Apple Chipmaker TSMC’s Profit Soars on iPhone Demand
- Lowers outlook a few percentage points to reflect Covid-19
- TSMC benefits from high-end chip demand as Covid-19 plays out
Taiwan Semiconductor Manufacturing Co. is sticking with plans for aggressive capital investments in 2020, a sign from the technology bellwether of resilient demand despite a pandemic-induced downturn.
TSMC, a barometer for the tech industry thanks to its heft in the global supply chain, on Thursday lowered its revenue outlook for the year by a few percentage points to reflect the new Covid-19 reality. But it still expects robust demand for the semiconductors in datacenters that are now hosting an unprecedented surge in online activity. On Thursday, executives adhered to their goal of ear-marking $15 billion to $16 billion for capital spending in 2020, up from last year’s $14.9 billion. And they forecast revenue growth of about 30% this quarter.