Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted its first monthly sales decline in five months after the world’s biggest contract chipmaker said supply chain inventory has increased because of lower-than-expected sales of high-end smartphones and PCs.
Revenue fell 3.6 percent to NT$52.13 billion (US$1.74 billion) last month, from a record level of NT$54.03 billion in June. Compared with a year ago, revenue grew 7.3 percent from NT$48.57 billion.
TSMC said last month that its revenue would grow sequentially this quarter by between 3.28 percent and 5.2 percent to between NT$161 billion and NT$164 billion, from the NT$155.89 billion seen last quarter.
TSMC chairman Morris Chang (張忠謀) told investors last month that the rise in inventory was an early sign indicating that the final quarter of this year would be a down period. Inventory piled up by chip designers is expected to rise to 71 days at the end of this quarter, rather than the 68 days forecast three months ago, Chang said.
Local rival United Microelectronics Corp (UMC, 聯電) yesterday said its revenue expanded 7.43 percent to NT$11.56 billion last month from NT$10.76 billion in June, hitting an almost 10-year high. On an annual basis, the figure was 11.59 percent growth from NT$10.36 billion.
On Wednesday, UMC chief executive officer Yen Po-wen (顏博文) told investors that many of the company’s customers have cut their sales forecasts because of inventory concerns.
Demand from the communications segment, the biggest revenue source for UMC, will weaken this quarter, while demand from the PC and consumer segments will rise, Yen said. The revenue for this quarter will grow by between 3 and 4 percent from NT$31.91 billion last quarter, he said.
Meanwhile, Vanguard International Semiconductor Corp (世界先進), which makes driver ICs for LCD flat panels, said its revenue grew 4.3 percent to NT$1.93 billion last month from the NT$1.85 billion it posted in June. The company attributed the growth to an increase in wafer shipments.
On an annual basis, revenue surged 21.74 percent from NT$1.58 billion.