TSMC reports flat Q4 sales
TSMC, the world's biggest contract chipmaker, has seen its smallest year on year sales growth in four months, according to semiconductor analysts JP Morgan. Reduced industry demand has resulted in a flat Q4 for the Taiwanese company, as well as rival UMC. Investors are hoping the expanding mobile market will increase sales in 2011.
JP Morgan analyst, Rick Hsu, said that new products like tablets and smartphones should be a key driver, while major chipmakers overseas would also speed up outsourcing manufacturing to foundries.
"Q4 has been slow, but it should be a good year for foundries next year," said Hsu. "TSMC is trading at about 2.7 times its book value and our target is 3.9 times. UMC is about at its book value now and our target is 1.2 times, so there's room for them to rise."
UMC said its November sales rose 14% from last year but achieved its smallest monthly sales in five months.
