“Taiwan Semiconductor Manufacturing Co Ltd. targets record revenue in the second quarter as more of the company’s chips are installed in high-end smartphones to power increasingly complex features,” Christopher Cushing reports for Reuters. “The world’s largest contract chip producer also aims to grab market share from rivals such as Samsung Electronics Co Ltd and Intel Corp on demand from phone makers, whose custom pushed first-quarter earnings up by a fifth.”
“Asia’s 10th biggest company by market value has been able to consistently profit thanks to the spread of smartphones such as those from Apple Inc, industry watchers say, as well as its ability to produce a high degree of defect-free chips,” Cushing reports. “The company recorded an operating margin of 35.4 percent in the first quarter and projected its second-quarter margin to be in the range of 36.5 percent to 38.5 percent. Chief financial officer Lora Ho also confirmed TSMC’s forecast of double-digit profit growth this year as its world-first 20-nanometre chip-making technology begins to supplant the 28-nanometre standard.”
“TSMC promises further efficiency – and wider margins – with larger 18-inch silicon wafers, which will allow for more chips per wafer,” Cushing reports. “The company declined to provide a timetable for production because of a lack of mature equipment from suppliers.”
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