Will TSMC’s Revenue Increase 10% This Year?

8 Sep

On Wednesday, TSMC’s co-chief executive officer Mark Liu said during an industry trade show that the chip-making giant’s revenue is likely to grow 10% this year on the back of resilient smartphone demand. That represents a more bullish forecast than an earlier projection made in the first half of the year. Then, TSMC said its revenue would grow between 5 and 10%.

Analysts say smartphone demand will continue to drive TSMC’s sales over the next five years. From 2015-2020, the company expects its composite annual growth rate to fall between 5 and 10%. The handset segment will account for half of that growth.
Upgrade demand from lower-end smartphone users and more new features for high-end models will stimulate chip demand, Liu said.

“Emerging demand for high-performance chips used in data centers and those for autonomous cars, virtual reality, augmented reality, artificial intelligence and Internet of Things will also help boost chip sales for the company and the overall industry alike,” local media reported Liu as saying. “We see applications have been proliferating. The use of semiconductors has been moved from mobile computing to ubiquitous computing,” he added.

Regarding TSMC’s development of 7-nanometer (nm) chips, Liu said “work is well on track and the firm is ahead of its competitors.” The company aims to boost production of 7nm chips in 2018. The chips will be used in high-end smartphones and autonomous vehicles.

TSMC shares rose 2.79 percent to NT$184 Wednesday, as firm’s market capitalization hit a record high of NT$4.77 trillion.

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