Taipei, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, reported Tuesday an almost 6 percent quarter-on-quarter decline in sales for the second quarter of this year.
Market analysts attributed the fall to weak demand for iPhones as well as mining devices used in cryptocurrency transactions. TSMC is believed to be the sole provider of processors for the latest iPhone model and a major supplier for chips used in mining devices.
During the April-June period, TSMC posted NT$233.28 billion (US$7.68 billion) in consolidated sales, down 5.97 percent from the previous quarter, which was short of the company's previous estimate of a 7-8 percent quarter-on-quarter drop in U.S. dollar terms.
TSMC's consolidated sales in June stood at NT$70.44 billion, down 13 percent from a month earlier and also down 16.3 percent from a year earlier, the company said.
The June sales figure was the second lowest for this year, better only than the NT$64.64 billion recorded in February, data compiled by TSMC showed.
In the first half of this year, TSMC posted NT$481.36 billion in consolidated sales, up 7.5 percent from a year earlier, the data indicated.
Analysts said the traditional peak season for the global semiconductor sector is the third quarter, expecting TSMC's sales growth momentum to pick up in the current three-month period.
However, global demand for mining devices remains weak in the wake of a plunge in the value of Bitcoin, which is expected to compromise TSMC's sales growth in the third quarter, analysts said.
In addition, trade friction between the United States and China is expected to affect shipments of smartphones in the second half of this year, serving as an additional negative factor impacting TSMC's sales growth.
TSMC has scheduled an investor conference for July 19 to detail its second quarter results and offer third quarter sales guidance.
The company held a building dedication ceremony this morning to rename its headquarters the "Morris Chang Building." Chang, retired as TSMC chairman in June after more than 30 year at TSMC.
Accompanied by his wife, Chang attended the ceremony, saying the move to rename the headquarters means more to him than his retirement pension, adding that despite leaving TSMC just over a month ago, he has already started to miss the company and colleagues.
Source: Focus Taiwan News Channel