TSMC expects 5-9 percent decline of semiconductor industry in 2009

Posted on Friday, October 31 2008 @ 15:46 CET by Thomas De Maesschalck
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.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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