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.
(Exact name of registrant as specified in charter)
2 AVENUE DE LAFAYETTE
BOSTON, MA 02111
(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 US LLP
Attention: Mary Moran Zeven, Assistant 31 West 52nd Street
Secretary New York, New York 10019
2 Avenue De Lafayette
P.O. Box 5049
Boston, MA 02206-5049
Registrant's telephone number, including area code: (800) 636-9242
Date of fiscal year end: August 31, 2008
Date of reporting period: November 30, 2007
ITEM 1: SCHEDULE OF INVESTMENTS
THE TAIWAN FUND, INC.
Investments/November 30, 2007 (Showing Percentage of Total Value of Investment
in Securities) (unaudited)
US$
VALUE
SHARES (NOTE c)
------------ ------------
COMMON STOCKS - 95.5%
BASIC INDUSTRIES -- 19.4%
CONSTRUCTION -- 3.2%
Goldsun Development &
Construction Co. Ltd. 9,609,130 $ 4,765,547
Ruentex Development Co. Ltd. 8,500,000 6,955,552
------------
11,721,099
------------
FOOD -- 1.2%
Uni-President Enterprises Corp. 3,500,000 4,529,322
------------
GLASS -- 1.9%
Taiwan Glass Industrial Corp. 6,800,000 7,071,477
------------
IRON & STEEL -- 3.2%
China Steel Corp. 7,000,000 9,221,375
Tung Ho Steel Enterprise Corp. 1,800,000 2,705,970
------------
11,927,345
------------
PAPER -- 0.7%
Long Chen Paper Co. Ltd. 6,310,162 2,435,110
------------
PETROLEUM SERVICES -- 1.2%
Formosa Petrochemical Corp. 1,600,000 4,542,806
------------
PLASTICS -- 1.6%
Nan Ya Plastics Corp. 2,266,000 5,885,897
------------
RETAIL -- 2.1%
Far Eastern Department Stores Co Ltd. 6,500,000 7,736,656
------------
TEXTILE -- 2.1%
Far Eastern Textile Co Ltd. 5,145,500 6,212,176
Ruentex Industries Ltd 2,000,000 1,568,409
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7,780,585
------------
TRANSPORTATION -- 2.2%
EVA Airways Corp. (a) 7,000,000 2,798,958
U-Ming Marine Transport Corp. 2,001,000 5,358,825
------------
8,157,783
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TOTAL BASIC INDUSTRIES 71,788,080
------------
FINANCE -- 8.9%
BANKS -- 1.5%
Far Eastern International Bank 16,000,000 5,504,928
------------
FINANCIAL SERVICES -- 7.4%
Cathay Financial Holding Co. Ltd. 4,500,593 10,099,899
Fubon Financial Holding Co Ltd 7,500,000 6,567,324
Taishin Financial Holdings Co., Ltd. (a) 13,000,000 5,560,721
Yuanta Financial Holding Co. Ltd. (a) 7,700,000 5,131,424
------------
27,359,368
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TOTAL FINANCE 32,864,296
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MISCELLANEOUS -- 1.7%
ATHLETIC FOOTWARE -- 1.7%
Pou Chen Corp. 7,069,531 6,365,690
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US$
VALUE
SHARES (NOTE c)
------------ ------------
TECHNOLOGY -- 65.5%
ELECTRONIC COMPONENTS -- 9.4%
Epistar Corp. 1,000,267 $ 4,139,100
Everlight Electronics Co. Ltd. 1,800,920 6,866,070
Kinsus Interconnect Technology Corp. 1,800,029 6,416,321
Nan Ya Printed Circuit Board Corp. 1,330,401 8,927,897
Paragon Technologies Co Ltd. 105,000 681,839
Unimicron Technology Corp. 3,876,000 7,472,792
------------
34,504,019
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ELECTRONICS -- 4.8%
Largan Precision Co., Ltd. 506,000 6,501,054
Synnex Technology International Corp. 4,300,000 11,315,790
------------
17,816,844
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IC DESIGN -- 12.4%
Global Unichip Corp 700,000 5,174,819
MediaTek, Inc. 1,282,000 16,689,604
Novatek Microelectronics Corp. Ltd. 1,700,703 6,747,566
Orise Technology Co. Ltd. (a) 2,000,000 5,244,560
Realtek Semiconductor Corp. 1,150,000 4,188,364
RichTek Technology Corp. 800,500 7,567,804
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45,612,717
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MEMORY IC -- 2.2%
Inotera Memories, Inc. 9,646,000 8,222,212
------------
PC & PERIPHERALS -- 13.5%
Asustek Computer Inc. 3,451,363 10,804,899
Clevo Co. (a) 3,800,000 5,194,346
Foxconn Technology Co. Ltd. 935,000 9,129,161
GeoVision Inc. 450,000 3,187,186
Hon Hai Precision Industry Co. Ltd. 2,800,760 17,883,472
Portwell Inc. 1,800,000 3,347,592
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49,546,656
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SEMICONDUCTOR MANUFACTURING -- 6.8%
Ardentec Corp. 2,747,054 1,992,470
Siliconware Precision Industries Co. 3,500,074 6,400,854
Taiwan Semiconductor Manufacturing Co. Ltd. 8,950,009 16,811,436
------------
25,204,760
------------
TELECOMMUNICATIONS -- 9.1%
Chunghwa Telecom Co., Ltd. 3,000,000 5,988,469
CyberTAN Technology Inc. 2,600,000 5,206,125
High Tech Computer Corp. 800,000 14,853,388
Merry Electronics Co. Ltd. 2,500,866 7,596,704
------------
33,644,686
------------
TFT-LCD -- 7.3%
Au Optronics Corp. 7,200,674 13,949,604
InnoLux Display Corp. 1,900,840 7,158,641
Wintek Corp. 4,200,000 5,571,880
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See Notes to Schedule of Investments.
1
INVESTMENTS/ November 30, 2007 (unaudited) (continued)
US$
VALUE
SHARES (NOTE c)
------------ ------------
26,680,125
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TOTAL TECHNOLOGY 241,232,019
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TOTAL COMMON STOCKS
(Identified Cost -- $282,142,794) 352,250,085
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PRINCIPAL US$
AMOUNT VALUE
NT$ (NOTE c)
------------ ------------
COMMERCIAL PAPER - 4.3%
Alcon Pharmaceuticals Ltd:
1.9400%, 01/11/2008 $ 99,857,218 $ 3,095,196
Citibank 19,904,318 616,959
Fu One Enterprise 49,772,674 1,542,765
Grand Bills Finance Corp (b) 29,863,590 925,658
International Bank Of Taipei 100,000,000 3,097,466
Taishin Bills Finance Corp: (b)
1.9300%, 12/28/2007 50,035,058 1,550,897
1.9600%, 01/24/2008 49,842,959 1,544,943
Taishin Time Deposit 49,785,873 1,543,174
Les Enphants Co Ltd 50,000,000 1,545,702
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TOTAL COMMERCIAL PAPER
(Identified Cost -- $15,409,965) 15,462,760
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MATURITY US$
AMOUNT VALUE
US$ (NOTE c)
--------- ------------
REPURCHASE AGREEMENT - 0.2%
State Street Bank and Trust Co.
1.00% dated 11/26/07 due 12/07/07
(collateralized by U.S. Treasury
Note 5.625%, 5/15/08, market value
$586,786) (d) 575,000 575,000
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TOTAL INVESTMENTS -- 100.0%
(Cost -- $298,127,759)* $368,287,845
============
See Notes to Schedule of Investments.
2
NOTES TO SCHEDULE OF INVESTMENTS
NT$ New Taiwan Dollar
US$ United States Dollar
(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 November 30, 2007, aggregate gross unrealized appreciation for all
securities for which there was an excess of value over financial reporting
cost was $70,160,086 and aggregate gross unrealized depreciation for all
securities for which there was an excess of financial reporting cost over
value was $25,389,072 and net appreciation for financial reporting
purposes was $95,549,158. At November 30, 2007, aggregate cost for
financial reporting purposes was $298,127,759.
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/ Andrew Chen
President of The Taiwan Fund, Inc.
Date: January 29, 2008
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: January 24, 2008
By:
/s/ Andrew Chen
President of The Taiwan Fund, Inc.
Date: January 29, 2008