TSMC anticipates higher Q3 revenue, chip demand resilience

TSMC anticipates higher Q3 revenue, chip demand resilience

by Yimou Lee and Ben Blanchard

TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing (TSMC) is forecasting revenue growth in the third quarter, saying it is “very confident” about its long-term prospects and touting demand for chips used in 5G networks and… ‘artificial intelligence.

The world’s largest chipmaker, and one of Apple’s main suppliers, said on Thursday it expects third-quarter revenue to reach between $19.8 billion and $20.6 billion ( 19.75-20.55 billion euros) against 14.88 billion dollars a year earlier.

In the second quarter ended June 30, TSMC’s revenue rose 36.6% and its net profit jumped 76.4%, the biggest increase in eight quarters, well beating estimates from the market. market.

TSMC, raised its revenue growth forecast for 2022 to more than 30%, from a previous forecast of around 26% to 29%.

Long-term chip demand remains “firmly in place” and factory production capacity is expected to remain “healthy” next year, CC Wei, general manager of TSMC, told a press conference.

These good results and these prospects underline the strong demand for TSMC’s semiconductors, in the context of a global shortage for the past two years.

However, the company expects customers to draw down their chip inventories in the coming quarters through 2023, signaling a cooling in demand for semiconductors for consumer electronics.

TSMC also said capital expenditures will be at the lower end of its previous guidance due to higher raw material costs.

On the stock market, the TSMC title took 1% on Thursday, against a gain of 0.8% for the Taiwanese benchmark index.

(Reporting Yimou Lee and Ben Blanchard, written by Sayantani Ghosh; French version Dina Kartit, editing by Kate Entringer)

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