AMAT's no:1 customer, TSMC, seems to have gone from strength to strength.
1H2014 results seem to be consistent with industry wide growth expectation. Have to see if AMAT & UMS could achieve similar 1H results in term of revenue growth.
TSMC's net margin of 32.6% would certainly be hard to beat by other foundries, I would guess.
Meanwhile, 2Q revenue for AMAT's no:3 customer, Intel, was better than expected - demand for PC chips seemed to have improved
Key customers of AMAT are doing well - so AMAT should be doing well - and UMS should be doing well - (provided no deterioration of AMAT-UMS relationship) - ha-ha !
(vested)
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TSMC Q2 net profit hits record high (update)
2014/07/16 18:44:16
Taipei, July 16 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chip maker, said its net profit for the second quarter of this year hit an all-time high, with analysts attributing the growth to an increase in demand for high-end technology.......................................................................
The strong results reflected rising demand for a wide range of communications, computers, consumer electronics and industrial electronics, which gave a boost to TSMC's high-end technology, analysts said.
Chips made on the advanced 28 nanometer process accounted for 37 percent of TSMC's total sales over the quarter, up from 34 percent in the previous three-month period, while chips made on the 40/45nm process made up 19 percent of total sales, down from 21 percent.
TSMC Chairman Morris Chang told an investor conference that the 28nm process drove TSMC's growth over the past three years, while the more advanced 20nm and 16nm technology is expected to be the major growth driver over the next three....................................
http://focustaiwan.tw/news/aeco/201407160024.aspx
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TSMC Reports Second Quarter EPS of NT$2.30
Issued by: TSMC
Issued on: 2014/07/16
Hsinchu, Taiwan, R.O.C., July 16, 2014 -- TSMC today announced consolidated revenue of NT$183.02 billion, net income of NT$59.7 billion, and diluted earnings per share of NT$2.3 (US$0.38 per ADR unit) for the second quarter ended June 30, 2014.
Year-over-year, second quarter revenue increased 17.4% while net income and diluted EPS both increased 15.2%, mainly reflecting the increase in tax rate. Compared to first quarter 2014, second quarter results represent a 23.5% increase in revenue, and a 24.7% increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.
In US dollars, second quarter revenue increased 24% from the previous quarter and increased 16.3% year-over-year.
Gross margin for the quarter was 49.8%, operating margin was 38.6%, and
net profit margin was 32.6%.
Shipments of 28-nanometer process technology accounted for 37% of total wafer revenues. 40/45-nanometer accounted for 19% of total wafer revenues. Advanced technologies, defined as 40/45-nanometers and more advanced technologies, accounted for 56% of total wafer revenues.
“In the second quarter, we saw strength of demand for our wafers across all segments, while our 28-nanometer technology business grew more than 30% from the previous quarter to account for 37 percent of our total wafer sales” said Lora Ho, SVP and Chief Financial Officer of TSMC. “While we expect the strong demand for our wafers to continue, the new technology node, our 20-nanometer System-on-Chip, has begun volume shipments and is expected to account for about 10 percent of our wafer revenue in the third quarter. Based on our current business outlook and exchange rate assumption of 1 US dollar to 29.81 NT dollars, management expects overall performance for third quarter 2014 to be as follows”:
• Revenue is expected to be between NT$206 billion and NT$209 billion;
• Gross profit margin is expected to be between 48.5% and 50.5%;
• Operating profit margin is expected to be between 38.5% and 40.5%.....................................
http://www.tsmc.com/tsmcdotcom/PRListing...language=E
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Intel Reports Second-Quarter Revenue of $13.8 Billion
•
Achieves Record Quarterly Microprocessor Unit Shipments
• Net Income of $2.8 Billion, Up 40 Percent Year-Over-Year
• Targets $4 Billion for Share Repurchases in the Third Quarter
SANTA CLARA, Calif., July 15, 2014 -- Intel Corporation today reported second-quarter revenue of $13.8 billion, operating income of $3.8 billion, net income of $2.8 billion and EPS of $0.55. The company generated approximately $5.5 billion in cash from operations, paid dividends of $1.1 billion, and used $2.1 billion to repurchase 74 million shares of stock.
"
Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data center to PCs to the Internet of Things," said Intel CEO Brian Krzanich. "With the ramp of our Baytrail SoC family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40 million unit tablet goal. In addition, we hit an important qualification milestone for our upcoming 14nm Broadwell product, and expect the first systems to be on shelves during the holidays.".............
Q2 Key Business Unit Trends
• PC Client Group revenue of $8.7 billion, up 9 percent sequentially and up 6 percent year-over-year.
• Data Center Group revenue of $3.5 billion, up 14 percent sequentially and up 19 percent year-over-year.
• Internet of Things Group revenue of $539 million, up 12 percent sequentially and up 24 percent year-over-year.
• Mobile and Communications Group revenue of $51 million, down 67 percent sequentially and down 83 percent year-over-year.
• Software and services operating segments revenue of $548 million, down 1 percent sequentially and up 3 percent year-over-year...........
http://www.intc.com/releasedetail.cfm?Re...cial20News
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Cumulative shipments of 300Mbps smartphone modems to exceed 700 million by 2019, says ABI Research
Press release; Joseph Tsai, DIGITIMES [Tuesday 15 July 2014]
Shipments of second-generation LTE basebands, commonly called Cat4, enabling mobile users to enjoy up to 150Mbps bandwidth, barely exceeded 42 million in 2013. However, key chipset suppliers are stretching their muscles for next-generation basebands that will enable speeds of up to 300Mbps, namely Cat6 chips. New findings from ABI Research indicate that cumulative shipments of Cat6 chips targeting smartphones are expected to exceed 700 million by the end of 2019.
"Although a number of chipset suppliers have announced their Cat6 basebands, mobile operators are not yet launching commercial networks that will allow users to enjoy mobile broadband speeds exceeding 150Mbps. An exception to this is SK Telecom which recently launched an LTE-Advanced service, offering speeds up to 225Mbps," commented Malik Saadi, practice director at ABI Research.
Qualcomm is the market leader when it comes to supplying LTE chips for mobile devices.....................................................................
http://www.digitimes.com/news/a20140715PR202.html