Taiwan's TSMC posted a 76.4 percent surge in second-quarter profit on Thursday, the biggest jump in earnings in eight quarters that handily beat market estimates, thanks to red-hot demand for its chips amid a two-year long global shortage. Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker and a major Apple supplier, said net profit for April-June rose to a record TWD 237 billion (roughly Rs. 63,300 crore).
That beat an average TWD 219.13 billion estimate from 19 analysts compiled by Refinitiv.
The strong results underscore demand for Apple's iPhone 13 that continues to sell well despite record global inflation and worries of a looming recession, as well as solid sales of high performance computing (HPC) chips used in 5G networks and artificial intelligence.
Some chipmakers including Micron Technology have recently said the tight chip market has given way to a glut in a matter of weeks, following two years of huge pandemic-fuelled sales of phones and laptops that caused a crisis.
The shortage had also hurt global automakers that were forced to cut production.
Revenue for the quarter climbed 36.6 percent to $18.16 billion (roughly Rs. 1,45,100 crore), higher than its previous estimated range of between $17.6 billion (roughly Rs. 1,40,600 crore) and $18.2 billion (roughly Rs. 1,45,400 crore).
Shares of TSMC have fallen about 23 percent so far this year, giving the firm a market value of $408.3 billion (roughly Rs. 32,62,900 crore). The stock rose 1 percent on Thursday, compared with a 0.8 percent gain for the benchmark index.
© Thomson Reuters 2022