TSCM CEO Rick Tsai claims semiconductor industry sales will stay flat in 2008 and decline 5-9 percent in 2009, with wafer OEMs seeing even steeper declines.
TSMC will strive to confront the weak economy with six operating directions: cost control, profit focus, company structure improvement, capex reduction, advanced process investment and an over NT$3 dividend distribution, Tsai pointed out.
TSMC has reported consolidated sales in the third quarter at NT$93 billion (US$2.84 billion) with a NT$1.18 EPS. Third-quarter gross margin and operating margin were 46.3% and 35.4%, respectively. Consolidated sales in the fourth quarter are expected to be NT$69-71 billion with a 34-36% gross margin and 21-23% operating margin. Both gross and profit margin will have an at least 10% decline due to decreasing utilization rate, the company added.