5G and HPC Drive 45% Q1 Revenue Growth at TSMC

By Nitin Dahad, EETimes (April 17, 2020)

TSMC this week reported 45.2% revenue growth for Q1 2020 compared to the same period last year, driven by 5G and high-performance computing (HPC) products. However, compared to Q4 2019 it declined marginally by 0.8%, and the outlook for the second quarter of 2020 is flat.

Revenue was US$10.31 billion for the three-month period ending March 31, 2020. The rule of thumb in the industry is that the first quarter business usually declines due to the seasonality. Wendell Huang, VP and chief financial officer for TSMC, commented, “Our first quarter business declined less than seasonality, due to the increase in HPC-related demand and the continued ramp of 5G smartphones. Moving into second quarter 2020, we expect our revenue to be flattish, as weaker mobile product demand is expected to be balanced by continued 5G deployment and HPC-related product launches. The company said that based on its current business outlook, it expects revenue for the second quarter to be between US$10.1 billion and US$10.4 billion.

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