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Stock Code:5425
TAIWAN SEMICONDUCTOR CO., LTD.
AND SUBSIDIARIES
Consolidated Financial Statements
With Independent Auditors' Review Report
For the Six Months Ended June 30, 2022 and 2021
Address: | 11F., No. 205, Sec. 3, Beixin Rd., Xindian Dist., New |
Taipei City 231, Taiwan (R.O.C.) | |
Telephone: | (02)89131588 |
The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.
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Table of contents
Contents | Page | |||
1. | Cover Page | 1 | ||
2. | Table of Contents | 2 | ||
3. | Independent Auditors' Review Report | 3 | ||
4. | Consolidated Balance Sheets | 4 | ||
5. | Consolidated Statements of Comprehensive Income | 5 | ||
6. | Consolidated Statements of Changes in Equity | 6 | ||
7. | Consolidated Statements of Cash Flows | 7 | ||
8. | Notes to the Consolidated Financial Statements | |||
(1) | Company history | 8 | ||
(2) | Approval date and procedures of the consolidated financial statements | 8 | ||
(3) | New standards, amendments and interpretations adopted | 8~9 | ||
(4) | Summary of significant accounting policies | 9~11 | ||
(5) | Significant accounting assumptions and judgments, and major sources | 11 | ||
of estimation uncertainty | ||||
(6) | Explanation of significant accounts | 11~39 | ||
(7) | Related-party transactions | 39~40 | ||
(8) | Pledged assets | 40 | ||
(9) | Commitments and contingencies | 40 | ||
(10) | Losses Due to Major Disasters | 40 | ||
(11) | Subsequent Events | 40 | ||
(12) | Other | 40~41 | ||
(13) | Other disclosures | |||
(a) Information on significant transactions | 42~44 | |||
(b) Information on investees | 45 | |||
(c) Information on investment in mainland China | 46 | |||
(d) Major shareholders | 46 | |||
(14) | Segment information | 47~48 |
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Independent Auditors' Review Report
To the Board of Directors of TAIWAN SEMICONDUCTOR CO., LTD.:
Introduction
We have reviewed the accompanying consolidated balance sheets of TAIWAN SEMICONDUCTOR CO., LTD. (the "Company") and its subsidiaries ("Group") as of June 30, 2022 and 2021, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2022 and 2021, as well as the changes in equity and cash flows for the six months ended June 30, 2022 and 2021, and notes to the consolidated financial statements, including a summary of significant accounting policies. 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
Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standard 65, " Review of Financial Information Performed by the Independent Auditor of the Entity". A review of the 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 conducted in accordance with the generally accepted auditing standards 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.
Basis for Qualified Conclusion
As stated in Note 4(b), the consolidated financial statements included the financial statements of certain non- significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $3,071,715 thousand and $2,272,134 thousand, constituting 17.54% and 14.80% of the consolidated total assets; and the total liabilities amounting to $647,183 thousand and $465,678 thousand, constituting 8.10% and 6.75% of the consolidated total liabilities as of June 30, 2022 and 2021, respectively; as well as total comprehensive income (loss) amounting to $137,251 thousand, $69,653 thousand, $283,126 thousand and $104,071 thousand, constituting 23.02%, 29.61%, 22.03% and 21.03% of the consolidated total comprehensive income (loss) for the three months and six months ended June 30, 2022 and 2021, respectively.
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Qualified Conclusion
Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews and the review report of other auditors (please refer to Other Matter paragraph), nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2022 and 2021, and of its consolidated financial performance for the three months and six months ended June 30, 2022 and 2021, as well as its consolidated cash flows for the six months ended June 30, 2022 and 2021 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.
Other Matter
We did not review the financial statements of TSC Auto ID Technology Co., Ltd., (TSC Auto ID) a subsidiary of the Group. Those financial statements were reviewed by other auditor(s), whose review report has been furnished to us, and our conclusion, insofar as it relates to the amounts included for TSC Auto ID, is based solely on the review report of the other auditor(s). The financial statements of TSC Auto ID reflect total assets amounting to $7,053,307 thousand and $6,640,736 thousand, constituting 40.27% and 43.27% of the consolidated total assets as of June 30, 2022 and 2021, respectively; and the total revenues amounting to $2,042,284 thousand, $1,735,886 thousand, $3,804,367 thousand and $3,260,827 thousand, constituting 51.51%, 53.72%, 49.30% and 53.37% of the consolidated total revenues for the three months and six months ended June 30, 2022 and 2021, respectively.
The engagement partners on the reviews resulting in this independent auditors' review report are Mei, Yuan- Chen and Hsu, Yu-Feng.
KPMG
Taipei, Taiwan (R.O.C)
August 10, 2022
Notes to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the 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 accepted and applied in the Republic of China.
The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.
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(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
Reviewed only, not audited in accordance with the generally accepted auditing standards as of June 30, 2022 and 2021
TAIWAN SEMICONDUCTOR CO., LTD. AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, 2022, December 31, 2021, and June 30, 2021
(Expressed in Thousands of New Taiwan Dollars)
June 30, 2022 | December 31, 2021 | June 30, 2021 | June 30, 2022 | December 31, 2021 | June 30, 2021 | ||||||||||||||||||||||||||||||
Assets | Amount | % | Amount | % | Amount | % | Liabilities and Equity | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||||
Current assets: | Current liabilities: | ||||||||||||||||||||||||||||||||||
1100 | Cash and cash equivalents (note 6(a)) | $ | 2,858,561 | 16 | 2,701,648 | 17 | 2,712,377 | 18 | 2100 | Short-term borrowings (note 6(k)) | $ | 1,135,034 | 6 | 921,426 | 6 | 1,341,862 | 9 | ||||||||||||||||||
1110 | Current financial assets at fair value through profit | 232,342 | 1 | 155,067 | 1 | 3,473 | - | 2120 | Current financial liabilities at fair value through | 14,361 | - | 563 | - | 2,205 | - | ||||||||||||||||||||
1150 | or loss (note 6(b)) | profit or loss (note 6(b)) | |||||||||||||||||||||||||||||||||
Notes receivable, net (note 6(c)) | 207 | - | 751 | - | 67 | - | 2150 | Notes payable | - | - | 1,607 | - | - | - | |||||||||||||||||||||
1170 | Accounts receivable, net (note 6(c)) | 3,369,004 | 19 | 2,950,815 | 19 | 2,727,956 | 18 | 2170 | Accounts payable | 1,764,263 | 10 | 1,673,549 | 10 | 1,527,741 | 10 | ||||||||||||||||||||
1200 | Other receivables | 73,129 | 1 | 63,284 | - | 47,907 | - | 2200 | Other payables (note 6(m)) | 1,829,927 | 10 | 883,040 | 6 | 1,395,460 | 9 | ||||||||||||||||||||
1220 | Current tax assets | 10,079 | - | 929 | - | 710 | - | 2230 | Current tax liabilities | 357,871 | 2 | 412,838 | 3 | 288,394 | 2 | ||||||||||||||||||||
130X | Inventories (note 6(d)) | 3,059,102 | 18 | 2,444,825 | 15 | 2,138,744 | 14 | 2322 | Long-term borrowings, current portion (note 6(l)) | 109,775 | 1 | 65,000 | - | 4,000 | - | ||||||||||||||||||||
1410 | Prepayments | 208,169 | 1 | 177,271 | 1 | 192,749 | 1 | 2280 | Lease liabilities, current (note 6(n)) | 96,366 | 1 | 113,331 | 1 | 97,787 | 1 | ||||||||||||||||||||
1476 | Other current financial assets (note 6(b)) | 523,802 | 3 | 373,584 | 2 | 431,245 | 3 | 2399 | Other current liabilities | 299,486 | 2 | 232,681 | 1 | 189,759 | 1 | ||||||||||||||||||||
10,334,395 | 59 | 8,868,174 | 55 | 8,255,228 | 54 | ||||||||||||||||||||||||||||||
5,607,083 | 32 | 4,304,035 | 27 | 4,847,208 | 32 | ||||||||||||||||||||||||||||||
Non-current assets: | Non-Current liabilities: | ||||||||||||||||||||||||||||||||||
1600 | Property, plant and equipment (note 6(f)) | 4,473,543 | 26 | 4,501,135 | 28 | 4,425,274 | 29 | 2540 | Long-term borrowings (note 6(l)) | 1,329,555 | 8 | 1,484,310 | 10 | 1,057,280 | 7 | ||||||||||||||||||||
1755 | Right-of-use assets (note 6(g)) | 247,387 | 1 | 280,665 | 2 | 324,430 | 2 | 2580 | Lease liabilities non-current (note 6(n)) | 145,588 | 1 | 190,820 | 1 | 242,985 | 2 | ||||||||||||||||||||
1822 | Intangible assets (notes 6(h)) | 354,071 | 2 | 388,016 | 3 | 438,124 | 3 | 2640 | Net defined benefit liabilities, non-current | 42,578 | - | 42,788 | - | 44,976 | - | ||||||||||||||||||||
1805 | Goodwill (note 6(i)) | 1,099,926 | 6 | 1,024,426 | 6 | 1,031,088 | 7 | 2570 | Deferred tax liabilities | 795,446 | 5 | 684,722 | 4 | 651,994 | 4 | ||||||||||||||||||||
1840 | Deferred tax assets | 457,753 | 3 | 456,197 | 3 | 461,569 | 3 | 2670 | Other non-current liabilities | 72,845 | - | 51,787 | - | 58,471 | - | ||||||||||||||||||||
1980 | Other non-current financial assets (note 6(b)) | 79,790 | - | 71,583 | - | 67,377 | - | 2,386,012 | 14 | 2,454,427 | 15 | 2,055,706 | 13 | ||||||||||||||||||||||
1990 | Other non-current assets (note 6(j)) | 466,913 | 3 | 395,775 | 3 | 344,798 | 2 | Total liabilities | 7,993,095 | 46 | 6,758,462 | 42 | 6,902,914 | 45 | |||||||||||||||||||||
7,179,383 | 41 | 7,117,797 | 45 | 7,092,660 | 46 | Stockholder' equity attributable to parent: | |||||||||||||||||||||||||||||
(note 6(q)) | |||||||||||||||||||||||||||||||||||
3110 | Common stock | 2,634,854 | 15 | 2,650,854 | 17 | 2,650,854 | 17 | ||||||||||||||||||||||||||||
3200 | Capital surplus | 2,134,317 | 12 | 2,166,799 | 14 | 2,166,799 | 14 | ||||||||||||||||||||||||||||
3300 | Retained earnings | 3,359,327 | 19 | 3,247,117 | 20 | 2,726,627 | 18 | ||||||||||||||||||||||||||||
3400 | Other stockholders' equity | (387,947) | (2) | (531,125) | (4) | (542,503) | (4) | ||||||||||||||||||||||||||||
3500 | Treasury shares | (506,043) | (3) | (506,990) | (3) | (506,990) | (3) | ||||||||||||||||||||||||||||
Total equity attributable to owners of parent: | 7,234,508 | 41 | 7,026,655 | 44 | 6,494,787 | 42 | |||||||||||||||||||||||||||||
36XX | Non-controlling interests (note 6(e)) | 2,286,175 | 13 | 2,200,854 | 14 | 1,950,187 | 13 | ||||||||||||||||||||||||||||
Total equity | 9,520,683 | 54 | 9,227,509 | 58 | 8,444,974 | 55 | |||||||||||||||||||||||||||||
Total assets | $ | 17,513,778 | 100 | 15,985,971 | 100 | 15,347,888 | 100 | Total liabilities and equity | $ | 17,513,778 | 100 | 15,985,971 | 100 | 15,347,888 | 100 | ||||||||||||||||||||
See accompanying notes to financial statements.
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Taiwan Semiconductor Co. Ltd. published this content on 20 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 September 2022 05:59:05 UTC.