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Semiconductor sector surging into final hour



June 15, 2010 – Comments (5)

Shorts scrambling to cover as Sector gets bullish news from TSM - Taiwan Semi

2010 Chip sales to hit All time high


TSMC Chang more upbeat on 2010 chip growth

Nancy Cheng, Hsinchu; Jessie Shen, DIGITIMES [Tuesday 15 June 2010]

Morris Chang, chairman and CEO of Taiwan Semiconductor Manufacturing Company (TSMC), has again raised his forecast for chip market growth in 2010. Speaking at a shareholders meeting on June 15, Chang said the global semiconductor market is expected to grow 30% in 2010.

Chang previously predicted the overall chip market would rise 22% in 2010, which was already an upward revision from his earlier estimate of 18% growth.

Chang also upwardly revised its CAGR projection for the overall chip industry from 2011 to 2016. He now expects the global semiconductor market to grow with a CAGR of 7% over the next five years, higher than 4-6% that was earlier estimated.

Chang reiterated TSMC's consolidated revenues for 2010 will likely hit an all-time high, resetting the record of NT$333.16 billion (US$10.3 billion) in 2008. It also stands a chance of hitting record profits in 2010, Chang added.

Chang did not make changes to TSMC's capex plan for 2010. The budget remains at US$4.8 billion.

In addition, Chang cited localized sales and support as the main reason for TSMC has built a production plant in China, rather than cheap labor costs. More than 1,000 employees are stationed at its 8-inch plant located in the Shanghai Songjiang Industrial Zone, said Chang, adding that salaries for the workers will not be raised in the short-term.

Chang was quoted in previous reports saying the average wage for TSMC's staff at its Shanghai facility is 2,000 yuan (US$293) a month


5 Comments – Post Your Own

#1) On June 15, 2010 at 2:56 PM, IBDvalueinvestin (98.56) wrote:

On a tear are TER & MU

modest move up are KLIC, AMKR,  ISSI, CRUS, AMAT,NSM


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#2) On June 15, 2010 at 3:47 PM, IBDvalueinvestin (98.56) wrote:

DJIA just hit the highs of the day now up 203 points.

Shorts feeling the pain that longs felt for 6 straight weeks.

Just remember don't try to catch a falling knife it cuts both ways. 

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#3) On June 15, 2010 at 5:25 PM, jason2713 (< 20) wrote:

I'd be one of those shorts.

Closed out everything...100% cash right now.  I have no idea where this market is headed.   I'm completely lost.

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#4) On June 15, 2010 at 8:49 PM, simplemts (< 20) wrote:

"DJIA just hit the highs of the day now up 203 points.

Shorts feeling the pain that longs felt for 6 straight weeks."

 You flip flop so much I cannot imagine you actually make any money.  You buy on up days, sell when the trend is down.  You do the oppositte of what you should be doing based on all your blogs. 

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#5) On June 16, 2010 at 7:58 AM, lemoneater (57.13) wrote:

I have TSM long term. They have a generous dividend and they are almost as ubiquitous as a materials stock.

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