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TSMC(TSM) - 2024 Q4 - Annual Report
TSMTSMC(TSM)2025-02-27 11:02

Financial Position and Performance - The parent company only financial statements present a fair view of the financial position as of December 31, 2024, and 2023, in accordance with relevant regulations [3]. - Total net revenue for 2024 reached 2,880,383,350,a33.72,880,383,350, a 33.7% increase from 2,153,285,095 in 2023 [26]. - Gross profit margin improved to 55% in 2024, up from 53% in 2023, with gross profit amounting to 1,574,242,434[26].−Netincomefor2024was1,574,242,434 [26]. - Net income for 2024 was 1,173,267,703, a 39.9% increase from 838,497,664in2023,resultinginanetincomemarginof41838,497,664 in 2023, resulting in a net income margin of 41% [26]. - Total current assets rose to 1,609,565,096, accounting for 27% of total assets, compared to 24% in 2023 [25]. - Total noncurrent assets increased to 4,427,684,204,representing734,427,684,204, representing 73% of total assets, down from 76% in 2023 [25]. - Total liabilities amounted to 1,748,704,133, maintaining a consistent 29% of total assets [25]. - Total equity attributable to shareholders of the parent reached 4,288,545,167,representing714,288,545,167, representing 71% of total assets, unchanged from 2023 [25]. - Basic and diluted earnings per share for 2024 were both 45.25, compared to 32.34in2023[28].−Othercomprehensiveincomefor2024was32.34 in 2023 [28]. - Other comprehensive income for 2024 was 72,568,913, compared to a loss of 7,988,122in2023[28].−AsofDecember31,2023,thetotalcomprehensiveincomeforTaiwanSemiconductorManufacturingCompanyLimitedwas7,988,122 in 2023 [28]. - As of December 31, 2023, the total comprehensive income for Taiwan Semiconductor Manufacturing Company Limited was 838,012,766, reflecting a significant increase from the previous year [30]. Cash Flow and Investments - Cash generated from operations increased to NT2,016,898,156in2024,up47.92,016,898,156 in 2024, up 47.9% from NT1,364,486,858 in 2023 [33]. - Net cash generated by operating activities rose to NT1,835,575,369,comparedtoNT1,835,575,369, compared to NT1,207,082,903 in the previous year, reflecting a 52% increase [34]. - Net cash used in investing activities was NT618,548,957in2024,slightlyhigherthanNT618,548,957 in 2024, slightly higher than NT588,128,653 in 2023 [34]. - Net cash used in financing activities increased to NT900,668,625in2024fromNT900,668,625 in 2024 from NT529,126,435 in 2023, indicating a significant rise in financing outflows [34]. - Cash dividends paid in 2024 amounted to NT363,055,226,comparedtoNT363,055,226, compared to NT291,721,852 in 2023, marking a 24.5% increase [34]. - The ending cash and cash equivalents for 2024 were NT1,035,061,499,upfromNT1,035,061,499, up from NT718,703,712 at the end of 2023, representing a 44% increase [34]. - The company reported financial assets at amortized cost of 14,208,158in2024,adecreasefrom14,208,158 in 2024, a decrease from 18,371,705 in 2023, reflecting a decline of approximately 23% [149]. - The company increased its investment in TSMC Global by NT261,677,200thousandin2024[171].−ThecompanyincreaseditsinvestmentinTSMCArizonabyNT261,677,200 thousand in 2024 [171]. - The company increased its investment in TSMC Arizona by NT236,121,500 thousand in 2024, compared to NT292,649,510thousandin2023[171].−ThecompanyincreaseditsinvestmentinJASMbyNT292,649,510 thousand in 2023 [171]. - The company increased its investment in JASM by NT15,754,106 thousand in 2024, raising its ownership from 71% to 73% [172]. - The company's shareholding in ESMC decreased from 100% to 70% after selling 10% of its shares to Robert Bosch GmbH, Infineon Technologies AG, and NXP Semiconductors N.V. [174]. Audit and Compliance - Key audit matter identified includes the commencement of depreciation related to property, plant, and equipment classified as equipment under installation and construction in progress [6]. - Management is responsible for assessing the company's ability to continue as a going concern and must disclose relevant matters [11]. - The audit procedures included evaluating the reasonableness of management's judgments regarding the commencement of depreciation [14]. - The auditors communicated significant audit findings and deficiencies in internal control to those charged with governance [15]. - The overall presentation and content of the financial statements were evaluated to ensure fair representation of underlying transactions [18]. - The independent auditors' report was issued on February 12, 2025, by Deloitte & Touche [20]. - The financial statements are prepared in accordance with accounting principles generally accepted in the Republic of China [21]. - The engagement partners for the audit were Shih Tsung Wu and Shang Chih Lin [19]. Assets and Liabilities - The total assets of the company reached 3,917,252,023byDecember31,2024,showingarobustgrowthtrajectory[31].−Thecompanyretired1,402shares,impactingthetreasurystockby3,917,252,023 by December 31, 2024, showing a robust growth trajectory [31]. - The company retired 1,402 shares, impacting the treasury stock by 14,018 [31]. - The balance of notes and accounts receivable at amortized cost increased to 34,036,332in2024from34,036,332 in 2024 from 28,676,101 in 2023, with a loss allowance of 451,913[160].−Totalinventoriesincreasedto451,913 [160]. - Total inventories increased to 270,716,472 in 2024 from 238,259,195in2023,withnetinventorylossesrecordedas238,259,195 in 2023, with net inventory losses recorded as (79,431) in 2024 compared to 3,526,480in2023[165][166].−Thebalanceofdomesticunsecuredbondspayableincreasedfrom3,526,480 in 2023 [165][166]. - The balance of domestic unsecured bonds payable increased from 439,869,855 in 2023 to 453,839,281in2024,representingagrowthofapproximately3.2453,839,281 in 2024, representing a growth of approximately 3.2% [192]. - The current portion of bonds payable rose significantly from 6,997,710 in 2023 to 24,397,381in2024,indicatingasubstantialincreaseofabout24924,397,381 in 2024, indicating a substantial increase of about 249% [192]. Employee Benefits and Expenses - The company recognized pension expenses of NT4,537,289 thousand for the year ended December 31, 2024 [200]. - The company recognized pension expenses of NT4,154,345thousandfortheyearendedDecember31,2023[200].−Thecompany’sdefinedbenefitcostsaredeterminedusingtheProjectedUnitCreditMethod,impactingemployeebenefitsexpenseintheperiodtheyoccur[116].FinancialInstrumentsandDerivatives−Financialassetsareclassifiedintothreecategories:financialassetsatFVTPL,investmentsinequityinstrumentsatFVTOCI,andfinancialassetsatamortizedcost[57].−Financialassetsmeasuredatamortizedcostarerecognizedatcarryingamountdeterminedbytheeffectiveinterestmethodlessanyimpairmentloss[59].−Alossallowanceforexpectedcreditlossisrecognizedforfinancialassetsatamortizedcost,withaccountsreceivablemeasuredatlifetimeexpectedcreditlosses[60].−TheCompanyderecognizesafinancialassetonlywhenthecontractualrightstocashflowsexpireorwhenittransferstheassetandsubstantiallyallrisksandrewardsofownership[61].−FinancialliabilitiesaremeasuredatamortizedcostoratFVTPL,withgainsorlossesrecognizedinprofitorlossforthoseatfairvalue[66].−Derivativefinancialinstrumentsareinitiallyrecognizedatfairvalueandsubsequentlyremeasured,withgainsorlossesrecognizedinprofitorlossunlessdesignatedashedginginstruments[71].IntangibleAssetsandGoodwill−Goodwillarisingfrombusinessacquisitionsiscarriedatcostlessaccumulatedimpairmentlosses,testedannuallyforimpairment[102].−Otherintangibleassetsarecarriedatcostlessaccumulatedamortization,withamortizationrecognizedovertheirestimatedusefullives[104].−TheCompanyrecognizesimpairmentlossesforgoodwilldirectlyinprofitorloss,whicharenotreversibleinsubsequentperiods[105].−Thetotalcarryingamountofintangibleassetsincreasedfrom4,154,345 thousand for the year ended December 31, 2023 [200]. - The company’s defined benefit costs are determined using the Projected Unit Credit Method, impacting employee benefits expense in the period they occur [116]. Financial Instruments and Derivatives - Financial assets are classified into three categories: financial assets at FVTPL, investments in equity instruments at FVTOCI, and financial assets at amortized cost [57]. - Financial assets measured at amortized cost are recognized at carrying amount determined by the effective interest method less any impairment loss [59]. - A loss allowance for expected credit loss is recognized for financial assets at amortized cost, with accounts receivable measured at lifetime expected credit losses [60]. - The Company derecognizes a financial asset only when the contractual rights to cash flows expire or when it transfers the asset and substantially all risks and rewards of ownership [61]. - Financial liabilities are measured at amortized cost or at FVTPL, with gains or losses recognized in profit or loss for those at fair value [66]. - Derivative financial instruments are initially recognized at fair value and subsequently remeasured, with gains or losses recognized in profit or loss unless designated as hedging instruments [71]. Intangible Assets and Goodwill - Goodwill arising from business acquisitions is carried at cost less accumulated impairment losses, tested annually for impairment [102]. - Other intangible assets are carried at cost less accumulated amortization, with amortization recognized over their estimated useful lives [104]. - The Company recognizes impairment losses for goodwill directly in profit or loss, which are not reversible in subsequent periods [105]. - The total carrying amount of intangible assets increased from 87,900,537 in 2023 to 94,615,495in2024,reflectingagrowthofapproximately7.894,615,495 in 2024, reflecting a growth of approximately 7.8% [190]. - The accumulated amortization and impairment for intangible assets rose from 70,216,473 in 2023 to 74,163,413in2024,indicatinganincreaseofabout5.674,163,413 in 2024, indicating an increase of about 5.6% [190]. - The carrying amount of goodwill remained constant at 1,567,756 from 2023 to 2024, indicating no change in this asset category [190]. Green Bonds and Financing - The company issued a total of 12,200,000ingreenbondswithacouponrateof1.5412,200,000 in green bonds with a coupon rate of 1.54% for the tranche A from March 2023 to March 2028 [198]. - The total issuance amount for tranche B of the green bonds in March 2023 is 2,300,000 with a coupon rate of 1.60% [198]. - The company plans to issue 13,100,000ingreenbondswithacouponrateof1.6013,100,000 in green bonds with a coupon rate of 1.60% for tranche A from May 2023 to May 2028 [198]. - A total of 11,400,000 in green bonds will be issued for tranche A from June 2023 to June 2028 with a coupon rate of 1.60% [198]. - The company has a total issuance of 7,300,000ingreenbondsfortrancheAfromAugust2023toAugust2028withacouponrateof1.607,300,000 in green bonds for tranche A from August 2023 to August 2028 with a coupon rate of 1.60% [198]. - The company plans to issue 4,300,000 in bonds with a coupon rate of 1.62% for tranche A from October 2023 to October 2028 [198].