Skip to main content

Market Overview

Apple Supplier TSMC's Q1 Profit Jumps 19% Amid Chip Shortage

Share:
Apple Supplier TSMC's Q1 Profit Jumps 19% Amid Chip Shortage

Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM), the world’s largest contract chipmaker, on Wednesday reported a 19.4% rise in the first-quarter profit helped by strong demand for semiconductor chips from personal computers, smartphones and automobile sectors.

See also: How To Buy Apple Stock

What Happened: The Taiwanese contract supplier that counts Apple Inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA) among its customers reported a quarterly net profit of T$139.7 billion ($4.93 billion) for the three months ended March, compared with the T$116.99 billion ($4.13 billion) reported in the same quarter a year ago.

The company recorded a revenue of T$362.4 billion ($12.8 billion) and guided to a second-quarter revenue in the range of $12.9 billion to $13.2 billion.

Bloomberg News reported earlier this month that TSMC plans to spend $100 billion over the next three years to expand its chip fabrication capacity.

See Also: Apple Developing Ultra Advanced Displays With TSMC For AR Devices: Report

Why It Matters: A global semiconductor chip shortage has boosted demand as automakers, smartphone and appliance makers scramble to secure supplies. 

TSMC said in an earnings call, as reported by Bloomberg, its automotive customers can expect chip shortages to start easing next quarter but the shortages will still continue to last throughout 2021 and potentially into next year too.

Price Action: TSMC shares traded 0.5% higher in the pre-market session on Thursday after closing 0.35% lower at $120.84 on Wednesday.

Read Next: Cathie Wood Trims Tesla Stake And Loads Up Heavily On Coinbase

 Photo by iphonedigital on Flickr

 

Related Articles (TSM)

View Comments and Join the Discussion!

Posted-In: chipmakers chips semiconductorsEarnings News Guidance Tech Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com