TSMC resists chip market slowdown thanks to Apple orders

As the semiconductor market experiences a sharp slowdown, Taiwanese giant Taiwan Semiconductor Manufacturing Co (TSMC) has performs very well in November 2022 and announces an increase in its turnover of 50%.

TSMC is doing well

The largest chip manufacturer in the world does not know the crisis. Unlike most of its competitors, especially Chinese ones, TSMC is seeing its revenue rise 50% in November 2022, especially thanks to orders from Apple for the iPhone. The Taiwanese company said its revenue in November was 7.27 billion dollars, an increase of 50.2% compared to the same period last year. This is quite a small feat given the global economic context.

In the same category

The Line: Mohammed bin Salman’s futuristic megalopolis rises from the ground

TSMC makes semiconductors for many companies, but its main customers are Apple and Qualcomm, as well as Arm. These numbers show that the company has weathered the downturn in the chip industry, particularly due to inflation and rising prices, as well than the fear of a global recession and disruptions related to Covid-19 in China. TSMC is expected to meet its fourth-quarter targets of $19.9 billion to $20.7 billion in revenue.

Dale Gai, semiconductor market analyst at Counterpoint researchstated that ” high-end smartphones, especially the A16 chip for Apple’s iPhone and the latest semiconductor from Qualcomm have mainly contributed to this good trend at TSMC “. The company recently announced the opening of a second chip mill in Arizonawhich increases its investment in this state from 12 to 40 billion dollars.

President Joe Biden was present at the event where this new investment was announced, highlighting the critical role TSMC will play in the US chip market. Apple CEO Tim Cook also attended the event and said that the Apple-branded iPhone would buy TSMC’s US-made chips. If the Taiwanese manufacturer was indeed to end the year in style, analysts are worried about a drop in orders next year.

The real test for business will take place in the first half of 2023.

Leave a Comment