TSMC: No Killer Apps in Sight

By William Trent, CFA at Stock Market Beat

DigiTimes reports:
The semiconductor industry is unlikely to see in the next 5-10 years stunning killer applications that can spark dramatic growth, but stable growth will be enabled by applications evolved from existing products, according to Kenneth Kin, senior vice president of worldwide marketing and sales of Taiwan Semiconductor Manufacturing Company (TSMC).

Kin, speaking at TSMC’s Technology Forum yesterday, pointed out that the foundry sector was enjoying fast growth during the 1990s. But the turning point came in 2000 when the dot-com bubble burst, and as a result the worldwide semiconductor industry saw its production value fall 35% in 2001, he said.

However, since 2002 the semiconductor industry has seen continued growth each year, and this trend should continue through 2015, the TSMC executive indicated.

We found this amusing, because killer apps, almost by definition, are entirely unpredictable. If anyone knew what the next killer app would be, everyone would be working to develop it. Then, when somebody does come up with it it will seem completely obvious in hindsight.

For the record, we don’t see any killer apps on the horizon either. But we aren’t predicting there won’t be one.

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