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.
soft landing: The US’ rate-setting FOMC finds itself in a difficult situation as it seeks to address inflation through interest rate hikes while avoiding a recession The US Federal Reserve is widely expected to hold interest rates steady on Wednesday after a summer of mixed economic data, while leaving the door open to another hike if needed. The Fed has raised interest rates 11 times over the past 18 months, lifting its key lending rate to a level not seen for 22 years as it tackles inflation still stubbornly above its long-term target of 2 percent. Analysts and traders broadly expect the US central bank to hold rates steady on Wednesday in order to give policymakers more time to assess the health of the world’s largest economy. “We think
AI TREND: TSMC has been rapidly expanding capacity to meet a spike in demand for advanced packaging services, but still expects supplies to be tight for 18 months Arizona is in talks with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) about advanced chip packaging, state Governor Katie Hobbs said yesterday, which is crucial for the manufacturing of artificial intelligence (AI) chips. TSMC, which is building a US$40 billion chip factory in the US state, has not announced plans to build facilities for advanced chip packaging in the US. Advanced packaging processes stitch multiple chips together into a single device, lowering the added cost of more powerful computing. “Part of our efforts at building the semiconductor ecosystem is focusing on advanced packaging, so we have several things in the works around that
At a sprawling South Korean arms factory on Friday, a high-tech production line of robots and super-skilled workers were rapidly churning out weapons that could, eventually, play a role in Ukraine. Since the Russian invasion last year, the Hanwha Aerospace factory in the southern city of Changwon has expanded production capacity three times, workers told reporters, as South Korea ramps up arms exports while traditional behemoths like the US struggle with production shortages. Longstanding domestic policy bars Seoul from selling weapons into active conflicts, but even so it signed deals worth US$17.3 billion last year, including a US$12.7 billion agreement with NATO
Tailwinds: Blockbuster earnings at Nvidia Corp have sparked hopes of a tech sector boom; Taiwanese chipmakers are hopeful benefits will come to them too The worst could be over for the New Taiwan dollar as China’s economic recovery and a rebound in the chip industry will support the beleaguered currency, analysts said. The NT dollar is on course to weaken for a sixth month, the longest stretch since 2006, after foreign funds turned sour on its technology sector and risk sentiment deteriorated on slower growth in China. The tide seems to be turning now on nascent signs of stabilization in China’s economy — its biggest trading partner — following policy boosts. The yuan emerged as the best-performing Asian currency last week, followed by the Japanese yen