Page 278 - 2017 TSMC Annual Report

a. Investments in subsidiaries Subsidiaries consisted of the following:
Subsidiaries
TSMC Global Ltd. (TSMC Global)
TSMC China Company Limited (TSMC China)
TSMC Partners, Ltd. (TSMC Partners)
TSMC Nanjing Company Limited (TSMC Nanjing)
VisEra Technologies Company Ltd. (VisEra Tech)
TSMC North America
TSMC Europe B.V. (TSMC Europe) VentureTech Alliance
Fund II, L.P.
(VTAF II) VentureTech Alliance
Fund III, L.P.
(VTAF III)
TSMC Japan Limited
(TSMC Japan) TSMC Korea Limited
(TSMC Korea) TSMC Solar Europe
GmbH
Venture Tech Alliance
Holdings, LLC (VTA Holdings)
Principal Activities
Investment activities
Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices
Investing in companies involved in the design, manufacture, and other related business in the semiconductor industry and other investment activities
Manufacturing, selling, testing and computer-aided design of integrated circuits and other semiconductor devices
Engaged in manufacturing electronic spare parts and in researching, developing, designing, manufacturing, selling, packaging and testing of color filter
Selling and marketing of integrated circuits and other semiconductor devices
Customer service and supporting activities
Investing in new start-up technology companies
Investing in new start-up technology companies
Customer service and supporting activities
Customer service and supporting activities
Selling of solar related products and providing customer service
Investing in new start-up technology companies
December 31, 2017
$ 309,211,877 51,060,885
49,684,287
26,493,740
4,667,162
4,001,003
407,324 320,533
152,836
129,446 39,210 (20,217 )
-
December 31, 2016
$ 265,634,729 42,618,308
51,749,910
6,331,094
5,234,883
4,340,303
353,695 467,171
219,350
132,999 35,706 (6,328 )
-
$ 377,111,820
December 31, 2017
100% 100%
100%
100%
87%
100%
100% 98%
98%
100% 100% 100%
-
December 31, 2016
100% 100%
100%
100%
87%
100%
100% 98%
98%
100% 100% 100%
7%
$ 446,148,086 TSMC Solar Europe GmbH is under liquidation procedures.
VTA Holdings completed the liquidation procedures in April 2017.
Place of Incorporation and Operation
Tortola, British Virgin Islands Shanghai, China
Tortola, British Virgin Islands
Nanjing, China
Hsinchu, Taiwan
San Jose, California, U.S.A.
Amsterdam, the Netherlands Cayman Islands
Cayman Islands
Yokohama, Japan
Seoul, Korea
Hamburg, Germany
Delaware, U.S.A.
Carrying Amount
% of Ownership and Voting Rights Held by the Company
To simplify investment structure, the Company acquired 253,120 thousand shares of VisEra Tech previously held by VisEra Holding Company (VisEra Holding) by NT$4,874,231 thousand in August 2016. The percentage of ownership held by the Company was 87%.
Under the investment agreement entered into with the municipal government of Nanjing, China on March 28, 2016, the Company and its subsidiaries will make an investment in Nanjing in the amount of approximately US$3 billion to establish a subsidiary operating a 300mm wafer fab with the capacity of 20,000 12-inch wafers per month, and a design service center. TSMC Nanjing was established in May 2016. In both 2017 and 2016, the Company continually increased its investment in TSMC Nanjing for the amount of NT$21,724,892 thousand and NT$6,435,200 thousand. This project was approved by the Investment Commission, Ministry of Economic Affairs, R.O.C. (MOEA).
To lower the hedging cost, in both of 2017 and 2016, the Company continually increased its investment in TSMC Global for the amount of NT$60,683,010 thousand and NT$64,451,983 thousand, respectively. This project was approved by the Investment Commission, MOEA.
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