Taiwan Semiconductor reports steady growth

Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest builder of made-to-order chips, reported steady growth in revenue and profits in the second quarter.

Revenue was up 17.6 per cent compared to the same period last year, reaching $2.88bn. Net profits rose to $941m.

The Taiwan-based company did see some negative impact on these figures from the strengthening Taiwan dollar.

"Even with a weakening macroeconomic environment, our second quarter results were either in line with or slightly higher than guidance announced at the end of April, thanks to our continual effort in driving cost reduction and increasing utilisation rates," said TSMC chief financial officer Lora Ho.

As the company expanded its output despite mixed market signals, silicon wafer shipments were up 25.5 per cent quarter-on-quarter and six per cent year-on-year in terms of potential maximum chip yield.

TSMC builds chips exclusively for other companies and does not design or market products of its own.

More than 63 per cent of revenue was generated by advanced manufacturing technologies with a scale of 0.13 microns and below.

Leading edge 65nm chips made up 18 per cent of sales and are expected to represent 20 per cent of the company's output this year, executives told local media.

"Based on our current business outlook, management expects third quarter revenue growth to be below seasonality," added Ho.

The company predicts its third quarter operating profit margin to rise from 32.6 per cent this quarter to between 34 and 36 per cent, as revenue increases to well above US$2.9bn.