TSMC Swamped With Chip Orders

As companies get set to launch a raft of new tablets, ultrabooks and 4G smartphones to retailers in the second quarter of this year, chip manufacturer Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is experiencing a major boom, Digitimes reported on Wednesday.

TSMC has received enough orders from its major clients — which reportedly include AMD (NYSE:AMD), Broadcom (NASDAQ:BRCM), MediaTek, MStar Semiconductor, Nvidia (NASDAQ:NVDA) and Qualcomm (NASDAQ:QCOM) — to almost completely book the foundry’s production capacity for advanced sub-40nm manufacturing processes, said Digitimes, citing sources in the industry.

Texas Instrument (NYSE:TI), Freescale Semiconductor (NYSE:FSL), STMicroelectronics (NYSE:STM) and Infineon Technologies and others have also stepped up their orders to TSMC in order to to meet increasing demand, the report said. In addition, as smartphone, PC and consumer electronics industries appear to be rebuilding inventory, the sources reportedly think the semiconductor industry will bottom out in the first quarter and start to grow through the beginning of the fourth quarter.

According to a report in January by StreetInsider.com, Needham has advised that chip manufacturers’ equipment requirements will boost Lam Research (NASDAQ:LRCX), and KLA-Tencor (NASDAQ:KLAC) has said the need for advanced mobile chips is bolstering foundry equipment orders.

Here’s how these stocks are trading now:

Telecom Italia SpA (NYSE:TI): TI shares recently traded at $10.49, down $0.04, or 0.38%. They have traded in a 52-week range of $9.74 to $16.04. Volume today was 549,099 shares versus a 3-month average volume of 409,097 shares. The company’s trailing P/E is 149.36, while trailing earnings are $0.07 per share.

Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM): TSM shares recently traded at $14.35, up $0.17, or 1.2%. They have traded in a 52-week range of $10.75 to $14.43. Volume today was 10,598,500 shares versus a 3-month average volume of 10,766,300 shares. The company’s trailing P/E is 15.26, while trailing earnings are $0.94 per share.

Lam Research Corporation (NASDAQ:LRCX): LRCX shares recently traded at $41.75, down $0.16, or 0.38%. They have traded in a 52-week range of $34.81 to $59.10. Volume today was 1,929,765 shares versus a 3-month average volume of 3,835,930 shares. The company’s trailing P/E is 12.45, while trailing earnings are $3.35 per share.

KLA-Tencor Corporation (NASDAQ:KLAC): KLAC shares recently traded at $49.40, down $0.2, or 0.4%. They have traded in a 52-week range of $33.20 to $53.05. Volume today was 2,029,392 shares versus a 3-month average volume of 2,941,030 shares. The company’s trailing P/E is 11.10, while trailing earnings are $4.44 per share.

Advanced Micro Devices, Inc. (NYSE:AMD): AMD shares recently traded at $7.34, up $0.02, or 0.27%. They have traded in a 52-week range of $4.31 to $9.58. Volume today was 13,716,322 shares versus a 3-month average volume of 14,743,700 shares. The company’s trailing P/E is 11.01, while trailing earnings are $0.67 per share.

Broadcom Corp. (NASDAQ:BRCM): BRCM shares recently traded at $37.10, up $0.35, or 0.95%. They have traded in a 52-week range of $27.59 to $43.12. Volume today was 8,350,411 shares versus a 3-month average volume of 10,159,700 shares. The company’s trailing P/E is 22.44, while trailing earnings are $1.65 per share.

NVIDIA Corporation (NASDAQ:NVDA): NVDA shares recently traded at $16.22, down $0.02, or 0.12%. They have traded in a 52-week range of $11.47 to $26.01. Volume today was 23,627,152 shares versus a 3-month average volume of 13,965,100 shares. The company’s trailing P/E is 15.53, while trailing earnings are $1.04 per share.

QUALCOMM Incorporated (NASDAQ:QCOM): QCOM shares recently traded at $61.60, down $0.11, or 0.18%. They have traded in a 52-week range of $45.98 to $61.99. Volume today was 9,648,567 shares versus a 3-month average volume of 13,193,700 shares. The company’s trailing P/E is 23.51, while trailing earnings are $2.62 per share.

Freescale Semiconductor Holdings I, Ltd. (NYSE:FSL): FSL shares recently traded at $17.22, up $0.29, or 1.71%. They have traded in a 52-week range of $9.43 to $20.97. Volume today was 791,847 shares versus a 3-month average volume of 813,616 shares. The company’s trailing earnings are $-1.82 per share.

STMicroelectronics NV (NYSE:STM): STM shares recently traded at $6.83, up $0.08, or 1.19%. They have traded in a 52-week range of $5.34 to $13.53. Volume today was 1,391,059 shares versus a 3-month average volume of 1,689,310 shares. The company’s trailing P/E is 9.46, while trailing earnings are $0.72 per share.

To contact the reporter on this story: Gina Smith at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com