Chipmaker TSMC gets tablet, smartphone boost in 1Q

April 18, 2013 by Annie Huang

Taiwan Semiconductor Manufacturing Co., the world's largest contract chip manufacturer, reported an 18 percent jump in first quarter profit as increased global sales of smartphones and tablet computers boosted demand for sophisticated processors.

The company said in a statement Thursday that January-March profit totaled NT$39.6 billion ($1.3 billion) on revenue of NT$132 billion.

It said more than half of its shipments were application processors and other chips for use in mobile devices. Growth in this area more than made up for stagnant sales of chips used in computers and other consumer electronics.

TSMC said it expects revenue to grow to between NT$154-156 billion in the second quarter.

Chairman and CEO Morris Chang said revenue growth for 2013 could exceed 10 percent, up from 7 percent growth predicted earlier, partly because wafer production using new cutting-edge technology is set to grow.

He said trial production using the advanced 20 nanometer technology began in the first quarter, while the company plans to advance further with 16 nanometer technology in a year from now.

The company's move into the 20 and 16 nanometer technologies, which allow for production of smaller chips that run faster at lower power, is being propelled by more intense competition in the industry.

TSMC is planning a record $9 billion of capital investment in 2013 to fend off competition, mainly from South Korea's . as well as ., which has been speeding up its expansion into contract manufacturing following slow PC chip sales.

News reports say TSMC has been working with Apple Inc. to supply the Cupertino, Calif.-based company with the new processor to power the next generation of iPhones and . Apple currently gets such processors from Samsung.

Samsung is Apple's main competitor in smartphones and tablet computers, as well as its principal supplier of processors. This has fueled speculation that Apple is looking for a new processor source.

Explore further: TSMC reports shrinking profit, revenue in 3Q

0 shares

Related Stories

TSMC reports shrinking profit, revenue in 3Q

October 27, 2011

(AP) -- Taiwan Semiconductor Manufacturing Co., the world's largest contract chip maker, said Thursday its earnings dropped by more than a third in the latest quarter amid uncertainties about the global economy.

Samsung 3Q profit slides 23 percent

October 28, 2011

(AP) -- Samsung Electronics said quarterly profit slid 23 percent as weaker demand for flat panels and computer chips offset booming smartphone sales that were estimated to have surpassed those of industry pioneer Apple.

TSMC reports 16 percent rise in 2Q profit

July 19, 2012

(AP) — Taiwan Semiconductor Manufacturing Co., the world's largest contract chip maker, says its second quarter profit rose 16 percent year-on-year and predicted continuing strong growth in the third quarter.

Samsung to invest $4 billion in Austin plant

August 21, 2012

(AP) — Samsung Electronics co. will spend $4 billion renovating its plant in the U.S. to increase production of advanced chips used in smartphones and tablet computers.

TSMC reports 32 percent profit jump in 4Q of 2012

January 17, 2013

Taiwan Semiconductor Manufacturing Co., the world's largest contract chip manufacturer, reported a 32 percent jump in profits in the final quarter last year, benefiting from increasing global sales of smartphones and tablet ...

Recommended for you

Facebook ready to test giant drone for Internet service

July 30, 2015

Facebook says it will begin test flights later this year for a solar-powered drone with a wingspan as big as a Boeing 737, in the next stage of its campaign to deliver Internet connectivity to remote parts of the world.

Power grid forecasting tool reduces costly errors

July 30, 2015

Accurately forecasting future electricity needs is tricky, with sudden weather changes and other variables impacting projections minute by minute. Errors can have grave repercussions, from blackouts to high market costs. ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.