TSMC revenues soar 20% in Q2 due to huge chip demand


The world’s largest contract chip manufacturer Taiwan Semiconductor Manufacturing Co. (TSMC) reported skyrocketing revenue from semiconductor product sales of more than 20% in the second quarter compared to the same period last year. The company did its best to meet the demand of car manufacturers and other customers.

Revenues from April to June amounted to $ 13.3 billion – the data presented was broadly in line with analysts’ forecasts, which had predicted much the same. Revenue for June alone was $ 5.28 billion, a 23% increase over June last year.

According to market analysts Roland Shu and Grant Chi, TSMC’s ability to effectively influence prices and global capacity shortages offset the high capital investment the company needs to grow. At the same time, the use of advanced EUV-technologies for manufacturing chips will only increase the gap between TSMC and competitors and provide an optimal pricing structure for the company’s new technological processes.

Earlier this week, Daimler AG and Jaguar Land Rover warned that sales would continue to be limited due to continued chip shortages – the latter said second-quarter shipments would be 50% less than originally planned. According to United Microelectronics Corp., demand for chips will exceed supply until 2023.

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In the third quarter TSMC will prioritize the production of chips for Apple and the automotive industry

In the near future, Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chip manufacturer in the world, will focus on chipsets for Apple and the automotive industry. Semiconductors for PCs, servers and networking devices will be of secondary importance.

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TSMC is the exclusive manufacturer of Apple’s A-series chipsets for iPhones and iPads; and M-series chipsets for Macs that do not use Intel solutions. For the upcoming iPhone 13, the Taiwanese company is releasing the latest A15 chipsets; using the second generation 5nm process technology (N5P). Last year, the A14 chipset became the first semiconductor solution to be mass-produced by TSMC in accordance with the 5nm process.

Apple has the top priority in fulfilling its orders due to their sheer scale. The new iPhones will be available this fall; so preparing a large stock of chips for the third quarter is critical for Apple.

Although chip shortages have affected many industries, car manufacturing has become one of the worst hit industries. At the start of the pandemic, car sales fell, prompting declining orders for chips for automotive systems; and semiconductor manufacturers rushing to meet demand for consumer electronics needed for teleworking and distance learning.

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