Page 326 - TSMC 2022 Annual Report

The Company increased its investment in TSMC Arizona for the amount of NT$15,372,500 thousand and NT$20,787,702 thousand in both of 2022 and 2021, respectively. Under the terms of the development agreement entered into between TSMC Arizona and the City of Phoenix, the City of Phoenix commits approximately US$205 million toward various public infrastructure projects in the area of the proposed manufacturing facility, conditioned on TSMC Arizona’s achieving a minimum project scale with defined spending and job-creation thresholds.
The Company established a subsidiary, JASM, in December 2021 and invested in JASM for the amount of NT$1,416,921 thousand in January 2022. The Company continually increased its investment in JASM for the amount of NT$23,150,164 in 2022. After JASM’s capital increase in January 2022, the Company’s shareholding in JASM decreased from 100% to 81%. In addition, JASM increased its capital by issuing noncumulative preferred shares and common shares in April 2022, the Company’s shareholding in JASM decreased from 81% to 71% and the proportion of voting right remain 81%. The aforementioned transactions were accounted for as an equity transaction since the transaction did not change the Company’s control over JASM.
To facilitate VisEra’s IPO in Taiwan in June 2022, 39,501 thousand common shares of VisEra at a price of NT$240 were sold by the Company and an increase of NT$8,406,282 thousand in capital surplus was recognized. The Company’s shareholding in VisEra decreased from 87% to 73%. In addition, VisEra has increased its capital in June 2022. After the increase in capital, the Company’s shareholding in VisEra decreased from 73% to 68%. The aforementioned transactions were accounted for as an equity transaction since the transaction did not change the Company’s control over VisEra.
The Company established a subsidiary in January 2021 and, in both of 2022 and 2021, continually increased its investment in Emerging Fund for the amounts of NT$1,033,339 thousand and NT$298,618 thousand, respectively.
The Company established a subsidiary in March 2021 and, in both of 2022 and 2021, continually increased its investment in TSMC 3DIC for the amounts of NT$865,370 thousand and NT$278,986 thousand, respectively.
b. Investments in associates
Associates consisted of the following:
Place of Incorporation and Operation
Hsinchu, Taiwan
Singapore Taoyuan, Taiwan Hsinchu, Taiwan
Carrying Amount
December 31, 2022
$ 13,492,653
8,934,731 3,528,417 1,666,651
$ 27,622,452
% of Ownership and Voting Rights Held by the Company
December 31, 2021
28%
39% 41% 35%
December 31,
28%
39% 41% 35%
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, sales, 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,
2021 2022
$ 10,613,127
6,795,699 3,046,961 1,484,683
$ 21,940,470
As of December 31, 2022 and 2021, no investments in associates are individually material to the Company. Please refer to the parent company only statements of comprehensive income for recognition of share of both profit (loss) and other comprehensive income (loss) of associates that are not individually material.
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