TSMC Reports Second Quarter EPS of NT$2.57

Hsin­chu, Tai­wan, R.O.C., July 18, 2019 — TSMC today announ­ced con­so­li­da­ted reve­nue of NT$241.00 bil­li­on, net inco­me of NT$66.77 bil­li­on, and diluted ear­nings per share of NT$2.57 (US$0.41 per ADR unit) for the second quar­ter ended June 30, 2019.

Year-over-year, second quar­ter reve­nue increased 3.3% while net inco­me and diluted EPS both decreased 7.6%. Com­pared to first quar­ter 2019, second quar­ter results repre­sen­ted a 10.2% increase in reve­nue and an 8.7% increase in net inco­me. All figu­res were pre­pared in accordance with TIFRS on a con­so­li­da­ted basis.

In US dol­lars, second quar­ter reve­nue was $7.75 bil­li­on, which decreased 1.4% year-over-year and increased 9.2% from the pre­vious quarter.

Gross mar­gin for the quar­ter was 43.0%, ope­ra­ting mar­gin was 31.7%, and net pro­fit mar­gin was 27.7%.

In the second quar­ter, ship­ments of 7‑nanometer accoun­ted for 21% of total wafer reve­nue and 10-nano­me­ter pro­cess tech­no­lo­gy con­tri­bu­ted 3% while 16-nano­me­ter accoun­ted for 23%. Advan­ced tech­no­lo­gies, defi­ned as 16-nano­me­ter and more advan­ced tech­no­lo­gies, accoun­ted for 47% of total wafer revenue.

In the second quar­ter, our busi­ness con­tin­ued to be impac­ted by the soft over­all glo­bal eco­no­mic con­di­ti­on; cus­to­mer inven­to­ry manage­ment; and high-end mobi­le pro­duct sea­so­na­li­ty. But we have also pas­sed the bot­tom of the cycle of our busi­ness and began to see demand increa­ses,” said Lora Ho, SVP and Chief Finan­cial Offi­cer of TSMC. “Dri­ven by new pro­duct laun­ches of pre­mi­um smart­phones; the acce­le­ra­ti­on of 5G deploy­ment; and the incre­asing adop­ti­on of our indus­try-lea­ding 7‑nanometer solu­ti­ons by High Per­for­mance Com­pu­ting appli­ca­ti­ons, we expect our third quar­ter busi­ness to fur­ther improve.

Based on our cur­rent busi­ness out­look, manage­ment expects the over­all per­for­mance for third quar­ter 2019 to be as follows”:

• Reve­nue is expec­ted to be bet­ween US$9.1 bil­li­on and US$9.2 billion;

And based on the exch­an­ge rate assump­ti­on of 1 US dol­lar to 31.0 NT dollars,

• Gross pro­fit mar­gin is expec­ted to be bet­ween 46% and 48%;

• Ope­ra­ting pro­fit mar­gin is expec­ted to be bet­ween 35% and 37%