Taiwan Semiconductor Manufacturing Co., the world's largest contract chip maker by revenue, reported better-than-expected first-quarter net profit as its margins improved.
TSMC also expects steady second-quarter margins and revenue, as a stronger New Taiwan dollar is expected to partially offset a pickup in demand during a typically slow season, Chief Executive Rick Tsai said Tuesday.
TSMC's net profit in the three months ending March 31 rose 49 percent to NT$28.14 billion (US$925.6 million; euro594.9 million), or NT$1.10 a share, from the year-earlier NT$18.84 billion, or NT$0.71 a share.
Revenue in the first quarter rose 34.8 percent to NT$87.48 billion from NT$64.9 billion a year earlier.
Analysts had expected TSMC to outperform rivals United Microelectronics Corp. and Singapore's Chartered Semiconductor Manufacturing Ltd. because of its diversified client base. They said TSMC's competitors likely suffered from seasonal weakness in demand and pricing pressures.
UMC reports first-quarter results Wednesday. Chartered Semiconductor reported a 62 percent drop in first-quarter net profit to US$2.39 million from US$6.33 million, on higher research and development costs and payroll-related expenses.
TSMC expects second-quarter consolidated revenue of between NT$87 billion and NT$89 billion, compared with NT$87.48 billion in the first quarter, Chief Financial Officer Lora Ho said.
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