TSMC July sales down over 12% from June

08/10/2020 09:23 PM
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Taipei, Aug. 10 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) saw its sales in July fall more than 12 percent from a month earlier, likely the result of a loss of orders from Chinese telecom and phone brand Huawei amid trade sanctions imposed by the United States.

In a statement, TSMC said its consolidated sales in July totaled NT$105.96 billion (US$3.59 billion), down 12.3 percent from a month earlier, but it was still the third highest total for the year behind NT$120.88 billion in June (an all-time high) and NT$113.52 in March.

The July sales were also 25 percent higher than in July 2019 on strong demand for TSMC's advanced technology processes, analysts said.

At an investor conference in mid-July, TSMC Chairman Mark Liu (劉德音) said his company stopped taking orders from Huawei on May 15 due to the U.S.-China trade dispute, and he expected TSMC to fill its outstanding orders to Huawei by Sept. 14.

Liu said at the time, however, that the void left by Huawei was being quickly filled by other international clients eager to capitalize on the newly available capacity to place orders with TSMC.

At the conference, TSMC expected its consolidated sales for the third quarter to range between US$11.2 billion and US$11.5 billion, the average of which would be 9.3 percent higher than the sales of a quarter earlier.

For that forecast to be met, TSMC will need to see its revenue stage a rebound in August and September, but analysts felt it was possible giving the strong demand for emerging technologies, such as 5G applications and high performance computing devices.

Analysts said TSMC's orders for the third quarter are expected to largely come from Taiwan's integrated circuit designer MediaTek Inc., and U.S.-based IC giants such as Advanced Micro Devices Inc., Nvidia Corp. and Xilinx Inc.

In the first seven months of this year, TSMC's consolidated sales totaled NT$727.26 billion, up 33.6 percent from a year earlier.

Analysts said TSMC is expected to post higher sales in the fourth quarter to achieve its goal of a more than 20 percent year-on-year sales increase in 2020.

(By Chang Chien-chung and Frances Huang)

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