TSMC gives brighter outlook as profit rises

TSMC gives brighter outlook as profit rises

LONDON – Leading chip foundry Taiwan Semiconductor Manufacturing Co. Ltd. said that strong demand gave rise to above-guidance revenue and profit margins in the fourth quarter 2012 financial results. The company said that because of this it has raised its expectations for the first quarter of 2013.

TSMC (Hsinchu, Taiwan) achieved consolidated revenue of NT$131.31 billion (about $4.53 billion), net income of NT$41.57 billion (about $1.44 billion) for the fourth quarter ended Dec. 31, 2012.

Compared to third quarter of 2012, fourth quarter of 2012 results represent a 7.1 percent decrease in revenue, a 15.7 percent decrease in net income. However, a falling back in the fourth quarter is not unusual and TSMC's results were ahead of previous guidance. Year-over-year, fourth quarter revenue increased 25.4 percent while net income increased 31.6 percent.

In US dollars, fourth quarter revenue decreased 4.9 percent from the previous quarter and increased 30.2 percent year-over-year.

Gross margin for the quarter was 47.2 percent, operating margin was 35.2 percent, and net margin was 31.7 percent.

In 4Q12 shipments of 28-nm, 40-nm and 65-nm wafers were 22, 22 and 19 percent of total wafer revenues respectively, TSMC said. These three most advanced technologies accounted for 63 percent of total wafer revenues.

"In the fourth quarter, demand for our products was higher than we expected three months ago, resulting in above-guidance revenue and profit margins," said Lora Ho, chief financial officer of TSMC, in a statement. Ho said TSMC now expected revenue to only decline slightly in 1Q13 compared with 4Q12.

As a result the company issued guidance that 1Q13 revenue is expected to be between NT$127 billion and NT$129 billion.


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