TSMC expects Q3 results boost

TSMC announced today it had increased sales by 32 percent, while reports claim that the foundry is set to up its capex spend amid talk of new orders from Apple.

In financial results released today, the Taiwanese foundry said that unconsolidated sales were up to $1.64 billion during August, increasing two percent over the previous quarter and 32 percent from the same point in 2011.  Consolidated sales increased 31.5 percent over August 2011.

Commenting on the results, TSMC’s chief financial officer, Lora Ho, said that third quarter revenues are now expected to be slightly higher than previous estimates.

According to CENS, TSMC is also set to increase its capital expenditure budget by 25 percent, up from $8 billion to $10 billion during 2013.  

Although TSMC is not expected to make any official announcements until later this year, the increased spending would enable expansion of production at its current leading edge 28nm process, as well as beginning volume production of 20nm chips.  Cash would also be spent on advanced lithography tools, and beginning development of 16 nm chips.

The increased capex budget will also dovetail with the growing rumours that Apple is to ditch its mobile patent sparring partner, Samsung, with regards to chip production for its smartphones.  
The battle between the two has become increasingly savage and Apple appears to be looking for alternative component suppliers.

Citing sources close to Chinese-language Economic Daily News, CENS claimed that plans for TSMC to begin pilot production for Apple in the first half of 2013, with volume production to kick off in the second half of the year.