Outlook good, says TSMC

ARPIL 29–TAIPEI, Taiwan— Taiwan Semiconductor Manufacturing Co. say its first-quarter net profit fell 34 percent from last year, but the world’s largest contract chipmaker soundly beat analyst expectations and pointed to a second-quarter pickup in demand.

“TSMC’s revenue has clearly touched bottom in the first quarter of 2003, and the company has seen growth resume in March,” Harvey Chang, TSMC’s senior vice president, said in a statement.

TSMC’s profit was $125 million in the first quarter ended March 31.

That was down from 6.59 billion Taiwan dollars in the prior first quarter – but up 71 percent from 73 million in the fourth quarter.

Earnings per share were roughly $.01 cent, in the first quarter. Net sales rose 10 percent on the year $1.1 billion as wafer shipments grew and demand increased for high-end chips that command better prices.

Revenue from the firm’s 0.13-micron manufacturing technology increased to 11 percent of total revenue last quarter, compared with just 8 percent in the final three months of 2002.

The company also said its capacity utilization rate improved to 67 percent in the first quarter, from 61 percent in the October-December period.


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