Taiwan Semiconductor Manufacturing Company (TSMC) has reiterated its target for a 10% compound annual growth rate (CAGR) for EPS in 2011-2015, with a 20% ROE (return on equity).

"In fact, I see now even more bullish about achieving that goal in the next five years than I did a year ago, when the formulated a goal," said TSMC chairman and CEO Morris Chang. "In some of those years, we'll probably grow less but in some of those years, we will grow more than 10%. Overall, I plan to achieve it."

For 2011, TSMC's target of 20% growth in revenues remains unchanged, Chang noted.

The Japan earthquake may have some effect on demand in the current second quarter, as some of TSMC's clients and their customers see delays in their production, Chang indicated. But that effect is rather modest, and the affected companies could feel the impact only in the second quarter, Chang said.

The event has had no direct impact on TSMC's operations, Chang added.

However, the global economic outlook is "softer" than it was three or four months ago, Chang pointed out. A few weeks ago, TSMC revised downward its growth forecast for the global non-memory semiconductor market this year to 4%, Chang mentioned.

In addition, Chang noted that smartphones and tablet PCs will become the standard devices consumers use over the forthcoming decade, just like PCs in the 80s and 90s and cell phones in the 2000s. TSMC will certainly benefit from this emerging trend, with its cutting-edge technology and advanced process capacity, Chang said.

Chang made the remarks at TSMC's investors meeting on April 28. The company's financial results for the first quarter of 2011 came in line with its guidance.

Morris Chang
Photo: Terry Ku, Digitimes, April 2011