Taiwan Semiconductor Manufacturing Co. (TSMC, ???), the world's largest contract chip maker, said Friday that its sales for August hit a record high in the company's history, with market analysts attributing the growth to solid demand for smartphone chips.
In August, TSMC posted NT$94.31 billion (US$2.99 billion) in consolidated sales, up 23.5 percent from a month earlier and also up 40.7 percent from the same period of the previous year.
Analysts said that low-end and mid-range smartphone suppliers in the Android camp placed orders with TSMC, which boosted its shipments in the month, while demand from Apple Inc., which just unveiled its latest iPhone models -- the iPhone 7 and the iPhone 7 Plus -- Wednesday, also gave a lift to the Taiwanese chip maker's sales.
According to analysts, TSMC has been supplying the A10 processor for use in the iPhone 7 models, at a time when Apple has been building up its stocks to meet future demand during the July-September period and for the year-end holiday season.
In the first eight months of this year, TSMC's consolidated sales totaled NT$596.01 billion, up 3.6 percent from a year earlier.
In mid-July, TSMC gave third-quarter guidance that said its consolidated sales will range between NT$254 billion and NT$257 billion, up 14.5 percent-16 percent from the second quarter.
During the July-August period, the chip maker's consolidated sales hit NT$170.70 billion, so it is very likely for the company to achieve its third-quarter sales goal, analysts said.
According to the analysts, the stronger Taiwan dollar in the current quarter has not compromised TSMC's sales growth, due to rising global demand for smartphone chips.
Earlier this week, TSMC President and Co-CEO Mark Liu (???) told a forum that the chip maker has anticipated inventory adjustments in the fourth quarter, a traditional slow season for the semiconductor industry, but its sales are not expected to fall too much.
Foreign brokerages said that TSMC's fourth-quarter sales could fall only 4-5 percent from the third quarter.
For its part, United Microelectronics Corp. (UMC, ??), the second-largest contract chip maker in Taiwan, said Friday that it posted NT$12.93 billion in consolidated sales for August, up 3.5 percent from a month earlier.
The August figure has been the second-highest level for this year for UMC, trailing NT$13.53 billion seen in June. Analysts said that the growth reflected growing demand for the chip maker's chips made on its advanced processes.
In the first eight months of this year, UMC's consolidated sales reached NT$96.83 billion, down 3.71 percent from a year earlier.
Source: Focus Taiwan News Channel