Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, expects to ship 1.5 million 28-nanometer (nm) wafers by the end of this year, riding on strong demand for mobile devices, a company executive said yesterday.
TSMC has cornered more than 90 percent of the worldwide advanced 28nm-chip market. In April, the company said that revenue generated from its 28nm chips for this year would be triple that of last year, driven by strong demand for smartphones and tablets.
Speaking at a Computex summit forum, Been-Jon Woo (金平中), director of TSMC’s business development unit, said the company had created a “unique” business model, dubbed “Grand Alliance,” to grow along with its customers, and the success of this strategy is evidenced by its robust 28nm chip business.
TSMC’s 28nm chip customers include US mobile phone chip designer Qualcomm Inc and Taiwan’s MediaTek Inc (聯發科). The company’s equipment for such advanced chips is likely to continue to be fully utilized as was the case last year, the company said earlier.
“This year, TSMC is forecast to ship 1.5 million 12-inch wafers on advanced 28nm process technology,” Woo said.
“Twenty-eight-nanometer [chips] will contribute greatly to the company’s revenue,” she said, adding that “mobile [device demand] is the driver.”
TSMC chairman Morris Chang (張忠謀) yesterday also voiced optimism for growth in cloud-based mobile products, as cloud technology has become one of the key areas of development for the mobile industry and has helped TSMC grow rapidly over recent years.
The company expects 28nm chips to make up at least 30 percent of its total revenue this year. Last quarter, TSMC made 24 percent of its NT$132.76 billion (US$4.44 billion) revenue from selling 28nm chips.
That gives the firm a significant edge, as local rival United Microelectronics Corp (聯電) said last month that it would not see a meaningful revenue contribution from 28nm chips before the end of the year.
Responding to questions on how to cope with growing competition from South Korean firms, Samsung Electronics Co in particular, Woo said TSMC is different from its competitors in that the company does not compete with its customers but concentrates on providing them with the most cost-effective products.
Separately, PC vendor Asustek Computer Inc (華碩) chief executive officer Jerry Shen (沈振來) yesterday said on the sidelines of the forum that the company plans to launch new tablets this fall, using Quaclomm’s latest processors for tablets, supporting 4G long-term evolution technology.
Shen also showcased the company’s new “Padfone Infinity,” equipped with Qualcomm’s Snapdragon 600 processor. The product is the third-generation of “phablet” devices developed by Asustek, which combine the function of a mobile phone with those of a tablet.
The forum was attended by a number of other technology heavyweights, including Steve Mollenkopf, president and chief operating officer of Qualcomm, and Ian Drew, chief marketing officer and executive vice president of business development at UK chip designer ARM Holdings PLC.
Additional reporting by CNA
SUPPLY HICCUPS: Poor manufacturing yields at Apple’s overseas suppliers have caused at least one maker of its new MiniLED displays to pause production, sources said The next-generation display destined to be a highlight of Apple Inc’s upcoming top-tier iPad Pro is facing production issues that could lead to short initial supplies of the new device, people familiar with the matter said. The Cupertino, California-based tech giant plans to showcase a new MiniLED display technology in the 12.9-inch iPad Pro set to be announced as early as the second half of this month. However, the firm’s overseas suppliers are dealing with poor manufacturing yields, the people who asked not to be named discussing sensitive matters said. At least one of the MiniLED makers has had to pause production as
RETAIL BANKING EXIT: Clients are concerned whether their rights would be protected, while employees were caught by surprise as the bank had just upgraded its services Citibank Taiwan Ltd (花旗台灣) yesterday said that credit card clients could continue using their cards as operations would continue normally until it sells its consumer banking business. As of February, the bank had 2.86 million credit cards in circulation in Taiwan, of which 2.17 million had been used in the past six months, ranking it sixth among all banks, data from the Financial Supervisory Commission showed. Credit card spending by Citibank clients totaled NT$15.66 billion (US$552.6 million) in February, also ranking sixth among banks in Taiwan. Citibank was the only foreign bank that made it into the top six. Customers should not
END OF AN ERA: The Boeing 747-400 jumbo jets have served the airline well, but new-generation aircraft are more fuel-efficient, CAL chairman Hsieh Shih-chien said China Airlines Ltd (CAL, 華航) yesterday bid farewell to its last four Boeing 747-400 planes, ending the era of the “Queen of the Skies” at the airline. CAL has since 1975 operated a total of 29 747 series aircraft manufactured by Boeing Co. In 1990, it started receiving delivery of 19 747-400 jumbo jets, with the last one, the B-18215, delivered in 2005, it said. The B-18215 was the last of the passenger model produced by Boeing, making the 16-year-old aircraft the world’s youngest 747-400, CAL chairman Hsieh Shih-chien (謝世謙) told an event to bid farewell to the planes at Taiwan Taoyuan
DIVERSE SUPPLY: TSMC chairman Mark Liu said the firm’s US$12 billion investment in Arizona would succeed with continued bipartisan support from the US Congress Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, on Monday took part in a virtual White House summit about a global semiconductor shortage and Washington’s plans to strengthen US supply chains. The Hsinchu-based company was among 19 firms, including fellow chipmakers Samsung Electronics Co, GlobalFoundries Inc and Intel Corp, that attended the summit hosted by US National Security Adviser Jake Sullivan, US National Economic Council Director Brian Deese and US Secretary of Commerce Gina Raimondo. US President Joe Biden told executives in the meeting that there is bipartisan support in the US Congress for efforts to strengthen the US