Taiwan Semiconductor Manufacturing Co
(TSMC) sees continued weakness in cryptocurrency mining demand that
will partially offset growth in the fourth quarter ended Dec 31, 2018.
The chipmaker’s CFO, Lora Ho, says in a briefing for the recently concluded third quarter that the company will continue to see growth weighed by continued weakness in cryptocurrency mining demand and customers’ inventory management.
Beijing-based Bitmain, which is enroute to a listing in Hong Kong, is by far the company’s biggest customer for application-specific integrated circuit (ASIC) chips used in bitcoin mining rigs.
Bitmain’s latest filing for an initial public offering shows a less-than-rosy outlook as its mining rigs’ prices have declined due to the steep drop in bitcoin’s price this year.
Ho says in the latest briefing with analysts that TSMC will benefit from solid demand for the 7-nanometer chip for high-end smartphones as well as demand for 16/12-nanometers for new generation graphics processing units and artificial intelligence.
Ho had, in a previous briefing with analysts, anticipated slower demand for TSMC’s ASIC chips.
There are also fears that the ongoing trade spat between the US and China will impact the mining rig producers, of which Bitmain could be the hardest hit, according to earlier reports.
Besides Bitmain, TSMC also supplies ASIC chips to Canaan Creative, a Beijing-based firm that has also filed for an IPO in Hong Kong.
For the third quarter ended Sept 30, TSMC posted a minimal gain in net profit of US$2.9bil compared to the same quarter a year ago. Revenue was 1.9% higher at US$8.49bil.
For the last three months of the year, the company is predicting revenue of between US$$9.35bil and US$9.45bil, compared to the revenue achieved of US$9.21bil in the same quarter a year ago.
The chipmaker’s CFO, Lora Ho, says in a briefing for the recently concluded third quarter that the company will continue to see growth weighed by continued weakness in cryptocurrency mining demand and customers’ inventory management.
Beijing-based Bitmain, which is enroute to a listing in Hong Kong, is by far the company’s biggest customer for application-specific integrated circuit (ASIC) chips used in bitcoin mining rigs.
Bitmain’s latest filing for an initial public offering shows a less-than-rosy outlook as its mining rigs’ prices have declined due to the steep drop in bitcoin’s price this year.
Ho says in the latest briefing with analysts that TSMC will benefit from solid demand for the 7-nanometer chip for high-end smartphones as well as demand for 16/12-nanometers for new generation graphics processing units and artificial intelligence.
Ho had, in a previous briefing with analysts, anticipated slower demand for TSMC’s ASIC chips.
There are also fears that the ongoing trade spat between the US and China will impact the mining rig producers, of which Bitmain could be the hardest hit, according to earlier reports.
Besides Bitmain, TSMC also supplies ASIC chips to Canaan Creative, a Beijing-based firm that has also filed for an IPO in Hong Kong.
For the third quarter ended Sept 30, TSMC posted a minimal gain in net profit of US$2.9bil compared to the same quarter a year ago. Revenue was 1.9% higher at US$8.49bil.
For the last three months of the year, the company is predicting revenue of between US$$9.35bil and US$9.45bil, compared to the revenue achieved of US$9.21bil in the same quarter a year ago.
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