TSMC's Co-CEO: Corporate Consolidated Revenue to Rise 27% YoY in 2014

Taiwan Semiconductor Manufacturing Co. (TSMC) Co-Chief Executive Officer Mark Liu predicts corporate consolidated revenue for this year to soar 27% year on year, far exceeding the median 9% for global semiconductor industry and 14% prediction for silicon foundry sector.

Also he forecasts global semiconductor industry to  maintain healthy growth in 2015, with the industry overall increasing an estimated 5% and silicon foundry sector rising around 12%, with the executive most likely referring to revenue.

Liu ascribes strong corporate growth this year mostly to robust demand for its 20nm and 28nm process foundry service, to send consolidated revenue for October rising 7.9% from the previous month and 55.9% year on year to NT$80.7 billion (US$2.69 billion), eclipsing the first time the monthly revenue milestone of $80 billion (US$2.66 billion).

In the first 10 months, the company had total consolidated revenue of NT$621.02 billion (US$20.70 billion), surging 23.5% YoY.

Based on Liu's projection for  2014 corporate revenue growth, industry executives estimate TSMC's consolidated revenue for this year at NT$758.3 billion (US$25.27 billion), compared with 2013's NT$597.02 billion (US$19.90 billion).

The company made NT$7.09 per share in after-tax net income in the first three quarters, up from NT$5.53 of the same period last year, from which industry executives predict would result in earnings for this year to equal its capitalization.

Liu says corporate sales will remain buoyant next year, forecasting revenue growth to still outperform industry's average. Industry executives forecast its  2015 revenue at NT$849.2 billion (US$28.30 billion), with its share of global foundry market to increase to 53% next year, up from this year's 49%.

Liu bases his bright forecast on upbeat global economy, which is projected to grow 3%, compared with 2014's 2.9% and 2013's 2.4%. Also, the company's 16nm process will start volume production.

Liu says the company will spend more than US$10 billion on expansion next year in line with  economic uptrend. Industry executives estimate its capital spending for 2015 at US$11.5 billion, higher than Intel's US$11 billion and Samsung's 9.6 billion.

He also forecasts growth of 5% for global semiconductor industry and 12% for silicon-foundry sector next year, lower than 2014's due to high base. (KL)