Taiwan Semiconductor Manufacturing Company (TSMC) TPE:2330,NYSE:TSM shows no signs of having its business impacted by Covid-19, as the company reported Friday that its month-on-month revenue and on-year revenue had increased by double-digits.
TSMC said that revenues for June 2020 came in at approximately $4 billion ($120.88 billion NTD), an increase of 28.8% from May 2020 and an increase of 40.8% from June 2019. Revenues for the company's first-half period, from January through June 2020, came in at $21 billion (NT$621.30 billion), or an increase of 35.2% compared to the same time in January 2019.
This double-digit increase in revenue comes as it parts ways with Huawei, one of its biggest customers. In May, it was reported that TSMC had accepted a 'kill' order for Huawei giving Huawei 120 days to load up on semiconductors from TSMC before the tap is turned off in September. It's likely that Huawei is doubling down on its purchase commitments in order to build up a supply, as its HiSilicon relies on TSMC's bleeding-edge 7nm (DUV) and 7nm+ (EUV) nodes for the Kirin 980, Kirin 990 4G, Kirin 985 4G and Kirin 990 5G. Although Samsung is also technically capable of producing the same process node, it won't likely accept orders from Huawei given the American scrutiny that would come with it.
In order to build up domestic capability, China's SMIC, a semiconductor fabrication company, is planning a listing on Shanghai's tech-focused STAR exchange with a target of $7.5 billion. According to reports, regulators fast-tracked the IPO, approving it just two weeks after the company applied, while the process normally takes months. Currently, SMIC is only able to produce chips on the 14nm process node while TSMC is able to produce 5nm chips.
In other news, TSMC announced earlier this week that it has closed the 'world's largest' corporate green power purchase agreement with Danish power company Ørsted. TSMC will purchase the entire productive capacity of two Ørsted wind farms, amounting to 920 megawatts (MW).
TSMC is scheduled to report quarterly earnings on July 16.
The post TSMC Reports Double Digit On-Year June Revenue Increase by Sam Reynolds appeared first on Wccftech.
source https://wccftech.com/tsmc-reports-double-digit-on-year-revenue-increases/
