cens logo

TSMC Raises Q1 Guidance Regardless of Disastrous Quake in Southern Taiwan

Feb 23, 2016 | By Ken Liu

TSMC raises revenue guidance for Q1 by 1-1.5 percent in spite of losing 120,000 wafers in the Feb.6 earthquake. (The company's factory at the Southern Taiwan Science Park shown)TSMC raises revenue guidance for Q1 by 1-1.5 percent in spite of losing 120,000 wafers in the Feb.6 earthquake. (The company's factory at the Southern Taiwan Science Park shown)

Taiwan Semiconductor Manufacturing Co. (TSMC) has announced revising upward its consolidated revenue guidance for the first quarter by 1 to 1.5 percent, to somewhere between NT$201 billion (US$6.09 billion) and NT$203 billion (US$6.15 billion), despite its 120,000 silicon wafers of chips having been damaged in the 6.4-magnitute earthquake that struck southern Taiwan on Feb. 6, where TSMC, recognized as the world's No.1 contract-chip maker, operates several sizable factories.

The company bases its growth forecast mostly on encouraging order volume and the devaluing NT-dollar-to-greenback rate that makes chip exports more competitive.

The forecast is calculated based on the exchange rate of NT$33.18 to one US dollar to suggest the company expects the NT-dollar to further fall around 2.1 percent by the end of this quarter.

Although the company has raised the target for its consolidated revenue, it has cut the targets of its gross margin ratio and operating income ratio for this quarter by around three percentage points. Industry executives associate such cuts with the cost the company will pay to clear the broken silicon wafers and purchase new wafers.

Industry executives believe TSMC's prompt forecast announcement is simply efficient damage control in the wake of the quake that even toppled a high-rise condo to have buried alive over 100 residents, tilted a high-rise hotel under construction, sank several low-rise row houses and resulted in liquefaction in southern Taiwan. By doing so, the company wants to quickly put shareholders and customers' minds at ease. 

They say after the disastrous quake, global chip supply chains are worried that supply shortages will hit the contract-chip making sector and have begun vying for secure contract-manufacturing capacity.

TSMC says none of its factories at the Southern Taiwan Science Park sustained structural damage in the quake, but the violent shakes have broken 120,000 wafers of chips under processing at its Fab 14A and Fab 6, which are a 12-inch wafer factory and an eight-inch wafer factory, respectively.

The latest broken-wafer number publicized is around twice as many as the number industry executives had originally estimated and exceeds that the company had announced on the day of the earthquake.

The two factories, TSMC says, will take longer time than originally estimated to resume production to normal levels.

TSMC says Fab 14A has around 100,000 damaged wafers to delay deliveries by 10 to 50 days, with Fab 6 suffering the remaining 20,000 broken wafers to push backward deliveries by five to 20 days.

The chipmaker's Fab 14B factory at the science park was totally spared by the quake. All of its factories at the Central Taiwan Science Park and the Hsinchu Science Park have also been left completely unscathed.

TSMC says it will make all-out effort to work with customers and repair damages to refill orders as soon as possible.

Industry executives point out that TSMC and United Microelectronics Corp. (UMC), recognized as the No. 2 contract-chip supplier in Taiwan, are competing to buy silicon wafers from Formosa Sumco Technology Co., Ltd. and Topco Scientific Co., Ltd. to make up for the lost wafers. Topco is reportedly Taiwan's No.1 maker of 12-inch wafers with annual output capacity of 280,000 units while Topco is Shin-Etsu Chemical Co., Ltd. of Japan's Taiwan agent.

Although TSMC has raised its revenue target for the first quarter, the forecast represents a 1.5 percent decrease or is just on a par with the level in the previous quarter.

In January alone, the company generated consolidated revenue up to NT$70.85 billion (US$2.14 billion), ending the downtrend in the previous three months to rise 21.4 percent from a month earlier.

Industry Reports

Samsung's Potential Mini/Micro LED Partnership with Taiwanese Firms</h2>

Samsung's Potential Mini/Micro LED Partnership with Taiwanese Firms

Sep 28, 2020

The world's leading memory chip and smartphone maker Samsung Electronics is looking for potential display technology partnerships in Taiwan, specifically for mini/micro-LED industry applications. Local media Economic Daily News reported Samsung was partaking in a private project with LED driver IC supplier Macroblock Inc., a move signaling the Korean group's further ambition in the mini/micro-...

Strong Global Trade Rebound for Two-Consecutive Months: CPB</h2>

Strong Global Trade Rebound for Two-Consecutive Months: CPB

Sep 28, 2020

Since July, global trade volume continues to rebound, signaling economies' restarting in a bid to make up the worldwide lockdown this spring due to the pandemic. In a report released by the CPB Netherlands Bureau for Economic Policy Analysis, the CPB World Trade Monitor in July grew 4.8% compared to June, the largest increase since the bureau began compiling statistics in 2000. This is slightl...

Digitalization Essential for Business Survival: APEC Finance Ministers</h2>

Digitalization Essential for Business Survival: APEC Finance Ministers

Sep 26, 2020

The COVID-19 pandemic has accelerated the digitalization of membership economies, which has become an essential factor in a company's survival, reported in a unified statement released by finance ministers of representing APEC member countries. Convened under the chairmanship of Malaysian Minister of Finance Tengku Zafrul Tengku Abdul Aziz, APEC finance ministers assembled over a virtual confe...

Industry In-Focus

Latest PCB Industry Report NTI-100 Shows Growing Asian Reach</h2>

Latest PCB Industry Report NTI-100 Shows Growing Asian Reach

Sep 23, 2020

Global PCB NTI-100 2019 Fabricators report from the research agency heavyweight N.T.Information showed companies with over USD$1 billion revenue have increased compared to 2018. The report, annually compiled by Dr. Hayao Nakahar, showed in 2019, 122 fabricators were listed reporting revenue over USD$1 billion, an increase of four companies compared to the 2018 list. The report also found more ...

Surgical Masks: the New Battleground for Textile Industry</h2>

Surgical Masks: the New Battleground for Textile Industry

Sep 22, 2020

With most of society worldwide becoming more and more accustomed to wearing masks in the post-pandemic era, it has become a must-have accessory, attracting domestic textile firms into production. Traditional textile firms, such as Eclat Textile, Makalot, Far Eastern New Century, Everest, Roo Hsing, and QVE, have begun making masks, reports say. The COVID-19 pandemic has led to fewer consumers ...

Minth Group Chairman Jong-Hwa Ching. (UDN File Photo)

Leading Auto Parts Supplier Minth Group Eyes Investing in Taiwan Next Year

Sep 21, 2020

The world's leading auto parts and battery housing maker Minth Group's Chairman Jong-Hwa Ching revealed on Sunday that it would launch M&A investment plans into Taiwan next year, focusing on auto parts, vehicle batteries, and the semiconductor industries. Ching named investing in Taiwan as an advantage highlighted amid the trade tensions between the U.S. and China, and expressed optimism in de...

Supplier News

Sheh Fung owns three factories, one of which located in Mituo District, KaoHsiung primarily focuses on packaging and heading.

Sheh Fung Screws' Profitable Q3 Prompts Goal for NT$2 Billion Sales by Year-End

Sep 24, 2020

■ Huang Chih-ming Located in Kaohsiung, Taiwan, Sheh Fung Screws Co., Ltd focuses on manufacturing three categories of screws: self-drilling screws, painted screws, and wood screws, often found in wood construction, sheet metal roofs, wood footpath, and DIY home decor applications. Currently, the U.S. is the firm's primary market, making up 64% of sales, 7% for Europe, 6% for Asia, and 12% for...


Chipboard Screw, Special Wood Screw, provided by Shuenn Chang Fa

Quality Fastener Maker Shuenn Chang Fa Shows Resilience with Sales Boost

Sep 24, 2020

■ Huang Chih-ming Taiwanese quality fastener manufacturer Shuenn Chang Fa Enterprise Co., Ltd.'s (SCF) presented exceptional ability to adapt to challenging times amid the COVID-19 pandemic. Unlike other firms, SCF leveraged its production strategy with its new plant, and even saw sales performing better than expected. SCF’s newest factory expands the original 10,000-square meters factory g...


Stainless Steel Screws, provides by Ray Fu Enterprise Co., Ltd.

Ray Fu's Reliable Fastener Quality for Clients Bolsters Q4 Sales

Sep 24, 2020

■ Huang Chih-ming Ray Fu Enterprise Co., Ltd. is a Taiwanese professional exporter for various fasteners and steel wires. Along with its parent company Chen Nan Iron Wire, both firms are located in Kaohsiung City of southern Taiwan. Ray Fu manages a wire rod storage, spheroidizing annealing furnace, pickling surface equipment, wiring drawing machinery, and fastener forming machine. While the C...


Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...

Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...

Exhibition Highlights

Stable Development and Popular Fastener Show in China</h2>

Stable Development and Popular Fastener Show in China

Sep 11, 2020

Driven by market prospects, domestic and international exhibitors actively prepare International Fastener Show China in Shanghai on November 3-5, 2020. Suffering from global epidemic and quarantine nearly half year, exhibitions are hot and popular in mainland China. Thousands of visitors join and visit the exhibitions with inquiries, and are eager to know new technology. Domestic and inter...

2020 Medical Taiwan to Host In-Person and Virtual Events</h2>

2020 Medical Taiwan to Host In-Person and Virtual Events

Sep 10, 2020

2020 Medical Taiwan is slated to kick off on Oct. 15 to Oct 17 at Nangang Exhibition Hall 2. Aside from events at the show, show organizer Taiwan External Trade Development Council (TAITRA) is also hosting the “Medical Taiwan Virtual” online edition at the same time due to travel restrictions impacted by the COVID-19 pandemic. The virtual edition will present 200 exhibitors and over 700 medic...

Automechanika Shanghai 2020 reveals online tools to navigate current trends and post-pandemic opportunities</h2>

Automechanika Shanghai 2020 reveals online tools to navigate current trends and post-pandemic opportunities

Sep 01, 2020

Ms Fiona Chiew, Deputy General Manager, Messe Frankfurt (HK) Ltd, reflected that: “As the industry starts to spring back from the effects of COVID-19, we believe that highly influential platforms like Automechanika Shanghai play a crucial role rejuvenating the market. It is our mission to help players unlock their potential. Therefore, we are continuing to realign our resources by utilising new d...