TSMC shines in 4Q05, spending more in 2006

January 26, 2006 – Taiwan foundry TSMC posted 4Q05 results that were better than expected: revenues of $2.54 billion, up 17% sequentially and 27% year-on-year, and a profit of $1.06 billion, up 38% sequentially and 58% from 4Q04.

By technology, 17% of sales were for 90nm process technologies, vs. 10% in the prior quarter and just 1% a year ago. Utilization rates were calculated at 104%, up eight percentage points. Managed capacity in 4Q was 1629 wafers (200mm equivalent), up 5.1% sequentially. Most of the $396 million in capex during 4Q05 (just 15% of the year’s total capex of $2.5 billion) went to 300mm equipment.

Sales for all of 2005 were $8.29 billion, a 3.4% increase from 2004, with net income rising 1.4% to $2.93 billion. Installed capacity for 2005 rose 24% year-on-year to 5.96 million wafers.

TSMC said 1Q06 would be better than seasonally expected, with revenues of $2.29-$2.40 billion, but currency depreciations could shave off more than 4% from revenues. The company expects just a 1.2% increase in managed capacity in 1Q06. TSMC has budgeted $2.6-$2.8 billion in capital expenditures for 2006, up slightly from what it spent in 2005.


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