Page 188 - 2017 TSMC Annual Report

Since there is a wide range of estimated fair values of the Company’s investments in non-publicly traded stocks, the Company concludes that the fair value cannot be reliably measured and therefore should be measured at the cost less any impairment.
The stocks of Aquantia and Impinj, Inc. were listed in November 2017 and July 2016, respectively. Accordingly, the Company reclassified the aforementioned investments from financial assets carried at cost to available-for-sale financial assets.
14. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
Associates consisted of the following:
Place of Incorporation and Operation
Hsinchu, Taiwan
Singapore Taoyuan, Taiwan
Hsinchu, Taiwan
New Taipei, Taiwan
Carrying Amount
% of Ownership and Voting Rights Held by the Company
Name of Associate
Vanguard International Semiconductor Corporation (VIS)
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC)
Xintec Inc. (Xintec)
Global Unichip Corporation (GUC)
Mutual-Pak
Principal Activities
Manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing and design service of masks
Manufacturing and selling of integrated circuits and other semiconductor devices
Wafer level chip size packaging and wafer level post passivation interconnection service
Researching, developing, manufacturing, testing and marketing of integrated circuits
Manufacturing of electronic parts, wholesaling and retailing of electronic materials, and researching, developing and testing of RFID
December 31, 2017
$ 8,568,344
5,677,640 2,292,100
1,300,194 23,210
$ 17,861,488
December 31, 2016
$ 8,806,384
7,163,516 2,599,807
1,174,181 -
$ 19,743,888
December 31, 2017
28%
39% 41%
35% 39%
December 31, 2016
28%
39% 41%
35% -
Starting December 2017, the Company no longer had the majority of voting power and control over Mutual-Pak. As a result, Mutual-Pak is no longer consolidated and is accounted for using the equity method.
Starting June 2016, the Company has no longer served as Motech’s board of director. As a result, the
Company exercises no significant influence over Motech. Therefore, Motech is no longer accounted for using the equity method. Further, such investment was reclassified to available-for-sale financial assets and the Company recognized a disposal loss of NT$259,960 thousand.
As of December 31, 2017, no investments in associates are individually material to the Company. As of December 31, 2016, the summarized financial information in respect of each of the Company’s material associates is set out below. The summarized financial information below represents amounts shown in the associate’s financial statements prepared in accordance with Taiwan-IFRSs adjusted by the Company using the equity method of accounting.
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