TAIPEI (CNA) — Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, said Thursday that its net profit for the second quarter of the year hit a new quarterly high on the back of solid demand for its high-end processes.
In a statement, TSMC said it posted NT$120.82 billion (US$4.10 billion) in net profit in the April-June period, up 3.3 percent from a quarter earlier and 81.0 percent from a year earlier.
The company’s second-quarter earnings per share stood at NT$4.66, compared with NT$4.51 in the first quarter and NT$2.57 in the same period of last year, according to the statement.
TSMC’s second-quarter consolidated sales, meanwhile, remained flat from the previous quarter at NT$310.70 billion but was a 28.9 percent increase from a year earlier.
Sales generated from TSMC’s high performance computing operations rose by a quarterly 12 percent in the second quarter, which offset a decline in shipments of chips for smartphones, the Internet of Things, automotive electronics and consumer electronics, the company said.
The chipmaker said it also benefited from its high-end technology development, widening its profit margins in the second quarter.
In the second quarter, TSMC’s gross margin — the difference between revenue and cost of goods sold — rose from 51.8 percent in the first quarter to 53.0 percent, beating its estimate of 50-52 percent.
TSMC’s operating margin — the difference between sales, the cost of goods sold and operating expenses — also grew in the second quarter, rising from 41.4 percent in the first quarter to 42.2 and surpassing its forecast of 39.0-41.0 percent.
Chips made on TSMC’s 7 nanometer process accounted for 36 percent of its total second-quarter sales, while 16nm chips accounted for 18 percent, according to the statement.
For the first half of the year, the company reported a net profit of NT$237.81 billion, which was an 85.6 percent year-on-year increase, and an EPS of NT$9.17.