TSMC Reports Strong Q2 Revenue Despite 0.7% Decrease in June

Foundry giant Taiwan Semiconductor Manufacturing Co. (TSMC) announced  Q2 consolidated revenue of NT$183 billion (US$6.1 billion), up 23.48% from the previous quarter to hit a new high regardless of a 0.7% month on month decrease in June revenue, which totaled NT$60.3 billion (US$2 billion).

The pure silicon foundry provider had H1 consolidated revenue of NT$331.2 billion (US$11 billion), up 14.8% year on year.

Based on fully booked capacity at TSMC and the arrival of high season, industry executives is optimistic about the company's earnings outlook for Q2 and Q3, with the foundry to hold an institutional investors conference on July 16 to issue Q3 operational outlook.

TSMC associates the record Q2 revenue growth with the strong market for smartphones and other mobile devices, which  keep its 8-inch and 12-inch wafer fabs running at full capacity, also benefiting second-tier makers in the foundry industry.

According to the Wall Street Journal, TSMC has begun delivering Apple micro-processors for smartphones and tablet PCs.

Market consultant Gartner Inc. notes that the ongoing strong demand for IC chips is mostly driven by smartphones and other mobile devices, with smartphones to remain the staple  product in the mobile device market to  account for around 90% of the mobile phone market by 2018, without ever phasing out  traditional mobile phones.

Gartner has raised annual growth forecast of the global semiconductor industry to 6.7% for 2014 from 5.4% it had issued in Q1, believing  the industry to remain strong in 2015 before slipping in the following year. (KL)