TSMC, the company that supplies Apple’s A Series chipset has reported strong Q3 sales and a 10% increase in year-on-year revenue. The net profits grew to $3.30 billion while the revenue rose to $9.2 billion.
Reuters reports explain how TSMC could beat expectations. It is worth noting that TSMC earns 49% of its revenue from sales to smartphone makers. TSMC’s results are positive despite the global slowdown and ongoing trade war between China and the United States. On a separate note, you can check out the discussion about Apple’s new A13 Bionic chip.
The report also mentions that China sales still account for 15% of total sales to smartphone manufacturers.
TSMC reported a 13.5% rise in third-quarter net profit to T$101.07 billion ($3.30 billion), its strongest growth since the first quarter of 2017, thanks to strong sales to smartphone makers.The profit figure compared with a T$96.33 billion average forecast drawn from 20 analysts, according to Refinitiv data.
Revenue rose 10.7% to $9.4 billion, compared with the company’s own estimate of $9.1 billion to $9.2 billion.
Sales earned from smartphone makers accounted for 49% of its total revenue.
TSMC rising sales figures can be partly attributed to the new iPhones. Huawei has managed to ship 185 million smartphones this year and is likely to have contributed to TSMC’s increase in sales. A recent report believes that Apple will sell 10% more iPhones in Q1 2020 as opposed to last year. Furthermore, Apple is expected to ship 70-75 million units of iPhone 11. Meanwhile, the demand is only expected to become stronger with the increasing demand for 5G and new 7nm chips from TSMC.[via Reuters]