TSMC Reports Third Quarter EPS of NT$2.94

Hsinchu, Taiwan, R.O.C., Oct. 16, 2014 -- TSMC today announced consolidated revenue of NT$209.05 billion, net income of NT$76.34 billion, and diluted earnings per share of NT$2.94 (US$0.49 per ADR unit) for the third quarter ended September 30, 2014.

Year-over-year, third quarter revenue increased 28.6% while net income and diluted EPS both increased 46.9%. Compared to second quarter 2014, third quarter results represent a 14.2% increase in revenue, and a 27.9% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, third quarter revenue increased 14.7% from the previous quarter and increased 28.1% year-over-year.

Gross margin for the quarter was 50.5%, operating margin was 40.4%, and net profit margin was 36.5%.

Shipments of 20-nanometer process technology accounted for 9% of total wafer revenues. 28-nanometer accounted for 34% of total wafer revenues. Advanced technologies, defined as 28-nanometer and 20-nanometer technologies, accounted for 43% of total wafer revenues.

• Revenue is expected to be between NT$217 billion and NT$220 billion;
• Gross profit margin is expected to be between 48% and 50%;
• Operating profit margin is expected to be between 38% and 40%.

TSMC's 2014 Third Quarter Consolidated results:
(Unit: NT$ million, except for EPS)

	3Q14 Amount a	3Q13 Amount	YoY Inc. (Dec.) %	2Q14 Amount	QoQ Inc. (Dec.) %
Net Sales	209,049	162,577	28.6	183,021	14.2
Gross profit	105,578	78,891	33.8	91,193	15.8
Income from operations	84,432	59,618	41.6	70,714	19.4
Income before tax	85,381	59,349	43.9	74,098	15.2
Net income	76,335	51,952	46.9	59,702	27.9
EPS (NTS)	2.94b	2.00c	46.9	2.30b	27.9

a: 3Q2014 figures have not bee approved by Board of Directors
b: Based on 25,930 million weighted average outstanding shares
b: Based on 25,929 million weighted average outstanding shares