TSMC expects second-quarter sales to surge on strong chip demand

A logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan August 31, 2018. REUTERS/Tyrone Siu

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  • See second-quarter revenue of $17.6 billion to $18.2 billion, up from $13.3 billion a year earlier
  • Q1 profit of T$202.7 billion vs. T$184.67 billion, analysts say
  • First quarter revenue up 36% YoY in US dollars

TAIPEI, April 14 (Reuters) – Taiwan’s TSMC (2330.TW) posted a better-than-expected rise in quarterly profit on Thursday and forecast a 37% increase in sales for the current quarter, the global chip crisis having kept the books full and allowed chipmakers to charge high prices.

TSMC, the world’s largest contract chipmaker and a major supplier to Apple Inc, reiterated on Thursday that it expects chip capacity to remain very limited this year, a shortage that has forced automakers and electronics manufacturers to cut production.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) forecast revenue of $17.6 billion to $18.2 billion for the quarter ending June 30, up from $13.29 billion a year earlier.

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The company expects chip demand to continue over the long term and was working with customers to ease shortages, Chief Executive CC Wei said during an online earnings briefing, calling it a “mega -trend” in the industry driven by demand for 5G and artificial intelligence. , as well as an increase in chips used in gadgets.

TSMC is working to address supply chain challenges with tool vendors, he added, referring to a cycle of shortages where chip makers are struggling to find the chips. needed for equipment to supply chipmakers like TSMC.

The company, which also has customers such as Qualcomm Inc (QCOM.O), has previously said it expects a strong acceleration in growth in the coming years due to strong demand for the chips that power everything. , from smartphones to cars. He has already increased capital spending for this year. Read more

The company said Thursday that net profit for the January-March quarter jumped 45% from a year earlier to B$202.7 billion ($7 billion). Analysts had expected a profit of $184.67 billion, according to an average of 19 estimates compiled by Refinitiv.

The first quarter was supported by better-than-expected customer demand for smartphones and high-performance computer chips, as well as strong demand for automotive-related chips, Wei said.

Revenue soared 36% to $17.57 billion, beating market expectations and surpassing the company’s estimated range of $16.6 billion to $17.2 billion.

Shares of TSMC have fallen about 6.8% so far this year, giving the company a market value of $511.1 billion. The stock closed flat on Thursday, against a 0.3% decline for the benchmark (.TWII).

($1 = 28.9510 Taiwan dollars)

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Reporting by Yimou Lee and Ben Blanchard; Editing by Sayantani Ghosh and Christopher Cushing

Our standards: The Thomson Reuters Trust Principles.

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