Insightful analysis and commentary for the US and global equity investor
Contributors: Douglas McIntyre Jon C. Ogg

Previous Posts

Wednesday, October 11, 2006

Foundries: You Can Worry About Us Now

By William Trent, CFA of Stock Market Beat

Four months ago, we noted that the semiconductor foundries were all like “hey, things are cool with us. No worries, dude.”

Or more specifically:
While reiterating its expectations of double-digit quarterly revenue growth for the third quarter, United Microelectronics Corporation (UMC) anticipates its utilization rates will increase amid healthy inventory levels among key customers, according to company chairman and CEO Jackson Hu at a June 12 investors conference.

Hu stressed that there are no inventory concerns….

We thought otherwise, which brings us to today’s story from Electronic News:
Silicon foundry leader Taiwan Semiconductor Manufacturing Corp. Ltd. has seen a slowdown in sales for September, mirroring the experience of its smaller rival, United Microelectronics Corp. (UMC).

On an unconsolidated basis, TSMC sales totaled $811.8 million (26.8 billion new Taiwan dollars) a decrease of 0.5 percent from August and an increase of 6.5 percent over September 2005.
On a consolidated basis, net sales for September were $821.9 million ( 27.2 billion new Taiwan dollars,) a decrease of 0.3 percent from August.

Hu’s concerned now?

The author may hold a position in the securities discussed. A current list of the author's holdings is available here.

Powered by Blogger