TSMC bucks broader chip slump with 50% revenue surge, helped by Apple iPhone orders - CNBC

TSMC, the world's largest declaration chipmaker, connected Friday reported a surge successful gross successful November acknowledgment successful portion to orders of semiconductors for high-end smartphones specified arsenic Apple's iPhone.

The Taiwanese firm, which makes chips for different companies, said November gross totaled 222.71 cardinal caller Taiwan dollars ($7.27 billion), a 50.2% year-over-year rise.

TSMC makes chips for a wide array of companies, including the latest semiconductors for Apple and Qualcomm arsenic good arsenic SoftBank-owned Arm. The institution has bucked a slowdown successful areas of the spot marketplace successful the look of rising prices, fears of a planetary recession and Covid disruptions successful China.

The November gross study puts TSMC connected way to deed its antecedently stated 4th fourth guidance of betwixt $19.9 cardinal and $20.7 billion. In October and November, TSMC's gross totaled astir $14.1 billion.

"TSMC's Oct/Nov revenues are connected way comparing to what the absorption guided 2 months ago, contempt important concern slowdowns successful galore different semi names," Dale Gai, semiconductor expert astatine Counterpoint Research, told CNBC via email.

Gai said "high-end smartphones" specified arsenic the A16 chip for Apple's iPhone and the latest semiconductor from Qualcomm contributed to the "majority of its (TSMC's) seasonal strength."

The expert said immoderate chips for alleged high-performance computing besides contributed to the beardown acceptable of numbers.

TSMC is arguably the the world's astir important semiconductor manufacturer. It has a immense acceptable of clients that trust connected it for the astir cutting-edge chips.

It has besides been caught up successful the middle of the U.S.-China tech conflict implicit chips. The United States has sought to chopped China disconnected from captious chips and tools portion trying to reshore semiconductor production.

Earlier this week, TSMC announced the opening of a second spot works successful Arizona, upping its concern successful the authorities from $12 cardinal to $40 billion. President Joe Biden was astatine the lawsuit wherever the concern was announced, underscoring the captious relation that TSMC volition play successful the American semiconductor sector.

Apple CEO Tim Cook besides attended the lawsuit and said the iPhone shaper would bargain TSMC's U.S.-made chips.

While TSMC's November gross is getting a boost from Apple, analysts are disquieted astir weaker orders adjacent year.

"The existent trial for the institution volition be" successful the archetypal fractional of 2023, said Sze Ho Ng, expert astatine concern slope China Renaissance.