- TSMC Vision, Mission & Core Values
- 30 Years of TSMC
- Letter to Shareholders
- Company Profile
- Corporate Governance
- Overview
- Board of Directors
- Major Resolutions of Shareholders' Meeting and Board Meetings
- Taiwan Corporate Governance Implementation as Required by the Taiwan Financial Supervisory Commission
- Code of Ethics and Business Conduct
- Regulatory Compliance
- Internal Control System Execution Status
- Status of Personnel Responsible for the Company's Financial and Business Operation
- Information Regarding TSMC’s Independent Auditor
- Material Information Management Procedure
- Capital and Shares
- Operational Highlights
- Financial Highlights and Analysis
- Corporate Social Responsibility
- Subsidiary Information and Other Special Notes
- Financial Statements
- Contact Information
- Downloads
- Previous Annual Reports
Financial Status and Operating Results
Financial Status
Consolidated
Unit: NT$ thousands
Item |
2016 |
2015 |
Difference |
% |
|---|---|---|---|---|
Current Assets |
817,729,126 |
746,743,991 |
70,985,135 |
10% |
Long-term Investments (Note 1) |
46,153,916 |
34,993,583 |
11,160,333 |
32% |
Property, Plant and Equipmen |
997,777,687 |
853,470,392 |
144,307,295 |
17% |
Intangible Assets |
14,614,846 |
14,065,880 |
548,966 |
4% |
Other Assets (Note 2) |
10,179,727 |
8,244,452 |
1,935,275 |
23% |
Total Assets |
1,886,455,302 |
1,657,518,298 |
228,937,004 |
14% |
Current Liabilities |
318,239,273 |
212,228,594 |
106,010,679 |
50% |
Noncurrent Liabilities |
178,164,903 |
222,655,225 |
(44,490,322) |
-20% |
Total Liabilities |
496,404,176 |
434,883,819 |
61,520,357 |
14% |
Capital Stock |
259,303,805 |
259,303,805 |
0 |
0% |
Capital Surplus |
56,272,304 |
56,300,215 |
(27,911) |
0% |
Retained Earnings |
1,072,008,169 |
894,293,586 |
177,714,583 |
20% |
Others |
1,663,983 |
11,774,113 |
(10,110,130) |
-86% |
Equity Attributable to Shareholders of the Parent |
1,389,248,261 |
1,221,671,719 |
167,576,542 |
14% |
Total Equity |
1,390,051,126 |
1,222,634,479 |
167,416,647 |
14% |
Long-term investments consist of noncurrent available-for-sale financial assets, held-to-maturity financial assets, financial assets carried at cost and investments accounted for using equity method. |
|
Other assets consist of deferred income tax assets, refundable deposits, and other noncurrent assets. |
● Analysis of Deviation over 20%
- Increase in long-term investments: The increase was mainly due to increase in held-to-maturity financial assets.
- Increase in other assets: The increase was mainly due to increase in deferred income tax assets.
- Increase in current liabilities: The increase was mainly due to increase in payables to contractors and equipment suppliers and short-term loans.
- Decrease in noncurrent liabilities: The decrease was mainly due to reclassification of bonds payable due in 1 year to current liabilities and decrease in guarantee deposits.
- Increase in retained earnings: The increase was mainly due to net income of 2016, partially offset by distribution of 2015 earnings.
- Decrease in others: The decrease was mainly due to decrease in currency exchange differences arising from translation of foreign operations in 2016.
● Major Impact on Financial Position
The above deviations had no major impact on TSMC's financial position.
● Future Plan on Financial Position: Not applicable.
Unconsolidated
Unit: NT$ thousands
Item |
2016 |
2015 |
Difference |
% |
|---|---|---|---|---|
Current Assets |
443,781,164 |
426,913,080 |
16,868,084 |
4% |
Long-term Investments (Note 1) |
397,290,976 |
326,330,737 |
70,960,239 |
22% |
Property, Plant and Equipmen |
979,401,337 |
831,784,912 |
147,616,425 |
18% |
Intangible Assets |
10,047,991 |
9,391,418 |
656,573 |
7% |
Other Assets (Note 2) |
6,816,676 |
5,265,368 |
1,551,308 |
29% |
Total Assets |
1,837,338,144 |
1,599,685,515 |
237,652,629 |
15% |
Current Liabilities |
308,177,214 |
194,299,278 |
113,877,936 |
59% |
Noncurrent Liabilities |
139,912,669 |
183,714,518 |
(43,801,849) |
-24% |
Total Liabilities |
448,089,883 |
378,013,796 |
70,076,087 |
19% |
Capital Stock |
259,303,805 |
259,303,805 |
0 |
0% |
Capital Surplus |
56,272,304 |
56,300,215 |
(27,911) |
0% |
Retained Earnings |
1,072,008,169 |
894,293,586 |
177,714,583 |
20% |
Others |
1,663,983 |
11,774,113 |
(10,110,130) |
-86% |
Total Equity |
1,389,248,261 |
1,221,671,719 |
167,576,542 |
14% |
Long-term investments consist of held-to-maturity financial assets, financial assets carried at cost and investments accounted for using equity method. |
|
Other assets consist of deferred income tax assets, refundable deposits, and other noncurrent assets. |
● Analysis of Deviation over 20%
- Increase in long-term investments: The increase was mainly due to increase in investments accounted for using equity method in 2016.
- Increase in other assets: The increase was mainly due to increase in deferred income tax assets.
- Increase in current liabilities: The increase was mainly due to increase in payables to contractors and equipment suppliers and short-term loans.
- Decrease in noncurrent liabilities: The decrease was mainly due to reclassification of bonds payable due in 1 year to current liabilities and
- decrease in guarantee deposits.
- Increase in retained earnings: The increase was mainly due to net income of 2016, partially offset by distribution of 2015 earnings.
- Decrease in others: The decrease was mainly due to decrease in currency exchange differences arising from translation of foreign operations in 2016.
● Major Impact on Financial Position
The above deviations had no major impact on TSMC's financial position.
● Future Plan on Financial Position: Not applicable.
Financial Performance
Consolidated
Unit: NT$ thousands
Item |
2016 |
2015 |
Difference |
% |
|---|---|---|---|---|
Net Revenue |
947,938,344 |
843,497,368 |
104,440,976 |
12% |
Cost of Revenue |
473,077,173 |
433,117,601 |
39,959,572 |
9% |
Gross Profitbefore Realized Gross Profiton Sales to Associates |
474,861,171 |
410,379,767 |
64,481,404 |
16% |
Realized Gross Profiton Sales to Associates |
(29,073) |
15,126 |
(44,199) |
-292% |
Gross Profit |
474,832,098 |
410,394,893 |
64,437,205 |
16% |
Operating Expenses |
96,904,133 |
88,466,500 |
8,437,633 |
10% |
Other Operating Income and Expenses, Net |
29,813 |
(1,880,618) |
1,910,431 |
NM |
Income from Operations |
377,957,778 |
320,047,775 |
57,910,003 |
18% |
Non-operating Income and Expenses |
8,001,602 |
30,381,136 |
(22,379,534) |
-74% |
Income before Income Tax |
385,959,380 |
350,428,911 |
35,530,469 |
10% |
Income Tax Expenses |
51,621,144 |
43,872,744 |
7,748,400 |
18% |
Net Income |
334,338,236 |
306,556,167 |
27,782,069 |
9% |
Other Comprehensive Income, Net of Income Tax |
(11,067,189) |
(14,714,182) |
3,646,993 |
25% |
Total Comprehensive Income for the Year |
323,271,047 |
291,841,985 |
31,429,062 |
11% |
Total Net Income Attributable to Shareholders of the Parent |
334,247,180 |
306,573,837 |
27,673,343 |
9% |
Total Comprehensive Income Attributable to Shareholders of the Parent |
323,186,736 |
291,867,757 |
31,318,979 |
11% |
● Analysis of Deviation over 20%
- Decrease in realized (unrealized) gross profit on sales to associates: The decrease was mainly due to higher sales to associates and defer recognition of gain in the fourth quarter of in 2016.
- Decrease in non-operating income and expenses: The decrease was mainly due to lower gain on disposal of available-for-sale financial assets.
- Increase in other comprehensive income, net of income tax: The increase was mainly due to unrealized gain from available-for-sale.
- financial assets was realized to profit or loss upon disposal in 2015, partially offset by decrease in currency exchange differences arising from translation of foreign operations in 2016.
● Sales Volume Forecast and Related Information
For additional details, please refer to “Letter to Shareholders” of this Annual Report.
● Major Impact on Financial Performance
The above deviations had no major impact on TSMC's financial performance.
● Future Plan on Financial Performance: Not applicable.
Unconsolidated
Unit: NT$ thousands
Item |
2016 |
2015 |
Difference |
% |
|---|---|---|---|---|
Net Revenue |
936,387,291 |
837,046,888 |
99,340,403 |
12% |
Cost of Revenue |
474,552,913 |
439,356,165 |
35,196,748 |
8% |
Gross Profitbefore Realized Gross Profiton Sales to Associates |
461,834,378 |
397,690,723 |
64,143,655 |
16% |
Realized Gross Profiton Sales to Associates |
(26,082) |
18,117 |
(44,199) |
-244% |
Gross Profit |
461,808,296 |
397,708,840 |
64,099,456 |
16% |
Operating Expenses |
92,161,728 |
83,953,035 |
8,208,693 |
10% |
Other Operating Income and Expenses, Net |
83,965 |
(347,107) |
431,072 |
NM |
Income from Operations |
369,730,533 |
313,408,698 |
56,321,835 |
18% |
Non-operating Income and Expenses |
15,458,427 |
36,579,970 |
(21,121,543) |
-58% |
Income before Income Tax |
385,188,960 |
349,988,668 |
35,200,292 |
10% |
Income Tax Expenses |
50,941,780 |
43,414,831 |
7,526,949 |
17% |
Net Income |
334,247,180 |
306,573,837 |
27,673,343 |
9% |
Other Comprehensive Income, Net of Income Tax |
(11,060,444) |
(14,706,080) |
3,645,636 |
25% |
Total Comprehensive Income for the Year |
323,186,736 |
291,867,757 |
31,318,979 |
11% |
● Analysis of Deviation over 20%
- Decrease in realized (unrealized) gross profit on sales to subsidiaries and associates: The decrease was mainly due to higher sales to subsidiaries and associates and defer recognition of gain in the fourth quarter of 2016.
- Decrease in non-operating income and expenses: The decrease was mainly due to lower share of profits of subsidiaries and associates in 2016.
- Increase in other comprehensive income, net of income tax : The increase was mainly due to unrealized gain from available-for-sale financial assets of the subsidiary was realized to profit or loss upon disposal in 2015,partially offset by decrease in currency exchange differences arising from translation of foreign operations in 2016.
● Sales Volume Forecast and Related Information
For additional details, please refer to “Letter to Shareholders” of this Annual Report.
● Major Impact on Financial Performance
The above deviations had no major impact on TSMC's financial performance.
● Future Plan on Financial Performance: Not applicable.
Cash Flow
Consolidated
Unit: NT$ thousands
Cash Balance |
Net Cash Provided by |
Net Cash Used in Investing and |
Cash Balance |
Remedy for Liquidity Shortfall |
|
|---|---|---|---|---|---|
Investment Plan |
Financing Plan |
||||
562,688,930 |
539,834,592 |
(561,269,689) |
541,253,833 |
None |
None |
● Analysis of Cash Flow
- NT$539.8 billion net cash generated by operating activities: mainly from net income and depreciation and amortization expenses.
- NT$395.4 billion net cash used in investing activities: primarily for capital expenditures and net purchase of marketable financial instruments.
- NT$165.8 billion net cash used in financing activities: primarily for cash dividend payment and repayment of corporate bonds, partially offset by the increase in short-term loans.
● Remedial Actions for Liquidity Shortfall: As a result of positive operating cash flows and cash on-hand, remedial actions are not required.
● Cash Flow Projection for Next Year: Not applicable.
Unconsolidated
Unit: NT$ thousands
Cash Balance |
Net Cash Provided by |
Net Cash Used in Investing and |
Cash Balance |
Remedy for Liquidity Shortfall |
|
|---|---|---|---|---|---|
Investment Plan |
Financing Plan |
||||
264,493,583 |
532,547,786 |
(547,162,806) |
249,878,563 |
None |
None |
● Analysis of Cash Flow
- NT$532.5 billion net cash generated by operating activities: mainly from net income and depreciation and amortization expenses.
- NT$321.9 billion net cash used in investing activities: primarily for capital expenditures.
- NT$225.2 billion net cash used in financing activities: primarily for cash dividend payment and capital injection in subsidiaries.
● Remedial Actions for Liquidity Shortfall: As a result of positive operating cash flows and cash on-hand, remedial actions are not required.
● Cash Flow Projection for Next Year: Not applicable.
Recent Years Major Capital Expenditures and Impact on Financial and Business
Unit: NT$ thousands
Plan |
Actual or Planned Source of Capital |
Total Amount |
Actual Use of Capital |
|
|---|---|---|---|---|
2016 |
2015 |
|||
Production Facilities, R&D and |
Cash flowgenerated from operations |
578,773,185 |
325,471,832 |
253,301,353 |
Others |
Cash flowgenerated from operations |
6,788,920 |
2,573,438 |
4,215,482 |
Total |
|
585,562,105 |
328,045,270 |
257,516,835 |
Based on capital expenditures listed above, TSMC's annual production capacity increased by approximately 1 million 12-inch equivalent wafers in 2016.
Long-term Investment Policy and Results
TSMC’s long-term investments, accounted for under the equity method, were all made for strategic purposes. However, when an investment is no longer of strategic value, it may be considered a financial investment. In 2016, the investment gain from these investments amounted to NT$14,941,372 thousand (NT$3,495,600 thousand on a consolidated basis), decreasing from previous year mainly due to the disposal gain of ASML shares recognized in 2015. For future investments, TSMC will continue to focus on strategic purposes through prudent assessments.