TSMC Expects Flat Year for Foundry

Alan Patterson, EETimes
1/13/2017 00:01 AM EST

TAIPEI — Taiwan Semiconductor Manufacturing Co. expects 2017 to be a flat year for the foundry business as momentum in the chip business stalls.

During this year, smartphones, the key driver of semiconductor demand will have revenue growth reaching about 6 percent, according to TSMC, which makes the A10 processor for the Apple iPhone and SoCs for a host of other handsets. That outlook shows some upside compared with an IDC forecast of 3.1 percent growth for 2016, following double-digit gains during the previous two years.

TSMC said it expects low-end smartphones to lead growth with gains reaching 8 percent, while the high-end segment including Apple’s iPhone will expand by 3 percent this year. Even so, TSMC said that silicon content in smartphones will increase in the high single digits.

“We’re running into a little air pocket here,” said TSMC Chairman Morris Chang at a Taipei event today to announce the company’s results during the fourth quarter of 2016.

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