Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, is expected to increase revenues by more than 10 percent annually to US$30 billion next year, primarily on the back of new orders from Apple Inc, market researcher TrendForce Corp (集邦科技) forecast yesterday.
The chipmaker would again outperform it peers in the global semiconductor industry, which is expected to shrink 0.6 percent annually next year with revenues of US$329 billion, TrendForce forecast.
With global demand expected to remain lukewarm next year on slowing demand for smartphones and PCs, Apple and Chinese chip designers are set to become the major driving forces in the industry, TrendForce said in a report.
“TSMC’s leadership in advanced process technology will help fuel its growth next year,” TrendForce said.
This year, TSMC is expected to rake in between US$26 billion and US$27 billion.
The Taipei-based research house expects TSMC to receive a much bigger allocation of Apple’s A10 processor orders next year than its rival Samsung Electronics Co.
In addition, TSMC is to benefit from the growing adoption of its 16-nanometer (nm) chips by its major clients, the researcher said.
To expand its advanced technology capacities, TSMC is expected to boost its capital spending to between US$9.5 billion and US$10.5 billion next year, compared with US$8 billion this year, representing annual growth of between 12 percent and 31 percent, the researcher said.
Samsung’s revenue from its contract chip manufacturing business is expected to remain steady at about US$2.5 billion next year due to slow demand for its high-end smartphones, TrendForce forecast.
TSMC’s local rival United Microelectronics Corp (UMC, 聯電) is expected to expand its revenue to US$5 billion, an 11 percent annual increase from this year’s revenue, which is set to range from US$4.5 billion to US$4.7 billion, the researcher predicted, adding that the growth would come from increased demand for its 28nm chips and a bigger market presence in China.
Next year, UMC is expected to spend most of its capital budget on 14nm technology and expand its capacity at its 12-inch factory in Xiamen, China, the researcher said.
China’s Semiconductor Manufacturing International Corp’s (SMIC, 中芯) revenue is expected to rise to US$2.5 billion next year from US$2.1 billion and US$2.3 billion this year, on the back of increasing demand for its 28nm chips, the researcher projected.
Demand for less advanced chips would continue to be strong, thanks to support from Chinese chip designers, the researcher said.
TSMC and UMC stocks yesterday fell 0.7 percent and 1.24 percent to NT$142 and NT$11.95, respectively, while the TAIEX dropped 1.31 percent.
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