By Kosaku Narioka
Taiwan Semiconductor Manufacturing Co.’s third-quarter net profit rose to a record, thanks to strong chip demand for electronics devices and data processing.
The world’s largest contract chip maker said Thursday that net profit was 156.26 billion New Taiwan dollars (US$5.57 billion), up from NT$137.31 billion a year earlier. That beat the estimate of NT$149.42 billion from a poll of analysts by S&P Global Market Intelligence.
Its revenue rose 16% from a year earlier to NT$414.67 billion. Both its quarterly revenue and net profit were record highs.
The company’s operating profit margin fell 0.9 percentage point to 41.2%.
Some analysts said higher costs of raw materials and depreciation may weigh on the company’s margins. TSMC earlier this year said it planned to invest US$100 billion over the next three years to increase production capacity.
Its revenue from smartphones rose 15% from the previous quarter and revenue from high-performance computing increased 9%.
TSMC said revenue from customers in North America made up 65% of its third-quarter revenue, up from 64% in the second quarter, while revenue from China accounted for 11% of the total, unchanged from the previous quarter.
Write to Kosaku Narioka at [email protected]
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