July 29 (Reuters) – TSMC (2330.TW), the world’s largest contract chipmaker, posted a record quarterly profit well above forecasts as it churned out more chips with more advanced technology to meet rising demand for new PCs, phones and other high-tech goods.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (TSM.N) said on Thursday it earned a net profit of T$40.3 billion ($1.3 billion) in April-June versus T$24.44 billion a year ago and well above a consensus forecast of T$35.2 billion from Thomson Reuters I/B/E/S.
The figure surpassed the previous record quarterly result of T$34.485 set in the fourth quarter of 2007.
TSMC and local rival UMC (2303.TW), No.2 chip foundry, are riding on a consumer boom, winning more orders from foreign clients who are selling more powerful chips for PCs, cell phones and other consumer products such as Apple’s (AAPL.O) iPad.
Analysts say TSMC’s profit could peak in the third quarter, the busiest sales season, before it starts to fall in the fourth. Technology demand typically slows after the pre-Christmas buying boom.
Investors are more focused on oversupply and weaker chip prices as they look beyond the strong second quarter.
So far this year, TSMC shares have fallen 2 percent while UMC shares were down 16 percent, against a 5 percent rise on Taiwan’s main TAIEX share index .TWII in the same period.
UMC’s quarterly results are due on Aug. 4. ($1=T$32) (Reporting by Baker Li, Editing by Lincoln Feast)