Taipei, Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, on Tuesday reported a 9.9 percent monthly drop in its February sales, which market analysts attributed to the usual first-quarter slow season for the global semiconductor industry.
In a statement, TSMC posted NT$93.39 billion (US$3.11 billion) in consolidated sales for February, which was its highest monthly figure ever, despite the 9.9 percent decline from a month earlier.
The company's February sales were also 53.4 percent higher than a year earlier, when the global semiconductor industry was in a period of inventory adjustments, according TSMC data.
For the first two months of 2020, TSMC's consolidated sales totaled NT$197.08 billion, up 41.8 percent from a year earlier, the data showed.
At an investor conference in mid-January, TSMC forecast first-quarter consolidated sales of between US$10.2 billion and US$10.3 billion, a sequential decline of no more than 1.3 percent, saying solid demand for 5G smartphones is likely to offset the slow season effects.
According to analysts, TSMC will have to generate consolidated sales of at least NT$107.9 billion in March to meet its first-quarter target.
TSMC might also see a sequential decline in sales in the second quarter of the year, as its clients may be forced to adjust their inventories due to the snags in the global supply chain as a result of the COVID-19 coronavirus, which has crippled some industries in China, analysts said.
Before the release of TSMC's sales report Tuesday, its shares closed up 0.49 percent at NT$307.00 on bargain hunting on the Taiwan Stock Exchange, while the benchmark weighted index ended 0.24 percent higher at 11,003.54 points.
Source: Focus Taiwan News Channel