07.10.2001
June foundry revenues, down or flat

• Development: TSMC announced June revenue at NT$8.5bn, flat from May; UMC reported June revenue at NT$4.2bn, down 14% MoM.

• Analysis: 2Q01 thus has seen TSMC down 33% and UMC down 36% QoQ on revenues. Earlier discussions with both companies indicate that TSMC will maintain marginal breakeven during the 2nd quarter after a tax credit (NT$1.6bn per our estimates), and UMC may see net losses for the quarter.

• Primasia View: We remain cautious on the outlook of both companies in 2H01.

LindaLiu@Primasia.com +886-[0]2-2547-8867