Finally Good News TSMC Says 1st-Qtr Plant Use Will Exceed Own Forecast (Update1)
By Iain Pocock
quote.bloomberg.com
Taipei, March 13 (Bloomberg) -- Taiwan Semiconductor Manufacturing Co., the world's biggest maker of chips for other companies, said its factory use for the first quarter will exceed its expectation of 60 percent after orders increased.
``Business momentum is continuing to pick up, and each month we are seeing more demand,'' Harvey Chang, TSMC's chief financial officer, said at an Asia-Pacific technology conference in Taipei. The rise in orders will extend to the second quarter, Chang said. He didn't provide details.
TSMC's outlook on improved factory use is a positive sign for the chip industry, said some fund managers. TSMC Chairman Morris Chang said in February that he expects sales this year to increase 30 percent from 2001, the worst year for the chip industry, when worldwide sales fell by a third to $139 billion.
``It's an indication that things are much better than people originally expected,'' said David Chapman, who counts shares in TSMC's biggest rival, United Microelectronics Corp., among the $700 million he helps manage for Towry Law Asia Ltd. Chapman said he's not planning to take a stake in TSMC.
TSMC may also boost spending this year from the $1.65 billion originally targeted in January.
``We're looking very carefully at capital expenditure now because of changing demand,'' Harvey Chang said. |
