TSMC chairman: Semiconductor industry growth to beat overall industry
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Hans Wu, Taipei; Esther Lam, DIGITIMES [Wednesday 12 March 2008]
Despite foreseeing further room for appreciation of the New Taiwan (NT) dollar against the US dollar and a further rise in the price of crude oil, Taiwan Semiconductor Manufacturing Company (TSMC) chairman Morris Chang reiterated his projection of seeing growth in the semiconductor industry beat that of the overall industry in 2008.
A surge in the NT dollar, of course, is unfavorable for exporters, but industry players should take long-term trends into account when judging the impact of currency exchange rates, Chang said. These trends include economic development and a change in the capital market and currency correlation between countries.
He noted that the US dollar has kept depreciating over the past two to three years, but that the NT dollar only started to appreciate recently. Over the past five years, the US dollar has depreciated against 26 currencies by a weighted average of 20%, but the impact on the NT dollar is relatively less, he added.
Although the economy in Taiwan might not be that good in 2008, it is still strong in comparison with the US, Chang said. He noted that the NT dollar should keep appreciating against the US dollar.
Powerchip Semiconductor Corporation (PSC) chairman Frank Huang echoed Chang's projection for a stronger NT dollar, forecasting that the NT dollar will appreciate more after Taiwan's presidential election on March 22, according to a Chinese-language Economic Daily News (EDN) report.
Huang was also cited by the paper as saying that PSC will take a more favorable stance over equipment procurement when the NT dollar appreciates, though sales will be dampened by exchange losses.
Regarding the outlook for the semiconductor industry, Chang said inventory currently is okay. Despite the fact that the electronics industry is exposed to negatives such as a weakening economy and a weakening US dollar, he reiterated his confidence for a positive outlook in the long run. Of which, the semiconductor industry should continue to enjoy a 5% growth this year, he projected.
Chang spoke at a March 12 groundbreaking ceremony for TSMC's upcoming R&D 12-inch fabs in Hsinchu, Taiwan. |
