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 Copy to:
Service)
The Taiwan Fund, Inc. Leonard B. Mackey, Jr., Esq.
c/o State Street Bank and Trust Clifford Chance U.S. LLP
Company 31 West 52nd Street
Attention: Mary Moran Zeven, New York, New York 10019
Assistant Secretary
225 Franklin Street
Boston, MA 02110
Registrant's telephone number, including area code: (800) 636-9242
Date of fiscal year end: August 31, 2004
Date of reporting period: May 31, 2005
ITEM 1: SCHEDULE OF INVESTMENTS
THE TAIWAN FUND, INC.
INVESTMENTS/MAY 31, 2005 (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN
SECURITIES) (UNAUDITED)
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US$
VALUE
SHARES (NOTE C)
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COMMON STOCKS - 95.7%
BASIC INDUSTRIES - 11.1%
IRON & STEEL - 3.7%
China Steel Corp. .......................... 9,200,000 $ 9,028,864
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PLASTICS - 7.4%
Formosa Chemicals & Fibre Corp. ............ 3,000,000 5,474,663
Formosa Plastic Corp. ...................... 4,218,000 7,223,900
Nan Ya Plastics Corp. ...................... 3,776,000 5,201,386
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17,899,949
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TOTAL BASIC INDUSTRIES ..................... 26,928,813
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FINANCE - 12.2%
FINANCIAL SERVICES - 12.2%
Cathay Financial Holding Co.
Ltd. ..................................... 5,000,000 9,621,552
Chinatrust Financial Holding Co.
Ltd. ..................................... 8,476,000 9,609,577
E. Sun Financial Holding Co.
Ltd. ..................................... 10,000,000 8,178,320
Polaris Securities Co. Ltd. ................ 5,000,000 2,341,244
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29,750,693
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TOTAL FINANCE .............................. 29,750,693
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TECHNOLOGY - 70.2%
ELECTRONICS - 8.4%
Career Technology (MFG.) Co.
Ltd. ..................................... 3,500,000 4,860,487
Compal Communications Inc. ................. 1,800,000 4,947,402
Kinsus Interconnect Technology
Corp. .................................... 3,000,000 6,494,548
Powertech Technology Inc. .................. 1,300,000 4,161,001
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20,463,438
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PC & PERIPHERALS - 13.5%
Asustek Computer, Inc. ..................... 5,000,000 13,887,107
Foxconn Technology Co. Ltd. ................ 1,400,000 5,320,719
Hon Hai Precision Industry Co.
Ltd. ..................................... 2,596,000 13,696,023
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32,903,849
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TELECOMMUNICATIONS - 10.2%
Chunghwa Telecom Co. Ltd. .................. 3,100,000 6,144,323
Gemtek Technology Corp. .................... 2,000,000 3,938,422
Taiwan Mobile Co. Ltd. ..................... 5,600,000 5,639,513
Zyxel Communications Corp. ................. 3,600,000 9,155,869
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24,878,127
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IC DESIGN - 10.9%
Greatek Electronics Inc. ................... 2,600,000 2,576,652
Media Tek, Inc. ............................ 1,800,000 15,644,644
RichTek Technology Corp. ................... 1,800,000 6,061,578
Sunplus Technology Co. Ltd. ................ 1,500,000 2,097,498
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26,380,372
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SEMICONDUCTOR MANUFACTURING - 13.3%
Powerchip Semiconductor Corp. .............. 14,368,341 9,815,448
Taiwan Semiconductor
Manufacturing Co. ........................ 8,200,000 14,964,080
United Microelectronics Corp.
Ltd. ..................................... 11,238,000 7,640,975
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32,420,503
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ELECTRONIC COMPONENTS - 13.9%
Asia Optical Co., Inc. ..................... 300,000 2,049,390
Au Optronics Corp. ......................... 5,700,000 9,506,094
Cheng Uei Precision Industry Co.
Ltd. ..................................... 3,000,000 8,380,372
Merry Electronics Co. Ltd. ................. 3,000,000 7,148,813
Tripod Technology Corp. .................... 3,800,000 6,739,577
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33,824,246
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TOTAL TECHNOLOGY ........................... 170,870,535
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TRANSPORTATION - 2.2%
TRANSPORTATION - 2.2%
Yang Ming Marine Transport ................. 6,000,000 5,320,718
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TOTAL COMMON STOCKS
(Identified Cost -- $167,758,814) ........ 232,870,759
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PRINCIPAL
AMOUNT
NT$
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CERTIFICATE OF DEPOSIT - 0.3%
Taishin International Bank
1.10%, 6/30/05 (b) ....................... 20,129,576 645,593
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COMMERCIAL PAPER - 4.0%
Allied Material Technology Corp.
1.20%, 7/27/05 (b) ....................... 34,906,865 1,119,527
Bank Sinopac:
1.20%, 8/12/05 (b) ....................... 100,021,498 3,207,873
1.20%, 11/11/05 (b) ...................... 40,039,294 1,284,134
1.20%, 11/17/05 (b) ...................... 10,008,251 320,983
Chang Chun Petro Chemical Co.:
1.20%, 6/06/05 (b) ....................... 10,989,587 352,456
1.20%, 7/04/05 (b) ....................... 8,984,628 288,154
1.20%, 7/05/05 (b) ....................... 6,991,424 224,228
1.20%, 9/05/05 (b) ....................... 6,976,376 223,745
Grand Bills Finance Corp:
1.20%, 6/06/05 (b) ....................... 10,989,587 352,456
1.20%, 7/04/05 (b) ....................... 8,984,628 288,154
1.20%, 7/05/05 (b) ....................... 6,991,424 224,228
1.20%, 9/05/05 (b) ....................... 6,976,376 223,745
Les Enphants Co Ltd 1.20%,
7/11/05 (b) .............................. 49,848,794 1,598,743
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TOTAL COMMERCIAL PAPER
(Identified Cost -- $9,658,272)........... 9,708,426
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MATURITY
AMOUNT
US$
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REPURCHASE AGREEMENT - 0.0%**
State Street Bank & Trust Co. at
0.90% dated 5/31/05, due 6/6/05
(collateralized by U.S. Treasury
Note 2.625%, 5/15/08, market
value $116,649) .......................... $ 113,017 $ 113,000
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TOTAL INVESTMENTS -- 100%
(COST -- $178,164,088*)................... $243,337,778
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See Notes to Schedule of Investments
Page 1
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.
(d) In connection with transactions in repurchase agreements, it is the
Fund's policy that its custodian take possession of the underlying
collateral securities, the fair value of which exceeds the principal
amount of the repurchase transaction, including accrued interest, at
all times. If the seller defaults, and the fair value of the collateral
declines, realization of the collateral by the Fund may be delayed or
limited by legal proceedings.
* At May 31, 2005, aggregate gross unrealized appreciation for all
securities for which there was an excess of value over financial
reporting cost was $66,617,861 and aggregate gross unrealized
depreciation for all securities for which there was an excess of
financial reporting cost over value was $1,444,171 and net appreciation
for financial reporting purposes was $65,173,690. At May 31, 2005,
aggregate cost for financial reporting purposes was $178,164,088.
** Amount represents less than 0.1% of Total Investments.
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
Benny T. Hu
President of The Taiwan Fund, Inc.
Date: July 14, 2005
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
Adelina Louie
Treasurer of The Taiwan Fund, Inc.
Date: July 14, 2005
By: /s/ Benny T. Hu
Benny T. Hu
President of The Taiwan Fund, Inc.
Date: July 14, 2005
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.