TSMC posts sec­ond-high­est quar­terly profit in Q1

The China Post - - TAIWAN BUSINESS -

Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co. (TSMC, ) on Thurs­day posted its sec­ond-high­est profit in the first quar­ter of 2015, as the man­u­fac­turer of chips for Ap­ple Inc.’s iPhones rode on con­tin­ued strong de­mand from smartphones.

The world’s largest con­tract chip man­u­fac­turer re­ported net profit of NT$78.99 bil­lion (US$2.53 bil­lion) for the Jan­uary-March pe­riod, down 1.2 per­cent from the pre­vi­ous three months but up 65 per­cent from the first quar­ter of 2014.

It was the Hs­inchu-based com­pany’s sec­ond-high­est quar­terly net profit af­ter a record NT$79.99 bil­lion in the fourth quar­ter of 2014. First-quar­ter rev­enue in­creased 49.8 per­cent year-on-year to NT$222.03 bil­lion with earn­ings per share of NT$3.05, com­pared with the EPS of NT$3.08 in the fourth quar­ter.

Ship­ments of 20-nanome­ter process tech­nol­ogy ac­counted for 16 per­cent of TSMC’s to­tal wafer rev­enues in the three months end­ing on March 31, with 28-nanome­ter mak­ing up 30 per­cent, TSMC said in a state­ment.

TSMC shares edged up 2.8 per­cent to NT$147 be­fore the earn­ings re­lease, higher than the 1.22 per­cent rise in the weighted Tai­wan Stock Ex­change in­dex.

TSMC Scales Back Cap­i­tal

Spend­ing for 2015

TSMC cut its an­nual cap­i­tal ex- pen­di­ture tar­get by NT$1 bil­lion (US$32 mil­lion) Thurs­day as the world’s largest con­tract chip man­u­fac­turer con­tin­ues to im­prove its cap­i­tal ef­fi­ciency.

The com­pany’s 2015 cap­i­tal ex­pen­di­ture is ex­pected to be be­tween US$10.5 bil­lion and US$11 bil­lion, com­pared with a range of be­tween US$11.5 bil­lion and US$12 bil­lion it set in Jan­uary, TSMC Chief Fi­nan­cial Of­fi­cer Lora Ho ( ) told an in­vestors’ con­fer­ence.

How­ever, the re­duc­tion in cap­i­tal ex­pen­di­ture will not af­fect TSMC’s over­all ca­pac­ity planned for 2015, as the com­pany will con­vert part of its 20-nanome­ter ca­pac­ity to more ad­vanced chip-mak­ing tech­nolo­gies, she added.

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