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Thursday, 17 October 2013 10:23

TSMC warns of 11% revenue drop in Q4

Written by Fudzilla staff



CEO: Mobile market slowing down

TSMC is expecting to see a sharp fall in revenue in Q4. The company estimates that its revenue will drop 11 percent, on the back of softer demand for all things mobile.

All major phone and SoC makers except Apple are past the middle of their product cycle, flagship Android phones are coming out in early 2014, and so are new chips from big players like Qualcomm.

"The mobile product boat is slowing down," said TSMC Chairman and CEO Morris Chang. He added that the dip is mainly due to soft demand for high-end smartphones, which are already past their prime.

Although the fourth quarter is usually kind to chipmakers, the smartphone market has its own rules, hence this is the time of year when TSMC sees the biggest drop in shipments. It also reported weak Q4 results last year.

It is basically a new seasonal trend, no reason to worry. TSMC still expects to end the year on a high note, with double-digit sales growth. As for Q3, TSMC's revenue was $1.8 billion, or 5 percent up year-on-year. It also happens to be a new record for TSMC.

More here.

Last modified on Thursday, 17 October 2013 10:27

Fudzilla staff

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