TSMC has bucked a slowdown in areas of the chip market within the face of rising costs, fears of a worldwide recession and Covid disruptions in China.
Rafael Henrique | Sopa Images | Lightrocket | Getty Images
TSMC, the world’s largest contract chipmaker, on Friday reported a surge in income in November thanks partly to orders of semiconductors for high-end smartphones similar to Apple’s iPhone.
The Taiwanese agency, which makes chips for different corporations, stated November income totaled 222.71 billion new Taiwan {dollars} ($7.27 billion), a 50.2% year-over-year rise.
TSMC makes chips for a wide selection of corporations, together with the most recent semiconductors for Apple and Qualcomm in addition to SoftBank-owned Arm. The firm has bucked a slowdown in areas of the chip market within the face of rising costs, fears of a worldwide recession and Covid disruptions in China.
The November income report places TSMC on monitor to hit its beforehand said fourth quarter steerage of between $19.9 billion and $20.7 billion. In October and November, TSMC’s income totaled round $14.1 billion.
“TSMC’s Oct/Nov revenues are on track comparing to what the management guided 2 months ago, despite significant business slowdowns in many other semi names,” Dale Gai, semiconductor analyst at Counterpoint Research, informed CNBC by way of e mail.
Gai stated “high-end smartphones” such because the A16 chip for Apple’s iPhone and the most recent semiconductor from Qualcomm contributed to the “majority of its (TSMC’s) seasonal strength.”
The analyst stated some chips for so-called high-performance computing additionally contributed to the robust set of numbers.
TSMC is arguably the the world’s most necessary semiconductor producer. It has an enormous set of purchasers that depend on it for essentially the most cutting-edge chips.
It has additionally been caught up within the center of the U.S.-China tech battle over chips. The United States has sought to chop China off from important chips and instruments whereas making an attempt to reshore semiconductor manufacturing.
Earlier this week, TSMC introduced the opening of a second chip plant in Arizona, upping its funding within the state from $12 billion to $40 billion. President Joe Biden was on the occasion the place the funding was introduced, underscoring the important position that TSMC will play within the American semiconductor sector.
Apple CEO Tim Cook additionally attended the occasion and stated the iPhone maker would purchase TSMC’s U.S.-made chips.
While TSMC’s November income is getting a lift from Apple, analysts are fearful about weaker orders subsequent 12 months.
“The real test for the company will be” within the first half of 2023, stated Sze Ho Ng, analyst at funding financial institution China Renaissance.