Powerchip posts Q2 loss

Powerchip Semiconductor Corp (力晶半導體) posted a loss for the second-quarter and slashed its full-year forecast, as a slump in computer demand eroded semiconductor prices. Powerchip said its loss narrowed to NT$370.5 million (US$11 million) from NT$1.26 billion a year earlier, as it etched higher numbers of chips on its silicon wafers. Sales fell 4 percent to NT$3.2 billion. The company cut its profit forecast for this year by fourth-fifths, to NT$1.1 billion, after five straight quarters of declining computer shipments pushed the price of memory chips below production costs. Second-quarter sales fell 15 percent from the first quarter after average chip prices slid three-tenths and an earthquake in March slowed production, the company said in a statement.