TSMC Reports Second Quarter EPS of NT$2.00

Hsinchu, Taiwan, R.O.C., July 18, 2013 – TSMC today announced consolidated revenue of NT$155.89 billion, net income of NT$51.81 billion, and diluted earnings per share of NT$2.00 (US$0.33 per ADR unit) for the second quarter ended June 30, 2013.

Year-over-year, second quarter revenue increased 21.6% while net income and diluted EPS both increased 23.8%. Compared to first quarter of 2013, second quarter of 2013 results represent a 17.4% increase in revenue, and a 30.9% increase in both net income and diluted EPS. All figures were prepared in accordance with TIFRS on a consolidated basis. Second quarter results contained several non-operating gains that do not recur every quarter and contributed about NT$0.04 EPS.

In US dollars, second quarter revenue increased 15.9% from the previous quarter and increased 20.7% year-over-year.

Gross margin for the quarter was 49.0%, operating margin was 37.0%, and net profit margin was 33.2%.

Shipments of 28-nanometer process technology reached 29% of total wafer revenues. 40/45-nanometer accounted for 21% of total wafer revenues. Advanced technologies, defined as 40/45-nanometers and below, accounted for 50% of total wafer revenues.

“Due to the strong demand for our advanced technologies, we have enjoyed a record quarter of both revenue and net income in the second quarter,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “While we continue to expect the demand for our advanced technologies to grow strongly, we expect the IC supply chain to begin managing inventories in the second half of this year, which will moderate somewhat the overall demand for our wafers. Based on our current business outlook and exchange rate assumption of 1 US dollar to 29.83 NT dollars, management expects overall performance for third quarter 2013 to be as follows:”

• Revenue is expected to be between NT$161 billion and NT$164 billion;
• Gross profit margin is expected to be between 47% and 49%
• Operating profit margin is expected to be between 35% and 37%