TSMC's Q1 profit up 45%, beats market estimates

FILE PHOTO: The logo of Taiwan Semiconductor Manufacturing Co (TSMC) is pictured at its headquarters, in Hsinchu, Taiwan, January 19, 2021. REUTERS/Ann Wang

TAIPEI: Taiwanese chip firm TSMC posted a 45% jump in quarterly net profit on Thursday, boosted by booming semiconductor demand during the COVID-19 pandemic that has led to a global chip crunch.

Net profit for January-March at Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world's largest contract chipmaker and a major Apple Inc supplier, rose to T$202.7 billion ($7 billion) from T$139.7 billion a year earlier.

That compared with the T$184.67 billion average of 19 analyst estimates compiled by Refinitiv.

The company, which also has customers such as Qualcomm Inc , has previously said it expected strong growth to accelerate in coming years due to robust demand for chips that power everything from smartphones to cars and lifted capital spending for this year.

TSMC's revenue for the quarter climbed 36% to $17.57 billion, above the company's prior estimated range of $16.6 billion to $17.2 billion.

The company has said it expected chip capacity to remain tight this year, a shortage of which has forced automakers and electronics manufacturers to cut production but keeping order books full at TSMC and other chipmakers.

Shares of TSMC have fallen about 6.8% so far this year, giving the firm a market value of $511.1 billion. The stock closed flat on Thursday, compared with a 0.3% fall for the benchmark index. - Reuters

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