TSMC ‘ready’ for bet­ter sales, econ­omy in 2nd half of 2015

The China Post - - TAIWAN BUSINESS - BY JOHN LIU

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

Threat: Chang

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.

CNA

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.

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