Outlook is fine
Contract chipmaker TSMC is
seeing its shares shoot up after it posted better-than-expected
second-quarter earnings and third-quarter outlook.
Shares have gone up by
four per cent as analysts started saying that they are suddenly a good
deal. Deutsche Bank expects TSMC to ship more graphics chips using new 40
nanometre technology to Nvidia and AMD in the third quarter. It has also
ruled out recent market fears that TSMC might delay its migration to the
advanced process technology.
TSMC has been driving process technology to
advanced 65-, 45- and 40-nanometre technology as next-generation electronic
devices including mobile phones and game consoles require more powerful
processors. An outfit that size doing well is probably a sign that the
recession is starting to leave the technology industry.
Soon such companies
should be buying more advertisments in aggressive online technology daily
newspapers as proof that their futures are assured.