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 : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: AugustWest who wrote (44930)	7/24/2003 7:35:32 AM
From: orkrious	Read Replies (1) \| Respond to of 57110

TSM hedging their uber bullish outlook a little biz.yahoo.com UPDATE - TSMC profit best in two yrs, sees slower Q3 growth Thursday July 24, 7:26 am ET By Michael Kramer (Recasts with more comments from chairman) TAIPEI, July 24 (Reuters) - TSMC (Taiwan:2330.TW - News), the world's largest contract microchip maker, posted its best quarterly result since a tech sector downturn began in 2001, but cautioned that recovery was not yet underway for the industry. ADVERTISEMENT Taiwan Semiconductor Manufacturing Co (TSMC) (NYSE:TSM - News) said on Thursday its second-quarter net profit grew 26 percent from the same period a year ago -- above market expectations -- as customers launched advanced new products. "Collectively, I don't think we can call it a recovery, at least not yet," TSMC Chairman Morris Chang told an analysts' conference. "Specific companies have done well, and I think we are one of them." "Demand should improve in consumer and communications, and decline in computers," he said of the July-September quarter. While the entire microchip sector is seeing a stop-and-go recovery from a record downturn in 2001, TSMC has beaten rivals in winning high-priced orders for cutting-edge products due to better progress in shrinking circuits. Many of TSMC's key clients launched advanced new products in the second quarter, such as graphics chip designer Nvidia Corp's (NasdaqNM:NVDA - News) $500 GeForce FX 5900 Ultra, a pricey chip that promises near-cinematic quality for computer games. However, end demand from consumers and corporate IT departments for the gadgets using TSMC chips is still uncertain, and some investors were more cautious on the outlook. The second quarter was "a little better than expected. While the third quarter will see growth, it won't be as good as the second quarter," said ABN AMRO Asset Management fund manager Pedro Tsai, whose US$40 million fund includes TSMC shares. TSMC said net profit grew to T$11.73 billion (US$341 million) from T$9.31 billion in the same period last year. That brought earnings per share to T$0.58 in the second quarter, against an average forecast of T$0.54 in a Reuters poll of six analysts. TSMC said it expected third-quarter shipments to show "mid-to-high single digit growth" from the second quarter, while prices would remain flat, matching market expections of eight to 10 percent quarter-on-quarter growth in revenues. That would be a slowdown from 27 percent sequential revenue growth in the second quarter.