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TSMC sees profits rise as 28nm demand remains high

Shortages fail to dent profits
Thu Jul 19 2012, 14:41

CHIP SHOP Taiwan Semiconductor Manufacturing Company (TSMC) reported that its second quarter sales and profits rose by 16 per cent, as the firm continues to see strong demand for its advanced process nodes.

TSMC has been struggling to meet demand on its 28nm process node, with high profile customers AMD, Nvidia and Qualcomm all suffering delays. Supply restrictions aside, the firm still managed to turn in an enviable financial performance with revenue up 15.9 per cent to NTD 128bn and profit also up by the same percentage to NTD 41.7bn.

The company said its 28nm process node accounted for seven per cent of its revenues and will feature heavily in the third quarter. However, the firm made most of its money in the second calendar quarter from its mature 40nm and 65nm process nodes.

TSMC SVP and CFO Lora Ho said, "Due to continuing strong demand for our 28-nanometer technology, we expect to double the shipments of 28-nanometer in the third quarter. This increase in 28nm business will account for more than 80 [per cent] of revenue growth in the third quarter."

The firm has taken some flak over its inability to meet volume demands on its 28nm process node. Although TSMC's older process nodes still remain its bread and butter, it's clear that its revenues will increasingly rely on 28nm as it improves yields and reduces capacity constraints. µ


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