TSMC Reports Third Quarter EPS of NT$1.81

HsinChu, Taiwan, R.O.C., October 28, 2010 -- TSMC today announced consolidated revenue of NT$112.25 billion, net income of NT$46.94 billion, and diluted earnings per share of NT$1.81 (US$0.28 per ADR unit) for the third quarter ended September 30, 2010.

Year-over-year, third quarter revenue increased 24.8% while net income increased 53.6% and diluted EPS increased 54%. Compared to second quarter of 2010, third quarter results represent a 6.9% increase in revenue, an increase of 16.5% both in net income and in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

Gross margin for the quarter was 50%, operating margin was 38.4%, and net margin was 41.8%.

In the third quarter, demand for TSMC’s wafers continued to increase, and wafer shipments in all major semiconductor market segments, except computer, increased from their second quarter levels.

Advanced process technologies (0.13-micron and below) accounted for 72% of wafer revenues. 90-nanometer process technology accounted for 14% of wafer revenues, 65-nanometer 29%, and 40-nanometer exceeded 17% of total wafer sales.

“For the fourth quarter, we expect the demand from communication related applications to continue to grow while computer and consumer related applications will decline,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “Based on our current business outlook and exchange rate assumption, management expects overall performance for fourth quarter 2010 to be as follows”:

• Revenue is expected to be between NT$107 billion and NT$109 billion;
• Gross profit margin is expected to be between 48% and 50%;
• Operating profit margin is expected to be between 35.5% and 37.5%.