Taiwan Semiconductor Manufacturing Company announced its Q1 2016 earnings, and revenues are down 18% from the same period a year ago. The chip vendor managed $6.29 billion in overall revenues, with $2 billion in net profit and an operating profit of 34%. A decline in demand for high-end mobile SoCs was attributed as the main reason for the downturn in revenues, although an increase in the entry- and mid-range segments has the vendor predicting a net gain of 6% for 2016.
Company president and co-CEO Mark Liu said:
Our 10-nanometer technology development is on track. We are currently in intensive yield learning mode in our technology development. Our 256-megabit SRAM is yielding well. We expect to complete process and product qualification and begin customer product tape-outs this quarter.
Our 7-nanometer technology development progress is on schedule as well. TSMC’s 7 nanometer technology development leverage our 10-nanometer development very effectively. At the same time, TSMC’s 7-nanometer offers a substantial density improvement, performance improvement and power reduction from 10-nanometer.
These two technologies, 10-nanometer and 7-nanometer, will cover a very wide range of use-cases, including application processors for smartphone, high-end networking, advanced graphics, field-programmable gate arrays, game consoles, wearables and other consumer products.
TSMC will kick off mass production on its 10nm FinFET node later this year, coinciding with Samsung and Intel’s plans. The vendor is looking to hit the 7nm manufacturing process by 2018, and move to 5nm by 2020. The vendor is also investing in a fabrication unit that will work on the 12nm manufacturing process.