8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

May 1, 2009
Date of Report (Date of earliest event reported)

The Taiwan Fund, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware	811-04893	042942862
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification Number)

c/o State Street Bank and Trust Company, 2 Avenue de	02206-5049
Lafayette, PO Box 5049, Boston, MA	(Zip Code)
(Address of Principal Executive Offices)

(800) 639-9242
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

May 2009 Monthly Review

Item 7.01. Regulation FD Disclosure.

     Pursuant to Regulation FD Rules 100-103, The Taiwan Fund, Inc. (the “Fund”) furnishes the May 2009 Monthly Review of the Fund’s performance by the Fund’s investment adviser.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit
No.	Description
99	May 2009 Monthly Review of the Fund’s performance by the Fund’s investment adviser

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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 hereunto duly authorized.

Dated: July 1, 2009

By:	/s/ Adelina Louie
Name:	Adelina Louie
Title:	Secretary and Treasurer

EXHIBIT INDEX

Exhibit No.	Description
99	May 2009 Monthly Review of the Fund’s performance by the Fund’s investment adviser

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EX-99

THE TAIWAN FUND, INC. REVIEW
May 2009

HSBC Global Asset Management (Taiwan) Limited
24/F No. 99, Tunhwa S. Rd., Sec. 2
Taipei 106, Taiwan Tel: +886-2-2325-7888
Fax: +886-2-2326-8298

Portfolio Review

Market Review:

The Taiwan Stock Exchange Index (“TAIEX”) increased by 16.87% in U.S. Dollar terms in May. Proprietary traders, local institutions and foreign investors respectively net bought NT$2.45 billion, NT$5.28 billion and NT$63.63 billion. The construction and pulp & paper sectors outperformed relative to the TAIEX, with an increase of 61.49% and 35.72% month-over-month (“MoM”) in NT dollar terms, respectively. On the other hand, the glass and plastic sectors underperformed relative to the TAIEX; however, the plastic sector returned 7.67% MoM in NT dollar terms, while the glass sector decreased 1.67% MoM in NT dollar terms. On the economic front, Taiwan’s Consumer Price Index (“CPI”) in April decreased 0.45% year-over-year (“YoY”). The seasonally adjusted unemployment rate increased to 5.77% in April, 0.05% higher than the previous month. According to Customs’ records, Taiwan’s exports in April decreased by 34.3% YoY, or 4.8% MoM, to US$14.85 billion. Export orders in April were down by 20.90% YoY.

Fund Performance Review:

The Taiwan Fund, Inc. (the “Fund”) underperformed its benchmark by 4.41% in May. An underweight position in the petrochemical sector and overweight position in the IC Design sector contributed positively to the Fund’s performance, while an overweight position in the operator sector and underweight in the construction and banking sectors negatively contributed to the Fund’s performance. The Fund’s cash position in May (approximately 13.9% of assets) also negatively contributed to the Fund’s performance.

Investment Strategy:

The TAIEX rose 15% in NT$ terms in May and politics appeared to outweigh corporate fundamentals. Retail sentiment was robust with likely acceleration in capital repatriation, which contributed to NT$ appreciation. TAIEX trading volume climbed to NT$3.5tn in May, which was near the level seen in October 2007 when the index topped at 9,859. Retail investors accounted for 60% of market volume, a five —year high. Day trading (buying and selling on the same date) accounted for 17% of market volume, which is again at five-year highs. Technically, the TAIEX could be over-heated. We expect the TAIEX to take a near term pause given less attractive risk reward. Tech sector momentum continues to decelerate due to the approach of low seasonality and also the stronger headwinds of NT$ appreciation. The Fund currently holds a 15% cash position, and we intend to reduce the cash position gradually as we believe China’s strong political good will is likely to shelter Taiwan from the global recession. Further, we believe Taiwan’s accelerating economic reforms, including cross-strait liberalization as well as unprecedented liquidity globally and domestically, will enhance long term growth prospects. In terms of sector allocation, the Fund has a slightly overweight position in defensive technology (i.e. operators) and underweight positions in cyclicals and financials.

Total Portfolio Sector Allocation

As of 5/31/09

	% of		% of
	Total Portfolio		TAIEX
Computer Service and Software		—		0.2
Electronic Components		2.6		3.6
Electronics Distribution		3.4		0.9
IC Design		10.1		4.6
PC & Peripherals		5.6		7.2
Optoelectronic		5.3		7.2
Other Electronic		7.1		7.0
Semiconductor Manufacturing		9.9		14.1
Telecommunications		15.1		9.0
Construction/Cement/Glass		3.6		2.5
Food		4.5		1.4
Chemicals/Biotech		—		1.8
Textiles/ Paper		1.8		2.2
Electric Machinery/Appliance		—		1.3
Iron & Steel		3.3		3.2
Automobile/Rubber		5.5		1.1
Transportation/ Tourism		1.8		3.1
Wholesale & Retail		5.0		1.1
Miscellaneous (Footwear/Others)		—		1.8
Plastics/Petroleum Services		5.5		11.3
Financial Services		9.9		15.4
Total		100.0		100.0
Cash		—		—
Technology		59.1		53.8
Non-Technology		31.0		30.8
Financial		9.9		15.4
Total Net Assets: US$248.15 Million

Top 10 Holdings of Total Fund Portfolio

As of 5/31/09

	% of Total Portfolio
Taiwan Semiconductor Manufacturing Co., Ltd.		8.69
Hon Hai Precision Industry Co., Ltd.		7.08
MediaTek, Inc.		6.76
Chunghwa Telecom Co., Ltd.		4.46
HTC Corp.		4.15
Synnex Technology International Corp.		3.45
Cheng Shin Rubber industry Co., Ltd.		3.15
Cathay Financial Holding Co., Ltd.		3.03
President Chain Store Corp.		3.02
Taiwan Mobile Co., Ltd.		2.91
Total		46.7
NAV: US$13.36    Price: US$12.89    Discount: 3.52%
No. of Shares: 18.57 Million

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Returns in US$ (%) (a)

	The Taiwan Fund, Inc.			TSE Index (b)			TAIEX Total Return Index(d)
One Month		12.46	%		16.87	%		16.87	%
Fiscal Year to Date (c)		-13.41	%		-5.17	%		-4.54	%
One Year		-29.88	%		-25.28	%		-21.19	%
Three Years		-4.01	%		-0.31	%		4.04	%
Five years		3.46	%		3.37	%		7.56	%
Ten Years		-0.84	%		-0.54	%		N/A
Since Inception		8.45	%		9.23	%		N/A

(a)	Returns for the Fund are historical total returns that reflect changes in net asset value per share during each period and assume that dividends and capital gains, if any, were reinvested. Past performance is not indicative of future results of the Fund. Returns are annualized, except for periods of less than one year, which are not annualized.
(b)	Returns for the TSE Index are not total returns and reflect only changes in share price but do not assume that cash dividends, if any, were reinvested, and thus are not strictly comparable to the Fund returns.
(c)	The Fund’s fiscal year commences on September 1.
(d)	The TAIEX Total Return Index commenced 1/1/2003.

Premium/Discount of TWN

Market Data

	As of 04/30/09		As of 05/31/09
TAIEX		5992.57		6890.44
% change in NTD terms		15.00		14.98
% change in USD terms		17.92		16.87
NTD Daily avg. trading volume (In Billions)		137.87		224.93
USD Daily avg. trading volume (In Billions)		4.17		6.91
NTD Market Capitalization (In Billions)		15220.40		17512.84
USD Market Capitalization (In Billions)		460.20		538.19
FX Rate: (NT$/US$)		33.0735		32.5405

Disclaimer: This report is based on information believed by us to be reliable. No representation is made that it is accurate or complete. The figures in the report are unaudited. This report is not an offer to buy or sell or a solicitation of an offer to buy or sell any securities mentioned.

The daily NAV of the Fund is available from Lipper and CDA Wiesenberger, or you may obtain it by calling toll free (800) 636-9242.

Fund Manager: Shirley Yang

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