Major semiconductor companies last week reported a marked decline in consolidated revenue last month due to seasonal factors and disruption from the Lunar New Year holiday.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, saw revenue drop 22 percent to NT$60.89 billion (US$1.97 billion) from the previous month, the company said in a statement on Friday.
On a yearly basis, revenue fell 5.8 percent, TSMC said.
Analysts said the decline was mainly due to disruption at a wafer foundry in Tainan, where production in January was affected by defective materials from a supplier.
In the first two months of the year, TSMC’s cumulative sales fell 3.7 percent year-on-year to NT$144.38 billion.
The chipmaker’s sales are forecast to rebound from next month after production returns to normal, analysts said.
United Microelectronics Corp (UMC, 聯電), the world’s No. 3 contract chipmaker, reported that revenue last month was the lowest in three years, while Vanguard International Semiconductor Corp (世界先進), which makes controller chips used in LCD panels, saw monthly revenue fall to the lowest in the past year, because of fewer working days due to the holiday.
UMC’s consolidated revenue fell 11.3 percent month-on-month and 12.15 percent year-on-year to NT$10.46 billion, the lowest since March 2016.
In the first two months of the year, cumulative revenue decreased 11.27 percent to NT$22.26 billion, the company said on Friday.
Vanguard said that revenue totaled NT$2.13 billion last month, down 16.88 percent from a month earlier, but up 11.81 percent from a year earlier.
The company’s combined revenue from January and last month increased 16.23 percent to NT$4.69 billion, it said.
Vanguard vice president and chief financial officer Tseng Dong-liang (曾棟樑) attributed the monthly decline in revenue to a decrease in wafer shipments, according to a statement on Friday.
Meanwhile, handset chip designer MediaTek Inc (聯發科) reported that revenue last month fell 12.81 percent monthly to a 12-month low of NT$14.16 billion.
The decline reflected weakness in the smartphone market and the Lunar New Year holiday disruption, analysts said.
However, the company’s cumulative sales in the first two months rose 2.91 percent annually to NT$30.4 billion, a company regulatory filing on Friday showed.
ASE Technology Holding Co (ASE, 日月光投資控股), the world’s biggest chip packager and tester, posted a 20.6 percent monthly decline in consolidated sales to NT$26.24 billion last month.
The company could see sales this quarter decrease 20 percent from last quarter’s NT$114.03 billion due to seasonal factors, analysts said.
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