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Digitimes Research: Taiwan top foundries to see combined revenues decrease in 4Q13
Nobunaga Chai, DIGITIMES Research, Taipei [Friday 29 November 2013]

Taiwan's top-three IC foundries will see their combined revenues decline 9.4% sequentially in the fourth quarter of 2013, due mainly to a fall in product ASPs, according to Digitimes Research.

Combined revenues for Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics (UMC) and Vanguard International Semiconductor (VIS) are forecast to total US$6.12 billion in the fourth quarter, down from US$6.76 billion in the third, Digitimes Research said. The top-three IC foundries have experienced a decline in capacity utilization rates, which will cause wafer ASPs for the fourth quarter to fall, Digitimes Research indicated.

Price cuts launched by their fellow foundry houses in a bid to compete for orders will be another reason for falling ASPs during the fourth quarter, Digitimes Research observed.

On the demand side, demand for consumer electronics chips has slowed down on seasonal factors, while demand for computer and communications chips is still being negatively affected by disappointing sales of PCs and high-end smartphones, Digitimes Research said.

TSMC, UMC and VIS saw their combined revenues edge up 4.4% sequentially in the third quarter of 2013, indicating a particularly weak third quarter for the foundries, Digitimes Research noted.

In addition, with Samsung Electronics and Globalfoundries managing to improve their 28nm production yield rates, TSMC has seen growth in the revenues generated from its 28nm processes decelerate.

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