TSMC Reports First Quarter EPS of NT$1.30

Hsin-Chu, Taiwan, R.O.C., April 27, 2010 -- TSMC today announced consolidated revenue of NT$92.19 billion, net income of NT$33.66 billion, and diluted earnings per share of NT$1.30 (US$0.20 per ADS unit) for the first quarter ended March 31, 2010.

Year-over-year, first quarter revenue increased 133.4% while net income increased 2059.5% and diluted EPS increased 2059.8%. Compared to fourth quarter of 2009, first quarter 2010 results represent a 0.1% increase in revenue, and a 3.1% increase in both net income and diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

Gross margin for the quarter was 47.9%, operating margin was 37%, and net margin was 36.5%.

As the demand for TSMC’s wafers remained strong, first quarter saw an increase in wafer shipments from the previous quarter, contrary to its normal seasonal pattern. Wafer sales from consumer and communication related applications grew while wafer sales from computer related applications declined slightly.

Advanced process technologies (0.13-micron and below) accounted for 71% of wafer revenues. 90-nanometer process technology accounted for 17% of wafer revenues, 65-nanometer 27%, and 40-nanometer jumped to 14% of total wafer sales.

“Business continues to be brisk. Relative to the first quarter, the consumer and communication segments in the second quarter will increase while the computer segment will remain flat,” said Lora Ho, VP and Chief Financial Officer of TSMC. “Based on our current business outlook, management expects overall performance for second quarter 2010 to be as follows”:

· Revenue to be between NT$100 billion and NT$102 billion;
· Gross profit margin to be between 48% and 50%;
· Operating profit margin to be between 36.5% and 38.5%.