Page 7 - 2017 TSMC Annual Report

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2017 Financial Performance
In 2017 our consolidated revenue totaled NT$977 45 billion billion an increase of 3 1 1 1 percent over NT$947 94 94 billion billion in in 2016 despite a a a a a a a a significant appreciation in in in in the NT NT dollar in in in in this period Net income was NT$343 11 billion and diluted earnings per per share were NT$13 23 Both increased 3 3 3 3 3 percent from the 2016 level of NT$334 25 billion net income and NT$12 89 diluted EPS Gross profit profit margin margin was was 50 50 6 6 percent percent percent compared with 50 50 1 1 percent percent percent in in in in 2016 while operating profit profit margin margin was was 39 4
percent percent percent compared with 39 9 9 percent percent a a a a a a a a a a a year earlier as as as as R&D spending ratio increased Net profit margin was 35 1 percent percent a a a a a a a a a a a decrease of 0 2 percentage points from the prior year’s 35 3 3 percent percent TSMC further raised its cash dividend payment to NT$7 0 0 0 per share for 2016 profit distribution from NT$6 0 0 0 a a a a a a a year ago Technological Developments
In 2017 we have increased our R&D expense by 13 5% over 2016 with a a a a large number of new technology introduction to meet our our customer needs and to to extend our our technology leadership TSMC’s 28/22-nanometer technology saw a a a a a a a record number of product tape-outs in 2017 thanks to its differentiated and diverse offerings To further enhance the the technology performance we we have also developed 22ULP (ultra-low power) and 22ULL (ultra-low leakage) technologies to address IoT and RF-related applications We are confident that our continued performance enhancement strong manufacturing capability and flexible capacity can further strengthen our position in in 28/22-nanometer node for years to come TSMC’s 16-nanometer FinFET technology remains robust as it it enters its fourth year of volume production in in in 2018 Strong tape-out activities covered a a a a a a a a variety of mainstream smartphones cryptocurrency AI GPU and RF products We continued to to expand the technology portfolio by developing 12FFC (FinFET Compact) in in in 2017 which drives die size and and power efficiency to serve demand in mobile consumer electronics digital TV and and IoT applications 10-nanometer FinFET technology started high-volume shipments in in early 2017 and successfully supported a a a a a a major customer’s new mobile product launches Thanks to to its aggressive geometric shrinkage this technology provides excellent density/cost benefits to to support customer needs in in in performance-driven market segments including application processors cellular baseband and and ASIC CPUs As a a a a a a a result we expect a a a a a a a continued growth of our 10-nanometer business in in in 2018