TSMC is raising its capital equipment spend due to strong demand for advanced process nodes. Spending is being raised in 2009 to US$2.7 billion as demand for both 65nm and 40nm process nodes increases beyond previous expectations. Revenue for its 65nm offerings made up 31% of revenue in the quarter, up from 28% in the second quarter. 45/40nm technology increased to 4% of total revenue, up sharply from a recorded 1% in the previous quarter. The foundry reported third quarter revenue of NT$89.94 billion, a 21.2% increase in revenue compared to the previous quarter.
Overall, revenues from advanced technologies (0.13-micron and below) represented 67% of total wafer sales, two percentage points up from the prior quarter.
"For the fourth quarter, we expect the demand from computer related applications to grow strongly while communication related applications will take a pause after two consecutive quarters' strong momentum, and consumer applications will decline following their seasonal pattern," commented Lora Ho, VP and Chief Financial Officer of TSMC. "Due to stronger demand for 40-nanometer and 65-nanometer technologies, TSMC 2009 capital expenditure is further raised and is expected to be around US$2.7 billion."
Capital expenditure totalled US$971 million in 3Q09. TSMC noted that spending had reached US$1.36 billion to the end of the third quarter, indicating a significant spending spree was underway in the fourth quarter.
Total managed capacity is expected to reach 9,955K 8-inch equivalent wafers in 2009, representing an increase of 6.2% from 2008. 300mm fab capacity is expected to increase by 11% year-over-year, reaching 42% of total capacity.