Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電), the largest contract chip maker in the world, has announced that sales in October were the second highest in the company’s history.
Although the fourth quarter is traditionally a slow season for the global integrated circuit industry, market analysts said that smartphone demand, in particular for high-end models, has continued to rise, pushing up chip sales.
TSMC posted NT$91.09 billion (US$2.88 billion) in consolidated sales for October, up 1.5 percent from a month earlier and 11.4 percent year-on-year. The October figure trailed only the NT$94.31 billion achieved in August 2016.
October sales data confirmed TSMC’s previous forecast that inventory adjustments in the current quarter would have only a minimal impact, indicating that the chip maker was not expecting the slow season to have a major impact on its performance.
At an investor conference held in mid-October, TSMC forecast that consolidated sales for the October-December period would range between NT$255-258 billion, down only 0.9-2 percent from the third quarter.
Based on fourth quarter guidance, TSMC could report between NT$82-83.5 billion in average monthly consolidated sales for October and November.
In the first 10 months of this year, TSMC posted NT$776.80 billion in consolidated sales, up 7.6 percent from a year earlier.
TSMC has said that its sales for 2016 could rise 11-12 percent from a year earlier in Taiwan dollar terms on the back of solid demand for smartphone chips.
Meanwhile, United Microelectronics Corp. (UMC, 聯電), the second largest contract chip maker in Taiwan, posted NT$12.83 billion in consolidated sales, up 0.77 percent from the previous month and 6.42 percent from a year earlier.
UMC said that it remained upbeat about the PC and communications device markets, which it expects to boost sales in the fourth quarter.
In the first 10 months of this year, UMC’s consolidated sales totaled NT$122.40 billion, down 0.52 percent from a year earlier.
Source: Focus Taiwan News Channel