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 October 2003

 

Taiwan Semiconductor Manufacturing Company Ltd.

(Translation of Registrant’s Name Into English)

 

No.8 Li-Hsin Rd. 6,

Science Park

Hsin-chu, 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      V

Form 40-F

 

(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

No      V

 

(If “Yes” is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82:                             .)

---

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

				Taiwan Semiconductor Manufacturing Company Ltd.
Date: October 28, 2003		By		/s/    Lora Ho
				Lora Ho
				Vice President & Chief Financial Officer

 

---

Taiwan Semiconductor Reports 29% Increase in

Sequential EPS Driven by 10% Higher Revenue

 

 

Hsin-Chu, Taiwan, R.O.C., October 28, 2003 — Taiwan Semiconductor Manufacturing Company, Ltd. today announced revenues of NT$54.877 billion, net income of NT$15.169 billion and fully diluted earnings per share of NT$0.75 (US$0.11 per ADS unit) for the third quarter ended September 30, 2003.

 

On a sequential basis, third quarter results represent a 9.9% increase in revenue, a 29.3% increase in net income and a 29.5% increase in fully diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on an unconsolidated basis.

 

The increase in third quarter revenue resulted from a 12% increase in wafer shipments, a flat wafer average selling price (ASP), and a weaker U.S. dollar exchange rate. Gross Margin for the quarter improved significantly to 39.1% from 36.8% in the previous quarter due to higher utilization levels. Non-operating and Investment items also demonstrated improvement. Net Margin for the quarter improved to 27.6% from 23.5%.

 

Lora Ho, vice president and chief financial officer, said the Company’s key financial indicators — cash flow, liquidity, and debt coverage — remained healthy.

 

“Third quarter results of NT$54.9 billion in revenue marks a new record high for TSMC,” said Ho. “For three consecutive fiscal quarters TSMC has gained solid improvements in its operating results. The third quarter marks TSMC’s highest net income since first quarter of 2001. We expect the performance of the coming quarter to be in line with that of the third quarter.”

 

Ho also confirmed that key industry drivers such as outsourcing, capital efficiency requirements, and the increased complexity of advanced integrated circuits continue to strongly favor the foundry segment in general and TSMC in particular.

 

Ho said that, based upon the current business outlook, management’s expectations for the fourth quarter performance are:

 

•

Wafer shipments to grow by a mid to high single digit percentage point on a sequential basis;

 

•

ASP to decline slightly;

 

•

Revenues from advanced technologies to remain at about two–thirds of total wafer sale;

 

•

Overall utilization rate will be about 95 percent;

 

•

Demand to improve in the communications segment, but seasonally decline in the computer and consumer segments.

 

Ho said management also expects 2003 capital expenditure to approach US$1.2 billion.

 

October 28, 2003        Taiwan Semiconductor Manufacturing Company                Page 1 of 2

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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, October 28, 2003. The conference call will also be webcasted 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 website to facilitate the downloading and installation of necessary audio applications. Investors without Internet access may listen to the conference call, listening mode only, by dialing 1-303-262-2142 in the U.S. and 852-3009-3050 in other locations (Password: TSMC). An archived version of the webcast will be available on the TSMC web site for six months following the Company’s quarterly review conference call and webcast.

 

Profile

 

TSMC (TAIEX: 2330, NYSE: TSM)is the world’s largest dedicated semiconductor foundry, providing the industry’s leading manufacturing capacity, process technology, library and IP options, and other leading-edge foundry services. TSMC currently operates one twelve-inch wafer fab, five eight-inch wafer fabs and one six-inch fab. The Company also has substantial capacity commitments at a wholly owned U.S. subsidiary (WaferTech) and a joint-venture fab (SSMC). TSMC’s 300mm wafer fab (Fab 12), the first of its kind in Taiwan, commenced commercial production in January 2002. TSMC’s corporate headquarters are in Hsin-Chu, Taiwan. More information about TSMC is available through the World Wide Web at http://www.tsmc.com.

 

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 June 23, 2003, TSMC’s registration statement on Form F-3, filed with the SEC on October 21, 2003, and such other documents as TSMC may file with, or submit to, the SEC from time to time.

 

CONTACT IN TAIWAN

Julie Chan / Eric Chiang/ Elizabeth Sun

Investor Relations Division

TSMC

invest@tsmc.com

886-3-568- 2080/ 2087/ 2085

 

Corporate Headquarters:

Taiwan Semiconductor Manufacturing Company, Ltd.

Fab 12

No. 8, Lin Hsin Road 6,

Hsinchu Science Park,

Hsin-Chu 300,

Taiwan, R. O. C.

Tel: 886/3/563-6688

http://www.tsmc.com

 

October 28, 2003        Taiwan Semiconductor Manufacturing Company                Page 2 of 2

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FOR IMMEDIATE RELEASE

3Q03    Quarterly Management Report         October 28, 2003

 

CONTACT IN TAIWAN

Julie Chan / Eric Chiang / Elizabeth Sun

Investor Relations Division

TSMC

invest@tsmc.com

886-3-568-2080/ 2087/ 2085

 

Topics in This Report

 

•

Revenue Analysis

 

•

Utilization & Capacity

 

•

Profit & Expense Analysis

 

•

Financial Condition Review

 

•

Cash Flow & CapEx

 

•

Recap of Recent Important Events & Announcements

 

Operating Results Review:

 

Summary:

 

(Amount in NT$ Bn except for EPS)		3Q03			2Q03			3Q02			QoQ			YoY
EPS  (NT$ per com. shr.)		0.75			0.58			0.15			29	%		395	%
(US$ per ADR unit)		0.11			0.08			0.02
Net Sales		54.88			49.92			39.84			10	%		38	%
Gross Profit		21.45			18.35			12.84			17	%		67	%
Operating Expense		(4.96	)		(5.01	)		(4.47	)		(1	)%		11	%
Non-op Exp. & Investment		0.22			(0.77	)		(2.34	)		(147	)%		(73	)%
Net Income		15.17			11.73			3.16			29	%		380	%
Wafers Shipped (kpcs 8” -equiv.)		992			887			677			12	%		47	%
Capacity Utilization		98	%		88	%		84	%

 

Remarks:

 

EPS of NT$0.75 for 3Q03 presents a 29% increase compared with 2Q03. The operating results of 3Q03 are summarized below:

 

Net sales grew 10% sequentially to NT$54.9 billion; resulting largely from higher wafer sales, as wafer shipments grew 12%, and wafer ASP remained flat.

 

Gross profit rose 17% sequentially to NT$21.4 billion largely as a result of higher utilization, and gross margin improved to 39.1% from 36.8% in 2Q03.

 

Operating expenses of NT$5.0 billion decreased 1% sequentially. Slightly lower selling and administrative overhead was the main reason behind the decrease. Research and development expenditures remained virtually flat at NT$3.1 billion.

 

Net gain from non-operating items and investments amounted to NT$220 million. This represents a NT$988 million improvement on a sequential basis, mainly reflecting improved operating performance by TSMC subsidiary/affiliates, a reduction in net interest expenses, capital gains from the disposal of equities from venture capital investments, as well as the absence of any significant write-off of obsolete fixed assets as we did in 2Q03.

 

Income before tax rose 33% sequentially to NT$16.7 billion. After NT$1.5 billion tax expense, TSMC’s 3Q03 net income increased 29% to NT$15.2 billion while net margin improved to 27.6%.

---

Taiwan Semiconductor Manufacturing Company, Ltd.

October 28, 2003

Page 2

 

I. Revenue Analysis:

 

I-1. Wafer Sales Analysis

 

By Application		3Q03		2Q03		3Q02
Computer		36%		43%		36%
Communication		36%		34%		34%
Consumer		21%		16%		22%
Industrial/Others		5%		5%		5%
Memory		2%		2%		3%
By Technology		3Q03		2Q03		3Q02
0.13um-		19%		17%		5%
0.15um		20%		21%		20%
0.18um		27%		24%		23%
0.25um		19%		20%		27%
0.35um		8%		9%		13%
0.50um+		7%		9%		12%
By Customer Type		3Q03		2Q03		3Q02
Fabless		73%		73%		64%
IDM		26%		26%		35%
System		1%		1%		1%
By Geography		3Q03		2Q03		3Q02
North America		76%		77%		76%
Asia Pacific		11%		12%		13%
Europe		5%		4%		5%
Japan		8%		7%		6%

 

 

Revenue Analysis:

 

Net sales of NT$54.9 billion was 10% higher than the NT$49.9 billion recorded in 2Q03. The growth in TSMC wafer sales was attributable to 12% higher wafer shipments, a flat average selling price in U.S. dollar terms, and was offset partially by a stronger NT dollars.

 

Consumer and Communication applications were the principal revenue drivers in the quarter. The decrease in demand for Computer applications resulted from customers’ digestion of inventory.

 

Revenue from advanced technology wafers amounted to 66% of the Company’s total wafer sales. Revenue from the 0.13um technology process increased to 19% of TSMC’s wafer sales this quarter, up from 17% in 2Q03.

 

Revenue from the Fabless and IDM segment remained unchanged from that in 2Q03, 73% and 26% respectively.

 

In terms of geography, the revenue mix was little changed from the previous quarter.

 

Revenue contributed by TSMC subsidiary/affiliates amounted to 11% (NT$5.763 billion) of net sales during the quarter versus 12% (NT$5.973 billion) in 2Q03.

 

ASP Trend

 

Average selling price in U.S. dollars was virtually flat compared to that of the previous quarter. The improvement in the product mix to the leading edge technologies was offset by the pricing pressure experienced at individual technology nodes.

---

Taiwan Semiconductor Manufacturing Company, Ltd.

October 28, 2003                                                                                                                                                                         Page 3

 

II. Utilization & Capacity

 

 

Utilization Rate:

 

Overall capacity utilization improved to 98% in the latest quarter from 88% in the second quarter. This increase reflected the sequential business improvement experienced in the third quarter.

 

II – 2. Capacity

 

FAB/(Wafer size)		3Q03(act.)		4Q03(est.)		2003(est.)
Fab-2          (6”)*		223		227		872
Fab-3          (8”)		203		213		810
Fab-5          (8”)		111		112		436
Fab-6          (8”)		172		183		679
Fab-7          (8”)		44		35		201
Fab-8          (8”)		178		189		698
Fab-12        (12”)*		28		40		108
TSMC-owned 8” -equivalent Kpcs		896		949		3,556
Wafer Tech  (8”)		89		89		353
VIS               (8”)		n.a.		n.a.		n.a.
SSMC           (8”)		27		29		105
Total TSMC-Managed 8” -equivalent Kpcs		1,012		1,067		4,014

*	6”-wafer is converted into 8” -equivalent wafer by divided by 1.78;

12”-wafer

by multiplying 2.25

 

Capacity:

 

Total TSMC managed capacity in 3Q03 was 1,012k in terms of 8-inch equivalent wafers, representing a 2% sequential capacity growth.

 

Total TSMC managed capacity is expected to grow by more than 5% to 1,067k pcs in terms of 8-inch equivalent wafers in 4Q03. The increase in capacity is mainly for advanced technologies.

---

Taiwan Semiconductor Manufacturing Company, Ltd.

October 28, 2003

Page 4

 

III. Profit & Expense Analysis

 

III - 1. Gross Profit Analysis

 

		3Q03			2Q03			3Q02			QoQ			YoY
(Amount: NT$ Bn)
COGS		33.4			31.6			27.0			6	%		24	%
Depreciation		14.0			14.0			13.3			0	%		8	%
Other MFG Cost		19.4			17.6			13.7			10	%		19	%
Gross Profit		21.4			18.4			12.8			17	%		12	%
Gross Margin
—TSMC		39	%		37	%		32	%
—TSMC w/o affiliates		43	%		41	%		35	%

 

Gross Profit Analysis:

 

Gross profit increased NT$3.1 billion to NT$21.4 billion. Gross margin improved to 39% from 37% in 2Q03. The increase in gross margin was primarily due to the increase in capacity utilization.

 

Excluding wafers manufactured by TSMC affiliates, the gross margin from TSMC’s manufacturing activities was 43%, up from 41% in the previous quarter.

 

III - 2. Operating Expense Analysis

 

		3Q03		2Q03		3Q02		QoQ			YoY
(Amount: NT$ Bn)
Total Op. Exp.		5.0		5.0		4.5		–1	%		10	%
Gen’l Admin.		1.6		1.6		1.5		3	%		8	%
Selling & Mkting		0.3		0.4		0.3		–25	%		0	%
R & D		3.1		3.1		2.7		0	%		15	%

 

Operating Expenses:

 

Operating expenses dropped 1% sequentially. General administration and selling & marketing expenses decreased 2% due to better cost control. Research and development expenditures remained virtually flat with continued development activities in 90nm and 65nm technologies and in 12-inch wafer manufacturing processes.

 

III - 3. Non-Operating Items & Investment

 

		3Q03			2Q03			3Q02			QoQ			YoY
(Amount: NT$ Bn)
Non-Operating Items		(0.1	)		(1.6	)		(0.5	)		–91	%		–72	%
Net Int. Inc./(Exp.)		(0.2	)		(0.3	)		(0.3	)		–37	%		–44	%
Other Non-Ops.		0.0			(1.3	)		(0.2	)		–102	%		–114	%
Invest. Inc./(Loss)		0.4			0.8			(1.8	)		–56	%		–120	%
WaferTech*		0.3			0.2			(0.3	)		45	%		–195	%
SSMC		0.1			(0.2	)		(0.3	)		–147	%		–137	%
Vanguard		0.1			0.0			(0.3	)		183	%		–133	%
Misc.		(0.1	)		0.8			(0.9	)		–117	%		–85	%

 

*	Operation results only; does not include depreciation of impaired assets.

 

Non-Operating Items & Investment:

 

The sum of Non-operating Items and investments improved from a loss of NT$0.8 billion in 2Q03 to a gain of NT$0.3 billion in this quarter. The Non-operating losses shrank to NT$0.1 billion in the latest quarter reflecting a lower interest expense, absence of any significant write off of obsolete fixed assets, as we did in 2Q03. A gain of NT$0.4 billion was recorded from equity method investees, reflecting the general improvement of business operation at TSMC subsidiaries/affiliates, and net gains realized from disposal of equities from venture capital investments in the latest quarter.

 

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Taiwan Semiconductor Manufacturing Company, Ltd.

October 28, 2003

Page 7

 

IV. Financial Condition Review

 

IV – 1. Liquidity Analysis

 

(Amount: NT$ Bn)		3Q03		2Q03		3Q02
Cash & S-T Investments		94.4		69.6		64.5
Accounts Receivable		25.0		25.0		17.9
Inventory		11.8		11.4		13.3
Total Current Assets		135.2		111.0		100.4
Accounts Payable		27.2		22.0		32.3
Total Current Liabilities		27.2		22.0		41.3
Current Ratio (x)		5.0		5.1		2.4
Net Working Capital		108.0		89.0		59.1

 

Liquidity Analysis:

 

Total current assets were NT$24.2 billion higher on a sequential basis, mainly attributable to higher levels of cash and short-term investments. The Company’s current ratio was 5.0x, slightly lower than the 5.1x in 2Q03.

 

Net working capital of NT$108.0 billion was NT$19.0 billion greater than that in the second quarter, reflecting stronger operating cash flows.

 

 

Receivable/Inventory Days Trend:

 

Turnover of receivables improved to the equivalent of 41 days revenue compared to 44 days experienced in the last quarter. The improvement was due to better management of collections during the quarter.

 

On a year-to-date basis, inventories amounted to an equivalent of 38 days of cost-of-goods-sold, representing a slight decrease of 39 days in the previous quarter.

 

IV – 3. Debt Service

 

(Amount NT$ Bn)		3Q03		2Q03		3Q02
Cash & S-T Investments		94.4		69.6		64.5
Total Debt		35.0		35.0		35.0
Net Cash Reserves		59.4		34.6		29.5

 

Debt Service:

 

Net cash reserves (the excess of cash and equivalents over interest-bearing debt) increased significantly by NT$24.8 billion to NT$59.4 billion in 3Q03, reflecting TSMC’s consistently strong operating cash flows.

 

Total debt remained unchanged at NT$35 billion.

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Taiwan Semiconductor Manufacturing Company, Ltd.

Page 6

October 28, 2003

 

V. Cash Flow & Capex

 

V – 1. Cash Flow Analysis

 

 

(Amount: NT$ Bn)		3Q03			2Q03			3Q02
Net Income		15.2			11.7			3.2
Deprec. & Amort.		15.5			15.5			14.6
Other Op Sources/(Uses)		3.3			(4.1	)		6.8
Total Op Sources/(Uses)		33.9			23.1			24.6
Net Investing Sources/(Uses)		(17.4	)		(10.4	)		(21.4	)
Net Financing Sources/(Uses)		(0.4	)		(13.7	)		(5.1	)
Net Cash Position Changes		16.2			(0.9	)		(1.9	)

 

Summary of Cash Flow:

 

During 3Q03, TSMC generated NT$33.9 billion operating cash inflow due mainly to a higher net income.

 

Net cash used in investing activities totaled NT$17.4 billion, including acquisitions of fixed assets in the amount of NT$8.2 billion and increases in short-term investments of NT$8.6 billion. Increases in short-term investments include purchases of government bonds of NT$5.6 billion and money market funds of NT$ 3.0 billion. Net financing Uses of NT$0.4 billion reflect the return of guarantee deposits to certain customers.

 

TSMC ended the quarter with NT$16.2 billion more cash and NT$8.6 billion more short-term investments than the previous quarter. In total, the cash & short-term investment was NT$24.8 billion higher sequentially.

 

 

Operating Cash Flow Trend:

 

Operating cash flow of NT$33.9 billion was 47% higher than in the previous quarter, largely due to a higher net income while depreciation remained virtually flat, partially offset by a net increase in working capital.

 

V – 3. Capital Expenditure

 

		3Q03		2Q03		3Q02
CapEx (NT$Bn)		8.2		7.2		19.6
CapEx (US$M)		238		206		562

 

2003 CapEx estimated to approach US$1.2 billion.

 

Capital Spending:

 

TSMC’s capital expenditures during the quarter totaled US$238 million, 15% higher than in the previous quarter. Most of the spending was for capacity ramp-up in Fab-12. For the first nine months of the year, the capital expenditures totaled US$706 million.

 

TSMC remains fully committed to providing capacity that meets both the fabrication and technological needs of its customers. The Company intends, however, to manage capacity in accordance with the strength of actual and sustainable demand so as to meet its return objectives for shareholders.

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Taiwan Semiconductor Manufacturing Company, Ltd.

October 28, 2003

Page 7

 

VI. Recap of Recent Important Events & Announcements

 

•

TSMC Board Approved TSMC’s Sponsorship of Secondary Offering of Up to 100 Million ADSs by Philips (10/08)

 

•

TSMC Held its Topping Ceremony for Its Wholly Owned Fab in Shanghai, China (09/22)

 

•

TSMC Board Approved the Compensation Committee Charter to Further Strengthen Company’s Corporate Governance (09/02)

 

•

TSMC Board of Directors Approved TSMC’s 1H03 Financial Statements, and Ms. Lora Ho as Vice President and Chief Financial Officer of TSMC (09/02)

 

Please visit TSMC’s Web site (http://www.tsmc.com) for details about these and other announcements.

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Attachment A

 

TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD.

UNCONSOLIDATED BALANCE SHEET

As of September 30, 2003 and 2002

(Figures in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))⁽¹⁾

 

		Sep. 30, 2003									Sep. 30, 2002						YoY
ASSETS		USD			NTD			%			NTD			%			Move			Inc(Dec)%
Cash		2,449			82,731			21.6			64,516			17.1			18,214			28.2
Short Term Investment		345			11,664			3.1			0			0.0			11,664			—
Accounts Receivable		739			24,967			6.5			17,904			4.7			7,063			39.4
Inventories		350			11,813			3.1			13,321			3.5			(1,508	)		(11.3	)
Other Current Assets		118			3,998			1.0			4,662			1.2			(665	)		(14.3	)
Total Current Assets		4,002			135,173			35.4			100,405			26.6			34,769			34.6
Long Term Investment		1,026			34,669			9.1			36,349			9.6			(1,680	)		(4.6	)
Fixed Assets		12,608			425,904			111.4			395,310			104.7			30,594			7.7
Less Accumulated Depreciation		(6,916	)		(233,610	)		(61.1	)		(177,805	)		(47.1	)		(55,805	)		31.4
Net Fixed Assets		5,693			192,294			50.3			217,505			57.6			(25,212	)		(11.6	)
Other Assets		594			20,055			5.2			23,184			6.1			(3,128	)		(13.5	)
Total Assets		11,314			382,191			100.0			377,443			100.0			4,749			1.3
LIABILITIES
Accounts Payable & Accrued Liabilities		805			27,187			7.1			32,347			8.6			(5,160	)		(16.0	)
Current Portion of Bonds Payable		0			0			0.0			9,000			2.4			(9,000	)		(100.0	)
Total Current Liabilities		805			27,187			7.1			41,347			11.0			(14,160	)		(34.2	)
Bonds Payable		1,036			35,000			9.2			35,000			9.3			0			0.0
Other Long Term Liabilities		208			7,033			1.8			7,488			2.0			(455	)		(6.1	)
Total Liabilities		2,049			69,220			18.1			83,835			22.2			(14,615	)		(17.4	)
SHAREHOLDERS' EQUITY
Capital Stock		6,000			202,666			53.0			199,229			52.8			3,437			1.7
Capital Surplus		1,683			56,847			14.9			57,005			15.1			(157	)		(0.3	)
Legal Reserve		616			20,802			5.4			18,641			4.9			2,161			11.6
Special Reserve		2			69			0.0			0			0.0			69			—
Retained Earnings		1,013			34,227			9.0			19,598			5.2			14,628			74.6
—Previous Year		88			2,970			0.8			541			0.1			2,430			449.2
—Current Year		925			31,256			8.2			19,058			5.0			12,199			64.0
Treasury Stock		(49	)		(1,643	)		(0.4	)		(1,915	)		(0.5	)		271			(14.2	)
Unrealized Loss on Long-term Investments		(0	)		(2	)		(0.0	)		(69	)		(0.0	)		67			(96.5	)
Cumulated Translation Adjustment		0			6			0.0			1,118			0.3			(1,112	)		(99.5	)
Total Equity		9,265			312,971			81.9			293,607			77.8			19,364			6.6
Total Liabilities & Shareholders' Equity		11,314			382,191			100.0			377,443			100.0			4,749			1.3

 

Note: (1)

New Taiwan dollar amounts have been translated into U.S. dollars at the rate of NT$33.78 per U.S. dollar as of September 30, 2003.

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Attachment B

TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD.

UNCONSOLIDATED INCOME STATEMENT

For the three Months Ended September 30, 2003 and 2002 and June 30, 2003

(Expressed in Millions New Taiwan Dollars (NTD) and U.S. Dollars (USD)⁽¹⁾

Except for Per Share Amounts and Shares Outstanding)

 

		Year over Year Comparison															Sequential Comparison
		3Q 2003						% of Sales			3Q 2002(2) NTD			YoY Inc (Dec) %			3Q 2003						% of Sales			2Q 2003 NTD			QoQ Inc (Dec) %
		USD			NTD												USD			NTD
Net Sales		1,601			54,877			100.0			39,835			37.8			1,601			54,877			100.0			49,922			9.9
Cost of Sales		(975	)		(33,430	)		(60.9	)		(27,000	)		23.8			(975	)		(33,430	)		(60.9	)		(31,571	)		5.9
Gross Profit		626			21,447			39.1			12,835			67.1			626			21,447			39.1			18,351			16.9
Operating Expenses
General and Administrative Expenses		(47	)		(1,614	)		(2.9	)		(1,524	)		5.9			(47	)		(1,614	)		(2.9	)		(1,563	)		3.3
Selling and Marketing Expenses		(8	)		(277	)		(0.5	)		(278	)		(0.3	)		(8	)		(277	)		(0.5	)		(371	)		(25.4	)
Research and Development Expenses		(90	)		(3,068	)		(5.6	)		(2,665	)		15.1			(90	)		(3,068	)		(5.6	)		(3,077	)		(0.3	)
Total Operating Expenses		(145	)		(4,960	)		(9.0	)		(4,468	)		11.0			(145	)		(4,960	)		(9.0	)		(5,011	)		(1.0	)
Income from Operations		481			16,487			30.0			8,367			97.0			481			16,487			30.0			13,340			23.6
Net Non-operating Income (Expenses)		(4	)		(141	)		(0.3	)		(516	)		(72.7	)		(4	)		(141	)		(0.3	)		(1,578	)		(91.1	)
Investment Gain (Loss)		11			361			0.7			(1,821	)		—			11			361			0.7			810			(55.4	)
Income before Income Tax		488			16,708			30.4			6,030			177.1			488			16,708			30.4			12,572			32.9
Income Tax Credit (Expenses)		(45	)		(1,539	)		(2.8	)		(2,870	)		(46.4	)		(45	)		(1,539	)		(2.8	)		(842	)		82.8
Net Income		443			15,169			27.6			3,160			380.0			443			15,169			27.6			11,730			29.3
Diluted Earnings Per Ordinary Share(3)		0.02			0.75						0.15			395.4			0.02			0.75						0.58			29.5
Earnings Per ADR(4)		0.11			3.72						0.75						0.11			3.72						2.87
Weighted Average Outstanding Shares (‘M)(5)					20,227						20,221									20,227						20,221

 

Note: (1)

New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD34.27 per U.S. dollar for the third quarter of 2003.

(2)

Certain accounts in the financial statement for the three months ended September 30, 2002 have been reclassified to conform to the financial statements for the three months ended September 30, 2003.

(3)

EPS calculation is after deducting a cash dividend payment on NT$13,000 million of preferred stock paying an annual rate of 3.5% at the period from January 1 to May 29, 2003. The preferred stock was redeemed on May 29, 2003.

(4)

1 ADR equals 5 ordinary shares.

(5)

Total weighted average outstanding shares were 20,226,848K shares for 3Q03 and 20,220,989K shares for 3Q02 after the retroactive adjustments for stock dividends and changes in treasury stocks. Similarly, adjustments were also made on total weighted average outstanding shares for 2Q03  (20,221,270K shares after adjustments).

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Attachment C

TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD.

UNCONSOLIDATED INCOME STATEMENT

For the Nine Months Ended September 30, 2003 and 2002

(Expressed in Millions New Taiwan Dollars (NTD) and U.S. Dollars (USD)⁽¹⁾

Except for Per Share Amounts and Shares Outstanding)

 

		9 months ended Sep. 30
		2003 USD			2003 NTD			% of Sales			2002 NTD			YoY Inc(Dec) %
Net Sales		4,170			144,125			100.0			119,807			20.3
Cost of Sales		(2,718	)		(93,940	)		(65.2	)		(78,522	)		19.6
Gross Profit		1,452			50,184			34.8			41,285			21.6
Operating Expenses
General and Administrative Expenses		(132	)		(4,573	)		(3.2	)		(3,984	)		14.8
Selling and Marketing Expenses		(27	)		(932	)		(0.6	)		(873	)		6.8
Research and Development Expenses		(250	)		(8,657	)		(6.0	)		(7,903	)		9.6
Total Operating Expenses		(410	)		(14,162	)		(9.8	)		(12,760	)		11.0
Income from Operations		1,042			36,022			25.0			28,525			26.3
Net Non-operating Expenses		(64	)		(2,218	)		(1.5	)		(936	)		137.0
Investment Loss		(10	)		(344	)		(0.2	)		(3,554	)		(90.3	)
Income before Income Tax		968			33,460			23.2			24,035			39.2
Income Tax Credit (Expenses)		(64	)		(2,204	)		(1.5	)		(4,977	)		(55.7	)
Net Income		904			31,256			21.7			19,058			64.0
Diluted Earnings Per Ordinary Share(2)		0.04			1.54						0.93
Earnings Per ADR(3)		0.22			7.68						4.66
Weighted Average Outstanding Shares (’M)(4)					20,227						20,221

 

Note: (1)

New Taiwan dollars have been translated into U.S. dollars at the weighted average rate of NTD 34.56 per U.S. dollar for the nine months of 2003.

(2)

EPS calculation is after deducting a cash dividend payment on NT$13,000 million of preferred stock paying an annual rate of 3.5% at the period from January 1 to May 29, 2003. The preferred stock was redeemed on May 29, 2003.

(3)

1 ADR equals 5 ordinary shares.

(4)

Total weighted average outstanding shares were 20,226,848K shares for the nine months ended September 30, 2003 and 20,220,989K shares for the nine months ended September 30, 2002 after the retroactive adjustments for stock dividends and changes in treasury stocks.

 

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Attachment D

 

TAIWAN SEMICONDUCTOR MANUFACTURING CO., LTD.

UNCONSOLIDATED STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2003 and 2002

(Figures in Million of New Taiwan Dollars (NTD) and U.S. Dollars (USD))⁽¹⁾

 

 

		9 MTHS 2003						9 MTHS 2002
		USD			NTD			NTD
Cash Flows from Operating Activities:
Net Income		904			31,256			19,058
Depreciation & Amortization		1,339			46,291			41,541
Investment Loss Recognized by Equity Method		10			344			3,554
Loss on property, plant, equipment and idle assets		41			1,431
Loss (Gain) on sale of long-term investments		(2	)		(66	)		3
Deferred Tax on Investment Tax Credit		60			2,074			4,968
Changes in Working Capital & Others		(120	)		(4,145	)		1,245
Net Cash Provided from Operating Activities		2,233			77,185			70,368
Cash Flows from Investing Activities:
Increase in Short-Term Investments		(337	)		(11,664	)
Acquisition of Fixed Assets		(706	)		(24,416	)		(36,581	)
Proceeds from Disposal of Properties		5			159			444
Decrease in Deposit out		7			256			194
Increase in Long-Term Investments		(30	)		(1,051	)		(9,025	)
Proceeds from Sales of Long-Term Stock Investments		13			458			1
Increase in Deferred Assets		(52	)		(1,792	)		(2,996	)
Decrease in Other assets		0			9			0
Net Cash Used in Investing Activities		(1,101	)		(38,040	)		(47,963	)
Cash Flows from Financing Activities:
Increase (Decrease) in Bonds Payable		(116	)		(4,000	)		15,000
Increase (Decrease) in Guarantee Deposits & Others		(16	)		(556	)		(5,703	)
Decrease in Preferred shares		(376	)		(13,000	)		0
Cash Dividend—Preferred Shares		(13	)		(455	)		(455	)
Bonus paid to Directors and Supervisors		(2	)		(59	)		(134	)
Net Cash Provided from (Used in) Financing Activities		(523	)		(18,070	)		8,708
Net Increase (Decrease) in Cash and Cash Equivalents		610			21,075			31,113
Cash and Cash Equivalents at Beginning of Period		1,784			61,657			33,404
Cash and Cash Equivalents at End of Period		2,394			82,732			64,517

 

Note:

New Taiwan dollar amounts have been translated into U.S. dollars at the rate of NTD34.56 per U.S. dollar, the same as the Balance Sheet Exchange Rate.

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