Wafer foundry Liji Power expects revenue to fall again in the fourth quarter, with capital expenditure slashed by 43%.

CTOnews.com, October 16 (Xinhua)-- according to a report by Taiwan's Central News Agency, wafer foundry Liji Power expects its results to continue to decline in the fourth quarter. In response to previous market changes, capital expenditure will be slashed from the original $1.5 billion (about 10.815 billion yuan) to $850 million (about 6.128 billion yuan) this year, a drop of 43 percent.

CTOnews.com learned that Liji said at the corporate presentation that the operating peak of this year fell in the second quarter, with the reversal of mobile phones, televisions and cameras, image sensor and panel driver IC customers began to reduce production in May and June.

According to reports, due to customer inventory is still large, in the fourth quarter, in addition to image sensors and panel-driven IC factory customers continue to reduce production, DRAM customers also have production reduction demand, revenue is expected to decline further in the fourth quarter.

Data show that LSMC's cumulative revenue in the first three quarters was 61.724 billion New Taiwan dollars (about 13.95 billion yuan), an increase of 35% year-on-year and a gross profit margin of 49.5%.