TSMC's growth slows down

TSMC's consolidated revenue in Q215 amounted to NTD 205.44 billion (EUR 6.08 billion), net income of NTD 79.42 billion (EUR 2.35 billion). Year-over-year, second quarter revenue increased 12.2% while net income increased 33.0%. Compared to first quarter 2015, second quarter results represent a 7.5% decrease in revenue, and a 0.5% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis. Gross margin for the quarter was 48.5%, operating margin was 37.5%, and net profit margin was 38.7%. Shipments of 20-nanometer process technology accounted for 20% of total wafer revenues. 28-nanometer accounted for 27% of total wafer revenues. Advanced technologies, defined as 28-nanometer and 20-nanometer technologies, accounted for 47% of total wafer revenues. “Due to customers’ cautious inventory management and a less favourable exchange rate, our second quarter business had declined but was within our expectation and guidance,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “However, the end market recovery is not as strong as was expected earlier; customers continue to remain cautious in inventory management. Combining these factors with customers’ product transition, demand for TSMC wafers in the third quarter is expected to recover only modestly.”