Powerchip cuts profit forecast

Powerchip Semiconductor Corp (力晶半導體) yesterday slashed its pretax profit forecast for the year almost nine-tenths, citing a slower-than-expected recovery in demand for semiconductors. Powerchip forecasts pretax profit of NT$578 million (US$17 million), cutting a March forecast NT$4.9 billion. The chipmaker cut its sales forecast 22 percent to NT$15.1 billion. A slower-than-expected global recovery will push chip prices below earlier forecasts, Powerchip spokesman Eric Tang (譚仲明) said in a statement.