Taipei, June 18, 2010 (CENS)--Morris Chang, chairman and chief executive officer (CEO) of foundry giant Taiwan Semiconductor Manufacturing Co. (TSMC), recently raised his 2010 forecast of global semiconductor market growth rate for the third time to 30%, up from previously projected 22% and 9%.

He hiked the growth projection recently after seeing the company`s consolidated revenue for May hit a new high of NT$34.8 billion (US$1.08 billion at US$1:NT$32).

Chang estimated silicon foundry alone will grow over 30% this year, higher than average growth rate of the semiconductor industry as a whole, and will enjoy an annual increase of over 7% in the years to 2016.

Chang stressed his company`s revenue and earnings for this year will hit new highs and vowed to bring the firm`s gross profit margin past 50% this year.

The top executive of the world`s No.1 pure silicon foundry emphasized TSMC is a technological leader, not just running ahead of a few rivals but all of its competitors. He said any form of partnership among TSMC`s rivals will not affect the company.

Chang also noted that the impact of the European debt crisis on the global semiconductor industry is "quite indirect and minor" because North America is the world`s largest market for the industry and mainland China is the world`s fastest growing market of the industry.

TSMC`s record revenue for May helped swell its consolidated revenue for the first five months of the year to NT$160.8 billion (US$5 billion), spiking 84.4% from the same period of last year. The company forecast its revenue for the second quarter to stand between NT$100 billion (US$3.12 billion) and NT$102 billion (US$3.18 billion), up from the first quarter`s NT$92.1 billion (US$2.8 billion). Industry executives estimated the company`s revenue for the second quarter to cross its projection based on its combined revenue of NT$68.6 billion (US$2.1 billion) for April and May.

When asked to comment on the recent pay hike issue in mainland China, Chang said TSMC will not follow Foxconn and Honda to raise monthly pays for employees at its mainland factory because their minimum monthly wage already surpassed 2,000 yuan (US$294 at US$1:6.8 yuan).

(by Ken Liu)