Taiwan Semiconductor Manufacturing Co. (TSMC) said the quarterly net profit rose 81 percent to record levels and predicted huge revenue gains for the third quarter on strong orders for advanced chips.

Used in high performance chips 5G Telecom and other new technologies have been in strong demand, especially as more people work from home and companies scramble to add more bandwidth Coronavirus Ubiquitous epidemic.

The world’s largest contract chipmaker estimates revenue in the third quarter could be up 22 percent from $ 22.5 billion (about Rs. 86,428) a year earlier, a forecast that comes despite losing. Huawei Technology as a customer after the United States imposed a ban on selling to a Chinese company.

Chief Financial Officer Wendell Huang said in a briefing, “We expect our industry to support strong demand for our industry-leading 5 nanometer and 7 nanometer technologies, 5G smartphones, high-performance computing and IoT-related applications . “

April-June net profit stood at TWD 120.8 billion (about Rs 30,833 crore), 8 percent ahead of market expectations, while revenue for the quarter climbed 34.1 percent to 10.4 billion (about Rs 78,210 crore).

Underlining its booming outlook, it has set the capital expenditure plan for the year at $ 16- $ 17 billion (about Rs 1.20 lakh crore – approximately) from the earlier estimate of $ 15- $ 17 billion (about Rs 1.12 lakh crore). 1.27 lakh crores). 1.20 lakh crores approximately). It spent $ 14.9 billion (about 1.12 lakh crore rupees) in 2019.

TSMC, which matters Apple And Qualcomm Among its customers, there has been good progress in filling capacity since the loss of Huawei’s orders. It stopped taking new orders from the Chinese telecommunications and smartphone giant in May and did not plan to ship wafers after 15 September.

TSMC Unveiled There are plans for a $ 12 billion (about Rs 90,225) plant in Arizona in May, a move widely seen in favor of Washington’s trade with the United States and Curry with Huawei over Beijing.

The company said on Thursday that the plant will upgrade 524 nanometer chips and is scheduled to start operations in 2024.

TSMC also said that it expects the global market for contract chip manufacturing to show high-teen-percentage growth mid-on this year, ranging from a single-digit to lower forecast of previous teasers growth.

TSMC shares have risen nearly 10 percent this year, giving it a market value of $ 320 billion (about Rs 24.06 lakh crore) over the US rival. Intel Which now has a market value of $ 249 billion (about Rs 18.72 lakh crore).

© Thomson Reuters 2020