Taiwanese chipmaker TSMC posted record sales in the third quarter. The company took advantage of the global chip shortage. TSMC makes chips for other companies that are used in smartphones and cars, among other things.
TSMC’s third-quarter revenues amounted to nearly 415 billion Taiwan dollars. In September, sales increased by 20 percent. TSMC’s third-quarter results often get a boost as companies produce new gadgets and smartphones for the holiday season. For example, Apple made the newly launched iPhone 13.
TSMC is not only operating at a higher capacity to meet all demand, but it can also charge more money for its services, according to analysts. Capacity constraints prevent the chip company from taking full advantage of the shortages in the market. The company has had to shift production capacity to, among other things, chips for cars.
The chip shortage seems to be getting even more acute. According to trade and technology firm Susquehanna Financial Group (SIG), the industry’s turnaround time has increased for the ninth straight month. That is the time between placing an order for semiconductors and delivery. The turnaround time was 21.7 weeks in September, by far the longest since SIG began measuring the data in 2017.