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The world's top two chip foundries saw their second-quarter sales fall well behind the totals achieved during the year-ago quarter, the company's latest monthly sales figures reveal.

TSMC achieved sales of TWD56.02bn ($1.76bn) during the three months to 31 May 2005, 13.6 per cent below the TWD64.87bn ($2.03bn) it reported for Q2 FY2004.

Likewise, UMC's Q2 FY2005 revenue, TWD19.84bn ($621m), was 32 per cent lower than the TWD29.18bn ($914m) sales it reported this time last year.

TSMC's sales rose steadily month on month through the quarter, whereas UMC's figures show a dip between April and May, with sales rising slowly again during June.

The two chip makers regularly report monthly sales figures, but finalised Q2 FY2005 numbers, including income and gross margin details, will not be published until the end of the month at the earliest.

Both firms' Q2 figures were always going to be depressed, largely as a result of the inventory correction that has been rippling through the chip industry for the last four quarters or so. Its effects are expected to come to an end this quarter, paving the way for stronger demand in Q3, but with slowing consumer demand at the end of the supply chain, the gains may be small. ®

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