Despite a weakening market: TSMC defies the negative trend
Recently, companies in the electronics industry only had bad news to report. The PC market is weakening and chip manufacturers are faced with a significant drop in demand. According to its latest quarterly report, the semiconductor manufacturer TSMC is still making huge profits.
Large companies such as Intel, Nvidia and AMD have warned of dramatically falling sales and drastic falls in demand in recent weeks. The stock market also reacted to this and caused the shares of TSMC and Samsung to crash on the Asian markets. Nevertheless, the semiconductor manufacturer TSMC has a good laugh and presented in its last quarterly report profits that had increased by almost 80 percent.
TSMC sees strong demand for 5nm technologies
In its report for the third quarter of 2022 ended September 30, TSMC reported revenue of $20.23 billion, an increase of 35.9 percent year-on-year and 11.4 percent sequentially . In a year-on-year comparison, sales in the third quarter increased by 47.9 percent. Net income was up 79.7 percent, while diluted earnings per share increased 79.8 percent.
The positive figures result from the fact that the manufacturer TSMC is not only tied to the weakening PC market, but can also benefit in particular from the dominance of smartphones. Among other things, the company supplies the chips for Apple’s iPhone series. Shipments of 5-nanometer wafers accounted for 28 percent of the manufacturer’s sales in the third quarter, while 7-nanometer wafers accounted for 26 percent. Overall, “advanced technologies,” which includes 7-nanometer and more advanced technologies, accounted for as much as 54 percent of total wafer sales.
“Our business in the third quarter was supported by strong demand for our industry-leading 5nm technologies,” said Wendell Huang, VP and Chief Financial Officer of TSMC. “Looking ahead to the fourth quarter of 2022, we expect our business to flatten as end-market demand weakens and ongoing customer inventory adjustment is offset by the continued ramp-up of our industry-leading 5nm technologies.”
Source: TSMC, ComputerBase
Reference-www.pcgameshardware.de