HSIN-CHU, Taiwan, Jan. 28 /PRNewswire-Asia-FirstCall/ -- TSMC
(TAIEX: 2330; NYSE: TSM) today announced consolidated revenue of
NT$92.09 billion, net income of NT$32.67 billion, and diluted
earnings per share of NT$1.26 (US$0.19 per ADS unit) for the fourth
quarter ended December 31, 2009. Year-over-year, fourth quarter
revenue increased 42.6% while net income increased 162.5% and
diluted EPS increased 162.7%. Compared to third quarter of 2009,
fourth quarter results represent a 2.4% increase in revenue, a 6.9%
increase in net income, and a 7.2% increase in diluted EPS. All
figures were prepared in accordance with R.O.C. GAAP on a
consolidated basis. Gross margin for the quarter was 48.5%,
operating margin was 36.5%, and net margin was 35.5%. As the global
economy gradually recovered, fourth quarter saw a continued
improvement in wafer sales with computer related applications
growing strongly and consumer related applications declining
seasonally. Advanced process technologies (0.13-micron and below)
accounted for 70% of wafer revenues. 90-nanometer process
technology accounted for 16% of wafer revenues, 65-nanometer 30%,
and 40-nanometer exceeded 9% of total wafer sales. "Although first
quarter normally is a sequentially declining quarter for all three
major semiconductor applications, we expect the demand from
consumer related applications to grow in first quarter of 2010,
while computer and communication related 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": * First quarter revenue to be between NT$89
billion and NT$91 billion, gross profit margin to be between 46.5%
and 48.5%, and operating profit margin to be between 35% and 37%; *
2010 capital expenditure to be around US$4.8 billion, due to strong
demand outlook for our advanced technologies. Conference Call &
Webcast Notice: TSMC's quarterly review conference call will be
held at 8 a.m. Eastern Time (9 p.m. Taiwan Time) on Thursday,
January 28, 2010. The conference call will also be webcast live on
the Internet. Investors wishing to access the live webcast should
visit TSMC's web site at http://www.tsmc.com/ at least 15 minutes
prior to the broadcast. Instructions will be provided on the web
site to facilitate the download and installation of necessary audio
applications. Investors without Internet access may listen to the
conference call, in listen-only mode, by dialing 1-617-213-8895 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 managed capacity in 2009 totaled
9.96 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 4Q09 Quarterly Management Report January
28, 2010 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)
4Q09 3Q09 4Q08 2009 2008 EPS (NT$ per common share) 1.26 1.18 0.48
3.44 3.81 (US$ per ADR unit) 0.19 0.18 0.07 0.52 0.61 Consolidated
Net Sales 92.09 89.94 64.56 295.74 333.16 Gross Profit 44.70 42.86
20.19 129.33 141.75 Gross Margin 48.5% 47.7% 31.3% 43.7% 42.5%
Operating Expense (11.05) (10.87) (8.17) (37.37) (37.31) Operating
Income 33.64 31.99 12.02 91.96 104.44 Operating Margin 36.5% 35.6%
18.6% 31.1% 31.4% Non-Operating Items 1.73 0.97 1.07 3.50 7.04 Net
Income 32.67 30.55 12.45 89.22 99.93 Net Profit Margin 35.5% 34.0%
19.3% 30.2% 30.0% Wafer Shipment (kpcs 8 inch-equiv.) 2,430 2,445
1,532 7,737 8,467 Note: Total outstanding shares were 25,903mn
units on 12/31/09 Financial Highlights: Fourth Quarter 2009 --
Consolidated net sales were NT$92.09 billion, increased 2.4% from
NT$89.94 billion in the prior quarter and 42.6% from NT$64.56
billion in the year-ago quarter. -- Gross margin was 48.5%, showing
0.8 percentage point increase from 3Q09 and a 17.2 percentage point
increase from 4Q08. -- Operating margin was 36.5%, 0.9 percentage
point higher than 3Q09 and 17.9 percentage points higher than 4Q08.
-- Consolidated net income attributable to shareholders of the
parent company was NT$32.67 billion, increased 6.9% from 3Q09. Net
profit margin was 35.5% and diluted EPS was NT$1.26. Full Year 2009
-- Consolidated net sales were NT$295.74 billion, representing an
11.2% decline from 2008. -- In spite of lower net sales, gross
margin was 43.7%, increased 1.2 percentage points from 42.5% in
2008. Operating margin was 31.1%, declined 0.3 percentage point
from 2008. -- Earnings per share was NT$3.44, with net profit
margin of 30.2%. I. Revenue Analysis I. Wafer Sales Analysis By
Application 4Q09 3Q09 4Q08 Computer 33% 28% 30% Communication 39%
42% 39% Consumer 13% 16% 16% Industrial/Others 15% 14% 15% By
Technology 4Q09 3Q09 4Q08 45/40nm 9% 4% 0% 65nm 30% 31% 27% 90nm
16% 18% 21% 0.11/0.13um 15% 14% 17% 0.15/0.18um 18% 21% 22%
0.25/0.35um 9% 9% 10% 0.50um+ 3% 3% 3% By Customer Type 4Q09 3Q09
4Q08 Fabless/System 79% 80% 72% IDM 21% 20% 28% By Geography 4Q09
3Q09 4Q08 North America 71% 70% 72% Asia Pacific 13% 13% 11% China
3% 3% 2% Europe 10% 11% 11% Japan 3% 3% 4% Revenue Analysis: 4Q09
marked the third consecutive growth quarter, mainly driven by
strong demand from Computer related applications during the
quarter. Revenues from Computer applications grew 22% sequentially,
while Communication declined 8% after strong momentum in the prior
two quarters and Consumer declined 15% following seasonal pattern.
As demand for 40/45nm technology remained strong and yield
continued to improve, revenues from 40/45nm again more than doubled
during the quarter and accounted for 9% of total wafer sales.
Meanwhile, demand from 65nm and 90nm continued to be robust and
accounted for 30% and 16%, respectively. Overall, revenues from
0.13-micron and below increased three percentage points
sequentially and represented 70% of total wafer sales. Revenues
from IDM customers accounted for 21% of total wafer sales in 4Q09,
up one percentage point from 3Q09. From a geographic perspective,
revenues from customers based in North America accounted for 71% of
total wafer sales, while sales from Asia Pacific, China, Europe and
Japan accounted for 13%, 3%, 10%, and 3% of total wafer sales,
respectively. II. Profit & Expense Analysis II - 1. Gross
Profit Analysis (In NT billions) 4Q09 3Q09 4Q08 2009 2008 COGS
47.39 47.08 44.37 166.41 191.41 Depreciation 18.60 18.37 19.29
74.48 74.70 Other MFG Cost 28.79 28.71 25.08 91.93 116.71 Gross
Profit 44.70 42.86 20.19 129.33 141.75 Gross Margin 48.5% 47.7%
31.3% 43.7% 42.5% Gross Profit Analysis: Gross margin for the
quarter was 48.5%, increased by 0.8 percentage point from 47.7% in
3Q09, due to a higher level of capacity utilization and continued
cost improvement, partially offset by the unfavorable exchange
rate. On a full year basis, gross margin for 2009 was 43.7%,
increased 1.2 percentage points from 2008, mainly due to a
favorable exchange rate and cost improvement, partially offset by
an adverse inventory valuation adjustment under ROC SFAS No.10. II
- 2. Operating Expenses (In NT billions) 4Q09 3Q09 4Q08 2009 2008
Total Operating Exp. 11.05 10.87 8.17 37.37 37.31 SG&A 4.48
4.67 3.34 15.78 15.83 Research & Development 6.57 6.20 4.83
21.59 21.48 Total Operating Exp. as a % of Sales 12.0% 12.1% 12.7%
12.6% 11.1% Operating Expenses: Total operating expenses for 4Q09
increased by NT$0.18 billion to NT$11.05 billion, representing
12.0% of net sales. SG&A expenses decreased by NT$0.19 billion
from 3Q09, primarily due to lower legal fees. Research and
development expenditures increased by NT$0.37 billion sequentially,
mainly due to increased development activities in 28nm and 22nm
technologies. For full year 2009, total operating expenses were
NT$37.37 billion, similar to that in 2008. However, due to a lower
net sales base, total operating expenses accounted for 12.6% of net
sales in 2009, compared with 11.1% in the prior year. II - 3.
Non-Operating Items (In NT billions) 4Q09 3Q09 4Q08 2009 2008
Non-Operating Inc./(Exp.) 1.43 0.52 1.41 3.45 6.34 Net Interest
Income/(Exp.) 0.35 0.42 1.18 2.21 4.76 Other Non-Operating 1.08
0.10 0.23 1.24 1.58 L-T Investments 0.30 0.45 (0.34) 0.05 0.70 SSMC
0.29 0.26 (0.07) 0.43 0.76 Others 0.01 0.19 (0.27) (0.38) (0.06)
Total Non-Operating Items 1.73 0.97 1.07 3.50 7.04 Non-Operating
Items: Combined result from non-operating income and long-term
investments was a gain of NT$1.73 billion for 4Q09. Non-operating
income was NT$1.43 billion for 4Q09, a NT$0.91 billion increase
from 3Q09, primarily due to the receipt of litigation compensation.
Net investment gain was NT$0.30 billion, lower than NT$0.45 billion
in the prior quarter, mainly due to lower profits from certain
invested companies. On a full year basis, total non-operating items
decreased by NT$3.54 billion to NT$3.50 billion in 2009, mostly due
to less interest income and weaker business in certain invested
companies. III. Financial Condition Review III - 1. Liquidity
Analysis (Selected Balance Sheet Items) (In NT billions) 4Q09 3Q09
4Q08 Cash & Marketable Securities 195.80 180.32 211.45 Accounts
Receivable - Trade 35.38 35.88 18.50 Inventory 20.91 19.18 14.88
Total Current Assets 259.80 244.24 252.62 Accounts Payable 40.61
26.30 14.04 Current Portion of Bonds Payable 0.00 0.00 8.00 Accrued
Bonus to Employees 13.43 8.62 15.37 Accrued Liabilities and Others
25.09 20.09 19.40 Total Current Liabilities 79.13 55.01 56.81
Current Ratio (x) 3.3 4.4 4.4 Net Working Capital 180.67 189.23
195.81 Liquidity Analysis: At the end of 4Q09, cash and marketable
securities totaled NT$195.80 billion, increased by NT$15.48 billion
from 3Q09, primarily due to NT$19.29 billion of free cash flow
generated during this quarter. Total current liabilities increased
NT$24.12 billion in this quarter, primarily due to increase in
accounts payables to contractors and equipment suppliers and
accruals for employee profit sharing/bonus during the quarter. Net
working capital was NT$180.67 billion and current ratio decreased
to 3.3x. III - 2. Receivable/Inventory Days (In Number of Days)
4Q09 3Q09 4Q08 Days of Receivable 36 36 46 Days of Inventory 42 41
40 Receivable and Inventory Days: Days of receivable remained
stable at 36 days in 4Q09. Days of inventory increased by one day
from prior quarter to 42 days. III - 3. Debt Service (In NT
billions) 4Q09 3Q09 4Q08 Cash & Marketable Securities 195.80
180.32 211.45 Interest-Bearing Debt 15.09 15.33 23.44 Net Cash
Reserves 180.71 164.99 188.01 Debt Service: Net cash reserves,
defined as the excess of cash and short-term marketable securities
over interest-bearing debt, increased by NT$15.72 billion to
NT$180.71 billion at the end of 4Q09, primarily due to NT$19.29
billion of free cash flow generated during this quarter. IV. Cash
Flow IV - 1.1. Cash Flow Analysis (In NT billions) 4Q09 3Q09 4Q08
Net Income 32.67 30.55 12.45 Depreciation & Amortization 20.28
20.00 20.96 Employee Profit Sharing Payment* n.a (7.49) n.a Other
Operating Sources/(Uses) 9.05 3.60 29.83 Total Operating
Sources/(Uses) 62.00 46.66 63.24 Capital Expenditure (42.71)
(32.04) (11.26) Marketable Financial Instruments (3.59) (18.94)
30.31 Other Investing Sources/(Uses) (0.80) (0.53) (1.04) Net
Investing Sources/(Uses) (47.10) (51.51) 18.01 Cash Dividends 0.00
(76.88) 0.00 Other Financing Sources/(Uses) (0.28) (0.11) (0.30)
Net Financing Sources/(Uses) (0.28) (76.99) (0.30) Net Cash
Position Changes 14.62 (81.84) 80.95 Exchange Rate Changes &
Others (0.28) (0.74) 1.21 Ending Cash Balance 171.28 156.94 194.61
*Starting 2008, Taiwan accounting rule requires company to expense
employee profit sharing Summary of Cash Flow: Cash generated from
operating activities totaled NT$62.00 billion during the quarter,
an increase of NT$15.34 billion from 3Q09, mainly due to the
increase in net income, the absence of the cash payment of employee
profit sharing, and a decrease in net working capital. Net cash
used in investing activities decreased NT$4.41 billion to NT$47.10
billion in 4Q09, primarily reflecting less purchases of marketable
financial instruments, partially offset by an increase in capital
expenditures. Net cash used in financing activities was NT$0.28
billion during the quarter. As a result, TSMC ended 4Q09 with a
cash balance of NT$171.28 billion. IV - 1.2. Cash Flow Analysis (In
NT billions) 2009 2008 Diff. Net Income 89.22 99.93 (10.71)
Depreciation & Amortization 80.81 81.51 (0.70) Employee Profit
Sharing Payment* (7.49) 0.00 (7.49) Other Operating Sources/(Uses)
(2.57) 40.05 (42.62) Total Operating Sources/(Uses) 159.97 221.49
(61.52) Capital Expenditure (87.78) (59.22) (28.56) Marketable
Financial Instruments (7.04) 52.35 (59.39) Other Investing
Sources/(Uses) (1.65) (1.17) (0.48) Net Investing Sources/(Uses)
(96.47) (8.04) (88.43) Cash Dividends (76.88) (76.78) (0.10)
Employee Profit Sharing* 0.00 (3.94) 3.94 Repayment of Bonds
Payable (8.00) 0.00 (8.00) Purchase of Treasury Stock 0.00 (33.48)
33.48 Other Financing Sources/(Uses) (0.59) (1.19) 0.60 Net
Financing Sources/(Uses) (85.47) (115.39) 29.92 Net Cash Position
Changes (21.97) 98.06 (120.03) Exchange Rate Changes & Others
(1.36) 1.56 (2.92) Ending Cash Balance 171.28 194.61 (23.33)
*Starting 2008, Taiwan accounting rule requires company to expense
employee profit sharing On a full year basis, cash generated from
operating activities decreased NT$61.52 billion to NT$159.97
billion in 2009. The decrease mainly reflected the decrease in net
income, the cash payment of 2008 employee profit sharing made in
2009, and increases in net working capital due to acceleration of
business momentum. Net cash used in investing activities was
NT$96.47 billion in 2009, NT$88.43 billion higher than that in
2008, primarily reflecting redemptions of marketable financial
instruments in 2008 and the increase in capital expenditures during
2009. Meanwhile, net cash used in financing activities decreased by
NT$29.92 billion to NT$85.47 billion during 2009, mainly due to the
absence of repurchase of treasury stock and the reclassification of
employee profit sharing from financing activities to operating
activities starting 2009, partially offset by the repayment of
corporate bonds in the first quarter. IV - 2. Operating and Free
Cash Flows: Operating and Free Cash Flows: Cash flows generated
from operating activities were NT$62.00 billion during the quarter.
Free cash flow, defined as the excess of operating cash flows over
capital expenditures, totaled NT$19.29 billion in 4Q09, compared to
NT$14.62 billion in 3Q09. Total free cash flow generated in 2009
was NT$72.19 billion, declined NT$90.08 billion from NT$162.27
billion in 2008. The year-over-year decline was primarily due to
lower business activities resulting from the economic downturn and
the increased capital expenditures. 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 4Q09 2009 2008 TSMC 161 218 963 1,304 2,646 1,807
XinTec and GUC 2 3 6 1 12 23 TSMC Shanghai & WaferTech 3 3 0 4
10 52 Other TSMC Subsidiaries 0 0 2 1 3 4 Total TSMC 166 224 971
1,310 2,671 1,886 Capital Expenditures: Capital expenditures for
TSMC on a consolidated basis totaled US$1,310 million in 4Q09. For
year 2009, total capital expenditures for TSMC consolidated group
totaled US$2.67 billion, compared with US$1.89 billion spent in
2008. V-2 . Capacity 1Q09 2Q09 3Q09 4Q09 2009 1Q10 Fab / (Wafer
size) (A) (A) (A) (A) (A) (F) Fab-2 (6") Note1 274 280 283 283
1,121 263 Fab-3 (8") 286 289 292 283 1,150 268 Fab-5 (8") 162 149
144 144 599 139 Fab-6 (8") 295 284 287 287 1,154 269 Fab-8 (8") 275
271 265 255 1,066 247 Fab-12 (12") Note 2 218 219 199 243 879 269
Fab-14 (12") Note 2 238 238 239 243 958 255 WaferTech (8") 106 107
109 109 431 106 TSMC China (8") 128 134 135 135 531 132 TSMC total
capacity (8" equiv. Kpcs) 2,431 2,419 2,379 2,467 9,695 2,488 SSMC
(8") 64 65 65 65 259 69 Total managed capacity (8" equiv. Kpcs)
2,495 2,483 2,444 2,532 9,955 2,557 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 2,532K 8-inch equivalent wafers in 4Q09, increased by
3.6% from 2,444K in 3Q09. TSMC managed capacity in 1Q10 is expected
to increase by 1% to reach 2,557K 8-inch equivalent wafers. 12"
wafer capacity will increase by 38K (12'). However, due to
scheduled annual maintenance and capacity migration to higher
nodes, total legacy fabs capacity will decrease by 60K (8') in the
first quarter of 2010. Total managed capacity in 2009 reached
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 increased by 10.8% year-over-year, reaching
41.5% of total 2009 capacity. VI. Recap of Recent Important Events
& Announcements -- TSMC Announces Process Technologies For
Integrated LED Drivers ( 2009/12/15 ) -- TSMC and Motech Announce
Strategic Partnership ( 2009/12/09 ) -- TSMC Recognizes Supplier
Excellence at Supply Chain Management Forum ( 2009/12/04 ) -- TSMC
Launches Automotive Process Qualification Specification and Service
Package in China Market ( 2009/11/27 ) -- TSMC Announces Settlement
of SMIC Trade Secret Litigation ( 2009/11/10 ) -- Infineon and TSMC
Extend Technology And Production Partnership Agreement; Will
Jointly Develop 65nm Embedded Flash Process Technology For
Automotive and Chip Card Applications ( 2009/11/05 ) 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) December 31,
2009 September 30, 2009 (audited) (unaudited) ASSETS USD NTD % NTD
% Current Assets Cash and Cash Equivalents $5,347 $171,276 28.8
$156,935 29.0 Investments in Marketable Financial Instruments 766
24,521 4.1 23,384 4.3 Accounts Receivable - Trade 1,105 35,382 5.9
35,881 6.6 Inventories, Net 653 20,914 3.5 19,176 3.5 Other Current
Assets 240 7,711 1.4 8,865 1.7 Total Current Assets 8,111 259,804
43.7 244,241 45.1 Long-Term Investments 1,182 37,845 6.4 38,553 7.1
Properties, Plant and Equipment 30,204 967,419 162.7 911,844 168.3
Less: Accumulated Depreciation (21,660) (693,744) (116.7) (675,028)
(124.6) Properties, Plant and Equipment, Net 8,544 273,675 46.0
236,816 43.7 Other Assets 730 23,372 3.9 22,287 4.1 Total Assets
$18,567 $594,696 100.0 $541,897 100.0 LIABILITIES AND SHAREHOLDERS'
EQUITY Current Liabilities Accounts Payables $365 $11,689 2.0
$10,633 2.0 Payables to Contractors and Equipment Suppliers 903
28,924 4.9 15,666 2.9 Accrued Expenses and Other Current
Liabilities 1,173 37,571 6.2 28,401 5.2 Current Portion of Bonds
Payable and Long-Term Debts 30 949 0.2 309 0.1 Total Current
Liabilities 2,471 79,133 13.3 55,009 10.2 Bonds Payable 140 4,500
0.8 4,500 0.8 Other Long-Term Liabilities 375 12,015 2.0 15,761 2.9
Total Liabilities 2,986 95,648 16.1 75,270 13.9 Shareholders'
Equity Attributable to Shareholders of the Parent Capital Stock at
Par Value 8,087 259,027 43.6 259,007 47.8 Capital Surplus 1,732
55,486 9.3 55,440 10.2 Legal Capital Reserve (2) 2,414 77,317 13.0
77,317 14.3 Special Capital Reserve (2) -- -- -- -- --
Unappropriated Earnings (2) 3,265 104,565 17.5 71,899 13.3 Treasury
Stock -- -- -- -- -- Others (41) (1,312) (0.2) (778) (0.2) Total
Equity Attributable to Shareholders of the Parent 15,457 495,083
83.2 462,885 85.4 Minority Interests 124 3,965 0.7 3,742 0.7 Total
Shareholders' Equity 15,581 499,048 83.9 466,627 86.1 Total
Liabilities & Shareholders' Equity $18,567 $594,696 100.0
$541,897 100.0 Note : (1) Amounts in New Taiwan dollars have been
translated into U.S. dollars at the rate of NT$32.030 as of
December 31, 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)
December 31, 2008 (audited) QoQ YoY ASSETS NTD % Amount % Amount %
Current Assets Cash and Cash Equivalents $194,614 34.8 $14,341 9.1
($23,338) (12.0) Investments in Marketable Financial Instruments
16,836 3.0 1,137 4.9 7,685 45.6 Accounts Receivable - Trade 18,497
3.3 (499) (1.4) 16,885 91.3 Inventories, Net 14,877 2.7 1,738 9.1
6,037 40.6 Other Current Assets 7,795 1.4 (1,154) (13.0) (84) (1.1)
Total Current Assets 252,619 45.2 15,563 6.4 7,185 2.8 Long-Term
Investments 39,982 7.2 (708) (1.8) (2,137) (5.3) Properties, Plant
and Equipment 862,461 154.3 55,575 6.1 104,958 12.2 Less:
Accumulated Depreciation (618,816) (110.7) (18,716) 2.8 (74,928)
12.1 Properties, Plant and Equipment, Net 243,645 43.6 36,859 15.6
30,030 12.3 Other Assets 22,671 4.0 1,085 4.9 701 3.1 Total Assets
$558,917 100.0 $52,799 9.7 $35,779 6.4 LIABILITIES AND
SHAREHOLDERS' EQUITY Current Liabilities Accounts Payables $6,043
1.1 $1,056 9.9 $5,646 93.4 Payables to Contractors and Equipment
Suppliers 7,999 1.4 13,258 84.6 20,925 261.6 Accrued Expenses and
Other Current Liabilities 34,543 6.2 9,170 32.3 3,028 8.8 Current
Portion of Bonds Payable and Long-Term Debts 8,222 1.5 640 207.7
(7,273) (88.5) Total Current Liabilities 56,807 10.2 24,124 43.9
22,326 39.3 Bonds Payable 4,500 0.8 -- -- -- -- Other Long-Term
Liabilities 17,237 3.1 (3,746) (23.8) (5,222) (30.3) Total
Liabilities 78,544 14.1 20,378 27.1 17,104 21.8 Shareholders'
Equity Attributable to Shareholders of the Parent Capital Stock at
Par Value 256,254 45.8 20 0.0 2,773 1.1 Capital Surplus 49,875 8.9
46 0.1 5,611 11.2 Legal Capital Reserve (2) 67,324 12.0 -- -- 9,993
14.8 Special Capital Reserve (2) 392 0.1 -- -- (392) (100.0)
Unappropriated Earnings (2) 102,338 18.3 32,666 45.4 2,227 2.2
Treasury Stock -- -- -- -- -- -- Others 194 0.1 (534) 68.8 (1,506)
(777.5) Total Equity Attributable to Shareholders of the Parent
476,377 85.2 32,198 7.0 18,706 3.9 Minority Interests 3,996 0.7 223
6.0 (31) (0.7) Total Shareholders' Equity 480,373 85.9 32,421 6.9
18,675 3.9 Total Liabilities & Shareholders' Equity $558,917
100.0 $52,799 9.7 $35,779 6.4 Note : (1) Amounts in New Taiwan
dollars have been translated into U.S. dollars at the rate of
NT$32.030 as of December 31, 2009. (2) Certain prior period
balances have been reclassified to conform to the current period
presentation. TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
AND SUBSIDIARIES Unaudited Consolidated Condensed Income Statements
For the Three Months Ended December 31, 2009, September 30, 2009,
December 31, 2008 (Expressed in Millions of New Taiwan Dollars
("NTD") and U.S. Dollars ("USD") (1) Except for Per Share Amounts
and Shares Outstanding) 4Q 2009 3Q 2009 USD NTD % NTD % Net Sales
$2,849 $92,094 100.0 $89,936 100.0 Cost of Sales (1,466) (47,399)
(51.5) (47,078) (52.3) Gross Profit 1,383 44,695 48.5 42,858 47.7
Operating Expenses Research and Development Expenses (203) (6,567)
(7.1) (6,202) (6.9) General and Administrative Expenses (101)
(3,269) (3.6) (3,541) (3.9) Sales and Marketing Expenses (38)
(1,217) (1.3) (1,131) (1.3) Total Operating Expenses (342) (11,053)
(12.0) (10,874) (12.1) Income from Operations 1,041 33,642 36.5
31,984 35.6 Non-Operating Income, Net 44 1,427 1.6 519 0.6
Investment Gains 9 299 0.3 454 0.5 Income before Income Tax 1,094
35,368 38.4 32,957 36.6 Income Tax Expenses (77) (2,508) (2.7)
(2,285) (2.5) Net Income 1,017 32,860 35.7 30,672 34.1 Minority
Interests (6) (194) (0.2) (121) (0.1) Net Income Attributable to
Shareholders of the Parent 1,011 32,666 35.5 30,551 34.0 Earnings
per Share - Diluted $0.04 $1.26 -- $1.18 -- Earnings per ADR -
Diluted (2) $0.19 $6.30 -- $5.88 -- Weighted Average Outstanding
Shares - Diluted ('M) (3) -- 25,916 -- 25,984 -- Note: (1) Amounts
in New Taiwan dollars have been translated into U.S. dollars at the
weighted average rate of NTD32.320 for the fourth quarter of 2009.
(2) 1 ADR equals 5 ordinary shares. (3) Total diluted weighted
average outstanding shares were 25,942M shares for 4Q08 after the
retroactive adjustments for stock dividends and stock bonus. TAIWAN
SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements For the Three
Months Ended December 31, 2009, September 30, 2009, December 31,
2008 (Expressed in Millions of New Taiwan Dollars ("NTD") and U.S.
Dollars ("USD") (1) Except for Per Share Amounts and Shares
Outstanding) (Continued) 4Q 2008 QoQ YoY NTD % Amount % Amount %
Net Sales $64,562 100.0 $2,158 2.4 $27,532 42.6 Cost of Sales
(44,367) (68.7) (321) 0.7 (3,032) 6.8 Gross Profit 20,195 31.3
1,837 4.3 24,500 121.3 Operating Expenses Research and Development
Expenses (4,826) (7.5) (365) 5.9 (1,741) 36.1 General and
Administrative Expenses (2,285) (3.5) 272 (7.7) (984) 43.0 Sales
and Marketing Expenses (1,062) (1.6) (86) 7.6 (155) 14.6 Total
Operating Expenses (8,173) (12.7) (179) 1.6 (2,880) 35.2 Income
from Operations 12,022 18.6 1,658 5.2 21,620 179.8 Non-Operating
Income, Net 1,412 2.2 908 174.7 15 1.0 Investment Gains (340) -0.5
(155) (34.0) 639 (187.9) Income before Income Tax 13,094 20.3 2,411
7.3 22,274 170.1 Income Tax Expenses (452) (0.7) (223) 9.8 (2,056)
454.7 Net Income 12,642 19.6 2,188 7.1 20,218 159.9 Minority
Interests (196) (0.3) (73) 60.2 2 (0.8) Net Income Attributable to
Shareholders of the Parent 12,446 19.3 2,115 6.9 20,220 162.5
Earnings per Share - Diluted $0.48 $0.08 7.2 $0.78 162.7 Earnings
per ADR - Diluted (2) $2.40 $0.42 7.2 $3.90 162.7 Weighted Average
Outstanding Shares - Diluted ('M) (3) 25,942 -- -- -- -- Note: (1)
Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD32.320 for the fourth
quarter of 2009. (2) 1 ADR equals 5 ordinary shares. (3) Total
diluted weighted average outstanding shares were 25,942M shares for
4Q08 after the retroactive adjustments for stock dividends and
stock bonus. TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND
SUBSIDIARIES Audited Consolidated Condensed Income Statements For
the Year Ended December 31, 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 Year Ended
December 31 2009 2008 USD NTD % NTD % Net Sales $8,998 $295,742
100.0 $333,158 100.0 Cost of Sales (5,063) (166,413) (56.3)
(191,408) (57.5) Gross Profit 3,935 129,329 43.7 141,750 42.5
Operating Expenses Research and Development Expenses (657) (21,593)
(7.3) (21,481) (6.4) General and Administrative Expenses (343)
(11,286) (3.8) (11,097) (3.3) Sales and Marketing Expenses (137)
(4,488) (1.5) (4,737) (1.4) Total Operating Expenses (1,137)
(37,367) (12.6) (37,315) (11.1) Income from Operations 2,798 91,962
31.1 104,435 31.4 Non-Operating Income, Net 105 3,455 1.2 6,335 1.9
Investment Gains (Losses) 1 46 -- 702 0.2 Income before Income Tax
2,904 95,463 32.3 111,472 33.5 Income Tax Expenses (182) (5,997)
(2.0) (10,949) (3.3) Net Income 2,722 89,466 30.3 100,523 30.2
Minority Interests (8) (248) (0.1) (590) (0.2) Net Income
Attributable to Shareholders of the Parent 2,714 89,218 30.2 99,933
30.0 Earnings per Share - Diluted $0.10 $3.44 -- $3.81 -- Earnings
per ADR - Diluted (2) $0.52 $17.21 -- $19.05 -- Weighted Average
Outstanding Shares - Diluted ('M) (3) -- 25,914 -- 26,236 -- Note:
(1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD 32.868 for the year
ended December 31, 2009. (2) 1 ADR equals 5 ordinary shares. (3)
Total diluted weighted average outstanding shares were 26,236M
shares for the year ended December 31, 2008 after the retroactive
adjustment for stock dividends. TAIWAN SEMICONDUCTOR MANUFACTURING
COMPANY LIMITED AND SUBSIDIARIES Audited Consolidated Condensed
Income Statements For the Year Ended December 31, 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 Year Ended December 31 YoY Amount % Net Sales
($37,416) (11.2) Cost of Sales 24,995 (13.1) Gross Profit (12,421)
(8.8) Operating Expenses Research and Development Expenses (112)
0.5 General and Administrative Expenses (189) 1.7 Sales and
Marketing Expenses 249 (5.3) Total Operating Expenses (52) 0.1
Income from Operations (12,473) (11.9) Non-Operating Income, Net
(2,880) (45.5) Investment Gains (Losses) (656) (93.4) Income before
Income Tax (16,009) (14.4) Income Tax Expenses 4,952 (45.2) Net
Income (11,057) (11.0) Minority Interests 342 (57.9) Net Income
Attributable to Shareholders of the Parent (10,715) (10.7) Earnings
per Share - Diluted ($0.37) (9.6) Earnings per ADR - Diluted (2)
($1.84) (9.6) 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
32.868 for the year ended December 31, 2009. (2) 1 ADR equals 5
ordinary shares. (3) Total diluted weighted average outstanding
shares were 26,236M shares for the year ended December 31, 2008
after the retroactive adjustment for stock dividends. TAIWAN
SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows For the Year Ended
December 31, 2009 and for the Three Months Ended December 31, 2009,
September 30, 2009, and December 31, 2008 (Expressed in Millions of
New Taiwan Dollars ("NTD") and U.S. Dollars ("USD")) (1) 2009 4Q
2009 3Q 2009 4Q 2008 (audited) (unaudited)(unaudited)(unaudited)
USD NTD NTD NTD NTD Cash Flows from Operating Activities: Net
Income $2,714 $89,218 $32,666 $30,551 $12,446 Net Income
Attributable to Minority Interest 8 248 194 121 196 Depreciation
& Amortization 2,459 80,815 20,277 20,001 20,961 Deferred
Income Tax (53) (1,752) (630) (426) 154 Equity in Losses (Earnings)
of Equity Method Investees, Net (1) (46) (299) (454) 340 Changes in
Working Capital & Others (260) (8,517) 9,791 (3,138) 29,147 Net
Cash Provided by Operating Activities 4,867 159,966 61,999 46,655
63,244 Cash Flows from Investing Activities: Acquisitions of:
Marketable Financial Instruments (1,552) (51,025) (19,979) (20,827)
(33,059) Investments Accounted for Using Equity Method (1) (43)
(11) (32) (1) Property, Plant and Equipment (2,671) (87,785)
(42,715) (32,038) (11,258) Financial Assets Carried at Cost (10)
(321) (51) (139) (73) Proceeds from Disposal or maturity of:
Marketable Financial Instruments 1,338 43,985 16,394 1,886 63,368
Property, Plant and Equipment 1 24 17 2 24 Financial Assets Carried
at Cost 4 131 37 19 73 Others (44) (1,434) (794) (381) (1,061) Net
Cash Used In Investing Activities (2,935) (96,468) (47,102)
(51,510) 18,013 Cash Flows from Financing Activities: Decrease in
Guarantee Deposits (15) (478) (151) (77) (140) Proceeds from
Exercise of Stock Options 8 261 70 162 5 Bonus Paid to Directors
and Supervisors -- -- -- -- -- Repayment of Long- Term Bonds
Payable (243) (8,000) -- -- -- Cash Dividends Paid for Common Stock
(2,339) (76,876) -- (76,876) -- Repurchase of Treasury Stock -- --
-- -- -- Cash Bonus Paid to Employees -- -- -- -- -- Others (11)
(378) (196) (191) (163) Net Cash Used in Financing Activities
(2,600) (85,471) (277) (76,982) (298) Net Increase (Decrease) in
Cash and Cash Equivalents (668) (21,973) 14,620 (81,837) 80,959
Effect of Exchange Rate Changes and Others (42) (1,365) (279) (745)
1,209 Cash and Cash Equivalents at Beginning of Period 5,921
194,614 156,935 239,517 112,446 Cash and Cash Equivalents at End of
Period $5,211 $171,276 $171,276 $156,935 $194,614 Note: (1) Amounts
in New Taiwan dollars have been translated into U.S. dollars at the
weighted average rate of NTD32.868 for the year ended December 31,
2009. Safe Harbor Notice: The statements included in this press
release that are not historical in nature are "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. TSMC cautions
readers that forward-looking statements are subject to significant
risks and uncertainties and are based on TSMC's current
expectations. Actual results may differ materially from those
contained in such forward-looking statements for a variety of
reasons including, among others, risks associated with cyclicality
and market conditions in the semiconductor industry; demand and
supply for TSMC's foundry manufacturing capacity in particular and
for foundry manufacturing capacity in general; intense competition;
the failure of one or more significant customers to continue to
place the same level of orders with us; TSMC's ability to remain a
technological leader in the semiconductor industry; TSMC's ability
to manage its capacity; TSMC's ability to obtain, preserve and
defend its intellectual property rights; natural disasters and
other unexpected events which may disrupt production; and exchange
rate fluctuations. Additional information as to these and other
risk factors that may cause TSMC's actual results to differ
materially from TSMC's forward-looking statements may be found in
TSMC's Annual Report on Form 20-F, filed with the United States
Securities and Exchange Commission (the "SEC") on April 17, 2009,
and such other documents as TSMC may file with, or submit to, the
SEC from time to time. Except as required by law, we undertake no
obligation to update any forward-looking statement, whether as a
result of new information, future events, or otherwise. CONTACT:
Elizabeth Sun 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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