Taiwan Chipmaker TSMC Says Quarterly Revenue $8.8 Billion

TAIPEI, Taiwan (AP) — Taiwan Semiconductor Manufacturing Co., the most important contract producer of processor chips for smartphones and different merchandise, stated Thursday that its quarterly revenue rose 79.7% over a yr earlier to $8.8 billion amid surging demand.

Quarterly income rose 47.9% over a yr in the past to $19.2 billion, the corporate reported.

TSMC, headquartered in Hsinchu, Taiwan, makes processor chips for manufacturers together with Apple Inc. and Qualcomm Inc. Many of their merchandise are assembled by factories in China, which has uncovered TSMC to the doable impression of U.S.-Chinese pressure over know-how and safety.

TSMC’s U.S.-traded shares fell 14% in worth after Washington on Friday tightened restrictions on Chinese entry to superior pc chips. Those controls are primarily based on limiting the flexibility of TSMC and different suppliers to make use of U.S. chip or manufacturing know-how for Chinese prospects.

The American Embassy in Beijing did not instantly reply to a query about whether or not TSMC had obtained an exemption which may enable regular provides to Chinese factories to proceed.

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TSMC’s chip provides to China already had been restricted beneath a 2020 order by then-President Donald Trump that prohibits distributors from utilizing U.S. know-how to fabricate for Huawei Technologies Ltd., a maker of community switching gear and smartphones. Washington says Huawei is a safety threat and would possibly facilitate Chinese spying, which the corporate denies.

Chipmakers are benefiting for demand for next-generation telecoms, high-performance computing and chips to be used in merchandise from automobiles to medical units.

TSMC introduced plans final yr to take a position $100 billion over the subsequent three years in manufacturing and analysis and growth.

Most semiconductors utilized in smartphones, medical gear, computer systems and different merchandise are made in Taiwan, South Korea and China.

That has prompted concern amongst American officers about reliance on provides that is likely to be disrupted by battle between China and Taiwan. They are lobbying TSMC and different chipmakers to arrange factories within the United States.

TSMC introduced plans final yr to construct its first chip manufacturing unit in Japan. The firm and Sony Corp. later stated they might collectively make investments $7 billion within the facility.

TSMC operates a semiconductor wafer fabrication facility in Camas, Washington, and design facilities in San Jose, California, and Austin, Texas.

The firm has introduced plans for a second U.S. manufacturing web site in Arizona.

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