120 121

8. Subsidiary Information and Other Special Notes8.1 Subsidiaries

8.1.1 TSMC Subsidiaries Chart

As of 12/31/2014

Taiwan Semiconductor Manufacturing Company Limited

TSMC Solar Europe GmbH (Note 1)Shareholding: 100%

TSMC Solar Ltd.Shareholding: 0.47%

TSMC Solid State Lighting Ltd. (Note 2)Shareholding: 1.80%

TSMC Solar North America, Inc.Shareholding: 100%

TSMC Solar Europe B.V. (Note 1)Shareholding: 100%

WaferTech, LLCShareholding: 100%

TSMC Technology, Inc.Shareholding: 100%

InveStar Semiconductor Development Fund, Inc.Shareholding: 97.09%

InveStar Semiconductor Development Fund, Inc. (II) LDC.Shareholding: 97.09%

TSMC Design Technology Canada Inc.Shareholding: 100%

TSMC Development, Inc.Shareholding: 100%

Mutual-Pak Technology Co., Ltd.Shareholding: 58.33%

Growth Fund LimitedShareholding: 100%

VentureTech Alliance Holdings, LLCShareholding: 100%

TSMC Solid State Lighting Ltd. (Note 2)Shareholding: 92.32%

TSMC Solar Ltd.Shareholding: 98.58%

TSMC North AmericaShareholding: 100%

TSMC Europe B.V.Shareholding: 100%

TSMC Japan LimitedShareholding: 100%

TSMC Korea LimitedShareholding: 100%

TSMC Global Ltd.Shareholding: 100%

Emerging Alliance Fund, L.P.Shareholding: 99.5%

VentureTech Alliance Fund II, L.P.Shareholding: 98%

TSMC Partners, Ltd.Shareholding: 100%

TSMC China Company LimitedShareholding: 100%

VentureTech Alliance Fund III, L.P.Shareholding: 98%

TSMC Guang Neng Investment, Ltd.Shareholding: 100%

Note 1: To simplify overseas investment structure, in the second quarter of 2014, the Board of Directors of TSMC Solar approved to file for the liquidation of TSMC Solar Europe. After the liquidation, TSMC Solar Europe GmbH, the 100% owned subsidiary of TSMC Solar Europe, will be held directly by TSMC Solar. The liquidation procedure has been processed starting from the third quarter of 2014.

Note 2: (1) To simplify overseas investment structure, in the second quarter of 2014, the Board of Directors of TSMC SSL approved to file for the liquidation of TSMC Lighting NA. The liquidation procedure has been completed in the third quarter of 2014.

(2) On January 9, 2015, the Board of Directors of TSMC approved to sell all shares of TSMC SSL held by TSMC and TSMC’s subsidiary to Epistar Corporation. The transaction was completed on February 17, 2015.

8.1.2 Business Scope of TSMC and Its Subsidiaries

TSMC and its subsidiaries strive to provide the best foundry services in the industry. Subsidiaries in North America, Europe, Japan, China, and South Korea are dedicated to servicing TSMC customers worldwide. WaferTech in the United States and TSMC China provide additional 8-inch wafer capacity. Other subsidiaries support the Company’s core foundry business with related services such as design service and invest in start-up companies involved in design, manufacturing, and other related businesses in the semiconductor industry. Beginning in 2010, certain TSMC subsidiaries also engage in researching, developing, designing, manufacturing and selling of solid state lighting devices and related products and systems, and solar-related technologies and products. On December 31, 2014, we reclassified TSMC SSL as a disposal group held for sale. On February 17, 2015, TSMC SSL ceased to be TSMC’s subsidiary because TSMC’s and TSMC subsidiary’ shares in TSMC SSL were sold to Epistar Corporation.

Outstanding brush painting requires precise and meticulous strokes. TSMC’s sustainable development is built on careful financial operations, strong operational effectiveness, and prospering together with its affiliated companies.

122 123

8.1.3 TSMC SubsidiariesUnit: NT(USD, EUR, JPY, KRW, RMB, CAD)$ thousands As of 12/31/2014

Company (Note 1) Date of Incorporation Place of Registration Capital Stock Business Activities

TSMC North America Jan. 18, 1988 San Jose, California, U.S. US$ 11,000 Selling and marketing of integrated circuits and semiconductor devices

TSMC Europe B.V. Mar. 04, 1994 Amsterdam, The Netherlands EUR 100 Marketing and engineering supporting activities

TSMC Japan Limited Sep. 10, 1997 Yokohama, Japan JPY 300,000 Marketing activities

TSMC Korea Limited May 02, 2006 Seoul, Korea KRW 400,000 Customer service and technical supporting activities

TSMC China Company Limited Aug. 04, 2003 Shanghai, China RMB 4,502,080 Manufacturing and selling of integrated circuits at the order of and pursuant to product design specifications provided by customers

TSMC Technology, Inc. Feb. 20, 1996 Delaware, U.S. US$ 0.001 Engineering support activities

InveStar Semiconductor Development Fund, Inc. Sep. 10, 1996 Cayman Islands US$ 600 Investing in new start-up technology companies

InveStar Semiconductor Development Fund, Inc. (II) LDC.

Aug. 25, 2000 Cayman Islands US$ 9,578 Investing in new start-up technology companies

TSMC Development, Inc. Feb. 16, 1996 Delaware, U.S. US$ 0.001 Investment activities

WaferTech, LLC Jun. 03, 1996 Washington, U.S. US$ 0 Manufacturing, selling, testing and computer-aided designing of integrated circuits and other semiconductor devices

TSMC Partners, Ltd. Mar. 26, 1998 Tortola, British Virgin Islands US$ 988,268 Investing in companies involved in the design, manufacture, and other related business in the semiconductor industry

TSMC Design Technology Canada Inc. May 28, 2007 Ontario, Canada CAD 2,434 Engineering support activities

TSMC Global Ltd. Jul. 13, 2006 Tortola, British Virgin Islands US$ 3,284,000 Investment activities

Mutual-Pak Technology Co., Ltd. Mar. 22, 2006 Taipei, Taiwan NT$ 268,184 Manufacturing and selling of electronic parts and researching, developing and testing of RFID

Emerging Alliance Fund, L.P. Jan. 10, 2001 Cayman Islands US$ 24,255 Investing in new start-up technology companies

VentureTech Alliance Fund II, L.P. Feb. 27, 2004 Cayman Islands US$ 14,811 Investing in new start-up technology companies

VentureTech Alliance Fund III, L.P. Mar. 25, 2006 Cayman Islands US$ 113,674 Investing in new start-up technology companies

Growth Fund Limited May 30, 2007 Cayman Islands US$ 2,180 Investing in new start-up technology companies

VentureTech Alliance Holdings, LLC Apr. 25, 2007 Delaware, U.S. N/A Investing in new start-up technology companies

TSMC Solar Ltd. Aug. 16, 2011 Taichung, Taiwan NT$ 11,341,000 Researching, developing, designing, manufacturing and selling renewable energy and energy saving related technologies and products

TSMC Solar North America, Inc. Sep. 03, 2010 Delaware, U.S. US$ 1 Selling and marketing of solar related products

TSMC Solar Europe B.V. (Note 2) Sep. 29, 2010 Amsterdam, the Netherlands EUR 100 Investing in solar related business

TSMC Solar Europe GmbH (Note 2) Dec. 17, 2010 Hamburg, Germany EUR 100 Selling of solar related products and providing customer service

TSMC Solid State Lighting Ltd. (Note 3) Aug. 16, 2011 Hsinchu, Taiwan NT$ 6,008,000 Researching, developing, designing, manufacturing and selling solid state lighting devices and related applications products and systems

TSMC Guang Neng Investment, Ltd. Jan. 19, 2012 Taipei, Taiwan NT$ 200,000 Investment activities

Note 1: To simplify overseas investment structure, in the second quarter of 2014, the Board of Directors of TSMC SSL approved to file for the liquidation of TSMC Lighting NA. The liquidation procedure has been completed in the third quarter of 2014.

Note 2: To simplify overseas investment structure, in the second quarter of 2014, the Board of Directors of TSMC Solar approved to file for the liquidation of TSMC Solar Europe. After the liquidation, TSMC Solar Europe GmbH, the 100% owned subsidiary of TSMC Solar Europe, will be held directly by TSMC Solar. The liquidation procedure has been processed starting from the third quarter of 2014.

Note 3: On December 31, 2014, we reclassified TSMC SSL as a disposal group held for sale. On February 17, 2015, TSMC SSL ceased to be TSMC’s subsidiary because TSMC’s and TSMC subsidiary’ shares in TSMC SSL were sold to Epistar Corporation.

8.1.4 Shareholders in Common of TSMC and Its Subsidiaries with Deemed Control and Subordination: None.

8.1.5 Rosters of Directors, Supervisors, and Presidents of TSMC’s Subsidiaries Unit: NT$(USD), except shareholding As of 12/31/2014

Company (Note 1) Title Name Shareholding

Shares (Investment Amount) % (Investment Holding%)

TSMC North America Director Richard Thurston - - Director Rick Cassidy - - President Rick Cassidy - -

TSMC holds 11,000,000 shares 100%

TSMC Europe B.V. Director Wendell Huang - - Director Maria Marced - - President Maria Marced - -

TSMC holds 200 shares 100%

TSMC Japan Limited Director Chih-Chun Tsai - - Director Makoto Onodera - - Supervisor Lora Ho - - President Makoto Onodera - -

TSMC holds 6,000 shares 100%

TSMC Korea Limited Director Shing-Wha Lin - - Director Chih-Chun Tsai - - Director Wendell Huang - -

TSMC holds 80,000 shares 100%

TSMC China Company Limited Chairman F.C. Tseng - - Director M.C. Tzeng - - Director L.C. Tu - - Supervisor Lora Ho - - President L.C. Tu - -

(TSMC’s investment US$596,000,000) (100%)

TSMC Technology, Inc. Chairman Lora Ho - - Director Cliff Hou - - President Cliff Hou - -

TSMC Partners, Ltd. holds 10 shares 100%

InveStar Semiconductor Development Fund, Inc.

Director Wendell Huang - TSMC Partners, Ltd. holds 582,523 shares

- 97.09%

InveStar Semiconductor Development Fund, Inc. (II) LDC

Director Wendell Huang - TSMC Partners, Ltd. holds 9,298,625 shares

- 97.09%

TSMC Development, Inc. Chairman Lora Ho - - Director Sylvia Fang - - President Lora Ho - -

TSMC Partners, Ltd. holds 10 shares 100%

WaferTech, LLC Director M.C. Tzeng - - Director Steve Tso - - President Kuo-Chin Hsu - -

TSMC Development, Inc. holds 293,636,833 shares 100%

TSMC Partners, Ltd. Director Lora Ho - - Director Sylvia Fang - - President Lora Ho - -

TSMC holds 988,268,244 shares 100%

TSMC Design Technology Canada Inc. Director Cliff Hou - - Director Cormac Michael O’Connell - - Director Sylvia Fang - - President Cliff Hou - -

TSMC Partners, Ltd. holds 2,300,000 shares 100%

TSMC Global Ltd. Director Lora Ho - - Director Sylvia Fang - -

TSMC holds 3,284 shares 100%

(Continued)

124 125

Company (Note 1) Title Name Shareholding

Shares (Investment Amount) % (Investment Holding%)

Mutual-Pak Technology Co., Ltd. Chairman Hsu-Tung Chen 1,107,010 shares 4.13%Director Lewis Hwang 2,508,000 shares 9.35%Director Representative of VentureTech Alliance Fund III,

L.P.: Juine-Kai Tseng15,643,347 shares 58.33%

Supervisor Wei-Pong Lin 30,000 shares 0.11%President Lewis Hwang 2,508,000 shares 9.35%

Emerging Alliance Fund, L.P. None None (TSMC’s investment US$ 24,255,367) (99.50%)

VentureTech Alliance Fund II, L.P. None None (TSMC’s investment US$ 14,811,244) (98.00%)

VentureTech Alliance Fund III, L.P. None None (TSMC’s investment US$113,674,346) (98.00%)

Growth Fund Limited None None (VentureTech Alliance Fund III, L.P.’s investment US$2,180,000)

(100%)

VentureTech Alliance Holdings, LLC None None None (100%)

TSMC Solar Ltd. Chairman Steve Tso - -Director F.C. Tseng - - Director Lora Ho - - Supervisor Wendell Huang - - President (Note 2)

TSMC holds 1,118,000,000 shares 98.58%TSMC Guang Neng Investment, Ltd. holds 5,309,152 shares 0.47%

TSMC Solar North America, Inc. Director Lora Ho - - Director Sylvia Fang - - President Ying-Chen Chao - -

TSMC Solar Ltd. holds 1,000 shares 100%

TSMC Solar Europe B.V. (Note 3) Director Lora Ho - - Director Richard Thurston - -

TSMC Solar Ltd. holds 200 shares 100%

TSMC Solar Europe GmbH (Note 3) Director Lora Ho - -Director Ying-Chen Chao - -

TSMC Solar Europe B.V. holds 200 shares (Note 3) 100%

TSMC Solid State Lighting Ltd. (Note 4) Chairman Steve Tso - -Director F.C. Tseng - - Director Lora Ho - - Supervisor Wendell Huang - - President C.H. Chen - -

TSMC holds 554,674,437 shares 92.32%TSMC Guang Neng Investment, Ltd. Holds 10,806,037

shares1.80%

TSMC Guang Neng Investment, Ltd. Director Lora Ho - - Director Sylvia Fang - -

(TSMC’s investment NT$200,000,000) 100%

Note 1: To simplify overseas investment structure, in the second quarter of 2014, the Board of Directors of TSMC SSL approved to file for the liquidation of TSMC Lighting NA. The liquidation procedure has been completed in the third quarter of 2014.

Note 2: Mr. Ying-Chen Chao resigned as President on November 22, 2014. Mr. C.H. Chen was appointed to take the vacancy, effective on January 12, 2015.Note 3: To simplify overseas investment structure, in the second quarter of 2014, the Board of Directors of TSMC Solar approved to file for the liquidation of TSMC Solar Europe. After the liquidation,

TSMC Solar Europe GmbH, the 100% owned subsidiary of TSMC Solar Europe, will be held directly by TSMC Solar. The liquidation procedure has been processed starting from the third quarter of 2014.

Note 4: On December 31, 2014, we reclassified TSMC SSL as a disposal group held for sale. On February 17, 2015, TSMC SSL ceased to be TSMC’s subsidiary because TSMC’s and TSMC subsidiary’ shares in TSMC SSL were sold to Epistar Corporation.

8.1.6 Operational Highlights of TSMC Subsidiaries (Note) Unit: NT$ thousands, except EPS ($) As of 12/31/2014

Company Capital Stock Assets Liabilities Net Worth Net Revenue Income (Loss) from Operation Net Income

(Loss)Basic Earnings

(Loss) Per Share

TSMC North America 348,898 97,812,833 93,828,463 3,984,370 495,744,116 (14,266) (60,200) (5.47)

TSMC Europe B.V. 3,857 425,349 113,297 312,052 484,455 51,287 40,265 201,324.25

TSMC Japan Limited 79,560 167,062 46,946 120,116 229,000 10,005 3,655 609.12

TSMC Korea Limited 11,640 36,107 2,680 33,427 25,917 2,356 3,086 38.57

TSMC China Company Limited 23,016,884 35,818,491 3,849,884 31,968,607 19,736,436 6,100,111 6,587,991 NA

TSMC Technology, Inc. 0.03 675,662 199,540 476,122 1,272,852 60,612 61,349 6,134,854.03

InveStar Semiconductor Development Fund, Inc.

19,031 45,356 40,857 4,500 24 (13,875) (13,876) (17.63)

InveStar Semiconductor Development Fund, Inc. (II) LDC

303,782 805,145 84,662 720,483 71,936 43,694 43,693 4.56

TSMC Development, Inc. 0.03 19,072,181 - 19,072,181 1,731,643 1,730,439 1,686,286 168,628,571.57

WaferTech, LLC - 8,159,897 814,712 7,345,185 8,651,858 2,458,457 1,604,287 5.46

TSMC Partners, Ltd. 31,345,892 47,453,005 - 47,453,005 1,477,460 1,467,994 1,465,573 1.48

TSMC Design Technology Canada Inc. 66,663 177,730 22,373 155,357 217,999 19,818 15,868 6.90

TSMC Global Ltd. 104,161,912 196,337,823 64,006,990 132,330,833 1,614,016 419,559 338,151 102,969.22

Mutual-Pak Technology Co., Ltd. 268,184 92,726 66,793 25,932 116,494 (12,393) (13,673) (0.51)

Emerging Alliance Fund, L.P. 769,332 155,901 - 155,901 - (3,919) (2,194) NA

VentureTech Alliance Fund II, L.P. 469,783 475,968 3,047 472,922 2,135 (9,185) (9,169) NA

VentureTech Alliance Fund III, L.P. 3,605,523 804,410 - 804,410 155,795 (67,776) (67,776) NA

Growth Fund Limited 69,145 17,378 - 17,378 - (3,291) (3,291) NA

VentureTech Alliance Holdings, LLC - - - - - - - NA

TSMC Solar North America, Inc. 32 31,774 16,076 15,698 16,457 (23,591) (23,738) (23,738.31)

TSMC Solar Europe B.V. 3,857 1,235 249 987 - (637) (86,518) (432,587.78)

TSMC Solar Europe GmbH 3,857 180,435 181,975 (1,540) 380,171 (85,567) (85,880) (429,397.50)

TSMC Solar Ltd. 11,341,000 7,854,352 4,969,718 2,884,634 738,355 (1,176,403) (1,722,175) (1.52)

TSMC Solid State Lighting Ltd. 6,008,000 945,356 220,191 725,165 120,367 (2,452,475) (1,618,784) (2.69)

TSMC Guang Neng Investment, Ltd. 200,000 65,560 - 65,560 - (100) (37,069) NA

Note: Foreign exchange rates for balance sheet amounts are as follows:$1 USD = $31.718 NT, $1 EUR = $38.57 NT, $1 JPY = $0.2652 NT, $1 RMB = $5.11 NT, $1 KRW = $0.0291 NT, $1 CAD = $27.39 NTForeign exchange rates for income statement amounts are as follows:$1 USD = $30.288 NT, $1 EUR = $40.39 NT, $1 JPY = $0.2879 NT, $1 RMB = $4.92 NT, $1 KRW = $0.0288 NT, $1 CAD = $27.51 NT

8.2 Status of TSMC Common Shares and ADRs Acquired, Disposed of, and Held by Subsidiaries: None.

8.3 Special Notes

8.3.1 Private Placement Securities in 2014 and as of the Date of this Annual Report: None.

8.3.2 Regulatory Authorities’ Legal Penalties to the Company or Its Employees, and the Company’s Resulting Punishment on Its Employees for Violations of Internal Control System Provisions, Principal Deficiencies, and the State of Any Efforts to Make Improvements in 2014 and as of the Date of this Annual Report

In 2014, the Company complied with the Taiwan Securities Trading Act, Company Law and relevant labor and environmental laws and regulations. TSMC was fined for NT$12,000 for one isolated incident of an administrative error by the competent authority. TSMC has been implementing relevant remedial measures.

8.3.3 Any Events in 2014 and as of the Date of this Annual Report that Had Significant Impacts on Shareholders’ Right or Security Prices as Stated in Item 3 Paragraph 2 of Article 36 of Securities and Exchange Law of Taiwan: None.

8.3.4 Other Necessary Supplement: None.

2014-彩頁封面-E-OK彩頁-英台積電英文版_178p

/ColorImageDict > /JPEG2000ColorACSImageDict > /JPEG2000ColorImageDict > /AntiAliasGrayImages false /CropGrayImages true /GrayImageMinResolution 300 /GrayImageMinResolutionPolicy /OK /DownsampleGrayImages true /GrayImageDownsampleType /Bicubic /GrayImageResolution 300 /GrayImageDepth -1 /GrayImageMinDownsampleDepth 2 /GrayImageDownsampleThreshold 1.50000 /EncodeGrayImages true /GrayImageFilter /DCTEncode /AutoFilterGrayImages true /GrayImageAutoFilterStrategy /JPEG /GrayACSImageDict > /GrayImageDict > /JPEG2000GrayACSImageDict > /JPEG2000GrayImageDict > /AntiAliasMonoImages false /CropMonoImages true /MonoImageMinResolution 1200 /MonoImageMinResolutionPolicy /OK /DownsampleMonoImages true /MonoImageDownsampleType /Bicubic /MonoImageResolution 1200 /MonoImageDepth -1 /MonoImageDownsampleThreshold 1.50000 /EncodeMonoImages true /MonoImageFilter /CCITTFaxEncode /MonoImageDict > /AllowPSXObjects false /CheckCompliance [ /None ] /PDFX1aCheck false /PDFX3Check false /PDFXCompliantPDFOnly false /PDFXNoTrimBoxError true /PDFXTrimBoxToMediaBoxOffset [ 0.00000 0.00000 0.00000 0.00000 ] /PDFXSetBleedBoxToMediaBox true /PDFXBleedBoxToTrimBoxOffset [ 0.00000 0.00000 0.00000 0.00000 ] /PDFXOutputIntentProfile () /PDFXOutputConditionIdentifier () /PDFXOutputCondition () /PDFXRegistryName () /PDFXTrapped /False

/CreateJDFFile false /Description > /Namespace [ (Adobe) (Common) (1.0) ] /OtherNamespaces [ > /FormElements false /GenerateStructure false /IncludeBookmarks false /IncludeHyperlinks false /IncludeInteractive false /IncludeLayers false /IncludeProfiles false /MultimediaHandling /UseObjectSettings /Namespace [ (Adobe) (CreativeSuite) (2.0) ] /PDFXOutputIntentProfileSelector /DocumentCMYK /PreserveEditing true /UntaggedCMYKHandling /LeaveUntagged /UntaggedRGBHandling /UseDocumentProfile /UseDocumentBleed false >> ]>> setdistillerparams> setpagedevice