Taiwan Semiconductor Manufacturing Company (TSMC) said quarterly net profit jumped 81 percent to a record high and predicted huge revenue gains for the third quarter on strong orders for advanced chips.
There has been strong demand for high-performance chips used in 5G telecommunications and other new technologies, especially as more people work from home and companies scramble to add more bandwidth amid the coronavirus pandemic.
The world’s largest contract chipmaker forecast third-quarter revenue to rise 22 per cent from a year ago to $11.5 billion (about Rs 86,428), a forecast that is expected to increase after the United States banned sales for a single customer. Despite losing Huawei Technologies in the form. to Chinese company.
Chief Financial Officer Wendell Huang said at a briefing, “We expect our business to be supported by strong demand for our industry-leading 5 nanometer and 7 nanometer technologies, which are integrated into 5G smartphones, high-performance computing and IoT-related technologies. powered by applications.”
April-June net profit stood at TWD 120.8 billion (approximately Rs 30,833 crore), 8 per cent ahead of market expectations, while revenue for the quarter rose 34.1 per cent to $10.4 billion (approximately Rs 78,210 crore).
Outlining its bullish outlook, it increased its capital expenditure plans for the year to $16-$17 billion (about Rs 1.20 lakh crore – around Rs 1.27 lakh crore) from $15-16 billion (about Rs 1.12 lakh crore). earlier estimate of Rs. around Rs 1.20 lakh crore). It spent $14.9 billion (about Rs 1.12 lakh crore) in 2019.
TSMC, which counts Apple and Qualcomm among its customers, said it has made good progress in filling capacity since the loss of orders from Huawei. It stopped taking new orders from the Chinese telecom and smartphone giant in May and does not plan to ship the wafers after September 15.
TSMC unveiled plans for a $12 billion (about Rs 90,225) plant in Arizona in May, a move widely seen as currying sides with the United States as Washington disputes with Beijing over trade and Huawei. did.
The company said on Thursday that the plant will make advanced 5 nanometer chips and start operating in 2024, aiming to produce 20,000 wafers per month.
TSMC also said it expects the global market for contract chip manufacturing to see mid- to high-teens percentage growth this year, up from previous forecasts of high single-digit to low-teens percentage growth.
Shares of TSMC have risen nearly 10 per cent this year, giving it a market value of $320 billion (about Rs 24.06 lakh crore), beating US rival Intel, which now has a market value of $249 billion (about Rs 18.72 lakh crore). Rs.) is.
© Thomson Reuters 2020
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