TSMC to raise chip capacity, puts mobile computing in focus

The world's largest semiconductor foundry sees support from Windows 8

TSMC, the world's biggest semiconductor foundry, said on Thursday it expects to expand capacity 20 percent this year as demand for PCs and mobile devices rises.

The company announced capital expenditures of US$7.8 billion in 2011 to support that expansion in manufacturing capacity. Today the company produces 11.3 million eight-inch equivalent wafers among the factories that TSMC owns or manages, CEO Morris Chang told an investor conference.

The firm will also double capital expenditures for research and development to US$700 million, Chang said.

A lion's share of TSMC's semiconductor revenue in the fourth quarter of last year, 47 percent, came from communication equipment such as mobile phone handsets, the company said in a statement. Revenue from computers declined 6 percent in the same quarter. TSMC sales grew by about 42 percent in the full year 2010.

But tablets -- a market led so far by the iPad -- and other PCs are driving TSMC's efforts this year to ramp up capacity and work on advanced production systems, Chang said. TSMC foresees growth in client demand outpacing what it can produce now, he said.

"We stand to benefit from some of these mobile devices," Chang said. "The center of gravity of the computer market is shifting. Maybe we should say it's getting closer to us."

Microsoft's expected use of Windows 8 on ARM-built processors should create particular opportunities for TSMC's mobile computing clients, Chang said.

The company would not say which of its 450 clients was increasing orders for semiconductors.

TSMC's forecast further points to an industry-wide turnaround since 2009, when the global financial crisis chilled much of the tech trade.

Its cross-town rival United Microelectronics said on Wednesday it was unsure how important tablets would be for semiconductors this year. UMC attributed 2010 revenue growth to communication equipment, display drivers and touch pads.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobiletelecommunicationhardware systemstablet PCslaptopsComponentsTaiwan Semiconductor Manufacturing Co.MotherboardsMorris Chang

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ralph Jennings

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?