Seeking Alpha

TSMC closes lower on Oct. sales data; customers reportedly cutting orders

  • TSMC's (TSM -0.6%) October sales rose 3.6% Y/Y to NT$51.795B ($1.76B). That's the lowest Y/Y growth rate the world's top foundry has posted this year, and represents only the second time (July being the other) double-digit growth wasn't reported.
  • TSMC's numbers come as Taiwanese chip industry sources tell Digitimes TSMC is set to witness a 10%+ Q/Q revenue drop in Q4 (guidance is for a 10% decline at the midpoint) due to weak demand for PCs, TVs, and high-end smartphones, and that visibility for Q1 2014 orders "is still unclear."
  • Top TSMC clients Qualcomm (QCOM - just provided soft guidance), Broadcom, Nvidia, AMD, and Marvell are said to have cut chip wafer starts in Q4; some of this is likely due to seasonality.
  • At the same time, order activity from MediaTek, a major Qualcomm rival in the market for baseband chips used in low-end/mid-range phones, is said to remain strong. MediaTek's sales rose 32.7% Y/Y in October to $472M; the chipmaker has now posted 30%+ growth in each of its last seven months.
  • Previous: TSMC's 28nm utilization rate reportedly falls
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)