TSMC sales soar 44% in another sign of resilient tech demand


(Bloomberg) — Taiwan Semiconductor Manufacturing Co. reported better-than-expected quarterly earnings, providing another signal that demand for electronics is holding up better than expected.

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The world’s largest contract chipmaker recorded NT$534.1 billion ($17.9 billion) in revenue for the second quarter, according to Bloomberg calculations, compared to an average analyst estimate of NT$519 billion. NT dollars.

Earnings from top chipmaker Apple Inc. could allay investors’ worst fears about the impact of weaker demand and soaring costs on the $550 billion semiconductor industry. dollars. On Thursday, Samsung Electronics Co. also reported a better-than-expected 21% increase in revenue, triggering a rally in Asian stocks.

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As worries persist over the longer-term impact of a potential global recession, investors took Samsung’s revenue expansion as a sign that chip stocks may have been oversold. TSMC may be able to exceed its sales growth target of 30% in US dollars this year, said Jeff Pu, analyst at Haitong International Securities.

“TSMC’s second-quarter sales are slightly lower than the most recent market expectations,” Pu said. “But the company’s third-quarter revenue could beat consensus, helped by its price hike and the launch of a new product from Apple.”

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Read more: Samsung sparks $30 billion tech rally after 21% jump in sales

TSMC, the world’s most advanced silicon chipmaker, has benefited from its most important customer. Over the past year and a half, Apple has released five types of Mac chips. The Taiwanese company also continues to benefit from the auto industry’s growing demand for semiconductors as cars go digital.

Signs are emerging that the chip supply problems that have plagued gadget makers and automakers for more than a year are easing. Auto executives said they saw an improvement in component supply, while chip delivery times fell by a day in June.

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Shares of TSMC closed 2.1% higher on Friday ahead of the earnings announcement, but are still down 24% this year after a broader tech sell-off on recession worries.

“Strong demand for high-performance computer and automotive chips is expected to prevail, while the negative impacts of a lower smartphone chip demand outlook may not be felt until Q4,” the Bloomberg analyst wrote. Intelligence, Charles Shum, in a note ahead of TSMC’s announcement on Friday.

(Updates with analyst’s comment from fourth paragraph)

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