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TSMC: Smart Home and IoT Are New Driving Forces

By Vincent Wang
Published: Oct 16,2014

TAIPEI, Taiwan — TSMC today announced consolidated revenue of NT$209.05 billion, net income of NT$76.34 billion, and diluted earnings per share of NT$2.94 (US$0.49 per ADR unit) for the third quarter ended September 30, 2014. The Co-chief Executive Mark Liu said that including wearables, smart home, smart car, and Internet of Things (IoTs) are driving forces of TSMC in the future,

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Mark Liu also said that the eye-catching 10nm process will be taped out in the fourth quarter of 2015, and will be put in mass production in 2016. “So far in the 10nm process TSMC has teamed up with more than 10 customers, among smartphones baseband, graphics processing unit, server, game console, and FPGA categories.”

Mark Liu suggested that smartphones and tablet are still the main growth drivers of TSMC, and it can last a few years ahead. “Wearables, smart home, smart car, and IoT are the new driving forces of TSMC.” Liu added.

According to TSMC, year-over-year, third quarter revenue increased 28.6 percent while net income and diluted EPS both increased 46.9 percent. Compared to second quarter 2014, third quarter results represent a 14.2 percent increase in revenue, and a 27.9 percent increase in net income. All figures were prepared in accordance with TIFRS on a consolidated basis.

Thanks to the hot sales of iPhone 6 series. In US dollars, third quarter revenue increased 14.7 percent from the previous quarter and increased 28.1 percent year-over-year.

Gross margin for the quarter was 50.5 percent, operating margin was 40.4 percent, and net profit margin was 36.5 percent.

Shipments of 20nm process technology accounted for 9 percent of total wafer revenues. 28nm accounted for 34 percent of total wafer revenues. Advanced technologies, defined as 28nm and 20nm technologies, accounted for 43 percent of total wafer revenues.

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