So much for “peak iPhone.” Taiwan Semiconductor Manufacturing Co. (TSMC), fabricator of Apple’s A9 chips, used in the Cupertino firm’s iPhone 6s line of devices, has announced quarterly earnings that beat analysts estimates, and posted the company’s highest annual earnings in 29 years.
According to a report by Focus Taiwan, TSMC reported NT$306.57 billion ($9.15 billion US) in net profit for 2015, a 16.2 percent annual increase and a record high for the firm. Its consolidated sales rose 10.6 percent to NT$843.497 billion ($25.2 billion US), also a new record. About $3.7 billion of TSMC’s revenue comes from Apple.
The December quarter saw the Taiwanese firm exceed analysts estimates of NT$68.5 billion, for NT$72.8 billion ($2.2 billion US) in net income. (Via Bloomberg‘s Tim Culpan)
Culpan notes TSMC’s record quarter comes alongside “a move to more sophisticated manufacturing technology,” and also noted that Apple had also forecast record revenue, “fueled by customer upgrades and sales in China, even with the Asian country’s economic slowdown.” Data from the Chinese government indicates a 33% increase in non-Android smartphone sales, the majority of which would likely be iPhones.
Ethan Chen, an analyst with Sinopac Financial Holdings believes TSMC will regain traction on a quarterly basis, in Q2 2016, “thanks to regaining most allocation for Apple A10 chip orders.” TSMC has reportedly been selected as Apple’s exclusive manufacturer for the A10 chip expected to power Apple’s new iPhone and iPad models for 2016.