Apple Inc. AAPL-supplier Taiwan Semiconductor Mfg. Co. Ltd. TSM recorded an 80% surge in its third-quarter net profit at NT$280.87 billion ($8.81 billion).
What Happened: This is the company’s strongest growth in two years, supported by strong sales of its advanced chips used in data centers and electric cars, reported Reuters.
Gross margin for the quarter stood at 60.4%, operating margin came in at 50.6%, while net profit margin stood at 45.8%, the company said in a statement.
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While companies like Advanced Micro Devices Inc. AMD and Micron Technology Inc. MU have warned of weakening demand, analysts believe TSMC’s strong order book could be attributed to its dominance in making some of the world’s most advanced chips, the Reuters report said.
Wendell Huang, VP and Chief Financial Officer of TSMC, said, “Our third quarter business was supported by strong demand for our industry-leading 5nm technologies.”
“Moving into fourth quarter 2022, we expect our business to be flattish, as the end market demand weakens, and customers’ ongoing inventory adjustment is balanced by continued ramp-up for our industry-leading 5nm technologies,” Huang said.
Based on the company’s current business outlook, management expects the fourth-quarter revenue to be between $19.9 billion and $20.7 billion.
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