Mining manufacturer of chips, TSMC increased its profit in the first quarter

The world’s largest independent manufacturer of semiconductors, Taiwan Semiconductor Manufacturing Company (TSMC), reported record sales in March 2018. President TSMC has linked this growth with an increased demand for devices for mining cryptocurrency.

During the recent telephone meeting of shareholders of the company, Taiwan Semiconductor Manufacturing announced earnings
248 billion TWD (approx 8,46 billion) in the first quarter of 2018 — 6.1% more than last year during the same period. The company also recently announced that March this year was the most successful month in the history of the TMSC – the company reported revenues of approximately $ 3.5 billion only in March. March TMSC profit amounted to approximately 41% of the total profits of the company for the first quarter of 2018.

C. C. Wei (C. C. Wei), co-President of TSMC, called cryptocurrency mining driving force of demand for products from TSMC, stating that «these results are primarily attributable to strong demand for high-performance computing, such as cryptocurrency mining».

Mark Liu, the other co-President of TSMC, has expressed the company’s expectations as to the demand of the industry of cryptocurrency mining will remain high for 2018, despite the fact that the expected decline in sales of 28 mm chip company.

«We have seen a very high demand in the first quarter from the cryptocurrency community. In the second quarter, although we see the possibility of a decline in sales of 28 mm chip, the demand for the other device for mining is still very high,» said Liu.

Despite the impressive performance in March, overall, TSMC in the first quarter of 2018 made a profit slightly below expectations — revenues of the company from one share of 59 cents fell one cent below the expected figures. The decline in stock prices due to lower demand for smartphones. This prompted the company to adjust the revenue forecast by the end of the year. TSMC now expects growth of 10% in 2018, compared with an earlier forecast of 15%.

Magee Hosseini (Medhi Hosseini), an analyst at Susquehanna Financial Group, said:

«We downgrade our estimates for TSMC to account for the decline in demand for components from our key customers, especially from Apple.»

At the beginning of this year, TSMC said it plans to increase revenues through the production of equipment for mining. Then AppleInsider reported that TSMC signed a deal for exclusive supply of bionic A11 processor embedded in the iPhone, which will be released 2018.

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