By: Jeffrey Wu and Frances Huang
Taipei, Jan. 19 (CNA) Several foreign brokerages have cut their target prices for shares of Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, after the company gave weaker-than-expected sales guidance Thursday for the first quarter of this year.
In a research note, one Asian brokerage firm said that increasing weakness in global demand in recent months has prompted TSMC to issue a lower-than-expected sales forecast for the January-March period.
The falling demand boosted inventory levels in the global semiconductor industry, prompting TSMC to adjust its inventories, sending shipments lower in the first quarter.
As a result, the securities house has lowered its target price for TSMC shares to NT$254 (US$8.25) from NT$260, predicting that inventory adjustments could continue into the second quarter. [FULL STORY]