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Chip Giant TSMC Expects Strong Demand for Cryptocurrency Mining to Continue

The world’s largest dedicated semiconductor foundry, TSMC, expects that the bitcoin mining industry will continue to grow this year, fueling an increased demand for its chips. Some analysts now see the cryptocurrency mining sector as offering the highest potential to cover for weak iPhone X sales for Apple’s primary chip supplier.

Also Read: Austrian Bitcoin Miner May Seek an IPO on the London Stock Exchange in 2018

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Chip Giant TSMC Expects Strong Demand for Cryptocurrency Mining to ContinueTaiwan Semiconductor Manufacturing Company (TPE: 2330) today reported its Q4 2017 earnings, showing a 10.1% increase in revenue and a 10.4% increase in net income. In total, the Q4 revenue was $9.21 billion, which increased 10.7% from the previous quarter and 11.6% year-over-year. The TSMC stock rose 2.69% in response.

“Our fourth quarter business was supported by major mobile product launches and continuing demand for cryptocurrency mining,” said Lora Ho, SVP and Chief Financial Officer of TSMC. “Moving into first quarter 2018, we expect the strong demand for cryptocurrency mining will continue while mobile product seasonality will dampen our business in this quarter.”

Bitcoin mining hardware is considered to offer the highest growth potential for the company with some analysts expecting that it will double and constitute up to 10% of TSMC’s revenues in 2018. They even hope it can compensate for the lackluster iPhone X sales in China for the chip maker. “The mining impact on TSMC is now akin to that of a popular new iPhone,” commented Mark Li, a Hong Kong-based analyst with Sanford C. Bernstein & Co. “The difference is that each new iPhone requires a huge Read More Here