Hsinchu, Taiwan, July 6, 2000– Taiwan Semiconductor Manufacturing Company Ltd. (“ TSMC” or “ the Company”) (TAIEX: 2330, NYSE: TSM) today announced that its net sales for June 2000 reached NT$13,213 million, representing an approximately 21% growth over May 2000. The net income for June 2000 once again reaches a new monthly record.
TSMC completed the mergers with TASMC and WSMC on June 30, 2000. Since TSMC adopted Pooling of Interest method in merging WSMC, WSMC’s revenue for June 2000 should be recognized by TSMC. As for the case of TASMC, TSMC adopted Purchase method in the merger so no sales adjustment should be made. Accordingly, TSMC’s net income for June totaled NT$13,213 million, including NT$12,015 million from TSMC’s own revenue and NT$1,198 million from WSMC’s revenue. Starting from the third quarter of 1999, TASMC has manufactured logic products for TSMC. Since then, TSMC's monthly sales has included the logic prodcut sales from TASMC, while the DRAM sales from TASMC was not included. TASMC’s DRAM sales for June 2000 was NT$480 million.
Ms. KC Chen, TSMC Spokesperson, stated that due to the continual growth of the global semiconductor market, the Company’s production capacity was fully utilized in June 2000. The net income for June 2000 reached NT$13,213 million, representing a 104.8% growth over June 1999. On the whole, the net income for the first half of 2000 totaled NT$64,934 million (including the total sales of NT$4,844 of WSMC from January 2000 to June 2000), representing a 114.2% growth over the same period of 1999.
In addition to the significant revenue growth, TSMC has a breakthrough both in production capacity and in R& D. The merger of WSMC and TASMC with and into TSMC has been effective since June 30, 2000. The total annual capacity for TSMC in 2000 is expected to reach 3,400,000 8-inch wafers. The capacity growth demonstrates not only TSMC’s flexible and high-quality customer service but also TSMC’s leading position in the global foundry business.
As for the area of R& D, TSMC’s 12-inch fab in Tainan Science-Based Industrial Park, also the first 12-inch fab in Taiwan, has completed its cleanroom construction in June 2000. The installation of its manufacturing facility has started in July 2000. It is expected that TSMC Fab 12 will begin volume production in the end of 2000. Meanwhile, TSMC signed an agreement with National Semiconductor (NYSE:NSM) in June for technology transfer. Under the agreement, TSMC will license its leading-edge logic processes to National Semiconductor. This makes TSMC the first foundry in history to license its leading-edge logic technology to a major integrated device manufacturer (IDM).
As a world-class company, TSMC’s outstanding performance has won a high credit both locally and internationally. Among Business Week’s list of the world’s best 100 IT companies announced in June 2000, TSMC, ahead of other companies in Taiwan, is listed as Top 5. The June 2000 issue of Red Herring also elected TSMC as one of the Top 100 companies in the world. TSMC is the only Taiwan company on the list.