TSMC says rush orders lifted August sales

LONDON – August sales at Taiwan Semiconductor Manufacturing Co. Ltd., the world's leading foundry chip maker, were lifted by rush orders, the company said Friday (Sept. 9).

These orders will likely lift third quarter sales higher than the previously quoted guidance of NT$102 billion (about $3.49 billion) to NT$104 billion (about $3.58 billion) but are unlikely to persist into the fourth quarter, TSMC (Hsinchu, Taiwan) said.

On a consolidated basis, net sales for August 2011 were approximately NT$37.64 billion (about $1.30 billion), an increase of 6.2 percent over July 2011 and an increase of 0.7 percent over August 2010. Consolidated revenues for January through August 2011 totaled NT$288.96 billion (about $9.90 billion), an increase of 6.3 percent compared to the same period in 2010.

This contrasts with rival foundry United Microelectronics Corp. (Hsinchu, Taiwan) which on Thursday (Sept. 8) announced August net sales down 6.9 percent on net sales for July and down 24.7 percent compared with August 2010. UMC's year-to-date sales are running behind sales for the equivalent period in 2010.

The sequential jump in TSMC's consolidated sales in August by 6.2 percent is exceptional. Over the last decade TSMC's August sales have been up, when compared with July, by 1.7 percent.

On an unconsolidated basis, TSMC's net sales were approximately NT$37.04 billion (about $1.27 billion), an increase of 6.1 percent over July 2011 and an increase of 1.5 percent over August 2010. Unconsolidated revenues for January through August 2011 totaled NT$282.35 billion (about $9.67 billion), an increase of 7.2 percent compared to the same period in 2010.

"In August, we have completed some rush orders for customers, therefore, TSMC's third quarter revenue is likely to exceed the guidance given on July 28, 2011 – consolidated revenues between NT$102 billion and NT$104 billion," said senior vice president and CFO Lora Ho, in a statement. "However, given the increased uncertainty in the global economy, TSMC does not expect that these short-term rush orders will continue into the fourth quarter," she also said.

The company did not indicate what customers, application areas or process technology or technologies are responsible for the sales surge. TSMC's 28-nm digital CMOS process node is reportedly sold out and could be a factor.


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