November sales at leading chip foundry Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) dipped sequentially by 14.4 percent to NT$44.33 billion (about $1.50 billion). This is the second month running that the foundry's sales of slipped coming on top of a 6.5 percent sequential decline in October.
As a result of the sequential decline TSMC's November sales were just 0.1 percent ahead of sales in November 2012. The decline provides evidence of an inventory correction forecast by TSMC chairman Morris Chang earlier in the year. That correction is thought to be mainly in the smartphone and tablet computer market.
Over the previous ten years TSMC's sales have, on average fallen sequentially in November by 8.0 percent. This includes the exceptional decline of 30 percent recorded in November 2008 at the start of the global banking crisis. Excluding 2008 the average has been 5.0 percent.
TSMC's sales for the first 11 months of the year were NT$547.34 billion (about $18.50 billion), up 16.6 percent on the same period in 2012. TSMC (Hsinchu, Taiwan) has about 50 percent market share in the pure-play foundry business based on a strong position in leading-edge process technology at 28- and 20nm. As such, it has tended to outperform other pure-play foundries in recent years.
United Microelectronics Corp. (UMC) a local rival pure-play foundry also based in Hsinchu, reported November sales of NT$10.345 billion (about $350 million), down 1.2 percent from sales in October but up 2.5 percent on sales in November 2012. UMC's year-to-date sales were NT$113.91 billion (about $3.85 billion), up 6.5 percent on the same period in 2012.
Related links and articles: