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TSMC guides Q3 revenue higher, but wary of currency blows

Reuters  |  TAIPEI 

By Jess Macy Yu

TAIPEI (Reuters) - Semiconductor Manufacturing, the world's largest contract chipmaker and a key Apple supplier, forecast third-quarter to rise after a traditionally weak second quarter that was also hit by unfavourable currency moves.

Taiwan's most valuable company said that new gadget launches in the second half, particularly smartphones, will help boost its for the quarter ending in September by at least 15 percent versus the June quarter, which suffered from the appreciation of the Taiwanese currency against the

"Almost 100 percent of our is in US dollars...In the last two quarters, the appreciation has had a very big impact on our revenue," Chief Financial Officer Lora Ho told reporters on Thursday.

TSMC, which has a market capitalisation that exceeds Intel Corp's, said for the July-September quarter will be between $8.12 billion and $8.22 billion, compared to the $7.06 billion posted for the April-June quarter.

and its rivals are riding a boom in demand for chips that power smartphones and computer servers, driving sharp gains in their shares. South Korea's Samsung Electronics Co last week estimated a record quarterly operating profit for April-June.

Apple is gearing up to launch its 10th anniversary iPhone, and analysts expect and some other suppliers to benefit from it.

TSMC's forecast came as its second-quarter net profit fell 8.6 percent to T$66.27 billion ($2.19 billion) from T$72.51 billion in the year-ago quarter. That compared to the T$68.44 billion average forecast of 22 analysts, according to Thomson

The company said that from this quarter it will offer guidance in terms, a departure from denoting it in dollars. in U.S. dollars fell 5.9 percent in the second quarter from the previous quarter, but was up 3.2 percent from a year ago, it said.

($1 = 30.2730 dollars)

(Reporting by Jess Macy Yu and J.R. Wu; Editing by Muralikumar Anantharaman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)