Industry Expert Blogs

Xilinx announced their quarterly results a couple of days ago. Technically it is their Q2 2015. Sales were $604M and profitability was significantly higher than expected at $0.62/share. But that is not the most interesting thing about these calls. There is the Xilinx vs Altera story. And then there are tealeaves to be read about TSMC (Xilinx exclusively manufactures at TSMC).

To me, one of the most amazing numbers, having myself worked within a semiconductor company for years, is that gross margins were 71.9%. A record for the company. As a comparison point, that is way above Intel, never mind other semiconductor companies. That means that for a part that Xilinx sells for $10 they give less than $3 to TSMC. Of course they have other costs but out of $604M of sales they had operating income of $200M.

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