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Taiwan’s TSMC posts 13.8% rise in Q3 profit on global chip demand surge By Reuters

© Reuters. FILE PHOTO – The Taiwan Semiconductor Manufacturing Co. (TSMC), logo is pictured in its Hsinchu headquarters, Taiwan on January 19, 2021. REUTERS/Ann Wang/File Photograph GLOBAL WEEK AGO

TAIPEI (Reuters). Taiwan’s chip giant TSMC saw a 13.8% rise in profit for its third quarter on Thursday, thanks to a surge of demand for semiconductors used to power smartphones during the COVID-19 epidemic and a shortage.

TSMC is the largest contract chipmaker in the world and a major supplier to Apple Inc. (NASDAQ:). In July-September, TSMC posted a net profit T$156.3 Billion ($5.56 Billion), well beyond the T$149B average estimate of Refinitiv’s 22 analysts.

TSMC is also known as Taiwan Semiconductor Manufacturing Co. They are found in high-end phones like the Apple 5G iPhone 13 and cars with artificial intelligence.

TSMC Taiwan and Taiwan are also central players in the efforts to solve a worldwide pandemic-induced chip shortage. The crisis has forced carmakers to lower production and have harmed manufacturers of smartphone, laptop, and other consumer electronics.

Wendell Huang, Chief Financial Officer, stated that “our third quarter business was mainly supported through strong demand across all the four growth platforms.” He spoke at an analyst conference to refer to strong chip demand, including for smartphones and cars, as well as the “Internet of Things”, which is the idea of linking household devices to the Internet.

“We expect that our business will be sustained by strong demand in the fourth quarter of 2021 for our 5 nanometre-leading technology.”

According to an industry megatrend of high chip demand, the company raised its 2021 revenue growth projections from 20% to 24%.

TSMC’s quarter revenue rose 22.6%, to $14.88 Billion. This is in line with its prior estimates of $14.6 billion-$14.9 billion.

TSMC predicted revenue between $15.4 billion and $15.7 billion for the December quarter, compared to $12.68 billion a year ago.

TSMC shares are up 8.5% in the first quarter of this year. It now has a market capitalization of $526.3billion. That’s more than twice as much as competitor and client. Intel Corp (NASDAQ:)

The closing price was 0.4%, roughly in line with the 0.2% increase in the wider market.

($1 = 28.0950 Taiwan dollars)

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.