Demand Towards Leading Edge Manufacturing Increases – TSMC

40nm Process Technology Accounted for 14% of TSMC’s Q1 2010 Revenue

by Anton Shilov
04/27/2010 | 12:39 PM

The demand towards chips produced using the most advanced bulk process technology – 40nm – in on the rice, according to the recent report from Taiwan Manufacturing Process Technology. The most recent product launches by ATI, graphics business unit of Advanced Micro Devices, and Nvidia Corp. have boosted the share of 40nm production among TSMC’s revenue to 14%.

 

The demand for TSMC’s wafers remained strong, first quarter saw an increase in wafer shipments from the previous quarter, contrary to its normal seasonal pattern.In general, the demand towards advanced process technology increased slightly during the Q1 of calendar 2010. Moreover, if the orders for 40nm and 90nm chips raised, then, by contrast, the demand for 65nm/55nm and 130nm/110nm products decreased. Wafer sales from consumer and communication related applications grew, while wafer sales from computer related applications declined slightly. 

Process Technologies as Percentage of TSMC's Revenue in Recent Quarters

 

Q1 2009

Q2 2009

Q3 2009

Q4 2009 

Q1 2010

150nm+

35%

35%

33%

30%

29%

130nm/110nm

16.66%

13%

14%

15%

13%

90nm/80nm

25%

23%

18%

16%

17%

65nm/55nm

23%

28%

31%

30%

27%

40nm

0.33%

1%

4%

9%

14%

On Tuesday TSMC announced consolidated revenue of NT$92.19 billion ($2.942 billion), net income of NT$33.66 billion ($1.074 billion), and diluted earnings per share of NT$1.30 (US$0.20 per ADS unit) for the first quarter ended March 31, 2010.

Year-over-year, first quarter revenue increased 133.4% while net income increased 2059.5% and diluted EPS increased 2059.8%. Compared to fourth quarter of 2009, first quarter 2010 results represent a 0.1% increase in revenue, and a 3.1% increase in both net income and diluted EPS. All figures were prepared in accordance with R.O.C. GAAP on a consolidated basis. Gross margin for the quarter was 47.9%, operating margin was 37%, and net margin was 36.5%.

 “Business continues to be brisk. Relative to the first quarter, the consumer and communication segments in the second quarter will increase while the computer segment will remain flat,” said Lora Ho, vice president and chief financial officer of TSMC.