Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
?
EE Times-Asia > Manufacturing/Packaging
?
?
Manufacturing/Packaging??

TSMC predicts stall , cuts forcast

Posted: 23 Jul 2012 ?? ?Print Version ?Bookmark and Share

Keywords:chip market slowdown? market projections? inventory correction?

Morris Chang, Taiwan Semiconductor Manufacturing Co. Ltd.'s (TSMC) Chairman and CEO, has foreseen a slowdown happening in the chip market and has also cut his forecast for the total semiconductor market's annual growth.

During TSMC's second quarter earnings conference, Chang disclosed a cut in the growth forecast for the global semiconductor market in 2012 to between 1 and 2 percent. This cut is lower than recent 4 percent forecast from Future Horizons Ltd. as well as International Data Corp.'s forecast of 4.6 percent.

Chang stated the slowdown is set to start in the fourth quarter and last into the first quarter of 2013, and put it down to a renewed inventory correction and deterioration in the global economy, the reports said.

"We are now seeing a dip in our revenue in the fourth quarter from the third quarter," the Taipei Times quoted Chang as saying. Chang also sees a strong rebound in the second quarter of 2013 after the inventory adjustment.

TSMC posted strong revenue results and soaring profits for its 2Q12. The company expects to expand sales revenue by about 7 percent sequentially in 3Q12, which is roughly in line with TSMC's historical average for the third calendar quarter. Over the last ten years TSMC has averaged sequential third quarter revenue growth of 6.5 percent. Over the same period TSMC's fourth quarter revenue has, on average, dipped sequentially by 1.8 percent although it has grown by as much as 17.2 percent and contracted by as much as 30.6 percent.

Chang also confirmed that TSMC is negotiating with lithography equipment maker ASML Holding NV about investing in the company, according to a Dow Jones Newswires report. The Taipei Times said that TSMC maintained its advice it would spend between $8 billion and $8.5 billion on capital expenditure in 2012.

- Peter Clarke
??E.E. Times U.S.





Article Comments - TSMC predicts stall , cuts forcast
Comments:??
*? You can enter [0] more charecters.
*Verify code:
?
?
Webinars

Seminars

Visit Asia Webinars to learn about the latest in technology and get practical design tips.

?
?
Back to Top