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TSMC growth forecast remains at 5-10% this year

Posted: 19 Apr 2016 ?? ?Print Version ?Bookmark and Share

Keywords:TSMC? IC? foundry? worldwide smartphone market?

Digitimes has released a report indicating that Taiwan Semiconductor Manufacturing Company's (TSMC) target of 5-10 per cent growth in 2016 consolidated revenues remains unchanged, according to the pure-play foundry.

TSMC revised its semiconductor market growth forecast for 2016 to 1 per cent, down from the previously-estimated 2 per cent. The foundry attributed its downward revision to slower-than-expected growth in the worldwide smartphone market, and weak PC and tablet sales.

Nevertheless, TSMC maintained its 2016 growth forecast for the IC foundry sector at 5 per cent.

TSMC also cut its growth forecast for 2016 smartphone market growth to 7 per cent from 8 per cent, and for the PC sector to minus 6 per cent from minus 3 per cent. The growth outlook for the tablet segment has also been reduced to -9 per cent from -7 per cent, the foundry stated.

In addition, TSMC disclosed it continues to ramp up production of 16nm chips with further improvements in yield rates. The foundry reiterated 16nm will account for more than 20 per cent of its total wafer revenues in 2016.

TSMC's 10nm process has received product tape-outs since the first quarter of 2016, the company said. "We are actively preparing for more customer product tape-outs in the following quarters," said company co-CEO Mark Liu. "Those tape-outs will drive a sizable demand starting from 2Q17 through 2018."

As for 7nm, development is well on track, TSMC noted. "We have more than 20 customers in intensive design engagement with us and expect to have 15 customer tape-outs in 2017," Liu indicated. TSMC expects to move its 7nm process technology to volume production in 1H18.

- Julian Ho
??Digitimes





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