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Stock Code:5425
TAIWAN SEMICONDUCTOR CO., LTD.
AND SUBSIDIARIES
Consolidated Financial Statements
With Independent Auditors' Review Report
For the Three Months Ended March 31, 2023 and 2022
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 | 12~40 | ||
(7) | Related-party transactions | 40~41 | ||
(8) | Pledged assets | 41 | ||
(9) | Commitments and contingencies | 41 | ||
(10) | Losses Due to Major Disasters | 41 | ||
(11) | Subsequent Events | 41 | ||
(12) | Other | 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 |
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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 (" the Group" ) as of March 31, 2023 and 2022, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2023 and 2022, 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 the Standard on Review Engagements 2410, " Review of Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. 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 Standards on Auditing of the Republic of China 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 $2,885,126 thousand and $2,780,149 thousand, constituting 15.88% and 16.72% of the consolidated total assets; and the total liabilities amounting to $517,503 thousand and $528,184 thousand, constituting 7.31% and 7.78% of the consolidated total liabilities as of March 31, 2023 and 2022, respectively; as well as total comprehensive income (loss) amounting to $46,842 thousand and $145,875 thousand, constituting 13.11% and 21.17% of the consolidated total comprehensive income (loss) for the three months ended March 31, 2023 and 2022, 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 March 31, 2023 and 2022, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2023 and 2022 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 auditors, 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 auditors. The financial statements of TSC Auto ID reflect total assets amounting to $7,101,684 thousand and $6,647,638 thousand, constituting 39.10% and 39.98% of the consolidated total assets as of March 31, 2023 and 2022, respectively; and the total revenues amounting to $1,908,045 thousand and $1,762,083 thousand, constituting 52.63% and 46.96% of the consolidated total revenues for the three months ended March 31, 2023 and 2022, respectively.
The engagement partners on the reviews resulting in this independent auditors' report are Kuo, Yang-Lun and Hsiao, Pei-Ju.
KPMG
Taipei, Taiwan (Republic of China)
May 10, 2023
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 generally accepted auditing standards as of March 31, 2023 and 2022
TAIWAN SEMICONDUCTOR CO., LTD. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 2023, December 31, 2022, and March 31, 2022
(Expressed in Thousands of New Taiwan Dollars)
March 31, 2023 | December 31, 2022 | March 31, 2022 | ||||||||||||||
Assets | Amount | % | Amount | % | Amount | % | ||||||||||
Current assets: | ||||||||||||||||
1100 | Cash and cash equivalents (note 6(a)) | $ | 3,386,616 | 19 | 3,595,681 | 20 | 2,471,703 | 15 | ||||||||
1110 | Current financial assets at fair value through profit | 516,413 | 3 | 1,798 | - | 251,835 | 1 | |||||||||
or loss (note 6(b)) | ||||||||||||||||
1150 | Notes receivable, net (notes 6(c) and (r)) | 319 | - | 588 | - | 584 | - | |||||||||
1170 | Accounts receivable, net (notes 6(c) and (r)) | 2,866,262 | 16 | 3,015,880 | 17 | 3,219,395 | 19 | |||||||||
1200 | Other receivables | 91,752 | 1 | 105,789 | 1 | 88,589 | 1 | |||||||||
1220 | Current tax assets | 492 | - | 409 | - | 961 | - | |||||||||
130X | Inventories (note 6(d)) | 3,609,217 | 20 | 3,500,033 | 19 | 2,778,071 | 17 | |||||||||
1410 | Prepayments | 270,959 | 1 | 251,545 | 1 | 190,788 | 1 | |||||||||
1476 | Other current financial assets (note 6(b)) | 389,928 | 2 | 599,488 | 3 | 446,094 | 3 | |||||||||
11,131,958 | 62 | 11,071,211 | 61 | 9,448,020 | 57 | |||||||||||
Non-current assets: | ||||||||||||||||
1510 | Non-current financial assets at fair value through | 4,122 | - | - | - | - | - | |||||||||
profit or loss (note 6(b)) | ||||||||||||||||
1517 | Non-current financial assets at fair value through | - | - | 4,157 | - | - | - | |||||||||
other comprehensive income (note 6(b)) | ||||||||||||||||
1600 | Property, plant and equipment (note 6(f)) | 4,417,745 | 24 | 4,483,033 | 25 | 4,502,295 | 27 | |||||||||
1755 | Right-of-use assets (note 6(g)) | 208,528 | 1 | 229,239 | 1 | 264,966 | 1 | |||||||||
1822 | Intangible assets (note 6(h)) | 289,446 | 2 | 308,413 | 2 | 371,420 | 2 | |||||||||
1805 | Goodwill (note 6(i)) | 1,126,943 | 6 | 1,136,565 | 6 | 1,059,400 | 6 | |||||||||
1840 | Deferred tax assets | 487,165 | 3 | 458,165 | 3 | 461,566 | 3 | |||||||||
1980 | Other non-current financial assets (note 6(b)) | 83,194 | - | 83,020 | - | 84,312 | 1 | |||||||||
1990 | Other non-current assets | 415,276 | 2 | 443,016 | 2 | 435,954 | 3 | |||||||||
7,032,419 | 38 | 7,145,608 | 39 | 7,179,913 | 43 |
Total assets | $ | 18,164,377 100 | 18,216,819 100 | 16,627,933 100 | ||||||||
Liabilities and Equity | March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||||||||||||
Amount | % | Amount | % | Amount | % | |||||||||||||||||
Current liabilities: | ||||||||||||||||||||||
2100 | Short-term borrowings (note 6(j)) | $ | 1,379,471 | 7 | 1,466,515 | 8 | 944,529 | 6 | ||||||||||||||
2120 | Current financial liabilities at fair value through | 5,607 | - | 2,392 | - | 7,443 | - | |||||||||||||||
profit or loss (note 6(b)) | ||||||||||||||||||||||
2170 | Accounts payable | 1,560,662 | 8 | 1,648,557 | 9 | 1,740,311 | 10 | |||||||||||||||
2200 | Other payables (note 6(l)) | 863,714 | 5 | 1,065,266 | 6 | 744,782 | 4 | |||||||||||||||
2230 | Current tax liabilities | 512,468 | 3 | 415,066 | 2 | 517,426 | 3 | |||||||||||||||
2322 | Long-term borrowings, current portion (note 6(k)) | 312,249 | 2 | 322,349 | 2 | - | - | |||||||||||||||
2280 | Lease liabilities, current (note 6(m)) | 109,545 | 1 | 106,012 | - | 96,890 | 1 | |||||||||||||||
2399 | Other current liabilities | 313,484 | 2 | 325,900 | 2 | 285,590 | 2 | |||||||||||||||
5,057,200 | 28 | 5,352,057 | 29 | 4,336,971 | 26 | |||||||||||||||||
Non-Current liabilities: | ||||||||||||||||||||||
2540 | Long-term borrowings (note 6(k)) | 965,820 | 5 | 1,084,391 | 6 | 1,429,310 | 9 | |||||||||||||||
2580 | Lease liabilities, non-current (note 6(m)) | 102,200 | 1 | 123,214 | 1 | 177,836 | 1 | |||||||||||||||
2640 | Net defined benefit liabilities, non-current | 34,924 | - | 35,000 | - | 42,016 | - | |||||||||||||||
2570 | Deferred tax liabilities | 827,239 | 4 | 825,106 | 5 | 733,664 | 4 | |||||||||||||||
2670 | Other non-current liabilities | 92,577 | 1 | 71,568 | - | 73,453 | - | |||||||||||||||
2,022,760 | 11 | 2,139,279 | 12 | 2,456,279 | 14 | |||||||||||||||||
Total liabilities | 7,079,960 | 39 | 7,491,336 | 41 | 6,793,250 | 40 | ||||||||||||||||
Stockholder' equity attributable to parent: | ||||||||||||||||||||||
(note 6(p)) | ||||||||||||||||||||||
3110 | Common stock | 2,634,854 | 15 | 2,634,854 | 14 | 2,634,854 | 16 | |||||||||||||||
3200 | Capital surplus | 2,136,998 | 12 | 2,137,088 | 12 | 2,097,317 | 13 | |||||||||||||||
3300 | Retained earnings | 4,385,908 | 24 | 4,155,591 | 23 | 3,633,153 | 22 | |||||||||||||||
3400 | Other stockholders' equity | (355,057) | (2) | (359,558) | (2) | (373,297) | (2) | |||||||||||||||
3500 | Treasury shares | (506,043) | (3) | (506,043) | (3) | (506,085) | (3) | |||||||||||||||
Total equity attributable to owners of parent | 8,296,660 | 46 | 8,061,932 | 44 | 7,485,942 | 46 | ||||||||||||||||
36XX Non-controlling interests (note 6(e)) | 2,787,757 | 15 | 2,663,551 | 15 | 2,348,741 | 14 | ||||||||||||||||
Total equity | 11,084,417 | 61 | 10,725,483 | 59 | 9,834,683 | 60 | ||||||||||||||||
Total liabilities and equity | $ | 18,164,377 | 100 | 18,216,819 | 100 | 16,627,933 | 100 | |||||||||||||||
See accompanying notes to financial statements.
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Taiwan Semiconductor Co. Ltd. published this content on 17 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 July 2023 07:00:01 UTC.