Two Top-Tier Firms See Wafer Start Cutbacks in Q3 - Digitimes
Tweet
Share
E-mail
Get Alerts TSM Hot Sheet
Join SI Premium – FREE
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) and United Microelectronics Corporation (NYSE: UMC) have seen a cutback from clients on wafer starts for the third quarter, citing weaker demand for handsets and tablet PCs.
Digitimes said the cutback may be the result of companies over-stocking due to supply concerns stemming from the March 11th earthquake in Japan. Vendors are now delaying deliveries until the fourth quarter in order to return inventories to more normalized levels.
Taiwan Semi has cut its wafer start forecast from an increase of 10 - 12 percent to an increase of 7 - 9 percent. Sources indicate Taiwan Semi has implemented contingency measures to mitigate the impact of a possibly slow third quarter. Measures include flexible pricing schemes, according to sources.
United Micro also suggested clients have been cautious about placing orders. Average selling prices in the third quarter are likely to come under some pressure under slimmer orders. United Micro garners about 50 percent of its sales from the handset sector.
Digitimes said the cutback may be the result of companies over-stocking due to supply concerns stemming from the March 11th earthquake in Japan. Vendors are now delaying deliveries until the fourth quarter in order to return inventories to more normalized levels.
Taiwan Semi has cut its wafer start forecast from an increase of 10 - 12 percent to an increase of 7 - 9 percent. Sources indicate Taiwan Semi has implemented contingency measures to mitigate the impact of a possibly slow third quarter. Measures include flexible pricing schemes, according to sources.
United Micro also suggested clients have been cautious about placing orders. Average selling prices in the third quarter are likely to come under some pressure under slimmer orders. United Micro garners about 50 percent of its sales from the handset sector.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Brown-Forman CEO Lawson Whiting to retire after nearly 30 years
- Datavault AI names CBIZ CPAs as its new accounting firm
- Eupraxia Pharmaceuticals adds executives, shifts operations to Vancouver
Create E-mail Alert Related Categories
Corporate News, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
