Don-n-ABQ

Taiwan Semiconductor and Brocade Are on Sale

Yes, back on Mar. 1 of this year Intel contracted TSMC to build the ATOM, which was a big move for Intel because they normally don't outsource. It signaled a new move for Intel.

GlobalFoundries (Advanced Technology Investment Co., or ATIC) says they are going after TSMC over the next few years, so we will see how TSMC responds.

Thinning margins will need to offset with more volume, manufacturing improvements, and new products.



On Nov 16 10:20 AM Old Trader wrote:

> Despite the fact that its products are being reduced to almost commodity
> status, I understand that TSM is THE low cost producer of chips of
> various types, which is a heck of a moat. I also seem to recall they
> entered some sort of venture with INTC, a few months back.

Taiwan Semiconductor and Brocade Are on Sale

UBS downgraded TSM on Oct. 7 and MorganStanley SB did the same on Nov. 3. (Of course they may have been just looking to flip their inventory from $10'ish to $9'ish.)

Even the Chairman, the CEO, and the predisdent of TSMC have said that their legacy business is going to slow down in the coming years. They have stated that their future lies with solar cells and LEDs.

Maybe Windows 7 and the expected capex in corporate spending for hardware will give the company a nice boost in the short term?

I hope they make an announcement soon about solar and LED, if they could do to those two markets what they have done in their standard integrated circuits wafer business, that would be something.

(Long TSM)