TSMC’s June sales highest this year

Taipei, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, on Wednesday reported its highest monthly sales for the year, saying the June figure was up almost 7 percent from the previous month.

The company, the world's largest contract chipmaker, posted NT$85.87 billion (US$2.75 billion) in consolidated sales for June, an increase of 6.8 percent from May and a hike of 21.9 percent from a year earlier.

The data released by TSMC also showed that its consolidated sales for the second quarter of the year rose 10.19 percent year-on-year to NT$240.999 billion, which was 7 percent higher than it had forecast in January.

TSMC's consolidated sales for the first half of the year, however, showed a 4.5 percent drop from a year earlier to US$459.70 billion.

According to market analysts, the higher June sales and better-than-expected second-quarter sales could be attributed to two main factors, one of which was TSMC's decision to continue supplying wafers to Huawei Technologies Co. despite the United States' blacklisting of the Chinese telecom equipment and smartphone brand.

The other factor was an increase in shipments in June following a postponement of some shipments in the first quarter due to a problem at TSMC's 12-inch wafer foundry in Tainan that resulted in reduced production, analysts said.

TSMC is scheduled to give its full second-quarter results and sales guidance for the third quarter and the rest of the year on July 18 at an investor conference, which will be closed watched by investors at home and abroad.

Earlier this year, TSMC Chairman Mark Liu said the company had benefited from increased shipments of chips made on the advanced 7 nanometer process and that the sales growth was expected to pick up further in the second half of the year.

On the Taiwan stock market, TSMC staged a technical rebound Wednesday from the previous session, closing up 2.07 percent at the day's high of NT$247.00, although its June sales report was released after the close of the trade.

Source: Focus Taiwan News Channel