TSMC Reports First Quarter EPS of NT$1.53

Hsinchu, Taiwan, R.O.C., April 18, 2013 – TSMC today announced consolidated revenue of NT$132.76 billion, net income of NT$39.58 billion, and diluted earnings per share of NT$1.53 (USD0.26 per ADR unit) for the first quarter ended March 31, 2013.

Year-over-year, first quarter revenue increased 25.7% while net income and diluted EPS both increased 18.2%. Compared to fourth quarter of 2012, first quarter of 2013 results represent a 1.0% increase in revenue, and a 4.9% decrease in both net income and diluted EPS. All figures were prepared in accordance with TIFRS (International Financial Reporting Standards as enclosed for use in R.O.C.) on a consolidated basis.

In US dollars, first quarter revenue remained flat from the previous quarter and increased 26.8% year-over-year.

Gross margin for the quarter was 45.8%, operating margin was 33.5%, and net margin was 29.8%.

Shipments of 28-nanometer process technology reached 24% of total wafer revenues. 40/45-nanometer accounted for 23% of total wafer revenues. Advanced technologies, defined as 40/45-nanometers and below, accounted for 47% of total wafer revenues.

“Thanks to strong demand from mobile-related applications, our 28-nanometer strength, and favorable currency exchange rate, our first quarter revenue exceeded the guidance given three months ago,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “We expect the strong mobile demand, especially in emerging markets, to continue in the second quarter. Based on our current business outlook and exchange rate assumption of 1 US dollar to 29.82 NT dollars, management expects overall performance for second quarter 2013 to be as follows”:

Revenue is expected to be between NT$154 billion and NT$156 billion;
Gross profit margin is expected to be between 47.5% and 49.5%;
Operating profit margin is expected to be between 35% and 37%.

In order to prepare for a fast ramp up of 20-nanometer starting next year, TSMC further raises the capital expenditure estimate for 2013 to be in the range between US$9.5 billion and US$10 billion.