TSMC's Chang Sustains 20% Revenue Growth Goal Despite Quake Impact

Taipei, March 17, 2011 (CENS)--In spite of the 9.0-magnitiute earthquake and the ensuing devastating tsunami striking Japan on March 11, Chairman Morris Chang of Taiwan Semiconductor Manufacturing Co. (TSMC) yesterday said his firm's goal of achieving a 20% sales growth, denominated in the U.S. dollar, will remain unchanged.

However, he is worried that the calamity would hamper the company's 2012 expansion plans if Japanese suppliers of chip-making equipment fail to resume production in time.

Chang, whose company is currently the world's No.1 pure silicon foundry, said all implications of the quake “are under control” and global semiconductor market will return to growth track as soon as supplies of raw wafer materials come back to normality although the market may go through downward revision in the near term.

Chang made the remarks yesterday at a technology forum organized by Merrill Lynch. He said that TSMC still holds a certain amount of material inventory and has maintained access to second and even third supply sources, thereby minimizing the impact of the earthquake on his company.

Chang estimated it would take Japan around three months to recover from the disaster, posing a revision shadow to global semiconductor, electronics and information-technology industries in short term.

He said TSMC has come up with contingency plans if some of its equipment suppliers fail to support its expansions next year. But he conceded that there is no alternative source to Tokyo Electron Ltd. for some crucial equipment.

The top TSMC executive pointed out that the company has at least four supply sources of raw wafer materials, and has second source in Taiwan, the United States and Europe for chemical materials.

Chang said he remains optimistic about 2011 market for tablet PCs and smartphones.