TSMC sees slow start to 2007

By Colleen Taylor -- Electronic News, 2/9/2007

Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) got the year off to a slow start with its January revenues.

The Taiwan-based foundry giant today announced January unconsolidated net sales of $632.25 million (20.85 billion new Taiwanese dollars), a decrease of 6.8 percent from December's sales and a decrease of 20.3 percent from January 2006's sales.

TSMC has been showing signs of struggle for some time now, with dismal sales reports dating back to October, when it reported $818 million (26.85 billion TD) in revenue for the month, essentially flat with its September sales. Things only got worse in the following months as an inventory crunch continued to tighten its strangle-hold on the chip industry; TSMC went on to report revenue dips of 8 percent and 9.4 percent in November and December, respectively.

January was slightly better for TSMC's rival foundry, United Microelectronics Corp. (UMC). Although UMC also posted a January sales dip this week, its revenues of $250.12 million (8.23 billion TD), were only down 1.62 percent from its December sales and down 2.03 percent from its January 2006 sales.