Taiwan Semiconductor Manufacturing Co (TSMC) raised its full year revenue forecast after recording its highest-ever quarterly profit in Q3, citing strong demand for 5G smartphones and IoT silicon.
Net profit increased 35.9 per cent year-on-year to TWD137.3 billion ($4.8 billion) and revenue 21.6 per cent to TWD356.4 billion. It stated 5nm chips accounted for 8 per cent of its revenue, 7nm 35 per cent and 16nm 18 per cent.
Bloomberg reported CFO Wendell Huang said full year revenue is expected to increase 30 per cent, up from its previous forecast of 20 per cent.
In a statement, Huang said TSMC’s business in Q3 was boosted by “strong demand for our advanced technologies and specialty technology solutions, driven by 5G smartphones, HPC and IoT-related applications”.
He predicted Q4 sales of between $12.4 billion and $12.7 billion (based on an exchange rate of $1 to TWD28.75), compared with $10.4 billion in the same period of 2019, anticipating “strong demand” for 5nm chips “driven by 5G smartphone” and HPC customers.
Bloomberg noted CEO CC Wei explained TSMC ceased shipments to Huawei last month, in line with a US ban.Subscribe to our daily newsletter Back