Taipei, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, said Thursday that its net profit for the second quarter of this year fell more than 19 percent from a quarter earlier, with market analysts attributing the decline to the slow-season effect.
In an investor conference held after the local stock market closed, TSMC said its net profit totaled NT$72.29 billion (US$2.36 billion) for the April-June period, down 19.5 percent from the first quarter. The second-quarter earnings, however, rose 9.1 percent from a year earlier.
Its earnings per share for the second quarter stood at NT$2.79, down from NT$3.46 in the first quarter but up from NT$2.56 seen over the same period of last year, according to data released by TSMC.
"The results were in line with market expectations," Ta Ching Securities analyst Andy Hsu said. "These figures were evidence of a slow season for the global semiconductor industry."
TSMC said its second-quarter gross margin, which reflects the difference between revenue and cost of goods sold, fell 2.5 percentage points from a quarter earlier to 47.8 percent, which was within the company's earlier forecast of 47 percent-49 percent.
The chipmaker said its second-quarter operating margin stood at 36.2 percent, down from the first quarter's 39 percent, but the latest figure came within the forecast of 35 percent-37 percent.
TSMC's consolidated sales for the second quarter fell 6 percent from the first quarter to NT$233.28 billion, with sales generated from chips used in communications and industrial items down 14 percent and 1 percent, respectively.
However, revenue generated by chips used in computers and consumer products was up 34 percent and 23 percent, respectively, the chipmaker said.
Source: Focus Taiwan News Channel