TSMC's sales decline narrows in February

|By:, SA News Editor

TSMC (TSM -0.1%) had February revenue of NT$59.6B ($1.79B), down 16% M/M (thanks largely to seasonality) and 4.9% Y/Y. However, the annual decline narrowed from January's 18.7% and December's 16.1%.

Lower Apple-related orders have been weighing - iPhone 6S/6S+ sales have been lower than year-ago iPhone 6/6+ sales, and TSMC is sharing production duties for Apple's A9 CPU after being the sole producer of the A8. Weak PC demand and broader high-end smartphone weakness have also taken a toll. TSMC's 16nm production ramp and a reported deal to be the sole producer of Apple's A10 CPU are expected to fuel a 2016 rebound.

TSMC hiked its Q1 sales guidance last month, while citing "business upside" and a weaker Taiwanese dollar.

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