#Taiwan chipmaker TSMC says profit up 11.2% as demand rises

TSMC, the biggest contract manufacturer of processor chips for Apple Inc. and other global brands, said Thursday its latest quarterly profit rose 11.2% over a year earlier to $4.8 billion as demand for smartphones and consumer electronics increased.

Sales in the three months ending June 30 rose 19.8% to $13.3 billion, said the company, headquartered in Hsinchu, Taiwan.

Taiwan Semiconductor Manufacturing Inc. has said it expects faster growth as next-generation telecoms and computing generates demand for chips. A shift to working remotely in response to the coronavirus pandemic helped propel demand for communications technology.

The company, whose customers also include Qualcomm Inc., said in April it plans to invest $100 billion over the next three years to expand manufacturing and research and development.

Most semiconductors used in smartphones, medical equipment, computers and other products are made in Taiwan, South Korea and China. Shortages have cropped up as supply failed to keep up with demand.

TSMC operates a semiconductor wafer fabrication facility in Camas, Washington, and design centers in San Jose, California, and Austin, Texas.

It has announced plans to invest $3.5 billion in a second U.S. manufacturing site, in North Phoenix, Arizona, as concern grows over heavy American reliance on Asian sources for high-tech components.

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