Taiwan Semiconductor Co., Ltd.TPEX: 5425

2021 Financial_reports

Jul 5, 2022 at 9:32 AM UTC · MarketScreener

Stock No：5425

TAIWAN SEMICONDUCTOR CO., LTD

ANNUAL REPORT 2021

Printed On April 23, 2022

Annual Report Information Can Be Accessed from the Following Websites::

http://:mops.twse.com.tw

http://www.ts.com.tw

1. Spokesperson:

Spencer Wu

Title: Head of Legal Dept.

Tel: (02) 8913-1588 ext.1201

Email: spencer_wu@mail.ts.com.tw

Acting Spokesperson:

Adam Cheng

Title: Vice President & CFO

Tel: (02) 8913-1588 ext. 1410

Email: adam.cheng@mail.ts.com.tw

2. Address and telephone number of the head office, branch and factory:

Head Office: Address: 11th Floor, No. 205, Section 3, Beixin Road, Xindian District, New Taipei City

Telephone: (02) 8913-1588

Yilan Factory: Address: No. 96, Meizhou 2nd Road, Yilan City, Yilan County

Telephone: (03) 9285-017

Lize Factory: Address: No. 31, Section 2, Ligong 1st Road, Chengxing Village, Wujie Township, Yilan County

(Yilan Branch) Tel: (03) 9901-998

Yangxin Everwell Factory: Address: No. 251807, He Town, Yangxin County, Shandong Province, China

Telephone: +86-54386920201

Tianjin Everwell Factory: Address: No. 165, Huanghai Road, Tianjin Economic and Technological Development Zone, China

Telephone: +86-2259816699 Zip Code: 300457

Korea Branch: Address: Room 315, Songnam Bldg., Kangnam daro 273, Seocho-Dong,Seocho-Gu, Seoul, Korea

Telephone: +822-5983336

3. Securities Dealing Institution:

Name: Transfer Agency of China Trust Commercial Bank

Address: 100 5th Floor, No. 83, Section 1, Chongqing South Road, Zhongzheng District, Taipei City (China Trust Chongqing Building)

Website: www.chinatrust.com.tw

Telephone: (02)6636-5566

4. Auditors: KPMG, Taiwan

Accountant's name: Mei Yuanzhen, Xu Yufeng accountant

Address: 68th Floor, No. 7, Section 5, Xinyi Road, Taipei City (Taipei 101 Building)

Website: www.kpmg.com.tw

Telephone: (02)8101-6666

5. The name of the trading place where overseas securities are listed for trading and the method of inquiring about the overseas securities information: not applicable

Company website:http://www.ts.com.tw
For some information about the barcode printer department (TSC Auto ID Technology stock code: 3611), refer to the company's annual report.

	Contents
1.Letter to Shareholders...........................................................................................................................	1
1.	Business Report for 2021 .....................................................................................................................	2
2.	Business Plan for 2022 .........................................................................................................................	4
3. The Future Development Strategy of the Company Affected by the External Competitive
	Environment, the Legal Environment and the Overall Business Environment .................................	6
2.Company profile
1.	Date of Inconporation...........................................................................................................................	9
2.	Company History .................................................................................................................................	9
3.Ｇovernance report
1.	Corporate Organization ......................................................................................................................	15
2.	Information on Directors, Supervisors, President, Vice presidents, Associates, Supervisors of
	Various Departments and Branches....................................................................................................	17
3.	Remuneration paid to Directors, Supervisors, President and vice presidents in the Most Recent
	Year.....................................................................................................................................................	32
4.	Corporate Governance Operation Situation .......................................................................................	44
5.	Information on the professional fees of the attesting CPAs (external auditors) ............................	116
6.	Replacing Accountant Information ..................................................................................................	116
7.	The Company's Chairman, President, Chief Financial Officer, and Managers in Charge of Its Finance
	and Accounting Operations who Have Served in the Most Recent Year, Employed in the firm of a
	Certified Public Accountant or Its Affiliated Company ...................................................................	116
8.	Particulars about Changes in Shareholding and Equity Pledge of Directors, Supervisors, Managers
	and Shareholders Holding More Than 10% of the Company's Shares in the Past Year and as of the
	Date of Publication of the Annual Report ........................................................................................	116
9.	Relationship Among the Top Ten Shareholders .............................................................................	119

10. Shares Held by the Company, Directors, Managers and Companies Directly or Indirectly Controlled by the Company, and the Comprehensive Shareholding Ratio Based on Combined

	Calculation .....................................................................................................................................	120
4. Fundraising Situation
1.	Capital and Shares ............................................................................................................................	123
2.	Bonds................................................................................................................................................	134
3.Special Shares....................................................................................................................................	146
4.	Overseas Depositary Receipts ..........................................................................................................	146
5.	Employee Stock Option ..................................................................................................................	146

6. Restriction of Employee Rights for New Shares and Mergers and Acquisitions (Including Mergers, Acquisitions and Divisions) or the Issuance of New Shares for Acquisition or Exchange of Other

	Companies' Share.............................................................................................................................	146
7.	Financing Plans and Implementation ...............................................................................................	146
5.Operation Overview
1.	Business Scope ...............................................................................................................................	146
2.	Market and Share Overview...........................................................................................................	153
3.	Employee Number, Average Service Length, Average Age, Average Education Distribution Ration
	for the Past Two Years and as of the Publication of the Annual Report ..........................................	162
4.	Environmental Expenditure Information..........................................................................................	163
5.	Labor-Relations ................................................................................................................................	163

6.	Cyber security management .............................................................................................................	165
7.	Important Contracts..........................................................................................................................	166
6. Financial overview
1.	Concise Balance Sheet and Comprehensive Income Statement for the Most Recent Five Years ...	168
2.	Financial Analysis in the Last Five Years........................................................................................	173
3.	The Audit Committee Review Report of the Most Recent Annual Financial Report......................	176
4.	The Most Recent Annual Financial Report......................................................................................	177
5.	The Individual Financial Report of the Company in the Most Recent Year Checked and
	Approved by an Accountant .............................................................................................................	256

6. The Company and Its Affiliates Encountering Any Financial Difficulties in the Past Year and as of the Date of Publication of the Annual Report, Whose Impact the Company's Financial

	Status.................................................................................................................................................	318
7.	The Evaluation Basis and Basis of the Method of Listing the Assets and Liabilities of the
	Financial Statements.........................................................................................................................	318
7. Review and Analysis of Financial Status and Business Results and Risk Review Issues
1.	Review and analysis of Financial Status ..........................................................................................	321
2.	Review and Analysis of Financial Performance ..............................................................................	322
3.	Review and Analysis of Cash Flow .................................................................................................	323
4.	The impact of major capital expenditures in the most recent year on financial operations .............	324
5.	Re-investment Policy in the Past Year, the Main Reason for Its Profit or Loss,the Improvement Plan
and Investment Plan in the Next Year..................................................................................................	324
6.	Risk Review in the Past Year and as of the Date of Publication of the Annual Report...................	327
7.Other Important Matters....................................................................................................................	331
8. Special Notes
1.	Information about the Company's Affiliates in the most recent year ..............................................	337
2.	In the most Recent Year and as of the Date of Publication of the Annual Report, the Handling of
Privately Placed Securities ...................................................................................................................	351
3.	Holding or Disposal of the Company's Shares by Affiliates in the Past Year and as of the Date of
Publication of the Annual Report.........................................................................................................	354
4.	Other Necessary Supplementary Explanations ................................................................................	355
9. Matters in the Past Year and as of the Date of Publication of the Annual Report Which Have a
Substantial Impact on Owner's Equity as Stipulated in Item .....................................................	355

1. Letter to Shareholders Dear shareholders,

First of all, I would like to thank all shareholders for their continuing support and encouragement. Looking back on 2021, due to factors such as the strong demand of personal computers and network mobile phone for the worldwide stay-at-home economy, rapid worldwide development of 5G and the recovery of automotive market, the company's total consolidated revenue in 2021 was $13,177,417 thousand, a increase of $2,787,138 thousand or 26.82% from $10,390,279 thousand in 2020. The net profit for the period attributable to the parent company owners was $537,242 thousand, a increase of $345,563 thousand or 64.32% from $882,805 thousand in 2020. In 2021, the basic after-tax earnings per share were NT$3.55 which is increased 55.02% from NT$2.29 in 2020.

In the past few years, the company has actively continued to deploy in automotive electronics, industrial controls, servers and analog IC, and the overall synergy has gradually emerged. In addition to continuing to expand its market share and enhancing its competitive advantage with its brand marketing, the subsidiary company (TSC Auto ID Technology) has optimized after-sales Managed services, improved customer service quality, continued to provide comprehensive one-stopfull-stack services, and create opportunities for win-win growth. In the future, the Taiwan Semi Group will continue to enhance its competitiveness, continuously increase product value, strengthen integration benefits, and accelerate research and development to create the most significant synergy effect for the entire group.

All shareholders have given long-term support and encouragement to the company and took time to participate in their busy schedules. I sincerely express my gratitude. Looking forward to the future, the Taiwan Semiconductor Group will be committed to operating the core value of the company with continuous technological innovation, and high-level research and development. With a complete layout of capabilities, upstream and downstream, it will be able to stand out in the global market, continue to shine, and create better profits to share with you. I hope that all shareholders will continue to support and encourage the Taiwan Semi-Group.

I wish you all good health and all the best.

Chairman Wang Shiu Ting

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