TSMC posts over NT$100 billion in sales for 6th straight month

Taipei The sales of Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, topped NT$100 billion for a sixth straight month in January because of solid demand for 5G smartphones, analysts said.

In a statement issued Monday, TSMC said it posted consolidated sales of NT$103.68 billion in January, up 0.4 percent from a month earlier.

The increase was driven by rising global demand for high end smartphones, which offset the typical slowdown in sales seen in the semiconductor sector in the first quarter, according to analysts.

On a year on year basis, TSMC's January consolidated sales rose 32.8 percent, indicating the reduced number of working days because of the Lunar New Year holiday in January had little effect on the pure play wafer foundry operator's revenue, analysts said.

The increase in revenue in January also suggested that the company had yet to see negative effects from the novel coronavirus outbreak that originated in Wuhan, China, and has led to lockdowns of many Chinese cities.

TSMC said its wafer plants in Nanjing and Songjiang District in Shanghai were fully back at work Monday as scheduled after the Lunar New Year holiday, and they were complying with epidemic regulations set by the Chinese government.

The chipmaker had been running its 12 inch wafer plant in Nanjing and 8 inch wafer plant in Songjiang 24 hours a day during the holiday period, but non production employees returned to work Monday.

The chipmaker said it will prioritize epidemic prevention at the two plants in the coming weeks and continue to follow developments closely.

Last week, TSMC said it decided to leave its first quarter sales forecast unchanged in view of what it saw as the minimal impact of the coronavirus scare.

At an investor conference in January, TSMC forecast first quarter sales of between US$10.2 billion and US$10.3 billion, with a median of US$10.25 billion, which would represent a 1.3 percent decline from the previous quarter.

The forecast was based mainly on strong demand for 5G smartphones as the world enters the 5G era, triggering waves of replacements that should offset the effects of the typically slow season in the chip industry, TSMC said.

Source: Focus Taiwan News Channel