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To: Johnny Canuck who wrote (45173)	12/1/2008 4:30:52 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 71844

Semiconductors Not Rolling In Dough Melinda Peer, 12.01.08, 01:10 PM EST Slowed sales for cellphones and personal computers have been tearing into chip sales. * Taiwan Semiconductor Mfg Co. Mon Dec 01 2008 16:29 EST $6.57 $-0.58 -8.11% Chart Taiwan Semiconductor Mfg Co.Chart Taiwan Semiconductor Mfg Co.Chart Taiwan Semiconductor Mfg Co. o 1 day o 3 mo o 1 year o Advanced Tearsheet \| Chart \| News Weak economic conditions are chipping away at demand for semiconductors, according to the latest report from the Semiconductor Industry Association and Taiwan Semiconductor Manufacturing, which lowered its fourth-quarter guidance on Monday. Shares of Taiwan Semiconductor Manufacturing (nyse: TSM - news - people ) listed on the New York Stock Exchange lost 47 cents, or 6.6%, at $6.68, during early-afternoon trading in New York on Monday as weak global demand for semiconductors lowered wafer shipments. The Taiwanese company lowered its outlook for fourth-quarter sales to a range of $63.0 billion Taiwan new dollars ($1.88 billion) to $65.0 billion Taiwan new dollars ($1.94 billion), compared with its previous forecast given at the end of October for sales in the range of 69.0 billion Taiwan new dollars ($2.06 billion) to $71.0 billion Taiwan new dollars ($2.12 billion). Analysts polled by Thomson Reuters have been expecting fourth-quarter sales of $2.09 billion. Article Controls imageemail imageprint imagereprint imagenewsletter imagecomments imageshare imagedel.icio.us imageDigg It! imageyahoo imageFacebook imagerss Yahoo! Buzz Taiwan Semiconductor also lowered its expectations for both gross profit margin and operating profit margin by four percentage points each. It now expects fourth-quarter gross profit margin to be in the range of 30.0% to 32.0%, and operating profit margin in the range of 17.0% to 19.0%, when it releases fourth-quarter results on Jan. 22. Separately on Monday, the Semiconductor Industry Association said global chip sales fell 2.4%, to $22.5 billion in October, compared with sales of $23.0 billion a year ago. Economic weakness across the world has dramatically lowered the demand for personal computers and cellphones as businesses and consumers reduce spending. According to the semiconductor industry group, personal computers and mobile phones account for 60.0% of chip demand. In 2009, the Semiconductor Industry Association expects personal computers to drop by 5.0% and cell phone unit shipments to fall by 9.0%. The Semiconductor Holdrs (nyse: SMH - news - people )exchange-traded fund shed 74 cents, or 4.5%, to $15.89, during Monday's afternoon trading session. It has lost $16.55, or 51.0%, since the beginning of the year.