FILE PHOTO: the logo of Taiwan Semiconductor Manufacturing Co. (TSMC), is seen at the company headquarters in Hsinchu, Taiwan-August 31, 2018. REUTERS/Tyrone Siu/File Photo
TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker, reported in the second quarter, the earnings are largely in line with estimates on Thursday, amid a lack of demand from the phone makers will be influenced by a Sino-AMERICAN trade spat.
TSMC, as a proxy for technology and demand as our clients are, among other things, the iPhone-maker Apple, chip leader Qualcomm Inc., said April-June net profit fell more than 7.6% to$66.765-billion ($2.15 billion). That is, as compared with the T$65.92 billion average of 21 analyst estimates compiled by Refinitiv.
Revenue increased by 3.3% To$241 billion in the same period of the previous year. However, when calculated in US dollars, revenues decreased 1.4% to $7.75 billion, still beat the company’s previous estimated range of $7.55 billion to $7.65 billion and $7.6 billion average of 23 analyst estimates.
Taiwan’s supply chain, manufacturers will have to navigate with the slowing down of the global demand for smartphones to be a primary source of revenue and market disruption that arise from the tit-for-tat import tariffs between China and the United States of america, and the recent ban on AMERICAN companies doing business with Chinese telecom equipment maker Huawei Technologies Co., Ltd.
Prior to the announcement, shares of TSMC closed up 0.8% versus a 0.25% fall in the broader market. The stock has risen about 13% this year.
Reporting by Yimou Lee; Editing by Christopher Cushing