Losing orders from Huawei, TSMC still forecast revenue growth of up to 20% this year

Tram Ho

TSMC recently confirmed that it has stopped manufacturing new chip orders for Huawei Technologies to comply with the new US export regulations. Still, the company says it will achieve its revenue growth target of more than 20% this year thanks to strong demand for 5G smartphones, infrastructure and performance computing applications. high.

After the government tightened export regulations, non-US chipmaking companies like TSMC must also obtain a license if they want to use American technology and tools when making chips for Huawei. Therefore, after May 15, TSMC and many other chip processing companies stopped accepting new orders from Huawei and only shipped orders completed before September 14.

Mất đơn hàng từ Huawei, TSMC vẫn dự báo tăng trưởng doanh thu lên tới 20% trong năm nay - Ảnh 1.

Despite this, TSMC still forecast its revenue in the quarter from June to September this year can reach from 11.2 billion to 11.5 billion, up more than 20% over the same period last year and much higher than analysts’ forecast – about $ 10.7 billion.

The Taiwanese chip giant has even increased its revenue growth target for the year to 20% and said it will increase capital spending even further, to $ 17 billion this year, from 15. billion USD to 16 billion USD initially.

The chip-making giant said positive financial results proved its persistence amid the global pandemic and Huawei, one of its largest customers, was hit by sanctions. goverment American. According to TSMC, this is thanks to its diverse customer base and industry leaders.

Apple is preparing to introduce its first 5G iPhone line this year, and it is already preparing to ship 80 million new iPhones. Not only is the chip supplier unique to the iPhone, TSMC is also a chip processor for most of the world’s leading chip developers today, including Qualcomm, Nvidia, Broadcom, ADI, MediaTek and NXP.

Not only that, they are also a manufacturer for US chip development firm Xilinx with semiconductor products of military standards that will be used in F-35 fighters. In May, TSMC announced plans to build a $ 12 billion chip factory in Arizona, USA.

Despite the positive business results this year, TSMC still warns about the risks ahead:

“We recognize that our customers have high expectations and are preparing to launch many 5G smartphone products … We cannot rule out the possibility of adjusting (customer) inventories in the future. ” CFO Wendell Huang said. “We will wait to see how the sales process will take place.”

References Nikkei

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Source : Genk