Philips' moves expected to help Taiwan

It takes at least three months to install chip-making equipment, so an order for machines now indicates that TSMC expects new orders for its more advanced chips next quarter, Wu said.

This is in line with TSMC chairman Morris Chang's (張忠謀) predictions in January that the company would see increased orders in the second quarter, especially for more advanced chips.

Goldman, Sachs & Co raised its earnings forecast for TSMC on Thursday, sending the company's shares up NT$2.50 in the last two sessions to close at NT$45.50 in Taipei yesterday.