- Advanced technologies, which are defined as 16-nanometer and below, accounted for 55 per cent of TSMC’s wafer revenue
- TSMC’s smartphone’s platform accounted for 49 per cent of its first quarter revenue
- Company said work-from-home driving demand for high-performance-computing products
Taiwan Semiconductor Manufacturing Company (TSMC) is expecting it’s second quarter revenue to be between $10.1 billion and $10.4 billion. These figures represent a 0.6 per cent sequential decrease at the midpoint.
“First quarter revenue in New Taiwan Dollars (NT) decreased 2.1 per cent sequentially, which is less than seasonality, due to the increase in high performance computing (HPC)-related demand and the continued ramp of 5G smartphones. Gross margin increased 1.6 per cent points sequentially to 51.8 per cent, thanks to a higher level of utilization, which was partially offset by an unfavorable exchange rate. Total operating expenses decreased by TWD2.6 billion, mainly as five-nanometer technology moved from R&D stage to mass production during the first quarter. Operating margin increased by 2.2 per cent points sequentially to 41.4 per cent. Overall, our first quarter EPS was TWD4.51, and ROE was 28.4 per cent,” stated Wendell Huang, chief financial officer, TSMC, during the earnings call of the company.
16-nanometer and below technology, accounted for 55 per cent of wafer revenue
The company informed that its seven-nanometer process technology contributed 35 per cent of wafer revenue in the first quarter. Revenue generated by 10-nanometer was 0.5 per cent and by 16-nanometer was 19 per cent of total revenue figures.
“Advanced technologies, which are defined as 16-nanometer and below, accounted for 55 per cent of wafer revenue,” added Huang.
He further said,”Smartphone decreased nine per cent quarter-over-quarter to account for 49 per cent of our first quarter revenue. HPC increased three per cent to account for 30 per cent. IoT increased eight per cent to account for nine per cent. Automotive decreased one per cent to account for four per cent. Digital consumer electronics increased 44 per cent to account for five per cent.”
C.C. Wei, Chief Executive Officer, TSMC said ,”Moving into second quarter 2020, we expect our revenue to be flattish as weaker mobile product demand is expected to be balanced by continued 5G deployment and HPC-related product launches. While we have not seen significant order reduction from our customers so far, we do observe supply chain dislocation and weaker end market demand from COVID-19 in the first half of this year.”
“In the near-term, we have observed weaker end demand in applications such as consumer electronics and automotives. Meanwhile, we have also observed better demand from HPC as compared to three months ago driven by trends such as work from home,” Wei Added.
