Apple’s iPhone 13 demand drives TSMC’s strongest revenue growth in past 10 quarters


Taiwan’s TSMC predicts revenue growth that could be the highest in 10 quarters, saying it’s “very confident” about its long-term prospects and touting demand for high-tech chips used in data centers and vehicles electrical. Also Read – Samsung Galaxy S23 Could Ditch Exynos Entirely in favor of Qualcomm Chipset

The outlook for the world’s largest contract chipmaker follows stunning results for the April-June period that underscored resilient demand amid a chip slump caused by smartphone and laptop sales fueled by the pandemic. Also read – There’s a shortage of chips for machines that make chipsets: Intel, chipmaker Apple

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) is a major supplier to Apple Inc and the results also show demand for the iPhone 13 despite record global inflation and concerns of a looming recession. Also Read – Apple A16 Chipset Will Be Based On 5nm Manufacturing

They are likely to allay some concerns after several chipmakers, including Micron Technology Inc (MU.O), recently sounded the alarm that chip shortages have made them a glut in some sectors as the surge in the Inflation and COVID-19 curbs in China have crushed demand for electronics.

The results helped European chip stocks including STMicroelectronics and Infineon counter a drop in the pan-European STOXX 600 index.

TSMC, whose customers include chip majors such as Qualcomm Inc, also reported that demand is waning from consumer electronics customers who will draw down chip inventories in the coming quarters through 2023.

“After two years of stay-at-home requests due to the pandemic, this kind of adjustment is reasonable in our opinion,” TSMC chief executive CC Wei said during an online briefing on the results.

But he said long-term demand for TSMC’s chips was “firmly in place” and any downside cycles ahead would not be as significant as in 2008.

“Despite continued inventory adjustment and macroeconomic uncertainties, the structural growth trajectory for long-term semiconductor demand remains firm. We expect our capacity to remain tight and our business to be more resilient.

Other chipmakers such as Samsung Electronics also highlighted demand from data center customers.


TSMC said its capital spending this year will hover around the lower end of its previous forecast of $40 billion to $44 billion, with some spending pushed back to next year due to a delay in the delivery of some equipment. chip manufacturing.

He also said inflation posed a challenge, echoing comments from Intel Corp , which said it planned to raise chip prices due to rising costs.

In May, the Japanese business daily Nikkei reported that TSMC had warned customers for the second time in less than a year that it planned to raise prices.

TSMC did not confirm the report, saying instead that its pricing was strategic and not opportunistic.

Shares of TSMC have fallen about 23% so far this year – valuing the company at $408.3 billion – against a 35% drop in the Philadelphia Semiconductor index.

TSMC said it expected third-quarter revenue to reach between $19.8 billion and $20.6 billion, up from $14.88 billion a year earlier. It raised its revenue growth forecast for 2022 to the mid-1930s from an earlier range of 26% to 29%.

In the second quarter ended June 30, TSMC’s revenue rose 36.6% and net profit jumped 76.4% – the biggest jump in eight quarters – easily beating market estimates.

TSMC’s net profit for April-June hit a record $237.0 billion ($7.94 billion), above the $219.13 billion average of 19 analyst estimates compiled by Refinitiv.


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