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

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

CONTACT
Elizabeth Sun
Investor Relations Division
TSMC
invest@tsmc.com
886-3-568-2085

Topics in This Report

•		Revenue Analysis
•		Profit & Expense Analysis
•		Financial Condition Review
•		Cash Flow
•		CapEx & Capacity
•		Recap of Recent Important Events & Announcements

1Q10		Quarterly Management Report April 27, 2010

Operating Results Review:

Summary:

(Amounts are on consolidated basis and are in NT
billions except otherwise noted)		1Q10				4Q09				1Q09				QoQ				YoY
EPS (NT$  per common share)			1.30				1.26				0.06				3.1	%			2059.8	%
(US$  per ADR unit)			0.20				0.19				0.01
Consolidated Net Sales			92.19				92.09				39.50				0.1	%			133.4	%
Gross Profit			44.19				44.70				7.48				(1.1	%)			490.7	%
Gross Margin			47.9	%			48.5	%			18.9	%
Operating Expense			(10.06	)			(11.05	)			(6.27	)			(9.0	%)			60.4	%
Operating Income			34.13				33.64				1.21				1.4	%			2722.0	%
Operating Margin			37.0	%			36.5	%			3.1	%
Non-Operating Items			1.18				1.73				(0.46	)
Net Income			33.66				32.67				1.56				3.1	%			2059.5	%
Net Profit Margin			36.5	%			35.5	%			3.9	%
Wafer Shipment (kpcs 8 inch-equiv.)			2,547				2,430				892				4.8	%			185.5	%

Note:

Total outstanding shares were 25,904mn units on 3/31/10

Financial Highlights:

First Quarter 2010

•		Consolidated net sales were NT$92.19 billion, up 0.1% from NT$92.09 billion in 4Q09 and up 133.4% from NT$39.50 billion in 1Q09.
•		Gross margin was 47.9%, representing a 0.6 percentage point decrease compared with 4Q09, and a 29.0 percentage point increase compared with 1Q09.
•		Operating margin was 37.0%, 0.5 percentage point higher than 4Q09 and 33.9 percentage points higher than 1Q09.
•		The combined result from non-operating income and long-term investment was a gain of NT$1.18 billion, compared to a gain of NT$1.73 billion in 4Q09, and a loss of NT$0.46 billion in 1Q09.
•		Consolidated net income attributable to shareholders of the parent company was NT$33.66 billion, increasing 3.1% from 4Q09. Net profit margin was 36.5% and diluted EPS was NT$1.30.

TSMC
April 27, 2010		Page 2

I. Revenue Analysis

I. Wafer Sales Analysis

By Application		1Q10				4Q09				1Q09
Computer			32	%			33	%			23	%
Communication			39	%			39	%			41	%
Consumer			14	%			13	%			19	%
Industrial/Others			15	%			15	%			17	%

By Technology		1Q10				4Q09				1Q09
40/45nm			14	%			9	%			1	%
65nm			27	%			30	%			23	%
90nm			17	%			16	%			25	%
0.11/0.13um			13	%			15	%			16	%
0.15/0.18um			18	%			18	%			21	%
0.25/0.35um			8	%			9	%			11	%
0.50um+			3	%			3	%			3	%

By Customer Type		1Q10				4Q09				1Q09
Fabless/System			77	%			79	%			77	%
IDM			23	%			21	%			23	%

By Geography		1Q10				4Q09				1Q09
North America			68	%			71	%			68	%
Asia Pacific			15	%			13	%			14	%
China			2	%			3	%			3	%
Europe			11	%			10	%			12	%
Japan			4	%			3	%			3	%

Revenue Analysis:

1Q10 revenue reached NT$92.19 billion, up 0.1% from 4Q09, as demand was stronger than seasonal in all major applications. Consumer was the strongest with a 9% sequential growth. Communication and Industrial both grew 2% sequentially, while Computer related products declined 3% from the prior quarter.

By technology, revenue from 40/45nm grew strongly as a result of strong demand and continued yields improvement; 40/45nm reached 14% of total wafer sales in 1Q10, from 9% in the prior quarter. Meanwhile, revenues from 65nm and 90nm remained solid and accounted for 27% and 17% of total wafer sales, respectively. Revenues from 0.13-micron and below represented 71% of total wafer sales, up 1 percentage point from the last quarter.

Revenues from IDM customers accounted for 23% of total wafer sales in 1Q10, up 2 percentage points from 4Q09.

From a geographic perspective, revenues from customers based in North America accounted for 68% of total wafer sales, while sales from Asia Pacific, China, Europe and Japan accounted for 15%, 2%, 11%, and 4% of total wafer sales, respectively.

II. Profit & Expense Analysis

II — 1. Gross Profit Analysis

(In NT billions)		1Q10				4Q09				1Q09
COGS			48.00				47.39				32.02
Depreciation			19.22				18.60				18.97
Other MFG Cost			28.78				28.79				13.05
Gross Profit			44.19				44.70				7.48
Gross Margin			47.9	%			48.5	%			18.9	%

Gross Profit Analysis:

1Q10 gross margin was 47.9%, down by 0.6 percentage point from 48.5% in 4Q09. The increase in depreciation could have been more than offset by other manufacturing cost improvement. However, the effect from the March 4^th earthquake resulted in additional cost from tool recovery and moves loss, which brought the gross margin down by 0.9 percentage point. The unfavorable exchange rate further reduced the gross margin by 0.4 percentage point.

TSMC
April 27, 2010		Page 3

II — 2. Operating Expenses

(In NT billions)		1Q10				4Q09				1Q09
Total Operating Exp.			10.06				11.05				6.27
SG&A			3.65				4.48				2.54
Research & Development			6.41				6.57				3.73
Total Operating Exp. as a % of Sales			10.9	%			12.0	%			15.9	%

Operating Expenses:

Total operating expenses was NT$10.06 billion, representing 10.9% of 1Q10 net sales and a NT$0.99 billion improvement from 4Q09.

SG&A expenses decreased by NT$0.83 billion sequentially, primarily due to lowered legal fees.

Research and development expenditures slightly decreased by NT$0.16 billion.

II — 3. Non-Operating Items

(In NT billions)		1Q10				4Q09				1Q09
Non-Operating Inc./(Exp.)			1.00				1.43				0.35
Net Interest Income/(Exp.)			0.32				0.35				0.88
Other Non-Operating			0.68				1.08				(0.53	)
L-T Investments			0.18				0.30				(0.81	)
SSMC			0.19				0.29				(0.32	)
Others			(0.01	)			0.01				(0.49	)
Total Non-Operating Items			1.18				1.73				(0.46	)

Non-Operating Items:

Combined result from non-operating income and long-term investments was a gain of NT$1.18 billion for 1Q10.

Non-operating income was NT$1.00 billion, down NT$0.43 billion from 4Q09, primarily due to NT$0.33 billion less litigation compensation, and, to a lesser extent, wafer scrap loss of NT$0.19 billion resulting from the March 4^th earthquake.

Net investment gain was NT$0.18 billion, lower than NT$0.30 billion in the prior quarter, as SSMC’s earnings was reduced by an inventory revaluation loss and less government subsidies.

III. Financial Condition Review

III — 1. Liquidity Analysis

     (Selected Balance Sheet Items)

(In NT billions)		1Q10				4Q09				1Q09
Cash & Marketable Securities			192.01				195.80				229.79
Accounts Receivable — Trade			39.77				35.38				13.82
Inventory			22.69				20.91				14.78
Total Current Assets			265.62				259.80				268.56
Accounts Payable			40.41				40.61				10.97
Accrued Employee Profit Sharing / Bonus			11.39				13.43				15.45
Accrued Liabilities and Others			26.38				25.09				18.95
Total Current Liabilities			78.18				79.13				45.37
Current Ratio (x)			3.4				3.3				5.9
Net Working Capital			187.44				180.67				223.19

Liquidity Analysis:

At the end of 1Q10, cash and marketable securities totaled NT$192.01 billion, decreased by NT$3.79 billion from 4Q09, primarily due to the acquisition of Motech shares of NT$6.23 billion, balanced by net proceeds from disposal of long-term financial instruments.

Account receivables increased by NT$4.39 billion from the lower base in 4Q09.

Inventory went up by NT$1.78 billion, mainly due to increased volume of work-in-progress to support stronger demand in 2Q10.

Total current liabilities decreased NT$0.95 billion, primarily due to the decrease in accrued employee profit sharing/bonus during the quarter (please refer to page 4).

Net working capital was NT$187.44 billion and current ratio was 3.4x.

TSMC
April 27, 2010		Page 4

III — 1.1 Accrued Employee Profit Sharing / Bonus

(In NT billions)		1Q10				4Q09				1Q09
Beginning Balance			13.43				8.62				15.20
Accrual for current quarter			4.62				4.81				0.25
Payment of 2009 Employee Bonus			(6.66	)			—				—
Ending Balance			11.39				13.43				15.45

Accrued Employee Profit Sharing /Bonus:

In the past, TSMC distributed employee profit sharing/bonus once a year after the Annual General Shareholders’ Meeting and upon shareholders’ approval. Due to change in compensation scheme, half of 2009’s profit sharing/bonus was distributed as employee bonus in the first quarter. Starting this year, half of the quarterly accrued employee profit sharing/bonus will be distributed in the following quarter as employee bonus. The remaining half will be distributed as employee profit sharing after the AGM, subject to shareholders’ approval.

Therefore, NT$6.66 billion, which was half of 2009’s accrued employee profit sharing/bonus, was distributed during 1Q10. Meanwhile, 1Q10 accrued employee profit sharing/bonus was NT$4.62 billion.

In sum, the ending balance was NT$11.39 billion.

III — 2. Receivable/Inventory Days

(In Number of Days)

		1Q10				4Q09				1Q09
Days of Receivable			38				36				38
Days of Inventory			45				42				44

Receivable and Inventory Days:

Days of receivable increased by two days to 38 days in 1Q10.

Days of inventory increased by three days to 45 days, in anticipation of the strong demand in 2Q10.

III — 3. Debt Service

(In NT billions)		1Q10				4Q09				1Q09
Cash & Marketable Securities			192.01				195.80				229.79
Interest-Bearing Debt			14.18				15.09				16.00
Net Cash Reserves			177.83				180.71				213.79

Debt Service:

Net cash reserves, defined as the excess of cash and short-term marketable securities over interest-bearing debt, decreased by NT$2.88 billion to NT$177.83 billion at the end of 1Q10.

TSMC
April 27, 2010		Page 5

IV. Cash Flow

IV — 1.1. Cash Flow Analysis

(In NT billions)		1Q10				4Q09				1Q09
Net Income			33.66				32.67				1.56
Depreciation & Amortization			21.00				20.28				20.48
Employee Bonus Payment			(6.66	)			n.a				n.a
Other Operating Sources/(Uses)			(1.97	)			9.05				4.75
Total Operating Sources/(Uses)			46.03				62.00				26.79
Capital Expenditure			(46.14	)			(42.71	)			(5.62	)
Marketable Financial Instruments			(3.64	)			(3.59	)			13.80
Long Term Investment			(6.23	)			n.a				n.a
Other Investing Sources/(Uses)			(0.28	)			(0.80	)			(0.04	)
Net Investing Sources/(Uses)			(56.29	)			(47.10	)			8.14
Repayment of Bonds Payable			0.00				0.00				(8.00	)
Other Financing Sources/(Uses)			(0.84	)			(0.28	)			0.12
Net Financing Sources/(Uses)			(0.84	)			(0.28	)			(7.88	)
Net Cash Position Changes			(11.10	)			14.62				27.05
Exchange Rate Changes & Others			(0.38	)			(0.28	)			1.60
Ending Cash Balance			159.80				171.28				223.26

Summary of Cash Flow:

Cash generated from operating activities totaled NT$46.03 billion during the quarter, a decrease of NT$15.97 billion from 4Q09, primarily due to the payment of employee bonus of NT$6.66 billion and the increase in accounts receivable of NT$4.89 billion.

Net cash used in investing activities increased NT$9.19 billion to NT$56.29 billion in 1Q10, mainly due to the acquisition of Motech shares and higher capital expenditures.

Net cash used in financing activities was NT$0.84 billion during the quarter.

As a result, TSMC ended 1Q10 with a cash balance of NT$159.80 billion.

Operating and Free Cash Flows:

Cash flows generated from operating activities were NT$46.03 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, decreased by NT$19.40 billion compared to 4Q09, mainly due to the decrease in operating cash flow of NT$15.97 billion as discussed in previous paragraphs, and to a lesser extent, higher capital expenditures with a NT$3.43 billion increase compared with 4Q09.

V — 1. Capital Expenditures

(In US millions)		1Q10				4Q09
TSMC			1,433				1,304
XinTec and GUC			2				1
TSMC China & WaferTech			8				4
Other TSMC Subsidiaries			1				1
Total TSMC			1,444				1,310

Capital Expenditures:

Capital expenditures for TSMC on a consolidated basis totaled US$1.44 billion in 1Q10.

TSMC
April 27, 2010		Page 6

V—2. Capacity

		2009				1Q10				2Q10				3Q10				4Q10				2010
Fab / (Wafer size)		(A)				(A)				(F)				(F)				(F)				(F)
Fab-2 (6”)(1)			1,121				254				242				264				264				1,025
Fab-3 (8”)			1,150				267				282				300				300				1,149
Fab-5 (8”)			599				139				144				141				141				564
Fab-6 (8”)			1,154				269				280				282				282				1,113
Fab-8 (8”)			1,066				247				253				254				255				1,009
Fab-12 (12”)(2)			879				269				300				309				311				1,189
Fab-14 (12”)(2)			958				261				299				345				383				1,288
WaferTech (8”)			431				106				107				108				108				429
TSMC China (8”)			531				132				134				145				147				557
TSMC total capacity (8” equiv. Kpcs)			9,695				2,497				2,683				2,850				2,941				10,971
SSMC (8”)			259				69				69				69				69				276
Total managed capacity (8” equiv. Kpcs)			9,955				2,566				2,752				2,919				3,010				11,247

Capacity:

Total managed capacity was 2,566K 8-inch equivalent wafers in 1Q10, increased by 1% from 2,532K in 4Q09. Total managed capacity in 2Q10 is expected to increase by 7% to reach 2,752K 8-inch equivalent wafers, in which 12” wafer capacity will increase by 13% sequentially. Meanwhile, legacy fabs capacity will increase by 2% in the second quarter of 2010.

Total managed capacity in 2010 is expected to reach 11,247K 8-inch equivalent wafers, representing a 13% increase from 9,955K 8-inch equivalent wafers in 2009, while capacity for 12-inch wafer fabs is expected to increase 35% year-over-year.

TSMC
April 27, 2010		Page 7

VI. Recap of Recent Important Events & Announcements

•		TSMC Breaks Ground on Fab for LED Lighting Business (2010/03/25)
•		TSMC to Take Delivery of an ASML EUV Lithography System (2010/02/22)
•		TSMC and MAPPER Reached Joint Development Milestone (2010/02/19)
•		TSMC Board of Directors Proposes NT$3.0 Cash Dividend Per Share (2010/02/09)
•		TSMC Holds Topping Ceremony For Fab 12, Phase 5 (2010/01/19)
•		Qualcomm and TSMC Collaborating on 28nm Process Technology (2010/01/08)

		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, 2010 (unaudited)												December 31, 2009 (audited)								March 31, 2009 (unaudited)								QoQ								YoY
		USD				NTD				%				NTD				%				NTD				%				Amount				%				Amount				%
ASSETS
Current Assets
Cash and Cash Equivalents		$	5,022			$	159,800				25.5			$	171,276				28.8			$	223,262				40.4				($11,476	)			(6.7	)			($63,462	)			(28.4	)
Investments in Marketable Financial Instruments			1,012				32,210				5.1				24,521				4.1				6,527				1.2				7,689				31.4				25,683				393.5
Accounts Receivable — Trade			1,250				39,771				6.3				35,382				5.9				13,822				2.5				4,389				12.4				25,949				187.7
Inventories, Net			713				22,694				3.6				20,914				3.5				14,775				2.7				1,780				8.5				7,919				53.6
Other Current Assets			350				11,141				1.9				7,711				1.4				10,171				1.8				3,430				44.5				970				9.5
Total Current Assets			8,347				265,616				42.4				259,804				43.7				268,557				48.6				5,812				2.2				(2,941	)			(1.1	)
Long-Term Investments			1,250				39,763				6.3				37,845				6.4				35,682				6.5				1,918				5.1				4,081				11.4
Properties, Plant and Equipment			31,836				1,012,982				161.6				967,419				162.7				867,199				156.9				45,563				4.7				145,783				16.8
Less: Accumulated Depreciation			(22,419	)			(713,353	)			(113.8	)			(693,744	)			(116.7	)			(640,121	)			(115.8	)			(19,609	)			2.8				(73,232	)			11.4
Properties, Plant and Equipment, Net			9,417				299,629				47.8				273,675				46.0				227,078				41.1				25,954				9.5				72,551				31.9
Other Assets			686				21,821				3.5				23,372				3.9				21,458				3.8				(1,551	)			(6.6	)			363				1.7
Total Assets		$	19,700			$	626,829				100.0			$	594,696				100.0			$	552,775				100.0			$	32,133				5.4			$	74,054				13.4
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Short-term loan payable		$	10			$	318				—			$	—				—			$	—				—			$	318							$	318
Accounts Payables			365				11,626				1.9				11,689				2.0				5,824				1.1				(63	)			(0.5	)			5,802				99.6
Payables to Contractors and Equipment Suppliers			905				28,785				4.6				28,924				4.9				5,145				0.9				(139	)			(0.5	)			23,640				459.5
Accrued Expenses and Other Current Liabilities			1,148				36,501				5.9				37,571				6.2				34,120				6.1				(1,070	)			(2.8	)			2,381				7.0
Current Portion of Bonds Payable and Long-Term Debts			30				945				0.1				949				0.2				286				0.1				(4	)			(0.5	)			659				229.7
Total Current Liabilities			2,458				78,175				12.5				79,133				13.3				45,375				8.2				(958	)			(1.2	)			32,800				72.3
Bonds Payable			141				4,500				0.7				4,500				0.8				4,500				0.8				—				—				—				—
Other Long-Term Liabilities			372				11,849				1.9				12,015				2.0				17,587				3.2				(166	)			(1.4	)			(5,738	)			(32.6	)
Total Liabilities			2,971				94,524				15.1				95,648				16.1				67,462				12.2				(1,124	)			(1.2	)			27,062				40.1
Shareholders’ Equity Attributable to Shareholders of the Parent
Capital Stock at Par Value			8,141				259,038				41.3				259,027				43.6				256,260				46.4				11				0.0				2,778				1.1
Capital Surplus			1,745				55,531				8.9				55,486				9.3				49,965				9.0				45				0.1				5,566				11.1
Legal Capital Reserve (2)			2,430				77,317				12.3				77,317				13.0				67,324				12.2				—				—				9,993				14.8
Special Capital Reserve (2)			—				—				—				—				—				392				0.1				—								(392	)			(100.0	)
Unappropriated Earnings (2)			4,344				138,228				22.1				104,565				17.5				103,896				18.8				33,663				32.2				34,332				33.0
Treasury Stock			—				—				—				—				—				—				—				—								—
Others			(62	)			(1,976	)			(0.3	)			(1,312	)			(0.2	)			3,710				0.6				(664	)			50.5				(5,686	)			(153.3	)
Total Equity Attributable to Shareholders of the Parent			16,598				528,138				84.3				495,083				83.2				481,547				87.1				33,055				6.7				46,591				9.7
Minority Interests			131				4,167				0.6				3,965				0.7				3,766				0.7				202				5.1				401				10.6
Total Shareholders’ Equity			16,729				532,305				84.9				499,048				83.9				485,313				87.8				33,257				6.7				46,992				9.7
Total Liabilities & Shareholders’ Equity		$	19,700			$	626,829				100.0			$	594,696				100.0			$	552,775				100.0			$	32,133				5.4			$	74,054				13.4

		TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Unaudited Consolidated Condensed Income Statements For the Three Months Ended March 31, 2010, December 31, 2009, March 31, 2009 (Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”) (1) Except for Per Share Amounts and Shares Outstanding)

		1Q 2010												4Q 2009								1Q 2009								QoQ								YoY
		USD				NTD				%				NTD				%				NTD				%				Amount				%				Amount				%
Net Sales		$	2,885			$	92,187				100.0			$	92,094				100.0			$	39,500				100.0			$	93				0.1			$	52,687				133.4
Cost of Sales			(1,502	)			(48,002	)			(52.1	)			(47,399	)			(51.5	)			(32,020	)			(81.1	)			(603	)			1.3				(15,982	)			49.9
Gross Profit			1,383				44,185				47.9				44,695				48.5				7,480				18.9				(510	)			(1.1	)			36,705				490.7
Operating Expenses
Research and Development Expenses			(201	)			(6,410	)			(7.0	)			(6,567	)			(7.1	)			(3,729	)			(9.4	)			157				(2.4	)			(2,681	)			71.9
General and Administrative Expenses			(77	)			(2,472	)			(2.6	)			(3,269	)			(3.6	)			(1,595	)			(4.0	)			797				(24.4	)			(877	)			55.0
Sales and Marketing Expenses			(37	)			(1,175	)			(1.3	)			(1,217	)			(1.3	)			(947	)			(2.4	)			42				(3.4	)			(228	)			24.1
Total Operating Expenses			(315	)			(10,057	)			(10.9	)			(11,053	)			(12.0	)			(6,271	)			(15.9	)			996				(9.0	)			(3,786	)			60.4
Income from Operations			1,068				34,128				37.0				33,642				36.5				1,209				3.1				486				1.4				32,919				2722.0
Non-Operating Income, Net			31				998				1.1				1,427				1.6				353				0.9				(429	)			(30.1	)			645				183.8
Investment Gains			6				177				0.2				299				0.3				(813	)			-2.1				(122	)			(40.8	)			990				(121.8	)
Income before Income Tax			1,105				35,303				38.3				35,368				38.4				749				1.9				(65	)			(0.2	)			34,554				4616.5
Income Tax Expenses			(47	)			(1,478	)			(1.6	)			(2,508	)			(2.7	)			739				1.9				1,030				(41.1	)			(2,217	)			(299.9	)
Net Income			1,058				33,825				36.7				32,860				35.7				1,488				3.8				965				2.9				32,337				2173.6
Minority Interests			(5	)			(162	)			(0.2	)			(194	)			(0.2	)			71				0.1				32				(16.5	)			(233	)			(328.0	)
Net Income Attributable to Shareholders of the Parent			1,053				33,663				36.5				32,666				35.5				1,559				3.9				997				3.1				32,104				2059.5
Earnings per Share — Diluted		$	0.04			$	1.30							$	1.26							$	0.06							$	0.04				3.1			$	1.24				2059.8
Earnings per ADR — Diluted (2)		$	0.20			$	6.49							$	6.30							$	0.30							$	0.19				3.1			$	6.19				2059.8
Weighted Average Outstanding Shares — Diluted (‘M) (3)							25,916								25,916								25,920

		TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Consolidated Condensed Statements of Cash Flows For the Three Months Ended March 31, 2010, December 31, 2009, and March 31, 2009 (Expressed in Millions of New Taiwan Dollars (“NTD”) and U.S. Dollars (“USD”)) (1)

		1Q 2010								4Q 2009				1Q 2009
		(unaudited)								(unaudited)				(unaudited)
		USD				NTD				NTD				NTD
Cash Flows from Operating Activities:
Net Income		$	1,053			$	33,663			$	32,666			$	1,559
Net Income Attributable to Minority Interest			5				162				194				(71	)
Depreciation & Amortization			657				21,003				20,277				20,483
Deferred Income Tax			(22	)			(718	)			(630	)			(1,394	)
Equity in Losses (Earnings) of Equity Method Investees, Net			(6	)			(177	)			(299	)			813
Changes in Working Capital & Others			(247	)			(7,899	)			9,791				5,398
Net Cash Provided by Operating Activities			1,440				46,034				61,999				26,788
Cash Flows from Investing Activities:
Acquisitions of:
Marketable Financial Instruments			(809	)			(25,858	)			(19,979	)			(9,251	)
Investments Accounted for Using Equity Method			(195	)			(6,229	)			(11	)			—
Property, Plant and Equipment			(1,444	)			(46,136	)			(42,715	)			(5,617	)
Financial Assets Carried at Cost			(3	)			(111	)			(51	)			(83	)
Proceeds from Disposal or maturity of:
Marketable Financial Instruments			695				22,220				16,394				23,053
Property, Plant and Equipment			1				36				17				2
Financial Assets Carried at Cost			1				26				37				—
Others			(7	)			(237	)			(794	)			32
Net Cash Used In Investing Activities			(1,761	)			(56,289	)			(47,102	)			8,136
Cash Flows from Financing Activities:
Decrease in Guarantee Deposits			(3	)			(90	)			(151	)			(165	)
Proceeds from Exercise of Stock Options			1				37				70				15
Repayment of Long-Term Bonds Payable			—				—				—				(8,000	)
Others			(24	)			(790	)			(196	)			275
Net Cash Used in Financing Activities			(26	)			(843	)			(277	)			(7,875	)
Net Increase (Decrease) in Cash and Cash Equivalents			(347	)			(11,098	)			14,620				27,049
Effect of Exchange Rate Changes and Others			(12	)			(378	)			(279	)			1,599
Cash and Cash Equivalents at Beginning of Period			5,360				171,276				156,935				194,614
Cash and Cash Equivalents at End of Period		$	5,001			$	159,800			$	171,276			$	223,262