In an upbeat sign for the chip industry, Taiwan Semiconductor (TSM) has raised its revenue guidance for its fiscal first quarter ending March 31. The contract chip fab says it now sees revenue for the quarter of between NT$36 billion and NT$38 billion, above previous guidance of $NT32 billion to NT$35 billion. The company said the higher guidance reflects “quick orders from customers, especially from the mainland Chinese market, and a stronger U.S. dollar.”
Taiwan Semi said it now sees Q1 gross margin of 14%-16%, with operating margin of -2% to 0%; previous guidance was for 1%-5% gross margins and operating margins of -15% to -19%.
The company also said that February sales were about NT$11.5 billion, down 7.5% from January, and off 59.5% from a year ago. For the first two months of the quarter, sales totaled NT$23.94 billion, down 59.2% from a year earlier.
In early trading Tuesday, TSM is up 21 cents, or 2.7%, to $7.95.