(Bloomberg) — Taiwan Semiconductor Manufacturing Co. reported a stronger-than-expected 22% rise in quarterly sales, buoyed by orders from its largest customers including Apple Inc.
The world’s largest contract chipmaker saw revenue for the three months to September climb to a record NT$356.4 billion ($12.4 billion), up from NT$293 billion a year earlier, according to Bloomberg calculations based on monthly sales data disclosed by TSMC. Fellow Taiwanese chipmakers United Microelectronics Corp. and MediaTek Inc. on Thursday also reported strong sales, suggesting a broad recovery in the industry.
TSMC in July raised its 2020 outlook, saying that revenue this year will grow by more than 20% in dollar terms. Sales for the first nine months of the year suggests that Apple’s main iPhone chipmaker is on track to meet its growth forecast as the Covid-19 pandemic fueled demand for home computing equipment.
The US Commerce Department issued export restrictions against SMIC.
These restrictions will set back China’s search for domestic alternatives to Samsung and TSMC and limit Chinese tech companies’ ability to compete in foreign markets.
The US Commerce Department issued an order requiring US companies to obtain a license to export products to SMIC, according to Reuters. The Department alleges that SMIC could be supplying components to China’s military; however, representatives of SMIC deny this, claiming that the company only manufactures semiconductors for civilian and commercial end-users.
US export restrictions against SMIC will set back China’s search for domestic alternatives to Samsung and TSMC.
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The export restrictions will make it particularly difficult for SMIC to obtain foundry equipment, setting back China’s efforts to develop a domestic alternative to Samsung and TSMC. Samsung and TSMC currently operate the only foundries in the world capable of manufacturing 7nm chips. The