TSMC's Q4 Profit will double
last year's, according to analysts
TAIPEI -- Taiwan Semiconductor Manufacturing Co., world's silicon foundry, is likely to report that its fourth-quarter profit will be more than double that of the same quarter a year ago, analysts predict.
On Feb. 6, TSMC is expected to report a profit of NT$21.9 billion ($676 million), or NT$1.87 a share, more than doubling the NT$8.3 billion, or NT$1.08 a share recorded in the year-ago period, according to a forecast of seven analysts surveyed by Bloomberg.
"At the earliest, it will be the second quarter before the electronics sector works through an inventory correction,"' said Daniel Heyler, analyst at Merrill Lynch Taiwan Ltd. He expects TSMC's earnings per share in first quarter 2001 to be NT$1.34, down 26% from his NT$1.82 fourth quarter 2000 forecast.
Many of TSMC's largest customers, including Altera and Motorola, have recently canceled orders as their sales failed to meet expectations. Analysts said TSMC faces a drop in earnings in first quarter 2001 because customers need to reduce inventories.
Last year, it was a different story. Chip demand and the prices for products going to the computer, telecommunication, and consumer electronics markets soared. TSMC's chip subcontracting business grew more rapidly than the rest of the semiconductor industry as companies such as Motorola farmed out production to cut costs.
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