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TSMC says its global market share rose to 50% in 2005

TSMC says its global market share rose to 50% in 2005

Taiwan Semiconductor Manufacturing Co., said that its global market share rose to 50 percent in 2005 from 47 percent a year earlier as the company raised production at its new plants."Our market share rose because of our advanced technology and manufacturing excellence," Kenneth Kin, senior vice president, worldwide sales and services, said yesterday at the company's annual technology symposium in Hsinchu.
Chief Executive Officer Rick Tsai, whose company makes chips used in Xbox 360 game consoles and Razr phones, plans to tap record sales of consumer electronics this year. The Hsinchu-based chipmaker said last month that it had started mass production of 65 nanometer semiconductors for customers including Freescale Semiconductor Inc. and Altera Corp., which enables Taiwan Semiconductor to cut costs and raise production.
"One of the things they do very well is they have superior technology development, so they can always develop advanced technologies much faster than other competitors," said Johnny Chen, a semiconductor analyst at Deutsche Bank in Taipei.
A total of 18 companies have ordered Taiwan Semiconductor's 65 nanometer chips, the company said. A nanometer is a billionth of a meter and measures the distance between transistors in a chip. By shrinking the size of semiconductors, companies can make more chips per silicon wafer.
The company plans to start production of 45-nanometer chips from next year, Taiwan Semiconductor said in a statement.
"We will run test production of 45-nanometer chips in the third quarter next year," Jack Sun, vice president, research and development, said. "The 45-nanometer chips will cut costs by 40 to 50 percent, compared with 65 nanometer chips, and will improve speeds by 60 percent."
Taiwan Semiconductor had a more than 70 percent share of the market for 90 nanometer chips in 2004 and 2005, he said.
The chip industry will grow an average 8 percent a year in the next 10 years compared with 5 percent in the past decade, Kin said.
"The semiconductor industry has entered a new era with healthy growth for the next 10 to 15 years," Kin said. "The foundry model will continue to flourish.
In the decade to 2000, personal computers drove industry sales, while from 2001 to 2010 consumer electronics will lead growth, he said.
Worldwide sales of consumer electronics may gain 8 percent to a US$135.4 billion this year, according to the U.S.-based Consumer Electronics Association.
"Before, it was primarily PCs, now you have handsets and a lot of consumers devices that are coming along, and pretty soon you will have convergence PCs, convergence devices and communications products," said Deutsche Bank's Chen.