TSMC Q1 profit beats expectations
Taiwan News, Staff Writer
2014-04-17 05:02 PM

TSMC (2330), the world’s largest contract chip maker, Thursday announced consolidated revenue of NT$148.22 billion, net income of NT$47.87 billion, and diluted earnings per share of NT$1.85 for the first quarter ended March 31, 2014. TSMC’s Q1 net profit exceeds analysts' estimates as demand for more powerful microprocessors continued growing, and the A8 chips is expected to ship to Apple Inc. starting from 2nd or 3rd quarter.

The first quarter revenue increased 11.6 percent year-over-year while net income and diluted EPS both increased 21 percent, growing 1.7 percent in revenue and 6.8 percent in net income from previous quarter (Q4 2013).

Gross margin for the quarter was 47.5 percent, operating margin was 35.4 percent, and net profit margin was 32.3 percent.

According to TSMC, the shipments of 28-nanometer process technology accounted for 34 percent of total wafer revenues. 40/45-nanometer accounted for 21 percent of total wafer revenues. Advanced technologies, defined as 40/45-nanometers and more advanced technologies, accounted for 55 percent of total wafer revenues.

Chief Financial Officer of TSMC said in a statement that the company saw much stronger demand for wafers across all segments, even higher than initially predicted in January. “IC companies have turned more positive on their 2014 outlook. Meanwhile, the low level of supply chain inventory has prompted the IC companies to begin restocking inventory actively. Also, thanks to the better performance and higher yield and reliability of our advanced technologies, we saw a strong rebound of demand for our leading nodes extending beyond the first quarter,” CFO Lora Ho said.

TSMC share price dropped NT$1 to NT$120 on Thursday before the company issued the Q1 earning report.

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