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Chip boom propels TSMC to strong Q4 profit, just below record levels
[TAIPEI] Taiwan Semiconductor Manufacturing Co Ltd, the world's largest contract chipmaker, logged a strong fourth quarter with profit coming in only a little below record levels.
A key supplier for Apple, Qualcomm and Nvidia, TSMC has also benefited from steady growth in demand for chips used in newer technologies such as artificial intelligence, cloud computing and self-driving cars that require chips with more processing power.
TSMC booked NT$99.29 billion (S$4.4 billion) in net profit, just 0.9 per cent below the same quarter a year earlier and slightly ahead of an average forecast of T$97.78 billion drawn from 20 analysts polled by Thomson Reuters.
Analysts also note that the heavy use of chips needed for bitcoin and other cryptocurrency mining has also proven to be a boon for TSMC, which has seen its market value grow 38 per cent over the past year to US$212 billion.
Revenue climbed to US$9.2 billion, in line with guidance provided by the company and representing a 5.9 per cent increase from a year earlier and 10.1 per cent gain over the previous quarter.
For the current quarter, usually a slower period for the technology sector, TSMC said it saw revenue at US$8.4 billion to US$8.5 billion.
In late September, TSMC announced it would build a three nanometre fab in Taiwan.