TSMC Reports Fourth Quarter EPS of NT$5.51

Hsin­chu, Tai­wan, R.O.C., Janu­ary 14, 2021 – TSMC (TWSE: 2330, NYSE: TSM) today announ­ced con­so­li­da­ted reve­nue of NT$361.53 bil­li­on, net inco­me of NT$142.77 bil­li­on, and diluted ear­nings per share of NT$5.51 (US$0.97 per ADR unit) for the fourth quar­ter ended Decem­ber 31, 2020.

Year-over-year, fourth quar­ter reve­nue increased 14.0% while net inco­me and diluted EPS both increased 23.0%. Com­pared to third quar­ter 2020, fourth quar­ter results repre­sen­ted a 1.4% increase in reve­nue and a 4.0% increase in net inco­me. All figu­res were pre­pared in accordance with TIFRS on a con­so­li­da­ted basis.

In US dol­lars, fourth quar­ter reve­nue was $12.68 bil­li­on, which increased 22.0% year-over-year and increased 4.4% from the pre­vious quarter.

Gross mar­gin for the quar­ter was 54.0%, ope­ra­ting mar­gin was 43.5%, and net pro­fit mar­gin was 39.5%.

In the fourth quar­ter, ship­ments of 5‑nanometer accoun­ted for 20% of total wafer reve­nue; 7‑nanometer and 16-nano­me­ter accoun­ted for 29% and 13% respec­tively. Advan­ced tech­no­lo­gies, defi­ned as 16-nano­me­ter and more advan­ced tech­no­lo­gies, accoun­ted for 62% of total wafer revenue.

Our fourth quar­ter busi­ness was sup­port­ed by strong demand for our indus­try-lea­ding 5‑nanometer tech­no­lo­gy, dri­ven by 5G smart­phone laun­ches and HPC-rela­ted appli­ca­ti­ons,” said Wen­dell Huang, VP and Chief Finan­cial Offi­cer of TSMC. “Moving into first quar­ter 2021, we expect our busi­ness to be sup­port­ed by HPC-rela­ted demand, reco­very in the auto­mo­ti­ve seg­ment, and a mil­der smart­phone sea­so­na­li­ty than in recent years.”

Based on the Company’s cur­rent busi­ness out­look, manage­ment expects the over­all per­for­mance for first quar­ter 2021 to be as follows:

  • Reve­nue is expec­ted to be bet­ween US$12.7 bil­li­on and US$13.0 billion;

And, based on the exch­an­ge rate assump­ti­on of 1 US dol­lar to 27.95 NT dollars,

  • Gross pro­fit mar­gin is expec­ted to be bet­ween 50.5% and 52.5%;
  • Ope­ra­ting pro­fit mar­gin is expec­ted to be bet­ween 39.5% and 41.5%.

The manage­ment fur­ther expects the 2021 capi­tal bud­get to be bet­ween US$25 bil­li­on and US$28 billion.