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TSMC outstrips Intel, Samsung in logic chip output capacity.

Taipei, May 11, 2012 (CENS) -- Taiwan Semiconductor Manufacturing Co. (TSMC) outshone Intel Corp. and Samsung Electronics last year in output capacity for logic chips, according to the company's vice president for worldwide sales and marketing, Jason Chen.

Chen made the statement yesterday at a TSMC technology forum.

Y.P. Chin, TSMC Vice President for operation and product development, elaborated on the statement by citing data from Semiconductor Equipment and Materials International (SEMI), an international trade body representing semiconductor, LCD and solar industries. He said TSMC's capacity for logic chips was 1.5 times that of Intel and two times that of Samsung in 2011.

Chin added that TSMC is leading not only in logic chip capacity but also in defect density (D0) competition. He noted that the company's defect density ratio is below 0.06 per area unit on a 300mm wafer using 40nm process and its defect density ratio on the wafer using 28nm process is improving, with the goal to slash the ratio to 0.1 by the end of this year.

TSMC is reportedly the only silicon foundry providing 28nm process capacity and until last year it had total capacity of 13.22 million 200mm equivalent of wafers using various process technologies, up 17% from a year earlier. The company's output capacity will increase at a compound annul growth rate of 31% between 2009 and 2015, making it insurmountable in the line.

Jason Chen pointed out that TSMC depends on IC design houses for around 80% of its revenue and most of them are logic chip vendors. As logic chips mostly sit in mobile computing devices, robust demand for the consumer electronics products is windfall to TSMC. Chen estimated the revenue of the logic chips sector to increase 2-3% worldwide year on year this year, with the portion generated by design houses alone projected to rise 10%.

Chen pointed out that smartphones have outnumbered PCs in shipments since 2010. This year, shipments of smartphones will outpaced those of PCs by 50%. Tablet PCs will join smartphones to make mobile computing market brighter.

Chen noted that mobile computing devices have emerged as the primary tools for Internet access and more online functionalities will be crammed onto the platforms in the future. For instance, online payment will become a thriving function on smartphones by 2015.

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Title Annotation:Taiwan Semiconductor Manufacturing Company Ltd.
Publication:The Taiwan Economic News
Article Type:Statistical data
Date:May 11, 2012
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