UPDATE 2-TSMC Q1 sales up versus year ago, seen improving
Thu Apr 10, 2008 4:47am EDT
Last year it was inventories - now it's recession.
But how are we going to get rid of pussy whipped day traders and an analyst community that feeds them?
(Recasts with comments and details)
By Baker Li
TAIPEI, April 10 (Reuters) - Top contract chip maker TSMC (2330.TW: Quote, Profile, Research) rounded out the quarter with a 21 percent rise in March sales versus a year ago, when the Taiwan firm's clients cleared out excess inventories in a downcycle.
First-quarter sales grew by a third from a year ago but declined from the fourth quarter and fell slightly below market expectations as weakness in the global economy hit sales of chips that go with PCs and other consumer gadgets.
After a bright fourth quarter, analysts say a stronger Taiwan dollar also hurt first-quarter sales and profit margins of TSMC (TSM.N: Quote, Profile, Research) and rival UMC (2303.TW: Quote, Profile, Research) (UMC.N: Quote, Profile, Research), which sell the bulk of their chips to U.S. clients, including Texas Instruments (TXN.N: Quote, Profile, Research).
But the technology industry, including the chip foundry market, is likely to regain momentum from the current quarter, said Kevin Yang, president of Taiwan's Paradigm Asset Management Co Ltd, which overseas T$30 billion in client assets.
"The rising Taiwan dollar was a factor in the first quarter but the impact should be easing gradually and companies are also hedging," Yang said.
"Some inventories of chips and computers have been digested recently, so it is quite possible to see a rebound in the PC and mobile phone markets soon."
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) posted unconsolidated sales of T$26.56 billion ($877 million) last month, 21 percent higher than a year earlier, the Taiwan company said on Thursday, without giving an explanation. Continued... |
