(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. reported record quarterly revenue, joining other Apple Inc. suppliers in signaling strong demand for the new 5G iPhones.
The world’s largest contract chipmaker said Friday that December sales totaled NT$117.4 billion ($4.2 billion). Revenue in the quarter reached a record NT$361.5 billion, according to Bloomberg News’s calculations based on previously released monthly sales figures. That came in slightly below the average estimate of NT$364 billion, which had risen in past months as expectations around the iPhone grew.
Shares of Apple’s main chipmaker have rallied more than 70% over the past 12 months and reached a record high on Friday. The company has predicted that the industry “mega trends” of 5G and high performance computing-related products will continue to drive growth over the long term.
“Taiwan Semiconductor Manufacturing Co.’s 4Q revenue could exceed guidance of $12.7 billion on a continuation of strong chip orders from customers such as Apple” and Advanced Micro Devices, Bloomberg Intelligence analyst Charles Shum and Simon Chan wrote in a note Wednesday. Still, a strong Taiwan dollar and higher expenses for advanced 5-nanometer chip production may pressure the chipmaker’s operating margin, they added.
Revenue for the entire year came in at NT$1.34 trillion, up roughly 25% from 2019. TSMC is scheduled to report quarterly profit on Jan. 14.
Robust demand for the new iPhones have provided a boost to other Apple suppliers. Assembler Hon Hai Precision Industry Co. earlier this week beat quarterly revenue expectations, while British-German chipmaker Dialog Semiconductor Plc increased its sales forecasts due to stronger-than-expected demand for 5G phones and tablets.
Read more: IPhone Supply Chain Sends Bullish Signal on 5G After Tepid Start