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

To: etchmeister who wrote (14832)	5/9/2005 8:02:45 AM
From: Proud_Infidel	Respond to of 25522

UPDATE 2-TSMC April chip sales nudge higher for second month Mon May 9, 2005 05:52 AM ET (Adds details, UMC sales) By Michael Kramer TAIPEI, May 9 (Reuters) - TSMC (2330.TW: Quote, Profile, Research) (TSM.N: Quote, Profile, Research) , the world's largest contract microchip maker, posted a second straight monthly rise in revenue on Monday amid a sluggish recovery from a sharp downturn brought on by clients' unwanted inventories. But while Taiwan Semiconductor Manufacturing Co.'s (TSMC's) 7.3 percent month-on-month rise in April sales was at the high end of analysts' expectations, competitor UMC (2303.TW: Quote, Profile, Research) (UMC.N: Quote, Profile, Research) posted an unexpectedly weak 9.1 percent decline from March. "We think TSMC could outperform its guidance this quarter," said Macquarie Securities' analyst Warren Lau, pointing to possible rush orders for consumer electronics chips in June as the electronics industry gears up for a year-end sales boom. "UMC is the other way around. A 9.1 percent drop is a little more than we expected," he said. Most analysts had expected the two firms' April-June revenues to stay mostly flat after bottoming out from the downturn in the first quarter, with a seasonal upturn in demand expected to bring a more substantive improvement in the third quarter. TSMC posted April revenue of T$18.90 billion (US$606 million) on Monday, down 8.4 percent from T$20.63 billion in the same month last year, but a gain from T$17.61 billion in March, a 21-month low. The company said the month's results would not change its guidance to investors that second-quarter shipments would rise by a mid to high single-digit percent while selling prices would dip slightly. United Microelectronics Corp. (UMC), posted April sales of T$6.37 billion, dipping from T$7.01 billion in March and down 30.9 percent from T$9.21 billion in the year-ago period. But it said it would nearly break even at the operating level in the second quarter and saw signs of improving orders in June. Rising interest rates and volatile oil prices are likely to keep demand weak, even though a chip glut caused by over-optimistic customer orders in the second half of last year has largely been worked out, analysts say. Taiwan's exports growth accelerated to 11.2 percent in the year through April on strong orders from Asia and as demand for steel and plastic products offset weak tech demand, government data showed on Monday. However, orders for 3G mobile phones and the second generation of Microsoft Corp.'s (MSFT.O: Quote, Profile, Research) Xbox game console could help TSMC show a more pronounced recovery in the second half of the year. Macquarie's Lau said he expected TSMC's second-quarter sales to rise about 5 percent from the January-March quarter, while third-quarter sales would speed up to a 15-20 percent sequential rise. TSMC, which is nearly 20-percent owned by the Netherlands' Philips Electronics NV (PHG.AS: Quote, Profile, Research) , announced April results after close of trade in Taiwan on Monday. Its ordinary shares edged up T$0.10, or 0.18 percent, to close at T$54.70, while UMC stood unchanged at T$19.55 and the benchmark TAIEX share index was little changed with a 0.02 percent fall. Both contract chip makers have shown sharp gains in recent weeks as foreign investors snap up heavyweights ahead of global equity index compiler Morgan Stanley Capital International's May 31 hike to Taiwan's weightings. But TSMC shares have gained 8.3 percent since the beginning of the year against a 4.6 percent loss for UMC as the larger firm has been more successful in defending profitability by holding on to orders for high-end chips. (US$1=T$31.2)

To: etchmeister who wrote (14832)	5/9/2005 11:59:51 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

April sales fall 30 percent year-on-year at UMC Peter Clarke EE Times (05/09/2005 6:57 AM EDT) LONDON — April sales at foundry United Microelectronics Corp. (UMC) were down 9.1 percent compared with March and down 30.9 percent compared with April 2004, the company announced Monday (May 9). The April sales collapse — to NT$6.37 billion (about $204 million) — came after March sales had increased 14 percent on February, but would seem to be helping fulfill a prediction that the pure-play foundry market would decline by 6.2 percent in 2005 to $15.90 billion from $16.95 billion in 2004 For the year to date UMC has sold NT$26.65 billion (about $855 million), which is 22.8 percent less than the NT$34.53 billion (about $1.11 billion) the company said.