FILE PHOTO: A logo of Taiwan Semiconductor Manufacturing Co (TSMC) is seen at its headquarters in Hsinchu, Taiwan August 31, 2018. REUTERS/Tyrone Siu/File Photo
TAIPEI (Reuters) – Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker, posted second-quarter profit largely in line with estimates on Thursday, amid sluggish demand from phone makers impacted by a Sino-U.S. trade spat.
TSMC, a proxy for technology demand as its clients include iPhone maker Apple and chip leader Qualcomm Inc, said April-June net profit fell 7.6% to T$66.765 billion ($2.15 billion). That compared with the T$65.92 billion average of 21 analyst estimates compiled by Refinitiv.
Revenue rose 3.3% to T$241 billion from the same period a year earlier. However, if calculated in U.S. dollars, revenue declined 1.4% to $7.75 billion – still beating the company’s previous estimated range of $7.55 billion to $7.65 billion, and the $7.6 billion average of 23 analyst estimates.
Taiwan’s supply chain manufacturers have been navigating slowing global demand for smartphones – a primary source of revenue – as well as market disruption stemming from tit-for-tat import tariffs between China and the United States, plus the latter’s ban on U.S. companies doing business with Chinese telecoms equipment maker Huawei Technologies Co Ltd.
Prior to the announcement, shares in TSMC closed up 0.8% versus a 0.25% fall in the wider market. The stock has risen around 13% so far this year.
Reporting by Yimou Lee; Editing by Christopher Cushing