Science-Based Industrial Park, Hsinchu, Taiwan, July 26, 2001 - Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM), (TSMC) today announced its financial results for the second quarter of 2001. Net sales for the 2001 second quarter reached NT$26,298 million, and net income totaled NT$312 million. Earnings per share were reported at NT$0.01 based on the current 16,832,553 thousand weighted average outstanding shares.
Compared to the same period a year ago, the Company's 2001 second quarter net sales decreased 17.3%, while net income declined 97.7%. On a sequential basis, net sales and net income for the second quarter of 2001 declined 33.5% and 96.3% respectively. For the six months ended June 30, 2001, the Company's net sales were NT$65,819 million, and achieved 44% of TSMC's financial forecasts. Six month net income was NT$8,732 million and achieved 33.9% of TSMC's financial forecasts. Earnings per share for the first six months of 2001 were NT$0.51.
Ms. K. C. Chen, TSMC spokesperson, stated that due to soft demand in the worldwide semiconductor industry, the Company's second quarter wafer shipments decreased 36% compared to the first quarter of 2001. However, the Company's second quarter net sales declined only 33.5% from the first quarter. This was attributed to a higher average selling price in the second quarter due to an increase to 65% in TSMC's wafer sales using 0.25 micron and smaller process geometries. Despite an average utilization rate of 44%, the Company still reported a NT$284 million earning in operating income.
TSMC also indicated that it hit the bottom in the month of May and June, and that the second half of 2001 is expected to gradually improve. Despite a slow semiconductor market, the Company continues investing in leading 300 mm, 0.13um, 0.10um and copper low-k process technology to further ensure its leadership in advanced process technologies and to increase both its customers’ and its own competitive advantages.