Analysts predict TSMC will post record net income for 2018 as the foundry is ramping up its 7nm process. Two lucrative orders were won, including the production of Apple's A12 for the upcoming iPhone refresh and Qualcomm's next-gen smartphone chip. Still, revenue growth is coming in lower than previously expected, due to a slowdown of high-end smartphone demand and uncertainty surrounding the crypto market.
The sources said that TSMC will see its revenue ratio for advanced 7nm process hit a high of 20% in 2018, and may therefore post better-than-projected revenues and profits for the second half of the year and register an annual revenue growth of over 10%.
This is despite TSMC having lowered its revenue growth forecast for 2018 to 10% from the earlier projection of 10-15%, citing weaker-than-expected smartphone demand in the second quarter and growing uncertainty facing the cryptocurrency mining market.