Summary of Cash Flow:
Cash generated from operating activities totaled NT$63.2 billion during 4Q08, up from NT$55.9 billion in 3Q08, mainly due to a sharp decline of non- cash working capital as a result of much lowered levels of production activities.
Net cash generated from investing activities was NT$18.0 billion in 4Q08, reflecting the capital expenditure of NT$11.3 billion and a net decrease of NT$30.3 billion in marketable financial instruments.
As a result, TSMC ended 4Q08 with a cash balance of NT$194.6 billion.
On a full year basis, cash generated from operating activities increased by NT$37.7 billion in 2008, meanwhile, capital expenditures and marketable financial instruments decreased by NT$24.8 billion and NT$27.7 billion, respectively. Cash dividends paid in 2008 were NT$76.8 billion. TSMC also spent NT$33.5 billion in share buybacks.
IV-2. Operating and Free Cash Flows:
Cash flows generated from operating activities were NT$63.2 billion during the quarter. Free cash flow, defined as the excess of operating cash flows over capital expenditures, totaled NT$52.0 billion in 4Q08, compared to NT$45.5 billion in 3Q08.
Total free cash flow generated in 2008 reached NT$162.3 billion, compared with NT$99.8 billion in 2007.
Please refer to the link for the index charts: www.tsmc.com/uploadfile/ir/quarterly/index_charts.pdf . V. CapEx & Capacity V-1. Capital Expenditures (In US millions) 1Q08 2Q08 3Q08 4Q08 2008 2007 TSMC 452 712 317 326 1,807 2,475 XinTec and GUC 13 5 3 2 23 47 TSMC Shanghai & WaferTech 18 11 11 12 52 31 Other TSMC Subsidiaries 1 0 1 2 4 4 Total TSMC 484 728 332 342 1,886 2,557
Capital Expenditures:
Capital expenditures for TSMC on a consolidated basis totaled US$342 million in 4Q08.
For year 2008, total capital expenditures for TSMC consolidated group was US$1.9 billion, compared with US$2.6 billion spent in 2007.
V-2. Capacity Fab / (Wafer size) 1Q08 2Q08 3Q08 4Q08 2008 1Q09 (A) (A) (A) (A) (A) (F) Fab-2 (6") Note 1 248 267 270 272 1,056 274 Fab-3 (8") 277 281 268 274 1,100 286 Fab-5 (8") 163 165 161 161 650 162 Fab-6 (8") 265 267 268 282 1,082 295 Fab-8 (8") 262 275 267 272 1,076 275 Fab-12 (12") Note 2 197 207 214 221 840 218 Fab-14 (12") Note 2 167 185 229 236 818 238 WaferTech (8") 105 105 106 106 420 106 TSMC (Shanghai) (8") 88 110 128 128 453 128 TSMC total capacity (8" equiv. Kpcs) 2,117 2,236 2,346 2,405 9,104 2,431 SSMC (8") 63 67 69 73 272 64 Total managed capacity (8" equiv. Kpcs) 2,180 2,303 2,416 2,478 9,377 2,495 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
Capacity:
Total TSMC managed capacity was 2,478K 8-inch equivalent wafers in the fourth quarter, 3% more than 3Q08. TSMC managed capacity in 1Q09 is expected to increase by 1% to reach 2,495K 8-inch equivalent wafers, mainly due to productivity improvement.
Total managed capacity in 2008 was 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 increased by 27%.
VI. Recap of Recent Important Events & Announcements -- TSMC Wins the Award of "Grand Prix for Best Overall Investor Relations at a Taiwanese Company - Large-Cap" by IR Magazine (2008/12/11) -- TSMC Chairman Dr. Morris Chang Receives Semiconductor Industry Association's Highest Honor "The 2008 Robert N. Noyce Award" (2008/11/18) -- TSMC Ramps 40nm Volume Production to Promote Innovation as Foundries Assume a Larger Role for $300 Billion Industry - Most Advanced Cellular, Wireless, and Consumer Electronic Innovations Targeted for Foundry's First 40 Nanometer (nm) Logic Process (2008/11/17) -- TSMC Recognizes Outstanding Suppliers at Supply Chain Management Forum (2008/11/14) -- TSMC Board Approves Cancellation of Treasury Shares to Reduce Total Issued Shares by 1.07 Percent (2008/11/11) -- TSMC Adds New High Voltage Features to Advanced 0.13-micron Processes Aimed at High Resolution Display Drivers (2008/11/05) -- TSMC Holds 2008 Green Forum on "Present and Future of Green Factories" to Launch Taiwan Corporate Sustainability Forum Series (2008/10/16) -- TSMC and MAPPER Take Next Step in Exploring Multiple E-beam Lithography for IC Manufacturing at 22 nanometer node and Beyond (2008/10/13) * Please visit TSMC's Web site ( www.tsmc.com ) for details about these and other announcements. TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES Consolidated Condensed Balance Sheets