TSMC held its 2015 Fourth Quarter Earnings Conference and Conference Call at Far Eastern Plaza Hotel, the company’s Senior Vice President and Chief Financial Officer Lora Ho stated that, the overall smartphone market in China will see a revival that provides the engine of profitable growth in the first quarter of 2016.

“In the fourth quarter, the ramp of 16-nanometer technologies accelerated according to plan,” said Lora Ho, SVP and Chief Financial Officer of TSMC.

Mark Liu pointed out that the emerging market will also see a revival in the smartphone market.

Shipments of 16/20-nanometer accounted for 24 percent of wafer revenues, and 28-nanometer process technology accounted for 25 percent of total wafer revenues. Advanced technologies, defined as 28-nanometer and more advanced technologies, accounted for 49 percent of total wafer revenues.

While the China smartphone market shows signs of recovery, customers remain cautious in general. Based on our current business outlook and exchange rate assumption of 1 US dollar to 32.5 NT dollars, management expects overall performance for first quarter 2016 to be as revenue is expected to be between NT$198 billion and NT$201 billion, gross profit margin is expected to be between 47 percent and 49 percent and operating profit margin is expected to be between 36.5 percent and 38.5 percent, Lora Ho said.

As a result, global smartphone shipment is expected to grow eight percent this year, while PC is expected to decrease by three percent, tablets will be reduced seven percent. And consumer electronics are going to cut down five percent.