TSMC Reports First Quarter EPS of NT$1.85

Hsinchu, Taiwan, R.O.C., April 17, 2014 -- TSMC today announced consolidated revenue of NT$148.22 billion, net income of NT$47.87 billion, and diluted earnings per share of NT$1.85 (US$0.31 per ADR unit) for the first quarter ended March 31, 2014.

Year-over-year, first quarter revenue increased 11.6% while net income and diluted EPS both increased 21%. Compared to fourth quarter of 2013, first quarter results represent a 1.7% increase in revenue, and a 6.8% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, first quarter revenue decreased 0.7% from the previous quarter and increased 8.7% year-over-year.

Gross margin for the quarter was 47.5%, operating margin was 35.4%, and net profit margin was 32.3%.

Shipments of 28-nanometer process technology accounted for 34% of total wafer revenues. 40/45-nanometer accounted for 21% of total wafer revenues. Advanced technologies, defined as 40/45-nanometers and more advanced technologies, accounted for 55% of total wafer revenues.

“In the first quarter, we saw much stronger demand for our wafers across all segments but more pronounced in mobile related applications, than we had initially predicted in January,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “Driven by better than expected 4Q’13 business, IC companies have turned more positive on their 2014 outlook. Meanwhile, the low level of supply chain inventory has prompted the IC companies to begin restocking inventory actively. Thanks to the better performance and higher yield and reliability of our advanced technologies, we saw a strong rebound of demand for our leading nodes extending beyond the first quarter. Based on our current business outlook and exchange rate assumption of 1 US dollar to 30.10 NT dollars, management expects overall performance for second quarter 2014 to be as follows”:

• Revenue is expected to be between NT$180 billion and NT$183 billion;
• Gross profit margin is expected to be between 47.5 % and 49.5%;
• Operating profit margin is expected to be between 36.5% and 38.5%.