TSMC’s strong guidance bodes well for Apple

Chip manufacturing giant TSMC raised both its full-year revenue and cap-ex guidance, as it continues seeing strong orders from smartphone, PC and data center chip clients.

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Eric Jhonsa for TheStreet:

Business still looks very good for TSMC. And that probably says a lot about how business currently looks for major TSMC clients such as Apple… TSMC, the world’s top chip foundry (contract manufacturer), just reported Q3 revenue of NT$356.4 billion (up 22% annually and equal to $12.39 billion) and EPS of $0.90.

TSMC’s guidance was also strong. The company:
• Guided for Q4 revenue of $12.4 billion to $12.7 billion — up 29% to 33% annually and above a $12.02 billion consensus.
• Guided for 2020 revenue to be up about 30%. That’s improved from July guidance for 20%-plus growth.
• Guided for 2020 capital spending of about $17 billion, while citing the need to support elevated demand. This forecast is up from a July outlook of $16 billion to $17 billion, not to mention an April outlook of $15 billion to $16 billion.

This disclosure follows Q3 guidance hikes from other Apple suppliers, such as NXP Semiconductors, STMicroelectronics, and Knowles. TSMC-manufactured chips known or believed to be used by Apple’s iPhone 12 lineup include Apple’s A14 Bionic SoC — made using TSMC’s N5 process, the first to rely on its cutting-edge, 5-nanometer (5nm), manufacturing process node.

MacDailyNews Take: The stars are aligned for Apple’s iPhone to begin taking back smartphone share that’s been stolen by the knockoff peddlers the world over and suppliers like TSMC will benefit greatly.


  1. The guidance is, of course, contingent upon China not carrying out its threat to attack Taiwan and take over and/or destroy the high tech manufacturing facilities of “tsmc”.

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