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.
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.