UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number: 811-4893
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THE TAIWAN FUND, INC.
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(Exact name of registrant as specified in charter)
225 FRANKLIN STREET
BOSTON, MA 02110
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(Address of principal executive offices)(Zip code)
(Name and Address of Agent for Service) Copy to:
The Taiwan Fund, Inc. Leonard B. Mackey, Jr., Esq.
c/o State Street Bank and Trust Company Clifford Chance U.S. LLP
Attention: Mary Moran Zeven, 31 West 52nd Street
Assistant Secretary New York, New York 10019
225 Franklin Street
Boston, MA 02110
Registrant's telephone number, including area code: (800) 636-9242
Date of fiscal year end: August 31, 2005
Date of reporting period: November 30, 2005
ITEM 1: SCHEDULE OF INVESTMENTS
THE TAIWAN FUND, INC.
Investments/November 30, 2005 (Showing Percentage of Total Value of Investment
in Securities) (unaudited)
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US$
VALUE
SHARES (NOTE C)
--------------- ---------------
COMMON STOCKS -- 95.0%
BASIC INDUSTRIES -- 9.6%
IRON & STEEL -- 4.9%
China Steel Corp. 16,460,000 $ 12,327,013
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PETROLEUM SERVICES -- 2.8%
Formosa Petrochemical Corp. 3,800,000 6,916,203
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PLASTICS -- 1.9%
Nan Ya Plastics Corp. 4,002,000 4,818,090
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TOTAL BASIC INDUSTRIES 24,061,306
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FINANCE -- 6.9%
FINANCIAL SERVICES -- 6.9%
Cathay Financial Holding Co. Ltd. 5,000,000 9,055,511
Chinatrust Financial Holding Co. Ltd. 10,166,972 8,175,319
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TOTAL FINANCE 17,230,830
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TECHNOLOGY -- 77.0%
ELECTRONIC COMPONENTS -- 11.9%
Catcher Technology Co Ltd 500,000 3,535,678
Kinsus Interconnect Technology Corp. 3,450,000 8,543,808
Phoenix Precision Technology Corp. (a) 2,000,000 3,198,520
Silitech Technology Corp. 1,000,000 3,878,802
Tripod Technology Corp. 4,560,000 10,626,009
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29,782,817
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ELECTRONICS -- 8.7%
Asia Optical Co In Twd10 879,000 5,389,581
Cheng Uei Precision Industry Co. Ltd. 3,300,000 11,027,734
Merry Electronics Co. Ltd. 2,400,000 5,377,810
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21,795,125
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IC DESIGN -- 11.4%
CHIPBOND Technology Corp. 2,000,000 3,109,009
MediaTek, Inc. 1,980,000 20,706,539
RichTek Technology Corp. 1,470,000 4,649,192
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28,464,740
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MEMORY IC -- 3.2%
Powerchip Semiconductor Corp. 14,368,000 7,930,898
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PC & PERIPHERALS -- 17.8%
Asustek Computer, Inc. 4,100,000 11,621,488
Foxconn Technology Co. Ltd. 1,540,000 7,168,027
Hon Hai Precision Industry Co. Ltd. (a) 3,104,222 15,699,173
Simplo Technology Co. Ltd. 2,855,000 6,618,833
Waffer Technology Co. Ltd. 3,686,000 3,497,331
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44,604,852
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SEMICONDUCTOR MANUFACTURING -- 12.7%
Novatek Microelectronics Corp. Ltd. 1,300,000 7,078,814
Powertech Technology Inc. 1,795,000 5,270,039
Siliconware Precision Industries Co. (a) 7,000,000 7,424,923
US$
VALUE
SHARES (NOTE C)
--------------- ---------------
Taiwan Semiconductor Manufacturing Co. 6,800,976 $ 12,073,759
United Microelectronics Corp. Ltd. 683 381
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31,847,916
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TELECOMMUNICATIONS -- 4.3%
Chunghwa Telecom Co. Ltd. 3,600,000 6,122,540
Zyxel Communications Corp. 2,500,000 4,527,756
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10,650,296
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TFT-LCD -- 7.0%
Au Optronics Corp. 6,213,000 8,898,092
Chi Mei Optoelectronics Corp. 3,000,000 3,647,566
Radiant Opto-Electronics Corp. 1,962,000 4,882,243
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17,427,901
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TOTAL TECHNOLOGY 192,504,545
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TRANSPORTATION -- 1.5%
TRANSPORTATION -- 1.5%
Yang Ming Marine Transport 6,000,000 3,768,406
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TOTAL COMMON STOCKS
(Identified Cost -- $176,594,006) 237,565,087
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PRINCIPAL
AMOUNT
NT$
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CERTIFICATE OF DEPOSIT -- 1.2%
Taishin International Bank (b) 99,789,305 2,977,407
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COMMERCIAL PAPER -- 3.8%
Bai Ding Investment(b)
1.36%, 12/21/05 10,000,000 298,118
Cathay United Commercial Bank(b)
1.35%, 12/09/05 47,897,021 1,429,101
China Airlines(b)
1.41%, 03/24/06 99,300,108 2,962,812
China Bills Finance Corp.(b)
1.31%, 12/02/05 9,981,078 297,805
China Develop Bank Chiau Branch(b)
1.40%, 02/23/06 10,000,000 297,373
China Trust Commercial Bank(b)
1.35%, 12/16/05 19,979,395 596,124
E Sun(b)
1.36%, 01/12/06 10,000,000 299,706
E. Sun Bank(b)
1.37%, 09/01/06 50,202,143 1,497,878
Far Eastern International Bank(b)
1.36%, 01/12/06 10,000,000 299,683
Grand Bills Finance Corp.
1.3200%, 12/08/2005(b) 24,975,425 745,190
See Notes to Schedule of Investments.
1
INVESTMENTS/November 30, 2005 (unaudited) (continued)
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PRINCIPAL
AMOUNT
NT$
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1.3500%, 03/24/2006(b) $ 24,864,505 $ 741,881
TOTAL COMMERCIAL PAPER
(Identified Cost -- $9,488,645) 9,465,671
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TOTAL INVESTMENTS -- 100.0%
(Cost -- $189,072,548*) $ 250,008,165
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See Notes to Schedule of Investments.
2
NOTES TO SCHEDULE OF INVESTMENTS
(a) Non-income producing
(b) Certificates of Deposit and Commercial Paper that are traded through
Bills Finance Corporations must be guaranteed by either a bank, a
trust company or a Bills Finance Corporation. Since there is no
recognized credit rating system in the Republic of China, the
guarantee may not be comparable to a guarantee issued by a U.S.
institution.
(c) All securities, including those traded over-the-counter for which
market quotations are readily available, are valued at the last
sales price prior to the time of determination of the Fund's net
asset value per share or, if there were no sales on such date, at
the closing price quoted for such securities (but if bid and asked
quotations are available, at the mean between the last current bid
and asked prices, rather than such quoted closing price). In certain
instances where the price determined above may not represent fair
market value, the value is determined in such manner as the Board of
Directors may prescribe. Short-term investments, having a maturity
of 60 days or less, are valued at amortized cost, which approximates
market value, with accrued interest or discount earned included in
interest receivable.
* At November 30, 2005, aggregate gross unrealized appreciation for
all securities for which there was an excess of value over financial
reporting cost was $66,464,544 and aggregate gross unrealized
depreciation for all securities for which there was an excess of
financial reporting cost over value was $5,528,926 and net
appreciation for financial reporting purposes was $60,935,618. At
November 30, 2005, aggregate cost for financial reporting purposes
was $189,072,548.
ITEM 2. CONTROLS AND PROCEDURES
(a) The registrant's principal executive and principal financial officers
have concluded that the registrant's disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act of 1940,
as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of
a date within 90 days of the filing date of this Form N-Q that includes
the disclosure required by this paragraph based on their evaluation of
the controls and procedures required by Rule 30a-3(b) under the 1940
Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's last fiscal
quarter that have materially affected, or are reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 3. EXHIBITS
The certification required by Rule 30a-2(a) of the Investment Company Act of
1940 (17 CFR 270.30a-2(a)), as amended, is attached as an exhibit to this
filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
THE TAIWAN FUND, INC.
By: /s/ Benny T. Hu
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Benny T. Hu
President of The Taiwan Fund, Inc.
Date: January 27, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Adelina Louie
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Adelina Louie
Treasurer of The Taiwan Fund, Inc.
Date: January 19, 2006
By: /s/ Benny T. Hu
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Benny T. Hu
President of The Taiwan Fund, Inc.
Date: January 27, 2006