Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is likely to benefit from orders for new processors to be used in Samsung Electronics Co’s next generation of Galaxy smartphones, JPMorgan Securities said on Monday.
Similar to its previous Galaxy S3, Samsung is expected to adopt multiple solutions for the application processors and baseband chips in its new Galaxy S4, which will be unveiled in New York on March 14, JPMorgan said in a note to clients.
For the US version of the S4, Samsung will probably use Qualcomm Inc’s Snapdragon 600 quad-core processor, which is manufactured using TSMC’s 28-nanometer (nm) process technology, the brokerage said.
However, the South Korean electronics giant may use its in-house eight-core processor for the S4 models in Europe, JPMorgan said.
STRONG OUTLOOK
“We see Samsung’s switch to Qualcomm for its US shipments as positive for the semiconductor sector,” Rick Hsu (徐稦成), a Taipei-based analyst at JPMorgan, wrote in the note.
“We believe TSMC is enjoying the extra benefits — a reason why its first-quarter revenue is expected to be stronger than seasonally expected,” he said.
At an investor meeting last month, TSMC forecast its first-quarter sales would be between NT$127 billion (US$4.28 billion) and NT$129 billion, changing little from the previous quarter despite coming during the high-tech sector’s slow season.
TSMC chairman Morris Chang (張忠謀) said the 28nm process will serve as the driving force behind the company’s sales growth for this year, with production of 28nm process chips set to triple from a year earlier.
ONLY TWO
Hsu said that TSMC, along with Samsung, are two of the few foundries capable of operating the 28nm process commercially, meaning that extra demand from Qualcomm could take away capacity for other customers.
As a result, he believes TSMC’s revenue growth in the second quarter would likely increase by less than 10 percent, which will be lower than the seasonal level, since the extra 28nm orders from Qualcomm will already be reflected in first quarter sales.
ADDED BENEFITS
Hsu also said he expected the extra 28nm orders would benefit integrated circuit packaging and testing service providers — including Taiwan’s Advanced Semiconductor Engineering Inc (ASE. 日月光半導體) and Siliconware Precision Industries Co (SPIL, 矽品精密) — beginning in the second quarter.
TSMC shares were down 0.48 percent to NT$104.5 as of 12:09pm in Taipei trading yesterday.
ASE shares had dropped 0.61 percent to NT$24.5 and SPIL shares were down 0.32 percent to NT$31.35.
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors