The largest contract chip manufacturer in the world, TSMC, reported a 50.2% year-over-year rise in November sales, which came to $7.27 billion. Even in the midst of the global economic crisis, which has disproportionately impacted tech companies, a large portion of this success may be ascribed to its cooperation with Apple.
In November, TSMC’s sales increased significantly, bringing in $7.27 billion in revenue. This puts the business on track to reach its expectation of $19.9 billion to $20.7 billion for the fourth quarter.
Counterpoint Research semiconductor researcher Dale Gai told CNBC:
Despite severe business slowdowns in several other semi companies, TSMC’s Oct./Nov. sales are on pace compared to what the management guided two months ago.
Apple, TSMC’s largest customer, recently stated that it will acquire chips from the supplier’s US facilities, reducing its reliance on Asian manufacturers, which may have contributed to the Taiwanese chipmaker’s outstanding performance in the quarter.
TSMC announced earlier this week that it would increase its building and manufacturing efforts in the US. The expansion will involve a $40 billion investment in two fabs in Arizona, an increase from the previously planned $12 billion. the new facilities will also be able to start manufacturing using the 4nm process, which is an upgrade from the previously planned 5nm wafers. the event was attended by President Joe Biden and Apple CEO Tim Cook.
The project is anticipated to generate tens of thousands of jobs and produce 600,000 wafers annually.
The 2023 iPhone 15’s A17 Bionic chip will be produced using the 3nm process, and Apple has also agreed, albeit reluctantly, to the price hike. Analysts are concerned about potential weaker orders in the coming year, despite the fact that TSMC is reportedly planning to increase its 3nm wafer prices by 25% over 5nm to $20,000, which is expected to boost its bottom line.
Source: CNBC
