TSMC Will Raise R&D Capex to Prepare for 7nm Wafer Mass Production in 2017

13 Jul

In order to thrive in the competition over the 7 nm wafer manufacturing process and maintain a leading position among semiconductor OEMs, Taiwan Semiconductor Manufacturing Company (TSMC) is anticipated to announce in the institutional investors’ conference on July 14th that the company will be undergoing a major scale-up in terms of research and development, capital expenditure, and recruitment.

According to local reports, TSMC has officially posted its 3rd highest revenue in record for the month of June. Due to its success, the company will be expected to highlight its potential capex increases and relevant projects related to its advanced manufacturing processes. In addition, the company’s current chairman, Morris Chang, will also be addressing TSMC’s latest recruitment plans, including its goal of hiring up to 3000 new IT personnel to boost its current R&D division.

In order to strengthen its current technological progress, TSMC will be expected to also raise its annual budget by approximately 5 to 10% in 2016. This would allow its overall R&D capex for this year to rise to as high as NTD 72.0 billion from the previous year’s NTD 65.5 billion. By the end of next year, the Taiwanese company’s total R&D expenditures are likely to soar to around NTD 90.0 billion or more, as it tries to advance the development of its latest 10 nm and 7 nm manufacturing processes.

With Apple’s iPhone 7 officially scheduled to arrive this quarter, market watchers believe TSMC’s production of A10 processors will escalate in the coming months. Therefore, it is believed that its 3rd quarter revenue will peak to a record-breaking US$7.14 to 7.45 billion (approximately TWD 229.58 to 239.55 billion).

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