Record quarterly profit for TSMC
Taiwan Semiconductor Manufacturing Company (TSMC) has posted a record quarterly profit boosted by strong wafer shipments. The chip manufacturer said net profit for its second quarter rose 65% year on year to $1.26billion.
The company has now raised its 2010 capital spending forecast from $4.8bn to $5.9bn to boost capacity and widen its technology gap with smaller rivals.
TSMC said its third quarter gross profit margin should be up to 50%, compared with the 49.5% in the previous three months. It expects an operating profit margin of approximately 38%, versus the second quarter's 38.6% driven by demand for chips used in PCs and communications devices.
Sales of microchips made by 65nm process technology accounted for 27% of TSMC's total sales in the second quarter, while 16% of its sales were from more advanced 40nm technology.
