Singapore-based Maybank Kim Eng Securities Ltd yesterday forecast Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) could see consolidated sales decline 10 to 15 percent this quarter from a record level of NT$162.57 billion (US$5.51 billion) last quarter.
The world’s No. 1 contract chipmaker is likely to post sales of NT$142 billion during the October-to-December quarter because of inventory adjustments by some of its fabless semiconductor clients, lower average selling prices and unfavorable foreign exchange rates, the brokerage said.
A softer fourth-quarter for TSMC also reflects the slowdown in high-end smartphone sales, as well as keen competition and market-share shift of the 28 nanometer (nm) node technology in the foundry business, Maybank Kim Eng analyst Warren Lau (劉華仁) said in a client note.
“Some of TSMC’s major customers are seeing demand for high-end smartphones slowing down and carrying high inventory to boot,” Lau wrote in the note.
“The diversification of 28nm foundry sources is another cause for concern, as it may result in market-share shift and pricing pressure,” he added.
While TSMC could see a weak fourth quarter, the company’s technology leadership and order gains from Apple Inc are expected to help it enter into next year on a solid base, according to the Hong Kong-based analyst.
SECOND-QUARTER BOOST
Maybank Kim Eng expects TSMC to benefit from its potential commercial production for Apple’s 20nm application processor in the first quarter next year and realize revenue in the second quarter.
With sentiment toward TSMC’s sales this quarter turning cautious, the brokerage yesterday adjusted downward its second-half earnings forecast for TSMC by 5 percent and lowered its target price for the stock to NT$105 from NT$111.
Shares of TSMC rose 1.43 percent to close at NT$106.5 yesterday. They have advanced 9.79 percent so far this year.
However, Deutsche Bank analyst Michael Chou (周立中) appears less bearish about TSMC’s outlook. While forecasting TSMC’s sales to fall by 7 to 9 percent this quarter from last year, he believes the company will retain its market leadership in the next two years.
“We expect the company to ramp up its 20nm chip production at a faster pace than 28nm chips for the first year due to improved price performance and strengthened technology leadership,” Chou wrote in a separate research note yesterday.
SMARTPHONES
TSMC’s leading position in the 16nm technology will be even greater than that in the 20nm area, Chou said, adding that this will allow the company to maintain the “dollar content per smartphone” and sustain its earnings growth through 2015.
According to Chou, every smartphone sold contributed about US$7 to TSMC’s revenue last year and this year, and the company could manage to keep the figure at about US$6.9 in the next two years, despite the rising market penetration of mid and low-end smartphones.
Deutsche Bank maintains a “buy” recommendation on the company’s shares, with a target price of NT$138.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI