Wed, Jan 11, 2017 - Page 12 News List

Shrugging off slow season, TSMC sees record-high sales

Staff writer with CNA

Despite it being the slow season for the global chip industry, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, saw its sales hit a new high last quarter.

Market analysts attributed the surge to solid global demand for smartphone and graphics chips, which offset the seasonal downturn.

TSMC reported consolidated sales of NT$262.23 billion (US$8.21 billion) for the fourth quarter of last year, edging up 0.7 percent from the previous quarter and beating the company’s forecast of NT$255 billion to NT$258 billion.

Bolstered by the robust fourth-quarter showing, TSMC’s consolidated sales for the full year hit a record NT$947.94 billion, up 12.4 percent from a year earlier.

The figure also beat the company’s full-year growth forecast of 11 to 12 percent.

Last month, TSMC posted consolidated sales of NT$78.11 billion, its lowest monthly total since July last year, as customers scaled back orders to clear their inventories, analysts said.

Last month’s revenue represented a 16 percent drop month-on-month, but a 33.9 percent increase year-on-year.

TSMC, the most heavily weighted stock on the local market, closed unchanged at NT$184 in Taipei trading yesterday.

The chipmaker is to release more details on its fourth-quarter results and provide guidance for the first quarter at an investors’ conference tomorrow.

Since the first quarter is traditionally a slow season for the chip industry, analysts said that TSMC could see a singe-digit percentage fall in sales in the first quarter.

For the full year, TSMC would see record-high consolidated sales of more than NT$1 trillion, the analysts said.

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