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Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2021
Text Block [Abstract]  
Statement of Compliance
Statement of Compliance
The accompanying condensed consolidated financial statements have been prepared in accordance with IAS 34, “Interim Financial Reporting.” The condensed consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements prepared under the IFRSs.
Basis of Consolidation
Basis of Consolidation
The basis
of preparation and the basis
for the condensed consolidated financial statements
The basis of preparation and the basis for the condensed consolidated financial statements applied in these condensed consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2020.
The subsidiaries in the
 
condensed consolidated financial statements
The detail information of the subsidiaries at the end of reporting period is as follows:
 
           
Establishment
  
Percentage of
Ownership
    
Name of Investor
  
Name of Investee
  
Main Businesses and Products
  
and Operating
Location
  
December 31,
2020
  
June 30,
2021
  
Note
TSMC
  
TSMC North America
  
Sales and marketing of integrated circuits and other semiconductor devices
  
San Jose, California, U.S.A.
 
 
   100%   100%   —
   
TSMC Europe B.V. (TSMC Europe)
  
Customer service and supporting activities
  
Amsterdam, the Netherlands
   100%   100%   a)
   
TSMC Japan Limited (TSMC Japan)
  
Customer service and supporting activities
  
Yokohama, Japan
   100%   100%   a)
   
TSMC Design Technology Japan, Inc. (TSMC JDC)
  
Engineering support activities
  
Yokohama, Japan
   100%   100%   a)
   
TSMC Japan 3DIC R&D Center, Inc. (TSMC 3DIC)
  
Engineering support activities
  
Yokohama, Japan
   —   100%   a), b)
   
TSMC Korea Limited (TSMC Korea)
  
Customer service and supporting activities
  
Seoul, Korea
   100%   100%   a)
   
TSMC Partners, Ltd. (TSMC Partners)
  
Investing in companies involved in the semiconductor design and manufacturing, and other investment activities
  
Tortola, British Virgin Islands
   100%   100%   a)
   
TSMC Global, Ltd. (TSMC Global)
  
Investment activities
  
Tortola, British Virgin Islands
   100%   100%   —
   
TSMC China Company Limited (TSMC China)
  
Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices
  
Shanghai, China
   100%   100%   —
   
TSMC Nanjing Company Limited (TSMC Nanjing)
  
Manufacturing, sales, testing and computer-aided design of integrated circuits and other semiconductor devices
  
Nanjing, China
   100%   100%   —
   
VisEra Technologies Company Ltd. (VisEra Tech)
  
Research, design, development, manufacturing, sales, packaging and test of color filter
  
Hsin-Chu, Taiwan
   87%   73%   c)
   
TSMC Arizona Corporation (TSMC Arizona)
  
Manufacturing, sales and testing of integrated circuits and other semiconductor devices
  
Phoenix, Arizona, U.S.A.
   100%   100%   a), d)
   
VentureTech
 
Alliance
 
Fund II,
 
L.P
.
 
(VTAF
II)
  
Investing in technology start-up companies
  
Cayman Islands
   98%   98%   a)
   
VentureTech Alliance Fund III, L.P. (VTAF III)
  
Investing in technology start-up companies
  
Cayman Islands
   98%   98%   a)
   
Emerging Fund L.P. (Emerging Fund)
  
Investing in technology start-up companies
  
Cayman Islands
   —   99.9%   a), e)
TSMC Partners
  
TSMC Development, Inc. (TSMC Development)
  
Investing in companies involved in semiconductor manufacturing
  
Delaware, U.S.A.
   100%   100%   —
   
TSMC Technology, Inc. (TSMC Technology)
  
Engineering support activities
  
Delaware, U.S.A.
   100%   100%   a)
   
TSMC Design Technology Canada Inc. (TSMC Canada)
  
Engineering support activities
  
Ontario, Canada
   100%   100%   a)
TSMC Development
  
WaferTech, LLC (WaferTech)
  
Manufacturing, sales and testing of integrated circuits and other semiconductor devices
  
Washington, U.S.A.
 
   100%   100%   —
VTAF III
  
Growth Fund Limited (Growth Fund)
  
Investing in technology start-up companies
  
Cayman Islands
   100%   100%   a)
 
 
Note a:
This is an immaterial subsidiary for which the condensed consolidated financial statements are neither reviewed nor audited by the Company’s independent auditors.
 
  Note b:
TSMC
3DIC
is established in
March
2021
.
 
  Note c:
To facilitate VisEra’s IPO in Taiwan, 39.5 million common shares of VisEra at a price of NT$240 were sold by TSMC and an increase of NT$8,406.3 million in capital surplus was recognized.
TSMC’s
shareholding in
VisEra
decreased from
87
% to
73
%. This disposal was accounted for as an equity transaction since the transaction did not change TSMC’s control over
VisEra
.
 
  Note d:
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.
 
  Note e:
Emerging fund is established in January
2021
.
Retirement Benefits
Retirement Benefits
Pension cost for an interim period is calculated on a
year-to-date
basis by using the actuarially determined pension cost rate at the end of the prior financial year.
Taxation
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax. The interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the
pre-tax
income of the interim period.