This case provides depreciation disclosures for six semiconductor manufacturers, two headquartered in Europe (STMicroelectronics NV and Infineon Technologies), two headquartered in Taiwan (Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC)), and two headquartered in the U.S. (Intel and Texas Instruments). Even though depreciation is one of the two largest costs for a semiconductor manufacturer (with R&D), some of the disclosures are very limited, particularly for the two U.S. firms.
I use the case to discuss information that is available in annual reports. The case is useful as background for discussing both depreciation expense and fixed assets. It is also useful for discussing the quality of financial disclosures by different companies. The case also includes information provided by the former CFO of both Taiwan companies. That information can be used to discuss product pricing and competitive advantages.