TSMC Reports Fourth Quarter EPS of NT$1.26

Hsin-Chu, Taiwan, R.O.C., January 28, 2010 -- TSMC today announced consolidated revenue of NT$92.09 billion, net income of NT$32.67 billion, and diluted earnings per share of NT$1.26 (US$0.19 per ADS unit) for the fourth quarter ended December 31, 2009.

Year-over-year, fourth quarter revenue increased 42.6% while net income increased 162.5% and diluted EPS increased 162.7%. Compared to third quarter of 2009, fourth quarter results represent a 2.4% increase in revenue, a 6.9% increase in net income, and a 7.2% increase in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

Gross margin for the quarter was 48.5%, operating margin was 36.5%, and net margin was 35.5%.

As the global economy gradually recovered, fourth quarter saw a continued improvement in wafer sales with computer related applications growing strongly and consumer related applications declining seasonally.

Advanced process technologies (0.13-micron and below) accounted for 70% of wafer revenues. 90-nanometer process technology accounted for 16% of wafer revenues, 65-nanometer 30%, and 40-nanometer exceeded 9% of total wafer sales.

“Although first quarter normally is a sequentially declining quarter for all three major semiconductor applications, we expect the demand from consumer related applications to grow in first quarter of 2010, while computer and communication related applications will decline following their seasonal pattern,” said Lora Ho, VP and Chief Financial Officer of TSMC. “Based on our current business outlook, management expects”:

‧First quarter revenue to be between NT$89 billion and NT$91 billion, gross profit margin to be between 46.5% and 48.5%, and operating profit margin to be between 35% and 37%;

‧2010 capital expenditure to be around US$4.8 billion, due to strong demand outlook for our advanced technologies.