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Taiwan Semiconductor raises first-quarter forecasts

A file photo of Taiwan Semiconductor Manufacturing Company President Morris Chang. (file photo) Taiwan Semiconductor raised its sales and profitabilit...

A file photo of Taiwan Semiconductor Manufacturing Company President Morris Chang. (file photo) Taiwan Semiconductor raised its sales and profitabilit...

Taiwan Semiconductor Manufacturing Co. raised its sales and profitability forecasts, joining Mediatek Inc. and Macronix International Co. in revising projections in the past week on increased demand in China.

First-quarter revenue will be NT$36 billion ($1.04 billion) to NT$38 billion, the Hsinchu, Taiwan-based chipmaker said Tuesday. That compares with its Jan. 22 prediction of NT$32 billion. Gross profit may be 14 percent to 16 percent of revenue, the company said. Taiwan Semiconductor had previously forecast the margin would be 5 percent or lower.

China Premier Wen Jiabao (溫家寶) said last week the government will “significantly increase” investment this year to revive the world’s third-biggest economy. China said in November it would offer a 13 percent discount to farmers in 14 provinces on purchases of TVs, home appliances and mobile phones and would expand the program nationwide from February.

“China’s aim to boost domestic demand for computers and household appliances will help Taiwan,” said Robyn Hsu, who helps manage $3 billion funds at Capital Investment Trust Corp. in Taipei. “Taiwan will probably be the biggest beneficiary because of its dominance in supplying low-cost electronics devices and comprehensive component supply chain.”

Mediatek, which depends on China for about 70 percent of its revenue, raised its first-quarter sales projection on March 3. The company is Taiwan’s biggest chip designer. Macronix, a maker of chips used in music players and flat-screen televisions, expects shipments to rise as much as 5 percent in the first quarter from the previous quarter, it said in an exchange filing Monday.

Taiwan Semiconductor, the world’s biggest made-to-order chipmaker, fell 2.3 percent to close at NT$47.15 in Taipei trading before the announcement. The stock has gained 6.2 percent this year after dropping 28 percent in 2008.

Mediatek climbed 33 percent this year after tumbling 47 percent last year. Macronix surged 51 percent this year.


Updated : 2021-02-27 21:12 GMT+08:00