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.

“Despite a less favorable exchange rate than our forecast, third quarter revenue surpassed the high-end of our guidance given three months ago, mainly due to strong demand in overall smartphone market,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “Based on our current business outlook and exchange rate assumption of 1 US dollar to 31.50 NT dollars, management expects overall performance for fourth quarter 2016 to be as follows”:

• Revenue is expected to be between NT$255 billion and NT$258 billion;

• Gross profit margin is expected to be between 50.5% and 52.5%;

• Operating profit margin is expected to be between 40% and 42%.

The management further expects the 2016 capital budget to be slightly above US$9.5 billion.