TSMC plans to list solar energy, LED assets in bourse

November 9, 2013 by  
Filed under Green Energy News

Taipei, Nov. 9 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chip maker, is planning to list its solar energy and LED assets in the stock market over the next few years, TSMC’s chairman said Saturday.

Morris Chang said that led by Rick Tsai, chairman and chief executive officer of TSMC Solar Ltd. and TSMC Solid State Lighting Ltd., the chip maker’s solar energy and LED businesses have become competitive in the world market in terms of technology and cost control.

Chang said he believes the two new businesses will continue to grow and expand their economies of scale next year.

He said the two new businesses are the aces of TSMC and that he hopes to list their assets in the stock market in the near future.

TSMC set up its solid state lighting business in 2009, and transferred the assets into a wholly owned subsidiary — TSMC Solid State Lighting — in August 2011.

In terms of the solar energy business the chip maker entered in 2009, TSMC Solar established a solar research and development center in Taichung in 2010 and launched TSMC Solar North America and TSMC Solar Europe GmbH that same year to cater to the North American and European markets.

In addition to TSMC Solar, TSMC owns a 20 percent stake in Taiwan-based crystalline silicon solar cell supplier Motech Industries Inc.

Speaking at TSMC’s annual sports day — a corporate ploy aimed at “raising the spirit of teamwork among its employees” — Chang said the company will give raises in April next year as scheduled.

Chang also said the company will not make any layoffs or force its employees to take unpaid leave.

He noted that the company’s bonuses for its employees in the second quarter were up more than 20 percent from a year earlier, and said employees will be given fat bonuses in the third quarter, as TSMC’s net profit and consolidated sales hit record highs on the back of solid demand for mobile communications devices.

In the third quarter, TSMC posted NT$51.95 billion (US$1.77 billion) in net profit, up 0.3 percent from the second quarter, with an earnings per share of NT$2.00, while consolidated sales rose to NT$162.58 billion, a 4.3 percent increase from a quarter earlier.

However, Chang said that as the global semiconductor business has entered the traditional fourth-quarter slow season, TSMC’s sales will be affected.

Chang said that judging from the pace of inventory adjustments, the slow season effects will last longer than expected.

According to TSMC’s guidance, the chip maker’s consolidated sales for the fourth quarter could fall 9.6-11.4 percent from the third quarter to range between NT$144 billion and NT$147 billion.

(By Jackson Chang and Frances Huang)

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