Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is expected to expand its global market share to more than 50 percent this year and to 60 percent in the next few years, benefiting primarily from its leadership position in advanced technologies, Credit Suisse AG said yesterday.
That would represent a big jump from the company’s 35 percent to 36 percent market share in 2000, according to a report released yesterday by Credit Suisse’s Taipei securities branch.
TSMC has a higher share in the two leading nodes — 28-nanometer and 20-nanometer technologies — than its overall market share, the brokerage said.
TSMC chairman Morris Chang (張忠謀) told investors in October last year that the chipmaker has an about 80 percent share in the 28nm market.
TSMC’s revenue has grown by a composite average rate of 17 percent over the past 10 years, outpacing the 16 percent increase for fabless companies and the 5 percent rise for the overall semiconductor industry, Credit Suisse analyst Randy Abrams said in the report.
At the brokerage’s annual Asian Investment Conference held in Hong Kong yesterday, TSMC management said the firm would improve its gross margin this year on better market share and accelerated cost-reduction programs.
That is “more optimistic than the [company’s] prior goal of keeping it [gross margin] flat,” Abrams said.
Last year, TSMC’s gross margin slid to 47.1 percent from 48.2 percent in 2012.
The company said two weeks ago that it was expecting its gross margin to rise to 47 percent in the current quarter from 44.5 percent last quarter.
That compared with the firm’s original guidance of between 44.5 percent and 46.5 percent.
Revenue is expected to grow 0.82 percent to NT$147 billion (US$4.8 billion) this quarter from NT$145.81 billion last quarter, thanks primarily to rising demand for 28nm chips and inventory restocking demand.
Credit Suisse retained its “outperform” rating on TSMC with a target price at NT$130, improving about 14.54 percent from the stock’s closing price of NT$113.5 yesterday.
Anna Bhobho, a 31-year-old housewife from rural Zimbabwe, was once a silent observer in her home, excluded from financial and family decisionmaking in the deeply patriarchal society. Today, she is a driver of change in her village, thanks to an electric tricycle she owns. In many parts of rural sub-Saharan Africa, women have long been excluded from mainstream economic activities such as operating public transportation. However, three-wheelers powered by green energy are reversing that trend, offering financial opportunities and a newfound sense of importance. “My husband now looks up to me to take care of a large chunk of expenses,
SECTOR LEADER: TSMC can increase capacity by as much as 20 percent or more in the advanced node part of the foundry market by 2030, an analyst said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to lead its peers in the advanced 2-nanometer process technology, despite competition from Samsung Electronics Co and Intel Corp, TrendForce Corp analyst Joanne Chiao (喬安) said. TSMC’s sophisticated products and its large production scale are expected to allow the company to continue dominating the global 2-nanometer process market this year, Chiao said. The world’s largest contract chipmaker is scheduled to begin mass production of chips made on the 2-nanometer process in its Hsinchu fab in the second half of this year. It would also hold a ceremony on Monday next week to
TECH CLUSTER: The US company’s new office is in the Shalun Smart Green Energy Science City, a new AI industry base and cybersecurity hub in southern Taiwan US chip designer Advanced Micro Devices Inc (AMD) yesterday launched an office in Tainan’s Gueiren District (歸仁), marking a significant milestone in the development of southern Taiwan’s artificial intelligence (AI) industry, the Tainan City Government said in a statement. AMD Taiwan general manager Vincent Chern (陳民皓) presided over the opening ceremony for the company’s new office at the Shalun Smart Green Energy Science City (沙崙智慧綠能科學城), a new AI industry base and cybersecurity hub in southern Taiwan. Facilities in the new office include an information processing center, and a research and development (R&D) center, the Tainan Economic Development Bureau said. The Ministry
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
RSS