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Asia300

Taiwan's TSMC Q2 profit rises 9% on smartphone demand; meets estimates

TAIPEI (Reuters) -- Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, on Thursday reported second-quarter profit in line with analysts' expectations, driven by robust demand for smartphones.

For the quarter ended June, the supplier to Apple Inc , Qualcomm Inc and Nvidia Corp reported a 9 percent rise in net profit from a year earlier to T$72.29 billion ($2.36 billion), in line with market estimates.

Revenue rose 11 percent to US$7.85 billion, compared with the US$7.8 billion to US$7.9 billion range TSMC forecast in April.

An intensifying trade spat between the United States and China could be a near-term risk for TSMC, which has many of its biggest clients in mainland China, analysts said.

The company could also face slowing demand for high-end chips used in cryptocurrency mining, as miners switch to lower-powered chips due to increased regulatory scrutiny of the sector as well as price volatility, analysts said.

Prior to the earnings announcement, shares in TSMC closed up 0.67 percent versus a flat wider market. The stock has slipped less than 1 percent so far this year.

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