TSMC Co-CEO Mark Liu stated that because China is experiencing lower economic growth than predicted, Chinese smart phone sales have also been lower than anticipated. In addition global markets are lacking market momentum, which as led to higher fabless inventory than normal.

Furthermore, under the influence of the excessive inventory, TSMC lowered the global semiconductor growth rate forecast to 0%, which signifies that in 2015 the global semiconductor market will not experience any growth and may even experience negative growth.

Although the 2015 global semiconductor market outlook is not optimistic, TSMC today announced double-digit revenue growth at approximately 11%-12%. In addition, TSMC is also optimistic about next year’s semiconductor market and believes that next year the semiconductor market will return to its normal seasonal changes.

As for the issue of whether or not they will establish 12-inch Fab manufacturing in China, TSMC once again stated that they are still carefully assessing the situation. Chief Financial Officer Lora Lu stated that before setting up a factory in China they must consider the market, production costs, and a number of other links, and currently TSMC has not yet reached a final conclusion.

(TR/Phil Sweeney)