Taiwan Semiconductor Manufacturing Co. (TSMC) reported that its first quarter net profit was up 18 percent year-over-year, as its revenue for the period exceeded its projections.
The contract chip maker's net profit for the quarter reached NT$39.6 billion (US$1.3 billion), up from NT$33.5 billion from the same period a year ago.
Revenue reached NT$132.8 billion, a year-over-year increase of 25.7 percent. The revenue surpassed TSMC's original projection of between NT$127 billion to NT$129 billion for the quarter.
TSMC reported the strong financial results as orders for the company's cutting-edge 28-nanometer chip manufacturing process went up in volume, accounting for 24 percent of the company's revenue during the quarter. This marks a two-percentage point increase from last year's fourth quarter.
Strong demand for mobile processors helped drive revenues beyond projections, the company said Thursday. TSMC counts chip vendors including Qualcomm and Nvidia among its clients, with Apple also rumored to be a customer. For the full year 2013, about a third of TSMC's revenues will come from smartphones and tablets, according to company estimates.
TSMC's revenues for this year's second quarter are expected to reach between NT$154 billion to NT$156 billion, a year-over-year increase from NT$128.1 billion.
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