Fortunately the Q4 numbers were somewhat more conventional although revenues and margins were more towards the bottom of the guidance range, they were at least in the range. The company had already guided that Q4 would be negatively impacted by semiconductor supply chain's inventory management.
From an application perspective communication (aka smartphones etc) is a small majority of revenues. Q4 had already been guided as weak - over full year 2013 all areas apart from those to computer applications showed revenue growth. Consumer led the way thanks gaming consoles.
Guidance for Q1 14 implies versus Q4 13 a small uptick in operating and gross profit margins and a 5% fall in sequential revenues.
we are confident that this planned 16-FinFET mobile product, which is going to tape out to us, will be better than Samsung's 14-nanometer and better than Intel's 14 SoC'. (for more on Intel and TSMC, take a look at this link I wrote up post a big Intel investor event last month).
The future continues to look bright for TSMC as a world leader who is enhancing barriers-to-entry and poised to benefit from the continued growth of smartphones and other technology applications. I still believe they can afford a special dividend.
Last time I reviewed the company's quarterly report I concluded that 'valuation remains fine at x11 EV/ebit with an aforementioned 2.7% yield and net cash on the balance sheet. I am still targeting US$20 (for the US quote)'.
That still feels appropriate today.