TSMC Reports Third Quarter EPS of NT$2.00

Hsinchu, Taiwan, R.O.C., Oct 17, 2013 –TSMC today announced consolidated revenue of NT$162.58 billion, net income of NT$51.95 billion, and diluted earnings per share of NT$2.00 (US$0.34 per ADR unit) for the third quarter ended September 30, 2013.

Year-over-year, third quarter revenue increased 14.9% while net income and diluted EPS both increased 5.2%. Compared to second quarter of 2013, third quarter of 2013 results represent a 4.3% increase in revenue, and a 0.3% increase in net income. The results included a NT$1.35 billion write-off of investment in Stion which reduced the third quarter EPS by NT$0.05. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, third quarter revenue increased 4.1% from the previous quarter and increased 14.8% year-over-year.

Gross margin for the quarter was 48.5%, operating margin was 36.7%, and net profit margin was 32%.

Shipments of 28-nanometer process technology reached 32% of total wafer revenues. 40/45-nanometer accounted for 20% of total wafer revenues. Advanced technologies, defined as 40/45-nanometers and more advanced technologies, accounted for 52% of total wafer revenues.

“TSMC again set new records in both revenue and net income in the third quarter, thanks to our leadership in advanced technologies,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “While we continue to make strides in technology progression, we expect our fourth quarter to be impacted by softer demand for certain high-end mobile devices and the inventory correction resulting from such softer demand. Based on our current business outlook and exchange rate assumption of 1 US dollar to 29.5 NT dollars, management expects overall performance for fourth quarter 2013 to be as follows:”

• Revenue is expected to be between NT$144 billion and NT$147 billion;
• Gross profit margin is expected to be between 44 % and 46%;
• Operating profit margin is expected to be between 32% and 34%.