Chip-making giant Taiwan Semiconductor Manufacturing Co Ltd (TSMC) expects a boom in the cryptocurrency market to drive up demand for high-end chips and help it post a record revenue this year, Reuters reported.
“The urge to mine cryptocurrency is very strong. The cryptocurrency price is very volatile, but the demand since the last year has been very strong. We expect it will continue to be strong,” TSMC Chairman Morris Chang said at an earnings conference on Thursday.
TSMC, which is a key supplier for Apple, Qualcomm Inc and Nvidia Corp, yesterday posted a record-breaking net profit of NT$343.11 billion (US$11.61 billion) for last year, benefiting from robust chip demand for smartphones and cryptocurrency mining machines.
Fourth quarter revenue was $9.21 billion, which increased 10.7% from the previous quarter and increased 11.6% year-over-year. Revenue is expected to be between US$8.40 billion and US$8.50 billion in the current quarter.
“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,” she added.
TSMC’s market value increased by 38 percent over the past year to $212 billion, partly due to the cryptocurrency wave.