Chip maker TSMC’s record profit beats forecasts ahead of new iPhones

The world’s largest contract chip maker saw its net income for the September quarter rise to an all-time high of US$4.8 billion, buoyed by orders from biggest customer Apple

The Taiwanese company also received a boost during the quarter, as second-biggest customer Huawei raced to stockpile supplies before a US ban on the telecoms giant came into effect in September

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Published: 4:05pm, 15 Oct 2020Updated: 4:05pm, 15 Oct 2020

Taiwan Semiconductor Manufacturing Co (TSMC) reported a stronger-than-expected 36 per cent increase in profit, buoyed by orders from its largest customers, including Apple, ahead of new iPhone shipments to consumers.

The world’s largest contract chip maker saw net income for the three months to September rise to an all-time high of NT$137.3 billion (US$4.8 billion), versus the average analyst estimate of NT$126 billion.

Previously disclosed monthly numbers showed sales climbed to a record NT$356.4 billion in the quarter, suggesting that Apple’s main iPhone chip maker is benefiting from a gradual recovery in the global economy.

The Taiwanese company’s business typically kicks into high gear in the months before Apple unveils its new smartphones and the holiday season. It also received a boost during the quarter, as second-largest customer Huawei Technologies raced to stockpile supplies before a US ban on shipments to the Chinese telecommunications giant came into effect last month.

On Tuesday, Apple unveiled its latest iPhone line-up, saying two new models will come out on October 23 while two other models will arrive three weeks later. The Cupertino, California-based company expects to build at least 75 million new 5G iPhones this year, roughly in line with its previous flagship launch, Bloomberg News has reported.