TSMC Q1 sales up 14.3% year on year

Consolidated revenue for the world's largest contract chipmaker was NT$105.38billion, while net income and diluted earnings per share were reported as NT$36.28bn and NT$1.40, respectively. Year over year, net income increased by 7.8% and diluted earning per share increased by 7.7%. Compared to the fourth quarter of 2010, however, first quarter of 2011 results represent a 4.3% decrease in revenue and a 10.9% decrease in both net income and diluted EPS. The Taiwanese company, which supplies chips to companies such as Nvidia and Qualcomm, said it is now looking to the fast growing smartphone and tablet pc sectors for growth. It expects Q2 revenue to be between NT$109 and NT$111bn. "The March 11 earthquake in Japan is not expected to cause any interruptions in our supply lines and is not expected to have a significant effect on our demand," said Lora Ho, svp and chief financial officer of TSMC. "For the second quarter of 2011, we expect to increase wafer sales. Relative to the first quarter, the computer and consumer segments will increase while communication segment will decline slightly."