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TSMC hits Q1 sales target; UMC revenue sets record

TSMC hits Q1 sales target; UMC revenue sets record

Taipei, April 10 (CNA) Taiwan's two biggest contract chip makers, Taiwan Semiconductor Manufacturing Co. (TSMC, ???) and United Microelectronics Corp. (UMC, ??) reported positive results for the first quarter on Friday. TSMC said it had met its target for first quarter sales, helped largely, according to analysts, by strong demand for chips made using TSMC's high-end processes. Rival UMC said its first quarter sales hit a new high, with analysts attributing the growth to full capacity utilization of its 8-inch wafer production lines. In the January-March period, TSMC had consolidated sales of NT$222.03 billion (US$7.12 billion), up 49.8 percent from a year earlier. The figure fell within the chip maker's first-quarter sales guidance of between NT$221 billion and NT$224 billion. Analysts said strong global demand for mobile devices continued to boost shipments of TSMC's chips made on the advanced 28 nanometer and 20nm processes during the three-month period. Despite the year-on-year increase, TSMC's first quarter sales still fell 0.21 percent from the fourth quarter, according to company figures.
The sequential decline was limited, however, by the rising popularity of mobile gadgets, which offset traditionally slow first-quarter demand for semiconductors. In March, TSMC's consolidated sales rose 15.4 percent from February to NT$72.27 billion as the number of working days returned to normal last month after the Lunar New Year holiday a month earlier. The significant sales growth during the month helped TSMC achieve its first quarter target, analysts said. TSMC has scheduled an investor conference for April 16. Investors will be focusing on the chip maker's comments on the potential impact of a stronger U.S. dollar amid fears that U.S. electronics vendors are seeing their inventories balloon because of unfavorable exchange rate conditions. They will also be listening for TSMC's guidance for the second quarter and for comments on the progress it has made in developing its advanced 16nm and 10nm processes. UMC posted consolidated sales of NT$37.65 billion in the first quarter, up 1.1 percent from the fourth quarter, defying the conventional wisdom that the January-March period is a slow season for the industry.
First quarter sales were also 18.79 percent higher than a year earlier. Analysts said UMC benefited from strong demand from flat panel drive IC and power management IC suppliers, which pushed its 8-inch wafer lines to full capacity during the three-month period. In March, UMC's consolidated sales totaled NT$12.71 billion, up 5.42 percent from a month earlier and up 12.58 percent from a year earlier. UMC is scheduled to hold an investor conference on April 29 to release its detailed first quarter results and give sales guidance for the second quarter. (By Jackson Chang and Frances Huang)


Updated : 2021-09-17 01:58 GMT+08:00