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 2006

Taiwan Semiconductor Manufacturing Company Ltd.

(Translation of Registrant’s Name Into English)

No. 8, Li-Hsin Rd. 6,
Science-Based Industrial Park,
Hsin-Chu, 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 þ    Form 40-F o

     (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 o    No þ

(If “Yes” is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82: ___.)

 

 

TSMC Reports 17% Sequential Increase in

Fourth Quarter Revenue with EPS of NT$1.37

Hsin-Chu, Taiwan, R.O.C., January 26, 2006 — TSMC today announced revenue of NT$81.16 billion, net income of NT$33.9 billion, and fully diluted earnings per share of NT$1.37 per share (US$0.21 per ADS unit) for the fourth quarter ended December 31, 2005.

On a sequential basis, fourth quarter results represent a 17.2% increase in revenue, and a 38.4% increase in both net income and fully diluted EPS. Year-over-year, fourth quarter revenue increased 27.1% while net income and fully diluted EPS both increased 52.8%. All figures were prepared in accordance with R.O.C. GAAP on an unconsolidated basis.

As a result of stronger than expected demand across all major product segments, fourth quarter revenue surpassed guidance. Gross margin for the fourth quarter climbed 5 percentage points to 49.1%, due to higher levels of capacity utilization and more favorable currency exchange rates. Advanced process technologies (0.13-micron and below) accounted for 49% of wafer revenues while revenues from 90-nanometer process technology alone reached 17% of the total wafer sales. Overall utilization was 104%. Operating margin jumped from 36% in third quarter to 42.2% in fourth quarter, and net margin improved to 41.8% from 35.4% quarter over quarter.

“Due primarily to continued robust demand from our customers, our fourth quarter business exceeded our previous guidance,” said Lora Ho, VP and Chief Financial Officer of TSMC. “Meanwhile, we expect our operating performance for the coming quarter to be better than the average seasonal pattern, but an anticipated depreciation of the US dollar against the NT dollar will impact our revenue by more than 4 percent,” said Ho. “Based on our current business and foreign exchange rate expectations, management’s expectations for first quarter 2006 performance are as follows”:

	•		Revenue to be between NT$73 billion and NT$76 billion;
	•		Gross profit margin to be between 46% and 48%;
	•		Operating profit margin to be approximately 39%.

     Ho said management also expects that 2006 capital expenditure will be in the range of US$2.6 billion to US$2.8 billion.

TSMC’s 2005 fourth quarter results :

(Unit: NT$ million, except for EPS)

				4Q05					4Q04					YoY					3Q05					QoQ
				Amount*					Amount					Inc.(Dec.)%					Amount					Inc.(Dec.)%
	Net sales				81,161					63,875					27.1					69,258					17.2
	Gross profit				39,865					27,153					46.8					30,525					30.6
	Income from operations				34,224					21,028					62.8					24,930					37.3
	Income before tax				35,401					22,094					60.2					24,420					45.0
	Net income				33,900					22,184					52.8					24,488					38.4
	EPS(NT$)				1.37	**				0.90	***				52.7					0.99	****				38.4

* 2005 fourth quarter figures have not been approved by Board of Directors

** Based on 24,693 million weighted average outstanding shares

*** Based on 24,724 million weighted average outstanding shares

**** Based on 24,690 million weighted average outstanding shares

TSMC’s 2005 results :

(Unit: NT$ million, except for EPS)

				2005					2004					YoY
				Amount*					Amount					Inc. (Dec.)%
	Net sales				264,588					255,992					3.4
	Gross profit				115,244					110,161					4.6
	Income from operations				93,014					86,823					7.1
	Income before tax				93,819					91,779					2.2
	Net income				93,575					92,316					1.4
	EPS(NT$)				3.79	**				3.73	***				1.5

* 2005 figures have not been approved by Board of Directors

** Based on 24,693 million weighted average outstanding shares

*** Based on 24,724 million weighted average outstanding shares

TSMC Spokesperson:

Ms. Lora Ho
Vice President and CFO
Tel: 886-3-566-4602

TSMC Acting Spokesperson:

Mr. J.H. Tzeng
PR Department Manager, TSMC
Tel: 886-3-666-5028
Mobile: 0928-882607
Fax: 886-3-567-0121
E-Mail: jhtzeng@tsmc.com

For further information, please contact:

Richard C.Y. Chung
Media Relations Manager, TSMC
Tel: 886-3-666-5038
Mobile: 886-911-258751
Fax: 886-3-567-0121
E-Mail: cychung@tsmc.com

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.

Date: January 26, 2006