Chipmaker TSMC posts 24 percent rise in 2Q profit

July 18, 2013

(AP)—Taiwan Semiconductor Manufacturing Co., the world's largest contract chip manufacturer, reported a 24 percent jump in second quarter profit Thursday, driven by sales growth in smartphones and tablet computers that it warned is likely to fade in coming quarters.

The company said that April-June profit totaled NT$52 billion ($1.7 billion) on revenue of NT$156 billion.

But it acknowledged that rapid sales growth in high-end smartphones over the past two years was tapering off, affecting the company's revenue and profit margin.

The company said mid- and low-end handsets have experienced faster sales growth, but they do not contribute as much to profit because they use less sophisticated processors.

TSMC forecast modest growth in the third quarter, with revenue expected to reach NT$161-164 billion.

Revenue could drop as much as 7 percent in the fourth quarter compared with a year earlier, TSMC Chairman Morris Chang said.

Overall, the company said personal computers sales are expected to decline further in the second half, while smartphones and will suffer a modest decline.

Faced with intense competition, the company has moved into the cutting-edge 20 and 16 nanometer technologies, which allow for production of smaller chips that run faster at lower power.

TSMC is planning a record $10 billion of capital investment in 2013 to fend off competition, mainly from South Korea's Samsung Electronics Co. as well as Intel Corp., which has been speeding up its expansion into contract manufacturing following slow PC chip sales.

Chang said trial production using the advanced 20 nanometer technology began in the first quarter, with mass production beginning in 2014.

The company is building a new factory that uses the cutting-edge technologies, saying it is confident demand will remain strong despite competition.

"We do not build capacity until we're reasonably, highly confident of the demand" of customers, Chang said.

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

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.

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.

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 ...

Chipmaker TSMC gets tablet, smartphone boost in 1Q

April 18, 2013

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 ...

Taiwan's MediaTek profit up 51 percent in 1Q

May 6, 2013

MediaTek Inc., Asia's largest chipset designer, said Monday its first quarter profit grew 51 percent from a year earlier, boosted by China's flourishing smartphone market.

Intel cuts sales outlook as PC sales slump

July 17, 2013

(AP)—Intel Corp., the world's largest maker of chips for PCs, put a brave face on the decline of the global PC sales earlier this year, saying it expected its own sales to grow. Now, it's backtracking, saying sales will ...

Recommended for you

Interactive tool lifts veil on the cost of nuclear energy

August 24, 2015

Despite the ever-changing landscape of energy economics, subject to the influence of new technologies and geopolitics, a new tool promises to root discussions about the cost of nuclear energy in hard evidence rather than ...

Smart home heating and cooling

August 28, 2015

Smart temperature-control devices—such as thermostats that learn and adjust to pre-programmed temperatures—are poised to increase comfort and save energy in homes.

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.