TSMC Reports First Quarter EPS of NT$0.06

Hsin-Chu, Taiwan, R.O.C. -- April 30, 2009 -- TSMC today announced consolidated revenue of NT$39.5 billion, net income of NT$1.56 billion, and diluted earnings per share of NT$0.06 (US$0.01 per ADS unit) for the first quarter ended March 31, 2009.

Year-over-year, first quarter revenue decreased 54.8% while net income and diluted EPS decreased 94.5% and 94.4%, respectively. Compared to fourth quarter of 2008, first quarter results represent a 38.8% decrease in revenue, and a decrease of 87.5% in net income and in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

As a result of deepening economic recession worldwide and customers’ inventory adjustment, first quarter saw a sharp decline in the demand for semiconductors across all applications. Gross margin for the quarter was 18.9%, operating margin was 3.1%, and net margin was 3.9%.

Advanced process technologies (0.13-micron and below) accounted for 65% of wafer revenues with 90-nanometer process technology accounting for 25%, 65-nanometer 23%, and 45/40 nanometer reaching 1% of total wafer sales.

“Although global economic conditions continue to decline, a few signs of economic stabilization began to emerge. Consumption of electronics in the last two quarters exceeded production and surpassed semiconductor companies’ low expectations. Meanwhile, companies began to launch new products, while China started implementing various stimulus programs. The dynamic has resulted in a substantial increase in order levels. After sharp declines in two consecutive quarters, TSMC is seeing a strong rebound in its second quarter business and believes overall business in the second half of 2009 will be considerably better than that of the first half,” said Lora Ho, VP and Chief Financial Officer of TSMC. “Based on our current business outlook, management expects overall performance for second quarter 2009 to be as follows”:

• Revenue is expected to be between NT$71 billion and NT$74 billion;
• Gross profit margin is expected to be between 43.5% and 45.5%;
• Operating profit margin is expected to be between 30.5% and 32.5%.

The management further expects that 2009 capital expenditure will be around US$1.5 billion.