TSMC records second highest monthly sales in October

10 (CNA) Taiwan’s semiconductor manufacturing company (TSMC) said Thursday that it recorded the company’s second-highest monthly total sales ever in October, amid strong global demand for chips made in the company’s advanced 5nm process.

In a statement, the world’s largest contract chip maker said it posted NT$210.27 billion (US$6.61 billion) in consolidated sales in October, a 1% increase compared to September and a 56.3% year-over-year increase.

The company’s revenue for October — the third consecutive month of consolidated sales of more than NT$200 billion — was second only to NT$218.13 billion recorded in August, according to TSMC.

Analysts said the growing demand for smartphones and emerging technologies such as high performance computing (HPC) devices and automotive electronics has boosted shipments of chips made using TSMC’s 5nm process.

TSMC reported NT$1.85 trillion in consolidated sales during the first 10 months of 2022, up 44 percent from the previous year, according to the chip maker.

At an investor conference in mid-October, TSMC forecast fourth-quarter sales to range from $19.9 billion to $20.7 billion.

Despite the traditional effects of a slow season in the last three months of the year, the average point for this range, $20.3 billion, represents a 0.4 percent increase over the third quarter.

Analysts on TSMC forecast

Based on TSMC’s forecast, analysts forecast monthly sales of NT$208.3 billion to NT$220.9 billion for the November-December period, adding that they could not rule out the possibility of the chip maker surpassing its August total record.

TSMC also expects sales to increase year-over-year by 34 percent to 36 percent in US dollars in 2022.

Meanwhile, the chip maker said it expects continued revenue growth in 2023, with a long-term compound annual growth rate (CAGR) in sales of 15-20 percent.

Analysts said TSMC’s shipments should also get a boost from key customers such as US GPU designer Advanced Micro Devices (AMD) and Taiwan’s smartphone IC designer MediaTek Inc. They reveal new products.

Intel Corporation

In addition, the US company Intel is likely to outsource the deployment of CPUs to TSMC.

The Intel modules will be manufactured according to TSMC’s most advanced 3nm process, which is due to go into mass production later this year.

Despite this, TSMC cut its 2022 capex to about $36 billion from the bottom line of the $40 billion-$44 billion range in the previous capex plan, citing short-term market uncertainty.

TSMC’s decision comes amid stalled demand for semiconductors due to industry-wide inventory adjustments, and key interest rate hikes to combat fast-growing inflation by central banks around the world.

Other technology company sales reports

November 7: Hon Hai reports record October sales

November 5: Largan sales hit a 23-month high in October

November 3: HTC net loss expands in the third quarter

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