TSMC Q3 profit jumps 80%, beats market expectations

TSMC Q3 profit jumps 80%, beats market expectations
FILE PHOTO: A logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan August 31, 2018. REUTERS/Tyrone Siu

TAIPEI: Taiwanese chipmaker TSMC posted an 80 per cent surge in third-quarter net profit on Thursday (Oct 13), boosted by strong sales of its advanced chips used in data centres and electric cars, despite a slowdown in the global chip industry due to economic headwinds.

This is the company’s strongest quarterly net profit growth in two years.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker and a major Apple Inc supplier, said net profit for the July-September period rose to T$280.9 billion (US$8.81 billion) from T$156.3 billion a year earlier.

That compared with the T$265.64 billion average of 21 analyst estimates compiled by Refinitiv.

TSMC’s business has been boosted by a global chip shortage that was sparked by pandemic-fuelled sales of smartphones and laptops. While the shortage has eased, analysts say the company’s dominance in making some of the world’s most advanced chips has kept its order book full.

Revenue for the quarter climbed 36 per cent to US$20.23 billion, versus TSMC’s prior estimated range of US$19.8 billion to US$20.6 billion.

Shares in TSMC have fallen almost 36 per cent so far this year, giving it a market value of US$323.7 billion. The stock fell 0.6 per cent on Thursday, compared with a 2.1 per cent fall for the benchmark index.


Source: Reuters/gs