Science-Based Industrial Park, Hsin-Chu, Taiwan, November 18, 1997 - Taiwan Semiconductor Manufacturing Company Ltd. (TSMC, the "Company") (NYSE: TSM) today held a Board of Directors Meeting. At the meeting the board decided to revise the Company's 1997 forecast for net sales to NT$43,716 million, net income to NT$17,402 million and earnings per share to NT$4.26. The board also approved the appointment of two vice presidents and several investment proposals.
The company had previously revised its 1997 forecasts upward in June in light of the recovery of the global semiconductor market during the second quarter of the year. Mr. YC Huang, the Spokesman of TSMC, cited the continuing recovery of the worldwide semiconductor market and the recent devaluation of the New Taiwan Dollar ("NT$") against the US Dollar ("US$") as key factors leading to the current revision. The revised sales forecast has been increased by 7.6% from the previous NT$40,640 million to NT$43,716 million. Pre-tax income forecast has been increased by 17.0%, from NT$12,923 million to NT$15,122 million. The net income forecast has also been moved up, from NT$14,702 million to NT$17,402 million, an increase of 18.4%.
Mr. Huang outlined several other important investment and personnel decisions made at the board meeting as follows:
Capital expenditure of NT$183 million was approved to further expand Fab-2 B's output capacity of 0.5um logic products from the current 11,000 6-inch wafers per month to 15,000 6-inch wafers per month. Capital expenditure of NT$16,012.5 million was approved for equipment procurement to allow the capacity installation of Fab-6 to be expanded to 10,000 8-inch wafers per month at Fab6's first stage, and for equipment installation for mask-making and testing service at the Tainan Science-based Industrial Park. Capital expenditure of NT$427 million was approved to further expand mask capacity from 2,800 plates per month to 3,300 plates per month, and to commence the development of 0.18um masks. The board approved an investment in the amount no more than NT$762.5 million in InveStar Semiconductor Development Fund Inc. The board also approved the appointment of Ms. Kok-Choo Chen as the Senior Vice President and Chief Legal Officer, and Dr. Ping Yang as the Vice Presidnet of the Company.
The Company is the world's largest dedicated integrated circuit ("IC") foundry and offers a comprehensive set of IC fabrication process, including processes to manufacture CMOS logic, mixed-mode, volatile and non-volatile memory and BiCMOS chips.
TSMC's revised 1997 Unconsolidated Financial Forecasts:
|Income before tax||15,122||12,923