By Kosaku Narioka
Taiwan Semiconductor Manufacturing Co.'s fourth-quarter net profit rose 23% from a year earlier thanks to stronger revenue and an improved profit margin.
The Taiwanese chipmaker said Thursday that net profit for the final quarter of 2020 rose to 142.77 billion New Taiwan dollars (US$5.10 billion) from NT$116.04 billion. That beat the estimate of NT$136.93 billion taken from a FactSet poll of analysts.
For the full year, TSMC booked NT$1.339 trillion in revenue and NT$517.89 billion in net profit--both record highs.
Fourth-quarter revenue increased 14% to NT$361.53 billion from NT$317.24 billion a year earlier as the Covid-19 pandemic accelerates a shift to a more digitally connected society, boosting demand for chips used in smartphones, computers and other electronics.
TSMC's operating margin improved to 43.5% in the fourth quarter, a rise of 4.3 percentage points.
Revenue from smartphones rose 13% from the previous quarter while revenue from high performance computing decreased 14%.
TSMC said revenue from customers in North America made up 73% of its fourth-quarter revenue, up from 59% a year earlier, while revenue from China accounted for 6% of the total, down from 22% a year earlier.
The U.S. Commerce Department in May last year restricted global chipmakers that use U.S. technology from supplying semiconductors to Huawei Technologies Co. The grace period for those restrictions ended mid-September. Analysts have said TSMC was able to offset its Huawei sales losses by reallocating production capacity to other clients.
Write to Kosaku Narioka at firstname.lastname@example.org
(END) Dow Jones Newswires
January 14, 2021 01:25 ET (06:25 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.