Analysts Turn Negative on Outlook for TSMC

Alan Patterson, EETimes
1/16/2015 03:30 PM EST

TAIPEI — Analysts switched to a more negative outlook for Taiwan Semiconductor Manufacturing Co. (TSMC) after the world’s largest contract chipmaker announced a record quarterly profit for the end of 2014 that may mark the start of a downturn for the company during 2015.

TSMC yesterday said net income soared 79 percent from a year earlier to NT$79.99 billion (US$2.51 billion), a new quarterly record. The company also reported record full-year earnings, surging 40 percent to NT$263.9 billion.

“There is no doubt TSMC is continuing to execute well, which combined with better than expected iPhone 6 demand has led to stellar quarterly earnings since the second quarter of 2014,” said Susquehanna Financial Group analyst Mehdi Hosseini in a January 15 report. “However, several material risk factors on the horizon … will ultimately lead to lower earnings and thus disappointment.”

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