TSMC Reports Second Quarter EPS of NT$0.94

HSIN-CHU, Taiwan, July 30 /PRNewswire-Asia-FirstCall/ -- TSMC (TAIEX: 2330;
NYSE: TSM) today announced consolidated revenue of NT$74.21 billion, net
income of NT$24.44 billion, and diluted earnings per share of NT$0.94 (US$0.14
per ADS unit) for the second quarter ended June 30, 2009.
Year-over-year, second quarter revenue decreased 15.8% while net income
and diluted EPS decreased 15% and 13.9%, respectively. Compared to first
quarter of 2009, second quarter results represent an 87.9% increase in
revenue,
and an increase of 1467.9% in net income and an increase of 1466.5% in diluted
EPS. All figures were prepared in accordance with R.O.C. GAAP on a
consolidated basis.
Gross margin for the quarter was 46.2%, operating margin was 33.9%, and
net margin was 32.9%.
As a result of improved demand outlook, customers' companies launching
new products, and customers' inventory restocking, second quarter saw a sharp
rebound in the demand for semiconductors across all applications.
Advanced process technologies (0.13-micron and below) accounted for 65% of
wafer revenues. 90-nanometer process technology accounted for 23% of wafer
revenues, 65-nanometer 28%, and 45/40 nanometer, with wafer shipments tripling
those of 1Q, exceeded 1% of total wafer sales.
"Both our macroeconomic forecast and booking trend indicate that we will
have a good third quarter," said Lora Ho, VP and Chief Financial Officer of
TSMC. "Based on our current business outlook, management expects overall
performance for third quarter 2009 to be as follows":
-- Revenue is expected to be between NT$88 billion and NT$90 billion;
-- Gross profit margin is expected to be between 46.5% and 48.5%;
-- Operating profit margin is expected to be between 35% and 37%.

Lora Ho further said: "Due to improved demand outlook for 2010 and a more
aggressive technology strategy, TSMC 2009 capital expenditure is expected to
be above both the 2008 expenditure of US$1.9 billion and the previously guided
US$1.5 billion, and is expected to be around US$2.3 billion."
Conference Call & Webcast Notice:
TSMC's quarterly review conference call will be held at 8 a.m. Eastern
Time (8 p.m. Taiwan Time) on Thursday, July 30, 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 1-857-350-1588 in the U.S., 852-3002-1672 in Hong
Kong, and 44-207-365-8426 in the U.K. (Password: TSMC). An archived version
of the webcast will be available on TSMC's web site for six months following
the Company's quarterly review conference call and webcast.
Profile
TSMC is the world's largest dedicated semiconductor foundry, providing the
industry's leading process technology and the foundry's largest portfolio of
process-proven libraries, IPs, design tools and reference flows. The Company's
total managed capacity in 2008 exceeded nine million (8-inch equivalent)
wafers, including capacity from two advanced 12-inch GIGAFABs(TM), four
eight-inch fabs, one six-inch fab, as well as TSMC's wholly owned
subsidiaries,
WaferTech and TSMC China, and its joint venture fab, SSMC. TSMC is the first
foundry to provide 40nm production capabilities. Its corporate headquarters
are in Hsinchu, Taiwan. For more information about TSMC please visit
http://www.tsmc.com .
(Management Report and Tables Follow)

TSMC 2Q09 Quarterly Management Report July 30, 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) 2Q09 1Q09 2Q08 QoQ YoY

EPS (NT$ per common share) 0.94 0.06 1.09 1466.5% (13.9%)
(US$ per ADR unit) 0.14 0.01 0.18 -- --

Consolidated Net Sales 74.21 39.50 88.14 87.9% (15.8%)
Gross Profit 34.30 7.48 40.22 358.5% (14.7%)
Gross Margin 46.2% 18.9% 45.6% -- --

Operating Expense (9.17) (6.27) (9.85) 46.2% (6.9%)
Operating Income 25.13 1.21 30.37 1977.7% (17.3%)
Operating Margin 33.9% 3.1% 34.5% -- --
Non-Operating Items 1.26 (0.46) 2.00 -- --

Net Income 24.44 1.56 28.77 1467.9% (15.0%)
Net Profit Margin 32.9% 3.9% 32.6% -- --

Wafer Shipment (kpcs 8 inch-equiv.) 1,971 892 2,329 121.0% (15.4%)

Note: Total outstanding shares were 25,626mn units on 6/30/09

Financial Highlights:

Second Quarter 2009

-- Consolidated net sales were NT$74.21 billion, representing a 87.9%
sequential growth from 1Q09 and a 15.8% decline compared to 2Q08;
-- Gross margin was 46.2%, 27.3 percentage points higher than 1Q09 and 0.6
percentage point higher than 2Q08.
-- Operating margin was 33.9%, 30.8 percentage points higher than 1Q09 and
0.6 percentage point lower than 2Q08. Operating expenses were NT$9.17
billion, NT$2.90 billion higher than the previous quarter.
-- The combined result from non-operating income and long-term investment
gains was a gain of NT$1.26 billion, compared to a loss of NT$0.46
billion in 1Q09 and a gain of NT$2.00 billion in 2Q08;
-- Consolidated net income attributable to shareholders of the parent
company was NT$24.44 billion, with net profit margin of 32.9% and
diluted EPS of NT$0.94.

I. Revenue Analysis

I. Wafer Sales Analysis

By Application 2Q09 1Q09 2Q08
Computer 28% 26% 31%
Communication 45% 46% 41%
Consumer 21% 21% 21%
Industrial/Others 6% 7% 7%

By Technology 2Q09 1Q09 2Q08
45/40nm 1% 1% 0%
65nm 28% 23% 18%
90nm 23% 25% 28%
0.11/0.13um 13% 16% 17%
0.15/0.18um 23% 21% 23%
0.25/0.35um 9% 11% 10%
0.50um+ 3% 3% 4%

By Customer Type 2Q09 1Q09 2Q08
Fabless/System 82% 77% 71%
IDM 18% 23% 29%

By Geography 2Q09 1Q09 2Q08
North America 65% 68% 72%
Asia Pacific 18% 14% 12%
China 3% 3% 2%
Europe 11% 12% 11%
Japan 3% 3% 3%

Revenue Analysis:

Application - Second quarter revenue was NT$74.21 billion, representing
87.9% sequential growth, due to improved demand outlook, electronics
companies' launching new products, and customers' inventory restocking. In
2Q09, demand strongly rebounded across all applications compared to 1Q09. On
a sequential basis, revenues from computer, communication, and consumer
applications increased 128%, 100%, and 99%, respectively.
Technology - Revenue from 45/40nm exceeded 1% of total wafer sales in
2Q09,
with wafer shipments tripling those of 1Q. Meanwhile, revenue from 65nm and
90nm were 28% and 23% of total wafer sales, respectively. Overall, revenues
from advanced technologies (0.13-micron and below) accounted for 65% of total
wafer sales.
Customer - Revenues from IDM customers accounted for 18% of total wafer
sales in 2Q09, lower than 23% in 1Q09, primarily due to continued in-sourcing
of IDM customers.
Geography - In 2Q09, revenues from customers based in North America
accounted for 65% of total wafer sales, lower than 68% in 1Q09. Meanwhile,
sales from customers in Asia Pacific, China, Europe, and Japan accounted for
18%, 3%, 11% and 3% of wafer sales, respectively.
II. Profit & Expense Analysis

II - 1. Gross Profit Analysis

(In NT billions) 2Q09 1Q09 2Q08

COGS 39.91 32.02 47.92
Depreciation 18.54 18.97 18.23
Other MFG Cost 21.37 13.05 29.69

Gross Profit 34.30 7.48 40.22

Gross Margin 46.2% 18.9% 45.6%

II - 1.1. QoQ Comparison

1Q09 Gross Margin 18.9%
Impact to Gross Margin ppts
Higher utilization 48.2
Non-wafer-related business -8.4
One-time and miscellaneous -6.7
Higher profit sharing expense -2.0
Inventory valuation impact* -1.5
Declined standard margin -1.4
Price decline: -1.7 ppts
Cost improvement: +1.4ppts
Unfavorable mix: -1.1 ppts
Unfavorable FX rate -0.9
2Q09 Gross Margin 46.2%

II - 1.2. YoY Comparison

2Q08 Gross Margin 45.6%
Impact to Gross Margin ppts
Favorable FX rate 3.7
One-time and miscellaneous 2.8
Lower utilization -4.1
Inventory valuation impact* -1.5
Declined standard margin -0.3
Price decline: -5.1 ppts
Cost improvement: +5.9 ppts
Unfavorable mix: -1.1 ppts
2Q09 Gross Margin 46.2%

Gross Profit Analysis:

Gross margin in 2Q09 was 46.2%, up 27.3 percentage points from 1Q09. A
sharply increased utilization rate contributed 48.2 percentage points to gross
margin, while several other elements acted to offset partially the increase in
gross margin, including a lower percentage of total revenue from non-wafer-
related business (-8.4 percentage points), one-time and miscellaneous items (-
6.7 percentage points), increase in employee profit sharing (-2.0 percentage
points), adverse effect of ROC SFAS No.10 on inventory valuation (-1.5
percentage points), decline in standard gross margin (-1.4 percentage points),
and unfavorable exchange rate (-0.9 percentage point).
Gross margin in 2Q09 increased 0.6 percentage point compared with 45.6% in
2Q08, due to favorable exchange rate (+3.7 percentage points), one-time and
miscellaneous items (+2.8 percentage points), partially offset by lower
utilization rate (-4.1 percentage points), negative impact from the adoption
of ROC SFAS No.10 (-1.5 percentage points), and decline in standard gross
margin (-0.3 percentage points).

II - 2. Operating Expenses

(In NT billions) 2Q09 1Q09 2Q08

Total Operating Exp. 9.17 6.27 9.85
SG&A 4.07 2.54 4.45
Research & Development 5.10 3.73 5.40
Total Operating Exp. as a % of Sales 12.3% 15.9% 11.1%

Operating Expenses:
Total operating expenses for 2Q09 increased to NT$9.17 billion,
representing 12.3% of net sales, lower than 15.9% of net sales in 1Q09.
Research and development expenditures increased by NT$1.37 billion
sequentially, mainly due to higher level of employee profit sharing and more
development expenses, mainly related to 28nm and 22nm technologies.
SG&A expenses increased by NT$1.53 billion from 1Q09 level. The increase
was mainly due to higher level of employee profit sharing and opening expense
related to Fab 12 Phase 4.

II - 3. Non-Operating Items

(In NT billions) 2Q09 1Q09 2Q08

Non-Operating Inc./(Exp.) 1.15 0.35 1.72
Net Interest Income/(Exp.) 0.56 0.88 1.24
Other Non-Operating 0.59 (0.53) 0.48

L-T Investments 0.11 (0.81) 0.28
SSMC 0.19 (0.32) 0.30
Others (0.08) (0.49) (0.02)

Total Non-Operating Items 1.26 (0.46) 2.00

Non-Operating Items:
For 2Q09, combined result from non-operating income and long-term
investment gain was a net gain of NT$1.26 billion.
Non-operating income was NT$1.15 billion, higher than NT$0.35 billion in
1Q09, primarily due to income from litigation compensation, higher disposal
gains and lower impairment losses of financial assets, partially offset by
less interest income.
Net investment gain was NT$0.11 billion, improving from a net loss of
NT$0.81 billion in 1Q09, mainly due to business recovery in VIS and SSMC.
III. Financial Condition Review

III - 1. Liquidity Analysis
(Selected Balance Sheet Items)

(In NT billions) 2Q09 1Q09 2Q08

Cash & Marketable Securities 246.77 229.79 223.99
Accounts Receivable -- Trade 33.38 13.82 41.86
Inventory 18.97 14.78 23.36
Total Current Assets 309.42 268.56 299.76
Accounts Payable 25.96 10.97 21.14
Current Portion of Bonds Payable 0.00 0.00 8.00
Dividends Payable 77.17 0.00 77.04
Accrued Bonus to Employees,
Directors and Supervisors 11.70 15.64 12.96
Accrued Liabilities and Others 14.80 18.76 27.84
Total Current Liabilities 129.63 45.37 146.98
Current Ratio (x) 2.4 5.9 2.0
Net Working Capital 179.79 223.19 152.78

Liquidity Analysis:
At the end of 2Q09, total current assets increased by NT$40.86 billion to
NT$309.42 billion, mainly contributed by the free cash flow of NT$17.10
billion (please refer to page 6) generated during this quarter.
Total current liabilities increased by NT$84.26 billion in 2Q09, primarily
resulting from the increases of cash dividend payable and payables to
contractors and equipment suppliers.
Net working capital was NT$179.79 billion and current ratio decreased to
2.4x.

III - 2. Receivable/Inventory Days

(In Number of Days)
2Q09 1Q09 2Q08

Days of Receivable 30 38 42
Days of Inventory 42 44 47

Receivable and Inventory Days:
Sequentially, days of receivable decreased by eight days to 30 days in
2Q09, mainly resulting from a slower growth in average receivables than in
revenue. Days of inventory decreased by two days to 42 days.

III - 3. Debt Service

(In NT billions) 2Q09 1Q09 2Q08

Cash & Marketable Securities 246.77 229.79 223.99
Interest-Bearing Debt 15.57 16.00 22.90
Net Cash Reserves 231.20 213.79 201.09

Debt Service:
Net cash reserves - defined as the excess of cash and short-term
marketable securities over interest-bearing debt - increased by NT$17.41
billion to NT$231.20 billion at the end of 2Q09, primarily due to free cash
flow of NT$17.10 billion generated during this quarter.
IV. Cash Flow

IV - 1. Cash Flow Analysis

(In NT billions) 2Q09 1Q09 2Q08

Net Income 24.44 1.56 28.77
Depreciation & Amortization 20.05 20.48 20.03
Other Operating Sources/(Uses) (19.97) 4.75 (3.75)
Total Operating Sources/(Uses) 24.52 26.79 45.05

Capital Expenditure (7.42) (5.62) (22.27)
Marketable Financial Instruments 1.68 13.80 27.20
Other Investing Sources/(Uses) (0.25) (0.04) (1.33)
Net Investing Sources/(Uses) (5.99) 8.14 3.60

Repayment of Bonds Payable 0.00 (8.00) 0.00
Purchase of Treasury Stock 0.00 0.00 (6.62)
Other Financing Sources/(Uses) (0.34) 0.12 (0.23)
Net Financing Sources/(Uses) (0.34) (7.88) (6.85)
Net Cash Position Changes 18.19 27.05 41.80
Exchange Rate Changes & Others (1.93) 1.60 (0.73)
Ending Cash Balance 239.52 223.26 185.35

Summary of Cash Flow:
Cash generated from operating activities totaled NT$24.52 billion during
2Q09, down from NT$26.79 billion in 1Q09, mainly due to higher level of
business activities.
Net cash used in investing activities was NT$5.99 billion in 2Q09,
reflecting capital expenditure of NT$7.42 billion and a NT$1.68 billion net
decrease in marketable financial instruments. As a result, TSMC ended 2Q09
with a cash balance of NT$239.52 billion.

IV - 2. Operating and Free Cash Flows:

Operating and Free Cash Flows:

Cash flows generated from operating activities were NT$24.52 billion
during the quarter. Free cash flow, defined as the excess of operating cash
flows over capital expenditures, totaled NT$17.10 billion in 2Q09, compared to
NT$21.17 billion in 1Q09.
Please refer to the link for the index charts:
http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf
V. CapEx & Capacity

V - 1. Capital Expenditures

(In US millions) 1Q09 2Q09 YTD

TSMC 161 218 379
XinTec and GUC 2 3 5
TSMC Shanghai & WaferTech 3 3 6
Other TSMC Subsidiaries 0 0 0
Total TSMC 166 224 390

Capital Expenditures:
Capital expenditures for TSMC on a consolidated basis totaled US$224
million in 2Q09.
For year 2009, total capital expenditures for TSMC is expected to be
around US$2.3 billion, compared with US$1.9 billion spent in 2008.

V-2. Capacity

4Q08 1Q09 2Q09 3Q09 4Q09 2009
Fab / (Wafer size) (A) (A) (A) (F) (F) (F)

Fab-2 (6") Note 1 272 274 280 283 283 1,121
Fab-3 (8") 274 286 289 292 283 1,150
Fab-5 (8") 161 162 149 144 144 599
Fab-6 (8") 282 295 284 287 287 1,154
Fab-8 (8") 272 275 271 265 255 1,066
Fab-12 (12") Note 2 221 218 219 199 241 878
Fab-14 (12") Note 2 236 238 238 237 240 952
WaferTech (8") 106 106 107 109 109 431
TSMC China (8") 128 128 134 135 135 531
TSMC total capacity
(8" equiv. Kpcs) 2,405 2,431 2,419 2,373 2,455 9,678
SSMC (8") 73 64 65 65 65 259
Total managed capacity
(8" equiv. Kpcs) 2,478 2,495 2,483 2,438 2,520 9,937

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

Capacity:

Total managed capacity was 2,483K 8-inch equivalent wafers in the second
quarter, decreased by 0.5% from 2,495K in 1Q09, mainly due to capacity
migration to higher nodes.
Total managed capacity in 2009 is expected to reach 9,937K 8-inch
equivalent wafers, representing an increase of 6.0% from 9,377K 8-inch
equivalent wafers in 2008, while capacity for 12-inch wafer fabs is expected
to increase by 10%, reaching 41% of total capacity.
VI. Recap of Recent Important Events & Announcements

-- TSMC Enhances 0.13um Family to Enable Area Reduction and
Performance Gain with Slim Platform for Analog and Power Management
System-on-Chip Applications ( 2009/06/29 )
-- TSMC Sets July 21 as Record Date and July 15th as Ex-dividend Date
for Common Share Dividends ( 2009/06/25 and 2009/6/30 )
-- TSMC Reports Foundry's First 28 Nanometer Low Power Platform
Technology with Fully Functional 64Mb SRAM ( 2009/06/17 )
-- TSMC Board of Directors Unanimously Re-elects and Appoints Dr.
Morris Chang as Chairman. Dr. Chang Returns as Chief Executive
Officer, Effective June 12, 2009. ( 2009/06/11 )
-- TSMC Shareholders Approve NT$3.0 Cash and 0.5% Stock Dividend, and
Elect TSMC's 11th Board of Directors , Including Four Independent
Directors ( 2009/06/10 )
-- TSMC Launches Unified Interconnect Modeling Format for Advanced
Process Technologies ( 2009/05/27 )
-- Fujitsu Microelectronics and TSMC to Collaborate on Leading-edge
Process Technology ( 2009/04/30 )
-- TSMC Launches Integrated Sign-Off Flow To Shorten Design Cycle,
Enhance Tape-Out Quality ( 2009/04/21 )
-- TSMC Announces Foundry's First Mixed Signal/RF Referenced Design
Kit ( 2009/04/21 )
-- TSMC/GUC 65LP ARM 1176JZF hardened cores Open Doors for 65nm
Designers ( 2009/04/20 )

* Please visit TSMC's Web site ( http://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)

June 30, 2009 March 31, 2009
(audited) (unaudited)
ASSETS USD NTD % NTD %
Current Assets
Cash and Cash Equivalents $7,298 $239,517 40.8 $223,262 40.4
Investments in Marketable
Financial Instruments 221 7,252 1.2 6,527 1.2
Accounts Receivable -- Trade 1,017 33,384 5.7 13,822 2.5
Inventories, Net 578 18,974 3.2 14,775 2.7
Other Current Assets 314 10,292 1.8 10,171 1.8
Total Current Assets 9,428 309,419 52.7 268,557 48.6

Long-Term Investments 990 32,498 5.5 35,682 6.5

Properties, Plant and
Equipment 26,872 881,897 150.1 867,199 156.9
Less: Accumulated
Depreciation (20,014) (656,826) (111.8) (640,121) (115.8)
Properties, Plant and
Equipment, Net 6,858 225,071 38.3 227,078 41.1

Other Assets 627 20,555 3.5 21,458 3.8
Total Assets $17,903 $587,543 100.0 $552,775 100.0

LIABILITIES AND SHAREHOLDERS'
EQUITY
Current Liabilities
Accounts Payables $308 $10,105 1.7 $5,824 1.1
Payables to Contractors and
Equipment Suppliers 483 15,853 2.7 5,145 0.9
Accrued Expenses and Other
Current Liabilities 3,150 103,363 17.6 34,120 6.1
Current Portion of Bonds
Payable and Long-Term
Liabilities 9 309 0.1 286 0.1
Total Current
Liabilities 3,950 129,630 22.1 45,375 8.2
Bonds Payable 137 4,500 0.8 4,500 0.8
Other Long-Term Liabilities 489 16,060 2.7 17,587 3.2
Total Liabilities 4,576 150,190 25.6 67,462 12.2

Shareholders' Equity
Attributable to Shareholders
of the Parent
Capital Stock at Par Value 7,891 258,964 44.1 256,260 46.4
Capital Surplus 1,686 55,331 9.4 49,965 9.0
Legal Capital Reserve (2) 2,356 77,317 13.2 67,324 12.2
Special Capital Reserve (2) -- -- -- 392 0.1
Unappropriated Earnings (2) 1,260 41,348 7.0 103,896 18.8
Treasury Stock -- -- -- -- --
Others 24 801 0.1 3,710 0.6
Total Equity
Attributable to
Shareholders of the
Parent 13,217 433,761 73.8 481,547 87.1
Minority Interests 110 3,592 0.6 3,766 0.7
Total Shareholders'
Equity 13,327 437,353 74.4 485,313 87.8
Total Liabilities &
Shareholders' Equity $17,903 $587,543 100.0 $552,775 100.0

Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the rate of NT$32.818 as of June 30, 2009.
(2) Certain prior period balances have been reclassified to conform to
the current period presentation.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Expressed in Millions of New Taiwan Dollars ("NTD") and
U.S. Dollars("USD"))(1)(Continued)

June 30, 2008
(audited) QoQ YoY
ASSETS NTD % Amount % Amount %
Current Assets
Cash and Cash
Equivalents $185,346 30.1 $16,255 7.3 $54,171 29.2
Investments in
Marketable
Financial
Instruments 38,642 6.3 725 11.1 (31,390) (81.2)
Accounts Receivable
-- Trade 41,858 6.8 19,562 141.5 (8,474) (20.2)
Inventories, Net 23,359 3.8 4,199 28.4 (4,385) (18.8)
Other Current Assets 10,558 1.7 121 1.2 (266) (2.5)
Total Current
Assets 299,763 48.7 40,862 15.2 9,656 3.2

Long-Term Investments 31,937 5.2 (3,184) (8.9) 561 1.8

Properties, Plant and
Equipment 836,936 136.0 14,698 1.7 44,961 5.4
Less: Accumulated
Depreciation (574,738) (93.4) (16,705) 2.6 (82,088) 14.3
Properties, Plant
and Equipment,
Net 262,198 42.6 (2,007) (0.9) (37,127) (14.2)

Other Assets 21,325 3.5 (903) (4.2) (770) (3.6)
Total Assets $615,223 100.0 $34,768 6.3 ($27,680) (4.5)

LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payables $11,632 1.9 $4,281 73.5 ($1,527) (13.1)
Payables to
Contractors and
Equipment Suppliers 9,511 1.5 10,708 208.1 6,342 66.7
Accrued Expenses and
Other Current
Liabilities 117,576 19.2 69,243 202.9 (14,213) (12.1)
Current Portion of
Bonds Payable and
Long-Term
Liabilities 8,262 1.3 23 7.8 (7,953) (96.3)
Total Current
Liabilities 146,981 23.9 84,255 185.7 (17,351) (11.8)
Bonds Payable 4,500 0.7 -- -- -- --
Other Long-Term
Liabilities 17,055 2.8 (1,527) (8.7) (995) (5.8)
Total Liabilities 168,536 27.4 82,728 122.6 (18,346) (10.9)

Shareholders' Equity
Attributable to
Shareholders of the
Parent
Capital Stock at Par
Value 261,535 42.5 2,704 1.1 (2,571) (1.0)
Capital Surplus 50,917 8.3 5,366 10.7 4,414 8.7
Legal Capital
Reserve (2) 67,324 10.9 9,993 14.8 9,993 14.8
Special Capital
Reserve (2) 392 0.1 (392) (100.0) (392) (100.0)
Unappropriated
Earnings (2) 84,237 13.7 (62,548) (60.2) (42,889) (50.9)
Treasury Stock (14,845) (2.4) -- -- 14,845 (100.0)
Others (6,319) (1.1) (2,909) (78.4) 7,120 (112.7)
Total Equity
Attributable to
Shareholders of
the Parent 443,241 72.0 (47,786) (9.9) (9,480) (2.1)
Minority Interests 3,446 0.6 (174) (4.6) 146 4.2
Total
Shareholders'
Equity 446,687 72.6 (47,960) (9.9) (9,334) (2.1)
Total Liabilities &
Shareholders' Equity $615,223 100.0 $34,768 6.3 ($27,680) (4.5)

Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the rate of NT$32.818 as of June 30, 2009.
(2) Certain prior period balances have been reclassified to conform to
the current period presentation.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended June 30, 2009, March 31, 2009, June 30, 2008
(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars
("USD") (1)
Except for Per Share Amounts and Shares Outstanding)

2Q 2009 1Q 2009
USD NTD % NTD %
Net Sales $2,242 $74,212 100.0 $39,500 100.0
Cost of Sales (1,206) (39,916) (53.8) (32,020) (81.1)
Gross Profit 1,036 34,296 46.2 7,480 18.9
Operating Expenses
Research and Development
Expenses (154) (5,096) (6.9) (3,729) (9.4)
General and Administrative
Expenses (87) (2,881) (3.8) (1,595) (4.0)
Sales and Marketing Expenses (36) (1,192) (1.6) (947) (2.4)
Total Operating Expenses (277) (9,169) (12.3) (6,271) (15.9)

Income from Operations 759 25,127 33.9 1,209 3.1

Non-Operating Income, Net 35 1,156 1.6 353 0.9
Investment Gains (Losses) 3 106 0.1 (813) (2.1)
Income before Income Tax 797 26,389 35.6 749 1.9

Income Tax Benefits (Expenses) (59) (1,943) (2.7) 739 1.9

Net Income 738 24,446 32.9 1,488 3.8

Minority Interests 0 (4) -- 71 0.1

Net Income Attributable to
Shareholders of
the Parent 738 24,442 32.9 1,559 3.9

Earnings per Share -- Diluted $0.03 $0.94 -- $0.06 --
Earnings per ADR -- Diluted (2) $0.14 $4.71 -- $0.30 --

Weighted Average Outstanding
Shares -- Diluted ('M) (3) -- 25,944 -- 25,920 --

Note:
(1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD33.104 for the second
quarter of 2009.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 25,920M and
26,286M shares for 1Q09 and 2Q08 after the retroactive adjustments
for stock dividends.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Consolidated Condensed Income Statements
For the Three Months Ended June 30, 2009, March 31, 2009, June 30, 2008
(Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars
(USD) (1)
Except for Per Share Amounts and Shares Outstanding) (Continued)

2Q 2008 QoQ YoY
NTD % Amount % Amount %
Net Sales $88,137 100.0 $34,712 87.9 ($13,925) (15.8)
Cost of Sales (47,916) (54.4) (7,896) 24.7 8,000 (16.7)
Gross Profit 40,221 45.6 26,816 358.5 (5,925) (14.7)
Operating Expenses
Research and
Development Expenses (5,404) (6.1) (1,367) 36.7 308 (5.7)
General and
Administrative
Expenses (3,170) (3.6) (1,286) 80.7 289 (9.1)
Sales and Marketing
Expenses (1,274) (1.4) (245) 25.8 82 (6.5)
Total Operating
Expenses (9,848) (11.1) (2,898) 46.2 679 (6.9)

Income from
Operations 30,373 34.5 23,918 1,977.7 (5,246) (17.3)

Non-Operating Income,
Net 1,725 1.9 803 228.9 (569) (32.9)
Investment Gains
(Losses) 279 0.3 919 (113.0) (173) (62.1)
Income before Income
Tax 32,377 36.7 25,640 3,425.6 (5,988) (18.5)

Income Tax Benefits
(Expenses) (3,503) (4.0) (2,682) (362.9) 1,560 (44.5)

Net Income 28,874 32.7 22,958 1,543.1 (4,428) (15.3)

Minority Interests (103) (0.1) (75) (105.4) 99 (96.3)

Net Income Attributable
to Shareholders of
the Parent 28,771 32.6 22,883 1,467.9 (4,329) (15.0)

Earnings per Share
-- Diluted $1.09 -- $0.88 1,466.5 ($0.15) (13.9)
Earnings per ADR
-- Diluted (2) $5.47 -- $4.41 1,466.5 ($0.76) (13.9)

Weighted Average
Outstanding Shares
-- Diluted ('M) (3) 26,286 -- -- -- -- --

Note:
(1) Amounts in New Taiwan dollars have been translated into U.S.
dollars at the weighted average rate of NTD33.104 for the second
quarter of 2009.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 25,920M and
26,286M shares for 1Q09 and 2Q08 after the retroactive adjustments
for stock dividends.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Audited Consolidated Condensed Income Statements
For the Six Months Ended June 30, 2009 and 2008
(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars
("USD") (1)
Except for Per Share Amounts and Shares Outstanding)

For the Six Months Ended June 30
2009 2008
USD NTD % NTD %
Net Sales $3,406 $113,712 100.0 $175,617 100.0
Cost of Sales (2,155) (71,936) (63.3) (97,156) (55.3)
Gross Profit 1,251 41,776 36.7 78,461 44.7
Operating Expenses
Research and Development
Expenses (264) (8,825) (7.8) (10,674) (6.1)
General and Administrative
Expenses (134) (4,476) (3.9) (5,833) (3.3)
Sales and Marketing Expenses (64) (2,139) (1.8) (2,458) (1.4)
Total Operating Expenses (462) (15,440) (13.5) (18,965) (10.8)

Income from Operations 789 26,336 23.2 59,496 33.9

Non-Operating Income, Net 45 1,508 1.3 3,596 2.0
Investment Gains (Losses) (21) (707) (0.6) 857 0.5
Income before Income Tax 813 27,137 23.9 63,949 36.4

Income Tax Expenses (36) (1,204) (1.1) (6,839) (3.9)

Net Income 777 25,933 22.8 57,110 32.5

Minority Interests 2 68 0.1 (196) (0.1)

Net Income Attributable to
Shareholders of
the Parent 779 26,001 22.9 56,914 32.4

Earnings per Share -- Diluted $0.03 $1.00 -- $2.16 --
Earnings per ADR -- Diluted (2) $0.15 $5.01 -- $10.81 --

Weighted Average Outstanding
Shares -- Diluted ('M) (3) -- 25,944 -- 26,332 --

Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the weighted average rate of NTD 33.384 for the six months ended
June 30, 2009.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 26,332M
shares for for the six months ended June 30, 2008 after the
retroactive adjustment for stock dividends.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Audited Consolidated Condensed Income Statements
For the Six Months Ended June 30, 2009 and 2008
(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars
("USD") (1)
Except for Per Share Amounts and Shares Outstanding) (Continued)

For the Six Months Ended June 30
YoY
Amount %
Net Sales ($61,905) (35.2)
Cost of Sales 25,220 (26.0)
Gross Profit (36,685) (46.8)
Operating Expenses
Research and Development Expenses 1,849 (17.3)
General and Administrative Expenses 1,357 (23.3)
Sales and Marketing Expenses 319 (13.0)
Total Operating Expenses 3,525 (18.6)

Income from Operations (33,160) (55.7)

Non-Operating Income, Net (2,088) (58.1)
Investment Gains (Losses) (1,564) (182.5)
Income before Income Tax (36,812) (57.6)

Income Tax Expenses 5,635 (82.4)

Net Income (31,177) (54.6)

Minority Interests 264 (134.3)

Net Income Attributable to
Shareholders of
the Parent (30,913) (54.3)

Earnings per Share -- Diluted ($1.16) (53.6)
Earnings per ADR -- Diluted (2) ($5.80) (53.6)

Weighted Average Outstanding Shares
-- Diluted ('M) (3) -- --

Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the weighted average rate of NTD 33.384 for the six months ended
June 30, 2009.
(2) 1 ADR equals 5 ordinary shares.
(3) Total diluted weighted average outstanding shares were 26,332M
shares for for the six months ended June 30, 2008 after the
retroactive adjustment for stock dividends.

TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES
Consolidated Condensed Statements of Cash Flows
For the Six Months Ended June 30, 2009 and for the Three Months Ended
June 30, 2009, March 31, 2009, and June 30, 2008
(Expressed in Millions of New Taiwan Dollars ("NTD") and U.S. Dollars
("USD")) (1)

Six Months 2009 2Q 2009 1Q 2009 2Q 2008
(Audited) (Unaudited)(Unaudited)(Unaudited)

USD NTD NTD NTD NTD
Cash Flows from Operating
Activities:
Net Income $779 $26,001 $24,442 $1,559 $28,771
Net Income (Loss)
Attributable to
Minority Interest (2) (67) 4 (71) 103
Depreciation &
Amortization 1,214 40,536 20,053 20,483 20,034
Deferred Income Tax (21) (697) 697 (1,394) 1,280
Equity in Losses
(Earnings) of Equity
Method Investees,
Net 21 707 (106) 813 (280)
Changes in Working
Capital & Others (454) (15,168) (20,566) 5,398 (4,857)
Net Cash Provided by
Operating Activities 1,537 51,312 24,524 26,788 45,051

Cash Flows from Investing
Activities:
Acquisitions of:
Marketable
Financial
Instruments (306) (10,219) (968) (9,251) (14,635)
Property, Plant
and Equipment (390) (13,032) (7,415) (5,617) (22,274)
Financial Assets
Carried at Cost (4) (131) (48) (83) (90)
Proceeds from
Disposal or maturity
of:
Marketable Financial
Instruments 770 25,704 2,651 23,053 41,840
Property, Plant
and Equipment -- 5 3 2 30
Financial Assets
Carried at Cost 2 75 75 -- 35
Others (8) (259) (291) 32 (1,310)
Net Cash Provided by
(Used In) Investing
Activities 64 2,143 (5,993) 8,136 3,596

Cash Flows from Financing
Activities:
Decrease in Guarantee
Deposits (7) (251) (86) (165) (164)
Proceeds from
Exercise of Stock
Options 1 29 14 15 91
Repayment of Long-
Term Bonds Payable (240) (8,000) -- (8,000) --
Repurchase of
Treasury Stock -- -- -- -- (6,615)
Others -- 10 (265) 275 (159)
Net Cash Used in
Financing Activities (246) (8,212) (337) (7,875) (6,847)

Net Increase in Cash and
Cash Equivalents 1,355 45,243 18,194 27,049 41,800

Effect of Exchange Rate
Changes and Others (10) (340) (1,939) 1,599 (731)

Cash and Cash Equivalents
at Beginning of Period 5,830 194,614 223,262 194,614 144,277

Cash and Cash Equivalents
at End of Period $7,175 $239,517 $239,517 $223,262 $185,346

Note:
(1) Amounts in New Taiwan dollars have been translated into U.S. dollars
at the weighted average rate of NTD33.384 for the six months ended
June 30, 2009.

Safe Harbor Notice:
The statements included in this press release that are not historical in
nature are "forward-looking statements" within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
TSMC cautions readers that forward-looking statements are subject to
significant risks and uncertainties and are based on TSMC's current
expectations. Actual results may differ materially from those contained in
such forward-looking statements for a variety of reasons including, among
others, risks associated with cyclicality and market conditions in the
semiconductor industry; demand and supply for TSMC's foundry manufacturing
capacity in particular and for foundry manufacturing capacity in general;
intense competition; the failure of one or more significant customers to
continue to place the same level of orders with us; TSMC's ability to remain a
technological leader in the semiconductor industry; TSMC's ability to manage
its capacity; TSMC's ability to obtain, preserve and defend its intellectual
property rights; natural disasters and other unexpected events which may
disrupt production; and exchange rate fluctuations. Additional information as
to these and other risk factors that may cause TSMC's actual results to differ
materially from TSMC's forward-looking statements may be found in TSMC's
Annual Report on Form 20-F, filed with the United States Securities and
Exchange Commission (the "SEC") on April 17, 2009, and such other documents as
TSMC may file with, or submit to, the SEC from time to time. Except as
required by law, we undertake no obligation to update any forward-looking
statement, whether as a result of new information, future events, or
otherwise.
CONTACT

Elizabeth Sun / Harrison Hsueh
Investor Relations Division
TSMC
Tel: +886-3-568-2085 / 2088
Email: invest@tsmc.com

SOURCE Taiwan Semiconductor Manufacturing Company Limited

Elizabeth Sun or Harrison Hsueh, +886-3-568-2085, or +886-3-568-2088,
invest@tsmc.com, both of TSMC