Taiwan Semiconductor Manufac-turing Co (TSMC,
Net income fell to the lowest level in seven quarters at NT$18.84 billion (US$567 million), or NT$0.73 per share, during the quarter ended March 31, compared to NT$32.61 billion, or NT$1.26 a share, a year earlier.
"We think demand is certainly recovering. We also believe the recovery will extend into the rest of the year," TSMC chief executive Rick Tsai (蔡力行) told investors yesterday.
PHOTO: SAM YEH, AFP
Sales of chips used in communications devices such as mobile phones and consumer products would grow by "double digits" at a quarterly rate during the current quarter, while the growth for chips for computers would be relatively slower, chief financial officer Lora Ho (何麗梅) said.
"A majority of our customers' excess inventory has been worked through in the first quarter and the recovery of our business is already in place," Lo said.
Communications chips are the biggest contributor for TSMC, accounting for 42 percent of the chipmaker's revenues last quarter.
TSMC's customers, including Texas Instruments Inc (TI) and Qualcomm Inc, expect a pick-up in demand for high-end telephones this quarter.
Boosted by improving demand, revenues would to increase by 12 percent to 15 percent to between NT$73 billion and NT$75 billion in the second quarter, Ho said.
Revenues dropped 16.6 percent to NT$64.9 billion last quarter from a year ago.
Gross margin would also improve to between 42 percent and 44 percent this quarter from 37.9 percent last quarter and operating profit margin would rise to between 32 percent and 34 percent from 27.5 percent, she said.
The chipmaker's projection for revenues expansion is weaker than the 19 percent forecast by Rick Hsu (徐稦成), a semiconductor analyst at Nomura Securities Co in Taipei.
"We saw some recovery in TSMC's customers such as TI and NVIDIA Inc, but price competition in the current quarter is more drastic than we thought as reflected in [slower-than-expected] revenues growth," Hsu said.
As growth overall in the semiconductor industry is slowing, investors want to know what will drive TSMC's growth.
Tsai said the firm was very interested in the microprocessor business, where its presence is currently small, and it was also looking at opportunities in the memory chip market other than NOR-type flash memory chips it makes now.
TSMC said the memory business would play a bigger role this year, accounting for between 5 percent and 10 percent of its total revenues from the current 4 percent.
"TSMC must search for new fields for growth as its operations are closely linked to the semiconductor industry now," Hsu said.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
ROW: A probe would determine if the rights of shareholders who were not allowed to vote yesterday had been violated, while the stock exchange also wants answers The election of board directors yesterday at Tatung Co (大同) sparked controversy after the company blocked some institutional and individual shareholders from participating in the general shareholders’ meeting, prompting the Financial Supervisory Commission (FSC) to announce that the vote would be investigated. Lin Kuo Wen-yen (林郭文艷) was re-elected as chairwoman of the household-appliance maker’s nine-member board, but prior to the vote she announced that several shareholders would not have voting rights. They were being denied a vote because they had contravened the Business Mergers and Acquisitions Act (企業併購法), and the Act Governing Relations Between the People of the Taiwan Area and