Hsinchu, Taiwan, R.O.C., January 14, 2021 – TSMC (TWSE: 2330, NYSE: TSM) today announced consolidated revenue of NT$361.53 billion, net income of NT$142.77 billion, and diluted earnings per share of NT$5.51 (US$0.97 per ADR unit) for the fourth quarter ended December 31, 2020.
Year-over-year, fourth quarter revenue increased 14.0% while net income and diluted EPS both increased 23.0%. Compared to third quarter 2020, fourth quarter results represented a 1.4% increase in revenue and a 4.0% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.
In US dollars, fourth quarter revenue was $12.68 billion, which increased 22.0% year-over-year and increased 4.4% from the previous quarter.
Gross margin for the quarter was 54.0%, operating margin was 43.5%, and net profit margin was 39.5%.
In the fourth quarter, shipments of 5-nanometer accounted for 20% of total wafer revenue; 7-nanometer and 16-nanometer accounted for 29% and 13% respectively. Advanced technologies, defined as 16-nanometer and more advanced technologies, accounted for 62% of total wafer revenue.
“Our fourth quarter business was supported by strong demand for our industry-leading 5-nanometer technology, driven by 5G smartphone launches and HPC-related applications,” said Wendell Huang, VP and Chief Financial Officer of TSMC. “Moving into first quarter 2021, we expect our business to be supported by HPC-related demand, recovery in the automotive segment, and a milder smartphone seasonality than in recent years.”
Based on the Company’s current business outlook, management expects the overall performance for first quarter 2021 to be as follows:
- Revenue is expected to be between US$12.7 billion and US$13.0 billion;
And, based on the exchange rate assumption of 1 US dollar to 27.95 NT dollars,
- Gross profit margin is expected to be between 50.5% and 52.5%;
- Operating profit margin is expected to be between 39.5% and 41.5%.
The management further expects the 2021 capital budget to be between US$25 billion and US$28 billion.
TSMC's 2020 fourth Quarter Consolidated results:
(Unit: NT$ million, except for EPS)
| ||4Q20 Amount a ||4Q19 |
|YoY Inc. (Dec.) % ||3Q20 Amount ||QoQ Inc. (Dec.) % |
|Net Sales ||361,533 ||317,237 ||14.0 ||356,426 ||1.4 |
|Gross profit ||195,236 ||159,202 ||22.6 ||190,494 ||2.5 |
|Income from operations ||157,120 ||124,244 ||26.5 ||150,048 ||4.7 |
|Income before tax ||161,107 ||128,782 ||25.1 ||155,124 ||3.9 |
|Net income ||142,766 ||116,035 ||23.0 ||137,310 ||4.0 |
|EPS (NTS) ||5.51b ||4.47b ||23.0 ||5.30b ||4.0 |
a: 4Q2012 figures have not bee approved by Board of Directors
b: Based on 25,930 million weighted average outstanding shares