TSMC (Taiwan Semiconductor Manufacturing Company) has just revealed that it is expecting a revenue rise of 30 percent in 2020. This financial projection arrives despite the company recently losing one of its major clients, Huawei.
According to a Nikkei report, the world’s largest contract chipmaker is set to see a sizeable jump in revenue of 30 percent this year. A primary factor that led to such growth is the Coronavirus pandemic, which caused an immense growth in demand for digital solutions and smartphone OEMs aggressively pushing for 5G chips for their handset offerings.
As per an official statement from TSMC, the company’s revenue for the final quarter of 2020 could be between 12.4 billion to 12.7 billion US Dollars. This would mark a market consensus upwards of around 20 percent on the year. The chipmaker further added that this growth did not factor in any business with Huawei Technologies into its forecast.
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For those unaware, Huawei lost TSMC as its primary chip supplier earlier this year due to US sanctions, and as of 15th September 2020, is no longer supplied by the firm. At the moment, TSMC has declined on commenting on whether it has applied for a license to supply the Chinese tech giant. The Taiwanese company also supplied a majority of chip developers from across the globe, with its capital spending reaching 17 billion US Dollars.
According to TSMC CEO and Vice Chairman C.C. Wei, “TSMC will continue to focus on Taiwan. That’s our center of R&D and the majority of our production will continue to be located in Taiwan, regardless of the geopolitical tensions, or any kind of disruptions.” Its plan to build a 12 billion US Dollar chip facility in the US will also not be affected by the US presidential election.
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