《TAIPEI TIMES》TSMC hits record sales of NT$2.26tn

Staff writer, with CNA

Taiwan Semiconductor Manufacturing Co （TSMC, 台積電） yesterday reported record sales for last year on the back of robust global demand for chips made using high-end processes.

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Consolidated sales rose 42.6 percent year-on-year to NT$2.26 trillion （US$74.19 billion）, after fourth-quarter sales reached NT$625.53 billion, rising 2 percent from the third quarter and also setting a record, the world’s largest contract chipmaker said in a statement.

Sales in the fourth quarter were aided by robust demand for TSMC’s advanced 5-nanometer process, but the figure missed the chipmaker’s sales guidance of US$19.9 billion to US$20.7 billion in US dollar terms and NT$562.05 billion to NT$626.85 billion in New Taiwan dollar terms, analysts said.

TSMC last month reported that sales declined 13.5 percent from a month earlier to NT$192.56 billion, the lowest figure since July last year, when it posted sales of NT$186.76 billion.

Still, last month’s sales rose 23.9 percent from a year earlier, the chipmaker said.

Analysts said the monthly decline was caused by ongoing inventory adjustments in the global semiconductor sector, which has been grappling with soft demand for chips made using the 7-nanometer and 6-nanometer processes due to weakness in the PC and smartphone markets.

The inventory adjustments have also sapped demand for TSMC chips made using the 5-nanometer and mature processes, increasing the likelihood that the company could post a sequential revenue decline of more than 10 percent this quarter, analysts said.

The company’s sales could recover in the second half of this year as inventory adjustments come to an end, they added.

TSMC is holding an investors’ conference tomorrow to unveil its outlook for this quarter and this year.

Investors would be interested TSMC’s capital expenditure and global expansion plans, as well as progress in its sophisticated processes, analysts said.

In related news, handset chip designer MediaTek Inc （聯發科） yesterday reported that consolidated sales last month rose 7.09 percent from a month earlier, but fell 16.27 percent annually to NT$38.69 billion.

Fourth-quarter sales decreased 23.89 percent from the previous quarter to NT$108.19 billion, but the figure remained within the company’s guidance of between NT$108 billion and NT$119.4 billion.

The sequential decline in sales last quarter reflected inventory adjustments in the TV chip market and weakening demand for 4G handset chips by clients in developing economies, analysts said.

MediaTek’s cumulative sales for the whole of last year rose 11.22 percent annually to NT$548.79 billion, the highest in the company’s history.

However, analysts said the company faces headwinds this year, as demand in the mobile phone market could continue to be weak and growth of 5G application processors is expected to be limited, while competition from Qualcomm Inc in the low-end market is rising.

Additional reporting by Chen Cheng-hui

新聞來源：TAIPEI TIMES