Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted monthly revenue that suggested second-quarter sales surpassed analysts’ estimates, underscoring how its technological lead is helping the chipmaker weather the COVID-19 pandemic and US sanctions on its second-biggest customer Huawei Technologies Co (華為).
Apple Inc’s main iPhone chipmaker posted sales of NT$120.88 billion (US$4.08 billion) for last month, up 40.8 percent year-on-year and bringing its revenue for the second quarter to NT$310.7 billion, beating the NT$308.8 billion analysts expected on average.
TSMC, a barometer for the industry thanks to its heft in the global supply chain, had previously lowered its revenue outlook for this year to reflect potentially the biggest global economic crisis since the Great Depression.
Photo: David Chang, EPA-EFE
However, the chipmaker said at the time that it was still expecting robust demand for semiconductors used in data centers, which were hosting an unprecedented surge in online activity during the COVID-19 pandemic.
Executives predicted revenue growth of about 30 percent in the second quarter.
In the longer term, TSMC still has to contend with uncertainty as COVID-19 spreads across the globe, particularly as signs emerge of a second wave, but the chipmaker is considered relatively more resistant to a downturn thanks to a commanding position in the production of high-end chips needed for everything from data centers and gaming to video streaming.
TSMC’s results came after local contract chipmakers United Microelectronics Corp (UMC, 聯電) and Vanguard International Semiconductor Corp (VIS, 世界先進) on Thursday reported record-high revenue for the second quarter.
UMC’s second-quarter revenue was NT$44.39 billion, up 5.01 percent quarter-on-quarter, although revenue for last month dropped 1.1 percent month-on-month to NT$14.58 billion, the lowest level in three months.
Strong demand for computer peripherals and consumer electronics helped drive UMC’s wafer shipments in the second quarter, while an increase in the average selling price of those products helped boost its revenue, the chipmaker said in a statement.
VIS posted second-quarter sales of NT$8.23 billion, up 4.88 percent quarter-on-quarter, well within its target of NT$8 billion to NT$8.4 billion.
Revenue for last month increased 3.63 percent month-on-month to NT$2.87 billion, company data showed.
Additional reporting by staff writer and CNA
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