TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LTD.
 

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 April 2007
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: ___.)
 
 

 


 

FOR IMMEDIATE RELEASE
         
(TSMC LOGO)
    1Q07   Quarterly Management
Report April 26, 2007
CONTACT
Elizabeth Sun / Harrison Hsueh
Julie Wei

Investor Relations Division
TSMC
invest@tsmc.com
886-3-568-2085/2088/ 2086
Topics in This Report
  Revenue Analysis
 
  Capacity
 
  Profit & Expense Analysis
 
  Financial Condition Review
 
  Cash Flow & CapEx
 
  Recap of Recent Important Events & Announcements
Operating Results Review:

Summary:
                                         
(Amounts are on consolidated basis and are in                    
NT$ billion except noted otherwise)   1Q07   4Q06   1Q06   QoQ   YoY
EPS (NT$  per com. shr.)
    0.73       1.08       1.26       (32.5 %)     (42.3 %)
(US$  per ADR unit)
    0.11       0.16       0.20                  
 
                                       
Consolidated Net Sales
    64.90       74.96       77.85       (13.4 %)     (16.6 %)
Gross Profit
    24.61       34.45       37.73       (28.6 %)     (34.8 %)
Gross Margin
    37.9 %     46.0 %     48.5 %                
Operating Expense
    (6.73 )     (7.05 )     (6.82 )     (4.4 %)     (1.3 %)
Non-Operating Items*
    2.19       2.10       3.62       4.3 %     (39.5 %)
Net Income
    18.84       27.91       32.61       (32.5 %)     (42.2 %)
Net Profit Margin
    29.0 %     37.2 %     41.9 %                
 
Wafer Shipment (kpcs 8 inch-equiv.)
    1,566       1,718       1,738       (8.9 %)     (9.9 %)
 
*   1Q06 non-operating items include cumulative effect of changes in accounting principle.
Remarks:
The first quarter diluted earnings per share were NT$0.73, representing a 42.3% decrease over the same period last year and a 32.5% sequential decline from the previous quarter. The consolidated operating results of 1Q07 are summarized below:
First quarter net sales were NT$65 billion, down 16.6% from NT$78 billion in first quarter 2006 and down 13.4% from NT$75 billion in fourth quarter 2006.
Gross profit for 1Q07 was NT$24.6 billion, representing a year-over-year decrease of 34.8% and a quarter-over-quarter decline of 28.6%. Gross margin was 37.9% in the first quarter 2007, down from 46% in the previous quarter.
Operating expenses were NT$6.7 billion or 10.4% of the net sales. The combined result from non-operating income and long-term investments was a gain of NT$2.2 billion.
Consolidated net income attributable to shareholders of the parent company was NT$18.8 billion, down 42.2% over the same period last year and down 32.5% from the previous quarter. Net profit margin was 29% in first quarter 2007.

 


 

     
TSMC
   
April 26, 2007
  Page 2
I. Revenue Analysis
I. Wafer Sales Analysis
                         
By Application   1Q07   4Q06   1Q06
Computer
    29 %     32 %     37 %
Communication
    42 %     42 %     39 %
Consumer
    16 %     16 %     18 %
Industrial/Others
    9 %     7 %     5 %
Memory
    4 %     3 %     1 %
                         
By Technology   1Q07   4Q06   1Q06
N90-
    23 %     23 %     20 %
0.11/0.13um
    26 %     25 %     29 %
0.15/0.18um
    30 %     33 %     32 %
0.25/0.35um
    15 %     14 %     14 %
0.50um+
    6 %     5 %     5 %
                         
By Customer Type   1Q07   4Q06   1Q06
Fabless/System
    70 %     72 %     74 %
IDM
    30 %     28 %     26 %
                         
By Geography   1Q07   4Q06   1Q06
North America
    77 %     78 %     78 %
Asia Pacific
    11 %     11 %     11 %
Europe
    7 %     7 %     7 %
Japan
    5 %     4 %     4 %
Revenue Analysis:
First quarter business was affected by inventory correction and seasonality, but consolidated net sales exceeded the high end of the guidance slightly to reach NT$64.9 billion, mainly due to better than expected exchange rates and an increase in revenues from our subsidiaries.
On a sequential basis, revenues from all three applications declined. Revenues from computer, communications and consumer applications declined by 21%, 15% and 12%, respectively.
Revenues from 65nm and 90nm accounted for about 23% of total wafer sales, flat from the fourth quarter 2006. Revenues from advanced technologies (0.13-micron and below) accounted for 49% of total wafer sales, up one percentage point from the previous quarter.
Revenues from IDM customers accounted for 30% of total wafer sales during the quarter, compared to 28% in the previous quarter.
Geographically, revenues from North America accounted for 77% of total wafer sales. Meanwhile, sales from Asia Pacific, Europe and Japan accounted for 11%, 7% and 5% of wafer sales, respectively.

 


 

     
TSMC
   
April 26, 2007
  Page 3
II. Capacity
II. Capacity
                                             
        1Q07   2Q07   3Q07   4Q07   2007
Fab / (Wafer size)   (A)   (F)   (F)   (F)   (F)
Fab-2
  (6")1     257       257       273       273       1,060  
Fab-3
  (8")     259       262       267       269       1,057  
Fab-5
  (8")     144       155       163       166       627  
Fab-6
  (8")     245       255       274       279       1,053  
Fab-7
  (8")     0       0       0       0       0  
Fab-8
  (8")     239       239       260       265       1,004  
Fab-12
  (12")2     169       180       205       221       775  
Fab-14
  (12")2     103       113       154       176       546  
WaferTech
  (8")     104       105       106       106       419  
TSMC (Shanghai)   (8")     90       94       98       101       383  
TSMC total capacity (8" equiv. Kpcs)     1,836       1,913       2,128       2,232       8,109  
SSMC
  (8")     53       55       56       61       226  
Total managed capacity (8" equiv. Kpcs)     1,890       1,968       2,184       2,293       8,335  
 
Note:   1. Figues represent number of 6” wafers. Conversion to 8"-equivalent wafers is by dividing this number by 1.78
 
  2. Figues represent number of 12” wafers. Conversion to 8"-equivalent wafers is by multiplying this number by 2.25
Capacity :
Total TSMC managed capacity was 1,890K 8-inch equivalent wafers in 1Q07, 1% lower than the 1,912K 8-inch equivalent wafers in 4Q06, largely due to fewer working days and scheduled annual maintenance for some of the TSMC fabs.
TSMC managed capacity in 2Q07 will increase by 4% to reach 1,968K 8-inch equivalent wafers.
Total managed capacity for year 2007 is expected to be 8,335K 8-inch equivalent wafers, up 18% from 7,062K 8-inch equivalent wafers in year 2006.
III. Profit & Expense Analysis
III — 1. Gross Profit Analysis
                         
(Amount: NT$ billion)   1Q07   4Q06   1Q06
COGS
    40.3       40.5       40.1  
 
                       
Depreciation
    18.5       18.2       16.2  
Other MFG Cost
    21.8       22.3       23.9  
 
                       
Gross Profit
    24.6       34.5       37.7  
 
                       
Gross Margin
    37.9 %     46.0 %     48.5 %
Gross Profit Analysis:
Consolidated gross profit for the first quarter 2007 was NT$24.6 billion, or 37.9% of net sales, down from a gross profit of NT$34.5 billion, or 46% of net sales, in the previous quarter. The gross margin declined by 8.1 percentage points largely due to lower capacity utilization, lower average selling price, an increase in depreciation expenses, and a lower provision for sales returns in 4Q06.

 


 

     
TSMC
   
April 26, 2007
  Page 4
III — 2. Operating Expenses
                         
(Amount: NT$ billion)   1Q07   4Q06   1Q06
Total Operating Exp.
    6.73       7.05       6.82  
SG&A
    2.79       2.92       2.98  
Research & Development
    3.94       4.13       3.84  
 
*   Certain prior period amounts have been reclassified to conform with the current period presentation.
Operating Expenses:
Total operating expenses for 1Q07 were NT$6.7 billion, compared to NT$7.1 billion in fourth quarter 2006. Total operating expenses represented 10.4% of net sales, compared to 9.4% for the previous quarter.
Research and development expenditures decreased by NT$193 million sequentially, mainly due to a reduction in 65nm related expenditures as we entered into volume production for 65nm process node.
SG&A expenses were NT$2.8 billion, compared to NT$2.9 billion in fourth quarter 2006.
III — 3. Non-Operating Items
                         
(Amount: NT$ million)   1Q07   4Q06   1Q06
Non-Operating Income/(Exp.)
    1,830       1,713       1,417  
Net Interest Income/(Exp.)
    1,162       1,030       775  
Other Non-Operating
    668       683       642  
 
                       
L-T Investments
    361       388       600  
SSMC
    70       59       462  
Others
    291       329       138  
 
                       
Total Non-Operating Items
    2,191       2,101       2,017  
Non-Operating Items:
Combined result from non-operating income and long-term investments was a gain of NT$2.2 billion for first quarter 2007.
Non-operating income totaled NT$1.8 billion during the first quarter 2007, compared to an income of NT$1.7 billion in the previous quarter. Higher non-operating income was mainly due to an increase in interest income.
Net investment income was NT$361 million in first quarter 2007, compared to an income of NT$388 million in 4Q06.

 


 

     
TSMC
   
April 26, 2007
  Page 5
IV. Financial Condition Review
IV — 1. Liquidity Analysis
(Selected Balance Sheet Items)
                         
(Amount: NT$ billion)   1Q07   4Q06   1Q06
Cash & Marketable Securities
    217.4       195.1       192.3  
Accounts Receivable — Trade
    33.1       31.6       38.0  
Inventory
    22.3       21.4       18.4  
Total Current Assets
    286.1       260.3       259.3  
Accounts Payable
    19.2       20.6       22.4  
Current Portion of Bonds Payable
    4.5       7.0       2.5  
Accrued Liabilities and Others
    21.4       19.3       16.0  
Total Current Liabilities
    45.1       46.9       40.9  
Current Ratio (x)
    6.3       5.6       6.3  
Net Working Capital
    241.0       213.5       218.4  
Liquidity Analysis:
Total cash and marketable securities increased by NT$22 billion in the first quarter 2007, mainly due to the free cash flows generated during the quarter. As a result, TSMC ended the quarter with NT$286.1 billion in total current assets, compared to NT$260.3 billion at the end of the previous quarter.
Total current liabilities were NT$45.1 billion at the end of the first quarter 2007, compared to NT$46.9 billion at the end of the previous quarter. The decrease was mainly due to the repayment of NT$2.5 billion in bonds payable.
As a result, net working capital increased to NT$241 billion and current ratio improved to 6.3.
IV — 2. Receivable/Inventory Days
                         
    1Q07   4Q06   1Q06
Days of Receivable
    47       43       46  
Days of Inventory
    52       50       44  
Receivable/Inventory Days Trend:
Days of receivable were 47 days in 1Q07, compared to 43 days in the previous quarter.
Days of inventory increased by 2 days to reach 52 days.
IV — 3. Debt Service
                         
(Amount: NT$ billion)   1Q07   4Q06   1Q06
Cash & Marketable Securities
    217.4       195.1       192.3  
Interest-Bearing Debt
    26.2       27.6       27.2  
Net Cash Reserves
    191.2       167.5       165.1  
Debt Service:
As a result of the free cash flows generated during the quarter, net cash reserves — defined as the excess of cash and short-term marketable securities over interest-bearing debt — increased by NT$23.7 billion to reach NT$191.2 billion in 1Q07.

 


 

     
TSMC
   
April 26, 2007
  Page 6
V. Cash Flow & CapEx
V — 1. Consolidated Cash Flow Analysis
                         
(Amount: NT$ billion)
  1Q07   4Q06   1Q06
Net Income
    18.8       27.9       32.6  
Depreciation & Amortization
    20.3       19.7       17.7  
Other Op Sources/(Uses)
    (1.0 )     5.4       (1.4 )
Total Op Sources/(Uses)
    38.1       53.0       48.9  
 
                       
 
Capital Expenditure
    (14.0 )     (17.6 )     (11.5 )
Marketable Financial Instruments
    3.5       (6.7 )     (12.8 )
Other Investing Sources/(Uses)
    (2.9 )     (4.1 )     0.2  
Net Investing Sources/(Uses)
    (13.4 )     (28.4 )     (24.1 )
 
                       
 
                       
Repayment of Bonds Payable
    (2.5 )     0.0       0.0  
Other Financing Sources/(Uses)
    (0.3 )     0.8       0.1  
 
                       
 
                       
Net Financing Sources/(Uses)
    (2.8 )     0.8       0.1  
 
                       
Net Cash Position Changes
    21.9       25.4       24.9  
 
                       
Exchange Rate Changes & Others
    0.6       (0.5 )     (0.2 )
 
                       
Ending Cash Balance
    140.3       117.8       121.3  
Summary of Consolidated Cash Flow:
During first quarter 2007, TSMC generated NT$38 billion in cash from operating activities, mainly from net income of NT$18.8 billion and depreciation & amortization of NT$20.3 billion.
Net cash used in investment activities totaled NT$13.4 billion, mainly due to capital expenditures of NT$14 billion.
Net cash used in financing activities was NT$2.8 billion during the quarter, mainly for the repayment of NT$2.5 billion in bonds payable.
As a result, TSMC ended the quarter with a cash balance of NT$140.3 billion, NT$22.4 billion higher than in 4Q06.
V — 2. Consolidated Operating and Free Cash Flows
(BAR GRAPH)
Consolidated Operating and Free Cash Flows:
TSMC continues to generate strong operating cash flows and free cash flows. Cash flows generated from operating activities were NT$38 billion, down from NT$53 billion generated in 4Q06. Free cash flows, defined as the excess of operating cash flows over capital expenditures, totaled NT$24.2 billion in 1Q07, compared to NT$35.4 billion generated in the previous quarter, mainly due to lower operating cash flows in 1Q07.
V — 3. Capital Expenditures
                 
(In US$ Million)   4Q06   1Q07
TSMC
    561       419  
TSMC Subsidiaries
    10       5  
Total TSMC
    571       424  
Capital Expenditures:
Capital expenditures for TSMC consolidated group totaled US$424 million during the quarter. Most of the spending was for the purchase of 12-inch production equipment.
For year 2007, total capital expenditures for TSMC consolidated group is expected to be in the range of US$2.6 billion to US$2.8 billion, unchanged from our previous guidance provided in January 2007.

 


 

     
TSMC
   
April 26, 2007
  Page 7
VI. Recap of Recent Important Events & Announcements
  TSMC 45nm Design Ecosystem In Place (2007/04/09)
 
  TSMC Expects to Enter 45nm Production in September (2007/04/09)
 
  TSMC Board Approves Conversion of Philips’ TSMC Common Shares to ADSs (2007/04/02)
 
  TSMC Announces 55nm Process Technology Readiness (2007/03/27)
 
  Philips and TSMC Announce Joint Plan to Facilitate Orderly Exit by Philips from TSMC Shareholding (2007/03/09)
 
  TSMC Achieves 65 Nanometer Embedded DRAM Milestone (2007/03/06)
 
  TSMC Board Proposes Distribution of NT$3.0 Cash and 0.5% Stock Per Share (2007/02/06)
 
  TSMC Opens Office in India (2007/02/05)
 
*   Please visit TSMC’s Web site (http://www.tsmc.com) for details about these and other announcements.

 


 

(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)
                                                                                         
    March 31, 2007 (unaudited)     December 31, 2006 (Audited)     March 31, 2006 (unaudited)     QoQ     YoY  
    USD     NTD     %     NTD     %     NTD     %     Amount     %     Amount     %  
ASSETS
                                                                                       
Current Assets
                                                                                       
Cash and Cash Equivalents
  $ 4,239     $ 140,274       23.0     $ 117,837       20.1     $ 121,251       21.8     $ 22,437       19.0     $ 19,023       15.7  
Investments in Marketable Financial Instruments
    2,330       77,096       12.7       77,242       13.1       71,006       12.8       (146 )     -0.2       6,090       8.6  
Accounts Receivable — Trade
    1,000       33,094       5.4       31,589       5.4       38,012       6.8       1,505       4.8       (4,918 )     -12.9  
Inventories, Net
    673       22,259       3.7       21,431       3.6       18,409       3.3       828       3.9       3,850       20.9  
Other Current Assets
    404       13,356       2.2       12,218       2.1       10,572       2.0       1,138       9.3       2,784       26.3  
 
                                                                 
Total Current Assets
    8,646       286,079       47.0       260,317       44.3       259,250       46.7       25,762       9.9       26,829       10.3  
 
                                                                 
 
                                                                                       
Long-Term Investments
    1,577       52,185       8.6       53,895       9.2       34,726       6.3       (1,710 )     -3.2       17,459       50.3  
Property, Plant and Equipment
    22,188       734,182       120.6       717,132       122.1       655,396       118.0       17,050       2.4       78,786       12.0  
Less: Accumulated Depreciation
    (14,622 )     (483,834 )     -79.5       (463,038 )     -78.8       (413,852 )     -74.5       (20,796 )     4.5       (69,982 )     16.9  
 
                                                                 
Property, Plant and Equipment, Net
    7,566       250,348       41.1       254,094       43.3       241,544       43.5       (3,746 )     -1.5       8,804       3.6  
 
                                                                 
 
                                                                                       
Other Assets
    609       20,159       3.3       19,179       3.2       19,772       3.5       980       5.1       387       2.0  
 
                                                                 
Total Assets
  $ 18,398     $ 608,771       100.0     $ 587,485       100.0     $ 555,292       100.0     $ 21,286       3.6     $ 53,479       9.6  
 
                                                                 
 
                                                                                       
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                                                                       
Current Liabilities
                                                                                       
Short-Term Bank Loans
  $ 2     $ 79       0.0     $           $           $ 79           $ 79        
Accounts Payables
    306       10,129       1.7       9,802       1.7       10,687       1.9       327       3.3       (558 )     -5.2  
Payables to Contractors and Equipment Suppliers
    275       9,094       1.5       10,769       1.8       11,680       2.1       (1,675 )     -15.6       (2,586 )     -22.1  
Accrued Expenses and Other Current Liabilities
    639       21,101       3.4       19,286       3.3       15,996       2.9       1,815       9.4       5,105       31.9  
Current Portion of Bonds Payable and Long-Term liabilities
    142       4,714       0.8       7,004       1.2       2,505       0.5       (2,290 )     -32.7       2,209       88.1  
 
                                                                   
Total Current Liabilities
    1,364       45,117       7.4       46,861       8.0       40,868       7.4       (1,744 )     -3.7       4,249       10.4  
 
                                                                 
Bonds Payable
    378       12,500       2.1       12,500       2.1       17,000       3.1             0.0       (4,500 )     -26.5  
Other Long-Term Liabilities
    586       19,415       3.2       18,986       3.2       18,813       3.3       429       2.3       602       3.2  
 
                                                                 
Total Liabilities
    2,328       77,032       12.7       78,347       13.3       76,681       13.8       (1,315 )     -1.7       351       0.5  
 
                                                                 
Shareholders’ Equity Attributable to Shareholders of the Parent
                                                                                       
Capital Stock
    7,807       258,330       42.4       258,297       44.0       247,331       44.5       33       0.0       10,999       4.4  
Capital Surplus
    1,639       54,231       8.9       54,107       9.2       57,208       10.3       124       0.2       (2,977 )     -5.2  
Retained Earnings
    6,527       215,963       35.5       197,125       33.6       175,378       31.6       18,838       9.6       40,585       23.1  
Treasury Stock
    (28 )     (918 )     -0.2       (918 )     -0.2       (918 )     -0.2             0.0              
Others
    31       1,020       0.2       (630 )     -0.1       (1,066 )     -0.1       1,650       -261.9       2,086       -195.7  
 
                                                                 
Total Equity Attributable to Shareholders of the Parent
    15,976       528,626       86.8       507,981       86.5       477,933       86.1       20,645       4.1       50,693       10.6  
Minority Interest
    94       3,113       0.5       1,157       0.2       678       0.1       1,956       169.1       2,435       359.4  
 
                                                                 
Total Shareholders’ Equity
    16,070       531,739       87.3       509,138       86.7       478,611       86.2       22,601       4.4       53,128       11.1  
 
                                                                 
Total Liabilities & Shareholders’ Equity
  $ 18,398     $ 608,771       100.0     $ 587,485       100.0     $ 555,292       100.0     $ 21,286       3.6     $ 53,479       9.6  
 
                                                                 
 
Note : (1) Amounts in New Taiwan dollars have been translated into U.S. dollars at the rate of NT$33.089 as of March 31, 2007.

 


 

(TSMC LOGO)
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended March 31, 2007, December 31, 2006, and March 31, 2006
(Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”)
(1)
Except for Per Share Amounts and Shares Outstanding)
                                                                                         
    Q1 2007     Q4 2006     Q1 2006   QoQ   YoY  
    USD     NTD     %     NTD     %     NTD     %     Amount     %     Amount     %  
Net Sales
  $ 1,973     $ 64,897       100.0     $ 74,963       100.0     $ 77,850       100.0     $ (10,066 )     -13.4     $ (12,953 )     -16.6  
Cost of Sales
    (1,225 )     (40,287 )     -62.1       (40,510 )     -54.0       (40,123 )     -51.5       223       -0.6       (164 )     0.4  
 
                                                                 
Gross Profit
    748       24,610       37.9       34,453       46.0       37,727       48.5       (9,843 )     -28.6       (13,117 )     -34.8  
 
                                                                 
Operating Expenses
                                                                                       
Research and Development Expenses (4)
    (120 )     (3,942 )     -6.1       (4,135 )     -5.5       (3,840 )     -4.9       193       -4.6       (102 )     2.7  
General and Administrative Expenses (4)
    (58 )     (1,902 )     -2.9       (2,117 )     -2.8       (1,864 )     -2.4       215       -10.2       (38 )     2.0  
Sales and Marketing Expenses (4)
    (26 )     (889 )     -1.4       (794 )     -1.1       (1,121 )     -1.4       (95 )     11.9       232       -20.7  
 
                                                                 
Total Operating Expenses
    (204 )     (6,733 )     -10.4       (7,046 )     -9.4       (6,825 )     -8.8       313       -4.4       92       -1.3  
 
                                                                 
 
                                                                                       
Income from Operations
    544       17,877       27.5       27,407       36.6       30,902       39.7       (9,530 )     -34.8       (13,025 )     -42.1  
 
                                                                 
Non-Operating Income, Net
    55       1,830       2.8       1,713       2.3       1,417       1.8       117       6.9       413       29.2  
Investment Gains
    11       361       0.6       388       0.5       600       0.8       (27 )     -7.1       (239 )     -39.9  
 
                                                                 
Income before Income Tax
    610       20,068       30.9       29,508       39.4       32,919       42.3       (9,440 )     -32.0       (12,851 )     -39.0  
Income Tax (Expenses) Benefits
    (33 )     (1,107 )     -1.7       (1,494 )     -2.0       (1,855 )     -2.4       387       -25.9       748       -40.3  
 
                                                                 
Net Income Before Cumulative Effect of Changes in Accounting Principles
    577       18,961       29.2       28,014       37.4       31,064       39.9       (9,053 )     -32.3       (12,103 )     -39.0  
Cumulative Effect of Changes in Accounting Principles (Net of Tax)
                                  1,607       2.1                   (1,607 )     -100.0  
 
                                                                 
Net Income
    577       18,961       29.2       28,014       37.4       32,671       42.0       (9,053 )     -32.3       (13,710 )     -42.0  
Minority Interest
    (4 )     (122 )     -0.2       (102 )     -0.2       (64 )     -0.1       (20 )     18.9       (58 )     91.1  
 
                                                                 
Net Income Attributable to Shareholders of the Parent
    573       18,839       29.0       27,912       37.2       32,607       41.9       (9,073 )     -32.5       (13,768 )     -42.2  
 
                                                                 
 
                                                                                       
Earnings per Share — Diluted
  $ 0.02     $ 0.73             $ 1.08             $ 1.26             -$ 0.35       -32.5     -$ 0.53       -42.3  
 
                                                                       
Earnings per ADR — Diluted (2)
  $ 0.11     $ 3.65             $ 5.41             $ 6.32             -$ 1.76       -32.5     -$ 2.67       -42.3  
 
                                                                       
 
                                                                                       
Weighted Average Outstanding Shares – Diluted (‘M) (3)
            25,820               25,815               25,805                                          
 
    Note:
 
(1)   Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD32.888 for the first quarter of 2007.
 
(2)   1 ADR equals 5 ordinary shares.
 
(3)   Total diluted weighted average outstanding shares were 25,805M shares for 1Q06 after the retroactive adjustments for stock dividends and stock bonus.
 
(4)   Certain prior period balances have been reclassified to conform to the current period presentation.

 


 

(TSMC LOGO)
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
For the Three Months Ended March 31, 2007, December 31, 2006, and March 31, 2006
(Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”)) (1)
                                 
    1Q 2007     4Q 2006     1Q 2006  
    (Unaudited)     (Unaudited)     (Unaudited)  
    USD     NTD     NTD     NTD  
Cash Flows from Operating Activities:
                               
Net Income
  $ 573     $ 18,839     $ 27,912     $ 32,607  
Net Income Attributable to Minority Interest
    4       122       103       64  
Depreciation & Amortization
    616       20,251       19,682       17,734  
Deferred Income Tax
    (30 )     (972 )     7       (609 )
Equity in Earnings of Equity Method Investees, Net
    (11 )     (361 )     (388 )     (600 )
Changes in Working Capital & Others
    8       265       5,698       (282 )
 
                       
Net Cash Provided by Operating Activities
    1,160       38,144       53,014       48,914  
 
                               
Cash Flows from Investing Activities:
                               
Acquisitions:
                               
Marketable Financial Instruments
    (480 )     (15,796 )     (38,210 )     (32,731 )
Investments Accounted for Using Equity Method
                (2,433 )      
Property, Plant and Equipment
    (424 )     (13,959 )     (17,580 )     (11,510 )
Financial Assets Carried at Cost
    (6 )     (212 )     (16 )     (122 )
Proceeds from Disposal or maturity of:
                               
Marketable Financial Instruments
    586       19,259       31,539       19,931  
Investments Accounted for Using Equity Method
                       
Property, Plant and Equipment
          1       54       462  
Financial Assets Carried at Cost
          14       21        
Others
    (84 )     (2,717 )     (1,750 )     (142 )
 
                       
Net Cash Used In Investing Activities
    (408 )     (13,410 )     (28,375 )     (24,112 )
 
                               
Cash Flows from Financing Activities:
                               
Increase (Decrease) in Guarantee Deposits
    (12 )     (388 )     133       322  
Proceeds from Exercise of Stock Options
    4       122       152       117  
Bonus Paid to Directors and Supervisors
                       
Repayment of Long-Term Bonds Payable
    (76 )     (2,500 )            
Cash Dividends Paid for Common Stock
                       
Cash Bonus Paid to Employees
                       
Others
    (1 )     (28 )     480       (323 )
 
                       
Net Cash (Used in) Provided by Financing Activities
    (85 )     (2,794 )     765       116  
 
                               
 
                       
Net Increase in Cash and Cash Equivalents
    667       21,940       25,404       24,918  
 
                       
 
Effect of Exchange Rate Changes and Others
    15       497       (470 )     (151 )
 
                               
Cash and Cash Equivalents at Beginning of Period
    3,583       117,837       92,903       96,484  
 
                       
 
                               
Cash and Cash Equivalents at End of Period
  $ 4,265     $ 140,274     $ 117,837     $ 121,251  
 
                       
 
Note: (1)    Amounts in New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD32.888 for the three months ended March 31, 2007.

 


 

TSMC 2007 First Quarter Results Investor Conference April 26, 2007


 

Agenda Welcome 2007 1Q Consolidated Financial Results Q&A


 

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 20, 2007 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.


 

Net Income attributable to shareholders of the parent company Annualized ROE for the quarter based on average equity attributable to shareholders of the parent 1Q'07 Result Highlights


 

Income Statements Net Income attributable to shareholders of the parent company


 

Balance Sheets & Key Indices


 

Cash Flows


 

Note: 1 Figures represent number of 6" wafers. Conversion to 8"-equivalent wafers is by dividing this number by 1.78. 2 Figures represent number of 12" wafers. Conversion to 8"-equivalent wafers is by multiplying this number by 2.25. Installed Capacity


 

Capital Expenditures 2007 CapEx to be in the range of US$2.6-2.8 billion


 

Sales Breakdown by Technology


 

Sales Breakdown by Application


 

Note: This chart does not reflect the actual shipment destination of sales. Sales Breakdown by Geography


 

Sales Breakdown by Customer


 

2Q'07 Guidance Revenue is expected to be between NT$73 billion and NT$75 billion Gross profit margin is expected to be between 42% and 44%; Operating profit margin is expected to be between 32% and 34%.


 

Recap of Recent Major Events TSMC 45nm Design Ecosystem In Place (2007/04/09) TSMC Expects to Enter 45nm Production in September (2007/04/09) TSMC Board Approves Conversion of Philips' TSMC Common Shares to ADSs (2007/04/02) TSMC Announces 55nm Process Technology Readiness (2007/03/27) Philips and TSMC Announce Joint Plan to Facilitate Orderly Exit by Philips from TSMC Shareholding (2007/03/09) TSMC Achieves 65 Nanometer Embedded DRAM Milestone (2007/03/06) TSMC Board Proposes Distribution of NT$3.0 Cash and 0.5% Stock Per Share (2007/02/06) TSMC Opens Office in India (2007/02/05) * Please visit TSMC's Web site (http://www.tsmc.com) for details and other announcements.


 

http://www.tsmc.com invest@tsmc.com


 

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: April 26, 2007
  By   /s/ Lora Ho    
 
           
 
      Lora Ho    
 
      Vice President & Chief Financial Officer