TSMC Sees January Sales Slide 4.5% Sequentially

Taipei, Feb. 12, 2010 (CENS)--Taiwan Semiconductor Manufacturing Co. (TSMC) saw its consolidated sales for January dip 4.5% from a month earlier, to NT$30.1 billion (US$941 million at US$1:NT$32), a result lower than expected.

The market originally estimated the company to have higher revenue in January than a month earlier, given staggering December revenue of NT$31.5 billion (US$986 million).

Industry watchers ascribe the lower-than-expected January sales mostly to the appreciation of the New Taiwan dollar against the U.S. dollar, which eroded Taiwan's U.S. dollar-denominated exports.

However, the January result represented a 129.6% surge from the same month of last year and was roughly in line with the company's projection.

The January result attained 33.1-33.8% of the company's projected NT$89-91 billion (US$2.78-2.84 billion) for the first quarter. The quarterly revenue projection represents a 1.2-3.4% contraction from a quarter earlier.

Industry executives expect No.1 silicon foundry's sales for February to fall under the NT$30 billion (US$937 million) level mostly thanks to the weeklong Chinese New Year holidays.

In the first quarter, the company's gross margin ratio is set at 46.5-48.5% and its operating net income ratio is put at 35-37%.

TSMC Chairman and Chief Executive Officer Morris Chang recently forecast silicon foundry revenue to rise 29% this year worldwide, compared with last year's 17% contraction. His company, he estimated, would likely see sales surge 30% this year. Some institutional investors estimate the company's revenue for this year to hit a new high, at around NT$400 billion (US$12.5 billion).