Feeds

TSMC capital spending to fall this year – and next

Still no sign of chip market rebound

  • alert
  • submit to reddit

Intel may be resolutely sticking to its 2001 capital spending target of $7.5 billion, but few of its rival chip makers are sticking to their own projected levels of spending.

TSMC certainly isn't. Speaking at the International Symposium on Semiconductor Manufacturing in San Jose last week, company chairman Morris Chang said that the company will have spent some $2.2 billion on new plant and equipment this year, well down on the $3.4 billion TSMC spent in 2000.

Next year, the world's largest chip foundry will be even more thrifty. "I expect our capital expenditures in 2002 will be even less [than 2001]," Chang admitted, though he declined to put a figure to it.

This despite the upturn is sales TSMC has recorded since the end of the second calendar quarter. The company recently said it expects its Q3 sales to be significantly higher than those recorded in Q2, with net income growing fourfold. And Chang reiterated that Q4 will be better than Q3.

But not that much better, and certainly not sufficiently so for the company to make confident predictions for 2002. "I don't know when the robust recovery will happen," Chang said. He's certainly not anticipating it any time soon, if his expectations for the company 2002 capital spending is anything to go by. ®

Related Story

TSMC Q3 income to be 400% up on Q2

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.