Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s top contract chipmaker, yesterday posted record-high revenue of NT$55.4 billion (US$1.88 billion) last month, in line with the company’s forecast.
Revenue rose 0.53 percent from August’s NT$55.09 billion and third-quarter revenue grew 4.29 percent to a record level of NT$162.57 billion, falling within TSMC’s forecast of between NT$161 billion and NT$164 billion.
Weak PC demand pushed TSMC’s quarterly revenue to slightly below Credit Suisse’s estimate of NT$163.21 billion.
However, Credit Suisse analyst Randy Abrams yesterday said TSMC’s sales increase still reflected positive impacts from Apple’s new products, higher demand for game consoles, broad-based industrial applications and increasing smartphone sales in emerging markets.
Abrams expects TSMC’s revenue to slide about 10 percent sequentially this quarter to NT$146.89 billion due to customers’ inventory adjustment for smartphone chips.
He retains his "outperform" rating on TSMC with a target price at NT$116, a 10.48 percent gain from the stock’s closing price of NT$105 yesterday.
United Microelectronics Corp (UMC, 聯電), the world’s No.3 contract chipmaker, yesterday posted a second monthly decline in revenue for August.
Revenue fell 1.36 percent to NT$10.85 billion from NT$11 billion in August as UMC’s revenue in the last quarter rose 4.7 percent to NT$33.42 billion from the second quarter’s NT$31.91 billion.
The quarterly revenue slightly exceeded Abrams’ NT$32.91 billion forecast.
Abrams said this quarter would be weaker for UMC due to inventory correction, expecting the company to post a sequential decline of 11 percent in sales with factory utilization falling to about 80 percent from the mid-80s percent last quarter.
Abrams kept his "neutral" rating on UMC with a target price of NT$13.
Vanguard International Semiconductor Corp (世界先進), which makes driver integrated circuits for LCD panels, yesterday posted a 5.06 percent monthly decline in revenue to NT$1.78 billion for last month, from NT$1.88 billion in August.
In the last quarter, Vanguard revenue grew 4.38 percent to NT$5.59 billion from NT$5.36 billion in the third quarter.
The quarterly growth was better than a 3 percent to 4 percent sequential increase predicted by Vanguard in August.