HSIN-CHU, Taiwan, July 30 /PRNewswire-Asia-FirstCall/ -- TSMC
(TAIEX: 2330; NYSE: TSM) today announced consolidated revenue of
NT$74.21 billion, net income of NT$24.44 billion, and diluted
earnings per share of NT$0.94 (US$0.14 per ADS unit) for the second
quarter ended June 30, 2009. Year-over-year, second quarter revenue
decreased 15.8% while net income and diluted EPS decreased 15% and
13.9%, respectively. Compared to first quarter of 2009, second
quarter results represent an 87.9% increase in revenue, and an
increase of 1467.9% in net income and an increase of 1466.5% in
diluted EPS. All figures were prepared in accordance with R.O.C.
GAAP on a consolidated basis. Gross margin for the quarter was
46.2%, operating margin was 33.9%, and net margin was 32.9%. As a
result of improved demand outlook, customers' companies launching
new products, and customers' inventory restocking, second quarter
saw a sharp rebound in the demand for semiconductors across all
applications. Advanced process technologies (0.13-micron and below)
accounted for 65% of wafer revenues. 90-nanometer process
technology accounted for 23% of wafer revenues, 65-nanometer 28%,
and 45/40 nanometer, with wafer shipments tripling those of 1Q,
exceeded 1% of total wafer sales. "Both our macroeconomic forecast
and booking trend indicate that we will have a good third quarter,"
said Lora Ho, VP and Chief Financial Officer of TSMC. "Based on our
current business outlook, management expects overall performance
for third quarter 2009 to be as follows": -- Revenue is expected to
be between NT$88 billion and NT$90 billion; -- Gross profit margin
is expected to be between 46.5% and 48.5%; -- Operating profit
margin is expected to be between 35% and 37%. Lora Ho further said:
"Due to improved demand outlook for 2010 and a more aggressive
technology strategy, TSMC 2009 capital expenditure is expected to
be above both the 2008 expenditure of US$1.9 billion and the
previously guided US$1.5 billion, and is expected to be around
US$2.3 billion." Conference Call & Webcast Notice: TSMC's
quarterly review conference call will be held at 8 a.m. Eastern
Time (8 p.m. Taiwan Time) on Thursday, July 30, 2009. The
conference call will also be webcast live on the Internet.
Investors wishing to access the live webcast should visit TSMC's
web site at http://www.tsmc.com/ at least 15 minutes prior to the
broadcast. Instructions will be provided on the web site to
facilitate the download and installation of necessary audio
applications. Investors without Internet access may listen to the
conference call, in listen-only mode, by dialing 1-857-350-1588 in
the U.S., 852-3002-1672 in Hong Kong, and 44-207-365-8426 in the
U.K. (Password: TSMC). An archived version of the webcast will be
available on TSMC's web site for six months following the Company's
quarterly review conference call and webcast. Profile TSMC is the
world's largest dedicated semiconductor foundry, providing the
industry's leading process technology and the foundry's largest
portfolio of process-proven libraries, IPs, design tools and
reference flows. The Company's total managed capacity in 2008
exceeded nine million (8-inch equivalent) wafers, including
capacity from two advanced 12-inch GIGAFABs(TM), four eight-inch
fabs, one six-inch fab, as well as TSMC's wholly owned
subsidiaries, WaferTech and TSMC China, and its joint venture fab,
SSMC. TSMC is the first foundry to provide 40nm production
capabilities. Its corporate headquarters are in Hsinchu, Taiwan.
For more information about TSMC please visit http://www.tsmc.com/ .
(Management Report and Tables Follow) TSMC 2Q09 Quarterly
Management Report July 30, 2009 Topics in This Report -- Revenue
Analysis -- Profit & Expense Analysis -- Financial Condition
Review -- Cash Flow -- CapEx & Capacity -- Recap of Recent
Important Events & Announcements Operating Results Review:
Summary: (Amounts are on consolidated basis and are in NT billions
except otherwise noted) 2Q09 1Q09 2Q08 QoQ YoY EPS (NT$ per common
share) 0.94 0.06 1.09 1466.5% (13.9%) (US$ per ADR unit) 0.14 0.01
0.18 -- -- Consolidated Net Sales 74.21 39.50 88.14 87.9% (15.8%)
Gross Profit 34.30 7.48 40.22 358.5% (14.7%) Gross Margin 46.2%
18.9% 45.6% -- -- Operating Expense (9.17) (6.27) (9.85) 46.2%
(6.9%) Operating Income 25.13 1.21 30.37 1977.7% (17.3%) Operating
Margin 33.9% 3.1% 34.5% -- -- Non-Operating Items 1.26 (0.46) 2.00
-- -- Net Income 24.44 1.56 28.77 1467.9% (15.0%) Net Profit Margin
32.9% 3.9% 32.6% -- -- Wafer Shipment (kpcs 8 inch-equiv.) 1,971
892 2,329 121.0% (15.4%) Note: Total outstanding shares were
25,626mn units on 6/30/09 Financial Highlights: Second Quarter 2009
-- Consolidated net sales were NT$74.21 billion, representing a
87.9% sequential growth from 1Q09 and a 15.8% decline compared to
2Q08; -- Gross margin was 46.2%, 27.3 percentage points higher than
1Q09 and 0.6 percentage point higher than 2Q08. -- Operating margin
was 33.9%, 30.8 percentage points higher than 1Q09 and 0.6
percentage point lower than 2Q08. Operating expenses were NT$9.17
billion, NT$2.90 billion higher than the previous quarter. -- The
combined result from non-operating income and long-term investment
gains was a gain of NT$1.26 billion, compared to a loss of NT$0.46
billion in 1Q09 and a gain of NT$2.00 billion in 2Q08; --
Consolidated net income attributable to shareholders of the parent
company was NT$24.44 billion, with net profit margin of 32.9% and
diluted EPS of NT$0.94. I. Revenue Analysis I. Wafer Sales Analysis
By Application 2Q09 1Q09 2Q08 Computer 28% 26% 31% Communication
45% 46% 41% Consumer 21% 21% 21% Industrial/Others 6% 7% 7% By
Technology 2Q09 1Q09 2Q08 45/40nm 1% 1% 0% 65nm 28% 23% 18% 90nm
23% 25% 28% 0.11/0.13um 13% 16% 17% 0.15/0.18um 23% 21% 23%
0.25/0.35um 9% 11% 10% 0.50um+ 3% 3% 4% By Customer Type 2Q09 1Q09
2Q08 Fabless/System 82% 77% 71% IDM 18% 23% 29% By Geography 2Q09
1Q09 2Q08 North America 65% 68% 72% Asia Pacific 18% 14% 12% China
3% 3% 2% Europe 11% 12% 11% Japan 3% 3% 3% Revenue Analysis:
Application - Second quarter revenue was NT$74.21 billion,
representing 87.9% sequential growth, due to improved demand
outlook, electronics companies' launching new products, and
customers' inventory restocking. In 2Q09, demand strongly rebounded
across all applications compared to 1Q09. On a sequential basis,
revenues from computer, communication, and consumer applications
increased 128%, 100%, and 99%, respectively. Technology - Revenue
from 45/40nm exceeded 1% of total wafer sales in 2Q09, with wafer
shipments tripling those of 1Q. Meanwhile, revenue from 65nm and
90nm were 28% and 23% 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 18% of total wafer sales in 2Q09, lower
than 23% in 1Q09, primarily due to continued in-sourcing of IDM
customers. Geography - In 2Q09, revenues from customers based in
North America accounted for 65% of total wafer sales, lower than
68% in 1Q09. Meanwhile, sales from customers in Asia Pacific,
China, Europe, and Japan accounted for 18%, 3%, 11% and 3% of wafer
sales, respectively. II. Profit & Expense Analysis II - 1.
Gross Profit Analysis (In NT billions) 2Q09 1Q09 2Q08 COGS 39.91
32.02 47.92 Depreciation 18.54 18.97 18.23 Other MFG Cost 21.37
13.05 29.69 Gross Profit 34.30 7.48 40.22 Gross Margin 46.2% 18.9%
45.6% II - 1.1. QoQ Comparison 1Q09 Gross Margin 18.9% Impact to
Gross Margin ppts Higher utilization 48.2 Non-wafer-related
business -8.4 One-time and miscellaneous -6.7 Higher profit sharing
expense -2.0 Inventory valuation impact* -1.5 Declined standard
margin -1.4 Price decline: -1.7 ppts Cost improvement: +1.4ppts
Unfavorable mix: -1.1 ppts Unfavorable FX rate -0.9 2Q09 Gross
Margin 46.2% II - 1.2. YoY Comparison 2Q08 Gross Margin 45.6%
Impact to Gross Margin ppts Favorable FX rate 3.7 One-time and
miscellaneous 2.8 Lower utilization -4.1 Inventory valuation
impact* -1.5 Declined standard margin -0.3 Price decline: -5.1 ppts
Cost improvement: +5.9 ppts Unfavorable mix: -1.1 ppts 2Q09 Gross
Margin 46.2% Gross Profit Analysis: Gross margin in 2Q09 was 46.2%,
up 27.3 percentage points from 1Q09. A sharply increased
utilization rate contributed 48.2 percentage points to gross
margin, while several other elements acted to offset partially the
increase in gross margin, including a lower percentage of total
revenue from non-wafer- related business (-8.4 percentage points),
one-time and miscellaneous items (- 6.7 percentage points),
increase in employee profit sharing (-2.0 percentage points),
adverse effect of ROC SFAS No.10 on inventory valuation (-1.5
percentage points), decline in standard gross margin (-1.4
percentage points), and unfavorable exchange rate (-0.9 percentage
point). Gross margin in 2Q09 increased 0.6 percentage point
compared with 45.6% in 2Q08, due to favorable exchange rate (+3.7
percentage points), one-time and miscellaneous items (+2.8
percentage points), partially offset by lower utilization rate
(-4.1 percentage points), negative impact from the adoption of ROC
SFAS No.10 (-1.5 percentage points), and decline in standard gross
margin (-0.3 percentage points). II - 2. Operating Expenses (In NT
billions) 2Q09 1Q09 2Q08 Total Operating Exp. 9.17 6.27 9.85
SG&A 4.07 2.54 4.45 Research & Development 5.10 3.73 5.40
Total Operating Exp. as a % of Sales 12.3% 15.9% 11.1% Operating
Expenses: Total operating expenses for 2Q09 increased to NT$9.17
billion, representing 12.3% of net sales, lower than 15.9% of net
sales in 1Q09. Research and development expenditures increased by
NT$1.37 billion sequentially, mainly due to higher level of
employee profit sharing and more development expenses, mainly
related to 28nm and 22nm technologies. SG&A expenses increased
by NT$1.53 billion from 1Q09 level. The increase was mainly due to
higher level of employee profit sharing and opening expense related
to Fab 12 Phase 4. II - 3. Non-Operating Items (In NT billions)
2Q09 1Q09 2Q08 Non-Operating Inc./(Exp.) 1.15 0.35 1.72 Net
Interest Income/(Exp.) 0.56 0.88 1.24 Other Non-Operating 0.59
(0.53) 0.48 L-T Investments 0.11 (0.81) 0.28 SSMC 0.19 (0.32) 0.30
Others (0.08) (0.49) (0.02) Total Non-Operating Items 1.26 (0.46)
2.00 Non-Operating Items: For 2Q09, combined result from
non-operating income and long-term investment gain was a net gain
of NT$1.26 billion. Non-operating income was NT$1.15 billion,
higher than NT$0.35 billion in 1Q09, primarily due to income from
litigation compensation, higher disposal gains and lower impairment
losses of financial assets, partially offset by less interest
income. Net investment gain was NT$0.11 billion, improving from a
net loss of NT$0.81 billion in 1Q09, mainly due to business
recovery in VIS and SSMC. III. Financial Condition Review III - 1.
Liquidity Analysis (Selected Balance Sheet Items) (In NT billions)
2Q09 1Q09 2Q08 Cash & Marketable Securities 246.77 229.79
223.99 Accounts Receivable -- Trade 33.38 13.82 41.86 Inventory
18.97 14.78 23.36 Total Current Assets 309.42 268.56 299.76
Accounts Payable 25.96 10.97 21.14 Current Portion of Bonds Payable
0.00 0.00 8.00 Dividends Payable 77.17 0.00 77.04 Accrued Bonus to
Employees, Directors and Supervisors 11.70 15.64 12.96 Accrued
Liabilities and Others 14.80 18.76 27.84 Total Current Liabilities
129.63 45.37 146.98 Current Ratio (x) 2.4 5.9 2.0 Net Working
Capital 179.79 223.19 152.78 Liquidity Analysis: At the end of
2Q09, total current assets increased by NT$40.86 billion to
NT$309.42 billion, mainly contributed by the free cash flow of
NT$17.10 billion (please refer to page 6) generated during this
quarter. Total current liabilities increased by NT$84.26 billion in
2Q09, primarily resulting from the increases of cash dividend
payable and payables to contractors and equipment suppliers. Net
working capital was NT$179.79 billion and current ratio decreased
to 2.4x. III - 2. Receivable/Inventory Days (In Number of Days)
2Q09 1Q09 2Q08 Days of Receivable 30 38 42 Days of Inventory 42 44
47 Receivable and Inventory Days: Sequentially, days of receivable
decreased by eight days to 30 days in 2Q09, mainly resulting from a
slower growth in average receivables than in revenue. Days of
inventory decreased by two days to 42 days. III - 3. Debt Service
(In NT billions) 2Q09 1Q09 2Q08 Cash & Marketable Securities
246.77 229.79 223.99 Interest-Bearing Debt 15.57 16.00 22.90 Net
Cash Reserves 231.20 213.79 201.09 Debt Service: Net cash reserves
- defined as the excess of cash and short-term marketable
securities over interest-bearing debt - increased by NT$17.41
billion to NT$231.20 billion at the end of 2Q09, primarily due to
free cash flow of NT$17.10 billion generated during this quarter.
IV. Cash Flow IV - 1. Cash Flow Analysis (In NT billions) 2Q09 1Q09
2Q08 Net Income 24.44 1.56 28.77 Depreciation & Amortization
20.05 20.48 20.03 Other Operating Sources/(Uses) (19.97) 4.75
(3.75) Total Operating Sources/(Uses) 24.52 26.79 45.05 Capital
Expenditure (7.42) (5.62) (22.27) Marketable Financial Instruments
1.68 13.80 27.20 Other Investing Sources/(Uses) (0.25) (0.04)
(1.33) Net Investing Sources/(Uses) (5.99) 8.14 3.60 Repayment of
Bonds Payable 0.00 (8.00) 0.00 Purchase of Treasury Stock 0.00 0.00
(6.62) Other Financing Sources/(Uses) (0.34) 0.12 (0.23) Net
Financing Sources/(Uses) (0.34) (7.88) (6.85) Net Cash Position
Changes 18.19 27.05 41.80 Exchange Rate Changes & Others (1.93)
1.60 (0.73) Ending Cash Balance 239.52 223.26 185.35 Summary of
Cash Flow: Cash generated from operating activities totaled
NT$24.52 billion during 2Q09, down from NT$26.79 billion in 1Q09,
mainly due to higher level of business activities. Net cash used in
investing activities was NT$5.99 billion in 2Q09, reflecting
capital expenditure of NT$7.42 billion and a NT$1.68 billion net
decrease in marketable financial instruments. As a result, TSMC
ended 2Q09 with a cash balance of NT$239.52 billion. IV - 2.
Operating and Free Cash Flows: Operating and Free Cash Flows: Cash
flows generated from operating activities were NT$24.52 billion
during the quarter. Free cash flow, defined as the excess of
operating cash flows over capital expenditures, totaled NT$17.10
billion in 2Q09, compared to NT$21.17 billion in 1Q09. 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 2Q09 YTD TSMC 161 218 379 XinTec and GUC 2 3 5 TSMC Shanghai
& WaferTech 3 3 6 Other TSMC Subsidiaries 0 0 0 Total TSMC 166
224 390 Capital Expenditures: Capital expenditures for TSMC on a
consolidated basis totaled US$224 million in 2Q09. For year 2009,
total capital expenditures for TSMC is expected to be around US$2.3
billion, compared with US$1.9 billion spent in 2008. V-2. Capacity
4Q08 1Q09 2Q09 3Q09 4Q09 2009 Fab / (Wafer size) (A) (A) (A) (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 2 221 218 219 199 241 878 Fab-14 (12") Note 2 236
238 238 237 240 952 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 2,419 2,373 2,455 9,678 SSMC (8") 73 64 65 65 65
259 Total managed capacity (8" equiv. Kpcs) 2,478 2,495 2,483 2,438
2,520 9,937 Note 1: Figures represent number of 6" wafers.
Conversion to 8"-equivalent wafers is obtained by dividing this
number by 1.78 Note 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 2,483K 8-inch
equivalent wafers in the second quarter, decreased by 0.5% from
2,495K in 1Q09, mainly due to capacity migration to higher nodes.
Total managed capacity in 2009 is expected to reach 9,937K 8-inch
equivalent wafers, representing an increase of 6.0% from 9,377K
8-inch equivalent wafers in 2008, while capacity for 12-inch wafer
fabs is expected to increase by 10%, reaching 41% of total
capacity. VI. Recap of Recent Important Events & Announcements
-- TSMC Enhances 0.13um Family to Enable Area Reduction and
Performance Gain with Slim Platform for Analog and Power Management
System-on-Chip Applications ( 2009/06/29 ) -- TSMC Sets July 21 as
Record Date and July 15th as Ex-dividend Date for Common Share
Dividends ( 2009/06/25 and 2009/6/30 ) -- TSMC Reports Foundry's
First 28 Nanometer Low Power Platform Technology with Fully
Functional 64Mb SRAM ( 2009/06/17 ) -- TSMC Board of Directors
Unanimously Re-elects and Appoints Dr. Morris Chang as Chairman.
Dr. Chang Returns as Chief Executive Officer, Effective June 12,
2009. ( 2009/06/11 ) -- TSMC Shareholders Approve NT$3.0 Cash and
0.5% Stock Dividend, and Elect TSMC's 11th Board of Directors ,
Including Four Independent Directors ( 2009/06/10 ) -- TSMC
Launches Unified Interconnect Modeling Format for Advanced Process
Technologies ( 2009/05/27 ) -- Fujitsu Microelectronics and TSMC to
Collaborate on Leading-edge Process Technology ( 2009/04/30 ) --
TSMC Launches Integrated Sign-Off Flow To Shorten Design Cycle,
Enhance Tape-Out Quality ( 2009/04/21 ) -- TSMC Announces Foundry's
First Mixed Signal/RF Referenced Design Kit ( 2009/04/21 ) --
TSMC/GUC 65LP ARM 1176JZF hardened cores Open Doors for 65nm
Designers ( 2009/04/20 ) * 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) June 30, 2009 March 31, 2009 (audited) (unaudited)
ASSETS USD NTD % NTD % Current Assets Cash and Cash Equivalents
$7,298 $239,517 40.8 $223,262 40.4 Investments in Marketable
Financial Instruments 221 7,252 1.2 6,527 1.2 Accounts Receivable
-- Trade 1,017 33,384 5.7 13,822 2.5 Inventories, Net 578 18,974
3.2 14,775 2.7 Other Current Assets 314 10,292 1.8 10,171 1.8 Total
Current Assets 9,428 309,419 52.7 268,557 48.6 Long-Term
Investments 990 32,498 5.5 35,682 6.5 Properties, Plant and
Equipment 26,872 881,897 150.1 867,199 156.9 Less: Accumulated
Depreciation (20,014) (656,826) (111.8) (640,121) (115.8)
Properties, Plant and Equipment, Net 6,858 225,071 38.3 227,078
41.1 Other Assets 627 20,555 3.5 21,458 3.8 Total Assets $17,903
$587,543 100.0 $552,775 100.0 LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities Accounts Payables $308 $10,105 1.7 $5,824 1.1
Payables to Contractors and Equipment Suppliers 483 15,853 2.7
5,145 0.9 Accrued Expenses and Other Current Liabilities 3,150
103,363 17.6 34,120 6.1 Current Portion of Bonds Payable and
Long-Term Liabilities 9 309 0.1 286 0.1 Total Current Liabilities
3,950 129,630 22.1 45,375 8.2 Bonds Payable 137 4,500 0.8 4,500 0.8
Other Long-Term Liabilities 489 16,060 2.7 17,587 3.2 Total
Liabilities 4,576 150,190 25.6 67,462 12.2 Shareholders' Equity
Attributable to Shareholders of the Parent Capital Stock at Par
Value 7,891 258,964 44.1 256,260 46.4 Capital Surplus 1,686 55,331
9.4 49,965 9.0 Legal Capital Reserve (2) 2,356 77,317 13.2 67,324
12.2 Special Capital Reserve (2) -- -- -- 392 0.1 Unappropriated
Earnings (2) 1,260 41,348 7.0 103,896 18.8 Treasury Stock -- -- --
-- -- Others 24 801 0.1 3,710 0.6 Total Equity Attributable to
Shareholders of the Parent 13,217 433,761 73.8 481,547 87.1
Minority Interests 110 3,592 0.6 3,766 0.7 Total Shareholders'
Equity 13,327 437,353 74.4 485,313 87.8 Total Liabilities &
Shareholders' Equity $17,903 $587,543 100.0 $552,775 100.0 Note:
(1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the rate of NT$32.818 as of June 30, 2009. (2) Certain
prior period balances have been reclassified to conform to the
current period presentation. 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) June 30, 2008 (audited) QoQ YoY
ASSETS NTD % Amount % Amount % Current Assets Cash and Cash
Equivalents $185,346 30.1 $16,255 7.3 $54,171 29.2 Investments in
Marketable Financial Instruments 38,642 6.3 725 11.1 (31,390)
(81.2) Accounts Receivable -- Trade 41,858 6.8 19,562 141.5 (8,474)
(20.2) Inventories, Net 23,359 3.8 4,199 28.4 (4,385) (18.8) Other
Current Assets 10,558 1.7 121 1.2 (266) (2.5) Total Current Assets
299,763 48.7 40,862 15.2 9,656 3.2 Long-Term Investments 31,937 5.2
(3,184) (8.9) 561 1.8 Properties, Plant and Equipment 836,936 136.0
14,698 1.7 44,961 5.4 Less: Accumulated Depreciation (574,738)
(93.4) (16,705) 2.6 (82,088) 14.3 Properties, Plant and Equipment,
Net 262,198 42.6 (2,007) (0.9) (37,127) (14.2) Other Assets 21,325
3.5 (903) (4.2) (770) (3.6) Total Assets $615,223 100.0 $34,768 6.3
($27,680) (4.5) LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities Accounts Payables $11,632 1.9 $4,281 73.5 ($1,527)
(13.1) Payables to Contractors and Equipment Suppliers 9,511 1.5
10,708 208.1 6,342 66.7 Accrued Expenses and Other Current
Liabilities 117,576 19.2 69,243 202.9 (14,213) (12.1) Current
Portion of Bonds Payable and Long-Term Liabilities 8,262 1.3 23 7.8
(7,953) (96.3) Total Current Liabilities 146,981 23.9 84,255 185.7
(17,351) (11.8) Bonds Payable 4,500 0.7 -- -- -- -- Other Long-Term
Liabilities 17,055 2.8 (1,527) (8.7) (995) (5.8) Total Liabilities
168,536 27.4 82,728 122.6 (18,346) (10.9) Shareholders' Equity
Attributable to Shareholders of the Parent Capital Stock at Par
Value 261,535 42.5 2,704 1.1 (2,571) (1.0) Capital Surplus 50,917
8.3 5,366 10.7 4,414 8.7 Legal Capital Reserve (2) 67,324 10.9
9,993 14.8 9,993 14.8 Special Capital Reserve (2) 392 0.1 (392)
(100.0) (392) (100.0) Unappropriated Earnings (2) 84,237 13.7
(62,548) (60.2) (42,889) (50.9) Treasury Stock (14,845) (2.4) -- --
14,845 (100.0) Others (6,319) (1.1) (2,909) (78.4) 7,120 (112.7)
Total Equity Attributable to Shareholders of the Parent 443,241
72.0 (47,786) (9.9) (9,480) (2.1) Minority Interests 3,446 0.6
(174) (4.6) 146 4.2 Total Shareholders' Equity 446,687 72.6
(47,960) (9.9) (9,334) (2.1) Total Liabilities & Shareholders'
Equity $615,223 100.0 $34,768 6.3 ($27,680) (4.5) Note: (1) Amounts
in New Taiwan dollars have been translated into U.S. dollars at the
rate of NT$32.818 as of June 30, 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 June 30, 2009, March 31, 2009, June 30,
2008 (Expressed in Millions of New Taiwan Dollars ("NTD") and U.S.
Dollars ("USD") (1) Except for Per Share Amounts and Shares
Outstanding) 2Q 2009 1Q 2009 USD NTD % NTD % Net Sales $2,242
$74,212 100.0 $39,500 100.0 Cost of Sales (1,206) (39,916) (53.8)
(32,020) (81.1) Gross Profit 1,036 34,296 46.2 7,480 18.9 Operating
Expenses Research and Development Expenses (154) (5,096) (6.9)
(3,729) (9.4) General and Administrative Expenses (87) (2,881)
(3.8) (1,595) (4.0) Sales and Marketing Expenses (36) (1,192) (1.6)
(947) (2.4) Total Operating Expenses (277) (9,169) (12.3) (6,271)
(15.9) Income from Operations 759 25,127 33.9 1,209 3.1
Non-Operating Income, Net 35 1,156 1.6 353 0.9 Investment Gains
(Losses) 3 106 0.1 (813) (2.1) Income before Income Tax 797 26,389
35.6 749 1.9 Income Tax Benefits (Expenses) (59) (1,943) (2.7) 739
1.9 Net Income 738 24,446 32.9 1,488 3.8 Minority Interests 0 (4)
-- 71 0.1 Net Income Attributable to Shareholders of the Parent 738
24,442 32.9 1,559 3.9 Earnings per Share -- Diluted $0.03 $0.94 --
$0.06 -- Earnings per ADR -- Diluted (2) $0.14 $4.71 -- $0.30 --
Weighted Average Outstanding Shares -- Diluted ('M) (3) -- 25,944
-- 25,920 -- Note: (1) Amounts in New Taiwan dollars have been
translated into U.S. dollars at the weighted average rate of
NTD33.104 for the second quarter of 2009. (2) 1 ADR equals 5
ordinary shares. (3) Total diluted weighted average outstanding
shares were 25,920M and 26,286M shares for 1Q09 and 2Q08 after the
retroactive adjustments for stock dividends. TAIWAN SEMICONDUCTOR
MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Unaudited
Consolidated Condensed Income Statements For the Three Months Ended
June 30, 2009, March 31, 2009, June 30, 2008 (Expressed in Millions
of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1) Except for
Per Share Amounts and Shares Outstanding) (Continued) 2Q 2008 QoQ
YoY NTD % Amount % Amount % Net Sales $88,137 100.0 $34,712 87.9
($13,925) (15.8) Cost of Sales (47,916) (54.4) (7,896) 24.7 8,000
(16.7) Gross Profit 40,221 45.6 26,816 358.5 (5,925) (14.7)
Operating Expenses Research and Development Expenses (5,404) (6.1)
(1,367) 36.7 308 (5.7) General and Administrative Expenses (3,170)
(3.6) (1,286) 80.7 289 (9.1) Sales and Marketing Expenses (1,274)
(1.4) (245) 25.8 82 (6.5) Total Operating Expenses (9,848) (11.1)
(2,898) 46.2 679 (6.9) Income from Operations 30,373 34.5 23,918
1,977.7 (5,246) (17.3) Non-Operating Income, Net 1,725 1.9 803
228.9 (569) (32.9) Investment Gains (Losses) 279 0.3 919 (113.0)
(173) (62.1) Income before Income Tax 32,377 36.7 25,640 3,425.6
(5,988) (18.5) Income Tax Benefits (Expenses) (3,503) (4.0) (2,682)
(362.9) 1,560 (44.5) Net Income 28,874 32.7 22,958 1,543.1 (4,428)
(15.3) Minority Interests (103) (0.1) (75) (105.4) 99 (96.3) Net
Income Attributable to Shareholders of the Parent 28,771 32.6
22,883 1,467.9 (4,329) (15.0) Earnings per Share -- Diluted $1.09
-- $0.88 1,466.5 ($0.15) (13.9) Earnings per ADR -- Diluted (2)
$5.47 -- $4.41 1,466.5 ($0.76) (13.9) Weighted Average Outstanding
Shares -- Diluted ('M) (3) 26,286 -- -- -- -- -- Note: (1) Amounts
in New Taiwan dollars have been translated into U.S. dollars at the
weighted average rate of NTD33.104 for the second quarter of 2009.
(2) 1 ADR equals 5 ordinary shares. (3) Total diluted weighted
average outstanding shares were 25,920M and 26,286M shares for 1Q09
and 2Q08 after the retroactive adjustments for stock dividends.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Audited Consolidated Condensed Income Statements For the Six Months
Ended June 30, 2009 and 2008 (Expressed in Millions of New Taiwan
Dollars ("NTD") and U.S. Dollars ("USD") (1) Except for Per Share
Amounts and Shares Outstanding) For the Six Months Ended June 30
2009 2008 USD NTD % NTD % Net Sales $3,406 $113,712 100.0 $175,617
100.0 Cost of Sales (2,155) (71,936) (63.3) (97,156) (55.3) Gross
Profit 1,251 41,776 36.7 78,461 44.7 Operating Expenses Research
and Development Expenses (264) (8,825) (7.8) (10,674) (6.1) General
and Administrative Expenses (134) (4,476) (3.9) (5,833) (3.3) Sales
and Marketing Expenses (64) (2,139) (1.8) (2,458) (1.4) Total
Operating Expenses (462) (15,440) (13.5) (18,965) (10.8) Income
from Operations 789 26,336 23.2 59,496 33.9 Non-Operating Income,
Net 45 1,508 1.3 3,596 2.0 Investment Gains (Losses) (21) (707)
(0.6) 857 0.5 Income before Income Tax 813 27,137 23.9 63,949 36.4
Income Tax Expenses (36) (1,204) (1.1) (6,839) (3.9) Net Income 777
25,933 22.8 57,110 32.5 Minority Interests 2 68 0.1 (196) (0.1) Net
Income Attributable to Shareholders of the Parent 779 26,001 22.9
56,914 32.4 Earnings per Share -- Diluted $0.03 $1.00 -- $2.16 --
Earnings per ADR -- Diluted (2) $0.15 $5.01 -- $10.81 -- Weighted
Average Outstanding Shares -- Diluted ('M) (3) -- 25,944 -- 26,332
-- Note: (1) Amounts in New Taiwan dollars have been translated
into U.S. dollars at the weighted average rate of NTD 33.384 for
the six months ended June 30, 2009. (2) 1 ADR equals 5 ordinary
shares. (3) Total diluted weighted average outstanding shares were
26,332M shares for for the six months ended June 30, 2008 after the
retroactive adjustment for stock dividends. TAIWAN SEMICONDUCTOR
MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Audited Consolidated
Condensed Income Statements For the Six Months Ended June 30, 2009
and 2008 (Expressed in Millions of New Taiwan Dollars ("NTD") and
U.S. Dollars ("USD") (1) Except for Per Share Amounts and Shares
Outstanding) (Continued) For the Six Months Ended June 30 YoY
Amount % Net Sales ($61,905) (35.2) Cost of Sales 25,220 (26.0)
Gross Profit (36,685) (46.8) Operating Expenses Research and
Development Expenses 1,849 (17.3) General and Administrative
Expenses 1,357 (23.3) Sales and Marketing Expenses 319 (13.0) Total
Operating Expenses 3,525 (18.6) Income from Operations (33,160)
(55.7) Non-Operating Income, Net (2,088) (58.1) Investment Gains
(Losses) (1,564) (182.5) Income before Income Tax (36,812) (57.6)
Income Tax Expenses 5,635 (82.4) Net Income (31,177) (54.6)
Minority Interests 264 (134.3) Net Income Attributable to
Shareholders of the Parent (30,913) (54.3) Earnings per Share --
Diluted ($1.16) (53.6) Earnings per ADR -- Diluted (2) ($5.80)
(53.6) Weighted Average Outstanding Shares -- Diluted ('M) (3) --
-- Note: (1) Amounts in New Taiwan dollars have been translated
into U.S. dollars at the weighted average rate of NTD 33.384 for
the six months ended June 30, 2009. (2) 1 ADR equals 5 ordinary
shares. (3) Total diluted weighted average outstanding shares were
26,332M shares for for the six months ended June 30, 2008 after the
retroactive adjustment for stock dividends. TAIWAN SEMICONDUCTOR
MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Consolidated
Condensed Statements of Cash Flows For the Six Months Ended June
30, 2009 and for the Three Months Ended June 30, 2009, March 31,
2009, and June 30, 2008 (Expressed in Millions of New Taiwan
Dollars ("NTD") and U.S. Dollars ("USD")) (1) Six Months 2009 2Q
2009 1Q 2009 2Q 2008 (Audited) (Unaudited)(Unaudited)(Unaudited)
USD NTD NTD NTD NTD Cash Flows from Operating Activities: Net
Income $779 $26,001 $24,442 $1,559 $28,771 Net Income (Loss)
Attributable to Minority Interest (2) (67) 4 (71) 103 Depreciation
& Amortization 1,214 40,536 20,053 20,483 20,034 Deferred
Income Tax (21) (697) 697 (1,394) 1,280 Equity in Losses (Earnings)
of Equity Method Investees, Net 21 707 (106) 813 (280) Changes in
Working Capital & Others (454) (15,168) (20,566) 5,398 (4,857)
Net Cash Provided by Operating Activities 1,537 51,312 24,524
26,788 45,051 Cash Flows from Investing Activities: Acquisitions
of: Marketable Financial Instruments (306) (10,219) (968) (9,251)
(14,635) Property, Plant and Equipment (390) (13,032) (7,415)
(5,617) (22,274) Financial Assets Carried at Cost (4) (131) (48)
(83) (90) Proceeds from Disposal or maturity of: Marketable
Financial Instruments 770 25,704 2,651 23,053 41,840 Property,
Plant and Equipment -- 5 3 2 30 Financial Assets Carried at Cost 2
75 75 -- 35 Others (8) (259) (291) 32 (1,310) Net Cash Provided by
(Used In) Investing Activities 64 2,143 (5,993) 8,136 3,596 Cash
Flows from Financing Activities: Decrease in Guarantee Deposits (7)
(251) (86) (165) (164) Proceeds from Exercise of Stock Options 1 29
14 15 91 Repayment of Long- Term Bonds Payable (240) (8,000) --
(8,000) -- Repurchase of Treasury Stock -- -- -- -- (6,615) Others
-- 10 (265) 275 (159) Net Cash Used in Financing Activities (246)
(8,212) (337) (7,875) (6,847) Net Increase in Cash and Cash
Equivalents 1,355 45,243 18,194 27,049 41,800 Effect of Exchange
Rate Changes and Others (10) (340) (1,939) 1,599 (731) Cash and
Cash Equivalents at Beginning of Period 5,830 194,614 223,262
194,614 144,277 Cash and Cash Equivalents at End of Period $7,175
$239,517 $239,517 $223,262 $185,346 Note: (1) Amounts in New Taiwan
dollars have been translated into U.S. dollars at the weighted
average rate of NTD33.384 for the six months ended June 30, 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 / 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
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