Taiwan Semiconductor Manufacturing Co. net profit for the third quarter increased to a record thanks to strong chip demand for electronics devices and data processing.
The world's largest chipmaker announced on Thursday that net profit was 156.26 billion New Taiwan dollarsTaiwan dollars US $5.57 billion up from $137.31 billion a year earlier. That beat the estimate of NT $149.42 billion from a poll of analysts of S&P Global Market Intelligence.
Its revenue rose 16% to $414.67 billion from a year earlier, coming to NT$444.67 billion. Both its net revenues and quarterly profit were record highs.
Some analysts said higher costs of raw materials and depreciation could weigh on the company's margins. TSMC announced earlier this year that it plans to invest US $100 billion over the next three years to increase production capacity.
Its revenue from smartphones rose 15% over the previous quarter, while revenue from High-performance Computing increased 9%.
TSMC said that revenue from customers in China made up 65% of its third-quarter revenue, up from 64% in the second quarter, while revenue from North America accounted for 11% of the total, unchanged from the previous quarter.