iPhone Chipmaker TSMC Reports Massive Earnings Beat In Q2

Taiwan Semiconductor Mfg. Co. Ltd. TSM reported an earnings beat for its second quarter on Thursday.

Q2 Earnings

The Apple Inc. AAPL supplier posted a net income of $4 billion, up 81% from the $2.26 billion net income in the similar quarter a year ago.

Analysts polled by Bloomberg had estimated a net income of about $3.8 billion. According to the publication, this is the biggest quarterly profit beat posted by TSMC since the first quarter of 2014.

Total sales increased by 34.1% in the quarter to $10.38 billion, from last year's $8.18 billion.

Why It Matters

The better-than-expected numbers come as the novel coronavirus (COVID-19) pandemic led to a surge in demand for video conferencing and other services, in turn increasing the demand for chips.

One of its biggest customers, Apple, is also expected to keep its timeline on the iPhone 5G range launch this year.

Price Action

TSMC shares closed 1.5% lower at $357.50 in Taipei on Thursday. The shares had closed 1.3% lower at $66.06 in New York on Wednesday.

Photo credit: Taiwan Semiconductor Mfg. Co. Ltd