Big chip bonanza boosts TSMC profits

THE SEEMINGLY INSATIABLE DEMAND for semiconductor chips has ramped back up this year and shows no sign of abating, as contract chip maker TSMC has announced record chip sales in April.

Its net sales for April were about $32.68 billion, up six per cent over March and an increase of 50.3 per cent from April of last year.

Revenue for January through April 2010 was $121.86 billion, an increase of 105.5 per cent.

The demand is due to chipmakers increasingly outsourcing production to foreign foundries to cut costs and the rising need for more powerful chips.

According to Reuters, it was widely expected that TSMC would post these kinds of results, as TSMC spent a record amount to boost capacity to meet demand. Texas Instruments and Nvidia are among its clients.

It is also more firm evidence that the world semiconductor market is booming, with the Inquirer reporting last week that it has grown by 30 per cent in the last year.

Increasing demand for new devices by consumers is fueling the growth, which is in major contrast to poor chipmaker performance last year due to recessionary economic conditions. µ