Top contract chip maker TSMC said first-quarter sales fell by 55 percent on weaker chip demand from a year ago, but the result beat its own forecast amid recent rush orders related to Chinas stimulus package. Analysts say TSMC and its cross-town rival, UMC, are among major beneficiaries of Chinas recent move to boost spending on PCs, mobile phones and televisions in rural areas, a trend that could continue into the coming months.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) had unconsolidated sales of T$13.62 billion ($403 million) in March, down 49 percent from a year ago, but the drop eased from the previous three months. The fall was similar to UMCs 47 percent drop in March sales.
On a consolidated basis, TSMCs sales amounted to T$39.50 billion in the January-March period, down 55 percent from a year ago, the company said in a statement on Friday, without giving an explanation. First-quarter sales were down 39 percent from the fourth quarter, according to Reuters calculations. TSMCs first-quarter sales were above a revised forecast in early March of between T$36 billion and T$38 billion.
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