Fri, Sep 09, 2005 - Page 11 News List

TSMC sales rise on the back of stronger demand

AFP AND BLOOMBERG , TAIPEI

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world's largest made-to-order chipmaker, said yesterday last month's sales rose 11.2 percent month-on-month to NT$23.18 billion (US$709 million) on the back of stronger demand.

Sales were down 1.0 percent from a year ago, the company said. TSMC vice president and chief financial officer Lora Ho (何麗梅) said the sequential growth reflected increased wafer shipments on the back of a sustained recovery in customer demand.

"Thanks to a better-than-expected recovery in customer demand, as well as a more favorable exchange rate, we have full confidence that we shall meet our third-quarter guidance," she said.

Sales in the eight months to last month fell to NT$158.20 billion from NT$168.94 billion.

TSMC said wafer shipments in the third quarter would increase by 14-16 percent from the second quarter, with the gross profit margin rising to 41-43 percent from 39.70 percent. The company also said average selling prices in the third quarter will drop 3 percent to 5 percent from the second quarter. Still, TSMC said the chip industry is expected to grow 4 percent to 5 percent this year, reversing its earlier forecast that growth will be flat.

"TSMC's sales should continue to climb in coming months" as demand rises for chips used in mobile phones and computers, Tom Lu, who manages the equivalent of US$49 million of assets for Uni-President Assets Management Corp said. "As an industry leader, TSMC's recovery is faster than rivals."

Rival United Microelectronic Corp (UMC, 聯電) on Wednesday said August sales rose to NT$8.01 billion from NT$7.07 billion in July.

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