Apple chipmaker hits record revenue highs in August

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Gather_Round_A12Bionic 2
The A12 Bionic chip was a massive hit for TSMC.
Photo: Apple

Long-time Apple chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) has reported new record revenue for the month of August. This follows shortly after leading Apple manufacturer Foxconn announced similar records.

TSMC’s August revenues hit a record high of $3.4 billion for the month. That’s a 25.2% increase sequentially and 16.5% on year.

Analysts are expecting more sequential growth in Q4 revenue. Digitimes notes that:

“Market watchers expect TSMC to see its third-quarter revenues come within the guidance given in July. A pull-in of orders placed by HiSilicon, AMD, Apple and MediaTek will be buoying the foundry’s sales performance during the quarter, according to the watchers.”

The strong performance is reportedly due to “robust 7nm chip demand.” The Apple A12 Bionic chip used in the 2018 iPhone XS, XS Max and XR was the first smartphone chip to be made using the 7nm process. This year’s upcoming A13 chip reportedly uses an improved version of the 7nm process.

While Apple isn’t the only customer buying 7nm chips, TSMC likely got a big boost from its Apple contract.

TSMC is currently preparing for volume production of the first 5nm chips in the first half of 2020. These chips will most likely find their way into next year’s iPhones and iPads.

Not just the chipmakers

As noted, TSMC isn’t the only Apple supplier to hit new heights in August. Recently, Foxconn, a.k.a. Hon Hai Precision Industry, reported its highest-ever August sales in the company’s 45-year history.

In a statement, Foxconn said that its strong August sales is the result of three divisions. These are its communication device, computing, and consumer electronic gadgets divisions. Apple represents more than 40% of Foxconn’s total sales.

Source: Digitimes