The coronavirus pandemic has hardly dented the business of the world's top contract chipmaker, and instead market observers believe TSMC will see strong results for the third quarter and the entire 2020, driven mainly by a ramp-up in 5nm and 7nm chip orders. And the foundry house is also seeing strong orders for its mature manufacturing processes. The handset market may be weak at the moment, but 5G smartphone penetration in China is rising, thanks to local vendors lowering prices to stimulate demand.
Market watchers bullish on TSMC revenue outlook: Market watchers are generally optimistic about TSMC's sales performance in the third quarter and all of 2020, despite the ongoing coronavirus pandemic and tougher US sanctions against Huawei that may soon block the foundry from producing chips for its biggest China-based client.
TSMC sees mature process capacity utilization pick up: TSMC has seen capacity utilization rates for 16nm and more mature processs pick up recently, and has demanded sufficient supplies from related materials providers through October, according to industry sources.
Shipments of 5G smartphones gaining momentum in China: Smartphone shipments in the China market decreased 17% on year to 28.6 million units in June, with 5G models accounting for 17.5 million units or 61% of overall shipments in the month, according to media reports in China.
