Foundry chipmakers have seen short lead-time orders lose momentum, according to industry sources. Short lead-time orders were a key factor contributing to their revenue growth in October and better-than-expected results in the third quarter.
A surge of short lead-time orders was previously expected to emerge around this time amid low inventories in the semiconductor supply chain, the sources pointed out.
But fabless IC clients are now unable to meet order estimates placed earlier with the foundries, and have requested delivery to be delayed until after the first quarter of 2012, the sources indicated.
Major foundry players including Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) might post double-digit sequential dips in revenues for the first quarter of 2012, due to a slowdown in orders, the sources said. Gross margin and operating margin for the quarter will also come under downward pressure along with their utilitzation rate declines, the sources added.
But starting from the middle of the second quarter, foundries are expected to see orders pick up with clearer order visibility, the sources believe.
TSMC at its most-recent investors meeting estimated consolidated sales for the fourth quarter of 2011 would slip 1-3% sequentially. The firm reported higher-than-expected results for the third quarter driven short lead-time orders.
UMC has guided wafer shipments for the fourth quarter would decrease about 10% sequentially with ASPs up 5%. It did not provide a revenue guidance.
Both TSMC and UMC have not disclosed their revenue forecast for the first quarter of 2012.
Article translated by Jessie Shen
