Taiwan Semiconductor Manufacturing Co (TSMC) raised its 2020 revenue forecast for a second time this year, reflecting strong demand for 5G mobile devices like Apple Inc’s new iPhones and high-performance computing in the post-pandemic era.

The world’s largest contract chipmaker now expects 2020 sales to climb more than 30% in dollar terms, compared with a previous forecast of growth of more than 20%. For the current quarter, revenue should be between US$12.4 billion ($16.9 billion) and US$12.7 billion, while gross margin will be between 51.5% and 53.5%, CFO Wendell Huang told analysts.

The main chipmaker for Apple’s iPhones continues to invest in expanding and upgrading technology, anticipating strong demand from 5G smartphones as well as for server chips as countries gradually emerge from the Covid-19 pandemic. Executives said on Oct 15 they expect capital spending of about US$17 billion in 2020, the high end of its previously forecast range.

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