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.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
CHEMICAL FIRE: 10 Indian employees were injured by smoke inhalation at a Tata Electronics plant in Tamil Nadu state that produces components for Apple Inc At least 10 people received medical treatment, with two hospitalized after a major fire on Saturday disrupted production at a key Tata Electronics Pvt Ltd plant in southern India that makes Apple Inc’s iPhone components. The fire occurred at the plant in the city of Hosur in Tamil Nadu state that makes some iPhone components. It broke out near another building inside the Tata complex, which was to begin producing complete iPhones in the coming months. The fire was contained to one building and has been extinguished fully, top district administrative official K.M. Sarayu said. No decision has been made on when
RSS