Sales fall 18.4% at TSMC, lagging UMC

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s top contract chip maker, posted an 18.4 percent fall in December sales yesterday, hurt by clients’ unwanted stockpiles, but a recovery looms as a new crop of electronics devices hit store shelves.

An industry downturn that began in mid-2006 on softer demand for computers and some consumer gadgets is likely to come to an end early this year, said some analysts, who have high hopes for Vista-driven demand for PCs and new cellphones and game consoles. Sales at Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) came to NT$22.376 billion last month, compared with NT$27.416 billion in the same month a year earlier, the company said, without giving an explanation.

That was also lower than November’s NT$24.709 billion after the Christmas buying spree came to an end.

The fall was larger than for its smaller local competitor, United Microelectronics Corp. (UMC), which saw an annual 7.2 percent fall in December sales on Tuesday.

TSMC’s fourth-quarter sales totalled NT$73.935 billion, according to Reuters calculations, falling short of its own forecast of between NT$74 billion and NT$76 billion made in October.

TSMC announced the sales result as the Taipei stock market closed yesterday. TSMC shares fell 2.73 percent to NT$64.20 and UMC shares were off 2.27 percent at NT$19.35, underperforming the main TAIEX’s 1.17 percent drop.

TSMC and UMC together take about two-thirds of global market share, counting the world’s top cellphone chip supplier Texas Instruments Inc. as one of major clients.

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