TSMC posts second-highest quarterly profit in Q1
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.