Year-over-year, fourth quarter revenue decreased 31.2% while net income and diluted EPS decreased 63.9% and 62.3%, respectively. Compared to third quarter of 2008, fourth quarter results represent a 30.6% decrease in revenue, a decrease of 59.3% in net income, and a decrease of 59% in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.
Triggered by a deepening economic recession worldwide and customers' inventory adjustment, fourth quarter saw a sharp decline in the demand for semiconductors across all applications. Gross margin for the quarter was 31.3%, operating margin was 18.6%, and net margin was 19.3%.
Advanced process technologies (0.13-micron and below) accounted for 65% of wafer revenues with 90-nanometer process technology accounting for 21% and 65- nanometer reaching 27% of total wafer sales.
"The global economic recession continues to worsen. Fourth quarter end- market sell-through was much below the already conservative expectations, and consumer demand remains very weak. This has led to a rising DOI for our customers, who continue to pare their inventories aggressively, resulting in a further significant cut back of wafer demand," said Lora Ho, VP and Chief Financial Officer of TSMC. "Based on our current business outlook, management expects overall performance for first quarter 2009 to be as follows":
-- Revenue is expected to be between NT$32 billion and NT$35 billion;
-- Gross profit margin is expected to be between 1% and 5%;
-- Operating profit margin is expected to be between -19% and -15%.
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 22, 2009. The conference call will also be webcast live on the Internet. Investors wishing to access the live webcast should visit TSMC's web site at http://www.tsmc.com at least 15 minutes prior to the broadcast. Instructions will be provided on the web site to facilitate the download and installation of necessary audio applications. Investors without Internet access may listen to the conference call, in listen-only mode, by dialing 1-617-801-9714 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 An archived version of the webcast will be available on TSMC's web site for six months following the Company's quarterly review conference call and webcast.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, IP, design tools and reference flows. The Company's total managed capacity in 2008 is to exceed nine million (8-inch equivalent) wafers, including capacity from two advanced 12-inch Gigafabs, four eight-inch fabs, one six-inch fab, as well as TSMC's wholly owned subsidiaries, WaferTech and TSMC (Shanghai), 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 see http://www.tsmc.com .
-- Management Report and Tables Follow --
TSMC 4Q08 Quarterly Management Report January 22, 2009
Topics in This Report
-- Revenue Analysis
-- Profit & Expense Analysis
-- Financial Condition Review
-- Cash Flow
-- CapEx & Capacity
-- Recap of Recent Important Events & Announcements
Operating Results Review:
Summary:
(Amounts are on consolidated basis
and are in NT billions except
otherwise noted) 4Q08 3Q08 4Q07 2008 2007
EPS (NT$ per common share) 0.48 1.18 1.29 3.83 4.06
(US$ per ADR unit) 0.07 0.19 0.20 0.61 0.62
Consolidated Net Sales 64.56 92.98 93.86 333.16 322.63
Gross Profit 20.19 43.09 44.84 141.75 142.35
Gross Margin 31.3% 46.3% 47.8% 42.5% 44.1%
Operating Expense (8.17) (10.18) (8.08) (37.31) (30.63)
Operating Income 12.02 32.92 36.76 104.44 111.72
Operating Margin 18.6% 35.4% 39.2% 31.4% 34.6%
Non-Operating Items 1.07 1.51 2.57 7.04 9.92
Net Income 12.45 30.57 34.48 99.93 109.18
Net Profit Margin 19.3% 32.9% 36.7% 30.0% 33.8%
Wafer Shipment (kpcs 8 inch-equiv.) 1,532 2,411 2,357 8,467 8,005
Note: Total outstanding shares were 25,625mn units at 12/31/08
Financial Highlights:
Fourth Quarter 2008
-- Consolidated net sales were NT$64.6 billion, declining 30.6% quarter-
over-quarter and declining 31.2% year-over-year;
-- Gross margin was 31.3%, a decrease by 15.0 percentage points from 3Q08.
Operating margin was 18.6%, declined by 16.8 percentage points from
3Q08. On a year-over-year basis, gross margin and operating margin
declined by 16.5 and 20.6 percentage points respectively, although 4Q07
results did not include the expensing of employee profit sharing;
-- EPS was NT$0.48, with net profit margin of 19.3%
Full Year 2008
-- Consolidated net sales were NT$333.2 billion, up 3.3% from 2007;
-- Gross margin and operating margin were 42.5% and 31.4%, declining 1.6
and 3.2 percentage points from 2007 respectively. Notice however, 2007
results did not include expensing of employee profit sharing;
-- Earnings per share was NT$3.83, with net profit margin of 30.0%
I. Revenue Analysis
I. Wafer Sales Analysis
By Application 4Q08 3Q08 4Q07
Computer 32% 33% 35%
Communication 43% 41% 42%
Consumer 19% 20% 15%
Industrial/Others 6% 6% 8%
By Technology 4Q08 3Q08 4Q07
65nm and below 27% 25% 10%
90nm 21% 26% 29%
0.11/0.13um 17% 15% 20%
0.15/0.18um 22% 22% 27%
0.25/0.35um 10% 9% 10%
0.50um+ 3% 3% 4%
By Customer Type 4Q08 3Q08 4Q07
Fabless/System 72% 70% 68%
IDM 28% 30% 32%
By Geography 4Q08 3Q08 4Q07
North America 73% 74% 79%
Asia Pacific 13% 13% 11%
Europe 11% 10% 8%
Japan 3% 3% 2%
Revenue Analysis:
Application -- Fourth quarter revenue was NT$64.6 billion. 4Q08 business saw a sharp decline in the demand for wafer while the NT dollar depreciated 5.6% against the US dollar. Weakness in demand was seen across all applications during the quarter. On a sequential basis, revenues from consumer, computer, and communication applications decreased 39%, 34% and 32%, respectively.
Technology -- Revenue from 65nm reached 27% of total wafer sales during the quarter, up from 25% in the previous quarter. Meanwhile, revenue from 90nm declined from 26% to 21% of total wafer sales. Overall, revenues from advanced technologies (0.13-micron and below) accounted for 65% of total wafer sales, slightly below the 66% in 3Q08.
Customer -- Revenues from IDM customers accounted for 28% of total wafer sales in 4Q08, slightly lower than 3Q08, due to increasing in-sourcing of those customers in the weak business environment.
Geography -- On a sequential basis, there were no major changes on the geographic breakdown, while revenues from customers based in North America accounted for 73% of total wafer sales.
II. Profit & Expense Analysis
II-1. Gross Profit Analysis
(In NT billions) 4Q08 3Q08 4Q07 2008 2007
COGS 44.37 49.89 49.02 191.41 180.28
Depreciation 19.29 19.06 18.50 74.70 73.07
Other MFG Cost 25.08 30.83 30.52 116.71 107.21
Gross Profit 20.19 43.09 44.84 141.75 142.35
Gross Margin 31.3% 46.3% 47.8% 42.5% 44.1%
Gross Profit Analysis:
Gross margin in 4Q08 was 31.3%, down 15.0 percentage points from 3Q08, mainly driven by a sharp decline of production activities, partially offset by cost improvement and a more favorable exchange rate.
Gross margin for full year 2008 was 42.5%, down 1.6 percentage points from 2007, reflecting the impact from the expensing of employee profit sharing (2.3 percentage points).
II-2. Operating Expenses
(In NT billions) 4Q08 3Q08 4Q07 2008 2007
Total Operating Exp. 8.17 10.18 8.08 37.31 30.63
SG&A 3.34 4.20 3.07 15.83 12.68
Research & Development 4.83 5.98 5.01 21.48 17.95
Total Operating Exp. as a % of Sales 12.7% 10.9% 8.6% 11.1% 9.5%
Operating Expenses:
Total operating expenses for 4Q08 decreased by 19.7% sequentially to NT$8.2 billion, or 12.7% of net sales, compared with 10.9% of net sales in 3Q08.
Research and development expenses decreased by NT$1.2 billion quarter- over-quarter, mainly due to a lower level of employee profit sharing.
SG&A expenses decreased by NT$849 million from 3Q08, also due to a sharply lower level of employee profit sharing.
On a full year basis, total operating expenses accounted for 11.1% of net sales in 2008, compared with 9.5% of net sales in 2007, mainly reflecting the impact from expensing of employee profit sharing in 2008 (2.2 percentage points).
II-3. Non-Operating Items
(In NT billions) 4Q08 3Q08 4Q07 2008 2007
Non-Operating Inc./(Exp.) 1.41 1.33 1.69 6.34 7.41
Net Interest Income/(Exp.) 1.18 1.15 1.21 4.76 4.81
Other Non-Operating 0.23 0.18 0.48 1.58 2.60
L-T Investments (0.34) 0.18 0.88 0.70 2.51
SSMC (0.07) 0.15 0.47 0.76 1.18
Others (0.27) 0.03 0.41 (0.06) 1.33
Total Non-Operating Items 1.07 1.51 2.57 7.04 9.92
Non-Operating Items:
For 4Q08, combined result from non-operating income and long-term investments income was a gain of NT$1.1 billion.
Non-operating income was NT$1.4 billion, up from NT$1.3 billion in 3Q08, primarily due to foreign exchange gains and no additional impairment losses on idle assets as compared to 3Q08. Meanwhile, the gains were partially offset by impairment losses of financial assets from venture capital funds by about NT$481 million in this quarter.
Net investment losses in the quarter were NT$340 million, mainly from VIS and SSMC.
For full year 2008, non-operating income decreased by NT$1.1 billion to NT$6.3 billion, mostly due to impairment losses on financial assets and lower valuation on certain marketable securities, partially offset by an increase of foreign exchange gains. Net investment gains decreased by NT$1.8 billion to NT$702 million, mainly due to VIS and SSMC. Combining results from non- operating income and long-term investments, the gain was NT$7.0 billion in 2008, compared with a gain of NT$9.9 billion in 2007.
II-4. PSE Impact
4Q08 3Q08 4Q07 2008 2007
Gross Margin w/ PSE 31.3% 46.3% 43.0% 42.5% 39.7%
Gross Margin w/o PSE 32.8% 48.9% 47.8% 44.8% 44.1%
PSE Impact -1.5% -2.6% -4.8% -2.3% -4.4%
Operating Margin w/ PSE 18.6% 35.4% 29.8% 31.4% 26.0%
Operating Margin w/o PSE 21.5% 40.3% 39.2% 35.9% 34.6%
PSE Impact -2.9% -4.9% -9.4% -4.5% -8.6%
* PSE: Profit Sharing Expenses
** 2007 PSE impact is estimated using the 6/12/2008 closing share price
adjusted for dividends
The Impact of Employee Profit Sharing:
Total impact from employee profit sharing expensing (PSE) on gross margin in 4Q08 was 1.5 percentage points, down 1.1 percentage points from 3Q08, due to an overall decrease in net income. Similarly, total PSE impact on operating margin was 2.9 percentage points in 4Q08.
For full year 2008, total impacts from PSE on gross margin and operating margin were 2.3 percentage points and 4.5 percentage points, respectively.
III. Financial Condition Review
III-1. Liquidity Analysis
(Selected Balance Sheet Items)
(In NT billions) 4Q08 3Q08 4Q07
Cash & Marketable Securities 211.45 158.17 174.83
Accounts Receivable -- Trade 18.50 45.33 42.42
Inventory 14.88 21.82 23.86
Total Current Assets 252.62 232.35 249.82
Accounts Payable 14.04 17.75 19.33
Current Portion of Bonds Payable 8.00 8.00 0.00
Accrued Bonus to Employees,
Directors and Supervisors 15.37 13.46 0.00
Accrued Liabilities and Others 19.40 22.92 29.38
Total Current Liabilities 56.81 62.13 48.71
Current Ratio (x) 4.4 3.7 5.1
Net Working Capital 195.81 170.22 201.11
Liquidity Analysis:
At the end of 4Q08, total current assets increased by NT$ 20.3 billion to NT$252.6 billion, mainly due to the free cash flow of NT$52.0 billion generated in this quarter.
Total current liabilities decreased by NT$5.3 billion in 4Q08, primarily due to declines in accounts payable and in accruals due to lower levels of production activities.
Net working capital was NT$195.8 billion and current ratio increased to 4.4 at the end of this quarter.
III-2. Receivable/Inventory Days
(In Number of Days)
4Q08 3Q08 4Q07
Days of Receivable 46 43 42
Days of Inventory 40 45 48
Receivable and Inventory Days:
Sequentially, days of receivable increased by three days to 46 days in 4Q08, mainly due to a sharp decline of revenue in the quarter.
Days of inventory decreased by five days to 40 days, mostly due to a lower level of production activities resulted from continued weaker demand environment.
III-3. Debt Service
(In NT billions) 4Q08 3Q08 4Q07
Cash & Marketable Securities 211.45 158.17 174.83
Interest-Bearing Debt 23.44 23.41 23.06
Net Cash Reserves 188.01 134.76 151.77
Debt Service:
Net cash reserves -- defined as the excess of cash and short-term marketable securities over interest-bearing debt -- increased by NT$53.2 billion to NT$188.0 billion at the end of 4Q08, primarily due to free cash flow of NT$52.0 billion generated in this quarter.
IV. Cash Flow
IV-1. Cash Flow Analysis
(In NT billions) 4Q08 3Q08 4Q07
Net Income 12.45 30.57 34.49
Depreciation & Amortization 20.96 20.69 20.28
Other Operating Sources/(Uses) 29.83 4.64 4.99
Total Operating Sources/(Uses) 63.24 55.90 59.76
Capital Expenditure (11.26) (10.38) (19.78)
Marketable Financial Instruments 30.31 (18.07) 8.20
Other Investing Sources/(Uses) (1.04) 1.93 (1.08)
Net Investing Sources/(Uses) 18.01 (26.52) (12.66)
Cash Dividends 0.00 (76.78) 0.00
Employee Profit Sharing 0.00 (3.94) 0.00
Repayment of Bonds Payable 0.00 0.00 (4.50)
Purchase of Treasury Stock 0.00 (23.81) (45.41)
Other Financing Sources/(Uses) (0.30) (0.43) (0.20)
Net Financing Sources/(Uses) (0.30) (104.96) (50.11)
Net Cash Position Changes 80.95 (75.58) (3.01)
Exchange Rate Changes & Others 1.21 2.68 (0.33)
Ending Cash Balance 194.61 112.45 94.99
IV-1.2. Cash Flow Analysis
(In NT billions) 2008 2007
Net Income 99.93 109.18
Depreciation & Amortization 81.51 80.01
Other Operating Sources/(Uses) 40.05 (5.42)
Total Operating Sources/(Uses) 221.49 183.77
Capital Expenditure (59.22) (84.00)
Marketable Financial Instruments 52.35 24.68
Other Investing Sources/(Uses) (1.17) (11.37)
Net Investing Sources/(Uses) (8.04) (70.69)
Cash Dividends (76.78) (77.39)
Employee Profit Sharing (3.94) (4.57)
Repayment of Bonds Payable 0.00 (7.00)
Repurchase of Treasury Stock (33.48) (45.41)
Other Financing Sources/(Uses) (1.19) (1.04)
Net Financing Sources/(Uses) (115.39) (135.41)
Net Cash Position Changes 98.06 (22.33)
Exchange Rate Changes & Others 1.56 (0.52)
Ending Cash Balance 194.61 94.99
Summary of Cash Flow:
Cash generated from operating activities totaled NT$63.2 billion during 4Q08, up from NT$55.9 billion in 3Q08, mainly due to a sharp decline of non- cash working capital as a result of much lowered levels of production activities.
Net cash generated from investing activities was NT$18.0 billion in 4Q08, reflecting the capital expenditure of NT$11.3 billion and a net decrease of NT$30.3 billion in marketable financial instruments.
As a result, TSMC ended 4Q08 with a cash balance of NT$194.6 billion.
On a full year basis, cash generated from operating activities increased by NT$37.7 billion in 2008, meanwhile, capital expenditures and marketable financial instruments decreased by NT$24.8 billion and NT$27.7 billion, respectively. Cash dividends paid in 2008 were NT$76.8 billion. TSMC also spent NT$33.5 billion in share buybacks.
IV-2. Operating and Free Cash Flows:
Cash flows generated from operating activities were NT$63.2 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, totaled NT$52.0 billion in 4Q08, compared to NT$45.5 billion in 3Q08.
Total free cash flow generated in 2008 reached NT$162.3 billion, compared with NT$99.8 billion in 2007.
Please refer to the link for the index charts:
www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf .
V. CapEx & Capacity
V-1. Capital Expenditures
(In US millions) 1Q08 2Q08 3Q08 4Q08 2008 2007
TSMC 452 712 317 326 1,807 2,475
XinTec and GUC 13 5 3 2 23 47
TSMC Shanghai & WaferTech 18 11 11 12 52 31
Other TSMC Subsidiaries 1 0 1 2 4 4
Total TSMC 484 728 332 342 1,886 2,557
Capital Expenditures:
Capital expenditures for TSMC on a consolidated basis totaled US$342 million in 4Q08.
For year 2008, total capital expenditures for TSMC consolidated group was US$1.9 billion, compared with US$2.6 billion spent in 2007.
V-2. Capacity
Fab / (Wafer size) 1Q08 2Q08 3Q08 4Q08 2008 1Q09
(A) (A) (A) (A) (A) (F)
Fab-2 (6") Note 1 248 267 270 272 1,056 274
Fab-3 (8") 277 281 268 274 1,100 286
Fab-5 (8") 163 165 161 161 650 162
Fab-6 (8") 265 267 268 282 1,082 295
Fab-8 (8") 262 275 267 272 1,076 275
Fab-12 (12") Note 2 197 207 214 221 840 218
Fab-14 (12") Note 2 167 185 229 236 818 238
WaferTech (8") 105 105 106 106 420 106
TSMC (Shanghai) (8") 88 110 128 128 453 128
TSMC total capacity
(8" equiv. Kpcs) 2,117 2,236 2,346 2,405 9,104 2,431
SSMC (8") 63 67 69 73 272 64
Total managed capacity
(8" equiv. Kpcs) 2,180 2,303 2,416 2,478 9,377 2,495
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 TSMC managed capacity was 2,478K 8-inch equivalent wafers in the fourth quarter, 3% more than 3Q08. TSMC managed capacity in 1Q09 is expected to increase by 1% to reach 2,495K 8-inch equivalent wafers, mainly due to productivity improvement.
Total managed capacity in 2008 was 9,377K 8-inch equivalent wafers, representing an increase of 13% from 8,290K 8-inch equivalent wafers in 2007, while capacity for 12-inch wafer fabs increased by 27%.
VI. Recap of Recent Important Events & Announcements
-- TSMC Wins the Award of "Grand Prix for Best Overall Investor Relations
at a Taiwanese Company - Large-Cap" by IR Magazine (2008/12/11)
-- TSMC Chairman Dr. Morris Chang Receives Semiconductor Industry
Association's Highest Honor "The 2008 Robert N. Noyce Award"
(2008/11/18)
-- TSMC Ramps 40nm Volume Production to Promote Innovation as Foundries
Assume a Larger Role for $300 Billion Industry - Most Advanced Cellular,
Wireless, and Consumer Electronic Innovations Targeted for Foundry's
First 40 Nanometer (nm) Logic Process (2008/11/17)
-- TSMC Recognizes Outstanding Suppliers at Supply Chain Management Forum
(2008/11/14)
-- TSMC Board Approves Cancellation of Treasury Shares to Reduce Total
Issued Shares by 1.07 Percent (2008/11/11)
-- TSMC Adds New High Voltage Features to Advanced 0.13-micron Processes
Aimed at High Resolution Display Drivers (2008/11/05)
-- TSMC Holds 2008 Green Forum on "Present and Future of Green Factories"
to Launch Taiwan Corporate Sustainability Forum Series (2008/10/16)
-- TSMC and MAPPER Take Next Step in Exploring Multiple E-beam
Lithography for IC Manufacturing at 22 nanometer node and Beyond
(2008/10/13)
* Please visit TSMC's Web site (
www.tsmc.com ) for details about
these and other announcements.
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, 2008 September 30, 2008
(audited) (unaudited)
ASSETS USD NTD % NTD %
Current Assets
Cash and Cash Equivalents $5,922 $194,614 34.8 $112,446 20.4
Investments in Marketable
Financial Instruments 512 16,836 3.0 45,724 8.3
Accounts Receivable --
Trade, Net 563 18,497 3.3 45,333 8.2
Inventories, Net 453 14,877 2.7 21,817 4.0
Other Current Assets 237 7,795 1.4 7,029 1.3
Total Current Assets 7,687 252,619 45.2 232,349 42.2
Long-Term Investments 1,217 39,982 7.2 41,874 7.6
Property, Plant and Equipment 26,247 862,461 154.3 849,818 154.5
Less: Accumulated
Depreciation (18,832) (618,816) (110.7) (597,523) (108.6)
Property, Plant and
Equipment, Net 7,415 243,645 43.6 252,295 45.9
Other Assets 690 22,671 4.0 23,481 4.3
Total Assets $17,009 $558,917 100.0 $549,999 100.0
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
Accounts Payable $184 $6,043 1.1 $9,671 1.8
Payables to Contractors and
Equipment Suppliers 244 7,999 1.4 8,082 1.4
Accrued Expenses and Other
Current Liabilities 1,051 34,543 6.2 36,124 6.6
Current Portion of Bonds
Payable and Long-Term
Liabilities 250 8,222 1.5 8,258 1.5
Total Current Liabilities 1,729 56,807 10.2 62,135 11.3
Bonds Payable 137 4,500 0.8 4,500 0.8
Other Long-Term Liabilities 524 17,237 3.1 17,541 3.2
Total Liabilities 2,390 78,544 14.1 84,176 15.3
Shareholders' Equity
Attributable to Shareholders
of the Parent
Capital Stock at Par Value 7,798 256,254 45.8 259,042 47.1
Capital Surplus 1,518 49,875 8.9 50,463 9.2
Legal Capital Reserve (2) 2,049 67,324 12.0 67,324 12.2
Special Capital Reserve (2) 12 392 0.1 392 0.1
Unappropriated Earnings (2) 3,114 102,338 18.3 103,063 18.7
Treasury Stock -- -- -- (16,500) (3.0)
Others 6 194 0.1 (1,708) (0.3)
Total Equity Attributable
to Shareholders of the
Parent 14,497 476,377 85.2 462,076 84.0
Minority Interests 122 3,996 0.7 3,747 0.7
Total Shareholders'
Equity 14,619 480,373 85.9 465,823 84.7
Total Liabilities &
Shareholders' Equity $17,009 $558,917 100.0 $549,999 100.0
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, 2007
(audited) QoQ YoY
ASSETS NTD % Amount % Amount %
Current Assets
Cash and Cash
Equivalents $94,986 16.6 $82,168 73.1 $99,628 104.9
Investments in
Marketable
Financial
Instruments 79,848 14.0 (28,888) (63.2) (63,012) (78.9)
Accounts Receivable
-- Trade, Net 42,424 7.4 (26,836) (59.2) (23,927) (56.4)
Inventories, Net 23,862 4.2 (6,940) (31.8) (8,985) (37.7)
Other Current Assets 8,702 1.5 766 10.9 (907) (10.4)
Total Current
Assets 249,822 43.7 20,270 8.7 2,797 1.1
Long-Term Investments 36,461 6.4 (1,892) (4.5) 3,521 9.7
Property, Plant and
Equipment 800,352 140.2 12,643 1.5 62,109 7.8
Less: Accumulated
Depreciation (540,100) (94.6) (21,293) 3.6 (78,716) 14.6
Property, Plant
and Equipment,
Net 260,252 45.6 (8,650) (3.4) (16,607) (6.4)
Other Assets 24,330 4.3 (810) (3.4) (1,659) (6.8)
Total Assets $570,865 100.0 $8,918 1.6 ($11,948) (2.1)
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $13,078 2.3 ($3,628) (37.5) ($7,035) (53.8)
Payables to
Contractors and
Equipment Suppliers 6,257 1.1 (83) (1.0) 1,742 27.8
Accrued Expenses and
Other Current
Liabilities 29,090 5.1 (1,581) (4.4) 5,453 18.7
Current Portion of
Bonds Payable and
Long-Term
Liabilities 281 -- (36) (0.4) 7,941 2828.1
Total Current
Liabilities 48,706 8.5 (5,328) (8.6) 8,101 16.6
Bonds Payable 12,500 2.2 -- -- (8,000) (64.0)
Other Long-Term
Liabilities 18,973 3.3 (304) (1.7) (1,736) (9.2)
Total Liabilities 80,179 14.0 (5,632) (6.7) (1,635) (2.0)
Shareholders' Equity
Attributable to
Shareholders of
the Parent
Capital Stock at Par
Value 264,271 46.3 (2,788) (1.1) (8,017) (3.0)
Capital Surplus 53,733 9.4 (588) (1.2) (3,858) (7.2)
Legal Capital
Reserve (2) 56,406 9.9 -- -- 10,918 19.4
Special Capital
Reserve (2) 630 0.1 -- -- (238) (37.8)
Unappropriated
Earnings (2) 161,828 28.3 (725) (0.7) (59,490) (36.8)
Treasury Stock (49,385) (8.7) 16,500 (100.0) 49,385 (100.0)
Others (391) -- 1,902 (111.3) 585 (149.5)
Total Equity
Attributable to
Shareholders of
the Parent 487,092 85.3 14,301 3.1 (10,715) (2.2)
Minority Interests 3,594 0.7 249 6.6 402 11.2
Total
Shareholders'
Equity 490,686 86.0 14,550 3.1 (10,313) (2.1)
Total Liabilities &
Shareholders' Equity $570,865 100.0 $8,918 1.6 ($11,948) (2.1)
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the rate of NT$32.860 as of December 31, 2008.
(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, 2008, September 30, 2008,
December 31, 2007
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding)
4Q 2008 3Q 2008
USD NTD % NTD %
Net Sales $1,962 $64,562 100.0 $92,979 100.0
Cost of Sales (1,348) (44,367) (68.7) (49,885) (53.7)
Gross Profit 614 20,195 31.3 43,094 46.3
Operating Expenses
Research and Development
Expenses (147) (4,826) (7.5) (5,981) (6.4)
General and Administrative
Expenses (70) (2,285) (3.5) (2,979) (3.2)
Sales and Marketing Expenses (32) (1,062) (1.7) (1,217) (1.3)
Total Operating Expenses (249) (8,173) (12.7) (10,177) (10.9)
Income from Operations 365 12,022 18.6 32,917 35.4
Non-Operating Income, Net 43 1,412 2.2 1,328 1.4
Investment Gains (Loss) (10) (340) (0.5) 185 0.2
Income before Income Tax 398 13,094 20.3 34,430 37.0
Income Tax Expenses (14) (452) (0.7) (3,658) (3.9)
Net Income 384 12,642 19.6 30,772 33.1
Minority Interests (6) (196) (0.3) (198) (0.2)
Net Income Attributable to
Shareholders of
the Parent 378 12,446 19.3 30,574 32.9
Earnings per Share -- Diluted $0.01 $0.48 -- $1.18 --
Earnings per ADR -- Diluted (2) $0.07 $2.43 -- $5.91 --
Weighted Average Outstanding
Shares -- Diluted ('M) (3) -- 25,655 -- 25,850 --
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended December 31, 2008, September 30, 2008,
December 31, 2007
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding) (Continued)
4Q 2007 QoQ YoY
NTD % Amount % Amount %
Net Sales $93,860 100.0 ($28,417) (30.6) ($29,298) (31.2)
Cost of Sales (49,024) (52.2) 5,518 (11.1) 4,657 (9.5)
Gross Profit 44,836 47.8 (22,899) (53.1) (24,641) (55.0)
Operating Expenses
Research and
Development
Expenses (5,012) (5.3) 1,155 (19.3) 186 (3.7)
General and
Administrative
Expenses (2,039) (2.2) 694 (23.3) (246) 12.1
Sales and Marketing
Expenses (1,027) (1.1) 155 (12.7) (35) 3.4
Total Operating
Expenses (8,078) (8.6) 2,004 (19.7) (95) 1.2
Income from
Operations 36,758 39.2 (20,895) (63.5) (24,736) (67.3)
Non-Operating Income,
Net 1,697 1.8 84 6.4 (285) (16.8)
Investment Gains
(Loss) 877 0.9 (525) (283.6) (1,217) (138.8)
Income before Income
Tax 39,332 41.9 (21,336) (62.0) (26,238) (66.7)
Income Tax Expenses (4,608) (4.9) 3,206 (87.6) 4,156 (90.2)
Net Income 34,724 37.0 (18,130) (58.9) (22,082) (63.6)
Minority Interests (239) (0.3) 2 (1.1) 43 (18.0)
Net Income
Attributable to
Shareholders of
the Parent 34,485 36.7 (18,128) (59.3) (22,039) (63.9)
Earnings per Share
-- Diluted $1.29 -- ($0.70) (59.0) ($0.81) (62.3)
Earnings per ADR
-- Diluted (2) $6.44 -- ($3.48) (59.0) ($4.01) (62.3)
Weighted Average
Outstanding Shares
-- Diluted ('M) (3) 26,773 -- -- -- -- --
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD 32.912 for the fourth
quarter of 2008.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares was and 26,773M
shares for 4Q07 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, 2008 and 2007
(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
2008
USD NTD %
Net Sales $10,608 $333,158 100.0
Cost of Sales (6,095) (191,408) (57.5)
Gross Profit 4,513 141,750 42.5
Operating Expenses
Research and Development Expenses (684) (21,481) (6.4)
General and Administrative Expenses (353) (11,097) (3.3)
Sales and Marketing Expenses (151) (4,737) (1.4)
Total Operating Expenses (1,188) (37,315) (11.1)
Income from Operations 3,325 104,435 31.4
Non-Operating Income, Net 202 6,335 1.9
Investment Gains 22 702 0.2
Income before Income Tax 3,549 111,472 33.5
Income Tax Expenses (348) (10,949) (3.3)
Net Income 3,201 100,523 30.2
Minority Interest (19) (590) (0.2)
Net Income Attributable to
Shareholders of
the Parent 3,182 99,933 30.0
Earnings per Share -- Diluted $0.12 $3.83 --
Earnings per ADR -- Diluted (2) $0.61 $19.14 --
Weighted Average Outstanding Shares
-- Diluted ('M) (3) -- 26,107 --
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Audited Consolidated Condensed Income Statements
For the Year Ended December 31, 2008 and 2007
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1)
Except for Per Share Amounts and Shares Outstanding) (Continued)
For the Year Ended December 31
2007 YoY
NTD % Amount %
Net Sales $322,630 100.0 $10,528 3.3
Cost of Sales (180,280) (55.9) (11,128) 6.2
Gross Profit 142,350 44.1 (600) (0.4)
Operating Expenses
Research and Development Expenses (17,946) (5.5) (3,535) 19.7
General and Administrative Expenses (8,964) (2.8) (2,133) 23.8
Sales and Marketing Expenses (3,718) (1.2) (1,019) 27.4
Total Operating Expenses (30,628) (9.5) (6,687) 21.8
Income from Operations 111,722 34.6 (7,287) (6.5)
Non-Operating Income, Net 7,412 2.3 (1,077) (14.5)
Investment Gains 2,508 0.8 (1,806) (72.0)
Income before Income Tax 121,642 37.7 (10,170) (8.4)
Income Tax Expenses (11,710) (3.6) 761 (6.5)
Net Income 109,932 34.1 (9,409) (8.6)
Minority Interest (755) (0.3) 165 (21.9)
Net Income Attributable to
Shareholders of
the Parent 109,177 33.8 (9,244) (8.5)
Earnings per Share -- Diluted $4.06 -- ($0.23) (5.7)
Earnings per ADR -- Diluted (2) $20.30 -- ($1.16) (5.7)
Weighted Average Outstanding Shares
-- Diluted ('M) (3) 26,892 -- -- --
Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the weighted average rate of NTD 31.406 for the year ended December
31, 2008.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 26,892M
shares for the year ended December 31, 2007 after the retroactive
adjustments for stock dividends and stock bonus.
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
For the Year Ended December 31, 2008 and for the Three Months Ended
December 31, 2008, September 30, 2008, and December 31, 2007
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD)) (1)
Twelve Months 2008 4Q 2008 3Q 2008 4Q 2007
(audited) (unaudited)(unaudited)(unaudited)
USD NTD NTD NTD NTD
Cash Flows from Operating
Activities:
Net Income $3,182 $99,933 $12,446 $30,574 $34,485
Net Income Attributable
to Minority Interest 19 590 196 198 239
Depreciation &
Amortization 2,595 81,512 20,961 20,686 20,281
Deferred Income Tax 73 2,279 154 410 877
Equity in Loss
(Earnings) of Equity
Method Investees, Net (22) (702) 340 (185) (877)
Changes in Working
Capital & Others 1,206 37,882 29,147 4,220 4,754
Net Cash Provided by
Operating Activities 7,053 221,494 63,244 55,903 59,759
Cash Flows from Investing
Activities:
Acquisitions of:
Marketable Financial
Instruments (3,241) (101,797) (33,059) (40,201) (32,478)
Investments
Accounted for Using
Equity Method (2) (56) (1) (55) 6
Property, Plant and
Equipment (1,886) (59,223) (11,258) (10,378) (19,781)
Financial Assets
Carried at Cost (15) (463) (73) (87) (103)
Proceeds from Disposal
or Maturity of:
Marketable Financial
Instruments 4,908 154,150 63,368 22,126 40,680
Property, Plant and
Equipment 6 195 24 140 34
Financial Assets
Carried at Cost 6 199 73 -- 141
Others (33) (1,047) (1,061) 1,930 (1,160)
Net Cash Provided by
(Used In) Investing
Activities (257) (8,042) 18,013 (26,525) (12,661)
Cash Flows from Financing
Activities:
Decrease in Guarantee
Deposits (24) (759) (140) (83) (321)
Proceeds from Exercise
of Stock Options 7 227 5 51 35
Bonus Paid to Directors
and Supervisors (6) (177) -- (177) --
Repayment of Long-Term
Bonds Payable -- -- -- -- (4,500)
Cash Dividends Paid for
Common Stock (2,445) (76,779) -- (76,779) --
Repurchase of Treasury
Stock (1,066) (33,481) -- (23,812) (45,413)
Cash Bonus Paid to
Employees (125) (3,940) -- (3,940) --
Others (15) (484) (163) (222) 90
Net Cash Used in
Financing Activities (3,674) (115,393) (298) (104,962) (50,109)
Net Increase (Decrease) in
Cash and Cash Equivalents 3,122 98,059 80,959 (75,584) (3,011)
Effect of Exchange Rate
Changes and Others 51 1,569 1,209 2,684 (331)
Cash and Cash Equivalents
at Beginning of Period 3,024 94,986 112,446 185,346 98,328
Cash and Cash Equivalents
at End of Period $6,197 $194,614 $194,614 $112,446 $94,986
Note: (1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD 31.406 for the year
ended December 31, 2008.
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 15, 2008, 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 / Harrison Hsueh
Investor Relations Division
TSMC
Tel: +886-3-568-2085 / +886-3-568-2088
Email: invest@tsmc.com
Web site:
http://www.tsmc.com/
http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf/