TSMC sees its revenues drop YoY during second quarter

TSMC recorded consolidated revenue of NTD 213.86 billion (USD 7.06 billion), net income of NTD 66.27 billion (USD 2.18 billion) for the second quarter ended June 30, 2017. Compared to first quarter 2017, second quarter results represent an 8.6% decrease in revenue, and a 24.4% decrease in net income. In US dollars, second quarter revenue was 7.06 billion, which decreased 5.9% from the previous quarter but increased 3.2% year-over-year. The NT dollar exchange rate against the US dollar in the second quarter 2017 has appreciated 2.8% from 1Q’17 and 6.6% from 2Q’16. Gross margin for the quarter was 50.8%, operating margin was 38.9%, and net profit margin was 31.0%. “In addition to supply chain inventory management and mobile product seasonality, the continuing unfavorable exchange rate further impacted our second quarter business,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “Moving into third quarter, we expect our business will benefit from new product launches of TSMC 10-nanometer mobile devices.”