TSMC adds another month to long-running sales slide

By Colleen Taylor -- Electronic News, 3/9/2007

Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) posted yet another month of sales declines in February.

The Taiwan-based foundry leader today announced its unconsolidated net sales for February were $621.7 million (20.57 billion new Taiwanese dollars), down 1.3 percent from January and down 14.3 percent from February 2006.

TSMC has been struggling for months due to inventory issues that began plaguing the company's sales in 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. Things did not get any better in the new year: TSMC's January sales were down 6.8 percent from December's.

TSMC's rival United Microelectronics Corp. has been feeling the inventory-induced strain, as well. This week the company posted unaudited net sales of $219.4 million (7.2 billion TD), down 12.1 percent from January's sales of $250.12 million (8.23 billion TD) and down 3.74 percent from February 2006.