TSMC utilization rate to fall to 85-90 percent in Q2 2011

With orders from the communications sector slowing down, Taiwan Semiconductor Manufacturing Company (TSMC) is expected to generate a 5% drop sequentially in total wafer starts in the second quarter of 2011, according to industry sources.

TSMC's average capacity utilization will likely edge down to 85-90% in the second quarter, the sources said. Utilization rates for 90nm, 65nm and 40nm nodes may slide to 50%, 70% and 80-90%, respectively.

Broadcom and Qualcomm, TSMC's main clients in the communications chip market, have decelerated their pace of orders due to inventory clearance and parts shortages caused by Japan's recent disasters, the sources indicated.