Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it has started volume production of 16-nanometer (nm) chips, amid speculation that it has lost orders for Apple Inc’s new iPhone.
The statement, in a rare move by the world’s largest contract chipmaker to quell speculation, follows a report by the Chinese-language Economic Daily News that Apple has cut its orders to TSMC for A9 processors, and placed bigger orders with Samsung Electronics Co and GlobalFoundries Inc, citing a report released by KGI Securities Co (凱基證券).
TSMC’s share price tumbled 3.01 percent to close at a nine-month low of NT$129 in Taipei trading yesterday, albeit off the day’s low of NT$125.50.
KGI’s report runs counter to CIMB analyst Eric Lin’s (林育名) forecast that TSMC would boost its 16nm capacity to gain more market share from Apple’s A9, A9x and S2 chips used in iPhones, tablets and wearable devices.
TSMC said in a filing with the Taiwan Stock Exchange that its “16nm [chips] smoothly entered volume production as expected.”
TSMC last month said that it was scheduled to ramp up production of an enhanced version of 16nm chips, or 16 FinFet+ chips, in the third quarter and that production would reach a high volume in the same quarter.
The Hsinchu-based chipmaker yesterday reported a 35 percent jump in revenue for last month of NT$80.95 billion (US$2.55 billion), compared with NT$59.96 billion in June. That represented an annual growth of 28.3 percent from NT$64.93 billion.
Last month, TSMC predicted that revenue this quarter would grow between 0.76 percent and 2.22 percent sequentially to between NT$207 billion and NT$210 billion, falling short of CIMB’s forecast of a 5 percent quarterly growth.
Local rival United Microelectronics Corp (UMC, 聯電) yesterday said that its revenue rose 5.31 percent to NT$12.71 billion last month from NT$12.06 billion the previous month.
UMC last month said that weak end product demand would cause a 5 percent sequential decline in shipments, while average selling prices would slide 3 percent.
STEEP DECLINE: Yesterday’s drop was the third-steepest in its history, the steepest being Monday’s drop in the wake of the tariff announcement on Wednesday last week Taiwanese stocks continued their heavy sell-off yesterday, as concerns over US tariffs and unwinding of leveraged bets weighed on the market. The benchmark TAIEX plunged 1,068.19 points, or 5.79 percent, to 17,391.76, notching the biggest drop among Asian peers as it hit a 15-month low. The decline came even after the government on late Tuesday authorized the NT$500 billion (US$15.2 billion) National Stabilization Fund (國安基金) to step in to buoy the market amid investors’ worries over tariffs imposed by US President Donald Trump. Yesterday’s decline was the third-steepest in its history, trailing only the declines of 2,065.87 points on Monday and
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
TARIFF CONCERNS: The chipmaker cited global uncertainty from US tariffs and a weakening economic outlook, but said its Singapore expansion remains on track Vanguard International Semiconductor Corp (世界先進), a foundry service provider specializing in producing power management and display driver chips, yesterday withdrew its full-year revenue projection of moderate growth for this year, as escalating US tariff tensions raised uncertainty and concern about a potential economic recession. The Hsinchu-based chipmaker in February said revenues this year would grow mildly from last year based on improving supply chain inventory levels and market demand. At the time, it also anticipated gradual quarter revenue growth. However, the US’ sweeping tariff policy has upended the industry’s supply chains and weakened economic prospects for the world economy, it said. “Now
RSS