6-K 1 h04381e6vk.htm 6-K e6vk
1934 Act Registration No. 1-14700
 
 
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of July 2010
Taiwan Semiconductor Manufacturing Company Ltd.
(Translation of Registrant’s Name Into English)
No. 8, Li-Hsin Rd. 6,
Hsinchu Science Park,
Taiwan
(Address of Principal Executive Offices)
     (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
     Form 20-F þ                               Form 40-F o
     (Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
     Yes o                               No þ
(If “Yes” is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82:                     .)
 
 

 

 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  Taiwan Semiconductor Manufacturing Company Ltd.
 		  
Date: July 29, 2010  By   /s/ Lora Ho    
    Lora Ho   
    Vice President & Chief Financial Officer   
 

 

 

FOR IMMEDIATE RELEASE
         
(TSMC LOGO)
  2Q10   Quarterly Management Report
July 29, 2010
CONTACT
Elizabeth Sun
Investor Relations Division
TSMC
invest@tsmc.com
886-3-568-2085
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)		   2Q10   1Q10   2Q09   QoQ   YoY
EPS (NT$  per common share)
     1.55       1.30       0.94       19.7 %     65.0 %
(US$  per ADR unit)
     0.24       0.20       0.14                  
 
                                        
Consolidated Net Sales
     104.96       92.19       74.21       13.9 %     41.4 %
Gross Profit
     51.93       44.19       34.30       17.5 %     51.4 %
Gross Margin
     49.5 %     47.9 %     46.2 %                
 
                                        
Operating Expense
     (11.46 )     (10.06 )     (9.17 )     13.9 %     25.0 %
Operating Income
     40.47       34.13       25.13       18.6 %     61.1 %
Operating Margin
     38.6 %     37.0 %     33.9 %    
Non-Operating Items
     1.94       1.18       1.26                  
 
                                        
Net Income
     40.28       33.66       24.44       19.7 %     64.8 %
Net Profit Margin
     38.4 %     36.5 %     32.9 %    
 
                                        
Wafer Shipment (kpcs 8 inch-equiv.)
     2,927       2,547       1,971       14.9 %     48.5 %
Note: Total outstanding shares were 25,905mn units on 6/30/10
Financial Highlights:
Second Quarter 2010
•   Consolidated net sales were NT$104.96 billion, representing a 13.9% increase from NT$92.19 billion in 1Q10 and a 41.4% increase from NT$74.21 billion in 2Q09.
 
•   Gross margin was 49.5%, up 1.6 percentage points from 1Q10, and up 3.3 percentage points from 2Q09.
 
•   Operating margin was 38.6%, 1.6 percentage points higher than 1Q10 and 4.7 percentage points higher than 2Q09.
 
•   Non-operating income and long-term investment combined were a gain of NT$1.94 billion, compared to a gain of NT$1.18 billion in 1Q10, and NT$1.26 billion in 2Q09.
 
•   Consolidated net income attributable to shareholders of the parent company was NT$40.28 billion, up 19.7% from 1Q10. Net profit margin was 38.4% and diluted EPS was NT$1.55.

 

 

TSMC    
July 29, 2010   Page 2
I. Revenue Analysis
I. Wafer Sales Analysis
                         
By Application   2Q10   1Q10   2Q09
Computer
     29 %     32 %     26 %
Communication
     41 %     39 %     42 %
Consumer
     15 %     14 %     18 %
Industrial/Others
     15 %     15 %     14 %
                         
By Technology   2Q10   1Q10   2Q09
40/45nm
     16 %     14 %     1 %
65nm
     27 %     27 %     28 %
90nm
     16 %     17 %     23 %
0.11/0.13um
     13 %     13 %     13 %
0.15/0.18um
     17 %     18 %     23 %
0.25/0.35um
     8 %     8 %     9 %
0.50um+
     3 %     3 %     3 %
                         
By Customer Type   2Q10   1Q10   2Q09
Fabless/System
     79 %     77 %     82 %
IDM
     21 %     23 %     18 %
                         
By Geography   2Q10   1Q10   2Q09
North America
     66 %     68 %     65 %
Asia Pacific
     15 %     15 %     18 %
China
     3 %     2 %     3 %
Europe
     11 %     11 %     11 %
Japan
     5 %     4 %     3 %
Revenue Analysis:
2Q10 revenue was NT$104.96 billion, representing a 14% increase from 1Q10. Consumer was the strongest with a 26% sequential growth. Communication and Industrial grew 22% and 14% from the prior quarter, respectively, while Computer related applications grew 1%.
In terms of technology, revenues from all geometries grew sequentially. 40/45nm continued ramping and reached 16% of total wafer sales in 2Q10, from 14% in 1Q10. The revenue mix of 65nm and 90nm remained stable at 27% and 16% of total wafer sales, respectively. Revenues from 0.13-micron and below represented 72% of total wafer sales.
Revenues from IDM customers grew 11% sequentially, representing 21% of total wafer sales in 2Q10, compared with 23% in 1Q10 and 18% in 2Q09.
Revenues from all geographic locations grew strongly from the last quarter. Customers based in North America accounted for 66% of total wafer sales, followed by Asia Pacific with 15%. Europe, Japan and China accounted for 11%, 5%, and 3% of total wafer sales, respectively.
II. Profit & Expense Analysis
II — 1. Gross Profit Analysis
                         
(In NT billions)   2Q10   1Q10   2Q09
COGS
     53.03       48.00       39.91  
Depreciation
     19.26       19.22       18.54  
Other MFG Cost
     33.77       28.78       21.37  
 
                        
Gross Profit
     51.93       44.19       34.30  
 
                        
Gross Margin
     49.5 %     47.9 %     46.2 %
Gross Profit Analysis:
2Q10 gross margin reached 49.5%, up 1.6 percentage points from 1Q10, primarily due to higher capacity utilization and cost improvement, partially offset by an adverse inventory valuation adjustment under ROC SFAS No.10 and an increase in raw material costs.

 

 

     
TSMC    
July 29, 2010   Page 3
II — 2. Operating Expenses
                         
(In NT billions)   2Q10   1Q10   2Q09
Total Operating Exp.
     11.46       10.06       9.17  
 
                        
SG&A
     4.27       3.65       4.07  
 
                        
Research & Development
     7.19       6.41       5.10  
Total Operating Exp. as a % of Sales
     10.9 %     10.9 %     12.3 %
Operating Expenses:
Total operating expenses were NT$11.46 billion, representing 10.9% of 2Q10 net sales.
SG&A expenses increased NT$0.62 billion sequentially, in support of expanded business scale and activities.
Research and development expenditures were NT$0.78 billion higher compared with the prior quarter, reflecting a faster pace for the development of the most advanced technologies.
II — 3. Non-Operating Items
                         
(In NT billions)   2Q10   1Q10   2Q09
Non-Operating Inc./(Exp.)
     1.41       1.00       1.15  
Net Interest Income/(Exp.)
     0.33       0.32       0.56  
Other Non-Operating
     1.08       0.68       0.59  
 
                        
L-T Investments
     0.53       0.18       0.11  
SSMC
     0.33       0.19       0.19  
Others
     0.20       (0.01 )     (0.08 )
 
                        
Total Non-Operating Items
     1.94       1.18       1.26  
Non-Operating Items:
Total non-operating items were a gain of NT$1.94 billion for 2Q10.
Non-operating income was NT$1.41 billion, up NT$0.41 billion from 1Q10, primarily due to the absence of earthquake scrap loss in 1Q and higher disposal gain from financial assets.
Net investment gain was NT$0.53 billion, or NT$0.35 billion higher than the prior quarter, mostly due to business improvement among certain invested companies.
III. Financial Condition Review
III — 1. Liquidity Analysis
(Selected Balance Sheet Items)
                         
(In NT billions)   2Q10   1Q10   2Q09
Cash & Marketable Securities
     206.54       192.01       246.77  
Accounts Receivable — Trade
     48.06       39.77       33.38  
Inventory
     24.80       22.69       18.97  
Total Current Assets
     286.62       265.62       309.42  
Short-term Loans
     18.08       0.32       0.00  
Accounts Payable
     38.79       40.41       25.96  
Dividends Payable
     77.89       0.00       77.17  
Accrued Employee Profit Sharing / Bonus
     14.57       11.39       11.49  
Accrued Liabilities and Others
     16.94       26.06       15.01  
Total Current Liabilities
     166.27       78.18       129.63  
Current Ratio (x)
     1.7       3.4       2.4  
Net Working Capital
     120.35       187.44       179.79  
Liquidity Analysis:
At the end of 2Q10, cash and marketable securities totaled NT$206.54 billion, up NT$14.53 billion from 1Q10.
Accounts receivable increased NT$8.29 billion, along with stronger business activities in 2Q10.
Inventory grew NT$2.11 billion sequentially, in preparation for the higher demand level in 3Q10.
Total current liabilities increased NT$88.09 billion, primarily attributed to the increase in cash dividends payable and an increase in short-term loans, partially offset by the reduction in accrued liabilities (tax payable).
Net working capital was NT$120.35 billion and current ratio was 1.7x.

 

 

     
TSMC    
July 29, 2010   Page 4
III — 2. Receivable/Inventory Days
                         
(In Number of Days)   2Q10   1Q10   2Q09
Days of Receivable
     39       38       30  
Days of Inventory
     45       45       42  
Receivable and Inventory Days:
Days of receivable increased by one day to 39 days in 2Q10, while days of inventory stayed flat at 45 days.
III — 3. Debt Service
                         
(In NT billions)   2Q10   1Q10   2Q09
Cash & Marketable Securities
     206.54       192.01       246.77  
Interest-bearing Debt
     31.96       14.18       15.57  
     
Net Cash Reserves
     174.58       177.83       231.20  
Debt Service:
Net cash reserves, defined as cash and short-term marketable securities minus interest-bearing debt, decreased NT$3.25 billion to NT$174.58 billion in 2Q10. The decrease is mainly due to an increase of NT$17.76 billion in short-term loans, which more than offset the increase of NT$14.53 billion in cash and marketable securities. The purpose of the short-term loans was to hedge a portion of the company’s US dollar position.
IV. Cash Flow
IV — 1.1. Cash Flow Analysis
                         
(In NT billions)   2Q10   1Q10   2Q09
Net Income
     40.28       33.66       24.44  
Depreciation & Amortization
     21.13       21.00       20.05  
Other Operating Sources/(Uses)
     (12.48 )     (8.63 )     (19.97 )
Total Operating Sources/(Uses)
     48.93       46.03       24.52  
 
                        
 
                        
Capital Expenditure
     (52.72 )     (46.14 )     (7.42 )
Marketable Financial Instruments
     0.17       (3.64 )     1.68  
Long Term Investment
     (1.62 )     (6.23 )     n.a  
Other Investing Sources/(Uses)
     (0.04 )     (0.28 )     (0.25 )
Net Investing Sources/(Uses)
     (54.21 )     (56.29 )     (5.99 )
 
                        
 
                        
Proceeds from Short Term Loans
     17.76       0.32       0.00  
Other Financing Sources/(Uses)
     (0.15 )     (1.16 )     (0.34 )
Net Financing Sources/(Uses)
     17.61       (0.84 )     (0.34 )
 
                        
 
                        
Net Cash Position Changes
     12.33       (11.10 )     18.19  
 
                        
Exchange Rate Changes & Others
     0.36       (0.38 )     (1.93 )
 
                        
Ending Cash Balance
     172.49       159.80       239.52  
Summary of Cash Flow:
Cash generated from operating activities totaled NT$48.93 billion during the quarter, up NT$2.90 billion from 1Q10, mainly due to an increase in net income, partially offset by an increase in net working capital.
Net cash used in investing activities totaled NT$54.21 billion, which mainly represents capital expenditures of NT$52.72 and a long-term investment of NT$1.62 billion in Stion.
Net cash generated in financing activities totaled NT$17.61 billion during the quarter, mainly due to the proceeds from the aforementioned short-term loans.
As a result, TSMC ended 2Q10 with a cash balance of NT$172.49 billion.

 

 

     
TSMC    
July 29, 2010   Page 5
(BAR GRAPH)
Operating and Free Cash Flows:
Free cash flow, defined as the excess of operating cash flows over capital expenditures, was negative NT$3.79 billion in 2Q10.
V. CapEx & Capacity
V — 1. Capital Expenditures
                         
(In US millions)   1Q10   2Q10   YTD
TSMC
     1,433       1,645       3,078  
XinTec and GUC
     2       4       6  
TSMC China & WaferTech
     8       7       15  
Other TSMC Subsidiaries
     1       1       2  
     
Total TSMC
     1,444       1,657       3,101  
Capital Expenditures:
Capital expenditures for TSMC on a consolidated basis totaled US$1.66 billion in 2Q10.
Total capital expenditures in the first half of 2010 were US$3.10 billion.
V — 2. Capacity
                                                 
    2009   1Q10   2Q10   3Q10   4Q10   2010
Fab / (Wafer size)   (A)   (A)   (A)   (F)   (F)   (F)
Fab-2 (6")(1)
     1,121       254       236       255       255       1,000  
Fab-3 (8")
     1,150       267       282       300       300       1,149  
Fab-5 (8")
     599       139       144       141       141       564  
Fab-6 (8")
     1,154       269       280       282       282       1,113  
Fab-8 (8")
     1,066       247       253       254       255       1,009  
Fab-12 (12")(2)
     879       269       300       309       315       1,194  
Fab-14 (12")(2)
     958       261       299       357       395       1,313  
WaferTech (8")
     431       106       107       108       108       429  
TSMC China (8")
     531       132       134       145       147       557  
TSMC total capacity (8" equiv. Kpcs)
     9,695       2,497       2,680       2,872       2,974       11,023  
SSMC (8")
     259       69       69       69       69       276  
Total managed capacity (8" equiv. Kpcs)
     9,955       2,566       2,749       2,941       3,043       11,299  
 
(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:
Due to continuing strong demand for TSMC’s advanced technologies, TSMC has accelerated its capacity expansion plan for 2010. Current capacity plan calls for an overall increase by 14% to 11,299 8-inch equivalent wafers, compared with 11,247 8-inch equivalent wafers planned in the last quarter. 12-inch wafer capacity will increase 36% in 2010 under the current plan.
Total managed capacity was 2,749K 8-inch equivalent wafers in 2Q10, increased by 7% from 2,566K in 1Q10.

 

 

     
TSMC    
July 29, 2010   Page 6
VI. Recap of Recent Important Events & Announcements
•   TSMC Announces Automotive Qualified 0.25-Micron One-Time-Programmable IP (2010/06/30)
 
•   TSMC Sets July 6th as Common Share Ex-dividend Date (2010/06/21)
 
•   TSMC and Stion Sign Technology and Supply Agreement (2010/06/16)
 
•   TSMC Shareholders Approve NT$3.0 Cash Dividend and Sets July 12 as Record Date for Common Share Dividends (2010/06/15)
 
•   TSMC New Standard Cell Slim Library Reduces Logic Area 15% (2010/06/15)
 
•   TSMC Extends Open Innovation Platform™ and Unveils Three Immediate Design Enablement Initiatives (2010/06/07)
 
•   TSMC Announces 0.18-Micron Automotive Grade Embedded Flash IP (2010/05/27)
 
•   TSMC Board of Directors Approved Capital Appropriations to Expand Capacity and the Full Conversion of TSMC’s Common Shares into Paperless Form (2010/05/11)
 
•   TSMC Ships 600,000 0.25-Micron Automotive-Qualified Embedded Flash Wafers (2010/04/21)
 
•   TSMC Announces Move to 20nm Process (2010/04/14)
 
•   TSMC Delivers Interoperable EDA Formats for Advanced Process Technologies (2010/04/07)

 

 

     
(TSMC LOGO)
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, 2010 (audited)     March 31, 2010 (unaudited)     June 30, 2009 (audited)     QoQ     YoY  
    USD     NTD     %     NTD     %     NTD     %     Amount     %     Amount     %  
ASSETS
                                                                                        
Current Assets
                                                                                        
Cash and Cash Equivalents
   $ 5,344     $ 172,486       25.3     $ 159,800       25.5     $ 239,517       40.8     $ 12,686       7.9     $ (67,031 )     (28.0 )
Investments in Marketable Financial Instruments
     1,055       34,056       5.0       32,210       5.1       7,252       1.2       1,846       5.7       26,804       369.6  
Accounts Receivable — Trade
     1,489       48,062       7.1       39,771       6.3       33,384       5.7       8,291       20.8       14,678       44.0  
Inventories
     768       24,800       3.6       22,694       3.6       18,974       3.2       2,106       9.3       5,826       30.7  
Other Current Assets
     224       7,211       1.1       11,141       1.9       10,292       1.8       (3,930 )     (35.3 )     (3,081 )     (29.9 )
 
                                                                  
Total Current Assets
     8,880       286,615       42.1       265,616       42.4       309,419       52.7       20,999       7.9       (22,804 )     (7.4 )
 
                                                                  
 
                                                                                        
Long-term Investments
     1,269       40,962       6.0       39,763       6.3       32,498       5.5       1,199       3.0       8,464       26.0  
 
                                                                                        
Properties, Plant and Equipment
     32,930       1,062,915       156.1       1,012,982       161.6       881,897       150.1       49,933       4.9       181,018       20.5  
Less: Accumulated Depreciation
     (22,754 )     (734,445 )     (107.8 )     (713,353 )     (113.8 )     (656,826 )     (111.8 )     (21,092 )     3.0       (77,619 )     11.8  
 
                                                                  
Properties, Plant and Equipment, Net
     10,176       328,470       48.3       299,629       47.8       225,071       38.3       28,841       9.6       103,399       45.9  
 
                                                                  
 
                                                                                        
Intangible and Other Assets
     766       24,729       3.6       21,821       3.5       20,555       3.5       2,908       13.3       4,174       20.3  
 
                                                                  
Total Assets
   $ 21,091     $ 680,776       100.0     $ 626,829       100.0     $ 587,543       100.0     $ 53,947       8.6     $ 93,233       15.9  
 
                                                                  
 
                                                                                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                                                                        
Current Liabilities
                                                                                        
Short-term Loans
   $ 560     $ 18,083       2.7     $ 318       —     $ —       —     $ 17,765       5582.0     $ 18,083          
Accounts Payables
     398       12,867       1.9       11,626       1.9       10,105       1.7       1,241       10.7       2,762       27.3  
Payables to Contractors and Equipment Suppliers
     803       25,922       3.8       28,785       4.6       15,853       2.7       (2,863 )     (9.9 )     10,069       63.5  
Accrued Expenses and Other Current Liabilities
     3,362       108,504       15.9       36,501       5.9       103,363       17.6       72,003       197.3       5,141       5.0  
Current Portion of Bonds Payable and Long-term Debts
     28       889       0.1       945       0.1       309       0.1       (56 )     (5.9 )     580       187.8  
 
                                                                  
Total Current Liabilities
     5,151       166,265       24.4       78,175       12.5       129,630       22.1       88,090       112.7       36,635       28.3  
 
                                                                  
Bonds Payable
     139       4,500       0.7       4,500       0.7       4,500       0.8       —       —       —       —  
Other Long-term Liabilities
     407       13,138       1.9       11,849       1.9       16,060       2.7       1,289       10.9       (2,922 )     (18.2 )
 
                                                                  
Total Liabilities
     5,697       183,903       27.0       94,524       15.1       150,190       25.6       89,379       94.6       33,713       22.4  
 
                                                                  
 
                                                                                        
Shareholders’ Equity Attributable to Shareholders of the Parent
                                                                                        
Capital Stock at Par Value
     8,026       259,050       38.0       259,038       41.3       258,964       44.1       12       0.0       86       0.0  
Capital Surplus
     1,721       55,567       8.2       55,531       8.9       55,331       9.4       36       0.1       236       0.4  
Legal Capital Reserve (2)
     2,672       86,239       12.7       77,317       12.3       77,317       13.2       8,922       11.5       8,922       11.5  
Special Capital Reserve (2)
     41       1,313       0.2       —       —       —       —       1,313               1,313          
Unappropriated Earnings (2)
     2,806       90,567       13.3       138,228       22.1       41,348       7.0       (47,661 )     (34.5 )     49,219       119.0  
Treasury Stock
     —       —       —       —       —       —       —       —               —          
Others
     (2 )     (52 )     —       (1,976 )     (0.3 )     801       0.1       1,924       (97.4 )     (853 )     (106.5 )
 
                                                                  
Equity Attributable to Shareholders of the Parent
     15,264       492,684       72.4       528,138       84.3       433,761       73.8       (35,454 )     (6.7 )     58,923       13.6  
Minority Interests
     130       4,189       0.6       4,167       0.6       3,592       0.6       22       0.5       597       16.6  
 
                                                                  
Total Shareholders’ Equity
     15,394       496,873       73.0       532,305       84.9       437,353       74.4       (35,432 )     (6.7 )     59,520       13.6  
 
                                                                  
Total Liabilities & Shareholders’ Equity
   $ 21,091     $ 680,776       100.0     $ 626,829       100.0     $ 587,543       100.0     $ 53,947       8.6     $ 93,233       15.9  
 
                                                                  
Note:
 
 
(1)   Amounts in New Taiwan dollars have been translated into U.S. dollars at the rate of NT$32.278 as of June 30, 2010.
 
(2)   Certain prior period balances have been reclassified to conform to the current period presentation.

 

 

     
(TSMC LOGO)
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended June 30, 2010, March 31, 2010, June 30, 2009
(Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”) (1)
Except for Per Share Amounts and Shares Outstanding)
                                                                                         
    2Q 2010     1Q 2010     2Q 2009     QoQ     YoY  
    USD     NTD     %     NTD     %     NTD     %     Amount     %     Amount     %  
Net Sales
   $ 3,299     $ 104,962       100.0     $ 92,187       100.0     $ 74,212       100.0     $ 12,775       13.9     $ 30,750       41.4  
Cost of Sales
     (1,667 )     (53,036 )     (50.5 )     (48,002 )     (52.1 )     (39,916 )     (53.8 )     (5,034 )     10.5       (13,120 )     32.9  
 
                                                                  
Gross Profit
     1,632       51,926       49.5       44,185       47.9       34,296       46.2       7,741       17.5       17,630       51.4  
 
                                                                  
Operating Expenses
                                                                                        
Research and Development Expenses
     (226 )     (7,190 )     (6.9 )     (6,410 )     (7.0 )     (5,096 )     (6.9 )     (780 )     12.2       (2,094 )     41.1  
General and Administrative Expenses
     (92 )     (2,931 )     (2.8 )     (2,472 )     (2.6 )     (2,881 )     (3.8 )     (459 )     18.6       (50 )     1.7  
Sales and Marketing Expenses
     (42 )     (1,337 )     (1.2 )     (1,175 )     (1.3 )     (1,192 )     (1.6 )     (162 )     13.6       (145 )     12.1  
 
                                                                  
Total Operating Expenses
     (360 )     (11,458 )     (10.9 )     (10,057 )     (10.9 )     (9,169 )     (12.3 )     (1,401 )     13.9       (2,289 )     25.0  
 
                                                                  
 
                                                                                        
Income from Operations
     1,272       40,468       38.6       34,128       37.0       25,127       33.9       6,340       18.6       15,341       61.1  
 
                                                                  
 
                                                                                        
Non-Operating Income, Net
     44       1,413       1.3       998       1.1       1,156       1.6       415       41.5       257       22.1  
Equity in Earnings of Equity Method Investees, Net
     17       529       0.5       177       0.2       106       0.1       352       198.8       423       400.3  
 
                                                                  
Income before Income Tax
     1,333       42,410       40.4       35,303       38.3       26,389       35.6       7,107       20.1       16,021       60.7  
 
                                                                                        
Income Tax Expenses
     (61 )     (1,943 )     (1.8 )     (1,478 )     (1.6 )     (1,943 )     (2.7 )     (465 )     31.6       0       0.0  
 
                                                                                        
 
                                                                  
Net Income
     1,272       40,467       38.6       33,825       36.7       24,446       32.9       6,642       19.6       16,021       65.5  
 
                                                                                        
Net Income Attributable to Minority Interests
     (6 )     (185 )     (0.2 )     (162 )     (0.2 )     (4 )     —       (23 )     13.6       (181 )     4693.7  
 
                                                                                        
 
                                                                  
Net Income Attributable to Shareholders of the Parent
     1,266       40,282       38.4       33,663       36.5       24,442       32.9       6,619       19.7       15,840       64.8  
 
                                                                  
 
                                                                                        
Earnings per Share — Diluted
   $ 0.05     $ 1.55             $ 1.30             $ 0.94             $ 0.25       19.7     $ 0.61       65.0  
 
                                                                        
Earnings per ADR — Diluted (2)
   $ 0.24     $ 7.77             $ 6.49             $ 4.71             $ 1.28       19.7     $ 3.06       65.0  
 
                                                                        
 
                                                                                        
Weighted Average Outstanding Shares - Diluted (‘M) (3)
             25,917               25,916               25,943                                          
Note:
 
 
(1)   Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD31.813 for the second quarter of 2010.
 
(2)   1 ADR equals 5 ordinary shares.
 
(3)   Total diluted weighted average outstanding shares were 25,916M and 25,943M shares for 1Q10 and 2Q09 after the retroactive adjustments for stock dividends and stock bonus.

 

 

(tsmc logo)
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Audited Consolidated Condensed Income Statements
For the Six Months Ended June 30, 2010 and 2009
(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  
    2010     2009     YoY  
    USD     NTD     %     NTD     %     Amount     %  
Net Sales
   $ 6,184     $ 197,149       100.0     $ 113,712       100.0     $ 83,437       73.4  
Cost of Sales
     (3,169 )     (101,038 )     (51.2 )     (71,936 )     (63.3 )     (29,102 )     40.5  
 
                                          
Gross Profit
     3,015       96,111       48.8       41,776       36.7       54,335       130.1  
 
                                          
Operating Expenses
                                                        
Research and Development Expenses
     (427 )     (13,600 )     (6.9 )     (8,825 )     (7.8 )     (4,775 )     54.1  
General and Administrative Expenses
     (169 )     (5,403 )     (2.7 )     (4,476 )     (3.9 )     (927 )     20.7  
Sales and Marketing Expenses
     (79 )     (2,512 )     (1.4 )     (2,139 )     (1.8 )     (373 )     17.4  
 
                                          
Total Operating Expenses
     (675 )     (21,515 )     (11.0 )     (15,440 )     (13.5 )     (6,075 )     39.3  
 
                                          
 
                                                        
Income from Operations
     2,340       74,596       37.8       26,336       23.2       48,260       183.2  
 
                                          
 
                                                        
Non-Operating Income, Net
     76       2,411       1.2       1,508       1.3       903       59.8  
Equity in Earnings (Losses) of Equity Method Investees, Net
     22       706       0.4       (707 )     (0.6 )     1,413       (199.9 )
 
                                          
Income before Income Tax
     2,438       77,713       39.4       27,137       23.9       50,576       186.4  
 
                                                        
Income Tax Expenses
     (107 )     (3,421 )     (1.7 )     (1,204 )     (1.1 )     (2,217 )     184.1  
 
                                                        
 
                                          
Net Income
     2,331       74,292       37.7       25,933       22.8       48,359       186.5  
 
                                                        
Net Income Attributable to Minority Interests
     (11 )     (347 )     (0.2 )     68       0.1       (415 )     (614.9 )
 
                                                        
 
                                          
Net Income Attributable to Shareholders of the Parent
     2,320       73,945       37.5       26,001       22.9       47,944       184.4  
 
                                          
 
                                                        
Earnings per Share — Diluted
   $ 0.09     $ 2.85             $ 1.00             $ 1.85       184.7  
 
                                              
Earnings per ADR — Diluted (2)
   $ 0.45     $ 14.27             $ 5.01             $ 9.26       184.7  
 
                                              
 
                                                        
Weighted Average Outstanding Shares - Diluted (‘M) (3)
             25,917               25,944                          
Note:
 
 
(1)   Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD 31.879 for the six months ended June 30, 2010.
 
(2)   1 ADR equals 5 ordinary shares.
 
(3)   Total diluted weighted average outstanding shares were 25,944M shares for the six months ended June 30, 2009 after the retroactive adjustment for stock dividends.

 

(TSMC LOGO)
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
For the Six Months Ended June 30, 2010, and for the Three Months Ended June 30, 2010, March 31, 2010 and June 30, 2009
(Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”)) (1)
                                         
    Six Months 2010     2Q 2010     1Q 2010     2Q 2009  
    (Audited)     (unaudited)     (unaudited)     (unaudited)  
    USD     NTD     NTD     NTD     NTD  
Cash Flows from Operating Activities:
                                        
Net Income Attributable to Shareholders of the Parent
   $ 2,320     $ 73,945     $ 40,282     $ 33,663     $ 24,442  
Net Income Attributable to Minority Interest
     11       347       185       162       4  
Depreciation & Amortization
     1,322       42,134       21,131       21,003       20,053  
Deferred Income Tax
     (27 )     (856 )     (138 )     (718 )     697  
Equity in Earnings of Equity Method Investees, Net
     (22 )     (706 )     (529 )     (177 )     (106 )
Changes in Working Capital & Others
     (625 )     (19,904 )     (12,005 )     (7,899 )     (20,566 )
 
                              
Net Cash Provided by Operating Activities
     2,979       94,960       48,926       46,034       24,524  
 
                                        
Cash Flows from Investing Activities:
                                        
Acquisitions of:
                                        
Marketable Financial Instruments
     (1,143 )     (36,435 )     (10,577 )     (25,858 )     (968 )
Investments Accounted for Using Equity Method
     (196 )     (6,242 )     (13 )     (6,229 )     —  
Property, Plant and Equipment
     (3,101 )     (98,857 )     (52,721 )     (46,136 )     (7,415 )
Financial Assets Carried at Cost
     (54 )     (1,723 )     (1,612 )     (111 )     (48 )
Proceeds from Disposal or Redemption of:
                                        
Marketable Financial Instruments
     1,034       32,970       10,750       22,220       2,651  
Property, Plant and Equipment
     4       112       76       36       3  
Financial Assets Carried at Cost
     6       180       154       26       75  
Others
     (16 )     (503 )     (266 )     (237 )     (291 )
 
                              
Net Cash Used In Investing Activities
     (3,466 )     (110,498 )     (54,209 )     (56,289 )     (5,993 )
 
                                        
Cash Flows from Financing Activities:
                                        
Increase in Short-term Loans
     567       18,083       17,765       318       —  
Decrease in Guarantee Deposits
     (4 )     (128 )     (38 )     (90 )     (86 )
Proceeds from Exercise of Employee Stock Options
     3       86       49       37       14  
Others
     (40 )     (1,268 )     (160 )     (1,108 )     (265 )
 
                              
Net Cash Provided by (Used in) Financing Activities
     526       16,773       17,616       (843 )     (337 )
 
                                        
 
                              
Net Increase (Decrease) in Cash and Cash Equivalents
     39       1,235       12,333       (11,098 )     18,194  
 
                              
 
                                        
Effect of Exchange Rate Changes on Cash and Cash Equivalents
     (1 )     (25 )     353       (378 )     (1,939 )
 
                                        
Cash and Cash Equivalents at Beginning of Period
     5,373       171,276       159,800       171,276       223,262  
 
                              
 
                                        
Cash and Cash Equivalents at End of Period
   $ 5,411     $ 172,486     $ 172,486     $ 159,800     $ 239,517  
 
                              
Note:   
 
(1)   Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD31.879 for the six months ended June 30, 2010.

 

TSMC 2010 Second Quarter Investor Conference July 29, 2010

 

Agenda Welcome Elizabeth Sun 2Q10 Financial Results and 3Q10 Outlook Lora Ho CEO Comments Morris Chang Q&A Morris Chang / Lora Ho

 

Safe Harbor Notice TSMC's statements of its current expectations are forward- looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. Information as to those factors that could cause actual results to vary can be found in TSMC's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the "SEC") on April 15, 2010 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.

 

2Q10 Financial Highlights

 

Income Statements

 

2Q10 Revenue by Applications

 

2Q10 Revenue by Technology

 

Balance Sheets & Key Indices Asset productivity = Annualized net sales / Average net fixed assets. (1)

 

Cash Flows Free cash flow = Operating cash flow - Capital expenditures. (1)

 

Figures represent number of 6" wafers. Conversion to 8"-equivalent wafers is obtained by dividing this number by 1.78. Figures represent number of 12" wafers. Conversion to 8"-equivalent wafers is obtained by multiplying this number by 2.25. Installed Capacity 2010 Overall Capacity +14%; Advanced Capacity +36%

 

Capital Expenditures

 

3Q10 Guidance Revenue to be between NT$109 billion and NT$111 billion, at a forecast exchange rate of 31.87 NT dollars to 1 US dollar Gross profit margin to be between 48% and 50% Operating profit margin to be between 36% and 38%

 

Recap of Recent Major Events TSMC Announces Automotive Qualified 0.25-Micron One-Time-Programmable IP ( 2010/06/30 ) TSMC Sets July 6th as Common Share Ex-dividend Date ( 2010/06/21 ) TSMC and Stion Sign Technology and Supply Agreement ( 2010/06/16 ) TSMC Shareholders Approve NT$3.0 Cash Dividend and Sets July 12 as Record Date for Common Share Dividends ( 2010/06/15 ) TSMC New Standard Cell Slim Library Reduces Logic Area 15% ( 2010/06/15 ) TSMC Extends Open Innovation Platform(tm) and Unveils Three Immediate Design Enablement Initiatives ( 2010/06/07 ) TSMC Announces 0.18-Micron Automotive Grade Embedded Flash IP ( 2010/05/27 ) TSMC Board of Directors Approved Capital Appropriations to Expand Capacity and the Full Conversion of TSMC's Common Shares into Paperless Form ( 2010/05/11 ) TSMC Ships 600,000 0.25-Micron Automotive-Qualified Embedded Flash Wafers ( 2010/04/21 ) TSMC Announces Move to 20nm Process ( 2010/04/14 ) TSMC Delivers Interoperable EDA Formats for Advanced Process Technologies ( 2010/04/07 ) * Please visit TSMC's Web site (http://www.tsmc.com) for details and other announcements

 

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