The month will continue bringing narrower year-on-year revenue drops for Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC), and the companies would display signs of gradual chip recovery.

The market watchers say that they hope TSMC to post unconsolidated revenues of NT$25-26.3 billion (US$764-794 million) in June, representing a 7.8-12.3% decline from NT$28.51 billion in June 2008.

On the other hand, the revenues for UMC for June would most probably reach NT$8 billion, down 1.3% on year.

From March through May, both TSMC and UMC confirmed monthly revenue growth, after a slow Q1. The previous report also specifies that TSMC forecasts its Q2 revenues would most probably increase enormously from Q1.

During the first quarter 2009, TSMC saw revenues and net income decreasing 38.8% and 87.5%, respectively, compared to fourth-quarter 2008.

Third straight quarterly loss was witnessed by UMC in the first quarter of this year.

It has been revealed by industry sources in Taiwan that TSMC has steadily improved yields at its 40nm process technology, and is also seeking other alternatives to reduce the impact on supply to its GPU customers.