|Morris Chang trying his best to keep up with Intel's capex:|
TSMC more upbeat on sales, chip market outlook for 2011
Nancy Cheng, Taipei; Jessie Shen, DIGITIMES [Friday 28 January 2011]
Taiwan Semiconductor Manufacturing Company (TSMC) projects its consolidated revenues will climb over 20% in 2011, company chairman and CEO Morris Chang said during a January 27 investors conference. Previously, the foundry predicted an over 15% rise.
TSMC has raised its forecast for chip market growth for 2011 to 7%, from the 5% originally anticipated, according to Chang. Chang also provided the company's estimates for worldwide PC, handset and consumer electronics shipments, which will see growth of 12%, 9% and 6%, respectively, in 2011.
Chang pointed out that the market for tablet PCs will expand significantly in 2011, and TSMC will benefit from the rising demand. A slew of tablet devices will hit the market starting the second half of 2011, implying that the share of the non-iPad tablet pie is set to expand, Chang said. Citing Microsoft's recent announcement that the new version of Windows will support ARM-based designs, Chang noted that orders for TSMC's clients, which mainly use ARM architecture designs, may surge.
About 61% of the total logic IC demand for tablets, which excludes those for Apple's iPad and Samsung's Galaxy Tab, are currently manufactured at TSMC, Chang estimated. TSMC forecast that worldwide tablet PC shipments will reach 42 million units in 2011, according to Chang.
In addition, Chang revealed that TSMC plans US$7.8 billion in capex for 2011. About 81% of the spending will be used to expand capacity for 65nm, 45nm and 28nm processes, as well as R&D for 20nm and 14nm technologies, Chang indicated.
Regarding TSMC's schedule for 18-inch wafer tape out, Chang said the foundry expects to begin trial production on 18-inch wafers between 2013 and 2014 followed by volume production in 2015-2016. TSMC's original plan was to kick off trial production in 2012.