SAN JOSE, Calif. - Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) reported consolidated revenue of NT$105.38 billion ($3.597 billion) in the first quarter, representing a 4.3 percent decrease from 4Q10 and a 14.3 percent increase from 1Q10.
It posted net income of NT$36.28 billion ($1.243 billion) for the first quarter ended March 31, 2011. Year-over-year, first quarter net income increased 7.8 percent. Compared to fourth quarter of 2010, first quarter of 2011 results represented a 10.9 percent decrease in net income.
''Demand for TSMC’s wafers was stronger than seasonal during the first quarter, with revenue slightly down 0.7 percent in U.S. dollar terms,'' according to TSMC. ''However, including the unfavorable impact from a 3.6 percent change in foreign exchange rate, wafer sales decreased sequentially in all major applications. Communication, computer, consumer, and industrial decreased 3 percent, 9 percent, 6 percent, and 8 percent, respectively, from 4Q10.''
40-nm process technology accounted for 22 percent of total wafer revenues, 65-nm accounted for 32 percent. The March 11 earthquake in Japan is not expected to cause any interruptions in TSMC's supply lines.
Total managed capacity remained flat at 3.063 million 8-inch equivalent wafers in 1Q11. Total managed capacity is expected to increase 19 percent from 11.329 million 8-inch equivalent wafers in 2010 to 13.476 million in 2011, in which 300-mm wafer capacity is expected to increase 33 percent sequentially.
For Q2, revenue is expected to be between NT$109 billion and NT$111 billion.
After stumbling-and arguably falling behind its rivals-in recent times, TSMC drove home a message at its recent annual technology event: The silicon foundry giant is back on track. TSMC reiterated the company’s aggressive and eye-popping capital spending, fab and process technology plans for 2011 and beyond.
As reported, rival Taiwan foundry vendor United Microelectronics Corp. (UMC) Wednesday (April 27) reported first quarter sales that fell short of analysts' expectations and tempered its outlook for the second quarter.
In coming days, I guess TSMC will face tough competition from Intel, which is planning to venture into fab business. Intel is already building processors for its 22nm process. Needs to be seen how TSMC will gear up for this challenge.
David Patterson, known for his pioneering research that led to RAID, clusters and more, is part of a team at UC Berkeley that recently made its RISC-V processor architecture an open source hardware offering. We talk with Patterson and one of his colleagues behind the effort about the opportunities they see, what new kinds of designs they hope to enable and what it means for today’s commercial processor giants such as Intel, ARM and Imagination Technologies.