TSMC hits record-high Q3 profit on consumer electronics boost

Taiwan Semiconductor Manufacturing Co reports its third-quarter net profit hit a new-high of US$1.77 billion due to boosted demand for consumer electronics devices. It also forecasts higher capital expenditure in 2014 of at least US$10.6 billion.
Written by Chiu Yu-Tzu, Contributor

Taiwan Semiconductor Manufacturing Co. (TSMC) Chairman and CEO Morris Chang said he was optimistic about the company's future, predicting that sales in 2014 would grow at a double-digit annual rate following its upcoming launch production of the 20-nanometer (nm) processor. 

Chips in this category would account for 10 percent of the company's total sales next year, Chang said during an investor conference held Thursday in Taipei. To boost production capacity, he said TSMC's capital expenditure in 2014 would exceed US$10.6 billion, up from an estimated US$9.7 billion this year, reported state-run Central News Agency.

According to industry stats, production capacity of TSMC, which is the world's leading foundry business, is expected to clock an annual increase of 11 percent in 2013, with a 17 percent capacity growth at its 12-inch wafer plants.

The company also reported a record-high net profit for its third-quarter, ended September 30, of NT$51.95 billion (US$1.77 billion), up 0.3 percent from the previous quarter, with an earnings per share of NT$2 (US$0.68). 

"TSMC again set new records in both revenue and net income in the third quarter, thanks to our leadership in advanced technologies," senior vice president and CFO, Lora Ho, said in a statement. In the third quarter, the company's consolidated sales rose to NT$162.58 billion (US$5.54 billion), a 4.3 percent increase from the second quarter and the highest quarterly amount in its history.

According to Ho, however, while TSMC continued to make strides in technology progression, its fourth quarter numbers were forecast to be impacted by softer demand for certain high-end mobile devices and inventory correction resulting from the softer demand. 

Editorial standards