Sat, Sep 28, 2019 - Page 12 News List

TSMC forecast to see second-half sales soar over 30% from first half: report

Staff writer with CNA

Due to solid global demand for its high-end technology processes, Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract chipmaker, expects to see revenue for the second half of this year rise more than 30 percent from the first half, IC Insights said.

The US-based market information advisory firm said that driven by rising demand for chips made using its advanced 7-nanometer (nm) process technology, TSMC's second-half revenue is forecast to increase 32 percent sequentially, more than three times the 10 percent growth forecast for the global semiconductor industry.

“There is little doubt that 7nm application processors for new smartphones from Apple [Inc] and Huawei [Technologies Co, 華為] are driving the forecast for a strong second-half rebound in TSMC’s sales,” IC Insights said.

TSMC started commercial deployment of 7-nanometer process technology last year and is developing more advanced technologies, with mass production of 5-nanometer and 3-nanometer processes scheduled to begin next year and in 2022 respectively.

Earlier this year, TSMC announced that capital expenditure for this year would top US$11 billion, instead of its prior estimate that it would range between US$10 billion and US$11 billion, as it would pour more funds into high-end technology development at a time when global demand for advanced chips is growing.

Due to a slower performance in the first half of the year, TSMC’s full-year sales are expected to grow about 1 percent from a year earlier, IC Insights added.

TSMC remains a dominant player in the global pure foundry industry and the company’s revenue this year from technologies more advanced than 40-nanometer process is expected to be over seven times higher than the combined sales of smaller rivals United Microelectronics Corp (聯電) and Semiconductor Manufacturing International Corp (中芯) this year.

The report said that 7-nanometer is expected to account for 33 percent of TSMC’s total revenue in the fourth quarter, and 26 percent for the full year, compared with 9 percent last year.

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