Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a supplier to Apple Inc, yesterday reported a record high revenue of NT$127.59 billion (US$4.4 billion) for last month, up 3.8 percent month-on-month and 24.9 percent year-on-year.
Last month’s figure marked the second consecutive monthly record, after reaching NT$122.88 billion in August, the company said.
TSMC, the world’s largest contract chipmaker, said that while it had to halt shipments to Huawei Technologies Co (華為) due to the US’ blacklisting of the Chinese company, demand from other clients remained high.
Photo: Reuters
TSMC’s consolidated revenue was NT$356.43 billion in the third quarter, an increase of 14.71 percent from a quarter earlier, which beat its target of 9.3 percent growth.
On an annual basis, third-quarter revenue rose from NT$293 billion a year earlier and beat the average forecast of NT$337.2 billion by analysts, a Bloomberg poll showed.
The increase was driven mainly by solid demand for chips for 5G equipment, Internet of Things (IoT) and high-performance applications, as well as for 5-nanometer chips for Apple’s next generation iPhone 12, and its iPad Air and iPad Pro, the chipmaker said.
In the first three quarters, accumulated sales totaled NT$977.72 billion, up 29.9 percent from a year earlier, company data showed.
TSMC in July raised its outlook for this year, projecting that revenue would grow more than 20 percent.
Sales for the first nine months suggest that the chipmaker is on track to meet its growth forecast as the COVID-19 pandemic fueled demand for home computing equipment.
Strong demand for 5G chips is expected to boost TSMC’s sales by 8 to 10 percent in the fourth quarter, while its revenue for this year is likely to show more than 20 percent growth, said Dan Wang, a technology analyst at research firm Gavekal Dragonomics (龍洲經訊).
“Although TSMC can overcome the short-term hit of losing Huawei, it will face a bigger problem if the US government continuously limits its ability to work with Chinese companies, which make up a quarter of its clients today and will continue to keep growing,” Wang said.
Shares rose 2.26 percent yesterday to close at NT$453 in Taipei trading, after surging more than 80 percent since March, a sign that the company is bouncing back from disruptions caused by COVID-19.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in