Taiwan Semiconductor Manufacturing Company (TSMC) had a 13.8% jump in Q3 2021 profit. The world’s largest contract chipmaker and a key supply to Apple, revealed a net profit of $5.56 billion, well above the estimates. Revenue for the quarter jumped 22.6% to $14.88 billion.
Revenue from customers in North America accounts for 65% of the overall figures, while revenue from China made up 11% of the total.
Chief Financial Officer Wendell Huang stated: "Our Q3 business was mainly supported by strong demand across all four growth platforms,” mainly for smartphones, cars, and various devices.
For Q4 2021, TSMC expects the business to be supported by strong demand for 5-nanometer technology. The company updated its revenue forecast to $15.7 billion, approx. 24% higher than initially touted. Moreover, TSMC also announced that it plans to invest $100 billion over the next three years to increase production capacity.
After the news hit the wires, Taiwan Semiconductor’s stock price closed 0.4% higher. Since the beginning of the year, the stock price rose about 8.5%, pushing the market value to $526.3 billion, more than twice of rival Intel.
Sources: finance.yahoo.com, marketwatch.com, thestreet.com