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Taiwan Semiconductor's Q1 profit up 18.2 percent

Taiwan Semiconductor's Q1 profit up 18.2 percent

By Agence France-Presse | Updated: 18 April 2013 17:44 IST

Taiwan Semiconductor Manufacturing Co., the world's top contract microchip maker, said Thursday first-quarter profit rose 18.2 percent year-on-year on robust demand for chips used in mobile devices.

Profit in the three months to March totalled Tw$39.58 billion ($1.32 billion), up from Tw$33.49 billion in the first quarter of 2012, said the company whose major clients include Qualcomm, and Taiwan chip design house MediaTek.

Revenue in the first quarter also rose 25.7 percent to Tw$132.76 billion from Tw$105.6 billion a year earlier, beating the guidance range of Tw$127-Tw$129 billion released.

"In the first quarter, demand for TSMC's wafers was stronger than seasonal as mobile customers accelerated their new product launches for the year," the statement said.

The data comes after the Taipei-based Commercial Times reported in January that TSMC would start making microchips in the first quarter this year for Apple as the US tech giant reduces manufacturing contracts with its rival Samsung.

In Thursday's investor conference, Chairman Morris Chang said he made a mistake in forecasting the demand for mobile devices last year.

Chief financial officer Lora Ho said: "We expect the strong mobile demand, especially in emerging markets, to continue in the second quarter."

Revenue from chips used in hand-held devices and other communications rose 4.0 percent quarter-on-quarter in January-March and accounted for 55 percent of sales, the statement said.

North America accounted for 69 percent of total revenues, while Asia Pacific was 14 percent, China seven percent and Europe eight percent.

In order to prepare for a fast ramp up of advanced technologies, TSMC raised its capital expenditure estimate for 2013 to a range of $9.5-$10 billion, up from the previous forecast of $9 billion.

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