Apple will certainly earn truckloads of money from its latest flagship – the iPhone 7 – but there are other companies that will net hefty profits as well and one among them is Taiwan’s Taiwan Semiconductor Manufacturing Co (TSMC).
TSMC, which is world’s biggest contract microchip maker by revenue, announced recently that they have witnesses a massive surge in their profits – almost 33 per cent increase compared with last year – and this is directly linked with the large number of orders it would have garnered from Apple. The company posted a 28.4 per cent year-on-year jump in profit to TWD 96.76 billion ($3.06 billion) in the three months to September. That was also up 33.4 per cent from the second quarter.
Further, third-quarter revenue for the company rose 22.5 per cent on-year and 17.4 per cent on-quarter, respectively, to TWD $260.41 billion, beating the company’s own forecasts of TWD $254-$257 billion.
TSMC has never officially confirmed it is an Apple chip supplier but industry watchers said the company produced the A10 chip for the iPhone 7 series that went on sale in September.
Apple has reportedly ordered at least 72 million units of the iPhone 7 series from its Taiwanese suppliers, a significantly higher figure than the 65 million previously predicted by some analysts.
Samsung’s Galaxy Note 7 woes also came into play – and could further help TSMC’s performance in the fourth quarter. Samsung started to recall millions of its Galaxy Note 7 smartphones in early September after several devices exploded or caught fire. The company said Tuesday it was scrapping production of Galaxy Note 7, following reports that replacements for combustible models were also catching fire.
Looking ahead, TSMC forecast fourth-quarter revenue to be around TWD $255-$258, saying demand for high-end smartphones would continue to improve. It also estimated overall 10 percent revenue growth for 2016.
TSMC had seen its profits slip in the first six months as it vied with regional rivals such as Samsung and Chinese firms for a greater share of a weakening smartphone and electronics market.