TSMC Reports Shining Monthly and Quarterly Sales

Taipei, July 13, 2010 (CENS)--Taiwan Semiconductor Manufacturing Co, (TSMC) saw its consolidated net sales for June hit a new high of NT$36.3 billion (US$1.1 billion at US$1:NT$32), and its consolidated net sales for the second quarter reached a better-than-projected level of NT$104.9 billion (US$3.2 billion).

The June sales result represented a gain of 4.4% from a month earlier while the quarterly result was up 13.86% sequentially.

Originally, the company estimated its net sales for the second quarter to stand at the NT$100-102 billion (US$3.12-3.18 billion) range.

TSMC's hefty sales growth in June and the second quarter came although the second quarter is normally a slacken season for the electronics industry. This was also the case with United Microelectronics Corp. (UMC).

UMC, currently the world's No.2 pure silicon foundry next only to TSMC, saw its sales for June hit a three-year high of NT$10.3 billion (US$322 million), increasing 2.43% from a month earlier. The June result helped push the company's sales for trhe second quarter to NT$29.7 billion (US$925 million), rising 11.34% sequentially.

Executives of both foundries forecast sales for the third quarter to grow from the second quarter. Late last month, TSMC Chairman and Chief Executive Morris Chang hiked his annual growth forecast of 2010 global semiconductor market to 30% from 20% and estimated his company's sales and earnings for this year to hit new highs.

UMC Chief Executive S.W. Sun recently said the company's visibility of contracts is quite clear throughout the third quarter. Regardless of market fears that overcapacity would recur this year, UMC has still raised capital expenditure budget for this year to US$1.5 billon).

Institutional investors estimated production at TSMC's factories will persistently run at full capacity rate throughout the third quarter and the company's sales will remain brisk in the fourth quarter. JP Morgan forecast TSMC's sales for the third quarter to rise 7% from the second quarter, to approximately NT$110 billion (US$3.4 billion), and its gross profit margin rate in the meantime to hit 50.8%.