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Emerald Group Publishing Limited

## TSMC reports EPS of NT$5.18 for 2011 Article Type: Industry news From: Microelectronics International, Volume 29, Issue 2 TSMC has reported NT$134.2 billion (US$4.58 billion) in net profits for 2011, down 17.1 percent on year but staying at a high level as compared to 2009 and before. EPS came to NT$5.18.

Consolidated revenues grew 1.8 percent to NT$427.08 billion in 2011. When denoted in US dollars, TSMC’s sales for the year were US$14.54 billion, representing a 9.2 percent increase compared to 2010. Gross margin slid to 45.4 percent in 2011, from 49.4 percent in 2010.

For the fourth quarter of 2011, TSMC posted net profits of NT$31.58 billion on consolidated revenues of NT$104.7 billion. Earnings were up 3.9 percent from the prior quarter but down 22.5 percent from a year ago, while sales slid 1.7 percent on quarter and 4.9 percent on year but came in line with the company’s guidance.

In US dollars, TSMC revealed its fourth quarter sales decreased 5.4 percent sequentially and 4.5 percent on year. Gross margin for the quarter was 44.7 percent, up 2.7pp on quarter.

In the fourth quarter, TSMC saw 28 nm process technology account for 2 percent of total wafer revenues, while 40 and 65 nm processes contributed 27 and 30 percent, respectively. These advanced technologies accounted for a combined 59 percent of total wafer revenues in the quarter, compared to 54 percent in the third quarter and 52 percent in fourth quarter 2010.

Sales generated from the communication sector increased 6 percent sequentially in the fourth quarter, while the computer and consumer segments decreased 13 and 10 percent, respectively. Sales from the industrial segment showed a larger 14 percent decline sequentially in the fourth quarter.

Looking forward, TSMC expects its consolidated revenues to be between NT$103 billion and NT$105 billion in the first quarter of 2012, with gross margin and operating margin estimated at 42.5-44.5 percent and 28.5-30.5 percent, respectively. “Although the outlook of the global economy remains uncertain, we expect the demand for our wafers to be stronger than seasonal for the first quarter,” Lora Ho, SVP and CFO of TSMC, said in a statement.

In additional news, TSMC has budgeted US$6 billion in capex for 2012. It allocated a record US$7.3 billion in capex in 2011.