TSMC makes the A10 processor for Apple, the processor is used in the new iPhone 7 and iPhone 7 Plus and the company has just reported record profits.
The company’s share price has increased significantly because of the record profits and this also suggests that sales of Apple’s iPhone 7 handset are high.
TSMC’s Financial Performance and Market Impact
The world’s largest contract chipmaker has surged 32 percent in 2016, climbing to its highest level versus MSCI’s global gauge of technology stocks on record. The $156 billion company now accounts for 16 percent of Taiwan’s entire equity market value, the biggest proportion according to data stretching back 13 years, and none of the 33 analysts who cover it recommend selling the shares.
While the company has benefited from a broader rally in technology companies this year that’s seen rivals including Intel Corp. reach multi-year highs, TSMC is luring investors with record profit as demand for Apple Inc.’s new iPhones fuels orders for its processor chips.
Apple’s iPhone 7 Sales and Market Influence
Apple has yet to report how many units of their iPhone 7 and iPhone 7 Plus they have sold, the company is expected to have high sales of the device over the holiday period. The iPhone 7 and iPhone 7 Plus have been well-received by consumers, with features such as improved camera capabilities, water resistance, and enhanced performance driving demand.
The A10 processor, manufactured by TSMC, plays a crucial role in the performance of these devices. The chip’s efficiency and power have been highlighted as key factors in the iPhone 7’s success. This has not only boosted TSMC’s profits but also solidified its position as a leading supplier in the semiconductor industry.
Moreover, the strong sales of the iPhone 7 have had a ripple effect on the market. Suppliers and partners of Apple, including TSMC, have seen increased demand for their products and services. This has led to a positive outlook for the technology sector as a whole, with many companies experiencing growth and increased investor confidence.
In addition to the financial benefits, TSMC’s success with the A10 processor has also positioned the company as a key player in the development of future technologies. As Apple continues to innovate and release new products, TSMC is likely to remain a critical partner, contributing to the advancement of mobile technology and beyond.
The collaboration between Apple and TSMC exemplifies the importance of strong partnerships in the tech industry. By working together, these companies have been able to achieve significant milestones and drive progress in the market. As a result, both Apple and TSMC are well-positioned for continued success in the coming years.
Source Bloomberg, 9 to 5 Mac
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