Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, on Saturday announced that it will distribute more than NT$400 million (US$12.75 million) in bonuses to its employees at the end of next month.
Speaking at the company’s annual sports day in Hsinchu, TSMC chairman Morris Chang (張忠謀) said that the company will distribute the bonuses as a reward for employees’ contributions to the firm.
More than 36,000 employees who started working for TSMC before May 31 will receive NT$12,000 bonuses, Chang said.
Eligible employees include production line workers, engineers and technicians, as well as administrative personnel.
TSMC posted a record profit of NT$96.76 billion in the third quarter, up 33.4 percent from the previous quarter and 28.4 percent from a year earlier.
The company said it is counting on a pool of talented personnel and high-end technologies to stay competitive in the global market.
Chang said TSMC will continue to focus on its contract chipmaking business and defend its No. 1 position amid intensifying competition from rival companies such as Intel Corp, Samsung Electronics Co and some Chinese firms.
Chang said he has faith in TSMC’s efforts to develop the 10-nanometer process technology, which Samsung has also been developing.
He said that TSMC is expected to surpass Samsung in the 10-nanometer process development by moving more quickly than the South Korean firm.
TSMC last year launched the commercial production of chips using the 16-nanometer process technology and is to begin mass production of chips based on the 10-nanometer process technology in the first quarter of next year. The company is planning to start commercial production of chips by adopting the more advanced 7-nanometer process technology in the first quarter of 2018.
Analysts said TSMC might dominate the global 7-nanometer market in 2018, increasing the odds that it will secure all of the orders placed by Apple Inc for new iPhone models to be unveiled that year.
Chang said TSMC has been riding a wave of solid demand in the global smartphone market, adding that the company’s shipments could peak in the second and third quarters of next year after a slow season in the first quarter.
As for China’s move to develop its own contract chipmaking industry by expanding production capacity, Chang said TSMC expects the competition to intensify, but due to its strong lead in advanced technology development, it will continue to dominate the global market.
Meanwhile, Chang said the global economy is expected to improve next year, even though it is haunted by uncertainty from the UK’s exit from the EU, a possible rate hike by the US Federal Reserve and a slowdown in China’s economy.
The IMF earlier this month forecast that the global economy will grow 3.4 percent next year after an estimated increase of 3.1 percent this year.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB