Science-Based Industrial Park, Hsinchu, Taiwan, April 27, 2001 - Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM), (“TSMC” or the “Company”) announced today its financial results for the first quarter of 2001. Net sales for the first quarter of 2001 reached NT$39,521million, net income totaled NT$8,420 million, and earnings per share were NT$0.71 based on the current 11,689,365 thousand weighted average outstanding shares. In comparison with the same period a year ago, the Company's net sales for the first quarter of 2001 grew 39.8% and net income declined 16.6%.
Ms. K. C. Chen, TSMC spokesperson, stated that due to a slow semiconductor market, the Company's first quarter wafer shipments decreased compared to the fourth quarter of 2000. Net sales for the first quarter of 2001 declined 26.6% on a sequential basis. Gross margin fell from 46.0% in the fourth quarter of 2000 to 34.1%, primarily as a result of a low utilization rate. In addition, due to the continued soft business environment, investment losses from affiliate companies Vanguard International Semiconductor Co., WaferTech and SSMC increased. TSMC's net income for the first quarter of 2001 declined 60.8% from the fourth quarter of 2000, to NT$8,420 million.
Despite current market conditions , TSMC's sales of wafers using 0.25um and smaller process geometries have continued to increase. These now account for over 50% of the Company's first quarter 2001 sales.