TSMC Posts Record Sales as Auto, iPhone Demand Fuel Orders

(Bloomberg) — Taiwan Semiconductor Producing Co.’s quarterly profits jumped to a report, underscoring how the world’s greatest contract chipmaker is benefiting from an ongoing lack in the silicon that energy almost everything from cars to smartphones.

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Revenue for the 3rd quarter climbed to NT$414.7 billion ($14.8 billion), in line with the about NT$413 billion typical of analyst estimates. September product sales came in at NT$152.7 billion, a 20% improve from a 12 months previously.

TSMC typically will get a 3rd-quarter boost from pre-holiday break orders and new gizmos from organizations together with Apple Inc., whose Apple iphone 13 sequence has been fulfilled with sturdy demand considering the fact that its start late last month. But capacity constraints have confined the Taiwanese chipmaker’s ability to completely capitalize on the growth and it has also had to divert means to creating decrease-priced chips for industries like vehicles, exactly where supply shortages are most acute.

What Bloomberg Intelligence States:

Taiwan Semiconductor Manufacturing’s 3Q revenue could fulfill steering of $14.7 billion with the assistance of robust orders, in particular for its 7- and 5-nanometer (nm) chips, from consumers these kinds of as Apple and AMD. But its working profits might skip the $5.97 billion approximated by consensus, we feel. Quickly-weakening expansion momentum in Android smartphones, particularly in mid- and reduced-finish types, could impact shipments of TSMC’s superior-margin experienced-node chips.

— Charles Shum, analyst

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There are signals the crunch is acquiring even worse. Lead periods in the marketplace — the hole in between putting in a semiconductor purchase and having shipping and delivery — rose for the ninth thirty day period in a row to an average of 21.7 months in September, in accordance to Susquehanna Economical Group. That is by considerably the longest considering the fact that the organization began monitoring the knowledge in 2017.

Story carries on

Shares of TSMC fell .9% in Taipei on Friday, trimming their gains for this yr to 8.5%. The business is scheduled to report 3rd-quarter earnings on Oct. 14.

(Updates with TSMC share price. An previously edition of the story was corrected to repair the device in the 2nd paragraph.)

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