TSMC reports weak Q4 as tech demand slips

TSMC, the world's largest contract chip maker, reported weak fourth-quarter earnings and forecast worse times ahead.

Taiwan Semiconductor Manufacturing (TSMC), the world's largest contract chip maker, said the deepening global economic recession hurt its fourth-quarter results. It predicted its sales in the first quarter could be cut in half.

The company, which manufactures chips on behalf of its clients, said consolidated sales dropped 31 percent to NT$64.56 billion (US$1.92 billion as of Dec. 31, 2008, the last day of the period reported), while net profit sank 64 percent to NT$12.45 billion.

Demand for digital products in the fourth quarter was worse than expected and consumer demand remains weak, TSMC said. The consequence for TSMC has been a "significant" reduction in demand.

Sales in the first quarter will likely fall to between NT$32 billion and NT$35 billion, TSMC said, well below the NT$87.48 billion in sales the company reported in the first quarter last year. The last time TSMC's sales were near the range forecast was in 2001, when the global technology industry hit the skids after the dot-com bubble burst.

TSMC said its gross profit margin will fall to between 1 percent and 5 percent, compared to 31.3 percent in the fourth quarter.

TSMC's quarterly earnings reports are watched carefully for signs of rising or falling demand because the company manufactures such a wide variety of chips for so many end products.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags tsmcsemiconductor

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?