TSMC has reported record quarterly net profit and revenue thanks to strong sales of smartphones from its clients.
TSMC earned about $3 billion in net profit in October-December which doubles the results posted at the same time last year and slightly more than the last quarter.
Demand for increasingly feature-rich gadgets has led to a burst in growth for companies such as TSMC and local peer United Microelectronics, whose chips power features from fingerprint sensors to fourth-generation (4G) LTE receivers.
In the fourth quarter, TSMC’s profit margin decreased to 35.9 percent from 40.4 percent in the third quarter in October-December revenue.
However, things are not looking that good for TSMC’s future. Analysts are divided about whether Apple will select TSMC to produce chips for its next-generation smartphones. There are questions as to whether it can create the next generation chips Apple wants .
Samsung, which is TSMC’s main competitor for Apple custom, has previously said it is seeing increased demand for chips made with 14 nanometre technology, the likes of which could power the successor to the iPhone 6.
Now that the war between Apple and Samsung is cooling, it appears that Jobs’ Mob might return to its old chipmaker ally and leave TSMC high and dry.
