TSMC Q4 profit up 8 percent; aims to beat Intel, Samsung with new chips

The contract chip maker expects double digit profit and revenue growth in 2014

Contract chip maker Taiwan Semiconductor Manufacturing Co. said its net profit grew by close to 8 percent year-over-year in the fourth quarter.

The company aims to "outcompete" Intel and Samsung in chips made with its upcoming 16-nanometer manufacturing process.

During the quarter, TSMC's net profit reached NT$44.8 billion (US$1.4 billion) from NT$41.6 billion in the same period a year ago. Revenue was NT$145.8 billion, a year-over-year increase of close to 11 percent that met the company's projections, TSMC reported on Thursday.

TSMC's revenue has been steadily growing as a result of surging sales of smartphone and tablets. The company manufactures chips for companies like Qualcomm and Nvidia, with Apple also rumored to be one of its clients. About a third of TSMC's revenue comes from smartphone and tablet processors.

Helping to drive revenue for TSMC is the company's 28-nm chip manufacturing technology, which can make processors that are faster and more power-efficient. The 28-nm manufacturing process accounted for 34 percent of its chip making revenue in the fourth quarter.

"Now looking at 2014, we expect still another consecutive year of double digit growth in revenue," said TSMC chairman Morris Chang in an earnings call. For the whole of 2013, the company saw revenue increase by 17.8 percent.

TSMC is optimistic in its outlook as it expects that the large number of wearable devices being developed by tech vendors will further drive demand for mobile chips. At the same time, the company is developing even more advanced chip manufacturing technology that'll further improve its processors.

During Thursday's earnings call, company executives said its 16-nm manufacturing process, slated to go into production later this year, will help it make chips that rival technology from Intel and Samsung.

"Recently Intel published some data that our 16 FinFET project has been behind and we think that the data is highly misleading," Chang said. He later added, "Our grand alliance will outcompete Intel and Samsung," referring to TSMC's partnership for 16-nm manufacturing technology with its customers.

Intel is preparing a 14-nm process, and using it to build its new Broadwell processor. The company, however, said in October that production of its Broadwell chips will be pushed back until the first quarter of this year due to a manufacturing defect in the technology.

Samsung is also working on 14-nm chip making technology.

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 business issuesprocessorsfinancial resultsComponentsTaiwan Semiconductor Manufacturing Co.

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

Michael Kan

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Skywatcher Dobsonian 8″ Collapsible Telescope

Learn more >

Family Friendly

Whodunnit™ Duo-Scope MFL-007 Microscope Kit

Learn more >

Stocking Stuffer

Logitech Ultimate Ears Wonderboom 2 Bluetooth Speaker

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?