TSMC consolidation foundry core positions continue to expand the site

Recently, TSMC, UMC, SMIC three chip manufacturing companies have announced the 2005 second quarter results, three companies vary, but each one has its own merits. TSMC's position seems to be more stable, but the United States, SMIC adopted different strategies to expand their turf. Who will win in the fierce market competition in the future? Let's wait and see.

Different results

As a leading foundry industry, TSMC continue to maintain excellent performance. In the industry downturn in the second quarter, TSMC's sales revenue of 58 billion 520 million yuan (NT $1 billion 900 million), up 5.1% over the previous quarter, down 9.8% compared with the same period last year; the quarter gross profit of NT $23 billion 210 million yuan, compared with the previous quarter rose 7% over the same period last year fell 18% this quarter gross; the interest rate of 39.7%; deducting operating expenses, operating profit of NT $17 billion 790 million yuan, up 11% over the first quarter, a decrease of 20% over last year. TSMC second quarter net profit of NT $18 billion 370 million, 9% higher than the previous quarter, down 22% compared with the same period last year; compared with the previous quarter, the company's second quarter consolidated average selling price (ASP) decreased by 5.4%; the second quarter capacity utilization rate was 85%, the quarter was 78%, 106% for the same period last year. The quarterly earnings per share (EPS) of approximately $0.74 nt.

Among the UMC foundry industry second, second quarter sales revenue of 19 billion 443 million yuan (NT $615 million), compared with the previous quarter of 4.2%, compared with the same period last year fell 33.4%; the quarter gross profit of NT $212 million yuan, compared with the previous quarter fell 93.1%, compared with the same period last year fell 97.9%; single quarter gross margin of 1.1%, slightly better than previously expected; deducting operating expenses, operating loss of NT $3 billion 339 million, while the first quarter profit of NT $302 million over the same period last year, profit of NT $7 billion 592 million. Because other business income up to 3 billion 638 million yuan NT, UMC second quarter net profit of NT $299 million yuan, compared with the previous quarter fell 80.3%, compared with the same period last year fell 97.6%; compared with the previous quarter, the company's second quarter consolidated average selling price decreased by 9%; the second quarter production capacity utilization rate of 65%, last quarter 63%. EPS in the quarter was about 0.02 yuan nt.

As a foundry industry rising star SMIC, second quarter sales revenue of $279 million, while the previous quarter was $249 million, an increase of $12.3%. The company in the second quarter of this year, the monthly production capacity increased to the equivalent of 139 thousand inches of chip, capacity utilization of 87% in the first quarter was $85%. Due to weak DRAM prices down and the entire industry, the second quarter of this year comprehensive average price by the first quarter of this year, $829 and $1034 in the second quarter of last year fell to $807, gross margin of 6.1% from the first quarter of this year to the second quarter of 2.3%. Second quarter loss of $40 million 400 thousand in the first quarter net loss of $30 million in the second quarter losses continue to expand.

Although the second quarter continued losses, SMIC's performance in the second quarter, there is no lack of merit: the percentage of sales of European customers grew fastest, up from the first quarter of 24.7% to $26.9%. The second quarter of 0.18 micron and below technical logic chip sales revenue accounted for the percentage of logic chip sales rose to $76.8% in the first quarter, compared with the same period last year was $67.8%. 0.13 micron logic chip logic chip sales as a percentage of sales of 5.4% from the first quarter of this year rose to 12.6% in the second quarter of this year, and 0.35 micron logic chip sales percentage logic chip sales from the first quarter of this year fell to 25.5% 16.1%.

Each has its own merits

Because of the fierce competition, the second quarter only TSMC obtained business profits, UMC, SMIC is operating loss, seems to be the industry leader position TSMC is more stable, but after careful analysis, UMC, SMIC choose different products, adopt different strategies to expand their territory.

90 nanometer products become a highlight of the united. In the second quarter, the Union's sales of $90 nanometer products reached NT $1 billion 700 million ($56 million), 90 nanometer product sales accounted for the company's total sales of $9%. According to Chang, vice chairman of the joint Peter, said the United States to 21 users to provide its 90 nanometer technology services, including Xilinx and TI. United CEO Hu Guoqiang pointed out that since the United States has 60 users of the product is being developed based on the development of 90 nanometer technology, the United States and nearly all of the 90 nanometer technology production operations. As the market demand for 90 nanometer technology services has increased significantly, the United States will benefit from. Electricity is expected in the third quarter, the company's products will be 18 micron and below the sales revenue of $60%, of which the total revenue of the company will be accounted for 90 nanometer product sales of $15%.

SMIC in the second quarter of the same concern in the 90 nanometer products, its first order of the order of 90 nanometer products are being planned for quality testing. In addition, the company is 12 inch chip factory research and development of the process of 65 nm. At the same time, the company announced two projects, the first is SMIC has established partnerships with SAIFUN semiconductor, SMIC is authorized to use its SAIFUN NROM technology for the production of flash memory products. SMIC's new flash strategy will meet the growing demand for consumer electronics and communications electronics. SMIC second projects in Shanghai recycling scrap chips, the production of solar panels, the company will start the installation of equipment in the third quarter.

Compared to the other two, is located in the mainland of China is another core advantage. Second quarter SMIC NEW