Hsinchu, Taiwan, January 25, 2002 - Taiwan Semiconductor Manufacturing Company Ltd. (“ TSMC” or “ the Company” ) (TAIEX: 2330, NYSE: TSM), today announced its audited financial results for the fourth quarter of 2001. Net sales for the fourth quarter of 2001 reached NT$33,130 million, net income totaled NT$4,514 million, and earnings per share were NT$0.26 based on 16,833 million weighted average outstanding shares.
For the fiscal year 2001, ended December 31, net sales were NT$125,888 million and net income was NT$14,483 million. With a total of 16,833 million weighted average outstanding shares, earnings per share for 2001 were NT$0.83. These financial results were slightly better than TSMC’s latest forecast for 2001.
Compared to the 2001 third quarter, the Company's net sales for the fourth quarter of 2001 grew 23 percent while net income rose a substantial 265 percent. In addition, the demand for TSMC’s advanced technologies continued to increase, and sales of wafers using 0.25-micron and smaller process geometries accounted for approximately 74 percent of fourth quarter 2001 sales. Also, TSMC’s utilization rate for the fourth quarter of 2001 increased to 50 percent from 41 percent for the third quarter of 2001. Consequently, the Company’s fourth quarter 2001 operating income reached NT$5,859 million, representing a 201.7 percent increase over third quarter operating income of NT$1,942 million. Compared to the fourth quarter of 2000, when the overall IC industry was peaking, TSMC’s fourth quarter 2001 sales and net income decreased 38.4 percent and 79 percent, respectively.
Mr. Harvey Chang, TSMC spokesperson and senior vice president, said that the worldwide semiconductor market experienced a decline of about 30 percent in 2001. However, due to its strength in developing leading-edge technologies, TSMC has successfully provided advanced wafer production processes that satisfy customers’ needs for new designs in applications requiring cutting-edge technology. This allowed TSMC to realize a quicker upturn than the industry as a whole. As a consequence, the Company’s monthly sales for the second half of 2001 increased steadily and achieved a profit of NT$14,483 million for year 2001, while many of our competitors in the industry still suffered losses in general.