TSMC, Apple’s chipmaker for A-series and M-series chips, has seen a massive revenue boost of 48% thanks to the sales of Apple products. In the third quarter of 2022, TSMC is expected to earn revenue of up to NT$613 billion ($19.4 billion), as calculated by Bloomberg.
TSMC revenues hit $19.4 billion in Q3 2022
A recently published report by Bloomberg shares details of the third quarter revenue by TSMC, which exceeds those that were estimated by analysts previously.
Revenue at the world’s largest contract chipmaker rose 48% to about NT$613 billion ($19.4 billion) in the third quarter, according to Bloomberg’s calculations. Analysts estimated NT$603 billion on average.
This news comes at a time when the rest of the $550 billion semiconductor manufacturing industry has been seeing a downturn. Other semiconductor manufacturers like Samsung reported their first drop in profits since 2019, while AMD also missed out on its quarterly sales figures by $1 billion, despite releasing well-received products. Other smaller manufacturers like Micron Technology and Kioxia Holdings have also been cutting down the output to avoid a price crash.
Analysts have predicted that the overall semiconductor industry will be back on track toward growth by the second half of 2023, which is still some time away.
Unlike in the past when Apple used to split its chip manufacturing between Samsung and TSMC, TSMC manufactures all the SoCs that the Cupertino company uses in its products. This has helped TSMC expand its business, with future plans to increase capacity in the US and Japan. The A-series chips used in iPhone and iPad, as well as the M-series chips used in Mac are all manufactured by TSMC.
Apple had recently agreed to a price hike of up to 6% by TSMC, despite the latter being slow in increasing its price over the years. This is likely due to the COVID-19 pandemic in the past few years which has led to an increase in demand for semiconductors, with the foundry finding its capacity in short supply.
It was previously reported that TMSC will manufacture the upcoming A17 and M3 chips on a 3nm process in 2024. It is the only foundry in the world that will be using the mature process, which gives it an edge over its rivals. However, Intel and Samsung have plans to catch up and 2024 may look very different from 2022 for the semiconductor industry.