TSMC Q2 profit up 15.2 percent, 20-nanometer chips start shipping

TSMC posted strong earnings, partly on growing adoption of 4G LTE technologies

A TSMC 8-inch Wafer.

A TSMC 8-inch Wafer.

Taiwan Semiconductor Manufacturing Co. posted record earnings in the second quarter, as the company has begun shipping better-performing chips built with its latest 20-nanometer manufacturing process.

The company's net income in the period reached NT$59.7 billion (US$2 billion), an increase of 15.2 percent from a year ago, it said on Wednesday. Revenue met the upper end of TSMC's projections, growing 17.4 percent year-on-year to NT$183 billion.

TSMC, the world's largest contract chip maker, builds processors for Qualcomm, Nvidia and Apple, and has been posting strong earnings on booming sales for smartphones and tablets. This year, the company expects to maintain "double-digit growth" as it deploys more-advanced chip-making technology to build faster and more power-efficient processors.

Last month, TSMC began shipping chips built with its 20-nanometer process, company chairman Morris Chang said during a conference call to discuss the financial results. The 20-nanometer chips pack more transistors, and can offer 30 percent higher speeds or 25 percent lower power consumption over TSMC's older 28-nanometer manufacturing technology.

The 20-nanometer process will make up 10 percent of the company's chip sales in the third quarter, and 20 percent in the fourth, Chang said.

Demand for TSMC's existing 28-nanometer manufacturing process has also been rising, helping the company remain competitive with rival foundries. In the second quarter, 28-nanometer chips made up 37 percent of the company's total chip sales.

Growing adoption of 4G LTE technologies helped drive TSMC's earnings in the second quarter, Chang said.

TSMC expects its third quarter revenue to reach between NT$206 billion and NT$209 billion, up from NT$163 billion a year ago.

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 issuesprocessorsfinancial resultstsmcComponents

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

Essentials

Mobile

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

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?