Taiwan Semiconductor Profit Tumbles 94.5%

TAIPEI, Taiwan -- Taiwan Semiconductor(TSM Quote), the world's largest contract chipmaker, said first-quarter profit plunged by 94.5% as the global recession hit demand for its products.

The company Thursday said net income dropped to 1.56 billion New Taiwan dollars ($47.1 million) during the January-March quarter from NT$28.14 billion a year earlier.

Consolidated revenue fell 54.8% to NT$39.50 billion from NT$87.48 billion in the same quarter in 2008, the company said.

Taiwan Semiconductor blamed the economic recession for its precipitous profit decline.

"As a result of deepening economic recession worldwide and customers' inventory adjustment, first quarter saw a sharp decline in the demand for semiconductors across all applications," the company said.