TSMC has bucked a slowdown in areas of the chip market within the face of rising costs, fears of a world recession and Covid disruptions in China.
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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 akin to Apple’s iPhone.
The Taiwanese agency, which makes chips for different firms, 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 firms, together with the newest semiconductors for Apple and Qualcomm in addition to SoftBank-owned Arm. The corporate has bucked a slowdown in areas of the chip market within the face of rising costs, fears of a world recession and Covid disruptions in China.
The November income report places TSMC on monitor to hit its beforehand said fourth quarter steering 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 monitor evaluating to what the administration guided 2 months in the past, regardless of important enterprise slowdowns in lots of different semi names,” Dale Gai, semiconductor analyst at Counterpoint Analysis, instructed CNBC by way of e mail.
Gai stated “high-end smartphones” such because the A16 chip for Apple’s iPhone and the newest semiconductor from Qualcomm contributed to the “majority of its (TSMC’s) seasonal power.”
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 essential semiconductor producer. It has an enormous set of shoppers that depend on it for probably the most cutting-edge chips.
It has additionally been caught up in the middle of the U.S.-China tech battle over chips. The US has sought to chop China off from essential chips and instruments whereas attempting 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 essential position that TSMC will play within the American semiconductor sector.
Apple CEO Tim Cook dinner additionally attended the occasion and stated the iPhone maker would buy TSMC’s U.S.-made chips.
Whereas TSMC’s November income is getting a lift from Apple, analysts are apprehensive about weaker orders subsequent yr.
“The actual check for the corporate shall be” within the first half of 2023, stated Sze Ho Ng, analyst at funding financial institution China Renaissance.
