Thu, Aug 11, 2011 - Page 11 News List

TSMC’s revenues fall 3.4 percent

By Kevin Chen  /  Staff Reporter

Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday reported that consolidated revenues last month fell for a fourth consecutive month to NT$35.43 billion (US$1.22 billion) amid slowing demand.

Revenues last month dropped 3.4 percent from June and 4.8 percent from the same month last year, TSMC said in a statement.

Were sales contributions from its chip-design subsidiary Global Unichip Corp (創意電子) included, TSMC said revenues would be down a smaller 3 percent from June and 4.4 percent from a year ago.

“Beginning in July 2011, the revenues of Global Unichip Corp are no longer included in TSMC’s consolidated revenues. This reduced TSMC July revenues by NT$149 million, with a 0.4 percentage point impact when compared with June and year-ago revenues,” TSMC said.

The revenue drop last month was not unexpected, as the Hsinchu--based chipmaker told an investors’ conference on July 28 that it expected sales and profitability would continue to weaken in the third quarter as major customers reduce orders to digest inventory.

At the time, TSMC guided that third-quarter revenue could drop by between 5.9 percent and 7.7 percent to NT$102 billion and NT$104 billion in the current quarter, from last quarter’s NT$110.51 billion. It also trimmed capital spending to US$7.4 billion this year from its previous target of US$7.8 billion because of softening demand.

In the first seven months of the year, cumulative revenue totaled NT$251.32 billion, up 7.2 percent from the same period last year, company data showed.

Meanwhile, rival United Microelectronics Corp (UMC, 聯電) reported on Tuesday that its revenue last month fell 4.1 percent month-on-month and 18.6 percent year-on-year to NT$8.81 billion.

From January to last month, cumulative revenue amounted to NT$68.05 billion, down 3.3 percent from a year earlier, the world’s second-largest contract chipmaker said in a statement.

On Aug. 3, UMC said high inventory levels and slack end-demand would drive down its revenue by as much as 13 percent this quarter from last quarter’s NT$28.15 billion.

TSMC rose 3.95 percent to close at NT$65.8 yesterday, while UMC jumped 6.22 percent to NT$11.1. TSMC has declined 7.32 percent this year and UMC has plunged 35.89 percent, Taiwan Stock Exchange data showed.

ADDITIONAL REPORTING BY LISA WANG

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