TSMC has posted record quarterly revenue, highlighting the impact of strong iPhone 12 demand. The company posted December sales of $4.2 billion, which is a record, but a little below expectations. Still, the record revenue has resulted in massive increase in its share price.
As reported by Bloomberg, TSMC has seen continue share growth over the past 12 years, leading up to the launch of Apple’s 5G capable iPhone 12.
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.
TSMC sees record quarterly revenue thanks to iPhone 12 demand
Although TSMC is popularly known for being Apple’s chip manufacturer for its A-series and M-series chips, it also producers chips for other companies such as AMD. Both of these companies have seen massive growth over the past year, giving tough competition to Intel. TSMC has seen almost 25% year-over-year growth in revenue, compared to 2019.
Bloomberg believes that TSMC’s 4Q revenue could also exceed expectations, however, a strong Taiwan dollar and higher expenses for 5nm manufacturing might cut into the company’s operating margin.
“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”
Despite being a pandemic year, 2020 has seen growth for Apple and its suppliers. Just like TSMC, Foxconn also reported record quarterly revenue and beat estimates due to iPhone 12 demand. Foxconn reported $194.4 billion revenue for 2020, while its Q4 2020 revenue was $25.5 billion, which represented 37% of its annual revenue because of iPhone 12 launch.
Foxconn has been assembling iPhone 12 line-up for Apple, and the pent up demand for a 5G capable iPhone, along with a new design, has resulted in massive sales for the new smartphone.
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