TSMC Q3 2022 Revenue Hits All-Time High Despite Slowing Demand

upstart writes:

TSMC Q3 2022 Revenue Hits All-Time High Despite Slowing Demand:

Revenue for Taiwan Semiconductor Manufacturing Co. (TSMC) topped analysts' estimates in the third quarter and reached $19.4 billion. On Friday, the company reported that earnings in Q3 2022 were 48% higher compared to the same quarter a year ago.

TSMC revenue in July (NT$186.76 billion), August (NT$218.13 billion), and September (NT$208.25 billion) totaled NT$613.14 billion ($19.382 billion), which is about 48% higher than in Q3 2021, according to a Bloomberg report. TSMC's results run contrary to other semiconductor companies. Just yesterday, AMD warned of a $1.1 billion revenue shortfall, whereas Kioxia decided to reduce the output of 3D NAND wafers last week.

There are several reasons why TSMC's results are improving while sales of its partners' products are dropping due to rising inflation and geopolitical tensions. First up, TSMC has managed to increase its market share in recent years, particularly when it comes to leading-edge nodes. Secondly, since the company leads other contract makers of chips, it can increase prices, which drives its revenue upwards.

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