Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

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

10/14/2021 | 03:40am EST
FILE PHOTO: Logo of Taiwan Semiconductor Manufacturing Co (TSMC) in Hsinchu

TAIPEI (Reuters) -Taiwan chip giant TSMC 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.

TSMC, the world's largest contract chipmaker and a key supplier to Apple Inc, posted a net profit of T$156.3 billion ($5.56 billion) in July-September, well above 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, which has forced automakers to cut production and hurt manufacturers of smartphones, laptops and consumer appliances.

"Our third quarter business was mainly supported by strong demand across all four growth platforms," Chief Financial Officer Wendell Huang told an analyst conference, referring to strong chip demand including those for smartphones, cars and "Internet of Things" - the concept of connecting household devices to the Internet.

"Moving into fourth quarter 2021, we expect our business to be supported by strong demand for our industry-leading 5 nanometre technology."

The company lifted its revenue growth forecast for 2021 to about 24%, versus an earlier forecast of above 20%, citing an "industry megatrend" of strong chip demand.

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.

For the quarter ending in December, TSMC forecast revenue of $15.4 billion to $15.7 billion, compared with $12.68 billion in the same period a year earlier.

TSMC shares 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.

They closed up 0.4% on Thursday, broadly in line with a 0.2% rise in the broader market.

($1 = 28.0950 Taiwan dollars)

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

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. 3.54% 171.18 Delayed Quote.21.97%
INTEL CORPORATION 3.10% 52.57 Delayed Quote.5.52%
Latest news "Economy & Forex"
01:58aJapan downgrades Q3 GDP on deeper hit to consumer spending
01:55aIndia's central bank holds rates as inflation, Omicron risks loom
01:51aThai joint business group sees GDP growth next year 3%-4.5%
01:41aChina's Shandong enlists state-run coal miner to help fund mega refinery complex
01:39aIndia's Star Health cuts IPO size to about $848 million
01:38aBOJ has no need to modify ultra-easy policy, says deputy gov
01:33aSome hedge funds may have lost millions on bets on China's Didi Global
01:30aBOJ Set to Decide on Pandemic Relief Extension in December or January
01:27aJapan to give massive tax breaks to companies that lift wages - draft plan
01:17aIndian shares rise as RBI holds rates, promises to keep supporting economy
Latest news "Economy & Forex"