HSINCHU, Taiwan -- Bolstered by stronger demand for communications products and PCs, Taiwan Semiconductor Manufacturing Co. Ltd. reported net income soared 122% to a record level in the second quarter.
Sales increased 85% year-over-year to $1.03 billion, and income rose to $430 million from last year's second quarter as the company delivered 697,000 8-in.-equivalent wafers. Earnings were up from the prior quarter's net of $325 million.
"We're confident foundries will grow 30% to 35% annually on increasing applications and rising demand," company president F. C. Tseng told institutional investors. "Even though there are ups and downs, the outlook of foundries will remain positive for the next 20 years."
TSMC's bright results underscored rosy demand for chips used in mobile phones and other wireless devices, which together made up 39% of the second-quarter sales, said TSMC, the world's biggest pure-chip foundry. PCs, meanwhile, accounted for 36% of the sales.
About two-thirds of the sales were contributed by fabless houses and the rest from integrated device manufacturers (IDM), the company said.
Net income growth also resulted from improved non-operating income. TSMC's investment income from units WaferTech and Vanguard International Semiconductor -- both of which operate as foundries -- totaled $12.8 million in the second quarter, compared with losses in the year-ago period, TSMC said.