Market watchers have estimated that TSMC's January sales will slide 35-40% sequentially, while surplus semiconductor stockpiles at clients have climbed to 100 days-of-inventory (DOI) on average. In the fourth quarter of 2008, TSMC had a DOI of 90 days.Rival UMC is having the same problems, analysts expect the foundry will see its January revenue drop about 35 percent sequentially, while its utilization rate may drop to less than 30 percent in the first quarter.
Of TSMC's major customers, Nvidia has revised its revenue guidance for its fourth quarter of fiscal 2009 (ending January 25 2009) to a 40-50% decline sequentially. Xilinx also said that its fiscal fourth quarter revenues may go down 15-25% sequentially.
In addition, TSMC's utilization rate for the first quarter of 2009 will go down to as low as 40%, according to market watchers.
TSMC sales hit by excess stockpiles
Posted on Tuesday, January 20 2009 @ 2:40 CET by Thomas De Maesschalck