TSMC Sales Down 10% This Month (December 2012)

Smartphone and tablet chip orders fell, so income dropped as well

After the November decline of 11.4% in revenue, there wasn't much chance of December being any easier on the finances of Taiwan Semiconductor manufacturing Company.

Sure enough, while fourth quarter cumulative sales are still expected to climb 8% sequentially, early estimates say that TSMC will probably report a decrease in revenues of over 10% for the month of December.

Some may find it strange that this is happening during the holidays, but it really isn't.

While consumer orders for electronics of all kinds always grow during this period, the [products sold to them always use parts ordered weeks or months in advance. That goes for TSMC-made integrated circuits as well.

Reduced Smartphone and tablet IC demand is described as a primary cause for TSMC's financial evolution this month.

The first quarter of 2013 will show a further drop, though milder. A rebound is projected for Q2.

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