TSMC Reports Fourth Quarter EPS of NT$4.47

Hsin­chu, Tai­wan, R.O.C., Janu­ary 16, 2020 – TSMC (TWSE: 2330, NYSE: TSM) today announ­ced con­so­li­da­ted reve­nue of NT$317.24 bil­li­on, net inco­me of NT$116.04 bil­li­on, and diluted ear­nings per share of NT$4.47 (US$0.73 per ADR unit) for the fourth quar­ter ended Decem­ber 31, 2019.

Year-over-year, fourth quar­ter reve­nue increased 9.5% while net inco­me and diluted EPS both increased 16.1%. Com­pared to third quar­ter 2019, fourth quar­ter results repre­sen­ted an 8.3% increase in reve­nue and a 14.8% increase in net inco­me. All figu­res were pre­pared in accordance with TIFRS on a con­so­li­da­ted basis.

In US dol­lars, fourth quar­ter reve­nue was $10.39 bil­li­on, which increased 10.6% year-over-year and increased 10.6% from the pre­vious quarter.

Gross mar­gin for the quar­ter was 50.2%, ope­ra­ting mar­gin was 39.2%, and net pro­fit mar­gin was 36.6%.

In the fourth quar­ter, ship­ments of 7‑nanometer accoun­ted for 35% of total wafer reve­nue and 10-nano­me­ter pro­cess tech­no­lo­gy con­tri­bu­ted 1% while 16-nano­me­ter accoun­ted for 20%. Advan­ced tech­no­lo­gies, defi­ned as 16-nano­me­ter and more advan­ced tech­no­lo­gies, accoun­ted for 56% of total wafer revenue.

Our fourth quar­ter busi­ness bene­fi­ted from strong demand for high-end smart­phones, initi­al 5G deploy­ment and high per­for­mance com­pu­ting rela­ted appli­ca­ti­ons using TSMC’s indus­try-lea­ding 7‑nanometer tech­no­lo­gy,” said Wen­dell Huang, VP and Chief Finan­cial Offi­cer of TSMC. “Moving into first quar­ter 2020, despi­te mobi­le pro­duct sea­so­na­li­ty, we anti­ci­pa­te our busi­ness to be sup­port­ed by the con­tin­ued ramp of 5G smart­phones. Based on our cur­rent busi­ness out­look, manage­ment expects the over­all per­for­mance for first quar­ter 2020 to be as follows”:

• Reve­nue is expec­ted to be bet­ween US$10.2 bil­li­on and US$10.3 billion;

And, based on the exch­an­ge rate assump­ti­on of 1 US dol­lar to 29.9 NT dollars,

• Gross pro­fit mar­gin is expec­ted to be bet­ween 48.5% and 50.5%;

• Ope­ra­ting pro­fit mar­gin is expec­ted to be bet­ween 37.5% and 39.5%.

The manage­ment fur­ther expects the 2020 capi­tal bud­get to be bet­ween US$15 bil­li­on and US$16 billion.