TSMC’s profit is the highest in 2 years as sales of high-tech chips increase

  • Q3 profit of T$280.9 billion vs. T$265.64 billion, analysts say
  • Third-quarter revenue up 36% year-on-year to $20.23 billion

TAIPEI, Oct 13 (Reuters) – Taiwanese chipmaker TSMC (2330.TW) posted an 80% rise in third-quarter net profit on Thursday, its strongest growth in two years, boosted by strong sales of its advanced chips used in data centers and electric car.

TSMC’s business swelled on the back of a global chip shortage that was triggered by pandemic-fueled smartphone and laptop sales. As the shortage eased and companies like AMD (AMD.O) and Micron Technology Inc (MU.O) warned of weakening demand, analysts say TSMC’s dominance in the manufacturing some of the world’s most advanced chips has kept its order book full.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker and a major supplier to Apple Inc (AAPL.O), said net profit for the July-September period fell was T$280.9 billion ($8.81 billion), down from T$265.64. billion average of 21 analyst estimates compiled by Refinitiv.

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Revenue for the quarter increased 36% to $20.23 billion, compared to TSMC’s earlier estimated range of $19.8 billion to $20.6 billion.

Shares of TSMC have fallen nearly 36% so far this year, giving it a market value of $323.7 billion. The stock fell 0.6% on Thursday, versus a 2.1% decline for the benchmark (.TWII).

TSMC said it has seen little impact from the current bear cycle in the chip sector and expects capacity to remain tight as long-term demand for TSMC’s chips is “firmly in place.” Read more

The company, Asia’s most valuable publicly traded company, whose customers also include chip majors such as Qualcomm Inc (QCOM.O), has repeatedly said its business will continue to be boosted by a ” mega-trend” in the industry, driven by demand. for high-performance computer chips for 5G networks and data centers, as well as the increased use of chips in gadgets and vehicles.

($1 = 31.8870 Taiwan dollars)

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Reporting by Ben Blanchard and Sarah Wu; Editing by Christian Schmollinger, Edmund Klamann and Ana Nicolaci da Costa

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