TSMC released its third quarter 2020 results on Thursday. According to the financial report, TSMC's net profit in the third quarter was NT $13.7 billion (US $4.8 billion), up 36% from the same period last year, far higher than the average analysts' expectation of NT $124.9 billion (about US $4.35 billion). This is also the highest net profit quarter in TSMC's history.
Previously disclosed monthly data showed that TSMC's third quarter sales rose to a record of NT $356.4 billion (US $12.4 billion), also higher than the previously estimated range of $11.2 billion to $11.5 billion.The reason why the world's largest OEM chip manufacturer's profits have risen sharply is mainly due to the strong demand for high-end chip products and the preparation of new mobile phones by major customers such as apple and Huawei.
TSMC's business typically moves into high-speed development in the months leading up to Apple's launch of new phones and holiday shopping season.Furthermore, the company's performance was boosted this quarter as second-largest customers Huawei hoarding chips.
On Tuesday, Apple released its latest iPhone line, saying two new models will be available on October 23 and the other two will be available in three weeks. According to reports, apple expects to produce at least 75 million new 5g iPhones this year, roughly the same as its previous flagship.
Analysts at Citigroup (Citigroup) said:
TSMC said in July that revenue would grow by more than 20% in US dollars this year and raise its capital expenditure target for 2020 by about $1 billion to between $16 billion and $17 billion, due to strong demand for 5g and high-performance computing related applications in the next few years.
TSMC's shares fell 1.3% on Thursday ahead of earnings. The company's share price has soared about 83% from its march low to a market value of $414bn. There are signs that the company is rebounding from the heavy damage caused by the new outbreak.
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