Hsinchu, Taiwan, R.O.C., January 17, 2013 -- TSMC today announced consolidated revenue of NT$131.31 billion, net income of NT$41.57 billion, and diluted earnings per share of NT$1.61 (US$0.28 per ADR unit) for the fourth quarter ended December 31, 2012.

Year-over-year, fourth quarter revenue increased 25.4% while net income and diluted EPS increased 31.6% and 31.8%, respectively. Compared to third quarter of 2012, fourth quarter of 2012 results represent a 7.1% decrease in revenue, a 15.7% decrease in net income, and a 15.6% decrease in diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis.

In US dollars, fourth quarter revenue decreased 4.9% from the previous quarter and increased 30.2% year-over-year.

Gross margin for the quarter was 47.2%, operating margin was 35.2%, and net margin was 31.7%.

Shipments of 28-nanometer process technology reached 22% of total wafer revenues. 40-nanometer accounted for 22% of total wafer revenues, and 65-nanometer was 19%. These advanced technologies accounted for 63% of total wafer revenues.

"In the fourth quarter, demand for our products was higher than we expected three months ago, resulting in above-guidance revenue and profit margins," said Lora Ho, SVP and Chief Financial Officer of TSMC. "We now expect the supply chain inventory DOI to decline only slightly in the first quarter, and our revenue will also decline only slightly in the first quarter from the previous quarter. Based on our current business outlook and exchange rate assumption of 1 US dollar to 28.90 NT dollars, management expects overall performance for first quarter 2013 to be as follows":

• Revenue is expected to be between NT$127 billion and NT$129 billion;

• Gross profit margin is expected to be between 43.5% and 45.5%;

• Operating profit margin is expected to be between 31.5% and 33.5%.

TSMC further expects the capital expenditures for 2013 to be about US$9 billion.