Apple Inc. AAPL supplier Taiwan Manufacturing Company Limited TSM, which recently began constructing a plant in Arizona, announced on Friday a 50% year-over-year increase in revenue for November.
What Happened: Taiwanese foundry TSMC reported consolidated November revenue of NT$ 222.71 billion ($7.27 billion). This marked a 5.9% month-over-month increase and a 50% jump from the year-ago period. For the first nine months of the year, revenue was up 44.6% to NT$ 2.071 trillion.
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Cumulative revenue for the October-November period came in at around $14.13 billion. The company had previously issued guidance for fourth-quarter revenue of $19.9 billion and $20.7 billion.
Why It’s Important: TSMC is the world’s biggest chipmaker and a supplier to big techs including Apple, Nvidia Corp. NVDA and Qualcomm Inc. QCOM.
The strong showing despite the industry-wide weakness came due to solid uptake of chips meant for high-end smartphones such as the A16 chips used in Apple’s iPhones and the latest semiconductor from Qualcomm, Counterpoint Research analysts reportedly told CNBC. The data should also allay doubts concerning sales shortfall at Apple.
Given the production issues in China and the not-so-cordial U.S.-China relationship, TSMC is setting up two plants in Arizona with an investment of about $40 billion. The first plant would produce 4nm chips starting in 2024, while the second plant will produce the company’s most advanced 3nm chips.
Price Action: TSMC shares were trading 1.05% higher, at $81.65, in premarket trading, according to Benzinga Pro data.
Read Next: Apple Supplier TSMC Confirms Plan To Make Cutting-Edge Chips At Arizona Plant
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