TSMC bucks seasonal trend, sales rise in Jan from Dec
Monday February 9, 4:46 am ET
By Michael Kramer
(Adds analyst comment)
TAIPEI, Feb 9 (Reuters) - TSMC (Taiwan:2330.TW - News; NYSE:TSM - News), the world's largest contract microchip maker, posted solid January sales on Monday, bucking seasonal weakness as customers re-stocked their inventories after strong holiday sales of electronics.
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With a recovery in the semiconductor sector in full swing after a record revenue downturn in 2001, analysts said the main concern for Taiwan Semiconductor Manufacturing Co (TSMC) now was insufficient production capacity.
Some clients had seen orders booked in the fourth quarter delayed to the January-March period -- historically the weakest of the year as buying fades after the year-end shopping season.
The inventories of mobile phone chip customers, such as Texas Instruments (NYSE:TXN - News) and Qualcomm Inc (NasdaqNM:QCOM - News), had dipped below safety margins, analysts said.
"There is not enough supply, so there is no seasonality," said Rick Hsu, an analyst at Nomura Securities.
TSMC's sales reached T$19.16 billion (US$577 million) in January, up 46 percent from a year ago and up one percent from December. Sales usually fall five to 10 percent in January from December. TSMC also said sales would slip in February due to fewer working days.
The company, nearly one-fifth owned by the Netherlands' Philips Electronics NV (Amsterdam:PHG.AS - News), announced sales after the stock market closed in Taiwan.
TSMC's share rose 3.17 percent to T$65.00, beating a 1.73 percent rise in the benchmark TAIEX (Taiwan:^TWII - News) index as it tracked Friday's surge in U.S. semiconductor stocks.
But while the U.S. Philadelphia semiconductor index (Philadelphia:^SOXX - News) has gained 18.1 percent since the beginning of the fourth quarter, TSMC shares have dipped 2.25 percent.
"There is really no new catalyst for a possible upside surprise in the share price," now that TSMC's forecasts for capacity expansion have been digested by the market, Hsu said.
Last month, TSMC posted quarterly earnings that vaulted six fold back to boom-time levels, powered by a rapid growth in chips used in communications devices and consumer electronics.
The company said it planned some US$2 billion in capital expenditure this year, up from US$1.2 billion last year as its capacity trailed customer demand.
TSMC had forecast shipments in the first quarter to grow one to five percent from the fourth quarter, after earning record high revenues in the fourth quarter. Average selling prices were expected to fall by under five percent, it said. (US$1 = T$33.2) |
