TSMC Q4 profit rises 23% to record high on work-from-home, iPhone boost

[TAIPEI] Taiwan Semiconductor Manufacturing Co (TSMC) posted on Thursday a record high quarterly profit, boosted by demand for devices requiring high-end chips as the pandemic forces people to work from home and for Apple's new iPhone.

October-December net profit for TSMC, the world's largest contract chipmaker, reached T$142.8 billion (S$6.76 billion), 23 per cent higher than a year ago.

That was better than the T$135.39 billion average of 22 analyst estimates compiled by Refinitiv.

Revenue for the Apple supplier rose 22 per cent to US$12.68 billion, versus its earlier estimated range of US$12.4 billion to US$12.7 billion.

Analysts said sales of advanced chips have been boosted by strong demand for high-end smartphones including the iPhone 12 as well as for devices equipped with new technology such as fifth-generation (5G) networking and artificial intelligence.

The Taiwanese manufacturer, whose clients also include Qualcomm, has benefited from the Covid-19 pandemic as corporations seek to add more bandwidth for remote workers and people working from home invest in premium devices.

TSMC's share price has jumped more than 11 per cent in 2021, giving the stock a market value of US$560.7 billion.

REUTERS