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TSMC’s strong guidance bodes well for Apple

Chip manufacturing giant TSMC increased both year-round revenue and cap-ex guidance, as it continues to see strong orders from smartphone, PC and data center chip clients.

TSMC secures government grants and picks site for $ 12 billion US facilities

Eric Jhonsa for TheStreet:

The business still looks very good for TSMC. And that probably says a lot about how the company currently looks for large TSMC clients like Apple … TSMC, the world’s largest chip foundry (contract manufacturer), just reported Q3 revenues of NT $ 356.4 billion dollars (up 22% annually and equivalent to $ $ 12.39 billion) and EPS of $ 0.90.

TSMC’s guidance was also strong. The company:
Guided Q4 revenue of $ 12.4 billion to $ 12.7 billion – up 29% to 33% annually and above a consensus of $ 12.02 billion.
• Guided that revenues in 2020 should increase by approximately 30%. It has improved from July guidance for 20% -plus growth.
• Guided 2020 investment of around $ 17 billion, citing the need to support increased demand. This forecast is up from a $ 16 billion outlook to $ 17 billion in July, not to mention the $ 15 billion to $ 16 billion outlook for April.

This revelation follows Q3 guidance tours from other Apple vendors, such as NXP Semiconductors, STMicroelectronics and Knowles. TSMC-produced chips known or believed to be used by Apple’s iPhone 12 series include Apple’s A14 Bionic SoC – made using TSMC’s N5 process, the first to rely on its groundbreaking 5-nanometer (5nm) manufacturing process node.

MacDailyNews Take: The stars are set for Apple’s iPhone to start taking back the share of smartphones that have been stolen by knockoff smiths around the world, and vendors like TSMC will benefit greatly.

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