Taiwan Semiconductor Manufacturing Company Ltd. (TAIEX: 2330, NYSE: TSM), ("TSMC" or "the Company") the world's largest dedicated semiconductor foundry company, announced today its net sales for May 1998.
Net sales for May 1998 increased 29.6% over the same period a year ago to NT$4,056 million as a result of an increase in both the average selling price (ASP) and unit sales of 8-inch equivalent wafers. Unit sales of 8-inch equivalent wafers rose 6.9%, while the ASP increased 21.6% primarily due to a better product mix and favorable currency movement.
On a sequential basis, net sales declined by 10.4% from NT$4,525 million in April due to an 8.4% drop in unit sales of 8-inch equivalent wafers and a 3.1% decline in ASP. This was mainly due to softness in worldwide demand, particularly in Asia.
The semiconductor industry continues to be faced with a challenging environment in 1998 as the economic slowdown in the Asia-Pacific region, oversupply in component products and pricing pressures are expected to remain unchanged in the foreseeable future. As a result, TSMC expects the foundry market to remain soft well into the third quarter of 1998. Given the above, TSMC expects revenue for the second quarter of 1998 to be lower than the first quarter revenue of NT$15 billion.