TSMC sees Q3 pick-up

TAIPEI: Taiwan Semiconductor Manufacturing Co, the world´s largest contract chipmaker and an Apple Inc supplier, said it expects a third-quarter pick-up as customers stock up on chips for new launches in time for the year-end holiday season.

Revenue for July-September is expected to reach between T$254 billion ($7.93 billion) and T$257 billion, up from the second quarter´s T$221.81 billion, TSMC said after announcing results for April-June on Thursday.

Supplying chips for smartphone makers is TSMC´s main business driver.

TSMC´s co-Chief Executive Officer Mark Liu said that higher demand is expected to kick in for the second half, with the fourth quarter set to see its usual pick-up in demand.

Still, TSMC stuck to its forecast for revenue and operating profit to grow between 5 percent and 10 percent in 2016. Capital expenditure for the year was revised upwards to a range between $9.5 billion and $10.5 billion, up from its earlier estimate for between $9 billion to $10 billion. The slight increase is to do with stronger demand for its advanced technology wafer-making for next year, company executives said, speaking at an investor conference Thursday.