Taiwan Semiconductor reports 49 percent rise in 1Q profit

TAIPEI — Taiwan Semiconductor Manufacturing Co., the world's largest contract chip maker by revenue, reported better-than-expected first-quarter net profit as its margins improved.

TSMC also expects steady second-quarter margins and revenue, as a stronger New Taiwan dollar is expected to partially offset a pickup in demand during a typically slow season, Chief Executive Rick Tsai said Tuesday.

TSMC's net profit in the three months ended March 31 rose 49 percent to 28.14 billion New Taiwan dollars ($925.6 million), or 1.10 New Taiwan dollars per share, from 18.84 billion, or 0.71 a share, a year earlier.

Revenue in the first quarter rose 34.8 percent to 87.48 billion New Taiwan dollars from 64.9 billion a year earlier.

Analysts had expected TSMC to outperform rivals United Microelectronics Corp. and Singapore's Chartered Semiconductor Manufacturing Ltd. because of its diversified client base. They said TSMC's competitors likely suffered from seasonal weakness in demand and pricing pressures.

UMC reports first-quarter results Wednesday. Chartered Semiconductor reported a 62 percent drop in first-quarter net profit to $2.39 million from $6.33 million on higher research and development costs and payroll-related expenses.

TSMC expects second-quarter consolidated revenue of between 87 billion and 89 billion New Taiwan dollars, compared with 87.48 billion in the first quarter, Chief Financial Officer Lora Ho said.

Back To Top