Benzinga | Oct 8, 2021 05:57AM EDT

Analyzing TSM's Q3 Revenue: Bloomberg

* Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) reported third-quarter FY21 revenue of NT$414.7 billion ($14.8 billion).

* The September sales rose 20% Y/Y to NT$152.7 billion.

* The results reflect how TSM benefits from an ongoing silicon crisis that power everything from cars to smartphones.

* Firm orders, especially for its 7-nm and 5-nm chips, from customers like Apple and Advanced Micro Devices Inc (NASDAQ:AMD) helped it meet the Q3 guidance of $14.7 billion, Bloomberg analyst Charles Shum said.

* TSM typically gets a Q3 boost from pre-holiday orders and new gadgets from companies, including Apple Inc (NASDAQ:AAPL), as consumers lapped up iPhone 13 series since its September launch.

* However, capacity constraints have restricted TSM's ability to fully capitalize on the boom as it also had to divert resources to lower-priced chips for industries like automobiles.

* TSM may miss its consensus operating income of $5.97 billion, Shum said. Rapidly weakening growth momentum in Android smartphones, especially in mid-and low-end models, may affect shipments of TSM's high-margin mature-node chips.

* Price Action: TSM shares traded lower by 0.39% at $110.4 in the premarket session on the last check Friday.