TSMC <2330.TW>, the world's biggest contract chip maker, reported its weakest quarterly earnings in nearly eight years on Thursday as a slowing global economy hit demand for technology products.
But the chip foundry market, dominated by TSMC, UMC <2303.TW> and Chartered
Taiwan Semiconductor Manufacturing Co Ltd (TSMC)
Profit tumbled 94.5 percent from T$28.14 billion a year ago, but beat a consensus T$1.2 billion forecast of six analysts surveyed by Reuters.
As a result of deepening economic recession worldwide and customers' inventory adjustment, first quarter saw a sharp decline in demand for semiconductors across all applications, TSMC said in a statement.
On Wednesday, cross-town rival UMC
TSMC's results came as the Taipei stock market closed on Thursday. TSMC shares surged 7 percent to their daily limit and UMC shares also rose limit up, in line with the main TAIEX's <.TWII> rally on hopes of Chinese investment to the island.
(Reporting by Baker Li, Editing by Anshuman Daga)