Taiwanese foundry TSMC reported it sales were down more than 30 percent in Q4 2008, and this quarter is expected to be even worse. The foundry forecasts its revenue may sequentially decline by 45.8-50.4 percent in Q1 2009, and that it will lose money for the first time in 20 years.
Taiwan Semiconductor Manufacturing Company (TSMC) forecasts its first-quarter consolidated sales at only NT$32-35 billion (US$0.95-1.04 billion), representing a 45.8-50.4% sequential decline. Gross margin will be 1-5% and operating margin will be negative. The company normally has margins of 40-50%.
Market watchers earlier expected TSMC to see a sales decline of at least 35% in the first quarter.
TSMC's consolidated sales in the fourth quarter of 2008 totaled NT$64.56 billion, down 30.6% sequentially and down 31.2% on year. Gross margin and operating margin were 31.3% and 18.6%, respectively.