Apple A-Series chip partner TSMC expects a strong second half of 2019 for its economy based on strong demand for its chips, even after the manufacturer hit both its own revenue and analysts for the last quarter.
The marketing of 5G with carriers worldwide will help TSMC generate more orders for its chips for the rest of 201
For the quarter, sales increased 3.3% to T $ 241 billion ($ 7.7 billion), but in US dollars it fell 1.4%, Reuters reports. Nevertheless, this is a better performance than the TSMC's own forecast for the period, as well as an average from Wall Street analysts. However, it met analysts' net profit surplus of $ 66.77 billion ($ 2.15 billion), but this is a 7.6 percent decline year on year.
As with other vendors, TSMC needs to navigate a brake economy and reduced demand for smartphone sales, as well as the impact of the US and China trade war and the US Huawei technology ban.
"Although our business continues to be affected by a glowing slow economy, we have also passed the bottom of the business cycle and once again began to see demand increase," CEO and Vice President C.C. Wei informed analysts during a earnings call.
TSMC's performance is generally an indicator of the wider technical industry's overall health. While Apple is a leading headline client for the company, it also produces chips for many other device vendors at the same time, so it can act as a proxy for Apple.
TSMC is believed to have already started mass production for the Apple-designed "A13" chip, which will be central to the iPhone9 update from 2019 because of this in September.