TSMC’s May Revenue Decreases Surprisingly

 Taiwan Semiconductor Manufacturing Co. (TSMC) announced consolidated revenue of NT$60.79 billion (US$2.02 billion) in May, decreasing 1.8% from a month earlier to surprise the market and cap the uptrend in recent months despite being the second highest in its history.

Industry executives expect the pure silicon foundry giant’s revenue for this June to further dip, but feel the company will be able to attain its target of NT$180-183 billion (US$6-6.1 billion) for the second quarter, which is 21.44-23.47% higher than in the previous quarter. Its consolidated revenue for April and May totaled NT$122.6 billion (US$4 billion), already constituting 68% of the quarterly target.

TSMC Director of Corporate Communication Division Elzabeth Sun said the company is very confident of reaching the goal. The company even feels that its Q2 revenue will set another high given that production of all lines are at full capacity, mostly driven by robust demand for 28nm process foundry and increased orders for 20nm process foundry service.

Total revenue for January through May was NT$270.89 billion (US$9 billion), up 15.5% year on year and with the April result hitting a new high. Industry executives attribute the April peak mostly to the brisk sales of the company’s stockpile and order books filling up.

Regardless of the decreased May revenue and expected June sale decline, foreign institutional investors project the company’s share price to continue rising, to around NT$140-160 (US$4.6-5.3) per share this year, with profit of NT$8 per share this year, up from 2013’s NT$6. (KL)

TSMC’s May 2014 Consolidated Revenue

                                                          (Unit: NT$ million)

Period	May 2014	April 2014	M-o-M Change (%)	May 2013	Y-o-Y Change (%)	January to May 2014	January to May 2013	Y-o-Y Change (%)
Net Revenues	60,789	61,887	(-1.8)	51,788	+17.4	270,892	234,614	+15.5

Source: TSMC