Hsinchu, Taiwan, R.O.C., April 18, 2019 -- TSMC today announced consolidated revenue of NT$218.70 billion, net income of NT$61.39 billion, and diluted earnings per share of NT$2.37 (US$0.38 per ADR unit) for the first quarter ended March 31, 2019.

Year-over-year, first quarter revenue decreased 11.8% while net income and diluted EPS both decreased 31.6%. Compared to fourth quarter 2018, first quarter results represented a 24.5% decrease in revenue and a 38.6% decrease in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

In US dollars, first quarter revenue was $7.10 billion, which decreased 16.1% year-over-year and decreased 24.5% from the previous quarter.

Gross margin for the quarter was 41.3%, operating margin was 29.4%, and net profit margin was 28.1%.

In the first quarter, shipments of 7-nanometer accounted for 22% of total wafer revenue and 10-nanometer process technology contributed 4% while 16-nanometer accounted for 16%. Advanced technologies, defined as 16-nanometer and more advanced technologies, accounted for 42% of total wafer revenue.

“In the first quarter, our business was impacted by the overall global economic condition which dampened the end market demand; customer inventory management to digest excess inventory in the semiconductor supply chain; and high-end mobile product seasonality. Meanwhile, the net effect from the photoresist defect material incident also impacted our first quarter revenue by about 3.5 percent,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “While the economic factor and mobile product seasonality are still lingering as we move into second quarter, we believe we may have passed the bottom of the cycle of our business as we are seeing demand stabilizing. Based on our current business outlook, management expects the overall performance for second quarter 2019 to be as follows”:

. Revenue is expected to be between US$7.55 billion and US$7.65 billion;

And, based on the exchange rate assumption of 1 US dollar to 30.85 NT dollars,

. Gross profit margin is expected to be between 43% and 45%;

. Operating profit margin is expected to be between 31% and 33%.



Contacts:

TSMC Spokesperson
Lora Ho
Senior Vice President & Chief Financial Officer & Spokesperson
886-3-5054602

TSMC Acting Spokesperson
Elizabeth Sun
Senior Director, TSMC Corporate Communications Division
886-3-5682085
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