15-01-2015, 06:49 PM
TSMC reports 4.8% increase in 4Q14 net income
Rodney Chan, DIGITIMES, Taipei [Thursday 15 January 2015]
TSMC has announced consolidated revenues of NT$222.52 billion (US$6.96 billion), net income of NT$79.99 billion, and diluted earnings per share (EPS) of NT$3.08 (US$0.50 per ADR unit) for the fourth quarter ended December 31, 2014.
Year-over-year, fourth-quarter revenues increased 52.6% while net income and diluted EPS both increased 78.5%. Compared to third-quarter 2014, fourth-quarter results represent a 6.4% increase in revenues, and a 4.8% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.
In US dollars, fourth-quarter revenues increased 3.7% from the previous quarter and increased 46.4% year-over-year.
Gross margin for the quarter was 49.7%, operating margin was 39.6%, and net profit margin was 35.9%.
Shipments of 20nm process technology accounted for 21% of total wafer revenues and 28nm accounted for 30% of total wafer revenues. Advanced technologies, defined as 28nm and 20nm technologies, accounted for 51% of total wafer revenues.
"The strong demand for TSMC's advanced technologies continued into the fourth quarter. Our 20-nanometer production was ramped-up at record speed and reached 21% of our fourth-quarter revenue," said Lora Ho, SVP and chief financial officer of TSMC. "Despite a slightly weaker demand due to seasonality, we anticipate a more favorable exchange rate in the first quarter which will moderate the impact from seasonality.
Ho said based on TSMC's current business outlook and exchange rate assumption of US$1 to NT$31.80, the company management expects overall performance for first quarter 2015 to be as follows: Revenues are expected to be between NT$221 billion and NT$224 billion; gross profit margin is expected to be between 48.5% and 50.5%; and operating profit margin is expected to be between 38.5% and 40.5%.
TSMC expects the capital expenditures for 2015 to be between US$11.5 billion and US$12 billion...............................................
http://www.digitimes.com/news/a20150115PR201.html
________________________________________________________________________________________________________________
China to Write $10B Check for Chips
Rick Merritt
1/14/2015
HALF MOON BAY, Calif. — China is expected to invest this year half the $20 billion fund it set aside to grow its semiconductor industry. As much as 70% of it is expected to target its domestic wafer fabs.
The initiative is the latest of several failed attempts over the past 25 years to make China a significant producer of chips. This time around the government is taking a more market-oriented approach that will give it a better shot at success, said one executive bidding for as much as half the funds.
"It's not clear if the new scheme will work, but I think it's the right direction," said Simon Yang, chief executive of XMC, one of China's two 12-inch fabs that hopes to get as much as $10 billion.
China imports as much as half the world's chips but produces less than 10% of them, an expensive gap state planners want to narrow. Since 1990, the government has bankrolled major chip efforts about every five years, spawning at least a half dozen fabs to date.
"So far you do not see any of them that can grow sustainably by themselves, meanwhile Taiwan and Korea have grown into powerhouses of advanced wafer manufacturing," said Yang in a talk at the Industry Strategy Symposium here.
Past attempts failed in part because state planners who funded them were too slow to make decisions and take risks needed to launch a chip factory. In addition, the funds were often spread too thin across many provincial projects.
"The objective this time is to focus the money in a few companies and locations," Yang said, although decisions on who gets what when have not yet been made.
In addition, the new approach focuses on letting professional managers control projects responding to market forces. In the past, the projects were sometimes beholden to committees of political leaders. However, the current fund insists upon 6% to 8% returns which may be difficult for the notoriously cyclical chip industry.
http://www.eetimes.com/document.asp?doc_id=1325289
(vested)
Rodney Chan, DIGITIMES, Taipei [Thursday 15 January 2015]
TSMC has announced consolidated revenues of NT$222.52 billion (US$6.96 billion), net income of NT$79.99 billion, and diluted earnings per share (EPS) of NT$3.08 (US$0.50 per ADR unit) for the fourth quarter ended December 31, 2014.
Year-over-year, fourth-quarter revenues increased 52.6% while net income and diluted EPS both increased 78.5%. Compared to third-quarter 2014, fourth-quarter results represent a 6.4% increase in revenues, and a 4.8% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.
In US dollars, fourth-quarter revenues increased 3.7% from the previous quarter and increased 46.4% year-over-year.
Gross margin for the quarter was 49.7%, operating margin was 39.6%, and net profit margin was 35.9%.
Shipments of 20nm process technology accounted for 21% of total wafer revenues and 28nm accounted for 30% of total wafer revenues. Advanced technologies, defined as 28nm and 20nm technologies, accounted for 51% of total wafer revenues.
"The strong demand for TSMC's advanced technologies continued into the fourth quarter. Our 20-nanometer production was ramped-up at record speed and reached 21% of our fourth-quarter revenue," said Lora Ho, SVP and chief financial officer of TSMC. "Despite a slightly weaker demand due to seasonality, we anticipate a more favorable exchange rate in the first quarter which will moderate the impact from seasonality.
Ho said based on TSMC's current business outlook and exchange rate assumption of US$1 to NT$31.80, the company management expects overall performance for first quarter 2015 to be as follows: Revenues are expected to be between NT$221 billion and NT$224 billion; gross profit margin is expected to be between 48.5% and 50.5%; and operating profit margin is expected to be between 38.5% and 40.5%.
TSMC expects the capital expenditures for 2015 to be between US$11.5 billion and US$12 billion...............................................
http://www.digitimes.com/news/a20150115PR201.html
________________________________________________________________________________________________________________
China to Write $10B Check for Chips
Rick Merritt
1/14/2015
HALF MOON BAY, Calif. — China is expected to invest this year half the $20 billion fund it set aside to grow its semiconductor industry. As much as 70% of it is expected to target its domestic wafer fabs.
The initiative is the latest of several failed attempts over the past 25 years to make China a significant producer of chips. This time around the government is taking a more market-oriented approach that will give it a better shot at success, said one executive bidding for as much as half the funds.
"It's not clear if the new scheme will work, but I think it's the right direction," said Simon Yang, chief executive of XMC, one of China's two 12-inch fabs that hopes to get as much as $10 billion.
China imports as much as half the world's chips but produces less than 10% of them, an expensive gap state planners want to narrow. Since 1990, the government has bankrolled major chip efforts about every five years, spawning at least a half dozen fabs to date.
"So far you do not see any of them that can grow sustainably by themselves, meanwhile Taiwan and Korea have grown into powerhouses of advanced wafer manufacturing," said Yang in a talk at the Industry Strategy Symposium here.
Past attempts failed in part because state planners who funded them were too slow to make decisions and take risks needed to launch a chip factory. In addition, the funds were often spread too thin across many provincial projects.
"The objective this time is to focus the money in a few companies and locations," Yang said, although decisions on who gets what when have not yet been made.
In addition, the new approach focuses on letting professional managers control projects responding to market forces. In the past, the projects were sometimes beholden to committees of political leaders. However, the current fund insists upon 6% to 8% returns which may be difficult for the notoriously cyclical chip industry.
http://www.eetimes.com/document.asp?doc_id=1325289
(vested)