Other than seasonal weakness, the New Taiwan dollar's recent appreciation is expected to cost TSMC 4 percent of its sales in the current quarter.

The first quarter was better because of better-than-expected extra demand for personal computers.

Due primarily to continued robust demand from our customers, our fourth quarter business exceeded our previous guidance. Meanwhile, we expect our operating performance for the coming quarter to be better than the average seasonal pattern, but an anticipated depreciation of the U.S. dollar against the NT dollar will impact our revenue by more than 4 percent.

The sequential decline is mainly due to three fewer working days in February.

What we're seeing is more entry-level sales and a more moderate appreciation of property than we've seen in previous quarters.

Sales are starting to get back up there after the holiday period and prices show no real sign of weakness.