TSMC 2002 Second Quarter Report

Science-Based Industrial Park, Hsinchu, Taiwan, July 25, 2002 - Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM) (TSMC) today announced its financial results for the second quarter of 2002. Net sales for the 2002 second quarter reached NT$44,182 million, while net income totaled NT$9,310 million. Earnings per share were NT$0.49 based on the current 18,580,886 thousand weighted average outstanding shares.

For the six months ended June 30, 2002, the Company's net sales were NT$79,972 million and net income reached NT$15,897 million. Earnings per share for the first six months of 2002 were NT$0.84 based on the current 18,580,886 thousand weighted average outstanding shares.

Compared to the second quarter of 2001, when the global semiconductor market hit bottom, TSMC’s sales for the second quarter of 2002 grew 68.0%. Net income for the second quarter of 2002 grew more than 28 times, to NT$9,310 million from NT$312 million in the second quarter of 2001. Earnings per share for the second quarter of 2002 increased more than 40 times on a year-over-year basis, from NT$0.01 for the second quarter of 2001 to NT$0.49 for the second quarter of 2002.

TSMC spokesperson and senior vice president Mr. Harvey Chang noted that, “TSMC’s revenues continued to grow for the fourth consecutive quarter after we hit bottom in the second quarter of last year. Net sales and net income in the second quarter of 2002 grew 23.5% and 41.3%, respectively, over the previous quarter. In addition, operating income for the second quarter of 2002 surpassed NT$10 billion, increasing 46.4% to NT$11,975 million compared to NT$8,182 million for the first quarter of 2002. TSMC’s operating margin for the second quarter of 2002 increased to 27.1% from 22.9% for the first quarter of 2002.

Mr. Chang also stated that, “TSMC's average utilization rate for the second quarter of 2002 increased to 85% from 67% for the first quarter of 2002 due to increasing customer demand. Increased order activity was attributed primarily to the communication product segment and integrated device manufacturers. Wafer shipments for the second quarter of 2002 totaled 719,000 eight-inch equivalent wafers, representing a 20.0% increase over the first quarter of 2002.”

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Table 1: TSMC’s 2002 second quarter results

(Unit: NT$million, except for EPS)

 

2Q’02 Amount*

2Q’01 Amount

YoY Change %

1Q’02 Amount

QoQ Change %

Net sales

44,182

26,298

68.0%

35,790

23.5%

Gross profit

16,423

4,999

228.6%

12,027

36.6%

Income from operations

11,975

284

4,110.7%

8,182

46.4%

Income before tax

10,986

-869

-

7,018

56.5%

Net income

9,310

312

2,886.7%

6,588

41.3%

EPS(NT$)

0.49**

0.01***

4,108.4%

0.35****

42.0%



* 2002 second quarter figures have not been approved by Board of Directors

** Based on 18,580,886 thousand weighted average outstanding shares

*** Based on 16,832,554 thousand weighted average outstanding shares

****Based on 18,580,886 thousand weighted average outstanding share