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By | Tony Smith 10th May 2005 10:54

TSMC, UMC April sales slump

Optimistic for second half?

Chip foundries TSMC and UMC expect to experience strong revenue growth during the second half of the year, according to reports in the Taiwanese press today.

They'll need to. On the basis of their figures for April, released yesterday, the short-term prognosis is poor.

TSMC said sales were up 7.43 per cent on March's total, to TWD18.90bn ($605m) but down 8.4 per cent on April 2004.

UMC fared less well. Its April sales totalled TWD6.37bn ($204m), down 9.1 per cent sequentially and a 30.9 per cent below April 2004's level.

Signs of improvement come in the form of rising orders from the wireless and consumer electronics markets, claimed sources cited by DigiTimes today. The foundries also expect orders for PC-centric products to pick up in Q3.

TSMC has already said it expects Q2 wafer shipments to rise 5-9 per cent over Q1's total, though it has not said specifically how that will boost revenue growth beyond noting that its average selling price will fall around five per cent sequentially. It expects its Q2 plant utilisation rate to be around 80 per cent. ®

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