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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (1405)	7/9/2002 10:24:35 AM
From: Proud_Infidel	Respond to of 25522

TSMC, UMC show growth in June, but face slowdown Semiconductor Business News (07/09/02 10:07 a.m. EST) HSINCHU, Taiwan -- Taiwan's two major silicon foundry vendors today reported minor improvements in terms of their monthly sales figures for June, but analysts believe the companies are heading towards a slowdown. Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), the world's largest foundry, said its sales hit $470.8 million (NT$15.62 billion) for the month of June, a 2.7% increase over the previous month. The monthly figure also represents an 83% jump over the like period a year ago. Sales in the April to June period hit $1.3 billion (NT$44.18 billion), a 23% jump from the first quarter, according to Hsinchu-based company. Rival United Microelectronics Corp. (UMC), the world's second largest foundry, reported sales of $202.2 million (NT$6.71 billion) for the month of June, up only 1.2% from May. But its June figures were 58.44% over the like period a year ago, according to Hsinchu-based UMC. While TSMC and UMC showed growth for June, the companies face an uncertain period--if not a slowdown. A leading investment banking firm last week lowered its forecast for TSMC and UMC, following a slowdown in orders from its major chip customers. While the respective fabs from the two companies are still running at over 70% utilization, the “order flows from Nvidia and ATI to TSMC and MediaTek to UMC have been declining since the middle of 2Q02,” according to a report issued last week by Morgan Stanley Dean Witter & Co. in San Francisco. The report was referring to some of the world's largest fabless design houses, including ATI Technologies Inc., Nvidia Corp., and MediaTek Inc. ATI and Nvidia make graphics ICs, while MediaTek makes DVD and CD-ROM chips. The move prompted Morgan Stanley to lower “its sales expectations for PC [chip revenues] for both UMC and TSMC.” And the investment banking firm lowered its overall forecast for TSMC (see July 3 story ).