TSMC Reports Third Quarter EPS of NT$1.18

Hsin-Chu, Taiwan, R.O.C. -- October 29, 2009 -- TSMC today announced consolidated revenue of NT$89.94 billion, net income of NT$30.55 billion, and diluted earnings per share of NT$1.18 (US$0.18 per ADS unit) for the third quarter ended September 30, 2009.

Year-over-year, third quarter revenue decreased 3.3% while net income decreased 0.1% and diluted EPS increased 0.3%. Compared to second quarter of 2009, third quarter results represent a 21.2% increase in revenue, an increase of 25% in net income, and an increase of 24.8% in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

Gross margin for the quarter was 47.7%, operating margin was 35.6%, and net margin was 34%.

As demand outlook continued to improve, third quarter saw a solid growth in the demand for semiconductors across all major applications.

Advanced process technologies (0.13-micron and below) accounted for 67% of wafer revenues. 90-nanometer process technology accounted for 18% of wafer revenues, 65-nanometer 31%, and 40-nanometer exceeded 4% of total wafer sales.

“For the fourth quarter, we expect the demand from computer related applications to grow strongly while communication related applications will take a pause after two consecutive quarters’ strong momentum, and consumer 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 overall performance for fourth quarter 2009 to be as follows”:

• Revenue is expected to be between NT$90 billion and NT$92 billion;
• Gross profit margin is expected to be between 47% and 48.5%;
• Operating profit margin is expected to be between 35.5% and 37%.

Lora Ho further said: Due to stronger demand for 40-nanometer and 65-nanometer technologies, TSMC 2009 capital expenditure is further raised and is expected to be around US$2.7 billion”.