TSMC Estimated to Earn NT$7 Per Share in 2012

Taipei, May 10, 2011 (CENS)--Industry executives estimated Taiwan Semiconductor Manufacturing Co. (TSMC) would earn NT$7 per share in 2012 based on the company's aggressive expansion in 28-nanometer process capacity, which will considerably boost the company's earnings and revenue in addition to its share of global silicon foundry market.

The No.1 silicon foundry recently announced it would enter pilot production based on 28nm process technology sometime in the third quarter ahead of schedule and kick off volume production in the following quarter. So far, the chipmaker has completed 89 contracted 28nm tapeouts, the final results of photomask design for 28nm integrated circuit.

Industry watchers pointed out that the tapeout number is 10 times the number of all its competitors and twice the number of the company's 40nm tapeouts introduced in 2008. TSMC, they added, has seen hefty revenue and earnings from 40nm process, which it took two years to develop.

Some institutional investors noted that advanced process technologies have propelled TSMC far ahead of its rivals in market dominance, with 65nm process securing a 65% of the contracts depending on the process and 40nm wining an 80% of the customers using the process. Overall, TSMC has filled 47.1% of world demands for silicon foundry service.

They analyzed TSMC still gains an upper hand in 28nm competition in spite of formidable competitors as Intel and Samsung. These competitors would have an uphill battle against TSMC if they fail to put 28nm process into volume production by the end of this year.

The institutional investors estimated TSMC would earn NT$7 per share and see stock price rise to NT$100 (US$3.4) per share in 2012, once its sales of 28nm process surge further and if Apple contracts it to make A5 and A6 microprocessors for its iPhones.

Over the next three years, smartphone and tablet PC will remain the major drivers behind TSMC's growth.

This year, TSMC has budgeted US$7.8 billion for boosting its 28nm, 40nm and 65nm production capacities, compared with its US$5.9 billion spending on advanced process projects last year.