Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: Paul Shread who wrote (49606)	8/9/2002 1:26:24 AM
From: stomper	Respond to of 209892

North Asia News: Fri, 09 Aug 2002, 12:06pm HKT Taiwan Semiconductor July Sales Fall as Demand Stalls (Update1) By Iain Pocock Hsinchu, Taiwan, Aug. 8 (Bloomberg) -- Taiwan Semiconductor Manufacturing Co. said July sales fell 13 percent from the previous month, confirming Chairman Morris Chang's comments two weeks ago that demand is stalling. Sales at the world's largest supplier of made-to-order chips fell to NT$13.5 billion ($400 million) from NT$15.6 billion in June, the first monthly drop since February. They rose 57 percent from a year earlier, the company said in a statement. Taiwan Semiconductor said last month its capacity use and chip prices will fall in the third quarter as a recovery from the chip industry's worst year on record in 2001 falters. Powerchip Semiconductor Corp., the island's third-largest computer-memory- chip maker slashed its pretax profit forecast yesterday, citing slower-than-expected demand. ``There's simply no demand,'' said Bill Lin, who manages $15 million in equities at United Securities Investment Trust Corp. and sold Taiwan Semiconductor shares last year. ``Companies are telling us they have no orders. The whole industry is slowing down quicker than we forecast.'' Taiwan Semiconductor shares, which were the worst-performing last month among the 50 biggest companies by market value on the Taiwan Stock Exchange, fell 0.4 percent to NT$49.10 at the close of trading in Taipei. Decline The monthly sales decline comes after Taiwan Semiconductor in July said it had a lower-than-expected NT$9.3 billion profit in the second quarter and cut its planned investment in new machines and factories by a fifth to $2 billion. Tapering sales at some of Taiwan Semiconductor's biggest customers is hurting orders. Nvidia Corp., a designer of chips for Microsoft Corp.'s Xbox game console, last month said sales dropped as much as 30 percent in the second quarter. Nvidia had forecast a rise in sales. Computer shipments fell in the April to June period for a fifth straight quarter, according to International Data Corp. Slower-than-expected sales of the Xbox prompted Microsoft to lower prices in May to spur demand. While companies such as Nvidia curtain placing orders with chipmakers such as Taiwan Semiconductor when demand sags, the slump may not be affecting all makers of chips to other companies' designs the same, some investors said. United Microelectronics Corp., the world's second-largest supplier of made-to-order chips, may stand a better chance of weathering a slowdown in orders because of its closer relationship with its customers, investors said. United Microelectronics has a 14 percent stake in MediaTek Inc., Taiwan's second-largest chip designer, and owns more than a quarter of Novatek Microelectronics Corp., which designs chips used in flat-panel displays. ``When the cycle slows, customers slash orders to Taiwan Semiconductor,'' Lin said. ``United Microelectronics can tell their customers to give them the order.'' United Microelectronics last month said it expects prices to rise in the third quarter. The company forecasts that operating profit may grow compared with the second quarter.