TSMC has reported its earnings and things are looking good for the semiconductor manufacturer.
TSMC is currently benefiting from multiple industry trends. The global pandemic has increased demand for datacenters as companies are turning to the cloud to continue running.
Similarly, US officials have placed greater emphasis on in-country semiconductor manufacturing, as the pandemic showed the dangers of relying solely on overseas manufacturing. Capitalizing on that, TSMC announced its plans to build a semiconductor factory in Arizona
While not immediately benefiting TSMC, another factor that should help it in the long run is Apple’s decision to move Macs from Intel chips to custom silicon. TSMC already makes the custom silicon in Apple’s iPhones and iPads. It stands to reason TSMC will likely handle the chip manufacturing for Apple’s Macs as well.
As a result of these various factors, according to Bloomberg, TSMC “reported sales of NT$120.88 billion ($4.1 billion) for June on Friday. That likely means TSMC’s revenue grew about 29% to NT$310.7 billion last quarter, based on previously reported figures, beating the NT$308.8 billion analysts expect on average.”
It’s likely TSMC will continue to rise, both in the short and long-term. These various factors will also help offset lost business from Huawei, as the US has greatly restricted TSMC’s second-largest customer.