TSMC Projects Strong Annual Growth of 10% in Sales Revenue

10 Sep

Taiwan Semiconductor Manufacturing Company (TSMC), a leading Taiwanese independent semiconductor foundry, reported an overall upward trend in sales revenue in the second half of 2016. Though the company adjusted its inventory level in Q4, the projected performance is similar to that of Q3. TSMC reported a growing trend in revenue income in between 5% to 10% at an annual level this year. Meanwhile, it’s likely that TSMC will break the 10% glass ceiling, said Dr. Mark Liu, the company’s President and Co-Chief Executive Officer.

The traction that will boost the future growth of semiconductor foundry industry lies in four main industries, including smartphones, high performance computing, automotive technology, and IoT, said Mark Liu as he gave a speech at the Executive summit grand opening keynote session at SEMICON Taiwan 2016. Meanwhile, AR and VR applications, like the popular Pokémon GO game that created a craze, will also contribute to the growing demand. In other words, AR/ VR technologies will also become a potential market of the semiconductor foundry industry.

In terms of the development of smartphone industry, the smartphone market saw decline due to the impact of sloppy global economy in the first half of 2016. However, the economy recovered and remained on an upward trend in the second half of 2016. Under this circumstance, though TSMC is confronted by the adjustment of inventory level in the fourth quarter, the overall financial conditions is expected to be slightly lower than that of the third quarter. TSMC reported a growing trend in revenue income in between 5% to 10% at an annual level. Meanwhile, it’s likely that TSMC’s growth will exceed 10%.

TSMC’s share were boosted by the opening of SEMICON Taiwan 2016 and Apple’s release of the new iPhone 7 on September 7 as it rocked to NT $181.5 (us $5.79) in the morning and closed at NT $184 (US 45.87). The company’s market value rose to NT $4.7 trillion (US $150.1 billion) and again reached a record high level.

Though TSMC has not released its financial report in August, the company’s outlook was announced at its investor conference. TSMC estimates that the consolidated revenue income in the third quarter will improve to between NT $254 billion (US $8.1 billion) and NT $257 billion (US $8.2 billion) on growth of 14.5%-16% QoQ. This would represent a new record for the company in terms of single quarter growth.

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