Page 196 - TSMC 2018 Annual Report

15. INVENTORIES
Finished goods
Work in process
Raw materials
Supplies and spare parts
$
9,923,338 53,362,160 7,143,806 3,451,443
December 31, 2018
$ 11,329,802 72,071,861 15,233,877 4,595,436
$ 103,230,976
December 31, 2017
$ 73,880,747
Write-down of inventories to net realizable value (excluding computer virus outbreak losses) and reversal of write-down of inventories resulting from the increase in net realizable value in the amount of NT$1,259,472 thousand and NT$840,861 thousand, respectively, were included in the cost of revenue for the years ended December 31, 2018 and 2017. Please refer to computer virus outbreak losses in Note 41.
16. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
Associates consisted of the following:
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, 2018
$ 9,006,126
December 31, 2017
$ 8,568,344
5,677,640 2,292,100 1,300,194
23,210
$ 17,861,488
December 31, 2018
28%
39% 41% 35% 39%
December 31, 2017
28%
39% 41% 35% 39%
Place of Incorporation and Operation
Hsinchu, Taiwan
Carrying Amount
% of Ownership and Voting Rights Held by the Company
Singapore 5,772,815
Taoyuan, Taiwan Hsinchu, Taiwan New Taipei, Taiwan
1,764,607 1,299,423 22,867
$ 17,865,838
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.
As of December 31, 2018 and 2017, no investments in associates are individually material to the Company. Please refer to the consolidated statements of comprehensive income for recognition of share of both profit (loss) and other comprehensive income (loss) of associates that are not individually material.
The market prices of the investments accounted for using the equity method in publicly traded stocks calculated by the closing price at the end of the reporting period are summarized as follows. The closing price represents the quoted price in active markets, the level 1 fair value measurement.
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