Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday raised its planned capital expenditure for this year to top US$17 billion, from an original budget of US$15 billion to US$16 billion, as 5G infrastructure deployment and high-computing-performance applications (HPC) drive demand for advanced technologies.
The world’s biggest contract chipmaker also revised up its revenue growth forecast for this year to 20 percent, outpacing the foundry industry’s forecast growth of mid-to-high-teens percent and the overall semiconductor industry’s expected “slight” growth.
In April, TSMC forecast that its revenue would grow by 15 to 19 percent this year.
Photo: David Chang, EPA-EFE
Due to the US’ restrictions on exports containing US technologies to China’s Huawei Technologies Co (華為), TSMC said it has since May 15 stopped taking new orders from its second-biggest customer after Apple Inc.
TSMC has no plans to ship wafers to Huawei after Sept. 15 as Washington has not made a final decision yet, it added.
Asked whether TSMC would be able to fill its 5-nanometer capacity after losing Huawei’s orders, TSMC chief executive officer C.C. Wei (魏哲家) told an earnings conference: “We should have no problem.”
The company is working closely with customers to fill up the vacuum left by Huawei, Wei said.
Its clients are preparing for 5G and HPC applications, as well as trying to ensure supply security in light of the COVID-19 uncertainty, he said.
The US ban does not include shipments of standard products to Huawei, TSMC chairman Mark Liu (劉德音) said, adding that Huawei might shift strategy “by procuring general-purpose products.”
On Wednesday, market researcher Omdia said that Huawei might replace smartphone chips designed by its semiconductor unit Hisilicon Technologies Co (海思) with those designed by MediaTek Inc (聯發科) for general use, rather than customized for Huawei.
MediaTek is also a customer of TSMC.
TSMC reported a record net profit of NT$120.82 billion (US$4.08 billion) for last quarter, up 81 percent from NT$66.77 billion a year ago and an increase of 3.3 percent from NT$116.99 billion in the previous quarter.
Earnings per share rose to NT$4.66 from NT$2.57 a year earlier and NT$4.51 in the prior quarter.
“Moving into the third quarter of 2020, we expect our businesses to be supported by strong demand for our industry-leading 5-nanometer and 7-nanometer technologies, driven by 5G smartphones, HPC and IoT [Internet of things]-related applications,” Wei said.
Revenue is forecast to rise between 7.32 and 9.74 percent to US$11.2 billion and US$11.5 billion this quarter, from US$10.38 billion last quarter, the company said.
However, gross margin is expected to drop to between 50 and 52 percent this quarter from 53 percent last quarter, it said.
As Google expands its footprint in Taiwan, it plans to recruit software and hardware talent for its Google Nest smart device team, a chip development team, and teams to support its Pixel and Chromebook products, Google Taiwan said yesterday. Supply chain management talent will also be in demand, the company said at an online event. “There will always be openings for software engineers, hardware engineers and project managers,” Google Taiwan human resources head Vanessa Lu (呂亞樵) said. “The strength of the Taiwanese industry is very clear,” Lu said, adding that the company would continue to invest in Taiwan. Lu also doused some
Apple Inc’s iPhone 13 debut was met with a stock slump on Tuesday, keeping with a tradition of poor share price performance on the day new devices are unveiled. Shares of the technology giant sank after Apple executives, including chief executive officer Tim Cook, presented the new lineup of phones and other devices. The stock fell 1 percent to close at US$148.12 in New York trading. Prior to Tuesday, Apple’s shares fell on three-quarters of the days Apple unveiled new iPhones, data compiled by Bloomberg showed. Excluding Apple’s 8.3 percent rally on the day cofounder Steve Jobs announced the first iPhone in
BEATING SCHEDULE: Government plans are for nacelle assemblies to be totally local from next year, but Orsted Taiwan said that it was going ‘above and beyond’ Wind turbine manufacturer Siemens Gamesa Renewable Energy SA yesterday inaugurated Taiwan’s first nacelle assembly plant at the Port of Taichung, its first assembly facility for offshore nacelles outside Europe. Vice Premier Shen Jong-chin (沈榮津), a long-time champion of Taiwan’s ambitions to become a regional hub in the offshore wind farm industry, described the plant as a “milestone” at a ceremony at the plant. “The completion of Siemens Gamesa’s nacelle assembly plant is a milestone for the development of the offshore wind farm industry in Taiwan and a step toward localizing the supply chain,” Shen said. “This is only the beginning. My great hope
GOING PUBLIC: A merger with Poema Global Holdings should double Gogoro’s value to US$2.35 billion, as it rejects local markets to compete with global vehicle brands Gogoro Inc (睿能創意), an electric scooter maker and a battery swapping system provider, yesterday said it targets to launch an initial public offering (IPO) on Nasdaq via a merger with the special-purpose acquisition company (SPAC) Poema Global Holdings Corp in the first quarter next year. The combination would set Gogoro’s enterprise value at US$2.35 billion, more than doubling the US$1 billion value that defines a “unicorn.” The planned merger is also expected to provide proceeds of about US$550 million to Gogoro’s balance sheet, including an oversubscribed private investment in public equity (PIPE) of more than US$250 million and a trust of