Taipei, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, has reported a 22 percent month-on-month decline in sales in February.
TSMC said in a statement Friday that it posted consolidated sales of NT$60.89 billion (US$1.96 billion) in February, down 22 percent from a month earlier and down 5.8 percent from the same period in 2018.
The decline in the monthly revenue was mainly due to a production disruption at TSMC's Fab 14B, a 12-inch wafer foundry in Tainan, the company said.
The production problem, which was identified on Jan. 19 and was later found to be caused by problems with chemicals used to treat TSMC's wafers produced with the 12 nanometer and 16nm processes at the Tainan facility.
TSMC forecast that its revenue in the first quarter will fall 25 percent from the fourth quarter of 2018 because of high inventories in the supply chain and declining demand for mobile devices.
Analysts expect the chipmaker to rebound from its sales doldrums beginning in March after production returns to normal.
Affected by the overall economic slowdown and weak mining demand, the company estimates that revenue will only grow slightly this year, by about 1-3 percent.
Source: Focus Taiwan News Channel