By Kosaku Narioka
Taiwan Semiconductor Manufacturing Co.'s first-quarter net profit rose 19% compared with the same period a year earlier thanks to stronger revenue as the Covid-19 pandemic continued to boost demand for chips.
The world's largest contract chipmaker said Thursday that net profit rose to 139.69 billion New Taiwan dollars (US$4.91 billion). That beat the estimate for NT$135.76 billion in net profit from a S&P Global Market Intelligence poll of analysts.
First-quarter revenue increased 17% from a year earlier to NT$362.41 billion.
The Covid-19 pandemic has boosted demand for chips used for smartphones, gaming consoles, computers and other electronics devices, leading to supply constraints in recent months.
TSMC said earlier this month it would invest US$100 billion over the next three years to increase production capacity as demand surges.
TSMC's operating margin improved to 41.5% in the first quarter, a rise of 0.1 percentage point from a year earlier, though the margin was 2.0 percentage points lower from the previous quarter.
Revenue from smartphones fell 11% from the previous quarter while revenue from high performance computing increased 14%.
TSMC said revenue from customers in North America made up 67% of its first-quarter revenue, down from 73% in the fourth quarter, while revenue from China accounted for 6% of the total, unchanged from the previous quarter.
Write to Kosaku Narioka at firstname.lastname@example.org
(END) Dow Jones Newswires
April 15, 2021 02:15 ET (06:15 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.