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TSMC profits rise 0.7% on year in 4Q18
Source: DIGITIMES   Editor: Amanda   Update Time :2019/1/17 17:49:16

TSMC has reported its fourth-quarter 2018 net income increased 0.7% on year and 12.3% sequentially to NT$99.98 billion (US$3.24 billion) on revenues of NT$289.77 billion for the period, which rose 4.4% on year and 11.3% sequentially.

The foundry house said its diluted earnings per share for the quarter came to NT$3.86 (US$0.63 per ADR unit), rising 0.7 on year and 12.3% sequentially.

All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, fourth-quarter 2018 revenues arrived at US$9.4 billion, which increased 10.7% from the previous quarter and 2.0% year-over-year.

TSMC saw its gross margin and operating margin climb 0.3pp and 0.4pp, respectively, on quarter to 47.7% and 37% in the fourth quarter. The results compared to the same period in 2017 represented decreases of 2.3pp in gross margin and 2.2pp in operating margin.

TSMC saw its 7nm chip shipments account for 23% of its total wafer revenues in the fourth quarter, up from 11% in the prior quarter. Meanwhile, shipments of 10nm and 16/20nm process technologies as a proportion of company wafer revenues came to 6% and 21%, respectively. Advanced technologies, defined as 28nm and more advanced technologies, accounted for 67% of TSMC's total wafer revenues.

Sales generated from the communication segment climbed as a proportion of TSMC's total wafer revenues to 64% in the fourth quarter from 56% in the third, the company disclosed. Sales from the computer, consumer and industrial/standard sectors all experienced sequential declines in the fourth quarter.

For all of 2018, TSMC reported net profits of NT$351.13 billion on revenues of NT$1.03 trillion. EPS for the year arrived at NT$13.54 compared with NT$13.23 in 2017.

TSMC saw sales generated from 7nm process technology account for 9% of company wafer revenues in 2018, followed by sales of 16/20nm chips with 23% and those of 28nm chips with 20%. Meanwhile, China as a proportion of company revenues climbed to 17% in 2018 from 11% a year earlier, while North America remained the foundry's largest market with a 62% revenue share.

"Our fourth quarter business benefited from the strong demand for our 7 nanometer technology covering both mobile and high performance computing applications," said Lora Ho, SVP and CFO of TSMC. "Moving into first quarter 2019, we anticipate our business will be dampened by the overall weakening of the macroeconomic outlook, mobile product seasonality, and high levels of inventory in the semiconductor supply chain."

TSMC expects to post revenues of between US$7.3 billion and US$7.4 billion in the first quarter of 2019, down from US$9.4 billion in the prior quarter. Gross margin and operating margin are estimated at 43-45% and 31-33%, respectively.

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