Taiwan Semiconductor Manufacturing Company Ltd.NYSE
Taiwan Semi Running Hard ... But Is The Track A Treadmill?
Stephen Simpson, CFA
Stephen Simpson, CFA
Jun. 9, 2015, 7:11 PM
- At its annual meeting, TSMC (NYSE:TSM) set a dividend of NT$4.50 per common share for its 2014 operations, up from NT$3.00 a year ago. With each ADS equal to 5 common shares, the payout is equal to NT$22.50 ($0.72) per ADS. That spells a 3.2% yield at current levels.
- Chairman Morris Chang stated the world's biggest foundry is aiming for 10%+ 2015 sales growth; an 8-analyst consensus is currently at 8.5%. He also claimed TSMC (aided by Apple A8 CPU orders) grew its global foundry share to 54% in 2014. Samsung/Globalfoundries' 14nm process ramp, and the 14nm orders reportedly secured from Apple and Qualcomm, are expected to impact TSMC's 2015 share.
- Separately, TSMC has launched partnerships with EDA software firm Cadence (NASDAQ:CDNS) and GPU core developer Imagination (OTCPK:IGNMF) to create IP that can be used by TSMC clients to develop IoT-optimized chips.
- Cadence and TSMC are showing off an IoT "IP subsystem" that relies on Cadence DSP cores and chip/sensor interfaces, and work with a 55nm low-power TSMC process. TSMC and Imagination are working on IP subsystems for both high-end and low-end sensors; they feature Imagination CPU/GPU cores, memory, and connectivity and sensor IP.
Feb. 10, 2015, 1:46 PM
- With Apple A8 CPU demand and orders from various Apple suppliers still providing a lift, TSMC's (NYSE:TSM) January sales rose 25.3% M/M and 69.4% Y/Y to NT87.1B ($2.76B) - Y/Y growth accelerated from December's 39.9%, and the 52.6% seen for the whole of Q4.
- Also: TSMC says it plans to invest more than NT$500B ($16B) at a manufacturing site in the Taiwanese city of Taichung. An upcoming expansion of a 300mm (12") wafer fab at the site is expected to create 5K jobs.
- The chip foundry giant recently set a 2015 capex budget of $11B-$12B, and plans to begin mass-production of chips using its 16nm FinFET (3D transistor) process in Q3. Its 10nm process, through which TSMC hopes to regain a manufacturing process lead Samsung and Globalfoundries are set to obtain this year through their 14nm process, is expected to enter mass-production late 2016 or early 2017.
- Shares are less than $1 away from their 52-week high of $24.49.