Taiwan Semiconductor Manufacturing posts flat net profit in Q3

Nov. 3, 2008 (China Knowledge) - Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract manufacturer of microchips by revenue, announced that its net profit for the third quarter this year went up slightly by 0.7% to NTD 30.57 billion, compared with NTD 30.37 billion a year earlier, hit by a slowing global economy that is curbing spending on technology products.

However, the Q3 net profit represents a 6% increase over the previous quarter.

The company said in a filling with the Taiwan Stock Exchange that its revenue during the Jul. to Sep. period rose 4.5% to NTD 92.98 billion from NTD 88.96 billion in the same period last year. Earnings per share stood at NTD 1.18, compared with NTD 1.13 a year earlier.

Given weakening sales of new computers, mobile phones and flat-screen televisions that require chips, TSMC has expected to see sales and wafer shipments decline in the fourth quarter. Operating revenue for the next quarter is expected to be NTD 69 billion - NTD 71 billion, with gross profit margin to stand at 34% - 36%.