Net Revenue

12 Months Ended

Dec. 31, 2019

24.	NET REVENUE

Disaggregation of revenue from contracts with customers


	Years Ended December 31
	2018		2019
	NT$		NT$
Product	(In Millions)		(In Millions)
Wafe r	$	911,296.4	$	927,317.3
Others		120,177.2		142,668.1


	$	1,031,473.6	$	1,069,985.4


	Years Ended December 31
	2018		2019
	NT$		NT$
Geography	(In Millions)		(In Millions)
Taiwan	$	78,260.8	$	84,255.2
United States		632,821.5		634,713.0
China		175,794.2		208,101.4
Europe, the Middle East and Africa		71,068.5		67,568.2
Japan		58,125.9		57,468.6
Others		15,402.7		17,879.0


	$	1,031,473.6	$	1,069,985.4

The Company categorized the net revenue mainly based on the countries where the customers are headquartered.


	Years Ended December 31
	2018		2019
	NT$		NT$
Platform	(In Millions)		(In Millions)
Smartphone	$	466,452.3	$	523,612.9
High Performance Computing		341,910.2		315,822.3
Internet of Things		65,091.3		86,342.7
Automotive		51,709.8		47,914.5
Digital Consumer Electronics		58,470.2		53,733.4
Others		47,839.8		42,559.6


	$	1,031,473.6	$	1,069,985.4


	Years Ended December 31
	2018		2019
	NT$		NT$
Resolution	(In Millions)		(In Millions)
7-nanometer	$	81,680.7	$	249,548.1
10-nanometer		96,989.5		23,266.4
16-nanometer		187,370.6		186,700.9
20-nanometer		23,618.4		9,535.8
28-nanometer		178,440.4		149,578.7
40/45-nanometer		101,801.0		93,366.3
65-nanometer		76,122.3		69,250.0
90-nanometer		36,652.1		25,624.2
0.11/0.13 micron		20,677.7		22,947.3
0.15/0.18 micron		81,182.6		77,564.5
0.25 micron and above		26,761.1		19,935.1


Wafer revenue	$	911,296.4	$	927,317.3

Starting the first quarter of 2019, the Company reported its net revenue breakdown by platform, instead of by application. The Company believes this change better represents the Company’s results.

Contract balances

January 1,

2018

December 31,

2018

December 31,

2019

NT$

(In Millions)

Contract liabilities (classified under accrued expenses and other current liabilities)

32,434.8

4,684.0

6,784.3

The changes in the contract liability balances primarily result from the timing difference between the satisfaction of performance obligation and the customer’s payment.

The Company recognized revenue from the beginning balance of contract liability, which amounted to NT$31,770.0 million and NT$3,876.6 million for the years ended December 31, 2018 and 2019, respectively.

Refund liabilities

Estimated sales returns and other allowances is made and adjusted based on historical experience and the consideration of varying contractual terms, which amounted to NT$55,406.0 million and NT$36,211.4 million for the years ended December 31, 2018 and 2019, respectively. As of December 31, 2018 and 2019, the aforementioned refund liabilities amounted to NT$22,672.6 million and NT$19,620.2 million (classified under accrued expenses and other current liabilities), respectively.