Fri, Feb 15, 2008 - Page 12 News List

TSMC's sales last month beat seasonal downturn


Taiwan Semiconductor Manufac-turing Corp (TSMC, 台積電), the world's leading contract chipmaker, yesterday reported that sales last month bucked the seasonal downtrend and rose 3.6 percent from December thanks to continuing strong demand.

Sales last month also jumped 45 percent to NT$31.07 billion (US$980 million) from NT$21.39 billion a year ago.

Late last month, the Hsinchu-based chipmaker projected that first-quarter revenues would fall in the range of NT$87 billion to NT$89 billion, which would represent a 5 percent to 7 percent sequential drop in the traditionally slack first quarter.

The company said that robust chip demand for mobile phones and computers in the fourth quarter were expected to extend into this quarter, but demand for consumer electronic chips might lag behind.

Rival United Microelectronics Co (UMC, 聯電) saw sales last month edge down 0.26 percent year-on-year, or 2.93 percent month-on-month to NT$8.22 billion.

Advanced Semiconductor Engineering Inc (ASE, 日月光), the world's biggest chip packager, also posted a 7 percent monthly drop in sales last month.

To cope with an expected industry slowdown, TSMC said it planned to cut its capital spending by 30 percent to US$1.8 billion this year, from US$2.6 billion last year, to keep factory usage at a high level.

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