Semiconductor Makers See Diverging September Sales Results
October 5, 2000 (TAIPEI) -- Taiwan's memory chipmakers are set to report widely varying sales performances in September, as the effects of the sluggish spot prices of DRAMs have been felt.
Memory chipmakers Winbond Electronics Corp., Mosel Vitelic Inc., and Promos Technologies Inc. posted September sales either unchanged or slightly down from August, while wafer foundry companies Taiwan Semiconductor Manufacturing Co., Ltd., United Microelectronics Corp. and Macronix International Corp. enjoyed consecutive all-time highs. With semiconductor demand expected to pick up before long, both memory chipmakers and wafer foundry companies hope to enjoy another sales peak in the fourth quarter.
TSMC and UMC are expected to report historical record highs in September of NT$16.5-17 billion and at least NT$10 billion, respectively. Not that this will necessarily affect their performance on the stock market. Despite its outstanding September result, TSMC closed below NT$100 per share in Tuesday's session, while UMC also ended lower at NT$62 per share. (NT$31.24 = US$1)
Wafer foundry companies are experiencing weaker momentum in the stock market than memory chipmakers these days, as burgeoning sales fail to offset the fact that shrinking demand has left them with idle capacity.
A wafer foundry manufacturer said that such pessimism was premature, noting that some companies have shifted the focus of their contract manufacturing onto the more profitable high-end products. Although some of their production lines are presently gathering dust, he said, this will be offset by higher profits from the lines which are still operating, and he expected their financial results to be much as originally predicted.
At the forefront of the chip-making industry, monthly sales by semiconductor makers failed to go up in September for the first time this year, due to the sharp fall in the 64Mb DRAM spot price. Market analysts predict that Winbond will not now be able to report its highest ever sales in September, but may still be able to hold its sales steady at NT$5.5 billion. Mosel's September sales are expected to be below August's, at less than NT$3 billion.
Meanwhile, the price of memory chips is widely expected to rebound shortly. The DRAM spot price should bottom out in a fortnight, and local distributors should then begin to rebuild their DRAM positions. If so, chipmakers should enjoy mounting sales once again in October.
Related story: DRAM Microchip Makers Expect High Q4 Profits
(Commercial Times, Taiwan) |
