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Hsinchu, Taiwan, R.O.C., January 14, 2021[/span][span xml
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– TSMC [/span](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.
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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.[/span]
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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.[/span]
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Gross margin for the quarter was 54.0%, operating margin was 43.5%, and net profit margin was 39.5%.[/span]
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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.[/span]
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“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.”[/span]
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Based on the Company’s current business outlook, management expects the overall performance for first quarter 2021 to be as follows

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Revenue is expected to be between US$12.7 billion and US$13.0 billion;[/span]
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And, based on the exchange rate assumption of 1 US dollar to 27.95 NT dollars,[/span]
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Gross profit margin is expected to be between 50.5% and 52.5%;[/span]
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Operating profit margin is expected to be between 39.5% and 41.5%.[/span]
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The management further expects the 2021 capital budget to be between US$25 billion and US$28 billion.[/span]
