Form 20-F þ | Form 40-F o |
Yes o | No þ |
Taiwan Semiconductor Manufacturing Company Ltd. | ||||
Date: August 29, 2005
|
By | /s/ Lora Ho | ||
Lora Ho Vice President & Chief Financial Officer |
- 1 -
2005 | 2004 | |||||||||||||||
ASSETS | Amount | % | Amount | % | ||||||||||||
CURRENT ASSETS |
||||||||||||||||
Cash and cash equivalents (Notes 2, 3 and 4) |
$ | 78,597,384 | 16 | $ | 78,778,150 | 18 | ||||||||||
Short-term investments, net (Notes 2 and 4) |
49,408,608 | 10 | 41,199,013 | 9 | ||||||||||||
Receivables from related parties (Note 18) |
14,999,678 | 3 | 17,983,732 | 4 | ||||||||||||
Notes and accounts receivable |
20,040,283 | 4 | 16,712,863 | 4 | ||||||||||||
Allowance for doubtful receivables (Note 2) |
(978,577 | ) | | (983,077 | ) | | ||||||||||
Allowance for sales returns and others (Note 2) |
(3,945,057 | ) | | (3,019,657 | ) | | ||||||||||
Other receivables from related parties (Note 18) |
1,565,784 | | 147,010 | | ||||||||||||
Other financial assets (Notes 2 and 21) |
1,682,240 | | 664,058 | | ||||||||||||
Inventories, net (Notes 2 and 5) |
14,113,615 | 3 | 11,725,188 | 3 | ||||||||||||
Deferred income tax assets (Notes 2 and 12) |
5,330,000 | 1 | 6,144,000 | 1 | ||||||||||||
Prepaid expenses and other current assets |
1,012,915 | | 1,099,819 | | ||||||||||||
Total current assets |
181,826,873 | 37 | 170,451,099 | 39 | ||||||||||||
LONG-TERM INVESTMENTS (Notes 2, 6, 16 and 20) |
||||||||||||||||
Equity method |
48,351,666 | 10 | 39,606,640 | 9 | ||||||||||||
Cost method |
784,939 | | 716,377 | | ||||||||||||
Long-term bonds |
16,342,005 | 3 | 8,893,477 | 2 | ||||||||||||
Other investments |
10,955,960 | 2 | 3,364,250 | 1 | ||||||||||||
Total long-term investments |
76,434,570 | 15 | 52,580,744 | 12 | ||||||||||||
PROPERTY, PLANT, AND EQUIPMENT (Notes 2, 7 and 18) |
||||||||||||||||
Cost |
||||||||||||||||
Buildings |
88,695,499 | 18 | 72,030,258 | 16 | ||||||||||||
Machinery and equipment |
441,034,330 | 88 | 353,594,669 | 81 | ||||||||||||
Office equipment |
7,586,253 | 1 | 6,486,523 | 2 | ||||||||||||
537,316,082 | 107 | 432,111,450 | 99 | |||||||||||||
Accumulated depreciation |
(330,854,258 | ) | (66 | ) | (275,065,953 | ) | (63 | ) | ||||||||
Advance payments and construction in progress |
18,601,286 | 4 | 43,236,290 | 10 | ||||||||||||
Net property, plant, and equipment |
225,063,110 | 45 | 200,281,787 | 46 | ||||||||||||
GOODWILL (Note 2) |
1,741,951 | | 2,090,341 | | ||||||||||||
OTHER ASSETS |
||||||||||||||||
Deferred charges, net (Notes 2, 8 and 20) |
7,874,553 | 2 | 10,066,618 | 2 | ||||||||||||
Deferred income tax assets (Notes 2 and 12) |
6,313,825 | 1 | 4,169,929 | 1 | ||||||||||||
Refundable deposits |
87,542 | | 26,241 | | ||||||||||||
Assets leased to others, net (Note 2) |
75,746 | | 81,480 | | ||||||||||||
Idle assets (Note 2) |
13,995 | | 78,609 | | ||||||||||||
Total other assets |
14,365,661 | 3 | 14,422,877 | 3 | ||||||||||||
TOTAL |
$ | 499,432,165 | 100 | $ | 439,826,848 | 100 | ||||||||||
2005 | 2004 | |||||||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY | Amount | % | Amount | % | ||||||||||||
CURRENT LIABILITIES |
||||||||||||||||
Accounts payable |
$ | 5,680,946 | 1 | $ | 7,308,388 | 2 | ||||||||||
Payables to related parties (Note 18) |
2,146,317 | | 4,662,001 | 1 | ||||||||||||
Payables to contractors and equipment suppliers |
10,004,328 | 2 | 8,658,321 | 2 | ||||||||||||
Cash dividends and bonus payable (Note 14) |
49,590,312 | 10 | 12,841,599 | 3 | ||||||||||||
Accrued expenses and other current liabilities (Notes 2, 10, 20 and 21) |
8,802,291 | 2 | 10,576,449 | 2 | ||||||||||||
Current portion of bonds payable (Note 9) |
10,500,000 | 2 | 5,000,000 | 1 | ||||||||||||
Total current liabilities |
86,724,194 | 17 | 49,046,758 | 11 | ||||||||||||
LONG-TERM LIABILITIES |
||||||||||||||||
Bonds payable (Note 9) |
19,500,000 | 4 | 30,000,000 | 7 | ||||||||||||
Other long-term payables (Notes 10 and 20) |
1,644,136 | | 2,637,827 | | ||||||||||||
Other payables to related parties (Notes 18 and 20) |
1,727,133 | 1 | 3,622,369 | 1 | ||||||||||||
Total long-term liabilities |
22,871,269 | 5 | 36,260,196 | 8 | ||||||||||||
OTHER LIABILITIES |
||||||||||||||||
Accrued pension cost (Notes 2 and 11) |
3,410,250 | 1 | 2,847,049 | 1 | ||||||||||||
Guarantee deposits (Note 20) |
1,517,584 | | 599,091 | | ||||||||||||
Deferred gain on intercompany transactions (Notes 2 and 18) |
708,941 | | | | ||||||||||||
Total other liabilities |
5,636,775 | 1 | 3,446,140 | 1 | ||||||||||||
Total liabilities |
115,232,238 | 23 | 88,753,094 | 20 | ||||||||||||
SHAREHOLDERS EQUITY (Notes 2, 14, 15 and 16) |
||||||||||||||||
Capital stock $10 par value |
||||||||||||||||
Authorized:
27,050,000 thousand shares in 2005, 24,600,000 thousand shares in 2004 |
||||||||||||||||
Issued: 24,726,129 thousand shares in 2005, 23,376,597 thousand shares in 2004 |
247,261,288 | 50 | 233,765,970 | 53 | ||||||||||||
Capital surplus |
56,720,875 | 11 | 56,885,914 | 13 | ||||||||||||
Retained earnings |
||||||||||||||||
Appropriated as legal reserve |
34,348,208 | 7 | 25,528,007 | 6 | ||||||||||||
Appropriated as special reserve |
2,226,427 | | | | ||||||||||||
Unappropriated earnings |
47,808,698 | 10 | 43,517,207 | 10 | ||||||||||||
Others |
||||||||||||||||
Unrealized loss on long-term investments |
| | (9 | ) | | |||||||||||
Cumulative translation adjustments |
(2,612,996 | ) | (1 | ) | 53,132 | | ||||||||||
Treasury stock (at cost) - 46,862 thousand shares in 2005 and 170,690
thousand shares in 2004 |
(1,552,573 | ) | | (8,676,467 | ) | (2 | ) | |||||||||
Total shareholders equity |
384,199,927 | 77 | 351,073,754 | 80 | ||||||||||||
TOTAL |
$ | 499,432,165 | 100 | $ | 439,826,848 | 100 | ||||||||||
- 2 -
2005 | 2004 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
GROSS SALES (Notes 2 and 18) |
$ | 116,819,058 | $ | 124,982,265 | ||||||||||||
SALES RETURNS AND ALLOWANCES (Note 2) |
2,649,624 | 2,599,819 | ||||||||||||||
NET SALES |
114,169,434 | 100 | 122,382,446 | 100 | ||||||||||||
COST OF SALES (Notes 13 and 18) |
69,315,398 | 61 | 71,514,061 | 59 | ||||||||||||
GROSS PROFIT |
44,854,036 | 39 | 50,868,385 | 41 | ||||||||||||
OPERATING EXPENSES (Notes 13 and 18) |
||||||||||||||||
Research and development |
6,632,293 | 6 | 5,825,173 | 5 | ||||||||||||
General and administrative |
3,743,998 | 3 | 4,635,566 | 3 | ||||||||||||
Marketing |
617,811 | | 733,496 | 1 | ||||||||||||
Total operating expenses |
10,994,102 | 9 | 11,194,235 | 9 | ||||||||||||
INCOME FROM OPERATIONS |
33,859,934 | 30 | 39,674,150 | 32 | ||||||||||||
NON-OPERATING INCOME AND GAINS |
||||||||||||||||
Interest (Notes 2 and 21) |
1,625,725 | 1 | 558,592 | | ||||||||||||
Settlement income (Note 20) |
711,324 | 1 | | | ||||||||||||
Technical service income (Notes 18 and 20) |
186,962 | | 111,096 | | ||||||||||||
Gain on disposal of property, plant, and equipment
(Notes 2 and 18) |
107,395 | | 114,102 | | ||||||||||||
Investment income recognized by equity method, net
(Notes 2 and 6) |
| | 2,053,966 | 2 | ||||||||||||
Gain on sales of investments (Note 2) |
| | 98,644 | | ||||||||||||
Others (Note 18) |
221,233 | | 138,298 | | ||||||||||||
Total non-operating income and gains |
2,852,639 | 2 | 3,074,698 | 2 | ||||||||||||
NON-OPERATING EXPENSES AND LOSSES |
||||||||||||||||
Interest (Notes 2, 7, 9 and 21) |
1,387,359 | 1 | 602,981 | | ||||||||||||
Investment loss recognized by equity method, net
(Notes 2 and 6) |
786,018 | 1 | | | ||||||||||||
Foreign exchange loss, net (Notes 2 and 21) |
197,684 | | 542,591 | | ||||||||||||
Loss on sales of investments, net (Note 2) |
111,808 | | | | ||||||||||||
Loss on idle assets (Note 2) |
106,972 | | | |
- 3 -
2005 | 2004 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Loss on disposal of property, plant and equipment
(Note 2) |
$ | 53,599 | | $ | 32,913 | | ||||||||||
Unrealized valuation loss on short-term investments
(Notes 2 and 4) |
41,467 | | | | ||||||||||||
Others |
29,942 | | 14,405 | | ||||||||||||
Total non-operating expenses and losses |
2,714,849 | 2 | 1,192,890 | | ||||||||||||
INCOME BEFORE INCOME TAX |
33,997,724 | 30 | 41,555,958 | 34 | ||||||||||||
INCOME TAX BENEFIT (Notes 2 and 12) |
1,189,610 | 1 | 642,844 | | ||||||||||||
NET INCOME |
$ | 35,187,334 | 31 | $ | 42,198,802 | 34 | ||||||||||
2005 | 2004 | |||||||||||||||
Before | After | Before | After | |||||||||||||
Income | Income | Income | Income | |||||||||||||
Tax | Tax | Tax | Tax | |||||||||||||
EARNINGS PER SHARE (NT$, Note 17) |
||||||||||||||||
Basic earnings per share |
$ | 1.38 | $ | 1.43 | $ | 1.68 | $ | 1.70 | ||||||||
Diluted earnings per share |
$ | 1.38 | $ | 1.43 | $ | 1.68 | $ | 1.70 | ||||||||
2005 | 2004 | |||||||
NET INCOME |
$ | 35,278,370 | $ | 42,200,461 | ||||
EARNINGS PER SHARE (NT$) |
||||||||
Basic earnings per share |
$ | 1.43 | $ | 1.70 | ||||
Diluted earnings per share |
$ | 1.43 | $ | 1.70 | ||||
The accompanying notes are an integral part of the financial statements. | (Concluded) |
- 4 -
Others | ||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | Unrealized | |||||||||||||||||||||||||||||||||||||||||||
Capital Stocks | Legal | Special | Loss on | Cumulative | Total | |||||||||||||||||||||||||||||||||||||||
Shares (in | Capital | Capital | Capital | Unappropriated | Long-term | Translation | Treasury | Shareholders | ||||||||||||||||||||||||||||||||||||
Thousands) | Amount | Surplus | Reserve | Reserve | Earnings | Total | Investments | Adjustments | Stock | Equity | ||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2005 |
23,251,964 | $ | 232,519,637 | $ | 56,537,259 | $ | 25,528,007 | $ | | $ | 88,202,009 | $ | 113,730,016 | $ | | $ | (2,226,427 | ) | $ | (1,595,186 | ) | $ | 398,965,299 | |||||||||||||||||||||
Appropriations of prior years earnings |
||||||||||||||||||||||||||||||||||||||||||||
Legal capital reserve |
| | | 8,820,201 | | (8,820,201 | ) | | | | | | ||||||||||||||||||||||||||||||||
Special capital reserve |
| | | | 2,226,427 | (2,226,427 | ) | | | | | | ||||||||||||||||||||||||||||||||
Employees profit sharing in cash |
| | | | | (3,086,215 | ) | (3,086,215 | ) | | | | (3,086,215 | ) | ||||||||||||||||||||||||||||||
Employees profit sharing in stock |
308,622 | 3,086,215 | | | | (3,086,215 | ) | (3,086,215 | ) | | | | | |||||||||||||||||||||||||||||||
Cash dividends to common shareholders - 20% |
| | | | | (46,504,097 | ) | (46,504,097 | ) | | | | (46,504,097 | ) | ||||||||||||||||||||||||||||||
Stock dividends to common shareholders - 5% |
1,162,602 | 11,626,024 | | | | (11,626,024 | ) | (11,626,024 | ) | | | | | |||||||||||||||||||||||||||||||
Bonus to directors and supervisors |
| | | | | (231,466 | ) | (231,466 | ) | | | | (231,466 | ) | ||||||||||||||||||||||||||||||
Net income for the six months ended June 30, 2005 |
| | | | | 35,187,334 | 35,187,334 | | | | 35,187,334 | |||||||||||||||||||||||||||||||||
Adjustment arising from changes in ownership percentage
in investees |
| | 4,774 | | | | | | | | 4,774 | |||||||||||||||||||||||||||||||||
Translation adjustments |
| | | | | | | | (386,569 | ) | | (386,569 | ) | |||||||||||||||||||||||||||||||
Employee stock options exercised |
2,941 | 29,412 | 87,806 | | | | | | | | 117,218 | |||||||||||||||||||||||||||||||||
Cash dividends received by subsidiaries from parent
company |
| | 84,285 | | | | | | | | 84,285 | |||||||||||||||||||||||||||||||||
Treasury stock transactions sales of parent company stock
held by subsidiaries |
| | 6,751 | | | | | | | 42,613 | 49,364 | |||||||||||||||||||||||||||||||||
BALANCE, JUNE 30, 2005 |
24,726,129 | $ | 247,261,288 | $ | 56,720,875 | $ | 34,348,208 | $ | 2,226,427 | $ | 47,808,698 | $ | 84,383,333 | $ | | $ | (2,612,996 | ) | $ | (1,552,573 | ) | $ | 384,199,927 | |||||||||||||||||||||
BALANCE, JANUARY 1, 2004 |
20,266,619 | $ | 202,666,189 | $ | 56,855,885 | $ | 20,802,137 | $ | 68,945 | $ | 50,229,008 | $ | 71,100,090 | $ | (35 | ) | $ | 225,408 | $ | (1,633,228 | ) | $ | 329,214,309 | |||||||||||||||||||||
Appropriations of prior years earnings |
||||||||||||||||||||||||||||||||||||||||||||
Legal reserve |
| | | 4,725,870 | | (4,725,870 | ) | | | | | | ||||||||||||||||||||||||||||||||
Reversal of special reserve |
| | | | (68,945 | ) | 68,945 | | | | | | ||||||||||||||||||||||||||||||||
Employees profit sharing in cash |
| | | | | (681,628 | ) | (681,628 | ) | | | | (681,628 | ) | ||||||||||||||||||||||||||||||
Employees profit sharing in stock |
272,651 | 2,726,514 | | | | (2,726,514 | ) | (2,726,514 | ) | | | | | |||||||||||||||||||||||||||||||
Cash dividends to preferred shareholders |
| | | | | (184,493 | ) | (184,493 | ) | | | | (184,493 | ) | ||||||||||||||||||||||||||||||
Cash dividends to common shareholders - 6% |
| | | | | (12,159,971 | ) | (12,159,971 | ) | | | | (12,159,971 | ) | ||||||||||||||||||||||||||||||
Stock dividends to common shareholders - 14% |
2,837,327 | 28,373,267 | | | | (28,373,267 | ) | (28,373,267 | ) | | | | | |||||||||||||||||||||||||||||||
Bonus to directors and supervisors |
| | | | | (127,805 | ) | (127,805 | ) | | | | (127,805 | ) | ||||||||||||||||||||||||||||||
Net income for the six months ended June 30, 2004 |
| | | | | 42,198,802 | 42,198,802 | | | | 42,198,802 |
- 5 -
Others | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized | ||||||||||||||||||||||||||||||||||||||||||||
Capital Stocks | Retained Earnings | Loss on | Cumulative | Total | ||||||||||||||||||||||||||||||||||||||||
Shares (in | Capital | Legal | Special | Unappropriated | Long-term | Translation | Treasury | Shareholders | ||||||||||||||||||||||||||||||||||||
Thousands) | Amount | Surplus | Reserve | Reserve | Earnings | Total | Investments | Adjustments | Stock | Equity | ||||||||||||||||||||||||||||||||||
Adjustment arising from changes in ownership percentage
in investees |
| $ | | $ | 28,370 | $ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | 28,370 | |||||||||||||||||||||||
Reversal of unrealized loss on long term investment of
investees |
| | | | | | | 26 | | | 26 | |||||||||||||||||||||||||||||||||
Translation adjustments |
| | | | | | | | (172,276 | ) | | (172,276 | ) | |||||||||||||||||||||||||||||||
Treasury stock transactions sales of parent company stock
held by subsidiaries |
| | 1,659 | | | | | | | 16,559 | 18,218 | |||||||||||||||||||||||||||||||||
Treasury stock repurchased by the Company |
| | | | | | | | | (7,059,798 | ) | (7,059,798 | ) | |||||||||||||||||||||||||||||||
BALANCE, JUNE 30, 2004 |
23,376,597 | $ | 233,765,970 | $ | 56,885,914 | $ | 25,528,007 | $ | | $ | 43,517,207 | $ | 69,045,214 | $ | (9 | ) | $ | 53,132 | $ | (8,676,467 | ) | $ | 351,073,754 | |||||||||||||||||||||
- 6 -
2005 | 2004 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net income |
$ | 35,187,334 | $ | 42,198,802 | ||||
Adjustments to reconcile net income to net cash provided by operating
activities: |
||||||||
Depreciation and amortization |
34,330,028 | 31,086,443 | ||||||
Loss on idle assets |
106,972 | | ||||||
Deferred income tax |
(1,149,822 | ) | (921,333 | ) | ||||
Investment loss (income) recognized by equity method, net |
786,018 | (2,053,966 | ) | |||||
Gain on sales of long-term investments |
(94 | ) | (2,150 | ) | ||||
Amortization of premium from long-term bond investments |
58,771 | 327 | ||||||
Gain on disposal of property, plant and equipment, net |
(53,796 | ) | (81,189 | ) | ||||
Accrued pension cost |
309,054 | 246,798 | ||||||
Changes in operating assets and liabilities: |
||||||||
Decrease (increase) in: |
||||||||
Receivables from related parties |
1,186,405 | (3,116,070 | ) | |||||
Notes and accounts receivable |
(4,713,402 | ) | (2,795,056 | ) | ||||
Allowance for doubtful receivables |
(1,884 | ) | (32,945 | ) | ||||
Allowance for sales returns and others |
617,143 | 893,632 | ||||||
Other receivables from related parties |
(1,145,538 | ) | (14,047 | ) | ||||
Other financial assets |
287,847 | (120,308 | ) | |||||
Inventories, net |
58,330 | (818,030 | ) | |||||
Prepaid expenses and other current assets |
888,434 | 1,030,139 | ||||||
Increase (decrease) in: |
||||||||
Accounts payable |
(807,671 | ) | 1,224,512 | |||||
Payables to related parties |
(1,619,155 | ) | 161,861 | |||||
Accrued expenses and other current liabilities |
(648,995 | ) | 1,900,027 | |||||
Net cash provided by operating activities |
63,675,979 | 68,787,447 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Decrease (increase) in short-term investments |
3,570,487 | (32,042,407 | ) | |||||
Acquisitions of: |
||||||||
Long-term investments |
(6,418,368 | ) | (9,307,272 | ) | ||||
Property, plant and equipment |
(51,194,392 | ) | (39,179,243 | ) | ||||
Proceeds from disposal of: |
||||||||
Long-term investments |
1,515,356 | 7,552 | ||||||
Property, plant and equipment |
1,430,769 | 250,080 | ||||||
Increase in deferred charges |
(503,079 | ) | (640,653 | ) | ||||
(Increase) decrease in refundable deposits |
(2,129 | ) | 151,138 | |||||
Net cash used in investing activities |
(51,601,356 | ) | (80,760,805 | ) | ||||
- 7 -
2005 | 2004 | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Increase (decrease) in guarantee deposits |
$ | 1,105,191 | $ | (164,398 | ) | |||
Proceeds from exercise of stock options |
117,218 | | ||||||
Bonus to directors and supervisors |
(231,466 | ) | (127,805 | ) | ||||
Repurchase of treasury stock |
| (7,059,798 | ) | |||||
Cash dividend paid for preferred stocks |
| (184,493 | ) | |||||
Net cash provided by (used in) financing activities |
990,943 | (7,536,494 | ) | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
13,065,566 | (19,509,852 | ) | |||||
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD |
65,531,818 | 98,288,002 | ||||||
CASH AND CASH EQUIVALENTS, END OF THE PERIOD |
$ | 78,597,384 | $ | 78,778,150 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
||||||||
Interest paid (excluding the amount capitalized of NT$157,109 thousand
for the six months ended June 30, 2004; please see Note 7) |
$ | 1,029,064 | $ | 268,006 | ||||
Income tax paid |
$ | 87,315 | $ | 11,689 | ||||
NON-CASH INVESTING AND FINANCING ACTIVITIES |
||||||||
Current portion of long-term bonds payable |
$ | 10,500,000 | $ | 5,000,000 | ||||
Current portion of other payables to related parties (under payables to
related parties) |
$ | | $ | 177,161 | ||||
Current portion of other long-term payables (under accrued expenses
and other current liabilities) |
$ | 1,417,437 | $ | 1,757,476 | ||||
Reclassification of short-term investments to long-term investments |
$ | | $ | 3,402,413 | ||||
The accompanying notes are an integral part of the financial statements. | (Concluded) |
- 8 -
-9-
-10-
-11-
-12-
-13-
June 30 | ||||||||
2005 | 2004 | |||||||
Cash and bank deposits |
$ | 48,158,582 | $ | 66,348,727 | ||||
Government bonds acquired under repurchase agreements |
29,804,199 | 10,165,256 | ||||||
Treasury bills |
349,892 | 842,873 | ||||||
Corporate issued notes |
172,291 | 884,533 | ||||||
Agency notes |
112,420 | 435,526 | ||||||
Commercial papers |
| 101,235 | ||||||
$ | 78,597,384 | $ | 78,778,150 | |||||
-14-
June 30 | ||||||||
2005 | 2004 | |||||||
Corporate bonds |
$ | 12,846,798 | $ | 7,190,519 | ||||
Agency bonds |
11,554,410 | 6,974,162 | ||||||
Corporate issued asset-backed securities |
11,482,685 | 6,720,188 | ||||||
Bond funds |
10,140,224 | 9,900,000 | ||||||
Government bonds |
2,750,355 | 7,052,471 | ||||||
Money market funds |
491,465 | | ||||||
Corporate issued notes |
158,052 | | ||||||
Commercial papers |
94,770 | | ||||||
Listed stocks |
6,528 | 6,528 | ||||||
Government bonds acquired under repurchase agreements |
| 3,355,145 | ||||||
49,525,287 | 41,199,013 | |||||||
Allowance for valuation losses |
(116,679 | ) | | |||||
$ | 49,408,608 | $ | 41,199,013 | |||||
Market value |
$ | 49,408,608 | $ | 41,491,242 | ||||
June 30 | ||||||||
2005 | 2004 | |||||||
Finished goods |
$ | 2,600,225 | $ | 2,372,138 | ||||
Work in process |
11,380,115 | 9,213,016 | ||||||
Raw materials |
937,820 | 785,848 | ||||||
Supplies and spare parts |
658,803 | 755,052 | ||||||
15,576,963 | 13,126,054 | |||||||
Allowance for losses |
(1,463,348 | ) | (1,400,866 | ) | ||||
$ | 14,113,615 | $ | 11,725,188 | |||||
-15-
June 30 | ||||||||||||||||
2005 | 2004 | |||||||||||||||
% of | % of | |||||||||||||||
Carrying | Owner- | Carrying | Owner- | |||||||||||||
Amount | ship | Amount | ship | |||||||||||||
Equity method |
||||||||||||||||
TSMC International Investment Ltd. (TSMC
International) |
$ | 23,057,382 | 100 | $ | 23,708,232 | 100 | ||||||||||
TSMC (Shanghai) Company Limited
(TSMC-Shanghai) |
9,967,851 | 100 | 1,758,405 | 100 | ||||||||||||
Vanguard International Semiconductor Corporation
(VIS) |
5,115,164 | 27 | 4,667,952 | 28 | ||||||||||||
TSMC Partners, Ltd. (TSMC Partners) |
3,873,176 | 100 | 4,113,671 | 100 | ||||||||||||
Systems on Silicon Manufacturing Company Pte
Ltd. (SSMC) |
3,514,280 | 32 | 3,181,111 | 32 | ||||||||||||
Emerging Alliance Fund, L.P. (Emerging Alliance) |
820,765 | 99 | 912,982 | 99 | ||||||||||||
TSMC North America (TSMC-North America) |
794,692 | 100 | 474,695 | 100 | ||||||||||||
VentureTech Alliance Fund II, L.P. (VTAF II) |
469,749 | 98 | 165,190 | 98 | ||||||||||||
Global Unichip Corporation (GUC) |
403,208 | 46 | 362,629 | 47 | ||||||||||||
TSMC Japan K. K. (TSMC-Japan) |
95,013 | 100 | 100,521 | 100 | ||||||||||||
Chi Cherng Investment Co., Ltd. (Chi Cherng) |
77,971 | 36 | 42,990 | 36 | ||||||||||||
Hsin Ruey Investment Co., Ltd. (Hsin Ruey) |
77,256 | 36 | 42,673 | 36 | ||||||||||||
VisEra Technologies Company, Ltd. (VisEra) |
62,668 | 25 | 51,825 | 25 | ||||||||||||
Taiwan Semiconductor Manufacturing Company
Europe B.V. (TSMC-Europe) |
22,491 | 100 | 23,764 | 100 | ||||||||||||
48,351,666 | 39,606,640 | |||||||||||||||
Cost method |
||||||||||||||||
Non-publicly traded stocks |
482,500 | | 432,500 | | ||||||||||||
Funds |
302,439 | | 283,877 | | ||||||||||||
784,939 | 716,377 | |||||||||||||||
Long-term bonds |
||||||||||||||||
Government bonds |
11,817,146 | 8,893,477 | ||||||||||||||
Corporate bonds |
||||||||||||||||
China Steel Corporation |
2,936,934 | | ||||||||||||||
Taiwan Power Company |
908,645 | | ||||||||||||||
Nan Ya Plastics Corporation |
272,612 | | ||||||||||||||
Formosa Plastics Corporation |
271,181 | | ||||||||||||||
Formosa Chemical & Fiber Corporation |
135,487 | | ||||||||||||||
16,342,005 | 8,893,477 | |||||||||||||||
Other investments |
10,955,960 | 3,364,250 | ||||||||||||||
$ | 76,434,570 | $ | 52,580,744 | |||||||||||||
-16-
Principal | Interests | Range of | ||||||||||||||
Amount | Receivable | Interest Rates | Maturity Date | |||||||||||||
June 30,
2005 |
||||||||||||||||
Step-up callable deposits |
||||||||||||||||
Domestic bank |
$ | 2,000,000 | $ | 7,624 | 2.05-2.20 | % | Jul. 2007 to Aug. 2007 | |||||||||
Foreign bank |
2,000,000 | 10,403 | 1.40-2.44 | % | Jul. 2006 to Jul. 2007 | |||||||||||
Callable range accrual deposits |
||||||||||||||||
Foreign bank |
6,955,960 | 20,237 | (See below) | Sep. 2009 to Jan. 2010 | ||||||||||||
$ | 10,955,960 | $ | 38,264 | |||||||||||||
June 30, 2004 |
||||||||||||||||
Step-up callable deposits |
||||||||||||||||
Foreign bank |
$ | 3,364,250 | $ | 2,474 | 1.44%-3.25 | % | Jun. 2007 to Jun. 2009 | |||||||||
June 30 | ||||||||
2005 | 2004 | |||||||
Buildings |
$ | 39,229,473 | $ | 32,452,205 | ||||
Machinery and equipment |
286,453,058 | 238,344,951 | ||||||
Office equipment |
5,171,727 | 4,268,797 | ||||||
$ | 330,854,258 | $ | 275,065,953 | |||||
-17-
June 30 | ||||||||
2005 | 2004 | |||||||
Technology license fees |
$ | 5,836,060 | $ | 7,518,432 | ||||
Software and system design costs |
1,942,091 | 2,444,985 | ||||||
Other |
96,402 | 103,201 | ||||||
$ | 7,874,553 | $ | 10,066,618 | |||||
June 30 | ||||||||
2005 | 2004 | |||||||
Domestic unsecured bonds: |
||||||||
Issued in October 1999 and repayable in October 2004, 5.95%
interest
payable annually |
$ | | $ | 5,000,000 | ||||
Issued in December 2000 and repayable in December 2005 and 2007
in two payments, 5.25% and 5.36% interest payable annually,
respectively |
15,000,000 | 15,000,000 | ||||||
Issued in January 2002 and repayable in January 2007, 2009 and
2012 in three payments, 2.60%, 2.75% and 3% interest payable
annually, respectively |
15,000,000 | 15,000,000 | ||||||
$ | 30,000,000 | $ | 35,000,000 | |||||
Year of Repayment | Amount | |||
2005 (3rd to 4th quarter) |
$ | 10,500,000 | ||
2007 |
7,000,000 | |||
2009 |
8,000,000 | |||
2010 and thereafter |
4,500,000 | |||
30,000,000 | ||||
Current portion |
(10,500,000 | ) | ||
$ | 19,500,000 | |||
-18-
Year of Repayment | Amount | |||
2005 (3rd to 4th quarter) |
$ | 1,144,732 | ||
2006 |
462,413 | |||
2007 |
442,652 | |||
2008 |
252,944 | |||
2009 |
252,944 | |||
2010 and thereafter |
505,888 | |||
3,061,573 | ||||
Current portion (under accrued expenses and other current liabilities) |
(1,417,437 | ) | ||
$ | 1,644,136 | |||
Six Months Ended June 30 | ||||||||
2005 | 2004 | |||||||
The Fund |
||||||||
Balance, beginning of period |
$ | 1,428,001 | $ | 1,191,702 | ||||
Contribution |
122,103 | 116,844 | ||||||
Interest |
15,629 | 15,562 | ||||||
Payment |
(8,419 | ) | | |||||
Balance, end of period |
$ | 1,557,314 | $ | 1,324,108 | ||||
Accrued pension cost |
||||||||
Balance, beginning of period |
$ | 3,101,196 | $ | 2,600,251 | ||||
Accruals |
309,054 | 246,798 | ||||||
Balance, end of period |
$ | 3,410,250 | $ | 2,847,049 | ||||
-19-
a. | A reconciliation of income tax expense based on income before income tax at statutory rate and current income tax expense before income tax credits was as follows: |
Six Months Ended June 30 | ||||||||
2005 | 2004 | |||||||
Income tax expense based on income before income tax at
statutory rate (25%) |
$ | (8,499,431 | ) | $ | (10,388,989 | ) | ||
Tax-exempt income |
4,734,183 | 6,233,394 | ||||||
Temporary and permanent differences |
(635,273 | ) | (294,984 | ) | ||||
Current income tax expense before income tax credits |
$ | (4,400,521 | ) | $ | (4,450,579 | ) | ||
b. | Income tax benefit consisted of the following: |
Current income tax expense before income tax credits |
$ | (4,400,521 | ) | $ | (4,450,579 | ) | ||
Additional tax at 10% on unappropriated earnings |
(1,489,709 | ) | (821,767 | ) | ||||
Income tax credits |
5,890,230 | 5,272,346 | ||||||
Other income tax adjustments |
39,788 | (278,489 | ) | |||||
Net change in deferred income tax assets |
||||||||
Investment tax credits |
2,512,133 | (883,812 | ) | |||||
Temporary differences |
1,708,642 | 528,349 | ||||||
Net change in valuation allowance of deferred income tax assets |
(3,070,953 | ) | 1,276,796 | |||||
Income tax benefit |
$ | 1,189,610 | $ | 642,844 | ||||
c. | Deferred income tax assets (liabilities) consisted of the following: |
June 30 | ||||||||
2005 | 2004 | |||||||
Current deferred income tax assets |
||||||||
Investment tax credits |
$ | 5,330,000 | $ | 6,144,000 | ||||
Noncurrent deferred income tax assets, net |
||||||||
Investment tax credits |
$ | 23,066,717 | $ | 18,622,082 | ||||
Temporary differences |
(741,893 | ) | (2,957,102 | ) | ||||
Valuation allowance |
(16,010,999 | ) | (11,495,051 | ) | ||||
$ | 6,313,825 | $ | 4,169,929 | |||||
d. | Integrated income tax information: | |
The balance of the imputation credit account (ICA) as of June 30, 2005 and 2004 was NT$15,569 thousand and NT$347 thousand, respectively. | ||
The expected and actual creditable ratios for distribution of earnings of 2004 and 2003 were 0.11% and 0.03%, respectively. | ||
The imputation credit allocated to the shareholders is based on its balance as of the date of dividend distribution. The expected creditable ratio may be adjusted when the actual distribution of the imputation credits is made. |
-20-
e. | All earnings generated prior to December 31, 1997 have been appropriated. | |
f. | As of June 30, 2005, investment tax credits consisted of the following: |
Total | Remaining | |||||||||||||||
Creditable | Creditable | Expiry | ||||||||||||||
Regulation | Item | Amount | Amount | Year | ||||||||||||
Statute for Upgrading |
Purchase of machinery and |
$ | 134,467 | $ | | 2005 | ||||||||||
Industries |
equipment |
4,886,421 | 2,325,728 | 2006 | ||||||||||||
4,139,371 | 4,139,371 | 2007 | ||||||||||||||
11,007,440 | 11,007,440 | 2008 | ||||||||||||||
2,189,404 | 2,189,404 | 2009 | ||||||||||||||
$ | 22,357,103 | $ | 19,661,943 | |||||||||||||
Statute for Upgrading |
Research and development |
$ | 3,127,586 | $ | | 2005 | ||||||||||
Industries |
expenditures |
3,346,930 | 3,346,930 | 2006 | ||||||||||||
1,976,913 | 1,976,913 | 2007 | ||||||||||||||
2,332,557 | 2,332,557 | 2008 | ||||||||||||||
987,076 | 987,076 | 2009 | ||||||||||||||
$ | 11,771,062 | $ | 8,643,476 | |||||||||||||
Statute for Upgrading |
Personnel training |
$ | 29,448 | $ | | 2005 | ||||||||||
Industries |
27,311 | 27,311 | 2006 | |||||||||||||
26,780 | 26,780 | 2007 | ||||||||||||||
37,207 | 37,207 | 2008 | ||||||||||||||
$ | 120,746 | $ | 91,298 | |||||||||||||
Statute for Upgrading |
Investments in important |
$ | 38,036 | $ | | 2005 | ||||||||||
Industries |
technology-based enterprises |
g. | The sales generated from the following expansion and construction of the Companys manufacturing plants are exempt from income tax: |
Tax-Exemption Period | ||
Construction of Fab 8 module B
|
2002 to 2005 | |
Expansion of Fab 2 modules A and B, Fab 3, Fab 4, Fab 5 and Fab 6
|
2003 to 2006 | |
Construction of Fab 12
|
2004 to 2007 |
h. | The tax authorities have examined income tax returns of the Company through 2001. |
-21-
Six Months Ended June 30, 2005 | ||||||||||||
Classified as | ||||||||||||
Classified as | Operating | |||||||||||
Cost of Sales | Expenses | Total | ||||||||||
Labor cost |
||||||||||||
Salary |
$ | 4,091,113 | $ | 1,678,438 | $ | 5,769,551 | ||||||
Labor and health insurance |
303,436 | 144,065 | 447,501 | |||||||||
Pension |
295,506 | 140,296 | 435,802 | |||||||||
Meal |
208,186 | 67,904 | 276,090 | |||||||||
Welfare benefit |
72,159 | 40,344 | 112,503 | |||||||||
Other |
51,139 | 45,032 | 96,171 | |||||||||
$ | 5,021,539 | $ | 2,116,079 | $ | 7,137,618 | |||||||
Depreciation |
$ | 31,158,607 | $ | 1,489,769 | $ | 32,648,376 | ||||||
Amortization |
$ | 814,069 | $ | 859,118 | $ | 1,673,187 | ||||||
Six Months Ended June 30, 2004 | ||||||||||||
Classified as | ||||||||||||
Classified as | Operating | |||||||||||
Cost of Sales | Expenses | Total | ||||||||||
Labor cost |
||||||||||||
Salary |
$ | 4,166,565 | $ | 2,020,169 | $ | 6,186,734 | ||||||
Labor and health insurance |
269,132 | 148,662 | 417,794 | |||||||||
Pension |
235,293 | 129,935 | 365,228 | |||||||||
Meal |
177,762 | 67,846 | 245,608 | |||||||||
Welfare benefit |
72,239 | 43,496 | 115,735 | |||||||||
Other |
60,436 | 243,058 | 303,494 | |||||||||
$ | 4,981,427 | $ | 2,653,166 | $ | 7,634,593 | |||||||
Depreciation |
$ | 27,377,787 | $ | 1,193,473 | $ | 28,571,260 | ||||||
Amortization |
$ | 1,381,976 | $ | 1,123,581 | $ | 2,505,557 | ||||||
-22-
June 30 | ||||||||
2005 | 2004 | |||||||
From merger |
$ | 24,003,546 | $ | 24,132,297 | ||||
Additional paid-in capital |
23,139,481 | 23,172,550 | ||||||
From convertible bonds |
9,360,424 | 9,410,632 | ||||||
From long-term investments |
126,128 | 115,665 | ||||||
From treasury stock transactions |
91,241 | 54,715 | ||||||
Donations |
55 | 55 | ||||||
$ | 56,720,875 | $ | 56,885,914 | |||||
a. | Legal capital reserve at 10% of the profits left over, until the accumulated legal capital reserve has equaled the Companys total 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 supervisors and bonus to employees of the Company equal to 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 and supervisors. 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. |
-23-
Dividends Per Share | ||||||||||||||||
Appropriation of Earnings | (NT$) | |||||||||||||||
For Fiscal | For Fiscal | For Fiscal | For Fiscal | |||||||||||||
Year 2004 | Year 2003 | Year 2004 | Year 2003 | |||||||||||||
Legal capital reserve |
$ | 8,820,201 | $ | 4,725,870 | ||||||||||||
Special capital reserve |
2,226,427 | (68,945 | ) | |||||||||||||
Employees profit sharing in cash |
3,086,215 | 681,628 | ||||||||||||||
Employees profit sharing in stock |
3,086,215 | 2,726,514 | ||||||||||||||
Cash dividends to preferred shareholders |
| 184,493 | $ | | $ | 0.35 | ||||||||||
Cash dividends to common shareholders |
46,504,097 | 12,159,971 | 2.00 | 0.60 | ||||||||||||
Stock dividends to common shareholders |
11,626,024 | 28,373,267 | 0.50 | 1.41 | ||||||||||||
Bonus to directors and supervisors |
231,466 | 127,805 | ||||||||||||||
$ | 75,580,645 | $ | 48,910,603 | |||||||||||||
-24-
Weighted- | ||||||||
Average | ||||||||
Number of | Exercise | |||||||
Options | Price | |||||||
(in Thousands) | (NT$) | |||||||
Six
months ended June 30, 2005 |
||||||||
Beginning balance |
64,367 | $ | 40.5 | |||||
Options granted |
14,864 | 48.4 | ||||||
Options exercised |
(2,941 | ) | 39.9 | |||||
Options cancelled |
(2,931 | ) | 42.7 | |||||
Ending balance |
73,359 | 42.1 | ||||||
Six
months ended June 30, 2004 |
||||||||
Beginning balance |
49,357 | $ | 43.0 | |||||
Options granted |
20,091 | 47.4 | ||||||
Options cancelled |
(2,510 | ) | 45.1 | |||||
Ending balance |
66,938 | 44.2 | ||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||
average | average | average | ||||||||||||||||||
Range of | Number of | Remaining | Exercise | Number of | Exercise | |||||||||||||||
Exercise | Options (in | Contractual | Price | Options (in | Price | |||||||||||||||
Price (NT$) | Thousands) | Life (Years) | (NT$) | Thousands) | (NT$) | |||||||||||||||
29.9-42.1 |
50,195 | 7.60 | 38.8 | 25,032 | 38.8 | |||||||||||||||
47.0-54.5 |
23,164 | 9.33 | 49.2 | | | |||||||||||||||
73,359 | 25,032 | |||||||||||||||||||
-25-
Six Months Ended June 30 | ||||||||
2005 | 2004 | |||||||
Assumptions: |
||||||||
Expected dividend yield |
1.00%-3.44 | % | 1.00 | % | ||||
Expected volatility |
43.77%-46.15 | % | 43.19%-43.25 | % | ||||
Risk free interest rate |
3.07%-3.85 | % | 3.07%-3.85 | % | ||||
Expected life |
5 years | 5 years | ||||||
Net income: |
||||||||
Net income as reported |
$ | 35,187,334 | $ | 42,198,802 | ||||
Pro forma net income |
35,140,859 | 42,184,898 | ||||||
Earnings per share (EPS) after income tax (NT$): |
||||||||
Basic EPS as reported |
$ | 1.43 | $ | 1.70 | ||||
Pro forma basic EPS |
1.42 | 1.70 | ||||||
Diluted EPS as reported |
1.43 | 1.70 | ||||||
Pro forma diluted EPS |
1.42 | 1.70 |
(Shares in Thousands) | ||||||||||||||||
Beginning | Increase/ | Ending | ||||||||||||||
Shares | Distribute | Decrease | Shares | |||||||||||||
Six
months ended June 30, 2005 |
||||||||||||||||
Reclassification of parent company stock held by
subsidiaries from long-term investments |
45,521 | 2,242 | 901 | 46,862 | ||||||||||||
Six
months ended June 30, 2004 |
||||||||||||||||
Reclassification of parent company stock held by
subsidiaries from long-term investments |
40,597 | 5,676 | 303 | 45,970 | ||||||||||||
Repurchase under share buyback plan |
| 124,720 | | 124,720 | ||||||||||||
40,597 | 130,396 | 303 | 170,690 | |||||||||||||
-26-
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, 2005 |
||||||||||||||||||||
Basic EPS |
||||||||||||||||||||
Income available to common shareholders |
$ | 33,997,724 | $ | 35,187,334 | 24,676,592 | $ | 1.38 | $ | 1.43 | |||||||||||
Effect of dilutive potential common stock stock
options |
| | 10,537 | |||||||||||||||||
Diluted EPS |
||||||||||||||||||||
Income available to common shareholders (including
effect of dilutive potential common stock) |
$ | 33,997,724 | $ | 35,187,334 | 24,687,129 | $ | 1.38 | $ | 1.43 | |||||||||||
Six
months ended June 30, 2004 |
||||||||||||||||||||
Basic EPS |
||||||||||||||||||||
Income available to common shareholders |
$ | 41,555,958 | $ | 42,198,802 | 24,760,690 | $ | 1.68 | $ | 1.70 | |||||||||||
Effect of dilutive potential common stock stock
options |
| | 9,703 | |||||||||||||||||
Diluted EPS |
||||||||||||||||||||
Income available to common shareholders (including
effect of dilutive potential common stock) |
$ | 41,555,958 | $ | 42,198,802 | 24,770,393 | $ | 1.68 | $ | 1.70 | |||||||||||
a. | Industrial Technology Research Institute (ITRI), the chairman of the Company is one of its directors. | |
b. | Philips, a major shareholder of the Company. | |
c. | Subsidiaries |
d. | Investees |
-27-
e. | Indirect subsidiaries |
2005 | 2004 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
For the
six months ended June 30 |
||||||||||||||||
Sales |
||||||||||||||||
TSMC-North America |
$ | 64,760,945 | 56 | $ | 68,191,878 | 55 | ||||||||||
Philips and its affiliates |
1,147,115 | 1 | 2,712,508 | 2 | ||||||||||||
Others |
186,880 | | 205,544 | | ||||||||||||
$ | 66,094,940 | 57 | $ | 71,109,930 | 57 | |||||||||||
Purchases |
||||||||||||||||
WaferTech |
$ | 5,117,622 | 31 | $ | 7,505,754 | 35 | ||||||||||
VIS |
2,168,998 | 13 | 4,247,055 | 19 | ||||||||||||
SSMC |
2,094,617 | 13 | 3,050,439 | 14 | ||||||||||||
TSMC-Shanghai |
234,333 | 1 | | | ||||||||||||
$ | 9,615,570 | 58 | $ | 14,803,248 | 68 | |||||||||||
Manufacturing
expenses technical assistance fees Philips (Note 20a) |
$ | 202,334 | | $ | 808,072 | 1 | ||||||||||
Marketing expenses commission |
||||||||||||||||
TSMC-Japan |
$ | 133,765 | 22 | $ | 139,243 | 19 | ||||||||||
TSMC-Europe |
116,034 | 19 | 105,175 | 14 | ||||||||||||
$ | 249,799 | 41 | $ | 244,418 | 33 | |||||||||||
General and administrative expenses rental expense |
||||||||||||||||
GUC |
$ | 8,162 | | $ | | | ||||||||||
Proceeds from disposal of property, plant and equipment |
||||||||||||||||
TSMC-Shanghai |
$ | 106,412 | 38 | $ | | | ||||||||||
VIS |
| | 32,960 | 13 | ||||||||||||
$ | 106,412 | 38 | $ | 32,960 | 13 | |||||||||||
Non-operating income and gains |
||||||||||||||||
SSMC (primarily technical service income, see
Note 20f) |
$ | 146,655 | 5 | $ | 149,362 | 5 | ||||||||||
VIS (primarily technical service income, see Note
20k) |
77,504 | 3 | 29,763 | 1 | ||||||||||||
TSMC-Shanghai (primarily from deferred gain
realized
for disposal of property, plant and equipment) |
75,743 | 3 | | | ||||||||||||
Others |
10,752 | | 2,076 | | ||||||||||||
$ | 310,654 | 11 | $ | 181,201 | 6 | |||||||||||
-28-
2005 | 2004 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
At end of June 30 |
||||||||||||||||
Receivables |
||||||||||||||||
TSMC-North America |
$ | 14,513,699 | 97 | $ | 16,954,566 | 94 | ||||||||||
Philips and its affiliates |
467,843 | 3 | 922,713 | 5 | ||||||||||||
Others |
18,136 | | 106,453 | 1 | ||||||||||||
$ | 14,999,678 | 100 | $ | 17,983,732 | 100 | |||||||||||
Other receivables |
||||||||||||||||
TSMC-Technology |
$ | 715,306 | 46 | $ | 3,852 | 3 | ||||||||||
TSMC-North America |
415,650 | 27 | 74,721 | 51 | ||||||||||||
TSMC-Shanghai |
271,905 | 17 | | | ||||||||||||
SSMC |
115,460 | 7 | 60,028 | 41 | ||||||||||||
Others |
47,463 | 3 | 8,409 | 5 | ||||||||||||
$ | 1,565,784 | 100 | $ | 147,010 | 100 | |||||||||||
Payables |
||||||||||||||||
VIS |
$ | 883,144 | 41 | $ | 1,844,800 | 40 | ||||||||||
WaferTech |
793,200 | 37 | 1,296,351 | 28 | ||||||||||||
SSMC |
284,080 | 13 | 685,240 | 15 | ||||||||||||
TSMC-Shanghai |
70,080 | 3 | | | ||||||||||||
Philips and its affiliates |
| | 745,428 | 16 | ||||||||||||
Others |
115,813 | 6 | 90,182 | 1 | ||||||||||||
$ | 2,146,317 | 100 | $ | 4,662,001 | 100 | |||||||||||
Other long-term payables |
||||||||||||||||
Philips and its affiliates |
$ | 1,727,133 | 100 | $ | 3,622,369 | 100 | ||||||||||
Deferred gain on intercompany transactions |
||||||||||||||||
TSMC-Shanghai (disposal of property, plant and
equipment) |
$ | 708,941 | 100 | $ | | | ||||||||||
-29-
Year | Amount | |||
2005 (3rd to 4th quarter) |
$ | 129,503 | ||
2006 |
251,415 | |||
2007 |
251,415 | |||
2008 |
233,250 | |||
2009 |
227,195 | |||
2010 and thereafter |
1,292,511 | |||
$ | 2,385,289 | |||
a. | On June 20, 2004, the Company and Philips revised the Technical Cooperation Agreement, which was originally signed on May 12, 1997, with an effective date from January 1, 2004 for five years. Upon expiration, this amended Technical Cooperation Agreement will be terminated at the expiration date and will not be automatically renewed. Under this amended Technical Cooperation Agreement, the Company will pay Philips royalties based on a fixed amounts mutually agreed-on, rather than under certain percentage of the Companys annual net sales. The Company and Philips agree to cross license the patents owned by each party. The Company also obtained through Philips a number of patent cross licenses. |
b. | Under a technical cooperation agreement with ITRI, the Company shall reserve and allocate up to 35% of certain of its production capacity for use by the Ministry of Economic Affairs (MOEA) or any other party designated by the MOEA. The term of this agreement is for five years beginning 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 and 1997 and on January 1, 2002. |
c. | On October 28, 1992, the Company entered into a letter agreement with Philips under which Philips has an option on up to 30% of the Companys capacity as agreed in the agreement on most favored terms and conditions for similar orders, as long as Philips and its affiliates shareholding in the Company remains at 24.8% or higher. As of June 30, 2005, Philips and its affiliates shareholding in the Company is 18.74%. |
d. | 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, 2005, the Company had a total of US$47,868 thousand of guarantee deposits. |
e. | 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, for the purpose of constructing an integrated circuit foundry in Singapore. As of June 30, 2005, the Companys equity interest in SSMC was 32%. The Company and Philips committed to buy specific percentages of the production capacity of SSMC. The Company and Philips are required, in the aggregate, to purchase up to 70% of SSMCs full capacity, but the Company along is not required to purchase more than 28% of the annual installed capacity. If any party defaults on the commitment and the capacity utilization of SSMC fall below a specific percentage of its total capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. |
-30-
f. | 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 certain 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. |
g. | 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 notice for early termination under certain conditions. In January 2003, the Company and National entered into a Termination Agreement whereby the TTA was terminated for convenience. 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. |
h. | Beginning in 2001, the Company entered into several licensing arrangements for certain semiconductor patents. The terms of the contracts range from five to ten years with payments to be made in the form of royalties over the term of the related contracts. The Company has recorded the related amounts as a liability with the corresponding amounts recorded as deferred charges which are amortized and charged to cost of sales on a straight-line basis over the estimated life of the technology or the term of the contract, whichever is shorter. |
i. | In November 2002, the Company entered into an Amended and Restated Joint Technology Cooperation Agreement with Philips, Freescale Semiconductor, Inc. and STMicroelectronics to jointly develop 90-nm to 65-nm advanced CMOS Logic and e-DRAM technologies. The Company also agreed to align 0.12 micron CMOS Logic technology to enhance its foundry business opportunities. The Company will contribute process technologies and share a portion of the costs associated with this joint development project. |
j. | 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. |
k. | The Company provides a technology transfer to VIS under a Manufacturing License and Technology Transfer Agreement entered into in August 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. |
l. | Amounts available under unused letters of credit as of June 30, 2005 were NT$6,480 thousand. |
m. | The Company provided guarantees on loans amounting to US$30,000 thousand and US$40,000 thousand for TSMC Development, Inc. (TSMC Development) and TSMC-North America, respectively. |
n. | TSMC, TSMC-North America and WaferTech filed a series of lawsuits in late 2003 and 2004 in both state and federal courts in California and with the U.S. International Trade Commission 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 have been settled out of court on January 30, 2005. As part of the settlement, SMIC will pay TSMC US$175 million over six years to resolve TSMCs patent infringement and trade secret claims. |
-31-
a. | Financing provided: Please see Table 1 attached; | |
b. | Endorsement/guarantee provided: Please see Table 2 attached; | |
c. | Marketable securities held: Please see Table 3 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 4 attached; | |
e. | Acquisition of individual real estate properties at costs of at least NT$100 million or 20% of the paid-in capital: None; | |
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 5 attached; | |
h. | Receivable from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 6 attached; | |
i. | Names, locations, and related information of investees on which the Company exercises significant influence: Please see Table 7 attached; | |
j. | Financial instrument transactions: |
1) | Derivative financial instruments | ||
The Company entered into derivative financial instrument transactions during the six months ended June 30, 2005 and 2004 to manage exposures related to foreign-exchange rate and interest rate fluctuations. Certain information on these contracts was as follows: |
a) | Outstanding forward exchange contracts as of June 30, 2005 and 2004 |
Contract | ||||||
Financial | Amount | |||||
Instruments | Currency | Maturity | (in Thousands) | |||
June 30, 2005 |
||||||
Sell
|
US$/NT$ | Jul. 2005 to Aug. 2005 | US$103,000 | |||
June 30,
2004 |
||||||
Sell
|
US$/NT$ | July. 2004 to Apr. 2005 | US$2,158,000 | |||
Sell
|
EUR/US$ | Aug. 2004 | EUR 20,000 |
As of June 30, 2005 and 2004, payables from forward exchange contracts (included in the other current liabilities account) aggregated NT$38,173 thousand and NT$903,322 thousand, respectively. |
-32-
b) | Cross currency swap contracts | ||
Outstanding cross currency swap contracts as of June 30, 2005 were as follows: |
Range of | ||||||
Contract Amount | Range of | Interest Rate | ||||
Maturity Date | (in Thousands) | Interest Rate Paid | Received | |||
Jul. 2005 to Aug. 2005
|
US$2,045,000 | 3.10%-3.40% | 1.03%-1.22% | |||
(US$/NT$) |
The Company did not enter into any cross currency swap contracts during the six months ended June 30, 2004. | |||
As of June 30, 2005, payables resulted from cross currency swap contracts (included in the other current liabilities account) were NT$705,607 thousand. | |||
During the six months ended June 30, 2005 and 2004, the net exchange gain or loss arising from forward exchange contracts and cross currency swap contracts was recognized in the foreign exchange loss, net account and the difference in interest was recorded in interest income or expense. | |||
c) | Interest rate swap contracts | ||
The Company rescinded all outstanding interest rate swap contracts during the three months ended March 31, 2005 before their original maturities. The rescission loss of NT$28,295 thousand was recognized in the interest expense account. There were no outstanding contracts at June 30, 2005. | |||
Outstanding contracts as of June 30, 2004 were as follows: |
Contract | ||||
Amount | ||||
Contract Date | Period | (in Thousands) | ||
Sep. 2003
|
Sep. 2003 to Dec. 2005 | NT$ 500,000 | ||
Oct. 2003
|
Oct. 2003 to Dec. 2005 | NT$ 500,000 | ||
Oct. 2003
|
Oct. 2003 to Dec. 2005 | NT$ 500,000 | ||
Oct. 2003
|
Oct. 2003 to Dec. 2005 | NT$ 500,000 | ||
Oct. 2003
|
Oct. 2003 to Dec. 2005 | NT$ 500,000 | ||
Nov. 2003
|
Nov. 2003 to Dec. 2005 | NT$ 500,000 |
d) | Transaction risk |
i) | Credit risk. Credit risk represents the positive net settlement amount of those contracts with positive fair values at the balance sheet date. The positive net settlement amount represents the loss to be incurred by the Company if the counter-parties breached the contracts. The banks, which are the counter-parties to the foregoing derivative financial instruments, are reputable financial institutions. Management believes its exposure related to the potential default by those counter-parties is low. | ||
ii) | Market price risk. All derivative financial instruments are intended as hedges for fluctuations in foreign exchange rates and interest rates. Gains or losses from these hedging instruments are likely to be offset by gains or losses from the hedged items. Thus, market price risk is believed to be low. |
-33-
iii) | Cash flow risk and the amount and period of future cash needs. | ||
As of June 30, 2005, the Companys future cash needs for outstanding forward exchange contracts and cross currency swap contracts were as follows: |
Inflow | Outflow | |||||||
Term | (in Thousands) | (in Thousands) | ||||||
Within one year |
NT$67,304,233 | US$ | 2,148,000 |
The Company has sufficient operating capital to meet the above cash needs. In addition, there will be corresponding cash inflow for the cash outflow. Therefore, the cash flow risk is low. |
2) | Fair values of financial instruments were as follows: |
June 30, 2005 | June 30, 2004 | |||||||||||||||
Carrying | Carrying | |||||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
Non-derivative financial
instruments |
||||||||||||||||
Assets |
||||||||||||||||
Short-term investments |
$ | 49,408,608 | $ | 49,408,608 | $ | 41,199,013 | $ | 41,491,242 | ||||||||
Long-term investments
(securities with market
price) |
32,451,393 | 39,638,685 | 16,928,153 | 23,154,967 | ||||||||||||
Liabilities
Bonds payable (including
current portion) |
30,000,000 | 30,429,929 | 35,000,000 | 35,729,923 | ||||||||||||
Derivative
financial instruments |
||||||||||||||||
Assets (liabilities) |
||||||||||||||||
Forward exchange contracts
(sell) |
(39,969 | ) | (36,560 | ) | (761,592 | ) | (538,407 | ) | ||||||||
Cross currency swap
contracts |
(674,894 | ) | (452,530 | ) | | | ||||||||||
Interest rate swap contracts |
| | | (26,956 | ) |
The above financial instruments do not include cash and cash equivalents, receivables, other financial assets, payables, and payable to contractors and equipment suppliers. The carrying amounts of the aforementioned financial instruments reported in the balance sheet approximate their fair values. | |||
The above financial instruments also exclude refundable deposits, guarantee deposits, long-term investments that do not have quoted market prices as well as other long-term payables. The future cash inflow and outflow of the deposits approximate their fair values. Some of long-term investments do not have quoted market prices; therefore, fair values for those long-term investments are not shown above. The fair value of other long-term payables is determined using the discounted value of expected cash flows, which approximates their carrying amount. |
-34-
Fair values of financial instruments were determined as follows: |
a) | Fair value of short-term and publicly traded long-term investments is based on quoted market prices. | ||
b) | Fair value of bonds payable is based on their quoted market price. | ||
c) | Fair value of derivative financial instruments is the amount receivable from or payable to the counter-party if the contracts were terminated on the balance sheet date. |
The fair values of some financial and non-financial instruments were not included in the fair values disclosed above. Accordingly, the sum of the fair values of the financial instruments listed above does not represent the fair value of the Company as a whole. |
k. | Information on investment in Mainland China |
1) | The name of the investee company in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, ratio of ownership, equity in the net gain or net loss, ending balance, amount received as earnings distributions from the investment, and the limitation on investment: Please see Table 8 attached. | ||
2) | Significant direct or indirect transactions with the investee company, 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 18. |
-35-
Financing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum | Companys | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Financing | Financing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
for the | Ending | Limit for | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Account | Period | Balance | Type of | Reasons for | Allowance | Each | Limits | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial | (US$ in | (US$ in | Interest | Financing | Transaction | Short-term | for | Collateral | Borrowing | (US$ in | ||||||||||||||||||||||||||||||||||||||||||||||
No. | Financing Name | Counter-party | Statement | Thousand) | Thousand) | Rate | (Note 1) | Amounts | Financing | Bad Debt | Item | Value | Company | Thousand) | ||||||||||||||||||||||||||||||||||||||||||
1 |
TSMC International | TSMC Development | Other receivables | $ | 1,897,080 | $ | 1,897,080 | 1.5 | % | 2 | $ | | Operating capital | $ | | | $ | | N/A | $ | 31,237,580 | |||||||||||||||||||||||||||||||||||
(US$60,000 | ) | (US$60,000 | ) | (US$987,968 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Note 2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 |
TSMC Partners | TSMC Development | Other receivables | 2,529,440 | 948,540 | 1.5 | % | 2 | | Operating capital | | | | N/A | (Note 3 | ) | ||||||||||||||||||||||||||||||||||||||||
(US$80,000 | ) | (US$30,000 | ) |
Note 1:
|
The No. 2 represents necessary for short-term financing. | |
Note 2:
|
Not exceeding the issued capital of the Company. | |
Note 3:
|
Generally not exceeding the issued capital of the Company, unless approved by all members of the board. |
-36-
Ratio of | ||||||||||||||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||||||||||||||
Amount of | ||||||||||||||||||||||||||||||||||||||||
Counter-party | Maximum | Value of | Collateral to Net | Maximum | ||||||||||||||||||||||||||||||||||||
Endorsement/ | Nature of | Limits on Each | Balance for the | Collateral | Equity of the | Collateral/Guarantee | ||||||||||||||||||||||||||||||||||
Guarantee | Relationship | Counter-party's | Period | Ending Balance | Property, Plant | Latest Financial | Amounts Allowable | |||||||||||||||||||||||||||||||||
No. | Provider | Name | (Note 2) | Endorsement/Guarantee Amounts | (US$ in Thousand) | (US$ in Thousand) | and Equipment | Statement | (Note 1) | |||||||||||||||||||||||||||||||
0 |
The Company | TSMC Development | 3 | Not exceed 10% of the net worth of | $ | 1,897,080 | $ | 948,540 | $ | | 0.25 | % | $ | 96,049,982 | ||||||||||||||||||||||||||
the Company, and also limiting to | (US$60,000) | (US$30,000) | ||||||||||||||||||||||||||||||||||||||
TSMC-North America | 2 | the total capital issued of the | 1,264,720 | 1,264,720 | | 0.33 | % | |||||||||||||||||||||||||||||||||
endorsement/guarantee company, | (US$40,000) | (US$40,000) | ||||||||||||||||||||||||||||||||||||||
unless otherwise approved by | ||||||||||||||||||||||||||||||||||||||||
Board of Directors. |
Note 1:
|
25% of the net worth of the Company as of June 30, 2005. | |
Note 2:
|
The No. 2 represents a subsidiary in which the Company holds directly over 50% of the equity interest. | |
The No. 3 represents an investee in which the Company holds directly and indirectly over 50% of the equity interest. |
-37-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
The Company
|
Government bonds | |||||||||||||||||||||||
United States Treas NTS | | Short-term investment | | US$ | 80,106 | N/A | US$ | 79,826 | ||||||||||||||||
Kreditanstalt Fur Wiederaufbau | | Short-term investment | | US$ | 6,881 | N/A | US$ | 6,869 | ||||||||||||||||
2002 Government Bond Series B | | Long-term investment | | 358,683 | N/A | 358,136 | ||||||||||||||||||
2003 Government Bond Series I | | Long-term investment | | 3,392,485 | N/A | 3,391,450 | ||||||||||||||||||
2004 Government Bond Series A | | Long-term investment | | 2,349,767 | N/A | 2,350,449 | ||||||||||||||||||
2004 Government Bond Series E | | Long-term investment | | 3,896,211 | N/A | 3,895,418 | ||||||||||||||||||
2004 Kaohsiung Municipal Bond Series A | | Long-term investment | | 620,000 | N/A | 619,999 | ||||||||||||||||||
2005 Government Bond Series A | | Long-term investment | | 1,200,000 | N/A | 1,200,265 | ||||||||||||||||||
Bond funds | ||||||||||||||||||||||||
JF Taiwan First Bond Fund | | Short-term investment | 73,993 | 1,003,701 | N/A | 1,019,467 | ||||||||||||||||||
ABN AMRO Bond Fund | | Short-term investment | 134,906 | 1,956,175 | N/A | 1,991,304 | ||||||||||||||||||
JF Taiwan Bond Fund | | Short-term investment | 78,698 | 1,153,209 | N/A | 1,176,489 | ||||||||||||||||||
INVESCO R.O.C. Bond A Fund | | Short-term investment | 69,846 | 1,003,373 | N/A | 1,018,827 | ||||||||||||||||||
Dresdner Bond DAM Fund | | Short-term investment | 69,303 | 771,617 | N/A | 786,496 | ||||||||||||||||||
Barits Bond Fund | | Short-term investment | 64,049 | 752,149 | N/A | 763,507 | ||||||||||||||||||
Shinkong Chi Shin Bond Fund | | Short-term investment | 151,594 | 2,100,000 | N/A | 2,129,516 | ||||||||||||||||||
NITC Bond Fund | | Short-term investment | 3,764 | 600,000 | N/A | 606,734 | ||||||||||||||||||
ABN AMRO Select Bond Fund | | Short-term investment | 18,235 | 200,000 | N/A | 202,478 | ||||||||||||||||||
HSBC NTD Money Management Fund | | Short-term investment | 41,568 | 600,000 | N/A | 605,820 | ||||||||||||||||||
Stock | ||||||||||||||||||||||||
Taiwan Mask Corp. | | Short-term investment | 1,787 | 6,528 | | 26,623 | ||||||||||||||||||
TSMC International | Subsidiary | Long-term investment | 987,968 | 23,057,382 | 100 | 23,057,382 | ||||||||||||||||||
VIS | Investee accounted for using equity method |
Long-term investment | 437,891 | 5,115,164 | 27 | 12,449,270 | ||||||||||||||||||
TSMC Partners | Subsidiary | Long-term investment | 300 | 3,873,176 | 100 | 3,873,176 | ||||||||||||||||||
SSMC | Investee accounted for using equity method |
Long-term investment | 382 | 3,514,280 | 32 | 3,514,280 | ||||||||||||||||||
TSMC-North America | Subsidiary | Long-term investment | 11,000 | 794,692 | 100 | 1,429,190 | Treasury stock of NT$634,498 thousand is deducted from the carrying value. | |||||||||||||||||
GUC | Investee | Long-term investment | 40,149 | 403,208 | 46 | 426,476 | ||||||||||||||||||
TSMC-Japan | Subsidiary | Long-term investment | 6 | 95,013 | 100 | 95,013 | ||||||||||||||||||
VisEra | Investee | Long-term investment | 5,100 | 62,668 | 25 | 63,595 | ||||||||||||||||||
TSMC-Europe | Subsidiary | Long-term investment | | 22,491 | 100 | 22,491 |
-38-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
United Industrial Gases Co., Ltd. | | Long-term investment | 16,783 | $ | 193,584 | 10 | $ | 265,434 | ||||||||||||||||
Shin-Etsu Handotai Taiwan Co., Ltd. | | Long-term investment | 10,500 | 105,000 | 7 | 173,007 | ||||||||||||||||||
W.K. Technology Fund IV | | Long-term investment | 5,000 | 50,000 | 2 | 54,046 | ||||||||||||||||||
Hontung Venture Capital Co., Ltd. | | Long-term investment | 8,392 | 83,916 | 10 | 54,509 | ||||||||||||||||||
Globaltop Partner I Venture Capital Corp. | | Long-term investment | 5,000 | 50,000 | 1 | 49,574 | ||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||
Taiwan Power Company | | Short-term investment | | 816,282 | N/A | 802,214 | ||||||||||||||||||
Formosa Petrochemical Corporation | | Short-term investment | | 311,568 | N/A | 307,632 | ||||||||||||||||||
AIG Sunamerica Global Fing Ix | | Short-term investment | | US$ | 1,032 | N/A | US$ | 1,012 | ||||||||||||||||
Anz Cap Tr I | | Short-term investment | | US$ | 1,012 | N/A | US$ | 996 | ||||||||||||||||
Abbott Labs | | Short-term investment | | US$ | 2,732 | N/A | US$ | 2,654 | ||||||||||||||||
Abbott Labs | | Short-term investment | | US$ | 1,581 | N/A | US$ | 1,560 | ||||||||||||||||
Ace Ltd. | | Short-term investment | | US$ | 1,046 | N/A | US$ | 1,027 | ||||||||||||||||
Alltel Corp. | | Short-term investment | | US$ | 609 | N/A | US$ | 605 | ||||||||||||||||
Allstate Life Global Fdg Secd | | Short-term investment | | US$ | 2,998 | N/A | US$ | 2,985 | ||||||||||||||||
American Express Co. | | Short-term investment | | US$ | 3,550 | N/A | US$ | 3,474 | ||||||||||||||||
American Gen Fin Corp. | | Short-term investment | | US$ | 1,768 | N/A | US$ | 1,728 | ||||||||||||||||
American Gen Fin Corp. Mtn | | Short-term investment | | US$ | 3,130 | N/A | US$ | 3,039 | ||||||||||||||||
American Gen Fin Corp. Mtn | | Short-term investment | | US$ | 1,058 | N/A | US$ | 1,025 | ||||||||||||||||
American Honda Fin Corp. Mtn | | Short-term investment | | US$ | 3,800 | N/A | US$ | 3,789 | ||||||||||||||||
American Intl Group Inc. Mtnf | | Short-term investment | | US$ | 3,795 | N/A | US$ | 3,789 | ||||||||||||||||
Amgen Inc. | | Short-term investment | | US$ | 3,005 | N/A | US$ | 2,978 | ||||||||||||||||
Amsouth Bk Birmingham Ala | | Short-term investment | | US$ | 1,972 | N/A | US$ | 1,970 | ||||||||||||||||
Associates Corp. North Amer | | Short-term investment | | US$ | 2,700 | N/A | US$ | 2,648 | ||||||||||||||||
Bank New York Inc. | | Short-term investment | | US$ | 1,525 | N/A | US$ | 1,501 | ||||||||||||||||
Bank New York Inc. | | Short-term investment | | US$ | 1,972 | N/A | US$ | 1,974 | ||||||||||||||||
Bank Scotland Treas Svcs Plc | | Short-term investment | | US$ | 2,715 | N/A | US$ | 2,717 | ||||||||||||||||
Bank Utd Houston Tx Mtbn | | Short-term investment | | US$ | 580 | N/A | US$ | 563 | ||||||||||||||||
Bear Stearns Cos Inc. | | Short-term investment | | US$ | 3,757 | N/A | US$ | 3,755 | ||||||||||||||||
Bear Stearns Cos Inc. | | Short-term investment | | US$ | 3,518 | N/A | US$ | 3,482 | ||||||||||||||||
Bear Stearns Cos Inc. Medium Te | | Short-term investment | | US$ | 2,103 | N/A | US$ | 2,101 | ||||||||||||||||
Beneficial Corp. Mtn Bk Entry | | Short-term investment | | US$ | 2,434 | N/A | US$ | 2,404 | ||||||||||||||||
Berkshire Hathaway Fin Corp. | | Short-term investment | | US$ | 1,498 | N/A | US$ | 1,482 | ||||||||||||||||
British Telecommunications Plc | | Short-term investment | | US$ | 2,104 | N/A | US$ | 2,039 | ||||||||||||||||
Cit Group Hldgs Inc. | | Short-term investment | | US$ | 3,203 | N/A | US$ | 3,137 | ||||||||||||||||
Cit Group Inc. | | Short-term investment | | US$ | 2,000 | N/A | US$ | 2,002 | ||||||||||||||||
Cargill Inc. | | Short-term investment | | US$ | 2,120 | N/A | US$ | 2,041 | ||||||||||||||||
Chase Manhattan Corp. New | | Short-term investment | | US$ | 2,246 | N/A | US$ | 2,216 | ||||||||||||||||
Chase Manhattan Corp. New | | Short-term investment | | US$ | 1,628 | N/A | US$ | 1,588 | ||||||||||||||||
Citicorp | | Short-term investment | | US$ | 1,473 | N/A | US$ | 1,441 | ||||||||||||||||
Cogentrix Energy Inc. | | Short-term investment | | US$ | 2,885 | N/A | US$ | 2,833 | ||||||||||||||||
Colonial Pipeline Co. | | Short-term investment | | US$ | 1,625 | N/A | US$ | 1,572 | ||||||||||||||||
Compaq Computer Corp. | | Short-term investment | | US$ | 3,719 | N/A | US$ | 3,513 | ||||||||||||||||
Consolidated Edison Co. Ny Inc. | | Short-term investment | | US$ | 3,688 | N/A | US$ | 3,550 | ||||||||||||||||
Corestates Cap Corp. | | Short-term investment | | US$ | 1,062 | N/A | US$ | 1,039 | ||||||||||||||||
Countrywide Fdg Corp. Mtn | | Short-term investment | | US$ | 2,158 | N/A | US$ | 2,104 |
-39-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
Countrywide Home Lns Inc. | | Short-term investment | | US$ | 5,210 | N/A | US$ | 5,079 | ||||||||||||||||
Countrywide Fdg Corp. Mtn | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,498 | ||||||||||||||||
Countrywide Finl Corp. | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,997 | ||||||||||||||||
Credit Suisse Fb USA Inc. | | Short-term investment | | US$ | 4,141 | N/A | US$ | 4,090 | ||||||||||||||||
Credit Suisse First Boston USA | | Short-term investment | | US$ | 2,249 | N/A | US$ | 2,231 | ||||||||||||||||
Credit Suisse First Boston | | Short-term investment | | US$ | 786 | N/A | US$ | 766 | ||||||||||||||||
Daimlerchrysler North Amer | | Short-term investment | | US$ | 997 | N/A | US$ | 979 | ||||||||||||||||
Daimlerchrysler North Amer Hld | | Short-term investment | | US$ | 749 | N/A | US$ | 746 | ||||||||||||||||
Dayton Hudson Corp. | | Short-term investment | | US$ | 2,104 | N/A | US$ | 2,108 | ||||||||||||||||
Deere John Cap Corp. | | Short-term investment | | US$ | 5,079 | N/A | US$ | 5,080 | ||||||||||||||||
Dell Computer Corp. | | Short-term investment | | US$ | 3,054 | N/A | US$ | 2,962 | ||||||||||||||||
Den Danske Bk Aktieselskab | | Short-term investment | | US$ | 2,192 | N/A | US$ | 2,116 | ||||||||||||||||
Diageo Plc | | Short-term investment | | US$ | 3,459 | N/A | US$ | 3,454 | ||||||||||||||||
Dow Chem Co. | | Short-term investment | | US$ | 921 | N/A | US$ | 885 | ||||||||||||||||
European Invt Bk | | Short-term investment | | US$ | 8,315 | N/A | US$ | 8,119 | ||||||||||||||||
European Invt Bk | | Short-term investment | | US$ | 3,918 | N/A | US$ | 3,927 | ||||||||||||||||
Fpl Group Cap Inc. | | Short-term investment | | US$ | 1,001 | N/A | US$ | 997 | ||||||||||||||||
Fpl Group Cap Inc. | | Short-term investment | | US$ | 860 | N/A | US$ | 853 | ||||||||||||||||
Shell Finance (U K ) Plc | | Short-term investment | | US$ | 3,604 | N/A | US$ | 3,515 | ||||||||||||||||
Fifth Third Bk Cincinnati Oh | | Short-term investment | | US$ | 2,419 | N/A | US$ | 2,449 | ||||||||||||||||
First Data Corp. | | Short-term investment | | US$ | 3,013 | N/A | US$ | 2,973 | ||||||||||||||||
Fleet Finl Group Inc. New | | Short-term investment | | US$ | 494 | N/A | US$ | 482 | ||||||||||||||||
Fleet Finl Group Inc. New | | Short-term investment | | US$ | 975 | N/A | US$ | 946 | ||||||||||||||||
Fleet Boston Corp. | | Short-term investment | | US$ | 2,850 | N/A | US$ | 2,810 | ||||||||||||||||
Ford Mtr Cr Co. | | Short-term investment | | US$ | 1,542 | N/A | US$ | 1,503 | ||||||||||||||||
Gte Corp. | | Short-term investment | | US$ | 2,134 | N/A | US$ | 2,071 | ||||||||||||||||
Gannett Co Inc. | | Short-term investment | | US$ | 2,999 | N/A | US$ | 2,996 | ||||||||||||||||
General Elec Cap Corp. Mtn | | Short-term investment | | US$ | 8,862 | N/A | US$ | 8,857 | ||||||||||||||||
General Elec Cap Corp. Mtn | | Short-term investment | | US$ | 3,989 | N/A | US$ | 3,967 | ||||||||||||||||
General Elec Cap Corp. Mtn | | Short-term investment | | US$ | 1,040 | N/A | US$ | 1,023 | ||||||||||||||||
General Re Corp. | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,566 | ||||||||||||||||
Genworth Finl Inc. | | Short-term investment | | US$ | 3,412 | N/A | US$ | 3,404 | ||||||||||||||||
Goldman Sachs Group L P | | Short-term investment | | US$ | 1,637 | N/A | US$ | 1,563 | ||||||||||||||||
Greenpoint Finl Corp. | | Short-term investment | | US$ | 974 | N/A | US$ | 968 | ||||||||||||||||
HSBC USA Inc. New | | Short-term investment | | US$ | 1,154 | N/A | US$ | 1,113 | ||||||||||||||||
Hancock John Global Fdg II Mtn | | Short-term investment | | US$ | 3,566 | N/A | US$ | 3,562 | ||||||||||||||||
Hancock John Global Fdg Mtn | | Short-term investment | | US$ | 1,003 | N/A | US$ | 984 | ||||||||||||||||
Hartford Finl Svcs Group Inc. | | Short-term investment | | US$ | 1,435 | N/A | US$ | 1,406 | ||||||||||||||||
Hartford Finl Svcs Group Inc. | | Short-term investment | | US$ | 296 | N/A | US$ | 296 | ||||||||||||||||
Heller Finl Inc. | | Short-term investment | | US$ | 2,071 | N/A | US$ | 2,039 | ||||||||||||||||
Hershey Foods Corp. | | Short-term investment | | US$ | 1,627 | N/A | US$ | 1,570 | ||||||||||||||||
Hewlett Packard Co. | | Short-term investment | | US$ | 3,373 | N/A | US$ | 3,252 | ||||||||||||||||
Honeywell Inc. | | Short-term investment | | US$ | 3,284 | N/A | US$ | 3,150 | ||||||||||||||||
Household Fin Corp. | | Short-term investment | | US$ | 532 | N/A | US$ | 523 | ||||||||||||||||
Household Fin Corp. | | Short-term investment | | US$ | 2,993 | N/A | US$ | 2,972 | ||||||||||||||||
Household Fin Corp. Mtn Bk Enty | | Short-term investment | | US$ | 3,542 | N/A | US$ | 3,493 | ||||||||||||||||
Huntington Natl Bk Columbus Oh | | Short-term investment | | US$ | 2,954 | N/A | US$ | 2,958 |
-40-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
Huntington Natl Bk | | Short-term investment | | US$ | 3,003 | N/A | US$ | 3,001 | ||||||||||||||||
ING Sec Life Instl Fdg | | Short-term investment | | US$ | 2,544 | N/A | US$ | 2,543 | ||||||||||||||||
Intl Bk For Recon + Dev | | Short-term investment | | US$ | 5,232 | N/A | US$ | 5,009 | ||||||||||||||||
International Business Machs | | Short-term investment | | US$ | 2,249 | N/A | US$ | 2,237 | ||||||||||||||||
International Lease Fin Corp. | | Short-term investment | | US$ | 2,455 | N/A | US$ | 2,457 | ||||||||||||||||
International Lease Fin Corp. | | Short-term investment | | US$ | 1,162 | N/A | US$ | 1,163 | ||||||||||||||||
Intl Lease Fin Corp. Mtn | | Short-term investment | | US$ | 3,028 | N/A | US$ | 2,993 | ||||||||||||||||
JP Morgan Chase + Co. | | Short-term investment | | US$ | 3,663 | N/A | US$ | 3,570 | ||||||||||||||||
Jackson Natl Life Global Fdg | | Short-term investment | | US$ | 1,036 | N/A | US$ | 1,020 | ||||||||||||||||
Jackson Natl Life Global Fdg S | | Short-term investment | | US$ | 1,999 | N/A | US$ | 2,000 | ||||||||||||||||
Key Bk Na Med Term Nts Bk Entry | | Short-term investment | | US$ | 4,450 | N/A | US$ | 4,479 | ||||||||||||||||
Keycorp Mtn Book Entry | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,505 | ||||||||||||||||
Kraft Foods Inc. | | Short-term investment | | US$ | 773 | N/A | US$ | 757 | ||||||||||||||||
Kraft Foods Inc. | | Short-term investment | | US$ | 1,037 | N/A | US$ | 1,021 | ||||||||||||||||
ING Bank | | Short-term investment | | US$ | 2,114 | N/A | US$ | 2,070 | ||||||||||||||||
Credit Suisse Fincl Products | | Short-term investment | | US$ | 1,507 | N/A | US$ | 1,504 | ||||||||||||||||
Lehman Brothers Hldgs Inc. | | Short-term investment | | US$ | 1,163 | N/A | US$ | 1,141 | ||||||||||||||||
Lehman Brothers Hldgs Inc. | | Short-term investment | | US$ | 3,705 | N/A | US$ | 3,562 | ||||||||||||||||
Lehman Brothers Hldgs Inc. | | Short-term investment | | US$ | 2,166 | N/A | US$ | 2,167 | ||||||||||||||||
Lilly Eli + Co. | | Short-term investment | | US$ | 3,750 | N/A | US$ | 3,751 | ||||||||||||||||
Lincoln Natl Corp. In | | Short-term investment | | US$ | 519 | N/A | US$ | 510 | ||||||||||||||||
Ameritech Capital Funding Co. | | Short-term investment | | US$ | 510 | N/A | US$ | 505 | ||||||||||||||||
Merita Bk Ltd. Ny Brh | | Short-term investment | | US$ | 538 | N/A | US$ | 522 | ||||||||||||||||
Merrill Lynch + Co Inc. | | Short-term investment | | US$ | 3,486 | N/A | US$ | 3,447 | ||||||||||||||||
Metropolitan Life Global Mtn | | Short-term investment | | US$ | 1,907 | N/A | US$ | 1,904 | ||||||||||||||||
Monumental Global Fdg II | | Short-term investment | | US$ | 1,534 | N/A | US$ | 1,511 | ||||||||||||||||
Monumental Global Fdg II 2002a | | Short-term investment | | US$ | 1,045 | N/A | US$ | 1,018 | ||||||||||||||||
Morgan Stanley Group Inc. | | Short-term investment | | US$ | 5,557 | N/A | US$ | 5,526 | ||||||||||||||||
Morgan Stanley | | Short-term investment | | US$ | 2,136 | N/A | US$ | 2,113 | ||||||||||||||||
National City Corp. | | Short-term investment | | US$ | 3,426 | N/A | US$ | 3,415 | ||||||||||||||||
National Westminster Bk Plc | | Short-term investment | | US$ | 1,433 | N/A | US$ | 1,391 | ||||||||||||||||
Nationwide Bldg Soc | | Short-term investment | | US$ | 3,457 | N/A | US$ | 3,467 | ||||||||||||||||
Nationwide Bldg Soc Mtn | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,995 | ||||||||||||||||
Nationwide Life Global Mtn | | Short-term investment | | US$ | 1,463 | N/A | US$ | 1,462 | ||||||||||||||||
Northern Rock Plc Medium Term | | Short-term investment | | US$ | 2,002 | N/A | US$ | 1,991 | ||||||||||||||||
Pnc Fdg Corp. | | Short-term investment | | US$ | 1,080 | N/A | US$ | 1,052 | ||||||||||||||||
Pepsico Inc. Mtn Book Entry | | Short-term investment | | US$ | 3,818 | N/A | US$ | 3,752 | ||||||||||||||||
Popular North Amer Inc. Mtn | | Short-term investment | | US$ | 3,042 | N/A | US$ | 2,984 | ||||||||||||||||
Premark Intl Inc. | | Short-term investment | | US$ | 2,954 | N/A | US$ | 2,875 | ||||||||||||||||
Pricoa Global Fdg 1 Mtn | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,500 | ||||||||||||||||
Protective Life Secd Trs | | Short-term investment | | US$ | 2,920 | N/A | US$ | 2,950 | ||||||||||||||||
Prudential Ins Co Amer | | Short-term investment | | US$ | 2,774 | N/A | US$ | 2,768 | ||||||||||||||||
Prudential Ins Co Amer | | Short-term investment | | US$ | 2,648 | N/A | US$ | 2,562 | ||||||||||||||||
Reinsurance Group Amer Inc. | | Short-term investment | | US$ | 2,091 | N/A | US$ | 2,046 | ||||||||||||||||
Royal Bk Scotland Group Plc | | Short-term investment | | US$ | 1,563 | N/A | US$ | 1,515 | ||||||||||||||||
Royal Bk Scotland Group Plc | | Short-term investment | | US$ | 369 | N/A | US$ | 357 | ||||||||||||||||
Sbc Communications Inc. | | Short-term investment | | US$ | 3,681 | N/A | US$ | 3,559 |
-41-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
Sbc Communications Inc. | | Short-term investment | | US$ | 1,776 | N/A | US$ | 1,757 | ||||||||||||||||
Slm Corp. Medium Term Nts | | Short-term investment | | US$ | 2,950 | N/A | US$ | 2,961 | ||||||||||||||||
Slm Corp. | | Short-term investment | | US$ | 500 | N/A | US$ | 498 | ||||||||||||||||
Sp Powerassests Ltd. Global | | Short-term investment | | US$ | 991 | N/A | US$ | 980 | ||||||||||||||||
Safeco Corp. | | Short-term investment | | US$ | 765 | N/A | US$ | 744 | ||||||||||||||||
St Paul Cos Inc. Mtn Bk Ent | | Short-term investment | | US$ | 2,661 | N/A | US$ | 2,654 | ||||||||||||||||
Sara Lee Corp. | | Short-term investment | | US$ | 1,596 | N/A | US$ | 1,565 | ||||||||||||||||
Scotland Intl Fin B V 144a | | Short-term investment | | US$ | 1,533 | N/A | US$ | 1,488 | ||||||||||||||||
Suntrust Bks Inc. | | Short-term investment | | US$ | 1,062 | N/A | US$ | 1,035 | ||||||||||||||||
Swedbank Sparbanken Svenge Ab | | Short-term investment | | US$ | 1,084 | N/A | US$ | 1,043 | ||||||||||||||||
Tiaa Global Mkts Inc. | | Short-term investment | | US$ | 519 | N/A | US$ | 507 | ||||||||||||||||
Tribune Co Med Trm Nts | | Short-term investment | | US$ | 2,943 | N/A | US$ | 2,923 | ||||||||||||||||
US Bk Natl Assn Cincinnati Oh | | Short-term investment | | US$ | 2,669 | N/A | US$ | 2,681 | ||||||||||||||||
Unitedhealth Group Inc. | | Short-term investment | | US$ | 3,119 | N/A | US$ | 3,057 | ||||||||||||||||
Virginia Elec + Pwr Co | | Short-term investment | | US$ | 2,884 | N/A | US$ | 2,766 | ||||||||||||||||
Vodafone Group Plc New | | Short-term investment | | US$ | 2,559 | N/A | US$ | 2,540 | ||||||||||||||||
Wps Resources Corp. | | Short-term investment | | US$ | 1,107 | N/A | US$ | 1,108 | ||||||||||||||||
Wal Mart Cda Venture Corp. | | Short-term investment | | US$ | 3,670 | N/A | US$ | 3,549 | ||||||||||||||||
Washington Mut Inc. | | Short-term investment | | US$ | 4,735 | N/A | US$ | 4,606 | ||||||||||||||||
Washington Mut Fin Corp. | | Short-term investment | | US$ | 1,043 | N/A | US$ | 1,022 | ||||||||||||||||
Washington Post Co | | Short-term investment | | US$ | 3,182 | N/A | US$ | 3,130 | ||||||||||||||||
Wells Fargo + Co New | | Short-term investment | | US$ | 3,697 | N/A | US$ | 3,568 | ||||||||||||||||
Westfield Cap Corp. Ltd. | | Short-term investment | | US$ | 1,999 | N/A | US$ | 2,003 | ||||||||||||||||
China Steel Corporation | | Long-term investment | | 2,936,934 | N/A | 2,936,479 | ||||||||||||||||||
Taiwan Power Company | | Long-term investment | | 908,645 | N/A | 908,575 | ||||||||||||||||||
Nan Ya Plastics Corporation | | Long-term investment | | 272,612 | N/A | 273,035 | ||||||||||||||||||
Formosa Plastics Corporation | | Long-term investment | | 271,181 | N/A | 271,584 | ||||||||||||||||||
Formosa Chemicals & Fiber Corporation | | Long-term investment | | 135,487 | N/A | 137,529 | ||||||||||||||||||
Agency bonds | ||||||||||||||||||||||||
Fed Hm Ln Pc Pool G11295 | | Short-term investment | | US$ | 1,999 | N/A | US$ | 1,983 | ||||||||||||||||
Fed Hm Ln Pc Pool E89857 | | Short-term investment | | US$ | 2,247 | N/A | US$ | 2,228 | ||||||||||||||||
Federal Natl Mtg Assn Gtd | | Short-term investment | | US$ | 1,842 | N/A | US$ | 1,803 | ||||||||||||||||
Fnma Pool 254507 | | Short-term investment | | US$ | 2,731 | N/A | US$ | 2,725 | ||||||||||||||||
Fnma Pool 254834 | | Short-term investment | | US$ | 1,967 | N/A | US$ | 1,984 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 2,949 | N/A | US$ | 2,892 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 1,064 | N/A | US$ | 1,051 | ||||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 6,096 | N/A | US$ | 6,024 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 3,432 | N/A | US$ | 3,375 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,051 | N/A | US$ | 4,056 | ||||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 3,993 | N/A | US$ | 3,982 | ||||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 3,558 | N/A | US$ | 3,496 | ||||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 2,466 | N/A | US$ | 2,443 | ||||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 5,335 | N/A | US$ | 5,340 | ||||||||||||||||
Fnma Pool 685116 | | Short-term investment | | US$ | 918 | N/A | US$ | 910 | ||||||||||||||||
Fnma Pool 725095 | | Short-term investment | | US$ | 1,777 | N/A | US$ | 1,760 | ||||||||||||||||
Fnma Pool 730033 | | Short-term investment | | US$ | 1,992 | N/A | US$ | 2,010 |
-42-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
Fnma Pool 740934 | | Short-term investment | | US$ | 1,997 | N/A | US$ | 2,014 | ||||||||||||||||
Fnma Pool 790828 | | Short-term investment | | US$ | 4,145 | N/A | US$ | 4,096 | ||||||||||||||||
Fnma Pool 793025 | | Short-term investment | | US$ | 3,767 | N/A | US$ | 3,759 | ||||||||||||||||
Fnma Pool 793932 | | Short-term investment | | US$ | 904 | N/A | US$ | 897 | ||||||||||||||||
Fnma Pool 794040 | | Short-term investment | | US$ | 964 | N/A | US$ | 956 | ||||||||||||||||
Fnma Pool 795548 | | Short-term investment | | US$ | 866 | N/A | US$ | 859 | ||||||||||||||||
Fnma Pool 806642 | | Short-term investment | | US$ | 1,856 | N/A | US$ | 1,841 | ||||||||||||||||
Gnma II Pool 081150 | | Short-term investment | | US$ | 941 | N/A | US$ | 931 | ||||||||||||||||
Gnma II Pool 081153 | | Short-term investment | | US$ | 3,525 | N/A | US$ | 3,474 | ||||||||||||||||
Government Natl Mtg Assn | | Short-term investment | | US$ | 365 | N/A | US$ | 355 | ||||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 6,978 | N/A | US$ | 6,913 | ||||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 3,388 | N/A | US$ | 3,410 | ||||||||||||||||
Federal Home Ln Mtg Corp. Mtn | | Short-term investment | | US$ | 4,930 | N/A | US$ | 4,911 | ||||||||||||||||
Federal Home Loan Mtg Assn | | Short-term investment | | US$ | 4,847 | N/A | US$ | 4,874 | ||||||||||||||||
Federal Home Loan Mtg Corp. | | Short-term investment | | US$ | 4,903 | N/A | US$ | 4,916 | ||||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 9,997 | N/A | US$ | 9,917 | ||||||||||||||||
Federal Home Loan Corp. | | Short-term investment | | US$ | 7,989 | N/A | US$ | 7,985 | ||||||||||||||||
Federal Farm Cr Bks | | Short-term investment | | US$ | 3,985 | N/A | US$ | 3,988 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 2,532 | N/A | US$ | 2,481 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 1,042 | N/A | US$ | 1,009 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 7,887 | N/A | US$ | 7,822 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 3,379 | N/A | US$ | 3,345 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 9,134 | N/A | US$ | 9,142 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 4,927 | N/A | US$ | 4,918 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 2,990 | N/A | US$ | 2,975 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 2,962 | N/A | US$ | 2,954 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 2,454 | N/A | US$ | 2,471 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 3,932 | N/A | US$ | 3,943 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 7,018 | N/A | US$ | 6,947 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 4,997 | N/A | US$ | 4,954 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 6,098 | N/A | US$ | 6,032 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 3,976 | N/A | US$ | 3,959 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 13,953 | N/A | US$ | 13,868 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 4,939 | N/A | US$ | 4,935 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 13,981 | N/A | US$ | 13,882 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 4,136 | N/A | US$ | 4,117 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 2,233 | N/A | US$ | 2,234 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 4,965 | N/A | US$ | 4,968 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 7,558 | N/A | US$ | 7,576 | ||||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 8,594 | N/A | US$ | 8,586 | ||||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 999 | N/A | US$ | 995 | ||||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 4,933 | N/A | US$ | 4,943 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 5,270 | N/A | US$ | 5,228 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 5,337 | N/A | US$ | 5,340 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,430 | N/A | US$ | 4,421 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,921 | N/A | US$ | 4,908 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 3,470 | N/A | US$ | 3,466 |
-43-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 6,903 | N/A | US$ | 6,913 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,981 | N/A | US$ | 4,938 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,061 | N/A | US$ | 4,069 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 7,892 | N/A | US$ | 7,905 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,943 | N/A | US$ | 4,954 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 17,888 | N/A | US$ | 17,904 | ||||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 14,952 | N/A | US$ | 14,913 | ||||||||||||||||
Federal Natl Mtg Assn Mtn | | Short-term investment | | US$ | 15,787 | N/A | US$ | 15,753 | ||||||||||||||||
Federal Natl Mtg Assn Mtn | | Short-term investment | | US$ | 9,758 | N/A | US$ | 9,769 | ||||||||||||||||
Fed Hm Ln Pc | | Short-term investment | | US$ | 3,466 | N/A | US$ | 3,465 | ||||||||||||||||
Federal Natl Mtg Assn Mtn | | Short-term investment | | US$ | 7,000 | N/A | US$ | 6,932 | ||||||||||||||||
Corporate issued asset-backed securities | ||||||||||||||||||||||||
Aesop Fdg II L L C | | Short-term investment | | US$ | 4,955 | N/A | US$ | 4,951 | ||||||||||||||||
Aegis Asset Backed Secs Tr | | Short-term investment | | US$ | 2,000 | N/A | US$ | 2,007 | ||||||||||||||||
American Home Mtg Invt Tr | | Short-term investment | | US$ | 690 | N/A | US$ | 690 | ||||||||||||||||
Americredit Automobile Rec Tr | | Short-term investment | | US$ | 1,055 | N/A | US$ | 1,042 | ||||||||||||||||
Americredit Auomobile Receiv | | Short-term investment | | US$ | 513 | N/A | US$ | 512 | ||||||||||||||||
Americredit Automobile Receivb | | Short-term investment | | US$ | 4,949 | N/A | US$ | 4,902 | ||||||||||||||||
Americredit Automobile Rec Tr | | Short-term investment | | US$ | 2,000 | N/A | US$ | 1,989 | ||||||||||||||||
Atlantic City Elc Trns Fdg LLC | | Short-term investment | | US$ | 810 | N/A | US$ | 802 | ||||||||||||||||
Bmw Veh Owner Tr | | Short-term investment | | US$ | 4,978 | N/A | US$ | 4,945 | ||||||||||||||||
Banc Amer Coml Mtg Inc. | | Short-term investment | | US$ | 4,917 | N/A | US$ | 4,862 | ||||||||||||||||
Banc Amer Mtg Secs Inc. | | Short-term investment | | US$ | 4,030 | N/A | US$ | 3,995 | ||||||||||||||||
Bank Of Amer Lease Equip Tr | | Short-term investment | | US$ | 4,023 | N/A | US$ | 3,974 | ||||||||||||||||
Bear Stearns Alt A Tr | | Short-term investment | | US$ | 1,230 | N/A | US$ | 1,232 | ||||||||||||||||
Cit Equip Coll Tr | | Short-term investment | | US$ | 4,999 | N/A | US$ | 4,957 | ||||||||||||||||
Cnh Equip Tr | | Short-term investment | | US$ | 4,999 | N/A | US$ | 4,920 | ||||||||||||||||
Cwabs Inc. | | Short-term investment | | US$ | 1,030 | N/A | US$ | 1,035 | ||||||||||||||||
Cwabs Inc. | | Short-term investment | | US$ | 5,000 | N/A | US$ | 5,008 | ||||||||||||||||
Cwabs Inc. | | Short-term investment | | US$ | 2,895 | N/A | US$ | 2,899 | ||||||||||||||||
Cwalt Inc. | | Short-term investment | | US$ | 2,963 | N/A | US$ | 2,938 | ||||||||||||||||
Cwmbs Inc. | | Short-term investment | | US$ | 1,686 | N/A | US$ | 1,667 | ||||||||||||||||
Cwmbs Inc. | | Short-term investment | | US$ | 3,711 | N/A | US$ | 3,721 | ||||||||||||||||
California Infrastructure Dev | | Short-term investment | | US$ | 1,578 | N/A | US$ | 1,546 | ||||||||||||||||
Capital Auto Receivables Asset | | Short-term investment | | US$ | 2,622 | N/A | US$ | 2,598 | ||||||||||||||||
Capital One Auto Fin Tr | | Short-term investment | | US$ | 438 | N/A | US$ | 436 | ||||||||||||||||
Capital One Auto Fin Tr | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,982 | ||||||||||||||||
Capital One Auto Fin Tr | | Short-term investment | | US$ | 2,650 | N/A | US$ | 2,649 | ||||||||||||||||
Capital One Multi Asset Execut | | Short-term investment | | US$ | 4,957 | N/A | US$ | 4,940 | ||||||||||||||||
Caterpillar Finl Asset Tr | | Short-term investment | | US$ | 10,008 | N/A | US$ | 9,880 | ||||||||||||||||
Caterpillar Finl Asset Tr | | Short-term investment | | US$ | 3,299 | N/A | US$ | 3,260 | ||||||||||||||||
Cendant Rent Car Fdg Aesop LLC | | Short-term investment | | US$ | 11,626 | N/A | US$ | 11,603 | ||||||||||||||||
Centex Home Equity Ln Tr | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,468 | ||||||||||||||||
Citicorp Mtg Secs | | Short-term investment | | US$ | 1,701 | N/A | US$ | 1,693 | ||||||||||||||||
Comm | | Short-term investment | | US$ | 4,600 | N/A | US$ | 4,604 | ||||||||||||||||
Credit Suisse First Boston Mtg | | Short-term investment | | US$ | 1,767 | N/A | US$ | 1,752 |
-44-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
Credit Suisse First Boston Mtg | | Short-term investment | | US$ | 2,593 | N/A | US$ | 2,591 | ||||||||||||||||
Daimlerchrysler Auto Tr | | Short-term investment | | US$ | 4,991 | N/A | US$ | 4,958 | ||||||||||||||||
Daimlerchrysler Auto Tr | | Short-term investment | | US$ | 2,927 | N/A | US$ | 2,924 | ||||||||||||||||
Daimlerchrysler Auto Tr | | Short-term investment | | US$ | 4,897 | N/A | US$ | 4,886 | ||||||||||||||||
Deere John Owner Tr | | Short-term investment | | US$ | 2,501 | N/A | US$ | 2,505 | ||||||||||||||||
Fifth Third Auto Tr | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,987 | ||||||||||||||||
First Horizon Abs Tr | | Short-term investment | | US$ | 1,554 | N/A | US$ | 1,557 | ||||||||||||||||
First Union Lehman Bros Mtg Tr | | Short-term investment | | US$ | 3,022 | N/A | US$ | 2,942 | ||||||||||||||||
Ford Cr Auto Owner Tr | | Short-term investment | | US$ | 10,999 | N/A | US$ | 10,918 | ||||||||||||||||
Gs Mtg Secs Corp. | | Short-term investment | | US$ | 1,347 | N/A | US$ | 1,347 | ||||||||||||||||
Gs Auto Ln Tr | | Short-term investment | | US$ | 2,948 | N/A | US$ | 2,973 | ||||||||||||||||
Granite Mtgs Plc | | Short-term investment | | US$ | 5,000 | N/A | US$ | 5,000 | ||||||||||||||||
Harley Davidson Motorcycle Tr | | Short-term investment | | US$ | 2,434 | N/A | US$ | 2,415 | ||||||||||||||||
Harley Davidson Motorcycle Tr | | Short-term investment | | US$ | 5,999 | N/A | US$ | 5,893 | ||||||||||||||||
Holmes Fing No 8 Plc | | Short-term investment | | US$ | 5,001 | N/A | US$ | 5,048 | ||||||||||||||||
Hyundai Auto Receivables Tr | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,444 | ||||||||||||||||
Hyundai Auto Receivables Tr | | Short-term investment | | US$ | 3,250 | N/A | US$ | 3,250 | ||||||||||||||||
Hyundai Auto Receivables Tr | | Short-term investment | | US$ | 3,999 | N/A | US$ | 3,999 | ||||||||||||||||
Impac Cmb Tr | | Short-term investment | | US$ | 934 | N/A | US$ | 934 | ||||||||||||||||
Impac Cmb Tr | | Short-term investment | | US$ | 860 | N/A | US$ | 862 | ||||||||||||||||
Impac Secd Assets Corp. | | Short-term investment | | US$ | 2,451 | N/A | US$ | 2,451 | ||||||||||||||||
Lb Ubs Coml Mtg Tr | | Short-term investment | | US$ | 4,184 | N/A | US$ | 4,197 | ||||||||||||||||
Long Beach Accep Auto Receivab | | Short-term investment | | US$ | 2,526 | N/A | US$ | 2,493 | ||||||||||||||||
Mbna Master Cr Card Tr II | | Short-term investment | | US$ | 8,108 | N/A | US$ | 8,080 | ||||||||||||||||
Massachusetts Rrb Spl Purp Tr | | Short-term investment | | US$ | 3,900 | N/A | US$ | 3,871 | ||||||||||||||||
Mastr Asset Backed Secs Tr | | Short-term investment | | US$ | 2,680 | N/A | US$ | 2,680 | ||||||||||||||||
Mastr Asset Backed Secs Tr | | Short-term investment | | US$ | 3,499 | N/A | US$ | 3,498 | ||||||||||||||||
Merrill Lynch Mtg Invs Inc. | | Short-term investment | | US$ | 1,171 | N/A | US$ | 1,171 | ||||||||||||||||
Merrill Lynch Mtg Invs Inc. | | Short-term investment | | US$ | 1,500 | N/A | US$ | 1,504 | ||||||||||||||||
Merrill Lynch Mtg Invs Inc. | | Short-term investment | | US$ | 882 | N/A | US$ | 882 | ||||||||||||||||
Monumentl Global Fdg II | | Short-term investment | | US$ | 1,000 | N/A | US$ | 1,000 | ||||||||||||||||
National City Auto Receivables | | Short-term investment | | US$ | 1,206 | N/A | US$ | 1,211 | ||||||||||||||||
Navistar Finl 2003 A Owner Tr | | Short-term investment | | US$ | 4,928 | N/A | US$ | 4,878 | ||||||||||||||||
Nissan Auto Receivables | | Short-term investment | | US$ | 7,000 | N/A | US$ | 6,948 | ||||||||||||||||
Onyx Accep Owner Tr | | Short-term investment | | US$ | 4,913 | N/A | US$ | 4,927 | ||||||||||||||||
Pg+E Energy Recovery Fdg LLC | | Short-term investment | | US$ | 4,749 | N/A | US$ | 4,747 | ||||||||||||||||
Prime Cr Card Master Tr | | Short-term investment | | US$ | 4,080 | N/A | US$ | 4,044 | ||||||||||||||||
Providian Gateway Owner Tr | | Short-term investment | | US$ | 4,204 | N/A | US$ | 4,205 | ||||||||||||||||
Providian Gateway Owner Tr | | Short-term investment | | US$ | 3,992 | N/A | US$ | 3,956 | ||||||||||||||||
Reliant Energy Transition Bd | | Short-term investment | | US$ | 5,185 | N/A | US$ | 5,059 | ||||||||||||||||
Residential Asset Mtg Prods | | Short-term investment | | US$ | 3,464 | N/A | US$ | 3,399 | ||||||||||||||||
Residential Asset Sec Mtg Pass | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,962 | ||||||||||||||||
Residential Fdg Mtg Secs I Inc. | | Short-term investment | | US$ | 3,112 | N/A | US$ | 3,086 | ||||||||||||||||
Residential Fdg Mtg Secs I Inc. | | Short-term investment | | US$ | 5,475 | N/A | US$ | 5,490 | ||||||||||||||||
Revolving Home Equity Ln Tr | | Short-term investment | | US$ | 4,380 | N/A | US$ | 4,384 | ||||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 2,228 | N/A | US$ | 2,236 | ||||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 1,572 | N/A | US$ | 1,572 |
-45-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 1,689 | N/A | US$ | 1,693 | ||||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 2,851 | N/A | US$ | 2,850 | ||||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 2,330 | N/A | US$ | 2,328 | ||||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 3,075 | N/A | US$ | 3,070 | ||||||||||||||||
Structured Adj Rate Mtg Ln Tr | | Short-term investment | | US$ | 2,653 | N/A | US$ | 2,625 | ||||||||||||||||
Structured Adj Rate Mtg Ln Tr | | Short-term investment | | US$ | 943 | N/A | US$ | 939 | ||||||||||||||||
Structured Asset Invt Ln Tr | | Short-term investment | | US$ | 1,576 | N/A | US$ | 1,576 | ||||||||||||||||
Structured Asset Secs Corp. | | Short-term investment | | US$ | 1,041 | N/A | US$ | 1,029 | ||||||||||||||||
Txu Elec Delivery Transition | | Short-term investment | | US$ | 3,530 | N/A | US$ | 3,467 | ||||||||||||||||
Thornburg Mtg Secs Tr | | Short-term investment | | US$ | 1,669 | N/A | US$ | 1,672 | ||||||||||||||||
Toyota Auto Receivables 2003 B | | Short-term investment | | US$ | 4,970 | N/A | US$ | 4,920 | ||||||||||||||||
Triad Auto Receivables Tr | | Short-term investment | | US$ | 4,899 | N/A | US$ | 4,838 | ||||||||||||||||
Usaa Auto Owner Tr | | Short-term investment | | US$ | 3,718 | N/A | US$ | 3,711 | ||||||||||||||||
Wfs Financial Owner Trust | | Short-term investment | | US$ | 5,008 | N/A | US$ | 4,970 | ||||||||||||||||
Wfs Finl 2004 2 Owner Tr | | Short-term investment | | US$ | 4,994 | N/A | US$ | 4,961 | ||||||||||||||||
Wfs Finl 2004 4 Owner Tr | | Short-term investment | | US$ | 5,399 | N/A | US$ | 5,345 | ||||||||||||||||
Wfs Finl 2005 2 Oner Tr | | Short-term investment | | US$ | 2,250 | N/A | US$ | 2,277 | ||||||||||||||||
Wachovia Auto Owner Tr | | Short-term investment | | US$ | 3,039 | N/A | US$ | 3,033 | ||||||||||||||||
Wachovia Auto Owner Tr | | Short-term investment | | US$ | 4,999 | N/A | US$ | 4,976 | ||||||||||||||||
Wells Fargo Finl Auto Owner Tr | | Short-term investment | | US$ | 5,299 | N/A | US$ | 5,307 | ||||||||||||||||
Whole Auto Ln Tr | | Short-term investment | | US$ | 1,954 | N/A | US$ | 1,969 | ||||||||||||||||
Whole Auto Ln Tr | | Short-term investment | | US$ | 4,000 | N/A | US$ | 3,956 | ||||||||||||||||
Whole Auto Ln Tr | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,952 | ||||||||||||||||
World Omni Auto Receivables Tr | | Short-term investment | | US$ | 5,963 | N/A | US$ | 5,884 | ||||||||||||||||
Commercial papers | ||||||||||||||||||||||||
Canadian Imperial | | Short-term investment | | US$ | 2,997 | N/A | US$ | 2,997 | ||||||||||||||||
Corporate issued notes | ||||||||||||||||||||||||
Canadian Imperial BK | | Short-term investment | | US$ | 1,999 | N/A | US$ | 1,999 | ||||||||||||||||
Washiongton Mutual | | Short-term investment | | US$ | 3,000 | N/A | US$ | 3,000 | ||||||||||||||||
Money market funds | ||||||||||||||||||||||||
SSGA Cash Mgmt Global Offshore | | Short-term investment | | US$ | 15,544 | N/A | US$ | 15,544 | ||||||||||||||||
Equity | ||||||||||||||||||||||||
Horizon Venture Fund I, L.P. | | Long-term investment | | 246,485 | N/A | 246,485 | ||||||||||||||||||
Crimson Asia Capital Ltd., L.P. | | Long-term investment | | 55,954 | N/A | 55,954 | ||||||||||||||||||
TSMC-North America
|
TSMC stock | Parent company | Short-term investment | 13,923 | 634,498 | | 786,960 | |||||||||||||||||
Chi Cherng
|
TSMC stock | Parent company | Short-term investment | 16,454 | 458,564 | | 929,970 | |||||||||||||||||
Hsin Ruey
|
TSMC stock | Parent company | Short-term investment | 16,485 | 459,511 | | 931,713 |
-46-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
TSMC International
|
Stock | |||||||||||||||||||||||
TSMC Development | Subsidiary | Long-term investment | 1 | US$ | 584,414 | 100 | US$ | 584,414 | ||||||||||||||||
TSMC Technology | Subsidiary | Long-term investment | 1 | US$ | 5,608 | 100 | US$ | 5,608 | ||||||||||||||||
InveStar | Subsidiary | Long-term investment | 18,505 | US$ | 19,048 | 97 | US$ | 19,048 | ||||||||||||||||
InveStar II | Subsidiary | Long-term investment | 51,300 | US$ | 33,921 | 97 | US$ | 33,921 | ||||||||||||||||
TSMC Development
|
WaferTech stock | Subsidiary | Long-term investment | | US$ | 417,535 | 99 | US$ | 417,535 | |||||||||||||||
InveStar
|
Common stock | |||||||||||||||||||||||
RichTek Technology Corp. | | Short-term investment | 787 | US$ | 77 | 1 | US$ | 2,657 | ||||||||||||||||
Advanced Power Electronics Corp. | | Short-term investment | 633 | US$ | 287 | 1 | US$ | 549 | ||||||||||||||||
Broadtek Electronics Corp. | | Short-term investment | 145 | US$ | 46 | | US$ | 60 | ||||||||||||||||
Monolithic Power Systems, Inc. | | Short-term investment | 1,975 | US$ | 1,567 | 7 | US$ | 17,245 | ||||||||||||||||
SiRF Technology Holdings, Inc. | | Short-term investment | 10 | US$ | 44 | | US$ | 163 | ||||||||||||||||
Programmable Microelectronics (Taiwan), Corp. | | Long-term investment | 575 | US$ | 218 | 1 | US$ | 218 | ||||||||||||||||
Capella Microsystems (Taiwan), Inc. | | Long-term investment | 530 | US$ | 168 | 3 | US$ | 168 | ||||||||||||||||
Global Testing Corp. | | Long-term investment | 66,339 | US$ | 5,611 | 9 | US$ | 5,611 | ||||||||||||||||
Signia Technologies, Inc. | | Long-term investment | 701 | US$ | 222 | 3 | US$ | 222 | ||||||||||||||||
Advanced Power Electronics Corp. | | Long-term investment | 1,123 | US$ | 495 | 2 | US$ | 973 | ||||||||||||||||
Incentia Design Systems, Inc. | | Long-term investment | 365 | US$ | 97 | 1 | US$ | 97 | ||||||||||||||||
Broadtek Electronics Corp. | | Long-term investment | 145 | US$ | 47 | | US$ | 60 | ||||||||||||||||
RichTek Technology Corp. | | Long-term investment | 632 | US$ | 64 | 1 | US$ | 2,133 | ||||||||||||||||
Preferred stock | ||||||||||||||||||||||||
Integrated Memory Logic, Inc. | | Long-term investment | 1,831 | US$ | 1,221 | 9 | US$ | 1,221 | ||||||||||||||||
Sensory, Inc. | | Long-term investment | 1,404 | US$ | 125 | 6 | US$ | 125 | ||||||||||||||||
IP Unity, Inc. | | Long-term investment | 1,008 | US$ | 494 | 2 | US$ | 494 | ||||||||||||||||
Sonics, Inc. | | Long-term investment | 2,686 | US$ | 3,530 | 4 | US$ | 3,530 | ||||||||||||||||
NanoAmp Solutions, Inc. | | Long-term investment | 541 | US$ | 853 | 2 | US$ | 853 | ||||||||||||||||
Memsic, Inc. | | Long-term investment | 2,727 | US$ | 1,500 | 10 | US$ | 1,500 | ||||||||||||||||
Reflectivity, Inc. | | Long-term investment | 1,064 | US$ | 741 | 2 | US$ | 741 | ||||||||||||||||
InveStar II
|
Common stock | |||||||||||||||||||||||
RichTek Technology Corp. | | Short-term investment | 373 | US$ | 213 | 1 | US$ | 1,260 | ||||||||||||||||
Monolithic Power Systems, Inc. | | Short-term investment | 864 | US$ | 2,081 | 3 | US$ | 7,550 | ||||||||||||||||
GeoVision, Inc. | | Short-term investment | 401 | US$ | 108 | 1 | US$ | 1,291 | ||||||||||||||||
Signia Technologies, Inc. | | Long-term investment | 351 | US$ | 101 | 1 | US$ | 101 | ||||||||||||||||
Ralink Technology (Taiwan), Inc. | | Long-term investment | 1,833 | US$ | 791 | 3 | US$ | 791 | ||||||||||||||||
Silicon Data International Co., Inc. | | Long-term investment | 667 | US$ | 204 | 3 | US$ | 204 | ||||||||||||||||
Procoat Technology, Inc. | | Long-term investment | 5,123 | US$ | 1,940 | 10 | US$ | 1,940 | ||||||||||||||||
Capella Microsystems (Taiwan), Inc. | | Long-term investment | 419 | US$ | 122 | 2 | US$ | 122 | ||||||||||||||||
Programmable Microelectronics (Taiwan), Inc. | | Long-term investment | 177 | US$ | 50 | | US$ | 50 | ||||||||||||||||
Auden Technology MFG. Co., Ltd. | | Long-term investment | 953 | US$ | 738 | 4 | US$ | 738 | ||||||||||||||||
EoNEX Technologies, Inc. | | Long-term investment | 55 | US$ | 3,048 | 5 | US$ | 3,048 | ||||||||||||||||
Conwise Technology Corporation, Ltd. | | Long-term investment | 2,800 | US$ | 490 | 14 | US$ | 490 | ||||||||||||||||
Goyatek Technology, Corp. | | Long-term investment | 2,088 | US$ | 545 | 7 | US$ | 545 | ||||||||||||||||
Trendchip Technologies Corp. | | Long-term investment | 2,000 | US$ | 861 | 5 | US$ | 861 |
-47-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
EON Technology, Corp. | | Long-term investment | 3,264 | US$ | 1,175 | 8 | US$ | 1,175 | ||||||||||||||||
eChannelOpen Holding, Inc. | | Long-term investment | 358 | US$ | 251 | 4 | US$ | 251 | ||||||||||||||||
eLCOS Microdisplay Technology, Ltd. | | Long-term investment | 270 | US$ | 27 | 1 | US$ | 27 | ||||||||||||||||
GeoVision, Inc. | | Long-term investment | 15 | US$ | 4 | | US$ | 47 | ||||||||||||||||
RichTek Technology Corp. | | Long-term investment | 296 | US$ | 169 | | US$ | 1,001 | ||||||||||||||||
Epic, Inc. | | Long-term investment | 191 | US$ | 37 | 1 | US$ | 37 | ||||||||||||||||
Preferred stock | ||||||||||||||||||||||||
Memsic, Inc. | | Long-term investment | 2,289 | US$ | 1,560 | 8 | US$ | 1,560 | ||||||||||||||||
NanoAmp Solutions, Inc. | | Long-term investment | 375 | US$ | 1,500 | 1 | US$ | 1,500 | ||||||||||||||||
Advanced Analogic Technology, Inc. | | Long-term investment | 948 | US$ | 1,261 | 2 | US$ | 1,261 | ||||||||||||||||
Sonics, Inc. | | Long-term investment | 3,082 | US$ | 3,082 | 5 | US$ | 3,082 | ||||||||||||||||
eLCOS Microdisplay Technology, Ltd. | | Long-term investment | 2,667 | US$ | 3,500 | 15 | US$ | 3,500 | ||||||||||||||||
Reflectivity, Inc. | | Long-term investment | 4,255 | US$ | 2,205 | 5 | US$ | 2,205 | ||||||||||||||||
Kilopass Technologies, Inc. | | Long-term investment | 3,887 | US$ | 2,000 | 18 | US$ | 2,000 | ||||||||||||||||
FangTek, Inc. | | Long-term investment | 6,806 | US$ | 3,250 | 34 | US$ | 3,250 | ||||||||||||||||
Alchip Technologies Limited | | Long-term investment | 2,597 | US$ | 2,950 | 18 | US$ | 2,950 | ||||||||||||||||
Emerging Alliance
|
Common stock | |||||||||||||||||||||||
Global Investment Holding, Inc. | | Long-term investment | 10,000 | $ | 100,000 | 6 | $ | 100,000 | ||||||||||||||||
RichWave Technology Corp. | | Long-term investment | 3,380 | US$ | 1,247 | 13 | US$ | 1,247 | ||||||||||||||||
NetLogic Microsystems, Inc. | | Long-term investment | 113 | US$ | 1,388 | 1 | US$ | 1,867 | ||||||||||||||||
Quake Technologies, Inc. | | Long-term investment | 46 | US$ | 35 | | US$ | 35 | ||||||||||||||||
Pixim, Inc. | | Long-term investment | 1,924 | US$ | 512 | 4 | US$ | 512 | ||||||||||||||||
Preferred stock | ||||||||||||||||||||||||
Quake Technologies, Inc. | | Long-term investment | 555 | US$ | 415 | 1 | US$ | 415 | ||||||||||||||||
Pixim, Inc. | | Long-term investment | 2,193 | US$ | 583 | | US$ | 583 | ||||||||||||||||
Ikanos Communication, Inc. | | Long-term investment | 7,446 | US$ | 3,125 | 3 | US$ | 3,125 | ||||||||||||||||
Quicksilver Technology, Inc. | | Long-term investment | 1,049 | US$ | | 4 | US$ | | ||||||||||||||||
Mosaic Systems, Inc. | | Long-term investment | 2,481 | US$ | 12 | 6 | US$ | 12 | ||||||||||||||||
Zenesis Technologies, Inc. | | Long-term investment | 1,204 | US$ | 699 | 4 | US$ | 699 | ||||||||||||||||
Reflectivity, Inc. | | Long-term investment | 4,848 | US$ | 2,479 | 4 | US$ | 2,479 | ||||||||||||||||
Miradia, Inc. | | Long-term investment | 3,040 | US$ | 1,000 | 4 | US$ | 1,000 | ||||||||||||||||
Axiom Microdevices, Inc. | | Long-term investment | 1,000 | US$ | 1,000 | 3 | US$ | 1,000 | ||||||||||||||||
Optichron, Inc. | | Long-term investment | 714 | US$ | 1,000 | 4 | US$ | 1,000 | ||||||||||||||||
NuCORE Technology Inc. | | Long-term investment | 2,254 | US$ | 1,455 | 2 | US$ | 1,455 | ||||||||||||||||
Next IO, Inc. | | Long-term investment | 800 | US$ | 500 | 2 | US$ | 500 | ||||||||||||||||
Audience, Inc. | | Long-term investment | 1,654 | US$ | 250 | 2 | US$ | 250 | ||||||||||||||||
Centrality Communications, Inc. | | Long-term investment | 809 | US$ | 1,000 | 2 | US$ | 1,000 | ||||||||||||||||
Layer N Networks, Inc. | | Long-term investment | 1,905 | US$ | 1,000 | 2 | US$ | 1,000 | ||||||||||||||||
Teknovus, Inc. | | Long-term investment | 6,977 | US$ | 1,327 | 3 | US$ | 1,327 | ||||||||||||||||
Optimal Corporation | | Long-term investment | 485 | US$ | 500 | 6 | US$ | 500 | ||||||||||||||||
Mobilygen Corporation | | Long-term investment | 1,415 | US$ | 750 | 1 | US$ | 750 | ||||||||||||||||
Warrants | ||||||||||||||||||||||||
Pixim, Inc. | | Long-term investment | 242 | | | |
-48-
June 30, 2005 | ||||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||||
Net Asset | ||||||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | Carrying Value | Percentage of | Value | |||||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | (US$ in Thousand) | Ownership | (US$ in Thousand) | Note | ||||||||||||||||
VTAF II
|
Common stock | |||||||||||||||||||||||
Yobon Technologies, Inc. | | Long-term investment | 1,675 | US$ | 787 | 17 | US$ | 787 | ||||||||||||||||
Sentelic, Corp. | | Long-term investment | 600 | US$ | 1,022 | 15 | US$ | 1,022 | ||||||||||||||||
Ultramedia Inc. (formerly Ivyon Technology, Inc.) | | Long-term investment | 200 | US$ | 697 | 10 | US$ | 697 | ||||||||||||||||
Preferred stock | ||||||||||||||||||||||||
Powerprecise Solutions, Inc. | | Long-term investment | 1,032 | US$ | 1,000 | 8 | US$ | 1,000 | ||||||||||||||||
Tzero Technologies, Inc. | | Long-term investment | 244 | US$ | 500 | 2 | US$ | 500 | ||||||||||||||||
Miradia, Inc. | | Long-term investment | 1,809 | US$ | 1,600 | 2 | US$ | 1,600 | ||||||||||||||||
Axiom Microdevices, Inc. | | Long-term investment | 761 | US$ | 776 | 2 | US$ | 776 | ||||||||||||||||
Next IO, Inc. | | Long-term investment | 216 | US$ | 182 | | US$ | 182 | ||||||||||||||||
Ageia Technologies, Inc. | | Long-term investment | 1,149 | US$ | 1,000 | 2 | US$ | 1,000 | ||||||||||||||||
Audience, Inc. | | Long-term investment | 531 | US$ | 102 | 1 | US$ | 102 | ||||||||||||||||
GemFire Corporation | | Long-term investment | 600 | US$ | 600 | 1 | US$ | 600 | ||||||||||||||||
Optichron, Inc. | | Long-term investment | 353 | US$ | 869 | 2 | US$ | 869 | ||||||||||||||||
Aquantia Corporation | | Long-term investment | | US$ | 150 | | US$ | 150 | ||||||||||||||||
Leadtrend Technology, Inc. | | Long-term investment | 900 | US$ | 431 | 5 | US$ | 431 | ||||||||||||||||
GUC
|
Open-ended funds | |||||||||||||||||||||||
Fubon Ju-I Fund | | Short-term investment | 643 | 10,000 | N/A | 10,008 | ||||||||||||||||||
Stock | ||||||||||||||||||||||||
Global Unichip Corporation NA | Subsidiary | Long-term investment | 100 | 3,884 | 100 | 3,884 |
-49-
Marketable | Disposal | Ending Balance | ||||||||||||||||||||||||||||||||||||||||||||
Securities | Beginning Balance | Acquisition | Carrying | Gain (Loss) | Amount | |||||||||||||||||||||||||||||||||||||||||
Type | Financial | Amount | Amount | Amount | Value | on Disposal | (US$ in | |||||||||||||||||||||||||||||||||||||||
Company | and | Statement | Nature of | Shares/Units | (US$ in | Shares/Units | (US$ in | Shares/Units | (US$ in | (US$ in | (US$ in | Shares/Units | Thousand) | |||||||||||||||||||||||||||||||||
Name | Name | Account | Counter-party | Relationship | (Thousand) | Thousand) | (Thousand) | Thousand) | (Thousand) | Thousand) | Thousand) | Thousand) | (Thousand) | (Note 1) | ||||||||||||||||||||||||||||||||
The Company | Bond funds | |||||||||||||||||||||||||||||||||||||||||||||
Dresdner Bond DAM Fund | Short-term investment | Allianz Dresdner Securities
Investment Consulting Co., Ltd.
|
| 80,833 | $ | 900,000 | | $ | | 11,530 | $ | 130,000 | $ | 128,383 | $ | 1,617 | 69,303 | $ | 771,617 | |||||||||||||||||||||||||||
JF Taiwan First Bond Fund | Short-term investment | JF Asset Management (Taiwan) Ltd.
|
| 84,886 | 1,151,463 | | | 10,893 | 150,000 | 147,762 | 2,238 | 73,993 | 1,003,701 | |||||||||||||||||||||||||||||||||
Barits Bond Fund | Short-term investment | Barits Securities Investment
Trust Co., Ltd.
|
| 76,640 | 900,000 | | | 12,591 | 150,000 | 147,851 | 2,149 | 64,049 | 752,149 | |||||||||||||||||||||||||||||||||
Bonds under repurchase agreement | Short-term investment | Chung Shing Bills Finance Corp.
and several financial
institutions
|
| | 249,449 | | | | 251,784 | 249,449 | 2,335 | | | |||||||||||||||||||||||||||||||||
Government bonds | ||||||||||||||||||||||||||||||||||||||||||||||
2003 Government Bond Series A | Short-term investment | BNP and several financial
institutions
|
| | 1,207,409 | | | | 1,216,500 | 1,207,409 | 9,091 | | | |||||||||||||||||||||||||||||||||
Kreditanstalt Fur Wiederaufbau | Short-term investment |
|
| | | | US$ | 6,881 | | | | | | US$ | 6,881 | |||||||||||||||||||||||||||||||
United States Treas NTS | Short-term investment |
|
| | US$ | 182,018 | | US$ | 256,453 | | US$ | 366,461 | US$ | 367,586 | US$ | (1,125 | ) | | US$ | 70,885 | ||||||||||||||||||||||||||
2002 Government Bond Series B | Long-term investment | China Bills Finance Corp. and
several financial institutions
|
| | | | 360,050 | | | | | | 358,683 | |||||||||||||||||||||||||||||||||
2005 Government Bond Series A | Long-term investment | China Bills Finance Corp. and
several financial institutions
|
| | | | 1,200,000 | | | | | | 1,200,000 | |||||||||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||||||||||||||||
Formosa Petrochemical Corporation | Short-term investment | China Bills Finance Corp.
|
| | | | 311,568 | | 311,568 | |||||||||||||||||||||||||||||||||||||
Taiwan Power Company | Short-term investment | China Bills Finance Corp.
|
| 2,777,798 | | | 2,002,676 | 1,961,516 | 41,160 | | 816,282 | |||||||||||||||||||||||||||||||||||
Allstate Finl Global Fdg LLC | Short-term investment |
|
| | US$ | 3,171 | | | | US$ | 3,086 | US$ | 3,171 | US$ | (85 | ) | | | ||||||||||||||||||||||||||||
Bear Stearns Cos Inc. | Short-term investment |
|
| | | | US$ | 3,757 | | | | | | US$ | 3,757 | |||||||||||||||||||||||||||||||
Citigroup Inc. | Short-term investment |
|
| | US$ | 3,583 | | | | US$ | 3,512 | US$ | 3,583 | US$ | (71 | ) | | | ||||||||||||||||||||||||||||
Countrywide Fdg Corp. Mtn | Short-term investment |
|
| | | | US$ | 3,500 | | | | | | US$ | 3,500 | |||||||||||||||||||||||||||||||
Countrywide Finl Corp. | Short-term investment |
|
| | | | US$ | 3,000 | | | | | | US$ | 3,000 | |||||||||||||||||||||||||||||||
Credit Suisse Fb USA Inc. | Short-term investment |
|
| | US$ | 2,645 | | US$ | 4,141 | | US$ | 2,593 | US$ | 2,645 | US$ | (52 | ) | | US$ | 4,141 | ||||||||||||||||||||||||||
Credit Suisse First Boston USA | Short-term investment |
|
| | | | US$ | 3,832 | | US$ | 3,780 | US$ | 3,832 | US$ | (52 | ) | | | ||||||||||||||||||||||||||||
Deere John Cap Corp. | Short-term investment |
|
| | | | US$ | 5,079 | | | | | | US$ | 5,079 | |||||||||||||||||||||||||||||||
European Invt Bk. | Short-term investment |
|
| | | | US$ | 3,918 | | | | | | US$ | 3,918 | |||||||||||||||||||||||||||||||
General Elec Cap Corp. Mtn | Short-term investment |
|
| | US$ | 3,467 | | | | US$ | 3,432 | US$ | 3,467 | US$ | (35 | ) | | | ||||||||||||||||||||||||||||
General Elec Cap Corp. Mtn | Short-term investment |
|
| | | | US$ | 8,862 | | | | | | US$ | 8,862 | |||||||||||||||||||||||||||||||
General Elec Cap Corp. Mtn | Short-term investment |
|
| | | | US$ | 3,989 | | | | | | US$ | 3,989 | |||||||||||||||||||||||||||||||
General Elec Cap Corp. Mtn | Short-term investment |
|
| | US$ | 3,886 | | | | US$ | 3,822 | US$ | 3,886 | US$ | (64 | ) | | | ||||||||||||||||||||||||||||
General Re Corp. | Short-term investment |
|
| | | | US$ | 3,500 | | | | | | US$ | 3,500 | |||||||||||||||||||||||||||||||
Goldman Sachs Group Inc Mtn | Short-term investment |
|
| | US$ | 3,505 | | | | US$ | 3,506 | US$ | 3,505 | US$ | 1 | | | |||||||||||||||||||||||||||||
Hancock John Global Fdg II Mtn | Short-term investment |
|
| | | | US$ | 3,566 | | | | | | US$ | 3,566 | |||||||||||||||||||||||||||||||
ING Sec Life Ins Ingslf | Short-term investment |
|
| | US$ | 3,012 | | | | US$ | 3,008 | US$ | 3,012 | US$ | (4 | ) | | | ||||||||||||||||||||||||||||
International Business Machs | Short-term investment |
|
| | | | US$ | 7,247 | | US$ | 4,994 | US$ | 4,998 | US$ | (4 | ) | | US$ | 2,249 | |||||||||||||||||||||||||||
Intl Lease Fin Corp. Mtn | Short-term investment |
|
| | | | US$ | 3,028 | | | | | | US$ | 3,028 | |||||||||||||||||||||||||||||||
Key Bk Na Med Term Nts Bk Entr | Short-term investment |
|
| | | | US$ | 4,450 | | | | | | US$ | 4,450 | |||||||||||||||||||||||||||||||
Morgan Stanley Group Inc. | Short-term investment |
|
| | US$ | 3,638 | | | | US$ | 3,571 | US$ | 3,638 | US$ | (67 | ) | | | ||||||||||||||||||||||||||||
Morgan Stanley Group Inc. | Short-term investment |
|
| | US$ | 1,050 | | US$ | 4,507 | | | | | | US$ | 5,557 | ||||||||||||||||||||||||||||||
National City Corp. | Short-term investment |
|
| | | | US$ | 3,426 | | | | | | US$ | 3,426 | |||||||||||||||||||||||||||||||
Nationsbank Corp. | Short-term investment |
|
| | US$ | 3,644 | | | | US$ | 3,522 | US$ | 3,644 | US$ | (122 | ) | | | ||||||||||||||||||||||||||||
Nationwide Bldg Soc Mtn | Short-term investment |
|
| | | | US$ | 3,000 | | | | | | US$ | 3,000 | |||||||||||||||||||||||||||||||
Ppg Inds Inc. | Short-term investment |
|
| | | | US$ | 3,571 | | US$ | 3,674 | US$ | 3,571 | US$ | 103 | | |
-50-
Marketable | Disposal | Ending Balance | ||||||||||||||||||||||||||||
Securities | Beginning Balance | Acquisition | Carrying | Gain (Loss) | Amount | |||||||||||||||||||||||||
Type | Financial | Amount | Amount | Amount | Value | on Disposal | (US$ in | |||||||||||||||||||||||
Company | and | Statement | Nature of | Shares/Units | (US$ in | Shares/Units | (US$ in | Shares/Units | (US$ in | (US$ in | (US$ in | Shares/Units | Thousand) | |||||||||||||||||
Name | Name | Account | Counter-party | Relationship | (Thousand) | Thousand) | (Thousand) | Thousand) | (Thousand) | Thousand) | Thousand) | Thousand) | (Thousand) | (Note 1) | ||||||||||||||||
Pricoa Global Fdg 1 Mtn | Short-term investment |
|
| | | | US$3,500 | | | | | | US$3,500 | |||||||||||||||||
Pricoa Global Fdg 1 Mtn | Short-term investment |
|
| | US$3,507 | | | | US$3,510 | US$3,507 | US$ | 3 | | | ||||||||||||||||
Pricoa Global Fdg 1 Mtn | Short-term investment |
|
| | US$3,050 | | | | US$3,052 | US$3,050 | US$ | 2 | | | ||||||||||||||||
Principal Life Global Fdg I Gl. | Short-term investment |
|
| | US$3,168 | | | | US$3,049 | US$3,168 | US$ | (119 | ) | | | |||||||||||||||
Salomon Smith Barney Hldgs Inc. | Short-term investment |
|
| | US$3,160 | | | | US$3,046 | US$3,160 | US$ | (114 | ) | | | |||||||||||||||
Wachovia Corp. | Short-term investment |
|
| | US$3,720 | | | | US$3,568 | US$3,720 | US$ | (152 | ) | | | |||||||||||||||
Washington Mut Fin Corp | Short-term investment |
|
| | US$4,768 | | | | US$3,590 | US$3,725 | US$ | (135 | ) | | US$1,043 | |||||||||||||||
Agency bonds | ||||||||||||||||||||||||||||||
Federal Farm Cr Bks | Short-term investment |
|
| | | | US$3,985 | | | | | | US$3,985 | |||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | | | US$7,887 | | | | | | US$7,887 | |||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | | | US$3,379 | | | | | | US$3,379 | |||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | | | US$9,134 | | | | | | US$9,134 | |||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | US$7,962 | | | | US$4,954 | US$4,972 | US$ | (18) | | US$2,990 | ||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | US$7,014 | | | | US$6,884 | US$7,014 | US$ | (130 | ) | | | |||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | US$4,948 | | | | US$4,947 | US$4,948 | US$ | (1) | | | ||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | | | US$3,932 | | | | | | US$3,932 | |||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | US$7,042 | | | | US$6,946 | US$7,042 | US$ | (96) | | | ||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | | | US$4,939 | | | | | | US$4,939 | |||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | US$13,983 | | | | US$13,865 | US$13,983 | US$ | (118 | ) | | | |||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | | | US$4,136 | | | | | | US$4,136 | |||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | | | US$4,965 | | | | | | US$4,965 | |||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | | | US$7,558 | | | | | | US$7,558 | |||||||||||||||||
Federal Home Ln Bks | Short-term investment |
|
| | | | US$8,594 | | | | | | US$8,594 | |||||||||||||||||
Federal Home Ln Mtg Corp. | Short-term investment |
|
| | | | US$5,389 | | | | | | US$5,389 | |||||||||||||||||
Federal Home Ln Mtg Corp. | Short-term investment |
|
| | | | US$6,925 | | US$6,931 | US$6,925 | US$ | 6 | | | ||||||||||||||||
Federal Home Ln Mtg Corp. | Short-term investment |
|
| | US$4,953 | | | | US$4,938 | US$4,953 | US$ | (15) | | | ||||||||||||||||
Federal Home Loan Corp. | Short-term investment |
|
| | | | US$7,989 | | | | | | US$7,989 | |||||||||||||||||
Federal Home Loan Mtg Corp. | Short-term investment |
|
| | US$4,903 | | US$9,819 | | US$9,798 | US$9,819 | US$ | (21) | | US$4,903 | ||||||||||||||||
Federal Natl Mtg Assn | Short-term investment |
|
| | | | US$4,051 | | | | | | US$4,051 | |||||||||||||||||
Fnma Pool 793025 | Short-term investment |
|
| | | | US$3,915 | | US$146 | US$148 | US$ | (2) | | US$3,767 | ||||||||||||||||
Federal Natl Mtg Assn | Short-term investment |
|
| | | | US$5,337 | | | | | | US$5,337 | |||||||||||||||||
Federal Natl Mtg Assn | Short-term investment |
|
| | | | US$4,430 | | | | | | US$4,430 | |||||||||||||||||
Federal Natl Mtg Assn | Short-term investment |
|
| | | | US$4,921 | | | | | | US$4,921 | |||||||||||||||||
Federal Natl Mtg Assn | Short-term investment |
|
| | US$6,940 | | | | US$3,462 | US$3,470 | US$ | (8) | | US$3,470 | ||||||||||||||||
Federal Natl Mtg Assn | Short-term investment |
|
| | US$6,997 | | | | US$6,956 | US$6,997 | US$ | (41) | | | ||||||||||||||||
Federal Natl Mtg Assn | Short-term investment |
|
| | | | US$4,061 | | | | | | US$4,061 | |||||||||||||||||
Federal Natl Mtg Assn | Short-term investment |
|
| | | | US$7,892 | | | | | | US$7,892 | |||||||||||||||||
Federal Natl Mtg Assn | Short-term investment |
|
| | | | US$4,943 | | | | | | US$4,943 | |||||||||||||||||
Federal Natl Mtg Assn | Short-term investment |
|
| | | | US$17,888 | | | | | | US$17,888 | |||||||||||||||||
Federal Natl Mtg Assn | Short-term investment |
|
| | | | US$14,952 | | | | | | US$14,952 | |||||||||||||||||
Federal Natl Mtg Assn Mtn | Short-term investment |
|
| | | | US$9,758 | | | | | | US$9,758 | |||||||||||||||||
Freddie Mac | Short-term investment |
|
| | US$4,929 | | | | US$4,931 | US$4,929 | US$ | 2 | | | ||||||||||||||||
Corporate issued asset backed securities | ||||||||||||||||||||||||||||||
American Express Cr Account Ma | Short-term investment |
|
| | US$3,445 | | | | US$3,428 | US$3,445 | US$ | (17) | | | ||||||||||||||||
California Infr + Economic Dev | Short-term investment |
|
| | US$4,298 | | | | US$4,153 | US$4,298 | US$ | (145 | ) | | | |||||||||||||||
California Infras + Ecomomic | Short-term investment |
|
| | US$6,126 | | | | US$5,964 | US$6,126 | US$ | (162 | ) | | | |||||||||||||||
Caterpillar Finl Asset Tr | Short-term investment |
|
| | | | US$3,299 | | | | | | US$3,299 | |||||||||||||||||
Cendant Rent Car Fdg Aesop LLC | Short-term investment |
|
| | | | US$11,626 | | | | | | US$11,626 | |||||||||||||||||
Citibank Cr Card Issuance Tr | Short-term investment |
|
| | US$4,959 | | | | US$4,948 | US$4,959 | US$ | (11) | | | ||||||||||||||||
CWABS Inc. | Short-term investment |
|
| | US$1,903 | | US$1,865 | | US$3,773 | US$3,768 | US$ | 5 | | | ||||||||||||||||
CWMBS Inc. | Short-term investment |
|
| | | | US$4,040 | | US$4,059 | US$4,040 | US$ | 19 | | | ||||||||||||||||
First USA Credit Cr Master Tr | Short-term investment |
|
| | US$5,011 | | | | US$5,007 | US$5,011 | US$ | (4) | | | ||||||||||||||||
Honda Auto Receivables | Short-term investment |
|
| | US$5,000 | | | | US$4,984 | US$5,000 | US$ | (16) | | | ||||||||||||||||
Hyundai Auto Receivables Tr | Short-term investment |
|
| | | | US$3,250 | | | | | | US$3,250 | |||||||||||||||||
Hyundai Auto Receivables Tr | Short-term investment |
|
| | | | US$3,999 | | | | | | US$3,999 | |||||||||||||||||
LB UBS Coml Mtg Tr | Short-term investment |
|
| | | | US$4,243 | | US$60 | US$59 | US$ | 1 | | US$4,184 |
-51-
Marketable | Disposal | Ending Balance | ||||||||||||||||||||||||||||||
Securities | Beginning Balance | Acquisition | Carrying | Gain (Loss) | Amount | |||||||||||||||||||||||||||
Type | Financial | Amount | Amount | Amount | Value | on Disposal | (US$ in | |||||||||||||||||||||||||
Company | and | Statement | Nature of | Shares/Units | (US$ in | Shares/Units | (US$ in | Shares/Units | (US$ in | (US$ in | (US$ in | Shares/Units | Thousand) | |||||||||||||||||||
Name | Name | Account | Counter-party | Relationship | (Thousand) | Thousand) | (Thousand) | Thousand) | (Thousand) | Thousand) | Thousand) | Thousand) | (Thousand) | (Note 1) | ||||||||||||||||||
Massachusetts Rrb Spl Purp Tr | Short-term investment |
|
| | | | US$3,900 | | | | | | US$ | 3,900 | ||||||||||||||||||
Mastr Asset Backed Secs Tr | Short-term investment |
|
| | | | US$3,825 | | US$1,145 | US$1,145 | | | US$ | 2,680 | ||||||||||||||||||
Mastr Asset Backed Secs Tr | Short-term investment |
|
| | | | US$3,499 | | | | | | US$ | 3,499 | ||||||||||||||||||
Mbna Cr Card Master Nt Tr | Short-term investment |
|
| | | | US$5,018 | | US$5,015 | US$5,018 | US$ | (3 | ) | | | |||||||||||||||||
Mbna Master Cr Card Tr II | Short-term investment |
|
| | | | US$8,108 | | | | | | US$ | 8,108 | ||||||||||||||||||
Nissan Auto Receivables Own Tr | Short-term investment |
|
| | US$4,999 | | | | US$4,989 | US$4,999 | US$ | (10 | ) | | | |||||||||||||||||
Nissan Auto Receivables Owner | Short-term investment |
|
| | US$4,853 | | | | US$4,879 | US$4,853 | US$ | 26 | | | ||||||||||||||||||
Pg+E Energy Recovery Fdg LLC | Short-term investment |
|
| | | | US$4,749 | | | | | | US$ | 4,749 | ||||||||||||||||||
Prime Cr Card Master Tr | Short-term investment |
|
| | | | US$4,080 | | | | | | US$ | 4,080 | ||||||||||||||||||
Residential Fdg Mtg Secs I Inc | Short-term investment |
|
| | | | US$5,589 | | US$113 | US$114 | US$ | (1 | ) | | US$ | 5,475 | ||||||||||||||||
Revolving Home Equity Ln Tr | Short-term investment |
|
| | | | US$5,000 | | US$620 | US$620 | | | US$ | 4,380 | ||||||||||||||||||
Sequoia Mtg Tr | Short-term investment |
|
| | | | US$4,560 | | US$4,560 | US$4,560 | | | | |||||||||||||||||||
Sequoia Mtg Tr | Short-term investment |
|
| | | | US$3,500 | | | | | | US$ | 3,500 | ||||||||||||||||||
TXU Elec Delivery Transition | Short-term investment |
|
| | US$7,736 | | | | US$4,185 | US$4,206 | US$ | (21 | ) | | US$ | 3,530 | ||||||||||||||||
USAA Auto Owner Tr | Short-term investment |
|
| | | | US$3,718 | | | | | | 3,718 | |||||||||||||||||||
USAA Auto Owner Tr | Short-term investment |
|
| | US$4,000 | | | | US$3,995 | US$4,000 | US$ | (5 | ) | | | |||||||||||||||||
Wells Fargo Finl Auto Owner Tr | Short-term investment |
|
| | | | US$5,299 | | | | | | US$ | 5,299 | ||||||||||||||||||
Whole Auto Ln Tr | Short-term investment |
|
| | US$5,967 | | | | US$5,973 | US$5,967 | US$ | 6 | | |
Note: | The ending balance included the bond premium or discount amortization amount. |
-52-
Abnormal | Notes/Accounts Payable | |||||||||||||||||||||||||||||
Nature | Transaction Details | Transaction | or Receivable | |||||||||||||||||||||||||||
Company | Related | of | Purchase/ | % to | Payment | Unit | Payment | Ending | % to | |||||||||||||||||||||
Name | Party | Relationship | Sale | Amount | Total | Terms | Price | Terms | Balance | Total | Note | |||||||||||||||||||
The Company | TSMC-North America | Subsidiary
|
Sales | $ | 64,760,945 | 56 | Net 30 days after invoice date | None | None | $ | 14,513,699 | 41 | ||||||||||||||||||
Philips and its affiliates | Major shareholder
|
Sales | 1,147,115 | 1 | Net 30 days after monthly closing | None | None | 467,843 | 1 | |||||||||||||||||||||
GUC | Subsidiary
|
Sales | 135,805 | | Net 30 days after monthly closing | None | None | 11,917 | | |||||||||||||||||||||
WaferTech | Subsidiary
|
Purchases | 5,117,622 | 31 | Net 30 days after monthly closing | None | None | (793,200 | ) | 10 | ||||||||||||||||||||
VIS | Investee accounted for using equity method |
Purchases | 2,168,998 | 13 | Net 30 days after monthly closing | None | None | (883,144 | ) | 11 | ||||||||||||||||||||
SSMC | Investee accounted for using equity method |
Purchases | 2,094,617 | 13 | Net 30 days after monthly closing | None | None | (284,080 | ) | 4 | ||||||||||||||||||||
TSMC-Shanghai | Subsidiary
|
Purchases | 234,333 | 1 | Net 30 days after monthly closing | None | None | (70,080 | ) | 1 |
-53-
Amounts | ||||||||||||||||||||||
Received | Allowance | |||||||||||||||||||||
Nature | in | for | ||||||||||||||||||||
Company | Related | of | Ending | Turnover | Overdue | Subsequent | Bad | |||||||||||||||
Name | Party | Relationship | Balance | Rate | Amount | Action Taken | Period | Debts | ||||||||||||||
The Company | TSMC-North America | Subsidiary
|
$ | 14,929,349 | 43 days | $ | 3,909,354 | Accelerate demand on account receivables | $ | 5,259,367 | $ | |||||||||||
TSMC Technology | Indirect subsidiaries
|
715,306 | Note | | | | | |||||||||||||||
Philips and its affiliates | Major shareholder
|
467,843 | 83 days | | | 227,462 | | |||||||||||||||
TSMC-Shanghai | Subsidiary
|
271,905 | Note | 268,998 | Accelerate demand on account receivables | | | |||||||||||||||
SSMC | Investee
accounted for using equity method
|
115,460 | Note | 5,092 | Accelerate demand on account receivables | | | |||||||||||||||
Note: | The ending balance included other receivables; therefore, it is not applicable for the calculation of the turnover rate. |
-54-
Original | Balance as of | |||||||||||||||||||||||||||||||||||
Main | Investment | June 30, 2005 | Net Income | Investment | ||||||||||||||||||||||||||||||||
Businesses | Amount | Percentage | Carrying | (Loss) | Gain | |||||||||||||||||||||||||||||||
Investor | Investee | and | June 30, | December 31, | Shares | of | Value | of the | (Loss) | |||||||||||||||||||||||||||
Company | Company | Location | Products | 2005 | 2004 | (Thousand) | Ownership | (Note 1) | Investee | (Note 2) | Note | |||||||||||||||||||||||||
The Company | TSMC-North America | San Jose, California, U.S.A. | Sales and marketing of integrated circuits
and semiconductor devices
|
$ | 333,718 | $ | 333,718 | 11,000 | 100 | $ | 794,692 | $ | 259,665 | $ | 231,366 | Subsidiary | ||||||||||||||||||||
TSMC-Europe | Amsterdam, the Netherlands | Marketing activities
|
15,749 | 15,749 | | 100 | 22,491 | 143 | 143 | Subsidiary | ||||||||||||||||||||||||||
TSMC-Japan | Yokohama, Japan | Marketing activities
|
83,760 | 83,760 | 6 | 100 | 95,013 | 327 | 327 | Subsidiary | ||||||||||||||||||||||||||
TSMC-Shanghai | Shanghai, China | Manufacturing and sales of integrated
circuits at the order of and pursuant to
product design specifications provided by
customers
|
12,180,367 | 9,187,962 | | 100 | 9,967,851 | (1,068,676 | ) | (1,068,676 | ) | Subsidiary | ||||||||||||||||||||||||
VIS | Hsin-Chu, Taiwan | Research, design, development, manufacture,
packaging, testing and sale of memory
integrated circuits, LSI, VLSI and related
parts
|
8,119,816 | 8,119,816 | 437,891 | 27 | 5,115,164 | 1,685,395 | 379,350 | Investee | ||||||||||||||||||||||||||
TSMC International | Tortola, British Virgin Islands | Providing investment in companies involved
in the design, manufacture, and other
related business in the semiconductor
industry
|
31,445,780 | 31,445,780 | 987,968 | 100 | 23,057,382 | (495,885 | ) | (495,885 | ) | Subsidiary | ||||||||||||||||||||||||
Chi Cherng | Taipei, Taiwan | Investment activities
|
300,000 | 300,000 | | 36 | 77,971 | 76,725 | (3,937 | ) | Investee | |||||||||||||||||||||||||
Hsin Ruey | Taipei, Taiwan | Investment activities
|
300,000 | 300,000 | | 36 | 77,256 | 76,812 | (3,965 | ) | Investee | |||||||||||||||||||||||||
TSMC Partners | Tortola, British Virgin Islands | Investment activities
|
10,350 | 10,350 | 300 | 100 | 3,873,176 | 1,427 | 1,427 | Subsidiary | ||||||||||||||||||||||||||
SSMC | Singapore | Fabrication and supply of integrated circuits
|
6,408,190 | 6,408,190 | 382 | 32 | 3,514,280 | 761,550 | 243,696 | Investee | ||||||||||||||||||||||||||
Emerging Alliance | Cayman Islands | Investing in new start-up technology companies |
1,526,074 | 1,447,957 | | 99 | 820,765 | (73,428 | ) | (73,061 | ) | Subsidiary | ||||||||||||||||||||||||
GUC | Hsin-Chu, Taiwan | Researching, developing, manufacturing,
testing and marketing of integrated circuits
|
409,920 | 409,920 | 40,149 | 46 | 403,208 | 21,350 | 13,215 | Investee | ||||||||||||||||||||||||||
VisEra | Hsin-Chu, Taiwan | Manufacturing, material wholesaling and
retailing of electronic spare parts
|
51,000 | 51,000 | 5,100 | 25 | 62,668 | 17,915 | 3,552 | Investee | ||||||||||||||||||||||||||
VTAF II | Cayman Islands | Investing in new start-up technology companies |
487,862 | 332,412 | | 98 | 469,749 | (12,245 | ) | (13,570 | ) | Subsidiary |
Note 1: | The treasury stock is deducted from the carrying value. |
Note 2: | The gains on disposal of the stocks held by subsidiaries (treated as treasury stocks) are excluded. |
-55-
Accumulated | Accumulated | |||||||||||||||||||||||||||||||||
Outflow | Outflow | Accumulated | ||||||||||||||||||||||||||||||||
of | of | Investment | Investment | |||||||||||||||||||||||||||||||
Investment | Investment | Accumulated | in | Amounts | ||||||||||||||||||||||||||||||
Total | from | from | Inward | Mainland | Authorized | |||||||||||||||||||||||||||||
Amount | Taiwan | Taiwan | Remittance | China | by | Upper | ||||||||||||||||||||||||||||
of | as of | as of | Percentage | Carrying | of | as of | Investment | Limit | ||||||||||||||||||||||||||
Main | Paid-in | January 1, | Investment Flows | June 30, | of | Investment | Value | Earnings | June 30, | Commission, | on | |||||||||||||||||||||||
Businesses | Capital | 2005 | Outflow | 2005 | Ownership | Gain | as of | as of | 2005 | MOEA | Investment | |||||||||||||||||||||||
Investee | and | (RMB in | Investment | (US$ in | (US$ in | (US$ in | in | (Loss) | June 30, | June 30, | (US$ in | (US$ in | (US$ in | |||||||||||||||||||||
Company | Products | Thousand) | Type | Thousand) | Thousand) | Inflow | Thousand) | Investment | (Note 2) | 2005 | 2005 | Thousand) | Thousand) | Thousand) | ||||||||||||||||||||
TSMC (Shanghai) Company Limited |
Manufacturing and
sales of integrated
circuits at the
order of and
pursuant to product
design
specifications
provided by
customers
|
$12,180,367 (RMB3,070,623) |
(Note 1) | $9,187,962 (US$276,000) |
$2,992,405 (US$95,000) |
$ | $12,180,367 (US$371,000) |
100 | % | $ | (1,068,676 | ) | $ | 9,967,851 | $ | $12,180,367 (US$371,000) |
$12,180,367 (US$371,000) |
$12,180,367 (US$371,000) |
Note 1: | Direct investment in TSMC-Shanghai US$371,000 thousand. |
Note 2: | Amount was recognized based on the reviewed financial statements. |
-56-
- 1 -
- 2 -
ASSETS | Amount | % | ||||||
CURRENT ASSETS |
||||||||
Cash and cash equivalents (Notes 2, 3 and 4) |
$ | 88,405,154 | 17 | |||||
Short-term investments, net (Notes 2 and 4) |
49,558,447 | 10 | ||||||
Receivables from related parties (Note 20) |
740,202 | | ||||||
Notes and accounts receivable |
36,302,501 | 7 | ||||||
Allowance for doubtful receivables (Note 2) |
(984,650 | ) | | |||||
Allowance for sales returns and others (Note 2) |
(3,963,039 | ) | (1 | ) | ||||
Other receivables from related parties (Note 20) |
161,859 | | ||||||
Other financial assets (Notes 2 and 23) |
1,894,925 | 1 | ||||||
Inventories, net (Notes 2 and 5) |
15,158,776 | 3 | ||||||
Deferred income tax assets (Notes 2 and 14) |
5,408,883 | 1 | ||||||
Prepaid expenses and other current assets (Note 2) |
1,273,612 | | ||||||
Total current assets |
193,956,670 | 38 | ||||||
LONG-TERM INVESTMENTS (Notes 2, 6, 18 and 23) |
||||||||
Equity method |
8,629,444 | 2 | ||||||
Cost method |
3,323,874 | 1 | ||||||
Long-term bonds |
16,342,005 | 3 | ||||||
Other investments |
10,955,960 | 2 | ||||||
Total long-term investments |
39,251,283 | 8 | ||||||
PROPERTY, PLANT AND EQUIPMENT (Notes 2, and 7) |
||||||||
Cost |
||||||||
Land and land improvements |
795,981 | | ||||||
Buildings |
102,814,480 | 20 | ||||||
Machinery and equipment |
488,162,101 | 95 | ||||||
Office equipment |
9,108,552 | 2 | ||||||
Leased assets |
560,957 | | ||||||
Other equipment |
153,423 | | ||||||
Total cost |
601,595,494 | 117 | ||||||
Accumulated depreciation |
(365,018,772 | ) | (71 | ) | ||||
Advance payments and construction in progress |
20,429,713 | 4 | ||||||
Net property, plant and equipment |
257,006,435 | 50 | ||||||
GOODWILL (Note 2) |
6,441,721 | 1 | ||||||
OTHER ASSETS |
||||||||
Deferred charges, net (Notes 2, 8 and 22) |
8,210,644 | 2 | ||||||
Deferred income tax assets (Notes 2 and 14) |
6,338,720 | 1 | ||||||
Refundable deposits |
114,435 | | ||||||
Assets leased to others, net (Note 2) |
75,746 | | ||||||
Others (Note 2) |
25,594 | | ||||||
Total other assets |
14,765,139 | 3 | ||||||
TOTAL |
$ | 511,421,248 | 100 | |||||
LIABILITIES AND SHAREHOLDERS EQUITY | Amount | % | ||||||
CURRENT LIABILITIES |
||||||||
Short-term bank loans (Note 9) |
$ | 316,180 | | |||||
Accounts payable |
6,365,721 | 1 | ||||||
Payables to related parties (Note 20) |
1,239,322 | | ||||||
Payables to contractors and equipment suppliers |
11,383,836 | 3 | ||||||
Cash dividends and bonus payable (Note 16) |
49,506,027 | 10 | ||||||
Accrued expenses and other current liabilities (Notes 2, 12, 22 and 23) |
10,745,072 | 2 | ||||||
Current portion of long-term liabilities (Notes 10 and 11) |
10,505,489 | 2 | ||||||
Total current liabilities |
90,061,647 | 18 | ||||||
LONG-TERM LIABILITIES |
||||||||
Long-term bank loans (Note 10) |
957,510 | | ||||||
Bonds payable (Note 11) |
19,500,000 | 4 | ||||||
Other long-term payables (Notes 12 and 22) |
8,020,949 | 2 | ||||||
Other payables to related parties (Notes 20 and 22) |
1,727,133 | | ||||||
Liability under capital leases (Note 2) |
560,957 | | ||||||
Total long-term liabilities |
30,766,549 | 6 | ||||||
OTHER LIABILITIES |
||||||||
Accrued pension cost (Notes 2 and 13) |
3,424,325 | 1 | ||||||
Guarantee deposits (Note 22) |
1,518,850 | | ||||||
Others |
709,043 | | ||||||
Total other liabilities |
5,652,218 | 1 | ||||||
Total liabilities |
126,480,414 | 25 | ||||||
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT (Notes 2, 16,
17 and 18) |
||||||||
Capital stock $10 par value
|
||||||||
Authorized: 27,050,000 thousand shares |
||||||||
Issued: 24,726,129 thousand shares |
247,261,288 | 48 | ||||||
Capital surplus |
56,720,875 | 11 | ||||||
Retained earnings: |
||||||||
Appropriated as legal capital reserve |
34,348,208 | 7 | ||||||
Appropriated as special capital reserve |
2,226,427 | 1 | ||||||
Unappropriated earnings |
47,808,698 | 9 | ||||||
Cumulative translation adjustments |
(2,612,996 | ) | (1 | ) | ||||
Treasury
stock (at cost) 46,862 thousand shares |
(1,552,573 | ) | | |||||
Total equity attributable to shareholders of the parent |
384,199,927 | 75 | ||||||
MINORITY INTEREST IN SUBSIDIARIES (Note 2) |
740,907 | | ||||||
Total shareholders equity |
384,940,834 | 75 | ||||||
TOTAL |
$ | 511,421,248 | 100 | |||||
- 3 -
Amount | % | |||||||
GROSS SALES (Notes 2 and 20) |
$ | 118,589,458 | ||||||
SALES RETURNS AND ALLOWANCES (Note 2) |
1,753,728 | |||||||
NET SALES |
116,835,730 | 100 | ||||||
COST OF SALES (Notes 15 and 20) |
70,903,582 | 61 | ||||||
GROSS PROFIT |
45,932,148 | 39 | ||||||
OPERATING EXPENSES (Notes 15 and 20) |
||||||||
Research and development |
6,973,117 | 5 | ||||||
General and administrative |
4,766,049 | 4 | ||||||
Marketing |
1,810,727 | 2 | ||||||
Total operating expenses |
13,549,893 | 11 | ||||||
INCOME FROM OPERATIONS |
32,382,255 | 28 | ||||||
NON-OPERATING INCOME AND GAINS |
||||||||
Interest (Notes 2 and 23) |
1,756,871 | 2 | ||||||
Settlement income (Note 22) |
786,750 | 1 | ||||||
Investment income recognized by equity method (Notes 2 and 6) |
623,046 | | ||||||
Subsidy income |
311,846 | | ||||||
Technical service income (Notes 20 and 22) |
186,962 | | ||||||
Gain on disposal of property, plant and equipment (Note 2) |
35,808 | | ||||||
Others (Note 20) |
220,040 | | ||||||
Total non-operating income and gains |
3,921,323 | 3 | ||||||
NON-OPERATING EXPENSES AND LOSSES |
||||||||
Interest (Notes 2, 11 and 23) |
1,499,733 | 2 | ||||||
Foreign exchange loss, net (Notes 2 and 23) |
166,624 | | ||||||
Loss on idle assets (Note 2) |
106,972 | | ||||||
Loss on impairment of long-term investments (Note 2) |
88,486 | | ||||||
Loss on disposal of investments, net (Note 2) |
64,324 | | ||||||
Loss on disposal of property, plant and equipment (Note 2) |
53,625 | | ||||||
Unrealized valuation loss of short-term investments (Note 2) |
40,971 | | ||||||
Others |
75,003 | | ||||||
Total non-operating expenses and losses |
2,095,738 | 2 | ||||||
- 4 -
Amount | % | |||||||
INCOME BEFORE INCOME TAX |
$ | 34,207,840 | 29 | |||||
INCOME TAX BENEFIT (Notes 2 and 14) |
1,003,785 | 1 | ||||||
NET INCOME |
$ | 35,211,625 | 30 | |||||
ATTRIBUTABLE TO: |
||||||||
Shareholders of the parent |
35,187,334 | 30 | ||||||
Minority interest |
24,291 | | ||||||
$ | 35,211,625 | 30 | ||||||
Net Income Attributable to | ||||||||
Shareholders of the Parent | ||||||||
Before Tax | After Tax | |||||||
CONSOLIDATED EARNINGS PER SHARE (NT$, Note 19) |
||||||||
Basic earnings per share |
$ | 1.39 | $ | 1.43 | ||||
Diluted earnings per share |
$ | 1.38 | $ | 1.43 | ||||
(With Deloitte & Touche audit report dated July 13, 2005) | (Concluded) |
- 5 -
Equity Attributable to Shareholders of the Parent | ||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Special | Unappro- | Cumulative | Minority | Total | |||||||||||||||||||||||||||||||||||||||||||
Shares | Capital | Legal Capital | Capital | priated | Translation | Treasury | Interest in | Shareholders | ||||||||||||||||||||||||||||||||||||||||
(Thousand) | Amount | Surplus | Reserve | Reserve | Earnings | Total | Adjustments | Stock | Total | Subsidiaries | Equity | |||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2005 |
23,251,964 | $ | 232,519,637 | $ | 56,537,259 | $ | 25,528,007 | $ | | $ | 88,202,009 | $ | 113,730,016 | $ | (2,226,427 | ) | $ | (1,595,186 | ) | $ | 398,965,299 | $ | 718,713 | $ | 399,684,012 | |||||||||||||||||||||||
Appropriations of prior years earnings |
||||||||||||||||||||||||||||||||||||||||||||||||
Legal capital reserve |
| | | 8,820,201 | | (8,820,201 | ) | | | | | | | |||||||||||||||||||||||||||||||||||
Special capital reserve |
| | | | 2,226,427 | (2,226,427 | ) | | | | | | | |||||||||||||||||||||||||||||||||||
Employees profit sharing in cash |
| | | | | (3,086,215 | ) | (3,086,215 | ) | | | (3,086,215 | ) | | (3,086,215 | ) | ||||||||||||||||||||||||||||||||
Employees profit sharing in stock |
308,622 | 3,086,215 | | | | (3,086,215 | ) | (3,086,215 | ) | | | | | | ||||||||||||||||||||||||||||||||||
Cash
dividends 20% |
| | | | | (46,504,097 | ) | (46,504,097 | ) | | | (46,504,097 | ) | | (46,504,097 | ) | ||||||||||||||||||||||||||||||||
Stock
dividends 5% |
1,162,602 | 11,626,024 | | | | (11,626,024 | ) | (11,626,024 | ) | | | | | | ||||||||||||||||||||||||||||||||||
Bonus to directors and supervisors in cash |
| | | | | (231,466 | ) | (231,466 | ) | | | (231,466 | ) | | (231,466 | ) | ||||||||||||||||||||||||||||||||
Net income for the six months ended June 30, 2005 |
| | | | | 35,187,334 | 35,187,334 | | | 35,187,334 | 24,291 | 35,211,625 | ||||||||||||||||||||||||||||||||||||
Adjustment arising from changes in ownership
percentage in investees |
| | 4,774 | | | | | | | 4,774 | | 4,774 | ||||||||||||||||||||||||||||||||||||
Employee stock options exercised |
2,941 | 29,412 | 87,806 | | | | | | | 117,218 | | 117,218 | ||||||||||||||||||||||||||||||||||||
Cash dividends received by subsidiaries from parent
company |
| | 84,285 | | | | | | | 84,285 | | 84,285 | ||||||||||||||||||||||||||||||||||||
Treasury stock transactions sales of parent
company
stock held by subsidiaries |
| | 6,751 | | | | | | 42,613 | 49,364 | | 49,364 | ||||||||||||||||||||||||||||||||||||
Translation adjustments |
| | | | | | (386,569 | ) | | (386,569 | ) | (13,668 | ) | (400,237 | ) | |||||||||||||||||||||||||||||||||
Increase in minority interest |
| | | | | | | | | | 11,571 | 11,571 | ||||||||||||||||||||||||||||||||||||
BALANCE, JUNE 30, 2005 |
24,726,129 | $ | 247,261,288 | $ | 56,720,875 | $ | 34,348,208 | $ | 2,226,427 | $ | 47,808,698 | $ | 84,383,333 | $ | (2,612,996 | ) | $ | (1,552,573 | ) | $ | 384,199,927 | $ | 740,907 | $ | 384,940,834 | |||||||||||||||||||||||
- 6 -
Amount | ||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||
Net income attributable to shareholders of the parent |
$ | 35,187,334 | ||
Net income attributable to minority interest |
24,291 | |||
Adjustments to reconcile net income to net cash provided by operating
activities: |
||||
Depreciation and amortization |
37,979,563 | |||
Loss on idle assets |
106,972 | |||
Deferred income taxes |
(1,179,638 | ) | ||
Investment income recognized by equity method |
(623,046 | ) | ||
Amortization of premium of long-term bond investments |
58,771 | |||
Loss on impairment of long-term investments |
88,486 | |||
Gain on disposal of long-term investments, net |
(94 | ) | ||
Loss on disposal of property, plant and equipment, net |
17,817 | |||
Accrued pension cost |
310,773 | |||
Net changes in operating assets and liabilities: |
||||
Decrease (increase) in: |
||||
Receivables from related parties |
337,616 | |||
Notes and accounts receivable |
(5,013,159 | ) | ||
Allowance for doubtful receivables |
(1,710 | ) | ||
Allowance for sales returns and others |
620,589 | |||
Other receivables from related parties |
(50,559 | ) | ||
Other financial assets |
224,073 | |||
Inventories |
490,820 | |||
Prepaid expenses and other current assets |
1,146,551 | |||
Increase (decrease) in: |
||||
Accounts payable |
(1,341,572 | ) | ||
Payables to related parties |
(1,569,408 | ) | ||
Accrued expenses and other current liabilities |
198,591 | |||
Net cash provided by operating activities |
67,013,061 | |||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||
Decrease in short-term investments |
4,751,522 | |||
Acquisitions of: |
||||
Long-term investments |
(3,364,023 | ) | ||
Property, plant and equipment |
(55,661,702 | ) | ||
Proceeds from disposal of: |
||||
Long-term investments |
1,533,220 | |||
Property, plant and equipment |
127,264 | |||
Increase in deferred charges |
(518,160 | ) | ||
Increase in refundable deposits |
(7,483 | ) | ||
Decrease in other assets |
4,626 | |||
Net cash used in investing activities |
(53,134,736 | ) | ||
- 7 -
Amount | ||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||
Repayments on short-term bank loans |
$ | (63,236 | ) | |
Repayments on long-term bank loans |
(946,845 | ) | ||
Increase in guarantee deposits |
1,105,969 | |||
Bonus to directors and supervisors |
(231,466 | ) | ||
Proceeds from: |
||||
Disposal of treasury stock |
49,364 | |||
Exercise of employee stock options |
117,218 | |||
Increase in minority interest |
11,571 | |||
Net cash provided by financing activities |
42,575 | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
13,920,900 | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS |
(47,156 | ) | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD (Note 2) |
74,531,410 | |||
CASH AND CASH EQUIVALENTS, END OF THE PERIOD |
$ | 88,405,154 | ||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
||||
Interest paid |
$ | 1,268,966 | ||
Income tax paid |
$ | 148,831 | ||
NONCASH INVESTING AND FINANCING ACTIVITIES |
||||
Current portion of long-term liabilities |
$ | 10,505,489 | ||
Current portion of other long-term payables (under accrued expenses and
other current liabilities) |
$ | 1,417,437 | ||
Reclassification of long-term investments to short-term investments |
$ | 6,327 | ||
(With Deloitte & Touche audit report dated July 13, 2005) | (Concluded) |
- 8 -
1. | GENERAL |
2. | SIGNIFICANT ACCOUNTING POLICIES |
-9-
Ownership % as of | ||||||||
Name of Investor | Name of Investee | June 30, 2005 | Remark | |||||
TSMC
|
TSMC North America (TSMC NA) | 100 | % | As of June 30, 2005, TSMC NA held 13,923 thousand common shares in TSMC (approximately 0.06% of outstanding common shares). | ||||
Taiwan Semiconductor Manufacturing Company Europe B.V. (TSMC Europe) | 100 | % | | |||||
TSMC Japan K. K. (TSMC Japan) | 100 | % | | |||||
TSMC (Shanghai) Company Limited (TSMC Shanghai) | 100 | % | | |||||
TSMC International Investment Ltd. (TSMC International) | 100 | % | | |||||
TSMC Partners, Ltd. (TSMC Partners) | 100 | % | | |||||
Chi Cherng Investment Co., Ltd. (Chi Cherng) | 36 | % | TSMC and Hsin Ruey held in aggregate a 100% ownership of Chi Cherng. As of June 30, 2005, Chi Cherng held 16,454 thousand common shares in TSMC (approximately 0.07% of outstanding common shares). | |||||
Hsin Ruey Investment Co., Ltd. (Hsin Ruey) | 36 | % | TSMC and Chi Cherng held in aggregate a 100% ownership of Hsin Ruey. As of June 30, 2005, Hsin Ruey held 16,485 thousand common shares in TSMC (approximately 0.07% of outstanding common shares). | |||||
Emerging Alliance Fund, L.P. (Emerging Alliance) | 99.5 | % | | |||||
VentureTech Alliance Fund II, L.P. (VTAF II) | 98 | % | | |||||
GUC | 46 | % | Starting from 2005, GUC became a consolidating entity of TSMC as GUCs president was assigned by TSMC and TSMC has control over the financial, operating and personnel hiring decisions of GUC. |
-10-
Ownership % as of | ||||||||
Name of Investor | Name of Investee | June 30, 2005 | Remark | |||||
VisEra | 25 | % | Starting from 2005, VisEra became a consolidating entity of TSMC as VisEras president was assigned by TSMC and TSMC has control over the financial, operating and personnel hiring decisions of VisEra. | |||||
TSMC International
|
TSMC Technology, Inc. (TSMC Technology) | 100 | % | | ||||
TSMC Development, Inc. (TSMC Development) | 100 | % | | |||||
InveStar Semiconductor Development Fund, Inc. (ISDF) | 97 | % | | |||||
InveStar Semiconductor Development Fund, Inc. (II) LDC (ISDF II) | 97 | % | | |||||
TSMC Development
|
WaferTech, LLC (WaferTech) | 99.996 | % | | ||||
GUC
|
GUC NA | 100 | % | Starting from 2005, GUC NA became a consolidating entity of TSMC as TSMC has control over GUC. |
-11-
-12-
-13-
-14-
-15-
- 16 -
June 30, 2005 | ||||
Cash and bank deposits |
$ | 57,966,352 | ||
Government bonds acquired under repurchase agreements |
29,804,199 | |||
Treasury bills |
349,892 | |||
Corporate issued notes |
172,291 | |||
Agency notes |
112,420 | |||
$ | 88,405,154 | |||
June 30, 2005 | ||||
Corporate bonds |
$ | 12,846,798 | ||
Agency bonds |
11,554,410 | |||
Corporate issued asset-backed securities |
11,482,685 | |||
Bond and stock funds |
10,150,224 | |||
Government bonds |
2,750,355 | |||
Money market funds |
491,465 | |||
Corporate issued notes |
158,052 |
- 17 -
June 30, 2005 | ||||
Listed stocks |
$ | 146,367 | ||
Commercial papers |
94,770 | |||
49,675,126 | ||||
Allowance for valuation losses |
(116,679 | ) | ||
$ | 49,558,447 | |||
Market value |
$ | 50,391,628 | ||
June 30, 2005 | ||||
Finished goods |
$ | 2,746,425 | ||
Work in process |
12,145,548 | |||
Raw materials |
992,651 | |||
Supplies and spare parts |
1,141,717 | |||
17,026,341 | ||||
Allowance for losses |
(1,867,565 | ) | ||
$ | 15,158,776 | |||
June 30, 2005 | ||||||||
% of | ||||||||
Carrying | Owner- | |||||||
Amount | Ship | |||||||
Equity method |
||||||||
Vanguard International Semiconductor Corporation (VIS) |
$ | 5,115,164 | 27 | |||||
Systems on Silicon Manufacturing Company Pte Ltd. (SSMC) |
3,514,280 | 32 | ||||||
8,629,444 | ||||||||
Cost method |
||||||||
Common stocks |
||||||||
Publicly traded stocks |
68,516 | | ||||||
Non-publicly traded stocks |
1,243,182 | | ||||||
Preferred stocks |
1,709,737 | | ||||||
Funds |
302,439 | | ||||||
3,323,874 | ||||||||
- 18 -
June 30, 2005 | ||||||||
% of | ||||||||
Carrying | Owner- | |||||||
Amount | Ship | |||||||
Long-term bonds |
||||||||
Government bonds |
$ | 11,817,146 | ||||||
Corporate bonds |
||||||||
China Steel Corporation |
2,936,934 | |||||||
Taiwan Power Company |
908,645 | |||||||
Nan Ya Plastics Corporation |
272,612 | |||||||
Formosa Plastics Corporation |
271,181 | |||||||
Formosa Chemical & Fiber Corporation |
135,487 | |||||||
16,342,005 | ||||||||
Other investments |
10,955,960 | |||||||
$ | 39,251,283 | |||||||
Range of | ||||||||||||||||
Principal | Interest Receivable | Interest Rates | Maturity Date | |||||||||||||
Step-up callable deposits |
||||||||||||||||
Domestic bank |
$ | 2,000,000 | $ | 7,624 | 2.05%-2.20 | % | Jul. 2007 to Aug. 2007 | |||||||||
Foreign bank |
2,000,000 | 10,403 | 1.40%-2.44 | % | Jul. 2006 to Jul. 2007 | |||||||||||
Callable range accrual deposits |
||||||||||||||||
Foreign bank |
6,955,960 | 20,237 | (See below) | Sep. 2009 to Jan. 2010 | ||||||||||||
$ | 10,955,960 | $ | 38,264 | |||||||||||||
- 19 -
June 30, 2005 | ||||
Land improvements |
$ | 184,622 | ||
Buildings |
42,260,855 | |||
Machinery and equipment |
316,242,660 | |||
Office equipment |
6,231,969 | |||
Leased assets |
46,704 | |||
Other equipment |
51,962 | |||
$ | 365,018,772 | |||
June 30, 2005 | ||||
Technology license fees |
$ | 5,929,347 | ||
Software and system design costs |
2,114,718 | |||
Others |
166,579 | |||
$ | 8,210,644 | |||
June 30, 2005 | ||||
Unsecured loan: |
||||
US$10,000 thousand, repayable by June 2006, annual interest at 3.61% |
$ | 316,180 | ||
June 30, 2005 | ||||
Unsecured loans: |
||||
US$30,000 thousand, repayable by December 2006, annual interest at 3.60% |
$ | 948,540 | ||
Science Park Administration (SPA) SOC loan, repayable by July 2008 in 20
payments, interest-free |
9,050 | |||
SPA DSP loan, repayable by April 2007 in 20 payments, interest-free |
5,409 | |||
962,999 | ||||
Current portion |
(5,489 | ) | ||
$ | 957,510 | |||
- 20 -
Year of Repayment | Amount | |||
2005 (3rd to 4th quarter) |
$ | 2,744 | ||
2006 |
954,029 | |||
2007 |
4,137 | |||
2008 |
2,089 | |||
$ | 962,999 | |||
June 30, 2005 | ||||
Domestic unsecured bonds: |
||||
Issued in December 2000 and repayable in December 2005 and 2007 in two
payments, 5.25% and 5.36% interest payable annually, respectively |
$ | 15,000,000 | ||
Issued in January 2002 and repayable in January 2007, 2009 and 2012 in three
payments, 2.60%, 2.75% and 3% interest payable annually, respectively |
15,000,000 | |||
$ | 30,000,000 | |||
Year of Repayment | Amount | |||
2005 (3rd to 4th quarter) |
$ | 10,500,000 | ||
2007 |
7,000,000 | |||
2009 |
8,000,000 | |||
2010 and thereafter |
4,500,000 | |||
30,000,000 | ||||
Current portion |
(10,500,000 | ) | ||
$ | 19,500,000 | |||
June 30, 2005 | ||||
Payables for acquisition of property, plant and equipment (Note 22l) |
$ | 6,376,813 | ||
Payables for royalties |
3,061,573 | |||
9,438,386 | ||||
Current portion (under accrued expenses and other current liabilities) |
(1,417,437 | ) | ||
$ | 8,020,949 | |||
- 21 -
Year | Amount | |||
2005 (3rd to 4th quarter) |
$ | 1,144,732 | ||
2006 |
462,413 | |||
2007 |
442,652 | |||
2008 |
252,944 | |||
2009 |
252,944 | |||
2010 and thereafter |
6,882,701 | |||
9,438,386 | ||||
Current portion (under accrued expenses and other current liabilities) |
(1,417,437 | ) | ||
$ | 8,020,949 | |||
Six Months | ||||
Ended | ||||
June 30, 2005 | ||||
The Funds |
||||
Balance, beginning of period |
$ | 1,435,609 | ||
Contribution |
123,331 | |||
Interest |
15,629 | |||
Payment |
(8,419 | ) | ||
Balance, end of period |
$ | 1,566,150 | ||
Accrued pension cost |
||||
Balance, beginning of period |
$ | 3,113,041 | ||
Accruals |
310,849 | |||
Balance, end of period |
$ | 3,423,890 | ||
- 22 -
a. | A reconciliation of income tax expense based on income before income tax at statutory rates and current income tax expense before income tax credits was as follows: |
Six Months | ||||
Ended | ||||
June 30, 2005 | ||||
Income tax expense based on income before income tax at statutory rates |
$ | (8,486,984 | ) | |
Tax-exempt income |
4,734,183 | |||
Temporary and permanent differences |
(863,534 | ) | ||
Current income tax expense before income tax credits |
$ | (4,616,335 | ) | |
b. | Income tax benefit consisted of the following: |
Current income tax expense before income tax credits |
$ | (4,616,335 | ) | |
Additional tax at 10% on unappropriated earnings |
(1,495,145 | ) | ||
Income tax credits |
5,896,073 | |||
Other income tax adjustments |
39,554 | |||
Net change in deferred income tax assets |
||||
Investment tax credits |
2,534,406 | |||
Temporary differences |
2,150,088 | |||
Net operating loss carryforwards |
(409,319 | ) | ||
Net change in valuation allowance of deferred income tax assets |
(3,095,537 | ) | ||
Income tax benefit |
$ | 1,003,785 | ||
c. | Deferred income tax assets (liabilities) consisted of the following: |
June 30, 2005 | ||||
Current deferred income tax assets |
||||
Investment tax credits |
$ | 5,347,938 | ||
Temporary differences |
373,860 | |||
Net operating loss carryforwards |
6,660 | |||
Valuation allowance |
(319,575 | ) | ||
$ | 5,408,883 | |||
Noncurrent deferred income tax assets |
||||
Investment tax credits |
$ | 23,190,292 | ||
Temporary differences |
(5,659,538 | ) | ||
Net operating loss carryforwards |
6,369,671 | |||
Valuation allowance |
(17,561,705 | ) | ||
$ | 6,338,720 | |||
d. | Integrated income tax information: |
- 23 -
e. | TSMCs earnings generated prior to December 31, 1997 have been appropriated. | |
f. | As of June 30, 2005, the Companys investment tax credits consisted of the following: |
Total | Remaining | |||||||||||||
Creditable | Creditable | Expiry | ||||||||||||
Regulation | Item | Amount | Amount | Year | ||||||||||
Statute for Upgrading Industries |
Purchase of machinery and equipment | $ | 134,467 | $ | | 2005 | ||||||||
4,886,593 | 2,325,900 | 2006 | ||||||||||||
4,139,371 | 4,139,371 | 2007 | ||||||||||||
11,007,954 | 11,007,954 | 2008 | ||||||||||||
2,189,404 | 2,189,404 | 2009 | ||||||||||||
$ | 22,357,789 | $ | 19,662,629 | |||||||||||
Statute for Upgrading Industries |
Research and development expenditures | $ | 3,145,893 | $ | 17,938 | 2005 | ||||||||
3,367,335 | 3,367,335 | 2006 | ||||||||||||
2,015,531 | 2,015,531 | 2007 | ||||||||||||
2,374,242 | 2,374,242 | 2008 | ||||||||||||
1,008,986 | 1,008,986 | 2009 | ||||||||||||
$ | 11,911,987 | $ | 8,784,032 | |||||||||||
Statute for Upgrading Industries |
Personnel training | $ | 29,448 | $ | | 2005 | ||||||||
27,358 | 27,358 | 2006 | ||||||||||||
26,962 | 26,962 | 2007 | ||||||||||||
37,249 | 37,249 | 2008 | ||||||||||||
$ | 121,017 | $ | 91,569 | |||||||||||
Statute for Upgrading Industries |
Investments in important technology-based enterprises |
$ | 38,036 | $ | | 2005 | ||||||||
g. | The sales generated from the following expansion and construction of TSMCs manufacturing plants are exempt from income tax: |
Tax-Exemption Periods | ||
Construction of Fab 8 module B
|
2002 to 2005 | |
Expansion of Fab 2 modules A and B, Fab 3, Fab 4, Fab 5 and Fab 6
|
2003 to 2006 | |
Construction of Fab 12
|
2004 to 2007 |
h. | The tax authorities have examined income tax returns of TSMC through 2001. |
- 24 -
Six Months Ended June 30, 2005 | ||||||||||||
Classified as | ||||||||||||
Classified as | Operating | |||||||||||
Cost of Sales | Expenses | Total | ||||||||||
Labor cost |
||||||||||||
Salary |
$ | 5,001,599 | $ | 3,028,345 | $ | 8,029,944 | ||||||
Labor and health insurance |
306,336 | 154,502 | 460,838 | |||||||||
Pension |
300,353 | 150,980 | 451,333 | |||||||||
Meal |
208,373 | 76,789 | 285,162 | |||||||||
Welfare benefit |
72,674 | 42,701 | 115,375 | |||||||||
Other |
54,134 | 137,290 | 191,424 | |||||||||
$ | 5,943,469 | $ | 3,590,607 | $ | 9,534,076 | |||||||
Depreciation |
$ | 34,223,394 | $ | 1,589,927 | $ | 35,813,321 | ||||||
Amortization |
$ | 814,085 | $ | 1,350,140 | $ | 2,164,225 | ||||||
Amount | ||||
From merger |
$ | 24,003,546 | ||
Additional paid-in capital |
23,139,481 | |||
From convertible bonds |
9,360,424 | |||
From long-term investments |
126,128 | |||
From treasury stock transactions |
91,241 | |||
Donations |
55 | |||
$ | 56,720,875 | |||
a. | Legal capital reserve at 10% of the profits left over, until the accumulated legal capital reserve has equalled TSMCs total capital; |
- 25 -
b. | Special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge; |
c. | Bonus to directors and supervisors and bonus to employees of TSMC equal to not more than 0.3% and not less than 1% of the remainder, respectively. Directors who also serve as executive officers of TSMC are not entitled to receive the bonus to directors and supervisors. TSMC 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. |
Appropriation | Dividends Per | |||||||
of Earnings | Share (NT$) | |||||||
Legal capital reserve |
$ | 8,820,201 | ||||||
Special capital reserve |
2,226,427 | |||||||
Employees profit sharing in cash |
3,086,215 | |||||||
Employees profit sharing in stock |
3,086,215 | |||||||
Cash dividends |
46,504,097 | $ | 2.00 | |||||
Stock dividends |
11,626,024 | 0.50 | ||||||
Bonus to directors and supervisors |
231,466 | |||||||
$ | 75,580,645 | |||||||
- 26 -
Weighted- | ||||||||
Average | ||||||||
Number of | Exercise | |||||||
Options | Price | |||||||
(in Thousands) | (NT$) | |||||||
Beginning balance |
64,367 | $ | 40.5 | |||||
Options granted |
14,864 | 48.4 | ||||||
Options exercised |
(2,941 | ) | 39.9 | |||||
Options cancelled |
(2,931 | ) | 42.7 | |||||
Ending balance |
73,359 | 42.1 | ||||||
Options Outstanding | ||||||||||||||||||||
Options Exercisable | ||||||||||||||||||||
Weighted- | ||||||||||||||||||||
Average | Weighted- | Weighted- | ||||||||||||||||||
Range of | Number of | Remaining | Average | Number of | Average | |||||||||||||||
Exercise | Options (in | Contractual | Exercise | Options (in | Exercise | |||||||||||||||
Price (NT$) | Thousands) | Life (Years) | Price (NT$) | Thousands) | Price (NT$) | |||||||||||||||
$29.9-$42.1 |
50,195 | 7.60 | $ | 38.8 | 25,032 | $ | 38.8 | |||||||||||||
47.0-54.5 |
23,164 | 9.33 | 49.2 | | | |||||||||||||||
73,359 | 25,032 | |||||||||||||||||||
- 27 -
Assumptions: |
||||
Expected dividend yield |
1.00%-3.44 | % | ||
Expected volatility |
43.77%-46.15 | % | ||
Risk free interest rate |
3.07%-3.85 | % | ||
Expected life |
5 years | |||
Net income attributable to shareholders of the parent: |
||||
As reported |
$ | 35,187,334 | ||
Pro forma |
35,140,859 | |||
Consolidated earnings per share (EPS) after income tax (NT$): |
||||
Basic EPS as reported |
$ | 1.43 | ||
Pro forma basic EPS |
1.42 | |||
Diluted EPS as reported |
1.43 | |||
Pro forma diluted EPS |
1.42 |
Beginning | Increase/ | Ending | |||||||||||||||
Shares | Distribute | Decrease | Shares | ||||||||||||||
Six months ended June 30, 2005 |
|||||||||||||||||
Reclassification of parent company stock held by
subsidiaries from long-term investments |
45,521 | 2,242 | 901 | 46,862 | |||||||||||||
- 28 -
Number of | ||||||||||||||||||||
Shares | ||||||||||||||||||||
Amounts (Numerator) | (Denominator) | Consolidated EPS (NT$) | ||||||||||||||||||
Before Tax | After Tax | (Thousands) | Before Tax | After Tax | ||||||||||||||||
Consolidated Basic EPS |
||||||||||||||||||||
Income available to common shareholders of
the parent |
$ | 34,183,549 | $ | 35,187,334 | 24,676,592 | $ | 1.39 | $ | 1.43 | |||||||||||
Effect of dilutive potential common stock -
stock options |
| | 10,537 | |||||||||||||||||
Consolidated Diluted EPS |
||||||||||||||||||||
Income available to common shareholders of
the parent (including effect of dilutive
potential common stock) |
$ | 34,183,549 | $ | 35,187,334 | 24,687,129 | $ | 1.38 | $ | 1.43 | |||||||||||
a. | Industrial Technology Research Institute (ITRI), the Chairman of TSMC is one of its directors | |
b. | Philips, a major shareholder of TSMC | |
c. | Investees of TSMC accounted for using equity method |
d. | Omnivision International Holding, Ltd. (Omnivision), a shareholder holding a 25% ownership in VisEra | |
e. | Huawei Semiconductor (Shanghai) Co., Ltd. (Huawei), the president of which is the president of VisEra | |
f. | XinTec Inc. (XinTec), the Chairman of VisEra is one of the directors of XinTec |
The transaction with the aforementioned parties in addition to those disclosed in other notes are summarized as follows: |
2005 | ||||||||||||
Amount | % | |||||||||||
For the six months ended June 30 |
||||||||||||
Sales |
||||||||||||
Omnivision |
$ | 1,268,365 | 1 | |||||||||
Philips and its affiliates |
1,147,115 | 1 | ||||||||||
Others |
45,689 | | ||||||||||
$ | 2,461,169 | 2 | ||||||||||
- 29 -
2005 | ||||||||
Amount | % | |||||||
Purchases |
||||||||
VIS |
$ | 2,168,998 | 3 | |||||
SSMC |
2,094,617 | 3 | ||||||
XinTec |
321,924 | 1 | ||||||
Huawei |
86,739 | | ||||||
$ | 4,672,278 | 7 | ||||||
Manufacturing expenses technical assistance fees |
||||||||
Philips (see Note 22a) |
$ | 202,334 | | |||||
Non-operating income and gains |
||||||||
SSMC (primarily technical service income; see Note 22f) |
$ | 146,655 | 4 | |||||
VIS (primarily technical service income; see Note 22k) |
77,504 | 2 | ||||||
$ | 224,159 | 6 | ||||||
At the end of June 30 |
||||||||
Receivables |
||||||||
Philips and its affiliates |
$ | 467,843 | 63 | |||||
Omnivision |
266,276 | 36 | ||||||
VIS |
6,083 | 1 | ||||||
$ | 740,202 | 100 | ||||||
Other Receivables |
||||||||
SSMC |
$ | 115,460 | 71 | |||||
VIS |
46,399 | 29 | ||||||
$ | 161,859 | 100 | ||||||
Payables |
||||||||
VIS |
$ | 883,144 | 71 | |||||
SSMC |
284,080 | 23 | ||||||
XinTec |
45,308 | 4 | ||||||
Huawei |
26,790 | 2 | ||||||
$ | 1,239,322 | 100 | ||||||
Other long-term payables |
||||||||
Philips and its affiliates |
$ | 1,727,133 | 100 | |||||
- 30 -
Year | Amount | |||
2005 (3rd to 4th quarter) |
$ | 183,984 | ||
2006 |
361,218 | |||
2007 |
357,908 | |||
2008 |
340,247 | |||
2009 |
337,120 | |||
2010 and thereafter |
1,383,690 | |||
$ | 2,964,167 | |||
a. | On June 20, 2004, TSMC and Philips revised the Technical Cooperation Agreement, which was originally signed on May 12, 1997, with an effective date from January 1, 2004 for five years. Upon expiration, this amended Technical Cooperation Agreement will be terminated at the expiration date and will not be automatically renewed. Under this amended Technical Cooperation Agreement, TSMC will pay Philips royalties based on a fixed amounts mutually agreed-on, rather than under certain percentage of TSMCs annual net sales. TSMC and Philips agree to cross license the patents owned by each party. TSMC also obtained through Philips a number of patent cross licenses. |
b. | Under a technical cooperation agreement with ITRI, TSMC shall reserve and allocate up to 35% of certain of its production capacity for use by the Ministry of Economic Affairs (MOEA) or any other party designated by the MOEA. The term of this agreement is for five years beginning 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 and 1997 and on January 1, 2002. |
c. | On October 28, 1992, TSMC entered into a letter agreement with Philips under which Philips has an option on up to 30% of TSMCs capacity as agreed in the agreement on most favored terms and conditions for similar orders, as long as Philips and its affiliates shareholding in TSMC remains at 24.8% or higher. As of June 30, 2005, Philips and its affiliates shareholding in TSMC is 18.74%. |
d. | Under several foundry agreements, TSMC shall reserve a portion of its production capacity for certain major customers that have guarantee deposits with TSMC. As of June 30, 2005, TSMC had a total of US$47,868 thousand of guarantee deposits. |
e. | 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, for the purpose of constructing an integrated circuit foundry in Singapore. As of June 30, 2005, TSMCs equity interest in SSMC was 32%. TSMC and Philips committed to buy specific percentages of the production capacity of SSMC. TSMC and Philips are required, in the aggregate, to purchase up to 70% of SSMCs full capacity, but TSMC alone is not required to purchase more than 28% of the annual installed capacity. If any party defaults on the commitment and the capacity utilization of SSMC falls below a specific percentage of its total capacity, the defaulting party is required to compensate SSMC for all related unavoidable costs. |
- 31 -
f. | TSMC provides technical services to SSMC under a Technical Cooperation Agreement (the Agreement) entered into on May 12, 1999. TSMC receives compensation for such services computed at a specific percentage of net selling price of certain 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. | ||
g. | Under a Technology Transfer Agreement (TTA) with National Semiconductor Corporation (National) entered into on June 27, 2000, TSMC 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 notice for early termination under certain conditions. In January 2003, TSMC and National entered into a Termination Agreement whereby the TTA was terminated for convenience. Under the Termination Agreement, TSMC will be relieved of any further obligation to transfer any additional technology. In addition, TSMC 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. | ||
h. | Beginning in 2001, TSMC entered into several licensing arrangements for certain semiconductor patents. The terms of the contracts range from five to ten years with payments to be made in the form of royalties over the term of the related contracts. TSMC has recorded the related amounts as a liability with the corresponding amounts recorded as deferred charges which are amortized and charged to cost of sales on a straight-line basis over the estimated life of the technology or the term of the contract, whichever is shorter. | ||
i. | In November 2002, TSMC entered into an Amended and Restated Joint Technology Cooperation Agreement with Philips, Freescale Semiconductor, Inc. and STMicroelectronics to jointly develop 90-nm to 65-nm advanced CMOS Logic and e-DRAM technologies. TSMC also agreed to align 0.12 micron CMOS Logic technology to enhance its foundry business opportunities. TSMC will contribute process technologies and share a portion of the costs associated with this joint development project. | ||
j. | In December 2003, TSMC entered into a Technology Development and License Agreement with Freescale Semiconductor, Inc. to jointly develop 65-nm SOI (silicon on insulator) technology. TSMC 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, TSMC will pay royalties to Freescale Semiconductor, Inc. and will share a portion of the costs associated with the joint development project. | ||
k. | TSMC provides a technology transfer to VIS under a Manufacturing License and Technology Transfer Agreement entered into in August 2004. TSMC 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 TSMC certain products at prices as agreed by the parties. | ||
l. | Under an agreement signed with a certain company, TSMC Shanghai has the obligation to purchase certain assets within a specified period at the price agreed upon by both parties. TSMC Shanghai will compensate the other party in case of a breach of the agreement. | ||
m. | Amounts available under unused letters of credit as of June 30, 2005 were NT$6,480 thousand. | ||
n. | TSMC, TSMC-NA and WaferTech filed a series of lawsuits in late 2003 and 2004 in both state and federal courts in California and with the U.S. International Trade Commission 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 have been settled out of court on January 30, 2005. As part of the settlement, SMIC will pay TSMC US$175 million over six years to resolve TSMCs patent infringement and trade secret claims. |
-32-
a. | Financing provided: Please see Table 1 attached; | ||
b. | Endorsement/guarantee provided: Please see Table 2 attached; | ||
c. | Marketable securities held: Please see Table 3 attached; | ||
d. | Marketable securities acquired and disposed of at costs or prices of at least NT$100 million or 20% of the paid-in capital: Please see Table 4 attached; | ||
e. | Acquisition of individual real estate properties at costs of at least NT$100 million or 20% of the paid-in capital: None; | ||
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 amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 5 attached; | ||
h. | Receivable from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please see Table 6 attached; | ||
i. | Names, locations, and related information of investees of which the Company exercises significant influence: Please see Table 7 attached; | ||
j. | Financial instrument transactions: |
1) | Derivative financial instruments |
a) | Outstanding forward exchange contracts |
Financial | Contract Amount | |||||
Instruments | Currency | Maturity Date | (in Thousands) | |||
Sell
|
US$/NT$ | Jul. 2005 to Aug. 2005 | US $103,000 | |||
Sell
|
US$/JPY | Jul. 2005 | US $6,500 |
-33-
Range of | ||||||
Contract Amount | Range of | Interest Rate | ||||
Maturity Date | (in Thousands) | Interest Rate Paid | Received | |||
Jul. 2005 to Aug. 2005 | US$2,045,000 (US$/NT$) |
3.1%-3.4% | 1.03%-1.22% |
c) | Interest rate swap contracts The Company rescinded all outstanding interest rate swap contracts during the three months ended March 31, 2005 before their original maturities. The rescission loss of NT$28,295 thousand was recognized in the interest expense account. There was no outstanding contract at June 30, 2005. | ||
d) | Transaction risk |
i) | Credit risk. Credit risk represents the positive net settlement amount of those contracts with positive fair values at the balance sheet date. The positive net settlement amount represents the loss to be incurred by the Company if the counter-parties breached the contracts. The banks, which are the counter-parties to the foregoing derivative financial instruments, are reputable financial institutions. Management believes its exposure related to the potential default by those counter-parties is low. | ||
ii) | Market price risk. All derivative financial instruments are intended as hedges for fluctuations in foreign exchange rates and interest rates. Gains or losses from these hedging instruments are likely to be offset by gains or losses from the hedged items. Thus, market price risks are believed to be low. | ||
iii) | Cash flow risk and the amount and period of future cash needs. |
Inflow | Outflow | |||
Term | (in Thousands) | (in Thousands) | ||
Within one year
|
NT$67,304,233 | US$2,154,500 | ||
JPY698,750 |
-34-
June 30, 2005 | ||||||||
Carrying | ||||||||
Amount | Fair Value | |||||||
Non-derivative financial instruments |
||||||||
Assets |
||||||||
Short-term investments, net |
$ | 49,558,447 | $ | 50,391,628 | ||||
Long-term investments (securities with market price) |
32,519,909 | 39,830,977 | ||||||
Liabilities |
||||||||
Bonds payable (including current portion) |
30,000,000 | 30,429,929 | ||||||
Derivative financial instruments |
||||||||
Assets (liabilities) |
||||||||
Forward exchange contracts |
(44,882 | ) | (41,381 | ) | ||||
Cross currency swap contracts |
(674,894 | ) | (452,530 | ) |
a) | Fair value of short-term and publicly traded long-term investments is based on quoted market prices. | ||
b) | Fair value of bonds payable is based on their quoted market price. | ||
c) | Fair value of derivative financial instruments is the amount receivable from or payable to the counter-party if the contracts were terminated on the balance sheet date. |
1) | The name of the investee company in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, ratio of ownership, equity in the net gain or net loss, ending balance, amount received as earnings distributions from the investment, and the limitation on investment: Please see Table 8 attached. |
-35-
2) | Significant direct or indirect transactions with the investee company, 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 Table 9 attached. |
l. | Intercompany relationships and significant intercompany transactions: Please see Table 9 attached. |
-36-
Collateral | ||||||||||||||||||||||||||||||||||||
Financing | ||||||||||||||||||||||||||||||||||||
Maximum | Financing | Company's | ||||||||||||||||||||||||||||||||||
Balance for | Type of | Reasons for | Limit for | Financing Amount | ||||||||||||||||||||||||||||||||
Financial Statement | the Period | Ending Balance | Financing | Transaction | Short-term | Allowance for | Each Borrowing | Limits | ||||||||||||||||||||||||||||
No. | Financing Name | Counter-party | Account | (US$ in Thousand) | (US$ in Thousand) | Interest Rate | (Note 1) | Amounts | Financing | Bad Debt | Item | Value | Company | (US$ in Thousand) | ||||||||||||||||||||||
1
|
TSMC International | TSMC Development | Other receivables | $ | 1,897,080 (US$60,000) |
$ | 1,897,080 (US$60,000) |
1.5 | % | 2 | $ | Operating capital | $ | | $ | N/A | $31,237,580 (US$987,968) (Note 2) |
|||||||||||||||||||
2
|
TSMC Partners | TSMC Development | Other receivables | 2,529,440 | 948,540 | 1.5 | % | 2 | | Operating capital | | | | N/A | (Note 3) | |||||||||||||||||||||
(US$80,000) | (US$30,000) |
Note 1:
|
The No. 2 represents necessary for short-term financing. | |
Note 2:
|
Not exceeding the issued capital of the Company. | |
Note 3:
|
Generally not exceeding the issued capital of the Company, unless approved by all members of the board. |
-37-
Ratio of | ||||||||||||||||||||||||
Accumulated Amount | ||||||||||||||||||||||||
Counter-party | Limits on Each | of Collateral to | Maximum | |||||||||||||||||||||
Nature of | Counter-party's | Maximum | Value of Collateral | Net Equity of the | Collateral/Guarantee | |||||||||||||||||||
Endorsement/ | Relationship | Endorsement/ | Balance for the Period | Ending Balance | Property, Plant and | Latest Financial | Amounts Allowable | |||||||||||||||||
No. | Guarantee Provider | Name | (Note 2) | Guarantee Amounts | (US$ in Thousand) | (US$ in Thousand) | Equipment | Statement | (Note 1) | |||||||||||||||
0
|
The Company | TSMC Development | 3 | Not exceed 10% of the net worth of the Company, and also limiting to the total capital issued of the endorsement/guarante e company, unless otherwise approved by Board of Directors. | $1,897,080 (US$ 60,000) |
$948,540 (US$ 30,000) |
$ | 0.25 | % | $ | 96,049,982 | |||||||||||||
TSMC-North America | 2 | 1,264,720 (US$ 40,000) |
1,264,720 (US$ 40,000) |
| 0.33 | % |
Note 1:
|
25% of the net worth of the Company as of June 30, 2005. | |
Note 2:
|
The No. 2 represents a subsidiary in which the Company holds directly over 50% of the equity interest. | |
The No. 3 represents an investee in which the Company holds directly and indirectly over 50% of the equity interest. |
-38-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with the | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
The Company |
Government bonds | |||||||||||||||||||||
United States Treas NTS | | Short-term investment | | US$ | 80,106 | N/A | US$ | 79,826 | ||||||||||||||
Kreditanstalt Fur Wiederaufbau | | Short-term investment | | US$ | 6,881 | N/A | US$ | 6,869 | ||||||||||||||
2002 Government Bond Series B | | Long-term investment | | 358,683 | N/A | 358,136 | ||||||||||||||||
2003 Government Bond Series I | | Long-term investment | | 3,392,485 | N/A | 3,391,450 | ||||||||||||||||
2004 Government Bond Series A | | Long-term investment | | 2,349,767 | N/A | 2,350,449 | ||||||||||||||||
2004 Government Bond Series E | | Long-term investment | | 3,896,211 | N/A | 3,895,418 | ||||||||||||||||
2004 Kaohsiung Municipal Bond Series A | | Long-term investment | | 620,000 | N/A | 619,999 | ||||||||||||||||
2005 Government Bond Series A | | Long-term investment | | 1,200,000 | N/A | 1,200,265 | ||||||||||||||||
Bond funds | ||||||||||||||||||||||
JF Taiwan First Bond Fund | | Short-term investment | 73,993 | 1,003,701 | N/A | 1,019,467 | ||||||||||||||||
ABN AMRO Bond Fund | | Short-term investment | 134,906 | 1,956,175 | N/A | 1,991,304 | ||||||||||||||||
JF Taiwan Bond Fund | | Short-term investment | 78,698 | 1,153,209 | N/A | 1,176,489 | ||||||||||||||||
INVESCO R.O.C. Bond A Fund | | Short-term investment | 69,846 | 1,003,373 | N/A | 1,018,827 | ||||||||||||||||
Dresdner Bond DAM Fund | | Short-term investment | 69,303 | 771,617 | N/A | 786,496 | ||||||||||||||||
Barits Bond Fund | | Short-term investment | 64,049 | 752,149 | N/A | 763,507 | ||||||||||||||||
Shinkong Chi Shin Bond Fund | | Short-term investment | 151,594 | 2,100,000 | N/A | 2,129,516 | ||||||||||||||||
NITC Bond Fund | | Short-term investment | 3,764 | 600,000 | N/A | 606,734 | ||||||||||||||||
ABN AMRO Select Bond Fund | | Short-term investment | 18,235 | 200,000 | N/A | 202,478 | ||||||||||||||||
HSBC NTD Money Management Fund | | Short-term investment | 41,568 | 600,000 | N/A | 605,820 | ||||||||||||||||
Stock | ||||||||||||||||||||||
Taiwan Mask Corp. | | Short-term investment | 1,787 | 6,528 | | 26,623 | ||||||||||||||||
TSMC International | Subsidiary | Long-term investment | 987,968 | 23,057,382 | 100 | 23,057,382 | ||||||||||||||||
VIS | Investee accounted | Long-term investment | 437,891 | 5,115,164 | 27 | 12,449,270 | ||||||||||||||||
for using equity | ||||||||||||||||||||||
method | ||||||||||||||||||||||
TSMC Partners | Subsidiary | Long-term investment | 300 | 3,873,176 | 100 | 3,873,176 | ||||||||||||||||
SSMC | Investee accounted | Long-term investment | 382 | 3,514,280 | 32 | 3,514,280 | ||||||||||||||||
for using equity | ||||||||||||||||||||||
method | ||||||||||||||||||||||
TSMC-North America | Subsidiary | Long-term investment | 11,000 | 794,692 | 100 | 1,429,190 | Treasury stock of NT$634,498 thousand is deducted from the carrying value. | |||||||||||||||
GUC | Investee | Long-term investment | 40,149 | 403,208 | 46 | 426,476 | ||||||||||||||||
TSMC-Japan | Subsidiary | Long-term investment | 6 | 95,013 | 100 | 95,013 | ||||||||||||||||
VisEra | Investee | Long-term investment | 5,100 | 62,668 | 25 | 63,595 | ||||||||||||||||
TSMC-Europe | Subsidiary | Long-term investment | | 22,491 | 100 | 22,491 |
-39-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with the | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
United Industrial Gases Co., Ltd. | | Long-term investment | 16,783 | $ | 193,584 | 10 | $ | 265,434 | ||||||||||||||
Shin-Etsu Handotai Taiwan Co., Ltd. | | Long-term investment | 10,500 | 105,000 | 7 | 173,007 | ||||||||||||||||
W.K. Technology Fund IV | | Long-term investment | 5,000 | 50,000 | 2 | 54,046 | ||||||||||||||||
Hontung Venture Capital Co., Ltd. | | Long-term investment | 8,392 | 83,916 | 10 | 54,509 | ||||||||||||||||
Globaltop Partner I Venture Capital Corp. | | Long-term investment | 5,000 | 50,000 | 1 | 49,574 | ||||||||||||||||
Corporate bonds | ||||||||||||||||||||||
Taiwan Power Company | | Short-term investment | | 816,282 | N/A | 802,214 | ||||||||||||||||
Formosa Petrochemical Corporation | | Short-term investment | | 311,568 | N/A | 307,632 | ||||||||||||||||
AIG Sunamerica Global Fing Ix | | Short-term investment | | US$ | 1,032 | N/A | US$ | 1,012 | ||||||||||||||
Anz Cap Tr I | | Short-term investment | | US$ | 1,012 | N/A | US$ | 996 | ||||||||||||||
Abbott Labs | | Short-term investment | | US$ | 2,732 | N/A | US$ | 2,654 | ||||||||||||||
Abbott Labs | | Short-term investment | | US$ | 1,581 | N/A | US$ | 1,560 | ||||||||||||||
Ace Ltd. | | Short-term investment | | US$ | 1,046 | N/A | US$ | 1,027 | ||||||||||||||
Alltel Corp. | | Short-term investment | | US$ | 609 | N/A | US$ | 605 | ||||||||||||||
Allstate Life Global Fdg Secd | | Short-term investment | | US$ | 2,998 | N/A | US$ | 2,985 | ||||||||||||||
American Express Co. | | Short-term investment | | US$ | 3,550 | N/A | US$ | 3,474 | ||||||||||||||
American Gen Fin Corp. | | Short-term investment | | US$ | 1,768 | N/A | US$ | 1,728 | ||||||||||||||
American Gen Fin Corp. Mtn | | Short-term investment | | US$ | 3,130 | N/A | US$ | 3,039 | ||||||||||||||
American Gen Fin Corp. Mtn | | Short-term investment | | US$ | 1,058 | N/A | US$ | 1,025 | ||||||||||||||
American Honda Fin Corp. Mtn | | Short-term investment | | US$ | 3,800 | N/A | US$ | 3,789 | ||||||||||||||
American Intl Group Inc. Mtnf | | Short-term investment | | US$ | 3,795 | N/A | US$ | 3,789 | ||||||||||||||
Amgen Inc. | | Short-term investment | | US$ | 3,005 | N/A | US$ | 2,978 | ||||||||||||||
Amsouth Bk Birmingham Ala | | Short-term investment | | US$ | 1,972 | N/A | US$ | 1,970 | ||||||||||||||
Associates Corp. North Amer | | Short-term investment | | US$ | 2,700 | N/A | US$ | 2,648 | ||||||||||||||
Bank New York Inc. | | Short-term investment | | US$ | 1,525 | N/A | US$ | 1,501 | ||||||||||||||
Bank New York Inc. | | Short-term investment | | US$ | 1,972 | N/A | US$ | 1,974 | ||||||||||||||
Bank Scotland Treas Svcs Plc | | Short-term investment | | US$ | 2,715 | N/A | US$ | 2,717 | ||||||||||||||
Bank Utd Houston Tx Mtbn | | Short-term investment | | US$ | 580 | N/A | US$ | 563 | ||||||||||||||
Bear Stearns Cos Inc. | | Short-term investment | | US$ | 3,757 | N/A | US$ | 3,755 | ||||||||||||||
Bear Stearns Cos Inc. | | Short-term investment | | US$ | 3,518 | N/A | US$ | 3,482 | ||||||||||||||
Bear Stearns Cos Inc. Medium Te | | Short-term investment | | US$ | 2,103 | N/A | US$ | 2,101 | ||||||||||||||
Beneficial Corp. Mtn Bk Entry | | Short-term investment | | US$ | 2,434 | N/A | US$ | 2,404 | ||||||||||||||
Berkshire Hathaway Fin Corp. | | Short-term investment | | US$ | 1,498 | N/A | US$ | 1,482 | ||||||||||||||
British Telecommunications Plc | | Short-term investment | | US$ | 2,104 | N/A | US$ | 2,039 | ||||||||||||||
Cit Group Hldgs Inc. | | Short-term investment | | US$ | 3,203 | N/A | US$ | 3,137 | ||||||||||||||
Cit Group Inc. | | Short-term investment | | US$ | 2,000 | N/A | US$ | 2,002 | ||||||||||||||
Cargill Inc. | | Short-term investment | | US$ | 2,120 | N/A | US$ | 2,041 | ||||||||||||||
Chase Manhattan Corp. New | | Short-term investment | | US$ | 2,246 | N/A | US$ | 2,216 | ||||||||||||||
Chase Manhattan Corp. New | | Short-term investment | | US$ | 1,628 | N/A | US$ | 1,588 | ||||||||||||||
Citicorp | | Short-term investment | | US$ | 1,473 | N/A | US$ | 1,441 | ||||||||||||||
Cogentrix Energy Inc. | | Short-term investment | | US$ | 2,885 | N/A | US$ | 2,833 | ||||||||||||||
Colonial Pipeline Co. | | Short-term investment | | US$ | 1,625 | N/A | US$ | 1,572 | ||||||||||||||
Compaq Computer Corp. | | Short-term investment | | US$ | 3,719 | N/A | US$ | 3,513 | ||||||||||||||
Consolidated Edison Co. Ny Inc. | | Short-term investment | | US$ | 3,688 | N/A | US$ | 3,550 | ||||||||||||||
Corestates Cap Corp. | | Short-term investment | | US$ | 1,062 | N/A | US$ | 1,039 |
-40-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
Countrywide Fdg Corp. Mtn | | Short-term investment | | US$ | 2,158 | N/A | US$ | 2,104 | ||||||||||||||
Countrywide Home Lns Inc. | | Short-term investment | | US$ | 5,210 | N/A | US$ | 5,079 | ||||||||||||||
Countrywide Fdg Corp. Mtn | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,498 | ||||||||||||||
Countrywide Finl Corp. | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,997 | ||||||||||||||
Credit Suisse Fb USA Inc. | | Short-term investment | | US$ | 4,141 | N/A | US$ | 4,090 | ||||||||||||||
Credit Suisse First Boston USA | | Short-term investment | | US$ | 2,249 | N/A | US$ | 2,231 | ||||||||||||||
Credit Suisse First Boston | | Short-term investment | | US$ | 786 | N/A | US$ | 766 | ||||||||||||||
Daimlerchrysler North Amer | | Short-term investment | | US$ | 997 | N/A | US$ | 979 | ||||||||||||||
Daimlerchrysler North Amer Hld | | Short-term investment | | US$ | 749 | N/A | US$ | 746 | ||||||||||||||
Dayton Hudson Corp. | | Short-term investment | | US$ | 2,104 | N/A | US$ | 2,108 | ||||||||||||||
Deere John Cap Corp. | | Short-term investment | | US$ | 5,079 | N/A | US$ | 5,080 | ||||||||||||||
Dell Computer Corp. | | Short-term investment | | US$ | 3,054 | N/A | US$ | 2,962 | ||||||||||||||
Den Danske Bk Aktieselskab | | Short-term investment | | US$ | 2,192 | N/A | US$ | 2,116 | ||||||||||||||
Diageo Plc | | Short-term investment | | US$ | 3,459 | N/A | US$ | 3,454 | ||||||||||||||
Dow Chem Co. | | Short-term investment | | US$ | 921 | N/A | US$ | 885 | ||||||||||||||
European Invt Bk | | Short-term investment | | US$ | 8,315 | N/A | US$ | 8,119 | ||||||||||||||
European Invt Bk | | Short-term investment | | US$ | 3,918 | N/A | US$ | 3,927 | ||||||||||||||
Fpl Group Cap Inc. | | Short-term investment | | US$ | 1,001 | N/A | US$ | 997 | ||||||||||||||
Fpl Group Cap Inc. | | Short-term investment | | US$ | 860 | N/A | US$ | 853 | ||||||||||||||
Shell Finance (U K ) Plc | | Short-term investment | | US$ | 3,604 | N/A | US$ | 3,515 | ||||||||||||||
Fifth Third Bk Cincinnati Oh | | Short-term investment | | US$ | 2,419 | N/A | US$ | 2,449 | ||||||||||||||
First Data Corp. | | Short-term investment | | US$ | 3,013 | N/A | US$ | 2,973 | ||||||||||||||
Fleet Finl Group Inc. New | | Short-term investment | | US$ | 494 | N/A | US$ | 482 | ||||||||||||||
Fleet Finl Group Inc. New | | Short-term investment | | US$ | 975 | N/A | US$ | 946 | ||||||||||||||
Fleet Boston Corp. | | Short-term investment | | US$ | 2,850 | N/A | US$ | 2,810 | ||||||||||||||
Ford Mtr Cr Co. | | Short-term investment | | US$ | 1,542 | N/A | US$ | 1,503 | ||||||||||||||
Gte Corp. | | Short-term investment | | US$ | 2,134 | N/A | US$ | 2,071 | ||||||||||||||
Gannett Co Inc. | | Short-term investment | | US$ | 2,999 | N/A | US$ | 2,996 | ||||||||||||||
General Elec Cap Corp. Mtn | | Short-term investment | | US$ | 8,862 | N/A | US$ | 8,857 | ||||||||||||||
General Elec Cap Corp. Mtn | | Short-term investment | | US$ | 3,989 | N/A | US$ | 3,967 | ||||||||||||||
General Elec Cap Corp. Mtn | | Short-term investment | | US$ | 1,040 | N/A | US$ | 1,023 | ||||||||||||||
General Re Corp. | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,566 | ||||||||||||||
Genworth Finl Inc. | | Short-term investment | | US$ | 3,412 | N/A | US$ | 3,404 | ||||||||||||||
Goldman Sachs Group L P | | Short-term investment | | US$ | 1,637 | N/A | US$ | 1,563 | ||||||||||||||
Greenpoint Finl Corp. | | Short-term investment | | US$ | 974 | N/A | US$ | 968 | ||||||||||||||
HSBC USA Inc. New | | Short-term investment | | US$ | 1,154 | N/A | US$ | 1,113 | ||||||||||||||
Hancock John Global Fdg II Mtn | | Short-term investment | | US$ | 3,566 | N/A | US$ | 3,562 | ||||||||||||||
Hancock John Global Fdg Mtn | | Short-term investment | | US$ | 1,003 | N/A | US$ | 984 | ||||||||||||||
Hartford Finl Svcs Group Inc. | | Short-term investment | | US$ | 1,435 | N/A | US$ | 1,406 | ||||||||||||||
Hartford Finl Svcs Group Inc. | | Short-term investment | | US$ | 296 | N/A | US$ | 296 | ||||||||||||||
Heller Finl Inc. | | Short-term investment | | US$ | 2,071 | N/A | US$ | 2,039 | ||||||||||||||
Hershey Foods Corp. | | Short-term investment | | US$ | 1,627 | N/A | US$ | 1,570 | ||||||||||||||
Hewlett Packard Co. | | Short-term investment | | US$ | 3,373 | N/A | US$ | 3,252 | ||||||||||||||
Honeywell Inc. | | Short-term investment | | US$ | 3,284 | N/A | US$ | 3,150 | ||||||||||||||
Household Fin Corp. | | Short-term investment | | US$ | 532 | N/A | US$ | 523 | ||||||||||||||
Household Fin Corp. | | Short-term investment | | US$ | 2,993 | N/A | US$ | 2,972 |
-41-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
Household Fin Corp. Mtn Bk Enty | | Short-term investment | | US$ | 3,542 | N/A | US$ | 3,493 | ||||||||||||||
Huntington Natl Bk Columbus Oh | | Short-term investment | | US$ | 2,954 | N/A | US$ | 2,958 | ||||||||||||||
Huntington Natl Bk | | Short-term investment | | US$ | 3,003 | N/A | US$ | 3,001 | ||||||||||||||
ING Sec Life Instl Fdg | | Short-term investment | | US$ | 2,544 | N/A | US$ | 2,543 | ||||||||||||||
Intl Bk For Recon + Dev | | Short-term investment | | US$ | 5,232 | N/A | US$ | 5,009 | ||||||||||||||
International Business Machs | | Short-term investment | | US$ | 2,249 | N/A | US$ | 2,237 | ||||||||||||||
International Lease Fin Corp. | | Short-term investment | | US$ | 2,455 | N/A | US$ | 2,457 | ||||||||||||||
International Lease Fin Corp. | | Short-term investment | | US$ | 1,162 | N/A | US$ | 1,163 | ||||||||||||||
Intl Lease Fin Corp. Mtn | | Short-term investment | | US$ | 3,028 | N/A | US$ | 2,993 | ||||||||||||||
JP Morgan Chase + Co. | | Short-term investment | | US$ | 3,663 | N/A | US$ | 3,570 | ||||||||||||||
Jackson Natl Life Global Fdg | | Short-term investment | | US$ | 1,036 | N/A | US$ | 1,020 | ||||||||||||||
Jackson Natl Life Global Fdg S | | Short-term investment | | US$ | 1,999 | N/A | US$ | 2,000 | ||||||||||||||
Key Bk Na Med Term Nts Bk Entry | | Short-term investment | | US$ | 4,450 | N/A | US$ | 4,479 | ||||||||||||||
Keycorp Mtn Book Entry | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,505 | ||||||||||||||
Kraft Foods Inc. | | Short-term investment | | US$ | 773 | N/A | US$ | 757 | ||||||||||||||
Kraft Foods Inc. | | Short-term investment | | US$ | 1,037 | N/A | US$ | 1,021 | ||||||||||||||
ING Bank | | Short-term investment | | US$ | 2,114 | N/A | US$ | 2,070 | ||||||||||||||
Credit Suisse Fincl Products | | Short-term investment | | US$ | 1,507 | N/A | US$ | 1,504 | ||||||||||||||
Lehman Brothers Hldgs Inc. | | Short-term investment | | US$ | 1,163 | N/A | US$ | 1,141 | ||||||||||||||
Lehman Brothers Hldgs Inc. | | Short-term investment | | US$ | 3,705 | N/A | US$ | 3,562 | ||||||||||||||
Lehman Brothers Hldgs Inc. | | Short-term investment | | US$ | 2,166 | N/A | US$ | 2,167 | ||||||||||||||
Lilly Eli + Co. | | Short-term investment | | US$ | 3,750 | N/A | US$ | 3,751 | ||||||||||||||
Lincoln Natl Corp. In | | Short-term investment | | US$ | 519 | N/A | US$ | 510 | ||||||||||||||
Ameritech Capital Funding Co. | | Short-term investment | | US$ | 510 | N/A | US$ | 505 | ||||||||||||||
Merita Bk Ltd. Ny Brh | | Short-term investment | | US$ | 538 | N/A | US$ | 522 | ||||||||||||||
Merrill Lynch + Co Inc. | | Short-term investment | | US$ | 3,486 | N/A | US$ | 3,447 | ||||||||||||||
Metropolitan Life Global Mtn | | Short-term investment | | US$ | 1,907 | N/A | US$ | 1,904 | ||||||||||||||
Monumental Global Fdg II | | Short-term investment | | US$ | 1,534 | N/A | US$ | 1,511 | ||||||||||||||
Monumental Global Fdg II 2002a | | Short-term investment | | US$ | 1,045 | N/A | US$ | 1,018 | ||||||||||||||
Morgan Stanley Group Inc. | | Short-term investment | | US$ | 5,557 | N/A | US$ | 5,526 | ||||||||||||||
Morgan Stanley | | Short-term investment | | US$ | 2,136 | N/A | US$ | 2,113 | ||||||||||||||
National City Corp. | | Short-term investment | | US$ | 3,426 | N/A | US$ | 3,415 | ||||||||||||||
National Westminster Bk Plc | | Short-term investment | | US$ | 1,433 | N/A | US$ | 1,391 | ||||||||||||||
Nationwide Bldg Soc | | Short-term investment | | US$ | 3,457 | N/A | US$ | 3,467 | ||||||||||||||
Nationwide Bldg Soc Mtn | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,995 | ||||||||||||||
Nationwide Life Global Mtn | | Short-term investment | | US$ | 1,463 | N/A | US$ | 1,462 | ||||||||||||||
Northern Rock Plc Medium Term | | Short-term investment | | US$ | 2,002 | N/A | US$ | 1,991 | ||||||||||||||
Pnc Fdg Corp. | | Short-term investment | | US$ | 1,080 | N/A | US$ | 1,052 | ||||||||||||||
Pepsico Inc. Mtn Book Entry | | Short-term investment | | US$ | 3,818 | N/A | US$ | 3,752 | ||||||||||||||
Popular North Amer Inc. Mtn | | Short-term investment | | US$ | 3,042 | N/A | US$ | 2,984 | ||||||||||||||
Premark Intl Inc. | | Short-term investment | | US$ | 2,954 | N/A | US$ | 2,875 | ||||||||||||||
Pricoa Global Fdg 1 Mtn | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,500 | ||||||||||||||
Protective Life Secd Trs | | Short-term investment | | US$ | 2,920 | N/A | US$ | 2,950 | ||||||||||||||
Prudential Ins Co Amer | | Short-term investment | | US$ | 2,774 | N/A | US$ | 2,768 | ||||||||||||||
Prudential Ins Co Amer | | Short-term investment | | US$ | 2,648 | N/A | US$ | 2,562 | ||||||||||||||
Reinsurance Group Amer Inc. | | Short-term investment | | US$ | 2,091 | N/A | US$ | 2,046 |
-42-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
Royal Bk Scotland Group Plc | | Short-term investment | | US$ | 1,563 | N/A | US$ | 1,515 | ||||||||||||||
Royal Bk Scotland Group Plc | | Short-term investment | | US$ | 369 | N/A | US$ | 357 | ||||||||||||||
Sbc Communications Inc. | | Short-term investment | | US$ | 3,681 | N/A | US$ | 3,559 | ||||||||||||||
Sbc Communications Inc. | | Short-term investment | | US$ | 1,776 | N/A | US$ | 1,757 | ||||||||||||||
Slm Corp. Medium Term Nts | | Short-term investment | | US$ | 2,950 | N/A | US$ | 2,961 | ||||||||||||||
Slm Corp. | | Short-term investment | | US$ | 500 | N/A | US$ | 498 | ||||||||||||||
Sp Powerassests Ltd. Global | | Short-term investment | | US$ | 991 | N/A | US$ | 980 | ||||||||||||||
Safeco Corp. | | Short-term investment | | US$ | 765 | N/A | US$ | 744 | ||||||||||||||
St Paul Cos Inc. Mtn Bk Ent | | Short-term investment | | US$ | 2,661 | N/A | US$ | 2,654 | ||||||||||||||
Sara Lee Corp. | | Short-term investment | | US$ | 1,596 | N/A | US$ | 1,565 | ||||||||||||||
Scotland Intl Fin B V 144a | | Short-term investment | | US$ | 1,533 | N/A | US$ | 1,488 | ||||||||||||||
Suntrust Bks Inc. | | Short-term investment | | US$ | 1,062 | N/A | US$ | 1,035 | ||||||||||||||
Swedbank Sparbanken Svenge Ab | | Short-term investment | | US$ | 1,084 | N/A | US$ | 1,043 | ||||||||||||||
Tiaa Global Mkts Inc. | | Short-term investment | | US$ | 519 | N/A | US$ | 507 | ||||||||||||||
Tribune Co Med Trm Nts | | Short-term investment | | US$ | 2,943 | N/A | US$ | 2,923 | ||||||||||||||
US Bk Natl Assn Cincinnati Oh | | Short-term investment | | US$ | 2,669 | N/A | US$ | 2,681 | ||||||||||||||
Unitedhealth Group Inc. | | Short-term investment | | US$ | 3,119 | N/A | US$ | 3,057 | ||||||||||||||
Virginia Elec + Pwr Co | | Short-term investment | | US$ | 2,884 | N/A | US$ | 2,766 | ||||||||||||||
Vodafone Group Plc New | | Short-term investment | | US$ | 2,559 | N/A | US$ | 2,540 | ||||||||||||||
Wps Resources Corp. | | Short-term investment | | US$ | 1,107 | N/A | US$ | 1,108 | ||||||||||||||
Wal Mart Cda Venture Corp. | | Short-term investment | | US$ | 3,670 | N/A | US$ | 3,549 | ||||||||||||||
Washington Mut Inc. | | Short-term investment | | US$ | 4,735 | N/A | US$ | 4,606 | ||||||||||||||
Washington Mut Fin Corp. | | Short-term investment | | US$ | 1,043 | N/A | US$ | 1,022 | ||||||||||||||
Washington Post Co | | Short-term investment | | US$ | 3,182 | N/A | US$ | 3,130 | ||||||||||||||
Wells Fargo + Co New | | Short-term investment | | US$ | 3,697 | N/A | US$ | 3,568 | ||||||||||||||
Westfield Cap Corp. Ltd. | | Short-term investment | | US$ | 1,999 | N/A | US$ | 2,003 | ||||||||||||||
China Steel Corporation | | Long-term investment | | 2,936,934 | N/A | 2,936,479 | ||||||||||||||||
Taiwan Power Company | | Long-term investment | | 908,645 | N/A | 908,575 | ||||||||||||||||
Nan Ya Plastics Corporation | | Long-term investment | | 272,612 | N/A | 273,035 | ||||||||||||||||
Formosa Plastics Corporation | | Long-term investment | | 271,181 | N/A | 271,584 | ||||||||||||||||
Formosa Chemicals & Fiber Corporation | | Long-term investment | | 135,487 | N/A | 137,529 | ||||||||||||||||
Agency bonds | ||||||||||||||||||||||
Fed Hm Ln Pc Pool G11295 | | Short-term investment | | US$ | 1,999 | N/A | US$ | 1,983 | ||||||||||||||
Fed Hm Ln Pc Pool E89857 | | Short-term investment | | US$ | 2,247 | N/A | US$ | 2,228 | ||||||||||||||
Federal Natl Mtg Assn Gtd | | Short-term investment | | US$ | 1,842 | N/A | US$ | 1,803 | ||||||||||||||
Fnma Pool 254507 | | Short-term investment | | US$ | 2,731 | N/A | US$ | 2,725 | ||||||||||||||
Fnma Pool 254834 | | Short-term investment | | US$ | 1,967 | N/A | US$ | 1,984 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 2,949 | N/A | US$ | 2,892 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 1,064 | N/A | US$ | 1,051 | ||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 6,096 | N/A | US$ | 6,024 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 3,432 | N/A | US$ | 3,375 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,051 | N/A | US$ | 4,056 | ||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 3,993 | N/A | US$ | 3,982 | ||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 3,558 | N/A | US$ | 3,496 | ||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 2,466 | N/A | US$ | 2,443 |
-43-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 5,335 | N/A | US$ | 5,340 | ||||||||||||||
Fnma Pool 685116 | | Short-term investment | | US$ | 918 | N/A | US$ | 910 | ||||||||||||||
Fnma Pool 725095 | | Short-term investment | | US$ | 1,777 | N/A | US$ | 1,760 | ||||||||||||||
Fnma Pool 730033 | | Short-term investment | | US$ | 1,992 | N/A | US$ | 2,010 | ||||||||||||||
Fnma Pool 740934 | | Short-term investment | | US$ | 1,997 | N/A | US$ | 2,014 | ||||||||||||||
Fnma Pool 790828 | | Short-term investment | | US$ | 4,145 | N/A | US$ | 4,096 | ||||||||||||||
Fnma Pool 793025 | | Short-term investment | | US$ | 3,767 | N/A | US$ | 3,759 | ||||||||||||||
Fnma Pool 793932 | | Short-term investment | | US$ | 904 | N/A | US$ | 897 | ||||||||||||||
Fnma Pool 794040 | | Short-term investment | | US$ | 964 | N/A | US$ | 956 | ||||||||||||||
Fnma Pool 795548 | | Short-term investment | | US$ | 866 | N/A | US$ | 859 | ||||||||||||||
Fnma Pool 806642 | | Short-term investment | | US$ | 1,856 | N/A | US$ | 1,841 | ||||||||||||||
Gnma II Pool 081150 | | Short-term investment | | US$ | 941 | N/A | US$ | 931 | ||||||||||||||
Gnma II Pool 081153 | | Short-term investment | | US$ | 3,525 | N/A | US$ | 3,474 | ||||||||||||||
Government Natl Mtg Assn | | Short-term investment | | US$ | 365 | N/A | US$ | 355 | ||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 6,978 | N/A | US$ | 6,913 | ||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 3,388 | N/A | US$ | 3,410 | ||||||||||||||
Federal Home Ln Mtg Corp. Mtn | | Short-term investment | | US$ | 4,930 | N/A | US$ | 4,911 | ||||||||||||||
Federal Home Loan Mtg Assn | | Short-term investment | | US$ | 4,847 | N/A | US$ | 4,874 | ||||||||||||||
Federal Home Loan Mtg Corp. | | Short-term investment | | US$ | 4,903 | N/A | US$ | 4,916 | ||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 9,997 | N/A | US$ | 9,917 | ||||||||||||||
Federal Home Loan Corp. | | Short-term investment | | US$ | 7,989 | N/A | US$ | 7,985 | ||||||||||||||
Federal Farm Cr Bks | | Short-term investment | | US$ | 3,985 | N/A | US$ | 3,988 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 2,532 | N/A | US$ | 2,481 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 1,042 | N/A | US$ | 1,009 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 7,887 | N/A | US$ | 7,822 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 3,379 | N/A | US$ | 3,345 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 9,134 | N/A | US$ | 9,142 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 4,927 | N/A | US$ | 4,918 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 2,990 | N/A | US$ | 2,975 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 2,962 | N/A | US$ | 2,954 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 2,454 | N/A | US$ | 2,471 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 3,932 | N/A | US$ | 3,943 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 7,018 | N/A | US$ | 6,947 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 4,997 | N/A | US$ | 4,954 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 6,098 | N/A | US$ | 6,032 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 3,976 | N/A | US$ | 3,959 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 13,953 | N/A | US$ | 13,868 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 4,939 | N/A | US$ | 4,935 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 13,981 | N/A | US$ | 13,882 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 4,136 | N/A | US$ | 4,117 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 2,233 | N/A | US$ | 2,234 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 4,965 | N/A | US$ | 4,968 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 7,558 | N/A | US$ | 7,576 | ||||||||||||||
Federal Home Ln Bks | | Short-term investment | | US$ | 8,594 | N/A | US$ | 8,586 | ||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 999 | N/A | US$ | 995 | ||||||||||||||
Federal Home Ln Mtg Corp. | | Short-term investment | | US$ | 4,933 | N/A | US$ | 4,943 |
-44-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 5,270 | N/A | US$ | 5,228 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 5,337 | N/A | US$ | 5,340 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,430 | N/A | US$ | 4,421 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,921 | N/A | US$ | 4,908 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 3,470 | N/A | US$ | 3,466 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 6,903 | N/A | US$ | 6,913 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,981 | N/A | US$ | 4,938 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,061 | N/A | US$ | 4,069 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 7,892 | N/A | US$ | 7,905 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 4,943 | N/A | US$ | 4,954 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 17,888 | N/A | US$ | 17,904 | ||||||||||||||
Federal Natl Mtg Assn | | Short-term investment | | US$ | 14,952 | N/A | US$ | 14,913 | ||||||||||||||
Federal Natl Mtg Assn Mtn | | Short-term investment | | US$ | 15,787 | N/A | US$ | 15,753 | ||||||||||||||
Federal Natl Mtg Assn Mtn | | Short-term investment | | US$ | 9,758 | N/A | US$ | 9,769 | ||||||||||||||
Fed Hm Ln Pc | | Short-term investment | | US$ | 3,466 | N/A | US$ | 3,465 | ||||||||||||||
Federal Natl Mtg Assn Mtn | | Short-term investment | | US$ | 7,000 | N/A | US$ | 6,932 | ||||||||||||||
Corporate issued asset-backed securities | ||||||||||||||||||||||
Aesop Fdg II L L C | | Short-term investment | | US$ | 4,955 | N/A | US$ | 4,951 | ||||||||||||||
Aegis Asset Backed Secs Tr | | Short-term investment | | US$ | 2,000 | N/A | US$ | 2,007 | ||||||||||||||
American Home Mtg Invt Tr | | Short-term investment | | US$ | 690 | N/A | US$ | 690 | ||||||||||||||
Americredit Automobile Rec Tr | | Short-term investment | | US$ | 1,055 | N/A | US$ | 1,042 | ||||||||||||||
Americredit Auomobile Receiv | | Short-term investment | | US$ | 513 | N/A | US$ | 512 | ||||||||||||||
Americredit Automobile Receivb | | Short-term investment | | US$ | 4,949 | N/A | US$ | 4,902 | ||||||||||||||
Americredit Automobile Rec Tr | | Short-term investment | | US$ | 2,000 | N/A | US$ | 1,989 | ||||||||||||||
Atlantic City Elc Trns Fdg LLC | | Short-term investment | | US$ | 810 | N/A | US$ | 802 | ||||||||||||||
Bmw Veh Owner Tr | | Short-term investment | | US$ | 4,978 | N/A | US$ | 4,945 | ||||||||||||||
Banc Amer Coml Mtg Inc. | | Short-term investment | | US$ | 4,917 | N/A | US$ | 4,862 | ||||||||||||||
Banc Amer Mtg Secs Inc. | | Short-term investment | | US$ | 4,030 | N/A | US$ | 3,995 | ||||||||||||||
Bank Of Amer Lease Equip Tr | | Short-term investment | | US$ | 4,023 | N/A | US$ | 3,974 | ||||||||||||||
Bear Stearns Alt A Tr | | Short-term investment | | US$ | 1,230 | N/A | US$ | 1,232 | ||||||||||||||
Cit Equip Coll Tr | | Short-term investment | | US$ | 4,999 | N/A | US$ | 4,957 | ||||||||||||||
Cnh Equip Tr | | Short-term investment | | US$ | 4,999 | N/A | US$ | 4,920 | ||||||||||||||
Cwabs Inc. | | Short-term investment | | US$ | 1,030 | N/A | US$ | 1,035 | ||||||||||||||
Cwabs Inc. | | Short-term investment | | US$ | 5,000 | N/A | US$ | 5,008 | ||||||||||||||
Cwabs Inc. | | Short-term investment | | US$ | 2,895 | N/A | US$ | 2,899 | ||||||||||||||
Cwalt Inc. | | Short-term investment | | US$ | 2,963 | N/A | US$ | 2,938 | ||||||||||||||
Cwmbs Inc. | | Short-term investment | | US$ | 1,686 | N/A | US$ | 1,667 | ||||||||||||||
Cwmbs Inc. | | Short-term investment | | US$ | 3,711 | N/A | US$ | 3,721 | ||||||||||||||
California Infrastructure Dev | | Short-term investment | | US$ | 1,578 | N/A | US$ | 1,546 | ||||||||||||||
Capital Auto Receivables Asset | | Short-term investment | | US$ | 2,622 | N/A | US$ | 2,598 | ||||||||||||||
Capital One Auto Fin Tr | | Short-term investment | | US$ | 438 | N/A | US$ | 436 | ||||||||||||||
Capital One Auto Fin Tr | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,982 | ||||||||||||||
Capital One Auto Fin Tr | | Short-term investment | | US$ | 2,650 | N/A | US$ | 2,649 | ||||||||||||||
Capital One Multi Asset Execut | | Short-term investment | | US$ | 4,957 | N/A | US$ | 4,940 | ||||||||||||||
Caterpillar Finl Asset Tr | | Short-term investment | | US$ | 10,008 | N/A | US$ | 9,880 |
-45-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
Caterpillar Finl Asset Tr | | Short-term investment | | US$ | 3,299 | N/A | US$ | 3,260 | ||||||||||||||
Cendant Rent Car Fdg Aesop LLC | | Short-term investment | | US$ | 11,626 | N/A | US$ | 11,603 | ||||||||||||||
Centex Home Equity Ln Tr | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,468 | ||||||||||||||
Citicorp Mtg Secs | | Short-term investment | | US$ | 1,701 | N/A | US$ | 1,693 | ||||||||||||||
Comm | | Short-term investment | | US$ | 4,600 | N/A | US$ | 4,604 | ||||||||||||||
Credit Suisse First Boston Mtg | | Short-term investment | | US$ | 1,767 | N/A | US$ | 1,752 | ||||||||||||||
Credit Suisse First Boston Mtg | | Short-term investment | | US$ | 2,593 | N/A | US$ | 2,591 | ||||||||||||||
Daimlerchrysler Auto Tr | | Short-term investment | | US$ | 4,991 | N/A | US$ | 4,958 | ||||||||||||||
Daimlerchrysler Auto Tr | | Short-term investment | | US$ | 2,927 | N/A | US$ | 2,924 | ||||||||||||||
Daimlerchrysler Auto Tr | | Short-term investment | | US$ | 4,897 | N/A | US$ | 4,886 | ||||||||||||||
Deere John Owner Tr | | Short-term investment | | US$ | 2,501 | N/A | US$ | 2,505 | ||||||||||||||
Fifth Third Auto Tr | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,987 | ||||||||||||||
First Horizon Abs Tr | | Short-term investment | | US$ | 1,554 | N/A | US$ | 1,557 | ||||||||||||||
First Union Lehman Bros Mtg Tr | | Short-term investment | | US$ | 3,022 | N/A | US$ | 2,942 | ||||||||||||||
Ford Cr Auto Owner Tr | | Short-term investment | | US$ | 10,999 | N/A | US$ | 10,918 | ||||||||||||||
Gs Mtg Secs Corp. | | Short-term investment | | US$ | 1,347 | N/A | US$ | 1,347 | ||||||||||||||
Gs Auto Ln Tr | | Short-term investment | | US$ | 2,948 | N/A | US$ | 2,973 | ||||||||||||||
Granite Mtgs Plc | | Short-term investment | | US$ | 5,000 | N/A | US$ | 5,000 | ||||||||||||||
Harley Davidson Motorcycle Tr | | Short-term investment | | US$ | 2,434 | N/A | US$ | 2,415 | ||||||||||||||
Harley Davidson Motorcycle Tr | | Short-term investment | | US$ | 5,999 | N/A | US$ | 5,893 | ||||||||||||||
Holmes Fing No 8 Plc | | Short-term investment | | US$ | 5,001 | N/A | US$ | 5,048 | ||||||||||||||
Hyundai Auto Receivables Tr | | Short-term investment | | US$ | 3,500 | N/A | US$ | 3,444 | ||||||||||||||
Hyundai Auto Receivables Tr | | Short-term investment | | US$ | 3,250 | N/A | US$ | 3,250 | ||||||||||||||
Hyundai Auto Receivables Tr | | Short-term investment | | US$ | 3,999 | N/A | US$ | 3,999 | ||||||||||||||
Impac Cmb Tr | | Short-term investment | | US$ | 934 | N/A | US$ | 934 | ||||||||||||||
Impac Cmb Tr | | Short-term investment | | US$ | 860 | N/A | US$ | 862 | ||||||||||||||
Impac Secd Assets Corp. | | Short-term investment | | US$ | 2,451 | N/A | US$ | 2,451 | ||||||||||||||
Lb Ubs Coml Mtg Tr | | Short-term investment | | US$ | 4,184 | N/A | US$ | 4,197 | ||||||||||||||
Long Beach Accep Auto Receivab | | Short-term investment | | US$ | 2,526 | N/A | US$ | 2,493 | ||||||||||||||
Mbna Master Cr Card Tr II | | Short-term investment | | US$ | 8,108 | N/A | US$ | 8,080 | ||||||||||||||
Massachusetts Rrb Spl Purp Tr | | Short-term investment | | US$ | 3,900 | N/A | US$ | 3,871 | ||||||||||||||
Mastr Asset Backed Secs Tr | | Short-term investment | | US$ | 2,680 | N/A | US$ | 2,680 | ||||||||||||||
Mastr Asset Backed Secs Tr | | Short-term investment | | US$ | 3,499 | N/A | US$ | 3,498 | ||||||||||||||
Merrill Lynch Mtg Invs Inc. | | Short-term investment | | US$ | 1,171 | N/A | US$ | 1,171 | ||||||||||||||
Merrill Lynch Mtg Invs Inc. | | Short-term investment | | US$ | 1,500 | N/A | US$ | 1,504 | ||||||||||||||
Merrill Lynch Mtg Invs Inc. | | Short-term investment | | US$ | 882 | N/A | US$ | 882 | ||||||||||||||
Monumentl Global Fdg II | | Short-term investment | | US$ | 1,000 | N/A | US$ | 1,000 | ||||||||||||||
National City Auto Receivables | | Short-term investment | | US$ | 1,206 | N/A | US$ | 1,211 | ||||||||||||||
Navistar Finl 2003 A Owner Tr | | Short-term investment | | US$ | 4,928 | N/A | US$ | 4,878 | ||||||||||||||
Nissan Auto Receivables | | Short-term investment | | US$ | 7,000 | N/A | US$ | 6,948 | ||||||||||||||
Onyx Accep Owner Tr | | Short-term investment | | US$ | 4,913 | N/A | US$ | 4,927 | ||||||||||||||
Pg+E Energy Recovery Fdg LLC | | Short-term investment | | US$ | 4,749 | N/A | US$ | 4,747 | ||||||||||||||
Prime Cr Card Master Tr | | Short-term investment | | US$ | 4,080 | N/A | US$ | 4,044 | ||||||||||||||
Providian Gateway Owner Tr | | Short-term investment | | US$ | 4,204 | N/A | US$ | 4,205 | ||||||||||||||
Providian Gateway Owner Tr | | Short-term investment | | US$ | 3,992 | N/A | US$ | 3,956 | ||||||||||||||
Reliant Energy Transition Bd | | Short-term investment | | US$ | 5,185 | N/A | US$ | 5,059 |
-46-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
Residential Asset Mtg Prods | | Short-term investment | | US$ | 3,464 | N/A | US$ | 3,399 | ||||||||||||||
Residential Asset Sec Mtg Pass | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,962 | ||||||||||||||
Residential Fdg Mtg Secs I Inc. | | Short-term investment | | US$ | 3,112 | N/A | US$ | 3,086 | ||||||||||||||
Residential Fdg Mtg Secs I Inc. | | Short-term investment | | US$ | 5,475 | N/A | US$ | 5,490 | ||||||||||||||
Revolving Home Equity Ln Tr | | Short-term investment | | US$ | 4,380 | N/A | US$ | 4,384 | ||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 2,228 | N/A | US$ | 2,236 | ||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 1,572 | N/A | US$ | 1,572 | ||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 1,689 | N/A | US$ | 1,693 | ||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 2,851 | N/A | US$ | 2,850 | ||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 2,330 | N/A | US$ | 2,328 | ||||||||||||||
Sequoia Mtg Tr | | Short-term investment | | US$ | 3,075 | N/A | US$ | 3,070 | ||||||||||||||
Structured Adj Rate Mtg Ln Tr | | Short-term investment | | US$ | 2,653 | N/A | US$ | 2,625 | ||||||||||||||
Structured Adj Rate Mtg Ln Tr | | Short-term investment | | US$ | 943 | N/A | US$ | 939 | ||||||||||||||
Structured Asset Invt Ln Tr | | Short-term investment | | US$ | 1,576 | N/A | US$ | 1,576 | ||||||||||||||
Structured Asset Secs Corp. | | Short-term investment | | US$ | 1,041 | N/A | US$ | 1,029 | ||||||||||||||
Txu Elec Delivery Transition | | Short-term investment | | US$ | 3,530 | N/A | US$ | 3,467 | ||||||||||||||
Thornburg Mtg Secs Tr | | Short-term investment | | US$ | 1,669 | N/A | US$ | 1,672 | ||||||||||||||
Toyota Auto Receivables 2003 B | | Short-term investment | | US$ | 4,970 | N/A | US$ | 4,920 | ||||||||||||||
Triad Auto Receivables Tr | | Short-term investment | | US$ | 4,899 | N/A | US$ | 4,838 | ||||||||||||||
Usaa Auto Owner Tr | | Short-term investment | | US$ | 3,718 | N/A | US$ | 3,711 | ||||||||||||||
Wfs Financial Owner Trust | | Short-term investment | | US$ | 5,008 | N/A | US$ | 4,970 | ||||||||||||||
Wfs Finl 2004 2 Owner Tr | | Short-term investment | | US$ | 4,994 | N/A | US$ | 4,961 | ||||||||||||||
Wfs Finl 2004 4 Owner Tr | | Short-term investment | | US$ | 5,399 | N/A | US$ | 5,345 | ||||||||||||||
Wfs Finl 2005 2 Oner Tr | | Short-term investment | | US$ | 2,250 | N/A | US$ | 2,277 | ||||||||||||||
Wachovia Auto Owner Tr | | Short-term investment | | US$ | 3,039 | N/A | US$ | 3,033 | ||||||||||||||
Wachovia Auto Owner Tr | | Short-term investment | | US$ | 4,999 | N/A | US$ | 4,976 | ||||||||||||||
Wells Fargo Finl Auto Owner Tr | | Short-term investment | | US$ | 5,299 | N/A | US$ | 5,307 | ||||||||||||||
Whole Auto Ln Tr | | Short-term investment | | US$ | 1,954 | N/A | US$ | 1,969 | ||||||||||||||
Whole Auto Ln Tr | | Short-term investment | | US$ | 4,000 | N/A | US$ | 3,956 | ||||||||||||||
Whole Auto Ln Tr | | Short-term investment | | US$ | 3,000 | N/A | US$ | 2,952 | ||||||||||||||
World Omni Auto Receivables Tr | | Short-term investment | | US$ | 5,963 | N/A | US$ | 5,884 | ||||||||||||||
Commercial papers | ||||||||||||||||||||||
Canadian Imperial | | Short-term investment | | US$ | 2,997 | N/A | US$ | 2,997 | ||||||||||||||
Corporate issued notes | ||||||||||||||||||||||
Canadian Imperial BK | | Short-term investment | | US$ | 1,999 | N/A | US$ | 1,999 | ||||||||||||||
Washiongton Mutual | | Short-term investment | | US$ | 3,000 | N/A | US$ | 3,000 | ||||||||||||||
Money market funds | ||||||||||||||||||||||
SSGA Cash Mgmt Global Offshore | | Short-term investment | | US$ | 15,544 | N/A | US$ | 15,544 | ||||||||||||||
Equity | ||||||||||||||||||||||
Horizon Venture Fund I, L.P. | | Long-term investment | | 246,485 | N/A | 246,485 | ||||||||||||||||
Crimson Asia Capital Ltd., L.P. | | Long-term investment | | 55,954 | N/A | 55,954 | ||||||||||||||||
TSMC-North America |
TSMC stock | Parent company | Short-term investment | 13,923 | 634,498 | | 786,960 |
-47-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
Chi Cherng |
TSMC stock | Parent company | Short-term investment | 16,454 | 458,564 | | 929,970 | |||||||||||||||
Hsin Ruey |
TSMC stock | Parent company | Short-term investment | 16,485 | 459,511 | | 931,713 | |||||||||||||||
TSMC International |
Stock | |||||||||||||||||||||
TSMC Development | Subsidiary | Long-term investment | 1 | US$ | 584,414 | 100 | US$ | 584,414 | ||||||||||||||
TSMC Technology | Subsidiary | Long-term investment | 1 | US$ | 5,608 | 100 | US$ | 5,608 | ||||||||||||||
InveStar | Subsidiary | Long-term investment | 18,505 | US$ | 19,048 | 97 | US$ | 19,048 | ||||||||||||||
InveStar II | Subsidiary | Long-term investment | 51,300 | US$ | 33,921 | 97 | US$ | 33,921 | ||||||||||||||
TSMC Development |
WaferTech stock | Subsidiary | Long-term investment | | US$ | 417,535 | 99 | US$ | 417,535 | |||||||||||||
InveStar |
Common stock | |||||||||||||||||||||
RichTek Technology Corp. | | Short-term investment | 787 | US$ | 77 | 1 | US$ | 2,657 | ||||||||||||||
Advanced Power Electronics Corp. | | Short-term investment | 633 | US$ | 287 | 1 | US$ | 549 | ||||||||||||||
Broadtek Electronics Corp. | | Short-term investment | 145 | US$ | 46 | | US$ | 60 | ||||||||||||||
Monolithic Power Systems, Inc. | | Short-term investment | 1,975 | US$ | 1,567 | 7 | US$ | 17,245 | ||||||||||||||
SiRF Technology Holdings, Inc. | | Short-term investment | 10 | US$ | 44 | | US$ | 163 | ||||||||||||||
Programmable Microelectronics (Taiwan), Corp. | | Long-term investment | 575 | US$ | 218 | 1 | US$ | 218 | ||||||||||||||
Capella Microsystems (Taiwan), Inc. | | Long-term investment | 530 | US$ | 168 | 3 | US$ | 168 | ||||||||||||||
Global Testing Corp. | | Long-term investment | 66,339 | US$ | 5,611 | 9 | US$ | 5,611 | ||||||||||||||
Signia Technologies, Inc. | | Long-term investment | 701 | US$ | 222 | 3 | US$ | 222 | ||||||||||||||
Advanced Power Electronics Corp. | | Long-term investment | 1,123 | US$ | 495 | 2 | US$ | 973 | ||||||||||||||
Incentia Design Systems, Inc. | | Long-term investment | 365 | US$ | 97 | 1 | US$ | 97 | ||||||||||||||
Broadtek Electronics Corp. | | Long-term investment | 145 | US$ | 47 | | US$ | 60 | ||||||||||||||
RichTek Technology Corp. | | Long-term investment | 632 | US$ | 64 | 1 | US$ | 2,133 | ||||||||||||||
Preferred stock | ||||||||||||||||||||||
Integrated Memory Logic, Inc. | | Long-term investment | 1,831 | US$ | 1,221 | 9 | US$ | 1,221 | ||||||||||||||
Sensory, Inc. | | Long-term investment | 1,404 | US$ | 125 | 6 | US$ | 125 | ||||||||||||||
IP Unity, Inc. | | Long-term investment | 1,008 | US$ | 494 | 2 | US$ | 494 | ||||||||||||||
Sonics, Inc. | | Long-term investment | 2,686 | US$ | 3,530 | 4 | US$ | 3,530 | ||||||||||||||
NanoAmp Solutions, Inc. | | Long-term investment | 541 | US$ | 853 | 2 | US$ | 853 | ||||||||||||||
Memsic, Inc. | | Long-term investment | 2,727 | US$ | 1,500 | 10 | US$ | 1,500 | ||||||||||||||
Reflectivity, Inc. | | Long-term investment | 1,064 | US$ | 741 | 2 | US$ | 741 | ||||||||||||||
InveStar II |
Common stock | |||||||||||||||||||||
RichTek Technology Corp. | | Short-term investment | 373 | US$ | 213 | 1 | US$ | 1,260 | ||||||||||||||
Monolithic Power Systems, Inc. | | Short-term investment | 864 | US$ | 2,081 | 3 | US$ | 7,550 | ||||||||||||||
GeoVision, Inc. | | Short-term investment | 401 | US$ | 108 | 1 | US$ | 1,291 | ||||||||||||||
Signia Technologies, Inc. | | Long-term investment | 351 | US$ | 101 | 1 | US$ | 101 | ||||||||||||||
Ralink Technology (Taiwan), Inc. | | Long-term investment | 1,833 | US$ | 791 | 3 | US$ | 791 | ||||||||||||||
Silicon Data International Co., Inc. | | Long-term investment | 667 | US$ | 204 | 3 | US$ | 204 | ||||||||||||||
Procoat Technology, Inc. | | Long-term investment | 5,123 | US$ | 1,940 | 10 | US$ | 1,940 | ||||||||||||||
Capella Microsystems (Taiwan), Inc. | | Long-term investment | 419 | US$ | 122 | 2 | US$ | 122 | ||||||||||||||
Programmable Microelectronics (Taiwan), Inc. | | Long-term investment | 177 | US$ | 50 | | US$ | 50 |
-48-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
Auden Technology MFG. Co., Ltd. | | Long-term investment | 953 | US$ | 738 | 4 | US$ | 738 | ||||||||||||||
EoNEX Technologies, Inc. | | Long-term investment | 55 | US$ | 3,048 | 5 | US$ | 3,048 | ||||||||||||||
Conwise Technology Corporation, Ltd. | | Long-term investment | 2,800 | US$ | 490 | 14 | US$ | 490 | ||||||||||||||
Goyatek Technology, Corp. | | Long-term investment | 2,088 | US$ | 545 | 7 | US$ | 545 | ||||||||||||||
Trendchip Technologies Corp. | | Long-term investment | 2,000 | US$ | 861 | 5 | US$ | 861 | ||||||||||||||
EON Technology, Corp. | | Long-term investment | 3,264 | US$ | 1,175 | 8 | US$ | 1,175 | ||||||||||||||
eChannelOpen Holding, Inc. | | Long-term investment | 358 | US$ | 251 | 4 | US$ | 251 | ||||||||||||||
eLCOS Microdisplay Technology, Ltd. | | Long-term investment | 270 | US$ | 27 | 1 | US$ | 27 | ||||||||||||||
GeoVision, Inc. | | Long-term investment | 15 | US$ | 4 | | US$ | 47 | ||||||||||||||
RichTek Technology Corp. | | Long-term investment | 296 | US$ | 169 | | US$ | 1,001 | ||||||||||||||
Epic, Inc. | | Long-term investment | 191 | US$ | 37 | 1 | US$ | 37 | ||||||||||||||
Preferred stock | ||||||||||||||||||||||
Memsic, Inc. | | Long-term investment | 2,289 | US$ | 1,560 | 8 | US$ | 1,560 | ||||||||||||||
NanoAmp Solutions, Inc. | | Long-term investment | 375 | US$ | 1,500 | 1 | US$ | 1,500 | ||||||||||||||
Advanced Analogic Technology, Inc. | | Long-term investment | 948 | US$ | 1,261 | 2 | US$ | 1,261 | ||||||||||||||
Sonics, Inc. | | Long-term investment | 3,082 | US$ | 3,082 | 5 | US$ | 3,082 | ||||||||||||||
eLCOS Microdisplay Technology, Ltd. | | Long-term investment | 2,667 | US$ | 3,500 | 15 | US$ | 3,500 | ||||||||||||||
Reflectivity, Inc. | | Long-term investment | 4,255 | US$ | 2,205 | 5 | US$ | 2,205 | ||||||||||||||
Kilopass Technologies, Inc. | | Long-term investment | 3,887 | US$ | 2,000 | 18 | US$ | 2,000 | ||||||||||||||
FangTek, Inc. | | Long-term investment | 6,806 | US$ | 3,250 | 34 | US$ | 3,250 | ||||||||||||||
Alchip Technologies Limited | | Long-term investment | 2,597 | US$ | 2,950 | 18 | US$ | 2,950 | ||||||||||||||
Emerging Alliance |
Common stock | |||||||||||||||||||||
Global Investment Holding, Inc. | | Long-term investment | 10,000 | $ | 100,000 | 6 | $ | 100,000 | ||||||||||||||
RichWave Technology Corp. | | Long-term investment | 3,380 | US$ | 1,247 | 13 | US$ | 1,247 | ||||||||||||||
NetLogic Microsystems, Inc. | | Long-term investment | 113 | US$ | 1,388 | 1 | US$ | 1,867 | ||||||||||||||
Quake Technologies, Inc. | | Long-term investment | 46 | US$ | 35 | | US$ | 35 | ||||||||||||||
Pixim, Inc. | | Long-term investment | 1,924 | US$ | 512 | 4 | US$ | 512 | ||||||||||||||
Preferred stock | ||||||||||||||||||||||
Quake Technologies, Inc. | | Long-term investment | 555 | US$ | 415 | 1 | US$ | 415 | ||||||||||||||
Pixim, Inc. | | Long-term investment | 2,193 | US$ | 583 | | US$ | 583 | ||||||||||||||
Ikanos Communication, Inc. | | Long-term investment | 7,446 | US$ | 3,125 | 3 | US$ | 3,125 | ||||||||||||||
Quicksilver Technology, Inc. | | Long-term investment | 1,049 | US$ | | 4 | US$ | | ||||||||||||||
Mosaic Systems, Inc. | | Long-term investment | 2,481 | US$ | 12 | 6 | US$ | 12 | ||||||||||||||
Zenesis Technologies, Inc. | | Long-term investment | 1,204 | US$ | 699 | 4 | US$ | 699 | ||||||||||||||
Reflectivity, Inc. | | Long-term investment | 4,848 | US$ | 2,479 | 4 | US$ | 2,479 | ||||||||||||||
Miradia, Inc. | | Long-term investment | 3,040 | US$ | 1,000 | 4 | US$ | 1,000 | ||||||||||||||
Axiom Microdevices, Inc. | | Long-term investment | 1,000 | US$ | 1,000 | 3 | US$ | 1,000 | ||||||||||||||
Optichron, Inc. | | Long-term investment | 714 | US$ | 1,000 | 4 | US$ | 1,000 | ||||||||||||||
NuCORE Technology Inc. | | Long-term investment | 2,254 | US$ | 1,455 | 2 | US$ | 1,455 | ||||||||||||||
Next IO, Inc. | | Long-term investment | 800 | US$ | 500 | 2 | US$ | 500 | ||||||||||||||
Audience, Inc. | | Long-term investment | 1,654 | US$ | 250 | 2 | US$ | 250 | ||||||||||||||
Centrality Communications, Inc. | | Long-term investment | 809 | US$ | 1,000 | 2 | US$ | 1,000 |
-49-
June 30, 2005 | ||||||||||||||||||||||
Market Value or | ||||||||||||||||||||||
Carrying Value | Net Asset Value | |||||||||||||||||||||
Relationship with | Financial Statement | Shares/Units | (US$ in | Percentage of | (US$ in | |||||||||||||||||
Held Company Name | Marketable Securities Type and Name | the Company | Account | (In Thousand) | Thousand) | Ownership | Thousand) | Note | ||||||||||||||
Layer N Networks, Inc. | | Long-term investment | 1,905 | US$ | 1,000 | 2 | US$ | 1,000 | ||||||||||||||
Teknovus, Inc. | | Long-term investment | 6,977 | US$ | 1,327 | 3 | US$ | 1,327 | ||||||||||||||
Optimal Corporation | | Long-term investment | 485 | US$ | 500 | 6 | US$ | 500 | ||||||||||||||
Mobilygen Corporation | | Long-term investment | 1,415 | US$ | 750 | 1 | US$ | 750 | ||||||||||||||
Warrants | ||||||||||||||||||||||
Pixim, Inc. | | Long-term investment | 242 | | | | ||||||||||||||||
VTAF II |
Common stock | |||||||||||||||||||||
Yobon Technologies, Inc. | | Long-term investment | 1,675 | US$ | 787 | 17 | US$ | 787 | ||||||||||||||
Sentelic, Corp. | | Long-term investment | 600 | US$ | 1,022 | 15 | US$ | 1,022 | ||||||||||||||
Ultramedia Inc. (formerly Ivyon Technology, Inc.) | | Long-term investment | 200 | US$ | 697 | 10 | US$ | 697 | ||||||||||||||
Preferred stock | ||||||||||||||||||||||
Powerprecise Solutions, Inc. | | Long-term investment | 1,032 | US$ | 1,000 | 8 | US$ | 1,000 | ||||||||||||||
Tzero Technologies, Inc. | | Long-term investment | 244 | US$ | 500 | 2 | US$ | 500 | ||||||||||||||
Miradia, Inc. | | Long-term investment | 1,809 | US$ | 1,600 | 2 | US$ | 1,600 | ||||||||||||||
Axiom Microdevices, Inc. | | Long-term investment | 761 | US$ | 776 | 2 | US$ | 776 | ||||||||||||||
Next IO, Inc. | | Long-term investment | 216 | US$ | 182 | | US$ | 182 | ||||||||||||||
Ageia Technologies, Inc. | | Long-term investment | 1,149 | US$ | 1,000 | 2 | US$ | 1,000 | ||||||||||||||
Audience, Inc. | | Long-term investment | 531 | US$ | 102 | 1 | US$ | 102 | ||||||||||||||
GemFire Corporation | | Long-term investment | 600 | US$ | 600 | 1 | US$ | 600 | ||||||||||||||
Optichron, Inc. | | Long-term investment | 353 | US$ | 869 | 2 | US$ | 869 | ||||||||||||||
Aquantia Corporation. | | Long-term investment | | US$ | 150 | | US$ | 150 | ||||||||||||||
Leadtrend Technology, Inc. | | Long-term investment | 900 | US$ | 431 | 5 | US$ | 431 | ||||||||||||||
GUC |
Open-ended funds | |||||||||||||||||||||
Fubon Ju-I Fund | | Short-term investment | 643 | 10,000 | N/A | 10,008 | ||||||||||||||||
Stock | ||||||||||||||||||||||
Global Unichip Corporation - NA | Subsidiary | Long-term investment | 100 | 3,884 | 100 | 3,884 |
-50-
Beginning Balance | Acquisition | Disposal | Ending Balance | |||||||||||||||||||||||||||||||||||||||||||||
Marketable | Carrying | Gain (Loss) | Amount | |||||||||||||||||||||||||||||||||||||||||||||
Securities | Financial | Amount | Amount | Amount | Value | on Disposal | (US$ in | |||||||||||||||||||||||||||||||||||||||||
Type and | Statement | Nature of | Shares/Units | (US$ in | Shares/Units | (US$ in | Shares/Units | (US$ in | (US$ in | (US$ in | Shares/Units | Thousand) | ||||||||||||||||||||||||||||||||||||
Company Name | Name | Account | Counter-party | Relationship | (Thousand) | Thousand) | (Thousand) | Thousand) | (Thousand) | Thousand) | Thousand) | Thousand) | (Thousand) | (Note 1) | ||||||||||||||||||||||||||||||||||
The Company |
Bond funds | |||||||||||||||||||||||||||||||||||||||||||||||
Dresdner Bond DAM Fund | Short-term investment | Allianz
Dresdner Securities Investment Consulting Co., Ltd. |
||||||||||||||||||||||||||||||||||||||||||||||
| 80,833 | $ | 900,000 | | $ | | 11,530 | $ | 130,000 | $ | 128,383 | $ | 1,617 | 69,303 | $ | 771,617 | ||||||||||||||||||||||||||||||||
JF Taiwan First Bond Fund | Short-term investment | JF Asset Management (Taiwan) Ltd. | | 84,886 | 1,151,463 | | | 10,893 | 150,000 | 147,762 | 2,238 | 73,993 | 1,003,701 | |||||||||||||||||||||||||||||||||||
Barits Bond Fund | Short-term investment | Barits
Securities Investment Trust Co., Ltd. |
||||||||||||||||||||||||||||||||||||||||||||||
| 76,640 | 900,000 | | | 12,591 | 150,000 | 147,851 | 2,149 | 64,049 | 752,149 | ||||||||||||||||||||||||||||||||||||||
Bonds under repurchase agreement | Short-term investment | Chung Shing Bills Finance Corp. and
several financial institutions |
||||||||||||||||||||||||||||||||||||||||||||||
| | 249,449 | | | | 251,784 | 249,449 | 2,335 | | | ||||||||||||||||||||||||||||||||||||||
Government bonds | ||||||||||||||||||||||||||||||||||||||||||||||||
2003 Government Bond Series A | Short-term investment | BNP
and several financial institutions |
||||||||||||||||||||||||||||||||||||||||||||||
| | 1,207,409 | | | | 1,216,500 | 1,207,409 | 9,091 | | | ||||||||||||||||||||||||||||||||||||||
Kreditanstalt Fur Wiederaufbau | Short-term investment | | | | | | US$ | 6,881 | | | | | | US$ | 6,881 | |||||||||||||||||||||||||||||||||
United States Treas NTS | Short-term investment | | | | US$ | 182,018 | | US$ | 256,453 | | US$ | 366,461 | US$ | 367,586 | US$ | (1,125 | ) | | US$ | 70,885 | ||||||||||||||||||||||||||||
2002 Government Bond Series B | Long-term investment | China
Bills Finance Corp. and several financial institutions |
||||||||||||||||||||||||||||||||||||||||||||||
| | | | 360,050 | | | | | | 358,683 | ||||||||||||||||||||||||||||||||||||||
2005 Government Bond Series A | Long-term investment | China Bills Finance Corp. and
several financial institutions |
||||||||||||||||||||||||||||||||||||||||||||||
| | | | 1,200,000 | | | | | | 1,200,000 | ||||||||||||||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||||||||||||||||||
Formosa Petrochemical Corporation | Short-term investment | China Bills Finance Corp. | | | | | 311,568 | | 311,568 | |||||||||||||||||||||||||||||||||||||||
Taiwan Power Company | Short-term investment | China Bills Finance Corp. | | 2,777,798 | | | 2,002,676 | 1,961,516 | 41,160 | | 816,282 | |||||||||||||||||||||||||||||||||||||
Allstate Finl Global Fdg LLC | Short-term investment | | | | US$ | 3,171 | | | | US$ | 3,086 | US$ | 3,171 | US$ | (85 | ) | | | ||||||||||||||||||||||||||||||
Bear Stearns Cos Inc. | Short-term investment | | | | | | US$ | 3,757 | | | | | | US$ | 3,757 | |||||||||||||||||||||||||||||||||
Citigroup Inc. | Short-term investment | | | | US$ | 3,583 | | | | US$ | 3,512 | US$ | 3,583 | US$ | (71 | ) | | | ||||||||||||||||||||||||||||||
Countrywide Fdg Corp. Mtn | Short-term investment | | | | | | US$ | 3,500 | | | | | | US$ | 3,500 | |||||||||||||||||||||||||||||||||
Countrywide Finl Corp. | Short-term investment | | | | | | US$ | 3,000 | | | | | | US$ | 3,000 | |||||||||||||||||||||||||||||||||
Credit Suisse Fb USA Inc. | Short-term investment | | | | US$ | 2,645 | | US$ | 4,141 | | US$ | 2,593 | US$ | 2,645 | US$ | (52 | ) | | US$ | 4,141 | ||||||||||||||||||||||||||||
Credit Suisse First Boston USA | Short-term investment | | | | | | US$ | 3,832 | | US$ | 3,780 | US$ | 3,832 | US$ | (52 | ) | | | ||||||||||||||||||||||||||||||
Deere John Cap Corp. | Short-term investment | | | | | | US$ | 5,079 | | | | | | US$ | 5,079 | |||||||||||||||||||||||||||||||||
European Invt Bk. | Short-term investment | | | | | | US$ | 3,918 | | | | | | US$ | 3,918 | |||||||||||||||||||||||||||||||||
General Elec Cap Corp. Mtn | Short-term investment | | | | US$ | 3,467 | | | | US$ | 3,432 | US$ | 3,467 | US$ | (35 | ) | | | ||||||||||||||||||||||||||||||
General Elec Cap Corp. Mtn | Short-term investment | | | | | | US$ | 8,862 | | | | | | US$ | 8,862 | |||||||||||||||||||||||||||||||||
General Elec Cap Corp. Mtn | Short-term investment | | | | | | US$ | 3,989 | | | | | | US$ | 3,989 | |||||||||||||||||||||||||||||||||
General Elec Cap Corp. Mtn | Short-term investment | | | | US$ | 3,886 | | | | US$ | 3,822 | US$ | 3,886 | US$ | (64 | ) | | | ||||||||||||||||||||||||||||||
General Re Corp. | Short-term investment | | | | | | US$ | 3,500 | | | | | | US$ | 3,500 | |||||||||||||||||||||||||||||||||
Goldman Sachs Group Inc Mtn | Short-term investment | | | | US$ | 3,505 | | | | US$ | 3,506 | US$ | 3,505 | US$ | 1 | | | |||||||||||||||||||||||||||||||
Hancock John Global Fdg II Mtn | Short-term investment | | | | | | US$ | 3,566 | | | | | | US$ | 3,566 | |||||||||||||||||||||||||||||||||
ING Sec Life Ins Ingslf | Short-term investment | | | | US$ | 3,012 | | | | US$ | 3,008 | US$ | 3,012 | US$ | (4 | ) | | | ||||||||||||||||||||||||||||||
International Business Machs | Short-term investment | | | | | | US$ | 7,247 | | US$ | 4,994 | US$ | 4,998 | US$ | (4 | ) | | US$ | 2,249 | |||||||||||||||||||||||||||||
Intl Lease Fin Corp. Mtn | Short-term investment | | | | | | US$ | 3,028 | | | | | | US$ | 3,028 | |||||||||||||||||||||||||||||||||
Key Bk Na Med Term Nts Bk Entr | Short-term investment | | | | | | US$ | 4,450 | | | | | | US$ | 4,450 | |||||||||||||||||||||||||||||||||
Morgan Stanley Group Inc. | Short-term investment | | | | US$ | 3,638 | | | | US$ | 3,571 | US$ | 3,638 | US$ | (67 | ) | | | ||||||||||||||||||||||||||||||
Morgan Stanley Group Inc. | Short-term investment | | | | US$ | 1,050 | | US$ | 4,507 | | | | | | US$ | 5,557 | ||||||||||||||||||||||||||||||||
National City Corp. | Short-term investment | | | | | | US$ | 3,426 | | | | | | US$ | 3,426 | |||||||||||||||||||||||||||||||||
Nationsbank Corp. | Short-term investment | | | | US$ | 3,644 | | | | US$ | 3,522 | US$ | 3,644 | US$ | (122 | ) | | | ||||||||||||||||||||||||||||||
Nationwide Bldg Soc Mtn | Short-term investment | | | | | | US$ | 3,000 | | | | | | US$ | 3,000 | |||||||||||||||||||||||||||||||||
Ppg Inds Inc. | Short-term investment | | | | | | US$ | 3,571 | | US$ | 3,674 | US$ | 3,571 | US$ | 103 | | | |||||||||||||||||||||||||||||||
Pricoa Global Fdg 1 Mtn | Short-term investment | | | | | | US$ | 3,500 | | | | | | US$ | 3,500 |
-51-
Beginning Balance | Acquisition | Disposal | Ending Balance | |||||||||||||||||||||||||||||||||||||||||||||
Marketable | Carrying | Gain (Loss) | Amount | |||||||||||||||||||||||||||||||||||||||||||||
Securities | Financial | Amount | Amount | Amount | Value | on Disposal | (US$ in | |||||||||||||||||||||||||||||||||||||||||
Type and | Statement | Nature of | Shares/Units | (US$ in | Shares/Units | (US$ in | Shares/Units | (US$ in | (US$ in | (US$ in | Shares/Units | Thousand) | ||||||||||||||||||||||||||||||||||||
Company Name | Name | Account | Counter-party | Relationship | (Thousand) | Thousand) | (Thousand) | Thousand) | (Thousand) | Thousand) | Thousand) | Thousand) | (Thousand) | (Note 1) | ||||||||||||||||||||||||||||||||||
Pricoa Global Fdg 1 Mtn | Short-term investment | | | | US$ | 3,507 | | | | US$ | 3,510 | US$ | 3,507 | US$ | 3 | | US$ | | ||||||||||||||||||||||||||||||
Pricoa Global Fdg 1 Mtn | Short-term investment | | | | US$ | 3,050 | | | | US$ | 3,052 | US$ | 3,050 | US$ | 2 | | | |||||||||||||||||||||||||||||||
Principal Life Global Fdg I Gl. | Short-term investment | | | | US$ | 3,168 | | | | US$ | 3,049 | US$ | 3,168 | US$ | (119 | ) | | | ||||||||||||||||||||||||||||||
Salomon Smith Barney Hldgs Inc. | Short-term investment | | | | US$ | 3,160 | | | | US$ | 3,046 | US$ | 3,160 | US$ | (114 | ) | | | ||||||||||||||||||||||||||||||
Wachovia Corp. | Short-term investment | | | | US$ | 3,720 | | | | US$ | 3,568 | US$ | 3,720 | US$ | (152 | ) | | | ||||||||||||||||||||||||||||||
Washington Mut Fin Corp | Short-term investment | | | | US$ | 4,768 | | | | US$ | 3,590 | US$ | 3,725 | US$ | (135 | ) | | US$ | 1,043 | |||||||||||||||||||||||||||||
Agency bonds | ||||||||||||||||||||||||||||||||||||||||||||||||
Federal Farm Cr Bks | Short-term investment | | | | | | US$ | 3,985 | | | | | | US$ | 3,985 | |||||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | | | US$ | 7,887 | | | | | | US$ | 7,887 | |||||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | | | US$ | 3,379 | | | | | | US$ | 3,379 | |||||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | | | US$ | 9,134 | | | | | | US$ | 9,134 | |||||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | US$ | 7,962 | | | | US$ | 4,954 | US$ | 4,972 | US$ | (18 | ) | | US$ | 2,990 | |||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | US$ | 7,014 | | | | US$ | 6,884 | US$ | 7,014 | US$ | (130 | ) | | | ||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | US$ | 4,948 | | | | US$ | 4,947 | US$ | 4,948 | US$ | (1 | ) | | | ||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | | | US$ | 3,932 | | | | | | US$ | 3,932 | |||||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | US$ | 7,042 | | | | US$ | 6,946 | US$ | 7,042 | US$ | (96 | ) | | | ||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | | | US$ | 4,939 | | | | | | US$ | 4,939 | |||||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | US$ | 13,983 | | | | US$ | 13,865 | US$ | 13,983 | US$ | (118 | ) | | | ||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | | | US$ | 4,136 | | | | | | US$ | 4,136 | |||||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | | | US$ | 4,965 | | | | | | US$ | 4,965 | |||||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | | | US$ | 7,558 | | | | | | US$ | 7,558 | |||||||||||||||||||||||||||||||||
Federal Home Ln Bks | Short-term investment | | | | | | US$ | 8,594 | | | | | | US$ | 8,594 | |||||||||||||||||||||||||||||||||
Federal Home Ln Mtg Corp. | Short-term investment | | | | | | US$ | 5,389 | | | | | | US$ | 5,389 | |||||||||||||||||||||||||||||||||
Federal Home Ln Mtg Corp. | Short-term investment | | | | | | US$ | 6,925 | | US$ | 6,931 | US$ | 6,925 | US$ | 6 | | | |||||||||||||||||||||||||||||||
Federal Home Ln Mtg Corp. | Short-term investment | | | | US$ | 4,953 | | | | US$ | 4,938 | US$ | 4,953 | US$ | (15 | ) | | | ||||||||||||||||||||||||||||||
Federal Home Loan Corp. | Short-term investment | | | | | | US$ | 7,989 | | | | | | US$ | 7,989 | |||||||||||||||||||||||||||||||||
Federal Home Loan Mtg Corp. | Short-term investment | | | | US$ | 4,903 | | US$ | 9,819 | | US$ | 9,798 | US$ | 9,819 | US$ | (21 | ) | | US$ | 4,903 | ||||||||||||||||||||||||||||
Federal Natl Mtg Assn | Short-term investment | | | | | | US$ | 4,051 | | | | | | US$ | 4,051 | |||||||||||||||||||||||||||||||||
Fnma Pool 793025 | Short-term investment | | | | | | US$ | 3,915 | | US$ | 146 | US$ | 148 | US$ | (2 | ) | | US$ | 3,767 | |||||||||||||||||||||||||||||
Federal Natl Mtg Assn | Short-term investment | | | | | | US$ | 5,337 | | | | | | US$ | 5,337 | |||||||||||||||||||||||||||||||||
Federal Natl Mtg Assn | Short-term investment | | | | | | US$ | 4,430 | | | | | | US$ | 4,430 | |||||||||||||||||||||||||||||||||
Federal Natl Mtg Assn | Short-term investment | | | | | | US$ | 4,921 | | | | | | US$ | 4,921 | |||||||||||||||||||||||||||||||||
Federal Natl Mtg Assn | Short-term investment | | | | US$ | 6,940 | | | | US$ | 3,462 | US$ | 3,470 | US$ | (8 | ) | | US$ | 3,470 | |||||||||||||||||||||||||||||
Federal Natl Mtg Assn | Short-term investment | | | | US$ | 6,997 | | | | US$ | 6,956 | US$ | 6,997 | US$ | (41 | ) | | | ||||||||||||||||||||||||||||||
Federal Natl Mtg Assn | Short-term investment | | | | | | US$ | 4,061 | | | | | | US$ | 4,061 | |||||||||||||||||||||||||||||||||
Federal Natl Mtg Assn | Short-term investment | | | | | | US$ | 7,892 | | | | | | US$ | 7,892 | |||||||||||||||||||||||||||||||||
Federal Natl Mtg Assn | Short-term investment | | | | | | US$ | 4,943 | | | | | | US$ | 4,943 | |||||||||||||||||||||||||||||||||
Federal Natl Mtg Assn | Short-term investment | | | | | | US$ | 17,888 | | | | | | US$ | 17,888 | |||||||||||||||||||||||||||||||||
Federal Natl Mtg Assn | Short-term investment | | | | | | US$ | 14,952 | | | | | | US$ | 14,952 | |||||||||||||||||||||||||||||||||
Federal Natl Mtg Assn Mtn | Short-term investment | | | | | | US$ | 9,758 | | | | | | US$ | 9,758 | |||||||||||||||||||||||||||||||||
Freddie Mac | Short-term investment | | | | US$ | 4,929 | | | | US$ | 4,931 | US$ | 4,929 | US$ | 2 | | | |||||||||||||||||||||||||||||||
Corporate issued asset-backed | ||||||||||||||||||||||||||||||||||||||||||||||||
securities | ||||||||||||||||||||||||||||||||||||||||||||||||
American Express Cr Account Ma | Short-term investment | | | | US$ | 3,445 | | | | US$ | 3,428 | US$ | 3,445 | US$ | (17 | ) | | | ||||||||||||||||||||||||||||||
California Infr + Economic Dev | Short-term investment | | | | US$ | 4,298 | | | | US$ | 4,153 | US$ | 4,298 | US$ | (145 | ) | | | ||||||||||||||||||||||||||||||
California Infras + Economic | Short-term investment | | | | US$ | 6,126 | | | | US$ | 5,964 | US$ | 6,126 | US$ | (162 | ) | | | ||||||||||||||||||||||||||||||
Caterpillar Finl Asset Tr | Short-term investment | | | | | | US$ | 3,299 | | | | | | US$ | 3,299 | |||||||||||||||||||||||||||||||||
Cendant Rent Car Fdg Aesop LLC | Short-term investment | | | | | | US$ | 11,626 | | | | | | US$ | 11,626 | |||||||||||||||||||||||||||||||||
Citibank Cr Card Issuance Tr | Short-term investment | | | | US$ | 4,959 | | | | US$ | 4,948 | US$ | 4,959 | US$ | (11 | ) | | | ||||||||||||||||||||||||||||||
CWABS Inc. | Short-term investment | | | | US$ | 1,903 | | US$ | 1,865 | | US$ | 3,773 | US$ | 3,768 | US$ | 5 | | | ||||||||||||||||||||||||||||||
CWMBS Inc. | Short-term investment | | | | | | US$ | 4,040 | | US$ | 4,059 | US$ | 4,040 | US$ | 19 | | | |||||||||||||||||||||||||||||||
First USA Credit Cr Master Tr | Short-term investment | | | | US$ | 5,011 | | | | US$ | 5,007 | US$ | 5,011 | US$ | (4 | ) | | | ||||||||||||||||||||||||||||||
Honda Auto Receivables | Short-term investment | | | | US$ | 5,000 | | | | US$ | 4,984 | US$ | 5,000 | US$ | (16 | ) | | | ||||||||||||||||||||||||||||||
Hyundai Auto Receivables Tr | Short-term investment | | | | | | US$ | 3,250 | | | | | | US$ | 3,250 | |||||||||||||||||||||||||||||||||
Hyundai Auto Receivables Tr | Short-term investment | | | | | | US$ | 3,999 | | | | | | US$ | 3,999 | |||||||||||||||||||||||||||||||||
LB UBS Coml Mtg Tr | Short-term investment | | | | | | US$ | 4,243 | | US$ | 60 | US$ | 59 | US$ | 1 | | US$ | 4,184 |
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Beginning Balance | Acquisition | Disposal | Ending Balance | |||||||||||||||||||||||||||||||||||||||||||||
Marketable | Carrying | Gain (Loss) | Amount | |||||||||||||||||||||||||||||||||||||||||||||
Securities | Financial | Amount | Amount | Amount | Value | on Disposal | (US$ in | |||||||||||||||||||||||||||||||||||||||||
Type and | Statement | Nature of | Shares/Units | (US$ in | Shares/Units | (US$ in | Shares/Units | (US$ in | (US$ in | (US$ in | Shares/Units | Thousand) | ||||||||||||||||||||||||||||||||||||
Company Name | Name | Account | Counter-party | Relationship | (Thousand) | Thousand) | (Thousand) | Thousand) | (Thousand) | Thousand) | Thousand) | Thousand) | (Thousand) | (Note 1) | ||||||||||||||||||||||||||||||||||
Massachusetts Rrb Spl Purp Tr | Short-term investment | | | | US$ | | US$ | 3,900 | | | | | US$ | US$ | 3,900 | |||||||||||||||||||||||||||||||||
Mastr Asset Backed Secs Tr | Short-term investment | | | | | | US$ | 3,825 | | US$ | 1,145 | US$ | 1,145 | | | US$ | 2,680 | |||||||||||||||||||||||||||||||
Mastr Asset Backed Secs Tr | Short-term investment | | | | | | US$ | 3,499 | | | | | | US$ | 3,499 | |||||||||||||||||||||||||||||||||
Mbna Cr Card Master Nt Tr | Short-term investment | | | | | | US$ | 5,018 | | US$ | 5,015 | US$ | 5,018 | US$ | (3 | ) | | | ||||||||||||||||||||||||||||||
Mbna Master Cr Card Tr II | Short-term investment | | | | | | US$ | 8,108 | | | | | | US$ | 8,108 | |||||||||||||||||||||||||||||||||
Nissan Auto Receivables Own Tr | Short-term investment | | | | US$ | 4,999 | | | | US$ | 4,989 | US$ | 4,999 | US$ | (10 | ) | | | ||||||||||||||||||||||||||||||
Nissan Auto Receivables Owner | Short-term investment | | | | US$ | 4,853 | | | | US$ | 4,879 | US$ | 4,853 | US$ | 26 | | | |||||||||||||||||||||||||||||||
Pg+E Energy Recovery Fdg LLC | Short-term investment | | | | | | US$ | 4,749 | | | | | | US$ | 4,749 | |||||||||||||||||||||||||||||||||
Prime Cr Card Master Tr | Short-term investment | | | | | | US$ | 4,080 | | | | | | US$ | 4,080 | |||||||||||||||||||||||||||||||||
Residential Fdg Mtg Secs I Inc | Short-term investment | | | | | | US$ | 5,589 | | US$ | 113 | US$ | 114 | US$ | (1 | ) | | US$ | 5,475 | |||||||||||||||||||||||||||||
Revolving Home Equity Ln Tr | Short-term investment | | | | | | US$ | 5,000 | | US$ | 620 | US$ | 620 | | | US$ | 4,380 | |||||||||||||||||||||||||||||||
Sequoia Mtg Tr | Short-term investment | | | | | | US$ | 4,560 | | US$ | 4,560 | US$ | 4,560 | | | | ||||||||||||||||||||||||||||||||
Sequoia Mtg Tr | Short-term investment | | | | | | US$ | 3,500 | | | | | | US$ | 3,500 | |||||||||||||||||||||||||||||||||
TXU Elec Delivery Transition | Short-term investment | | | | US$ | 7,736 | | | | US$ | 4,185 | US$ | 4,206 | US$ | (21 | ) | | US$ | 3,530 | |||||||||||||||||||||||||||||
USAA Auto Owner Tr | Short-term investment | | | | | | US$ | 3,718 | | | | | | 3,718 | ||||||||||||||||||||||||||||||||||
USAA Auto Owner Tr | Short-term investment | | | | US$ | 4,000 | | | | US$ | 3,995 | US$ | 4,000 | US$ | (5 | ) | | | ||||||||||||||||||||||||||||||
Wells Fargo Finl Auto Owner Tr | Short-term investment | | | | | | US$ | 5,299 | | | | | | US$ | 5,299 | |||||||||||||||||||||||||||||||||
Whole Auto Ln Tr | Short-term investment | | | | US$ | 5,967 | | | | US$ | 5,973 | US$ | 5,967 | US$ | 6 | | |
-53-
Notes/Accounts Payable | ||||||||||||||||||||||||||||||
Transaction Details | Abnormal Transaction | or Receivable | ||||||||||||||||||||||||||||
Purchase/ | % to | % to | ||||||||||||||||||||||||||||
Company Name | Related Party | Nature of Relationship | Sale | Amount | Total | Payment Terms | Unit Price | Payment Terms | Ending Balance | Total | Note | |||||||||||||||||||
The Company
|
TSMC-North America | Subsidiary | Sales | $ | 64,760,945 | 56 | Net 30 days after invoice date | None | None | $ | 14,513,699 | 41 | ||||||||||||||||||
Philips and its affiliates | Major shareholder | Sales | 1,147,115 | 1 | Net 30 days after monthly closing | None | None | 467,843 | 1 | |||||||||||||||||||||
GUC | Subsidiary | Sales | 135,805 | | Net 30 days after monthly closing | None | None | 11,917 | | |||||||||||||||||||||
WaferTech | Subsidiary | Purchases | 5,117,622 | 31 | Net 30 days after monthly closing | None | None | (793,200 | ) | 10 | ||||||||||||||||||||
VIS | Investee accounted for using equity method |
Purchases | 2,168,998 | 13 | Net 30 days after monthly closing | None | None | (883,144 | ) | 11 | ||||||||||||||||||||
SSMC | Investee accounted for using equity method |
Purchases | 2,094,617 | 13 | Net 30 days after monthly closing | None | None | (284,080 | ) | 4 | ||||||||||||||||||||
TSMC-Shanghai | Subsidiary | Purchases | 234,333 | 1 | Net 30 days after monthly closing | None | None | (70,080 | ) | 1 |
-54-
Amounts Received | ||||||||||||||||||||||
Overdue | in Subsequent | Allowance for Bad | ||||||||||||||||||||
Company Name | Related Party | Nature of Relationship | Ending Balance | Turnover Rate | Amount | Action Taken | Period | Debts | ||||||||||||||
The Company
|
TSMC-North America | Subsidiary | $ | 14,929,349 | 43 days | $ | 3,909,354 | Accelerate demand on account receivables | $ | 5,259,367 | $ | |||||||||||
TSMC Technology | Indirect subsidiaries | 715,306 | Note | | | | | |||||||||||||||
Philips and its affiliates | Major shareholder | 467,843 | 83 days | | | 227,462 | | |||||||||||||||
TSMC-Shanghai | Subsidiary | 271,905 | Note | 268,998 | Accelerate demand on account receivables | | | |||||||||||||||
SSMC | Investee accounted for using equity method |
115,460 | Note | 5,092 | Accelerate demand on account receivables | | |
-55-
Original Investment Amount | Balance as of June 30, 2005 | Net Income | Investment | |||||||||||||||||||||||||||||||||||
Main Businesses | December 31, | Shares | Percentage of | Carrying | (Loss) of the | Gain (Loss) | ||||||||||||||||||||||||||||||||
Investor Company | Investee Company | Location | and Products | June 30, 2005 | 2004 | (Thousand) | Ownership | Value (Note 1) | Investee | (Note 2) | Note | |||||||||||||||||||||||||||
The Company
|
TSMC-North America | San Jose, California, U.S.A. | Sales and marketing of integrated circuits and semiconductor devices | $ | 333,718 | $ | 333,718 | 11,000 | 100 | $ | 794,692 | $ | 259,665 | $ | 231,366 | Subsidiary | ||||||||||||||||||||||
TSMC-Europe | Amsterdam, the Netherlands | Marketing activities | 15,749 | 15,749 | - | 100 | 22,491 | 143 | 143 | Subsidiary | ||||||||||||||||||||||||||||
TSMC-Japan | Yokohama, Japan | Marketing activities | 83,760 | 83,760 | 6 | 100 | 95,013 | 327 | 327 | Subsidiary | ||||||||||||||||||||||||||||
TSMC-Shanghai | Shanghai, China | Manufacturing and sales of integrated circuits at the order of and pursuant to product design specifications provided by customers | 12,180,367 | 9,187,962 | - | 100 | 9,967,851 | (1,068,676 | ) | (1,068,676 | ) | Subsidiary | ||||||||||||||||||||||||||
VIS | Hsin-Chu, Taiwan | Research, design, development, manufacture, packaging, testing and sale of memory integrated circuits, LSI, VLSI and related parts | 8,119,816 | 8,119,816 | 437,891 | 27 | 5,115,164 | 1,685,395 | 379,350 | Investee | ||||||||||||||||||||||||||||
TSMC International | Tortola, British Virgin Islands | Providing investment in companies involved in the design, manufacture, and other related business in the semiconductor industry | 31,445,780 | 31,445,780 | 987,968 | 100 | 23,057,382 | (495,885 | ) | (495,885 | ) | Subsidiary | ||||||||||||||||||||||||||
Chi Cherng | Taipei, Taiwan | Investment activities | 300,000 | 300,000 | - | 36 | 77,971 | 76,725 | (3,937 | ) | Investee | |||||||||||||||||||||||||||
Hsin Ruey | Taipei, Taiwan | Investment activities | 300,000 | 300,000 | - | 36 | 77,256 | 76,812 | (3,965 | ) | Investee | |||||||||||||||||||||||||||
TSMC Partners | Tortola, British Virgin Islands | Investment activities | 10,350 | 10,350 | 300 | 100 | 3,873,176 | 1,427 | 1,427 | Subsidiary | ||||||||||||||||||||||||||||
SSMC | Singapore | Fabrication and supply of integrated circuits | 6,408,190 | 6,408,190 | 382 | 32 | 3,514,280 | 761,550 | 243,696 | Investee | ||||||||||||||||||||||||||||
Emerging Alliance | Cayman Islands | Investing in new start-up technology companies |
1,526,074 | 1,447,957 | - | 99 | 820,765 | (73,428 | ) | (73,061 | ) | Subsidiary | ||||||||||||||||||||||||||
GUC | Hsin-Chu, Taiwan | Researching, developing, manufacturing, testing and marketing of integrated circuits | 409,920 | 409,920 | 40,149 | 46 | 403,208 | 21,350 | 13,215 | Investee | ||||||||||||||||||||||||||||
VisEra | Hsin-Chu, Taiwan | Manufacturing, material wholesaling and retailing of electronic spare parts | 51,000 | 51,000 | 5,100 | 25 | 62,668 | 17,915 | 3,552 | Investee | ||||||||||||||||||||||||||||
VTAF II | Cayman Islands | Investing in new start-up technology companies |
487,862 | 332,412 | - | 98 | 469,749 | (12,245 | ) | (13,570 | ) | Subsidiary |
-56-
Accumulated | Accumulated | |||||||||||||||||||||||||||||||||||
Outflow of | Outflow of | |||||||||||||||||||||||||||||||||||
Investment | Investment | |||||||||||||||||||||||||||||||||||
Total Amount | from Taiwan | from Taiwan | Accumulated | |||||||||||||||||||||||||||||||||
of Paid-in | as of | Investment Flows | as of | Inward | ||||||||||||||||||||||||||||||||
Capital | January 1, 2005 | Outflow | June 30, 2005 | Percentage of | Investment | Carrying Value | Remittance of | |||||||||||||||||||||||||||||
Main Businesses | (RMB in | Investment | (US$ in | (US$ in | (US$ in | Ownership in | Gain (Loss) | as of | Earnings as of | |||||||||||||||||||||||||||
Investee Company | and Products | Thousand) | Type | Thousand) | Thousand) | Inflow | Thousand) | Investment | (Note 2) | June 30, 2005 | June 30, 2005 | |||||||||||||||||||||||||
TSMC (Shanghai)
|
Manufacturing | $ | 12,180,367 | $ | 9,187,962 | $ | 2,992,405 | $ | 12,180,367 | |||||||||||||||||||||||||||
Company Limited
|
and sales of integrated circuits at the order of and pursuant to product design specifications provided by customers | (RMB3,070,623) | (Note 1) | (US$276,000 | ) | (US$95,000 | ) | $ | (US$371,000 | ) | 100 | % | $ | (1,068,676 | ) | $ | 9,967,851 | $ |
Accumulated | ||||||||
Investment in | ||||||||
Mainland China as | Investment Amounts Authorized by | |||||||
of June 30, 2005 | Investment Commission, MOEA | Upper Limit on Investment | ||||||
(US$ in Thousand) | (US$ in Thousand) | (US$ in Thousand) | ||||||
$12,180,367
|
$ | 12,180,367 | $ | 12,180,367 | ||||
(US$371,000)
|
(US$371,000 | ) | (US$371,000 | ) |
-57-
Intercompany Transactions | ||||||||||||||||
Percentage of | ||||||||||||||||
Nature of | Consolidated Total | |||||||||||||||
Relationship | Terms | Gross | ||||||||||||||
No. | Company Name | Counter Party | (Note 1) | Financial Statements Item | Amount | (Note 2) | Sales or Total Assets | |||||||||
0 | TSMC | TSMC-NA | 1 | Sales |
$ | 64,760,945 | | 55% | ||||||||
Receivables from related parties |
14,513,699 | | 3% | |||||||||||||
Other receivables from related parties |
415,650 | | | |||||||||||||
Payables to related parties |
51,082 | | | |||||||||||||
TSMC Shanghai | 1 | Sales |
5,251 | | | |||||||||||
Purchases |
234,333 | | | |||||||||||||
Non-operating income and gains |
75,743 | | | |||||||||||||
Proceeds from disposal of property, plant and equipment |
106,412 | | | |||||||||||||
Other receivables from related parties |
271,905 | | | |||||||||||||
Payables to related parties |
70,080 | | | |||||||||||||
Deferred gain on intercompany transactions |
708,941 | | | |||||||||||||
TSMC-Japan | 1 | Marketing expenses commission |
133,765 | | | |||||||||||
Payables to related parties |
43,693 | | | |||||||||||||
TSMC-Europe | 1 | Marketing expenses commission |
116,034 | | | |||||||||||
Payables to related parties |
9,722 | | | |||||||||||||
GUC | 1 | Sales |
135,805 | | | |||||||||||
General and administrative expenses rental expense |
8,162 | | | |||||||||||||
Receivables from related parties |
11,917 | | | |||||||||||||
VisEra | 1 | Non-operating income and gains |
10,752 | | | |||||||||||
Other receivables from related parties |
1,064 | | | |||||||||||||
TSMC Technology | 1 | Other receivables from related parties |
715,306 | | | |||||||||||
WaferTech | 1 | Purchases |
5,117,622 | | 4% | |||||||||||
Payables to related parties |
793,200 | | | |||||||||||||
1 | TSMC International | TSMC Development | 3 | Interest income |
14,264 | | | |||||||||
Other receivables |
1,942,052 | | | |||||||||||||
TSMC Technology | 3 | Deferred technical service income |
624,367 | | | |||||||||||
2 | TSMC - NA | VisEra | 3 | Sales |
319,742 | | | |||||||||
Receivables from related parties |
42,714 | | | |||||||||||||
3 | TSMC Partners | TSMC International | 3 | Other receivables |
9,703,506 | | 2% | |||||||||
Deferred revenue |
8,550,352 | | 2% | |||||||||||||
TSMC Development | 3 | Interest income |
18,822 | | | |||||||||||
Other receivables |
948,540 | | | |||||||||||||
4 | GUC | TSMC - NA | 3 | Purchases |
79,117 | | | |||||||||
Manufacturing overhead |
144,428 | | | |||||||||||||
GUC - NA | 3 | Operating expenses |
11,779 | | |
Note 1: | No. 1 represents the transactions from parent company to subsidiaries. No. 3 represents the transactions between subsidiaries. |
Note 2: | The terms of intercompany sales are not significantly different from those to third parties. For other intercompany transactions, prices are determined in accordance with the related contractual agreements. |
-58-