The largest contract chipmaker of the world, Taiwan based TSMC, reported a revenue increase in November, thanks in part to orders for high-end smartphones such as Apple's iPhone.
The Taiwanese company, which manufactures chips for other companies, reported November revenue of 222.71 billion new Taiwan dollars ($7.27 billion), a 50.2% increase year on year.
TSMC manufactures chips for a wide range of companies, including Apple and Qualcomm, as well as SoftBank-owned Arm. In the face of rising prices, fears of a global recession, and Covid disruptions in China, the company has defied a slowdown in certain areas of the chip market.
According to the November revenue report, TSMC is on track to meet its previous mentioned fourth quarter guidance of $19.9 billion to $20.7 billion. TSMC's revenue in October and November was around $14.1 billion.
“TSMC’s Oct/Nov revenues are on track comparing to what the management guided 2 months ago, despite significant business slowdowns in many other semi names,” Dale Gai, semiconductor analyst at Counterpoint Research, said via email.
Gai stated that "high-end smartphones" such as Apple's A16 chip and Qualcomm's latest semiconductor contributed to the "majority of its (TSMC's) seasonal strength."
According to the analyst, some chips for so-called high-performance computing also contributed to the impressive set of figures.
TSMC is arguably the world's largest semiconductor manufacturer. It has a large number of customers who rely on it for the most cutting-edge chips.
It has also been caught up in the chip wars between the United States and China. While attempting to reshore semiconductor production, the US has sought to isolate China from critical chips and tools.
TSMC announced earlier this week the opening of a second chip plant in Arizona, increasing its investment in the state from $12 billion to $40 billion. President Joe Biden attended the announcement of the investment, emphasizing the critical role that TSMC will play in the American semiconductor sector.
Apple CEO Tim Cook also attended the event and stated that the iPhone maker would purchase TSMC chips made in the United States.
While Apple boosts TSMC's November revenue, analysts are concerned about weaker orders next year.
“The real test for the company will be” in the first half of 2023, said Sze Ho Ng, analyst at investment bank China Renaissance.
(Source:www.flipboard.com)
The Taiwanese company, which manufactures chips for other companies, reported November revenue of 222.71 billion new Taiwan dollars ($7.27 billion), a 50.2% increase year on year.
TSMC manufactures chips for a wide range of companies, including Apple and Qualcomm, as well as SoftBank-owned Arm. In the face of rising prices, fears of a global recession, and Covid disruptions in China, the company has defied a slowdown in certain areas of the chip market.
According to the November revenue report, TSMC is on track to meet its previous mentioned fourth quarter guidance of $19.9 billion to $20.7 billion. TSMC's revenue in October and November was around $14.1 billion.
“TSMC’s Oct/Nov revenues are on track comparing to what the management guided 2 months ago, despite significant business slowdowns in many other semi names,” Dale Gai, semiconductor analyst at Counterpoint Research, said via email.
Gai stated that "high-end smartphones" such as Apple's A16 chip and Qualcomm's latest semiconductor contributed to the "majority of its (TSMC's) seasonal strength."
According to the analyst, some chips for so-called high-performance computing also contributed to the impressive set of figures.
TSMC is arguably the world's largest semiconductor manufacturer. It has a large number of customers who rely on it for the most cutting-edge chips.
It has also been caught up in the chip wars between the United States and China. While attempting to reshore semiconductor production, the US has sought to isolate China from critical chips and tools.
TSMC announced earlier this week the opening of a second chip plant in Arizona, increasing its investment in the state from $12 billion to $40 billion. President Joe Biden attended the announcement of the investment, emphasizing the critical role that TSMC will play in the American semiconductor sector.
Apple CEO Tim Cook also attended the event and stated that the iPhone maker would purchase TSMC chips made in the United States.
While Apple boosts TSMC's November revenue, analysts are concerned about weaker orders next year.
“The real test for the company will be” in the first half of 2023, said Sze Ho Ng, analyst at investment bank China Renaissance.
(Source:www.flipboard.com)
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