TSMC Reports First Quarter EPS of NT$0.06

HSIN-CHU, Taiwan, April 30 /PRNewswire-Asia-FirstCall/ -- TSMC today announced consolidated revenue of NT$39.5 billion, net income of NT$1.56 billion, and diluted earnings per share of NT$0.06 (US$0.01 per ADS unit) for the first quarter ended March 31, 2009.

Year-over-year, first quarter revenue decreased 54.8% while net income and diluted EPS decreased 94.5% and 94.4%, respectively. Compared to fourth quarter of 2008, first quarter results represent a 38.8% decrease in revenue, and a decrease of 87.5% in net income and in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

As a result of deepening economic recession worldwide and customers' inventory adjustment, first quarter saw a sharp decline in the demand for semiconductors across all applications. Gross margin for the quarter was 18.9%, operating margin was 3.1%, and net margin was 3.9%.

Advanced process technologies (0.13-micron and below) accounted for 65% of wafer revenues with 90-nanometer process technology accounting for 25%, 65- nanometer 23%, and 45/40 nanometer reaching 1% of total wafer sales.

"Although global economic conditions continue to decline, a few signs of economic stabilization began to emerge. Consumption of electronics in the last two quarters exceeded production and surpassed semiconductor companies' low expectations. Meanwhile, companies began to launch new products, while China started implementing various stimulus programs. The dynamic has resulted in a substantial increase in order levels. After sharp declines in two consecutive quarters, TSMC is seeing a strong rebound in its second quarter business and believes overall business in the second half of 2009 will be considerably better than that of the first half," said Lora Ho, VP and Chief Financial Officer of TSMC. "Based on our current business outlook, management expects overall performance for second quarter 2009 to be as follows":

    -- Revenue is expected to be between NT$71 billion and NT$74 billion;
    -- Gross profit margin is expected to be between 43.5% and 45.5%;
    -- Operating profit margin is expected to be between 30.5% and 32.5%.

The management further expects that 2009 capital expenditure will be around US$1.5 billion.

Conference Call & Webcast Notice:

TSMC's quarterly review conference call will be held at 8 a.m. Eastern Time (8 p.m. Taiwan Time) on Thursday, April 30, 2009. The conference call will also be webcast live on the Internet. Investors wishing to access the live webcast should visit TSMC's web site at http://www.tsmc.com at least 15 minutes prior to the broadcast. Instructions will be provided on the web site to facilitate the download and installation of necessary audio applications. Investors without Internet access may listen to the conference call, in listen-only mode, by dialing 1-617-213-8837 in the U.S., 852-3002-1672 in Hong Kong, and 44-207-365-8426 in the U.K. (Password: TSMC). An archived version of the webcast will be available on TSMC's web site for six months following the Company's quarterly review conference call and webcast.


TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology and the foundry's largest portfolio of process-proven libraries, IPs, design tools and reference flows. The Company's total managed capacity in 2008 exceeded nine million (8-inch equivalent) wafers, including capacity from two advanced 12-inch GIGAFABs(TM), four eight- inch fabs, one six-inch fab, as well as TSMC's wholly owned subsidiaries, WaferTech and TSMC China, and its joint venture fab, SSMC. TSMC is the first foundry to provide 40nm production capabilities. Its corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please visit http://www.tsmc.com .

                  -- Management Report and Tables Follow --

    TSMC 1Q09 Quarterly Management Report April 30, 2009

    Topics in This Report

    -- Revenue Analysis
    -- Profit & Expense Analysis
    -- Financial Condition Review
    -- Cash Flow
    -- CapEx & Capacity
    -- Recap of Recent Important Events & Announcements

    Operating Results Review:


    (Amounts are on consolidated basis
    and are in NT billions except
    otherwise noted)                       1Q09   4Q08   1Q08     QoQ     YoY

    EPS (NT$ per common share)             0.06   0.48   1.08  (87.5%) (94.4%)
        (US$ per ADR unit)                 0.01   0.07   0.17      --      --

    Consolidated Net Sales                39.50  64.56  87.48  (38.8%) (54.8%)
    Gross Profit                           7.48  20.19  38.24  (63.0%) (80.4%)
    Gross Margin                          18.9%  31.3%  43.7%      --      --

    Operating Expense                     (6.27) (8.17) (9.12) (23.3%) (31.2%)
    Operating Income                       1.21  12.02  29.12  (89.9%) (95.8%)
    Operating Margin                       3.1%  18.6%  33.3%      --      --
    Non-Operating Items                   (0.46)  1.07   2.45      --      --

    Net Income                             1.56  12.45  28.14  (87.5%) (94.5%)
    Net Profit Margin                      3.9%  19.3%  32.2%      --      --

    Wafer Shipment (kpcs 8 inch-equiv.)     892  1,532  2,196  (41.8%) (59.4%)

    Note: Total outstanding shares were 25,626mn units on 3/31/09

    Financial Highlights:

    First Quarter 2009

    -- Consolidated net sales were NT$39.50 billion, representing a 38.8%
       sequential decline from 4Q08 and a 54.8% decline compared to 1Q08;
    -- Gross margin was 18.9%, 12.4 percentage points lower than 4Q08 and 24.8
       percentage points lower than 1Q08.
    -- Operating margin was 3.1%, 15.5 percentage points lower than 4Q08 and
       30.2 percentage points lower than 1Q08. Operating expenses were NT$6.27
       billion, NT$1.90 billion lower than the previous quarter.
    -- The combined result from non-operating income and long-term investment
       losses was a loss of NT$0.46 billion, compared to a gain of NT$1.07
       billion in 4Q08 and a gain of NT$2.45 billion in 1Q08;
    -- Consolidated net income attributable to shareholders of the parent
       company was NT$1.56 billion, with net profit margin of 3.9% and diluted
       EPS of  NT$0.06.

        I.  Revenue  Analysis

        I.  Wafer  Sales  Analysis

              By  Application                                            1Q09                4Q08                1Q08
              Computer                                                          26%                  32%                  34%
              Communication                                                46%                  43%                  42%
              Consumer                                                          21%                  19%                  17%
              Industrial/Others                                          7%                    6%                    8%

              By  Technology                                              1Q09                4Q08                1Q08
              45/40nm                                                              1%                    0%                    0%
              65nm                                                                  23%                  27%                  15%
              90nm                                                                  25%                  21%                  28%
              0.11/0.13um                                                    16%                  17%                  20%
              0.15/0.18um                                                    21%                  22%                  23%
              0.25/0.35um                                                    11%                  10%                  10%
              0.50um+                                                              3%                    3%                    4%

              By  Customer  Type                                        1Q09                4Q08                1Q08
              Fabless/System                                              77%                  72%                  71%
              IDM                                                                    23%                  28%                  29%

              By  Geography                                                1Q09                4Q08                1Q08
              North  America                                                68%                  72%                  76%
              Asia  Pacific                                                  14%                  11%                  11%
              China                                                                  3%                    2%                    1%
              Europe                                                              12%                  11%                    9%
              Japan                                                                  3%                    4%                    3%


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