TSMC up 4% on first monthly sales gain since February
Shares of Taiwan Semiconductor Manufacturing Company (TSMC) soared by up to 4.1%, following the announcement of the company's first monthly sales gain since February. This indicates a rebound in the worldwide chip market after the COVID-19-induced slump. As the leading provider of custom-made chips, TSMC reported a 15.7% year-on-year rise in revenue to NT$243.2 billion (Rs. 62,580 crore) in October. This figure is a major 34.8% increase from September. At the time of writing, shares traded NT$572 apiece, up 2.69%.
Sales boost attributed to advanced chip process
TSMC's increased sales growth in October is credited to strong demand for its advanced 3-nanometer chip process. In the third quarter, this process made up 6% of TSMC's total sales, while the 5-nanometer and 7-nanometer processes contributed 37% and 16%, respectively. Despite ongoing inventory adjustments among some consumer electronics clients, these advanced technologies accounted for 59% of the company's overall revenue.
Signs of recovery in smartphone demand
The unveiling of new 5G mobile chips by Taiwanese smartphone IC designer MediaTek and its US counterpart Qualcomm, has led to a resurgence in smartphone demand from end-users, which is promising for TSMC. Nevertheless, analysts anticipate that TSMC's revenue for November and December may be lower despite the robust sales performance in October.
