Taiwan Semiconductor Profit Rises 65% on Phone, Computer Component Demand
Morris Chang, chairman of TSMC
Maurice Tsai/Bloomberg
Morris Chang, chairman and chief executive officer of Taiwan Semiconductor Manufacturing Co.
Morris Chang, chairman and chief executive officer of Taiwan Semiconductor Manufacturing Co. Photographer: Maurice Tsai/Bloomberg
Taiwan Semiconductor Manufacturing Co., the world’s largest custom manufacturer of chips, posted a 65 percent increase in profit on rising demand for components in phones and computers.
Second-quarter net income climbed to NT$40.3 billion ($1.3 billion), from NT$24.4 billion a year earlier, the Hsinchu, Taiwan-based company said in a statement today. The average of 19 analyst estimates compiled by Bloomberg was for profit of NT$36.5 billion.
Taiwan Semiconductor, an electronics bellwether because it supplies companies including Apple Inc. and Sony Corp., has twice raised its 2010 outlook for the global chip industry. TSMC joins Intel Corp. and Samsung Electronics Co., the two largest chipmakers, in posting record profit from semiconductors as the global economy rebounds and consumers in emerging markets buy more electronic devices.
“Shipments jumped in the second quarter, indicating strong end-market demand for consumer electronics during the traditional low season,” Amigo Liu, who rates TSMC “outperform” at KGI Securities Co. in Taipei wrote in a report today before the announcement. “In the third quarter, shipments will continue to grow due to rising orders from major international handset manufacturers.”
To contact the reporter on this story: Tim Culpan in Taipei at tculpan1@bloomberg.net.
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