Chipmaker TSMC posts 24 percent rise in 2Q profit

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Associated Press

Posted on July 18, 2013 at 6:06 AM

TAIPEI, Taiwan (AP) — Taiwan Semiconductor Manufacturing Co. reported a 24 percent jump in second quarter profit, driven by sales growth in smartphones and tablet computers.

The world's largest contract chip manufacturer said Thursday that April-June profit totaled NT$52 billion ($1.7 billion) on revenue of NT$156 billion.

But it acknowledged that rapid sales growth in high-end smartphones over the past two years was tapering off, affecting the company's revenue and profit margin.

The company said that while mid- and low-end handsets have experienced faster sales growth, they do not contribute as much to profit because they use less sophisticated processors.

TSMC forecast modest growth in the third quarter, with revenue expected to reach NT$161-164 billion.

It said smartphones and tablets may suffer a modest sales decline in the second half of the year.

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