LONDON Foundry chip supplier Taiwan Semiconductor Manufacturing Co. Ltd. has reached an internal consensus that the semiconductor industry will hit a minimum of trading activity in the first quarter and that a U-shaped recovery is possible during the rest of 2009, according to a report in the Taiwan Economic News.
This would be close to the best of possible outcomes and is better than many other analysts are forecasting. It is also likely that the semiconductor industry as a whole will perform better than the foundry sector.
TSMC executives reached the U-shaped recovery conclusion at an internal sales conference attended by managers of the various business units, the report said, adding that managers had seen some rush orders recently and indications that clients are reducing inventories steadily.
However the consensus is at odds with some industry talk that manufacturing capacity utilization at TSMC has dropped significantly below 50 percent and that the company has been offering price discounts to try and solicit orders.
TSMC had previously predicted that it would make a loss in the first quarter, for the first time since 1999.
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