TSMC 2003 Second Quarter Report

Science-Based Industrial Park, Hsinchu, Taiwan, July 24, 2003 - Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM) (TSMC) today announced that its net sales for the 2003 second quarter reached NT$49,922 million, while net income totaled NT$11,730 million. Earnings per share were NT$0.58 based on the current 20,221,270 thousand weighted average outstanding shares.

For the six months ended June 30, 2003, the Company's net sales were NT$89,247 million, while net income reached NT$16,088 million. Earnings per share for the first six months of 2003 were NT$0.79 based on the current 20,221,270 thousand weighted average outstanding shares.

TSMC’s 2003 second quarter net sales and net income were at their highest levels in two-and-a-half years. On a sequential basis, 2003 second quarter net sales grew 26.9 percent; net income substantially increased to NT$11,730 million, representing a 169.2 percent growth. Earnings per share for the second quarter of 2003 were NT$0.58, representing a 174.7 percent growth over 2003 first quarter.

Compared to the same period for last year, TSMC 2003 second quarter net sales grew 13.0 percent, net income increased 26.0 percent, and earnings per share grew 26.8 percent.

TSMC spokesperson and senior vice president Mr. Harvey Chang noted that, “Due to growth in customer demand, TSMC’s 2003 second quarter wafer shipments continued to increase, reaching 887,000 eight-inch-equivalent wafers, for a 28 percent increase over last quarter. On a sequential basis, average selling price (ASP) increased four percent due to improving product mix. However, non-wafer-manufacturing sales for the second quarter decreased slightly compared to last quarter. As a result, total net sales for the second quarter of 2003 grew 26.9 percent sequentially.”

Mr. Chang added that, “Revenues from TSMC’s advanced process technologies, including 0.18-micron and below process technologies accounted for 62 percent of total wafer sales in the second quarter of 2003. The 0.13-micron process technology alone accounted for 17 percent of the total sales. In addition, the average utilization rate for the second quarter of 2003 increased to 88 percent from 69 percent for the first quarter of 2003. As a result, gross margin for the second quarter of 2003 improved to 36.8 percent from 26.4 percent in the previous quarter. We expect this fine performance will extend into the coming quarter.”

TSMC’s 2003 second quarter results: (Unit: NT$million, except for EPS)

 

2Q’03
Amount*

2Q’02
Amount

YoY
Change %

1Q’03
Amount

QoQ
Change %

Net sales

49,922

44,182

13.0%

39,325

26.9%

Gross profit

18,351

16,423

11.7%

10,386

76.7%

Income from operations

13,340

11,976

11.4%

6,195

115.3%

Income before tax

12,572

10,986

14.4%

4,180

200.8%

Net income

11,730

9,310

26.0%

4,358

169.2%

EPS(NT$)

0.58**

0.45***

26.8%

0.21****

174.7%

* 2003 second quarter figures have not been approved by Board of Directors
** Based on 20,221,270 thousand weighted average outstanding shares
*** Based on 20,220,853 thousand weighted average outstanding shares
****Based on 20,221,258 thousand weighted average outstanding share