Taiwan Chipmaker TSMC Says Quarterly Profit $8.8 Billion – The Diplomat

Pacific Cash | Financial system | East Asia

Taiwan Semiconductor Manufacturing Co., the most important contract producer of processor chips for smartphones and different merchandise, mentioned Thursday that its quarterly revenue rose 79.7 % over a yr earlier to a document $8.8 billion amid surging demand.

Quarterly income rose 47.9 % over a yr in the past to $19.2 billion, the corporate reported.

TSMC, headquartered in Hsinchu, Taiwan, makes processor chips for manufacturers together with Apple Inc. and Qualcomm Inc. A lot of their merchandise are assembled by factories in China, which has uncovered TSMC to the doable impression of U.S.-Chinese language pressure over expertise and safety.

TSMC’s U.S.-traded shares fell 14 % in worth after Washington on Friday tightened restrictions on Chinese language entry to superior laptop chips. These controls are based mostly on limiting the flexibility of TSMC and different suppliers to make use of U.S. chip or manufacturing expertise for Chinese language prospects.

The American Embassy in Beijing didn’t instantly reply to a query about whether or not TSMC had obtained an exemption that may enable regular provides to Chinese language factories to proceed.

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TSMC’s CEO, C.C. Wei mentioned in an earnings convention name that the foundations set restrictions at very superior ranges primarily used for synthetic intelligence or supercomputing functions.

“Due to this fact, our preliminary evaluation is the impression to TSMC is proscribed and manageable,” Wei instructed analysts. “We’re carefully monitoring the state of affairs to make sure we adjust to all the foundations and rules.”

TSMC’s chip provides to China already have been restricted below a 2020 order by then-President Donald Trump that prohibits distributors from utilizing U.S. expertise to fabricate for Huawei Applied sciences Ltd., a maker of community switching gear and smartphones. Washington says Huawei is a safety threat and would possibly facilitate Chinese language spying, which the corporate denies.

Chipmakers are benefiting for demand for next-generation telecoms, high-performance computing and chips to be used in merchandise from automobiles to medical units.

TSMC introduced plans final yr to speculate $100 billion over the subsequent three years in manufacturing and analysis and improvement.

Most semiconductors utilized in smartphones, medical gear, computer systems and different merchandise are made in Taiwan, South Korea and China.

That has prompted concern amongst American officers about reliance on provides that may be disrupted by battle between China and Taiwan. They’re lobbying TSMC and different chipmakers to arrange factories in america.

TSMC introduced plans final yr to construct its first chip manufacturing unit in Japan. The corporate and Sony Corp. later mentioned they’d collectively make investments $7 billion within the facility.

TSMC operates a semiconductor wafer fabrication facility in Camas, Washington, and design facilities in San Jose, California, and Austin, Texas.

The corporate has introduced plans for a second U.S. manufacturing web site in Arizona.