Chipmaker TSMC reports Q2 profit up 24 percent

Revenue was also up 21.6 percent year over year

Taiwan Semiconductor Manufacturing Co. said its net profit in the second quarter grew 23.8 percent year over year, driven by demand for faster and power-efficient chips for mobile phones built with its new 28-nanometer manufacturing process.

The contract chipmaker's net profit for the quarter reached NT$51.8 billion (US$1.7 billion), an increase from NT$41.8 billion in the same period a year earlier, TSMC reported on Thursday.

Revenue was at a record NT$156 billion, a year-over-year increase of 21.6 percent and at the upper end of its forecast.

TSMC is a maker of many of the chips in today's smartphones and tablets, including processors from Qualcomm and Nvidia. The company has also reportedly signed a deal to start making chips for Apple next year. About a third of TSMC's revenues are projected to come from smartphones and tablets in 2013.

"Mobile products have been important in driving demand in recent years," said TSMC CEO Morris Chang in an earnings presentation. "We will continue to enjoy robust growth this year, as well as in the coming years."

TSMC is obtaining more of its revenue from its new 28-nanometer chip manufacturing technology. During the second quarter, 29 percent of TSMC's revenues came from its 28-nanometer chip manufacturing, a five percentage-point increase from the previous quarter.

At the same time, the company is also seeing major growth for smartphone chips at the lower end of the market, Chang said. Customers from China are another fast growing area, he added, noting that its business from the country during the first half of 2013 had doubled compared to a year earlier.

TSMC is preparing to deploy next-generation chip-making technology that will offer further gains in processing speed and power efficiency. Early in 2014, TSMC will start using its new 20-nanometer manufacturing processes to build chips in larger volumes. By early 2015, the company will move to its 16-nanometer process.

TSMC's 20-nanometer manufacturing process can provide 30 percent higher speeds over its current 28-nanometer technology. The company's 16-nanometer technology can provide a similar gain, of 20 percent, over the 20-nanometer process.

In this year's third quarter, TSMC projects the company will earn between NT$161 billion and NT$164 billion in revenue.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesfinancial resultsTaiwan Semiconductor Manufacturing Co.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?