TSM (TSM, quote) is a bellwether $97Bn behemoth that can tell you what the appetite is for their nano chips in the handset business, both high end smart phones and lower end hardware.TSM reported 4Q that beat and guided 1Q 14 ahead of street. These results coupled with recent analysis today signal the slowdown fear in the smartphone space may be overdone.
The company has raised expectations for overall 2014 profitability (+10%) from the sluggish flat growth that was alluded to in recent announcements. Today TSM indicated they see total mobile revenue to increase in 2014 to $11bn from $8Bn in '13.
At the analyst day they said they see 2014 mobile revenue growth of 35% and that the inventory glut has been worn down. A strong multi-quarter rebound bodes well for peripheral players in the handset world. Mobile silicon demand is guided +200bps mostly on the back of Apple (AAPL, quote) on the high end and from migration into low end smart phones