TSMC saw Q4 net profit of US$1bn grow 162% from Q408 on revenues up by 43% on Q408 to reach US$2.9bn.
Compared Q3009, the Q4 results represent a 2.4% increase in revenue, a 6.9% increase in net income, and a 7.2% increase in diluted earnings per share.
Computer-related ICs grew strongly and TSMC reckons the computer market will grow 14% this year while mobile phone sales will grow 12%.
TSMC also reckons the semiconductor market will grow 18% this year and the foundry industry will grow 29% in 2010. In 2020 the semiconductor market shrank 9 per cent and the foundry industry shrank 17%.
Chairman Morris Chang said he expected TSMC's fabs to be fully utilised throughout 2010, and that the company would introduce 28nm processes in the first half of 2011.
Gross margin for the quarter was 48.5%, operating margin was 36.5%, and net margin was 35.5%.
Advanced process technologies (0.13-micron and below) accounted for 70% of wafer revenues. 90-nanometer process technology accounted for 16% of wafer revenues, 65-nanometer 30%, and 40-nanometer exceeded 9% of total wafer sales.
"Although first quarter normally is a sequentially declining quarter for all three major semiconductor applications, we expect the demand from consumer related applications to grow in first quarter of 2010, while computer and communication related applications will decline following their seasonal pattern," said Lora Ho, VP and CFO of TSMC, "Based on our current business outlook, management expects Q1 2010 revenue to be between NT$89bn and NT$91bn billion, gross profit margin to be between 46.5% and 48.5%, and operating profit margin to be between 35% and 37%."
Ho added that TSMC expects 2010 capital expenditure to be around US$4.8bn due to strong demand outlook for the company's advanced technologies.