02.07.2001
2001 TSMC revenue double-digit growth, despite 25% decline in 1Q01

• TSMC (2330 'Tai Ji Dian') announced stellar 2000 results with net income rising 158% YoY to NT$65.11b, yielding a ROE of 24%, net margin of 40%, and an EPS of NT$5.7.

• The company gave a pessimistic forecast for 1Q01 revenue to see a sequential decline of 25%, caused by a 29% decline on wafer shipment, a large reduction in capacity utilization rate of 70% from 4Q00's 105%, and a QoQ 7% increase in ASP from the change in technology mix.

• Operating margin in 1Q01 is expected to be 26-30%.

• The company sees a bottoming-out of utilization in Mar/Apr 2001, with order cancellation having peaked in Dec. 2000 and orders continue to be slow. The company expects revenue to see double digit growth in 2001.

• Our new 1Q01 EPS is NT$0.82. We are currently updating our full year financial estimates.

LindaLiu@Primasia.com +886-[0]2-2547-8867