By Kosaku Narioka
Taiwan Semiconductor Manufacturing Co.'s second-quarter net profit rose 11% from a year earlier, as the Covid-19 pandemic continued to support chip demand.
The world's largest contract chip maker said Thursday that net profit rose to 134.36 billion Taiwan dollars (US$4.80 billion) from NT$120.82 billion a year earlier. That missed the estimate of NT$135.81 billion from a poll of analysts by S&P Global Market Intelligence.
Second-quarter revenue increased 20% to NT$372.15 billion, while the operating margin deteriorated to 39.1% in the second quarter, 3.1 percentage points lower than a year earlier.
The coronavirus pandemic forced people to stay home, leading to greater demand for chips used in smartphones, computers and other electronics devices. Some analysts say chip demand may decline as the pandemic subsides.
Second-quarter revenue from smartphones fell 3% from the previous quarter while revenue from high-performance computing increased 12%.
TSMC said revenue from customers in North America comprised 64% of its second-quarter revenue, down from 67% in the first quarter, while revenue from China accounted for 11% of the total, up from 6% in the previous quarter.
Write to Kosaku Narioka at email@example.com
(END) Dow Jones Newswires
July 15, 2021 02:15 ET (06:15 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.