TSMC Reports Third Quarter EPS of NT$3.73

Hsinchu, Taiwan, R.O.C., Oct 13, 2016 -- TSMC today announced consolidated revenue of NT$260.41 billion, net income of NT$96.76 billion, and diluted earnings per share of NT$3.73 (US$0.59 per ADR unit) for the third quarter ended September 30, 2016.

Year-over-year, third quarter revenue increased 22.5% while net income and diluted EPS both increased 28.4%. Compared to second quarter 2016, third quarter results represent a 17.4% increase in revenue, and a 33.4% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, third quarter revenue was $8.20 billion, which increased 19.8% from the previous quarter and 23.0% year-over-year.

Gross margin for the quarter was 50.7%, operating margin was 40.8%, and net profit margin was 37.2%.

Shipments of 16/20-nanometer accounted for 31% of wafer revenues, and 28-nanometer process technology accounted for 24% of total wafer revenues. Advanced technologies, defined as 28-nanometer and more advanced technologies, accounted for 55% of total wafer revenues.

TSMC's 2016 Third Quarter Consolidated results:
(Unit: NT$ million, except for EPS)

	3Q16 Amount a	3Q15 Amount	YoY Inc. (Dec.) %	2Q16 Amount	QoQ Inc. (Dec.) %
Net Sales	260,406	212,505	22.5	221,810	17.4
Gross profit	132,051	102,336	29.0	114,334	15.5
Income from operations	106,263	78,389	35.6	91,321	16.4
Income before tax	108,250	83,394	29.8	93,406	15.9
Net income	96,759	75,330	28.4	72,506	33.4
EPS (NTS)	3.73b	2.91b	28.4	2.80b	33.4

^a: 3Q2016 figures have not bee approved by Board of Directors
^b: Based on 25,930 million weighted average outstanding shares