Taipei, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, reported Thursday that its net profit for the first quarter fell 9.6 percent from a quarter earlier, with market analysts attributing the drop to the slow season effect.
While global demand for communication devices fell in the first quarter, a traditional slow season, TSMC benefited from increasing orders for its chips used in mining devices for Bitcoin transactions, which offset the impact from the slow season effect to some extent, analysts added.
Bitcoin mining is a peer-to-peer computer process used to secure and verify Bitcoin transactions, referring to payments from one user to another in a decentralized market.
In the first quarter, TSMC posted NT$89.79 billion (US$3.05 billion) in net profit, down 9.6 percent from the previous quarter, which was in line with earlier market expectations. The first- quarter figure, however, was up 2.5 percent from a year earlier, company data shows.
Its earnings per share (EPS) for the January-March period stood at NT$3.46, compared with NT$3.83 in the previous quarter and NT$3.38 over the same period of last year.
TSMC's consolidated sales for the first quarter fell 8.2 percent from a quarter earlier to US$8.46 billion, which came within the company's sales guidance of between US$8.4 billion and US$8.5 billion. But, the first quarter sales was up 12.7 percent from a year earlier.
TSMC said sales generated from chips used in computer production rose 30 percent from a quarter earlier in the first quarter and revenue generated from chips used in consumer electronics also grew 9 percent, while sales generated from chips used in communications and industrial products fell 19 percent and 4 percent, respectively.
Source: Focus Taiwan News Channel