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.
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
UNCERTAINTIES: Exports surged 34.1% and private investment grew 7.03% to outpace expectations in the first half, although US tariffs could stall momentum The Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) yesterday raised its GDP growth forecast to 3.05 percent this year on a robust first-half performance, but warned that US tariff threats and external uncertainty could stall momentum in the second half of the year. “The first half proved exceptionally strong, allowing room for optimism,” CIER president Lien Hsien-ming (連賢明) said. “But the growth momentum may slow moving forward due to US tariffs.” The tariff threat poses definite downside risks, although the scale of the impact remains unclear given the unpredictability of US President Donald Trump’s policies, Lien said. Despite the headwinds, Taiwan is likely
READY TO BUY: Shortly after Nvidia announced the approval, Chinese firms scrambled to order the H20 GPUs, which the company must send to the US government for approval Nvidia Corp chief executive officer Jensen Huang (黃仁勳) late on Monday said the technology giant has won approval from US President Donald Trump’s administration to sell its advanced H20 graphics processing units (GPUs) used to develop artificial intelligence (AI) to China. The news came in a company blog post late on Monday and Huang also spoke about the coup on China’s state-run China Global Television Network in remarks shown on X. “The US government has assured Nvidia that licenses will be granted, and Nvidia hopes to start deliveries soon,” the post said. “Today, I’m announcing that the US government has approved for us
The National Stabilization Fund (NSF, 國安基金) is to continue supporting local shares, as uncertainties in international politics and the economy could affect Taiwanese industries’ global deployment and corporate profits, as well as affect stock movement and investor confidence, the Ministry of Finance said in a statement yesterday. The NT$500 billion (US$17.1 billion) fund would remain active in the stock market as the US’ tariff measures have not yet been fully finalized, which would drive international capital flows and global supply chain restructuring, the ministry said after the a meeting of the fund’s steering committee. Along with ongoing geopolitical risks and an unfavorable
RSS