Analysts cuts forecast for TSMC

Mark LaPedus, EE Times
(08/26/2008 10:38 AM EDT)
 
SAN JOSE, Calif. -- A bad sign for the industry? An investment banking firm has cut both its third- and fourth-quarter estimates for Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC).

Mehdi Hosseini, an analyst with Friedman Billings Ramsey & Co. Inc. (FBR), cut his forecast due to lower-than-expected demand from TSMC's foundry customers. It also means that the overall chip industry could be slowing in the second half of 2008.

''Recent checks suggest to us that overall wafer shipments in 3Q could be up only 5 percent quarter-over-quarter, below previous expectations of up 7 percent to 8 percent quarter-over-quarter,'' he said in a report. ''This is attributed to cuts in shipment by key/large customers from the communication (Marvell, Qualcomm, TI), graphics, and consumer sectors.''

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