Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is likely to secure orders from Apple Inc to produce next-generation processors “starting as early as the second quarter of 2013,” Credit Suisse said last week.
The projected timeframe would come “earlier than expected,” Manish Nigam, head of the brokerage’s non-Japan Asia technology research division, said in note to clients on Friday, citing their recent checks with several equipment suppliers and other companies in Japan, Taiwan and China.
Previously, Credit Suisse said it expected Apple would seek a second source for its chips other than Samsung Electronics Co by either late next year or early 2014.
Nigam said their checks also suggested Apple might start chip production at TSMC by using the Taiwanese firm’s 28-nanometer (nm) technology, rather than its prior views on the 20nm node.
“If our checks are correct, the market would take this move as a surprise,” Nigam wrote in the note, although he said it was still hard to determine which product is going to be manufactured at TSMC.
Nevertheless, the brokerage said any new product would be a net addition to demand and therefore it was increasingly confident about the prospects for TSMC and Advanced Semiconductor Manufacturing Co (ASE, 日月光半導體), which is expected to package the chips, in the belief that the two companies will be ramping up capacity for a sizeable new customer starting some time in the first quarter of next year.
The brokerage on Friday upgraded shares of TSMC to “outperform” from “neutral,” and raised its target price from NT$95 to NT$109.
Shares in TSMC ended at NT$98.1 in Taipei trading on Friday, up 1.55 percent from the previous session, while ASE’s closed 0.2 percent up at NT$24.75, down 4.44 percent so far this year, according to data from the Taiwan Stock Exchange.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS