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TSMC's Q2 profit up 76%, beats market estimates

TSMC's Q2 profit up 76%, beats market estimates

The logo of Taiwan Semiconductor Manufacturing Co (TSMC) is pictured at its headquarters, in Hsinchu, Taiwan, Jan 19, 2021. (File photo: Reuters/Ann Wang)

TAIPEI: Taiwanese chip maker TSMC posted a 76.4 per cent rise in second-quarter net profit on Thursday (Jul 14) on sustained demand for semiconductors amid a continued global shortage.

Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker and a major Apple supplier, saw net profit for April to June rise to T$237.0 billion (US$7.94 billion) from T$134.4 billion a year earlier.

That was ahead of the T$219.13 billion average of 19 analyst estimates compiled by Refinitiv.

Revenue for the quarter climbed 36.6 per cent to US$18.16 billion, versus TSMC's prior estimated range of US$17.6 billion to US$18.2 billion.

TSMC's profitability has been boosted by a global chip shortage that was sparked by a demand surge as people worked and studied from home at the height of the COVID-19 pandemic.

The shortage has complicated or cut production at manufacturers of devices such as smartphones and laptops as well as vehicles.

The Taiwanese firm, whose clients also include chip majors such as Qualcomm, has talked of a "mega-trend" in the industry brought about by demand for high-performance computing chips for 5G networks and artificial intelligence, as well as increased use of chips in gadgets and vehicles.

The company has said its chip capacity would remain tight this year, amid a crunch that has kept order books full and allowed chipmakers to charge premium prices.

Shares of TSMC have fallen about 23 per cent so far this year, giving it a market value of US$408.3 billion. The stock rose 1 per cent on Thursday, compared with a 0.8 per cent gain for the benchmark index.

Source: Reuters/ng

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