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TSMC sets new records for quarterly revenue, annual EPS

2018/01/18 19:19:22

Taipei, Jan. 18 (CNA) Taiwan Semiconductor Manufacturing Corporation (TSMC), the world's No.1 chip foundry, reported record quarterly revenue and annual earnings per share (EPS) in 2017 on Thursday, thanks to strong global demand for smartphones and computers.

At an investors' conference, the company announced it set a new quarterly revenue record of NT$277.57 billion (US$9.38 billion), a 10.1 percent increase from Q3, and an all-time high annual EPS of NT$13.23.

Driven by orders for processing units from Apple Inc. over the past year, the ratio of TSMC chips made using the 10 nanometer process surged to 25 percent of revenue in Q4, while those built utilizing 16 and 20 nanometer processes made up 20 percent each, according to the company.

In Q4, chips made using the advanced under 28 nanometer process accounted for 63 percent of revenue.

The company also registered a gross margin of 50 percent in Q4, up 0.1 percentage from the previous quarter. However, the strong appreciation of the Taiwan dollar meant that after-tax net profit fell 2 percentage points to NT$99.286 billion, a quarterly increase of 10.4 percent, which translated into an EPS of NT$3.83.

TSMC's 2017 revenue totaled NT$977.447 billion, a year-on-year increase of 3.1 percent, while after-tax net profit surged by 2.7 percent to NT$343.111 billion, both of which are all-time highs.

Speaking at the conference, TSMC Chairman Morris Chang (張忠謀) said high-speeding computing, Internet of Things and automobile electronics will be the main drivers of the company's earnings in 2018.

He forecast that the global semiconductor market will grow 6-8 percent this year, while the foundry industry will expand 9-10 percent, which is expected to boost TSMC's 2018 revenue by 15-20 percent in U.S. dollar terms.

Chang, who has announced he will retire in June this year, also bid farewell to attendees who gave him a round of enthusiastic applause in recognition of his invaluable contribution to TSMC over the past 20 years.

(By C.C. Chang and Flor Wang)