TSMC (Taiwan Semiconductor Manufacturing Company) has shared its financial report for the fourth quarter of 2019. The quarter saw the company having a growth in both revenue and profits alongside an increase in shipments of 7nm chips.
The company is a major player in the semiconductor market and is a key supplier of chipsets across smartphones and even desktop grade processors. According to the financial report, TSMC generated a revenue of 10.5 billion US Dollars out of which profits amounted to 3.8 billion US Dollars in Q4 2019. This marks a 10.6 percent of growth over Q3 2019. The figures have also slightly surpassed expectations from analysts that had predicted income of 3.7 billion US Dollars.
Notably, one of the main contributing areas where the company generated its revenue from was the 7nm chipset category. The size is currently used in various high end smartphone processors while even being the next step in advancement in computer CPUs as well. 7nm chips contributed 35 percent of total wafer revenue, in comparison, the 10nm only garnered 1 percent of the same in Q4 2019.
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As mentioned earlier, the 7nm chips are booming after AMD, a known chipmaker in the desktop PC market, ordered 20 percent of TSMC’s 7nm processing capacity. Recently, AMD‘s third generation of Ryzen processors and Radeon graphic cards have shifted towards 7nm processing, unlike Intel that is still struggling to reach 10nm after its 14nm processors. Hence, TSMC is currently seeing gross margins that have surpassed the other three quarters of 2019.
Furthermore, TSMC saw a yearly revenue of 35.7 billion US Dollars and expects to see a notable growth of 15-20 percent in revenue; thanks to the new 5nm processing nodes being planned for mass production. The smartphone market has seen stagnation recently but is still expected to see a global shipment of around 1.4 billion units in 2020, an increase of 1.5 percent over 2019 due to an increase in demand for 5G networking.
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(Via)
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