Page 279 - 2017 TSMC Annual Report

b. Investments in associates
Associates consisted of the following:
Place of Incorporation and Operation
Hsinchu, Taiwan
Singapore
Taoyuan, Taiwan
Hsinchu, 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)
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
December 31, 2017
$ 8,568,344
5,677,640
2,292,100
1,300,194
$ 17,838,278
December 31, 2016
December 31, 2017
28%
39%
41%
35%
December 31, 2016
28%
39%
41%
35%
$
8,806,384
7,163,516
2,599,807
1,174,181
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.
To simplify investment structure, the Company acquired 18,504 thousand shares of Xintec previously held by VisEra Holding by NT$445,012 thousand in August 2016. The percentage of ownership held by the Company increased to 41.4%.
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 the Accounting Standards Used in Preparation of the Parent Company Only Financial Statements, which is adjusted by the Company using the equity method of accounting.
1) VIS
Current assets Noncurrent assets Current liabilities Noncurrent liabilities
Net revenue
Income from operations
Net income
Other comprehensive income Total comprehensive income Cash dividends received
December 31, 2016
$ 25,662,921
$ 9,501,442
$ 5,476,672
$ 804,107
Year Ended December 31, 2016
$ 25,828,634
$ 6,083,625
$ 5,520,645
$ 5,592
$ 5,526,237
$ 1,206,981
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$ 19,743,888