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)
C/O STATE STREET BANK AND TRUST COMPANY
2 AVENUE DE LAFAYETTE, 6th Floor
P.O. BOX 5049
BOSTON, MA 02206-5049
(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, Assistant Secretary 31 West 52nd Street
2 Avenue De Lafayette New York, New York 10019
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, 2007
Date of reporting period: May 31, 2007
ITEM 1: SCHEDULE OF INVESTMENTS
THE TAIWAN FUND, INC.
Investments/May 31, 2007 (Showing Percentage of Total Value of Investment in
Securities) (unaudited)
US$
VALUE
SHARES (NOTE C)
------------ ------------
COMMON STOCKS - 96.6%
BASIC INDUSTRIES -- 19.3%
CHEMICALS -- 0.5%
Taiwan Hopax Chemicals Manufacturing Co. Ltd. 2,225,000 $ 1,872,408
------------
CONSTRUCTION -- 4.4%
Cathay Real Estate Development Co. Ltd. (a) 4,250,000 2,431,512
Goldsun Development & Construction Co. Ltd. 11,271,000 5,902,476
Ruentex Development Co. Ltd. 8,500,000 6,754,200
------------
15,088,188
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IRON & STEEL -- 4.4%
China Steel Corp. 10,000,000 11,654,306
Feng Hsin Iron & Steel Co. 1,200,000 1,434,842
Tung Ho Steel Enterprise Corp. 1,800,000 2,007,870
------------
15,097,018
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PAPER -- 0.9%
Long Chen Paper Co. Ltd. 7,200,000 3,192,977
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PLASTICS -- 1.9%
Nan Ya Plastics Corp. 2,266,000 4,390,011
Taiwan Hon Chuan Enterprise Co. Ltd. 2,668,835 2,314,579
------------
6,704,590
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TEXTILE -- 2.3%
Formosa Taffeta Co. Ltd. 8,500,000 8,053,580
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TOOLS - HAND HELD -- 2.3%
Basso Industry Corp. 5,200,000 7,791,736
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TRANSPORTATION -- 2.6%
Sincere Navigation Corp. 479,000 735,138
U-Ming Marine Transport Corp. 3,200,000 5,695,777
Yang Ming Marine Transport 3,645,000 2,532,246
------------
8,963,161
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TOTAL BASIC INDUSTRIES 66,763,658
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FINANCE -- 6.9%
BANKS -- 2.3%
Far Eastern International Bank 18,000,000 8,118,662
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FINANCIAL SERVICES -- 4.6%
Cathay Financial Holding Co. Ltd. 5,248,593 11,073,920
Fuhwa Financial Holding Co. Ltd. (a) 4,845,000 2,126,608
KGI Securities Co. Ltd. (a) 8,000,000 2,615,408
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15,815,936
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TOTAL FINANCE 23,934,598
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MISCELLANEOUS -- 2.2%
GOLF EQUIPMENT -- 2.2%
Advanced International Multitech Co., Ltd. 3,640,000 7,536,734
US$
VALUE
SHARES (NOTE C)
------------ ------------
TECHNOLOGY -- 68.2%
ELECTRONIC COMPONENTS -- 8.4%
Cyntec Co. Ltd. 3,950,025 $ 7,437,311
Everlight Electronics Co. Ltd. 1,000,000 3,859,543
Kinsus Interconnect Technology Corp. 2,488,209 9,979,951
Motech Industries Inc. 214,614 2,709,067
Tripod Technology Corp. 1,150,000 5,204,329
------------
29,190,201
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ELECTRONICS -- 2.7%
Synnex Technology International Corp. 7,300,000 9,479,946
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IC DESIGN -- 12.5%
Elan Microelectronics Corp. 10,000,000 14,984,108
MediaTek, Inc. 1,320,000 20,897,836
Novatek Microelectronics Corp. Ltd. 1,442,851 7,250,288
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43,132,232
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MEMORY IC -- 2.9%
Inotera Memories, Inc. 8,000,000 9,965,188
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PC & PERIPHERALS -- 12.5%
Asia Vital Components Co. Ltd. (a) 4,500,000 3,991,221
Asustek Computer Inc. 2,000,000 4,934,161
Catcher Technology Co. Ltd. 1,077,921 10,278,345
Foxconn Technology Co. Ltd. 570,000 6,228,848
Hon Hai Precision Industry Co. Ltd. 2,524,800 17,845,945
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43,278,520
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SEMICONDUCTOR MANUFACTURING -- 14.3%
Advanced Semiconductor Engineering, Inc. (a) 5,500,000 6,326,623
Ardentec Corp. 2,693,749 2,523,733
King Yuan Electronics Co. Ltd. 11,854,000 10,136,991
MJC Probe, Inc. 1,000,000 3,723,324
Siliconware Precision Industries Co. 5,965,556 12,460,220
Taiwan Semiconductor Manufacturing Co. Ltd. 7,003,000 14,457,533
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49,628,424
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TELECOMMUNICATIONS -- 11.8%
D-Link Corp. 6,900,000 14,453,761
High Tech Computer Corp. 300,000 5,594,067
Merry Electronics Co. Ltd. 3,932,000 14,164,008
Silitech Technology Corp. 1,385,000 6,624,186
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40,836,022
------------
TFT-LCD -- 3.1%
Au Optronics Corp. 6,899,390 10,651,397
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TOTAL TECHNOLOGY 236,161,930
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TOTAL COMMON STOCKS
(Identified Cost -- $221,759,199) 334,396,920
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INVESTMENTS/MAY 31, 2007 (unaudited) (continued)
PRINCIPAL US$
AMOUNT VALUE
NT$ (NOTE C)
------------ ------------
SHORT TERM INVESTMENTS - 3.4%
China Bills Finance Corp. (b)
1.69%, 07/10/2007 $ 50,203,933 $ 1,519,720
1.72%, 07/10/2007 50,244,903 1,520,960
2.00%, 07/10/2007 50,273,849 1,521,836
2.00%, 07/12/2007 20,042,315 606,699
International Bills Finance Co. (b) 49,893,716 1,510,329
State Street Bank and Trust Co. (b)
1.50% dated 5/29/07 due 6/4/07
(collateralized by U.S. Treasury Note 3.875%,
7/31/07, market value $389.141) (d) 378,000 378,000
Tai Shin Enterprise Taiwan (b) 100,195,433 3,033,008
Taishin International Bank 50,131,784 1,517,535
Total Short Term Investments 11,608,087
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TOTAL SHORT TERM INVESTMENTS
(Identified Cost -- $11,541,265) 11,608,087
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TOTAL INVESTMENTS 100.00%
(Cost -- $233,300,464)* $346,005,007
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NOTES TO SCHEDULE OF INVESTMENTS
NT$ 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 May 31, 2007, aggregate gross unrealized appreciation for all securities
for which there was an excess of value over financial reporting cost was
$117,275,418 and aggregate gross unrealized depreciation for all securities
for which there was an excess of financial reporting cost over value was
$4,570,875 and net appreciation for financial reporting purposes was
$112,704,543. At May 31, 2007, aggregate cost for financial reporting
purposes was $233,300,464.
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: July 30, 2007
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 23, 2007
By: /s/ Benny T. Hu
------------------------------------
Benny T. Hu
President of The Taiwan Fund, Inc.
Date: July 30, 2007