Science-Based Industrial Park, Hsinchu, Taiwan, October 26, 2001 - Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM), (TSMC) today announced its financial results for the third quarter of 2001. Net sales for the 2001 third quarter reached NT$26,940 million, and net income totaled NT$1,237 million. Earnings per share were reported at NT$0.06 based on the current 16,832,553 thousand weighted average outstanding shares. For the nine months ended September 30, 2001, the Company's net sales were NT$92,758 million, and net income was NT$9,969 million. Earnings per share for the first nine months of 2001 were NT$0.57.
Compared to the same period a year ago, the Company's 2001 third quarter net sales decreased 43.3%, while net income declined 93.8%. On a sequential basis, net sales increased 2.4%. However, a marked growth in operating income led to a 296.7% increase of net income for the third quarter of 2001.
Ms. K. C. Chen, TSMC spokesperson, stated that, due to soft demand in the worldwide semiconductor industry, the Company hit its sales revenue bottom during the months of May and June, 2001. Reflecting this trend, the Company's 2001 third quarter net sales grew 2.4% from the second quarter. A significant portion of this growth was attributed to a 70% increase in the sale of wafers using 0.25-micron and smaller process geometries. The Company’s 2001 third quarter operating income was NT$1,942 million, representing a substantial 582.9% increase over the second quarter.