(Corrects headline, lead paragraph to show TSMC, UMC posted,
not forecast, lower June sales)
* TSMC's June sales up 1.5 pct y/y, UMC down 11.24 pct
* TSMC, UMC on third consecutive monthly sales decline in
* Recovery weaker than expected in Q3 - analyst
TAIPEI, July 8 World's top two chipmakers,
Taiwan Semiconductor Manufacturing Co Ltd and United
Microelectronics Corp , posted a decline in sales for a
third consecutive month in June amid weaker global demand and as
foundries took time to digest inventories stocked up after the
Japan earthquake in March.
Into the third quarter, analysts forecast a flat to slower
recovery, tuning down from earlier optimism that the industry
might rebound in the traditional high season.
"The industry is worried about a high season not being high
in the third quarter this year," said Kevin Lin, a vice
president at Fuh Hong Financial Planning. "It will still be
better than the second quarter but not as big a recovery as
TSMC , the world's biggest contract chipmaker, said
on Friday that sales in June rose 1.5 percent from a year
earlier, much slower than May's 6.3 percent growth and March's
Smaller cross-town rival UMC sales in the same month
dropped for a second consecutive month, down 11.13 percent from
a year earlier.
Semiconductor inventory levels at chip suppliers worldwide
are believed to have risen for a seventh consecutive month as
the industry rebuilds depleted stockpiles and prepares for
expected increases in demand, Research company IHS iSuppli said
In the face of weaker demand, local newspapers reported this
week that TSMC might cut full-year capital expenditure by 10
percent to $7 billion, and UMC might follow suit.
Late last month, traders and fund managers said Merrill
Lynch had downgraded TSMC, citing in part a possible slowdown in
orders from Apple Inc .
For a table on TSMC's website, see here
For a table on UMC's website, see here
(Reporting by Clare Jim; Editing by Chris Lewis)