Taiwan Semiconductor lifts Q1 guidance on upbeat outlook

Mar 12, 2014
A photographer takes a picture of Taiwan Semiconductor Manufacturing Company logo during a quarterly report meeting in Taipei on April 26, 2007

Taiwan Semiconductor Manufacturing Co, the world's leading contract microchip maker, on Wednesday raised its first-quarter guidance buoyed by robust demand for sophisticated chips used in smartphones and tablets.

TSMC said revenue, gross profit margin and in the three months to March are all expected to exceed the upper end of the previous guidance issued in January.

First-quarter revenue is expected to be Tw$147 billion ($4.85 billion), compared with the previous guidance range of Tw$136 billion-Tw$138 billion.

The updated target revenue would mark a rise of 10.7 percent from the same period of 2013 when it posted Tw$132.76 billion in revenue.

"The upside to the first quarter guidance comes mainly from the increases in demand for our 28-nanometer wafers and from customers' active restocking of their inventory," chief financial officer Lora Ho said in a statement.

"The first quarter upside is perhaps a good prelude to an already anticipated strong year."

The company now also expects its gross profit margin for the first quarter to grow to 47 percent up from previous guidance for 44.5 percent to 46.5 percent and its operating profit margin to rise to 35 percent, up from 32-34 percent.

TSMC chief executive Rick Tsai (left) and chief finance officer Lora Ho listen at a quarterly report meeting in Taipei on January 25, 2007

TSMC declined to comment on recent reports in local media that it is producing chips for Apple's next iPhone.

Explore further: Taiwan's HTC forecasts first-quarter loss

add to favorites email to friend print save as pdf

Related Stories

Taiwan's HTC expects 30 percent sales plunge in 1Q

Feb 06, 2012

Taiwan's leading smartphone maker HTC forecast Monday that its revenue in the three months to March may plunge 30 percent from a year ago, as competitors Apple and Samsung take their grip on the market.

Taiwan's HTC forecasts first-quarter loss

Feb 10, 2014

Taiwan's struggling smartphone maker HTC on Monday forecast a first-quarter net loss of up to Tw$3.1 billion ($102.4 million) due to weak sales of new flagship products.

Taiwan's Hon Hai net profit up 1.5% in third quarter

Nov 14, 2013

Taiwan tech giant Hon Hai Precision said Thursday net profit rose a better than expected 1.5 percent in the three months to September, although the earnings were weighed by the later release of Apple's latest iPhones.

TSMC reports 16 percent rise in 2Q profit

Jul 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.

Taiwan Semiconductor profits up nearly 25%

Jan 27, 2011

Taiwan Semiconductor Manufacturing Co, the world's leading contract microchip maker, said Thursday its profits in the three months to December rose nearly 25 percent on the back of strong demand.

Chipmaker TSMC posts 24 percent rise in 2Q profit

Jul 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 ...

Recommended for you

Tokyo Game Show: On the hunt for the next Minecraft

2 hours ago

The staggering $2.5 billion that Microsoft has just shelled out for Minecraft and its quirky graphics will be foremost in developers' minds at the Tokyo Game Show this week, where simple yet immersive games ...

A Closer Look: Your (online) life after death

2 hours ago

Sure, you have a lot to do today—laundry, bills, dinner—but it's never too early to start planning for your digital afterlife, the fate of your numerous online accounts once you shed this mortal coil.

Web filter lifts block on gay sites

2 hours ago

A popular online safe-search filter is ending its practice of blocking links to mainstream gay and lesbian advocacy groups for users hoping to avoid obscene sites.

Jindal: Obama hasn't done enough to harness energy

2 hours ago

The governor of the state of Louisiana, a possible Republican presidential candidate, said Tuesday that President Barack Obama's administration has become "science deniers," failing to do enough to harness the nation's energy ...

User comments : 0