Taiwan’s TSMC posts 13.8% rise in Q3 profit on global chip demand surge

The logo of Taiwan Semiconductor Manufacturing Co (TSMC) is pictured at its headquarters in Hsinchu, Taiwan, January 19, 2021. REUTERS/Ann Wang/File Photo GLOBAL BUSINESS WEEK AHEAD

  • Q3 profit T$156.3 bln vs T$149 bln market forecast
  • Q3 revenue up 22.6% on year in U.S. dollar terms

TAIPEI, Oct 14 (Reuters) – Taiwan chip giant TSMC (2330.TW) posted a 13.8% jump in third quarter profit on Thursday on the back of booming demand for semiconductors to power smartphones and other gadgets during the COVID-19 pandemic amid a supply crunch.

July-September net profit for TSMC, the world’s largest contract chipmaker and a key supplier to Apple Inc (AAPL.O), came in at T$156.3 billion ($5.56 billion), well ahead of the T$149 billion average of 22 analyst estimates compiled by Refinitiv.

Advanced chips made by TSMC, formally known as Taiwan Semiconductor Manufacturing Co , are used in everything from high-end smartphones like Apple’s newly unveiled 5G iPhone 13, to artificial intelligence, cars and a wide variety of lower-end consumer goods.

TSMC and Taiwan in general have also become central in efforts to resolve a pandemic-induced global chip shortage that has forced automakers to cut production, and hurt manufacturers of smartphones, laptops and even consumer appliances.

TSMC’s revenue for the quarter climbed 22.6% to $14.88 billion, in line with the company’s prior estimated range of $14.6 billion to $14.9 billion.

Shares of TSMC have risen about 8.5% so far this year, giving it a market value of $526.3 billion, more than double that of competitor and client Intel Corp (INTC.O).

($1=28.0950 Taiwan dollars)

Reporting by Yimou Lee and Ben Blanchard; Editing by Christopher Cushing and Ana Nicolaci da Costa

Our Standards: The Thomson Reuters Trust Principles.

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