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TSMC Q3 sales to grow 7% on 28-nanometer tech: CEO

Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, is expected to see sales growth of 7 percent in the third quarter on increased output of products made with the 28-nanometer technology, said Morris Chang, chairman and CEO of TSMC, yesterday.

He also said a correction may be seen in the industry from the fourth quarter to the first quarter of next year. Yet a strong recovery is possible in the second quarter next year.

He made the remarks during the firm's quarterly investors' conference yesterday, where he gave a positive outlook for the third quarter.

Combined revenue for the company during this current quarter is expected to grow seven percent from the second quarter, he said.

Ho Li-mei, chief finance officer of TSMC, said combined sales for the third quarter are expected to be between NT$136 billion and NT$138 billion, which will again be a historic high. Gross profit margin is forecasted to be between 46 and 48 percent while operating margin 34 and 36 percent.

Also according to her, 28-nanometer output may double next quarter to contribute to over 80 percent of the firm's sales.

Sales from the 28-nm technology in the second quarter grew 99 percent from the first three months and accounted for seven percent of the total, she said.

Meanwhile, the firm's more advanced 20-nm technology will go through certification in the fourth quarter, with tape-outs expected to come out in the first quarter next year, Chang said.

Demands for 20-nm will expand in 2014, he said.

Also during the confab, TSMC reported its second-quarter results.

Sales for the April-June period hit NT$128.06 billion, an increase of 21.4 percent from the first quarter.

Gross profit margin was 48.6 percent, rising 0.9 percent from the first quarter. Net profit was NT$41.81 billion, an increase of 24.9 percent quarter-on-quarter. Earnings per share (EPS) were NT$1.61.

For the first six months, TSMC had combined sales of NT$233.569 billion, an increase of 8.2 percent year-on-year. Gross profit margin was 48.2 percent. Net profit was NT$75.287 billion, a rise of 4.2 percent. EPS were NT$2.9.

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