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Taiwan top foundries Q1 revenue to drop slightly by 1.5%

Taiwan top foundries Q1 revenue to drop slightly by 1.5%

TAIPEI: Combined revenue at Taiwan’s top three integrated circuit (IC) foundries will fall slightly in the first quarter of 2015 due to inventory adjustments by major clients, according to research firm Digitimes Research.

It is estimated that combined revenue at Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics Corp. (UMC) and Vanguard International Semiconductor Corp. (VIS) will reach US$8.49 billion in January-March, down 1.5 percent from the previous quarter.

The drop is the result of inventory adjustments at U.S.-based chipmaker Qualcomm Inc. as well as integrated device manufacturer (IDM) customers, including Texas Instruments Inc., Infineon Technologies AG and NXP Semiconductors N.V., Digitimes Research indicated in a March 16 report.

In the final quarter of 2014, the top-three Taiwanese IC foundries saw combined revenue rise 3.4 percent to US$8.62 billion, led by a significant increase in sales of TSMC’s 20 nanometer chip, the research company said.