TSMC sales drop by 16%, lowest in 9 months
By Ted Chen, The China PostTAIPEI, Taiwan -- Taiwan Semiconductor Manufacturing Company (TSMC, 台積電) yesterday announced December revenues of NT$37.114 billion, down 16 percent month-on-month but up 18.8 percent year-on-year.
January 11, 2013, 12:44 am TWN
The figure is the firm's lowest monthly revenue total for nine months. For 2012, TSMC's consolidated revenues reached an unprecedented high of NT$506.249 billion, representing yearly growth of 18.8 percent.
TSMC's current market capitalization is NT$2.5 trillion, and stands to overtake Intel as the world's largest semiconductor firm this year.
The company has its earnings conference call scheduled for Jan. 17, where it will announce its consolidated earnings for the past quarter.
Institutional investors said that TSMC reportedly fixed capacity issues with its 28-nanometer (nm) fabrication process in the fourth quarter, allowing the company to satisfy market demands. Without incident TSMC's earnings for 2012 will reach the estimated NT$150 billion.
For the past six fiscal years TSMC has consistently paid out cash dividends of NT$3. With earnings per share at NT$6 and shares trading near the NT$100 mark, the company's cash dividend yield is at 3 percent, solidifying its blue-chip investment status.
As for the current year, TSMC Chairman and CEO Morris Chang (張忠謀) indicated that the company is anticipating growth of 15 to 20 percent, with the rapidly expanding tablet computer and smartphone markets propelling to new revenue highs until 2016.
Chang also stated that shares of TSMC can no longer be considered cyclical, as the company's performance is no longer affected by the routine ups and down in the global economy.
Institutional investors said their prediction that TSMC's revenues for the first quarter of 2013 will decline by 5 percent quarter on quarter, but will rebound significantly starting in the second quarter.
In anticipation of the expanding mobile device market, TSMC will ramp up its capital expenditure by an unprecedented US$90 billion to meet rising demand.
Meanwhile in the 2013 International Consumer Electronics Show (CES) at Las Vegas, Qualcomm's (高通) CEO Paul Jacobs was quoted as stating that they have devised new procedures to ensure that Qualcomm and TSMC can effectively convey actual demand and output figures. TSMC replied that its 28-nm fabrication output is fully capable of meeting market demands.
Pegatron Revenues up 56%
Pegatron (和碩) yesterday announced revenues of NT$755.482 billion for 2012, representing year-on-year growth of 56 percent.
The company's December revenue was NT$81.393 billion, representing a slight decline of 0.5 percent month-on-month. Pegatron expressed optimism for the first quarter of the current year, stating that the slump of the traditional low season will be compensated by growth in non-notebook computer products.
Foxconn Revenues up 16.09%
Foxconn (鴻海) yesterday announced revenue of NT$2.773 trillion, representing growth of 16.09 percent year on year.
The company's December revenue was NT$360.944 billion, up 2.61 percent month on month, and up 13.88 percent year on year. Foxconn indicated that while the company is enjoying the benefits of the rapid expansion of consumer electronics and mobile devices, revenue contribution from personal computing is waning.
Institutional investors attributed Foxconn's stellar performance last December to the success of Apple's products, as assembly of Apple products such as the iPhone 5 and the iPad mini accounted for 40 to 50 percent of the company's revenue.
For the first quarter of this year, institutional investors were quoted to have predicted that the downward adjustments in Apple's supply chain will not have a significant impact on Foxconn's revenues.