TSMC accredits iPhone 12 demand for 14% growth in Q4, 2020

In its 2020 fourth report, TSMC (Taiwanese semiconductor manufacturing company) has attributed the company’s growth to strong iPhone 12 demand in the last quarter. The manufacturer saw a 14 percent Year-on-Year increase in revenue in comparison to the same quarter in 2019. Based on sales data, the TSMC predicts that iPhone 12 demand will remain consistent in the first quarter of 2021.

Apple launched the new flagship iPhone 12 series on October 13, 2020, and since the launch, the demand for the new smartphone models has been impressive. iPhone 12 was the first smartphone in the market running on the A14 Bionic processor built on 5nm technology by TSMC which offers fast performance and improved battery life. Running on TSMC’s advanced chip and new iOS 14, the entire iPhone 12 line-up many new features like 5G network support, OLED display, Ceramic shield protection, Dolby Vision support, Ultra-wide and Wide lenses, and more. In addition, the iPhone 12 Pro models offer a LiDAR scanner, Telephoto lens, 5x optical zoom, and image stabilization sensor.

TSMC-iPhone 12 demand

TSMC saw a 14% increase in revenue because of strong iPhone 12 demand

Recently, Bloomberg reported that over the past 12 years TSMC’s share has seen continuous growth leading up to the release of the 5G iPhone 12. The manufacturer posted a record $4.2 billion in sales owing to strong iPhone 12 demand.

“Taiwan Semiconductor Manufacturing Co.’s 4Q revenue could exceed guidance of $12.7 billion on a continuation of strong chip orders from customers such as Apple.

Shares of Apple’s main chipmaker have rallied more than 70% over the past 12 months and reached a record high on Friday. The company has predicted that the industry “mega trends” of 5G and high performance computing-related products will continue to drive growth over the long term.”

iPhone 12 demand

In Q4, 2020 revenue report, the VP and Chief Financial Officer of TSMC, Wendell Huang expressed the company to sustain growth by delivering High Performance Computing (HPC) applications and automobiles sector along with “milder” smartphone season.

“Our fourth quarter business was supported by strong demand for our industry-leading 5-nanometer technology, driven by 5G smartphone launches and HPC-related applications. Moving into first quarter 2021, we expect our business to be supported by HPC-related demand, recovery in the automotive segment, and a milder smartphone seasonality than in recent years.”

Previously, DigiTimes claimed that Apple has partnered with TSMC to work on chips for self-driving Apple Car with revolutionary battery life and LiDAR scanners. It is also reported that TSMC is on track for full mass production of an even more advanced 3nm node in the second half of 2022 and Apple will be the manufacturer’s likely client for the new 3nm chip.

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Addicted to social media and in love with iPhone, started blogging as a hobby. And now it's my passion for every day is a new learning experience. Hopefully, manufacturers will continue to use innovative solutions and we will keep on letting you know about them.