2007 | 2006 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
ASSETS |
||||||||||||||||
CURRENT ASSETS |
||||||||||||||||
Cash and cash equivalents (Notes 2 and 4) |
$ | 143,256,382 | 23 | $ | 127,713,018 | 22 | ||||||||||
Financial assets at fair value through profit or loss (Notes 2, 3 and 5) |
172,240 | | 322,456 | | ||||||||||||
Available-for-sale financial assets (Notes 2, 3 and 6) |
15,259,717 | 3 | 62,102,387 | 11 | ||||||||||||
Held-to-maturity financial assets (Notes 2 and 7) |
9,909,497 | 2 | 5,738,737 | 1 | ||||||||||||
Receivables from related parties (Note 23) |
20,675,167 | 3 | 22,909,889 | 4 | ||||||||||||
Notes and accounts receivable |
16,923,301 | 3 | 19,713,819 | 4 | ||||||||||||
Allowance for doubtful receivables (Note 2) |
(694,039 | ) | | (975,704 | ) | | ||||||||||
Allowance for sales returns and others (Note 2) |
(2,595,838 | ) | | (5,571,076 | ) | (1 | ) | |||||||||
Other receivables from related parties (Note 23) |
1,280,419 | | 1,659,482 | | ||||||||||||
Other financial assets |
545,717 | | 872,627 | | ||||||||||||
Inventories, net (Notes 2 and 8) |
21,677,958 | 3 | 18,375,580 | 3 | ||||||||||||
Deferred income tax assets (Notes 2 and 16) |
5,622,000 | 1 | 6,084,277 | 1 | ||||||||||||
Prepaid expenses and other current assets |
1,197,661 | | 954,026 | | ||||||||||||
Total current assets |
233,230,182 | 38 | 259,899,518 | 45 | ||||||||||||
LONG-TERM INVESTMENTS (Notes 2, 6, 7, 9 and 10) |
||||||||||||||||
Investments accounted for using equity method |
105,071,276 | 17 | 54,000,233 | 9 | ||||||||||||
Available-for-sale financial assets |
4,518,721 | 1 | 4,873,970 | 1 | ||||||||||||
Held-to-maturity financial assets |
20,788,140 | 3 | 23,524,067 | 4 | ||||||||||||
Financial assets carried at cost |
747,218 | | 818,969 | | ||||||||||||
Total long-term investments |
131,125,355 | 21 | 83,217,239 | 14 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT (Notes 2, 11 and 23) |
||||||||||||||||
Cost |
||||||||||||||||
Buildings |
99,707,179 | 16 | 91,815,148 | 16 | ||||||||||||
Machinery and equipment |
550,470,017 | 89 | 484,487,876 | 84 | ||||||||||||
Office equipment |
8,908,044 | 1 | 8,090,185 | 1 | ||||||||||||
659,085,240 | 106 | 584,393,209 | 101 | |||||||||||||
Accumulated depreciation |
(452,483,898 | ) | (73 | ) | (388,228,761 | ) | (67 | ) | ||||||||
Advance payments and construction in progress |
31,434,579 | 5 | 27,054,673 | 5 | ||||||||||||
Net property, plant and equipment |
238,035,921 | 38 | 223,219,121 | 39 | ||||||||||||
INTANGIBLE ASSETS |
||||||||||||||||
Goodwill (Note 2) |
1,567,756 | | 1,567,756 | | ||||||||||||
Deferred charges, net (Notes 2 and 12) |
5,179,415 | 1 | 6,163,992 | 1 | ||||||||||||
Total intangible assets |
6,747,171 | 1 | 7,731,748 | 1 | ||||||||||||
OTHER ASSETS |
||||||||||||||||
Deferred income tax assets (Notes 2 and 16) |
8,489,812 | 1 | 7,394,956 | 1 | ||||||||||||
Refundable deposits |
2,552,561 | 1 | 83,655 | | ||||||||||||
Assets leased to others, net (Note 2) |
64,278 | | 70,012 | | ||||||||||||
Others |
| | 6,789 | | ||||||||||||
Total other assets |
11,106,651 | 2 | 7,555,412 | 1 | ||||||||||||
TOTAL |
$ | 620,245,280 | 100 | $ | 581,623,038 | 100 | ||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||
CURRENT LIABILITIES |
||||||||||||||||
Financial liabilities at fair value through profit or loss
(Notes 2, 3 and 5) |
$ | 3,460 | | $ | 599,909 | | ||||||||||
Accounts payable |
7,497,105 | 1 | 6,772,076 | 1 | ||||||||||||
Payables to related parties (Note 23) |
3,108,623 | 1 | 3,281,423 | | ||||||||||||
Income tax payable (Notes 2 and 16) |
4,410,166 | 1 | 4,486,901 | 1 | ||||||||||||
Cash dividends and bonus payable (Note 18) |
82,061,862 | 13 | 65,257,190 | 11 | ||||||||||||
Payables to contractors and equipment suppliers |
16,515,598 | 3 | 16,952,057 | 3 | ||||||||||||
Accrued expenses and other current liabilities (Note 14) |
9,835,302 | 1 | 7,385,228 | 1 | ||||||||||||
Current portion of bonds payable (Note 13) |
4,500,000 | 1 | 2,500,000 | 1 | ||||||||||||
Total current liabilities |
127,932,116 | 21 | 107,234,784 | 18 | ||||||||||||
LONG-TERM LIABILITIES |
||||||||||||||||
Bonds payable (Note 13) |
12,500,000 | 2 | 17,000,000 | 3 | ||||||||||||
Other long-term payables (Note 14) |
1,343,935 | | 1,458,603 | | ||||||||||||
Other payables to related parties (Notes 23 and 25) |
| | 1,085,366 | | ||||||||||||
Total long-term liabilities |
13,843,935 | 2 | 19,543,969 | 3 | ||||||||||||
OTHER LIABILITIES |
||||||||||||||||
Accrued pension cost (Notes 2 and 15) |
3,583,542 | 1 | 3,484,350 | 1 | ||||||||||||
Guarantee deposits (Note 25) |
3,001,515 | | 3,354,046 | 1 | ||||||||||||
Deferred credits (Notes 2 and 23) |
997,610 | | 1,173,542 | | ||||||||||||
Total other liabilities |
7,582,667 | 1 | 8,011,938 | 2 | ||||||||||||
Total liabilities |
149,358,718 | 24 | 134,790,691 | 23 | ||||||||||||
CAPITAL STOCK $10 PAR VALUE |
||||||||||||||||
Authorized: 28,050,000 thousand shares in 2007 27,050,000 thousand shares in 2006 |
||||||||||||||||
Issued: 26,423,517 thousand shares in 2007 25,823,357 thousand shares in 2006 |
264,235,168 | 43 | 258,233,569 | 44 | ||||||||||||
CAPITAL SURPLUS (Notes 2 and 18) |
53,725,604 | 8 | 53,822,486 | 9 | ||||||||||||
RETAINED EARNINGS (Note 18) |
||||||||||||||||
Appropriated as legal capital reserve |
56,406,684 | 9 | 43,705,711 | 8 | ||||||||||||
Appropriated as special capital reserve |
629,550 | | 640,742 | | ||||||||||||
Unappropriated earnings |
96,973,825 | 16 | 92,376,976 | 16 | ||||||||||||
154,010,059 | 25 | 136,723,429 | 24 | |||||||||||||
OTHERS (Notes 2, 3, 20 and 22) |
||||||||||||||||
Cumulative translation adjustments |
(613,674 | ) | | (1,145,616 | ) | | ||||||||||
Unrealized gain on financial instruments |
447,480 | | 116,554 | | ||||||||||||
Treasury stock: 34,096 thousand shares in 2007 and 33,926 thousand
shares in 2006 |
(918,075 | ) | | (918,075 | ) | | ||||||||||
(1,084,269 | ) | | (1,947,137 | ) | | |||||||||||
Total shareholders equity |
470,886,562 | 76 | 446,832,347 | 77 | ||||||||||||
TOTAL |
$ | 620,245,280 | 100 | $ | 581,623,038 | 100 | ||||||||||
2007 | 2006 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
GROSS SALES (Notes 2 and 23) |
$ | 138,166,350 | $ | 161,789,754 | ||||||||||||
SALES RETURNS AND ALLOWANCES (Note 2) |
1,967,831 | 3,269,063 | ||||||||||||||
NET SALES |
136,198,519 | 100 | 158,520,691 | 100 | ||||||||||||
COST OF SALES (Notes 17 and 23) |
81,342,396 | 60 | 80,991,942 | 51 | ||||||||||||
GROSS PROFIT |
54,856,123 | 40 | 77,528,749 | 49 | ||||||||||||
UNREALIZED GROSS PROFIT FROM AFFILIATES |
178,259 | | | | ||||||||||||
REALIZED GROSS PROFIT |
54,677,864 | 40 | 77,528,749 | 49 | ||||||||||||
OPERATING EXPENSES (Notes 17 and 23) |
||||||||||||||||
Research and development |
7,279,536 | 5 | 7,255,721 | 4 | ||||||||||||
General and administrative |
3,436,220 | 2 | 3,379,438 | 2 | ||||||||||||
Marketing |
705,335 | 1 | 1,053,473 | 1 | ||||||||||||
Total operating expenses |
11,421,091 | 8 | 11,688,632 | 7 | ||||||||||||
INCOME FROM OPERATIONS |
43,256,773 | 32 | 65,840,117 | 42 | ||||||||||||
NON-OPERATING INCOME AND GAINS |
||||||||||||||||
Equity in earnings of equity method investees, net
(Notes 2 and 9) |
1,983,358 | 2 | 3,404,382 | 2 | ||||||||||||
Interest income (Note 2) |
1,447,702 | 1 | 1,910,958 | 1 | ||||||||||||
Settlement income (Note 25) |
491,385 | 1 | 483,734 | 1 | ||||||||||||
Technical service income (Notes 23 and 25) |
353,441 | | 344,601 | | ||||||||||||
Foreign exchange gain, net (Note 2) |
214,508 | | | | ||||||||||||
Rental income (Note 23) |
200,453 | | 100,858 | | ||||||||||||
Gain on disposal of property, plant and equipment and
other assets (Notes 2 and 23) |
144,800 | | 257,239 | | ||||||||||||
Valuation gain on financial instruments, net
(Notes 2, 5 and 22) |
134,930 | | | | ||||||||||||
Gain on settlement and disposal of financial instruments,
net (Notes 2, 5 and 22) |
| | 468,482 | | ||||||||||||
Others (Note 23) |
287,575 | | 71,693 | | ||||||||||||
Total non-operating income and gains |
5,258,152 | 4 | 7,041,947 | 4 | ||||||||||||
2007 | 2006 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
NON-OPERATING EXPENSES AND LOSSES |
||||||||||||||||
Loss on settlement and disposal of financial instruments,
net (Notes 2, 5 and 22) |
$ | 480,606 | 1 | $ | | | ||||||||||
Interest expense |
300,973 | | 330,600 | | ||||||||||||
Foreign exchange loss, net (Note 2) |
| | 1,250,047 | 1 | ||||||||||||
Valuation loss on financial instruments, net
(Notes 2, 5 and 22) |
| | 277,453 | | ||||||||||||
Others (Note 2) |
29,957 | | 117,909 | | ||||||||||||
Total non-operating expenses and losses |
811,536 | 1 | 1,976,009 | 1 | ||||||||||||
INCOME BEFORE INCOME TAX |
47,703,389 | 35 | 70,906,055 | 45 | ||||||||||||
INCOME TAX EXPENSE (Notes 2 and 16) |
3,380,808 | 2 | 4,051,241 | 3 | ||||||||||||
NET INCOME BEFORE CUMULATIVE EFFECT OF
CHANGES IN ACCOUNTING PRINCIPLES |
44,322,581 | 33 | 66,854,814 | 42 | ||||||||||||
CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES, NET OF TAX
BENEFIT OF $82,062 THOUSAND (Note 3) |
| | (246,186 | ) | | |||||||||||
NET INCOME |
$ | 44,322,581 | 33 | $ | 66,608,628 | 42 | ||||||||||
2007 | 2006 | |||||||||||||||
Before | After | Before | After | |||||||||||||
Income | Income | Income | Income | |||||||||||||
Tax | Tax | Tax | Tax | |||||||||||||
EARNINGS PER SHARE (NT$, Note 21) |
||||||||||||||||
Basic earnings per share |
$ | 1.81 | $ | 1.68 | $ | 2.68 | $ | 2.53 | ||||||||
Diluted earnings per share |
$ | 1.81 | $ | 1.68 | $ | 2.67 | $ | 2.52 | ||||||||
2007 | 2006 | |||||||
NET INCOME BEFORE CUMULATIVE EFFECT OF CHANGES IN
ACCOUNTING PRINCIPLES |
$ | 44,424,343 | $ | 66,937,134 | ||||
NET INCOME |
$ | 44,424,343 | $ | 66,690,948 | ||||
EARNINGS PER SHARE (NT$) |
||||||||
Basic earnings per share |
$ | 1.68 | $ | 2.53 | ||||
Diluted earnings per share |
$ | 1.68 | $ | 2.52 | ||||
The accompanying notes are an integral part of the financial statements. |
(Concluded) |
Others | ||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | Unrealized | |||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Legal | Special | Cumulative | Gain on | Total | |||||||||||||||||||||||||||||||||||||||||||
Shares (in | Capital | Capital | Capital | Unappropriated | Translation | Financial | Treasury | Shareholders | ||||||||||||||||||||||||||||||||||||||||
Thousands) | Amount | Surplus | Reserve | Reserve | Earnings | Total | Adjustments | Instruments | Stock | Total | Equity | |||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2007 |
25,829,688 | $ | 258,296,879 | $ | 54,107,498 | $ | 43,705,711 | $ | 640,742 | $ | 152,778,079 | $ | 197,124,532 | $ | (1,191,165 | ) | $ | 561,615 | $ | (918,075 | ) | $ | (1,547,625 | ) | $ | 507,981,284 | ||||||||||||||||||||||
Appropriations of prior years earnings |
||||||||||||||||||||||||||||||||||||||||||||||||
Legal capital reserve |
| | | 12,700,973 | | (12,700,973 | ) | | | | | | | |||||||||||||||||||||||||||||||||||
Special capital reserve |
| | | | (11,192 | ) | 11,192 | | | | | | | |||||||||||||||||||||||||||||||||||
Bonus to employees in cash |
| | | | | (4,572,798 | ) | (4,572,798 | ) | | | | | (4,572,798 | ) | |||||||||||||||||||||||||||||||||
Bonus to employees in stock |
457,280 | 4,572,798 | | | | (4,572,798 | ) | (4,572,798 | ) | | | | | | ||||||||||||||||||||||||||||||||||
Cash dividends to shareholders NT$3.00
per share |
| | | | | (77,489,064 | ) | (77,489,064 | ) | | | | | (77,489,064 | ) | |||||||||||||||||||||||||||||||||
Stock dividends to shareholders NT$0.02
per share |
51,659 | 516,594 | | | | (516,594 | ) | (516,594 | ) | | | | | | ||||||||||||||||||||||||||||||||||
Bonus to directors and supervisors |
| | | | | (285,800 | ) | (285,800 | ) | | | | | (285,800 | ) | |||||||||||||||||||||||||||||||||
Capital surplus transferred to capital stock |
77,489 | 774,891 | (774,891 | ) | | | | | | | | | | |||||||||||||||||||||||||||||||||||
Net income for the six months ended June 30,
2007 |
| | | | | 44,322,581 | 44,322,581 | | | | | 44,322,581 | ||||||||||||||||||||||||||||||||||||
Adjustment arising from changes in
percentage of ownership in equity method
investees |
| | 68,411 | | | | | | | | | 68,411 | ||||||||||||||||||||||||||||||||||||
Translation adjustments |
| | | | | | | 577,491 | | | 577,491 | 577,491 | ||||||||||||||||||||||||||||||||||||
Issuance of stock from exercising employee
stock options |
7,401 | 74,006 | 222,824 | | | | | | | | | 296,830 | ||||||||||||||||||||||||||||||||||||
Cash dividends received by subsidiaries from
the Company |
| | 101,762 | | | | | | | | | 101,762 | ||||||||||||||||||||||||||||||||||||
Valuation loss on available-for-sale
financial assets |
| | | | | | | | (83,408 | ) | | (83,408 | ) | (83,408 | ) | |||||||||||||||||||||||||||||||||
Equity in the valuation loss on available-for-sale financial assets held by equity method
investees |
| | | | | | | | (30,727 | ) | (30,727 | ) | (30,727 | ) | ||||||||||||||||||||||||||||||||||
BALANCE, JUNE 30, 2007 |
26,423,517 | $ | 264,235,168 | $ | 53,725,604 | $ | 56,406,684 | $ | 629,550 | $ | 96,973,825 | $ | 154,010,059 | $ | (613,674 | ) | $ | 447,480 | $ | (918,075 | ) | $ | (1,084,269 | ) | $ | 470,886,562 | ||||||||||||||||||||||
Others | ||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | Unrealized | |||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Legal | Special | Cumulative | Gain on | Total | |||||||||||||||||||||||||||||||||||||||||||
Shares (in | Capital | Capital | Capital | Unappropriated | Translation | Financial | Treasury | Shareholders | ||||||||||||||||||||||||||||||||||||||||
Thousands) | Amount | Surplus | Reserve | Reserve | Earnings | Total | Adjustments | Instruments | Stock | Total | Equity | |||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2006 |
24,730,025 | $ | 247,300,246 | $ | 57,117,886 | $ | 34,348,208 | $ | 2,226,427 | $ | 106,196,399 | $ | 142,771,034 | $ | (640,742 | ) | $ | | $ | (918,075 | ) | $ | (1,558,817 | ) | $ | 445,630,349 | ||||||||||||||||||||||
Appropriations of prior years earnings
|
||||||||||||||||||||||||||||||||||||||||||||||||
Legal capital reserve |
| | | 9,357,503 | | (9,357,503 | ) | | | | | | | |||||||||||||||||||||||||||||||||||
Special capital reserve |
| | | | (1,585,685 | ) | 1,585,685 | | | | | | | |||||||||||||||||||||||||||||||||||
Bonus to employees in cash |
| | | | | (3,432,129 | ) | (3,432,129 | ) | | | | | (3,432,129 | ) | |||||||||||||||||||||||||||||||||
Bonus to employees in stock |
343,213 | 3,432,129 | | | | (3,432,129 | ) | (3,432,129 | ) | | | | | | ||||||||||||||||||||||||||||||||||
Cash dividends to shareholders NT$2.50
per share |
| | | | | (61,825,061 | ) | (61,825,061 | ) | | | | | (61,825,061 | ) | |||||||||||||||||||||||||||||||||
Stock dividends to shareholders NT$0.15
per share |
370,950 | 3,709,504 | | | | (3,709,504 | ) | (3,709,504 | ) | | | | | | ||||||||||||||||||||||||||||||||||
Bonus to directors and supervisors |
| | | | | (257,410 | ) | (257,410 | ) | | | | | (257,410 | ) | |||||||||||||||||||||||||||||||||
Capital surplus transferred to capital stock |
370,950 | 3,709,504 | (3,709,504 | ) | | | | | | | | | | |||||||||||||||||||||||||||||||||||
Net income for the six months ended June 30,
2006 |
| | | | | 66,608,628 | 66,608,628 | | | | | 66,608,628 | ||||||||||||||||||||||||||||||||||||
Adjustment arising from changes in
percentage of ownership in equity method
investees |
| | 87,920 | | | | | | | | | 87,920 | ||||||||||||||||||||||||||||||||||||
Translation adjustments |
| | | | | | | (504,874 | ) | | | (504,874 | ) | (504,874 | ) | |||||||||||||||||||||||||||||||||
Issuance of stock from exercising employee
stock options |
8,219 | 82,186 | 243,864 | | | | | | | | | 326,050 | ||||||||||||||||||||||||||||||||||||
Cash dividends received by subsidiaries from
the Company |
| | 82,320 | | | | | | | | | 82,320 | ||||||||||||||||||||||||||||||||||||
Valuation loss on available-for-sale financial
assets |
| | | | | | | | (191,469 | ) | | (191,469 | ) | (191,469 | ) | |||||||||||||||||||||||||||||||||
Equity in the valuation gain on available-for-
sale financial assets held by equity method
investees |
| | | | | | | | 308,023 | | 308,023 | 308,023 | ||||||||||||||||||||||||||||||||||||
BALANCE, JUNE 30, 2006 |
25,823,357 | $ | 258,233,569 | $ | 53,822,486 | $ | 43,705,711 | $ | 640,742 | $ | 92,376,976 | $ | 136,723,429 | $ | (1,145,616 | ) | $ | 116,554 | $ | (918,075 | ) | $ | (1,947,137 | ) | $ | 446,832,347 | ||||||||||||||||||||||
The accompanying notes are an integral part of the financial statements. |
(Concluded) |
2007 | 2006 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net income |
$ | 44,322,581 | $ | 66,608,628 | ||||
Adjustments to reconcile net income to net cash provided by operating
activities: |
||||||||
Depreciation and amortization |
36,293,514 | 32,154,504 | ||||||
Unrealized gross profit from affiliates |
178,259 | | ||||||
Amortization of premium/ discount of financial assets |
(64,051 | ) | 43,781 | |||||
Gain on disposal of available-for-sale financial assets, net |
(233,970 | ) | (1,116 | ) | ||||
Gain on disposal of property, plant and equipment and other assets, net |
(142,673 | ) | (248,243 | ) | ||||
Equity in earnings of equity method investees, net |
(1,983,358 | ) | (3,404,382 | ) | ||||
Loss on idle assets |
| 37,283 | ||||||
Deferred income tax |
(518,685 | ) | 293,722 | |||||
Changes in operating assets and liabilities: |
||||||||
Decrease (increase) in: |
||||||||
Financial assets and liabilities at fair value through profit or loss |
(134,930 | ) | 1,424,079 | |||||
Receivables from related parties |
(3,805,658 | ) | (1,859,285 | ) | ||||
Notes and accounts receivable |
(645,137 | ) | 877,999 | |||||
Allowance for doubtful receivables |
3,108 | (640 | ) | |||||
Allowance for sales returns and others |
(155,227 | ) | 1,301,107 | |||||
Other receivables from related parties |
(145,024 | ) | 473,280 | |||||
Other financial assets |
107,743 | 233,403 | ||||||
Inventories |
(2,525,744 | ) | (2,117,625 | ) | ||||
Prepaid expenses and other current assets |
23,538 | 217,747 | ||||||
Increase (decrease) in: |
||||||||
Accounts payable |
1,353,426 | (1,280,030 | ) | |||||
Payables to related parties |
(218,293 | ) | 24,117 | |||||
Income tax payable |
(3,440,252 | ) | 671,013 | |||||
Accrued expenses and other current liabilities |
1,421,840 | (645,267 | ) | |||||
Accrued pension cost |
53,426 | 22,958 | ||||||
Deferred credits |
(47,872 | ) | (47,872 | ) | ||||
Net cash provided by operating activities |
69,696,561 | 94,779,161 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Acquisitions of: |
||||||||
Available-for-sale financial assets |
(2,151,252 | ) | (64,826,510 | ) | ||||
Held-to-maturity financial assets |
| (7,754,790 | ) | |||||
Financial assets carried at cost |
(34,375 | ) | (11,479 | ) | ||||
Investments accounted for using equity method |
(2,054,634 | ) | (274,687 | ) | ||||
Property, plant and equipment |
(38,511,341 | ) | (32,170,773 | ) | ||||
Proceeds from disposal or redemption of: |
||||||||
Available-for-sale financial assets |
15,163,560 | 44,101,660 | ||||||
Held-to-maturity financial assets |
6,825,120 | 7,837,000 | ||||||
Property, plant and equipment and other assets |
4,787 | 710,702 |
2007 | 2006 | |||||||
Proceeds from return of capital by investees |
$ | 44,258 | $ | 102,662 | ||||
Increase in deferred charges |
(1,322,268 | ) | (693,239 | ) | ||||
Increase in refundable deposits |
(1,246,327 | ) | (13 | ) | ||||
Net cash used in investing activities |
(23,282,472 | ) | (52,979,467 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Increase (decrease) in guarantee deposits |
(808,446 | ) | 461,101 | |||||
Repayment of long-term bonds payable |
(2,500,000 | ) | | |||||
Proceeds from exercise of employee stock options |
296,830 | 326,050 | ||||||
Bonus to directors and supervisors |
(285,800 | ) | (257,410 | ) | ||||
Net cash provided by (used in) financing activities |
(3,297,416 | ) | 529,741 | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
43,116,673 | 42,329,435 | ||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
100,139,709 | 85,383,583 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 143,256,382 | $ | 127,713,018 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
||||||||
Interest paid |
$ | 420,000 | $ | 420,000 | ||||
Income tax paid |
$ | 7,330,375 | $ | 2,994,232 | ||||
INVESTING ACTIVITIES AFFECTING BOTH CASH AND NON-CASH ITEMS | ||||||||
Acquisition of property, plant and equipment |
$ | 44,357,416 | $ | 40,263,600 | ||||
Increase in payables to contractors and equipment suppliers |
(5,846,075 | ) | (8,092,827 | ) | ||||
Cash paid |
$ | 38,511,341 | $ | 32,170,773 | ||||
NON-CASH FINANCING ACTIVITIES |
||||||||
Current portion of bonds payable |
$ | 4,500,000 | $ | 2,500,000 | ||||
Current portion of other long-term payables (under accrued expenses
and other current liabilities) |
$ | 2,433,227 | $ | 940,123 | ||||
The accompanying notes are an integral part of the financial statements. |
(Concluded) |
Recognized as | ||||||||
Cumulative Effect of | ||||||||
Changes in Accounting | Recognized as a | |||||||
Principles | Separate Component of | |||||||
(Net of Tax) | Shareholders Equity | |||||||
Financial assets or liabilities at fair value through profit or loss |
$ | (246,186 | ) | $ | | |||
Available-for-sale financial assets |
| | ||||||
$ | (246,186 | ) | $ | | ||||
June 30 | |||||||||
2007 | 2006 | ||||||||
Cash and deposits in banks |
$ | 84,229,386 | $ | 67,694,314 | |||||
Repurchase agreements collaterized by government bonds |
58,429,635 | 59,351,764 | |||||||
Asset-backed commercial papers |
597,361 | | |||||||
Corporate notes |
| 666,940 | |||||||
$ | 143,256,382 | $ | 127,713,018 | ||||||
5. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
| |||||||||
June 30 | |||||||||
2007 | 2006 | ||||||||
Derivatives financial assets |
|||||||||
Forward exchange contracts |
$ | 15,335 | $ | | |||||
Cross currency swap contracts |
156,905 | 322,456 | |||||||
$ | 172,240 | $ | 322,456 | ||||||
Derivatives financial liabilities |
|||||||||
Forward exchange contracts |
$ | 3,460 | $ | 8,265 | |||||
Cross currency swap contracts |
| 591,644 | |||||||
$ | 3,460 | $ | 599,909 | ||||||
Contract | ||||||||
Amount | ||||||||
Maturity Date | (in Thousands) | |||||||
June 30, 2007 |
||||||||
Sell EUR/buy NT$ |
July 2007 to July 2008 | EUR 50,700 | ||||||
June 30, 2006 |
||||||||
Sell US$/buy NT$ |
July 2006 | US$ 10,000 | ||||||
Sell EUR/buy US$ |
July 2006 | EUR 10,000 |
Range of | ||||||||||||
Contract Amount | Range of | Interest Rates | ||||||||||
Maturity Date | (in Thousands) | Interest Rates Paid | Received | |||||||||
June 30, 2007 |
||||||||||||
July 2007 to August 2007 |
US$ | 765,000 | 2.36%-5.43 | % | 1.70%-4.21 | % | ||||||
June 30, 2006 |
||||||||||||
July 2006 to September 2006 |
US$ | 2,266,000 | 2.40%-5.57 | % | 0.60%-2.78 | % |
June 30 | ||||||||
2007 | 2006 | |||||||
Open-end mutual funds |
$ | 10,971,467 | $ | 22,157,124 | ||||
Corporate bonds |
4,176,057 | 14,297,001 | ||||||
Government bonds |
4,133,533 | 4,831,843 | ||||||
Structured time deposits |
497,381 | 498,190 | ||||||
Agency bonds |
| 13,787,394 | ||||||
Corporate issued asset-backed securities |
| 10,921,185 | ||||||
Money market funds |
| 385,937 | ||||||
Corporate notes |
| 97,683 | ||||||
19,778,438 | 66,976,357 | |||||||
Current portion |
(15,259,717 | ) | (62,102,387 | ) | ||||
$ | 4,518,721 | $ | 4,873,970 | |||||
Principal | ||||||||||||||||
Amount | Carrying Amount | Interest Rate | Maturity Date | |||||||||||||
June 30, 2007 |
||||||||||||||||
Step-up callable deposits |
||||||||||||||||
Domestic deposits |
$ | 500,000 | $ | 497,381 | 1.76 | % | March 2008 | |||||||||
June 30, 2006 |
||||||||||||||||
Step-up callable deposits |
||||||||||||||||
Domestic deposits |
$ | 500,000 | $ | 498,190 | 1.76 | % | March 2008 | |||||||||
June 30 | ||||||||
2007 | 2006 | |||||||
Corporate bonds |
$ | 11,968,229 | $ | 12,895,132 | ||||
Structured time deposits |
10,047,000 | 11,127,780 | ||||||
Government bonds |
8,682,408 | 5,239,892 | ||||||
30,697,637 | 29,262,804 | |||||||
Current portion |
(9,909,497 | ) | (5,738,737 | ) | ||||
$ | 20,788,140 | $ | 23,524,067 | |||||
Principal | Range of | |||||||||||||||
Amount | Interest Receivable | Interest Rates | Maturity Date | |||||||||||||
June 30, 2007 |
||||||||||||||||
Step-up callable deposits |
||||||||||||||||
Domestic deposits |
$ | 3,500,000 | $ | 13,267 | 1.69%-1.83 | % | October 2007 to October 2008 | |||||||||
Callable range accrual deposits |
||||||||||||||||
Domestic deposits |
3,928,200 | 4,556 | (See below) | September 2009 to December 2009 | ||||||||||||
Foreign deposits |
2,618,800 | 4,828 | (See below) | October 2009 to December 2009 | ||||||||||||
$ | 10,047,000 | $ | 22,651 | |||||||||||||
June 30, 2006 |
||||||||||||||||
Step-up callable deposits |
||||||||||||||||
Domestic deposits |
$ | 4,000,000 | $ | 27,016 | 1.40%-2.01 | % | June 2007 to March 2009 | |||||||||
Callable range accrual deposits |
||||||||||||||||
Domestic deposits |
3,887,880 | 4,725 | (See below) | September 2009 to December 2009 | ||||||||||||
Foreign deposits |
3,239,900 | 4,914 | (See below) | October 2009 to January 2010 | ||||||||||||
$ | 11,127,780 | $ | 36,655 | |||||||||||||
June 30 | ||||||||
2007 | 2006 | |||||||
Finished goods |
$ | 4,545,835 | $ | 4,163,346 | ||||
Work in process |
16,447,979 | 13,243,014 | ||||||
Raw materials |
1,137,465 | 1,236,095 | ||||||
Supplies and spare parts |
421,597 | 537,546 | ||||||
22,552,876 | 19,180,001 | |||||||
Allowance for losses |
(874,918 | ) | (804,421 | ) | ||||
$ | 21,677,958 | $ | 18,375,580 | |||||
June 30 | ||||||||||||||||
2007 | 2006 | |||||||||||||||
% of | % of | |||||||||||||||
Carrying | Owner- | Carrying | Owner- | |||||||||||||
Amount | ship | Amount | ship | |||||||||||||
TSMC Global (Note 6) |
$ | 43,613,633 | 100 | $ | | | ||||||||||
TSMC International Investment Ltd. (TSMC
International) |
27,053,657 | 100 | 25,984,419 | 100 | ||||||||||||
TSMC (Shanghai) Company Limited (TSMC-Shanghai) |
8,799,540 | 100 | 9,093,788 | 100 | ||||||||||||
Systems on Silicon Manufacturing Company Pte Ltd.
(SSMC) |
8,289,538 | 39 | 5,094,733 | 32 | ||||||||||||
Vanguard International Semiconductor Corporation
(VIS) |
5,637,861 | 27 | 5,087,101 | 27 | ||||||||||||
TSMC Partners, Ltd. (TSMC Partners) |
4,567,193 | 100 | 4,225,071 | 100 | ||||||||||||
TSMC North America (TSMC-North America) |
2,207,039 | 100 | 1,790,365 | 100 | ||||||||||||
Xintec Inc. (Xintec) |
1,366,816 | 43 | | | ||||||||||||
VentureTech Alliance Fund II, L.P. (VTAF II) |
858,453 | 98 | 707,835 | 98 | ||||||||||||
VentureTech Alliance Fund III, L.P. (VTAF III) |
756,146 | 98 | 145,055 | 98 | ||||||||||||
Emerging Alliance Fund, L.P. (Emerging Alliance) |
717,200 | 99 | 1,050,087 | 99 | ||||||||||||
Global UniChip Corporation (GUC) |
694,111 | 38 | 447,762 | 45 | ||||||||||||
Chi Cherng Investment Co., Ltd. (Chi Cherng) |
168,359 | 36 | 113,574 | 36 | ||||||||||||
Hsin Ruey Investment Co., Ltd. (Hsin Ruey) |
166,857 | 36 | 113,246 | 36 | ||||||||||||
TSMC Japan Limited (TSMC-Japan) |
94,250 | 100 | 96,536 | 100 | ||||||||||||
Taiwan Semiconductor Manufacturing Company
Europe B.V. (TSMC-Europe) |
65,109 | 100 | 36,909 | 100 | ||||||||||||
TSMC Korea Limited (TSMC-Korea) |
15,514 | 100 | 13,752 | 100 | ||||||||||||
$ | 105,071,276 | $ | 54,000,233 | |||||||||||||
June 30 | ||||||||
2007 | 2006 | |||||||
Non-publicly traded stocks |
$ | 364,913 | $ | 472,500 | ||||
Funds |
382,305 | 346,469 | ||||||
$ | 747,218 | $ | 818,969 | |||||
11. PROPERTY, PLANT AND EQUIPMENT
| ||||||||
Accumulated depreciation consisted of the following:
| ||||||||
June 30 | ||||||||
2007 | 2006 | |||||||
Buildings |
$ | 53,445,978 | $ | 46,538,174 | ||||
Machinery and equipment |
392,217,826 | 335,618,032 | ||||||
Office equipment |
6,820,094 | 6,072,555 | ||||||
$ | 452,483,898 | $ | 388,228,761 | |||||
No interest was capitalized during the six months ended June 30, 2007 and 2006.
| ||||||||
12. DEFERRED CHARGES, NET
| ||||||||
June 30 | ||||||||
2007 | 2006 | |||||||
Technology license fees |
$ | 3,723,447 | $ | 4,708,484 | ||||
Software and system design costs |
1,155,163 | 1,401,428 | ||||||
Others |
300,805 | 54,080 | ||||||
$ | 5,179,415 | $ | 6,163,992 | |||||
June 30 | ||||||||
2007 | 2006 | |||||||
Domestic unsecured bonds: |
||||||||
Issued in December 2000 and repayable in December 2007, 5.36%
interest payable annually |
$ | 4,500,000 | $ | 4,500,000 | ||||
Issued in January 2002 and repayable in January 2007, 2009 and
2012 in three installments, 2.60%, 2.75% and 3.00% interest payable
annually, respectively |
12,500,000 | 15,000,000 | ||||||
17,000,000 | 19,500,000 | |||||||
Current portion |
(4,500,000 | ) | (2,500,000 | ) | ||||
$ | 12,500,000 | $ | 17,000,000 | |||||
Year of Repayment | Amount | |||
2007 (4th quarter) |
$ | 4,500,000 | ||
2009 |
8,000,000 | |||
2012 |
4,500,000 | |||
$ | 17,000,000 | |||
Year of Payment | Amount | |||
2007 (3rd and 4th quarter) |
$ | 2,094,747 | ||
2008 |
743,575 | |||
2009 |
338,480 | |||
2010 |
338,480 | |||
2011 |
261,880 | |||
3,777,162 | ||||
Current portion (classified under accrued expenses and other current liabilities) |
(2,433,227 | ) | ||
$ | 1,343,935 | |||
Six Months Ended June 30 | ||||||||
2007 | 2006 | |||||||
The Fund
|
||||||||
Balance, beginning of period |
$ | 1,913,002 | $ | 1,658,864 | ||||
Contributions |
111,502 | 131,250 | ||||||
Interest |
46,279 | 34,384 | ||||||
Payments |
| (4,677 | ) | |||||
Balance, end of period |
$ | 2,070,783 | $ | 1,819,821 | ||||
Accrued pension cost |
||||||||
Balance, beginning of period |
$ | 3,530,116 | $ | 3,461,392 | ||||
Accruals |
53,426 | 22,958 | ||||||
Balance, end of period |
$ | 3,583,542 | $ | 3,484,350 | ||||
a. | A reconciliation of income tax expense based on income before income tax at statutory rate and income tax currently payable was as follows: |
Six Months Ended June 30 | ||||||||
2007 | 2006 | |||||||
Income tax expense based on income before income tax at
statutory rate (25%) |
$ | 11,925,847 | $ | 17,726,514 | ||||
Tax effect of the following: |
||||||||
Tax-exempt income |
(2,770,225 | ) | (6,411,975 | ) | ||||
Temporary and permanent differences |
(320,582 | ) | (721,070 | ) | ||||
Additional tax at 10% on unappropriated earnings |
2,686,561 | 1,156,130 | ||||||
Cumulative effect of changes in accounting principles |
| (82,062 | ) | |||||
Investment tax credits used |
(7,260,151 | ) | (7,462,975 | ) | ||||
Income tax currently payable |
$ | 4,261,450 | $ | 4,204,562 | ||||
Six Months Ended June 30 | ||||||||
2007 | 2006 | |||||||
Income tax currently payable |
$ | 4,261,450 | $ | 4,204,562 | ||||
Other income tax adjustments |
(361,957 | ) | (447,043 | ) | ||||
Net change in deferred income tax assets |
||||||||
Investment tax credits |
3,082,172 | 2,756,331 | ||||||
Temporary differences |
(760,228 | ) | (1,423,579 | ) | ||||
Valuation allowance |
(2,840,629 | ) | (1,039,030 | ) | ||||
Income tax expense |
$ | 3,380,808 | $ | 4,051,241 | ||||
c. | Net deferred income tax assets consisted of the following: |
June 30 | ||||||||
2007 | 2006 | |||||||
Current deferred income tax assets
|
||||||||
Investment tax credits |
$ | 5,622,000 | $ | 6,084,277 | ||||
Noncurrent deferred income tax assets
|
||||||||
Investment tax credits |
$ | 11,252,720 | $ | 15,025,163 | ||||
Temporary differences |
1,600,692 | 741,309 | ||||||
Valuation allowance |
(4,363,600 | ) | (8,371,516 | ) | ||||
$ | 8,489,812 | $ | 7,394,956 | |||||
d. | Integrated income tax information: |
e. | All earnings generated prior to December 31, 1997 have been appropriated. | ||
f. | As of June 30, 2007, investment tax credits consisted of the following: |
Total | Remaining | |||||||||||||||
Creditable | Creditable | Expiry | ||||||||||||||
Law/Statute | Item | Amount | Amount | Year | ||||||||||||
Statute for
Upgrading Industries |
Purchase of machinery and equipment | $ | 238,012 | $ | | 2007 | ||||||||||
3,177,526 | | 2008 | ||||||||||||||
6,029,482 | 5,114,037 | 2009 | ||||||||||||||
6,424,473 | 6,424,473 | 2010 | ||||||||||||||
832,574 | 832,574 | 2011 | ||||||||||||||
$ | 16,702,067 | $ | 12,371,084 | |||||||||||||
Total | Remaining | |||||||||||||||
Creditable | Creditable | Expiry | ||||||||||||||
Law/Statute | Item | Amount | Amount | Year | ||||||||||||
Statute for Upgrading Industries | Research and development expenditures | $ | 1,245,142 | $ | | 2007 | ||||||||||
1,627,095 | | 2008 | ||||||||||||||
1,534,230 | 1,534,230 | 2009 | ||||||||||||||
1,944,546 | 1,944,546 | 2010 | ||||||||||||||
869,050 | 869,050 | 2011 | ||||||||||||||
$ | 7,220,063 | $ | 4,347,826 | |||||||||||||
Statute for Upgrading Industries | Personnel training expenditures | $ | 16,197 | $ | | 2007 | ||||||||||
40,734 | | 2008 | ||||||||||||||
40,442 | 40,442 | 2009 | ||||||||||||||
35,564 | 35,564 | 2010 | ||||||||||||||
$ | 132,937 | $ | 76,006 | |||||||||||||
Statute for Upgrading Industries | Investments in important technology-based enterprises | $ | 79,804 | $ | 79,804 | 2010 | ||||||||||
g. | The profits generated from the following projects are exempt from income tax for a four-year or five-year period: |
Tax-Exemption Period | ||||
Construction of Fab 12 Module A |
2004 to 2007 | |||
Construction of Fab 14 Module A |
2006 to 2010 |
h. | The tax authorities have examined income tax returns of the Company through 2004. |
Six Months Ended June 30, 2007 | ||||||||||||
Classified as | ||||||||||||
Classified as | Operating | |||||||||||
Cost of Sales | Expenses | Total | ||||||||||
Labor cost |
||||||||||||
Salary |
$ | 4,405,268 | $ | 2,160,377 | $ | 6,565,645 | ||||||
Labor and health insurance |
277,788 | 150,831 | 428,619 | |||||||||
Pension |
298,525 | 162,577 | 461,102 | |||||||||
Meal |
213,703 | 80,294 | 293,997 | |||||||||
Welfare |
109,186 | 66,138 | 175,324 | |||||||||
Others |
62,796 | 3,017 | 65,813 | |||||||||
$ | 5,367,266 | $ | 2,623,234 | $ | 7,990,500 | |||||||
Depreciation |
$ | 33,044,630 | $ | 1,919,406 | $ | 34,964,036 | ||||||
Amortization |
$ | 905,291 | $ | 403,390 | $ | 1,308,681 | ||||||
Six Months Ended June 30, 2006 | ||||||||||||
Classified as | ||||||||||||
Classified as | Operating | |||||||||||
Cost of Sales | Expenses | Total | ||||||||||
Labor cost |
||||||||||||
Salary |
$ | 5,183,360 | $ | 2,144,658 | $ | 7,328,018 | ||||||
Labor and health insurance |
340,274 | 167,998 | 508,272 | |||||||||
Pension |
309,451 | 152,942 | 462,393 | |||||||||
Meal |
225,304 | 76,220 | 301,524 | |||||||||
Welfare |
94,186 | 48,784 | 142,970 | |||||||||
Others |
103,858 | 12,901 | 116,759 | |||||||||
$ | 6,256,433 | $ | 2,603,503 | $ | 8,859,936 | |||||||
Depreciation |
$ | 29,319,569 | $ | 1,617,095 | $ | 30,936,664 | ||||||
Amortization |
$ | 722,358 | $ | 479,323 | $ | 1,201,681 | ||||||
June 30 | ||||||||
2007 | 2006 | |||||||
From merger |
$ | 24,003,546 | $ | 24,003,546 | ||||
Additional paid-in capital |
19,422,365 | 19,788,594 | ||||||
From convertible bonds |
9,360,424 | 9,360,424 | ||||||
From treasury stock transactions |
490,950 | 389,188 | ||||||
From long-term investments |
448,264 | 280,679 | ||||||
Donations |
55 | 55 | ||||||
$ | 53,725,604 | $ | 53,822,486 | |||||
a. | Legal capital reserve at 10% of the profits left over, until the accumulated legal capital reserve has equaled the Companys paid-in capital; | ||
b. | Special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge; |
c. | Bonus to directors and bonus to employees of the Company of not more than 0.3% and not less than 1% of the remainder, respectively. Directors who also serve as executive officers of the Company are not entitled to receive the bonus to directors. The Company may issue stock bonuses to employees of an affiliated company meeting the conditions set by the Board of Directors or, by the person duly authorized by the Board of Directors; | ||
d. | Any balance left over shall be allocated according to the resolution of the shareholders meeting. |
Dividends Per Share | ||||||||||||||||
Appropriation of Earnings | (NT$) | |||||||||||||||
For Fiscal | For Fiscal | For Fiscal | For Fiscal | |||||||||||||
Year 2006 | Year 2005 | Year 2006 | Year 2005 | |||||||||||||
Legal capital reserve |
$ | 12,700,973 | $ | 9,357,503 | ||||||||||||
Special capital reserve |
(11,192 | ) | (1,585,685 | ) | ||||||||||||
Bonus to employees in cash |
4,572,798 | 3,432,129 | ||||||||||||||
Bonus to employees in stock |
4,572,798 | 3,432,129 | ||||||||||||||
Cash dividends to shareholders |
77,489,064 | 61,825,061 | $ | 3.00 | $ | 2.50 | ||||||||||
Stock dividends to shareholders |
516,594 | 3,709,504 | 0.02 | 0.15 | ||||||||||||
Bonus to directors and supervisors |
285,800 | 257,410 | ||||||||||||||
$ | 100,126,835 | $ | 80,428,051 | |||||||||||||
Weighted- | ||||||||
average | ||||||||
Number of | Exercise | |||||||
Options | Price | |||||||
(in Thousands) | (NT$) | |||||||
Six months ended June 30, 2007 |
||||||||
Balance, beginning of period |
52,814 | $ | 37.9 | |||||
Options granted |
1,094 | 37.9 | ||||||
Options exercised |
(7,401 | ) | 40.1 | |||||
Options canceled |
(598 | ) | 45.2 | |||||
Balance, end of period |
45,909 | 37.6 | ||||||
Six months ended June 30, 2006 |
||||||||
Balance, beginning of period |
67,758 | 39.4 | ||||||
Options granted |
2,517 | 39.7 | ||||||
Options exercised |
(8,219 | ) | 39.7 | |||||
Options canceled |
(2,304 | ) | 44.5 | |||||
Balance, end of period |
59,752 | 39.6 | ||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||
average | average | average | ||||||||||||||||||
Number of | Remaining | Exercise | Number of | Exercise | ||||||||||||||||
Options (in | Contractual | Price | Options (in | Price | ||||||||||||||||
Range of Exercise Price (NT$) | Thousands) | Life (Years) | (NT$) | Thousands) | (NT$) | |||||||||||||||
$25.9-$36.4 |
30,754 | 3.66 | $ | 33.2 | 30,754 | $ | 33.2 | |||||||||||||
$38.9-$51.3 |
15,155 | 5.41 | 46.6 | 9,264 | 46.3 | |||||||||||||||
45,909 | 37.6 | 40,018 | 36.2 | |||||||||||||||||
Six Months Ended June 30 | ||||||||
2007 | 2006 | |||||||
Assumptions: |
||||||||
Expected dividend yield |
1.00%-3.44 | % | 1.00%-3.44 | % | ||||
Expected volatility |
43.77%-46.15 | % | 43.77%-46.15 | % | ||||
Risk free interest rate |
3.07%-3.85 | % | 3.07%-3.85 | % | ||||
Expected life |
5 years | 5 years | ||||||
Net income: |
||||||||
Net income as reported |
$ | 44,322,581 | $ | 66,608,628 | ||||
Pro forma net income |
44,287,092 | 66,552,140 | ||||||
Earnings per share (EPS) after income tax (NT$): |
||||||||
Basic EPS as reported |
$ | 1.68 | $ | 2.53 | ||||
Pro forma basic EPS |
1.68 | 2.52 | ||||||
Diluted EPS as reported |
1.68 | 2.52 | ||||||
Pro forma diluted EPS |
1.68 | 2.52 |
Beginning | Stock | Ending | ||||||||||||||
Shares | Dividend | Disposal | Shares | |||||||||||||
Six months ended June 30, 2007 |
||||||||||||||||
Parent company stock held by subsidiaries |
33,926 | 170 | | 34,096 | ||||||||||||
Six months ended June 30, 2006 |
||||||||||||||||
Parent company stock held by subsidiaries |
32,938 | 988 | | 33,926 | ||||||||||||
Six Months Ended June 30 | ||||||||||||||||
2007 | 2006 | |||||||||||||||
Before | After | Before | After | |||||||||||||
Income Tax | Income Tax | Income Tax | Income Tax | |||||||||||||
Basic EPS (NT$) |
||||||||||||||||
Income before cumulative effect of changes in accounting
principles |
$ | 1.81 | $ | 1.68 | $ | 2.69 | $ | 2.54 | ||||||||
Cumulative effect of changes in accounting principles |
| | (0.01 | ) | (0.01 | ) | ||||||||||
Income for the period |
$ | 1.81 | $ | 1.68 | $ | 2.68 | $ | 2.53 | ||||||||
Diluted EPS (NT$) |
||||||||||||||||
Income before cumulative effect of change in accounting
principles |
$ | 1.81 | $ | 1.68 | $ | 2.68 | $ | 2.53 | ||||||||
Cumulative effect of changes in accounting principles |
| | (0.01 | ) | (0.01 | ) | ||||||||||
Income for the period |
$ | 1.81 | $ | 1.68 | $ | 2.67 | $ | 2.52 | ||||||||
Number of | EPS (NT$) | |||||||||||||||||||
Amounts (Numerator) | Shares | Before | After | |||||||||||||||||
Before | After | (Denominator) | Income | Income | ||||||||||||||||
Income Tax | Income Tax | (in Thousands) | Tax | Tax | ||||||||||||||||
Six months ended June 30, 2007 |
||||||||||||||||||||
Basic EPS |
||||||||||||||||||||
Income available to shareholders |
$ | 47,703,389 | $ | 44,322,581 | 26,385,050 | $ | 1.81 | $ | 1.68 | |||||||||||
Effect of dilutive potential common stock stock
options |
| | 23,482 | |||||||||||||||||
Diluted EPS |
||||||||||||||||||||
Income available to shareholders (including effect of
dilutive potential common stock) |
$ | 47,703,389 | $ | 44,322,581 | 26,408,532 | $ | 1.81 | $ | 1.68 | |||||||||||
Six months ended June 30, 2006 |
||||||||||||||||||||
Basic EPS |
||||||||||||||||||||
Income available to shareholders |
$ | 70,577,807 | $ | 66,608,628 | 26,371,073 | $ | 2.68 | $ | 2.53 | |||||||||||
Effect of dilutive potential common stock stock
options |
| | 22,850 | |||||||||||||||||
Diluted EPS |
||||||||||||||||||||
Income available to shareholders (including effect of
dilutive potential common stock) |
$ | 70,577,807 | $ | 66,608,628 | 26,393,923 | $ | 2.67 | $ | 2.52 | |||||||||||
a. | Fair values of financial instruments were as follows: |
June 30 | ||||||||||||||||
2007 | 2006 | |||||||||||||||
Carrying | Carrying | |||||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
Assets |
||||||||||||||||
Financial assets at fair value through
profit or loss |
$ | 172,240 | $ | 172,240 | $ | 322,456 | $ | 322,456 | ||||||||
Available-for-sale financial assets |
19,778,438 | 19,778,438 | 66,976,357 | 66,976,357 | ||||||||||||
Held-to-maturity financial assets |
30,697,637 | 30,616,918 | 29,262,804 | 28,857,510 | ||||||||||||
Investments accounted for using
equity method (with market
price) |
6,331,972 | 28,683,049 | 5,087,101 | 9,567,918 | ||||||||||||
Liabilities |
||||||||||||||||
Financial liabilities at fair value
through profit or loss |
3,460 | 3,460 | 599,909 | 599,909 | ||||||||||||
Bonds payable (including current
portion) |
17,000,000 | 17,241,349 | 19,500,000 | 19,888,147 | ||||||||||||
Other long-term payable (including
current portion) |
3,777,162 | 3,777,162 | 3,484,092 | 3,484,092 |
b. | Methods and assumptions used in the determination of fair values of financial instruments |
1) | The aforementioned financial instruments do not include cash and cash equivalents, receivables, other financial assets, payables, and payables to contractors and equipment suppliers. The carrying amounts of these financial instruments approximate their fair values due to their short maturities. | ||
2) | Fair values of financial assets/liabilities at fair value through profit or loss were determined using valuation techniques incorporating estimates and assumptions that were consistent with prevailing market conditions. | ||
3) | Fair values of available-for-sale and held-to-maturity financial assets were based on their quoted market prices; while fair values of structured time deposits were estimated using valuation techniques. | ||
4) | Fair value of bonds payable was based on their quoted market price. | ||
5) | Fair value of other long-term payables was based on the present value of expected cash flows, which approximates their carrying amount. |
c. | Gains and losses recognized for the changes in fair value of derivatives estimated using valuation techniques were NT$134,930 thousand NT$277,453 thousand for the six months ended June 30, 2007 and 2006, respectively. | ||
d. | As of June 30, 2007 and 2006, financial assets exposed to fair value interest rate risk were NT$50,648,315 thousand and NT$96,561,617 thousand, respectively; financial liabilities exposed to fair value interest rate risk were NT$3,460 thousand and NT$599,909 thousand, respectively, and financial assets exposed to cash flow interest rate risk were NT$6,547,000 thousand and NT$7,127,780 thousand, respectively. |
e. | The Company recognized an unrealized gain of NT$150,562 thousand and an unrealized loss of NT$190,353 thousand directly in shareholders equity for the changes in fair value of available-for-sale financial assets for the six months ended June 30, 2007 and 2006, respectively; the Company recognized gains of NT$233,970 thousand and NT$1,116 thousand which was removed from shareholders equity and recognized in earnings for the six months ended June 30, 2007 and 2006, respectively. The Company also recognized unrealized losses of NT$30,727 thousand and unrealized gains of NT$308,023 thousand in shareholders equity for the changes in fair value of available-for-sale financial assets held by equity method investees for the six months ended June 30, 2007 and 2006, respectively. | ||
f. | Information about financial risks |
1) | Market risk. The derivative financial instruments categorized as financial assets/liabilities at fair value through profit or loss are mainly used to hedge the exchange rate fluctuations of foreign-currency assets and liabilities; therefore, the market risk of derivatives will be offset by the foreign exchange risk of these hedged items. Available-for-sale financial assets held by the Company are mainly fixed-interest-rate debt securities; therefore, the fluctuations in market interest rates will result in changes in fair values of these debt securities. | ||
2) | Credit risk. Credit risk represents the potential loss that would be incurred by the Company if the counter-parties or third-parties breached contracts. Financial instruments with positive fair values at the balance sheet date are evaluated for credit risk. The counter-parties or third-parties to the foregoing financial instruments are reputable financial institutions, business organizations and government agencies. Management believes that the Companys exposure to default by those parties is low. | ||
3) | Liquidity risk. The Company has sufficient operating capital to meet cash needs upon settlement of derivative financial instruments and bonds payable. Therefore, the liquidity risk is low. | ||
4) | Cash flow interest rate risk. The Company mainly invests in fixed-interest-rate debt securities. Therefore, cash flows are not expected to fluctuate significantly due to changes in market interest rates. |
The Company engages in business transactions with the following related parties: |
a. | Philips, a major shareholder of the Company. | ||
b. | Subsidiaries | ||
TSMC-North America TSMC-Shanghai TSMC-Europe TSMC-Japan |
|||
c. | Investees | ||
GUC (with a controlling financial interest) VIS (accounted for using equity method) SSMC (accounted for using equity method) |
d. | Indirect subsidiaries | ||
WaferTech, LLC (WaferTech) TSMC Technology, Inc. (TSMC Technology) |
|||
e. | Indirect investee | ||
VisEra (accounted for using equity method) | |||
f. | Others | ||
Related parties over which the Company has control or exercises significant influence but with which the Company had no material transactions. |
2007 | 2006 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
For the six months ended June 30 |
||||||||||||||||
Sales |
||||||||||||||||
TSMC-North America |
$ | 83,546,469 | 60 | $ | 94,075,632 | 58 | ||||||||||
Philips |
| | 2,318,898 | 2 | ||||||||||||
Others |
465,685 | 1 | 406,336 | | ||||||||||||
$ | 84,012,154 | 61 | $ | 96,800,866 | 60 | |||||||||||
Purchases |
||||||||||||||||
WaferTech |
$ | 4,804,106 | 21 | $ | 6,505,148 | 28 | ||||||||||
SSMC |
2,765,116 | 12 | 3,718,466 | 16 | ||||||||||||
TSMC-Shanghai |
2,485,579 | 11 | 1,918,584 | 8 | ||||||||||||
VIS |
1,681,324 | 8 | 1,712,082 | 7 | ||||||||||||
Others |
732 | | | | ||||||||||||
$ | 11,736,857 | 52 | $ | 13,854,280 | 59 | |||||||||||
Manufacturing expenses |
||||||||||||||||
VisEra |
$ | 20,500 | | $ | | | ||||||||||
Philips (technical assistance fees, see Note 25a) |
| | 377,952 | 1 | ||||||||||||
$ | 20,500 | | $ | 377,952 | 1 | |||||||||||
Marketing expenses commission |
||||||||||||||||
TSMC-Europe |
$ | 146,354 | 21 | $ | 116,934 | 11 | ||||||||||
TSMC-Japan |
115,663 | 16 | 125,553 | 12 | ||||||||||||
Others |
11,146 | 2 | 1,118 | | ||||||||||||
$ | 273,163 | 39 | $ | 243,605 | 23 | |||||||||||
2007 | 2006 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
General and administrative expenses rental |
||||||||||||||||
GUC |
$ | 3,473 | | $ | 7,659 | | ||||||||||
Research and development expenses |
||||||||||||||||
TSMC Technology |
$ | 145,596 | 2 | $ | | | ||||||||||
Others |
59,381 | 1 | 19,582 | | ||||||||||||
$ | 204,977 | 3 | $ | 19,582 | | |||||||||||
Sales of property, plant and equipment |
||||||||||||||||
TSMC-Shanghai |
$ | 2,378 | 33 | $ | 173,299 | 42 | ||||||||||
Non-operating income and gains |
||||||||||||||||
VisEra |
$ | 177,414 | 4 | $ | 140,079 | 2 | ||||||||||
VIS
(primarily technical service income, see Note 25h) |
173,765 | 3 | 105,937 | 2 | ||||||||||||
TSMC-Shanghai |
168,625 | 3 | 123,891 | 2 | ||||||||||||
SSMC (primarily technical service income, see
Note 25e) |
116,257 | 2 | 147,219 | 2 | ||||||||||||
$ | 636,061 | 12 | $ | 517,126 | 8 | |||||||||||
As of June 30 |
||||||||||||||||
Receivables |
||||||||||||||||
TSMC-North America |
$ | 20,642,259 | 100 | $ | 22,374,338 | 98 | ||||||||||
Philips |
| | 382,251 | 2 | ||||||||||||
Others |
32,908 | | 153,300 | | ||||||||||||
$ | 20,675,167 | 100 | $ | 22,909,889 | 100 | |||||||||||
Other receivables |
||||||||||||||||
VIS |
$ | 809,153 | 63 | $ | 688,807 | 42 | ||||||||||
VisEra |
147,186 | 11 | 17,376 | 1 | ||||||||||||
SSMC |
97,977 | 8 | 92,700 | 6 | ||||||||||||
TSMC-North America |
88,131 | 7 | 205,327 | 12 | ||||||||||||
TSMC-Shanghai |
60,263 | 5 | 167,585 | 10 | ||||||||||||
TSMC Technology |
| | 485,449 | 29 | ||||||||||||
Others |
77,709 | 6 | 2,238 | | ||||||||||||
$ | 1,280,419 | 100 | $ | 1,659,482 | 100 | |||||||||||
Payables |
||||||||||||||||
WaferTech |
$ | 804,285 | 26 | $ | 1,155,023 | 35 | ||||||||||
VIS |
780,221 | 25 | 943,129 | 29 | ||||||||||||
SSMC |
728,808 | 23 | 662,385 | 20 | ||||||||||||
TSMC-Shanghai |
611,054 | 20 | 401,379 | 12 | ||||||||||||
Others |
184,255 | 6 | 119,507 | 4 | ||||||||||||
$ | 3,108,623 | 100 | $ | 3,281,423 | 100 | |||||||||||
2007 | 2006 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Other long-term payables |
||||||||||||||||
Philips (Note 25a) |
$ | | | $ | 1,085,366 | 100 | ||||||||||
Deferred credits |
||||||||||||||||
TSMC-Shanghai |
$ | 617,113 | 62 | $ | 635,124 | 54 | ||||||||||
VisEra |
93,262 | 9 | 155,437 | 13 | ||||||||||||
$ | 710,375 | 71 | $ | 790,561 | 67 | |||||||||||
Year | Amount | |||
2007 (3rd and 4th quarter) |
$ | 170,581 | ||
2008 |
301,926 | |||
2009 |
292,960 | |||
2010 |
243,762 | |||
2011 |
242,180 | |||
2012 and thereafter |
1,820,594 | |||
$ | 3,072,003 | |||
a. | On June 20, 2004, the Company and Philips (Philips parted with its semiconductor company which was renamed as NXP B.V. in September 2006) amended the Technical Cooperation Agreement, which was originally signed on May 12, 1997. The amended Technical Cooperation Agreement is for five years beginning from January 1, 2004. Upon expiration, this amended Technical Cooperation Agreement will be terminated and will not be automatically renewed; however, the patent cross license arrangement between the Company and Philips (now NXP B.V.) will survive the expiration of the amended Technical Cooperation Agreement. Under this amended Technical Cooperation Agreement, the Company will pay Philips (now NXP B.V.) royalties based on a fixed amount mutually agreed-on, |
rather than under a certain percentage of the Companys annual net sales. The Company and Philips (now NXP B.V.) agreed to cross license the patents owned by each party. The Company also obtained through Philips (now NXP B.V.) a number of cross patent licenses. | |||
b. | Under a technical cooperation agreement with ITRI, the R.O.C. Government or its designee approved by TSMC can use up to 35% of TSMCs capacity if TSMCs outstanding commitments to its customers are not prejudiced. The term of this agreement is for five years beginning from January 1, 1987 and is automatically renewed for successive periods of five years unless otherwise terminated by either party with one year prior notice. The agreement was automatically renewed in 1992, 1997, 2002 and on January 1, 2007. | ||
c. | Under several foundry agreements, the Company shall reserve a portion of its production capacity for certain major customers that have guarantee deposits with the Company. As of June 30, 2007, the Company had a total of US$90,985 thousand of guarantee deposits. | ||
d. | Under a Shareholders Agreement entered into with Philips and EDB Investments Pte Ltd. on March 30, 1999, the parties formed a joint venture company, SSMC, which is an integrated circuit foundry in Singapore. The Companys equity interest in SSMC was 32%. Nevertheless, Philips parted with its semiconductor company which was renamed as NXP B.V. in September 2006. The Company and NXP B.V. purchased all the SSMC shares owned by EDB Investments Pte Ltd. pro rata according to the Shareholders Agreement on November 15, 2006. After the purchase, the Company and NXP B.V. currently own approximately 39% and 61% of the SSMC shares, respectively. The Company and Philips (now NXP B.V.) committed to buy specific percentages of the production capacity of SSMC. The Company and Philips (now NXP B.V.) are required, in the aggregate, to purchase up to 70% of SSMCs capacity, but the Company alone is not required to purchase more than 28% of the capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a specific percentage of its capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. | ||
e. | The Company provides technical services to SSMC under a Technical Cooperation Agreement (the Agreement) entered into on May 12, 1999. The Company receives compensation for such services computed at a specific percentage of net selling price of all products sold by SSMC. The Agreement shall remain in force for ten years and may be automatically renewed for successive periods of five years each unless pre-terminated by either party under certain conditions. | ||
f. | Under a Technology Transfer Agreement (TTA) with National Semiconductor Corporation (National) entered into on June 27, 2000, the Company shall receive payments for the licensing of certain technology to National. The agreement was to remain in force for ten years and could be automatically renewed for successive periods of two years thereafter unless either party gives written notice for early termination under certain conditions. In January 2003, the Company and National entered into a Termination Agreement whereby the TTA was terminated. Under the Termination Agreement, the Company will be relieved of any further obligation to transfer any additional technology. In addition, the Company granted National an option to request the transfer of certain technologies under the same terms and conditions as the terminated TTA. The option will expire in January 2008. | ||
g. | In December 2003, the Company entered into a Technology Development and License Agreement with Freescale Semiconductor, Inc. to jointly develop 65-nm SOI (silicon on insulator) technology. The Company will also license related 90-nm SOI technology from Freescale Semiconductor, Inc. Any intellectual properties arising out of the co-development project shall be jointly owned by the parties. In accordance with the agreement, the Company will pay royalties to Freescale Semiconductor, Inc. and will share a portion of the costs associated with the joint development project. |
h. | The Company provides a technology transfer to VIS under a Manufacturing License and Technology Transfer Agreement entered into on April 1, 2004. The Company receives compensation for such technology transfer in the form of royalty payments from VIS computed at specific percentages of net selling price of certain products sold by VIS. VIS agreed to reserve its certain capacity to manufacture for the Company certain products at prices as agreed by the parties. | ||
i. | TSMC, TSMC-North America and WaferTech filed a series of lawsuits in late 2003 and 2004 against Semiconductor Manufacturing International Corporation (SMIC), SMIC (Shanghai) and SMIC Americas. The lawsuits alleged that SMIC companies infringed multiple TSMC patents and misappropriated TSMCs trade secrets. These suits were settled out of court on January 30, 2005. As part of the settlement, SMIC shall pay TSMC US$175,000 thousand over six years to resolve TSMCs claims. As of June 30, 2007, SMIC had paid US$75,000 thousand in accordance with the terms of this settlement agreement. In August 2006, TSMC, TSMC-North America and Wafertech filed a lawsuit against SMIC in Alameda County Superior Court in California for breach of aforementioned settlement agreement, breach of promissory notes and trade secret misappropriation, seeking injunctive relief and monetary damages. In September 2006, SMIC filed a cross-complaint against TSMC in the same court, alleging TSMC of breach of the settlement agreement and implied covenant of good faith and fair dealing, in response to TSMCs August complaint. In November 2006, SMIC filed a complaint with Beijing Peoples High Court against TSMC, TSMC-North America, and Wafertech, alleging defamation and breach of good faith. The result of the above-mentioned litigation cannot be determined at this time. | ||
j. | Amounts available under unused letters of credit as of June 30, 2007 were NT$6,480 thousand. |
Following are the additional disclosures required by the SFB for the Company and its investees: | |||
a. | Financing provided: None; | ||
b. | Endorsement/guarantee provided: None; | ||
c. | Marketable securities held: Please see Table 1 attached; | ||
d. | Marketable securities acquired or disposed of at costs or prices of at least NT$100 million or 20% of the paid-in capital: Please see Table 2 attached; | ||
e. | Acquisition of individual real estate properties at costs of at least NT$100 million or 20% of the paid-in capital: Please see Table 3 attached; | ||
f. | Disposal of individual real estate properties at prices of at least NT$100 million or 20% of the paid-in capital: None; | ||
g. | Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Please see Table 4 attached; | ||
h. | Receivable from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 5 attached; | ||
i. | Names, locations, and related information of investees over which the Company exercises significant influence: Please see Table 6 attached; | ||
j. | Information about derivatives of investees in which the Company has a controlling interest: | ||
TSMC-Shanghai entered into forward exchange contracts during the six months ended June 30, 2007 to manage exposures due to foreign exchange rate fluctuations. |
Outstanding forward exchange contracts as of June 30, 2007: |
Contract | ||||||||||||
Amount | ||||||||||||
Maturity Date | (in Thousands) | |||||||||||
Sell RMB/buy EUR |
July 2007 | EUR | 189 |
Contract | ||||||||||||
Amount | ||||||||||||
Maturity Date | (in Thousands) | |||||||||||
Sell US$/buy NT$ |
July 2007 | US$ | 2,000 |
k. | Information on investment in Mainland China |
1) | The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, equity in the net gain or net loss, ending balance, amount received as dividends from the investee, and the limitation on investee: Please see Table 7 attached. | ||
2) | Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland China on financial reports: Please see Note 23. |
June 30, 2007 | ||||||||||||||||||||||
Market Value or Net | ||||||||||||||||||||||
Shares/Units | Carrying Value | Percentage of | Asset Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | (in Thousands) | (US$ in Thousands) | Ownership | (US$ in Thousands) | Note | ||||||||||||||
The Company | Government Bond |
|||||||||||||||||||||
2003 Government Bond Series B |
| Available-for-sale financial assets | | $ | 2,344,207 | N/A | $ | 2,344,207 | ||||||||||||||
2004 Government Bond Series B |
| | | 1,192,161 | N/A | 1,192,161 | ||||||||||||||||
2004 Government Bond Series G |
| | | 198,586 | N/A | 198,586 | ||||||||||||||||
2006 Government Bond Series D |
| | | 398,579 | N/A | 398,579 | ||||||||||||||||
2003 Government Bond Series F |
| Held-to-maturity financial assets | | 798,163 | N/A | 844,440 | ||||||||||||||||
2006 Government Bond Series D |
| | | 3,654,613 | N/A | 3,637,028 | ||||||||||||||||
2003 Government Bond Series B |
| | | 1,647,899 | N/A | 1,643,938 | ||||||||||||||||
2003 Government Bond Series H |
| | | 401,144 | N/A | 399,721 | ||||||||||||||||
2004 Kaohsiung Municipal Series A |
| | | 620,000 | N/A | 620,273 | ||||||||||||||||
2004 Kaohsiung Municipal Series B |
| | | 249,998 | N/A | 250,004 | ||||||||||||||||
2003 Asian Development Bank Govt. Bond |
| | | 845,464 | N/A | 875,103 | ||||||||||||||||
European Investment Bank Bonds |
| | | 376,047 | N/A | 400,000 | ||||||||||||||||
2003 European Bank for Reconstruction
and Development Govt. Bond Series A |
| | | 89,080 | N/A | 90,000 | ||||||||||||||||
Open-end mutual funds |
||||||||||||||||||||||
NITC Bond Fund |
| Available-for-sale financial assets | 12,239 | 2,028,897 | N/A | 2,028,897 | ||||||||||||||||
Fuh Hwa Bond |
| | 102,783 | 1,380,442 | N/A | 1,380,442 | ||||||||||||||||
Prudential Financial Bond Fund |
| | 83,306 | 1,226,681 | N/A | 1,226,681 | ||||||||||||||||
NITC Taiwan Bond |
| | 79,132 | 1,123,358 | N/A | 1,123,358 | ||||||||||||||||
ING Taiwan Income Fund |
| | 63,947 | 1,020,211 | N/A | 1,020,211 | ||||||||||||||||
Mega Diamond Bond Fund |
| | 70,262 | 814,510 | N/A | 814,510 | ||||||||||||||||
Taishin Lucky Fund |
| | 68,945 | 712,420 | N/A | 712,420 | ||||||||||||||||
Polaris De-Bao Fund |
| | 63,273 | 706,359 | N/A | 706,359 | ||||||||||||||||
Dresdner Bond DAM Fund |
| | 54,286 | 633,827 | N/A | 633,827 | ||||||||||||||||
HSBC Taiwan Money Management |
| | 34,093 | 510,018 | N/A | 510,018 | ||||||||||||||||
JF Taiwan Bond Fund |
| | 26,542 | 408,003 | N/A | 408,003 | ||||||||||||||||
INVESCO Bond Fund |
| | 27,176 | 406,741 | N/A | 406,741 | ||||||||||||||||
Corporate Bond |
||||||||||||||||||||||
Hua Nan Bank |
| Available-for-sale financial assets | | 1,559,462 | N/A | 1,559,462 | ||||||||||||||||
Cathay Bank |
| | | 1,169,901 | N/A | 1,169,901 | ||||||||||||||||
Taiwan Power Company |
| | | 1,048,083 | N/A | 1,048,083 | ||||||||||||||||
Formosa Petrochemical Corporation |
| | | 398,611 | N/A | 398,611 | ||||||||||||||||
Formosa Petrochemical Corporation |
| Held-to-maturity financial assets | | 3,574,211 | N/A | 3,555,654 | ||||||||||||||||
Taiwan Power Company |
| | | 3,262,876 | N/A | 3,262,707 | ||||||||||||||||
Nan Ya Plastics Corporation |
| | | 2,003,757 | N/A | 2,000,821 | ||||||||||||||||
CPC Corporation, Taiwan |
| | | 1,450,830 | N/A | 1,449,750 | ||||||||||||||||
China Steel Corporation |
| | | 1,000,000 | N/A | 996,986 | ||||||||||||||||
Formosa Plastic Corporation |
| | | 386,989 | N/A | 386,866 | ||||||||||||||||
Shanghai commercial & Saving Bank |
| | | 289,566 | N/A | 289,495 |
June 30, 2007 | ||||||||||||||||||||||||
Market Value or Net | ||||||||||||||||||||||||
Shares/Units | Carrying Value | Percentage of | Asset Value | |||||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | (in Thousands) | (US$ in Thousands) | Ownership | (US$ in Thousands) | Note | ||||||||||||||||
Stocks | ||||||||||||||||||||||||
TSMC Global | Subsidiary | Investment accounted for using equity method | 1 | $ | 43,613,633 | 100 | $ | 43,613,633 | ||||||||||||||||
TSMC International | Subsidiary | | 987,968 | 27,053,657 | 100 | 27,053,657 | ||||||||||||||||||
SSMC | Investee accounted for using equity method | | 463 | 8,289,538 | 39 | 7,221,894 | ||||||||||||||||||
VIS | Investee accounted for using equity method | | 442,262 | 5,637,861 | 27 | 14,550,413 | ||||||||||||||||||
TSMC Partners | Subsidiary | | 300 | 4,567,193 | 100 | 4,567,193 | ||||||||||||||||||
TSMC-NA | Subsidiary | | 11,000 | 2,207,039 | 100 | 2,207,039 | ||||||||||||||||||
Xintec | Investee with a controlling interest | | 90,526 | 1,366,816 | 43 | 1,271,218 | ||||||||||||||||||
GUC | Investee with a controlling interest | | 41,263 | 694,111 | 38 | 14,132,636 | ||||||||||||||||||
TSMC-Japan | Subsidiary | | 6 | 94,250 | 100 | 94,250 | ||||||||||||||||||
TSMC-Europe | Subsidiary | | | 65,109 | 100 | 65,109 | ||||||||||||||||||
TSMC-Korea | Subsidiary | | 80 | 15,514 | 100 | 15,514 | ||||||||||||||||||
United Industrial Gases Co., Ltd. | | Financial assets carried at cost | 16,783 | 193,584 | 10 | 277,359 | ||||||||||||||||||
Shin-Etsu Handotai Taiwan Co., Ltd. | | | 10,500 | 105,000 | 7 | 257,909 | ||||||||||||||||||
W.K. Technology Fund IV | | | 4,000 | 40,000 | 2 | 57,472 | ||||||||||||||||||
Hontung Venture Capital Co., Ltd. | | | 2,633 | 26,329 | 10 | 25,113 | ||||||||||||||||||
Fund | ||||||||||||||||||||||||
Horizon Ventures Fund | | Financial assets carried at cost | | 312,950 | 12 | 312,950 | ||||||||||||||||||
Crimson Asia Capital | | | | 69,355 | 1 | 69,355 | ||||||||||||||||||
Capital | ||||||||||||||||||||||||
TSMC-Shanghai | Subsidiary | Investment accounted for using equity method | | 8,799,540 | 100 | 8,792,573 | ||||||||||||||||||
VTAF II | Subsidiary | | | 858,453 | 98 | 855,775 | ||||||||||||||||||
VTAF III | Subsidiary | | | 756,146 | 98 | 748,203 | ||||||||||||||||||
Emerging Alliance | Subsidiary | | | 717,200 | 99 | 717,200 | ||||||||||||||||||
Chi Cheng | Subsidiary | | | 168,359 | 36 | 626,923 | Treasury stock of NT$458,564 thousand is deducted from the carrying value | |||||||||||||||||
Hsin Ruey | Subsidiary | | | 166,857 | 36 | 626,368 | Treasury stock of NT$459,511 thousand is deducted from the carrying value | |||||||||||||||||
Chi Cherng
|
Stocks | |||||||||||||||||||||||
TSMC | Parent Company | Available-for-sale financial assets | 17,032 | 1,207,568 | | 1,207,568 | ||||||||||||||||||
VIS | Investee accounted for using equity method | Investments accounted for using equity method | 5,032 | 104,426 | | 165,556 | ||||||||||||||||||
Hsin Ruey
|
Stocks | |||||||||||||||||||||||
TSMC | Parent Company | Available-for-sale financial assets | 17,064 | 1,209,832 | | 1,209,832 | ||||||||||||||||||
VIS | Investee accounted for using equity method | Investments accounted for using equity method | 3,711 | 81,743 | | 122,087 | ||||||||||||||||||
TSMC International
|
Stocks | |||||||||||||||||||||||
InveStar | Subsidiary | Investments accounted for using equity method | 9,207 | US$ | 36,466 | 97 | US$ | 36,466 | ||||||||||||||||
InveStar II | Subsidiary | | 51,300 | US$ | 54,498 | 97 | US$ | 54,498 | ||||||||||||||||
TSMC Development | Subsidiary | | 1 | US$ | 662,082 | 100 | US$ | 662,082 | ||||||||||||||||
TSMC Technology | Subsidiary | | 1 | US$ | 6,286 | 100 | US$ | 6,286 |
June 30, 2007 | ||||||||||||||||||||||||
Market Value or Net | ||||||||||||||||||||||||
Shares/Units | Carrying Value | Percentage of | Asset Value | |||||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | (in Thousands) | (US$ in Thousands) | Ownership | (US$ in Thousands) | Note | ||||||||||||||||
TSMC-Development
|
WaferTech | Subsidiary | Investments accounted for using equity method | | US$ | 249,316 | 100 | US$ | 249,316 | |||||||||||||||
TSMC Partners
|
Common stock | |||||||||||||||||||||||
VisEra Holding Company | Investee accounted for using equity method | Investments accounted for using equity method | 43,000 | US$ | 63,098 | 49 | US$ | 63,098 | ||||||||||||||||
Emerging Alliance
|
Common stock | |||||||||||||||||||||||
NetLogic Microsystems, Inc. | | Financial assets at fair value through profit or loss | 55 | US$ | 1,767 | | US$ | 1,767 | ||||||||||||||||
Ikanos Communication, Inc. | | Available-for-sale financial assets | 515 | US$ | 3,917 | 2 | US$ | 3,917 | ||||||||||||||||
Global Investment Holding, Inc. | | Financial assets carried at cost | 10,800 | $ | 100,000 | 6 | $ | 100,000 | ||||||||||||||||
RichWave Technology Corp. | | | 4,247 | US$ | 1,648 | 13 | US$ | 1,648 | ||||||||||||||||
Pixim, Inc. | | | 1,036 | US$ | 275 | 2 | US$ | 275 | ||||||||||||||||
Preferred stock | ||||||||||||||||||||||||
Pixim, Inc. | | Financial assets carried at cost | 3,606 | US$ | 862 | | US$ | 862 | ||||||||||||||||
Mosaic Systems, Inc. | | | 2,481 | US$ | 12 | 6 | US$ | 12 | ||||||||||||||||
Reflectivity, Inc. | | | 3,252 | US$ | 102 | 4 | US$ | 102 | ||||||||||||||||
Miradia, Inc. | | | 3,040 | US$ | 1,000 | 3 | US$ | 1,000 | ||||||||||||||||
Axiom Microdevices, Inc. | | | 1,000 | US$ | 1,000 | 1 | US$ | 1,000 | ||||||||||||||||
Optichron, Inc. | | | 714 | US$ | 1,000 | 4 | US$ | 1,000 | ||||||||||||||||
NuCORE Technology, Inc. | | | 2,254 | US$ | 1,388 | 2 | US$ | 1,388 | ||||||||||||||||
Next IO, Inc. | | | 800 | US$ | 500 | 2 | US$ | 500 | ||||||||||||||||
Audience, Inc. | | | 1,654 | US$ | 250 | 1 | US$ | 250 | ||||||||||||||||
Centrality Communications | | | 1,325 | US$ | 1,800 | 3 | US$ | 1,800 | ||||||||||||||||
Teknovus, Inc. | | | 6,977 | US$ | 1,327 | 3 | US$ | 1,327 | ||||||||||||||||
Optimal Corporation | | | 583 | US$ | 600 | 4 | US$ | 600 | ||||||||||||||||
Mobilygen | | | 1,415 | US$ | 750 | 1 | US$ | 750 | ||||||||||||||||
VTAF II
|
Common stock | |||||||||||||||||||||||
Yobon | | Financial assets carried at cost | 1,875 | US$ | 919 | 13 | US$ | 919 | ||||||||||||||||
Sentelic | | | 1,200 | US$ | 2,040 | 15 | US$ | 2,040 | ||||||||||||||||
Leadtrend | | | 1,150 | US$ | 660 | 6 | US$ | 660 | ||||||||||||||||
RichWave Technology Corp. | | | 500 | US$ | 231 | 2 | US$ | 231 | ||||||||||||||||
Preferred stock | ||||||||||||||||||||||||
Powerprecise Solutions, Inc. | | Financial assets carried at cost | 1,445 | US$ | 1,400 | 11 | US$ | 1,400 | ||||||||||||||||
Tzero Technologies, Inc. | | | 730 | US$ | 1,500 | 2 | US$ | 1,500 | ||||||||||||||||
Miradia, Inc. | | | 2,740 | US$ | 2,424 | 3 | US$ | 2,424 | ||||||||||||||||
Axiom Microdevices, Inc. | | | 4,142 | US$ | 1,812 | 4 | US$ | 1,812 | ||||||||||||||||
Next IO, Inc. | | | 216 | US$ | 182 | | US$ | 182 | ||||||||||||||||
Ageia Technologies, Inc. | | | 2,030 | US$ | 2,074 | 2 | US$ | 2,074 | ||||||||||||||||
Audience, Inc. | | | 2,208 | US$ | 474 | 1 | US$ | 474 | ||||||||||||||||
GemFire Corporation | | | 600 | US$ | 68 | 1 | US$ | 68 | ||||||||||||||||
Optichron, Inc. | | | 353 | US$ | 869 | 2 | US$ | 869 | ||||||||||||||||
Xceive | | | 714 | US$ | 1,000 | 2 | US$ | 1,000 | ||||||||||||||||
5V Technologies, Inc. | | | 2,357 | US$ | 1,768 | 11 | US$ | 1,768 | ||||||||||||||||
Power Analog Microelectronics | | | 2,000 | US$ | 1,500 | 13 | US$ | 1,500 | ||||||||||||||||
Impinj, Inc. | | | 475 | US$ | 1,000 | | US$ | 1,000 | ||||||||||||||||
Beceem Communications | | | 650 | US$ | 1,600 | 1 | US$ | 1,600 | ||||||||||||||||
Teknovus, Inc. | | | 518 | US$ | 119 | | US$ | 119 | ||||||||||||||||
Aquantia Corporation | | | 1,264 | US$ | 1,150 | 5 | US$ | 1,150 | ||||||||||||||||
Pixim, Inc. | | | 3,279 | US$ | 641 | 2 | US$ | 641 |
June 30, 2007 | ||||||||||||||||||||||||
Market Value or Net | ||||||||||||||||||||||||
Shares/Units | Carrying Value | Percentage of | Asset Value | |||||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | (in Thousands) | (US$ in Thousands) | Ownership | (US$ in Thousands) | Note | ||||||||||||||||
VTAF III
|
Preferred stock | |||||||||||||||||||||||
Mutual-Pak Limited | | Financial assets carried at cost | 370 | US$ | 112 | 13 | US$ | 112 | ||||||||||||||||
Quellan, Inc | | | 2,231 | US$ | 2,500 | 7 | US$ | 2,500 | ||||||||||||||||
M2000, Inc. | | | 1,500 | US$ | 1,500 | 4 | US$ | 1,500 | ||||||||||||||||
SynDiTec, Inc. | | | 4,296 | US$ | 720 | 7 | US$ | 720 | ||||||||||||||||
Validity Sensors, Inc. | | | 5,333 | US$ | 2,000 | 7 | US$ | 2,000 | ||||||||||||||||
Silicon Technical Services, LLC | | | 915 | US$ | 1,000 | 2 | US$ | 1,000 | ||||||||||||||||
Neoconix, Inc. | | | 2,458 | US$ | 4,000 | 6 | US$ | 4,000 | ||||||||||||||||
Advasense Sensors, Inc. | | | 1,624 | US$ | 1,500 | 6 | US$ | 1,500 | ||||||||||||||||
Tilera, Inc. | | | 1,698 | US$ | 2,360 | 3 | US$ | 2,360 | ||||||||||||||||
Corporate Bond | ||||||||||||||||||||||||
GTBF, Inc. | | Financial assets carried at cost | | US$ | 1,500 | N/A | US$ | 1,500 | ||||||||||||||||
Investar
|
Common stock | |||||||||||||||||||||||
Monolithic Power Systems, Inc. | | Financial assets at fair value through profit or loss | 1,975 | US$ | 34,458 | 7 | US$ | 34,458 | ||||||||||||||||
Advanced Power Electronics Corp. | | Available-for-sale financial assets | 58 | US$ | 20 | | US$ | 20 | ||||||||||||||||
Capella Microsystems (Taiwan), Inc. | | Financial assets carried at cost | 530 | US$ | 154 | 2 | US$ | 154 | ||||||||||||||||
Preferred stock | ||||||||||||||||||||||||
Integrated Memory Logic, Inc. | | Financial assets carried at cost | 2,831 | US$ | 1,221 | 9 | US$ | 1,221 | ||||||||||||||||
IP Unity, Inc. | | | 1,008 | US$ | 494 | 1 | US$ | 494 | ||||||||||||||||
Sonics, Inc. | | | 1,843 | US$ | 3,530 | 2 | US$ | 3,530 | ||||||||||||||||
NanoAmp Solutions, Inc. | | | 541 | US$ | 853 | 2 | US$ | 853 | ||||||||||||||||
Memsic, Inc. | | | 2,727 | US$ | 1,500 | 9 | US$ | 1,500 | ||||||||||||||||
Investar II
|
Common stock | |||||||||||||||||||||||
Monolithic Power Systems, Inc. | | Financial assets at fair value through profit or loss | 864 | US$ | 15,085 | 3 | US$ | 15,085 | ||||||||||||||||
Geo Vision, Inc. | | | 6 | US$ | 40 | | US$ | 40 | ||||||||||||||||
Rich Tek Technology Corp. | | | 132 | US$ | 2,088 | | US$ | 2,088 | ||||||||||||||||
Geo Vision, Inc. | | Available-for-sale financial assets | 15 | US$ | 91 | | US$ | 91 | ||||||||||||||||
Rich Tek Technology Corp. | | | 227 | US$ | 3,597 | | US$ | 3,597 | ||||||||||||||||
Ralink Technology (Taiwan), Inc. | | Financial assets carried at cost | 2,383 | US$ | 791 | 3 | US$ | 791 | ||||||||||||||||
Capella Microsystems (Taiwan), Inc. | | | 534 | US$ | 210 | 2 | US$ | 210 | ||||||||||||||||
Auden Technology MFG. Co., Ltd. | | | 1,049 | US$ | 223 | 4 | US$ | 223 | ||||||||||||||||
EoNEX Technologies, Inc. | | | 55 | US$ | 3,048 | 5 | US$ | 3,048 | ||||||||||||||||
Goyatek Technology, Corp. | | | 2,088 | US$ | 545 | 7 | US$ | 545 | ||||||||||||||||
Trendchip Technologics Corp. | | | 1,000 | US$ | 574 | 4 | US$ | 574 | ||||||||||||||||
EON Technology, Corp. | | | 4,243 | US$ | 1,175 | 6 | US$ | 1,175 | ||||||||||||||||
eLCOS Microdisplay Technology, Ltd. | | | 270 | US$ | 27 | 1 | US$ | 27 | ||||||||||||||||
Epic Communication, Inc. | | | 191 | US$ | 37 | 1 | US$ | 37 | ||||||||||||||||
Sonics, Inc. | | | 2,220 | US$ | 32 | 3 | US$ | 32 | ||||||||||||||||
Preferred stock | ||||||||||||||||||||||||
Memsic, Inc. | | Financial assets carried at cost | 2,289 | US$ | 1,560 | 7 | US$ | 1,560 | ||||||||||||||||
NanoAmp Solutions, Inc. | | | 375 | US$ | 1,500 | 1 | US$ | 1,500 | ||||||||||||||||
Kilopass Technology, Inc. | | | 3,887 | US$ | 2,000 | 6 | US$ | 2,000 | ||||||||||||||||
FangTek, Inc. | | | 6,930 | US$ | 3,250 | 16 | US$ | 3,250 | ||||||||||||||||
Sonics, Inc. | | | 2,115 | US$ | 3,082 | 3 | US$ | 3,082 | ||||||||||||||||
eLCOS Microdisplay Technology, Ltd. | | | 3,500 | US$ | 3,500 | 8 | US$ | 3,500 | ||||||||||||||||
Alchip Technologies Limited | | | 6,128 | US$ | 2,450 | 15 | US$ | 2,450 |
June 30, 2007 | ||||||||||||||||||||
Market Value or Net | ||||||||||||||||||||
Shares/Units | Carrying Value | Percentage of | Asset Value | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | (in Thousands) | (US$ in Thousands) | Ownership | (US$ in Thousands) | Note | ||||||||||||
TSMC Global
|
Government bonds | |||||||||||||||||||
United States Treas Nts | | Available-for-sale financial assets | | US$ | 300 | N/A | US$ | 300 | ||||||||||||
United States Treas Nts | | | | US$ | 41,177 | N/A | US$ | 41,177 | ||||||||||||
United States Treas Nts | | | | US$ | 16,896 | N/A | US$ | 16,896 | ||||||||||||
United States Treas Nts | | | | US$ | 46,322 | N/A | US$ | 46,322 | ||||||||||||
United States Treas Nts | | | | US$ | 5,724 | N/A | US$ | 5,724 | ||||||||||||
United States Treas Nt | | | | US$ | 26,065 | N/A | US$ | 26,065 | ||||||||||||
United States Treas Nts | | | | US$ | 20,611 | N/A | US$ | 20,611 | ||||||||||||
United States Treas Nts | | | | US$ | 14,742 | N/A | US$ | 14,742 | ||||||||||||
United States Treas Nts | | | | US$ | 5,829 | N/A | US$ | 5,829 | ||||||||||||
Us Treasury Nts | | | | US$ | 4,841 | N/A | US$ | 4,841 | ||||||||||||
Us Treasury Nts | | | | US$ | 2,480 | N/A | US$ | 2,480 | ||||||||||||
Us Treasury Nts | | | | US$ | 2,483 | N/A | US$ | 2,483 | ||||||||||||
Us Treas Nts | | | | US$ | 10,290 | N/A | US$ | 10,290 | ||||||||||||
Corporate bonds | ||||||||||||||||||||
Anz Cap Tr I | | Available-for-sale financial assets | | US$ | 970 | N/A | US$ | 970 | ||||||||||||
Axa Finl, Inc. | | | | US$ | 2,118 | N/A | US$ | 2,118 | ||||||||||||
Abbott Labs | | | | US$ | 2,538 | N/A | US$ | 2,538 | ||||||||||||
Abbott Labs | | | | US$ | 1,503 | N/A | US$ | 1,503 | ||||||||||||
Allstate Life Global Fdg Secd | | | | US$ | 2,978 | N/A | US$ | 2,978 | ||||||||||||
American Gen Fin Corp. | | | | US$ | 3,198 | N/A | US$ | 3,198 | ||||||||||||
American Gen Fin Corp. Mtn | | | | US$ | 3,458 | N/A | US$ | 3,458 | ||||||||||||
American Gen Fin Corp. Mtn | | | | US$ | 1,970 | N/A | US$ | 1,970 | ||||||||||||
American Honda Fin Corp. Mtn | | | | US$ | 9,310 | N/A | US$ | 9,310 | ||||||||||||
American Honda Fin Corp. Mtn | | | | US$ | 800 | N/A | US$ | 800 | ||||||||||||
Amgen, Inc. | | | | US$ | 2,909 | N/A | US$ | 2,909 | ||||||||||||
Associates Corp. North Amer | | | | US$ | 2,529 | N/A | US$ | 2,529 | ||||||||||||
Atlantic Richfield Co | | | | US$ | 2,168 | N/A | US$ | 2,168 | ||||||||||||
Bp Cap Mkts P L C | | | | US$ | 4,447 | N/A | US$ | 4,447 | ||||||||||||
Bank New York, Inc. | | | | US$ | 1,496 | N/A | US$ | 1,496 | ||||||||||||
Bank One Corp. | | | | US$ | 2,017 | N/A | US$ | 2,017 | ||||||||||||
Bank One Corp. | | | | US$ | 1,461 | N/A | US$ | 1,461 | ||||||||||||
Bank Utd Houston Tx Mtbn | | | | US$ | 522 | N/A | US$ | 522 | ||||||||||||
Beneficial Corp. Mtn Bk Entry | | | | US$ | 2,286 | N/A | US$ | 2,286 | ||||||||||||
Burlington Res, Inc. | | | | US$ | 3,639 | N/A | US$ | 3,639 | ||||||||||||
Cit Group Hldgs, Inc. | | | | US$ | 3,018 | N/A | US$ | 3,018 | ||||||||||||
Cit Group, Inc. New | | | | US$ | 2,504 | N/A | US$ | 2,504 | ||||||||||||
Chase Manhattan Corp. New | | | | US$ | 2,102 | N/A | US$ | 2,102 | ||||||||||||
Chase Manhattan Corp. New | | | | US$ | 5,059 | N/A | US$ | 5,059 | ||||||||||||
Chubb Corp. | | | | US$ | 2,123 | N/A | US$ | 2,123 | ||||||||||||
Cogentrix Energy, Inc. | | | | US$ | 3,701 | N/A | US$ | 3,701 | ||||||||||||
Colonial Pipeline Co. | | | | US$ | 1,479 | N/A | US$ | 1,479 | ||||||||||||
Consolidated Edison, Inc. | | | | US$ | 2,938 | N/A | US$ | 2,938 | ||||||||||||
Countrywide Fdg Corp. Mtn | | | | US$ | 2,026 | N/A | US$ | 2,026 | ||||||||||||
Credit Suisse First Boston Usa | | | | US$ | 3,119 | N/A | US$ | 3,119 | ||||||||||||
Credit Suisse First Boston Usa | | | | US$ | 2,185 | N/A | US$ | 2,185 | ||||||||||||
Credit Suisse First Boston | | | | US$ | 732 | N/A | US$ | 732 | ||||||||||||
Daimlerchrysler North Amer | | | | US$ | 988 | N/A | US$ | 988 | ||||||||||||
Daimlerchrysler North Amer Hld | | | | US$ | 751 | N/A | US$ | 751 | ||||||||||||
Dayton Hudson Corp. | | | | US$ | 2,014 | N/A | US$ | 2,014 | ||||||||||||
Deere John Cap Corp. Mtn Bk Ent | | | | US$ | 2,159 | N/A | US$ | 2,159 | ||||||||||||
Deere John Cap Corp. | | | | US$ | 5,927 | N/A | US$ | 5,927 |
June 30, 2007 | ||||||||||||||||||||
Market Value or Net | ||||||||||||||||||||
Shares/Units | Carrying Value | Percentage of | Asset Value | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | (in Thousands) | (US$ in Thousands) | Ownership | (US$ in Thousands) | Note | ||||||||||||
Dell Computer Corp. | | Available-for-sale financial assets | | US$ | 2,809 | N/A | US$ | 2,809 | ||||||||||||
Diageo Plc | | | | US$ | 3,478 | N/A | US$ | 3,478 | ||||||||||||
Emerson Elec Co. | | | | US$ | 3,208 | N/A | US$ | 3,208 | ||||||||||||
European Invt Bk | | | | US$ | 6,054 | N/A | US$ | 6,054 | ||||||||||||
Federal Home Ln Bks | | | | US$ | 7,937 | N/A | US$ | 7,937 | ||||||||||||
Fifth Third Bk Cinc.Innati Oh | | | | US$ | 2,448 | N/A | US$ | 2,448 | ||||||||||||
Fleet Finl Group, Inc. New | | | | US$ | 902 | N/A | US$ | 902 | ||||||||||||
Fleet Boston Corp. | | | | US$ | 2,614 | N/A | US$ | 2,614 | ||||||||||||
Ge Global Ins Hldg Corp. | | | | US$ | 1,893 | N/A | US$ | 1,893 | ||||||||||||
General Dynamics Corp. | | | | US$ | 2,064 | N/A | US$ | 2,064 | ||||||||||||
General Elec Cap Corp. Mtn | | | | US$ | 1,167 | N/A | US$ | 1,167 | ||||||||||||
General Elec Cap Corp. Mtn | | | | US$ | 3,907 | N/A | US$ | 3,907 | ||||||||||||
General Elec Cap Corp. Mtn | | | | US$ | 2,094 | N/A | US$ | 2,094 | ||||||||||||
General Elec Cap Corp. Mtn | | | | US$ | 11,267 | N/A | US$ | 11,267 | ||||||||||||
General Re Corp. | | | | US$ | 3,233 | N/A | US$ | 3,233 | ||||||||||||
Genworth Finl, Inc. | | | | US$ | 3,245 | N/A | US$ | 3,245 | ||||||||||||
Greenpoint Finl Corp. | | | | US$ | 980 | N/A | US$ | 980 | ||||||||||||
Hbos Plc Medium Term Sr Nts | | | | US$ | 2,976 | N/A | US$ | 2,976 | ||||||||||||
Hancock John Global Fdg Ii Mtn | | | | US$ | 5,065 | N/A | US$ | 5,065 | ||||||||||||
Hancock John Global Fdg Mtn | | | | US$ | 982 | N/A | US$ | 982 | ||||||||||||
Hancock John Global Fdg Ii Mtn | | | | US$ | 2,920 | N/A | US$ | 2,920 | ||||||||||||
Hartford Finl Svcs Group, Inc. | | | | US$ | 1,338 | N/A | US$ | 1,338 | ||||||||||||
Hartford Finl Svcs Group, Inc. | | | | US$ | 5,025 | N/A | US$ | 5,025 | ||||||||||||
Heller Finl, Inc. | | | | US$ | 1,908 | N/A | US$ | 1,908 | ||||||||||||
Hewlett Packard Co. | | | | US$ | 1,829 | N/A | US$ | 1,829 | ||||||||||||
Household Fin Corp. | | | | US$ | 3,075 | N/A | US$ | 3,075 | ||||||||||||
Household Fin Corp. | | | | US$ | 2,916 | N/A | US$ | 2,916 | ||||||||||||
Huntington National Bank | | | | US$ | 1,862 | N/A | US$ | 1,862 | ||||||||||||
Ing Sec Life Instl Fdg | | | | US$ | 2,478 | N/A | US$ | 2,478 | ||||||||||||
International Business Machs | | | | US$ | 3,455 | N/A | US$ | 3,455 | ||||||||||||
Intl Lease Fin Corp. Mtn | | | | US$ | 2,951 | N/A | US$ | 2,951 | ||||||||||||
Intl Lease Fin Corp. Mtn | | | | US$ | 4,159 | N/A | US$ | 4,159 | ||||||||||||
J P Morgan Chase + Co. | | | | US$ | 3,285 | N/A | US$ | 3,285 | ||||||||||||
Key Bk Na Med Term Nts Bk Entr | | | | US$ | 4,423 | N/A | US$ | 4,423 | ||||||||||||
KeyCorp. Mtn Book Entry | | | | US$ | 3,016 | N/A | US$ | 3,016 | ||||||||||||
Lehman Brothers Hldgs, Inc. | | | | US$ | 1,067 | N/A | US$ | 1,067 | ||||||||||||
Lehman Brothers Hldgs, Inc. | | | | US$ | 3,150 | N/A | US$ | 3,150 | ||||||||||||
Lehman Brothers Hldgs, Inc. | | | | US$ | 486 | N/A | US$ | 486 | ||||||||||||
Lehman Brothers Hldgs, Inc. | | | | US$ | 983 | N/A | US$ | 983 | ||||||||||||
Lehman Brothers Hldgs, Inc. | | | | US$ | 1,162 | N/A | US$ | 1,162 | ||||||||||||
Lehman Brothers Hldgs, Inc. | | | | US$ | 1,628 | N/A | US$ | 1,628 | ||||||||||||
Mbna America Bank Na Y | | | | US$ | 6,418 | N/A | US$ | 6,418 | ||||||||||||
Mgic Invt Corp. | | | | US$ | 1,197 | N/A | US$ | 1,197 | ||||||||||||
Ameritech Capital Funding Co. | | | | US$ | 2,785 | N/A | US$ | 2,785 | ||||||||||||
Marshall + Ilsley Corp. | | | | US$ | 8,435 | N/A | US$ | 8,435 | ||||||||||||
Massmutual Global Fdg Ii Mtn | | | | US$ | 3,627 | N/A | US$ | 3,627 | ||||||||||||
Metropolitan Life Global Mtn | | | | US$ | 3,415 | N/A | US$ | 3,415 | ||||||||||||
Monumental Global Fdg Ii | | | | US$ | 1,471 | N/A | US$ | 1,471 | ||||||||||||
Monunmetal Global Fdg Ii | | | | US$ | 1,959 | N/A | US$ | 1,959 | ||||||||||||
Mony Group, Inc. | | | | US$ | 2,142 | N/A | US$ | 2,142 | ||||||||||||
Morgan Stanley | | | | US$ | 1,931 | N/A | US$ | 1,931 | ||||||||||||
Morgan Stanley | | | | US$ | 5,458 | N/A | US$ | 5,458 |
June 30, 2007 | ||||||||||||||||||||
Market Value or Net | ||||||||||||||||||||
Shares/Units | Carrying Value | Percentage of | Asset Value | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | (in Thousands) | (US$ in Thousands) | Ownership | (US$ in Thousands) | Note | ||||||||||||
National City Corp. | | Available-for-sale financial assets | | US$ | 3,443 | N/A | US$ | 3,443 | ||||||||||||
National Westminster Bk Plc | | | | US$ | 1,308 | N/A | US$ | 1,308 | ||||||||||||
Nationwide Life Global Fdg I | | | | US$ | 3,477 | N/A | US$ | 3,477 | ||||||||||||
Oracle Corp. / Ozark Hldg, Inc. | | | | US$ | 1,966 | N/A | US$ | 1,966 | ||||||||||||
Pnc Fdg Corp. | | | | US$ | 1,001 | N/A | US$ | 1,001 | ||||||||||||
Pepsico, Inc. Mtn Book Entry | | | | US$ | 3,616 | N/A | US$ | 3,616 | ||||||||||||
Popular North Amer, Inc. | | | | US$ | 2,907 | N/A | US$ | 2,907 | ||||||||||||
Praxair, Inc. | | | | US$ | 3,122 | N/A | US$ | 3,122 | ||||||||||||
Premark Intl, Inc. | | | | US$ | 2,706 | N/A | US$ | 2,706 | ||||||||||||
Pricoa Global Fdg I Mtn | | | | US$ | 3,421 | N/A | US$ | 3,421 | ||||||||||||
Principal Finl Group Australia | | | | US$ | 1,001 | N/A | US$ | 1,001 | ||||||||||||
Principal Life Global Fdg I Gl | | | | US$ | 1,172 | N/A | US$ | 1,172 | ||||||||||||
Protective Life Secd Trs | | | | US$ | 2,935 | N/A | US$ | 2,935 | ||||||||||||
Protective Life Secd Trs Mtn | | | | US$ | 3,403 | N/A | US$ | 3,403 | ||||||||||||
Public Svc Elec Gas Co. | | | | US$ | 3,706 | N/A | US$ | 3,706 | ||||||||||||
Regions Finl Corp. New | | | | US$ | 2,381 | N/A | US$ | 2,381 | ||||||||||||
Mizuho Fin(Cayman) | | | | US$ | 2,167 | N/A | US$ | 2,167 | ||||||||||||
Sbc Communications, Inc. | | | | US$ | 3,312 | N/A | US$ | 3,312 | ||||||||||||
Sbc Communications, Inc. | | | | US$ | 695 | N/A | US$ | 695 | ||||||||||||
Sp Powerassests Ltd Global | | | | US$ | 980 | N/A | US$ | 980 | ||||||||||||
Safeco Corp. | | | | US$ | 711 | N/A | US$ | 711 | ||||||||||||
St Paul Cos, Inc. Mtn Bk Ent | | | | US$ | 2,536 | N/A | US$ | 2,536 | ||||||||||||
Simon Ppty Group L P | | | | US$ | 2,177 | N/A | US$ | 2,177 | ||||||||||||
Simon Ppty Group Lp | | | | US$ | 998 | N/A | US$ | 998 | ||||||||||||
Suntrust Bk Atlanta Ga Medium | | | | US$ | 3,454 | N/A | US$ | 3,454 | ||||||||||||
Us Bk Natl Assn Cincinnati Oh | | | | US$ | 2,935 | N/A | US$ | 2,935 | ||||||||||||
Vodafone Airtouch Plc | | | | US$ | 1,662 | N/A | US$ | 1,662 | ||||||||||||
Wps Resources Corp. | | | | US$ | 1,029 | N/A | US$ | 1,029 | ||||||||||||
Wachovia Corp. New | | | | US$ | 3,479 | N/A | US$ | 3,479 | ||||||||||||
Wachovia Corp. New | | | | US$ | 3,125 | N/A | US$ | 3,125 | ||||||||||||
Washington Mut, Inc. | | | | US$ | 1,698 | N/A | US$ | 1,698 | ||||||||||||
Washington Post Co. | | | | US$ | 3,001 | N/A | US$ | 3,001 | ||||||||||||
Wells Fargo + Co. New | | | | US$ | 2,961 | N/A | US$ | 2,961 | ||||||||||||
Wells Fargo + Co. New Med Trm | | | | US$ | 4,310 | N/A | US$ | 4,310 | ||||||||||||
Westfield Cap Corp. Ltd | | | | US$ | 2,003 | N/A | US$ | 2,003 | ||||||||||||
Corporate issued asset-backed securities | ||||||||||||||||||||
American Home Mtg Invt Tr | | Available-for-sale financial assets | | US$ | 53 | N/A | US$ | 53 | ||||||||||||
Americredit Automobile Rec Tr | | | | US$ | 3,253 | N/A | US$ | 3,253 | ||||||||||||
Americredit Automobile Rec Tr | | | | US$ | 2,294 | N/A | US$ | 2,294 | ||||||||||||
Americredit Auto Rec Tr | | | | US$ | 1,000 | N/A | US$ | 1,000 | ||||||||||||
Americredit Automobile Receivb | | | | US$ | 1,996 | N/A | US$ | 1,996 | ||||||||||||
Americredit Automobile Receiva | | | | US$ | 2,728 | N/A | US$ | 2,728 | ||||||||||||
Atlantic City Elc Trns Fdgllc | | | | US$ | 298 | N/A | US$ | 298 | ||||||||||||
Ba Cr Card Tr | | | | US$ | 4,264 | N/A | US$ | 4,264 | ||||||||||||
Banc Amer Fdg 2006 I Tr | | | | US$ | 4,044 | N/A | US$ | 4,044 | ||||||||||||
Bear Stearns Coml Mtg Secs, Inc. | | | | US$ | 3,518 | N/A | US$ | 3,518 | ||||||||||||
Bear Stearns Alt A Tr | | | | US$ | 532 | N/A | US$ | 532 | ||||||||||||
Bear Stearns Arm Tr | | | | US$ | 3,259 | N/A | US$ | 3,259 | ||||||||||||
Bear Stearns Arm Tr | | | | US$ | 1,943 | N/A | US$ | 1,943 | ||||||||||||
Cit Equip Coll Tr | | | | US$ | 893 | N/A | US$ | 893 | ||||||||||||
Cit Equip Coll Tr | | | | US$ | 3,986 | N/A | US$ | 3,986 | ||||||||||||
Cnh Equip Tr | | | | US$ | 276 | N/A | US$ | 276 |
June 30, 2007 | ||||||||||||||||||||||||||||||||
Market Value or Net | ||||||||||||||||||||||||||||||||
Shares/Units | Carrying Value | Percentage of | Asset Value | |||||||||||||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | (in Thousands) | (US$ in Thousands) | Ownership | (US$ in Thousands) | Note | ||||||||||||||||||||||||
Cwabs, Inc. |
| Available-for-sale financial assets | | US$ | 139 | N/A | US$ | 139 | ||||||||||||||||||||||||
Cwabs |
| | | US$ | 3,619 | N/A | US$ | 3,619 | ||||||||||||||||||||||||
Cwmbs, Inc. |
| | | US$ | 784 | N/A | US$ | 784 | ||||||||||||||||||||||||
Capital Auto Receivables Asset |
| | | US$ | 3,236 | N/A | US$ | 3,236 | ||||||||||||||||||||||||
Capital Auto Receivables Asset |
| | | US$ | 2,238 | N/A | US$ | 2,238 | ||||||||||||||||||||||||
Capital One Auto Fin Tr |
| | | US$ | 2,628 | N/A | US$ | 2,628 | ||||||||||||||||||||||||
Capital One Auto Fin Tr |
| | | US$ | 2,995 | N/A | US$ | 2,995 | ||||||||||||||||||||||||
Capital One Auto Fin Tr |
| | | US$ | 4,997 | N/A | US$ | 4,997 | ||||||||||||||||||||||||
Capital One Multi Asset Execut |
| | | US$ | 3,961 | N/A | US$ | 3,961 | ||||||||||||||||||||||||
Capital One Multi Asset Execut |
| | | US$ | 2,965 | N/A | US$ | 2,965 | ||||||||||||||||||||||||
Capitial One Prime Auto Receiv |
| | | US$ | 1,414 | N/A | US$ | 1,414 | ||||||||||||||||||||||||
Capital One Prime Auto Rec |
| | | US$ | 3,968 | N/A | US$ | 3,968 | ||||||||||||||||||||||||
Caterpillar Finl Asset Tr |
| | | US$ | 8,198 | N/A | US$ | 8,198 | ||||||||||||||||||||||||
Cbass Tr |
| | | US$ | 4,248 | N/A | US$ | 4,248 | ||||||||||||||||||||||||
Cendant Rent Car Fdg Aesop Llc |
| | | US$ | 9,361 | N/A | US$ | 9,361 | ||||||||||||||||||||||||
Chase Mtge Finance Corp. |
| | | US$ | 2,763 | N/A | US$ | 2,763 | ||||||||||||||||||||||||
Chase Mtg Fin Tr |
| | | US$ | 2,881 | N/A | US$ | 2,881 | ||||||||||||||||||||||||
Chase Mtge Finance Corp. |
| | | US$ | 1,831 | N/A | US$ | 1,831 | ||||||||||||||||||||||||
Chase Mtg Fin Tr |
| | | US$ | 950 | N/A | US$ | 950 | ||||||||||||||||||||||||
Chase Mtg Fin Tr |
| | | US$ | 1,900 | N/A | US$ | 1,900 | ||||||||||||||||||||||||
Citicorp Mtg Secs |
| | | US$ | 375 | N/A | US$ | 375 | ||||||||||||||||||||||||
Citibank Cr Card Issuance Tr |
| | | US$ | 9,970 | N/A | US$ | 9,970 | ||||||||||||||||||||||||
Credit Suisse First Boston Mtg |
| | | US$ | 7,629 | N/A | US$ | 7,629 | ||||||||||||||||||||||||
Credit Suisse First Boston Mtg |
| | | US$ | 7,677 | N/A | US$ | 7,677 | ||||||||||||||||||||||||
Credit Suisse First Boston Mtg |
| | | US$ | 300 | N/A | US$ | 300 | ||||||||||||||||||||||||
Credit Suisse First Boston Mtg |
| | | US$ | 3,563 | N/A | US$ | 3,563 | ||||||||||||||||||||||||
Credit Suisse First Boston Mtg |
| | | US$ | 3,715 | N/A | US$ | 3,715 | ||||||||||||||||||||||||
Daimlerchrysler Auto Tr |
| | | US$ | 1,694 | N/A | US$ | 1,694 | ||||||||||||||||||||||||
Daimlerchrysler Auto Tr |
| | | US$ | 4,295 | N/A | US$ | 4,295 | ||||||||||||||||||||||||
Deere John Owner Tr |
| | | US$ | 2,447 | N/A | US$ | 2,447 | ||||||||||||||||||||||||
Drive Auto Receivables Tr |
| | | US$ | 2,306 | N/A | US$ | 2,306 | ||||||||||||||||||||||||
First Franklin Mtg Ln Tr |
| | | US$ | 4,187 | N/A | US$ | 4,187 | ||||||||||||||||||||||||
First Horizon Abs Tr |
| | | US$ | 422 | N/A | US$ | 422 | ||||||||||||||||||||||||
First Union Lehman Bros Mtg Tr |
| | | US$ | 795 | N/A | US$ | 795 | ||||||||||||||||||||||||
First Un Natl Bk Coml Mtg Tr |
| | | US$ | 2,854 | N/A | US$ | 2,854 | ||||||||||||||||||||||||
Ford Credit Auto Owner Trust |
| | | US$ | 4,299 | N/A | US$ | 4,299 | ||||||||||||||||||||||||
Ge Cap Cr Card Master Nt Tr |
| | | US$ | 2,827 | N/A | US$ | 2,827 | ||||||||||||||||||||||||
Gs Mtg Secs Corp. |
| | | US$ | 4,127 | N/A | US$ | 4,127 | ||||||||||||||||||||||||
Harley Davidson Motorcycle Tr |
| | | US$ | 4,943 | N/A | US$ | 4,943 | ||||||||||||||||||||||||
Hertz Veh Fing Llc |
| | | US$ | 5,320 | N/A | US$ | 5,320 | ||||||||||||||||||||||||
Home Equity Mtg Tr 2006 4 |
| | | US$ | 4,167 | N/A | US$ | 4,167 | ||||||||||||||||||||||||
Honda Auto Receivables |
| | | US$ | 3,362 | N/A | US$ | 3,362 | ||||||||||||||||||||||||
Hsbc Automotive Tr |
| | | US$ | 2,690 | N/A | US$ | 2,690 | ||||||||||||||||||||||||
Hyundai Auto Receivables Tr |
| | | US$ | 4,083 | N/A | US$ | 4,083 | ||||||||||||||||||||||||
Hyundai Auto Receivables Tr |
| | | US$ | 3,941 | N/A | US$ | 3,941 | ||||||||||||||||||||||||
J P Morgan Mtg Tr |
| | | US$ | 955 | N/A | US$ | 955 | ||||||||||||||||||||||||
J P Morgan Mtg Tr |
| | | US$ | 943 | N/A | US$ | 943 | ||||||||||||||||||||||||
J P Morgan Mtg Tr |
| | | US$ | 938 | N/A | US$ | 938 | ||||||||||||||||||||||||
Jp Morgan Mtg Tr |
| | | US$ | 924 | N/A | US$ | 924 | ||||||||||||||||||||||||
Lb Ubs Coml Mtg Tr |
| | | US$ | 3,318 | N/A | US$ | 3,318 | ||||||||||||||||||||||||
Mbna Cr Card Master Nt Tr |
| | | US$ | 4,449 | N/A | US$ | 4,449 | ||||||||||||||||||||||||
Mastr Asset Backed |
| | | US$ | 3,510 | N/A | US$ | 3,510 |
June 30, 2007 | ||||||||||||||||||||||||||||||||
Market Value or Net | ||||||||||||||||||||||||||||||||
Shares/Units | Carrying Value | Percentage of | Asset Value | |||||||||||||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | Relationship with the Company | Financial Statement Account | (in Thousands) | (US$ in Thousands) | Ownership | (US$ in Thousands) | Note | ||||||||||||||||||||||||
Merrill Lynch Mtg Invs, Inc. |
| Available-for-sale financial assets | | US$ | 5,262 | N/A | US$ | 5,262 | ||||||||||||||||||||||||
Morgan Stanley Ixis Estate Tr |
| | | US$ | 3,113 | N/A | US$ | 3,113 | ||||||||||||||||||||||||
Nomura Asset Accep Corp. |
| | | US$ | 4,138 | N/A | US$ | 4,138 | ||||||||||||||||||||||||
Onyx Accep Owner Tr |
|