Taiwanese Semiconductor Manufacturing Company (TSMC) recently offered guidance indicating it expects record-high revenue for the fourth quarter. CFO Wendell Huang said his firm’s forecast is based on strong demand for its 5nm chips, which power Apple’s new iPhone 12 handsets.
TSMC’s sales could eclipse its outlook as select models of the Big Tech giant’s latest smartphones may have already sold out.
TSMC’s Record-High Q4 Forecast
For Q4, TSMC anticipates bringing in $12.4 billion to $12.7 billion in gross income. Provided it exceeds the low end of its sales range, it will break its all-time quarterly revenue record this period. In the three months ending September 30, the firm hit a new highest-grossing quarter watermark by taking in $12.4 billion.
The manufacturer’s Q4 earnings estimate would also represent 19.34 to 22.23 percent year-over-year growth.
Huang explained his company’s positive outlook is due to robust interest from its smartphone and high-performance computing (HPC) clients. Presently, TSMC is the only foundry capable of mass-producing 5nm components, which offer a 15 percent performance increase with 30 percent lower power consumption than the prior generation. Because of its technology’s exclusive and outstanding nature, the foundry’s products are heavily in demand.
The company’s ability to cultivate and fulfill market interest has pushed its growth to new heights as of late. CEO C.C. Wei said TSMC currently predicts its full-year income will exceed its 2019 total earnings by 30 percent. In July, the corporation’s anticipated its 2020 revenue would top its prior-year sales by 20 percent.
iPhone 12 Demand Could Push TSMC Q4 Revenue Past Forecast
Even though TSMC offered a record-breaking forecast for its Q4 revenue, the firm could be underestimating its quarterly intake. As Apple’s primary chip fabricator, the company typically experiences an end-of-year income boost because of its partner’s new hardware releases. But this holiday season, the manufacturer’s iPhone related sales spike may be higher than usual.
MacRumors discovered Apple’s website now informs customers that certain U.S. models of the Pacific Blue iPhone 12 Pro will not arrive until November 6-13. Earlier this week, the corporation announced that version of the handset will go on sale October 23. The website states select editions of the device have delayed availability because they have gone out of stock.
In addition, DigiTimes reported Taiwanese wireless carriers burned through their iPhone 12 and 12 Pro preorder allotments in 45 minutes on Thursday.
If Apple does sell out of the first wave of its 5G smartphones, the corporation will likely increase its chipset orders. Since it supposedly filled TSMC’s 5nm production capacity through year’s end, its new orders would not be filled until 2021.
While that development may annoy impatient Apple fans, it could help TSMC out gross its earnings expectations.