Ho stated: “Moving into fourth quarter, despite the current market uncertainties, our business will benefit from the continuous steep ramp of 7-nanometer for several high-end smartphones as well as the demand for 16/12-nanometer for the launches of new-generation GPU and AI. However, this growth will be partially offset by continued weakness in cryptocurrency mining demand and inventory management by our customers.”
C.C. Wei, TSMC’s chief executive officer and vice chairman, reiterated Ho’s predictions, stating: “Our second half of 2018 business will be strongly supported by the 7-nanometer ramp-up, which is mainly driven by a few new smartphone launches. However, our business is also negatively impacted by further weakening of cryptocurrency mining demand.”
Ho predicts that TSCM’sl fourth-quarter revenue should reach between $9.35 billion and $9.45 billion – a 10.7 percent sequential increase in the company’s revenue.
Ho also predicts TSMC to post a fourth-quarter gross margin of between 47 percent and 49 percent, and an operating margin of between 36 percent and 38 percent.
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