iPhone Orders Help Boost Revenue Of TSMC By 50%

The investors of the largest contract-based chip manufacturing company in the entire world, TSMC, will be anticipating the fourth quarterly earnings.

This is because the company has revealed it has recorded a significant surge in its revenue in the month of November, thanks to Apple.

Strong Revenue in November

TSMC officials are looking forward to the completion of the fourth quarter. They are strongly anticipating the earnings for the fourth quarter to come out so they can show how well they have performed.

There is a lot of confidence in the company’s tone as they feel they have already hit the revenue target for the fourth quarter.

The month of November has proven to be positive for the company as it has recorded a huge revenue in the particular period. The strong revenue was generated from the support of Apple.

Apple made several major orders for semiconductors that they would use during the manufacturing of the iPhones. These orders were enough to help TSMC build a strong revenue in November.

Revenue Shared for November

The chip manufacturing giant based in Taiwan is known for manufacturing chips for several companies from all over the world.

The company has announced that in the month of November, it generated $7.27 billion in revenue, translating to 222.71 billion new Taiwanese dollars.

The officials have confirmed that on a year-over-year scale, they have recorded a 50.2% surge in sales.

Companies Covered by TSMC

TSMC is known for manufacturing chips for several major companies. Some of the major brands the company has manufactured chips for include an arm owned by SoftBank.

The major names that TSMC manufactures chips for include Qualcomm and Apple. Although the company generated strong revenue in November, it does not mean that most of its year has been the same.

Like the rest of the companies from around the world, TSMC has also faced many issues throughout the year.

Whether it is the rising prices of supplies or the fears of a global recession, all these negative factors have continued affecting TSMC’s business.

Another factor that has continued hurting TSMC’s business is the Chinese COVID-19 crisis. The constant disruptions caused by COVID-19 in China have continued to take their toll on TSMC’s business and sales.

TSMC’s Fourth Quarter is in Good Shape

With the recent contribution of Apple, TSMC is looking at a very high revenue that will prove to be very helpful for the company for the entire year.

The running quarter has been the best-performing quarter for TSMC in the year 2022 in terms of generating revenue. The company had previously set its revenue forecast for the fourth quarter to be $20.7 billion.

However, the company had to reduce its revenue expectations due to the rise in supply costs and disruptions from China.

So far, TSMC has generated a revenue of $14.1 billion from the month of October and November combined. With the month of December still pending, TSMC may be able to achieve its old revenue guidance.

Comments from Dale Gai

One of the leading analysts for TSMC, Dale Gai from Counterpoint Research also talked in favor of TSMC.

Gai stated that it is very pleasing to see that TSMC has managed to hit its revenue targets for the month of October and November.

They seem to be in line with the old revenue estimations that they had made for the company. Initially, the revenue figures were quite high but they had to tone them down keeping the market conditions in mind.

It is a beautiful sight to witness that TSMC has gone against all odds and has proven that it is able to recover from potential losses.

Now, the company is on the right track and may even hit its December target for revenue that was previously reported. If that happens, the company will be able to hit a revenue figure of $20.7 billion.

The company’s stocks are down by 0.48% at the moment but it surely is looking at a bright 2023.