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TSMC reports earnings decline in Q3 (update)

TSMC reports earnings decline in Q3 (update)

Taipei, Oct. 15 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the world's largest contract chip maker, reported a decrease Thursday in its third-quarter earnings. The Hsinchu-based company posted net income of NT$75.33 billion (US$2.33 billion) for the July-September quarter, a decline of 5.1 percent from the previous quarter and down 1.3 percent from a year earlier, on consolidated revenue of NT$212.51 billion. Its third-quarter earnings per share (EPS) was NT$2.91, in line with analysts' expectations of NT$2.83-NT$2.99, with a gross margin of 48.2 percent and an operating margin of 36.9 percent. Due to the termination of TSMC's solar operation in the third quarter, TSMC incurred a loss of NT$2.8 billion during the three-month period, which had a negative impact on the operating profit margin by about 1.3 percentage points and EPS by about NT$0.08. TSMC's shipments of 16-nanometer and 20-nanometer process chips accounted for 21 percent of its total wafer revenues, and 28-nanometer process chips accounted for 27 percent of the total wafer revenues, the company said. TSMC shares ended up 2.56 percent at NT$140 Thursday in Taipei, the highest in nearly three months, prior to its earnings announcement. TSMC Chief Financial Officer Lora Ho (???) forecast that the company's revenue will drop 4-5 percent sequentially in the fourth quarter to between NT$201 billion and NT$204 billion, due in part to weaker-than-expected end market demand and continued cautious inventory management by TSMC's customers. She projected TSMC's fourth-quarter gross profit margin at between 47.5 percent and 49.5 percent, and its operating profit margin at between 36.5 percent and 38.5 percent. (By Jeffrey Wu)


Updated : 2021-09-22 05:34 GMT+08:00