TSMC’s income rises 50% in November, helped by Apple’s iPhone orders

TSMC dismissed a slowdown in areas of the chip market amid rising costs, fears of a world recession and Covid disruptions in China.

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TSMCthe world’s largest contract chipmaker, on Friday reported an increase in income in November thanks partially to orders for semiconductors for high-end smartphones corresponding to from Apple iPhone.

The Taiwanese agency, which makes chips for different corporations, mentioned income in November totaled 222.71 billion New Taiwan {dollars} ($7.27 billion), up 50.2% year-on-year.

TSMC makes chips for all kinds of corporations, together with the newest semiconductors for Apple and Qualcomm in addition to SoftBank-property of Arm. The corporate dominated out a slowdown in areas of the chip market amid rising costs, fears of a world recession and Covid disruptions in China.

The November earnings report places TSMC on observe to satisfy its beforehand said fourth-quarter steering of $19.9 billion to $20.7 billion. In October and November, TSMC’s income totaled about $14.1 billion.

“TSMC’s October/November income is on observe in comparison with what administration guided for two months in the past, regardless of vital enterprise slowdowns in lots of different semiconductor names,” Dale Gai, semiconductor analyst at Counterpoint Analysis, advised CNBC by way of e mail. .

Gai mentioned “high-end smartphones” such because the A16 chip for Apple’s iPhone and Qualcomm’s newest semiconductor contributed to “most of its (TSMC) seasonal power.”

The analyst mentioned some chips for so-called high-performance computing additionally contributed to the robust set of numbers.

TSMC is arguably the world’s largest semiconductor producer. He has a big set of shoppers who belief him for the innovative chips.

It has additionally been caught in the course of the tech battle between the US and China over chips. The US has sought to chop off China from crucial chips and instruments because it tries to get well semiconductor manufacturing.

Earlier this week, TSMC introduced the opening of a second chip plant in Arizona, growing its funding within the state from $12 billion to $40 billion. President Joe Biden was on the occasion the place the funding was introduced, underscoring the crucial position TSMC will play within the US semiconductor trade.

Apple CEO Tim Cook dinner additionally attended the occasion and mentioned the iPhone maker would purchase US-made TSMC chips.

Whereas TSMC’s November earnings are getting a lift from Apple, analysts are involved about weaker orders subsequent yr.

“The actual take a look at for the corporate might be” within the first half of 2023, mentioned Sze Ho Ng, an analyst at funding financial institution China Renaissance.

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