TSMC gross sales surge as firm says order books stay full

Taiwan’s TSMC forecast an as much as 37% bounce in current-quarter gross sales and mentioned it expects chip capability to stay very tight this 12 months, amid a world crunch that has saved order books full and allowed chip makers to cost premium costs.

TSMC, the world’s largest contract chip maker and a significant Apple provider, forecast income of US$17.6-billion to $18.2-billion within the quarter ending 30 June, up from $13.3-billion a 12 months earlier.

TSMC is working to deal with supply-chain challenges with device suppliers to assist them broaden capability, CEO CC Wei advised a web based earnings briefing, referring to a cycle of shortages the place makers of chip gear are struggling to search out the chips wanted for gear to produce chip makers like TSMC.

“Our suppliers are facing great challenges in their supply chain from the continued impact of Covid-19, which are creating labour, component and chip constraints in their supply chains, and extending tool delivery time for both advanced and mature nodes,” he mentioned.

TSMC defines superior node as 7-nanometre and extra superior applied sciences, chips that account for half its income.

Wei mentioned that TSMC had been dealing with the device supply downside for the reason that starting of this 12 months and the corporate was working arduous with its device suppliers to resolve points, together with sending groups on website to help suppliers. He added that the corporate didn’t count on any influence to its capability plan this 12 months.

The firm, which has already lifted capital spending for this 12 months to maintain up with the surge in demand, mentioned a 36% bounce in first quarter income was supported by better-than-expected demand from smartphone clients and excessive efficiency computing (HPC) chips, in addition to sturdy demand for car-related chips.


TSMC expects chip demand to proceed in the long run, Wei mentioned, calling it a “megatrend” within the trade supported by demand for HPC chips for 5G and synthetic intelligence, in addition to a rise in chips utilized in devices.

The scarcity has pressured automobile makers and electronics producers to chop manufacturing.

Revenue from its HPC enterprise, which serves clients equivalent to Qualcomm, rose 26% in January-March from October-December, and accounted for 41% of the corporate’s whole income.

Wei mentioned he anticipated HPC to be the strongest rising enterprise on this 12 months and within the following years.

Revenue from TSMC’s smartphone enterprise, which sells to Apple, ticked up 1% from the earlier quarter in a usually smooth season for the product.

Revenue from TSMC’s smartphone enterprise, which sells to Apple, ticked up 1% from the earlier quarter in a usually smooth season for the product

Apple is planning to decrease iPhone and AirPod manufacturing because of a requirement slowdown brought on by the Ukraine disaster and rising inflation, based on media studies.

Net revenue for the January-March quarter jumped 45% from a 12 months earlier to T$202.7 billion ($7-billion). Analysts anticipated a revenue of T$184.67 billion, based on a median of 19 estimates compiled by Refinitiv.

Shares of TSMC have fallen about 6.8% to date this 12 months, giving the agency a market worth of $511.1-billion.  — Yimou Lee and Sarah Wu, with Ben Blanchard, (c) 2022 Reuters

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