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Chipmakers are benefiting from demand for next-generation telecommunications, high-performance computing and chips for use in products ranging from automobiles to medical devices.
Taiwan Semiconductor Manufacturing Co., the world’s largest contract maker of processor chips for smartphones and other products, said on Thursday that its quarterly profit jumped 79.7 percent from a year earlier to a record $8.8 billion. amid growing demand.
Quarterly revenue rose 47.9 percent from a year earlier to $19.2 billion, the company reported.
TSMC, based in Hsinchu, Taiwan, makes processor chips for brands including Apple Inc. and Qualcomm Inc. Many of its products are assembled in factories in China, which has exposed TSMC to the potential impact of US-China tensions. China on technology and security.
US-listed TSMC shares fell 14 percent in value after Washington tightened restrictions on Chinese access to advanced computer chips on Friday. Those controls are based on limiting the ability of TSMC and other suppliers to use US-made chips or technology for Chinese customers.
The US embassy in Beijing did not immediately respond to a question about whether TSMC had received a waiver that could allow normal supplies to Chinese factories to continue.
TSMC CEO CC Wei said in an earnings conference call that the rules set restrictions at very advanced levels that are mainly used for artificial intelligence or supercomputing applications.
“So our initial assessment is that the impact on TSMC is limited and manageable,” Wei told analysts. “We are closely monitoring the situation to make sure we are complying with all rules and regulations.”
TSMC’s chip supplies to China were already restricted under a 2020 order by then-President Donald Trump that bars suppliers from using American technology to manufacture for Huawei Technologies Ltd., a maker of network switching equipment and smartphones. . Washington says Huawei is a security risk and could facilitate Chinese espionage, which the company denies.
Chipmakers are benefiting from demand for next-generation telecommunications, high-performance computing and chips for use in products ranging from automobiles to medical devices.
TSMC announced plans last year to invest $100 billion over the next three years in manufacturing and research and development.
Most of the semiconductors used in smartphones, medical equipment, computers, and other products are made in Taiwan, South Korea, and China.
That has raised concerns among US officials about reliance on supplies that could be disrupted by the conflict between China and Taiwan. They are pressuring TSMC and other chipmakers to set up factories in the United States.
TSMC announced plans last year to build its first chip factory in Japan. The company and Sony Corp. later said they would jointly invest $7 billion in the facility.
TSMC operates a semiconductor wafer fabrication facility in Camas, Washington, and design centers in San Jose, California and Austin, Texas.
The company has announced plans for a second US production site in Arizona.