Q2 2017

Revenue Analysis:
In the second quarter, revenue decreased 8.6%
quarter-over-quarter, primarily attributable to supply
chain inventory management, mobile product
seasonality, and an unfavorable foreign exchange rate.
By application, Communication, Computer and
Consumer decreased 10%, 14%, and 7% respectively,
while Industrial/Standard increased 9%.
By technology, 10nm process technology contributed
1% of total wafer revenue in 2Q17. The combined
16/20nm contribution was 26% of total wafer revenue.
Advanced technologies (28nm and below) accounted
for 54% of total wafer revenue.
From a geographic perspective, revenue from
customers based in North America accounted for 60%
of total net revenue, while revenue from Asia Pacific,
China, EMEA (Europe, Middle East, and Africa) and
Japan accounted for 14%, 11%, 7%, and 8% of total
net revenue, respectively.

Net Profit and EPS:
Net income attributable to shareholders of the parent
company was NT$66.27 billion, down 24.4% from
1Q17, reflecting higher income tax expenses during
the second quarter, which included the 10% tax on
undistributed retained earnings.