TSMC Reports Second Quarter EPS of NT$1.55

Hsin-Chu, Taiwan, R.O.C., July 29, 2010 -- TSMC today announced consolidated revenue of NT$104.96 billion, net income of NT$40.28 billion, and diluted earnings per share of NT$1.55 (US$0.24 per ADS unit) for the second quarter ended June 30, 2010.

Year-over-year, second quarter revenue increased 41.4% while net income increased 64.8% and diluted EPS increased 65%. Compared to first quarter of 2010, second quarter results represent a 13.9% increase in revenue, and a 19.7% increase in both net income and diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

Gross margin for the quarter was 49.5%, operating margin was 38.6%, and net margin was 38.4%.

In the second quarter, demand for TSMC’s wafers continued to be strong, and wafer shipments in all major semiconductor market segments increased from their first quarter levels.

Advanced process technologies (0.13-micron and below) accounted for 72% of wafer revenues. 90-nanometer process technology accounted for 16% of wafer revenues, 65-nanometer 27%, and 40-nanometer 16% of total wafer sales.

“Both macroeconomic forecast and booking trend indicate that third quarter business will continue to grow. Relative to the second quarter, the consumer and communication segments in the third quarter will increase while the computer segment will decline slightly,” said Lora Ho, VP and Chief Financial Officer of TSMC. “Based on our current business outlook, management expects overall performance for third quarter 2010 to be as follows”:

• Revenue to be between NT$109 billion and NT$111 billion;
• Gross profit margin to be between 48% and 50%;
• Operating profit margin to be between 36% and 38%.