Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it is to start high-volume production of its most advanced 20-nanometer (nm) chips next month, a move the chipmaker expects will give its revenue a double-digit boost next year.
The move would also make TSMC the world’s leading contract chipmaker supplying 20nm chips.
Analysts say that mass 20nm chip production could put TSMC in a position to dethrone Samsung Electronics Co as the supplier of Apple Inc’s next-generation A8 chip next year.
TSMC chairman Morris Chang (張忠謀) said in October that 20nm chips would start contributing to the firm's revenue in the second quarter of next year, following the launch of mass production in the first three months of next year.
“The 20nm system-on-a-chip is the most critical ramp-up TSMC has carried out in years. We will start high-volume production of this chip next month,” TSMC president and CEO Mark Liu (劉德音) said in a keynote speech at the company’s annual supply chain management forum in Hsinchu.
Liu said TSMC is on track to ship the chips to its clients on schedule. Thus far, the world’s top contract chipmaker has taped out 20 of the 20nm chips, Liu said in his first public speech after being promoted to co-CEO last month.
The company is expected to ship 165,000 20nm chips to Apple next year, accounting for 10 percent of its revenue that year, Daiwa Capital Markets analyst Eric Chen (陳慧明) said.
Credit Suisse analyst Randy Abrams forecast Apple orders to account for 6.5 percent of TSMC’s overall revenue next year, adding that Qualcomm Inc and MediaTek Inc (聯發科) are to become key clients for TSMC next year.
In the speech, Liu highlighted TSMC’s progress on the 16nm technology front, saying that the company recently initiated the production of 16nm chips and planned to begin mass production within a year.
TSMC is expected to make US$5.4 billion in revenue from advanced 28nm chips this year and the figure could further increase next year, Liu said.
The company, which commands more than 90 percent of the global 28nm chip market, said earlier this year that 28nm chips would be the biggest contributor to revenue this year, since production capacity and revenue are set to triple on an annual basis.
Last quarter, 28nm chips made up 32 percent of TSMC’s revenue of NT$162.58 billion (US$5.48 billion).
As a result, Liu said TSMC’s revenue would show a 17 to 18 percent annual growth this year and grow by double-digit percentage points next year, supported by continuing demand for mobile applications.
That figure would beat the 9 percent annual growth forecast for the contract chipmaking industry, as well as the semiconductor industry’s 5 percent growth.
RESTRUCTURING: Taichung and Taoyuan profited most from local firms moving back high-end manufacturing amid the US-China decoupling of trade ties, the ministry said The government’s “Invest in Taiwan” initiative might this year see NT$627.1 billion (US$21.7 billion) of investment pledges realized, with several firms raising stakes and two dropouts due to customer losses, Minister of Economic Affairs (MOEA) Wang Mei-hua (王美花) said yesterday. Wang made the statement at the monthly meeting of the Third Wednesday Club, a local trade group featuring the top 100 firms of each business sector. Since early last year, the government has launched three programs intended to help local companies grapple with US-China trade rows and the COVID-19 pandemic, mainly through moving production lines back to Taiwan. Thus far, the ministry
JOBS AT RISK? Most Cathay Dragon routes are to be operated by Cathay Pacific or a subsidiary, but it was unclear how Taiwanese workers would be affected Cathay Pacific Airways Ltd (國泰航空) yesterday said it is planning new flight services for Taiwan as it announced a corporate restructuring that included the shutdown of its regional subsidiary, Cathay Dragon (國泰港龍), and could lead to job cuts in Taiwan. Cathay Pacific said the shutdown means that the one round-trip service between Taichung and Hong Kong per day and seven round-trip services between Kaohsiung and Hong Kong operated by Cathay Dragon prior to the COVID-19 pandemic would be terminated. “The parent company is planning a new schedule between Taiwan and Hong Kong,” Cathay Pacific assistant manager for corporate communications Moses Hou (侯恩錫)
OVERHEATED MARKET?: The gauge would be designed to provide more reliable information than private-sector data, and help improve policymaking, the council said The National Development Council (NDC) is considering creating a business climate index on Taiwan’s property market, allowing policymakers to better monitor market movements and intervene if necessary, NDC Minister Kung Ming-hsin (龔明鑫) said yesterday. Kung made the remarks at a meeting of the legislature’s Economic Committee where lawmakers from across party lines voiced concerns about housing price hikes driven by capital repatriation. Kung said that the council is assessing the possibility of creating an index designed to provide more accountable and transparent information than data provided by private-sector market analysts, and could help improve policymaking. The council would compile a report on
STOCK MARKETS TAIEX closes slightly higher The TAIEX closed slightly higher yesterday as market sentiment remained cautious over the Nov. 3 US presidential election. Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was again the anchor stabilizing the broader market, preventing the main board from falling into negative territory at the end of the session, dealers said. The TAIEX closed up 14.88 points, or 0.12 percent, at 12,877.25, on turnover of NT$167.982 billion (US$5.81 billion). TSMC, the most heavily weighted stock on the local market, rose 0.44 percent after fluctuating between NT$451 and NT$456. The semiconductor subindex and the bellwether electronics sector
RSS