Taipei-Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, said Friday that its sales for October hit the second highest monthly level in the company's history, up over 3 percent from a month earlier.
Analysts attributed the sales growth to strong global demand for high-end smartphones and high performance computing devices in the month.
Data released by TSMC showed its consolidated sales for October stood at NT$106.04 billion (US$3.49 billion), up 3.8 percent from a month earlier and also up 4.4 percent from a year earlier.
The October sales were the second monthly highest, trailing only the NT$106.12 billion recorded in August, the data indicated.
At an investor conference held in mid-October, TSMC gave fourth quarter guidance that it expects consolidated sales for the quarter to range from US$10.2 billion to US$10.3 billion, which would be the first time the chipmaker has posted quarterly consolidated sales over US$10 billion.
As long as TSMC maintains its the fourth quarter guidance, analysts said it is possible the company will continue to report monthly consolidated sales of around NT$100 billion in November and December.
In the first 10 months of the year, TSMC posted NT$858.79 billion in consolidated sales, up 1.8 percent from a year earlier.
Last week, TSMC Chairman Mark Liu (???) said at the company's annual sports day that he expects sales to be slightly higher this year than last year, though overall sales for the global semiconductor industry as a whole are forecast to fall 12 percent.
To meet strong demand for 5G devices, TSMC has invested heavily in advanced 7 nanometer and even more sophisticated 5nm processes this year, raising capital expenditure for the year to US$14-15 billion, an increase of US$4 billion from an earlier capex plan.
The 2019 capex will be the highest in the company's history.
As a result of this major increase in spending, Liu said TSMC expects to maintain its lead over peers in technology development, adding that with the explosive development in 5G technology, the company also anticipates significant growth in 2020.
TSMC reported its October sales data before the local equity market closed. On Friday, the company's shares experienced profit taking after earlier solid gains, falling 1.13 percent to close at NT$305.50.
Source: Focus Taiwan News Channel