TSMC Reports Third Quarter EPS of NT$3.47

Hsinchu, Taiwan, R.O.C., Oct 19, 2017 -- TSMC today announced consolidated revenue of NT$252.11 billion, net income of NT$89.93 billion, and diluted earnings per share of NT$3.47 (US$0.57 per ADR unit) for the third quarter ended September 30, 2017.

Year-over-year, third quarter revenue decreased 3.2% while net income and diluted EPS both decreased 7.1%. Compared to second quarter 2017, third quarter results represented a 17.9% increase in revenue and a 35.7% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, third quarter revenue was $8.32 billion, which increased 17.9% from the previous quarter and increased 1.5% year-over-year.

Gross margin for the quarter was 49.9%, operating margin was 38.9%, and net profit margin was 35.7%.

In the third quarter, shipments of 10-nanometer accounted for 10% of total wafer revenue; 16/20-nanometer process technology accounted for 24% of total wafer revenue; and advanced technologies, defined as 28-nanometer and more advanced technologies, accounted for 57% of total wafer revenue.

TSMC's 2017 Third Quarter Consolidated results:
(Unit: NT$ million, except for EPS)

	3Q17 Amount a	3Q16 Amount	YoY Inc. (Dec.) %	2Q17 Amount	QoQ Inc. (Dec.) %
Net Sales	252,107	260,406	(3.2)	213,856	17.9
Gross profit	125,880	132,051	(4.7)	108,708	15.8
Income from operations	98,056	106,263	(7.7)	83,256	17.8
Income before tax	100,518	108,250	(7.1)	86,118	16.7
Net income	89,925	96,759	(7.1)	66,271	35.7
EPS (NTS)	3.47b	3.73b	(7.1)	2.56b	35.7

^a: 3Q2017 figures have not bee approved by Board of Directors
^b: Based on 25,930 million weighted average outstanding shares