TSMC raises 1999 outlook, raises capital spending plans
A service of Semiconductor Business News, CMP Media Inc.
Story posted 4 p.m. EST/1 p.m., PST, 3/9/99
By Sandy Chen
HSINCHU, Taiwan--Following a sudden uptick in the silicon foundry business, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) here has raised its revenue and capital expenditure projections for 1999.
The world's biggest pure-play foundry company now expects its 1999 revenues to reach $1.8 billion, a 14% increase over a previous forecast, according Morris Chang, chairman of TSMC. The company did not forecast earnings for 1999. TSMC reported a profit of $477.9 million on sales of $1.56 billion in 1998.
Chang was also bullish about the company's performance in the second quarter of 1999 and beyond. "Revenue for the second quarter of 1999 will be much better than the first quarter,'' he said.
TSMC earlier this year projected that its capital expenditures would hit $550 million in 1999, down from $1 billion in 1998. Now, TSMC has raised its capital expenditure projections to $803 million for 1999.
Plans to increased capital spending follows the announcement of a major foundry deal between TSMC and Motorola Inc., which in the process of moving about half of its chip processing to outside fabs (see story in March 1 issue of SBN).
The outlook for 1999 has "changed since we made our original forecasts, so we are in the process of raising our capital expenditures,'' said Magnus Ryde, president of TSMC's U.S. subsidiary, based in San Jose.
|
