TSMC sales down 45%, inventory now at 100 day supply

  • Taipei (Taiwan) - In a real-world example of how tightly wound manufacturing efforts are to global consumption, the Taiwan Semiconductor Manufacturing Company (TSMC) is reporting it now has a 100 day-of-inventory (DOI) supply due to significantly lowered sales.

    Two of TSMC's major customers, Nvidia and Xilinx, have revised their Q4 revenue down 40% to 50% and 15% to 25%, respectively - which also translates to a decrease in future orders on anticipated market needs. TSMC is expecting to see a 35% to 45% overall sales decline sequentially, and a continuing increase in DOI - which is up from 90 days in Q4'2008, an increase of 11.1%.

    TSMC's revenues were down 20.2% in Q3'2008, which means a 35% to 45% additional decrease will be in line with the year-on-year decline seen in December, 2008 of 54.8%.

    TSMC is not alone in their growing inventory supply. Other manufactures in the DRAM and flash markets have seen significant increases in inventory oversupply - so much so that as of mid-January, their overall global production is down 22% in an attempt to stabilize prices, according to a published IDC report. The production reduction plan appears to be working as several market research firms are now noting bottoms seen within the last week or two, including slight up-ticks in the single-digit percentage range for NAND flash and DDR2.

    See DigiTimes.

Related Stories

How Messiness and Organization Affect the Human Brain

Key Trends in Cognitive Systems Spending

Guerrilla Marketing Tactics That Are Still Relevant in 2017