TSMC net profit of 1.4 billion U.S. dollars in the fourth quarter

From the latest news from foreign media, the world’s largest chip foundry manufacturer and Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) recently announced the company’s fourth quarter 2010 financial report, which shows that TSMC’s global chip business continues to climb. The performance of the company has also been growing very well. TSMC’s net profit for the fourth quarter reached US$1.4 billion, a year-on-year increase of 25%. This level of net profit surpassed analysts’ expectations.

TSMC’s financial report shows that in the fourth quarter ended December 31, 2010, TSMC had achieved a net profit of NT$40.72 billion, a contract of US$1.4 billion, compared to a net profit of NT$32.7 billion in the fourth quarter of 2009. At the level, TSMC has increased its net profit by 25% year-on-year, which is significantly higher than analysts’ average expectations. Market analysts previously believed that TSMC’s net profit level in the fourth quarter of 2010 was NT$38.5 billion.

According to industry sources, the outstanding performance of TSMC in the fourth quarter of 2010 was mainly due to the increase in demand for chips from tablet PCs, computer products, smart phone products, and consumer electronics. Currently, users’ demand for these products has started to increase, and manufacturers have also needed With more chips to increase production capacity, TSMC customers such as Nvidia and Qualcomm all achieved more significant business growth during the same period. This is also a positive boost and promotion for TSMC.

Ricky Liu, an analyst at KGI Securities in Taipei, said that graphics chips and smart phones are the biggest drivers. The current market demand for smart phones is quite large, which makes TSMC's business in the fourth quarter. There was a fairly good foundation for the expansion. In the general consumer market, the year-on-year growth of TSMC’s performance was also expected.

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