Equity (Tables)

6 Months Ended

Jun. 30, 2021

Appropriations of Earnings and Dividends Per Share

The appropriations of 2019, 2020 and 2021 quarterly earnings have been approved by TSMC’s Board of Directors in its meeting, respectively. The appropriations and cash dividends per share were as follows:


	First Quarter of 2019			Second Quarter of 2019			Third Quarter of 2019		Fourth Quarter of 2019
	NT$ (In Millions)			NT$ (In Millions)			NT$ (In Millions)		NT$ (In Millions)
Resolution date of TSMC’s Board of Directors in its meeting		June 5, 2019			August 13, 2019			November 12, 2019		February 11, 2020
Special capital reserve	$	(4,724.0	)	$	(3,338.2	)	$	3,289.2	$	16,893.0

Cash dividends to shareholders	$	51,860.8		$	64,826.0		$	64,826.0	$	64,826.0

Cash dividends per share (NT$)	$	2.0		$	2.5		$	2.5	$	2.5


	First Quarter of 2020			Second Quarter of 2020		Third Quarter of 2020		Fourth Quarter of 2020
	NT$ (In Millions)			NT$ (In Millions)		NT$ (In Millions)		NT$ (In Millions)
Resolution date of TSMC’s Board of Directors in its meeting		May 12, 2020			August 11, 2020		November 10, 2020		February 9, 2021
Special capital reserve	$	(2,694.8	)	$	11,884.5	$	5,501.3	$	12,420.7

Cash dividends to shareholders	$	64,826.0		$	64,826.0	$	64,826.0	$	64,826.0

Cash dividends per share (NT$)	$	2.5		$	2.5	$	2.5	$	2.5


	First Quarter of 2021			Second Quarter of 2021
	NT$			NT$
	(In Millions)			(In Millions)
Resolution date of TSMC’s Board of Directors in its meeting		June 9, 2021			August 10, 2021
Special capital reserve	$	(6,287.0	)	$	10,201.2

Cash dividends to shareholders	$	71,308.5		$	71,308.5

Cash dividends per share (NT$)	$	2.75		$	2.75

Changes in Other Reserves

Changes in others were as follows:


	Six Months Ended June 30, 2020
	Foreign Currency Translation Reserve			Unrealized Gain (Loss) on Financial Assets at FVTOCI			Gain (Loss) on Hedging Instruments			Unearned Stock-Based Employee Compensation			Total
	NT$ (In Millions)			NT$ (In Millions)			NT$ (In Millions)			NT$ (In Millions)			NT$ (In Millions)
Balance, beginning of period	$	(26,871.4	)	$	(692.9	)	$	(3.8	)	$	(0.2	)	$	(27,568.3	)
Exchange differences arising on translation of foreign operations		(11,690.1	)		—			—			—			(11,690.1	)
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments		—			(22.4	)		—			—			(22.4	)
Debt instruments		—			3,625.5			—			—			3,625.5
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal		—			(926.9	)		—			—			(926.9	)
Loss allowance adjustments from debt instruments		—			(0.2	)		—			—			(0.2	)
Gain (loss) arising on changes in the fair value of hedging instruments		—			—			(42.8	)		—			(42.8	)
Transferred to initial carrying amount of hedged items		—			—			46.6			—			46.6
Share of other comprehensive income (loss) of associates		(176.3	)		(3.5	)		—			—			(179.8	)
Share of unearned stock-based employee compensation of associates		—			—			—			0.2			0.2
Income tax effect		—			0.4			—			—			0.4


Balance, end of period	$	(38,737.8	)	$	1,980.0		$	—		$	—		$	(36,757.8	)


	Six Months Ended June 30, 2021
	Foreign Currency Translation Reserve			Unrealized Gain (Loss) on Financial Assets at FVTOCI			Gain (Loss) on Hedging Instruments		Unearned Stock-Based Employee Compensation		Total
	NT$ (In Millions)			NT$ (In Millions)			NT$ (In Millions)		NT$ (In Millions)		NT$ (In Millions)
Balance, beginning of period	$	(57,001.6	)	$	2,321.8		$	—	$	—	$	(54,679.8	)
Exchange differences arising on translation of foreign operations		(3,095.3	)		—			—		—		(3,095.3	)
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments		—			817.4			—		—		817.4
Debt instruments		—			(1,622.5	)		—		—		(1,622.5	)
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal		—			278.8			—		—		278.8

	Six Months Ended June 30, 2021
	Foreign Currency Translation Reserve			Unrealized Gain (Loss) on Financial Assets at FVTOCI			Gain (Loss) on Hedging Instruments			Unearned Stock-Based Employee Compensation		Total
	NT$			NT$			NT$			NT$		NT$
	(In Millions)			(In Millions)			(In Millions)			(In Millions)		(In Millions)
Cumulative unrealized gain (loss) of debt instruments transferred to profit or loss due to disposal	$	—		$	(169.3	)	$	—		$	—	$	(169.3	)
Loss allowance adjustments from debt instruments		—			1.6			—			—		1.6
Gain (loss) arising on changes in the fair value of hedging instruments		—			—			(41.4	)		—		(41.4	)
Transferred to initial carrying amount of hedged items		—			—			41.4			—		41.4
Share of other comprehensive income (loss) of associates		(73.6	)		4.5			—			—		(69.1	)
Income tax effect		—			(55.8	)		—			—		(55.8	)


Balance, end of period	$	(60,170.5	)	$	1,576.5		$	—		$	—	$	(58,594.0	)

Capital Stock - Common Stock [member]

Statement [LineItems]

Summary of Capital Stock and Capital Surplus

Capital stock


	June 30, 2020		December 31, 2020		June 30, 2021
	NT$ (In Millions)		NT$ (In Millions)		NT$ (In Millions)
Authorized shares		28,050.0		28,050.0		28,050.0

Authorized capital	$	280,500.0	$	280,500.0	$	280,500.0

Issued and paid shares		25,930.3		25,930.3		25,930.3

Issued capital	$	259,303.8	$	259,303.8	$	259,303.8

holder of issued

common shares with par value of NT$10 per share is entitled to vote and to

receive dividends.

Capital Surplus [member]

Statement [LineItems]

Summary of Capital Stock and Capital Surplus

Capital surplus


	June 30, 2020		December 31, 2020		June 30, 2021
	NT$ (In Millions)		NT$ (In Millions)		NT$ (In Millions)
Additional paid-in capital	$	24,185.0	$	24,185.0	$	24,185.0
From merger		22,804.5		22,804.5		22,804.5
From convertible bonds		8,892.9		8,892.9		8,892.9
From difference between the consideration received and the carrying amount of the subsidiaries’ net assets during actual disposal		—		—		8,406.3
From share of changes in equities of subsidiaries		121.8		121.8		121.8
From share of changes in equities of associates		302.5		302.5		302.8
Donations		33.3		40.5		40.5

	$	56,340.0	$	56,347.2	$	64,753.8