Taiwan Semiconductor Manufacturing Co. forecast March quarter revenue higher than estimated by analysts. The projection emphasizes a possible growth surge for TSMC after launching fifth-generation enabled smartphones this year.
TSMC reported a quarterly revenue forecast of $10.2 billion to $10.3 billion, exceeding analysts’ estimates of $9.6 billion. Apple’s leading chipmaker also registered a fourth-quarter profit, which also smacked of estimates when clients such as Apple and Huawei agreed to adopt advanced semiconductors in smartphones.
The quarterly results clearly exhibit the company’s investments in technology advancements to protect its leading position in the market, surpassing rivals including Intel Corp. and Samsung Electronics Co. TSMC invested as much as $15 for technology and capacity last year. The company is ready to make a $16 billion investment this year expecting the arrival of fifth-generation smartphones.
According to the Bloomberg analysis, companies such as Mediatek, Qualcomm are speeding the adoption of advanced processes for the launch of 5G mobile devices, which would lead TSMC to hold an enduring sales this year.
The company’s shares grew by 1% in 2020 but witnessed severe drops over the last two terms. The decline is underscoring a depression caused by international trade disputes regardless of the recently signed trade deal. Analysts hinted that if Washington decided to screw up restrictions on exports to Huawei, it could possibly vandalize TSMC’s growth momentum.
The company considers Apple and Huawei among its major competitors in the global semiconductors market. TSMC CEO C.C. Wei said earlier that the arrival of the 5G network, a foundation of automated manufacturing bases, and the adoption of advanced technologies and smart homes will foster its revenue in the near future.