HSIN-CHU, Taiwan, April 30 /PRNewswire-Asia-FirstCall/ -- TSMC
today announced consolidated revenue of NT$39.5 billion, net income
of NT$1.56 billion, and diluted earnings per share of NT$0.06
(US$0.01 per ADS unit) for the first quarter ended March 31, 2009.
Year-over-year, first quarter revenue decreased 54.8% while net
income and diluted EPS decreased 94.5% and 94.4%, respectively.
Compared to fourth quarter of 2008, first quarter results represent
a 38.8% decrease in revenue, and a decrease of 87.5% in net income
and in diluted EPS. All figures were prepared in accordance with
R.O.C. GAAP on a consolidated basis. As a result of deepening
economic recession worldwide and customers' inventory adjustment,
first quarter saw a sharp decline in the demand for semiconductors
across all applications. Gross margin for the quarter was 18.9%,
operating margin was 3.1%, and net margin was 3.9%. Advanced
process technologies (0.13-micron and below) accounted for 65% of
wafer revenues with 90-nanometer process technology accounting for
25%, 65- nanometer 23%, and 45/40 nanometer reaching 1% of total
wafer sales. "Although global economic conditions continue to
decline, a few signs of economic stabilization began to emerge.
Consumption of electronics in the last two quarters exceeded
production and surpassed semiconductor companies' low expectations.
Meanwhile, companies began to launch new products, while China
started implementing various stimulus programs. The dynamic has
resulted in a substantial increase in order levels. After sharp
declines in two consecutive quarters, TSMC is seeing a strong
rebound in its second quarter business and believes overall
business in the second half of 2009 will be considerably better
than that of the first half," said Lora Ho, VP and Chief Financial
Officer of TSMC. "Based on our current business outlook, management
expects overall performance for second quarter 2009 to be as
follows": -- Revenue is expected to be between NT$71 billion and
NT$74 billion; -- Gross profit margin is expected to be between
43.5% and 45.5%; -- Operating profit margin is expected to be
between 30.5% and 32.5%. The management further expects that 2009
capital expenditure will be around US$1.5 billion. Conference Call
& Webcast Notice: TSMC's quarterly review conference call will
be held at 8 a.m. Eastern Time (8 p.m. Taiwan Time) on Thursday,
April 30, 2009. The conference call will also be webcast live on
the Internet. Investors wishing to access the live webcast should
visit TSMC's web site at http://www.tsmc.com/ at least 15 minutes
prior to the broadcast. Instructions will be provided on the web
site to facilitate the download and installation of necessary audio
applications. Investors without Internet access may listen to the
conference call, in listen-only mode, by dialing 1-617-213-8837 in
the U.S., 852-3002-1672 in Hong Kong, and 44-207-365-8426 in the
U.K. (Password: TSMC). An archived version of the webcast will be
available on TSMC's web site for six months following the Company's
quarterly review conference call and webcast. Profile TSMC is the
world's largest dedicated semiconductor foundry, providing the
industry's leading process technology and the foundry's largest
portfolio of process-proven libraries, IPs, design tools and
reference flows. The Company's total managed capacity in 2008
exceeded nine million (8-inch equivalent) wafers, including
capacity from two advanced 12-inch GIGAFABs(TM), four eight- inch
fabs, one six-inch fab, as well as TSMC's wholly owned
subsidiaries, WaferTech and TSMC China, and its joint venture fab,
SSMC. TSMC is the first foundry to provide 40nm production
capabilities. Its corporate headquarters are in Hsinchu, Taiwan.
For more information about TSMC please visit http://www.tsmc.com/ .
-- Management Report and Tables Follow -- TSMC 1Q09 Quarterly
Management Report April 30, 2009 Topics in This Report -- Revenue
Analysis -- Profit & Expense Analysis -- Financial Condition
Review -- Cash Flow -- CapEx & Capacity -- Recap of Recent
Important Events & Announcements Operating Results Review:
Summary: (Amounts are on consolidated basis and are in NT billions
except otherwise noted) 1Q09 4Q08 1Q08 QoQ YoY EPS (NT$ per common
share) 0.06 0.48 1.08 (87.5%) (94.4%) (US$ per ADR unit) 0.01 0.07
0.17 -- -- Consolidated Net Sales 39.50 64.56 87.48 (38.8%) (54.8%)
Gross Profit 7.48 20.19 38.24 (63.0%) (80.4%) Gross Margin 18.9%
31.3% 43.7% -- -- Operating Expense (6.27) (8.17) (9.12) (23.3%)
(31.2%) Operating Income 1.21 12.02 29.12 (89.9%) (95.8%) Operating
Margin 3.1% 18.6% 33.3% -- -- Non-Operating Items (0.46) 1.07 2.45
-- -- Net Income 1.56 12.45 28.14 (87.5%) (94.5%) Net Profit Margin
3.9% 19.3% 32.2% -- -- Wafer Shipment (kpcs 8 inch-equiv.) 892
1,532 2,196 (41.8%) (59.4%) Note: Total outstanding shares were
25,626mn units on 3/31/09 Financial Highlights: First Quarter 2009
-- Consolidated net sales were NT$39.50 billion, representing a
38.8% sequential decline from 4Q08 and a 54.8% decline compared to
1Q08; -- Gross margin was 18.9%, 12.4 percentage points lower than
4Q08 and 24.8 percentage points lower than 1Q08. -- Operating
margin was 3.1%, 15.5 percentage points lower than 4Q08 and 30.2
percentage points lower than 1Q08. Operating expenses were NT$6.27
billion, NT$1.90 billion lower than the previous quarter. -- The
combined result from non-operating income and long-term investment
losses was a loss of NT$0.46 billion, compared to a gain of NT$1.07
billion in 4Q08 and a gain of NT$2.45 billion in 1Q08; --
Consolidated net income attributable to shareholders of the parent
company was NT$1.56 billion, with net profit margin of 3.9% and
diluted EPS of NT$0.06. I. Revenue Analysis I. Wafer Sales Analysis
By Application 1Q09 4Q08 1Q08 Computer 26% 32% 34% Communication
46% 43% 42% Consumer 21% 19% 17% Industrial/Others 7% 6% 8% By
Technology 1Q09 4Q08 1Q08 45/40nm 1% 0% 0% 65nm 23% 27% 15% 90nm
25% 21% 28% 0.11/0.13um 16% 17% 20% 0.15/0.18um 21% 22% 23%
0.25/0.35um 11% 10% 10% 0.50um+ 3% 3% 4% By Customer Type 1Q09 4Q08
1Q08 Fabless/System 77% 72% 71% IDM 23% 28% 29% By Geography 1Q09
4Q08 1Q08 North America 68% 72% 76% Asia Pacific 14% 11% 11% China
3% 2% 1% Europe 12% 11% 9% Japan 3% 4% 3% Revenue Analysis:
Application-First quarter revenue was NT$39.50 billion, better than
the revised guidance, primarily due to continued rush orders from
customers especially from the mainland Chinese market. In 1Q09,
demand continued to be weaker across all applications compared to
4Q08. On a sequential basis, revenues from computer, communication,
and consumer applications decreased 53%, 36%, and 32%,
respectively. Technology-Revenue from 45/40nm reached 1% of total
wafer sales in 1Q09. Meanwhile, revenue from 65nm and 90nm were 23%
and 25% of total wafer sales, respectively. Overall, revenues from
advanced technologies (0.13-micron and below) accounted for 65% of
total wafer sales. Customer-Revenues from IDM customers accounted
for 23% of total wafer sales in 1Q09, lower than 28% in 4Q08,
primarily due to increasing in-sourcing of those customers in the
weak demand environment. Geography-In 1Q09, revenues from customers
based in North America accounted for 68% of total wafer sales,
lower than 72% in 4Q08. Meanwhile, sales from customers in Asia
Pacific, China, Europe, and Japan accounted for 14%, 3%, 12% and 3%
of wafer sales, respectively. II. Profit & Expense Analysis II
- 1. Gross Profit Analysis (In NT billions) 1Q09 4Q08 1Q08 COGS
32.02 44.37 49.24 Depreciation 18.97 19.29 18.12 Other MFG Cost
13.05 25.08 31.12 Gross Profit 7.48 20.19 38.24 Gross Margin 18.9%
31.3% 43.7% Gross Profit Analysis: Gross margin in 1Q09 was 18.9%,
down 12.4 percentage points from 4Q08, mainly driven by a sharp
decline of production activities, partially balanced by cost
improvement, a more favorable exchange rate, and less employee
profit sharing expenses. II - 2. Operating Expenses (In NT
billions) 1Q09 4Q08 1Q08 Total Operating Exp. 6.27 8.17 9.12
SG&A 2.54 3.34 3.85 Research & Development 3.73 4.83 5.27
Total Operating Exp. as a % of Sales 15.9% 12.7% 10.4% Operating
Expenses: Total operating expenses for 1Q09 decreased to NT$6.27
billion, representing 15.9% of net sales, higher than 12.7% of net
sales in 4Q08. Research and development expenditures decreased by
NT$1.10 billion sequentially, mainly due to lower level of employee
profit sharing and less development expenses related to 40nm
technologies. SG&A expenses decreased by NT$0.80 billion from
4Q08 level. The decrease was mainly due to lower level of employee
profit sharing and more stringent expense control. II - 3.
Non-Operating Items (In NT billions) 1Q09 4Q08 1Q08 Non-Operating
Inc./(Exp.) 0.35 1.41 1.87 Net Interest Income/(Exp.) 0.88 1.18
1.19 Other Non-Operating (0.53) 0.23 0.68 L-T Investments (0.81)
(0.34) 0.58 SSMC (0.32) (0.07) 0.38 Others (0.49) (0.27) 0.20 Total
Non-Operating Items (0.46) 1.07 2.45 Non-Operating Items: For 1Q09,
combined result from non-operating income and long-term investment
losses was a net loss of NT$0.46 billion. Non-operating income was
NT$0.35 billion, lower than NT$1.41 billion in 4Q08, primarily due
to less interest income, disposal and impairment losses of
financial assets, and the absence of litigation compensation. Net
investment losses increased by NT$0.47 billion to NT$0.81 billion,
mainly due to weaker business in VIS and SSMC. III. Financial
Condition Review III - 1. Liquidity Analysis (Selected Balance
Sheet Items) (In NT billions) 1Q09 4Q08 1Q08 Cash & Marketable
Securities 229.79 211.45 210.31 Accounts Receivable - Trade 13.82
18.50 37.95 Inventory 14.78 14.88 21.89 Total Current Assets 268.56
252.62 281.46 Accounts Payable 10.97 14.04 22.59 Current Portion of
Bonds Payable 0.00 8.00 8.00 Accrued Bonus to Employees, Directors
and Supervisors 15.64 15.37 4.37 Accrued Liabilities and Others
18.76 19.40 27.08 Total Current Liabilities 45.37 56.81 62.04
Current Ratio (x) 5.9 4.4 4.5 Net Working Capital 223.19 195.81
219.42 Liquidity Analysis: At the end of 1Q09, total current assets
increased by NT$ 15.94 billion to NT$268.56 billion, mainly
contributed by the free cash flow of NT$21.17 billion (please refer
to page 5) generated during this quarter. Total current liabilities
decreased by NT$11.44 billion in 1Q09, primarily resulting from the
repayment of corporate bond and a decline in payables to
contractors and equipment suppliers. Net working capital was
NT$223.19 billion and current ratio increased to 5.9x. III - 2.
Receivable/Inventory Days (In Number of Days) 1Q09 4Q08 1Q08 Days
of Receivable 38 46 43 Days of Inventory 44 40 46 Receivable and
Inventory Days: Sequentially, days of receivable decreased by eight
days to 38 days in 1Q09, mainly due to a lower level of business
activities. Days of inventory increased by four days to 44 days,
reflecting an improving business outlook for 2Q09. III - 3. Debt
Service (In NT billions) 1Q09 4Q08 1Q08 Cash & Marketable
Securities 229.79 211.45 210.31 Interest-Bearing Debt 16.00 23.44
22.88 Net Cash Reserves 213.79 188.01 187.43 Debt Service: Net cash
reserves -- defined as the excess of cash and short-term marketable
securities over interest-bearing debt -- increased by NT$25.78
billion to NT$213.79 billion at the end of 1Q09, primarily due to
free cash flow of NT$21.17 billion generated during this quarter.
IV. Cash Flow IV - 1. Cash Flow Analysis (In NT billions) 1Q09 4Q08
1Q08 Net Income 1.56 12.45 28.14 Depreciation & Amortization
20.48 20.96 19.83 Other Operating Sources/(Uses) 4.75 29.83 9.33
Total Operating Sources/(Uses) 26.79 63.24 57.30 Capital
Expenditure (5.62) (11.26) (15.31) Marketable Financial Instruments
13.80 30.31 12.91 Other Investing Sources/(Uses) (0.04) (1.04)
(0.73) Net Investing Sources/(Uses) 8.14 18.01 (3.13) Repayment of
Bonds Payable (8.00) 0.00 0.00 Purchase of Treasury Stock 0.00 0.00
(3.05) Other Financing Sources/(Uses) 0.12 (0.30) (0.24) Net
Financing Sources/(Uses) (7.88) (0.30) (3.29) Net Cash Position
Changes 27.05 80.95 50.88 Exchange Rate Changes & Others 1.60
1.21 (1.59) Ending Cash Balance 223.26 194.61 144.28 Summary of
Cash Flow: Cash generated from operating activities totaled
NT$26.79 billion during 1Q09, down from NT$63.24 billion in 4Q08,
mainly due to lower level of business activities. Net cash
generated from investing activities was NT$8.14 billion in 1Q09,
reflecting capital expenditure of NT$5.62 billion and a net
decrease of NT$13.80 billion in marketable financial instruments.
As a result, TSMC ended 1Q09 with a cash balance of NT$223.26
billion. IV - 2. Operating and Free Cash Flows: Cash flows
generated from operating activities were NT$26.79 billion during
the quarter. Free cash flow, defined as the excess of operating
cash flows over capital expenditures, totaled NT$21.17 billion in
1Q09, compared to NT$51.98 billion in 4Q08. Please refer to the
link for the index charts:
http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf V.
CapEx & Capacity V - 1. Capital Expenditures (In US millions)
1Q09 4Q08 TSMC 161 326 XinTec and GUC 2 2 TSMC Shanghai &
WaferTech 3 12 Other TSMC Subsidiaries 0 2 Total TSMC 166 342
Capital Expenditures: Capital expenditures for TSMC on a
consolidated basis totaled US$166 million in 1Q09. For year 2009,
total capital expenditures for TSMC is expected to be around US$1.5
billion, compared with US$1.9 billion spent in 2008. V-2 . Capacity
4Q08 1Q09 2Q09 3Q09 4Q09 2009 Fab / (Wafer size) (A) (A) (F) (F)
(F) (F) Fab-2 (6") Note 1 272 274 280 283 283 1,121 Fab-3 (8") 274
286 289 292 283 1,150 Fab-5 (8") 161 162 149 144 144 599 Fab-6 (8")
282 295 284 287 287 1,154 Fab-8 (8") 272 275 271 265 255 1,066
Fab-12 (12") Note 2 221 218 219 218 254 909 Fab-14 (12") Note 2 236
238 236 228 227 928 WaferTech (8") 106 106 107 109 109 431 TSMC
China (8") 128 128 134 135 135 531 TSMC total capacity (8" equiv.
Kpcs) 2,405 2,431 2,414 2,394 2,455 9,695 SSMC (8") 73 64 65 65 65
259 Total managed capacity (8" equiv. Kpcs) 2,478 2,495 2,479 2,460
2,520 9,954 Note: 1. Figures represent number of 6" wafers.
Conversion to 8"- Equivalent wafers is obtained by dividing this
number by 1.78 2. Figures represent number of 12" wafers.
Conversion to 8"- equivalent wafers is obtained by multiplying this
number by 2.25 Capacity: Total managed capacity was 2,495K 8-inch
equivalent wafers in the first quarter, increased by 0.7% from
2,478K in 4Q08. Total managed capacity in 2009 is expected to reach
9,954K 8-inch equivalent wafers, representing an increase of 6%
from 9,377K 8-inch equivalent wafers in 2008, while capacity for
12-inch wafer fabs is expected to increase by 11%, reaching 41.5%
of total capacity. VI. Recap of Recent Important Events &
Announcements -- TSMC Qualifies New 0.18-Micron Embedded Flash
Family (2009/03/31) -- Ciranova and TSMC Announce Strategic
Partnership on Advanced PDK Technology ( 2009/03/24) -- Barron's
Names Dr. Rick Tsai to its Most Respected CEO List (2009/03/23) --
Intel, TSMC Reach Agreement to Collaborate on Technology Platform,
IP Infrastructure, SoC Solutions (2009/03/02) -- TSMC and Tela
Innovations Announce Strategic Partnership to Enhance Design and
Process Co-Optimization (2009/02/24) -- TSMC Board Proposes
Dividend of NT$3.0 Cash and 0.5% Stock Per Share (2009/02/10) *
Please visit TSMC's Web site ( http://www.tsmc.com/ ) for details
about these and other announcements. TAIWAN SEMICONDUCTOR
MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Consolidated
Condensed Balance Sheets (Expressed in Millions of New Taiwan
Dollars (NTD) and U.S. Dollars (USD))(1) March 31, 2009 December
31, 2008 (unaudited) (audited) ASSETS USD NTD % NTD % Current
Assets Cash and Cash Equivalents $6,583 $223,262 40.4 $194,614 34.8
Investments in Marketable Financial Instruments 192 6,527 1.2
16,836 3.0 Accounts Receivable - Trade, Net 408 13,822 2.5 18,497
3.3 Inventories, Net 436 14,775 2.7 14,877 2.7 Other Current Assets
299 10,171 1.8 7,795 1.4 Total Current Assets 7,918 268,557 48.6
252,619 45.2 Long-Term Investments 1,052 35,682 6.5 39,982 7.2
Property, Plant and Equipment 25,568 867,199 156.9 862,461 154.3
Less: Accumulated Depreciation (18,873) (640,121) (115.8) (618,816)
(110.7) Property, Plant and Equipment, Net 6,695 227,078 41.1
243,645 43.6 Other Assets 633 21,458 3.8 22,671 4.0 Total Assets
$16,298 $552,775 100.0 $558,917 100.0 LIABILITIES AND SHAREHOLDERS'
EQUITY Current Liabilities Accounts Payable $172 $5,824 1.1 $6,043
1.1 Payables to Contractors and Equipment Suppliers 152 5,145 0.9
7,999 1.4 Accrued Expenses and Other Current Liabilities 1,006
34,120 6.1 34,543 6.2 Current Portion of Bonds Payable and
Long-Term Liabilities 8 286 0.1 8,222 1.5 Total Current Liabilities
1,338 45,375 8.2 56,807 10.2 Bonds Payable 133 4,500 0.8 4,500 0.8
Other Long-Term Liabilities 518 17,587 3.2 17,237 3.1 Total
Liabilities 1,989 67,462 12.2 78,544 14.1 Shareholders' Equity
Attributable to Shareholders of the Parent Capital Stock at Par
Value 7,556 256,260 46.4 256,254 45.8 Capital Surplus 1,473 49,965
9.0 49,875 8.9 Legal Capital Reserve (2) 1,985 67,324 12.2 67,324
12.0 Special Capital Reserve (2) 12 392 0.1 392 0.1 Unappropriated
Earnings (2) 3,063 103,896 18.8 102,338 18.3 Treasury Stock -- --
-- -- -- Others 109 3,710 0.6 194 0.1 Total Equity Attributable to
Shareholders of the Parent 14,198 481,547 87.1 476,377 85.2
Minority Interests 111 3,766 0.7 3,996 0.7 Total Shareholders'
Equity 14,309 485,313 87.8 480,373 85.9 Total Liabilities &
Shareholders' Equity $16,298 $552,775 100.0 $558,917 100.0 TAIWAN
SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets (Expressed in Millions of New
Taiwan Dollars (NTD) and U.S. Dollars (USD)) (1) (Continued) March
31, 2008 (unaudited) QoQ YoY ASSETS NTD % Amount % Amount % Current
Assets Cash and Cash Equivalents $144,277 24.2 $28,648 14.7 $78,985
54.7 Investments in Marketable Financial Instruments 66,034 11.1
(10,309) (61.2) (59,507) (90.1) Accounts Receivable - Trade, Net
37,950 6.3 (4,675) (25.3) (24,128) (63.6) Inventories, Net 21,890
3.7 (102) (0.7) (7,115) (32.5) Other Current Assets 11,304 1.9
2,376 30.5 (1,133) (10.0) Total Current Assets 281,455 47.2 15,938
6.3 (12,898) (4.6) Long-Term Investments 33,693 5.6 (4,300) (10.8)
1,989 5.9 Property, Plant and Equipment 817,464 136.9 4,738 0.5
49,735 6.1 Less: Accumulated Depreciation (555,854) (93.1) (21,305)
3.4 (84,267) 15.2 Property, Plant and Equipment, Net 261,610 43.8
(16,567) (6.8) (34,532) (13.2) Other Assets 20,285 3.4 (1,213)
(5.4) 1,173 5.8 Total Assets $597,043 100.0 ($6,142) (1.1)
($44,268) (7.4) LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities Accounts Payable $10,338 1.7 ($219) (3.6) ($4,514)
(43.7) Payables to Contractors and Equipment Suppliers 12,256 2.1
(2,854) (35.7) (7,111) (58.0) Accrued Expenses and Other Current
Liabilities 31,162 5.2 (423) (1.2) 2,958 9.5 Current Portion of
Bonds Payable and Long-Term Liabilities 8,280 1.4 (7,936) (96.5)
(7,994) (96.5) Total Current Liabilities 62,036 10.4 (11,432)
(20.1) (16,661) (26.9) Bonds Payable 4,500 0.8 -- -- -- -- Other
Long-Term Liabilities 17,537 2.9 350 2.0 50 0.3 Total Liabilities
84,073 14.1 (11,082) (14.1) (16,611) (19.8) Shareholders' Equity
Attributable to Shareholders of the Parent Capital Stock at Par
Value 256,292 42.9 6 0.0 (32) (0.0) Capital Surplus 51,696 8.7 90
0.2 (1,731) (3.3) Legal Capital Reserve (2) 56,406 9.4 -- -- 10,918
19.4 Special Capital Reserve (2) 630 0.1 -- -- (238) (37.8)
Unappropriated Earnings (2) 151,597 25.4 1,558 1.5 (47,701) (31.5)
Treasury Stock (918) (0.2) -- -- 918 (100.0) Others (6,410) (1.0)
3,516 1813.8 10,120 (157.9) Total Equity Attributable to
Shareholders of the Parent 509,293 85.3 5,170 1.1 (27,746) (5.4)
Minority Interests 3,677 0.6 (230) (5.7) 89 2.4 Total Shareholders'
Equity 512,970 85.9 4,940 1.0 (27,657) (5.4) Total Liabilities
& Shareholders' Equity $597,043 100.0 ($6,142) (1.1) ($44,268)
(7.4) Note: (1) Amounts in New Taiwan dollars have been translated
into U.S. dollars at the rate of NT$33.917 as of March 31, 2009.
(2) Certain prior period balances have been reclassified to conform
to the current period presentation. TAIWAN SEMICONDUCTOR
MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Unaudited
Consolidated Condensed Income Statements For the Three Months Ended
March 31, 2009, December 31, 2008, and March 31, 2008 (Expressed in
Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding) 1Q 2009 4Q
2008 USD NTD % NTD % Net Sales $1,164 $39,500 100.0 $64,562 100.0
Cost of Sales (943) (32,020) (81.1) (44,367) (68.7) Gross Profit
221 7,480 18.9 20,195 31.3 Operating Expenses Research and
Development Expenses (110) (3,729) (9.4) (4,826) (7.5) General and
Administrative Expenses (47) (1,595) (4.0) (2,285) (3.5) Sales and
Marketing Expenses (28) (947) (2.4) (1,062) (1.7) Total Operating
Expenses (185) (6,271) (15.9) (8,173) (12.7) Income from Operations
36 1,209 3.1 12,022 18.6 Non-Operating Income, Net 10 353 0.9 1,412
2.2 Investment Gains (Loss) (24) (813) (2.1) (340) (0.5) Income
before Income Tax 22 749 1.9 13,094 20.3 Income Tax Benefits
(Expenses) 22 739 1.9 (452) (0.7) Net Income 44 1,488 3.8 12,642
19.6 Minority Interests 2 71 0.1 (196) (0.3) Net Income
Attributable to Shareholders of the Parent 46 1,559 3.9 12,446 19.3
Earnings per Share - Diluted $0.00 $0.06 -- $0.48 -- Earnings per
ADR - Diluted (2) $0.01 $0.30 -- $2.42 -- Weighted Average
Outstanding Shares - Diluted ('M) (3) -- 25,792 -- 25,655 -- TAIWAN
SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements For the Three
Months Ended March 31, 2009, December 31, 2008, and March 31, 2008
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars
(USD) (1) Except for Per Share Amounts and Shares Outstanding)
(Continued) 1Q 2008 QoQ YoY NTD % Amount % Amount % Net Sales
$87,480 100.0 ($25,062) (38.8) ($47,980) (54.8) Cost of Sales
(49,241) (56.3) 12,347 (27.8) 17,221 (35.0) Gross Profit 38,239
43.7 (12,715) (63.0) (30,759) (80.4) Operating Expenses Research
and Development Expenses (5,270) (6.0) 1,097 (22.7) 1,541 (29.2)
General and Administrative Expenses (2,662) (3.0) 690 (30.2) 1,067
(40.1) Sales and Marketing Expenses (1,184) (1.4) 115 (10.8) 237
(20.0) Total Operating Expenses (9,116) (10.4) 1,902 (23.3) 2,845
(31.2) Income from Operations 29,123 33.3 (10,813) (89.9) (27,914)
(95.8) Non-Operating Income, Net 1,872 2.1 (1,059) (75.1) (1,519)
(81.2) Investment Gains (Loss) 577 0.7 (473) 138.6 (1,390) (240.7)
Income before Income Tax 31,572 36.1 (12,345) (94.3) (30,823)
(97.6) Income Tax Benefits (Expenses) (3,336) (3.8) 1,191 (263.5)
4,075 (122.2) Net Income 28,236 32.3 (11,154) (88.2) (26,748)
(94.7) Minority Interests (93) (0.1) 267 (136.3) 164 (176.8) Net
Income Attributable to Shareholders of the Parent 28,143 32.2
(10,887) (87.5) (26,584) (94.5) Earnings per Share - Diluted $1.08
-- ($0.42) (87.5) ($1.02) (94.4) Earnings per ADR - Diluted (2)
$5.38 -- ($2.12) (87.5) ($5.08) (94.4) Weighted Average Outstanding
Shares - Diluted ('M) (3) 26,167 -- -- -- -- -- Note: (1) Amounts
in New Taiwan dollars have been translated into U.S. dollars at the
weighted average rate of NTD 33.922 for the first quarter of 2009.
(2) 1 ADR equals 5 ordinary shares. (3) Total diluted weighted
average outstanding shares were 26,167M shares for 1Q08 after the
retroactive adjustments for stock dividends and stock bonus. TAIWAN
SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows For The Three
Months Ended March 31, 2009, December 31, 2008, and March 31, 2008
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars
(USD))(1) 1Q 2009 4Q 2008 1Q 2008 (unaudited)(unaudited)(unaudited)
USD NTD NTD NTD Cash Flows from Operating Activities: Net Income
$46 $1,559 $12,446 $28,143 Net Income (Loss) Attributable to
Minority Interest (2) (71) 196 93 Depreciation & Amortization
604 20,483 20,961 19,831 Deferred Income Tax (41) (1,394) 154 435
Equity in Loss (Earnings) of Equity Method Investees, Net 24 813
340 (577) Changes in Working Capital & Others 159 5,398 29,147
9,370 Net Cash Provided by Operating Activities 790 26,788 63,244
57,295 Cash Flows from Investing Activities: Acquisitions of:
Marketable Financial Instruments (273) (9,251) (33,059) (13,902)
Investments Accounted for Using Equity Method -- -- (1) --
Property, Plant and Equipment (166) (5,617) (11,258) (15,313)
Financial Assets Carried at Cost (2) (83) (73) (213) Proceeds from
Disposal or Maturity of: Marketable Financial Instruments 680
23,053 63,368 26,816 Property, Plant and Equipment -- 2 24 1
Financial Assets Carried at Cost -- -- 73 93 Others 1 32 (1,061)
(607) Net Cash Provided by (Used In) Investing Activities 240 8,136
18,013 (3,125) Cash Flows from Financing Activities: Decrease in
Guarantee Deposits (5) (165) (140) (371) Proceeds from Exercise of
Stock Options -- 15 5 81 Repayment of Long-Term Bonds Payable (236)
(8,000) -- -- Repurchase of Treasury Stock -- -- -- (3,054) Others
9 275 (163) 58 Net Cash Used in Financing Activities (232) (7,875)
(298) (3,286) Net Increase in Cash and Cash Equivalents 798 27,049
80,959 50,884 Effect of Exchange Rate Changes and Others 47 1,599
1,209 (1,593) Cash and Cash Equivalents at Beginning of Period
5,737 194,614 112,446 94,986 Cash and Cash Equivalents at End of
Period $6,582 $223,262 $194,614 $144,277 Note: (1) Amounts in New
Taiwan dollars have been translated into U.S. dollars at the
weighted average rate of NTD33.922 for the three months ended March
31, 2009. Safe Harbor Notice: The statements included in this press
release that are not historical in nature are "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. TSMC cautions
readers that forward-looking statements are subject to significant
risks and uncertainties and are based on TSMC's current
expectations. Actual results may differ materially from those
contained in such forward-looking statements for a variety of
reasons including, among others, risks associated with cyclicality
and market conditions in the semiconductor industry; demand and
supply for TSMC's foundry manufacturing capacity in particular and
for foundry manufacturing capacity in general; intense competition;
the failure of one or more significant customers to continue to
place the same level of orders with us; TSMC's ability to remain a
technological leader in the semiconductor industry; TSMC's ability
to manage its capacity; TSMC's ability to obtain, preserve and
defend its intellectual property rights; natural disasters and
other unexpected events which may disrupt production; and exchange
rate fluctuations. Additional information as to these and other
risk factors that may cause TSMC's actual results to differ
materially from TSMC's forward-looking statements may be found in
TSMC's Annual Report on Form 20-F, filed with the United States
Securities and Exchange Commission (the "SEC") on April 17, 2009,
and such other documents as TSMC may file with, or submit to, the
SEC from time to time. Except as required by law, we undertake no
obligation to update any forward-looking statement, whether as a
result of new information, future events, or otherwise. CONTACT
Elizabeth Sun / Harrison Hsueh Investor Relations Division TSMC
Tel: +886-3-568-2085 / +886-3-568-2088 Email: DATASOURCE: Taiwan
Semiconductor Manufacturing Company Limited CONTACT: Elizabeth Sun
or Harrison Hsueh, +886-3-568-2085, or +886-3-568-2088, , both of
TSMC
Copyright