Chip Makers Post Weak Results
Asian chip makers Taiwan Semiconductor Manufacturing Co., Hynix Semiconductor Inc. and Elpida Memory Inc. posted weak results on Thursday for the quarter ended Sept. 30 and some flagged that demand for chips will remain soft in coming months, highlighting how major component makers are suffering from slowing economies in Europe and the U.S.
TSMC, considered a bellwether for its client base, which includes U.S. technology companies Qualcomm Inc. and Nvidia Corp., reduced its capital-spending budget for the second time this year, citing deteriorating market conditions in a further sign of difficult times for chip makers. TSMC now expects its capital spending for this year to be $7.3 billion, down from $7.4 billion. The contract chip maker also trimmed its 2011 revenue growth target in U.S. dollar terms by half, after posting a worse-than-expected 35 percent decline in net profit for the third quarter.