TSMC Reports Fourth Quarter EPS of NT$2.81

Hsinchu, Taiwan, R.O.C., January 14, 2016 -- TSMC today announced consolidated revenue of NT$203.52 billion, net income of NT$72.84 billion, and diluted earnings per share of NT$2.81 (US$0.43 per ADR unit) for the fourth quarter ended December 31, 2015.

Year-over-year, fourth quarter revenue decreased 8.5% while net income and diluted EPS both decreased 8.9%. Compared to third quarter 2015, fourth quarter results represent a 4.2% decrease in revenue, and a 3.3% decrease in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, fourth quarter revenue was $6.24 billion, which decreased 6.4% from previous quarter and decreased 13.7% year-over-year.

Gross margin for the quarter was 48.6%, operating margin was 38.3%, and net profit margin was 35.8%.

Shipments of 16/20-nanometer accounted for 24% of wafer revenues, and 28-nanometer process technology accounted for 25% of total wafer revenues. Advanced technologies, defined as 28-nanometer and more advanced technologies, accounted for 49% of total wafer revenues.

“In the fourth quarter, the ramp of 16-nanometer technologies accelerated according to plan,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “While the China smartphone market shows signs of recovery, customers remain cautious in general. Based on our current business outlook and exchange rate assumption of 1 US dollar to 32.5 NT dollars, management expects overall performance for first quarter 2016 to be as follows”:

 ‧Revenue is expected to be between NT$198 billion and NT$201 billion;
 ‧Gross profit margin is expected to be between 47% and 49%;
 ‧Operating profit margin is expected to be between 36.5% and 38.5%.

The management also states 2016 capital budget to be between US$9 billion and US$10 billion.