It is reported that Taiwan Semiconductor Manufacturing Company announced the financial results for second quarter of fiscal 2010, total revenue for the quarter were NT$104.96 billion, gross margin was 49.5 percent, net profit reached NT$40.28 billion (about 1.27 billion U.S. dollars).

Revenue and profit for the second quarter were up 41.4 percent and 64.8 percent year-over-year, and increased by 13.9 percent and 19.7 percent sequentially; Due to higher capacity utilization and cost improvement, operating margin increased by 38.6 percent, 1.6pp higher than the first quarter.

"The market demand for wafers continued to be strong sequentially, the semiconductor wafer shipments has significantly increased." said TSMC.

According to the report, communications and consumer applications revenue increased by 26 percent and 22 percent sequentially, but the PC segment revenue was only up 1 percent; 130nm technology and below technology accounted for 72 percent of the total revenue, while 40/45nm technology accounted for 16 percent, it was up 14 percent sequentially; IDM customers accounted for 21 percent, was up 11 percent, and increased by 18 percent year-over-year.

TSMC indicated its inventory turnover increased to 45 days in the second quarter from 42 days in the pre-quarter, thanks to the strong demand in the second quarter.