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TSMC reiterates forecast of better 2nd half than 1st half of year

TSMC reiterates forecast of better 2nd half than 1st half of year

Taipei, June 9 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the world's largest contract chip maker, reiterated Tuesday a prediction that the company will have a better second than first half this year following inventory adjustments during the January-June period. In an annual general meeting, TSMC Chairman Morris Chang (???) told shareholders that the chip maker did not suffer any large cutbacks in orders from its buyers, and that after the slow season in the first half, the company will see momentum pick up in the second half. Chang maintained a forecast TSMC gave in an investor conference held in mid-April that the company's sales and earnings for 2015 will grow more than 10 percent from a year earlier. Many investors had been worried that Chang would not give any positive predictions in the shareholder meeting after its subsidiary, Vanguard International Semiconductor Corp. (????), a day earlier expressed caution about the global integrated circuit business. But, Chang said that after the April investor conference, the market conditions remained little changed and that the company will give more details about the market assessment in the next investor conference, likely in mid-July, to report the second-quarter results and third-quarter guidance. While the market has feared that consolidation in the global IC industry will lead TSMC's clients to shift orders to its competitors, Chang said that the recent mergers and acquisitions have had only limited impact on TSMC's operations. Among the latest merger deals, U.S.-based IC giant Intel Corp. announced earlier this month that it had agreed to acquire Altera, a programmable logic semiconductor supplier, for US$16.7 billion. Altera is one of TSMC's buyers. Chang said that TSMC encounters strong competition all the time and that the chip maker has no fear of competition but keeps growing so that its global market share has been on the rise. In 2014, TSMC's market share rose to 54 percent, up from 49 percent recorded a year earlier. It was the fifth consecutive year in which TSMC posted growth in its global market share. In Tuesday's meeting, shareholders approved a TSMC proposal to issue cash dividend payouts of NT$4.5 (US$0.14) for 2014, when the chip maker posted NT$10.18 in earnings per share, a record high for the company. Chang said that 2014 was a successful year for TSMC so the chip maker raised its cash dividend payout to NT$4.5 from NT$3 recorded over the past few years. (By Jackson Chang and Frances Huang)


Updated : 2021-09-27 23:48 GMT+08:00