TSMC China profit hit as demand dips

EXPANSION:To better cater to Chinese clients’ needs, the world’s largest contract chipmaker is building a facility in Nanjing, which is to produce 16-nanometer chips

Taipei Times
Date: Mar 09, 2017
By: Lisa Wang / Staff reporter

The Chinese arm of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw profit for last year fall due to sluggish demand for less advanced chips, according to information obtained by China Credit Information Service Ltd (CCIS, 中華徵信所).

Net profit for TSMC China, which is fully owned by TSMC, last year plunged about 30 percent to NT$6.09 billion (US$197.3 million at the current exchange rate), compared with NT$8.73 billion in 2015, CCIS said on Tuesday, citing the latest consolidated financial statement submitted by the world’s biggest contract chipmaker to the Taiwan Stock Exchange.

The decline marked the first annual profit contraction since TSMC China became profitable in 2010 after five years of operations, statistics compiled by CCIS showed.

TSMC China was a cash cow for TSMC, sending profits soaring since 2010, when it was granted a license to produce chips on 0.13-micron technology, an upgrade from 0.18-micron technology, CCIS said.    [FULL  STORY]

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