TSMC Has Enjoyed Huge Earnings and Its All Thanks to iPhone 7

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Oct 13, 2016
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It’s not just Apple that has enjoyed the fairly high demand of the iPhone 7 and iPhone 7 Plus. Thanks to the company increasing component orders, its suppliers are also enjoying a great time generating hefty amounts of revenue, especially TSMC, who is the chief supplier for Apple’s advanced FinFET nodes.

TSMC Expects a Revenue Growth That Could Mount to Twice of What It Had Expected Earlier in the Year

According to sources close to the matter, TSMC expects a revenue growth of between 11 and 12 percent. Earlier in the year, the semiconductor manufacturer was only looking at a revenue growth that would be in between the 5-10 percent range. In fact, the third quarter net profit jumped 28 percent from previous quarters to $3.1 billion, beating analysts’ expectation of an approximately $2.9 billion forecast for the July-September quarter. In addition, it also set a new quarterly record for the company in the net profit category, which previously sat at $2.5 billion.

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Industry insiders have reported that TSMC remained the primary supplier of the A10 SoC to be placed inside the iPhone 7 and iPhone 7 Plus. Samsung was not supplier like it was last year, but looking at how both manufacturers are aiming to bring the node down to 10nm FinFET, all that might change. It is also possible that TSMC’s good fortunes have been inversely related to Samsung’s ongoing Galaxy Note 7 saga, but executives at this point are still stating that it is far too early to how business is going to play out.

Shipments of iPhone 7 units are expected to reach 80 to 84 million units in the second half of this year, and while that is a healthy demand, it is still less compared to the 85-90 million tally that the iPhone 6s devices managed to garner during the second half of 2015. Now that Samsung’s has officially discontinued its Note 7, it looks like the playing ground for Apple will be free, at least for this particular quarter.

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