TSMC ‘ready’ for better sales, economy in 2nd half of 2015
The economy will take a turn for the better in the latter half of the year, and Taiwan Semiconductor Manufacturing Company’s (TSMC, ) revenues for 2015 will grow more than 10 percent from the previous year, said TSMC Chairman Morris Chang ( ) in an investor conference held yesterday.
C.C. Wei ( ), co-CEO of TSMC said in his briefing that in recent years the company has made the right strategic decisions, leading to new peaks in company revenues and profits, as well as steady growth for TSMC’s after-tax income and earnings per share.
TSMC’s market share is growing by the year. Its foundry business now has 54-percent market share, and the shipment of 12-inch wafers grew 19 percent to reach 8.26 million last year.
Chang took the chance to refute a recent media report that TSMC orders may be slashed by 50 percent in the future due to competition.
The chairman confessed, however, that strong competitors have emerged in the past 2-3 years — such as Samsung and Intel — but TSMC has long stood up to compe- tition and is not afraid of anyone of them.
TSMC is on track for revenue growth, Chang said. Sales soared 78.6 percent while after-tax income doubled from 2012 to 2014. TSMC’s share price rose from NT$70 to NT$140 during this period, and the board has decided to increase the dividend per share to NT$4.5, up from NT$3 in past years.
China’s Supply Chains Not a
The TSMC chairman commented on China’s rising supply chains that many believe are a threat to Taiwanese manufacturers in China.
While Beijing has the will and capital to develop local supply chains, it lacks the technical know-how that is essential in the semiconductor industry, Chang said.
It takes time to accumulate the technical know-how, the head of TSMC pointed out. While countries around the world are all advancing their technologies, catching up with TSMC will not be easy, and the gap between TSMC and its competitors has actually widened over the past decade, Chang said.
The technologies of semiconductor fabrication as well as integrated circuit (IC) packaging and testing are both improving rapidly. In China’s case, Chang predicted that Chinese manufacturers will only manage to catch up with basic IC packaging and testing skills.
TSMC will have the edge as long as it progresses at a faster pace, Chang said.
In the field of IC design, while there are more Chinese companies providing the service, they are not necessarily more competitive. Taiwanese chip designer MediaTek Inc. ( ) is a very good company; it is working very hard and is doing fine, Chang said.
Taiwan Semiconductor Manufacturing Company (TSMC, ) Chairman Morris Chang ( ) speaks at an investor conference, yesterday. Chang said the company was successful last year, and predicted further sales growth — of more than 10 percent — in 2015.