Chip Maker Reports Sales Slump in July

Taiwan Semiconductor Manufacturing Co., the world’s largest contract chip maker, reported that its July sales dropped 13%, the first slump in sales in five months and further evidence of market expectations for a tough third quarter.

Sales at the world’s largest supplier of made-to-order chips fell to $400 million, down from $460 million in June.

Taiwan Semiconductor had warned last month that its capacity use and chip prices will fall as a recovery from the chip industry’s worst year on record in 2001 falters.