TSMC Reports First Quarter EPS of NT$2.50

Hsinchu, Taiwan, R.O.C., April 14, 2016 - TSMC today announced consolidated revenue of NT$203.50 billion, net income of NT$64.78 billion, and diluted earnings per share of NT$2.50 (US$0.38 per ADR unit) for the first quarter ended March 31, 2016.

Year-over-year, first quarter revenue decreased 8.3% while net income and diluted EPS both decreased 18.0%. Compared to fourth quarter 2015, first quarter results represent essentially flat revenue, and an 11.1% decrease in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, first quarter revenue was $6.14 billion, which decreased 1.6% from previous quarter and decreased 12.8% year-over-year.

Gross margin for the quarter was 44.9%, operating margin was 34.6%, and net profit margin was 31.8%. The February 6, 2016 earthquake negatively impacted TSMC’s gross margin by 2.2 percentage points and operating margin by 2.4 percentage points.

Shipments of 16/20-nanometer accounted for 23% of wafer revenues, and 28-nanometer process technology accounted for 30% of total wafer revenues. Advanced technologies, defined as 28-nanometer and more advanced technologies, accounted for 53% of total wafer revenues.

TSMC's 2015 fourth Quarter Consolidated results:
(Unit: NT$ million, except for EPS)

	1Q15 Amount a	4Q15 Amount	YoY Inc. (Dec.) %	4Q15 Amount	QoQ Inc. (Dec.) %
Net Sales	203,495	222,034	(8.3)	203,518	(0.0)
Gross profit	91,338	109,429	(16.5)	98,925	(7.7)
Income from operations	70,467	86,626	(18.7)	77,964	(9.6)
Income before tax	72,256	88,259	(18.1)	80,644	(10.4)
Net income	64,782	78,990	(18.0)	72,837	(11.1)
EPS (NTS)	2.50b	3.05b	(18.0)	2.81b	(11.1)

^a: 1Q2016 figures have not bee approved by Board of Directors
^b: Based on 25,930 million weighted average outstanding shares

About TSMC

TSMC is the world’s largest dedicated semiconductor foundry, providing the industry’s leading process technology and the foundry’s largest portfolio of process-proven libraries, IPs, design tools and reference flows. The Company’s owned capacity in 2016 is expected to reach about 10 million (12-inch equivalent) wafers, including capacity from three advanced 12-inch GIGAFAB™ facilities, four eight-inch fabs, one six-inch fab, as well as TSMC’s wholly owned subsidiaries, WaferTech and TSMC China. TSMC is the first foundry to provide both 20nm and 16nm production capabilities. Its corporate headquarters are in Hsinchu, Taiwan.