$ | 2,059 | ||||||||
CK Hutchison International 16 Ltd | - | 〃 | - | US$ | 2,006 | N/A | US$ | 2,006 | ||||||||
NBN Co Limited | - | 〃 | - | US$ | 2,002 | N/A | US$ | 2,002 | ||||||||
Shinhan Financial Group Co., Ltd. | - | 〃 | - | US$ | 1,998 | N/A | US$ | 1,998 | ||||||||
Barclays Capital Inc. | - | 〃 | - | US$ | 1,997 | N/A | US$ | 1,997 | ||||||||
TSMC Global Ltd. | - | 〃 | - | US$ | 1,988 | N/A | US$ | 1,988 | ||||||||
Regions Financial Corporation | - | 〃 | - | US$ | 1,972 | N/A | US$ | 1,972 | ||||||||
Sydney Airport Finance Company Pty Ltd | - | 〃 | - | US$ | 1,952 | N/A | US$ | 1,952 | ||||||||
Kentucky Utilities Company | - | 〃 | - | US$ | 1,948 | N/A | US$ | 1,948 | ||||||||
Automatic Data Processing, Inc. | - | 〃 | - | US$ | 1,932 | N/A | US$ | 1,932 | ||||||||
AmerisourceBergen Corporation | - | 〃 | - | US$ | 1,904 | N/A | US$ | 1,904 | ||||||||
Korea Hydro & Nuclear Power Co., Ltd. | - | 〃 | - | US$ | 1,903 | N/A | US$ | 1,903 | ||||||||
Entergy Corporation | - | 〃 | - | US$ | 1,901 | N/A | US$ | 1,901 | ||||||||
Wipro IT Services LLC | - | 〃 | - | US$ | 1,899 | N/A | US$ | 1,899 | ||||||||
Evergy Kansas Central, Inc. | - | 〃 | - | US$ | 1,892 | N/A | US$ | 1,892 | ||||||||
Public Service Enterprise Group Incorporated | - | 〃 | - | US$ | 1,890 | N/A | US$ | 1,890 | ||||||||
Gulfstream Natural Gas System, L.L.C. | - | 〃 | - | US$ | 1,885 | N/A | US$ | 1,885 | ||||||||
(Continued)
59
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | Burlington Northern Santa Fe, LLC | - | Financial assets at fair value through other comprehensive income | - | US$ | 1,883 | N/A | US$ | 1,883 | |||||||
Rio Tinto Finance (USA) Limited | - | 〃 | - | US$ | 1,855 | N/A | US$ | 1,855 | ||||||||
Caterpillar Financial Services Corporation | - | 〃 | - | US$ | 1,846 | N/A | US$ | 1,846 | ||||||||
Philip Morris International Inc. | - | 〃 | - | US$ | 1,823 | N/A | US$ | 1,823 | ||||||||
Boston Properties Limited Partnership | - | 〃 | - | US$ | 1,812 | N/A | US$ | 1,812 | ||||||||
McCormick & Company, Incorporated | - | 〃 | - | US$ | 1,807 | N/A | US$ | 1,807 | ||||||||
Infor, Inc. | - | 〃 | - | US$ | 1,792 | N/A | US$ | 1,792 | ||||||||
Quest Diagnostics Incorporated | - | 〃 | - | US$ | 1,781 | N/A | US$ | 1,781 | ||||||||
Berkshire Hathaway Energy Company | - | 〃 | - | US$ | 1,753 | N/A | US$ | 1,753 | ||||||||
AIA Group Limited | - | 〃 | - | US$ | 1,748 | N/A | US$ | 1,748 | ||||||||
eBay Inc. | - | 〃 | - | US$ | 1,728 | N/A | US$ | 1,728 | ||||||||
University of California | - | 〃 | - | US$ | 1,726 | N/A | US$ | 1,726 | ||||||||
International Business Machines Corporation | - | 〃 | - | US$ | 1,726 | N/A | US$ | 1,726 | ||||||||
Emerson Electric Co. | - | 〃 | - | US$ | 1,715 | N/A | US$ | 1,715 | ||||||||
Svenska Handelsbanken, NY | - | 〃 | - | US$ | 1,700 | N/A | US$ | 1,700 | ||||||||
Westpac Banking Corporation | - | 〃 | - | US$ | 1,697 | N/A | US$ | 1,697 | ||||||||
APT Pipelines Limited | - | 〃 | - | US$ | 1,683 | N/A | US$ | 1,683 | ||||||||
Anthem, Inc. | - | 〃 | - | US$ | 1,675 | N/A | US$ | 1,675 | ||||||||
Midwest Connector Capital Company LLC | - | 〃 | - | US$ | 1,673 | N/A | US$ | 1,673 | ||||||||
Toyota Industries Corporation | - | 〃 | - | US$ | 1,654 | N/A | US$ | 1,654 | ||||||||
MetLife, Inc. | - | 〃 | - | US$ | 1,649 | N/A | US$ | 1,649 | ||||||||
Alimentation Couche-Tard Inc. | - | 〃 | - | US$ | 1,647 | N/A | US$ | 1,647 | ||||||||
China Resources Gas Group Limited | - | 〃 | - | US$ | 1,640 | N/A | US$ | 1,640 | ||||||||
The Southern Company | - | 〃 | - | US$ | 1,637 | N/A | US$ | 1,637 | ||||||||
Duke Energy Florida, LLC | - | 〃 | - | US$ | 1,635 | N/A | US$ | 1,635 | ||||||||
Suntory Holdings Limited | - | 〃 | - | US$ | 1,622 | N/A | US$ | 1,622 | ||||||||
NSTAR Electric Company | - | 〃 | - | US$ | 1,622 | N/A | US$ | 1,622 | ||||||||
Brookfield Finance LLC | - | 〃 | - | US$ | 1,615 | N/A | US$ | 1,615 | ||||||||
F&G Global Funding | - | 〃 | - | US$ | 1,615 | N/A | US$ | 1,615 | ||||||||
Panasonic Corporation | - | 〃 | - | US$ | 1,606 | N/A | US$ | 1,606 | ||||||||
CPI Property Group S.A. | - | 〃 | - | US$ | 1,603 | N/A | US$ | 1,603 | ||||||||
CK Hutchison International (19) Limited | - | 〃 | - | US$ | 1,595 | N/A | US$ | 1,595 | ||||||||
Marsh & McLennan Companies, Inc. | - | 〃 | - | US$ | 1,567 | N/A | US$ | 1,567 | ||||||||
Marathon Petroleum Corporation | - | 〃 | - | US$ | 1,561 | N/A | US$ | 1,561 | ||||||||
National Australia Bank Limited, New York Branch | - | 〃 | - | US$ | 1,521 | N/A | US$ | 1,521 | ||||||||
KEB Hana Bank | - | 〃 | - | US$ | 1,506 | N/A | US$ | 1,506 | ||||||||
Alliant Energy Finance, LLC | - | 〃 | - | US$ | 1,495 | N/A | US$ | 1,495 | ||||||||
Virginia Electric and Power Company | - | 〃 | - | US$ | 1,458 | N/A | US$ | 1,458 | ||||||||
Daiwa Securities Group Inc. | - | 〃 | - | US$ | 1,415 | N/A | US$ | 1,415 | ||||||||
NetApp, Inc. | - | 〃 | - | US$ | 1,414 | N/A | US$ | 1,414 | ||||||||
Kilroy Realty, L.P. | - | 〃 | - | US$ | 1,389 | N/A | US$ | 1,389 | ||||||||
Andrew W. Mellon Foundation, The | - | 〃 | - | US$ | 1,375 | N/A | US$ | 1,375 | ||||||||
PACCAR Financial Corp. | - | 〃 | - | US$ | 1,347 | N/A | US$ | 1,347 | ||||||||
Entergy Arkansas, LLC | - | 〃 | - | US$ | 1,334 | N/A | US$ | 1,334 | ||||||||
Ontario Teachers' Cadillac Fairview Properties Trust | - | 〃 | - | US$ | 1,324 | N/A | US$ | 1,324 | ||||||||
Martin Marietta Materials, Inc. | - | 〃 | - | US$ | 1,311 | N/A | US$ | 1,311 | ||||||||
State Of Tennessee | - | 〃 | - | US$ | 1,264 | N/A | US$ | 1,264 | ||||||||
Lincoln National Corporation | - | 〃 | - | US$ | 1,207 | N/A | US$ | 1,207 | ||||||||
PSEG Power LLC | - | 〃 | - | US$ | 1,196 | N/A | US$ | 1,196 | ||||||||
(Continued)
60
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | State Street Corporation | - | Financial assets at fair value through other comprehensive income | - | US$ | 1,190 | N/A | US$ | 1,190 | |||||||
Enterprise Products Operating LLC | - | 〃 | - | US$ | 1,138 | N/A | US$ | 1,138 | ||||||||
The Curators of the University of Missouri | - | 〃 | - | US$ | 1,137 | N/A | US$ | 1,137 | ||||||||
Standard Chartered Bank New York Branch | - | 〃 | - | US$ | 1,136 | N/A | US$ | 1,136 | ||||||||
The Cleveland Electric Illuminating Company | - | 〃 | - | US$ | 1,135 | N/A | US$ | 1,135 | ||||||||
Foxconn (Far East) Limited | - | 〃 | - | US$ | 1,106 | N/A | US$ | 1,106 | ||||||||
Sinopec Group Overseas Development (2014) Ltd. | - | 〃 | - | US$ | 1,092 | N/A | US$ | 1,092 | ||||||||
BBVA Bancomer, S.A. | - | 〃 | - | US$ | 1,089 | N/A | US$ | 1,089 | ||||||||
Brighthouse Financial Global Funding | - | 〃 | - | US$ | 1,083 | N/A | US$ | 1,083 | ||||||||
Kansas City Southern | - | 〃 | - | US$ | 1,081 | N/A | US$ | 1,081 | ||||||||
Baltimore Gas and Electric Company | - | 〃 | - | US$ | 1,050 | N/A | US$ | 1,050 | ||||||||
DH Europe Finance II S.a.r.l. | - | 〃 | - | US$ | 1,048 | N/A | US$ | 1,048 | ||||||||
Entergy Mississippi, LLC | - | 〃 | - | US$ | 1,041 | N/A | US$ | 1,041 | ||||||||
USAA Capital Corp. | - | 〃 | - | US$ | 1,040 | N/A | US$ | 1,040 | ||||||||
Loews Corporation | - | 〃 | - | US$ | 1,035 | N/A | US$ | 1,035 | ||||||||
Denver City & County Housing Authority | - | 〃 | - | US$ | 1,032 | N/A | US$ | 1,032 | ||||||||
MassMutual Global Funding II | - | 〃 | - | US$ | 1,029 | N/A | US$ | 1,029 | ||||||||
Kaiser Foundation Hospitals | - | 〃 | - | US$ | 1,023 | N/A | US$ | 1,023 | ||||||||
Texas Eastern Transmission, LP | - | 〃 | - | US$ | 1,021 | N/A | US$ | 1,021 | ||||||||
Kinder Morgan, Inc. | - | 〃 | - | US$ | 1,018 | N/A | US$ | 1,018 | ||||||||
Mondelez International Holdings Netherlands Bv | - | 〃 | - | US$ | 1,016 | N/A | US$ | 1,016 | ||||||||
National Rural Utilities Cooperative Finance Corporation | - | 〃 | - | US$ | 990 | N/A | US$ | 990 | ||||||||
Aflac Incorporated | - | 〃 | - | US$ | 966 | N/A | US$ | 966 | ||||||||
Unilever Capital Corporation | - | 〃 | - | US$ | 948 | N/A | US$ | 948 | ||||||||
QNB Finance Ltd. | - | 〃 | - | US$ | 947 | N/A | US$ | 947 | ||||||||
Southern California Gas Company | - | 〃 | - | US$ | 944 | N/A | US$ | 944 | ||||||||
BHP Billiton Finance (USA) Limited | - | 〃 | - | US$ | 937 | N/A | US$ | 937 | ||||||||
Mitsubishi HC Capital Inc. | - | 〃 | - | US$ | 920 | N/A | US$ | 920 | ||||||||
Prudential Financial, Inc. | - | 〃 | - | US$ | 914 | N/A | US$ | 914 | ||||||||
KeyBank National Association | - | 〃 | - | US$ | 875 | N/A | US$ | 875 | ||||||||
Palm Beach County, Florida | - | 〃 | - | US$ | 856 | N/A | US$ | 856 | ||||||||
The Walt Disney Company | - | 〃 | - | US$ | 841 | N/A | US$ | 841 | ||||||||
Niagara Mohawk Power Corporation | - | 〃 | - | US$ | 833 | N/A | US$ | 833 | ||||||||
Entergy Louisiana, LLC | - | 〃 | - | US$ | 832 | N/A | US$ | 832 | ||||||||
Sinopec Capital (2013) Ltd. | - | 〃 | - | US$ | 829 | N/A | US$ | 829 | ||||||||
Aetna Inc. | - | 〃 | - | US$ | 827 | N/A | US$ | 827 | ||||||||
Visa Inc. | - | 〃 | - | US$ | 821 | N/A | US$ | 821 | ||||||||
Oregon Health & Science University | - | 〃 | - | US$ | 819 | N/A | US$ | 819 | ||||||||
Southern Power Company | - | 〃 | - | US$ | 803 | N/A | US$ | 803 | ||||||||
MASCO CORP | - | 〃 | - | US$ | 780 | N/A | US$ | 780 | ||||||||
Sky Limited | - | 〃 | - | US$ | 765 | N/A | US$ | 765 | ||||||||
Warner Media, LLC | - | 〃 | - | US$ | 754 | N/A | US$ | 754 | ||||||||
Canadian Natural Resources Limited | - | 〃 | - | US$ | 748 | N/A | US$ | 748 | ||||||||
Hyundai Capital Services, Inc. | - | 〃 | - | US$ | 738 | N/A | US$ | 738 | ||||||||
National Australia Bank Limited | - | 〃 | - | US$ | 734 | N/A | US$ | 734 | ||||||||
Sodexo, Inc. | - | 〃 | - | US$ | 730 | N/A | US$ | 730 | ||||||||
Sinopec Group Overseas Development (2017) Limited | - | 〃 | - | US$ | 715 | N/A | US$ | 715 | ||||||||
Abbott Laboratories | - | 〃 | - | US$ | 693 | N/A | US$ | 693 | ||||||||
Stryker Corporation | - | 〃 | - | US$ | 677 | N/A | US$ | 677 | ||||||||
(Continued)
61
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | Bell Canada, Inc. | - | Financial assets at fair value through other comprehensive income | - | US$ | 651 | N/A | US$ | 651 | |||||||
Glencore Funding LLC | - | 〃 | - | US$ | 636 | N/A | US$ | 636 | ||||||||
Republic Services, Inc. | - | 〃 | - | US$ | 634 | N/A | US$ | 634 | ||||||||
Florida Hurricane Catastrophe Fund Finance Corporation | - | 〃 | - | US$ | 631 | N/A | US$ | 631 | ||||||||
QUALCOMM Incorporated | - | 〃 | - | US$ | 630 | N/A | US$ | 630 | ||||||||
American Water Capital Corp. | - | 〃 | - | US$ | 625 | N/A | US$ | 625 | ||||||||
Intact U.S. Holdings Inc. | - | 〃 | - | US$ | 624 | N/A | US$ | 624 | ||||||||
UBS AG (LONDON BRANCH) | - | 〃 | - | US$ | 621 | N/A | US$ | 621 | ||||||||
Sinopec Group Overseas Development (2012) Ltd. | - | 〃 | - | US$ | 616 | N/A | US$ | 616 | ||||||||
Ohio Power Company | - | 〃 | - | US$ | 608 | N/A | US$ | 608 | ||||||||
Port of Morrow | - | 〃 | - | US$ | 603 | N/A | US$ | 603 | ||||||||
Discover Bank (New Castle, Delaware) | - | 〃 | - | US$ | 599 | N/A | US$ | 599 | ||||||||
Arizona Public Service Company | - | 〃 | - | US$ | 595 | N/A | US$ | 595 | ||||||||
Duke Energy Progress, LLC | - | 〃 | - | US$ | 585 | N/A | US$ | 585 | ||||||||
Dormitory Authority of the State of New York | - | 〃 | - | US$ | 584 | N/A | US$ | 584 | ||||||||
Shell International Finance B.V. | - | 〃 | - | US$ | 573 | N/A | US$ | 573 | ||||||||
Fifth Third Bank, National Association | - | 〃 | - | US$ | 562 | N/A | US$ | 562 | ||||||||
United Parcel Service, Inc. | - | 〃 | - | US$ | 553 | N/A | US$ | 553 | ||||||||
State of Hawaii | - | 〃 | - | US$ | 548 | N/A | US$ | 548 | ||||||||
Trane Technologies Luxembourg Finance S.A. | - | 〃 | - | US$ | 547 | N/A | US$ | 547 | ||||||||
Simon Property Group, L.P. | - | 〃 | - | US$ | 520 | N/A | US$ | 520 | ||||||||
TTX Company | - | 〃 | - | US$ | 517 | N/A | US$ | 517 | ||||||||
Altria Group, Inc. | - | 〃 | - | US$ | 517 | N/A | US$ | 517 | ||||||||
Baker Hughes Holdings LLC | - | 〃 | - | US$ | 516 | N/A | US$ | 516 | ||||||||
174 Power Global Corporation | - | 〃 | - | US$ | 509 | N/A | US$ | 509 | ||||||||
Capital Cities/ABC, Inc. | - | 〃 | - | US$ | 505 | N/A | US$ | 505 | ||||||||
Danone S.A. | - | 〃 | - | US$ | 502 | N/A | US$ | 502 | ||||||||
First Abu Dhabi Bank USA N.V. | - | 〃 | - | US$ | 470 | N/A | US$ | 470 | ||||||||
Brazos Higher Education Authority Inc | - | 〃 | - | US$ | 468 | N/A | US$ | 468 | ||||||||
Target Corporation | - | 〃 | - | US$ | 446 | N/A | US$ | 446 | ||||||||
University of Massachusetts Building Authority | - | 〃 | - | US$ | 437 | N/A | US$ | 437 | ||||||||
MUFG Union Bank, National Association | - | 〃 | - | US$ | 435 | N/A | US$ | 435 | ||||||||
PayPal Holdings, Inc. | - | 〃 | - | US$ | 434 | N/A | US$ | 434 | ||||||||
Sierra Pacific Power Company | - | 〃 | - | US$ | 425 | N/A | US$ | 425 | ||||||||
Comerica Bank | - | 〃 | - | US$ | 421 | N/A | US$ | 421 | ||||||||
Banco del Estado de Chile | - | 〃 | - | US$ | 416 | N/A | US$ | 416 | ||||||||
Komatsu Finance America, Inc. | - | 〃 | - | US$ | 409 | N/A | US$ | 409 | ||||||||
Honeywell International Inc. | - | 〃 | - | US$ | 408 | N/A | US$ | 408 | ||||||||
PepsiCo, Inc. | - | 〃 | - | US$ | 394 | N/A | US$ | 394 | ||||||||
StanCorp Financial Group Inc. | - | 〃 | - | US$ | 382 | N/A | US$ | 382 | ||||||||
Enbridge Inc. | - | 〃 | - | US$ | 374 | N/A | US$ | 374 | ||||||||
Principal Financial Group, Inc. | - | 〃 | - | US$ | 367 | N/A | US$ | 367 | ||||||||
Canadian Pacific Railway Company | - | 〃 | - | US$ | 363 | N/A | US$ | 363 | ||||||||
Pernod Ricard SA | - | 〃 | - | US$ | 358 | N/A | US$ | 358 | ||||||||
First Republic Bank | - | 〃 | - | US$ | 358 | N/A | US$ | 358 | ||||||||
Coöperatieve Rabobank U.A., New York Branch | - | 〃 | - | US$ | 349 | N/A | US$ | 349 | ||||||||
Archer-Daniels-Midland Company | - | 〃 | - | US$ | 346 | N/A | US$ | 346 | ||||||||
Amgen Inc. | - | 〃 | - | US$ | 342 | N/A | US$ | 342 | ||||||||
The Allstate Corporation | - | 〃 | - | US$ | 327 | N/A | US$ | 327 | ||||||||
(Continued)
62
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | BP Capital Markets p.l.c. | - | Financial assets at fair value through other comprehensive income | - | US$ | 325 | N/A | US$ | 325 | |||||||
Total Capital International | - | 〃 | - | US$ | 316 | N/A | US$ | 316 | ||||||||
América Móvil, S.A.B. de C.V. | - | 〃 | - | US$ | 308 | N/A | US$ | 308 | ||||||||
salesforce.com, inc. | - | 〃 | - | US$ | 300 | N/A | US$ | 300 | ||||||||
Aon Corporation | - | 〃 | - | US$ | 297 | N/A | US$ | 297 | ||||||||
Johnson Controls International plc | - | 〃 | - | US$ | 295 | N/A | US$ | 295 | ||||||||
Mondelez International, Inc. | - | 〃 | - | US$ | 280 | N/A | US$ | 280 | ||||||||
Starbucks Corporation | - | 〃 | - | US$ | 279 | N/A | US$ | 279 | ||||||||
Southern Natural Gas Company, L.L.C. | - | 〃 | - | US$ | 275 | N/A | US$ | 275 | ||||||||
Equitable Holdings, Inc. | - | 〃 | - | US$ | 258 | N/A | US$ | 258 | ||||||||
Sales Tax Securitization Corporation Of Chicago | - | 〃 | - | US$ | 256 | N/A | US$ | 256 | ||||||||
The Huntington National Bank | - | 〃 | - | US$ | 255 | N/A | US$ | 255 | ||||||||
Capital One Bank (USA), National Association | - | 〃 | - | US$ | 252 | N/A | US$ | 252 | ||||||||
E. I. du Pont de Nemours and Company | - | 〃 | - | US$ | 251 | N/A | US$ | 251 | ||||||||
Waste Management, Inc. | - | 〃 | - | US$ | 248 | N/A | US$ | 248 | ||||||||
Nasdaq, Inc. | - | 〃 | - | US$ | 220 | N/A | US$ | 220 | ||||||||
Deere & Company | - | 〃 | - | US$ | 213 | N/A | US$ | 213 | ||||||||
Saudi Arabian Oil Company | - | 〃 | - | US$ | 202 | N/A | US$ | 202 | ||||||||
San Francisco Public Utilities Commission | - | 〃 | - | US$ | 191 | N/A | US$ | 191 | ||||||||
Nucor Corporation | - | 〃 | - | US$ | 186 | N/A | US$ | 186 | ||||||||
Hoover Alabama Board Of Education | - | 〃 | - | US$ | 180 | N/A | US$ | 180 | ||||||||
Sprint Spectrum Co LLC, Sprint Spectrum Co II LLC, Sprint Spectrum Co III LLC Series 2016- | - | 〃 | - | US$ | 170 | N/A | US$ | 170 | ||||||||
The New York State Urban Development Corporation | - | 〃 | - | US$ | 147 | N/A | US$ | 147 | ||||||||
Electricité de France S.A. | - | 〃 | - | US$ | 110 | N/A | US$ | 110 | ||||||||
Columbia Property Trust Operating Partnership, L.P. | - | 〃 | - | US$ | 108 | N/A | US$ | 108 | ||||||||
Pima County, Arizona | - | 〃 | - | US$ | 80 | N/A | US$ | 80 | ||||||||
Municipal Improvement Corporation of Los Angeles | - | 〃 | - | US$ | 80 | N/A | US$ | 80 | ||||||||
State of Wisconsin | - | 〃 | - | US$ | 65 | N/A | US$ | 65 | ||||||||
Huntington Beach California | - | 〃 | - | US$ | 50 | N/A | US$ | 50 | ||||||||
City of Worcester, MA | - | 〃 | - | US$ | 30 | N/A | US$ | 30 | ||||||||
Nueces County | - | 〃 | - | US$ | 25 | N/A | US$ | 25 | ||||||||
Citigroup Global Market Inc. | - | Financial assets at amortized cost | - | US$ | 99,967 | N/A | US$ | 100,071 | ||||||||
Wells Fargo & Company | - | 〃 | - | US$ | 30,517 | N/A | US$ | 31,448 | ||||||||
Goldman Sachs Group Inc/The | - | 〃 | - | US$ | 14,943 | N/A | US$ | 15,133 | ||||||||
JPMorgan Chase & Co. | - | 〃 | - | US$ | 10,069 | N/A | US$ | 10,181 | ||||||||
Government bond | ||||||||||||||||
United States Department of The Treasury | - | Financial assets at fair value through other comprehensive income | - | US$ | 862,036 | N/A | US$ | 862,036 | ||||||||
Emirate of Abu Dhabi | - | 〃 | - | US$ | 1,509 | N/A | US$ | 1,509 | ||||||||
Qatar | - | 〃 | - | US$ | 1,380 | N/A | US$ | 1,380 | ||||||||
Agency bonds/Agency mortgage-backed securities | ||||||||||||||||
Federal National Mortgage Association | - | Financial assets at fair value through other comprehensive income | - | US$ | 583,726 | N/A | US$ | 583,726 | ||||||||
Government National Mortgage Association | - | 〃 | - | US$ | 328,898 | N/A | US$ | 328,898 | ||||||||
Federal Home Loan Mortgage Corporation | - | 〃 | - | US$ | 231,388 | N/A | US$ | 231,388 | ||||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 2 | - | 〃 | - | US$ | 10,164 | N/A | US$ | 10,164 | ||||||||
(Continued)
63
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | Asset-backed securities | |||||||||||||||
JPMBB Commercial Mortgage Securities Trust 2014-C24 | - | Financial assets at fair value through other comprehensive income | - | US$ | 10,535 | N/A | US$ | 10,535 | ||||||||
Wells Fargo Commercial Mortgage Trust 2016-Bnk1 | - | 〃 | - | US$ | 7,726 | N/A | US$ | 7,726 | ||||||||
Mercedes-Benz Auto Lease Trust 2021-B | - | 〃 | - | US$ | 7,146 | N/A | US$ | 7,146 | ||||||||
Bank 2020-BNK26 | - | 〃 | - | US$ | 7,076 | N/A | US$ | 7,076 | ||||||||
Benchmark 2019-B11 Mortgage Trust | - | 〃 | - | US$ | 6,396 | N/A | US$ | 6,396 | ||||||||
Wells Fargo Commercial Mortgage Trust 2016-C35 | - | 〃 | - | US$ | 6,238 | N/A | US$ | 6,238 | ||||||||
Citigroup Commercial Mortgage Trust 2014-GC21 | - | 〃 | - | US$ | 5,995 | N/A | US$ | 5,995 | ||||||||
Wells Fargo Commercial Mortgage Trust 2021-C59 | - | 〃 | - | US$ | 5,672 | N/A | US$ | 5,672 | ||||||||
WFRBS Commercial Mortgage Trust 2013-C13 | - | 〃 | - | US$ | 5,637 | N/A | US$ | 5,637 | ||||||||
UBS-Barclays Commercial Mortgage Trust 2012-C2 | - | 〃 | - | US$ | 5,513 | N/A | US$ | 5,513 | ||||||||
BBCMS 2018-Tall Mortgage Trust | - | 〃 | - | US$ | 5,466 | N/A | US$ | 5,466 | ||||||||
Morgan Stanley Bank America Merrill Lynch Trust 2016-C30 | - | 〃 | - | US$ | 5,232 | N/A | US$ | 5,232 | ||||||||
Hyundai Auto Lease Securitization Trust 2021-B | - | 〃 | - | US$ | 5,140 | N/A | US$ | 5,140 | ||||||||
Commerce 2015-CCRE24 Mortgage Trust | - | 〃 | - | US$ | 5,038 | N/A | US$ | 5,038 | ||||||||
Morgan Stanley Bank America Merrill Lynch Trust 2013-C10 | - | 〃 | - | US$ | 4,995 | N/A | US$ | 4,995 | ||||||||
MRCD 2019-Prkc Mortgage Trust | - | 〃 | - | US$ | 4,876 | N/A | US$ | 4,876 | ||||||||
Msbam 2016-C29 | - | 〃 | - | US$ | 4,661 | N/A | US$ | 4,661 | ||||||||
Bank 2019-Bnk22 | - | 〃 | - | US$ | 4,340 | N/A | US$ | 4,340 | ||||||||
JPMCC 2017-JP7 | - | 〃 | - | US$ | 4,208 | N/A | US$ | 4,208 | ||||||||
Bank 2017-Bnk6 | - | 〃 | - | US$ | 4,187 | N/A | US$ | 4,187 | ||||||||
Bank 2019-Bnk17 | - | 〃 | - | US$ | 4,182 | N/A | US$ | 4,182 | ||||||||
BANK 2017-BNK5 | - | 〃 | - | US$ | 4,181 | N/A | US$ | 4,181 | ||||||||
J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-LC9 | - | 〃 | - | US$ | 4,000 | N/A | US$ | 4,000 | ||||||||
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7 | - | 〃 | - | US$ | 3,986 | N/A | US$ | 3,986 | ||||||||
Mercedes-Benz Auto Lease Trust 2019-B | - | 〃 | - | US$ | 3,897 | N/A | US$ | 3,897 | ||||||||
UBS Barclays Commercial Mortgage Trust 2013-C6 | - | 〃 | - | US$ | 3,287 | N/A | US$ | 3,287 | ||||||||
GS Mortgage Securities Trust 2015-GC32 | - | 〃 | - | US$ | 3,221 | N/A | US$ | 3,221 | ||||||||
JPMBB Commercial Mortgage Securities Trust 2015-C28 | - | 〃 | - | US$ | 3,200 | N/A | US$ | 3,200 | ||||||||
Wells Fargo Commercial Mortgage Trust 2017-C40 | - | 〃 | - | US$ | 3,083 | N/A | US$ | 3,083 | ||||||||
UBS Commercial Mortgage Trust 2018-C10 | - | 〃 | - | US$ | 3,046 | N/A | US$ | 3,046 | ||||||||
GS Mortgage Securities Corporation Trust 2018-RIVR | - | 〃 | - | US$ | 2,994 | N/A | US$ | 2,994 | ||||||||
Benchmark 2018-B3 Commercial Mortgage Trust | - | 〃 | - | US$ | 2,960 | N/A | US$ | 2,960 | ||||||||
Enterprise Fleet Financing 2020-1 LLC | - | 〃 | - | US$ | 2,956 | N/A | US$ | 2,956 | ||||||||
Hyundai Auto Receivables Trust 2018-A | - | 〃 | - | US$ | 2,910 | N/A | US$ | 2,910 | ||||||||
Ford Credit Auto Lease Trust 2020-B | - | 〃 | - | US$ | 2,862 | N/A | US$ | 2,862 | ||||||||
Citigroup Commercial Mortgage Trust 2016-C3 | - | 〃 | - | US$ | 2,762 | N/A | US$ | 2,762 | ||||||||
UBS-Barclays Commercial Mortgage Trust 2012-C3 | - | 〃 | - | US$ | 2,699 | N/A | US$ | 2,699 | ||||||||
GS Mortgage Securities Trust 2013-GCJ12 | - | 〃 | - | US$ | 2,696 | N/A | US$ | 2,696 | ||||||||
Ford Credit Auto Owner Trust 2020-Rev1 | - | 〃 | - | US$ | 2,603 | N/A | US$ | 2,603 | ||||||||
Wells Fargo Commercial Mortgage Trust 2020-C55 | - | 〃 | - | US$ | 2,545 | N/A | US$ | 2,545 | ||||||||
Federal National Mortgage Association, Inc. | - | 〃 | - | US$ | 2,465 | N/A | US$ | 2,465 | ||||||||
BBCMS Mortgage Trust 2020-C8 | - | 〃 | - | US$ | 2,423 | N/A | US$ | 2,423 | ||||||||
Citigroup Commercial Mortgage Trust 2016-P5 | - | 〃 | - | US$ | 2,419 | N/A | US$ | 2,419 | ||||||||
Bank 2021-bnk33 | - | 〃 | - | US$ | 2,407 | N/A | US$ | 2,407 | ||||||||
Morgan Stanley Capital I Trust | - | 〃 | - | US$ | 2,368 | N/A | US$ | 2,368 | ||||||||
Dolp Trust 2021-NYC | - | 〃 | - | US$ | 2,351 | N/A | US$ | 2,351 | ||||||||
Morgan Stanley Bank of America Merrill Lynch Trust 2012-C6 | - | 〃 | - | US$ | 2,295 | N/A | US$ | 2,295 | ||||||||
(Continued)
64
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | Mhc Commercial Mortgage Trust 2021-Mhc | - | Financial assets at fair value through other comprehensive income | - | US$ | 2,291 | N/A | US$ | 2,291 | |||||||
UBS Commercial Mortgage Trust 2018-C11 | - | 〃 | - | US$ | 2,213 | N/A | US$ | 2,213 | ||||||||
Morgan Stanley Capital I Trust 2018-H3 | - | 〃 | - | US$ | 2,197 | N/A | US$ | 2,197 | ||||||||
Commerce 2013-CCRE12 Mortgage Trust | - | 〃 | - | US$ | 2,138 | N/A | US$ | 2,138 | ||||||||
Benchmark 2018-B4 Mortgage Trust | - | 〃 | - | US$ | 2,118 | N/A | US$ | 2,118 | ||||||||
JPMDB 2017-C7 | - | 〃 | - | US$ | 2,097 | N/A | US$ | 2,097 | ||||||||
CGCMT 2017-P8 Mortgage Trust | - | 〃 | - | US$ | 2,079 | N/A | US$ | 2,079 | ||||||||
BX Commercial Mortgage Trust 2018-IND | - | 〃 | - | US$ | 2,053 | N/A | US$ | 2,053 | ||||||||
Msbam 2016-C31 | - | 〃 | - | US$ | 2,018 | N/A | US$ | 2,018 | ||||||||
Enterprise Fleet Financing 2019-2, LLC | - | 〃 | - | US$ | 2,009 | N/A | US$ | 2,009 | ||||||||
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C8 | - | 〃 | - | US$ | 1,833 | N/A | US$ | 1,833 | ||||||||
Wells Fargo Commercial Mortgage Trust 2015-C30 | - | 〃 | - | US$ | 1,760 | N/A | US$ | 1,760 | ||||||||
GS Mortgage Securities Trust 2012-GC6 | - | 〃 | - | US$ | 1,750 | N/A | US$ | 1,750 | ||||||||
Morgan Stanley Capital I Trust 2021-L5 | - | 〃 | - | US$ | 1,685 | N/A | US$ | 1,685 | ||||||||
COMM 2020-CBM Mortgage Trust | - | 〃 | - | US$ | 1,567 | N/A | US$ | 1,567 | ||||||||
JPMBB Commercial Mortgage Securities Trust 2013-C12 | - | 〃 | - | US$ | 1,549 | N/A | US$ | 1,549 | ||||||||
Ford Credit Auto Lease Trust 2019-B | - | 〃 | - | US$ | 1,470 | N/A | US$ | 1,470 | ||||||||
Wells Fargo Commercial Mortgage Trust 2012-LC5 | - | 〃 | - | US$ | 1,439 | N/A | US$ | 1,439 | ||||||||
WFRBS Commercial Mortgage Trust 2013-UBS1 | - | 〃 | - | US$ | 1,346 | N/A | US$ | 1,346 | ||||||||
Toyota Auto Receivables 2018-D Owner Trust | - | 〃 | - | US$ | 1,323 | N/A | US$ | 1,323 | ||||||||
Commerce 2014-Ccre17 Mortgage Trust | - | 〃 | - | US$ | 1,304 | N/A | US$ | 1,304 | ||||||||
Dbgs 2018-Biod Mortgage Trust | - | 〃 | - | US$ | 1,302 | N/A | US$ | 1,302 | ||||||||
Honda Auto Receivables 2021-2 Owner Trust | - | 〃 | - | US$ | 1,299 | N/A | US$ | 1,299 | ||||||||
WFRBSCommercial Mortgage Trust 2013-C17 | - | 〃 | - | US$ | 1,279 | N/A | US$ | 1,279 | ||||||||
Nissan Auto Lease Trust, 2019-A | - | 〃 | - | US$ | 1,228 | N/A | US$ | 1,228 | ||||||||
GS Mortgage Securities Trust 2014-GC22 | - | 〃 | - | US$ | 1,184 | N/A | US$ | 1,184 | ||||||||
Morgan Stanley Capital I Trust 2015 - UBS8 | - | 〃 | - | US$ | 1,098 | N/A | US$ | 1,098 | ||||||||
Nissan Auto Lease Trust 2019-B | - | 〃 | - | US$ | 1,076 | N/A | US$ | 1,076 | ||||||||
GM Financial Consumer Automobile Receivables Trust 2019-4 | - | 〃 | - | US$ | 1,061 | N/A | US$ | 1,061 | ||||||||
Morgan Stanley Capital I Trust 2019-H6 | - | 〃 | - | US$ | 1,048 | N/A | US$ | 1,048 | ||||||||
Benchmark 2019-B14 Mortgage Trust | - | 〃 | - | US$ | 1,048 | N/A | US$ | 1,048 | ||||||||
COMM 2013-LC6 Mortgage Trust | - | 〃 | - | US$ | 1,001 | N/A | US$ | 1,001 | ||||||||
GS Mortgage Securities Trust 2014-GC24 | - | 〃 | - | US$ | 994 | N/A | US$ | 994 | ||||||||
Citigroup Commercial Mortgage Trust 2013-GCJ11 | - | 〃 | - | US$ | 968 | N/A | US$ | 968 | ||||||||
GS Mortgage Securities Trust 2019-GSA1 | - | 〃 | - | US$ | 961 | N/A | US$ | 961 | ||||||||
ARI Fleet Lease Trust 2019-A | - | 〃 | - | US$ | 958 | N/A | US$ | 958 | ||||||||
Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C13 | - | 〃 | - | US$ | 940 | N/A | US$ | 940 | ||||||||
COMM 2012-CCRE5 Mortgage Trust | - | 〃 | - | US$ | 928 | N/A | US$ | 928 | ||||||||
Wells Fargo Commercial Mortgage Trust 2015-LC20 | - | 〃 | - | US$ | 918 | N/A | US$ | 918 | ||||||||
Bbcms Mortgage Trust 2017-C1 | - | 〃 | - | US$ | 847 | N/A | US$ | 847 | ||||||||
Benchmark 2019-B9 Mortgage Trust | - | 〃 | - | US$ | 846 | N/A | US$ | 846 | ||||||||
Morgan Stanley Bank Of America Merrill Lynch Trust 2013-C12 | - | 〃 | - | US$ | 836 | N/A | US$ | 836 | ||||||||
280 Park Avenue Trust 2017 - 280P | - | 〃 | - | US$ | 830 | N/A | US$ | 830 | ||||||||
Benchmark 2019-B15 Mortgage Trust | - | 〃 | - | US$ | 745 | N/A | US$ | 745 | ||||||||
Wells Fargo Commercial Mortgage Trust 2016-C36 | - | 〃 | - | US$ | 744 | N/A | US$ | 744 | ||||||||
CF 2019-CF1 Mortgage Trust | - | 〃 | - | US$ | 712 | N/A | US$ | 712 | ||||||||
JPMBB Commercial Mortgage Securities Trust 2014-C19 | - | 〃 | - | US$ | 671 | N/A | US$ | 671 | ||||||||
Bank 2019-BNK23 | - | 〃 | - | US$ | 662 | N/A | US$ | 662 | ||||||||
Citigroup Commercial Mortgage Trust 2014-GC23 | - | 〃 | - | US$ | 661 | N/A | US$ | 661 | ||||||||
Morgan Stanley Capital I Trust 2019-H7 | - | 〃 | - | US$ | 659 | N/A | US$ | 659 | ||||||||
Wells Fargo Commercial Mortgage Trust 2015-C28 | - | 〃 | - | US$ | 637 | N/A | US$ | 637 | ||||||||
(Continued)
65
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | June 30, 2021 | Note | |||||||||||
Shares/Units (In Thousands) | Carrying Value (Foreign Currencies in Thousands) | Percentage of Ownership (%) | Fair Value (Foreign Currencies in Thousands) | |||||||||||||
TSMC Global | Wells Fargo Commercial Mortgage Trust 2015-NXS3 | - | Financial assets at fair value through other comprehensive income | - | US$ | 628 | N/A | US$ | 628 | |||||||
Gs Mortgage Securities Corporation Trust 2020-Uptn | - | 〃 | - | US$ | 619 | N/A | US$ | 619 | ||||||||
GM Financial Automobile Leasing Trust 2019-2 | - | 〃 | - | US$ | 617 | N/A | US$ | 617 | ||||||||
COMM 2015-CCRE22 Mortgage Trust | - | 〃 | - | US$ | 545 | N/A | US$ | 545 | ||||||||
JPMCC 2015 - JP1 | - | 〃 | - | US$ | 438 | N/A | US$ | 438 | ||||||||
JPMDB Commercial Mortgage Securities Trust 2019-COR6 | - | 〃 | - | US$ | 438 | N/A | US$ | 438 | ||||||||
WFRBS Commercial Mortgage Trust 2014-C25 | - | 〃 | - | US$ | 380 | N/A | US$ | 380 | ||||||||
Citigroup Commercial Mortgage Trust 2014-GC19 | - | 〃 | - | US$ | 380 | N/A | US$ | 380 | ||||||||
UBS Barclays Commercial Mortgage Trust 2013-C5 | - | 〃 | - | US$ | 368 | N/A | US$ | 368 | ||||||||
Ford Credit Auto Owner Trust 2019-A | - | 〃 | - | US$ | 343 | N/A | US$ | 343 | ||||||||
GS Mortgage Securities Trust 2014-GC26 | - | 〃 | - | US$ | 329 | N/A | US$ | 329 | ||||||||
GM Financial Automobile Leasing Trust | - | 〃 | - | US$ | 249 | N/A | US$ | 249 | ||||||||
Citigroup Commercial Mortgage Trust 2015-GC35 | - | 〃 | - | US$ | 216 | N/A | US$ | 216 | ||||||||
COMM 2015-DC1 Mortgage Trust | - | 〃 | - | US$ | 164 | N/A | US$ | 164 | ||||||||
Ford Credit Auto Lease Trust 2019-A | - | 〃 | - | US$ | 157 | N/A | US$ | 157 | ||||||||
Bank 2020-BNK28 | - | 〃 | - | US$ | 145 | N/A | US$ | 145 | ||||||||
COMM 2013-CCRE8 Mortgage Trust | - | 〃 | - | US$ | 123 | N/A | US$ | 123 | ||||||||
BBCMS Mortgage Trust 2020-C7 | - | 〃 | - | US$ | 101 | N/A | US$ | 101 | ||||||||
Morgan Stanley Bank Of America Merrill Lynch Trust 2012-C5 | - | 〃 | - | US$ | 84 | N/A | US$ | 84 | ||||||||
Honda Auto Receivables 2020-2 Owner Trust | - | 〃 | - | US$ | 71 | N/A | US$ | 71 | ||||||||
Toyota Auto Receivables 2018-B Owner Trust | - | 〃 | - | US$ | 44 | N/A | US$ | 44 | ||||||||
Wells Fargo Commercial Mortgage Trust 2015-NXS1 | - | 〃 | - | US$ | 36 | N/A | US$ | 36 | ||||||||
CD 2016-CD2 Mortgage Trust | - | 〃 | - | US$ | 26 | N/A | US$ | 26 | ||||||||
WF RBS Commercial Mortgage Trust 2011-C4 | - | 〃 | - | US$ | 4 | N/A | US$ | 4 | ||||||||
COMM 2014-CCRE15 Mortgage Trust | - | 〃 | - | US$ | 4 | N/A | US$ | 4 | ||||||||
Non-publicly traded equity investments | ||||||||||||||||
Primavera Capital Fund II L.P. | - | Financial assets at fair value through other comprehensive income | - | US$ | 98,876 | 4 | US$ | 98,876 | ||||||||
VTAF II | Non-publicly traded equity investments | |||||||||||||||
Aether Systems, Inc. | - | Financial assets at fair value through other comprehensive income | 1,085 | US$ | 389 | 20 | US$ | 389 | ||||||||
5V Technologies, Inc. | - | 〃 | 4 | - | - | - | ||||||||||
Publicly traded stocks | ||||||||||||||||
Sentelic Corporation | - | Financial assets at fair value through other comprehensive income | 1,019 | US$ | 1,882 | 3 | US$ | 1,882 | ||||||||
VTAF III | Non-publicly traded equity investments | |||||||||||||||
LiquidLeds Lighting Corp. | - | Financial assets at fair value through other comprehensive income | 1,952 | US$ | 800 | 14 | US$ | 800 | ||||||||
Neoconix, Inc. | - | 〃 | 4,147 | US$ | 174 | - | US$ | 174 | ||||||||
Growth Fund | Non-publicly traded equity investments | |||||||||||||||
Innovium, Inc. | - | Financial assets at fair value through other comprehensive income | 230 | US$ | 1,863 | - | US$ | 1,863 | ||||||||
Innovium, Inc. | - | 〃 | 221 | US$ | 1,793 | - | US$ | 1,793 | ||||||||
Astera Labs, Inc. | - | 〃 | 127 | US$ | 250 | - | US$ | 250 | ||||||||
CNEX Labs, Inc. | - | 〃 | 24 | US$ | 214 | - | US$ | 214 | ||||||||
EmergingFund | Non-publicly traded equity investments | |||||||||||||||
Credo Technology Group Holding Ltd | - | Financial assets at fair value through other comprehensive income | 861 | US$ | 5,000 | 1 | US$ | 5,000 | ||||||||
(Concluded)
66
TABLE 4
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR SIX MONTHS ENDED JUNE 30, 2021
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Company Name |
Marketable Securities | Financial Statement Account | Counterparty | Nature of Relationship | Beginning Balance | Acquisition | Disposal | Ending Balance (Note 1) | ||||||||||||||||||||||||||
Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | Carrying Value (Foreign Currencies in Thousands) | Gain/Loss on Disposal (Foreign Currencies in Thousands) | Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | |||||||||||||||||||||||||
TSMC | Non-publicly traded equity investments | |||||||||||||||||||||||||||||||||
VisEra Tech | Investments accounted for using equity method | 19 institutional investors, including: GIC, Capital Group, Fidelity International, Cathay Life Insurance Co., Ltd., Fubon Life Insurance Co., Ltd., Yuanta Securities, KGI Securities and Securities and Futures Investors Protection Center etc. | - | 253,120 | $ | 6,363,099 | - | $ | - | 39,501 | $ | 9,451,798 | $ | 1,045,516 | Note2 | 213,619 | $ | 5,979,226 | ||||||||||||||||
TSMC Arizona | 〃 | - | - | 30 | 842,745 | 595 | 16,759,184 | - | - | - | - | 625 | 15,633,888 | |||||||||||||||||||||
TSMC Global | Corporate bond | |||||||||||||||||||||||||||||||||
Bank of America Corporation | Financial assets at fair value through other comprehensive income | - | - | - | US$ | 58,724 | - | US$ | 15,924 | - | US$ | 3,695 | US$ | 3,695 | US$ | - | - | US$ | 69,934 | |||||||||||||||
JPMorgan Chase & Co. | 〃 | - | - | - | US$ | 29,759 | - | US$ | 14,238 | - | US$ | - | US$ | - | US$ | - | - | US$ | 43,535 | |||||||||||||||
Citigroup Inc. | 〃 | - | - | - | US$ | 41,827 | - | US$ | 10,939 | - | US$ | 14,291 | US$ | 14,120 | US$ | 171 | - | US$ | 37,957 | |||||||||||||||
HSBC Holdings plc | 〃 | - | - | - | US$ | 16,113 | - | US$ | 11,089 | - | US$ | 1,047 | US$ | 1,007 | US$ | 40 | - | US$ | 26,000 | |||||||||||||||
Oracle Corporation | 〃 | - | - | - | US$ | 7,822 | - | US$ | 13,979 | - | US$ | - | US$ | - | US$ | - | - | US$ | 21,974 | |||||||||||||||
BNP Paribas SA | 〃 | - | - | - | US$ | 13,202 | - | US$ | 11,559 | - | US$ | 7,154 | US$ | 6,882 | US$ | 272 | - | US$ | 17,415 | |||||||||||||||
Verizon Communications Inc. | 〃 | - | - | - | US$ | 10,558 | - | US$ | 16,617 | - | US$ | 9,798 | US$ | 9,742 | US$ | 56 | - | US$ | 17,385 | |||||||||||||||
NTT Finance Corporation | 〃 | - | - | - | US$ | - | - | US$ | 14,780 | - | US$ | 1,941 | US$ | 1,945 | US$ | (4 | ) | - | US$ | 12,772 | ||||||||||||||
Morgan Stanley | 〃 | - | - | - | US$ | - | - | US$ | 12,035 | - | US$ | - | US$ | - | US$ | - | - | US$ | 12,087 | |||||||||||||||
Morgan Stanley | 〃 | - | - | - | US$ | 23,053 | - | US$ | - | - | US$ | 11,390 | US$ | 11,125 | US$ | 265 | - | US$ | 11,352 | |||||||||||||||
AstraZeneca Finance LLC | 〃 | - | - | - | US$ | - | - | US$ | 10,933 | - | US$ | - | US$ | - | US$ | - | - | US$ | 10,906 | |||||||||||||||
Wells Fargo & Company | Financial assets at amortized cost | - | - | - | US$ | 180,487 | - | US$ | - | - | US$ | 150,000 | US$ | 150,000 | US$ | - | - | US$ | 30,517 | |||||||||||||||
JPMorgan Chase & Co. | 〃 | - | - | - | US$ | 95,058 | - | US$ | - | - | US$ | 85,000 | US$ | 85,000 | US$ | - | - | US$ | 10,069 | |||||||||||||||
(Continued)
67
Company Name |
Marketable Securities | Financial Statement Account | Counterparty | Nature of Relationship | Beginning Balance | Acquisition | Disposal | Ending Balance (Note 1) | ||||||||||||||||||||||||||
Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | Carrying Value (Foreign Currencies in Thousands) | Gain/Loss on Disposal (Foreign Currencies in Thousands) | Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | |||||||||||||||||||||||||
TSMC Global | Government bond | |||||||||||||||||||||||||||||||||
United States Department of The Treasury | Financial assets at fair value through other comprehensive income | - | - | - | US$ | 182,533 | - | US$ | 820,944 | - | US$ | 432,147 | US$ | 435,080 | US$ | (2,933 | ) | - | US$ | 565,289 | ||||||||||||||
United States Department of The Treasury | 〃 | - | - | - | US$ | 287,012 | - | US$ | 55,841 | - | US$ | 54,999 | US$ | 55,025 | US$ | (26 | ) | - | US$ | 283,550 | ||||||||||||||
United States Department of The Treasury | 〃 | - | - | - | US$ | - | - | US$ | 28,659 | - | US$ | 19,945 | US$ | 19,940 | US$ | 5 | - | US$ | 8,721 | |||||||||||||||
Agency bonds/Agency mortgage-backed securities | ||||||||||||||||||||||||||||||||||
Government National Mortgage Association | Financial assets at fair value through other comprehensive income | - | - | - | US$ | - | - | US$ | 195,522 | - | US$ | 30,624 | US$ | 30,623 | US$ | 1 | - | US$ | 164,208 | |||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 49,027 | - | US$ | 892,668 | - | US$ | 876,060 | US$ | 876,798 | US$ | (738 | ) | - | US$ | 64,822 | ||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 4,035 | - | US$ | 436,231 | - | US$ | 382,507 | US$ | 382,268 | US$ | 239 | - | US$ | 58,001 | |||||||||||||||
Government National Mortgage Association | 〃 | - | - | - | US$ | 199,835 | - | US$ | 82,010 | - | US$ | 234,616 | US$ | 236,103 | US$ | (1,487 | ) | - | US$ | 43,636 | ||||||||||||||
Government National Mortgage Association | 〃 | - | - | - | US$ | 30,307 | - | US$ | 38,746 | - | US$ | 26,763 | US$ | 27,365 | US$ | (602 | ) | - | US$ | 41,191 | ||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 96,211 | - | US$ | 232,485 | - | US$ | 288,658 | US$ | 290,727 | US$ | (2,069 | ) | - | US$ | 37,429 | ||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | - | - | US$ | 160,908 | - | US$ | 137,310 | US$ | 137,347 | US$ | (37 | ) | - | US$ | 23,546 | ||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 4,377 | - | US$ | 185,245 | - | US$ | 174,469 | US$ | 174,870 | US$ | (401 | ) | - | US$ | 14,728 | ||||||||||||||
Government National Mortgage Association | 〃 | - | - | - | US$ | 14,244 | - | US$ | 259,107 | - | US$ | 259,965 | US$ | 260,102 | US$ | (137 | ) | - | US$ | 13,234 | ||||||||||||||
Government National Mortgage Association | 〃 | - | - | - | US$ | 9,795 | - | US$ | 119,654 | - | US$ | 118,672 | US$ | 118,793 | US$ | (121 | ) | - | US$ | 10,641 | ||||||||||||||
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 2 | 〃 | - | - | - | US$ | - | - | US$ | 107,618 | - | US$ | 97,545 | US$ | 97,498 | US$ | 47 | - | US$ | 10,164 | |||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 18,997 | - | US$ | 2,026 | - | US$ | 11,682 | US$ | 11,873 | US$ | (191 | ) | - | US$ | 9,033 | ||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 18,019 | - | US$ | - | - | US$ | 11,085 | US$ | 10,684 | US$ | 401 | - | US$ | 6,658 | |||||||||||||||
Government National Mortgage Association | 〃 | - | - | - | US$ | 27,389 | - | US$ | - | - | US$ | 22,141 | US$ | 21,884 | US$ | 257 | - | US$ | 4,706 | |||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 24,084 | - | US$ | - | - | US$ | 19,439 | US$ | 18,741 | US$ | 698 | - | US$ | 4,517 | |||||||||||||||
Government National Mortgage Association | 〃 | - | - | - | US$ | 24,481 | - | US$ | - | - | US$ | 20,012 | US$ | 19,557 | US$ | 455 | - | US$ | 3,989 | |||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 23,776 | - | US$ | 3,105 | - | US$ | 22,916 | US$ | 22,478 | US$ | 438 | - | US$ | 3,828 | |||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 21,409 | - | US$ | 154,866 | - | US$ | 173,813 | US$ | 173,786 | US$ | 27 | - | US$ | 2,455 | |||||||||||||||
Government National Mortgage Association | 〃 | - | - | - | US$ | 1,067 | - | US$ | 12,888 | - | US$ | 12,668 | US$ | 12,682 | US$ | (14 | ) | - | US$ | 1,271 | ||||||||||||||
(Continued)
68
Company Name |
Marketable Securities | Financial Statement Account | Counterparty | Nature of Relationship | Beginning Balance | Acquisition | Disposal | Ending Balance (Note 1) | ||||||||||||||||||||||||||
Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | Carrying Value (Foreign Currencies in Thousands) | Gain/Loss on Disposal (Foreign Currencies in Thousands) | Shares/Units (In Thousands) | Amount (Foreign Currencies in Thousands) | |||||||||||||||||||||||||
TSMC Global | Federal National Mortgage Association | Financial assets at fair value through other comprehensive income | - | - | - | US$ | 19,673 | - | US$ | 125,721 | - | US$ | 144,267 | US$ | 144,211 | US$ | 56 | - | US$ | 1,173 | ||||||||||||||
Government National Mortgage Association | 〃 | - | - | - | US$ | 5,381 | - | US$ | 41,213 | - | US$ | 46,054 | US$ | 46,057 | US$ | (3 | ) | - | US$ | 534 | ||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 5,253 | - | US$ | 11,906 | - | US$ | 17,015 | US$ | 17,228 | US$ | (213 | ) | - | US$ | - | ||||||||||||||
Government National Mortgage Association | 〃 | - | - | - | US$ | 17,896 | - | US$ | 120,259 | - | US$ | 137,175 | US$ | 138,089 | US$ | (914 | ) | - | US$ | - | ||||||||||||||
Federal Home Loan Mortgage Corporation | 〃 | - | - | - | US$ | 20,247 | - | US$ | 20,029 | - | US$ | 40,162 | US$ | 40,121 | US$ | 41 | - | US$ | - | |||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 31,980 | - | US$ | 171,131 | - | US$ | 202,799 | US$ | 202,880 | US$ | (81 | ) | - | US$ | - | ||||||||||||||
Federal Home Loan Mortgage Corporation | 〃 | - | - | - | US$ | - | - | US$ | 69,247 | - | US$ | 69,184 | US$ | 69,246 | US$ | (62 | ) | - | US$ | - | ||||||||||||||
Government National Mortgage Association | 〃 | - | - | - | US$ | 18,900 | - | US$ | 121,784 | - | US$ | 140,660 | US$ | 140,610 | US$ | 50 | - | US$ | - | |||||||||||||||
Federal Home Loan Mortgage Corporation | 〃 | - | - | - | US$ | 11,872 | - | US$ | - | - | US$ | 11,654 | US$ | 11,120 | US$ | 534 | - | US$ | - | |||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 8,394 | - | US$ | 89,440 | - | US$ | 97,826 | US$ | 97,829 | US$ | (3 | ) | - | US$ | - | ||||||||||||||
Federal National Mortgage Association | 〃 | - | - | - | US$ | 3,592 | - | US$ | 31,349 | - | US$ | 34,948 | US$ | 34,925 | US$ | 23 | - | US$ | - | |||||||||||||||
Note 1: | The ending balance includes the realized gain/loss on equity investment, the amortization of premium/discount on bonds investments and other related adjustment. |
Note 2: | To facilitate VisEra's IPO in Taiwan, 39,501 thousand common shares of VisEra at a price of NT$240 were sold by TSMC and an increase of NT$8,406,282 thousand in capital surplus was recognized. TSMC's shareholding in VisEra decreased from 87% to 73%. This disposal was accounted for as an equity transaction since the transaction did not change TSMC's control over VisEra. |
(Concluded)
69
TABLE 5
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
ACQUISITION OF INDIVIDUAL REAL ESTATE PROPERTIES AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE SIX MONTHS ENDED JUNE 30, 2021
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Company Name | Types of Property | Transaction Date | Transaction Amount (Foreign Currencies in Thousands) | Payment Term | Counterparty | Nature of Relationships | Prior Transaction of Related Counterparty | Price Reference | Purpose of Acquisition | Other Terms | |||
Owner | Relationships | Transfer Date | Amount | ||||||||||
TSMC | Real estate | February 09, 2021 (Note) | $52,100,000 (Note) | Based on the terms in the purchase order | 85 counterparties (Note), including: | - | N/A | N/A | N/A | N/A | Price comparison and price negotiation | Manufacturing purpose | None |
ABB Ltd. | |||||||||||||
Accudevice Co., Ltd. | |||||||||||||
Air Liquide Far Eastern Ltd. | |||||||||||||
Allis Electric Co., Ltd. | |||||||||||||
Am-Power Machine International Enterprise Co., Ltd. | |||||||||||||
Atlas Copco Taiwan Ltd. | |||||||||||||
Atlas Technology Corp. | |||||||||||||
Capital Machinery Limited | |||||||||||||
Chen Yuan International Co., Ltd. | |||||||||||||
Chenfull International Co., Ltd. | |||||||||||||
Cheng Deh Fire Protection Industrial Corp. | |||||||||||||
Chien Kuo Construction Co., Ltd. | |||||||||||||
China Steel Structure Co., Ltd. | |||||||||||||
Chun Yuan Steel Industry Co., Ltd. | |||||||||||||
Chung-Lin General Contractors, Ltd. | |||||||||||||
Cica-Huntek Chemical Technology Taiwan Co., Ltd. | |||||||||||||
Confederate Technology Co., Ltd. | |||||||||||||
(Continued)
70
Company Name | Types of Property | Transaction Date | Transaction Amount (Foreign Currencies in Thousands) | Payment Term | Counterparty | Nature of Relationships | Prior Transaction of Related Counterparty | Price Reference | Purpose of Acquisition | Other Terms | |||
Owner | Relationships | Transfer Date | Amount | ||||||||||
TSMC | Real estate | Da-Cin Construction Co., Ltd. | |||||||||||
Desiccant Technology Corporation | |||||||||||||
Evergreen Steel Corporation | |||||||||||||
Exyte Taiwan Co., Ltd. | |||||||||||||
Fortune Electric Co., Ltd. | |||||||||||||
Fu Tsu Construction Co., Ltd. | |||||||||||||
Hantech Engineering Co., Ltd. | |||||||||||||
Hsieh Kun Co., Ltd. | |||||||||||||
Hueng Luei Process Industry Co., Ltd. | |||||||||||||
Ingersoll-Rand Southeast Asia (Pte) Ltd. Taiwan Branch (Singapore) | |||||||||||||
J.C. Yang Architect and Associates | |||||||||||||
JG Environmental Technology Co., Ltd. | |||||||||||||
JJmr-Clean-Air Solution Tech.Services Co., Ltd. | |||||||||||||
Jusun Instruments Co., Ltd. | |||||||||||||
Kedge Construction Co., Ltd. | |||||||||||||
Kinetics Technology Corporation | |||||||||||||
L&K Engineering Co., Ltd. | |||||||||||||
Lead-Fu Industrials Corporation | |||||||||||||
Lee Ming Construction Co., Ltd. | |||||||||||||
Li Jin Engineering Co., Ltd. | |||||||||||||
Mandartech Interiors Inc. | |||||||||||||
Marketech International Corp. | |||||||||||||
Mega Union Technology Incorporated | |||||||||||||
National Institute of Advanced Industrial Science & Technology | |||||||||||||
(Continued)
71
Company Name | Types of Property | Transaction Date | Transaction Amount (Foreign Currencies in Thousands) | Payment Term | Counterparty | Nature of Relationships | Prior Transaction of Related Counterparty | Price Reference | Purpose of Acquisition | Other Terms | |||
Owner | Relationships | Transfer Date | Amount | ||||||||||
TSMC | Real estate | Organo Technology Co., Ltd. | |||||||||||
Ovivo Taiwan Co., Ltd. | |||||||||||||
Pan Asia (Engineers & Constructors) Corporation | |||||||||||||
Ruentex Engineering & Construction Co., Ltd. | |||||||||||||
San Fu Chemical Co., Ltd. | |||||||||||||
Schneider Electric Taiwan Co., Ltd. | |||||||||||||
Shihlin Electric & Engineering Corporation | |||||||||||||
Siemens Limited | |||||||||||||
Solomon Technology Corporation | |||||||||||||
Swift Engineering Co., Ltd. | |||||||||||||
Taiwan Gleno Enterprise Co., Ltd. | |||||||||||||
Taiwan Obayashi Corporation | |||||||||||||
Taiwan Puritic Corp. | |||||||||||||
TASA Construction Corporation | |||||||||||||
Techgo Industrial Co., Ltd. | |||||||||||||
Trusval Technology Co., Ltd. | |||||||||||||
Tung Kang Steel Structure Corp. | |||||||||||||
Uangyih-Tech Industrial Co., Ltd. | |||||||||||||
Unelectra International Corp. | |||||||||||||
United Integrated Services Co., Ltd. | |||||||||||||
Versum Materials Taiwan Co., Ltd. | |||||||||||||
Weltall Technology Corporation | |||||||||||||
Wholetech System Hitech Limited | |||||||||||||
Yangtech Engineering Co., Ltd. | |||||||||||||
Yankey Engineering Co., Ltd. | |||||||||||||
(Continued)
72
Company Name | Types of Property | Transaction Date | Transaction Amount (Foreign Currencies in Thousands) | Payment Term | Counterparty | Nature of Relationships | Prior Transaction of Related Counterparty | Price Reference | Purpose of Acquisition | Other Terms | |||
Owner | Relationships | Transfer Date | Amount | ||||||||||
TSMC | Real estate | Ying Pao Technology Inc. | |||||||||||
Zhao-Cheng Corp. | |||||||||||||
Real estate |
April 22, 2021 | $9,500,000 (Note) | Based on the terms in the purchase order | 70 counterparties (Note), including: | - | N/A | N/A | N/A | N/A | Price comparison and price negotiation | Manufacturing purpose | None | |
J. Cypress Co., Ltd. | |||||||||||||
L&K Engineering Co., Ltd. | |||||||||||||
Marketech International Corp. | |||||||||||||
Mega Union Technology Incorporated | |||||||||||||
Organo Technology Co., Ltd. | |||||||||||||
Taiwan Puritic Corp. | |||||||||||||
Uangyih-Tech Industrial Co., Ltd. | |||||||||||||
United Integrated Services Co., Ltd. | |||||||||||||
Real estate |
June 09, 2021 | 54,500,000 (Note) | Based on the terms in the purchase order | 101 counterparties (Note), including: | - | N/A | N/A | N/A | N/A | Price comparison and price negotiation | Manufacturing purpose | None | |
ABB Ltd. | |||||||||||||
Accudevice Co., Ltd. | |||||||||||||
Air Liquide Far Eastern Ltd. | |||||||||||||
Allis Electric Co., Ltd. | |||||||||||||
Am-Power Machine International Enterprise Co., Ltd. | |||||||||||||
Atlas Copco Taiwan Ltd. | |||||||||||||
Atlas Technology Corp. | |||||||||||||
Capital Machinery Limited | |||||||||||||
Chen Yuan International Co., Ltd. | |||||||||||||
Chenfull International Co., Ltd. | |||||||||||||
Cheng Deh Fire Protection Industrial Corp. | |||||||||||||
(Continued)
73
Company Name | Types of Property | Transaction Date | Transaction Amount (Foreign Currencies in Thousands) | Payment Term | Counterparty | Nature of Relationships | Prior Transaction of Related Counterparty | Price Reference | Purpose of Acquisition | Other Terms | |||
Owner | Relationships | Transfer Date | Amount | ||||||||||
TSMC | Real estate | Chien Kuo Construction Co., Ltd. | |||||||||||
China Steel Structure Co., Ltd. | |||||||||||||
Chun Yuan Steel Industry Co., Ltd. | |||||||||||||
Chung-Lin General Contractors, Ltd. | |||||||||||||
Cica-Huntek Chemical Technology Taiwan Co., Ltd. | |||||||||||||
Confederate Technology Co., Ltd. | |||||||||||||
Da-Cin Construction Co., Ltd. | |||||||||||||
Desiccant Technology Corporation | |||||||||||||
Evergreen Steel Corporation | |||||||||||||
Exyte Taiwan Co., Ltd. | |||||||||||||
Fortune Electric Co., Ltd. | |||||||||||||
Fu Tsu Construction Co., Ltd. | |||||||||||||
Hantech Engineering Co., Ltd. | |||||||||||||
Hsieh Kun Co., Ltd. | |||||||||||||
Hueng Luei Process Industry Co., Ltd. | |||||||||||||
Ingersoll-Rand Southeast Asia (Pte) Ltd. Taiwan Branch (Singapore) | |||||||||||||
J.C. Yang Architect and Associates | |||||||||||||
JG Environmental Technology Co., Ltd. | |||||||||||||
JJmr-Clean-Air Solution Tech.Services Co., Ltd. | |||||||||||||
Jusun Instruments Co., Ltd. | |||||||||||||
Kao Hsin Engineering Co., Ltd. | |||||||||||||
Kedge Construction Co., Ltd. | |||||||||||||
Kinetics Technology Corporation | |||||||||||||
(Continued)
74
Company Name | Types of Property | Transaction Date | Transaction Amount (Foreign Currencies in Thousands) | Payment Term | Counterparty | Nature of Relationships | Prior Transaction of Related Counterparty | Price Reference | Purpose of Acquisition | Other Terms | |||
Owner | Relationships | Transfer Date | Amount | ||||||||||
TSMC | Real estate | L&K Engineering Co., Ltd. | |||||||||||
Lead-Fu Industrials Corporation | |||||||||||||
Lee Ming Construction Co., Ltd. | |||||||||||||
Mandartech Interiors Inc. | |||||||||||||
Marketech International Corp. | |||||||||||||
Mega Union Technology Incorporated | |||||||||||||
Organo Technology Co., Ltd. | |||||||||||||
Ovivo Taiwan Co., Ltd. | |||||||||||||
Pan Asia (Engineers & Constructors) Corporation | |||||||||||||
Ruentex Engineering & Construction Co., Ltd. | |||||||||||||
San Fu Chemical Co., Ltd. | |||||||||||||
Schneider Electric Taiwan Co., Ltd. | |||||||||||||
Shihlin Electric & Engineering Corporation | |||||||||||||
Siemens Limited | |||||||||||||
Solomon Technology Corporation | |||||||||||||
Swift Engineering Co., Ltd. | |||||||||||||
Taiwan Gleno Enterprise Co., Ltd. | |||||||||||||
Taiwan Obayashi Corporation | |||||||||||||
Taiwan Puritic Corp. | |||||||||||||
TASA Construction Corporation | |||||||||||||
Techgo Industrial Co., Ltd. | |||||||||||||
Trane Taiwan Distribution Limited | |||||||||||||
Trusval Technology Co., Ltd. | |||||||||||||
Tung Kang Steel Structure Corp. | |||||||||||||
Uangyih-Tech Industrial Co., Ltd. | |||||||||||||
(Continued)
75
Company Name | Types of Property | Transaction Date | Transaction Amount (Foreign Currencies in Thousands) | Payment Term | Counterparty | Nature of Relationships | Prior Transaction of Related Counterparty | Price Reference | Purpose of Acquisition | Other Terms | |||
Owner | Relationships | Transfer Date | Amount | ||||||||||
TSMC | Real estate | Unelectra International Corp. | |||||||||||
United Integrated Services Co., Ltd. | |||||||||||||
Versum Materials Taiwan Co., Ltd. | |||||||||||||
Weltall Technology Corporation | |||||||||||||
Wholetech System Hitech Limited | |||||||||||||
Yangtech Engineering Co., Ltd. | |||||||||||||
Yankey Engineering Co., Ltd. | |||||||||||||
Ying Pao Technology Inc. | |||||||||||||
Zhao-Cheng Corp. | |||||||||||||
Note : | The disclosures are expected information based on the capital appropriation approved by the Board of Directors (Right-of-use assets are included). The actual information shall be subject to the final purchase order of TSMC. |
(Concluded)
76
TABLE 6
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE SIX MONTHS ENDED JUNE 30, 2021
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Company Name | Related Party | Nature of Relationships | Transaction Details | Abnormal Transaction | Notes/Accounts Payable or Receivable | Note | |||||||||||||
Purchases/ Sales | Amount (Foreign Currencies in Thousands) | % to Total | Payment Terms | Unit Price | Payment Terms | Ending Balance (Foreign Currencies in Thousands) | % to Total | ||||||||||||
TSMC | TSMC North America | Subsidiary | Sales | $ | 482,692,416 | 66 | Net 30 days from invoice date (Note) | - | Note | $ | 121,840,326 | 73 | |||||||
GUC | Associate | Sales | 2,209,613 | - | Net 30 days from the end of the month of when invoice is issued | - | - | 463,695 | - | ||||||||||
TSMC Nanjing | Subsidiary | Purchases | 13,011,111 | 22 | Net 30 days from the end of the month of when invoice is issued | - | - | (2,044,410 | ) | 5 | |||||||||
TSMC China | Subsidiary | Purchases | 10,434,960 | 17 | Net 30 days from the end of the month of when invoice is issued | - | - | (1,801,500 | ) | 4 | |||||||||
WaferTech | Indirect subsidiary | Purchases | 3,726,428 | 6 | Net 30 days from the end of the month of when invoice is issued | - | - | (662,829 | ) | 2 | |||||||||
SSMC | Associate | Purchases | 1,952,621 | 3 | Net 30 days from the end of the month of when invoice is issued | - | - | (412,226 | ) | 1 | |||||||||
VIS | Associate | Purchases | 1,950,512 | 3 | Net 30 days from the end of the month of when invoice is issued | - | - | (334,046 | ) | 1 | |||||||||
TSMC North America | GUC | Associate of TSMC | Sales | 895,069 | - | Net 30 days from invoice date | - | - | 211,545 | - | |||||||||
(US$ | 31,937 | ) | (US$ | 7,585 | ) | ||||||||||||||
VisEra Tech | Xintec | Associate of TSMC | Sales | 329,681 | 9 | Net 60 days from the end of the month of when invoice is issued | - | - | 108,907 | 9 | |||||||||
Note: | The tenor is determined by the payment terms granted to its clients by TSMC North America. |
77
TABLE 7
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
JUNE 30, 2021
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Company Name | Related Party | Nature of Relationships | Ending Balance (Foreign Currencies in Thousands) | Turnover Days (Note 1) | Overdue | Amounts Received in Subsequent Period | Allowance for Bad Debts | |||||||||
Amount | Action Taken | |||||||||||||||
TSMC | TSMC North America | Subsidiary | $ | 124,006,833 | 42 | $ | - | - | $ | - | $ | - | ||||
TSMC Nanjing | Subsidiary | 208,440 | Note 2 | - | - | - | - | |||||||||
TSMC Arizona | Subsidiary | 112,037 | Note 2 | - | - | - | - | |||||||||
VIS | Associate | 1,639,722 | Note 2 | - | - | - | - | |||||||||
GUC | Associate | 463,695 | 32 | - | - | - | - | |||||||||
TSMC North America | GUC | Associate of TSMC | 211,545 | 28 | - | - | - | - | ||||||||
(US$ | 7,585 | ) | ||||||||||||||
TSMC China | TSMC Nanjing | The same parent company | 24,381,329 | Note 2 | - | - | - | - | ||||||||
(RMB | 5,648,533 | ) | ||||||||||||||
TSMC | Parent company | 1,801,500 | 30 | - | - | - | - | |||||||||
(RMB | 417,364 | ) | ||||||||||||||
TSMC Nanjing | TSMC | Parent company | 2,044,410 | 28 | - | - | - | - | ||||||||
(RMB | 472,710 | ) | ||||||||||||||
VisEra Tech | Xintec | Associate of TSMC | 108,907 | 82 | - | - | - | - | ||||||||
TSMC Technology | TSMC | The ultimate parent of the Company | 322,629 | Note 2 | - | - | - | - | ||||||||
(US$ | 11,568 | ) | ||||||||||||||
WaferTech | TSMC | The ultimate parent of the Company | 662,829 | 33 | - | - | - | - | ||||||||
(US$ | 23,766 | ) |
Note 1: | The calculation of turnover days excludes other receivables from related parties. |
Note 2: | The ending balance is primarily consisted of other receivables, which is not applicable for the calculation of turnover days. |
78
TABLE 8
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2021
(Amounts in Thousands of New Taiwan Dollars)
No. | Company Name | Counterparty | Nature of Relationship (Note 1) | Intercompany Transactions | |||||||
Financial Statements Item | Amount | Terms (Note 2) | Percentage of Consolidated Net Revenue or Total Assets | ||||||||
0 | TSMC | TSMC North America | 1 | Net revenue from sale of goods | $ | 482,692,416 | - | 66% | |||
Receivables from related parties | 121,840,326 | - | 4% | ||||||||
Other receivables from related parties | 2,166,507 | - | - | ||||||||
TSMC Japan | 1 | Marketing expenses - commission | 114,908 | - | - | ||||||
TSMC JDC | 1 | Research and development expenses | 171,843 | - | - | ||||||
TSMC Europe | 1 | Marketing expenses - commission | 236,744 | - | - | ||||||
TSMC China | 1 | Purchases | 10,434,960 | - | 1% | ||||||
Marketing expenses - commission | 127,336 | - | - | ||||||||
Payables to related parties | 1,801,500 | - | - | ||||||||
TSMC Nanjing | 1 | Purchases | 13,011,111 | - | 2% | ||||||
Other receivables from related parties | 208,440 | - | - | ||||||||
Payables to related parties | 2,044,410 | - | - | ||||||||
TSMC Arizona | 1 | Other receivables from related parties | 112,037 | - | - | ||||||
TSMC Canada | 1 | Research and development expenses | 156,024 | - | - | ||||||
TSMC Technology | 1 | Research and development expenses | 1,407,937 | - | - | ||||||
Payables to related parties | 322,629 | - | - | ||||||||
WaferTech | 1 | Purchases | 3,726,428 | - | 1% | ||||||
Payables to related parties | 662,829 | - | - | ||||||||
1 | TSMC China | TSMC Nanjing | 3 | Other receivables from related parties | 24,381,329 | - | 1% | ||||
Note 1: |
No. 1 represents the transactions from parent company to subsidiary. |
Note 2: | The sales prices and payment terms of intercompany sales are not significantly different from those to third parties. For other intercompany transactions, prices and terms are determined in accordance with mutual agreements. |
79
TABLE 9
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN MAINLAND CHINA)
FOR THE SIX MONTHS ENDED JUNE 30, 2021
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Investor Company | Investee Company | Location | Main Businesses and Products | Original Investment Amount | Balance as of June 30, 2021 |
Net Income (Losses) of the Investee | Share of Profits/Losses of Investee (Note 1) (Foreign Currencies in Thousands) | Note | |||||||||||||||||
June 30, 2021 (Foreign Currencies in Thousands) | December 31, 2020 (Foreign Currencies in Thousands) | Shares (In Thousands) | Percentage of Ownership | Carrying Value (Foreign Currencies in Thousands) | |||||||||||||||||||||
TSMC | TSMC Global | Tortola, British Virgin Islands | Investment activities | $ | 355,162,309 | $ | 355,162,309 | 11 | 100 | $ | 379,287,757 | $ | 1,129,867 | $ | 1,129,867 | Subsidiary | |||||||||
TSMC Partners | Tortola, British Virgin Islands | Investing in companies involved in the semiconductor design and manufacturing, and other investment activities | 31,456,130 | 31,456,130 | 988,268 | 100 | 53,345,585 | 917,261 | 917,261 | Subsidiary | |||||||||||||||
TSMC Arizona | Phoenix, Arizona, U.S.A. | Manufacturing, sales and testing of integrated circuits and other semiconductor devices | 17,614,783 | 855,599 | 625 | 100 | 15,633,888 | (1,805,198 | ) | (1,805,198 | ) | Subsidiary | |||||||||||||
VIS | Hsin-Chu, Taiwan | Manufacturing, sales, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks | 10,180,677 | 10,180,677 | 464,223 | 28 | 8,702,574 | 4,815,399 | 1,361,274 | Associate | |||||||||||||||
SSMC | Singapore | Manufacturing and sales of integrated circuits and other semiconductor devices | 5,120,028 | 5,120,028 | 314 | 39 | 6,409,172 | 1,422,791 | 551,901 | Associate | |||||||||||||||
VisEra Tech | Hsin-Chu, Taiwan | Research, design, development, manufacturing, sales, packaging and test of color filter | 4,224,082 | 5,005,171 | 213,619 | 73 | 5,979,226 | 830,949 | 659,813 | Subsidiary | |||||||||||||||
TSMC North America | San Jose, California, U.S.A | Sales and marketing of integrated circuits and other semiconductor devices | 333,718 | 333,718 | 11,000 | 100 | 4,753,457 | 220,279 | 220,279 | Subsidiary | |||||||||||||||
Xintec | Taoyuan, Taiwan | Wafer level chip size packaging and wafer level post passivation interconnection service | 1,988,317 | 1,988,317 | 111,282 | 41 | 2,898,577 | 839,345 | 344,454 | Associate | |||||||||||||||
GUC | Hsin-Chu, Taiwan | Researching, developing, manufacturing, testing and marketing of integrated circuits | 386,568 | 386,568 | 46,688 | 35 | 1,300,841 | 527,591 | 183,803 | Associate | |||||||||||||||
TSMC Europe | Amsterdam, the Netherlands | Customer service and supporting activities | 15,749 | 15,749 | - | 100 | 527,551 | 11,290 | 11,290 | Subsidiary | |||||||||||||||
TSMC JDC | Yokohama, Japan | Engineering support activities | 410,680 | 302,560 | 15 | 100 | 378,574 | 7,215 | 7,215 | Subsidiary | |||||||||||||||
VTAF III | Cayman Islands | Investing in technology start-up companies | 1,320,222 | 1,318,846 | - | 98 | 203,740 | (4,101 | ) | (4,019 | ) | Subsidiary | |||||||||||||
Emerging Fund | Cayman Islands | Investing in technology start-up companies | 154,688 | - | - | 99.9 | 148,101 | (5,320 | ) | (5,315 | ) | Subsidiary | |||||||||||||
TSMC Japan | Yokohama, Japan | Customer service and supporting activities | 83,760 | 83,760 | 6 | 100 | 137,221 | 3,313 | 3,313 | Subsidiary | |||||||||||||||
VTAF II | Cayman Islands | Investing in technology start-up companies | 260,300 | 260,300 | - | 98 | 83,917 | (921 | ) | (903 | ) | Subsidiary | |||||||||||||
TSMC Korea | Seoul, Korea | Customer service and supporting activities | 13,656 | 13,656 | 80 | 100 | 41,305 | 881 | 881 | Subsidiary | |||||||||||||||
TSMC 3DIC | Yokohama, Japan | Engineering support activities | 2,556 | - | - | 100 | 1,592 | (947 | ) | (947 | ) | Subsidiary | |||||||||||||
TSMC Partners | TSMC Development | Delaware, U.S.A | Investing in companies involved in | 16,369,136 | 16,369,136 | - | 100 | 29,981,117 | 709,009 | Note 2 | Subsidiary | ||||||||||||||
semiconductor manufacturing | (US$ | 586,939 | ) | (US$ | 586,939 | ) | (US$ | 1,075,016 | ) | (US$ | 25,298 | ) | |||||||||||||
TSMC Technology | Delaware, U.S.A | Engineering support activities | 398,311 | 398,311 | - | 100 | 828,319 | 64,902 | Note 2 | Subsidiary | |||||||||||||||
(US$ | 14,282 | ) | (US$ | 14,282 | ) | (US$ | 29,701 | ) | (US$ | 2,316 | ) | ||||||||||||||
TSMC Canada | Ontario, Canada | Engineering support activities | 64,145 | 64,145 | 2,300 | 100 | 273,439 | 11,285 | Note 2 | Subsidiary | |||||||||||||||
(US$ | 2,300 | ) | (US$ | 2,300 | ) | (US$ | 9,805 | ) | (US$ | 403 | ) | ||||||||||||||
VTAF III | Growth Fund | Cayman Islands | Investing in technology start-up companies | 71,222 | 69,828 | - | 100 | 116,449 | (561 | ) | Note 2 | Subsidiary | |||||||||||||
(US$ | 2,554 | ) | (US$ | 2,504 | ) | (US$ | 4,175 | ) | (US$ | (20 | )) | ||||||||||||||
Mutual-Pak | New Taipei, Taiwan | Manufacturing of electronic parts, wholesaling | 44,437 | 44,437 | 4,693 | 28 | 25,714 | (8,707 | ) | Note 2 | Associate | ||||||||||||||
and retailing of electronic materials, and researching, developing and testing of RFID | (US$ | 1,593 | ) | (US$ | 1,593 | ) | (US$ | 922 | ) | (US$ | (307 | )) | |||||||||||||
TSMC Development | WaferTech | Washington, U.S.A | Manufacturing, sales and testing of integrated | - | - | 293,637 | 100 | 5,246,559 | 673,083 | Note 2 | Subsidiary | ||||||||||||||
circuits and other semiconductor devices | (US$ | 188,123 | ) | (US$ | 24,016 | ) | |||||||||||||||||||
Note 1: | The share of profits/losses of investee includes the effect of unrealized gross profit on intercompany transactions. |
Note 2: | The share of profits/losses of the investee company is not reflected herein as such amount is already included in the share of profits/losses of the investor company. |
80
TABLE 10
Taiwan Semiconductor Manufacturing Company Limited and Subsidiaries
INFORMATION ON INVESTMENT IN MAINLAND CHINA
FOR SIX MONTHS ENDED JUNE 30, 2021
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Investee Company | Main Businesses and Products | Total Amount of Paid-in Capital (RMB in Thousands) | Method of Investment | Accumulated Outflow of Investment from Taiwan as of January 1, 2021 (US$ in Thousands) | Investment Flows | Accumulated Outflow of Investment from Taiwan as of June 30, 2021 (US$ in Thousands) | Net Income (Losses) of the Investee Company | Percentage of Ownership | Share of Profits/Losses | Carrying Amount as of June 30, 2021 | Accumulated Inward Remittance of Earnings as of June 30, 2021 | |||||||||||||||||||||
Outflow | Inflow | |||||||||||||||||||||||||||||||
TSMC China | Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices | $ (RMB | 18,939,667 4,502,080 | ) | Note 1 | $ (US$ | 18,939,667 596,000 | ) | $ | - | $ | - | $ (US$ | 18,939,667 596,000 | ) | $ | 3,991,180 | 100% | $ | 4,064,849 (Note 2 | ) | $ | 68,598,830 | $ | - | |||||||
TSMC Nanjing | Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices | (RMB | 30,521,412 6,650,119 | ) | Note 1 | (US$ | 30,521,412 1,000,000 | ) | - | - | (US$ | 30,521,412 1,000,000 | ) | 5,570,032 | 100% | 5,570,053 (Note 2 | ) | 39,277,728 | - | |||||||||||||
Accumulated Investment in Mainland China as of June 30, 2021 (US$ in Thousands) | Investment Amounts Authorized by Investment Commission, MOEA (US$ in Thousands) | Upper Limit on Investment | ||||||
$ (US$ | 49,461,079 1,596,000 | ) | $ (US$ | 119,412,667 3,596,000 | ) | $ | 1,196,382,344 (Note 3 | ) |
Note 1: | TSMC directly invested US$596,000 thousand in TSMC China and US$1,000,000 thousands in TSMC Nanjing. |
Note 2: | Amount was recognized based on the reviewed financial statements. |
Note 3: | The upper limit on investment in mainland China is determined by sixty percent (60%) of the Company's consolidated net worth. |
81
TABLE 11
Taiwan Semiconductor Manufacturing Company Limited
INFORMATION ON MAJOR SHAREHOLDERS
JUNE 30, 2021
Shareholders (Note) | Shares | |||||
Total Shares Owned | Ownership Percentage | |||||
ADR-Taiwan Semiconductor Manufacturing Company, Ltd. | 5,321,442,098 | 20.52% | ||||
National Development Fund, Executive Yuan | 1,653,709,980 | 6.38% | ||||
Note: | Major shareholders shows the list of all shareholders with ownership of 5 percent or greater. |
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TSMC - Taiwan Semiconductor Manufacturing Company Ltd. published this content on 13 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2021 10:20:17 UTC.