Apple iPhone chipmaking partner Taiwan Semiconductor Manufacturing Co (TSMC) is anticipating a strong second half of 2019 for its finances, based on strong demand for its chips. The manufacturer beat both its own revenue forecasts an those of analysts for the most recent quarter.
Reuters reports that TSMC revenue rose 3.3% to T$241 billion ($7.76 billion), but actually falling 1.4% on a U.S. Dollar basis. However, that was a better performance than TSMC’s own forecast for the period, as well as Wall Street analysts.
The chipmaker said demand is likely to recover during the second half of 2019. They see a rebound in smartphone sales, recovering from the effects of the U.S.-China trade war and the US’s ban on Huawei technology.
“Although our business continues to be impacted by a global slowing economy … we have also passed the bottom of the cycle of our business and again began to see demand increasing,” Chief Executive Officer and Vice Chairman C.C. Wei told analysts during an earnings briefing.
Although Apple is a major client for TSMC, it also produces chips for numerous other device makers. The company has reportedly already begun production for the “A13” chip, which will power Apple’s 2019 iPhone lineup, which will be released in September.