TSMC, the world's largest contract microchip maker, said February sales dropped 6.4 percent year-on-year to a 21-month low, slogging through a chip sector downturn that is expected to end in March. Taiwan Semiconductor Manufacturing Co (TSMC) said on Wednesday February sales fell to T$17.2 billion (US $558 million) from T$18.385 billion in the same month last year, and a 17.5 percent drop from January's surprisingly strong T$20.84 billion.
TSMC's revenues began showing month-on-month declines in the second half of last year as clients sold off unwanted inventory instead of ordering new chips, with consumer demand weaker than expected.
Aside from weakness in the sector, sales in February were hit by fewer working days and a week of holidays for Lunar New Year.
However, TSMC has said most customers would be finished with inventory reduction in the January-March quarter of 2005, and growth would resume in the second quarter.
Comments
Comments are closed.