Taiwan Semiconductor Manufacturing Company Ltd.NYSE
Taiwan Semi Running Hard ... But Is The Track A Treadmill?
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Nov. 29, 7:44 AM
- Taiwan Semiconductor (NYSE:TSM) is planning to roll out a 12nm process node to further enhance its competitiveness in the 28nm and more advanced technology segment, according to DigiTimes.
- TSMC's 12nm process will join its existing 16nm process portfolio to enable the foundry to better compete against rivals including Samsung and Globalfoundries.
- As for 28nm, TSMC has offered as much as six process variants to meet customers' various needs.
Mon, Oct. 17, 11:12 AM
- Ahead of Intel (INTC +0.3%), Taiwan Semiconductor Manufacturing Company (TSM -0.1%) and others.
- Availability of devices utilizing components built on the first generation of the technology are expected in early 2017, with broader expansion projected throughout the year. Large-scale production of second generation process is scheduled for H2 2017.
- Reports have Samsung in an exclusive deal with Qualcomm to manufacture the latter's Snapdragon 830 processors, predicted to be used in products from Google, HTC, Sony and others, in addition to Samsung's own smartphone offerings. Apple, meanwhile, presently maintains an exclusive arrangement with Taiwan Semiconductor Manufacturing Company to manufacture the iPhone 7's A10 Fusion SoC.
- Though Samsung's (OTC:SSNLF) Galaxy Note 7 setback has been in the spotlight of late, the company is diversified across many business lines and appears to nevertheless progress uninterrupted within its foundry segment.
- See also: Samsung Electronics reportedly readying for major 64-layer 3D NAND production
Thu, Oct. 13, 1:11 PM
- TSMC (NYSE:TSM) recorded 22.5% Y/Y, 17.4% Q/Q revenue (NT $260.41B) growth and 28.4% Y/Y, 33.4% Q/Q growth in net income (NT$96.76B).
- Gross margin came in at 50.7%, operating margin 40.8% and net profit margin 37.2%.
- 16/20-nanometer shipments comprised 31% of wafer revenue, 28-nanometer process technology accounted for 24% (28nm combined with other advanced technologies represented 55%).
- TSMC SVP and CFO Lora Ho: "Despite a less favorable exchange rate than our forecast, third quarter revenue surpassed the high-end of our guidance given three months ago, mainly due to strong demand in overall smartphone market."
- Projections for Q4 – Revenue of NT$255B-NT$258B (11%-12% growth vs. 5%-10% previously guided), gross profit margin of 50.5%-52.5%, operating profit margin of 40%-42% and capital budget of $9.5B.
- Taiwan Semiconductor Manufacturing Company is considered to be the exclusive manufacturer of A10 chips used in Apple's (AAPL -0.6%) iPhone 7 and 7 Plus, and although a supplier to other smartphone makers, the results appear to indicate positively for those devices.
- On upcoming inventory reduction level concern sparked during the company's conference call, however, TSMC shares are lower today by 4%. Co-CEO Mark Liu: "The previously anticipated inventory reduction at the end of Q4 will be mild. The end of this year will be more peaceful than in previous years. We see end-market demand is still healthy."
- Earnings slides
- Financial statements
- Management report
- Conference call
- Press release
Thu, Oct. 13, 6:09 AM
Wed, Oct. 12, 5:30 PM
Fri, Sep. 16, 1:44 PM
- While already anticipated, Intel (INTC +2%) components are now confirmed to be installed within certain iPhone 7 configurations. Two Intel RF transceivers, a baseband modem and RF power management ICs are noted.
- Modems, transceivers and power management ICs provided by Qualcomm (QCOM +0.2% ) are also confirmed to be utilized in other device variations. Qualcomm had historically maintained an exclusive provider position of modem components for previous iPhone iterations.
- Supplies from Skyworks Solutions (SWKS -1.9%), Cirrus Logic (CRUS -1.8%), Samsung Electronics (OTC:SSNLF), Taiwan Semiconductor Manufacturing Company (TSM -0.7%), NXP Semiconductors (NXPI -2.2%), Broadcom (AVGO -1.3%), Qorvo (QRVO -2.4%), Texas Instruments (TXN -0.5%), Toshiba (OTCPK:TOSBF +4.4%), Lattice Semiconductor, (LSCC -0.6%), Dialog Semiconductor (OTC:DLGNF), SK Hynix (OTC:HXSCF) and other makers also so far validated.
Thu, Sep. 8, 4:56 AM
- Shares of Apple suppliers were broadly mixed in the wake of the iPhone 7 and Apple Watch Series 2 launches, confounding analysts' predictions of likely beneficiaries.
- The new features for the iPhone were broadly in line with expectations, given previous leaks to the media.
- Across Asia: Hon Hai -1.3%, Pegatron flat, Wistron -1.3%, Catcher +3.9%, Han's Laser -0.7%, Largan -0.9%, LG Innotek -1.1, Alps -2.8%, AAC Tech +3.3%, Merry +1.3%, Goertek -0.4%, SK Hynix +2.1%, Toshiba -1.5%, Samsung +1.1%, TSMC -0.5%
Tue, Aug. 16, 5:12 PM
- The move was announced at the Intel Developer Forum in San Francisco.
- Intel's (NASDAQ:INTC) foundries will grant external parties access to its 10-nanometer production lines to fabricate Arm-based (NASDAQ:ARMH) semiconductors.
- LG Electronics (OTC:LGEAF) will use the arrangement to produce mobile-phone components.
- With this development, Intel's manufacturing segment appears open to additional partnerships with companies looking to outsource semiconductor production. Apple and Qualcomm, for example, currently contract with Taiwan Semiconductor Manufacturing Company (NYSE:TSM) along with other manufacturers and could potentially look to Intel's setup at some point in the future.
Thu, Jul. 14, 7:00 AM
Wed, Jul. 13, 5:30 PM
Mon, May 23, 10:53 AM
- Taiwan's Economic Daily News reports Apple (AAPL +1.7%) has ordered contract manufacturers to produce 72M-78M iPhone 7 units this year, a record figure for a new iPhone and above analyst estimates of ~65M.
- Apple is outperforming on a day the Nasdaq is up 0.3%. As are chip suppliers Cirrus Logic (CRUS +3.1%), Skyworks (SWKS +3.3%), Qorvo (QRVO +2.7%), and InvenSense (INVN +4.6%). Over in Taipei, Foxconn parent Hon Hai Precision (OTC:HNHAF) rose 4.6%, and fellow iPhone manufacturer Pegatron (OTC:PGTRF) rose 9.9%. TSMC (TSM +2.7%), which is believed to be the exclusive manufacturer of Apple's A10 processor (expected to go into the iPhone 7), is also doing well.
- The report comes with Apple having guided calendar Q2 revenue to be down 13%-17% Y/Y due to soft iPhone 6S sales. The rumor mill has indicated the iPhone 7 will feature a dual-camera array and a 256GB storage option, and do away with the 3.5mm headphone jack. The 9.7" iPad Pro's improved display suggests display enhancements are also possible.
- Now read Apple: Berkshire Hathaway Not The Only One Buying
- Update: Also reported by the Economic Daily News: Apple is prepping a "Pro" or "Premium" iPhone 7 model to go with a standard iPhone 7 and 7+.
Thu, May 12, 10:53 AM
- A 2.4% decline in Apple (NASDAQ:AAPL) -- making a fresh 52-week low today -- is being tied to the Nikkei report pointing to a rough year for iPhone suppliers.
- Nikkei's report said that chip shipments from Taiwan Semiconductor Manufacturing (TSM -1.2%) -- will be 70-80% of 2015 second-half levels.
- CNBC is saying that Apple's decline today makes Google parent Alphabet the largest U.S. company by market value, at about $498.6B.
- Meanwhile, among Apple's suppliers, steep declines are prevalent today: AVGO -2.2%, SWKS -3.9%, QRVO -2.9%.
- Shares in Apple are down 14.3% YTD, and down 28.4% over the past 12 months.
- Now read Apple: Nikkei Declares iPhone 7 Dead Before Arrival »
Wed, May 11, 12:31 PM
- Thanks to a continuing slump in demand for premium smartphones and a lack of groundbreaking features for the upcoming iPhone 7, Taiwan's tech suppliers will get significantly fewer orders in H2 than the previous year, according to the Nikkei Asian Review.
- "The traditional peak season this year will not be able to compare to the past few years," says one source. Another source says for Taiwan Semiconductor Manufacturing Company (TSM -0.2%) - the sole supplier for the A10 chips used in the iPhone 7 - its iPhone 6s and iPhone 7 chip shipments in H2 will be just 70-80% of 2015's H2 levels.
- Others with interest: AVGO, SWKS, QRVO
Thu, Apr. 14, 6:48 AM
- Taiwan Semiconductor Manufacturing (NYSE:TSM): Q1 EPS of $0.38 beats by $0.01.
- Revenue of $6.14B (-12.8% Y/Y) in-line.
- Shares -2.58% PM.
Wed, Apr. 13, 5:30 PM
Thu, Mar. 10, 4:05 PM
- TSMC (TSM -0.1%) had February revenue of NT$59.6B ($1.79B), down 16% M/M (thanks largely to seasonality) and 4.9% Y/Y. However, the annual decline narrowed from January's 18.7% and December's 16.1%.
- Lower Apple-related orders have been weighing - iPhone 6S/6S+ sales have been lower than year-ago iPhone 6/6+ sales, and TSMC is sharing production duties for Apple's A9 CPU after being the sole producer of the A8. Weak PC demand and broader high-end smartphone weakness have also taken a toll. TSMC's 16nm production ramp and a reported deal to be the sole producer of Apple's A10 CPU are expected to fuel a 2016 rebound.
- TSMC hiked its Q1 sales guidance last month, while citing "business upside" and a weaker Taiwanese dollar.