TSMC chairman Morris Chang has warned that his outfit's previous target of 20 per cent  sales growth for 2011 was  not going to happen He said the target would  not be reached due to disappointing end-market demand in line with weaker-than-expected global economic growth.

Speaking to  the local Chinese CTS telly station Chang noted that company revenue growth should outperform the industry average in 2011. TSMC already realized in the second quarter that the annual 20 per cent sales growth for 2011 was a little too optimistic. Utilisation rates have dropped, even for high-end manufacturing processes. TSMC was finding that customers' projections had been too ambitious.

While new foundry capacity has been coming online, demand has been sluggish particularly from the EU and the US. Chai estimated the global foundry market growth for 2011 at only 5 percent, below the 7 per cent predicted by TSMC. Chai also forecast that contract chipmakers including TSMC would see a sequential drop in third-quarter usage rates, and possibly flat growth in the fourth quarter.