From EETimes: Taiwan Semiconductor Manufacturing Co. (TSMC) showed a solid 10.9% growth in revenue in the fourth quarter, which ended December 2013, compared to the same quarter a year ago. The company's fourth quarter net income and diluted earnings per share both increased by 7.7%.
The foundry giant attributed its fourth quarter growth to the accelerated demand for mobile devices -- late in the year -- and the company's improved margins. TSMC said that gross margin for the quarter was 44.5%, operating margin was 32.8%, and net profit margin was 30.7%.
TSMC, however, isn't optimistic about the coming quarter.
Lora Ho, senior vice president and chief financial officer of TSMC, noted in a statement that the company expects its first quarter revenue to decline sequentially by about 6%. It's due to "IC companies' weak seasonal demand and the continuing inventory reductions by the fabless companies," she added.
The continued demand for mobile computing devices in the fourth quarter, however, appears to have masked what was going on in the rest of the application segments.
During the earnings call, Ho said, "Our demand for computer, consumer, and industrial-related products all declined by double digits." She added "inventory correction in the IT supply chain affected overall demand for TSMC's wafer." As a result, communication became the sole growth segment for TSMC, with its revenue contribution increasing from 49% in the third quarter to 54% in the fourth quarter.
Undoubtedly sluggish personal computer sales are affecting many vendors in the semiconductor industry -- including Intel Corp. Earlier this week, Intel said it has delayed opening a factory in Chandler, Ariz.,that was originally planned to start producing chips made from the most advanced 14 nanometer process.
View: Article @ Source Site
