TSMC Sees More Growth in 2015!

As I wait for my plane to Taiwan I’m wondering what the New Year has in store for the fabless semiconductor ecosystem. Good things I hope but to make sure let’s take another look at one of my trusted economic bellwethers (TSMC) which I’m guessing will break the $25B revenue mark this year. That is more than a 25% growth rate year over year. What an amazing road this company has paved for us!

Here are some interesting snippets from the TSMC 14th Annual Supply Chain Management Forum held in Hschinsu last week:

• Next year the global semiconductor industry will grow 4%-5%
• We do not foresee any unusual inventory supply chain adjustment
• The global foundry industry is expected to expand 12% in revenue next year from this year
• TSMC’s foundry market share will rise to 53% of the global market this year, compared with 49% last year
• 20 nanometer chips will account for 20% of the firm’s total revenue this quarter
• Revenue from 20nm chips should be more than double next year
• TSMC is scheduled to begin pilot production of its advanced 10nm technology in Q4 2014 and to ramp up production at the end of 2016
• Manufacturing capacity will increase by 12% from last year, with total annual capacity expected to reach 8.2 million 12-inch equivalent wafers in 2014

“TSMC’s success comes from collaborating with our customers and suppliers through our Grand Alliance so that we magnify each others’ innovations and stand together as a most powerful competitive force in the semiconductor industry,” said TSMC Co-Chief Executive Officer Dr. Mark Liu. “Our supplier partners are a critical part of this alliance, and we look forward to reaping the rewards of many years of strong growth together.”

The Outstanding Contribution Award went to Applied Materials for EPI/PVD Equipment and Local Service. From what I heard this is in direct response to the success of the 16FF+ process but more on that later.

One of the things I have enjoyed over the years is the candid nature of Morris Chang’s comments. Even on the quarterly conference calls which are usually scripted. So far I have experienced the same from heir apparent Mark Lui. Take a look at Mark’s resume on the TSMC website:

Dr. Mark Liu is currently President and Co-Chief Executive Officer at Taiwan Semiconductor Manufacturing Company (TSMC). Prior to this, he was Co-Chief Operating Officer from March 2012 to November 2013. Before that, he was Senior Vice President of Operations from 2009 to 2012. From 2006 to 2009, he was a Senior Vice President responsible for the Advanced Technology Business at TSMC. From 1999 to 2000, he was the President of Worldwide Semiconductor Manufacturing Company.

Prior to joining TSMC, from 1987 to 1993, he was with AT&T Bell Laboratory, Holmdel, NJ, as a research manager for the High Speed Electronics Research Laboratory, working on optical fiber communication systems. From 1983 to 1987, he was a process integration manager of CMOS technology development at Intel Corporation, Santa Clara, CA, developing silicon process technologies for Intel microprocessor.

Ph.D., Electrical Engineering and Computer Science, University of California, Berkeley

Some people say filling the shoes of Morris Chang will be difficult but I do not see a problem here. I would hold Mark’s credentials up against any other CEO in the semiconductor industry, absolutely.

Also Read: Intel is NOT Quitting Mobile!