HSIN-CHU, Taiwan, Oct. 29 /PRNewswire-Asia-FirstCall/ -- TSMC
(TAIEX: 2330; NYSE: TSM) today announced consolidated revenue of
NT$89.94 billion, net income of NT$30.55 billion, and diluted
earnings per share of NT$1.18 (US$0.18 per ADS unit) for the third
quarter ended September 30, 2009. Year-over-year, third quarter
revenue decreased 3.3% while net income decreased 0.1% and diluted
EPS increased 0.3%. Compared to second quarter of 2009, third
quarter results represent a 21.2% increase in revenue, an increase
of 25% in net income, and an increase of 24.8% in diluted EPS. All
figures were prepared in accordance with R.O.C. GAAP on a
consolidated basis. Gross margin for the quarter was 47.7%,
operating margin was 35.6%, and net margin was 34%. As demand
outlook continued to improve, third quarter saw a solid growth in
the demand for semiconductors across all major applications.
Advanced process technologies (0.13-micron and below) accounted for
67% of wafer revenues. 90-nanometer process technology accounted
for 18% of wafer revenues, 65-nanometer 31%, and 40-nanometer
exceeded 4% of total wafer sales. "For the fourth quarter, we
expect the demand from computer related applications to grow
strongly while communication related applications will take a pause
after two consecutive quarters' strong momentum, and consumer
applications will decline following their seasonal pattern," said
Lora Ho, VP and Chief Financial Officer of TSMC. "Based on our
current business outlook, management expects overall performance
for fourth quarter 2009 to be as follows: -- Revenue is expected to
be between NT$90 billion and NT$92 billion; -- Gross profit margin
is expected to be between 47% and 48.5%; -- Operating profit margin
is expected to be between 35.5% and 37%." Lora Ho further said:
"Due to stronger demand for 40-nanometer and 65-nanometer
technologies, TSMC 2009 capital expenditure is further raised and
is expected to be around US$2.7 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,
October 29, 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 1-617-614-3518 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 3Q09 Quarterly
Management Report October 29, 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) 3Q09 2Q09 3Q08 QoQ YoY EPS (NT$ per common
share) 1.18 0.94 1.17 24.8% 0.3% (US$ per ADR unit) 0.18 0.14 0.19
-- -- Consolidated Net Sales 89.94 74.21 92.98 21.2% (3.3%) Gross
Profit 42.86 34.30 43.09 25.0% (0.5%) Gross Margin 47.7% 46.2%
46.3% -- -- Operating Expense (10.87) (9.17) (10.18) 18.6% 6.9%
Operating Income 31.99 25.13 32.91 27.3% (2.8%) Operating Margin
35.6% 33.9% 35.4% -- -- Non-Operating Items 0.97 1.26 1.51 -- --
Net Income 30.55 24.44 30.57 25.0% (0.1%) Net Profit Margin 34.0%
32.9% 32.9% -- -- Wafer Shipment (kpcs 8 inch-equiv.) 2,445 1,971
2,411 24.0% 1.4% Note: Total outstanding shares were 25,901mn units
on 9/30/09 Financial Highlights: Third Quarter 2009 -- Consolidated
net sales were NT$89.94 billion, representing a 21.2% growth from
NT$74.21 billion in 2Q09 and a 3.3% decline from NT$92.98 billion
in 3Q08. -- Gross margin was 47.7%, 1.5 percentage points higher
than 2Q09 and 1.4 percentage points higher than 3Q08. -- Operating
margin was 35.6%, 1.7 percentage points higher than 2Q09 and 0.2
percentage point higher than 3Q08. Operating expenses were NT$10.87
billion, NT$1.7 billion and NT$0.69 billion higher than prior and
year-ago quarter, respectively. -- The combined result from
non-operating income and long-term investments was a gain of
NT$0.97 billion, comparing with a gain of NT$1.26 billion in 2Q09
and a gain of NT$1.51 billion in 3Q08. -- Consolidated net income
attributable to shareholders of the parent company was NT$30.55
billion, 25.0% increase from prior quarter. Net profit margin was
34.0% and diluted EPS was NT$1.18. I. Revenue Analysis I. Wafer
Sales Analysis By Application 3Q09 2Q09 3Q08 Computer 30% 28% 33%
Communication 46% 45% 41% Consumer 18% 21% 20% Industrial/Others 6%
6% 6% By Technology 3Q09 2Q09 3Q08 45/40nm 4% 1% 0% 65nm 31% 28%
25% 90nm 18% 23% 26% 0.11/0.13um 14% 13% 15% 0.15/0.18um 21% 23%
22% 0.25/0.35um 9% 9% 9% 0.50um+ 3% 3% 3% By Customer Type 3Q09
2Q09 3Q08 Fabless/System 80% 82% 70% IDM 20% 18% 30% By Geography
3Q09 2Q09 3Q08 North America 70% 65% 74% Asia Pacific 13% 18% 11%
China 3% 3% 1% Europe 11% 11% 11% Japan 3% 3% 3% Revenue Analysis:
3Q09 business saw a continued improvement with demand growing
across the board. Sequentially, revenues from computer applications
grew the most with 29% quarter-over-quarter growth rate, followed
by communication's 25% and consumer's 11%, respectively. As a
result of continued ramp-up of our 40/45nm technology, revenues
from 40/45nm were more than quadrupled during the quarter and
accounted for 4% of total wafer sales. Meanwhile, revenues from
65nm and 90nm each accounted for 31% and 18% of total wafer sales.
Overall, revenues from advanced technologies (0.13-micron and
below) represented 67% of total wafer sales, two percentage points
up from prior quarter. Revenues from IDM customers accounted for
20% of total wafer sales in 3Q09, two percentage points increase
from 2Q09. From a geographic perspective, revenues from customers
based in North America accounted for 70% of total wafer sales, five
percentage points up from prior quarter. Meanwhile, sales from Asia
Pacific, China, Europe and Japan accounted for 13%, 3%, 11%, and 3%
of total wafer sales, respectively. II. Profit & Expense
Analysis II - 1. Gross Profit Analysis (In NT billions) 3Q09 2Q09
3Q08 COGS 47.08 39.91 49.89 Depreciation 18.37 18.54 19.06 Other
MFG Cost 28.71 21.37 30.83 Gross Profit 42.86 34.30 43.09 Gross
Margin 47.7% 46.2% 46.3% Gross Profit Analysis: Gross margin for
the third quarter 2009 was 47.7%, up from 46.2% of prior quarter.
The 1.5 percentage points improvement in gross margin was primarily
due to a higher level of capacity utilization and continued cost
improvement, partially offset by a decline in pure price and
unfavorable exchange rate. II - 2. Operating Expenses (In NT
billions) 3Q09 2Q09 3Q08 Total Operating Exp. 10.87 9.17 10.18
SG&A 4.67 4.07 4.20 Research & Development 6.20 5.10 5.98
Total Operating Exp. as a % of Sales 12.1% 12.3% 10.9% Operating
Expenses: Total operating expenses for 3Q09 increased by NT$1.70
billion to NT$10.87 billion, representing 12.1% of net sales,
better than 12.3% of net sales in 2Q09. SG&A expenses increased
by NT$0.60 billion from 2Q09. The increase was mainly due to higher
legal fee and a one-time donation. Research and development
expenditures increased by NT$1.1 billion sequentially, primarily
due to increased activities in 28nm and 22nm technology
development. II - 3. Non-Operating Items (In NT billions) 3Q09 2Q09
3Q08 Non-Operating Inc./(Exp.) 0.52 1.15 1.33 Net Interest
Income/(Exp.) 0.42 0.56 1.15 Other Non-Operating 0.10 0.59 0.18 L-T
Investments 0.45 0.11 0.18 SSMC 0.26 0.19 0.15 Others 0.19 (0.08)
0.03 Total Non-Operating Items 0.97 1.26 1.51 Non-Operating Items:
Combined result from non-operating income and long-term investments
was a gain of NT$0.97 billion for third quarter 2009. Non-operating
income was NT$0.52 billion, lower than NT$1.15 billion in 2Q09. The
sequential decline was primarily due to the absence of litigation
compensation and less interest income. Net investment gain was
NT$0.45 billion, higher than NT$0.11 billion of prior quarter,
mainly due to continued business improvement among invested
companies. III. Financial Condition Review III - 1. Liquidity
Analysis (Selected Balance Sheet Items) (In NT billions) 3Q09 2Q09
3Q08 Cash & Marketable Securities 180.32 246.77 158.17 Accounts
Receivable - Trade 35.88 33.38 45.33 Inventory 19.18 18.97 21.82
Total Current Assets 244.24 309.42 232.35 Accounts Payable 26.30
25.96 17.75 Current Portion of Bonds Payable 0.00 0.00 8.00
Dividends Payable 0.00 77.17 0.00 Accrued Bonus to Employees 8.62
11.49 13.28 Accrued Liabilities and Others 20.09 15.01 23.10 Total
Current Liabilities 55.01 129.63 62.13 Current Ratio (x) 4.4 2.4
3.7 Net Working Capital 189.23 179.79 170.22 Liquidity Analysis: At
the end of 3Q09, total cash and marketable securities decreased by
NT$66.45 billion to NT$180.32 billion. We paid NT$76.88 billion for
cash dividends and generated NT$14.62 billion of free cash flow
during this quarter. Total current liabilities decreased by
NT$74.62 billion in this quarter, primarily due to payment of cash
dividends. Net working capital was NT$189.23 billion and current
ratio increased to 4.4x. III - 2. Receivable/Inventory Days (In
Number of Days) 3Q09 2Q09 3Q08 Days of Receivable 36 30 43 Days of
Inventory 41 42 45 Receivable and Inventory Days: Sequentially,
days of receivable increased by six days to 36 days in 3Q09, mainly
due to average accounts receivable growing faster than sales. The
quality of collection remains the same. Days of inventory decreased
by one day to 41 days. III - 3. Debt Service (In NT billions) 3Q09
2Q09 3Q08 Cash & Marketable Securities 180.32 246.77 158.17
Interest-Bearing Debt 15.33 15.57 23.41 Net Cash Reserves 164.99
231.20 134.76 Debt Service: Net cash reserves, defined as the
excess of cash and short-term marketable securities over
interest-bearing debt, decreased by NT$66.21 billion to NT$164.99
billion at the end of 3Q09, primarily due to cash dividend payment,
net off by free cash flow generated during this quarter. IV. Cash
Flow IV - 1.1. Cash Flow Analysis (In NT billions) 3Q09 2Q09 3Q08
Net Income 30.55 24.44 30.57 Depreciation & Amortization 20.00
20.05 20.69 Employee Profit Sharing Payment* (7.49) n.a n.a Other
Operating Sources/(Uses) 3.60 (19.97) 4.64 Total Operating
Sources/(Uses) 46.66 24.52 55.90 Capital Expenditure (32.04) (7.42)
(10.38) Marketable Financial Instruments (18.94) 1.68 (18.07) Other
Investing Sources/(Uses) (0.53) (0.25) 1.93 Net Investing
Sources/(Uses) (51.51) (5.99) (26.52) Cash Dividends (76.88) 0.00
(76.78) Employee Profit Sharing Payment* n.a n.a (3.94) Purchase of
Treasury Stock 0.00 0.00 (23.81) Other Financing Sources/(Uses)
(0.11) (0.34) (0.43) Net Financing Sources/(Uses) (76.99) (0.34)
(104.96) Net Cash Position Changes (81.84) 18.19 (75.58) Exchange
Rate Changes & Others (0.74) (1.93) 2.68 Ending Cash Balance
156.94 239.52 112.45 *Starting 2008, Taiwan accounting rule
requires company to expense employee profit sharing Summary of Cash
Flow: Cash generated from operating activities totaled NT$46.66
billion during the quarter, up from NT$24.52 billion in 2Q09 as a
result of higher level of business activities, partially offset by
NT$7.49 billion for 2008 employee profit sharing payment. Net cash
used in investing activities was NT$51.51 billion in 3Q09,
reflecting the capital expenditures of NT$32.04 billion and
investments in fixed income instruments of NT$14.83 billion. Net
cash used in financing activities was NT$76.99 billion during the
quarter, as we paid NT$76.88 billion for cash dividends. As a
result, TSMC ended 3Q09 with a cash balance of NT$156.94 billion.
IV - 2. Operating and Free Cash Flows: Operating and Free Cash
Flows: Cash flows generated from operating activities were NT$46.66
billion during the quarter. Free cash flow, defined as the excess
of operating cash flows over capital expenditures, totaled NT$14.62
billion in 3Q09, compared to NT$17.10 billion in 2Q09. 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 3Q09 YTD TSMC 161 218 963 1342 XinTec and GUC 2 3 6 11
TSMC Shanghai & WaferTech 3 3 0 6 Other TSMC Subsidiaries 0 0 2
2 Total TSMC 166 224 971 1361 Capital Expenditures: Capital
expenditures for TSMC on a consolidated basis totaled US$971
million in 3Q09. First quarter through third quarter 2009, total
capital expenditures reached US$1.36 billion. Due to stronger
demand for 40nm and 65nm technologies, TSMC 2009 capital
expenditures are further raised and expected to be around US$2.7
billion. V - 2. Capacity 2008 1Q09 2Q09 3Q09 4Q09 2009 Fab / (Wafer
size) (A) (A) (A) (A) (F) (F) Fab-2 (6") Note 1 1,056 274 280 283
283 1,121 Fab-3 (8") 1,100 286 289 292 283 1,150 Fab-5 (8") 650 162
149 144 144 599 Fab-6 (8") 1,082 295 284 287 287 1,154 Fab-8 (8")
1,076 275 271 265 255 1,066 Fab-12 (12") Note 2 840 218 219 199 243
879 Fab-14 (12") Note 2 818 238 238 239 243 958 WaferTech (8") 420
106 107 109 109 431 TSMC China (8") 453 128 134 135 135 531 TSMC
total capacity (8" equiv. Kpcs) 9,104 2,431 2,419 2,379 2,467 9,695
SSMC (8") 272 64 65 65 65 259 Total managed capacity (8" equiv.
Kpcs) 9,377 2,495 2,483 2,444 2,532 9,955 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 2,444K 8-inch equivalent wafers in the third quarter,
decreased by 1.6% from 2,483K in 2Q09, mainly due to capacity
migration to advanced nodes. TSMC managed capacity in 4Q09 is
expected to increase by 3.6% to reach 2,532K 8-inch equivalent
wafers. Total managed capacity in 2009 is expected to reach 9,955K
8-inch equivalent wafers, representing an increase of 6.2% from
9,377K 8-inch equivalent wafers in 2008, while capacity for 12-inch
wafer fabs is expected to increase by 11% year-over-year, reaching
42% of total capacity. VI. Recap of Recent Important Events &
Announcements -- TSMC Collaborates With Suppliers To Complete
Taiwan's First Supply Chain Carbon Inventory. (2009/09/21) --
Fujitsu Microelectronics and TSMC To Collaborate On 28nm Process
Technology. (2009/08/27) -- TSMC Has Become the First Foundry Not
Only To Achieve 28nm Functional 64Mb SRAM Yield, But Also To
Achieve It Across All Three 28nm Nodes. (2009/8/24) -- TSMC Adds
High-K Metal Gate Low Power Process To 28nm Road Map. Risk
Production Is Expected In Q3 2010. (2009/08/24) -- IDT And TSMC
Enter Product Fabrication Agreement. (2009/08/06) -- TSMC Extends
Design Methodology Leadership To 28nm With Reference Flow 10.0.
(2009/07/22) 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)
September 30, 2009 June 30, 2009 (unaudited) (audited) ASSETS USD
NTD % NTD % Current Assets Cash and Cash Equivalents $4,874
$156,935 29.0 $239,517 40.8 Investments in Marketable Financial
Instruments 726 23,384 4.3 7,252 1.2 Accounts Receivable - Trade
1,114 35,881 6.6 33,384 5.7 Inventories, Net 596 19,176 3.5 18,974
3.2 Other Current Assets 275 8,865 1.7 10,292 1.8 Total Current
Assets 7,585 244,241 45.1 309,419 52.7 Long-Term Investments 1,197
38,553 7.1 32,498 5.5 Properties, Plant and Equipment 28,318
911,844 168.3 881,897 150.1 Less: Accumulated Depreciation (20,963)
(675,028) (124.6) (656,826) (111.8) Properties, Plant and
Equipment, Net 7,355 236,816 43.7 225,071 38.3 Other Assets 692
22,287 4.1 20,555 3.5 Total Assets $16,829 $541,897 100.0 $587,543
100.0 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities
Accounts Payables $330 $10,633 2.0 $10,105 1.7 Payables to
Contractors and Equipment Suppliers 486 15,666 2.9 15,853 2.7
Accrued Expenses and Other Current Liabilities 882 28,401 5.2
103,363 17.6 Current Portion of Bonds Payable and Long-Term Debts
10 309 0.1 309 0.1 Total Current Liabilities 1,708 55,009 10.2
129,630 22.1 Bonds Payable 140 4,500 0.8 4,500 0.8 Other Long-Term
Liabilities 489 15,761 2.9 16,060 2.7 Total Liabilities 2,337
75,270 13.9 150,190 25.6 Shareholders' Equity Attributable to
Shareholders of the Parent Capital Stock at Par Value 8,044 259,007
47.8 258,964 44.1 Capital Surplus 1,722 55,440 10.2 55,331 9.4
Legal Capital Reserve (2) 2,401 77,317 14.3 77,317 13.2 Special
Capital Reserve (2) -- -- -- -- -- Unappropriated Earnings (2)
2,233 71,899 13.3 41,348 7.0 Treasury Stock -- -- -- -- -- Others
(24) (778) (0.2) 801 0.1 Total Equity Attributable to Shareholders
of the Parent 14,376 462,885 85.4 433,761 73.8 Minority Interests
116 3,742 0.7 3,592 0.6 Total Shareholders' Equity 14,492 466,627
86.1 437,353 74.4 Total Liabilities & Shareholders' Equity
$16,829 $541,897 100.0 $587,543 100.0 Note: (1) Amounts in New
Taiwan dollars have been translated into U.S. dollars at the rate
of NT$32.2 as of September 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) September 30, 2008 (unaudited) QoQ YoY ASSETS NTD %
Amount % Amount % Current Assets Cash and Cash Equivalents $112,446
20.4 ($82,582) (34.5) $44,489 39.6 Investments in Marketable
Financial Instruments 45,724 8.3 16,132 222.4 (22,340) (48.9)
Accounts Receivable - Trade 45,333 8.2 2,497 7.5 (9,452) (20.9)
Inventories, Net 21,817 4.0 202 1.1 (2,641) (12.1) Other Current
Assets 7,029 1.3 (1,427) (13.9) 1,836 26.1 Total Current Assets
232,349 42.2 (65,178) (21.1) 11,892 5.1 Long-Term Investments
41,874 7.6 6,055 18.6 (3,321) (7.9) Properties, Plant and Equipment
849,818 154.5 29,947 3.4 62,026 7.3 Less: Accumulated Depreciation
(597,523) (108.6) (18,202) 2.8 (77,505) 13.0 Properties, Plant and
Equipment, Net 252,295 45.9 11,745 5.2 (15,479) (6.1) Other Assets
23,481 4.3 1,732 8.4 (1,194) (5.1) Total Assets $549,999 100.0
($45,646) (7.8) ($8,102) (1.5) LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities Accounts Payables $9,671 1.8 $528 5.2 $962 10.0
Payables to Contractors and Equipment Suppliers 8,082 1.4 (187)
(1.2) 7,584 93.8 Accrued Expenses and Other Current Liabilities
36,124 6.6 (74,962) (72.5) (7,723) (21.4) Current Portion of Bonds
Payable and Long-Term Debts 8,258 1.5 -- (0.1) (7,949) (96.3) Total
Current Liabilities 62,135 11.3 (74,621) (57.6) (7,126) (11.5)
Bonds Payable 4,500 0.8 -- -- -- -- Other Long-Term Liabilities
17,541 3.2 (299) (1.9) (1,780) (10.1) Total Liabilities 84,176 15.3
(74,920) (49.9) (8,906) (10.6) Shareholders' Equity Attributable to
Shareholders of the Parent Capital Stock at Par Value 259,042 47.1
43 0.0 (35) (0.0) Capital Surplus 50,463 9.2 109 0.2 4,977 9.9
Legal Capital Reserve (2) 67,324 12.2 -- -- 9,993 14.8 Special
Capital Reserve (2) 392 0.1 -- -- (392) (100.0) Unappropriated
Earnings (2) 103,063 18.7 30,551 73.9 (31,164) (30.2) Treasury
Stock (16,500) (3.0) -- -- 16,500 (100.0) Others (1,708) (0.3)
(1,579) (197.1) 930 (54.5) Total Equity Attributable to
Shareholders of the Parent 462,076 84.0 29,124 6.7 809 0.2 Minority
Interests 3,747 0.7 150 4.2 (5) (0.2) Total Shareholders' Equity
465,823 84.7 29,274 6.7 804 0.2 Total Liabilities &
Shareholders' Equity $549,999 100.0 ($45,646) (7.8) ($8,102) (1.5)
Note: (1) Amounts in New Taiwan dollars have been translated into
U.S. dollars at the rate of NT$32.2 as of September 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 September 30, 2009,
June 30, 2009, September 30, 2008 (Expressed in Millions of New
Taiwan Dollars (NTD) and U.S. Dollars (USD) (1) Except for Per
Share Amounts and Shares Outstanding) 3Q 2009 2Q 2009 USD NTD % NTD
% Net Sales $2,742 $89,936 100.0 $74,212 100.0 Cost of Sales
(1,435) (47,078) (52.3) (39,916) (53.8) Gross Profit 1,307 42,858
47.7 34,296 46.2 Operating Expenses Research and Development
Expenses (189) (6,202) (6.9) (5,096) (6.9) General and
Administrative Expenses (108) (3,541) (3.9) (2,881) (3.8) Sales and
Marketing Expenses (35) (1,131) (1.3) (1,192) (1.6) Total Operating
Expenses (332) (10,874) (12.1) (9,169) (12.3) Income from
Operations 975 31,984 35.6 25,127 33.9 Non-Operating Income, Net 16
519 0.5 1,156 1.6 Investment Gains 14 454 0.5 106 0.1 Income before
Income Tax 1,005 32,957 36.6 26,389 35.6 Income Tax Expenses (70)
(2,285) (2.5) (1,943) (2.7) Net Income 935 30,672 34.1 24,446 32.9
Minority Interests (3) (121) (0.1) (4) -- Net Income Attributable
to Shareholders of the Parent 932 30,551 34.0 24,442 32.9 Earnings
per Share - Diluted $0.04 $1.18 -- $0.94 -- Earnings per ADR -
Diluted (2) $0.18 $5.88 -- $4.71 -- Weighted Average Outstanding
Shares - Diluted ('M) (3) -- 25,984 -- 25,944 -- Note: (1) Amounts
in New Taiwan dollars have been translated into U.S. dollars at the
weighted average rate of NTD32.797 for the third quarter of 2009.
(2) 1 ADR equals 5 ordinary shares. (3) Total diluted weighted
average outstanding shares were 26,070M shares for 3Q08 after the
retroactive adjustments for stock dividends TAIWAN SEMICONDUCTOR
MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Unaudited
Consolidated Condensed Income Statements For the Three Months Ended
September 30, 2009, June 30, 2009, September 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) 3Q
2008 QoQ YoY NTD % Amount % Amount % Net Sales $92,979 100.0
$15,724 21.2 ($3,043) (3.3) Cost of Sales (49,885) (53.7) (7,162)
17.9 2,807 (5.6) Gross Profit 43,094 46.3 8,562 25.0 (236) (0.5)
Operating Expenses Research and Development Expenses (5,981) (6.4)
(1,106) 21.7 (221) 3.7 General and Administrative Expenses (2,979)
(3.2) (660) 22.9 (562) 18.9 Sales and Marketing Expenses (1,217)
(1.3) 61 (5.1) 86 (7.0) Total Operating Expenses (10,177) (10.9)
(1,705) 18.6 (697) 6.9 Income from Operations 32,917 35.4 6,857
27.3 (933) (2.8) Non-Operating Income, Net 1,328 1.4 (637) (55.1)
(809) (60.9) Investment Gains 185 0.2 348 328.8 269 144.5 Income
before Income Tax 34,430 37.0 6,568 24.9 (1,473) (4.3) Income Tax
Expenses (3,658) (3.9) (342) 17.6 1,373 (37.5) Net Income 30,772
33.1 6,226 25.5 (100) (0.3) Minority Interests (198) (0.2) (117)
3055.4 77 (38.8) Net Income Attributable to Shareholders of the
Parent 30,574 32.9 6,109 25.0 (23) (0.1) Earnings per Share -
Diluted $1.17 -- $0.24 24.8 $0.01 0.3 Earnings per ADR - Diluted
(2) $5.86 -- $1.17 24.8 $0.02 0.3 Weighted Average Outstanding
Shares - Diluted ('M) (3) 26,070 -- -- -- -- -- Note: (1) Amounts
in New Taiwan dollars have been translated into U.S. dollars at the
weighted average rate of NTD32.797 for the third quarter of 2009.
(2) 1 ADR equals 5 ordinary shares. (3) Total diluted weighted
average outstanding shares were 26,070M shares for 3Q08 after the
retroactive adjustments for stock dividends TAIWAN SEMICONDUCTOR
MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Audited Consolidated
Condensed Income Statements For the Nine Months Ended September 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 Nine Months Ended September 30 2009 2008 USD
NTD % NTD % Net Sales $6,148 $203,648 100.0 $268,595 100.0 Cost of
Sales (3,593) (119,014) (58.4) (147,041) (54.7) Gross Profit 2,555
84,634 41.6 121,554 45.3 Operating Expenses Research and
Development Expenses (454) (15,026) (7.4) (16,655) (6.2) General
and Administrative Expenses (242) (8,017) (4.0) (8,811) (3.3) Sales
and Marketing Expenses (98) (3,271) (1.6) (3,674) (1.4) Total
Operating Expenses (794) (26,314) (13.0) (29,140) (10.9) Income
from Operations 1,761 58,320 28.6 92,414 34.4 Non-Operating Income,
Net 61 2,028 1.0 4,923 1.8 Investment Gains (Losses) (8) (253)
(0.1) 1,042 0.4 Income before Income Tax 1,814 60,095 29.5 98,379
36.6 Income Tax Expenses (105) (3,489) (1.7) (10,497) (3.9) Net
Income 1,709 56,606 27.8 87,882 32.7 Minority Interests (2) (54) --
(395) (0.1) Net Income Attributable to Shareholders of the Parent
1,707 56,552 27.8 87,487 32.6 Earnings per Share - Diluted $0.07
$2.18 -- $3.33 -- Earnings per ADR - Diluted (2) $0.33 $10.88 --
$16.64 -- Weighted Average Outstanding Shares - Diluted ('M) (3) --
25,981 -- 26,290 -- Note: (1) Amounts in New Taiwan dollars have
been translated into U.S. dollars at the weighted average rate of
NTD 33.122 for the nine months ended September 30, 2009. (2) 1 ADR
equals 5 ordinary shares. (3) Total diluted weighted average
outstanding shares were 26,290M shares for the nine months ended
September 30, 2008 after the retroactive adjustment for stock
dividends. TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND
SUBSIDIARIES Audited Consolidated Condensed Income Statements For
the Nine Months Ended September 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 Nine Months Ended September 30 YoY Amount % Net Sales
($64,947) (24.2) Cost of Sales 28,027 (19.1) Gross Profit (36,920)
(30.4) Operating Expenses Research and Development Expenses 1,629
(9.8) General and Administrative Expenses 794 (9.0) Sales and
Marketing Expenses 403 (11.0) Total Operating Expenses 2,826 (9.7)
Income from Operations (34,094) (36.9) Non-Operating Income, Net
(2,895) (58.8) Investment Gains (Losses) (1,295) (124.3) Income
before Income Tax (38,284) (38.9) Income Tax Expenses 7,008 (66.8)
Net Income (31,276) (35.6) Minority Interests 341 (86.3) Net Income
Attributable to Shareholders of the Parent (30,935) (35.4) Earnings
per Share - Diluted ($1.15) (34.6) Earnings per ADR - Diluted (2)
($5.76) (34.6) 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
33.122 for the nine months ended September 30, 2009. (2) 1 ADR
equals 5 ordinary shares. (3) Total diluted weighted average
outstanding shares were 26,290M shares for the nine months ended
September 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 September 30, 2009 and for the Three Months
Ended September 30, 2009, June 30, 2009, and September 30, 2008
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars
(USD))(1) Nine Months 2009 3Q 2009 2Q 2009 3Q 2008 (unaudited)
(unaudited)(unaudited)(unaudited) USD NTD NTD NTD NTD Cash Flows
from Operating Activities: Net Income $1,707 $56,552 $30,551
$24,442 $30,574 Net Income Attributable to Minority Interest 2 54
121 4 198 Depreciation & Amortization 1,828 60,537 20,001
20,053 20,686 Deferred Income Tax (34) (1,122) (426) 697 410 Equity
in Losses (Earnings) of Equity Method Investees, Net 8 253 (454)
(106) (185) Changes in Working Capital & Others (553) (18,307)
(3,138) (20,566) 4,220 Net Cash Provided by Operating Activities
2,958 97,967 46,655 24,524 55,903 Cash Flows from Investing
Activities: Acquisitions of: Marketable Financial Instruments (937)
(31,046) (20,827) (968) (40,201) Investments Accounted for Using
Equity Method (1) (32) (32) -- (55) Property, Plant and Equipment
(1,361) (45,070) (32,038) (7,415) (10,378) Financial Assets Carried
at Cost (8) (271) (139) (48) (87) Proceeds from Disposal or
maturity of: Marketable Financial Instruments 833 27,591 1,886
2,651 22,126 Property, Plant and Equipment -- 7 2 3 140 Financial
Assets Carried at Cost 3 94 19 75 -- Others (20) (640) (381) (291)
1,930 Net Cash Used In Investing Activities (1,491) (49,367)
(51,510) (5,993) (26,525) Cash Flows from Financing Activities:
Decrease in Guarantee Deposits (10) (327) (77) (86) (83) Proceeds
from Exercise of Stock Options 6 191 162 14 51 Bonus Paid to
Directors and Supervisors -- -- -- -- (177) Repayment of Long- Term
Bonds Payable (242) (8,000) -- -- -- Cash Dividends Paid for Common
Stock (2,321) (76,876) (76,876) -- (76,779) Repurchase of Treasury
Stock -- -- -- -- (23,812) Cash Bonus Paid to Employees -- -- -- --
(3,940) Others (5) (182) (191) (265) (222) Net Cash Used in
Financing Activities (2,572) (85,194) (76,982) (337) (104,962) Net
Increase (Decrease) in Cash and Cash Equivalents (1,105) (36,594)
(81,837) 18,194 (75,584) Effect of Exchange Rate Changes and Others
(33) (1,085) (745) (1,939) 2,684 Cash and Cash Equivalents at
Beginning of Period 5,876 194,614 239,517 223,262 185,346 Cash and
Cash Equivalents at End of Period $4,738 $156,935 $156,935 $239,517
$112,446 Note: (1) Amounts in New Taiwan dollars have been
translated into U.S. dollars at the weighted average rate of
NTD33.122 for the nine months ended September 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
Investor Relations Division TSMC Email: Tel: +886-3-568-2085
DATASOURCE: Taiwan Semiconductor Manufacturing Company Limited
CONTACT: Elizabeth Sun, Investor Relations Division of TSMC,
+886-3-568-2085, or
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