July 29 (Reuters) – TSMC (2330.TW), the world’s largest contract chipmaker, posted a record quarterly profit well above forecasts as it churned out more chips with more advanced technology to meet rising demand for new PCs, phones and other high-tech goods.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (TSM.N) said on Thursday it earned a net profit of T$40.3 billion ($1.3 billion) in April-June versus T$24.44 billion a year ago and well above a consensus forecast of T$35.2 billion from Thomson Reuters I/B/E/S.
The figure surpassed the previous record quarterly result of T$34.485 set in the fourth quarter of 2007.
TSMC and local rival UMC (2303.TW), No.2 chip foundry, are riding on a consumer boom, winning more orders from foreign clients who are selling more powerful chips for PCs, cell phones and other consumer products such as Apple’s (AAPL.O) iPad.
Analysts say TSMC’s profit could peak in the third quarter, the busiest sales season, before it starts to fall in the fourth. Technology demand typically slows after the pre-Christmas buying boom.
Investors are more focused on oversupply and weaker chip prices as they look beyond the strong second quarter.
So far this year, TSMC shares have fallen 2 percent while UMC shares were down 16 percent, against a 5 percent rise on Taiwan’s main TAIEX share index .TWII in the same period.
UMC’s quarterly results are due on Aug. 4. ($1=T$32) (Reporting by Baker Li, Editing by Lincoln Feast)
UPDATE 1-TSMC Q1 sales beat forecasts; more gains ahead
* March sales T$30.82 bln vs T$13.62 bln year ago
Stocks
* Q1 sales beat market and own forecasts
* Stock up 0.64 pct, outperforming big board (Recasts with analyst comments and details)
By Baker Li
TAIPEI, April 9 (Reuters) – Top contract chipmaker TSMC (2330.TW) wrapped up the first quarter with strong March sales, showing another evidance that major technology exporters in Asia are benefiting from a sustained pickup in demand globally.
TSMC (TSM.N) and No.2 chip foundry UMC (2303.TW) have said they would boost capital spending significantly this year to tap demand for new computers, cellphones and flat-screen TVs that require more powerful microchips.
But analysts say a wider customer base and early adoption of more advanced technology would help TSMC yield higher profit margins than UMC and other smaller rivals in the coming months.
“Second quarter should be very good and inventory is still healthy, so we are not concerned too much about the second half,” said Nomura analyst Rick Hsu.
“We are bullish on TSMC and UMC shares,” said Hsu, who put “buy” rating on the two stocks.
Both TSMC and UMC are set to report first-quarter earnings and give guidance for the second quarter in late April. The two Taiwan companies supply chips to fabless chip companies and other major chipmakers in the United States and Europe.
Investors chased TSMC shares in Taiwan ahead of the results, pushing the stock up 0.64 percent on Friday. The main TAIEX share index edged up 0.43 percent.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), which counts Texas Instruments (TXN.N) and Nvidia (NVDA.O) among major clients, had unconsolidated sales of T$30.82 billion ($975 million) last month, the company said.
That was more than doubled from a year ago and up 5.6 percent from February, even though a strong earthquake in Taiwan caused minor losses in early March. [ID:nTOE62302V]
A day earlier, UMC also reported a more than doubling in March sales on Thursday. [ID:nTOE63703U]
(For a graphic on TSMC/UMC combined sales, click here)
January-March consolidated sales totalled T$92.187 billion, up 133 percent from the year-ago period, beating TSMC’s own forecast of between T$89-91 billion made in late January.
That was also higher than market expectations of T$91.4 billion, according to Thomson Reuters I/B/E/S. (US$1=T$31.6) (Reporting by Baker Li, Editing by Jonathan Standing)