TsmcSource: Taiwan Semiconductor Manufacturing Co., Ltd.

What you need to know

  • Apple Silicon will really start rolling next year.
  • Apple chipmaker TSMC is banking on it to contribute substantially to sales next year.
  • It has already raised its outlook for this year.

Apple chipmaker TSMC has raised its outlook for 2020 and expects Apple Silicon to provide a big boost to sales in 2021.

According to DigiTimes:

TSMC has reported strong results for second-quarter 2020, thanks to continued robust demand for 5G infrastructure deployments and HPC-related products that was able to offset weaknesses in demand for other applications. Now the foundry house has raise its outlook for 2020, expecting sales growth of more than 20% for the year. Sources from the supply chain estimate that TSMC's wafer start shipments will see a double-digit percentage point gain in third-quarter 2020. The foundry house reportedly is also making Arm-based processors for Apple's next-generation Macs to be launched by year-end 2020p.

As the report notes, TSMC has enjoyed strong growth over Q2 this year and is raising its outlook for the rest of the year. Overall, it expects growth of more than 20% this year, including double-digit percentage gain in Q3 and revenue of around $11.5 billion.

The report notes that TSMC is also expecting a big influx of orders for Apple Silicon components as Apple increases the uptake of its own Arm-based processors in Macs next year.

Most recently, analyst Ming-Chi Kuo predicted that Apple will ship a new 13.3-inch MacBook Pro with Apple Silicon by the end of the year. He also says that Apple will release redesigned 14 and 16-inch Macbooks also featuring Apple Silicon next year. TSMC will be one of several Apple suppliers looking to take advantage as Apple Silicon orders ramp up.