TSMC, UMC sales slow M-M

October 9, 2007 – Sales at Taiwan’s top two foundries slowed down in September to flat or a slight decline vs. the previous month, though compared with a year ago sales are a tad better.

TSMC says consolidated September revenues were down in September by -1.9% to about US $903.9 million; unconsolidated sales dipped -2.4% to $874.6M. Year-on-year growth was 8.3% (consolidated) and 6.1% (unconsolidated), respectively, each representing the third straight month of positive Y-Y growth. For the year through September, consolidated sales are down 5.6% (consolidated) and -7.2% (unconsolidated).

UMC, meanwhile, also says sales were a bit slower in September, just 1.0% higher than August (to $323.5M) vs. ~4% in the previous month, but vs. a year ago sales were 14% higher, a third straight month of 9+% Y-Y gains.

With the third quarter coming to a close, all eyes are now focused on the final year-end push, and the holiday season that could make or break the chipmakers’ bottom lines entering the New Year. “The third quarter was a good quarter but if sales are not good during Christmas, then inventory pressure will be heavy in the first quarter next year,” noted Grand Cathay Securities analyst Kevin Yeh, quoted by Reuters. “Perhaps we will start seeing some impact [from the credit crunch] in Christmas.”


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