Feeds

TSMC Q4 decline mirrors chip market

Record year, weak second half

  • alert
  • submit to reddit

New hybrid storage solutions

TSMC, the world's largest chip foundry, yesterday posted full-year and fourth-quarter figures that reflect the up-and-down nature of the world chip market in 2004.

Even so, the company revealed it plans to increase spending on new plant during 2005.

For the year as a whole, TSMC reported record revenues: TWD255.59bn ($8.03bn), up 26.8 per cent on 2003's total. Net income was up 93.5 per cent to TWD92.32bn ($2.90bn) - with earnings of TWD3.97 (12.5 cents a share), an increase of 96.8 per cent on the previous year.

But despite a strong overall 2004, like the chip industry as a whole, TSMC saw the second half of the year move from boom to decline. For the three months to 31 December 2004, TSMC's revenues fell 8.4 per cent on the previous quarter to TWD63.87bn ($2.01bn) thanks to an 8.5 per cent decline in wafer shipments and the further weakening of the dollar. The company's average selling price was up 1.7 per cent, which helped offset these losses.

Net income came to TWD22.18bn ($696.5m), down 20.6 per cent on the previous quarter, with earnings of TWD0.96 (three cents) a share, down 20.5 per cent.

Q4 revenue, net income and earnings were up 11, 39 and 40 per cent, respectively, over Q4 FY2003.

Q4 FY2004's gross margin slipped 3.6 percentage points to 42.5 per cent.

The slippage isn't over. TSMC expects Q1 FY2005 to see wafer shipments fall by only a single percentage point, but gross margin will fall up to 4.5 per cent or as little as two per cent. It reckons ASPs will stay the same.

More positively, TSMC plans to raise capita expenditure during 2005, to $25-2.7bn, up from 2004's $2.4bn. ®

Related stories

Chips are down for Taiwan foundry giants
TSMC, UMC fab utilisation to plummet in Q4 iSuppli cuts 2005 chip sales growth target
World chip sales to fall next year - analyst
Q3 chip production up despite downturn
Intel to retain top chip maker title on 04...
Chip trade body revises 2004 sales downward

New hybrid storage solutions

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
Alibaba swings a large one with STONKING IPO legal bills
Chinese e-commerce beast searches for $21bn from investors
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.