TSMC sees resilient chip sales boosting Q3; electronics demand cooling
The Hindu
TSMC said it expected third-quarter revenue to surge to between $19.8 billion and $20.6 billion, up from $14.88 billion a year earlier
Taiwan's TSMC forecast revenue growth that could be the highest in 10 quarters, saying it was "highly confident" about its long-term prospects and touted demand for high-tech chips used in 5G networks and artificial intelligence.
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Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker and a major Apple Inc supplier, said it expected third-quarter revenue to surge to between $19.8 billion and $20.6 billion, up from $14.88 billion a year earlier.
In the second quarter ended June 30, TSMC's revenue rose 36.6%, and net profit surged 76.4% - the biggest jump in eight quarters and handily beating market estimates.
The strong results and outlook underscore the red-hot demand for TSMC's chips amid a two-year global shortage and ease some doubts after several chipmakers including Micron Technology Inc recently sounded an alarm about a sudden glut.
They are also a testament to the demand for Apple's iPhone 13 despite record global inflation and worries of a looming recession. Smartphone sales at other companies such as market leader Samsung Electronics Co Ltd have declined following a pandemic-fuelled surge in demand.
Long-term chip demand remains "firmly in place", TSMC's Chief Executive Officer C. C. Wei told an online earnings briefing. He said he expected capacity utilisation at the company's chip fabrication plants to stay "healthy" next year.