TSMC claims 20nm boost

TSMC shares have been increasing after the contract chipmaker expressed optimism about the 20 nanometer process to its 2014 sales.

TSMC is splashing out on capital next year, to gain a technology lead over its peers in the global semiconductor foundry business.

According to the Taiwan press shares have been increasing both in Taiwan and in foreign parts as investors liked what TSMC announced.

KGI Securities analyst Eason Lee said that TSMC gave a strong impression that the sophisticated 20nm process will contribution heavily to the company’s sales for 2014. TSMC has made a better-than-expected progress in developing the 20nm process.

TSMC said it will start to supply chips on the 20nm process in the first quarter of next year and estimated that the operations could account for about 10 percent of its annual sales for 2014.

Lee thinks that the 20nm process is likely to make up more than 10 percent of TSMC’s total revenue next year. It could even hit 15 percent as the company’s estimate seemed a bit conservative, Lee said.

TSMC is planning to begin production of chips on the 16nm process in 2015.