Edgar Filing: TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD

Taiwan Semiconductor Manufacturing Company Ltd.

Date: April 19, 2018

/s/ Lora Ho

Senior Vice President & Chief Financial Officer

Form 6-K

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 April 2018

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 ☒ 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 ☒

(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.

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TSMC Property © 2018 TSMC, Ltd Safe Harbor Notice 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 19, 2018 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.

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TSMC Property © 2018 TSMC, Ltd Statements of Comprehensive Income Selected Items from Statements of Comprehensive Income 1Q18(In NT$ billions unless otherwise noted)GuidanceNet Revenue (US$ billions)8.468.40-8.509.217.51-8.2%+12.7%Net Revenue248.08277.57233.91-10.6%+6.1%Gross Margin50.3%49.5% - 51.5%50.0%51.9%+0.3 ppt-1.6 pptsOperating Expenses(26.73)(28.84)(26.16)-7.3%+2.2%Operating Margin39.0%38.0% - 40.0%39.2%40.8%-0.2 ppt-1.8 pptsNon-Operating Items3.112.782.47+12.1%+26.2%Net Income to Shareholders of the Parent Company89.7999.2987.63-9.6%+2.5%Net Profit Margin36.2%35.8%37.5%+0.4 ppt-1.3 pptsEPS (NT Dollar)3.463.833.38-9.6%+2.5%ROE23.0%26.9%24.6%-3.9 ppts-1.6 pptsShipment (Kpcs, 12”-equiv. Wafer)2,6802,6992,473-0.7%+8.4%Average Exchange Rate--USD/NTD29.3329.6030.1331.16-2.7%-5.9%* Diluted weighted average outstanding shares were 25,930mn units in 1Q18.** ROE figures are annualized based on average equity attributable to shareholders of the parent company.1Q184Q171Q171Q18over4Q171Q18over1Q17

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TSMC Property 1Q18 Revenue by application consumer 7% industrial/Standard 23% computer 15% Communication 55% Communication Communication 0 Revenue (NT$B) 200 QoqQ -19 4Q17 1Q18 Computer 0 Revenue(NT$B) 200 QoQ+30% 4Q17 1Q18 Consumer 0 Revenue(NT$B) 200 QoQ+9% 4Q17 1Q18 Industrial/ Standard 0 revenue(NT$B) 200 QoQ-4% 4Q17 1Q18 2018 TSMC, Ltd Open Innovation Platform

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1Q18 Revenue by Technology 90nm 5% 0.11/0.13um 2% 0.15/0.18um 9% 0.25um and above 3% 65nm 9% 40/45nm 11% 28nm 20% 16/20nm 22% 10nm 19% 28nm and below revenue Revenue (NT$B) 200 150 100 50 0 1Q16 2Q16 3Q16 4Q16 1Q17 2q17 3Q17 4Q17 1Q18 28nm 16/20nm 10nm tsmc TSMC Property 2018 TSMC, Ltd Open Innovation Platfrom@

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TSMC Property © 2018 TSMC, Ltd Balance Sheets & Key Indices Selected Items from Balance Sheets(In NT$ billions)Amount%Amount%Amount%Cash & Marketable Securities684.3833.4%649.3632.6%659.3234.1%Accounts Receivable107.785.3%122.326.1%109.035.6%Inventories85.224.1%73.883.7%50.392.6%Long-term Investments34.381.7%41.572.1%44.522.3%Net PP&E1,055.37 51.5%1,062.54 53.4%1,037.36 53.6%Total Assets2,049.16 100.0%1,991.86100.0%1,934.66100.0%Current Liabilities342.2416.7%358.7118.0%321.5816.6%Long-term Interest-bearing Debts83.404.1%91.804.6%134.226.9%Total Liabilities442.5521.6%469.1023.6%478.3524.7%Total Shareholders’ Equity1,606.61 78.4%1,522.7676.4%1,456.3175.3%Key IndicesA/R Turnover DaysInventory Turnover DaysCurrent Ratio (x)Asset Productivity (x)* Total outstanding shares were 25,930mn units at 3/31/18.** Asset productivity = Annualized net revenue / Average net PP&E0.91.00.92.72.42.6631Q184Q171Q174240475244

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TSMC Property © 2018 TSMC, Ltd Cash Flows (1)Free cash flow = Cash from operating activities – Capital expenditures (1) (In NT$ billions)1Q184Q171Q17Beginning Balance553.39408.08541.25Cash from operating activities160.73204.13161.01Capital expenditures(71.85)(61.18)(102.51)Short-term loans (5.78)10.68(0.25)Investments and others(58.71)(8.32)(34.77)Ending Balance577.78553.39564.73Free Cash Flow88.88142.9558.50

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TSMC Property © 2018 TSMC, Ltd Revenue to be between US$ 7.80 billion and US$ 7.90 billion Based on our current business outlook, management expects: 2Q18 Guidance And, based on the exchange rate assumption of 1 US dollar to 29.20 NT dollars, management expects: Gross profit margin to be between 47% and 49% Operating profit margin to be between 35% and 37%

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TSMC Property © 2018 TSMC, Ltd Recap of Recent Major Events Please visit TSMC’s website (http://www.tsmc.com) and Market Observation Post System (http://mops.twse.com.tw) for details and other announcements TSMC Board of Directors Proposes NT$8 Cash Dividend per Share and Approves the Convening of the 2017 Annual Shareholders’ Meeting on June 5, 2018, at Which an Election for its Nine-Member Board of Directors Will Be Held ( 2018/02/13 ) TSMC Breaks Ground on Fab 18 in Southern Taiwan Science Park ( 2018/01/26 )

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