Taiwan Semiconductor Manufacturing Company (TSMC) revenues were down 1.9% sequentially in January but up 8.1% on year. The revenues in January were NT$76.62 billion ($2.48 billion), which was a new six-month low due mainly to seasonal factors such as fewer working days.
For the first quarter of 2017, TSMC expects revenues of between NT$236 billion ($7.56 billion) and NT$239 billion ($7.66 billion), down 8.8% to 10% from the previous quarter when the company generated a record NT$262.23 billion ($8.51 billion).
The expected gross profit margin is between 51.5% and 53.5% with operating profit margin between 40.5% and 42.5%. Capital expenditure for 2017 is to planned at around $10 billion.
Lora Ho, SVP and CFO of TSMC blames mobile product seasonality and slightly above seasonal supply chain inventory at the end of 2016 as the reasons for the forecast quarter fall.
