MediaTek Inc (聯發科), the nation’s biggest mobile phone chipmaker, yesterday drastically lowered its sales outlook for the fourth quarter, saying demand had weakened faster than expected as the global economic slowdown spread to emerging markets.
This is the latest in a slew of outlook adjustments by Taiwanese semiconductor companies this week, including the world’s top contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電).
On Monday, TSMC cut its fourth-quarter revenue target by more than 8 percent to between NT$63 billion (US$1.88 billion) and NT$65 billion. The chipmaker also lowered its expectation for fourth-quarter gross profit margin to between 30 percent and 32 percent and slashed its operating profit margin to between 17 percent and 19 percent, down 4 percentage points from its previous estimates.
In its filing to the stock exchange yesterday, MediaTek said revenue may plunge by more than 30 percent this quarter from NT$28.05 billion in the third quarter, rather than a decrease of between 9 percent and 16 percent estimated in October.
“The global financial storm has started to impact on demand in the emerging markets. End demand for all products is lower than expected,” the Hsinchu-based firm said in the filing.
MediaTek, which is also the biggest handset chip supplier in China, said its forecast for gross margin may hold steady this quarter at its third-quarter level of 54.3 percent, the filing states.
Last month, the company’s sales fell 32.6 percent month-on-month, or 7.6 percent year-on-year, to NT$6.2 billion, hitting the lowest level in nine months since February, it said in a separate filing yesterday.
In the first 11 months of the year, revenues amounted to NT$84.68 billion, up 13.8 percent from a year ago, it said.
Shares of MediaTek rose 0.26 percent to NT$195 yesterday, outperforming the benchmark index, which dropped 1.21 percent. However, the stock has plunged 40 percent this quarter from NT$325 on Sept. 30.
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