1934 Act Registration No. 1-14700
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of January 2013
Taiwan Semiconductor Manufacturing Company Ltd.
(Translation of Registrant’s Name Into English)
No. 8, Li-Hsin Rd. 6,
Hsinchu Science Park,
Taiwan
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F x Form 40-F ¨
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ¨ No x
(If “Yes” is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82: .)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Taiwan Semiconductor Manufacturing Company Ltd. | ||||||
| Date: Jan.17, 2013 | By | /s/ Lora Ho | ||||
| Lora Ho | ||||||
| Senior Vice President & Chief Financial Officer | ||||||
2012 Fourth Quarter Earnings Conference
January 17, 2013
© 2013 TSMC, Ltd
Agenda TSMC Property
Welcome 4Q12 Financial Results and 1Q13 Outlook CEO Message Q&A
Elizabeth Sun Lora Ho Morris Chang Morris Chang / Lora Ho
© 2013 TSMC, Ltd
Safe Harbor Notice TSMC Property
TSMC’s statements of its current expectations are forward-looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements.
Information as to those factors that could cause actual results to vary can be found in TSMC’s Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (the “SEC”) on April 13, 2012 and such other documents as TSMC may file with, or submit to, the SEC from time to time.
Except as required by law, we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
© 2013 TSMC, Ltd
Income Statements TSMC Property
Selected Items from Income Statements 4Q12 4Q12 4Q12
4Q12 3Q12 4Q11 over over
Guidance
(In NT billions) 3Q12 4Q11
Net Sales 131.31 129 - 131 141.38 104.71 -7.1% 25.4%
Gross Margin 47.2% 45%-47% 48.8% 44.7% -1.6 ppts +2.5 ppts
Operating Expenses (15.69) (16.38) (13.84) -4.2% 13.4%
Operating Margin 35.2% 33%-35% 37.2% 31.4% -2.0 ppts +3.8 ppts
Non-Operating Items (0.01) 1.08 0.69 NM NM
Net Income 41.57 49.30 31.58 -15.7% 31.6%
Net Margin 31.7% 34.9% 30.2% -3.2 ppts +1.5 ppts
EPS (NT Dollar) 1.61 1.90 1.22 -15.6% 31.8%
ROE 23.8% 30.3% 20.6% -6.5 ppts +3.2 ppts
Shipment (Kpcs, 8”-equiv. Wafer) 3,565 3,860 2,917 -7.6% 22.2%
Average Exchange Rate - NTD/USD 29.15 29.86 30.27 -2.4% -3.7%
| ** |
Diluted weighted average outstanding shares were 25,928mn units in 4Q12 |
** ROE figures are annualized based on average equity attributable to shareholders of the parent
© 2013 TSMC, Ltd
4Q12 Revenue by Application TSMC Property
Communication 54% Computer 16%Consumer 7%
Industrial/Standard 23%
Communication Computer Consumer Industrial/Standard
70 Revenue (NT$B)
QoQ +2% 0 3Q12 4Q12
Revenue (NT$B)
70 0 3Q12 4Q12 QoQ -24%
70 Revenue (NT$B) 0 3Q12 4Q12 QoQ -21%
70 Revenue (NT$B) 0 3Q12 4Q12 QoQ -14%
© 2013 TSMC, Ltd
2012 Revenue by Application TSMC Property
Growth rate by application (YoY)
+42%
+23%
+3% +2%
Communication 50% Computer 19% Consumer 9% Industrial/Standard 22%
© 2013 TSMC, Ltd
4Q12 Revenue by Technology TSMC Property
0.25/0.35um 7%
0.5um+ 1%
0.11/0.13um 4% 28nm 22%
0.15/0.18um 17% 90nm 8% 65nm 19%
40/45nm 22%
65nm and below revenue
Revenue (NT$B)
90 80 70 60 50 40 30 20 10 0
70% 60% 50%
40% % of Sales
30% 20% 10% 0%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
28nm Rev (NT$B) 40nm Rev (NT$B) 65nm Rev (NT$B)
65nm and below combined as % of Sales
© 2013 TSMC, Ltd
Balance Sheets & Key Indices TSMC Property
Selected Items from Balance Sheets 4Q12 3Q12 4Q11
(In NT billions) Amount % Amount % Amount %
Cash & Marketable Securities 150.92 15.8% 147.75 16.8% 150.62 19.5%
Accounts Receivable—Trade 52.09 5.4% 58.41 6.6% 40.95 5.3%
Inventory 37.83 4.0% 33.25 3.8% 24.84 3.2%
Long-Term Investment 65.79 6.9% 28.64 3.3% 34.46 4.5%
Net PP&E 617.53 64.7% 580.08 66.0% 490.38 63.3%
Total Assets 955.04 100.0% 878.65 100.0% 774.27 100.0%
Current Liabilities 142.44 14.9% 119.05 13.5% 117.01 15.1%
Long-Term Interest-bearing Debt 82.11 8.6% 77.73 8.8% 20.46 2.6%
Total Liabilities 229.28 24.0% 201.51 22.9% 142.22 18.4%
Total Shareholders’ Equity 725.76 76.0% 677.15 77.1% 632.04 81.6%
Key Indices
A/R Turnover Days 39 37 38
Inventory Turnover Days 50 44 43
Current Ratio (x) 1.8 2.1 1.9
Asset Productivity (x) 0.9 1.1 0.9
* Total outstanding shares were 25,924mn units at 12/31/12
** Asset productivity = Annualized net sales / Average net fixed assets
© 2013 TSMC, Ltd
Cash Flows TSMC Property
(In NT billions) 4Q12 3Q12 4Q11
Beginning Balance 138.74 178.44 114.84
Cash from operating activities 85.41 76.63 72.84
Capital expenditures (59.77) (78.33) (29.77)
Cash dividends 0.00 (77.75) 0.00
Short-term loans 4.97 (1.02) (10.09)
Proceeds from issuance of bonds 4.40 40.60 0.00
Investments and others (30.34) 0.17 (4.35)
Ending Balance 143.41 138.74 143.47
Free Cash Flow(1) 25.64 (1.70) 43.07
| (1) |
Free cash flow = Cash from operating activities – Capital expenditures. |
© 2013 TSMC, Ltd
Capital Expenditures TSMC Property
(In US millions) 1Q12 2Q12 3Q12 4Q12 FY2012
TSMC 1,587 1,979 2,588 2,023 8,177
TSMC China & WaferTech 27 15 20 13 75
Other TSMC Subsidiaries 21 15 17 17 70
TSMC Consolidated 1,635 2,009 2,625 2,053 8,322
Note: 2012 CapEx was based on the weighted average exchange rate of NT$29.577 per US dollar.
© 2013 TSMC, Ltd
Installed Capacity TSMC Property
2012 Overall Capacity +14%; 12-inch Capacity +21%
2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13
FAB / (Wafer size) (A) (A) (A) (A) (A) (A) (F)
Fab-2 ( 6”) (1) 1,000 253 247 256 256 1,012 251
Fab-3 ( 8”) 1,184 298 300 304 306 1,208 281
Fab-5 ( 8”) 547 145 146 148 148 587 147
Fab-6 ( 8”) 1,128 298 296 298 298 1,191 299
Fab-8 ( 8”) 1,003 262 263 266 266 1,057 260
Fab-12 ( 12”) (2) 1,334 373 367 378 382 1,500 366
Fab-14 ( 12”) (2) 1,927 549 546 563 552 2,210 546
Fab-15 ( 12”) (2) 0 0 18 69 139 226 164
WaferTech ( 8”) 429 110 111 112 112 444 109
TSMC China ( 8”) 772 222 230 232 236 921 226
TSMC & Subsidiaries 12,963 3,553 3,579 3,776 3,925 14,833 3,883
(8” Equivalent Kpcs)
SSMC ( 8”) 258 64 64 65 65 258 61
Total TSMC-managed 13,221 3,616 3,643 3,841 3,990 15,091 3,944
(8” Equivalent Kpcs)
(1) Figures represent number of 6” wafers. Conversion to 8”-equivalent wafers is obtained by dividing this number by 1.78 (2) Figures represent number of 12” wafers. Conversion to 8”-equivalent wafers is obtained by multiplying this number by 2.25
© 2013 TSMC, Ltd
2012 Financial Highlights TSMC Property
2012 2011 YoY
(In NT billions)
Net Sales 506.25 427.08 18.5%
Gross Margin 48.1% 45.4% +2.7 ppts
Operating Margin 35.8% 33.1% +2.7 ppts
EPS (NT Dollar) 6.41 5.18 23.8%
Free Cash Flow 42.93 33.63 27.7%
Cash Dividends 77.75 77.73 0.0%
Cash & Marketable
Securities 150.92 150.62 0.2%
ROE 24.6% 22.3% +2.3 ppts
Achieved record sales and profits
Further extended leadership in advanced technology with the successful ramp of 28nm node
Continue gaining market segment share with technology leadership, manufacturing excellence, and customers’ trust
© 2013 TSMC, Ltd
TSMC Effective Tax Rate TSMC Property
2012 Effective Tax Rate 8.7%
AMT rate increase 2.0%
Higher un-appropriated R/E tax 1.7%
Lower tax exemption 0.9%
Subsidiaries 0.7%
2013 Effective Tax Rate 14.0%
© 2013 TSMC, Ltd
1Q13 Guidance TSMC Property
Based on our current business outlook and exchange rate assumption, management expects:
Revenue to be between NT$ 127 billion and NT$ 129 billion, at a forecast exchange rate of 28.90 NT dollars to 1 US dollar
Gross profit margin to be between 43.5 % and 45.5 %
Operating profit margin to be between 31.5 % and 33.5 %
© 2013 TSMC, Ltd
TSMC Investors Conference
January 17, 2013
I. 2012 Achievements
II. 2013 And 1Q’13
III. 28-nanometer Technology
IV. 20-nanometer Technology And 16 FinFET
V. 2013 Capex
Recap of Recent Major Events TSMC Property
TSMC Recognizes Outstanding Suppliers at Supply Chain Management Forum ( 2012/12/14 )
TSMC Shares Power Conservation Experience with Free Classes ( 2012/12/07 )
TSMC Board of Directors Approved the Issuance of No More Than NT$45 Billion (Approximately US$1.53 Billion) in Unsecured Corporate Bonds in Taiwan ( 2012/11/13 )
TSMC Opens Discussion on Corporate Social Responsibility with Volunteer Sharing Day
( 2012/11/02 )
Please visit TSMC’s Web site (http://www.tsmc.com) and Market Observation Post System (http://mops.twse.com.tw ) for details and other announcements
© 2013 TSMC, Ltd
http://www.tsmc.com invest@tsmc.com TSMC Property
© 2013 TSMC, Ltd