http://www.freemalaysiatoday.com/category/nation/2016/06/16/businessman-shot-dead-near-toll-plaza-in-shah-alam/

TSMC Dims Outlook as Competition Heats Up, Smartphone Demand Cools
By ARIES POON
Updated April 16, 2015 6:45 a.m. ET
TAIPEI— Taiwan Semiconductor Manufacturing Co. on Thursday projected lower revenue for the current quarter, citing escalating competition, tapering smartphone demand from emerging markets and a strengthening Taiwan dollar.

For the second quarter ending June 30, the iPhone chip maker expects revenue of between 204 billion New Taiwan dollars (US$6.52 billion) and NT$207 billion. That would be down 6.7% to 8.0% from the previous quarter, but 11% to 13% higher than a year ago.

Sales at TSMC are seen as a barometer of global technology demand since the company is the world’s largest maker of non-memory microprocessors based on others’ designs.

Market-research firm IDC says global smartphone shipment growth is set to slow to 12% this year, from 26% growth in 2014, as the market matures and becomes more crowded. Weakness in the euro and emerging-market currencies is also hurting smartphone demand in some parts of the world.

Adding to TSMC’s woes, Qualcomm Inc., one of its major customers, lost a massive contract to supply its new Snapdragon 810 processors to Samsung Electronics Co. Rising supply of cheaper Chinese-made chips is also putting pressure on incumbent players.

TSMC co-Chief Executive Mark Liu said revenue generated from contract chip manufacturers world-wide is likely to grow around 10% this year, down from the company’s prior estimate of 12% growth. The Taiwanese chip maker maintained that its own revenue growth would still be “several percentage points” above the industry average.

“Some mobile customers cut back their delivery schedule because demand didn’t come as they had anticipated,” Mr. Liu told an investor conference in Taipei.

“But we think [these customers’] inventory adjustment will be complete by the end of the second quarter. The end market of smartphones will still have healthy growth this year,” he added.

TSMC’s lower outlook came after the company reported its second-most profitable quarter. Net profit in the first quarter jumped 65% to NT$78.99 billion, while revenue rose 50% to NT$222.03 billion, meeting the company’s target.

Last year, TSMC broke Samsung’s monopoly and became the primary supplier of chips for iPhones. Apple’s massive orders pushed TSMC’s revenue and earnings to record highs in 2014.

However, TSMC is heading into a slower year, as it expects to lose some orders to Samsung, which is months ahead in migrating to the next-generation 14-nanometer chip process technology and putting TSMC’s contract with Apple at risk.

TSMC Chief Financial Officer Lora Ho said the company is reducing capital spending for this year by US$1 billion to a range of US$10.5 billion to US$11 billion. She said it was because the chip maker is speeding up its conversion of equipment to more advanced process technology, resulting in less investment on new machines.