Taiwan Semiconductor Manufacturing Company Limited reported consolidated earnings results for the fourth quarter and fiscal year ended December 31, 2015. For the quarter, the company reported revenue of TWD 203.518 billion against TWD 222.521 billion a year ago. Income from operations was TWD 77.964 billion against TWD 88.216 billion a year ago. Income before tax was TWD 80.644 billion against TWD 89.312 billion a year ago. Net income was TWD 72.837 billion or TWD 2.81 per share against TWD 79.986 billion or TWD 3.08 a year ago. Cash from operations was TWD 145 billion. capital expenditures was TWD 85 billion.

For the full year earnings per share was TWD 11.82. Capital expenditure was TWD 258 billion. Operating cash flow was TWD 530 billion. Free cash flow was TWD 272 billion. ROE also came out to be 27%.

For first quarter of 2016, the company's revenue is expected to be between TWD 198 billion and TWD 201 billion and gross profit margin is expected to be between 47% and 49%. Operating margin to be between 36.5% and 38.5%.

For the year 2016, the management states capital budget to be between USD 9 billion and USD 10 billion. The company forecast the world smartphone shipment unit growth rate to be plus 8%; PC, minus 3%; tablet, minus 7%; and digital consumer electronics, minus 5%. Smartphones will continue to be a major driver for TSMC business in 2016. CapEx is expected to be between USD 9 billion to USD 10 billion, representing a 10% to 20% increase year-over-year. About 70% of the capital budget will be used for capacity buildup for the technology, majorly 10-nanometer, and R&D CapEx. Of the USD 9 billion to USD 10 billion number, about 10% will be used for back-end, mainly InFO, and 5% for China fab. With this CapEx, 2016 capacity will increase by about 10%.