TSMC expects Q3 results boost

Capex to rise for 2013 as Apple rumours circle

TSMC announced today it had increased sales by 32 percent, while reports claim that the foundry is set to up its capex spend amid talk of new orders from Apple.

In financial results released today, the Taiwanese foundry said that unconsolidated sales were up to $1.64 billion during August, increasing two percent over the previous quarter and 32 percent from the same point in 2011.  Consolidated sales increased 31.5 percent over August 2011.

Commenting on the results, TSMC's chief financial officer, Lora Ho, said that third quarter revenues are now expected to be slightly higher than previous estimates.

According to CENS, TSMC is also set to increase its capital expenditure budget by 25 percent, up from $8 billion to $10 billion during 2013.  

Although TSMC is not expected to make any official announcements until later this year, the increased spending would enable expansion of production at its current leading edge 28nm process, as well as beginning volume production of 20nm chips.  Cash would also be spent on advanced lithography tools, and beginning development of 16 nm chips.

The increased capex budget will also dovetail with the growing rumours that Apple is to ditch its mobile patent sparring partner, Samsung, with regards to chip production for its smartphones.
The battle between the two has become increasingly savage and Apple appears to be looking for alternative component suppliers.

Citing sources close to Chinese-language Economic Daily News, CENS claimed that plans for TSMC to begin pilot production for Apple in the first half of 2013, with volume production to kick off in the second half of the year.

Read more: http://news.techeye.net/chips/tsmc-expects-q3-results-boost#ixzz26GBj2x41

TSMC to up 2013 capex to $10bn

David Manners

Monday 10 September 2012 09:05

According to Taiwan’s Economic News newspaper, TSMC is to increase capex by 25% from this year’s $8bn to $8.5bn, giving it a 2013 capex of around $10bn.

Last week Intel announced it was cutting capex to under $12bn. The company had intended to spend $12.5bn this year until it was hit by a softening PC market in Q3.

Top of the pile in capex spenders this year is Samsung which has a budget of $13.1bn.

TSMC has been under pressure from customers such as Qualcomm and Nvidia to increase capacity or improve yields or both, following a shortage of 28nm IC which is not expected to be resolved until the end of Q4.

SEMI, the trade body for fab equipment suppliers, says it expects a 17% growth in the fab equipment market to $43bn, making it a golden year for the manufacturers of chip-making equipment.