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TSMC October sales hit new high

2017/11/10 18:19:27

CNA file photo

Taipei, Nov. 10 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電), the world's largest contract chipmaker, reported record monthly sales in October that analysts attributed to an increase in orders placed by Apple Inc.

TSMC, which is said to be supplying the A11 processor for production of the latest iPhones -- the iPhone 8, the iPhone 8 Plus and the premium iPhone X -- clearly benefited from the launch of the new flagship models in September, analysts said.

In October, TSMC posted consolidated sales of NT$94.52 billion (US$3.13 billion), smashing the previous high of NT$94.31 billion in August 2016, the chipmaker said.

The October revenue was up 6.7 percent from September, when consolidated sales fell 3.6 percent from a month earlier, TSMC said. The October figure was also up 3.8 percent from a year earlier, the company added.

Analysts said TSMC's shipments of the A11 processor gained added momentum in October, and with demand for the iPhone X strong, Apple orders are expected to drive TSMC's shipments of chips made with its advanced 10 nanometer process even higher and boost fourth quarter sales.

The comments echoed a forecast by TSMC President and Co-CEO Mark Liu (劉德音) at an investor conference on Oct. 19, which saw TSMC's consolidated sales ranging between US$9.1 billion and US$9.2 billion in the October-December period.

That would be about 10 percent higher than the previous quarter.

In the first 10 months of the year, TSMC's consolidated sales totaled NT$794.40 billion, up 2.3 percent from a year earlier.

Last week, TSMC Chairman Morris Chang (張忠謀) said TSMC's sales for the next three years could grow at a pace of 5-10 percent in U.S. dollar terms, spurred by the development of mobile devices, high-speed computing devices, automotive devices and the Internet of Things.

A day earlier, United Microelectronics Corp. (UMC, 聯電), a smaller rival of TSMC, reported a new high for monthly sales in October of NT$13.81 billion, up 16.37 percent from a month earlier.

The strong showing resulted from solid demand for UMC's 8-inch wafers, the chipmaker said.

In the first 10 months of the year, UMC posted sales of NT$126.46 billion, up 3.32 percent from a year earlier, the company said.

Before the release of its October sales report, TSMC fell 0.21 percent to close at NT$240.50 on Taiwan's stock exchange on Friday. But UMC bucked the downturn, closing 0.96 percent higher at NT$15.85 in reaction to its growing sales report released a day earlier. (Jackson Chang and Frances Huang)