Taiwan Semiconductor Manufacturing Company (TSMC) saw its net profits decrease 8.7% from a year earlier in the second quarter of 2016 though revenues for the quarter increased 8% on year. TSMC has reported consolidated revenues of NT$221.81 billion (US$6.91 billion) for the second quarter of 2016, up 9% on quarter and 8% on year. Gross margin for the quarter was 51.5%, 6.6pp higher than the prior quarter and 3.0pp above the level of a year ago.
TSMC said that the sequential revenue growth was attributed to customers' inventory restocking and preparation for new product launches, and recovery of the delayed shipments from the February 6 earthquake.
TSMC disclosed sales generated from the communication sector went flat sequentially in the second quarter, while the computer, consumer and industrial/standard segments increased 19%, 80% and 12%, respectively.
Of TSMC's total wafer revenues in the second quarter of 2016, 16/20nm accounted for a combined 23%. Advanced technologies (28nm and below) accounted for 51% of TSMC's total wafer revenues during the quarter.
Revenues from customers based in North America accounted for 61% of TSMC's total wafer revenues in the second quarter of 2016 compared with 66% a year ago, while Asia Pacific-based customers as a proportion of company revenues reached 18% from 13% in the second quarter of 2015. Meanwhile, revenues from TSMC's China-based customers accounted for 10% of the foundry's total wafer revenues in the second quarter, up from 8% during the same period in 2015.
TSMC generated net profits of NT$72.51 billion in the second quarter of 2016, up 11.9% sequentially but down 8.7% from 2015.