TSMC Raises Forecasts for 2016 as iPhone 7 Boosts Profit and Sales in Q3

TSMC has raised forecasts for 2016 revenue as the iPhone 7 helped the company reach new profit and sales records in the third quarter, reports Reuters.

The world's largest contract chipmaker's bullish forecast comes as anticipation has intensified about how the iPhone 7, launched in early September, has been selling in the wake of Samsung Electronics Co scrapping its Galaxy Note 7 smartphone in what could be one of the costliest product safety failures in tech history.

TSMC expects revenue growth to be 11-12%, versus the previous estimate of 5-10%. "Demand for high-end smartphones will continue to improve," said co-Chief Executive Officer Mark Liu, speaking at an earnings conference. The company's net profit increased 28% in the third quarter reaching $3.08 billion.


Notably, TSMC officials said it was too early to comment on how Samsung's Galaxy Note 7 debacle will affect business.

"Samsung is a very strong company," said TSMC acting spokeswoman Elizabeth Sun. "I think the issue today is that even they (Samsung) cannot say what has caused this, so this makes everyone nervous."

The iPhone 7 will likely account for at least 10-15% of TSMC's revenue in the second half of 2016.

Read More