Debt Service:
Net cash reserves -- defined as the excess of cash and short-term marketable securities over interest-bearing debt -- increased by NT$13.7 billion to NT$201.1 billion at the end of 2Q08.
III -- 3. Debt Service
(In NT billions) 2Q08 1Q08 2Q07
Cash & Marketable Securities 224.0 210.3 233.1
Interest-Bearing Debt 22.9 22.9 26.3
Net Cash Reserves 201.1 187.4 206.8
Cash Flow
Summary of Cash Flow:
Cash generated from operating activities totaled NT$45.0 billion during the quarter, down from NT$57.3 billion in 1Q08, mainly due to tax payment of NT$10.0 billion and inventory increase of NT$1.5 billion.
Net cash generated in investing activities was NT$3.6 billion in 2Q08, reflecting capital expenditure of NT$22.3 billion and a net increase of NT$27.2 billion in marketable financial instruments.
Net cash used in financing activities was NT$6.8 billion during the quarter, as we spent NT$6.6 billion in share buyback.
As a result, TSMC ended the quarter with a cash balance of NT$185.3 billion.
IV -- 1. Cash Flow Analysis
(In NT billions) 2Q08 1Q08 2Q07
Net Income 28.8 28.1 25.5
Depreciation & Amortization 20.0 19.8 19.6
Other Operating Sources/(Uses) (3.8) 9.4 (10.4)
Total Operating Sources/(Uses) 45.0 57.3 34.7
Capital Expenditure (22.3) (15.3) (25.3)
Marketable Financial Instruments 27.2 12.9 15.8
Other Investing Sources/(Uses) (1.3) (0.7) (0.7)
Net Investing Sources/(Uses) 3.6 (3.1) (10.2)
Purchase of Treasury Stock (6.6) (3.1) 0.0
Other Financing Sources/(Uses) (0.2) (0.2) (0.5)
Net Financing Sources/(Uses) (6.8) (3.3) (0.5)
Net Cash Position Changes 41.8 50.9 24.0
Exchange Rate Changes & Others (0.8) (1.6) (0.9)
Ending Cash Balance 185.3 144.3 163.4
Operating and Free Cash Flows:
Cash flows generated from operating activities were NT$45.0 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, totaled NT$22.8 billion in 2Q08, compared to NT$42.0 billion in 1Q08.
Please refer to the link for the index charts:
http://www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf
V. CapEx & Capacity
Capital Expenditures:
Capital expenditures for TSMC on a consolidated basis totaled US$728 million during the quarter.
In the first half of 2008, total capital expenditure reached US$1.2 billion.
V -- 1. Capital Expenditures
(In US millions) 1Q08 2Q08 YTD
TSMC 452 712 1,164
XinTec and GUC 13 5 18
TSMC Shanghai & WaferTech 18 11 29
Other TSMC Subsidiaries 1 0 1
Total TSMC 484 728 1,212
Capacity:
Total TSMC managed capacity was 2,303K 8-inch equivalent wafers in the second quarter, 6% more than 1Q08. TSMC managed capacity in 3Q08 will increase by 5% to reach 2,416K 8-inch equivalent wafers.
Total managed capacity for 2008 is expected to reach 9,377K 8-inch equivalent wafers, representing an increase of 13% from 8,290K 8-inch equivalent wafers in 2007, while capacity for 12-inch wafer fabs will increase by 27%.
V--2. Capacity
1Q08 2Q08 3Q08 4Q08 2008
Fab / (Wafer size) (A) (A) (F) (F) (F)
Fab-2 (6")(Note 1) 248 267 270 272 1,056
Fab-3 (8") 277 281 268 274 1,100
Fab-5 (8") 163 165 161 161 650
Fab-6 (8") 265 267 268 282 1,082
Fab-8 (8") 262 275 267 272 1,076
Fab-12 (12")(Note 2) 197 207 214 221 840
Fab-14 (12")(Note 2) 167 185 229 236 818
WaferTech (8") 105 105 106 106 420
TSMC (Shanghai) (8") 88 110 128 128 453
TSMC total capacity
(8 equiv. Kpcs) 2,117 2,236 2,346 2,405 9,104
SSMC (8") 63 67 69 73 272
Total managed capacity
(8 equiv. Kpcs) 2,180 2,303 2,416 2,478 9,377
Note: 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
VI. Recap of Recent Important Events & Announcements
-- TSMC Wins Corporate Governance Asia Annual Recognition Award 2008
(2008/06/26)
-- TSMC Shareholders Approve NT$3.0 Cash and 0.5% Stock Dividend
(2008/06/13)
-- TSMC Unified DFM Architecture Promises Improved Yields and
Accelerated Time-to-Market (2008/06/09)
-- New TSMC Reference Flow 9.0 Supports 40nm Process Technology
(2008/06/03)
-- TSMC Board Approves Plan to Buy Back and Cancel Shares up to US$1
billion (2008/05/13)
-- TSMC Board Approves Capital Appropriation of US$995 Million to
Expand Fab 12 and Increase Its Advanced Process Capacity (2008/05/13)
-- Intel, Samsung Electronics, TSMC Reach Agreement For 450mm Wafer
Manufacturing Transition (2008/05/06)
-- TSMC Unveils New 40/65-Nanometer SPICE Tool Qualification Program
(2008/04/22)
-- TSMC and NTHU Celebrate Opening of College of Technology Management
TSMC Building (2008/04/18)
-- TSMC Announces Power Trim Service for Advanced Chip Leakage Power
Reduction (2008/04/15)
